Document:

Exhibit 10.6

 

Certain identified information has been excluded from this exhibit
because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. [***]
indicates that information has been redacted.

 

FIRM FIXED PRICE CONTRACT

 

Ref: QKDSat.CON.00134.ARQ

 

BETWEEN

 

ARQIT LIMITED

 

AND

 

QINETIQ SPACE NV

 

FOR

 

DELIVERY

 

OF

 

QKDSAT SATELLITE PROGRAM

 

PROPRIETARY NOTICE

 

The information contained herein is proprietary
to both Parties and shall be handled in accordance with Clause 20, Proprietary Information.

 

Qinetiq/ArQit Contract

 

     

     

    

 

TABLE OF CONTENTS

 

	Clause 1 - Definitions	3
	Clause 2 – Structure of ESA Contract & Scope of Work	8
	Clause 3 - Price	11
	Clause 4 - Delivery	15
	Clause 5 - Payment	17
	Clause 6 - Acceptance	19
	Clause 7 – Specific ESA Requirements	20
	Clause 8 – Other Customer Rights	21
	Clause 9 - Title and Risk of Loss	21
	Clause 10 - Warranty	24
	Clause 12 - Interparty Waiver of Liability for Launch Services	27
	Clause 13 – Insurance	28
	Clause 14 - Termination for Convenience	29
	Clause 15 - Termination for Default	31
	Clause 16 - Excusable Delays and Force Majeure	32
	Clause 17 - Permits and Licenses	33
	Clause 18 - Compliance with Laws, Permits, and Licences	34
	Clause 19 - Access to Work in Progress	35
	Clause 20 - Proprietary Information	37
	Clause 21 – Intellectual Property Rights	37
	Clause 22 - IPR Indemnity	39
	Clause 23 – Publicity and Release of Information	40
	Clause 24 - Assignment	40
	Clause 26 - Changes	41
	Clause 27 - Notices & Authorised Representatives	43
	Clause 29 - Disputes and Arbitration	44
	Clause 31 - Representations	46
	Clause 32 - Implied Warranty Disclaimer and Limitation of Liability	47
	Clause 33 - Miscellaneous	47

 

List of Annexes:

 

		1)	Annex A, Price and Payment Schedule
		2)	Annex B, QKDSAT Space Segment Statement of Works
		3)	Annex C, QKDSAT Space Segment Requirements
		4)	Annex D, QKDSAT Space Segment PA Requirements
	 	5)	Annex E, Key Personnel
	 	6)	Annex F, ESA Contract

 

Execution Version

 

    1

     

    

 

This Contract (the “Contract”) is made
and entered into this 27th day of January2020 (“Effective Date of Contract” or “EDC”)
by and between Qinetiq Space NV (“Qinetiq”), a corporation organized and existing under the laws of the state of Belgium,
with its offices at Hogenakkerhoekstraat 9, 9150 Kruibeke, Belgium (hereinafter referred to as the
 "Contractor" or “Qinetiq”) and ArQit Limited, a company organized and existing under the laws of England with its
offices at 3 More London Riverside, London SE1 2RE United Kingdom (hereinafter referred to as the "Customer" or “ArQit”)
(together the “Parties” or individually a “Party”).

 

W I T N E S S E T H THAT:

 

		1.	WHEREAS, the Customer desires to procure the Quantum Key Distribution (“QKDSat”) Satellite(s) and
associated items, subject to the terms and conditions hereof.

 

		2.	WHEREAS, the Customer has obtained funding to procure the QKDSat Satellite(s) from (i) private
investment sources and (ii) from the European Space Agency under a dedicated ARTES Programme element (ARTES Partner), Sub-element
11 with the key objective to validate key QKD technologies.

 

		3.	WHEREAS, on 31 July 2019 the Customer entered into a contract with ESA (ESA Contract No. 4000127860/19/UK.ND
Project QKD SAT Phase B/C/D/E) which incorporates the terms and conditions of the GCC and inter alia sets out the provisions under which
ESA shall provide partial funding of the Customer’s activities related to the design, development, manufacturing, assembly, integration,
verification activities, obtaining of licences, launch of the QKD satellite (“QKDSat”) into a LEO orbit and the deployment
and pilot operations of the QKDSat system (“ESA Contract”).

 

		4.	WHEREAS, a key component of the ESA Contract is the provision of the QKDSat Satellite, the subject matter
of this Contract.

 

		5.	WHEREAS, the Contractor desires to supply the QKDSat Satellite and associated items, subject to the terms
and conditions hereof.

 

		6.	WHEREAS, in consideration for the supply of the
QKDSat Satellite, the Customer shall pay the Contractor by way of bifurcated payment streams, comprising (i) funding from ESA which
is flowed down from the ESA Contract and is payable under and in accordance with this Contract and (ii) funding from the ArQit private
investment sources referenced in Recital (2) which shall be payable under a separate commercial agreement dated on or about the date
hereof between the Customer and the Contractor (“Commercial Agreement”).

 

		7.	NOW, THEREFORE THIS CONTRACT WITNESSETH THAT, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound hereby, the Parties hereto agree with each other as follows:

 

    2

     

    

 

Clause 1 - Definitions

 

1.1 Definitions:

 

Capitalised terms used and not otherwise defined
herein shall have the following meanings:

 

"Acceptance" means written acknowledgement
by the Customer that the Services, or part of them, have been completed in accordance with the Technical Requirements and Service Specification,
and "Accept" and "Accepted" shall be construed accordingly.

 

"Acceptance Certificate" means a certificate
issued by the Customer in accordance herein, acknowledging that the Services have met the Acceptance Tests.

 

“Acceptance
Testing” shall mean any Spacecraft level testing carried out in accordance with the terms of, or in the performance of, this
Contract whether through a Factory Acceptance Test, In-Orbit Testing or otherwise.

 

“Background Intellectual Property Rights”
means all Intellectual Property Rights not developed under this Contract either prior to or during execution of the Contract which are
used by the Customer and/or the Contractor to complete the Contract or required for use of any product, application or result of the Contract.

 

“Commercial Agreement” shall have
the meaning ascribed thereto in Recital (6).

 

“Constructive
Total Loss” shall mean (a) the loss amount or the cumulative loss amount for all partial losses is equal to, or greater
than 75% of the amount of insurance; or (b) the Satellite loses 75% of its service capacity as measured by achievable key throughput
during the coverage period; or (c) the Satellite is not capable of reaching or maintaining its specified orbit within 180 days
after Launch; or (d) the cost of repairing the Satellite equals or exceeds the replacement value of the Satellite.

 

“Contract” shall mean, unless the
context otherwise provides, this Contract between the Contractor and the Customer and all Annexes attached hereto, and any amendments
to each of the foregoing.

 

"Contract
Price” shall mean the price set forth in Clause 3 (Price).

 

"Customer
Items" shall mean all equipment, software and all other items provided or to be provided by the Customer to the Contractor, (directly
or indirectly) as identified in the Statement of Work as set out in Annex B, QKDSat Space Segment Statement of Work.

 

“Data and Documentation” shall mean
the written information to be supplied by Contractor to Customer in accordance with Annex B of this Contract.

 

    3

     

    

 

“Deliver” or “Delivery”
or “Delivered” shall occur with respect to the Spacecraft upon successful completion of the Pre-Shipment Review, but with
respect to all other deliverable items, Delivery shall occur upon the transfer of the item to the Customer or the final acceptance of
the item as set forth in the Contract.

 

“Delivery Date” shall mean the date
set out in Clause 4.1.

 

“Delivery
Item” shall mean each item to be delivered as part of the Work (including all Data and Documentation specifically required
to be provided to Customer). Where the context permits, as used herein the term “Deliverable Items” shall include and refer
not only to the whole of the items listed in Clause 4, but also every component part thereof.

 

“Direct
Competitor” shall mean any person, company or entity that offers to provide the same or substantially similar commercial
satellite QKD services and/or products as the Customer.

 

“EDC” shall mean the Effective Date
of Contract.

 

“ESA” or “the Agency”
shall mean the European Space Agency acting through its European Space Research and Technology Centre (“ESTEC”).

 

“ESA Contract” shall mean the contract
between the Customer and ESA dated 31 July 2019 as described in more detail in Recital 3 above.

 

“ESA Funded Milestone Payments” means
the funded amounts received by the Customer from ESA and payable to the Contractor in accordance with this Contract.

 

“ESA Funded Payment Milestone” means
the payment milestones identified in Annex A (Price and Payment Schedule).

 

"ESA
Items" means all equipment, software and all other items provided or to be provided by ESA to the Contractor, (directly or indirectly)
as identified in the Statement of Work as set out in Annex B, QKDSat Space Segment Statement of Work

 

“Equipment” shall mean the Spacecraft
and ground station equipment deliverable under this Contract as set forth in Clause 3 (Price).

 

“Excusable Delay” shall mean a delay
to Contract performance under Clauses 16.1 or 16.3 that is beyond the control, fault, or negligence of the Contractor.

 

“Final
Acceptance” shall have the meaning set out in QKDSat Space Segment Statement of Work.

 

“Force
Majeure Events” an event which is, unforeseeable, unavoidable and external at the time of Contract signature, occurs beyond
the control of the affected Party and renders the performance of the Contract impossible for the affected Party, including but not limited
to: Acts of God, Governmental Administrative Acts or omissions, consequences of natural disasters, epidemics, war hostilities, terrorist
attacks.

 

    4

     

    

 

“Foreground IPR” shall mean Intellectual
Property Rights resulting directly from and authored, conceived, developed, reduced to practice or otherwise
created during the performance of this Contract including Intellectual Property Rights created under the Contractor’s contracts
with its Subcontractors.

 

“GCC” shall mean the General Clauses
and Conditions for ESA Contracts ESA/REG/002, Rev.2.

 

“Good
Industry Practice” shall mean the exercise of that degree of skill, care, prudence, efficiency, foresight and timeliness
as would be expected from a market leading provider of the relevant services.

 

“Intellectual Property” shall mean
patents, copyright, designs, trade or service marks (whether or not registered), rights in inventions and confidential information, semiconductor
topography rights, database rights or other similar rights in any country and any applications for registration of any of the foregoing.

 

“Integrated Satellite” shall mean
the final integrated satellite ready for launch, comprising all hardware and software elements of the platform, specific satellite level
integration, verification and handling procedures as well as the associated satellite level documentation and mathematical models supporting
the design as well as the GSE needed to operate the satellite while on-ground.

 

“Intentional Ignition” shall have
the meaning ascribed to it in the Customer’s launch insurance policy or if not defined therein “Intentional Ignition”
shall mean the time at which the command signal is sent to ignite the engine of the Launch Vehicle for the purpose of achieving Launch.

 

“Launch” shall have the meaning ascribed
to in the Launch Agreement.

 

“Launch Agreement” shall mean the
agreement entered into between Customer and the Launch Services Agency.

 

“Launch Services” shall mean the services
to be performed by the Launch Services Agency.

 

“Launch Site” shall mean the physical
property used by the Launch Services Agency from which the Spacecraft is launched into orbit.

 

“Launch Vehicle” shall mean the specified
launch vehicle selected by the Customer to be supplied by the Launch Services Agency for the purposes of launching the Spacecraft.

 

“Launch Services Agency” shall mean
the subcontractor selected by the Customer to supply the Launch Services.

 

    5

     

    

 

“LEOP”
means launch and early orbit phase, as described in Annex B, QKDSat Space Segment Statement of Work.

 

“Major Subcontractor” shall mean any
Subcontractor providing an item(s) under this Contract with a price that exceeds one million euros in the aggregate or is critical
to delivery.

 

“Non-Excusable Delay” shall mean a
delay in Delivery of the Spacecraft for reasons that are not excusable pursuant to Clause 16.1 or Clause 16.3.

 

“Payload” shall mean the payload systems
to be flown on the Satellite to deliver Quantum Key Distribution services and provided by the Contractor under and in accordance with
this Contract. These include the Quantum Sources, Classical and Quantum Optical Communications Equipment, Optical Terminal, Payload Computer &
Software and associated items.

 

“Phase 1” shall have the meaning ascribed
thereto in Clause 2.1.

 

“Phase 2” shall have the meaning ascribed
thereto in Clause 2.1.

 

“Platform” shall mean all infrastructure
elements of the Satellite which will accommodate and support function of the Payload.

 

“QKDSat” shall have the meaning ascribed
thereto in Recital 3.

 

“Qinetiq Launch Services” shall mean
the Contractor’s activities at the Launch Site to make ready the satellite for Launch and the control of the satellite during LEOP
and in-orbit testing as described in Annex B, QKDSat Space Segment Statement of Work.

 

“Pre-Shipment
Review” shall mean the Review at which the Contractor evidences the Spacecraft’s readiness for Launch and at which
Customer agrees with this assertion which shall occur prior to shipment by the Contractor to the Launch Site as set out in greater detail
in Clause 6.1 hereof.

 

“QKDSat Project” is a project under
the new ARTES Partner Element and established under Sub-element 11 thereof, and defined in the ESA Contract as having the following aims:
(a) to de-risk and optimise the innovative QKD Space and Ground technologies, for cost, performance, quality and security level of
the services delivered globally; (b) to gain an early mover advantage by successfully implementing and deploying a space centric
QKD infrastructure and delivering QKD services offered through optimised service delivery models and mechanisms; (c) to validate
the service proposition and secure market acceptance, by deploying pre-operational QKD services direct to users and quantum networked
customers; and (d) to improve commercial adoption and catalyse future opportunities for a European micro satellite platform through
product optimisation, qualification and deployment in QKD mission.

 

    6

     

    

 

“Right of First Refusal” shall mean
a contractual right that gives the holder the option to enter into agreement before the one who offered the right is entitled to enter
into that transaction with a third party. The ROFR gives the holder the right to match all other offers and best available terms. Only
if the entity with the right of first refusal declines to enter into a transaction, the one who offered the right is free to enter into
a transaction with another bidder who provided better terms.

 

“Services”
shall mean the services and training provided by Contractor and purchased by Customer under this Contract in accordance with Clause
3 (Price).

 

“Spacecraft” shall mean the Satellite(s),
identified as QKDSat, whose attributes are set out in Annex C. For purposes of this Contract, the term “Spacecraft” is synonymous
with the term “Satellite.”

 

“Spacecraft
Mission Life” shall mean the seven year period commencing on the later of the date of the completion of in-orbit testing,
or thirty (30) days after Launch.

 

"Spacecraft
System Performance Specification" shall mean the Spacecraft requirements specifications set forth in Annex C, QKDSat Space
Segment Requirements.

 

“Subcontractor”
shall mean a subcontractor of the Contractor in relation to the performance of the Contractor’s obligations under this Contract.

 

“Support
Services” shall mean the Launch and Mission Operations Support Services by Contractor set forth in Annex B, QKDSat Space
Segment Statement of Work.

 

“Termination Date” shall mean the
date which is twelve (12) months from the agreed Delivery Date.

 

“Third Party” means a natural or legal
person not having signed the Contract.

 

“Work” shall mean all design, development,
construction, manufacturing, labour, services, and acts, including tests to be performed, and any and all Deliverable Items, equipment,
materials, articles, matters and services to be furnished under this Contract.

 

1.2 Interpretation

 

In this Contract, unless the context otherwise
requires:

 

		a)	words in the singular include the plural and vice versa and words in one gender include any other gender;

 

    7

     

    

 

		b)	"including" means including without limitation and "include" and "includes"
shall be construed accordingly;

 

		c)	a reference to a statute or statutory provision includes:

 

	 	 	i.	any subordinate legislation (as defined in Section 21(1), Interpretation Act 1978) made under
it;
	 	 	ii.	any repealed statute or statutory provision which it re-enacts (with or without modification); and
	 	 	iii.	any statute or statutory provision which modifies, consolidates, re-enacts or supersedes it;

 

		d)	a reference to:

 

	 	 	i.	any party includes its successors in title and permitted assigns;
	 	 	ii.	a "person" includes any individual, firm, body corporate, association or partnership, government
or state (whether or not having a separate legal personality); and
	 	 	iii.	a Clause or Appendix is to a clause of or an appendix to this Contract.

 

		e)	the table of contents and the headings of Clauses are for reference only and shall not affect the interpretation
of this Contract.

 

Clause 2 – Supply of Services
and Equipment

 

2.1 Structure of ESA Contract

 

Under the ESA Contract, the Customer has agreed
to carry out all work necessary to perform all the activities related to the design, development, manufacturing, assembly, integration,
verification activities, obtaining of licences, launch of the QKDSat into a LEO orbit and deployment and pilot operations of the QKDSat
system. Under article 1.1.1 of the ESA Contract, the work under the ESA Contract will be performed in two phases, namely Phase 1 “Preliminary
Design” and Phase 2 “Detailed Design and Implementation. Phase 1 covers all the activities up to and including successful
Segments Preliminary Design Reviews (“Seg-PDR”) including payload, user, control and service (“Phase 1”). Phase
1 includes an Option (so called “Programmatic Headstart Phase C” that shall be activated via a Contract Change Note procedure
between the Customer and the Agency. Phase 2 covers all remaining activities up to end of service deployment and validation including
the following steps: (i) System Detailed Definition; (ii) Manufacturing, Integration and Verification Testing Acceptance;
(iii) Deployment and Commissioning; and (iv) Service Deployment and Validation (“Phase 2”).

 

    8

     

    

 

2.2 Phase 2

 

Under article 1.1.2 of the ESA Contract, the decision
process whether to proceed or not with Phase 2 will be initiated immediately after successful System Preliminary Design Review (“S-PDR”)
and at the latest at successful Payload Preliminary Design Review (“PL_PDR”). Phase 2 shall proceed subject to the fulfilment
of a number of conditions, including the following:

 

		a)	successful S-PDR;

 

		b)	availability of ESA’s funding for completion of financial coverage of Phase 2 activities;

 

		c)	demonstration of availability of the Customer’s funding for the completion of Phase 2 activities;

 

		d)	successful achievement of the technical criteria set out in section 4.5 of the ESA Contract statement
of work; and

 

		e)	acceptance by ESA according to the criteria as defined in Annex A to Appendix 3 of ESA RFQ/3-15929/19/UK/ND,
of the Customer’s proposal relevant to the conversion of the Ceiling Price into a Firm Fixed Price for Phase 2; and

 

		f)	the signature of the CCN for Phase 2 by both parties;

 

The Customer is permitted to start Phase 2 only
upon receipt of written notification from ESA of the relevant authorisation to proceed. Further, until ESA and the Customer agree to proceed
with Phase 2 under and in accordance with that contract, ESA’s commitments and financial liabilities are limited to Phase 1 only.
Notwithstanding the foregoing, it is the intention of the Parties to proceed with Phase 2 and, if and to the extent the Parties do so
agree, the respective rights and responsibilities of each of the Customer and the Contractor in Phase 2 shall be set out herein and in
the Commercial Agreement.

 

2.3 Element of Work – Spacecraft and other Deliverable Items

 

Subject to the Terms and Conditions of this Contract,
Contractor shall sell and Customer shall purchase one (1) Spacecraft to be designated QKDSat, and all other Deliverable Items specified
herein. The Contractor shall furnish and perform all the elements of the Work and shall provide the necessary personnel, equipment, material,
goods and services, and facilities (except as hereinafter specified to be provided by the Customer) incidental thereto. Contractor shall
furnish the Work in accordance with the provisions of this Contract, including all Annexes listed in Clause 2.4 (Annexes).

 

    9

     

    

 

2.4 Annexes

 

The
Work to be performed by Contractor under this Contract shall include, and be governed by, the Exhibits listed below which are attached
hereto and made a part hereof. In the event of any ambiguity, conflict or inconsistency among or between the various parts of this
Contract, including the Exhibits attached hereto and incorporated into this Contract, such conflict or inconsistency shall be resolved
by giving precedence to the Terms and Conditions of this Contract without the Exhibits and then to the Exhibits in the order listed below:

 

	Annex	 	Title	 	ID	 	Version
	A	 	Price and Payment Schedule	 	N/A	 	N/A
	B	 	QKDSat Space Segment Statement of Work	 	QKDSat.SoW.00132.ARQ	 	1.2
	C	 	(Preliminary) QKDSat Space Segment Requirements	 	QKDSat.REQ.00097.QS	 	1.0
	D	 	(Preliminary) QKDSat Space Segment Product Assurance Requirements	 	QKDSat.REQ.00093.QS	 	1.0
	E	 	Key Personnel	 	N/A	 	N/A
	F	 	ArQit-ESA QKDSat Contract (Reference Document - only applicable to the extent specified herein.)	 	4000127860/19/UK/ND	 	N/A

 

These Annexes shall be updated to the extent necessary
as part of the Phase 2 Conversion Process in accordance with Clause 2.

 

2.5 Customer Obligations

 

2.5.1 - The Customer shall provide any required
data and Customer furnished equipment as set out in Annex B, QKDSat Space Segment Statement of Work to permit the Contractor to complete
its obligations under this Contract. Notice of any changes shall be provided in a timely manner and in accordance with Clause 26 (Changes).
Such list of requirements shall be incorporated into this Contract.

 

2.5.2
- The Customer recognises that the Contractor's performance of its obligations under this Contract is dependent on the Customer's delivery
of the items (if any) identified in Annex B, QKDSat Space Segment Statement of Work, according to the schedule specified. Any delay
in said delivery shall constitute an Excusable Delay entitling the Contractor to an extension in the period of performance for that portion
of the Contract for which the Contractor's performance is dependent upon items to be delivered by the Customer. The extension for Excusable
Delay shall be equal to the length of the delay provided that the Contractor shall use all reasonable endeavours to mitigate the effects
of such delay.

 

2.5.3 - The Customer shall in accordance with
Good Industry Practice procure and maintain adequate launch insurance and, if and to the extent relevant/required, export risk insurance.
Upon request by Contractor, the Customer shall provide a copy of the launch and export risk insurance.

 

    10

     

    

 

Clause 3 - Price

 

3.1 Type of Price

 

3.1.1            The
total price of this Contract amounts to € [***]. The price is broken down in Euros per Phase as follows:

 

	Phase 1 (FFP)	 	 	Phase 1 (Option 1)	 	 	Phase 2 (Ceiling Price)	 	 	Total
	 
	€	1,243,312	 	 	€	275,379	 	 	€	[***]	 	 	€	[***]	 

 

    which is broken down
as follows:

 

	Entity	 	Activity	 	Phase 1 (FFP)	 	 	Phase 1

(Option1)	 	 	Phase 1

(Option2)	 	 	Phase 2

(Ceiling Price)	 
	QinetiQ Space	 	Space Segment Prime 
Satellite Platform Prime 
Satellite Payload Prime 
Satellite QKD Payload Administrative Prime (Procurement, Administration & final Satellite Integration) 
Satellite Control Prime and Software Supplier 
Overall satellite design, manufacture, AIT and IoT	 	€	930,536	 	 	€	275,379	 	 	€	0	 	 	€	[***]	 
	Fraunhofer IOF	 	Satellite QKD Payload Technical Prime (Design, Development, MAIT) 
Payload Design Authority 
Payload optical bench, thermal hardware, GSE 
Support to payload satellite integration and calibration 
Support to payload operations during in-orbit demonstration	 	€	0	 	 	€	0	 	 	€	0	 	 	€	0	 
	QT Labs	 	Quantum Link Design Authority 
QKD Payload Architecture (EPS)	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	€	716,532	 
	Mynaric	 	Payload Optical Terminal 
Payload Classical Optical Comms	 	€	0	 	 	€	0	 	 	€	0	 	 	€	0	 
	ESC Aerospace	 	Payload Software Supplier	 	€	312,776	 	 	€	0	 	 	€	0	 	 	€	400,616	 
	TBD	 	Payload Computer Supplier	 	€	0	 	 	€	0	 	 	€	0	 	 	€	0	 

 

    11

     

    

 

3.1.2 The
type of price is set out in article 3.1 of the ESA Contract as follows:

 

		a)	For Phase 1 and Phase 1 Option: A Firm Fixed Price (as defined in Section 2.1 of Annex II to the
GCC).

 

		b)	For Phase 2: A Ceiling Price to be converted into a Firm Fixed Price (as defined in Section 3 of
Annex II to the GCC). It is the joint intention of the Customer and ESA that this conversion will be made before completion of the
preceding Phase 1 (and after submission by the Customer to ESA of a proposal to this effect, including ESA forms PSS-A2, PSS-A8,
and A15). This Ceiling Price is deemed to include (i) price escalation for the period in which the work is scheduled to be performed
and (ii) all applicable fees for licences to be purchased and delivered under the Contract. The Ceiling price assumes (i) critical
payload performance is demonstrated in phase 1, (ii) EU to UK exchange rates do not vary by more than 20% between EDC and conversion
of phase 2 price conversion and (iii) to the payload computer procurement does not total to more than €1.5M. In order to assist
the Customer to effect the conversion of the aggregate Ceiling Price to a Firm Fixed Price under the ESA Contract, the Contractor shall
provide to the Customer (i) a draft proposal for the conversion of its ceiling price to a firm fixed price no later than -one (1) months-
before S-PDR followed by (ii) a binding proposal for the conversion of its ceiling price to a firm fixed price -one week after- closure
of S-PDR, which binding proposal shall inter alia provide justification for any price delta from the draft proposal. Any proposed changes
accepted by the Customer shall be introduced into this Contract by means of Contract Change Note prior to the initiation of Phase 2.

 

3.1.3 – The Phase 1 Option 1 (so called
 “Programmatic Headstart Phase C”) consists of a defined programme of work defined in Annex B (Statement of Work) of this Contract,
and shall be included as Work under this Contract via a CCN procedure following activation of the Customer’s option with ESA as
described in Clause 2.1. The Contractor agrees that this option is exercisable at the Customer’s discretion.

 

3.1.4 – The Phase 1 Option 2 (so called
 “EPS development”) consists of a work package B2081.46 which is defined in Annex B (Statement of Work), and shall be included
as Work under this Contract via a CCN following activation of that option. The Contractor agrees that this option is exercisable at the
Customer’s discretion.

 

3.1.5 - A risk financial reserve for Phase 1 activities
amounting to €[***] is included in the Phase 1 total price above. The implementation of this reserve for activities may be released
only after submission to the Customer of a change control note which will require authorisation by the Customer and ESA in a co-chaired
 “Change Review Board”. The Contractor acknowledges that, until such authority is given by the Customer and ESA, there is no
guarantee that such reserve will be released. Any unspent amount of the financial risk reserve at the end of Phase 1 will be transferred
to Phase 2, or returned to ESA should Phase 2 not be released.

 

    12

     

    

 

3.1.6 - A risk financial reserve for Phase 2 activities
amounting to €[***] is included in the Phase 2 total price above. The implementation of this reserve for activities may be released
only after submission to the Customer of a change control note which will require authorisation by the Customer and ESA in a co-chaired
 “Change Review Board”. The Contractor acknowledges that, until such authority is given by the Customer and ESA, there is no
guarantee that such reserve will be released. The use of any unspent amount of the financial risk reserve at the end of Phase 2 will be
agreed at time of Phase 2 Price Conversion Proposal.

 

3.1.7 The Customer shall at its sole discretion
be able to remove the QTL activities from the scope of supply at Phase 2 and supply these as Customer Furnished Items to the Contractor.
In this case, the Ceiling Price for Phase 2 shall be reduced by €716,532.

 

3.1.8 In
consideration for the supply of the Services and Deliverable Items, bifurcated payments shall be made by the Customer, as follows:
(i) partial funding from ESA which is flowed down from the ESA Contract and is payable under and in accordance with this
Contract and (ii) partial funding from the Customer private investment sources which is payable under the Commercial Agreement.
It is a requirement of ESA that the different payment terms that apply to the Commercial Agreement payments are set out in a
separate agreement.

 

3.1.9 - The Customer shall pay that part of the
price which relates to the ESA partial funding (“ESA Funded Milestone Payments”) as set out in Annex A (Price and Payment
Schedule) for the Services and Deliverable Items to be supplied under this Contract in accordance with the applicable ESA Funded Payment
Milestones. All ESA Funded Milestone Payments are subject to the full, satisfactory and timely completion of all activities in relation
to the applicable ESA Funded Payment Milestone.

 

3.1.10
- Upon the full, satisfactory and timely completion and delivery, as required, of the items of Work specified in this Contract for each
ESA Funded Payment Milestone and upon acceptance by the Customer in accordance with the requirements of this Contract, the Contractor
shall be entitled to payment by Customer of each ESA Funded Milestone Payment in accordance with the provisions of Annex A, (Price and
Payment Schedule). Each ESA Funded Milestone Payment shall be payable by Contractor submitting an invoice to Customer, together
with a Milestone Completion Certificate.

 

3.1.11
- In a written notice received by the Contractor no later than fifteen (15) days after receipt by the Customer of an invoice and Milestone
Completion Certificate in connection with an ESA Funded Milestone Payment, the Customer may dispute timely completion of the Milestone
associated with such ESA Funded Milestone Payment in the event it reasonably and in good faith concludes that the Contractor has failed
to fulfil the requirements for such Milestone and payment may be withheld for such an event. Notwithstanding the foregoing, failure
by the Customer to notify the Contractor within fifteen (15) days shall not operate as a waiver of the Milestone or the Customer’s
right to dispute the Invoice (acting reasonably), or any part thereof. The Customer shall identify in writing the reason for its conclusion
and what the Contractor must do to achieve the Milestone. Once the Contractor completes the subject event, the payment for such Milestone
shall be made. In the event it is determined, either by agreement of the Parties or by dispute resolution pursuant to Clause 29 hereof,
that the Milestone with respect to which such notice was received was completed as of the date of the invoice, the Contractor shall be
entitled to be paid interest at the rate specified in Clause 5.5 on the disputed amount for each day after the date such Milestone
was due for payment until the day payment is made.

 

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3.1.12
- No liquidated damages for late Delivery are payable under this Contract.

 

3.1.13 - The Customer shall not be liable to reimburse
any costs or expenses incurred by the Contractor, except to the extent expressly provided for in this Contract, and then only where they
are reasonably and properly incurred by prior agreement with the Customer and are validated to the Customer’s reasonable satisfaction.

 

3.2 Taxes

 

3.2.1 - The Contract Price excludes VAT but is
gross of any withholding taxes and shall include all transportation and related costs, as well as transit insurance to the applicable
Launch Site using Contractor’s commercial packaging and shipping practices. If and to the extent any change of law or regulation
(whether by way of the United Kingdom’s exit from the European Union or otherwise) results in a new or increased or otherwise adverse
change to ArQit’s liability to pay VAT or withholding taxes, the Parties shall discuss and agree in good faith appropriate measures
to mitigate to the greatest extent reasonably practicable the effect of such new, increased or adverse tax changes.

 

3.2.2 – Subject to Clause 3.2.1 above, the
Contractor shall be responsible for payment of any and all Belgian taxes as part of the Contract Price in this Clause.

 

3.3 Post- Completion Certification

 

3.3.1 - The Contractor shall provide, on completion
of the Contract, the following documents signed by a senior financial representative:

 

(1) a presentation by the Contractor on (one
or more) PSS-A2 form(s) with relevant Exhibit A, of the cost actually incurred for work and services under the Contract; and

 

(2) a certification from the Contractor as
follows:

 

“I, (insert name) do hereby certify that
the costs presented in the enclosed PSS-A2 form(s) are, to the best of my knowledge and belief, a true statement of the costs incurred
under this contract, an internal audit of the costs having been conducted to verify that the company’s cost accounting system and
rules and the Agency’s requirements in Annex I to the GCC with respect to costs incurred under the contract have been observed.
I further certify that the company’s contribution to this co-funded contract has been provided from (specify source) and has not
been and will not be included in rates and overheads applied for the Contract or any other contract with the Agency."

 

3.3.2 - The Contractor undertakes to permit ESA
to effect cost control operations as stipulated in Annex I to the GCC, with regard to the information included in the Contractor's financial
statement. ESA’s right to exercise the above cost control shall cease one year after submission of the Contractor's certified statement
of cost unless it is delayed for reasons for which the Contractor is responsible.

 

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Clause 4 - Delivery

 

4.1 Delivery

 

All Deliverable Items to be delivered and the
corresponding Delivery Date and points of Delivery are set forth below:

 

	Deliverable Item No.	 	 	Quantity	 	 	Description	 	Delivery Location	 	Delivery Date
	0	 	 	 	N/A	 	 	Phase 1 Deliverables defined as per the QKDSat Space Segment Statement of Work	 	Electronic Submission to the Customer	 	10 Mar 2020
	1	 	 	 	1	 	 	QKDSat Spacecraft	 	Contractor’s Facility (Upon completion of Pre-Ship Review)	 	 30-May 2022
	2	 	 	 	1	 	 	Launch Readiness Review	 	Launch Site (baselined in Europe or the U.S. Any changes to this baseline to be implemented in accordance with Clause 26, Changes)	 	Predicted to be July 2022 but subject to Launch Services Agency
	3	 	 	 	N/A	 	 	Other Phase 2 Deliverables as per the QKDSat Space Segment Statement of Work	 	As per the QKDSat Space Segment Statement of Work	 	As per the QKDSat Space Segment Statement of Work

 

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4.2 Mitigating Delays

 

The Contractor shall advise the Customer promptly
upon becoming aware of any unforeseen technical, design or system/subsystem integration issue, circumstance or development relating specifically
to any associated contracts which threatens its proposed date for Delivery of the Spacecraft or any other Delivery Items. In such circumstances,
the Contractor will employ all required resources to rectify the issue, circumstance or development. The Contractor shall concurrently
within ten (10) Business Days of advising the Customer submit a recovery plan to be approved by the Customer and if required ESA
outlining in detail how the Contractor will mitigate the effect of the delay so as to ensure that the relevant date for Delivery of the
Spacecraft or any other Delivery Items is met. The Contractor may not delay any Delivery Items for reasons connected with delays in other
contracts with its other customers.

 

4.3 Contractor Responsibility

 

Contractor shall be responsible for the Delivery
of all Deliverable Items under this Contract to the specified location. Subject to Clause 17.1, the Contractor shall be responsible for
securing any necessary government approvals, including any relating to import to Belgium of items to be delivered to the Contractor by
the Subcontractors and any export from Belgium of the Deliverable Items as necessary to perform its obligations under this Contract. All
Governmental Approvals required for compliance with Contractor’s obligations under this Contract shall be referred to as “Export
laws.” Customer agrees to cooperate with Contractor in executing such documents as shall be necessary for compliance with Governmental
Approvals under Export Laws. Prior to the commencement of Phase 2, the Parties shall discuss and agree in good faith the spares policy
and the Contractor shall ensure that for the duration of Phase 2 in accordance with Good Industry Practice it has sufficient spares in
order to deliver the Spacecraft in accordance with the schedule set out in this Contract. The Contractor agrees that it shall not be an
Excusable Delay if delivery is delayed because the Contractor does not hold sufficient spares in accordance with Good Industry Practice.

 

The Customer shall provide any required data and
Customer furnished items to permit the Contractor to complete its obligations under this Contract. The schedule for providing said items
shall be in accordance with the Contractor’s requirements agreed with the Customer in writing in advance. The Contractor shall notify
and agree with the Customer to develop the initial list of required data and items and the required date for delivery of those items.
The Customer recognises that if and to the extent the Contractor’s performance of its obligations under this Contract is dependent
on the Customer’s delivery of the items according to the agreed schedule, any delay in the said delivery arising directly from Customer’s
delay, shall constitute an Excusable Delay. Such Excusable Delay shall be commensurate with the delay equal to the Customer’s delay
in delivering the Customer furnished items or the required data unless demonstrated otherwise and agreed by the Parties.

 

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4.4 Direct Competitors

 

4.4.1 - During the Term, the Contractor shall
not enter into any agreement with a Direct Competitor under which agreement the Contractor agrees to supply to that Direct Competitor
satellite QKD services identical or substantially similar to the Deliverable Items and/or the Services provided under this Contract.

 

4.4.2 - For the avoidance of doubt, the provisions
above shall not encompass Deliverable Items or constituent parts which exist as off-the-shelf products or on which no development work
has been performed as part of the QKDSat Project. Further, it shall not encompass standard services which are not specifically applicable
to satellite QKD, including general satellite construction, engineering, consultancy or support services.

 

Clause 5 - Payment

 

5.1 Spacecraft

 

5.1.1
- Payment by the Customer to the Contractor of the Phase 1 and Phase 2 Firm Fixed Prices (as may be adjusted by the Parties in accordance
with the terms and conditions set forth in this Contract) shall be made in accordance with the Milestone Payment Plan and the conditions
specified therein. The amounts specified in the ESA Milestone Payment Plan shall in each case be paid by the Customer to the Contractor
within thirty (30) days after receipt by the Customer of a valid invoice from the Contractor and payment to the Customer of the relevant
funds by ESA unless otherwise specified herein. ArQit undertakes to submit invoices to ESA on a timely basis under and in accordance with
the ESA Contract and, if and to the extent that it has not done so or has otherwise failed to perform its obligations (including those
related to timing) under the ESA Contract and such failure has solely and directly caused the non-payment of the ESA Funded Milestone
Payment by ESA, ArQit shall be required to make payment of the ESA Funded Milestone Payment to Qinetiq notwithstanding non-payment of
that amount by ESA. Each invoice shall be sent in electronic copy to the Customer followed by an original. The invoice must be
accompanied by a certification from an officer of the Contractor, that the particular milestone events (for which payment is being claimed
in each case) have been completed accompanied by supporting documentation demonstrating completion of such milestone.

 

5.1.2 - Contractor shall submit invoices as milestones
are completed and in accordance with the ESA Milestone Payment Schedule.

 

5.2 Currency, Method and Receipt of Payment

 

The Total Contract Price set out in Clause 3,
shall be paid by Customer to Contractor in accordance with Annex A, (Price and Payment Schedule). All payments and/or refunds due from
either Party to the other shall be made in Euros. Payments and/or refunds to a Party shall be made by wire transfer of funds, with reference
to the invoice number being paid in the detail section of the payment, to such place for payments and/or refunds as the receiving Party’s
Authorised Representative may designate from time to time in writing.

 

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5.3 Payments to Contractor

 

Unless Contractor otherwise notifies the Customer,
all payments of Contractor’s invoices shall be made by the Customer to:

 

[***]

 

5.4 Payments to Customer

 

Unless Customer otherwise notifies the Contractor,
all refunds, credits or other amounts due to the Customer hereunder shall be made by the Contractor to:

 

[***]

 

Except as otherwise expressly stated herein, all
payments by one Party to the other shall be made within thirty (30) days after receipt by the other Party of a facsimile or electronic
invoice and payment to the Customer of the relevant funds by ESA.

 

5.5 Work Stoppage

 

Without prejudice to Clause 3.1.9 above, in the
event Customer fails to pay any amounts due by it to the Contractor within the times specified in this Contract, which amounts are not
subject to good faith dispute, by written notice to Customer, if such failure is not corrected by Customer within sixty (60) days after
written notice is given by Contractor, or such longer period as Contractor may agree, Contractor may stop all work under the Contract
until such failure is corrected. Contractor shall immediately resume work under the Contract when the failure is corrected, and the Parties
shall negotiate in good faith an equitable adjustment to schedule and Contract price (if appropriate) and any other affected terms and
conditions to reflect the reasonable impacts on Contractor resulting from the work stoppage.

 

5.6 Set Off

 

In the event that one Party (“the Creditor”)
has not paid the second Party (“the Debtor”) any amount which is due and payable to the Debtor under the Contract, such Debtor
shall have the right to set off such amount against payments due to the Creditor under this Contract, provided any amount genuinely in
dispute shall not be considered due and payable while the dispute is being resolved.

 

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Clause 6 - Acceptance

 

6.1 Spacecraft Acceptance

 

6.1.1
- The Spacecraft shall be tested prior to shipment by the Contractor to the Launch Site and the results of such tests presented to Customer
at the PSR (“Pre-Shipment Review”) pursuant to and in accordance with the test requirements set forth in the Contractual Annexes.
The purpose of the Pre-Shipment Review shall be to demonstrate that the Spacecraft meets the performance specifications set forth in the
Spacecraft System Performance Specification. The Contractor shall provide the Customer and ESA with fifteen (15) business days’
prior written notice of the projected date on which the Pre-Shipment Review will take place and the Customer and ESA shall be given the
opportunity to participate therein. If the Customer and/or ESA are unable to participate in the Pre-Shipment Review on the date proposed
by the Contractor, the Customer and ESA shall propose an alternative date within ten (10) days of the date originally proposed by
the Contractor. Provided that the Contractor has given the prior written notice as required above, the Contractor shall not be responsible
for any delay as a result of the later Pre-Shipment Review. The Customer and ESA shall notify the Contractor, in reasonable detail, at
the Pre-Shipment Review of those elements of the Spacecraft, if any, which do not conform to the requirements of this Contract and the
Contractor shall promptly and fully remedy any such non-conformances and re-perform all relevant tests and provide the Customer and ESA
with the results thereof in order that the Customer and ESA may verify that such non-conformances have been remedied or dispositioned
and, if necessary, notify the Contractor of any un-remedied non-conformances, in which case this Clause 6.1.1 shall again apply. If there
are no such non-conformances or at the point that all non-conformances are resolved and the Pre-Shipment Review demonstrates that the
Spacecraft is in compliance with this Contract, the Customer and ESA shall, at the time, declare the Pre-Shipment Review completed. Upon
such Acceptance, the Customer and ESA shall provide the Contractor with written approval to ship the Spacecraft to the Launch Site.

 

6.1.2
- Upon arrival of the Spacecraft at the Launch Site, the Contractor shall promptly conduct a Spacecraft inspection and perform tests in
accordance with the Launch Site Test Plan and relevant portions of the Test Plan in the presence of the Customer and if appropriate ESA.
The Contractor shall then conduct a Launch Readiness Review as set forth in Annex B, QKDSat Space Segment Statement of Work. At this time,
the Contractor shall certify Spacecraft compliance or notify the Customer and ESA of those items which fail to meet the Spacecraft System
Performance Specification. Upon Contractor remedy of items that fail to meet the Spacecraft System Performance Specification, or upon
satisfactory completion by Contractor of other conditions mutually acceptable to the Customer and ESA and the Contractor, the Customer
and ESA shall provide written certification of Final Acceptance of the Spacecraft. If the Customer and ESA fail to provide such authorization
within ten (10) days of satisfactory completion of all tests, Final Acceptance shall have been deemed to have occurred. Notwithstanding
the foregoing, the Customer’s Final Acceptance shall not operate as a waiver of any of its rights or remedies under this Contract.

 

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6.2 Final Acceptance of Non-Spacecraft Items

 

Final
Acceptance of non-Spacecraft items shall take place after Delivery by the Contractor to the destination and, if required, completion of
installation, inspection, and Acceptance Tests. Customer and ESA shall either finally accept the same in writing or notify the Contractor
in writing within ten (10) days of delivery of those particulars in which the item(s) to be delivered do not meet the requirements
of the Contract. If the Customer and/or ESA notifies the Contractor of any particulars in which the Deliverable Item does not conform
to the requirements of this Contract, the Contractor shall promptly and fully remedy any such non-conformances and provide the Customer
and ESA with the results thereof in order that the Customer and ESA may verify that such non-conformances have been remedied or dispositioned
and, if necessary, notify the Contractor of unresolved non-conformances, in which case this Clause 6.2 shall again apply. Upon remedy
of such particulars to meet the requirements of the Contract, or in the event Customer and/or ESA do(es) not notify Contractor in writing
within said ten (10) day period, the item(s) involved shall be deemed to have been delivered and Final Acceptance is to have
taken place in relation to those item(s).

 

6.3 Final Acceptance of a Spacecraft to be
Stored

 

Final Acceptance of a Spacecraft to be stored
shall be made prior to delivery of the Spacecraft to the storage site in accordance with the provisions of Clause 30 (Options).

 

Clause 7 – Specific ESA Requirements

 

7.1 ESA Contract / GCC Flowdown

 

The
Parties acknowledge that the ESA Contract (which incorporates the terms of the GCC except where specifically amended) as appended hereto
as a reference document in Annex F (ESA Contract) sets out certain specific terms and conditions (including the securing of certain Agency’s
rights herein) which are required to be reflected in each of the Customer’s subcontracts, including this Contract. For the avoidance
of any doubt, the ESA Contract and/or GCC only apply to this Agreement if these are expressly mentioned and referenced in this Contract.
The Parties therefore agree that this Contract incorporates those terms and conditions by reference mutatis mutandis. The Contractor
acknowledges that certain of the documents appended to the ESA Contract are considered by ArQit to commercially sensitive and confidential
and have therefore been redacted in full or part.

 

7.2 Implementation of payments conditions and
ESA Right to Inspect

 

7.2.1
- Under article 2.3.2 of the ESA Contract, the Customer must provide for the implementation of certain payment conditions and rights with
respect to its subcontractors. The provisions of article 3.2.3 of the ESA Contract are therefore incorporated herein by reference,
as if set forth herein in full, mutatis mutandis. The Contractor shall provide all reasonable assistance to the Customer to enable it
to meet its obligations in this regard.

 

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7.2.1
- In addition, ESA has specifically reserved inspection and audit rights in clauses 8.2 – 8.6 of the GCC which are incorporated
herein reference, as if set forth herein in full, mutatis mutandis. Notwithstanding the foregoing, the Parties agree that it is
their joint understanding that clauses 8.2 – 8.6 of the GCC do not impose any obligation upon the Contractor to flow down the same
ESA inspection and audit rights to its subcontractors in the case those subcontractors do not receive any ESA funds and the Customer hereby
acknowledges and agrees that it shall not purport to flow down such obligation upon the Contractor. In respect of any audit carried out
by ESA, ESA has agreed in article 8.8 of the ESA Contract that: (i) it shall comply with reasonable security and confidentiality
procedures of the Contractor; (ii) the Contractor shall have no obligation to release information relating to other customers or
information related to costs or margins; (iii) the access provided to it shall be restricted to that relevant part(s) of premises
as a party used exclusively by the Contractor to perform the services under the Contract; and (iv) if ESA appoints a representative
or an authorised national agent, ESA shall ensure that such representative or agent shall not be a director competitor of the Contractor.

 

Clause 8 – Other Customer
Rights

 

In the event that the Contractor fails to Deliver
any other Deliverable Item by its Delivery Date and such late Delivery prevents the Customer from operating the Spacecraft, the Contractor
shall operate the Spacecraft itself at its sole expense and cost until such Deliverable Items preventing such operation are Delivered
to the Customer and the Customer has carried out all activities reasonably necessary thereafter in order to enable it to operate the Spacecraft
itself.

 

Clause 9 - Title and Risk of Loss

 

9.1 Title and Risk of Loss

 

9.1.1 -    Subject to the provisions of this Contract,
transfer of risk of loss to the Customer for the Spacecraft shall occur upon Launch, except as provided in Clause 9.1.3 below.

 

9.1.2
-    Title to the Spacecraft shall pass from the Contractor to Customer
in accordance with one of the following events, whichever occurs first after Launch:

 

		a)	Contractor completes the in-orbit testing, hands over the Satellite to the Customer and receives final
payment; or

 

		b)	In the event of a Total Loss or Constructive Total Loss upon the occurrence of the event which caused
such Loss. For the avoidance of doubt, in the event of a Loss after the Launch, Customer shall take title to the Satellite at the instant
prior to the occurrence of the event which caused such Total Loss or Constructive Total Loss.

 

Transfer of title to each Deliverable
Item (other than the Spacecraft) shall pass to the Customer at Final Acceptance.

 

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Any loss or damage to the items to be
delivered prior to Customer assumption of risk of loss shall be at the Contractor’s risk.

 

9.1.3 - Contractor hereby agrees that should there
be a Launch Abort or Terminated Ignition (as defined in the Launch Agreement) and the launch pad is declared open and/or safe by the launch
vehicle provider, care, custody, control and risk of loss shall revert to the Contractor. While the Spacecraft is in Contractor’s
care, custody, and control, the Contractor shall obtain ground and pre-launch insurance which will cover such an aborted Launch attempt
until a subsequent Launch.

 

9.2 Title of Non-Deliverables

 

Title to Spacecraft-unique test and handling equipment
(not deliverable under this Contract) for use in connection with inspection of the Spacecraft at the Launch Site and any applicable ground
system-unique test and handling equipment used at Customer’s designated installation site(s) shall remain with Contractor.

 

9.3 Title of Intellectual Property

 

9.3.1
- The Contractor grants to the Customer a non-exclusive, worldwide, royalty free transferable (except to a competitor of the Contractor)
licence to use and have used, for the Spacecraft Mission Life, any Intellectual Property now or hereafter owned by the Contractor, or
for which the Contractor has or may acquire the right to grant such a licence, which Intellectual Property is directly incorporated in
any Deliverable Item or directly employed in the use of any Deliverable Item, for the sole purpose of maintaining and operating the Spacecraft.

 

9.4 Delivery to Storage

 

In the event the Spacecraft is placed in storage
title and risk of loss to the Spacecraft shall remain with the Contractor.

 

9.5 Passing of Title

 

The Contractor warrants to the Customer that it
has and will transfer to the Customer good title to the items required to be delivered hereunder, free from any claim, lien, pledge, mortgage,
security interest or other encumbrance, including, but not limited to, those arising out of the performance of the Contractor's work hereunder.

 

9.7 ESA Contract: Transfer of Ownership and
Risk

 

9.7.1
- The Contractor acknowledges that, under articles 15.4.2 and 15.4.3 of the ESA Contract, ESA is entitled (if it terminates that contract
on any of the grounds specified in article 5 clauses 30, 31, 32, 33 therein) to acquire certain items and/or acquire the rights and liabilities
of the Customer under this Contract. The terms and conditions of articles 15.4.2 and 15.4.3 are therefore incorporated by reference,
as if set forth herein in full, mutatis mutandis and, if and to the extent ESA exercises these rights, the Contractor agrees to comply
with any such instructions from ESA in this regard.

 

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9.7.2 - If ESA exercises its right of termination
above, the Customer shall (within ten days of such termination) advise the Contractor in writing whether this will result in the automatic
termination of the Commercial Agreement in addition to the ESA Contract.

 

9.8 Contractor and ESA Items

 

9.8.1 - All Customer Items and/or ESA Items shall
remain the property of the Customer (or ESA as appropriate) and the Contractor shall (i) return them to the Customer or ESA (as appropriate)
upon completion or termination of the Agreement or earlier reasonable request by the Customer or ESA (as appropriate); (ii) keep
them securely and in good condition, segregated and clearly marked as the Customer or ESA property; and (iii) be fully liable for
any loss of or damage to them, except for depreciation caused by normal usage or wear and tear.

 

9.8.2 - Upon receipt of any Customer Items or
ESA Items, the Contractor shall satisfy itself that they are adequate for the purpose for which they are being provided, and within fourteen
(14) days of receipt shall notify the Customer of any defects or deficiencies.

 

9.8.3 - The Contractor shall not, without the
prior written consent of the Customer or ESA (as appropriate), use the Customer Items or ESA Items for any purpose other than as necessary
for the performance of the Services, or allow any third party to use, take possession of, or have any rights or lien over the Customer
Items or ESA Items.

 

9.8.4
- Under the ESA Contract, it is not foreseen at EDC that ESA will provide any ESA Items to the Customer. Notwithstanding the foregoing,
the Parties agree that the Contractor intends to procure certain items (such as P200 STM, Proba Next Avionics) by way of a separate
loan agreement with ESA.

 

9.9 Inventory

 

Under article 4.3 of the ESA Contract, the Customer
is obliged to maintain an inventory of all items produced or purchased, which inventory must be updated and made available to ESA during
the pendency of that contract. The Contractor agrees to provide all relevant information, documentation and reasonable assistance to enable
the Customer to meet its obligations in this regard. The Contractor agrees further to establish and maintain an inventory of all items
produced or purchased by it and/or its Subcontractors.

 

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Clause 10 - Warranty

 

10.1 Warranty

 

10.1.1
 – The Contractor warrants that notwithstanding prior inspection or acceptance by the Customer (a) the Spacecraft shall
be free from any defects (other than minor or immaterial defects) in material or workmanship that compromise the functioning of the spacecraft
and will conform to the applicable specifications and requirements of this Contract, and (b) all Deliverable Items shall be in good
working order and free from all defects in workmanship and materials and shall conform in all material respects with the requirements
and specifications of this Contract, and (c) all services shall be performed in a skilful and workmanlike manner and shall conform
in all material respects to the requirements of the Contract. Workmanship shall conform to the technical standards specified in the Contract.

 

10.1.2
 – The Contractor's warranty for the Spacecraft shall continue until the earlier of: (i) the day that is twelve (12) months
after the date of placing the Spacecraft in storage pursuant to the terms of Spacecraft Storage Option Clause; or (ii) upon Launch.
If any defects are found in the Spacecraft or the Spacecraft does not conform to the specifications and requirements of this Contract
during the warranty period, (except for defects or non-conformance caused by the Customer or its agents,) the Contractor shall, at its
expense, either correct, repair or replace, at its option, any such defective or non-conforming Spacecraft component. The Customer
shall notify the Contractor of any defects (other than latent defects) as soon as reasonably practicable and in any event no more than
five business days after their discovery.

 

10.1.3 - The warranty for Deliverable Items other
than a Spacecraft shall run for a period of one (1) year from the date of Delivery by the Contractor.

 

10.1.4 - Responsibility for transportation, packing,
shipping, insurance, and risk of loss while in transit of the Spacecraft or any Spacecraft component that is returned to the Contractor
pursuant to this Clause for correction, repair or replacement shall be borne by the Contractor unless it is determined that the Contractor
is not responsible for correction, repair or replacement under the warranty. In the event and to the extent that it is determined that
the Spacecraft or Spacecraft component is not subject to correction, repair or replacement under the warranty, the Customer shall reimburse
the Contractor all reasonable costs incurred by the Contractor pursuant to this Clause.

 

10.1.5 - Without limiting the obligations
of the Contractor under this Contract, if the data available from a Contractor built on-orbit spacecraft or a Contractor built spacecraft
which has not been launched or which was unsuccessfully launched (including parts alerts) shows that the Spacecraft to be delivered under
this Contract may fail to meet the applicable specifications and requirements herein and, in particular, any performance requirements
of the technical specifications at any time during the Spacecraft Mission Life and such failure would adversely affect the performance
of the Satellite, the Contractor shall promptly notify Customer of any such deficiency and shall, promptly upon written request of Customer,
take appropriate corrective measures, at its own expense, on any unlaunched Satellite to eliminate any deficiencies regardless as to whether
Customer has or has not previously accepted such unlaunched Spacecraft or components of such unlaunched Spacecraft.

 

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10.1.6 The Contractor acknowledges that in entering
into this Contract the Customer has relied on each of the warranties and representations made by the Contractor under this Clause 10.1,
Warranty.

 

10.2 Assistance:

 

The
Contractor shall provide Support Services in a professional manner consistent with Good Industry Practice. The Contractor also agrees
to provide reasonable support including, but not limited to, the support of Subcontractors, to Customer, at no cost to Customer, in diagnosing
and implementing corrective action for any Spacecraft failure or any other anomaly occurring with or on the Spacecraft within one year
of its launch. The Contractor shall retain primary responsibility for the management of its subcontractors and nothing in any subcontract
shall be deemed to relieve the Contractor from any obligation under the Contract. Subsequent to this the Contractor shall offer to provide
operational support to the Customer under a separate support contract, the details of which shall be negotiated in good faith by the Parties
prior to the Pre-Shipment Review.

 

10.3 Not Exclusive rights

 

The rights and remedies of Customer provided in this Clause are in
addition to any other rights and remedies provided under this Contract.

 

10.4 Exclusions

 

10.4.1
- Contractor’s obligations under this Clause shall not extend to; (1) defects to the extent arising from misuse, neglect,
accident or abuse by Customer or a Third Party of any Deliverable Item, (2) damage to the extent arising from operation of the Spacecraft
in a manner inconsistent with Contractor’s user manuals supplied to Customer, (3) Deliverable Items that have been integrated
with other components without the Contractor’s consent, have been modified or have not been properly maintained in accordance with
the Contractor’s instructions.

 

Clause 11
- Indemnity

 

11.1 Contractor Indemnity

 

Subject to Clause 32, the Contractor shall indemnify
and hold the Customer and its directors, officers, servants, agents, subsidiaries, employees, contractors, assignees, or any of them,
harmless from any loss, damage, liability, or expense, on account of physical damage to property, including, without limitation, the property
of the Customer including Customer furnished property (and to the extent relevant ESA furnished property), and injuries, including death,
to all persons, including, without limitation, the directors, officers, servants, agents, and contractors of the Customer, employees of
the Contractor and of its subcontractors, and all other persons performing any part of the work under this Contract, arising from any
occurrence caused by any negligent act or negligent omission of the Contractor, its subcontractors, or any of them. The Contractor, at
its expense, shall defend any suits or other proceedings brought against any person indemnified pursuant to this Clause on account thereof,
and the Contractor shall pay all expenses and satisfy all judgments which may be incurred by or rendered against any such person in connection
therewith.

 

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11.2 Customer Indemnity

 

Subject to Clause 32, the Customer shall indemnify
and hold the Contractor and its directors, officers, servants, agents, subsidiaries, employees, subcontractors, assignees, or any of them,
harmless from any loss, damage, liability or expense, on account of physical damage to property, including, without limitation, the property
of the Contractor, and injuries, including death, to all persons, including, without limitation, the directors, officers, servants, agents,
and subcontractors of the Contractor, employees of the Customer and of its contractors, and all other persons performing any part of the
work under this Contract, arising from any occurrence caused by any negligent act or negligent omission of the Customer, its contractors,
ESA, or any of them. The Customer, at its expense, shall defend any suits or other proceedings brought against any person indemnified
pursuant to this Clause on account thereof, and the Customer shall pay all expenses and satisfy all judgments which may be incurred by
or rendered against any such person in connection therewith.

 

11.3 Indemnity

 

Notwithstanding any other provision of this Contract,
the obligations of the Contractor and the Customer provided in this Clause to indemnify for any loss, damage, liability, or expense arising
before completion or termination of this Contract and to defend any suits or other proceedings arising in connection therewith shall survive
the completion or termination of this Contract, provided that the Contractor shall have no liability for damages to the Spacecraft upon
Intentional Ignition or for damage, injury, or death caused by the Spacecraft after Intentional Ignition.

 

11.4 Conduct of Claims

 

Where a Party receiving the benefit of an indemnity
under this Contract (“Indemnified Party”) wishes to rely on any indemnity given to it by the other Party (“Indemnifying
Party”) under this Contract, the Indemnified Party must:

 

		(a)	notify the Indemnifying Party immediately of the matter (stating in reasonable detail the nature of the
matter and, if practicable, the amount claimed) and consult with the Indemnifying Party with respect to the matter (if the matter has
become the subject of court or other judicial proceedings the Indemnified Party must notify the Indemnifying Party within sufficient time
to enable the Indemnifying Party to contest the proceedings before final judgment);

 

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		(b)	take any action and institute and conduct any proceedings required by the Indemnifying Party in accordance
with its requirements, and give any further information and assistance that the Indemnifying Party may reasonably request and the Indemnified
Party may reasonably be able to provide, to dispute, resist, appeal, compromise, defend, remedy or mitigate the matter or enforce against
a person (other than the Indemnifying Party) the Indemnified Party's rights in relation to the matter;

 

		(c)	in connection with proceedings related to the matter (other than against the Indemnifying Party) use advisers
chosen by the Indemnifying Party and, if the Indemnifying Party requests, allow the Indemnifying Party the exclusive conduct of the proceedings;
and

 

		(d)	not admit liability in respect of, or settle or prejudice in any way, the matter without first obtaining
the Indemnifying Party's written consent.

 

Clause 12 - Interparty Waiver of
Liability for Launch Services

 

12.1 Waiver of Liability

 

12.1.1
- The Parties agree to accede to a no-fault, no-subrogation, inter-participant waiver of liability, whereby the Parties agree to waive,
and shall require their contractors or subcontractors at any tier to waive, any right of recovery any such Party may have against the
Launch Services Agency, its contractors, and subcontractors at any tier and the Government of Belgium, its agencies, and its contractors
and subcontractors at any tier involved in Launch Vehicle Services (“Other Parties”) and each Party agrees and the Other Parties
agree to be responsible for any loss or liability which it sustains as a result of damage to its own property and employees, officers,
directors and agents including death, while involved in such operations, whether or not such damage arises through negligence of any person
to the extent such an interparty agreement is required under the terms of the Launch Agreement. Notwithstanding the foregoing sentence,
nothing shall in any way affect any rights the Customer may negotiate with the Launch Services Agency, and as to its contractors and subcontractors.
Each Party shall indemnify the other Party for and hold the other Party harmless from any liability, loss or damage suffered by such Party
resulting from the failure by the Party to comply with its obligations under this Clause to waive, or to require its subcontractors at
any tier to waive, rights of recovery referred to in this Clause. The Parties shall execute and deliver any agreement as may be necessary
to accede to the waiver of liability referred to in this Clause and the Customer shall cause its contractors and subcontractors involved
in Launch Services relating to the Spacecraft to agree to waive any and all claims of liability against the Contractor.

 

12.1.2
- The Parties will take such further actions as may be required to implement the provisions of Clause 12.1, including the execution
of such agreements and waivers as are customarily used with respect to operations at the Launch Site and are consistent with the provisions
of Clause 12.1 and that may be required by the Launch Services Agency.

 

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Clause 13 - Insurance

 

13.1 “Work-In-Progress” Insurance

 

At
all times prior to Launch of the Spacecraft, Contractor shall maintain, with insurers of reasonable and reputable financial strength,
an insurance policy or policies adequate in amount to replace the Spacecraft and all Deliverable Items associated therewith, whether completed
or in progress (but in no event less than the greater of (i) the aggregate amounts paid by Customer for such Spacecraft and the other
Deliverable Items associated therewith and (ii) the replacement value of the Work), which policy or policies shall name the Customer
as a loss payee, as its interest may appear. Contractor shall provide Customer with a copy of such policy or policies or a certificate
or insurance or renewal evidencing the same within thirty (30) Days after receipt of a written request from Customer. The Contractor
shall also maintain public liability insurance, insurance of employees and comprehensive automobile liability insurance, all in amounts
adequate for its potential liabilities under the Contract. In addition, the Contractor shall require each of its Subcontractors to provide
and maintain insurance in amounts adequate for their respective potential liabilities.

 

13.2 Spacecraft
Insurance

 

The Contract Price shall include insurance for
the Spacecraft at the Launch Site until such time as risk of loss passes to the Customer as provided in Clause 9.1 (Title and Risk of
Loss). Customer and Contractor agree to collaborate to ensure that their respective insurance policies agree as to the point of transfer
of risk of loss.

 

13.3 In-Transit Insurance

 

The Contractor shall provide, at its expense,
in-transit insurance for the Spacecraft during transport from the Contractor's facility to the Launch Site or the operations site.

 

13.4 On-Orbit Insurance

 

The Contractor shall cooperate with Customer and
its insurance brokers and underwriters in connection with the procurement of any insurance policy relating to the Launch of the Spacecraft
and/or the operation of the Spacecraft. Such efforts shall include making presentations to, and responding to due diligence inquiries
from, insurance brokers and underwriters in connection with the preparation of any such policy and proving such information and support
to Customer as is commercially reasonable for the placement of on-orbit insurance for the Spacecraft. The Customer shall add the Contractor
as an additional insured in respect of those payments set out in the Milestone Payment Plan which are deferred until after Launch. If,
at the time of placing the QKDSat launch and on-orbit insurance, the amount of deferred payments can be finally and conclusively determined,
the Customer shall add the Contractor as a loss payee in respect of that finally determined deferred payment amount (unless the Customer’s
insurers refuse to accept such instructions from the Customer). Once the Launch and In-Orbit insurance have been placed by the Customer
with a reputable insurer adequate in amount to replace the Spacecraft and all Deliverable Items associated therewith, the Customer shall
provide the Contractor with a copy of such policy or policies or a certificate of insurance evidencing the same at least 7 days prior
to Launch.

 

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13.5 Insurance Claims

 

In the event of a total or partial Launch failure
or a total or partial failure of the Spacecraft in Orbit, the Contractor shall cooperate with the Customer and the applicable insurance
brokers and underwriters, in connection with the investigation, preparation, filing and administration of any insurance claim pertaining
to such Launch or Spacecraft failure.

 

13.6 Assistance
in Settlement of Claims

 

In the event the Customer files a claim under
any insurance policies it may obtain for the Spacecraft, the Contractor shall provide the Customer with all reasonable assistance necessary
to permit the Customer to substantiate its claim including, without limitation, providing the Customer, its insurance broker and its insurers
with such documentation relating to the Spacecraft as the Customer shall reasonably request.

 

13.7 Waiver of Subrogation

 

Each Party agrees to cause its insurer(s) to
waive all rights to subrogation against the other Party and against the other Party’s directors, officers, agents, affiliates, subcontractors
and employees.

 

Clause 14 - Termination for Convenience

 

14.1 Termination for Convenience

 

14.1.1 - General Right to Terminate for Convenience
 – The Customer may at any time prior to Contractor’s Pre-Shipment Review (PSR), by written notice issued by Customer’s
Authorised Representative, terminate this Contract in whole, or in part (except for Deliverable Items for which Delivery and Acceptance
have been completed), for its convenience, whereupon Contractor shall cease Work in accordance with the terms of said notice.

 

14.1.2 - Specific Right to Terminate for Convenience
 – The Customer may by written notice issued by Customer’s Authorised Representative, terminate this Contract for its convenience
if the Customer advises the Contractor that it has not been able to achieve financing (whether by means of ESA partial funding for Phases
C/D/E or private investment sources or both) to enable it to complete the QKDSat Project, whereupon, unless otherwise notified by the
Customer in writing, the Contractor shall cease Work in accordance with the terms of said notice.

 

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14.2 Termination Expense

 

The Contractor shall promptly (but no event later
than sixty (60) days after the notice of termination) submit to the Customer a detailed written statement of Contractor’s total
direct expenses incurred in the performance of the terminated Work and resulting from such termination as determined in accordance with
Contractor’s standard accounting practices in effect at EDC and applicable to all commercial customers, (hereinafter referred to
as “Total Verified Termination Expense”). The Customer may have its own independent auditor audit the Total Verified Termination
Expense. The Customer shall pay the cost of such audit unless such audit reveals that such Total Verified Termination Expense is inaccurate
to any material extent in which case the Contractor shall pay the cost of such audit. Unless formally disputed by the Customer in accordance
with Clause 29, the mutually accepted Total Verified Termination Expense shall be invoiced by the Contractor with a 30 working days payment
term.

 

14.3 Termination Charges

 

14.3.1
Negotiation: Termination charges shall be negotiated by the Customer and the Contractor based upon the Total Verified Termination
Expense.

 

14.3.2
Full Settlement: Payment of termination charges shall be in full settlement of any and all claims of Contractor under this
Contract with respect to the terminated work.

 

14.3.3
Payment: Termination charges, as negotiated, less (A) amounts previously paid by Customer pursuant to this Contract and
(B) amounts representing termination charges attributable to Deliverable Items, services and other rights associated therewith shall
be paid Net thirty (30) days after receipt of Contractor invoice. Where amounts previously paid by the Customer pursuant to this Contract
exceed the termination charges (“Payment Surplus”), the Contractor shall reimburse the Customer the Payment Surplus.

 

14.4 Inventory

 

In the event of termination under this Clause,
all terminated Work generated under this Contract at the date of termination, except that retained or acquired by Contractor or Subcontractors,
as approved in writing by Customer, shall become or remain the property of, and shall be assigned to the Customer. All such Work which
is under the custody or control of the Contractor shall, until disposition or delivery to Customer, be stored at the Contractor’s
sole risk and expense and shall be insured by the Contractor. Notwithstanding the above, the Customer may direct the Contractor to dispose
of residual property on a reasonable efforts basis as a result of termination under this Clause for the purpose of receiving a price refund
or an offset against a termination charge.

 

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Clause 15 - Termination for Default

 

15.1 Termination

 

The Customer may, by written notice issued to
the Contractor’s Authorised Representative, terminate this Contract, in whole or in part, if:

 

15.1.1
Non-Excusable Delay: When there is a Non-Excusable Delay in Delivery of the Spacecraft, for more than three hundred and sixty
five (365) Days from the Delivery Date or it is clearly ascertainable that such Delivery will be delayed for more than three hundred and
sixty five (365) Days; or

 

15.1.2
Material Breach: The Contractor fails to perform any other material provisions of this Contract and where such breach is capable
of remedy the Contractor has failed to cure such breach within thirty (30) Days (or such other time period agreed in writing by the Parties)
from the date of the Customer’s notice to the Contractor of such failure; or

 

15.1.3
Insolvency: The Contractor (i) applies for or consents to the appointment of a receiver, trustee, custodian, intervenor
or liquidator of itself or substantially all of its assets; (ii) files a voluntary petition in bankruptcy, admitting, in writing,
that it is unable to pay its debts as they become due; (iii) makes a general assignment for the benefit of creditors; (iv) files
a petition or answer seeking reorganization or arrangement with creditors to take advantage of any bankruptcy or insolvency laws; or (v) files
an answer admitting the material allegations of, or consents to, or defaults in answering, a petition filed against it in any bankruptcy,
reorganization or insolvency proceedings where such action or failure to act will result in a determination or bankruptcy or insolvency;
or

 

15.1.4
Delivery by the Termination Date: Contractor fails to deliver the Spacecraft by the Termination Date.

 

The Customer shall consult with ESA prior to exercising
such remedies.

 

15.2 Improper Termination

 

If, after termination under the provisions of
this Clause 15, it is determined for any reasons that the Contract was terminated without cause under the provisions of this Clause 15,
the rights and obligations of the Parties shall be the same as if termination had been effected pursuant to Clause 14 (Termination for
Convenience).

 

15.3 Customer Breach

 

The Contractor may, by written notice issued to
the Customer’s Authorised Representative, terminate this Contract, in whole or in part, if:

 

15.3.1The Customer (a) fails to fulfill any
of its material obligations and where such breach is capable of remedy the Customer has failed to cure such breach within thirty (30)
Days (or such other time period agreed in writing by the Parties) from the date of Contractor’s notice to Customer of such failure
or (b) fails to make any ESA Milestone Payment within ninety (90) days of the due date.

 

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15.3.2 Insolvency: The Customer (i) applies
for or consents to the appointment of a receiver, trustee, custodian, intervenor or liquidator of itself or substantially all of its assets;
(ii) files a voluntary petition in bankruptcy, admitting, in writing, that it is unable to pay its debts as they become due; (iii) makes
a general assignment for the benefit of creditors; (iv) files a petition or answer seeking reorganization or arrangement with creditors
to take advantage of any bankruptcy or insolvency laws; or (v) files an answer admitting the material allegations of, or consents
to, or defaults in answering, a petition filed against it in any bankruptcy, reorganization or insolvency proceedings where such action
or failure to act will result in a determination or bankruptcy or insolvency,

 

15.4 Customer Option

 

As an alternative to termination, the Customer
may elect to implement a payment holiday whereby, as soon as it is evident that there is a Non-Excusable Delay, all payments by the Customer
shall be suspended until either a) the Delay has been remedied and the schedule normalized or b) the Pre-Shipment Review has been accepted.
On electing this option, Customer rights and Contractor obligations are otherwise unaffected.

 

Clause 16 - Excusable Delays and
Force Majeure

 

16.1 Excusable Delays

 

16.1.1 - Delays in Delivery resulting from Force
Majeure Events affecting the Contractor shall constitute excusable delays (“Excusable Delays”) if a written claim thereof
together with information sufficient to support such claim is received by the Customer as soon as reasonably practicable but in any event
within one (1) week after the Contractor reasonably determines that the act or occurrence may delay Delivery. The Contractor shall
provide written evidence of the period of such delay.

 

16.1.2 - The Contractor shall use
its best efforts to minimise the effect of any Force Majeure Event delay, including mitigating the impact on the schedule and the
performance of its contractual obligations, through the use of any work-around solution, including to the extent appropriate but
without limitation, through the use of work-around schedules, through twenty-four (24) hour operations, through the use of
alternative suppliers (to be approved by the Customer) subject to good faith negotiation of additional costs associated therewith.
The Delivery requirements shall be extended by the amount of such period as is supported by the evidence.

 

16.2 Delay in Shipment

 

For the avoidance of doubt, in the event that
the Spacecraft has been shipped from the Contractor’s facility to the Launch Site and subsequent to such shipment the Launch is
delayed or postponed due to reasons directly attributable to the Customer or the Launch Services Agency, the Customer shall be responsible
for the Contractor’s reasonable costs associated with the delay.

 

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16.3 Force Majeure

 

16.3.1 - Neither Party shall be liable for any
failures caused by a Force Majeure Event, provided that it makes all reasonable efforts to perform regardless of the advent of the Force
Majeure Event and informs the other Party as soon as may be practicable of the occurrence of a Force Majeure Event, its impact on its
ability to perform its obligations under this Contract, and the likely duration of the disruption of the relevant obligations. A Party
shall not be entitled to rely on this Clause 16.3 until such time as it has informed the other Party in accordance with this Clause 16.3.
The Customer shall not be liable for the payment of any payments or charges during a Force Majeure Event to the extent such payments or
charges relate to Services that are not being performed by the Contractor or its Subcontractors, including lower tier entities, due to
the Force Majeure Event. The occurrence of a Force Majeure Event shall not entitle either Party to any additional payment or compensation,
other than as may be agreed by the Parties in Clause 16.1.2.

 

16.3.2 –Under the ESA Contract, a Force
Majeure event affecting the Contractor under this Contract shall be considered a case of Force Majeure for the performance of the Customer’s
obligations under the ESA Contract, only if the Customer can prove to ESA that the delay in the delivery of the equipment or works under
this Contract due to the Force Majeure event had an unavoidable impact on the final delivery dates stipulated in the ESA Contract and
the Contractor agrees to provide reasonable support to the Customer to support the Customer’s demonstration to ESA of the Contractor’s
Force Majeure Event, if required.

 

16.3.3 - If the delay due to the Force Majeure
exceeds three (3) Months, the Party unaffected by the Force Majeure Event is entitled to terminate the Contract by giving the other
Party not less than two (2) months’ notice, unless the Parties agree to modify the Contract in order to take into account the
effects of the Force Majeure.

 

Clause 17 - Permits and Licenses

 

17.1 Permits and Licences

 

17.1.1 - This Contract is subject to all applicable
laws and regulations relating to the export of Spacecraft, technical data, and other Equipment and Services being furnished pursuant to,
or to be utilized in connection with this Contract (hereinafter referred to as “Export Licensed Items”) and to all applicable
laws and regulations of the country or countries to which such Spacecraft, technical data, and other Equipment and Services are exported
or are sought to be exported.

 

17.1.2 - In case the implementation of the Contract
is subject to any import licences and/or authorisations, the Contractor shall obtain all such import licences and/or authorisations in
time for all deliverable items and shall prepare and submit the related documentation and carry out all necessary formalities to that
aim.

 

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17.1.3 - The Contractor shall use its best efforts
to obtain Government approvals and licenses for export of the Export Licensed Items. The Customer acknowledges and agrees in this regard
that the Contractor is relying upon full and timely cooperation from the Customer with respect to providing necessary information and
in complying with all applicable Belgian and EU laws and regulations.

 

17.1.4 - The Contractor shall provide a bi-monthly
progress report to the Customer on the status of any import and/or export licences and/or authorisations applications where all relevant
actions are identified, traced and their criticality assessed.

 

17.1.5 - If, within a reasonable time, the Belgian
Government or any foreign government fails to grant a required approval or licence to Contractor to export any Export Licensed Items or
revokes or suspends such an approval or licence subsequent to its grant, or grants such a licence or approval subject to conditions, this
Contract shall, nevertheless, remain in full force and effect. Such Belgian Government or foreign government action or inaction shall
not otherwise modify in any way the rights and obligations of the Parties under this Contract except to relieve Contractor of any obligations
which cannot be performed without such an approval or licence and to make the Contract Price and delivery schedule subject to equitable
adjustment in accordance with the Changes Clause of this Contract.

 

Clause 18 - Compliance with Laws,
Permits, and Licences

 

18.1 Compliance

 

Each Party agrees that in carrying out its respective
obligations under this Contract all its actions, including those of its employees, or Parties acting on its behalf, shall be in compliance
with applicable laws and regulations. The Parties shall not engage in any transaction that is illegal under the laws of the united Kingdom
or Belgium or where relevant under the laws of any other country, state or jurisdiction, including, but not limited to a prohibition against
making unlawful payments to officials, employees or representatives of any government or governmental department or agency or relevant
regulatory authority, including customs officials for expediting customs clearances or anyone else.

 

18.2 Indemnity

 

Each Party shall indemnify the other Party, its
directors, officers, shareholders, employees and agents from any and all loss, cost, liability, damage or expense (including without limitation
reasonable fees and disbursements of counsel) arising out of or relating to any breach of this provision.

 

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18.3 Anti-Bribery

 

18.3.1 - Each Party shall:

 

		(a)	comply with all applicable laws, statutes, regulations relating to anti-bribery and anti-corruption including
but not limited to the Bribery Act 2010 (“Relevant Requirements”); and

 

		(b)	not engage in any activity, practice or conduct which would constitute an offence under sections 1, 2
or 6 of the Bribery Act 2010 if such activity, practice or conduct had been carried out in the UK.

 

18.3.2
- The Contractor shall maintain in place throughout the term its own policies and procedures, including but not limited to
adequate procedures under the Bribery Act 2010, to ensure compliance with the Relevant Requirements and will enforce them where
appropriate.

 

18.3.3
- Breach of this Clause 18.3 shall be deemed a material breach of this Contract.

 

Clause 19 - Access to Work in Progress

 

19.1 Work-In-Progress

 

19.1.1
- Subject to applicable laws and to the Contractor's security, safety, insurance and proprietary property requirements, the Customer and
ESA may have reasonable access to all work, including documentation and hardware, being performed under this Contract at the Contractor's
facilities. The Contractor shall also afford the Customer and ESA access to work being performed pursuant to this Contract at Subcontractors'
facilities subject to the right of the Contractor to accompany the Customer and ESA on any such visit. The Customer and ESA shall
also be entitled to attend all meetings and reviews of the Contractor and of the Contractor with its Major Subcontractors related to project
schedule and management, engineering, design, manufacturing, integration and testing as reasonably required by the Customer and/or ESA.
The Contractor shall provide the Customer and ESA such reasonable assistance as it may reasonably require in the course of such access.

 

19.1.2 - At any time Customer and its employees,
agents, subcontractors, consultants and representatives are on the premises of the Contractor or any of its Subcontractors, pursuant to
any provision of this Contract, they agree to abide by the applicable security and safety and any mandatory export regulations. As far
as reasonably possible, any such inspections, monitoring or other access to premises permitted under this Contract shall be made without
interference with the ongoing work of Contractor or Subcontractor.

 

19.1.3
- The Contractor shall (i) provide office space and facilities for the accommodation of up to a total of four
(4) representatives of the Customer and ESA at the Contractor’s plants and at the environmental test facilities (if
located off site), (ii) procure the permanent hosting of a representative at the facilities of Fraunhofer-IOF and
(iii) (other than Fraunhofer-IOF) shall, to the best of the Contractor’s ability, ensure that such space and facilities
are provided at other selected Subcontractors’ plants on a temporary basis to attend meetings or witness tests. For the
avoidance of doubt, if the Contractor is unable to ensure that such space and facilities are provided at other selected
Subcontractors’ plants, this shall not adversely impact the Customer’s right to have reasonable access to all work as
provided in this Clause 19. The Contractor shall provide normal office furnishing and supplies and local telephone service
(international telephone usage to be charged to the Customer) at the Contractor’s plants.

 

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19.1.4 - The inspection, examination, agreement
to, or approval, waiver or deviation by the Customer (except in accordance with Clause 26 (Changes) with regard to any design, drawing,
specification or other documentation produced under the Contract shall not relieve the Contractor from fulfilling its contractual obligations
or result in any liability being imposed on the Customer and/or ESA.

 

19.1.5
- The Customer and ESA shall have the right to participate in and make recommendations, but subject to specific provisions in
the SOW not to control or assign actions, in all review meetings between the Contractor
and its sub-contractors at the system, subsystem and critical component levels, including in test review board, manufacturing review
board, failure review board and delivery review board meetings. The Parties agree to work co-operatively in resolving issues that
arise at the various review board meetings and, where the Customer has an objection to a recommended resolution/implementation, the
Parties agree to discuss it at a senior management level prior to implementation, but the final decision concerning implementation
shall remain with the Contractor which shall provide the Customer with a written explanation for its decision, including a
reasonably detailed technical justification as to the basis for such decision.

 

19.1.6 - The Customer and ESA
will have reasonable access to any drawings, specifications, standards or process descriptions and all drawings and document indices
which are available to the Contractor and relevant to the Work. The Contractor will make available to the Customer copies of such
documentation where such documentation is necessary for evaluation of designs, performance considerations, assessment of test plans
and test results or for any other purpose connected with the design, qualification, manufacture and testing of the Spacecraft.

 

19.1.7 - No approval, acceptance, waivers or deviations
prior to Final Acceptance by the Customer of any action or item under the Contract shall waive any of the Customer’s contractual
rights with regard to Final Acceptance of any Deliverable Item.

 

19.2 Access to Deliverable Items

 

19.2.1 - The Customer shall have
the right to access and use Deliverable Items before their Delivery under this Contract provided such access or use does not
materially adversely affect the Contractor’s performance of its obligations hereunder.

 

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Clause 20 - Proprietary Information

 

20.1 Proprietary Information

 

In the event that the Contractor or the Customer
discloses to the other confidential or proprietary information during the performance of this Contract, all such information shall be
identified in writing by the disclosing Party and the receiving Party shall take all reasonable measures to protect the disclosure of
such information to others. This obligation of confidentiality shall not apply to any information which is, or becomes, part of the public
domain through no fault of the receiving Party, is required to be produced by any government, any other relevant government, or a court
of competent jurisdiction or relevant stock exchange, to information which is already known to or is independently developed by the receiving
Party, is disclosed with the prior consent of the other Party or after seven (7) years from the date of receipt of such information.
The receiving Party agrees to use such information only in the performance of this Contract.

 

Both Parties agree that the Contract itself is
a confidential and proprietary document and the Parties agree to refrain from unnecessary disclosure. To the extent that either Party
finds it necessary to disclose the Contract (e.g. the Customer in its pursuit of financing), it shall take all reasonable measures to
restrict subsequent disclosures and/or publication of the Contract by the third party recipient.

 

Clause 21 -  Intellectual
Property Rights

 

21.1 Background Intellectual Property Rights

 

21.1.1 - The Background Intellectual Property
Rights owned by the Customer, Contractor or a Third Party shall remain the property of the owning party and no representation or act by
a party during performance of the Contract shall indicate or be construed as providing any other right, title or interest in such Background
Intellectual Property Rights other than in accordance with this Contract.

 

21.1.2 - The worldwide rights, title and other
interest in and to all Intellectual Property in all Customer-furnished data and materials (and in any derivatives and adaptations thereof,
including any modifications, enhancements, additions or changes thereto) shall vest and remain vested exclusively in the Customer. The
worldwide rights, title and other interest in and to all Intellectual Property in all ESA-furnished data and materials (and in any derivatives
and adaptations thereof, including any modifications, enhancements, additions or changes thereto) shall vest and remain vested exclusively
in ESA.

 

21.1.3 - To the extent that any Contractor Background
Intellectual Property Rights or third party Intellectual Property Rights are comprised in, delivered as part of or used in connection
with any of the Services and/or Deliverable Items, the Contractor grants to the Customer a limited exclusive royalty-free, worldwide,
perpetual, irrevocable licence to use the Contractor Background Intellectual Property Rights or third party Intellectual Property Rights
as contemplated under this Contract and the right to sub-license the same to any third parties as may be required or expedient in order
for the Customer to make use of the Services and Deliverable Items supplied under this Contract.

 

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21.1.4 - To the extent that any Customer Background
Intellectual Property Rights or third party Intellectual Property Rights are required by the Contractor in the delivery of the Services
and/or Deliverable Items, the Customer grants to the Contractor a limited exclusive royalty-free, worldwide, perpetual, irrevocable licence
to use the Customer Background Intellectual Property Rights or third party Intellectual Property Rights as contemplated under this Contract
and the right to sub-license the same to any third parties as may be required or expedient in order for the Contractor to deliver the
Services and Deliverable Items under this Contract.

 

21.2 Foreground Intellectual Property Rights

 

Subject to Clause 21.3 below, the worldwide rights,
title and other interest in and to all Foreground IPR (including IPR in any of the Contractor’s Subcontracts) in all data and materials
(and in any derivatives and adaptations thereof, including any modifications, enhancements, additions or changes thereto) shall vest and
remain vested exclusively in the Customer. The Customer grants to the Contractor the right to use this data and materials for the purposes
of performing its obligations under the Contract. If and to the extent that, despite having used all reasonable commercial endeavours
to acquire the Foreground IPR authored, conceived, developed, reduced to practice or otherwise created during
the performance of any of the Contractor’s Subcontracts, the Contractor is unable to acquire all or part of such Foreground
IPR, the Contractor shall inform the Customer forthwith and shall, if requested by the Customer, provide all reasonable support in assisting
the Customer to enter into a direct agreement with the relevant Subcontractor under which the Customer will secure rights to such Foreground
IPR.

 

21.3 Contractor’s Inventions

 

The Contractor shall have and retain the entire
right, title, and interest in and to all inventions in relation to the Integrated Satellite (including discoveries, processes, methodologies,
techniques, manufacture, design or composition of matter, or any new and useful improvement thereof) whether patentable or unpatentable,
conceived or developed or actually reduced to practice by it in the performance by it of this Contract with the exception of where such
inventions are specifically related to the design, production or operation of the Payload (“Payload Inventions”) in which
case such Payload Inventions shall form part of the Foreground IPR under Clause 21.2 above.

 

21.4 Right to Use Test Beds, Prototypes Etc.

 

The Customer shall have the right to use for purposes
outside the scope of this Contract any test beds, prototypes, intermediate tools, post-processing software systems and software simulators
used or developed by the Contractor in the performance of this Contract provided such use does not materially adversely affect the Contractor’s
performance of its obligations hereunder.

 

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Clause 22 - IPR Indemnity

 

22.1 Indemnity

 

22.1.1
- The Contractor agrees, to the extent materials, designs, and specifications are not furnished or expressly specified by the Customer
(or ESA), to indemnify and, at its own expense, defend on behalf of the Customer and its officers, employees, directors, agents,
consultants and contractors and assignees any action or suit for or based on an allegation of an infringement of Intellectual Property
rights or for royalties under patents, copyright or other proprietary right, provided that the Customer promptly notifies the Contractor
in writing of any such claims and of the institution of any and all suits or proceedings based thereon. The Contractor shall have the
right to either settle, compromise or defend at its expense any and all suits or actions at law which may be brought against the Customer
for said claims of infringement or royalties. The Customer shall permit the Contractor through its counsel to control the defence of any
suit or action and shall give the Contractor, at the Contractor's expense, all necessary information as is available to the Customer,
assistance, and authority to enable it to do so.

 

22.1.2 - Without prejudice to the Customer’s
rights under the Contract, if the manufacture of any Deliverable Item or the normal intended use, lease or sale of any Deliverable Item
under this Contract is enjoined as a result of an intellectual property claim as described in Clause 22.1.1 above or is otherwise prohibited,
the Contractor shall (i) resolve the matter so that the injunction or prohibition no longer pertains, or (ii) procure for the
Customer the right to use the infringing item or (iii) if prior to Launch, modify the infringing item so that it becomes non-infringing
while remaining in compliance with this Contract in all respects.

 

22.1.3 - The Contractor’s obligations
under this Clause shall extend for the Spacecraft Mission Life.

 

22.1.4
- For the avoidance of doubt, the Contractor acknowledges that an action or suit for or based on an allegation of an
infringement of Intellectual Property rights or for royalties under patents, copyright or other proprietary right under this Clause
22 shall not constitute an Excusable Event.

 

22.1.5
- The Customer agrees, to the extent it provides any Customer Items to the Contractor to indemnify and, at its own expense, defend
on behalf of the Contractor and its officers, employees, directors, agents, consultants and contractors and assignees any action or suit
for or based on an allegation of an infringement of Intellectual Property rights or for royalties under patents, copyright or other proprietary
right, provided that the Contractor promptly notifies the Customer in writing of any such claims and of the institution of any and all
suits or proceedings based thereon. The Customer shall have the right to either settle, compromise or defend at its expense any and all
suits or actions at law which may be brought against the Contractor for said claims of infringement or royalties. The Contractor shall
permit the Customer through its counsel to control the defence of any suit or action and shall give the Customer, at the Customer’s
expense, all necessary information as is available to the Contractor, assistance, and authority to enable it to do so.

 

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Clause 23 -  Publicity and
Release of Information

 

23.1 Release of Information

 

Except for public releases required by regulatory
or governmental authorities, within a reasonable time prior to the issuance by either Party of news releases, articles, brochures, advertisements,
prepared speeches, and other information releases concerning the Work performed hereunder, the issuing Party shall obtain the written
approval of the other Party concerning the content and timing of such releases. Neither Party’s approval will be unreasonably delayed
or denied. This Clause 23 shall not apply to internal publications or releases or information which is required to be disclosed to any
Customer financier or investor or any relevant stock exchange.

 

23.2 Publicity

 

23.2.1 - Neither the Contractor
nor the Customer shall publicise this Contract without the other Party’s prior written consent and shall ensure that any
subcontractor or affiliate is bound by similar confidentiality terms to those in this Clause. The Contractor acknowledges and agrees
that the consent of ESA may also be required for any publicity which it intends to make concerning the Contract and/or the subject
matter of the Contract. This Clause shall not apply to internal publications or releases or information which is required to be
disclosed to any Customer investor or any relevant stock exchange.

 

23.2.2 - Under article 6 of the ESA Contract,
the content of any permitted publicity material prepared by the Contractor related to an ESA mission or to an activity performed by the
Contractor in the context of the ESA Contract, intended for publication in whatever form and through whatever medium, including the internet,
shall acknowledge that the mission is an ESA mission and/or that the Contract was carried out “under a programme of and funded by
the European Space Agency” and shall display in an appropriate and visible way ESA’s logo. All permitted publications, related
to the work carried out under an ESA Contract shall also carry a disclaimer with the following wording or wording to the same effect:
 “The view expressed herein can in no way be taken to reflect the official opinion of the European Space Agency.”.

 

Clause 24 - Assignment

 

24.1 Assignment

 

24.1.1 - All terms, covenants and conditions of
this Contract shall inure to the benefit of and be binding upon the Customer’s or the Contractor’s successors and assigns
to the same extent as said terms, covenants and conditions inure to the benefit of and are binding to the Customer or the Contractor (as
appropriate).

 

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24.1.2
- Neither this Contract nor any of the rights, duties and obligations of Contract under this Contract may be assigned or delegated in
whole or in part to any third Party without the prior written consent of the other Party. Such consent shall not be unreasonably withheld
or delayed. Any attempted assignment or delegation, without such consent by each Party, shall be void and without effect. Notwithstanding
the foregoing and subject to the provision of five (5) days’ prior written notice to the Contractor, the Customer may assign
this contract as security and otherwise grant security interests in its rights hereunder (including its rights with respect to the Deliverable
Items) to lenders that provide financing to the Customer and the Contractor agrees to consent to such assignment in a form reasonably
requested by the Customer and any lenders providing financing to the Customer.

 

24.2 Survival

 

No assignment of this Contract shall result in
any change in the obligations of Contractor hereunder. In the event that either Party is sold or merged into another entity, its responsibilities
under this Contract shall not be altered and the successor organisation shall be liable for performance of such Party’s obligations
under this Contract.

 

Clause 25
- Applicable Law

 

25.1 Applicable Law

 

This Contract and any dispute or claim arising
out of or in connection with it (whether such disputes are contractual or non-contractual in nature, such as claims in tort, for breach
of statute or regulation, or otherwise) shall be governed by and construed in accordance with English law.

 

Clause 26 - Changes

 

26.1 Changes

 

Either the Customer or the Contractor may propose
changes to the work in the general scope of this Contract and no such changes shall be made unless the Customer and the Contractor have
agreed in writing to the change and to any resulting adjustment in the Contract Price, delivery schedule and other Clauses. Failing such
agreement, the Contractor and the Customer shall continue to abide by the terms of this Contract.

 

26.2 Contract Change Notice

 

Any changes requested during the performance of
this Contract which will add or delete Work, affect the design of the Spacecraft before its delivery, change the method of shipment or
packing, or place or time of Delivery, or will affect any other requirement of this Contract, whether proposed by Contractor or Customer,
shall be reflected by Contractor in writing as a contract change notice in accordance with the Statement of Work (“Contract “Change
Notice”) issued at least thirty (30) days prior to the proposed date of the change. If the Customer requests a change, Contractor
shall submit the Contract Change Notice within ten (10) Business Days of the Customer’s request.

 

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26.3 Acceptance of Change

 

Customer shall notify Contractor within thirty
(30) Business Days after receipt of a Contract Change Notice whether or not it agrees with and accepts such change. If Customer agrees
with and accepts change in writing, Contractor shall proceed with the performance of the Contract as changed and an amendment to the Contract
reflecting such change, and price adjustment, if any, shall be issued. If Customer does not agree to implement the change, and the Parties
are unable to reach any other agreement regarding such change, Contractor shall proceed with the performance of the Contract.

 

26.4 Non-Refusal

 

Contractor may not refuse any change that may
be requested by Customer during the performance of this Contract as long as the Customer-requested change is within the general scope
of this Contract, complies with Clause 18 (Compliance with Laws, Permits and Licences) and is technically feasible.

 

26.5 Price of Changes

 

All pricing determinations for changes shall be
made by documented analysis of the particulars of the costs borne by Contractor, according to Contractor’s standard accounting practices
and applicable to all commercial customers. In addition, if certain supplies or materials already acquired for the Work are made obsolete
or excess as a result of a change, Customer shall have the right to prescribe the manner of disposition of such supplies or materials.
Any price adjustment shall, if disputed by Customer, be verified by Contractor by demonstrating that pricing determinations for changes
have been made according to Contractor’s standard accounting practices and applicable to all commercial customers.

 

26.6 Compressed Time Period and Exceptional
Circumstances

 

26.6.1 - The time periods specified in this Clause
and in the Statement of Work for proposing and approving changes may be shortened as necessary by mutual agreement to accommodate exigent
circumstances.

 

26.6.2
- In exceptional circumstances which are justified by programmatic constraints and urgency, ESA has reserved the right clause 13.5
of the GCC, to instruct the Customer to implement a change in accordance with the requirements of that clause, which are incorporated
by reference mutatis mutandis herein. If and to the extent that ESA exercises its rights under clause 13.5 of the GCC, the Contractor
shall provide all reasonable assistance to ArQit to enable it to comply with its obligations thereunder.

 

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26.7 Changes to Meet Specifications

 

For the avoidance of doubt, in no event shall
Customer be required to pay for any change, accept any deviation in performances or specification, or allow any delay to the extent that
such change, deviation or delay is required to enable Contractor to remedy any defects, including those defects relevant to the Spacecraft
which may become apparent through the testing or operation of other Spacecraft, all such Work to be performed by Contractor at its sole
cost and expense. In addition, the further definition of any specifications or requirements provided under this Contract shall not be
considered “changes” for purpose of this Clause.

 

Clause 27 - Notices &
Authorised Representatives

 

27.1 Notices

 

All notices required or permitted to be given
pursuant to the terms of this Contract shall be in writing and shall be submitted to the following designees:

 

If to the Contractor:

 

		To:	[***]

 

If to the Customer:

 

		To:	[***]

 

A notice under this Contract is sufficient
in all respects and deemed given if sent as described below:

 

27.1.1       if
sent by overnight courier, (prepaid) on the date of written receipt; or

 

27.1.2       if
sent by electronic mail/telecopy/fax, on successful completion of its transmission.

 

27.2 Authorised Representatives

 

For purposes of binding each Party under provisions
of this Contract, the Authorised Representatives of Customer shall be David Bestwick, CEO (program and technical matters) and David Williams,
Executive Chairman (contractual matters) and the Authorised Representatives of the Contractor shall be Frank Preud’homme (program
and technical matters) and Jo Bermyn (contractual matters) each of whom shall have the authority to bind the Party they represent. Each
Party may change or add to its list of Authorised Representatives by giving notice to the other Party signed by the notifying Party’s
then-current Authorised Representative or officer of the company.

 

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Clause 28 – Key Personnel

 

28.1 Personnel

 

28.1.1
- The Contractor will assign the best qualified and experienced personnel to the program contemplated under the Contract. The Customer
shall be entitled to interview the Key Personnel and the Contractor shall ensure that the Key personnel selected by the Customer are assigned
to the construction of the Spacecraft. A list of key personnel is set out in the Annex H, Key Personnel.

 

The Contractor shall ensure that the Key Personnel
shall remain in the Positions identified above (subject only to relevant employment laws). Without limiting the foregoing, the Contractor
shall not redeploy the Key Personnel to any other project without the prior written consent of the Customer (unless that Key Personnel
leaves the employment of the Contractor). A Key Personnel may be promoted or hired to another position within the Contractor provided
that the Contractor provides at least three months’ notice of such change. The Customer shall not unreasonably withhold its consent
to such change provided that the Contractor shall ensure that replacement is no less qualified or experienced than the departing Key Personnel.

 

28.2 Replacement of Key Personnel

 

In the event that one or more of the above-named
personnel are no longer available for the performance of the Contract, the Contractor agrees to replace such personnel, after consultation
and agreement with the Customer, with personnel of no less than a comparable level of experience, qualifications and ability.

 

Clause 29 - Disputes and Arbitration

 

29.1 Disputes

 

29.1.1 - If during the course of the Work in progress,
any dispute or disagreement arises between the Parties in connection with the interpretation of any provision of this Contract, or the
compliance or non-compliance therewith, or the validity of enforceability thereof, or any other dispute under any Clause hereof the disputing
Party shall give written notice of its objections and the reasons therefore and may recommend corrective action by the other Party. The
Contractor’s Program Manager shall consult with the Customer’s Program Manager in an effort to reach an agreement to overcome
the objections. In the event that an agreement to the mutual satisfaction of the Contractor’s Program Manager and the Customer’s
Program Manager cannot be reached within twenty (20) Business Days, the dispute or disagreement shall be referred to the Chief Executive
Officer (or delegated officer at Senior Vice President level or above) of the Customer and M.D. Space (or delegated officer at Senior
Vice President level or above) of the Contractor for resolution.

 

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29.1.2 - In the event that an agreement to the
mutual satisfaction of the Parties cannot be reached by the Chief Executive Officer (or delegated officer at Senior Vice President level
or above) of each of the Contractor and the Customer within thirty (30) Business Days in accordance with Clause 29.1.1 above (or such
longer period as may be mutually agreed upon), such dispute or disagreement shall be settled in accordance with Clause 29.1.3 below.

 

29.1.3 - In the event that any dispute remains
unresolved after the procedure in Clause 29.1.2 is exhausted then any and all disputes shall be settled by final and binding arbitration
administered in accordance with the provisions of this Clause 29.1.3: (a) the arbitration shall be governed by the provisions of
the Arbitration Act 1996 and the London Court of International Arbitration ("LCIA") procedural rules shall be applied and
are deemed to be incorporated into this Agreement (save that in the event of any conflict between those rules and this Agreement,
this Agreement shall prevail); (b) the decision of the arbitrator shall be binding on the parties (in the absence of any material
failure by the arbitrator to comply with the LCIA procedural rules); and (c) the tribunal shall consist of three arbitrators to be
agreed by the parties and in the event that the parties fail to agree the appointment of the arbitrators within ten (10) Working
Days or, if the person(s) appointed is unable or unwilling to act, as appointed by the LCIA; and (d) the arbitration proceedings
shall take place in London.

 

Clause 30 – Options

 

30.1 Additional Equipment

 

In the event that Customer should require the
Contractor to furnish additional equipment and/or services in accordance with the following option provisions (“Options”),
the Contractor agrees to accept an order from Customer, subject to mutually agreed to terms and conditions, including but not limited
to price, delivery schedule and payment terms, to furnish such additional equipment and/services.

 

30.2 Storage, Storage Insurance and Post Storage
Testing

 

The Contractor shall provide the following Option
services at the prices indicated below:

 

		(a)	To prepare the Spacecraft for storage, Customer shall be required to pay to the Contractor a price of
 €[***]. This price includes spacecraft and storage facility preparation, including on/off-loading, the use of suitable storage/shipping
containers and round trip transportation for the Spacecraft container (back haul from storage facility, and shipment to facility for removal).

 

		(b)	Storage facilities shall be selected by the Contractor. The price per month, including monthly storage
rental and security fees, and the necessary monitoring during the storage period commencing upon delivery of the Spacecraft to storage
is €[***].

 

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		(c)	Storage insurance for the Spacecraft at the facility described in item (b) above at the price for
the insured value of the Spacecraft is €[***].

 

		(d)	Post-storage testing of each Spacecraft after removal from storage shall be provided at the price of €[***].

 

		(e)	For the avoidance of doubt, short term storage for up to six (6) months shall be deducted from the
risk management reserve, and the fees set out above shall not apply.

 

30.3
Procurement of Additional QKDSat Satellites

 

Customer may, at its option in writing, procure
up to ten (10) additional QKDSat satellites. Such satellites shall be identical or substantially similar to the QKDSat Satellite.
If Customer exercises this Option, the firm fixed price of such identical or substantially similar satellite to Customer shall be no higher
than the Total of the Firm Fixed Prices in this Contract and the Commercial Agreement, excluding all non-recurring engineering charges
but including any escalation and cost savings from volume production and procurements. The Customer may at its option appoint alternative
Suppliers for the Payload, for integration into the Platform by the Contractor. Where the Payload is separately procured by the Customer
its price shall be excluded from the Option price

 

[***].

 

This shall not apply to future satellites purchased
by ArQit for end customers who have mandated geographic development and build restrictions that exclude QinetiQ from supply.

 

Notwithstanding the foregoing provisions of this
Clause 30, the Parties shall discuss and agree in good faith at the time whether reductions in the scope of all or some of the options
above are appropriate in which case the Parties shall agree commensurate reductions in the prices quoted above.

 

Clause 31 - Representations

 

31.1 Representations

 

31.1 1 - Each Party hereto represents and warrants
as to itself that it is a corporation duly and validly organized and existing in good standing under the laws of the country of its incorporation,
that it has full corporate power and authority to enter into this Contract and to consummate the transactions contemplated hereby, that
the transactions contemplated hereby have been duly Authorised by all necessary corporate action, and that this Contract constitutes the
legal, valid, and binding obligation of such Party.

 

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31.1.2 - Furthermore, each Party represents and
warrants as to itself that neither the execution and delivery of this Contract, nor the performance of the Parties' respective obligations
hereunder will; (a) violate any provisions of the certificate of incorporation or bylaws or other governing instrument, or the certificate
of incorporation or bylaws or other governing instrument of its parent corporation(s), subsidiaries or affiliates or (b) violate,
be in conflict with, or constitute a default under any agreement or commitment to which the Party, its parent corporation(s), subsidiaries
or affiliates is a Party or (c) violate any statute or law or judgment or decree, order, regulation or rule of any court or
other governmental body applicable to the Party, its parent corporation(s), subsidiaries or affiliates.

 

Clause 32 - Implied Warranty Disclaimer
and Limitation of Liability

 

32.1 Limitation of Liability

 

32.1.1 - Except as expressly provided in this
Contract, in no event shall either party be liable whether in contract, tort or otherwise for indirect, special, punitive, exemplary,
incidental or consequential damages or for lost revenue or profits even if advised of the possibility of such damages or losses.

 

32.1.2 - Notwithstanding any other language of
this Contract to the contrary but subject to Clause 4.4, each Party’s total aggregate liability under this Contract, whether in
contract or tort, shall not exceed an amount equal to the Contract Price of the applicable Phase.

 

32.1.3 - Nothing in this Contract shall operate
to exclude or limit either Party’s liability for its fraud or the fraud of any of its employees or agents with respect to the Contract
nor any other liability that cannot be excluded or restricted under Applicable Law.

 

Clause 33 - Miscellaneous

 

33.1 Customer Relationship to Contractor

 

None of the provisions of this Contract, including
those of any of its Annexes, shall be construed to mean that either Party is appointed as or is in any way Authorised to act as an agent,
employee, partner or joint venture of or with the other Party.

 

33.2 Invalidity

 

The invalidity, in whole or in part, of any Clause
herein shall not affect the validity or enforceability of any other Clause herein.

 

33.3 Severability

 

If any provisions of this Contract are declared
or found to be illegal, unenforceable or void, the Parties shall negotiate in good faith to agree upon a substitute provision that is
legal and enforceable and as nearly as possible consistent with the intentions underlying the original provision. If the remainder of
this Contract is not materially affected by such declaration or finding and is capable of substantial performance, then the remainder
shall be enforced to the extent permitted by law.

 

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33.4 Cumulative Rights/Waivers

 

All rights and remedies conferred hereunder or
otherwise shall be cumulative and may be exercised singly or concurrently. No delay or omission by either Party to exercise any right
or power shall impair such right or power or be construed to be a waiver thereof. A waiver by any Party of any of the covenants, conditions
or contracts to be performed by the other or any breach thereof shall not be construed to be a waiver of any succeeding breach thereof
or of any other covenants, conditions or contracts herein contained. No change, waiver or discharge hereof shall be valid unless in writing
and signed by the Authorised Representative of the Party against which change, waiver or discharge is sought to be enforced.

 

33.5 No Waiver of Rights

 

The failure by any Party to enforce at any time
any of the provisions hereof shall not be construed thereafter to be a waiver by such Party of any provision.

 

33.6 Non-Solicitation

 

Each
Party acknowledges and agrees that it will not during the continuance of this Contract and continuing until two (2) years after completion
of the Work being performed pursuant to this Contract hereunder, directly or indirectly, solicit the employment of, employ or otherwise
retain the services of any of the other Party’s employees assigned to a substantial role in the performance of this Contract without
first obtaining such Party’s written approval. This Clause 33.6 shall not apply where
an employee of a Party seeks employment with the Party in response to an advertisement placed into the public domain for that position
provided that the other Party has not solicited, directly or indirectly, the application from that employee for that position.

 

33.7 Construction

 

This Contract and its exhibits and schedules hereto,
have been jointly negotiated by the Parties and in the event of any ambiguity in the language hereof, there shall be no inference drawn
in favor of or against either Party.

 

33.8 Survival

 

The following Clauses shall survive the completion,
expiration, or termination of this Contract: Clause 3 (Price); Clause 11 (Indemnification); Clause 12 (Interparty Waiver of Liability
for Launch Services); Clause 17 (Permits and Licenses); Clause 22 (IPR Indemnity): Clause 25.1 (Applicable Law); Clause 29 (Disputes and
Arbitration); Clause 32 (Implied Warranty Disclaimer and Limitation of Liability).

 

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33.9 Amendments, Modifications and Supplements

 

This Contract may be amended, modified or supplemented
only by an instrument in writing signed by an Authorised representative of each Party. The Parties hereto agree to execute and deliver,
or cause to be executed and delivered, such further instruments or documents and take such other action as may be required effectively
to carry out the transactions contemplated hereby.

 

33.10 Counterparts: Execution and Agreement

 

This
Contract may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. The Parties agree that electronic signature of this Contract by each Party shall be considered as
valid as an original signature of such Party and shall be effective to bind such Party to the Contract.

 

33.11 Entire Agreement

 

With the exception of the Commercial Agreement,
this Contract including the Annexes constitutes the entire agreement between the Parties and merges and supersedes all previous agreements
oral or written, express or implied, communications and representations.

 

33.15 Obligation to Mitigate and Act Reasonably

 

Wherever
the Contract provides for a decision to be made by either Party (including, without limitation, any consent, instruction, notice, opinion
or direction) or for information to be provided by one Party to the other, both Parties undertake that such decisions shall not be unreasonably
made, withheld or delayed and that such information requested shall only be that reasonably necessary for the purpose for which it is
requested. Both Parties agree that when making any claim against the other they will use all reasonable endeavours to mitigate
the losses or damage arising from the same.

 

33.16 Third Party Rights

 

A person who is not a Party to this Contract may
not enforce any of its terms under the Contracts (Rights of Third Parties) Act 1999 (provided that the Customer may for and on behalf
of ESA enforce any and all rights afforded to ESA under this Contract).

 

Each Party acknowledges that it has read, understands
and agrees to be bound by the provisions of this Contract.

 

This Contract shall inure to the benefit of, and
be binding upon, the Parties hereto and their respective successors and permitted assigns.

 

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IN
WITNESS WHEREOF, the Parties to this Contract have caused this Contract to be executed as of the date and year set forth above.

 

	ARQIT LIMITED	 	QINETIQ SPACE NV
	 	 	 
	BY: 	/s/ David Williams	 	BY: 	/s/ Jo Bermyn
	 	 	 
	NAME:	 	NAME:
	David Williams	 	Jo Bermyn
	 	 	 
	TITLE:	 	TITLE:
	Executive Chairman	 	Director Finance and Administration
	 	 	 
	DATE: 31/01/2020	 	DATE: 28/01/2020

 

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ANNEX A: PRICE AND PAYMENT SCHEDULE

 

Summary Milestone
and Payment Schedule for Phase 1

 

	Milestone (MS) Description	 	Schedule Date	 	Payments from

 ArQit to Qinetiq

 (in Euro)	 	 	%	 
	MS1: System SSR	 	Oct 2019	 	€	409,525	 	 	 	40	 
	MS2:  System PDR	 	Jan 2020	 	€	204,762	 	 	 	20	 
	MS3:  Segments PDR	 	Mar 2020	 	€	409,525	 	 	 	40	 
	PHASE 1 RISK RESERVE	 	€	219,500	 	 	 	 	 
	TOTAL PHASE 1 PRICE	 	€	1,243,312	 	 	 	 	 

 

Advance Payment and other Financial Conditions for Phase 1:

 

	Advance Payment

 (in Euro)	 	 	%	 	 	Offset

 against	 	Offset by Euro	 	 	Condition for release of

 the Advance Payment
	€	255,953	 	 	 	25	 	 	MS3	 	€	255,953	 	 	Kick Off

 

Phase 2 Delivery Schedule

 

	Milestone (MS) Description	 	Schedule Date	 	Payments from

 ArQit to Qinetiq

 (in Euro)	 	 	 %	 
	To be defined by CCN at time of Phase 2 Price Conversion Proposal	 	 	 	 	 	 	 	 

 

The Contractor shall submit complete invoices
(including instructions for billing taxes and duties, where applicable) and shall provide a Milestone Completion Certificate with the
invoices in support of the claims.

 

ESA Funded Milestone Payments will be made by
the Customer in Euros to the account specified by the Contractor. Such information shall clearly indicate the IBAN and BIC/SWIFT.

 

If and to the extent an advance payment is made,
it shall constitute a debt of the Contractor until it has been set-off against subsequent milestone(s).

 

Under article 3.2.1 of the ESA Contract, in the
event that the achievement of a milestone is delayed but the milestone is partially met, ESA has reserved the right, as an exception,
to agree to make a payment against an approved confirmation of the partially achieved milestone, not exceeding the value of the work performed
at the date of payment. There is however no guarantee that ESA will exercise this right in favour of the Contractor.

 

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When
releasing an ESA Funded Milestone Payment for a given milestone, if applicable, the payment shall be made after due deduction of
the corresponding off-set of the advance payment(s) (if any).

 

In case of partial payment, the Customer shall
be entitled to deduct from the corresponding invoice(s) relative to the same milestone any outstanding amount of the advance payment(s) still
to be off-set.

 

Any special charges related to the execution of
payments will be borne by the Contractor.

 

If applicable, invoices shall separately show
all due taxes or duties.

 

The Customer may genuinely dispute an invoice
provided that it pays the undisputed amount. In the event that any undisputed Charges are not paid by the Customer by the due date, the
Contractor may:

 

(i) charge the Customer interest at the annual
rate of four (4)% over the base rate of the Bank of England from time to time in force; and/or

 

(ii) where the Customer has failed to remedy
its lack of payment within fifteen (15) days following receipt of written notice from the Contractor, suspend activities in relation to
the Services and/or Deliverable Items to which the payment relates until payment has been made.

 

ESA Contract Procedure for Payments to the
Customer

 

Articles 3.2.1 and 3.2.2 of the ESA Contract set
out the procedure under which ESA will make ESA Funded Milestone Payments to ArQit. Wherever relevant, the Contractor will comply mutatis
mutandis with this procedure in order to enable ESA Funded Milestone Payments to be made without delay.

 

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ANNEX B - QKDSAT SPACE SEGMENT STATEMENT OF
WORK

 

Not attached hereto but known to both parties

 

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ANNEX C - QKDSAT SPACE SEGMENT REQUIREMENTS

 

Not attached hereto but known to both parties

 

    54

     

    

 

ANNEX D – QKDSAT SPACE SEGMENT PA REQUIREMENTS

 

Not attached hereto but known to both parties

 

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ANNEX E – KEY PERSONNEL

 

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ANNEX F – ESA CONTRACT AND GENERAL CLAUSES
AND CONDITIONS 

FOR ESA CONTRACTS

 

Not attached hereto but known to both parties

 

    57EX-4.1

 Exhibit 4.1 

RXSIGHT, INC. 
 NINTH AMENDED AND
RESTATED 
 INVESTORS’ RIGHTS AGREEMENT 

FEBRUARY 24, 2017 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 SECTION 1.
	 	 GENERAL
	  	 	2	 
	 1.1
	 	 Amendment and Restatement
	  	 	2	 
	 1.2
	 	 Definitions
	  	 	2	 
			
	 SECTION 2.
	 	 REGISTRATION; RESTRICTIONS ON TRANSFER
	  	 	6	 
	 2.1
	 	 Restrictions on Transfer
	  	 	6	 
	 2.2
	 	 S-1 Demand Registration
	  	 	7	 
	 2.3
	 	 Piggyback Registrations
	  	 	8	 
	 2.4
	 	 Form S-3 Registration
	  	 	9	 
	 2.5
	 	 Expenses of Registration
	  	 	10	 
	 2.6
	 	 Obligations of the Company
	  	 	11	 
	 2.7
	 	 Termination of Registration Rights
	  	 	12	 
	 2.8
	 	 Delay of Registration; Furnishing Information
	  	 	12	 
	 2.9
	 	 Indemnification
	  	 	12	 
	 2.10
	 	 Assignment of Registration Rights
	  	 	14	 
	 2.11
	 	 Amendment of Registration Rights
	  	 	14	 
	 2.12
	 	 “Market Stand-Off” Agreement;
Agreement to Furnish Information
	  	 	15	 
	 2.13
	 	 Rule 144 Reporting
	  	 	15	 
	 2.14
	 	 Limitation on Subsequent Registration Rights
	  	 	16	 
			
	 SECTION 3.
	 	 COVENANTS OF THE COMPANY
	  	 	16	 
	 3.1
	 	 Basic Financial Information and Reporting
	  	 	16	 
	 3.2
	 	 Inspection Rights
	  	 	17	 
	 3.3
	 	 Confidentiality of Records
	  	 	17	 
	 3.4
	 	 Reservation of Common Stock
	  	 	17	 
	 3.5
	 	 Stock Vesting
	  	 	17	 
	 3.6
	 	 Proprietary Information and Inventions Agreement
	  	 	17	 
	 3.7
	 	 Directors’ and Officers’ Insurance
	  	 	17	 
	 3.8
	 	 Committees; Observers
	  	 	17	 
	 3.9
	 	 Board Expenses
	  	 	18	 
	 3.10
	 	 Action Through Subsidiaries
	  	 	18	 
	 3.11
	 	 Termination of Covenants
	  	 	18	 
			
	 SECTION 4.
	 	 RIGHTS OF PARTICIPATION IN FUTURE FINANCINGS
	  	 	18	 
	 4.1
	 	 Subsequent Offerings
	  	 	18	 
	 4.2
	 	 Exercise of Rights
	  	 	19	 
	 4.3
	 	 Transfer of Rights of Participation
	  	 	19	 
	 4.4
	 	 Excluded Securities
	  	 	19	 
			
	 SECTION 5.
	 	 MISCELLANEOUS
	  	 	20	 
	 5.1
	 	 Governing Law
	  	 	20	 
	 5.2
	 	 Survival
	  	 	20	 
	 5.3
	 	 Successors and Assigns
	  	 	20	 
	 5.4
	 	 Entire Agreement
	  	 	21	 
	 5.5
	 	 Severability
	  	 	21	 

  
 -i- 

							
	 5.6
	 	 Amendment and Waiver
	  	 	21	 
	 5.7
	 	 Aggregation of Stock
	  	 	21	 
	 5.8
	 	 Delays or Omissions
	  	 	22	 
	 5.9
	 	 Notices
	  	 	22	 
	 5.10
	 	 Attorneys’ Fees
	  	 	22	 
	 5.11
	 	 No Presumption
	  	 	22	 
	 5.12
	 	 Titles and Subtitles
	  	 	22	 
	 5.13
	 	 Additional Investors
	  	 	22	 
	 5.14
	 	 Counterparts
	  	 	22	 

  
 -ii- 

 RXSIGHT, INC. 

NINTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

This NINTH AMENDED AND RESTATED INVESTORS’
RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of February 24, 2017 (the “Effective Date”), by and among RxSight, Inc., a California corporation
(the “Company”), those holders of the Company’s Series A Preferred Stock, $0.001 par value per share (“Series A Preferred”) and of the Company’s Common Stock, $0.001 par value per share (“Common
Stock”) listed on Exhibit A hereto (the “Series A Investors”), those holders of the Company’s Series B Preferred Stock, par value $0.001 per share (“Series B Preferred”) listed on Exhibit
B hereto (the “Series B Investors”), those holders of the Company’s Series C Preferred Stock, par value $0.001 per share (“Series C Preferred”) listed on Exhibit C hereto (the “Series C
Investors”), those holders of the Company’s Series D Preferred Stock, par value $0.001 per share (“Series D Preferred”) listed on Exhibit D hereto (the “Series D Investors”), those holders of
the Company’s Series E Preferred Stock, par value $0.001 per share (“Series E Preferred”) listed on Exhibit E hereto (the “Series E Investors”), those holders of the Company’s Series F Preferred
Stock, par value $0.001 per share (“Series F Preferred”) listed on Exhibit F hereto (the “Series F Investors”), those holders of the Company’s Series G Preferred Stock, par value $0.001 per share
(“Series G Preferred”) listed on Exhibit G hereto (the “Series G Investors”), and those holders of the Company’s Series H Preferred Stock, par value $0.001 per share (“Series H
Preferred”) listed on Exhibit H hereto (the “Series H Investors” and, together with the Series A Investors, the Series B Investors, the Series C Investors, the Series D Investors, the Series E Investors, the Series F
Investors, and the Series G Investors, the “Investors” and each individually, an “Investor”). 

RECITALS 

WHEREAS, the Company, the Series A Investors, the Series B Investors, the Series C Investors, the Series D Investors, the Series E
Investors, the Series F Investors, and the Series G Investors entered into that certain Eighth Amended and Restated Investors’ Rights Agreement dated as of June 3, 2015 (as in effect on the date hereof and prior to giving effect to this
Agreement, the “Restated Investors’ Rights Agreement”); 
 WHEREAS, pursuant to Section 5.6 of the
Restated Investors’ Rights Agreement, the terms of the Restated Investors’ Rights Agreement may be amended by the written consent of the Company, the holders of at least a majority of the Prior Registrable Securities (as defined in the
Restated Investors’ Rights Agreement), and the holders of at least fifty-five percent (55%) of the Series G Registrable Securities (as defined in the Restated Investors’ Rights Agreement); 

WHEREAS, the undersigned who are signatories of this Agreement (the “Amending Investors”) constitute the holders of at
least a majority of the Prior Registrable Securities (as defined in the Restated Investors’ Rights Agreement), and the holders of at least fifty-five percent (55%) of the Series G Registrable Securities (as defined in the Restated
Investors’ Rights Agreement); 
 WHEREAS, the Company and the Series H Investors have entered into a Series H Preferred Stock
and Warrant Purchase Agreement of even date herewith (the “Purchase Agreement”), pursuant to which the Company desires to sell to the Series H Investors and the Series H Investors desire to purchase from the Company shares of Series
H Preferred; and 
 WHEREAS, in order to induce the Company to approve the issuance of its Series H Preferred and to induce the
Series H Investors to invest funds in the Company pursuant to the Purchase Agreement, 

 
the Company and the Amending Investors have agreed to amend and restate in its entirety the Restated Investors’ Rights Agreement as set forth herein. 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the mutual promises, representations, warranties, covenants and conditions set forth in this Agreement, the parties mutually agree as follows: 

Section 1. GENERAL. 
 1.1
Amendment and Restatement. This Agreement amends and restates in its entirety the Restated Investors Rights Agreement, effective simultaneous with the “Initial Closing” under the Purchase Agreement. 

1.2 Definitions. As used in this Agreement, the following terms shall have the following respective meanings: 

“Co-Sale Agreement” means the Amended and Restated
Co-Sale and Right of First Refusal Agreement of even date herewith, by and among the Company and the other parties thereto. 

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

“Form S-3” means such form under the Securities Act as in effect on the date hereof
or any successor or similar registration form under the Securities Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC. 

“H.I.G.” means H.I.G. Bio Ventures – Calhoun, LLC. 

“Holder” means any Series A Holder, Series B Holder, Series C Holder, Series D Holder, Series E Holder, Series F Holder,
Series G Holder, or Series H Holder. 
 “Initial Offering” means the Company’s first firm commitment underwritten
public offering of its Common Stock registered under the Securities Act. 
 “Longitude” means Longitude Venture Partners
II, L.P. 
 “Major Senior Preferred Holder” means each of RXSI, H.I.G., and Longitude, or their respective Affiliates. 

“Person” means an individual, corporation, limited liability company, partnership, joint venture, trust, unincorporated
organization, regulatory authority or any other entity or organization. 
 “Prior Registrable Securities” means the Series
A Registrable Securities, the Series B Registrable Securities, the Series C Registrable Securities, the Series D Registrable Securities, the Series E Registrable Securities, and the Series F Registrable Securities. 

“Qualified Public Offering” means a firm commitment underwritten public offering pursuant to an effective registration
statement under the Securities Act, covering the offer and sale of Common Stock for the account of the Company, at an offering price per share greater than or equal to 

$2.40 (adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to

  
 2 

 
the Common Stock) and in which the gross cash proceeds to the Company are at least $40,000,000 and after which the Common Stock is listed on the New York Stock Exchange, the American Stock
Exchange or the NASDAQ stock market. 
 “Register,” “registered,” and “registration”
refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement or document. 

“Registrable Securities” means the Series A Registrable Securities, the Series B Registrable Securities, the Series C
Registrable Securities, the Series D Registrable Securities, the Series E Registrable Securities, the Series F Registrable Securities, the Series G Registrable Securities, and the Series H Registrable Securities. 

“Registrable Securities then outstanding” shall be the number of shares determined by calculating the total number of shares
of the Company’s Common Stock that are Registrable Securities and either (a) are then issued and outstanding or (b) are issuable pursuant to then exercisable or convertible securities. 

“Registration Expenses” shall mean all expenses incurred by the Company in complying with Sections 2.2, 2.3 and 2.4 hereof,
including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, reasonable fees and disbursements not to exceed fifty thousand dollars ($50,000) for the registration described in
Section 2.2 hereof or twenty-five thousand dollars ($25,000) for the registration described in Section 2.4 hereof of a single special counsel for the Holders, blue sky fees and expenses and the expense of any special audits incident to or
required by any such registration (but excluding the compensation of regular employees of the Company which shall be paid in any event by the Company). 

“RXSI” means RxSight I, LLC. 

“Sale Transaction” shall mean an Acquisition or Asset Transfer (in each case as such terms are defined in the Eleventh
Amended and Restated Articles of Incorporation, as amended (the “Restated Charter”)). 
 “SEC” or
“Commission” means the Securities and Exchange Commission. 
 “Securities Act” shall mean the Securities
Act of 1933, as amended. 
 “Selling Expenses” shall mean all underwriting discounts and selling commissions applicable to
the sale. 
 “Senior Preferred Director” means each member of the Board of Directors designated by the Series G Holders or
the Series H Holders. 
 “Series A Holders” means all Persons owning of record Series A Registrable Securities. 

“Series B Holders” means all Persons owning of record Series B Registrable Securities. 

“Series C Holders” means all Persons owning of record Series C Registrable Securities. 

“Series D Holders” means all Persons owning of record Series D Registrable Securities. 

  
 3 

 “Series E Holders” means all Persons owning of record Series E Registrable
Securities. 
 “Series F Holders” means all Persons owning of record Series F Registrable Securities. 

“Series G Director” means each member of the Board of Directors designated by the Series G Holders. 

“Series G Holders” means all Persons owning of record Series G Registrable Securities. , 

“Series H Director” means each member of the Board of Directors designated by the Series H Holders. 

“Series H Holders” means all Persons owning of record Series H Registrable Securities. 

“Series A Registrable Securities” means: (a) Common Stock of the Company issued or issuable upon conversion of the
Series A Preferred; (b) the shares of Common Stock of the Company issued pursuant to (i) that certain Series A Preferred Stock and Common Stock Purchase Agreement dated as of February 29, 2000 by and between the Company and Cosmetic
Laser Eye and Refractive Centers of America, LLC, (ii) that certain Series A Preferred Stock and Common Stock Purchase Agreement (Second Closing) dated as of February 29, 2000 by and between the Company and Cosmetic Laser Eye and
Refractive Centers of America, LLC, (iii) that certain Series A Preferred and Common Stock Purchase Agreement dated June 30, 2001 and (iv) that certain Series A Preferred Stock and Common Stock Exchange Agreement, dated as of
April 24, 2002, by and among the Company and each of the Holders _l)arty thereto; and (c) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a
dividend or other distribution with respect to, or in exchange for or in replacement of, such above-described securities. Notwithstanding the foregoing, Series A Registrable Securities shall not include any securities sold by a Person to the public
either pursuant to a registration statement or Rule 144 of the Securities Act or sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not assigned. 

“Series B Registrable Securities” means: (a) Common Stock of the Company issued or issuable upon conversion of the
Series B Preferred; and (b) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for
or in replacement of, such above-described securities. Notwithstanding the foregoing, Series B Registrable Securities shall not include any securities sold by a Person to the public either pursuant to a registration statement or Rule 144 of the
Securities Act or sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not assigned. 

“Series C Registrable Securities” means: (a) Common Stock of the Company issued or issuable upon conversion of the
Series C Preferred; and (b) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for
or in replacement of, such above-described securities. Notwithstanding the foregoing, Series C Registrable Securities shall not include any securities sold by a Person to the public either pursuant to a registration statement or Rule 144 of the
Securities Act or sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not assigned. 

“Series D Registrable Securities” means: (a) Common Stock of the Company issued or issuable upon conversion of
the Series D Preferred; and (b) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a 

  
 4 

 
dividend or other distribution with respect to, or in exchange for or in replacement of, such above-described securities. Notwithstanding the foregoing, Series D Registrable Securities shall not
include any securities sold by a Person to the public either pursuant to a registration statement or Rule 144 of the Securities Act or sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not
assigned. 
 “Series E Registrable Securities” means: (a) Common Stock of the Company issued or issuable upon
conversion of the Series E Preferred; and (b) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to,
or in exchange for or in replacement of, such above-described securities. Notwithstanding the foregoing, Series E Registrable Securities shall not include any securities sold by a Person to the public either pursuant to a registration statement or
Rule 144 of the Securities Act or sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not assigned. 

“Series F Registrable Securities” means: (a) Common Stock of the Company issued or issuable upon conversion of the
Series F Preferred; and (b) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for
or in replacement of, such above-described securities. Notwithstanding the foregoing, Series F Registrable Securities shall not include any securities sold by a Person to the public either pursuant to a registration statement or Rule 144 of the
Securities Act or sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not assigned. 

“Series G Registrable Securities” means: (a) Common Stock of the Company issued or issuable upon conversion of the
Series G Preferred; and (b) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for
or in replacement of, such above-described securities. Notwithstanding the foregoing, Series G Registrable Securities shall not include any securities sold by a Person to the public either pursuant to a registration statement or Rule 144 of the
Securities Act or sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not assigned. 

“Series H Registrable Securities” means: (a) Common Stock of the Company issued or issuable upon conversion of the
Series H Preferred; and (b) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for
or in replacement of, such above-described securities. Notwithstanding the foregoing, Series H Registrable Securities shall not include any securities sold by a Person to the public either pursuant to a registration statement or Rule 144 of the
Securities Act or sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not assigned. 

“Senior Preferred Registrable Securities” means the Series H Registrable Securities and the Series G Registrable Securities.

 “Shares” shall mean the Company’s Series A Preferred, Series B Preferred, Series C Preferred, Series D Preferred,
Series E Preferred, Series F Preferred, Series G Preferred, and Series H Preferred held by the Series A Investors, the Series B Investors, the Series C Investors, the Series D Investors, the Series E Investors, the Series F Investors, the Series G
Investors, and the Series H Investors, respectively. 

  
 5 

 “Special Registration Statement” shall mean a registration statement
relating to any employee benefit plan or with respect to any corporate reorganization or other transaction under Rule 145 of the Securities Act. 

Section 2. REGISTRATION; RESTRICTIONS ON TRANSFER 

2.1 Restrictions on Transfer. 

(a) Each Holder agrees not to make any disposition of all or any portion of the Shares or Registrable Securities except in compliance with the
terms of the Co-Sale Agreement and unless and until: 
 (i) There is then in effect a registration
statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or 

(ii) (a) The transferee has agreed in writing to be bound by the terms of this Agreement, (b) such Holder shall have notified the
Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and (c) if reasonably requested by the Company, such Holder shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of such shares under the Securities Act. It is agreed that the Company will not require opinions of counsel for
transactions made pursuant to Rule 144 of the Securities Act except in unusual circumstances. 
 (iii) Notwithstanding the provisions of
paragraphs (i) and (ii) above, no such registration statement or opinion of counsel shall be necessary for a transfer by a Holder which is (a) a partnership to its partners or former partners in accordance with partnership interests,
(b) a corporation to its shareholders in accordance with their interest in the corporation, (c) a limited liability company to its members or former members in accordance with their interest in the limited liability company, (d) a
transfer to such Holder’s affiliate or affiliates (as defined in Rule 405 promulgated under the Securities Act) (“Affiliates”) or (e) a transfer of the type set forth in Section 5.1(c) of the Co-Sale Agreement; provided that in each case the transferee will be subject to the terms of this Agreement to the same extent as if he were an original Holder hereunder. 

(b) Each certificate representing Shares or Registrable Securities shall (unless otherwise permitted by the provisions of this Agreement) be
stamped or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under applicable state securities laws): 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECENED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 

(c) The Company shall be obligated to reissue promptly unlegended certificates at the request of any holder thereof if the holder shall have
obtained an opinion of counsel (which counsel 

  
 6 

 
may be counsel to the Company) reasonably acceptable to the Company to the effect that the securities proposed to be disposed of may lawfully be so disposed of without registration, qualification
or legend. 
 (d) Any legend endorsed on an instrument pursuant to applicable state securities laws and the stop-transfer instructions with
respect to such securities shall be removed upon receipt by the Company of an order of the appropriate blue sky authority authorizing such removal. 

2.2 S-1 Demand Registration. 

(a) Subject to the conditions of this Section 2.2, if the Company shall receive at any time after the earlier of (i) the fifth
anniversary of the Effective Date or (ii) one hundred eighty (180) days after the effective date of the registration statement pertaining to the Company’s Initial Offering, a written request that the Company file a registration
statement under the Securities Act covering the registration of Registrable Securities with an anticipated offering price of at least $10,000,000 from any of the following: (x) if the Company is already a reporting company under the Securities
and Exchange Act of 1934, Series A Holders, Series B Holders, Series C Holders, Series D Holders, Series E Holders, or Series F Holders who hold at least fifty percent (50%) of the aggregate outstanding Series A Registrable Securities, Series B
Registrable Securities, Series C Registrable Securities, Series D Registrable Securities, Series E Registrable Securities, and Series F Registrable Securities; (y) Series G Holders who hold at least fifty percent (50%) of the outstanding Series
G Registrable Securities; or (z) Series H Holders who hold at least fifty percent (50%) of the outstanding Series H Registrable Securities (the Holders requesting registration from time to time pursuant to either (x), (y) or (z) of this
Section 2.2(a), are referred to as the “Initiating Holders”), then the Company shall, within fifteen (15) days of the receipt thereof, give written notice of such request to all Holders, and subject to the limitations of
this Section 2.2, use commercially reasonable efforts to effect, as expeditiously as possible, the registration under the Securities Act of all Registrable Securities that the Holders request to be registered in a written request received by
the Company within twenty (20) days of the mailing of the Company’s notice pursuant to this Section 2.2(a). 
 (b) If the
Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 2.2 or any request pursuant to
Section 2.4 and the Company shall include such information in the written notice referred to in Section 2.2(a) or Section 2.4(a), as applicable. In such event, the right of any Holder to include its Registrable Securities in such
registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their
securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by a majority in interest of the Initiating Holders (which underwriter or
underwriters shall be reasonably acceptable to the Company). Notwithstanding any other provision of this Section 2.2 or Section 2.4, if the underwriter advises the Company that marketing factors require a limitation of the number of
securities to be underwritten (including Registrable Securities) then the Company shall so advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares that may be included in the
underwriting shall be allocated to the Holders of such Registrable Securities on a pro rata basis based on the number of Registrable Securities held by all such Holders (including the Initiating Holders); provided, however, that the number of
Registrable Securities to be included in such underwriting shall not be reduced unless all securities other than Registrable Securities (including those to be sold for the Company’s account) are first entirely excluded from the underwriting.
Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the registration. 

  
 7 

 (c) The Company shall not be required to effect a registration pursuant to this
Section 2.2: 
 (i) prior to the earlier of (a) the fifth anniversary of the Effective Date or (b) one hundred eighty
(180) days after the effective date of the registration statement pertaining to the Company’s Initial Offering; 
 (ii) after the
Company has effected two (2) registrations pursuant to a demand by the Series A Holders, Series B Holders, Series C Holders, Series D Holders, Series E Holders, Series, and Series F Holders in accordance with Section 2.2(a)(x), two
(2) registrations pursuant to a demand by the Series G Holders in accordance with Section 2.2(a)(y), and two (2) registrations pursuant to a demand by the Series H Holders in accordance with Section 2.2(a)(z), and such
registrations have been declared and ordered effective; 
 (iii) during the period starting with the date of filing of, and ending on the
date one hundred eighty (180) days following the effective date of the registration statement pertaining to a public offering, other than pursuant to a Special Registration Statement; provided that the Company makes commercially
reasonable efforts to cause such registration statement to become effective; 
 (iv) if within fifteen (15) days of receipt of a
written request from Initiating Holders pursuant to Section 2.2(a), the Company gives notice to the Holders of the Company’s intention to make a public offering within ninety (90) days, other than pursuant to a Special Registration
Statement within ninety (90) days, provided that the Company shall be entitled to postpone the filing for a reasonable period of time (not to exceed the shorter of ninety (90) days or the Company’s termination of consideration
of a public offering); 
 (v) if within fifteen (15) days of receipt of a written request from Initiating Holders pursuant to
Section 2.2(a), the Company shall furnish to Holders requesting a registration statement pursuant to this Section 2.2, a certificate signed by the Chairman of the Company’s Board of Directors (the “Board of Directors”)
stating that in the good faith judgment of the Board of Directors, it would either (a) interfere with or adversely affect the negotiations or completion of any transaction that is being contemplated by the Company at the time the right to
defer is exercised or (b) if the Company is then a reporting company under the Securities and Exchange Act of 1934, such registration would require the Company to disclose an undisclosed material transaction or fact prior to the time such
transaction or fact would otherwise be required to be disclosed and the Company has a bona fide business reason for keeping confidential the existence thereof, in which event the Company shall have the right to defer such filing for a period of not
more than ninety (90) days after receipt of the request of the Initiating Holders; provided that such right to delay a request shall be exercised by the Company not more than once in any twelve (12) month period; or 

(vi) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 2.4 below. 
 2.3 Piggyback Registrations. The
Company shall notify all Holders of Registrable Securities in writing at least fifteen (15) days prior to the filing of any registration statement under the Securities Act for purposes of a public offering of stock of the Company (including,
but not limited to, registration statements relating to the Initial Offering and secondary offerings of securities of the Company, but excluding Special Registration Statements) and will afford each such Holder an opportunity to include in such
registration statement all or part of such Registrable Securities held by such Holder. Each Holder desiring to include in any such registration statement all or any part of the 

  
 8 

 
Registrable Securities held by it shall, within fifteen (15) days after the above-described notice from the Company, so notify the Company in writing. Such notice shall state the intended
method of disposition of the Registrable Securities by such Holder. If a Holder decides not to include all of its Registrable Securities in any registration statement thereafter filed by the Company, such Holder shall nevertheless continue to have
the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein. 

(a) Underwriting. If the registration statement under which the Company gives notice under this Section 2.3 is for an underwritten
offering, the Company shall so advise the Holders of Registrable Securities. In such event, the right of any such Holder to be included in a registration pursuant to this Section 2.3 shall be conditioned upon such Holder’s participation in
such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their Registrable Securities through such underwriting shall enter into an
underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company. Notwithstanding any other provision of this Agreement, if the underwriter determines in good faith that marketing factors
require a limitation of the number of shares to be underwritten, the number of shares that may be included in the underwriting shall be allocated: first, to the Company; second, to the Holders on a pro rata basis based on the total number of
Registrable Securities held by the Holders; and third, to any shareholder of the Company (other than a Holder) on a pro rata basis. In no event will shares of any other selling shareholder be included in such registration which would reduce the
number of shares which may be included by the Holders without the written consent of Holders of at least a majority of the Registrable Securities proposed to be sold in the offering. If any Holder disapproves of the terms of any such underwriting,
such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter, delivered at least five (5) business days prior to the effective date of the registration statement. Any Registrable Securities excluded or
withdrawn from such underwriting shall be excluded and withdrawn from the registration. 
 (b) Right to Terminate Registration. The
Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The
Registration Expenses of such withdrawn registration shall be borne by the Company in accordance with Section 2.5 hereof. 
 2.4
Form S-3 Registration. In case the Company shall receive from the Holders of at least ten percent (10%) of the Registrable Securities then outstanding or holders of the majority of the Series
G Registrable Securities or holders of the majority of the Series H Registrable Securities a written request or requests that the Company effect a registration on Form S-3 or any similar short-form
registration statement and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the Company will: 

(a) promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders of
Registrable Securities; and 
 (b) use commercially reasonable efforts to effect, as soon as practicable, such registration and all such
qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such request, together with
all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the Company; provided,
however, that the 

  
 9 

 
Company shall not be obligated to effect any such registration, qualification or compliance pursuant to this Section 2.4: 

(i) if Form S-3 is not available for such offering by the Holders; 

(ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to
sell Registrable Securities and such other securities (if any) at an aggregate price to the public of less than one million dollars ($1,000,000); 

(iii) if within fifteen (15) days of receipt of a written request from any Holder or Holders pursuant to this Section 2.4, the
Company gives notice to such Holder or Holders of the Company’s intention to make a public offering within ninety (90) days, other than pursuant to a Special Registration Statement, provided that the Company shall be entitled to
postpone the filing only for a reasonable period of time (not to exceed the shorter of ninety (90) days or the Company’s termination of consideration of a public offering); 

(iv) if within fifteen (15) days of receipt of a written request from any Holder or Holders pursuant to Section 2.4, if the Company
shall furnish to the Holders a certificate signed by the Chairman of the Board of Directors stating that in the good faith judgment of the Board of Directors, it would either (a) interfere with or adversely affect the negotiations or completion
of any transaction that is being contemplated by the Company at the time the right to defer is exercised or (b) if the Company is then a reporting company under the Securities and Exchange Act of 1934, such registration would require the
Company to disclose an undisclosed material transaction or fact prior to the time such transaction or fact would otherwise be required: to be disclosed and the Company has a bona fide business reason for keeping confidential the existence thereof,
in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than ninety (90) days after receipt of the request of the Holder or
Holders under this Section 2.4; provided that such right to delay a request shall be exercised by the Company not more than once in any twelve (12) month period; 

(v) if the Company has already effected two (2) registrations on Form S-3 for the Holders
pursuant to this Section 2.4 during the prior twelve month rolling period; or 
 (vi) in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance. 

(c) Subject to the foregoing, the Company shall use commercially reasonable efforts to file a Form S-3
registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders. Registrations effected pursuant to this Section 2.4
shall not be counted as demands for registration or registrations effected pursuant to Sections 2.2 or 2.3, respectively. 
 2.5 Expenses
of Registration. Except as specifically provided herein, all Registration Expenses incurred in connection with any registration, qualification or compliance pursuant to Section 2.2 or any registration under Section 2.3 or
Section 2.4 herein shall be borne by the Company. All Selling Expenses incurred in connection with any registrations hereunder, shall be borne by the holders of the securities so registered pro rata on the basis of the number of shares so
registered. The Company shall not, however, be required to pay for expenses of any registration proceeding begun pursuant to Section 2.2 or 2.4, the request of which has been subsequently withdrawn by the Initiating Holders unless(a) the withdrawal
is based upon material adverse information concerning the Company of which the Initiating Holders were not aware at the time of such request, (b) the underwriter(s) in connection with such 

  
 10 

 
offering requires Holder to substantially cut back the number of securities to be offered by Holder and Holder elects not to sell any securities in the offering, or (c) the Holders of a
majority of Registrable Securities agree to forfeit their right to one requested registration pursuant to Section 2.2 or Section 2.4, as applicable, in which event such right shall be forfeited by all Holders). If the Holders are required
to pay the Registration Expenses, such expenses shall be borne by the holders of securities (including Registrable Securities) requesting such registration in proportion to the number of shares for which registration was requested. If the Company is
required to pay the Registration Expenses of a withdrawn offering pursuant to clause (a) or (b) above, then the Holders shall not forfeit their rights pursuant to Section 2.2 or Section 2.4 to a demand registration. 

2.6 Obligations of the Company. Whenever required to effect the registration of any Registrable Securities, the Company shall, as
expeditiously as reasonably possible: 
 (a) Prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use all commercially reasonable efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement
effective for up to one hundred eighty (180) days or, if earlier, until the Holder or Holders have completed the distribution related thereto. 

(b) Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with
such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for the period set forth in paragraph (a) above. 

(c) Furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of
the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them. 

(d) Use commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such states or jurisdictions. 
 (e) In the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in customary form, with the managing underwriter(s) of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an
agreement. 
 (f) Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. The Company will use commercially reasonable efforts to amend or supplement, as soon as
practicable, such prospectus in order to cause such prospectus not to include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing. 

  
 11 

 (g) Use commercially reasonable efforts to furnish, on the date that such Registrable
Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and
substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and (ii) a letter dated as of such date, from the independent certified public accountants of the Company, in form and
substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering addressed to the underwriters. 

(h) Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange or nationally recognized
automated quotation system on which similar securities issued by the Company are then listed. 
 2.7 Termination of Registration Rights.
All registration rights granted and restrictions imposed by this Section 2 shall terminate and be of no further force and effect upon the earlier of (a) three (3) years after the date of a Qualified Public Offering, or (b) a Sale
Transaction. In addition, a Holder’s registration rights shall expire at such time as the Holder is free to sell all Registrable Securities held by and issuable to such Holder (and its Affiliates, partners, former partners, members and former
members) under Rule 144 of the Securities Act during a single three-month period without registration. 
 2.8 Delay of Registration;
Furnishing Information. 
 (a) No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2. 

(b) It shall be a condition precedent to the obligations of the Company to take any action pursuant to Section 2.2, 2.3 or 2.4 that the
selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as shall be required to effect the registration of their
Registrable Securities. 
 (c) The Company shall have no obligation with respect to any registration requested pursuant to Section 2.2
or Section 2.4 if, due to the operation of Section 2.2(b), the number of shares or the anticipated aggregate offering price of the Registrable Securities to be included in the registration does not equal or exceed the number of shares or
the anticipated aggregate offering price required to originally trigger the Company’s obligation to initiate such registration as specified in Section 2.2 or Section 2.4, whichever is applicable; provided, however,
(i) Registration Expenses associated with any such registration request shall be borne by the Company, and (ii) the Holders shall not forfeit their rights pursuant to Section 2.2 or Section 2.4 to a registration. 

(d) In case of each registration, qualification or compliance effected by the Company during the demand registration period described in
Section 2.2 or the piggyback registration period described in Section 2.3 that the Holders elect to participate in, the Company shall keep the Holders advised in writing as to the initiation, status and completion of such registration,
qualification and compliance. 
 2.9 Indemnification. In the event any Registrable Securities are included in a registration
statement under Sections 2.2, 2.3 or 2.4: 
 (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder,
the partners, officers and directors of each Holder, any underwriter (as defined in the 

  
 12 

 
Securities Act) for such Holder and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages,
or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, to the extent that such losses, claims, damages or liabilities (or actions in respect thereof) arise out of
or are based upon any of the following statements, omissions or violations (collectively a “Violation”) by the Company: (i) any untrue statement or alleged untrue statement of a material fact contained in such registration
statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary
to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the
Exchange Act or any state securities law in connection with the offering covered by such registration statement; and the Company will pay as incurred to each such Holder, partner, officer, director, underwriter or controlling person for any
reasonable, out of pocket legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided however, that the indemnity agreement contained in this
Section 2.9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the
Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly
for use in connection with such registration by such Holder, partner, officer, director, underwriter or controlling person of such Holder. 

(b) To the extent permitted by law; each Holder will, if Registrable Securities held by such Holder are included in the securities as to which
such registration qualifications or compliance is being effected, indemnify and hold harmless the Company, each of its directors, its officers and each Person, if any, who controls the Company within the meaning of the Securities Act, any
underwriter and any other Holder selling securities under such registration statement or any of such other Holder’s partners, directors or officers or any person who controls such Holder, against any losses, claims, damages or liabilities
(joint or several) to which the Company or any such director, officer, controlling person, underwriter or other such Holder, or partner, director, officer or controlling person of such other Holder’ may become subject under the Securities Act,
the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information furnished by such Holder under an instrument duly executed by such Holder and stated to be specifically for use in connection with such registration; and each such Holder
will pay as incurred any reasonable, out of pocket legal or other expenses reasonably incurred by the Company or any such director, officer, controlling person, underwriter or other Holder, or partner, officer, director or controlling person of such
other Holder in connection with investigating or defending any such loss, claim, damage, liability or action if it is judicially determined that there was such a Violation; provided, however, that the indemnity agreement contained in this
Section 2.9(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided
further, that in no event shall any indemnity under this Section 2.9 exceed the net proceeds from the offering received by such Holder. 

(c) Promptly after receipt by an indemnified party under this Section 2.9 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.9, deliver to the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other 

  
 13 

 
indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to
retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if
materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 2.9, but the omission so to deliver written notice to the indemnifying party will
not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 2.9. 
 (d) If the
indemnification provided for in this Section 2.9 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in
lieu of indemnifying such indemnified party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the Violation(s) that resulted in such loss, claim, damage or liability, as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission; provided that in no event shall any contribution by a Holder hereunder exceed the net proceeds from the offering received by such Holder. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of fraudulent misrepresentation. 
 (e) The
obligations of the Company and Holders under this Section 2.9 shall survive completion of any offering of Registrable Securities in a registration statement, the termination of this agreement and the transfer of the Registrable Securities by
the Holder. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation. 

2.10 Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this
Section 2 may be assigned by a Holder to a transferee or assignee of Registrable Securities which (a) is an Affiliate, subsidiary, parent, shareholder, general partner, limited partner, retired partner, member or retired member of a
Holder, (b) is a transferee of the type set forth in Section 5.1(c) of the Co-Sale Agreement, (c) acquires at least twenty-five percent (25%) of the Registrable Securities held by the
transferor; provided, however, (i) the transferor shall promptly furnish to the Company written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being
assigned and (ii) such transferee shall agree to be subject to all restrictions set forth in this Agreement. 
 2.11 Amendment of
Registration Rights. Any provision of this Section 2 may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the .written consent of
the Company, (i) the Holders of at least a majority of the Prior Registrable Securities then outstanding, and (ii) the Holders of at least fifty-one percent (51%) of the Senior Preferred Registrable
Securities then outstanding, which in all cases must 

  
 14 

 
include at least two of the Major Senior Preferred Holders; provided that if such amendment has the effect of materially and adversely affecting the Holders of a class or series of the
Company’s equity securities differently from the Holders of another class or series of the Company’s equity securities, then such amendment shall require the written consent of the Holders of at least a majority in interest of such
materially and adversely affected class or series. Any amendment or waiver effected in accordance with this Section 2.11 shall be binding upon each Holder and the Company. By acceptance of any benefits under this Section 2, Holders of
Registrable Securities hereby agree to be bound by the provisions hereunder. 
 2.12 “Market
Stand-Off’’ Agreement; Agreement to Furnish Information. 
 (a) Each Holder hereby
agrees that such Holder shall not sell, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Common Stock (or other securities) of the
Company held by such Holder (other than those included in the registration) for a period specified by the representative of the underwriters of Common Stock (or other securities) in the Qualified Public Offering of the Company not to exceed one
hundred eighty (180) days, but subject to such extension or extensions as may be required by the underwriter in order to publish research reports while complying with Rule 2711 of the FINRA and Rule 472(f)( 4) of the New York Stock Exchange,
following the effective date of the registration statement of the Company filed under the Securities Act with respect to such Initial Offering; provided that all officers, directors and holders of more than 2.5% of the outstanding capital
stock (on an as-if-converted to Common Stock basis) of the Company enter into similar agreements. 

(b) Each Holder agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriter which are
consistent with the foregoing or which are necessary to give further effect thereto. In addition, if requested by the Company or the representative of the underwriters of Common Stock (or other securities) in the Initial Offering, each Holder shall
provide, within ten (1 0) days of such request, such information as may be required by the Company or such representative in connection with the completion of any public offering of the Company’s securities pursuant to a registration statement
filed under the Securities Act. The obligations described in this Section 2.12 shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Rule 145 transaction on Form S-4 or similar forms that may be promulgated in
the future. The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of said one hundred eighty (180) day period after the Initial
Offering. Each Holder agrees that any transferee of any shares of Registrable Securities shall be bound by this Section 2.12. 

2.13 Rule 144 Reporting. With a view to making available to the Holders the benefits of certain rules and regulations of the SEC which
may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its best efforts to: 
 (a)
Make and keep public information available, as those terms are understood and defined in Rule 144 of the Securities Act or any similar or analogous rule promulgated under the Securities Act, at all times after the effective date of the first
registration filed by the Company for an offering of its securities to the general public; 
 (b) File with the SEC, in a timely manner, all
reports and other documents required of the Company under the Exchange Act; and 

  
 15 

 (c) So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith
upon request: a written statement by the Company as to its compliance with the reporting requirements of Rule 144 of the Securities Act, and of the Exchange Act (at any time after it has become subject to such reporting requirements); a copy of the
most recent annual or quarterly report of the Company; and such other reports and documents as a Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such securities without registration. 

2.14 Limitation on Subsequent Registration Rights. After the date of this Agreement, the Company shall not, without the prior written
consent of (i) the Holders of at least a majority of the Prior Registrable Securities then outstanding, and (ii) the Holders of at least fifty-one percent (51%) of the Senior Preferred
Registrable Securities then outstanding, which in all cases shall include at least two of the Major Senior Preferred Holders, enter into any agreement with any holder or prospective holder of any securities of the Company that would grant such
holder registration rights senior to or pari passu with those granted to the Holders hereunder. 
 Section 3. COVENANTS OF THE COMPANY.

 3.1 Basic Financial Information and Reporting. 

(a) The Company will maintain true books and records of account in which full and correct entries will be made of all its business transactions
pursuant to a system of accounting established and administered in accordance with generally accepted accounting principles consistently applied, and will set aside on its books all such proper accruals and reserves as shall be required under
generally accepted accounting principles consistently applied. 
 (b) As soon as practicable, but in any event within one hundred and twenty
(120) calendar days after the end of each fiscal year of the Company, the Company will furnish to (i) each Investor holding at least twenty-five percent (25%) of the outstanding shares of Series H Preferred, (ii) each Investor
holding at least 6,948,627 shares of the Senior Registrable Securities issued under the Series H Purchase Agreement and/or the Series G Purchase Agreement, as applicable, (iii) at least twenty percent (20%) of the total outstanding number of
the Prior Registrable Securities, determined in accordance with the aggregation principles in Section 5.7 of this Agreement, and (iv) the Perez-Sala Investors, as such term is defined in the Co-Sale
Agreement, so long as the Perez-Sala Investors own in the aggregate at least 2,000,000 shares of Series C Preferred (any such Investor described in clauses (i)-(iv), a “Significant Investor”), a balance sheet of the Company, as at
the end of such fiscal year, and a statement of income and a statement of cash flows of the Company, for such year, all prepared in accordance with generally accepted accounting principles consistently applied and setting forth in each case in
comparative form the figures for the previous fiscal year, all in reasonable detail. Such financial statements shall be audited and accompanied by a report and opinion thereon by independent public accountants selected by the Board of Directors.

 (c) The Company will furnish each Significant Investor, as soon as practicable, but in any event within 45 calendar days after the end of
the first, second and third quarterly accounting periods in each fiscal year of the Company, a balance sheet of the Company as of the end of each such quarterly period, and a statement of income and a statement of cash flows of the Company for such
period and for the current fiscal year to date, prepared in accordance with generally accepted accounting principles consistently applied and setting forth in each case in comparative form the figures for the corresponding prior year period, all in
reasonable detail, with the exception that no notes need be attached to such statements and year-end audit adjustments may not have been made. 

  
 16 

 (d) The Company will furnish each Significant Investor as soon as it is available, but in
any event not later than 30 days prior to the beginning of each fiscal year, an annual budget for such fiscal year (and as soon as available, any subsequent revisions thereto). 

3.2 Inspection Rights. Each Significant Investor (including such Significant Investor’s representative(s)) shall have the right to
visit and inspect any of the properties of the Company or any of its subsidiaries, and to discuss the affairs, finances and accounts of the Company or any of its subsidiaries with its officers, and to review such information as is reasonably
requested all at such reasonable times and as often as may be reasonably requested; provided, however, that the Company shall not be obligated under this Section 3 .2 with respect to a competitor of the Company. 

3.3 Confidentiality of Records. Each Investor agrees to use, and to use its best efforts to insure that its authorized representatives
use, the same degree of care as such Investor uses to protect its own confidential information to keep confidential any information furnished to it which the Company identifies as being confidential or proprietary (so long as such information is not
in the public domain), except that such Investor may disclose such proprietary or confidential information to any partner, subsidiary or parent of such Investor for the purpose of evaluating its investment in the Company as long as such partner,
subsidiary or parent is advised of the confidentiality provisions of this Section 3.3. 
 3.4 Reservation of Common Stock. The
Company will at all times reserve and keep available, solely for issuance and delivery upon the conversion of the Series A Preferred, Series B Preferred, Series C Preferred, Series D Preferred, Series E Preferred, Series F Preferred, Series G
Preferred, and Series H Preferred, all Common Stock issuable from time to time upon such conversion. 
 3.5 Stock Vesting. Unless
otherwise approved by the Board of Directors, all stock options and other stock equivalents issued after the date of this Agreement to employees shall be subject to vesting as follows: (a) twenty-five percent (25%) of such stock shall vest at
the end of the first year following the earlier of the date of issuance or such person’s services commencement date with the Company and (b) seventy-five percent (75%) of such stock shall vest monthly over the remaining thirty-six (36) months. 
 3.6 Proprietary Information and Inventions Agreement. With the
exception of members of the Company’s Medical Advisory Board, the Company shall require all employees and consultants to execute and deliver a Proprietary Information and Inventions Agreement in a form reasonably acceptable to the Board of
Directors (which approval shall include at least two of the Senior Preferred Directors). 
 3.7 Directors’ and Officers’
Insurance. Within ninety (90) days from the date of this Agreement, to the extent not already in place, the Company shall maintain with financially sound and reputable insurers directors’ and officers’ insurance with respect to
the breach of the directors’ and officers’ of the Company’s fiduciary duties with respect to its shareholders and with respect to such other matters customarily insured by such policies in amounts reasonably acceptable to the Board of
Directors (which approval shall include at least two of the Senior Preferred Directors). 
 3.8 Committees; Observers. 

(a) The Company shall maintain (i) an audit committee of the Board of Directors (the “Audit Committee”) and a
compensation committee of the Board of Directors (the “Compensation Committee”), such committees to include the Series G Directors designated by Longitude and H.I.G., and the Series H Director designated by RXSI. The Audit Committee
will initially include Juliet Tammenoms Bakker, Daniel Schwartz, William J. Link, and Werner Wolfen. The Audit Committee shall be responsible for overseeing the audits of the Company’s financial statements and any other matters set

  
 17 

 
forth in its charter from time to time. The Compensation Committee will initially include Juliet Tammenoms Bakker, Bruce Robertson, Christopher Cox, J. Andrew Corley, William J. Link, and Werner
Wolfen. The Compensation Committee shall be responsible for overseeing the executive compensation of the Company and any other matters set forth in its charter from time to time. 

(b) So long as the Perez-Sala Investors own in the aggregate at least 2,000,000 shares of Series C Preferred, Jan Bonel shall be entitled to
attend meetings of the Board of Directors, subject to this Section 3.8(b), as a nonvoting observer (a “Board Observer”). The holders of at least a majority of the Prior Registrable Securities may appoint one Board Observer, who
initially shall be James Adler. So long as BP Calhoun Associates LLC owns at least 2,000,000 shares of Series G Preferred Stock, it may appoint one Board Observer, who initially shall be Seth Alvord. So long as RA Capital Healthcare Fund, L.P. and
Blackwell Partners LLC – Series A own in the aggregate at least 2,000,000 shares of Series G Preferred, they may appoint one Board Observer, who initially shall be Andrew Levin. A strategic investor, if any, who purchases at least $10,000,000
of shares of Series H Preferred in the Final Closing (as defined in the Purchase Agreement) pursuant to the Purchase Agreement (the “Strategic Investor”) shall be entitled to appoint one Board Observer. The Chairman of the Board of
Directors may invite others to serve as Board Observers from time to time in his or her discretion. Board Observers shall be invited to attend Board meetings and receive materials provided to members of the Board of Directors in connection with such
meetings, but may be excluded from executive sessions at the discretion of the Chairman of the Board of Directors. Board Observers shall have no right to vote on matters brought before the Board of Directors (or any committee). The presence of any
Board Observer will not be necessary to establish a quorum at any meeting. Board Observers shall maintain confidentiality of corporate proceedings. The Company may require any Board Observer to execute an agreement satisfactory to the Company
outlining the privileges and duties of a Board Observer. Failure to execute or comply with such an agreement shall result in the termination of Board Observer status. 

3.9 Board Expenses. The Company will pay or reimburse all of the reasonable out-of-pocket costs and expenses incurred by the members of the Board of Directors and by any Board Observers in relation to attendance at meeting of the Board of Directors and committees of the Board of
Directors. 
 3.10 Action Through Subsidiaries. The Company will not take any action indirectly through its subsidiaries that
pursuant to the negative covenants in Article III, Section 2(b) of the Company’s Restated Charter would require the consent of the holders of Preferred Stock as specified in the Restated Charter without such consent. 

3.11 Termination of Covenants. All covenants of the Company contained in Section 3 of this Agreement shall expire and terminate as
to each Holder upon the earlier of the closing of (i) a Qualified Public Offering or (ii) a Sale Transaction. 
 Section 4. RIGHTS OF
PARTICIPATION IN FUTURE FINANCINGS. 
 4.1 Subsequent Offerings. 

(a) In the event that the Company proposes to sell and issue Equity Securities (as hereinafter defined) from time to time after the date of
this Agreement, each Significant Investor shall have the right to purchase its pro rata share of all Equity Securities (other than the Equity Securities excluded by Section 4.4 hereof). Each Significant Investor’s pro rata share is equal
to the ratio of (x) the number of shares of the Company’s Common Stock (including all shares of Common Stock issued or issuable upon conversion of the Shares) which such Significant Investor, as applicable, is deemed to hold immediately
prior to the issuance of such Equity Securities to (y) the total number of shares of the 

  
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Company’s outstanding Common Stock (including all shares of Common Stock issued or issuable upon conversion of the Shares and any other convertible securities then outstanding as well as
upon the exercise of any options then outstanding) immediately prior to the issuance of the Equity Securities. 
 (b) The term
“Equity Securities” shall mean (i) any Common Stock, Shares or other security of the Company, (ii) any security convertible, with or without consideration, into any Common Stock, Shares or other security (including any
option to purchase such a convertible security), (iii) any security carrying any warrant or right to subscribe to or purchase any Common Stock, Shares or other security or (iv) any such warrant or right. 

4.2 Exercise of Rights. 

(a) If the Company proposes to issue any Equity Securities, it shall give each Significant Investor written notice of its intention, describing
the Equity Securities, the price and the terms and conditions upon which the Company proposes to issue the same. Each Significant Investor shall have fifteen (15) days from the giving of such notice to agree to purchase its pro rata share of
the Equity Securities for the price and upon the terms and conditions specified in the notice by giving written notice to the Company and stating therein the quantity of Equity Securities to be purchased. Notwithstanding the foregoing, the Company
shall not be required to offer or sell such Equity Securities to any Significant Investor who would cause the Company to be in violation of applicable federal securities laws by virtue of such offer or sale. Each Significant Investor electing to
purchase its pro rata share of such Equity Securities (each, an “Electing Investor”) shall have an over-allotment option such that to the extent any Significant Investor does not elect to purchase its pro rata share of such Equity
Securities, Electing Investors shall have the right to purchase their pro-rata share of such unsubscribed shares based on the fully-diluted ownership of each Electing Investor as a percentage of the total
fully-diluted ownership of all Electing Investors in the aggregate. 
 (b) If any Significant Investor fails to exercise in full its rights
of participation, the Company shall have ninety (90) days thereafter to sell the Equity Securities in respect of which the Holder’s rights were not exercised, at a price not less and upon general terms and conditions materially no more
favorable to the purchasers thereof than specified in the Company’s notice to the other Significant Investors pursuant to Section 4.2(a) hereof. If the Company has not sold such Equity Securities within such ninety (90) days, the
Company shall not thereafter issue or sell any Equity Securities, without first offering such securities to the Significant Investors in the manner provided above. 

(c) Termination and Waiver of Rights of Participation. The rights of participation established by this Section 4 shall not apply
to, and shall terminate upon the earlier of, the closing of (i) a Qualified Public Offering or (ii) a Sale Transaction. The rights of participation established by this Section 4 may be amended, modified or waived
upon the written consent of (i) the holders of at least a majority of the Prior Registrable Securities then outstanding, and (ii) at least fifty-one percent (51%) outstanding shares of Senior
Preferred Registrable Securities then outstanding, which in all cases must include at least two of the Major Senior Preferred Holders, voting together as a single class (the “Requisite Senior Preferred Vote”). 

4.3 Transfer of Rights of Participation. The rights of participation of each Holder under this Section 4 may be transferred
to the same parties, subject to the same restrictions as any transfer of registration rights pursuant to Section 2.1 0. 
 4.4
Excluded Securities. Notwithstanding anything to the contrary, the rights of first participation established by this Section 4 shall have no application to any of the following Equity Securities: 

  
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 (a) up to 47,976,338 shares of Common Stock (or options, warrants or other Common Stock
purchase rights issued pursuant to such options, warrants or other rights, and the Common Stock issued upon the exercise or conversion thereof) issued prior to or after the Effective Date to employees, officers or directors of, or consultants or
advisors to the Company or any subsidiary, pursuant to stock purchase or stock option plans or other like arrangements approved by the Board of Directors; 

(b) stock issued pursuant to any rights or agreements outstanding as of the date of this Agreement (including, without limitation any shares
of stock or rights or agreements that remain issuable in a Subsequent Closing (as defined in. the Purchase Agreement) pursuant to the Purchase Agreement, options and warrants outstanding as of the date of this Agreement; and stock issued pursuant to
any such rights or agreements granted after the date of this Agreement; provided that the rights of participation established by this Section 4 applied with respect to the initial sale or grant by the Company of such rights or
agreements; 
 (c) any Equity Securities issued for consideration other than cash pursuant to a merger, consolidation, acquisition or
similar business combination approved by the Board of Directors; 
 (d) shares of Common Stock issued in connection with any stock split,
stock dividend or recapitalization by the Company; 
 (e) shares of Common Stock issued upon conversion of the Shares; 

(f) any Equity Securities issued pursuant to any equipment or facilities leasing or loan arrangement, financing from a bank or similar
financial or lending institution, provided such issuances are for other than primarily equity financing purposes and are approved by the Board of Directors; 

(g) any Equity Securities that are issued by the Company pursuant to a Qualified Public Offering; and 

(h) any Equity Securities issued in connection with technology licensing arrangements involving the Company and other entities, provided such
issuances are approved by the Board of Directors. 
 Section 5. MISCELLANEOUS. 

5.1 Governing Law. This Agreement shall be governed by and construed under the laws of the State of California as applied to agreements
among California residents entered into and to be performed entirely within California. 
 5.2 Survival. The representations,
warranties, covenants, and agreements made herein shall survive any investigation made by any Holder and the closing of the transactions contemplated hereby. All statements as to factual matters contained in any certificate or other instrument
delivered by or on behalf of the Company pursuant hereto in connection with the transactions contemplated hereby shall be deemed to be representations and warranties by the Company hereunder solely as of the date of such certificate or instrument.

 5.3 Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of,
and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto and shall inure to the benefit of and be enforceable by each Person 

  
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who shall be a Holder of Registrable Securities from time to time; provided, however, that prior to the receipt by the Company of adequate written notice of the transfer of any Registrable
Securities specifying the full name and address of the transferee, the Company may deem and treat the Person listed as the holder of such shares in its records as the absolute owner and holder of such shares for all purposes, including the payment
of dividends or any redemption price. 
 5.4 Entire Agreement. This Agreement and the exhibits hereto, along with the Series G
Purchase Agreement and each of the exhibits, schedules and agreements referred to therein, constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof and no party shall be liable or
bound to any other in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein and therein. This Agreement replaces and supersedes all prior written or oral agreements, statements,
correspondence, negotiations and understandings by and among the parties with respect to the matters covered by it. 
 5.5 Severability.
In the event one or more of the provisions of this Agreement should, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this
Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 

5.6 Amendment and Waiver. 

(a) Except as otherwise expressly provided, this Agreement may be amended or modified only upon the written consent of the Company, the holders
of at least a majority of the Prior Registrable Securities, and the Requisite Senior Preferred Vote; provided that if such amendment ,has the effect of materially and adversely affecting the Holders of a class or series of the Company’s
equity securities differently from the Holders of another class or series of the Company’s equity securities, then such amendment shall require the written consent of the Holders of at least a majority in interest of such materially and
adversely affected class or series. Except as otherwise expressly provided, the obligations of the Company and the rights of the Holders under this Agreement may be waived only with the written consent of the holders of at least a majority of the
Prior Registrable Securities, and the Requisite Senior Preferred Vote; provided that if the rights are only in favor of the Holders of a class or series of the Company’s equity securities, but not Holders of another class or series of
the Company’s equity securities, then such waiver shall instead require the written consent of the Holders of at least a majority in interest of such class or series in whose favor are the rights. Notwithstanding the foregoing, Holders
purchasing shares of Series H Preferred in a Closing after the Initial Closing (each as defined in the Purchase Agreement) may become parties to this Agreement, by executing a counterpart of this Agreement without any amendment of this Agreement
pursuant to this paragraph or any consent or approval of any other Holder for the sole purpose of including each Additional Purchaser of Series H Preferred as a “Series H Holder.” 

(b) For the purposes of determining the number of Holders entitled to vote or exercise any rights hereunder, the Company shall be entitled to
rely solely on the list of record holders of its stock as maintained by or on behalf of the Company. 
 5.7 Aggregation of Stock. All
shares of Registrable Securities held or acquired by a Holder and its Affiliates (as defined in Rule 405 promulgated under the Securities Act) shall be aggregated together for the purpose of determining the availability of any rights under this
Agreement. For purposes of the foregoing, the shares held by any Holder that (i) is a partnership, limited liability company or corporation, the partners, retired partners, members, retired members and shareholders of such Holder, or the
estates and family members of any such partners, retired partners, members, retired members and any trusts for the benefit of any of the foregoing Persons shall be deemed to be a single “Holder,” and (ii) is

  
 21 

 
an individual shall be deemed to include shares held by any members of the shareholder’s family and any custodian or trustee for the benefit of any of such individual. With respect to the
Capri Investors (as defined in the Co-Sale Agreement), the shares of Registrable Securities held or acquired by any Capri Investor shall be aggregated together for the purpose of determining the availability
of any rights under this Agreement. 
 5.8 Delays or Omissions. It is agreed that no delay or omission to exercise any right, power,
or remedy accruing to any Holder, upon any breach, default or noncompliance of the Company under this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance, or
any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent, or approval of any kind or character on any Holder’s part of any breach, default or
noncompliance under this Agreement or any waiver on such Holder’s part of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either
under this Agreement, by law, or otherwise afforded to Holders, shall be cumulative and not alternative. 
 5.9 Notices. All notices
required or permitted hereunder shall be in writing and shall be deemed effectively given (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours
of the recipient; if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the party to be notified at the address as set forth on the signature pages hereof or at such other address as such party may
designate by ten (10) days advance written notice to the other parties hereto. 
 5.10 Attorneys’ Fees. In the event that
any suit or action is instituted to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under
or with respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals. 

5.11 No Presumption. Any rule of law, including without limitation Section 1654 of the California Civil Code or any legal decision
that would require interpretation of any claimed ambiguities in this Agreement against the party that drafted it, has no application and is expressly waived. If any claim is made by a party relating to any conflict, omission or ambiguity in the
provisions of this Agreement, no presumption or burden of proof or persuasion will be implied because this Agreement was prepared by or at the request of any party or its counsel. 

5.12 Titles and Subtitles. The titles of the Sections and subsections of this Agreement are for convenience of reference only and are
not to be considered in construing this Agreement. 
 5.13 Additional Investors. Notwithstanding anything to the contrary contained
herein, but subject to Section 2.14 of this Agreement, if the Company shall issue Equity Securities in accordance with Section 4.4(c), (f) or (h) of this Agreement, any purchaser of such Equity Securities may become a party to this
Agreement by executing and delivering an additional counterpart signature page to this Agreement and shall be deemed an “Investor” hereunder. 

5.14 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which
together shall constitute one instrument. 
 [THIS SPACE INTENTIONALLY LEFT BLANK] 

  
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 The parties hereto have executed this NINTH AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT as of the date set forth in the first paragraph hereof. 
  

			
	COMPANY:
	
	RXSIGHT, INC.
		
	By:	 	 /s/ Ron Kurtz

	Name:	 	Ron Kurtz
	Title:	 	Chief Executive Officer
	
	Address: 100 Columbia Street, Suite 120
		 	Aliso Viejo, CA 92656

 [Signature Page to Ninth Amended and Restated Investors’ Rights Agreement]

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