Document:

Exhibit 4.2

  

  	 

   

     

   

   

   

  

   

  

   

  

   

  

   

  

   

  

  CASTLE BIOSCIENCES, INC.

   

   

  

  SIXTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

   

   

  

  July 12, 2019

   

  

   

  

   

  

   

  

   

  

   

  

  	 

   

  
    
      
 

  

  
  TABLE OF CONTENTS

   

  	 	 	 	Page
	 	 	 	 
	SECTION 1.	 	DEFINITIONS	1
	 	 	 	 
	1.1	 	Certain Definitions	1
	 	 	 	 
	SECTION 2.	 	REGISTRATION RIGHTS	5

        
	 	 	 	 
	2.1	 	Requested Registration	5

        
	2.2	 	Company Registration	7

        
	2.3	 	Registration on Form S-3	9
	2.4	 	Expenses of Registration	9

        
	2.5	 	Registration Procedures	10
	2.6	 	Indemnification	110
	2.7	 	Information by Holder	13
	2.8	 	Restrictions on Transfer	13
	2.9	 	Rule 144 Reporting	14
	2.10	 	Market Stand-Off Agreement	15
	2.11	 	Delay of Registration	15
	2.12	 	Transfer or Assignment of Registration Rights	15
	2.13	 	Limitations on Subsequent Registration Rights	15
	2.14	 	Termination of Registration Rights	16
	 	 	 	 
	SECTION 3.	 	INFORMATION COVENANTS OF THE COMPANY	16
	 	 	 	 
	3.1	 	Basic Financial Information and Inspection Rights	16
	3.2	 	Confidentiality	17
	3.3	 	Termination of Covenants	17
	 	 	 	 
	SECTION 4.	 	RIGHT OF FIRST REFUSAL	17
	 	 	 	 
	4.1	 	Right of First Refusal to Significant Holders	17
	4.2	 	Termination of Covenants	19
	 	 	 	 
	SECTION 5.	 	BOARD OF DIRECTORS AND STOCKHOLDERS MATTERS	19

        
	 	 	 	 
	5.1	 	Board Meetings	19

        
	5.2	 	Directors and Officers Insurance	19

        
	5.3	 	Matters Requiring Board Approval	19

        
	5.4	 	Matters Requiring Approval by the Major Investors	20
	5.5	 	FCPA	22
	5.6	 	Termination of Covenants	22
	 	 	 	 
	SECTION 6.	 	EMPLOYEE MATTERS	22
	 	 	 	 
	6.1	 	Employee Proprietary Information Agreements	22
	6.2	 	Key Person Insurance	22
	6.3	 	Employee Stock	23
	6.4	 	Termination of Covenants	23
	 	 	 	 
	SECTION 7.	 	MISCELLANEOUS	23
	 	 	 	 
	7.1	 	Amendment	23
	7.2	 	Notices	23
	7.3	 	Governing Law	24
	7.4	 	Successors and Assigns	24
	7.5	 	Entire Agreement	24

   

  
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  TABLE OF CONTENTS

  (continued) 

   

  	 	 	 	Page
	 	 	 	 
	7.6	 	Delays or Omissions	24
	7.7	 	Severability	24
	7.8	 	Titles and Subtitles	25
	7.9	 	Counterparts	25
	7.10	 	Telecopy Execution and Delivery	25
	7.11	 	Further Assurances	25
	7.12	 	Aggregation of Stock	25

   

   

  
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  CASTLE BIOSCIENCES, INC.

   

  SIXTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

   

  This Sixth Amended and Restated Investors’ Rights Agreement (this “Agreement”) is dated as of July 12, 2019, and is between Castle
    Biosciences, Inc., a Delaware corporation (the “Company”), the persons and entities listed on Exhibit A hereto (each, an “Investor” and collectively, the “Investors”), and SH Castle Biosciences, LLC (“Stonebridge-Highland”
    and also referred to as an “Investor” for purposes of Section 2 of this Agreement, and only a party to this Agreement for purposes of Section 2 of this Agreement and the applicable provisions in Sections 1 and 7.1 of this Agreement in
    connection therewith). This Agreement amends and restates that certain Fifth Amended and Restated Investors’ Rights Agreement dated July 15, 2015 (the “Prior Agreement”), by and between the Company and certain of the Investors. Unless
    otherwise defined herein, capitalized terms used in this Agreement have the meanings ascribed to them in Section 1.

   

  RECITALS

   

  WHEREAS, certain of the Investors hold shares of the Company’s Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock,
    Series D Preferred Stock, and/or Series E Preferred Stock and possess registration rights, information rights, rights of first offer and other rights pursuant to the Prior Agreement;

   

  WHEREAS, pursuant to Section 7.1 of the Prior Agreement, any term of the Prior Agreement may be amended or waived with the written consent of
    the Company and the Holders (as defined in the Prior Agreement) holding at least a majority of the Registrable Securities (as defined in the Prior Agreement) and each of the Major Investors (as defined in the Prior Agreement) (the “Required
        Approval”); and

   

  WHEREAS, the undersigned, constituting the Required Approval, desire to amend and restate the Prior Agreement, waive certain rights
    thereunder and accept the rights created pursuant to this Agreement in lieu of the rights granted to them under the Prior Agreement in connection with the sale and issuance (or potential sale and issuance) of a convertible promissory note of the
    Company (the “Note”), warrants to purchase shares of the Company (the “Warrants”) and shares of capital stock of the Company pursuant to that certain Convertible Note Purchase Agreement, dated July 3, 2019, by and between
    the Company and Stonebridge-Highland (the “Note Purchase Agreement”).

   

  AGREEMENT

   

  NOW, THEREFORE: In consideration of the mutual promises and covenants set forth herein, and other consideration, the receipt and adequacy of
    which is hereby acknowledged, the parties hereto agree as follows:

   

  SECTION 1.

    

    DEFINITIONS

   

  1.1          Certain Definitions. As used in this Agreement,
    the following terms shall have the meanings set forth below:

   

  (a)              “Adjusted Equity Value” shall mean the
    Enterprise Value, less (1) any unpaid principal outstanding under the Company’s long-term debt (other than under the Prior Notes and the Note), plus (2) the value of the Company’s cash, plus (3) the assumed proceeds payable to the Company upon full
    exercise of all outstanding stock options, warrants or other rights to purchase securities of the Company, whether vested or unvested (in the case of (1), (2) and (3) above, each as of the date upon which the number of Registrable Securities is being
    assessed hereunder).

   

  
    1.

    
      
 

  

  (b)             “Certificate of Incorporation” shall
    mean the Company’s Seventh Amended and Restated Certificate of Incorporation, as may be amended from time to time.

   

  (c)              “Commission” shall mean the Securities
    and Exchange Commission or any other federal agency at the time administering the Securities Act.

   

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

   

  (e)              “Conversion Stock” shall mean shares
    of Common Stock issued upon conversion of the Preferred Stock.

   

  (f)              “Enterprise Value” means either (i)
    $200,000,000 or (ii) if, in the good faith determination of the board of directors of the Company, there is a reasonably imminent Non-Qualified IPO, Change of Control Conversion or Maturity Conversion (each as defined in the Note), the applicable gross
    enterprise value of the Company in respect of such transaction used to determine the Conversion Price (as defined in the Note) as determined by the Board in good faith.

   

  (g)             “Exchange Act” shall mean the
    Securities Exchange Act of 1934, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

   

  (h)             “Holder” shall mean any Investor who
    holds Registrable Securities and any holder of Registrable Securities to whom the registration rights conferred by this Agreement have been duly and validly transferred in accordance with Section 2.12 of this Agreement. When used herein, “Holder” shall
    only refer to Stonebridge-Highland when used in a section for which Stonebridge-Highland’s shares of capital stock of the Company are considered Registrable Securities, pursuant to 1.1(x) below

   

  (i)               “Indemnified Party” shall have the
    meaning set forth in Section 2.6(c).

   

  (j)               “Indemnifying Party” shall have the
    meaning set forth in Section 2.6(c).

   

  (k)             “Initial Public Offering” shall mean
    the closing of the Company’s first firm commitment underwritten public offering of the Company’s Common Stock registered under the Securities Act.

   

  (l)               “Initiating Holders” shall mean any
    Holder or Holders who in the aggregate hold not less than fifty percent (50%) of the outstanding Registrable Securities and, prior to a Threshold Event, each of the Major Investors.

   

  (m)            “Liquidation Event” shall mean a
    Liquidation Event as defined in the Certificate of Incorporation or a Deemed Liquidation Event as defined in the Certificate of Incorporation.

   

  (n)             “Major Investor” shall mean any of
    BioBrit, LLC, Industry Ventures Healthcare, LLC, MGC Venture Partners 2013, L.P. and Sofinnova HealthQuest Partners, L.P. in each case for so long as such Major Investor (or its affiliated entities (including affiliated venture capital funds)) holds at
    least 50,000 aggregate shares of Series F Preferred Stock, Series E-2 Preferred Stock, Series E-3 Preferred Stock and/or Series E-2A Preferred Stock (as appropriately adjusted for any stock split, dividend, combination or other recapitalization).

   

  
    2.

    
      
 

  

  (o)             “New Securities” shall have the meaning
    set forth in Section 4.1(a).

   

  (p)             “Note Conversion Amount” shall mean a
    number of shares of Common Stock equal to the quotient of (1) the principal and accrued interest under the Note as of the date upon which the number of Registrable Securities is being assessed hereunder, divided by (2) the Valuation Cap Price.

   

  (q)             “Note Shares” shall mean the quotient
    of (1) any unpaid principal outstanding under the Note, divided by (2) the Valuation Cap Price (which, for clarity, is an iterative calculation).

   

  (r)              “Other Selling Stockholders” shall
    mean persons other than Holders who, by virtue of agreements with the Company approved by the board of directors of the Company (including each of the Preferred Directors), are entitled to include their Other Shares in certain registrations hereunder.

   

  (s)              “Other Shares” shall mean shares of
    Common Stock, other than Registrable Securities (as defined below), with respect to which registration rights have been granted and approved by the board of directors of the Company (including each of the Preferred Directors).

   

  (t)              “Preferred Director” shall have the
    meaning set forth in the Certificate of Incorporation.

   

  (u)             “Preferred Stock” shall mean the Series
    A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E-1 Preferred Stock, Series E-2 Preferred Stock, Series E-3 Preferred Stock, Series E-2A Preferred Stock and Series F Preferred Stock.

   

  (v)             “Prior Note Shares” shall mean the
    quotient of (1) any unpaid principal outstanding under the Prior Notes, divided by (2) the product of the Valuation Cap Price, multiplied by 0.8 (which, for clarity, is an iterative calculation).

   

  (w)            “Prior Notes” shall mean those certain
    convertible promissory notes, as the same may be amended from time to time, issued pursuant to that certain Note Purchase Agreement dated January 31, 2019, by and among the Company and the Investors set forth on Exhibit A thereto, as amended.

   

  (x)             “Registrable Securities” shall mean (i)
    shares of Common Stock issued or issuable pursuant to the conversion of the Shares, (ii) shares of Common Stock issued or issuable (directly or indirectly) to Stonebridge-Highland upon the conversion of the Note, (iii) shares of Common Stock issued or
    issuable (directly or indirectly) to Stonebridge-Highland upon the exercise of the Warrants, (iv) any Common Stock issued as a dividend or other distribution with respect to or in exchange for or in replacement of the shares referenced in (i) above; provided,

      however, that Registrable Securities shall not include any shares of Common Stock described in clause (i) through (iv) above which are registered or which were sold to the public either pursuant to a registration statement or Rule 144, or which
    have been sold in a private transaction in which the transferor’s rights under this Agreement are not validly assigned in accordance with this Agreement. For the avoidance of doubt, if a Holder purchases shares of Common Stock in an underwritten public
    offering or on the open market, such shares of Common Stock shall not be Registrable Securities. For purposes of subpart (ii) above, at any time the Note remains outstanding and has not been converted in full, the number of shares of Common Stock
    deemed issuable thereunder shall equal the Note Conversion Amount.

   

  

  (y)             The terms “register,” “registered”
    and “registration” shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of the
    effectiveness of such registration statement.

   

   

  
    3.

    
      
 

  

  

  (z)              “Registration Expenses” shall mean all
    expenses incurred in effecting any registration pursuant to this Agreement, including, without limitation, all registration, qualification, and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky
    fees and expenses, and expenses of any regular or special audits incident to or required by any such registration, but shall not include Selling Expenses, fees and disbursements of counsel for the Holders and the compensation of regular employees of
    the Company, which shall be paid in any event by the Company.

   

  (aa)           “Reporting Date” shall mean the date
    upon which the Company first becomes subject to the periodic reporting requirements of Section 12(g) or Section 15(d) of the Exchange Act.

   

  (bb)          “Restricted Securities” shall mean any
    Registrable Securities required to bear the first legend set forth in Section 2.8(b).

   

  (cc)           “Rule 144” shall mean Rule 144 as
    promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission.

   

  (dd)          “Rule 145” shall mean Rule 145 as
    promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission.

   

  (ee)           “Securities Act” shall mean the
    Securities Act of 1933, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

   

  (ff)            “Selling Expenses” shall mean all
    underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of one special counsel to the Holders
    included in Registration Expenses).

   

  (gg)          “Series A Preferred Stock” shall mean the
    shares of Series A Preferred Stock of the Company.

   

  (hh)          “Series B Preferred Stock” shall mean the
    shares of Series B Preferred Stock of the Company.

   

  (ii)             “Series C Preferred Stock” shall mean
    the shares of Series C Preferred Stock of the Company.

   

  (jj)             “Series D Preferred Stock” shall mean
    the shares of Series D Preferred Stock of the Company.

   

  (kk)          “Series E Preferred Stock” shall mean the
    shares of Series E-1 Preferred Stock, the shares of Series E-2 Preferred Stock, the shares of Series E-3 Preferred Stock and the shares of Series E-2A Preferred Stock, together as a single class and not as separate series.

   

  

   

  (ll)             “Series E-1 Preferred Stock” shall
    mean the shares of Series E-1 Preferred Stock of the Company.

   

  (mm)         “Series E-2 Preferred Stock” shall mean
    the shares of Series E-2 Preferred Stock of the Company.

   

   

  
    4.

    
      
 

  

   
  (nn)          “Series E-3 Preferred Stock” shall mean
    the shares of Series E-3 Preferred Stock of the Company.

   

  (oo)          “Series E-2A Preferred Stock” shall mean
    the shares of Series E-2A Preferred Stock of the Company.

   

  (pp)          “Series F Preferred Stock” shall mean the
    shares of Series F Preferred Stock of the Company.

   

  (qq)          “Shares” shall mean shares of Series A
    Preferred Stock, shares of Series B Preferred Stock, shares of Series C Preferred Stock, shares of Series D Preferred Stock, shares of Series E-1 Preferred Stock, shares of Series E-2 Preferred Stock, shares of Series E-3 Preferred Stock, shares of
    Series E-2A Preferred Stock and shares of Series F Preferred Stock.

   

  (rr)            “Significant Holders” shall have the
    meaning set forth in Section 4.1.

   

  (ss)          “Threshold Event” shall mean a
    Liquidation Event or Deemed Liquidation Event (each as defined in the Certificate of Incorporation) pursuant to which (i) the holders of Series E-1 Preferred Stock would receive at the initial closing of such Liquidation Event or Deemed Liquidation
    Event consideration having a value equal to at least three (3) times the Original Issue Price (as defined in the Certificate of Incorporation) of the Series E-1 Preferred Stock, (ii) the holders of Series E-2 Preferred Stock would receive at the
    initial closing of such Liquidation Event or Deemed Liquidation Event consideration having a value equal to at least three (3) times the Original Issue Price of the Series E-2 Preferred Stock, (iii) the holders of Series E-3 Preferred Stock would
    receive at the initial closing of such Liquidation Event or Deemed Liquidation Event consideration having a value equal to at least three (3) times the Original Issue Price of the Series E-3 Preferred Stock, (iv) the holders of Series E-2A Preferred
    Stock would receive at the initial closing of the Liquidation Event or Deemed Liquidation Event consideration having a value equal to at least three (3) times the Original Issue Price of the Series E-2A Preferred Stock, and (v) the holders of Series F
    Preferred Stock would receive at the initial closing of the Liquidation Event or Deemed Liquidation Event consideration having a value equal to at least three (3) times the Original Issue Price of the Series F Preferred Stock.

   

  (tt)            “Valuation Cap Price” means the
    quotient of (1) the Adjusted Equity Value, divided by (2) the aggregate number of outstanding shares of Common Stock as of the date upon which the number of Registrable Securities is being assessed hereunder (assuming conversion of all securities
    convertible into shares of Common Stock and exercise of all outstanding options and warrants (whether vested or unvested), including the Prior Note Shares and the Note Shares), plus all shares reserved for future issuance under authorized but unissued
    options (which, for clarity, is an iterative calculation).

   

  

  SECTION 2.

    

    REGISTRATION RIGHTS 

   

  2.1          Requested Registration.

   

  (a)            Request for Registration. Subject to the
    conditions set forth in this Section 2.1, if the Company shall receive from Initiating Holders a written request signed by such Initiating Holders that the Company effect any registration with respect to all or a part of the Registrable Securities
    (such request shall state the number of shares of Registrable Securities to be disposed of by such Initiating Holders and whether the offering will be underwritten and/or on a Form S-1), the Company will:

   

   

  
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  (i)              promptly give written notice of the proposed
    registration to all other Holders; and

   

  (ii)             as soon as practicable, file and use its
    commercially reasonable efforts to effect such registration (including, without limitation, filing post-effective amendments, appropriate qualifications under applicable blue sky or other state securities laws, and appropriate compliance with the
    Securities Act) and to permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders
    joining in such request as are specified in a written request received by the Company within twenty (20) days after such written notice from the Company is mailed or delivered.

   

  (b)           Limitations on Requested Registration.
    The Company shall not be obligated to effect, or to take any action to effect, any such registration pursuant to this Section 2.1:

   

  (i)              Prior to the earlier of (A) the five (5) year
    anniversary of the date of this Agreement or (B) one hundred eighty (180) days following the effective date of the first registration statement filed by the Company covering an underwritten offering of any of its securities to the general public;

   

  (ii)             If the Initiating Holders, together with the
    holders of any Other Shares entitled to inclusion in such registration statement, propose to sell Registrable Securities and such other securities (if any) the aggregate proceeds of which (after deduction for underwriter’s discounts and expenses
    related to the issuance) are less than $10,000,000;

   

  (iii)           In any particular jurisdiction in which the Company
    would be required to execute a general consent to service of process in effecting such registration, qualification, or compliance, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities
    Act;

   

  (iv)           After the Company has completed two such
    registrations pursuant to this Section 2.1;

   

  (v)            During the period starting with the date ninety (90)
    days prior to the Company’s good faith estimate of the date of filing of, and ending on a date ninety (90) days after the effective date of, a Company-initiated registration (or ending on the subsequent date on which all market stand-off agreements
    applicable to the offering have terminated); provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective;

   

  

  (vi)           If the Initiating Holders propose to dispose of
    shares of Registrable Securities that may be registered on Form S-3 in an underwritten offering pursuant to a request made under Section 2.3 (in which case Section 2.3 shall apply to such registration demand);

   

  (vii)          If the Initiating Holders do not request that such
    offering be firmly underwritten by underwriters selected by the Initiating Holders (subject to the reasonable consent of the Company); or

   

  (viii)         If the Company and the Initiating Holders are unable
    to obtain the commitment of an underwriter as described in clause (b)(vii) above to firmly underwrite the offer.

   

   

  
    6.

    
      
 

  

   
  (c)            Deferral. If (i) in the good faith
    judgment of the board of directors of the Company, the filing of a registration statement covering the Registrable Securities would be materially detrimental to the Company and the board of directors of the Company concludes, as a result, that it is in
    the best interests of the Company to defer the filing of such registration statement at such time, and (ii) the Company shall furnish to such Holders a certificate signed by the President of the Company stating that in the good faith judgment of the
    board of directors of the Company, it would be materially detrimental to the Company for such registration statement to be filed in the near future and that it is, therefore, in the best interests of the Company to defer the filing of such registration
    statement, then (in addition to the limitations set forth in Section 2.1(b)(v) above) the Company shall have the right to defer such filing for a period of not more than one hundred twenty (120) days after receipt of the request of the Initiating
    Holders, and, provided further, that the Company shall not defer its obligation in this manner more than once in any twelve-month period.

   

  (d)           Other Shares. The registration statement
    filed pursuant to the request of the Initiating Holders may, subject to the provisions of Section 2.1(e), include Other Shares, and may include securities of the Company being sold for the account of the Company.

   

  (e)           Underwriting. The right of any Holder to
    include all or any portion of its Registrable Securities in a registration pursuant to this Section 2.1 shall be conditioned upon such Holder’s participation in an underwriting and the inclusion of such Holder’s Registrable Securities to the extent
    provided herein. If the Company shall request inclusion in any registration pursuant to Section 2.1 of securities being sold for its own account, or if other persons shall request inclusion in any registration pursuant to Section 2.1, the Initiating
    Holders shall, on behalf of all Holders, offer to include such securities in the underwriting and such offer shall be conditioned upon the participation of the Company or such other persons in such underwriting and the inclusion of the Company’s and
    such person’s other securities of the Company and their acceptance of the further applicable provisions of this 2 (including Section 2.10). The Company shall (together with all Holders and other persons proposing to distribute their securities through
    such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected for such underwriting by the Initiating Holders holding a majority of the Registrable Securities held by all
    Initiating Holders, which underwriters are reasonably acceptable to the Company.

   

  Notwithstanding any other provision of this Section 2.1, if the underwriters advise the Initiating Holders in writing that marketing factors require
    a limitation on the number of shares to be underwritten, the number of Registrable Securities and Other Shares that may be so included shall be allocated as follows: (i) first, among all Holders requesting to include Registrable Securities in such
    registration statement based on the pro rata percentage of Registrable Securities held by such Holders, assuming conversion; (ii) second, to the Other Selling Stockholders; and (iii) third, to the Company, which the Company may allocate, at its
    discretion, for its own account, or for the account of other holders or employees of the Company.

   

  

  If a person who has requested inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person
    shall be excluded therefrom by written notice from the Company, the underwriter or the Initiating Holders. The securities so excluded shall also be withdrawn from registration. Any Registrable Securities or other securities excluded or withdrawn from
    such underwriting shall also be withdrawn from such registration. If shares are so withdrawn from the registration and if the number of shares to be included in such registration was previously reduced as a result of marketing factors pursuant to this
    Section 2.1(e), then the Company shall then offer to all Holders and Other Selling Stockholders who have retained rights to include securities in the registration the right to include additional Registrable Securities or Other Shares in the
    registration in an aggregate amount equal to the number of shares so withdrawn, with such shares to be allocated among such Holders and other Selling Stockholders requesting additional inclusion, as set forth above.

   

  2.2          Company Registration.

   

  (a)           Company Registration. If the Company
    shall determine to register any of its securities either for its own account or the account of a security holder or holders, other than a registration pursuant to Section 2.1 or 2.3, a registration relating solely to employee benefit plans, a
    registration relating to the offer and sale of debt securities, a registration relating to a corporate reorganization or other Rule 145 transaction, or a registration on any registration form that does not permit secondary sales, the Company will:

   

  (i)              promptly give written notice of the proposed
    registration to all Holders; and

   

   

  
    7.

    
      
 

  

   
  (ii)             use its commercially reasonable efforts to include
    in such registration (and any related qualification under blue sky laws or other compliance), except as set forth in Section 2.2(b) below, and in any underwriting involved therein, all of such Registrable Securities as are specified in a written
    request or requests made by any Holder or Holders received by the Company within ten (10) days after such written notice from the Company is mailed or delivered. Such written request may specify all or a part of a Holder’s Registrable Securities.

   

  (b)           Underwriting. If the registration of
    which the Company gives notice is for a registered public offering involving an underwriting, the Company shall so advise the Holders as a part of the written notice given pursuant to Section 2.2(a)(i). In such event, the right of any Holder to
    registration pursuant to this Section 2.2 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 (together with the Company and the Other Selling Stockholders other holders of securities of the Company with registration rights to participate therein distributing their securities through
    such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected by the Company.

   

  Notwithstanding any other provision of this Section 2.2, if the underwriters advise the Company in writing that marketing factors require a
    limitation on the number of shares to be underwritten, the underwriters may (subject to the limitations set forth below) exclude all Registrable Securities from, or limit the number of Registrable Securities to be included in, the registration and
    underwriting. The Company shall so advise all holders of securities requesting registration, and the number of shares of securities that are entitled to be included in the registration and underwriting shall be allocated, as follows: (i) first, to the
    Company for securities being sold for its own account, (ii) second, to the Holders requesting to include Registrable Securities in such registration statement based on the pro rata percentage of Registrable Securities held by such Holders, assuming
    conversion and (iii) third, to the Other Selling Stockholders requesting to include Other Shares in such registration statement based on the pro rata percentage of Other Shares held by such Other Selling Stockholders, assuming conversion.
    Notwithstanding the foregoing, in no event shall the amount of securities of the Holders included in the offering be reduced below thirty percent (30%) of the total amount of securities included in such offering, unless such offering is the Company’s
    Initial Public Offering, in which case securities of the Holders may be excluded in their entirety if the underwriters make the determination described above and no Other Selling Stockholder’s securities are included in such offering.

   

  

  If a person who has requested inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person
    shall also be excluded therefrom by written notice from the Company or the underwriter. The Registrable Securities or other securities so excluded shall also be withdrawn from such registration. Any Registrable Securities or other securities excluded
    or withdrawn from such underwriting shall be withdrawn from such registration. If shares are so withdrawn from the registration and if the number of shares of Registrable Securities to be included in such registration was previously reduced as a result
    of marketing factors pursuant to Section 2.2(b), the Company shall then offer to all persons who have retained the right to include securities in the registration the right to include additional securities in the registration in an aggregate amount
    equal to the number of shares so withdrawn, with such shares to be allocated among the persons requesting additional inclusion, in the manner set forth above.

   

  (c)            Right to Terminate Registration. The
    Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration, and such
    registration will not count as a “registration” effected hereunder.

   

   

  
    8.

    
      
 

  

  

   

  2.3          Registration on Form S-3.

   

  (a)            Request for Form S-3 Registration. After
    its Initial Public Offering, the Company shall use its commercially reasonable efforts to qualify for registration on Form S-3 or any comparable or successor form or forms. After the Company has qualified for the use of Form S-3, in addition to the
    rights contained in the foregoing provisions of this Section 2 and subject to the conditions set forth in this Section 2.3, if the Company shall receive from a Holder or Holders of Registrable Securities holding in the aggregate not less than ten
    percent (10%) of the outstanding Registrable Securities a written request that the Company effect any registration on Form S-3 or any similar short form registration statement with respect to all or part of the Registrable Securities (such request
    shall state the number of shares of Registrable Securities to be disposed of and the intended methods of disposition of such shares by such Holder or Holders and whether the offering will be underwritten), the Company will take all such action with
    respect to such Registrable Securities as required by Section 2.1(a)(i) and 2.1(a)(ii).

   

  (b)           Limitations on Form S-3 Registration. The
    Company shall not be obligated to effect, or take any action to effect, any such registration pursuant to this Section 2.3:

   

  (i)               In the circumstances described in either Sections
    2.1(b)(i), 2.1(b)(iii) or 2.1(b)(v);

   

  (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) on Form S-3 at an aggregate price to the public of less than $l,000,000; or

   

  (iii)             If, in a given six-month period, the Company has
    effected one (1) such registration in such period.

   

  (c)            Deferral. The provisions of Section
    2.1(c) shall apply to any registration pursuant to this Section 2.3.

   

  (d)           Underwriting. If the Holders of
    Registrable Securities requesting registration under this Section 2.3 intend to distribute the Registrable Securities covered by their request by means of an underwriting, the provisions of Section 2.1(e) shall apply to such registration.
    Notwithstanding anything contained herein to the contrary, registrations effected pursuant to this Section 2.3 shall not be counted as requests for registration or registrations effected pursuant to Section 2.1.

   

  

  2.4           Expenses of Registration. All Registration
    Expenses incurred in connection with registrations pursuant to Sections 2.1, 2.2 and 2.3 shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun
    pursuant to Sections 2.1 and 2.3 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered or because a sufficient number of Holders shall have withdrawn so that the
    minimum offering conditions set forth in Sections 2.1 and 2.3 are no longer satisfied (in which case all participating Holders shall bear such expenses pro rata among each other based on the number of Registrable Securities requested to be so
    registered), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to a demand registration pursuant to Section 2.1(a); provided, however, in the event that a withdrawal by the Holders is based upon
    material adverse information relating to the Company that is different from the information known or available (upon request from the Company or otherwise) to the Holders requesting registration at the time of their request for registration under
    Section 2.1, such registration shall not be treated as a counted registration for purposes of Section 2.1 hereof, even though the Holders do not bear the Registration Expenses for such registration. All Selling Expenses relating to Registrable
    Securities registered on behalf of the Holders shall be borne by such Holders pro rata among each other on the basis of the number of Registrable Securities so registered. 

   

  
    9.

    
      
 

  

  

  

   

  2.5           Registration Procedures. In the case of each
    registration effected by the Company pursuant to Section 2, the Company will keep each selling Holder advised in writing as to the initiation of each registration and as to the completion thereof. At its expense, the Company will use its commercially
    reasonable efforts to:

   

  (a)              Prepare and file with the Commission a registration
    statement with respect to such Registrable Securities and cause such registration statement to become effective;

   

  (b)              Keep such registration effective for a period ending
    on the earlier of the date which is one hundred twenty (120) days from the effective date of the registration statement or such time as the Holder or Holders have completed the distribution described in the registration statement relating thereto; provided,

      however, that such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any
    securities included in such registration;

   

  (c)              Prepare and file with the Commission 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;

   

  (d)              Furnish such number of prospectuses, including any
    preliminary prospectuses, and other documents incident thereto, including any amendment of or supplement to the prospectus, as a Holder from time to time may reasonably request;

   

  (e)              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, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

   

  

  (f)             Notify each seller 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 or incomplete in light of the circumstances then existing, and following
    such notification promptly prepare and furnish to such seller a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such prospectus
    shall not include an 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 or incomplete in light of the circumstances then existing;

   

  (g)             Provide a transfer agent and registrar for all
    Registrable Securities registered pursuant to such registration statement and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

   

  

  (h)             Promptly make available for inspection by the selling
    Holders, any underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by such underwriter or selected by the selling Holders, all financial and other records,
    pertinent corporate documents, and properties of the Company, and cause the Company’s officers, directors, employees, and independent accountants to supply all information reasonably requested by any such selling Holder, underwriter, attorney,
    accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

   

  (i)              Notify each selling Holder, promptly after the
    Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming part of such registration statement has been filed;

   

  (j)               After such registration statement becomes
    effective, notify each selling Holder of any request by the Commission that the Company amend or supplement such registration statement or prospectus;

   

  (k)             Cause all such Registrable Securities registered
    pursuant hereto to be listed on a national securities exchange or trading system and each securities exchange on which similar securities issued by the Company are then listed; and

   

  (l)              In connection with any underwritten offering, enter
    into and perform its obligations under an underwriting agreement, in form reasonably necessary to effect the offer and sale of Common Stock, provided such underwriting agreement contains reasonable and customary provisions.

   

  In addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities of the Company
    under the Securities Act shall have become effective, its insider trading policy shall provide that the Company’s directors may implement a trading program under Rule 10b5- 1 of the Exchange Act, unless determined otherwise by the board of directors of
    the Company.

   

  
    10.

    
      

  

  
   

   

   

  2.6           Indemnification.

   

  (a)              To the extent permitted by law, the Company will
    indemnify and hold harmless each Holder, each of its officers, directors and partners, legal counsel and accountants and each person controlling such Holder within the meaning of Section 15 of the Securities Act, with respect to which registration,
    qualification or compliance has been effected pursuant to this Section 2, and each underwriter, if any, and each person who controls within the meaning of Section 15 of the Securities Act any underwriter, against all expenses, claims, losses, damages
    and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on: (i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any prospectus, offering
    circular or other document (including any related registration statement, notification or the like) incident to any such registration, qualification or compliance, (ii) any 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, any state securities laws or any rule or regulation thereunder applicable to the Company and
    relating to action or inaction required of the Company in connection with any offering covered by such registration, qualification or compliance, and the Company will reimburse each such Holder, each of its officers, directors, partners, legal counsel
    and accountants and each person controlling such Holder, each such underwriter and each person who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any
    such claim, loss, damage, liability or action; provided that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability, or action arises out of or is based on any untrue statement or omission
    based upon written information furnished to the Company by such Holder, any of such Holder’s officers, directors, partners, legal counsel or accountants, any person controlling such Holder, such underwriter or any person who controls any such
    underwriter, and stated to be specifically for use therein; and provided, further that, the indemnity agreement contained in this Section 2.6(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).

   

    

  (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, qualification or compliance is being effected, indemnify and hold harmless the Company, each of its directors, officers, partners, legal counsel
    and accountants and each underwriter, if any, of the Company’s securities covered by such a registration statement, each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, each other such Holder,
    and each of their officers, directors and partners, and each person controlling each other such Holder, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on: (i) any untrue statement (or alleged
    untrue statement) of a material fact contained or incorporated by reference in any prospectus, offering circular or other document (including any related registration statement, notification, or the like) incident to any such registration,
    qualification or compliance, or (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and such Holders,
    directors, officers, partners, legal counsel and accountants, persons, underwriters, or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or
    action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance
    upon and in conformity with written information furnished to the Company by such Holder and stated to be specifically for use therein; provided, however, that the obligations of such Holder hereunder shall not apply to amounts paid in
    settlement of any such claims, losses, damages or liabilities (or actions in respect thereof) if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld); and provided that in no event
    shall any indemnity under this Section 2.6 exceed the gross proceeds from the offering received by such Holder, except in the case of fraud or willful misconduct by such Holder.

   

  (c)           Each party entitled to indemnification under this
    Section 2.6 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which
    indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any
    litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party’s expense; and provided further that the
    failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 2.6, to the extent such failure is not prejudicial. 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 that 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. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as
    shall be reasonably required in connection with defense of such claim and litigation resulting therefrom. 

  
    11.

    
      
 

  

   

  (d)           If the indemnification provided for in this Section 2.6
    is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party
    hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage, or expense 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 statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations. The relative fault of the
    Indemnifying Party and of the Indemnified Party shall be determined 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. No person or entity will be required under this Section 2.6(d) to
    contribute any amount in excess of the gross proceeds from the offering received by such person or entity, except in the case of fraud or willful misconduct by such person or entity. No person or entity guilty of fraudulent misrepresentation (within
    the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who or that was not guilty of such fraudulent misrepresentation.

   

  (e)           Notwithstanding the foregoing, to the extent that the
    provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall
    control.

   

  2.7          Information by Holder. Each Holder of
    Registrable Securities shall furnish to the Company such information regarding such Holder and the distribution of Registrable Securities proposed by such Holder as the Company may reasonably request in writing and as shall be reasonably required in
    connection with any registration, qualification or compliance referred to in this Section 2.

   

  2.8          Restrictions on Transfer.

   

  (a)           The holder of each certificate representing Registrable
    Securities by acceptance thereof agrees to comply in all respects with the provisions of this Section 2.8. Each Holder agrees not to make any sale, assignment, transfer, pledge or other disposition of all or any portion of the Restricted Securities, or
    any beneficial interest therein, unless and until the transferee thereof has agreed in writing for the benefit of the Company to take and hold such Restricted Securities subject to, and to be bound by, the terms and conditions set forth in this
    Agreement, including, without limitation, this Section 2.8 and Section 2.10, and:

   

  (i)              There is then in effect a registration statement
    under the Securities Act covering such proposed disposition and the disposition is made in accordance with the registration statement; or

   

  

  (ii)             The Holder shall have given prior written notice
    to the Company of the Holder’s intention to make such disposition and shall have furnished the Company with a detailed description of the manner and circumstances of the proposed disposition, and, if requested by the Company, the Holder shall have
    furnished the Company, at the Holder’s expense, with (i) an opinion of counsel reasonably satisfactory to the Company to the effect that such disposition will not require registration of such Restricted Securities under the Securities Act or (ii) a “no

        action” letter from the Commission to the effect that the transfer of such securities without registration will not result in a recommendation by the staff of the Commission that action be taken with respect thereto, whereupon the holder of
    such Restricted Securities shall be entitled to transfer such Restricted Securities in accordance with the terms of the notice delivered by the Holder to the Company. 

  
    12.

    
      
 

  

   

  (b)           Each certificate representing 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 BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),

    OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION
    THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

   

  THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, INCLUDING A LOCK-UP PERIOD IN THE
    EVENT OF A PUBLIC OFFERING, AS SET FORTH IN AN INVESTORS’ RIGHTS AGREEMENT BY AND BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SECURITIES. A COPY OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE ISSUER.

   

  The Holders consent to the Company making a notation on its records and giving instructions to any transfer agent of the Restricted Securities in
    order to implement the restrictions on transfer established in this Section 2.8.

   

  (c)           The first legend referring to federal and state
    securities laws identified in Section 2.8(b) stamped on a certificate evidencing the Restricted Securities and the stock transfer instructions and record notations with respect to the Restricted Securities shall be removed and the Company shall issue a
    certificate without such legend to the holder of Restricted Securities if (i) those securities are registered under the Securities Act, or (ii) the holder provides the Company with an opinion of counsel reasonably acceptable to the Company to the
    effect that a sale or transfer of those securities may be made without registration or qualification.

   

  

  2.9          Rule 144 Reporting. With a view to making
    available the benefits of certain rules and regulations of the Commission that may permit the sale of the Restricted Securities to the public without registration, the Company agrees to use its commercially reasonable efforts to:

   

  (a)            Make and keep adequate current public information with
    respect to the Company available in accordance with Rule 144 under the Securities Act, at all times from and after ninety (90) days following the effective date of the first registration under the Securities Act filed by the Company for an offering of
    its securities to the general public;

   

  (b)            File with the Commission in a timely manner all
    reports and other documents required of the Company under the Securities Act and the Exchange Act at any time after it has become subject to such reporting requirements; and

   

  (c)            So long as a Holder owns any Restricted Securities,
    furnish to the Holder forthwith upon written request a written statement by the Company as to its compliance with the reporting requirements of Rule 144 (at any time from and after ninety (90) days following the effective date of the first registration
    statement filed by the Company for an offering of its securities to the general public), and of the Securities Act and 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 so filed as a Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such securities without registration.

   

   

  
    13.

    
      
 

  

   
  2.10        Market Stand-Off Agreement. If requested by the
    Company or an underwriter, each Holder shall not sell or otherwise 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 of, any Common Stock (or
    other securities) of the Company held by such Holder (other than those included in the registration) for such period of time as reasonably requested by the Company or such underwriter, but not to exceed one hundred eighty (180) days following the
    effective date of the registration statement for the Initial Public Offering of the Company’s securities filed under the Securities Act (and for such additional period, if any, requested by the Company or an underwriter to accommodate regulatory
    restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor
    provisions or amendments thereto). The obligations described in this Section 2.10 shall not apply to a registration relating solely to employee benefit plans on Form S-l or Form S-8 or similar forms that may be promulgated in the future, or a
    registration relating solely to a transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions and may stamp each such certificate with the second legend set forth in Section 2.8(b)
    with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of such one hundred eighty (180) day (or other) period. Any discretionary waiver or termination of the restrictions of any or all of
    such agreements by the Company or the underwriters shall apply to all Holders subject to such agreements pro rata based on the number of shares subject to such agreements. Each Holder agrees to execute a market stand-off agreement with the underwriters
    in the offering in customary form consistent with the provisions of this section.

   

  2.11        Delay of Registration. No Holder shall have any
    right to take any action to restrain, enjoin, or otherwise delay any registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2.

   

  2.12        Transfer or Assignment of Registration Rights.
    The rights to cause the Company to register securities granted to a Holder by the Company under this Section 2 may be transferred or assigned by a Holder only to a transferee or assignee that is: (a) an affiliate of a Holder; (b) another Holder; (c) a
    Holder’s immediate family member or trust for the benefit of an individual Holder or one or more of such Holder’s immediate family members; or (d) the transferee or assignee of not less than 10,000 shares of Registrable Securities (as presently
    constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like); provided that (i) such transfer or assignment of Registrable Securities is effected in accordance with the terms of
    Section 2.8 and applicable securities laws, (ii) the Company is given written notice prior to said transfer or assignment, stating the name and address of the transferee or assignee and identifying the securities with respect to which such registration
    rights are intended to be transferred or assigned and (iii) the transferee or assignee of such rights assumes in writing the obligations of such Holder under this Agreement, including without limitation the obligations set forth in Section 2.10.

   

  2.13        Limitations on Subsequent Registration Rights.
    From and after the date of this Agreement, the Company shall not, without the prior written consent of (i) Holders holding a majority of the Registrable Securities, and (ii) both (a) the holders of a majority of the then-outstanding shares of Series E
    Preferred Stock and (b) each of the Major Investors, enter into any agreement with any holder or prospective holder of any securities of the Company giving such holder or prospective holder any registration rights the terms of which are senior to, or pari

      passu with, the registration rights granted to the Holders hereunder.

   

  
    14.

    
      
 

  

   

  2.14        Termination of Registration Rights. The right of
    any Holder to request registration or inclusion in any registration pursuant to Sections 2.1, 2.2 or 2.3 shall terminate upon and be of no further force or effect after the earliest to occur of: (a) five (5) years after the closing of the Company’s
    Initial Public Offering and (b) the consummation of a Liquidation Event.

   

  SECTION 3.

    

    INFORMATION COVENANTS OF THE COMPANY 

   

  3.1          Basic Financial Information and Inspection Rights.

   

  (a)           Basic Financial Information. The Company
    will furnish to each Holder who owns at least 10,000 Shares and/or Conversion Stock (as presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like) as soon as practicable after the
    end of each fiscal year of the Company, and in any event within one hundred twenty (120) days after the end of each fiscal year of the Company, a consolidated balance sheet of the Company and its subsidiaries, if any, as at the end of such fiscal year,
    and consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such year, prepared in accordance with U.S. generally accepted accounting principles consistently applied, and audited and certified by independent
    public accountants of recognized national or regional standing selected by the Company.

   

  (b)           Additional Financial Information. In
    addition to the annual audited financial statements described in Section 3.1(a), the Company will furnish to each Holder who owns at least 50,000 Shares and/or Conversion Stock (as presently constituted and subject to subsequent adjustments for stock
    splits, stock dividends, reverse stock splits, and the like):

   

  (i)              as soon as practicable after the end of the first,
    second and third quarterly accounting periods in each fiscal year of the Company, and in any event within forty-five (45) days after the end of the first, second, and third quarterly accounting periods in each fiscal year of the Company, (A) an
    unaudited consolidated balance sheet of the Company and its subsidiaries, if any, as of the end of each such quarterly period, (B) unaudited consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such period,
    prepared in accordance with U.S. generally accepted accounting principles consistently applied, subject to changes resulting from normal year-end audit adjustments and (C) an up-to-date table showing the Company’s capitalization;

  

  

  (ii)             as soon as practicable after the end of each
    month, and in any event within thirty (30) days after the end of such month, (A) an unaudited consolidated balance sheet of the Company and its subsidiaries, if any, as of the end of such month, and (B) unaudited consolidated statements of income and
    cash flows of the Company and its subsidiaries, if any, for such month, prepared in accordance with U.S. generally accepted accounting principles consistently applied, subject to changes resulting from normal year-end audit adjustments;

   

  (iii)            as soon as practicable, but in any event at least
    thirty (30) days prior to the end of each fiscal year, a capital and operating budget for the next fiscal year; and

   

  (iv)            such other information as may be determined by the
    board of directors of the Company at such times as may be determined by the board of directors of the Company.

   

  (c)           Inspection Rights. The Company will
    afford to each Holder who owns at least 50,000 Shares and/or Conversion Stock (as presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like), reasonable access during normal
    business hours and with reasonable advance notification to the Company, to the Company’s facilities, books and records and personnel. Holders may exercise their rights under this Section 3.1(c) only for purposes reasonably related to their interests
    under this Agreement and related agreements. The rights granted pursuant to this Section 3.1(c) may not be assigned or otherwise conveyed by the Holders or by any subsequent transferee of any such rights without the prior written consent of the
    Company.

   

   

  
    15.

    
      
 

  

  

  3.2          Confidentiality. Anything in this Agreement to
    the contrary notwithstanding, no Holder by reason of this Agreement shall have access to any trade secrets or classified information of the Company. The Company shall not be required to comply with any information rights of Section 3 in respect of any
    Holder whom the Company reasonably determines to be a competitor or an officer, employee, director or holder of more than ten percent (10%) of a competitor. Each Holder acknowledges that the information received by such Holder pursuant to this
    Agreement may be confidential and for its use only, and agrees that it will not use such confidential information in violation of the Exchange Act or reproduce, disclose or disseminate such information to any other person (other than its employees or
    agents having a need to know the contents of such information, and its attorneys), except in connection with the exercise of rights under this Agreement, unless the Company has made such information available to the public generally or such Holder is
    required to disclose such information by a governmental authority; provided, however, that a Holder may disclose confidential information to any existing or prospective affiliate, partner, member, stockholder or other wholly owned subsidiary
    of such Holder in the ordinary course of business, provided that such Holder informs such person or entity that such information is confidential and such person or entity is obligated to maintain the confidentiality of such information.

   

  3.3           Termination of Covenants. The covenants set
    forth in this Section 3 shall terminate upon and be of no further force and effect after the earliest to occur of: (a) the closing of the Company’s Initial Public Offering; (b) the consummation of a Liquidation Event or Deemed Liquidation Event; and
    (c) the Reporting Date.

   

  

  SECTION 4.

    

    RIGHT OF FIRST REFUSAL

   

  4.1          Right of First Refusal to Significant Holders.
    The Company hereby grants to each Holder who owns at least 10,000 Shares or Conversion Stock (as presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits and the like) (the “Significant
    Holders”), the right of first refusal to purchase its pro rata share of New Securities (as defined in this Section 4.1(a)) which the Company may, from time to time, propose to sell and issue after the date of this Agreement. A Significant Holder’s pro
    rata share, for purposes of this right of first refusal, is equal to the ratio of (a) the number of shares of Preferred Stock owned by such Significant Holder immediately prior to the issuance of New Securities (assuming full conversion or exercise of
    all outstanding convertible securities, rights, options and warrants for Preferred Stock held by said Significant Holder) to (b) the total number of shares of Preferred Stock outstanding immediately prior to the issuance of New Securities (assuming
    full conversion or exercise of all outstanding convertible securities, rights, options and warrants for Preferred Stock). Each Significant Holder shall have a right of over-allotment such that if any Significant Holder fails to exercise its right
    hereunder to purchase its pro rata share of New Securities, the other Significant Holders may purchase the non-purchasing Significant Holder’s portion on a pro rata basis. This right of first refusal shall be subject to the following provisions:

   

  (a)            “New Securities” shall mean any capital
    stock (including Common Stock and/or Preferred Stock) of the Company whether now authorized or not, and rights, convertible securities, options or warrants to purchase such capital stock, and securities of any type whatsoever that are, or may become,
    exercisable or convertible into capital stock; provided that the term “New Securities” does not include:

   

  (i)             the Conversion Stock and the Series F Preferred
    Stock issued and sold pursuant to Section 2.2 of the Purchase Agreement, as amended from time to time, and the Conversion Stock to be issued and sold pursuant to that certain Second Series F Preferred Stock and Warrant Purchase Agreement dated as of
    January 12, 2018 (the “Second Purchase Agreement”), including any such shares issued pursuant to the exercise of Series F Warrants (as defined in the Second Purchase Agreement);

   

  
    16.

    
      
 

  

   

  (ii)            securities issued or issuable to officers,
    employees, directors, consultants, placement agents, and other service providers of the Company (or any subsidiary) pursuant to stock grants, option plans, purchase plans, warrants, agreements or other employee stock incentive programs or arrangements
    approved by the board of directors of the Company (including a majority of the Preferred Directors then in office);

   

  (iii)           securities issued or issuable upon the exercise,
    exchange, adjustment or conversion of any convertible or exercisable securities outstanding as of this date of this Agreement;

   

  (iv)           securities issued upon the conversion of the Note or
    the exercise of the Warrants pursuant to the terms of the Note Purchase Agreement;

   

  (v)            securities issued or issuable upon the Second
    Closing (as defined in the Note Purchase Agreement);

   

  (vi)           securities issued or issuable as a dividend or
    distribution on Preferred Stock of the Company or pursuant to any event for which adjustment is made pursuant to paragraph 3.4(e), 3.4(f) or 3.4(g) of the Certificate of Incorporation;

   

  (vii)          securities offered or issued pursuant to a bona
    fide, firm commitment underwritten public offering pursuant to a registration statement filed under the Securities Act;

   

  (viii)        securities issued or issuable pursuant to the
    acquisition of another corporation by the Company by merger, purchase of substantially all of the assets or other reorganization or to a joint venture agreement, provided, that such issuances are approved by the board of directors of the
    Company (including a majority of the Preferred Directors then in office);

   

  

  (ix)            securities issued or issuable to banks, equipment
    lessors or other financial institutions pursuant to a commercial leasing or debt financing transaction approved by the board of directors of the Company (including a majority of the Preferred Directors then in office);

   

  (x)            securities issued or issuable in connection with
    sponsored research, collaboration, technology license, development, OEM, marketing or other similar agreements or strategic partnerships approved by the board of directors of the Company (including a majority of the Preferred Directors then in office);

   

  (xi)            securities of the Company which are otherwise
    excluded by the affirmative vote or consent of the holders of a majority of the shares of Preferred Stock of the Company then outstanding (voting together as a single class and not as separate series, and on an as-converted basis, and including both
    (A) the holders of a majority of the then-outstanding shares of Series F Preferred Stock and Series E Preferred Stock (voting together as a single class and not as separate series, and on an as-converted basis) and (B) each of the Major Investors); and

   

  (xii)           any right, option or warrant to acquire any
    security convertible into the securities excluded from the definition of New Securities pursuant to subsections (i) through (x) above.

   

   

  
    17.

    
      
 

  

   

  (b)           In the event the Company proposes to undertake an
    issuance of New Securities, it shall give each Significant Holder written notice of its intention, describing the type of New Securities, and their price and the general terms upon which the Company proposes to issue the same. Each Significant Holder
    shall have twenty (20) days after any such notice is mailed or delivered to agree to purchase such Holder’s pro rata share of such New Securities and to indicate whether such Significant Holder desires to exercise its over-allotment option, for
    the price and upon the terms specified in the notice by giving written notice to the Company, in substantially the form attached as Schedule 1, and stating therein the quantity of New Securities to be purchased.

   

  (c)           In the event the Significant Holders fail to exercise
    fully the right of first refusal and over-allotment right, if any, within said twenty (20) day period (the “Election Period”), the Company shall have ninety (90) days thereafter to sell or enter into an agreement (pursuant to which the
    sale of New Securities covered thereby shall be closed, if at all, within ninety (90) days from the date of said agreement) to sell that portion of the New Securities with respect to which the Significant Holders’ right of first refusal option set
    forth in this Section 4.1 was not exercised, at a price and upon terms no more favorable to the purchasers thereof than specified in the Company’s notice to Significant Holders delivered pursuant to Section 4.1(b). In the event the Company has not sold
    within such ninety (90) day period following the Election Period, or such ninety (90) day period following the date of said agreement, the Company shall not thereafter issue or sell any New Securities, without first again offering such securities to
    the Significant Holders in the manner provided in this Section 4.1.

   

  4.2          Assignment of Rights/Termination of Covenants.
    Each Significant Holder shall be entitled to assign its rights under this Section 4 to: (i) any affiliate of such Holder, (ii) any immediate family member of such Holder, and (iii) any trust for the benefit of such Holder or one or more of such
    Holder’s immediate family members. The covenants set forth in this Section 4 shall terminate upon and be of no further force and effect after the earliest to occur of: (a) the closing of the Company’s Initial Public Offering and (b) the consummation of
    a Liquidation Event or Deemed Liquidation Event.

   

  SECTION 5.

    

    BOARD OF DIRECTORS AND STOCKHOLDERS MATTERS

   

  5.1          Board Meetings. Meetings of the board of
    directors of the Company shall take place at least five times per calendar year, unless otherwise agreed by a vote of the majority of the directors, including the approval of a majority of the Preferred Directors.

   

  5.2          Directors and Officers Insurance. The Company
    shall maintain a policy or policies of directors and officers liability insurance providing for at least $5,000,000 in coverage on terms and conditions reasonably acceptable to a majority of the board of directors of the Company (including the approval
    of a majority of the Preferred Directors). In the event the Company merges with another entity and is not the surviving corporation proper provisions shall be made so that successors of the Company assume Company’s obligations with respect to
    indemnification of directors. In the event the Company transfers all of its assets, proper provisions shall be made for continued indemnification of directors.

   

  5.3          Matters Requiring Board Approval. So long as
    any shares of the Company’s Preferred Stock remain outstanding, the Company shall not, without first obtaining the approval of the board of directors of the Company:

   

  (a)           make any loan or advance to, or own any stock or other
    securities of, any subsidiary or other corporation, partnership, or other entity unless it is wholly owned by the Company;

   

  
    18.

    
      
 

  

  

   

  (b)           make any loan or advance to any person, including, any
    employee or director, except advances and similar expenditures in the ordinary course of business or under the terms of an employee stock or option plan approved by the board of directors of the Company;

   

  (c)           guarantee any indebtedness except for trade accounts of
    the Company or any subsidiary arising in the ordinary course of business;

   

  (d)           make any investment other than investments in prime
    commercial paper, money market funds, certificates of deposit in any United States bank having a net worth in excess of $100,000,000 or obligations issued or guaranteed by the United States of America, in each case having a maturity not in excess of
    two years;

   

  (e)           incur any aggregate indebtedness in excess of $100,000
    that is not already included in a budget approved by the board of directors of the Company, other than trade credit incurred in the ordinary course of business;

   

  (f)            enter into or be a party to any transaction with any
    director, officer or employee of the Company or any “associate” (as defined in Rule 12b-2 promulgated under the Exchange Act) of any such person;

   

  (g)           change the principal business of the Company, enter new
    lines of business, or exit the current line of business;

   

  (h)           sell, transfer, license as licensor, pledge or encumber
    technology or intellectual property, other than licenses granted in the ordinary course of business;

   

  (i)            make any capital expenditure in excess of $150,000
    (individually, or in the aggregate, for a series of related capital expenditures);

   

  

  (j)            commit the Company to enter into a joint venture,
    license agreement, or exclusive marketing or other distribution agreement with respect to the Company’s products; or

   

  (k)           hire, fire, or change the compensation of the executive
    officers, including approving options plans or grants.

   

  5.4          Matters Requiring Approval by the Major Investors.
    So long as any shares of Series F Preferred Stock or Series E Preferred Stock remain outstanding:

   

  (a)           in addition to any other stockholder approval required
    by the Certificate of Incorporation or applicable law, the Company shall not, without first obtaining the approval of each of the Major Investors:

   

  (i)            effect or consent to any Liquidation Event (as
    defined in the Certificate of Incorporation), unless such Liquidation Event would constitute a Threshold Event;

   

  (ii)           effect or consent to any Deemed Liquidation Event
    (as defined in the Certificate of Incorporation), unless such Deemed Liquidation Event would constitute a Threshold Event;

   

  (iii)           change the Company’s principal line or lines of
    business;

   

  (iv)           amend the Company’s existing stock option plan or
    approve any new equity incentive plan;

   

   

  
    19.

    
      
 

  

  

  (v)            effect a redemption pursuant to Article III, Section
    3.7 of the Certificate of Incorporation;

   

  (vi)           shorten or waive the notice provisions set forth in
    Article III, Section 3.4(h) of the Certificate of Incorporation;

   

  (vii)          authorize any offering of the Company’s Common Stock
    to the public unless the price of the Common Stock in such public offering is at least $16.0215 per share (as adjusted for any stock splits, stock dividends, combinations, subdivisions, recapitalizations or the like and before deduction of
    underwriters’ commissions and expenses); or

   

  (viii)         permit or agree to do any of the foregoing.

   

  (b)           In addition to any other stockholder approval required
    by the Certificate of Incorporation or applicable law, the Company shall not, without first obtaining the approval of a majority of the Major Investors, create or authorize the creation of or issue or obligate itself to issue shares of, any other
    security convertible into or exercisable for any equity security, having rights, preferences or privileges senior to or on parity with the Series F Preferred Stock, Series E-1 Preferred Stock, Series E-2 Preferred Stock, Series E-3 Preferred Stock or
    Series E-2A Preferred Stock.

   

  (c)           In addition to any other stockholder approval required
    by the Certificate of Incorporation of applicable law, the treatment of any particular transaction or series of related transactions as a Deemed Liquidation Event (as defined in the Certificate of Incorporation) may not be waived without the vote or
    written consent of each of the Major Investors.

   

  (d)          In addition to any other stockholder approval required
    by the Certificate of Incorporation of applicable law, the Automatic Conversion Event described in Section 3.4(b) (ii) of the Certificate of Incorporation shall require the written request of each of the Major Investors.

   

  (e)          So long as any shares of Series F Preferred Stock remain
    outstanding, in addition to any other stockholder approval required by the Certificate of Incorporation or applicable law, the Company shall not, without first obtaining the approval of each of the Major Investors that hold shares of Series F Preferred
    Stock:

   

  (i)             reclassify, alter or amend any existing security
    that is junior to or on parity with the Series F Preferred Stock, if such reclassification, alteration or amendment would render such other security senior to or on parity with the Series F Preferred Stock; or

   

  (ii)            amend or waive any of the rights, preferences or
    privileges of the Series F Preferred Stock in the Certificate of Incorporation so as to adversely affect the Series F Preferred Stock; provided that the creation or authorization of one or more new series of Preferred Stock that is senior to or
    pari passu with the Series F Preferred Stock with respect to the distribution of assets on the liquidation, dissolution or winding up of the Company, the payment of dividends and/or rights of redemption shall not be deemed to adversely affect the
    Series F Preferred Stock.

   

  
    20.

    
      
 

  

  (f)           So long as any shares of Series E Preferred Stock remain
    outstanding, in addition to any other stockholder approval required by the Certificate of Incorporation or applicable law, the Company shall not, without first obtaining the approval of each of the Major Investors that hold shares of Series E Preferred
    Stock:

   

  (i)             reclassify, alter or amend any existing security
    that is junior to or on parity with the Series E-1 Preferred Stock, Series E-2 Preferred Stock, Series E-3 Preferred Stock or Series E-2A Preferred Stock, if such reclassification, alteration or amendment would render such other security senior to or
    on parity with any such series of Preferred Stock; or

   

  (ii)            amend or waive any of the rights, preferences or
    privileges of the Series E Preferred Stock in the Certificate of Incorporation so as to adversely affect the Series E Preferred Stock; provided that the creation or authorization of one or more new series of Preferred Stock that is senior to or
    pari passu with the Series E Preferred Stock with respect to the distribution of assets on the liquidation, dissolution or winding up of the Company, the payment of dividends and/or rights of redemption shall not be deemed to adversely affect
    the Series E Preferred Stock.

   

  5.5          FCPA. The Company represents that it shall not
    (and shall not permit any of its subsidiaries or affiliates or any of its or their respective directors, officers, managers, employees, independent contractors, representatives or agents acting on behalf of the Company to) promise, authorize or make
    any payment to, or otherwise contribute any item of value to, directly or indirectly, any third party, including any Non-U.S. Official (as such term is defined in the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”)),
    in each case, in violation of the FCPA, the U.K. Bribery Act, or any other applicable anti-bribery or anti-corruption law. The Company further represents that it shall (and shall cause each of its subsidiaries and affiliates to) cease all of its or
    their respective activities, as well as remediate any actions taken by the Company, its subsidiaries or affiliates, or any of their respective directors, officers, managers, employees, independent contractors, representatives or agents acting on behalf
    of the Company in violation of the FCPA, the U.K. Bribery Act, or any other applicable anti-bribery or anti-corruption law. The Company further represents that it shall (and shall cause each of its subsidiaries and affiliates to) maintain systems of
    internal controls (including, but not limited to, accounting systems, purchasing systems and billing systems) to ensure compliance with the FCPA, the U.K. Bribery Act, or any other applicable anti-bribery or anti-corruption law. Upon request, the
    Company agrees to provide responsive information and/or certifications concerning its compliance with applicable anti-corruption laws. The Company shall promptly notify each Investor if the Company becomes aware of any enforcement action against the
    Company related to the FCPA or any other anti-corruption law. The Company shall, and shall cause any direct or indirect subsidiary or entity controlled by it, whether now in existence or formed in the future, to comply with the FCPA. The Company shall
    use its commercially reasonable efforts to cause any direct or indirect subsidiary, whether now in existence or formed in the future, to comply in all material respects with all applicable laws.

   

  5.6          Termination of Covenants. The covenants set
    forth in this Section 5 shall terminate upon and be of no further force and effect after the earliest to occur of: (a) the closing of the Company’s Initial Public Offering and (b) the consummation of a Liquidation Event or Deemed Liquidation Event.

   

  SECTION 6.

    

    EMPLOYEE MATTERS

   

  6.1          Employee Proprietary Information Agreements.
    Each current and former employee and consultant with access to Company confidential information/trade secrets will enter into a non-disclosure and proprietary rights assignment agreement in a form reasonably acceptable to the Investors.

   

  6.2          Key Person Insurance. The Company shall maintain
    a life insurance policy on the life of Derek Maetzold for so long as he remains an employee of the Company in an amount of at least $1,000,000 and otherwise satisfactory to the board of directors of the Company (including the approval of a majority of
    the Preferred Directors), with the proceeds of such policy payable to the Company.

   

  
    21.

    
      
 

  

   
  6.3          Employee Stock. Unless otherwise approved by
    the board of directors of the Company (including a majority of the Preferred Directors then in office), all future employees and consultants of the Company who purchase, receive options to purchase, or receive awards of shares of the Company’s capital
    stock after the date hereof shall be required to execute restricted stock or option agreements, as applicable, providing for (i) vesting of shares over a four (4) year period, with the first twenty-five percent (25%) of such shares vesting following
    twelve (12) months of continued employment or service, and the remaining shares vesting in equal monthly installments over the following thirty-six (36) months, and (ii) a market stand-off provision substantially similar to that in Section 2.10. In
    addition, unless otherwise approved by the board of directors of the Company (including a majority of the Preferred Directors then in office), the Company shall retain a “right of first refusal” on transfers of shares of the Company’s capital stock by
    all (i) future employees and consultants of the Company until the Company’s Initial Public Offering and shall have the right to repurchase unvested shares held by such employees or consultants at the lower of cost or fair market value upon termination
    of employment or services of such holder of restricted stock or shares issued upon exercise of options and (ii) existing employees of the Company until the Company’s Initial Public Offering and shall have the right to repurchase unvested shares held by
    such employees at cost upon termination of employment of such holder of restricted stock or shares issued upon exercise of options.

   

  6.4           Termination of Covenants. The covenants set
    forth in this Section 6 shall terminate upon and be of no further force and effect after the earliest to occur of: (a) the closing of the Company’s Initial Public Offering and (b) the consummation of a Liquidation Event or Deemed Liquidation Event.

   

  SECTION 7.

    

    MISCELLANEOUS

   

  7.1          Amendment. Except as expressly provided herein,
    neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument referencing this Agreement and signed by the Company and the Holders holding a majority of the Registrable Securities
    (excluding any of such shares that have been sold to the public or pursuant to Rule 144) and each of the Major Investors; provided, that Registrable Securities that are held by Stonebridge-Highland shall only be included in such calculation if the
    amendment or waiver relates to Section 2; and provided, further that neither Section 2, nor any term thereof, may be amended, waived, discharged or terminated, in each case, in any way that would adversely affect the rights of Stonebridge-Highland
    under Section 2 in a manner that is disproportionate to the rights of the other Holders under Section 2. Subject to the foregoing, any such amendment, waiver, discharge or termination effected in accordance with this paragraph shall be binding upon
    each Holder and each future holder of such securities of Holder. Each Holder acknowledges that by the operation of this paragraph, the Holders and Major Investors specified above will have the right and power to diminish or eliminate all rights of such
    Holder under this Agreement. By execution of this Agreement, the undersigned, on behalf of the undersigned and all Significant Holders, waive any rights of first refusal pursuant to Section 4 of the Prior Agreement, including any rights relating to
    notice thereof, with respect to the Company’s proposed offer and sale of Series F Preferred Stock and all shares of Common Stock issuable upon conversion of such Preferred Stock.

   

  7.2          Notices. All notices and other communications
    required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail, or otherwise delivered by hand, messenger or courier service addressed:

   

  (a)           if to an Investor, to the Investor’s address, facsimile
    number or electronic mail address as shown on Exhibit A hereto, as may be updated in accordance with the provisions hereof;

   

  (b)           if to any Holder, to such address, facsimile number or
    electronic mail address as shown in the Company’s records, or, until any such Holder so furnishes an address, facsimile number or electronic mail address to the Company, then to the address, facsimile number or electronic mail address of the last
    holder of such shares for which the Company has contact information in its records; or

   

  
    22.

    
      
 

  

   

  (c)           if to the Company, to the attention of the Chief
    Executive Officer of the Company at2014 San Miguel Drive, Friendswood, Texas 77546, or at such other address as the Company shall have furnished to the Holders, with a copy to Karen Deschaine, Cooley LLP, 4401 Eastgate Mall, San Diego, CA 92121.

   

  With respect to any notice given by the Company under any provision of the Delaware General Corporation Law, the Company’s Certificate of
    Incorporation or bylaws or this Agreement, each Holder agrees that such notice may be given by facsimile or by electronic mail.

   

  Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by
    hand, messenger or courier service, when delivered, or (ii) if sent by mail, upon its receipt, or (iii) if sent by facsimile or electronic mail, when sent, if sent during normal business hours of the recipient, and if not sent during normal business
    hours, then on the recipient’s next business day.

   

  7.3          Governing Law. This Agreement shall be governed
    in all respects by the internal laws of the State of Delaware as applied to agreements entered into among Delaware residents to be performed entirely within Delaware, without regard to principles of conflicts of law.

   

  7.4          Successors and Assigns. This Agreement shall
    inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

   

  7.5          Entire Agreement. This Agreement and the
    exhibits hereto amend and restate the Prior Agreement and constitute the full and entire understanding and agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings between or among any
    of the parties with respect to the subject matter hereof, including, without limitation, the Prior Agreement. No party hereto shall be liable or bound to any other party in any manner with regard to the subjects hereof or thereof by any warranties,
    representations or covenants except as specifically set forth herein.

   

    

  7.6          Delays or Omissions. Except as expressly
    provided herein, no delay or omission to exercise any right, power or remedy accruing to any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right, power or remedy of such non-defaulting
    party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any
    other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party 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 or by law or otherwise afforded to any party to this Agreement,
    shall be cumulative and not alternative.

   

  7.7          Severability. If any provision of this
    Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement, and such court
    will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable
    provision. The balance of this Agreement shall be enforceable in accordance with its terms.

   

  
    23.

    
      
 

  

  
   

  7.8           Titles and Subtitles. The titles and subtitles
    used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs and exhibits shall, unless otherwise provided, refer to sections
    and paragraphs hereof and exhibits attached hereto.

   

  7.9          Counterparts. This Agreement may be executed in
    any number of counterparts, each of which shall be enforceable against the parties that execute such counterparts, and all of which together shall constitute one instrument.

   

  7.10        Telecopy Execution and Delivery. A facsimile,
    telecopy or other reproduction of this Agreement may be executed by one or more parties hereto and delivered by such party by facsimile or any similar electronic transmission device pursuant to which the signature of or on behalf of such party can be
    seen. Such execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute and deliver an original of this Agreement as well as any facsimile, telecopy or
    other reproduction hereof.

   

  7.11        Further Assurances. Each party hereto agrees to
    execute and deliver, by the proper exercise of its corporate, limited liability company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully
    effectuate this Agreement.

   

  7.12        Aggregation of Stock. All securities held or
    acquired by affiliated entities (including affiliated venture capital funds) or persons shall be aggregated together for purposes of determining the availability of any rights under this Agreement.

   

  7.13        Additional Investors.  Notwithstanding anything
    to the contrary contained herein, any purchaser of Series F Preferred Stock pursuant to the Purchase Agreement, as amended from time to time, or pursuant to the Second Purchase Agreement may become a party to this Agreement by executing and delivering
    a counterpart signature page to this Agreement and shall be deemed an “Investor” and a party hereunder, without the need for an amendment of any of this Agreement except to add each such purchaser’s name to Exhibit A hereto, and such purchaser shall
    thereafter have the rights and obligations hereunder.”

   

  (signature pages follow)

   

  
    24.

    
      
 

  

  

  

  

  The parties hereto are signing this Sixth Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

   

  
    	 	CASTLE BIOSCIENCES, INC.
	 	a Delaware corporation
	 	 	 
	 	 	 
	 	By:	/s/ Derek Maetzold
	 	 	Derek Maetzold
	 	 	President and Chief Executive Officer

  

   

   

   

  
    
      
 

  

  The parties hereto are signing this Sixth Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

   

  
    	 	INVESTOR:
	 	 	 
	 	
            Industry Ventures Healthcare LLC

          
	 	 	 
	 	By:	/s/ Victor Hwang
	 	 	 
	 	Name:	Victor Hwang
	 	 	 
	 	Title:	Member

  

   

   

  
    
      
 

  

  The parties hereto are signing this Sixth Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause. 

   

   

   

   

  
    	 	INVESTOR:
	 	 	 
	 	Sofinnova HealthQuest Partners, L.P.
	 	 	 
	 	By: Healthquest Venture Management, L.L.C.,
	 	its General Partner
	 	 	 
	 	By:	/s/ Garheng Kong
	 	 	 
	 	Name:	Garheng Kong
	 	 	 
	 	Title:	Managing Member

  

   

   

   

  
    
      
 

  

  The parties hereto are signing this Sixth Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

   

  

   

  

   

   

  
    	 	INVESTORS:
	 	 	 
	 	MGC Venture Partners 2013, L.P.
	 	 	 
	 	By: MGC Venture Partners 2013 GP, LLC,
	 	its General Partner
	 	 	 
	 	By:	/s/ Joseph C. Cook III
	 	 	 
	 	Name:	Joseph C. Cook III
	 	 	 
	 	Title:	Managing Member
	 	 	 
	 	 /s/ Joseph C. Cook III
	 	 Joseph C. Cook III

  

   

  
  
 

  
    
      
 

  

  The parties hereto are signing this Sixth Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

   

  
    	 	INVESTOR:
	 	 
	 	/s/ Derek Maetzold
	 	Derek Maetzold

  

   

   

  
    
      
 

  

  The parties hereto are signing this Sixth Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

   

  
    	 	INVESTOR:
	 	 	 
	 	BioBrit, LLC
	 	 	 
	 	By:	/s/ Daniel M. Bradbury
	 	 	 
	 	Name:	Daniel M. Bradbury
	 	 	 
	 	Title:	Managing Member

  

   

   

   

  
    
      
 

  

  The parties hereto are signing this Sixth Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

   

  
    	 	INVESTOR:
	 	 	 
	 	Bonnie H. Anderson Living Trust
	 	 	 
	 	By:	/s/ Bonnie H. Anderson
	 	 	 
	 	Name:	Bonnie H. Anderson
	 	 	 
	 	Title:	Trustee

  

   

   

   

  
    
      
 

  

  The parties hereto are signing this Sixth Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

   

  
    	 	INVESTOR:
	 	 	 
	 	SH Castle Biosciences, LLC 
	 	 	 
	 	By:	/s/ James Dondero
	 	 	Name: James Dondero
	 	 	Title: Authorized Signatory

  

   

   

   

  
    
      
 

  

  EXHIBIT A

   

  SCHEDULE OF INVESTORS

   

  Industry Ventures Healthcare, LLC

    30 Hotaling Place, Ste. 300

    San Francisco, CA 94111

   

  Sofinnova HealthQuest Partners, L.P.

    c/o HealthQuest Capital Management Company, LLC  

  1301 Shoreway Rodd,  

  Suite 350  

  Belmont, CA 94002

   

  MGC Venture Partners 2013, L.P.

    3835 Cleghorn Ave., Ste. 300

    Nashville, TN 37215

   

  BioBrit, LLC

   

  Steven D. Singleton

   

  MGC Castle, LLC

    3835 Cleghorn Ave., Ste. 300

    Nashville, TN 37215

   

  Longfellow Venture Partners I, LLC

    P.O. Box 380199

    Cambridge, MA 02238

   

  Kolterman Family Trust

   

  Spindletop Healthcare Capital, L.P.  

  3571 Far West Blvd., PMB 108  

  Austin, Texas 78731

   

  Spindletop Healthcare Investors II, LLC  

  3571 Far West Blvd., PMB 108  

  Austin, Texas 78731

   

  Spindletop Capital Management LLC  

  3571 Far West Blvd., PMB 108  

  Austin, Texas 78731

   

  Byron W. Smith

   

  Farview Management Co. L.P.

    3835 Cleghorn Ave., Ste. 300

    Nashville, TN 37215

   

  
    
      
 

  

  Exhibit A - Continued

   

   

  Derek J. Maetzold

   

  Joe Cook, Jr.

   

  Joseph C. Cook, III

   

  Jumbo Sign Limited

    Post Office Box 23291

    Wanchai Post Office

    Hong Kong

   

  Alma Life Sciences, LLC

    8540 Avenida De Las Ondas

    La Jolla, CA 92037

   

  Vaughn D. Bryson

   

  Trisha Poteet

   

  Daniel G. Crockett

    c/o Todd Glisson

    Covenant Partners, LLC

   

  David L. Mahoney and Winnifred C. Ellis 1998 Family Trust

   

  James and Pamela Wilson Trust

   

  Wilson Family Partners

   

  Tobin W. Juvenal and Susan Juvenal

   

  Andy Sassine

   

  Bonnie H. Anderson Living Trust

   

  Jamie L. Dingley

   

  Gregory J. Lausier

   

  Beth A. Smith

   

  John B. Juvenal and Leanne Juvenal Revocable Trust

   

  Susan Mary Seery Revocable Trust

   

  Thomas P. Sullivan

   

  Brian Eliot Peierls

   

  E. Jeffrey Peierls

   

  
    
      
 

  

  Exhibit A - Continued

   

  The Peierls Bypass Trust

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  UD E.F. Peierls for Brian E. Peierls  

  c/o The Northern Trust Company of Delaware 1313 N.

  Market Street, Suite 5300  

  Wilmington, DE 19801

   

  UD E.F. Peierls for E. Jeffrey Peierls  

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  UD E.S. Peierls for E.F. Peierls et al  

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  UD Ethel F. Peierls Charitable Lead Trust  

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  UD J.N. Peierls for Brian Eliot Peierls  

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  UD J.N. Peierls for E. Jeffrey Peierls  

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  UW E.S. Peierls for Brian E. Peierls - Accumulation  

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  UW E.S. Peierls for E. Jeffrey Peierls - Accumulation

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  UW J.N. Peierls for Brian E. Peierls  

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  
    
      
 

  

  Exhibit A - Continued

   

  UW J.N. Peierls for E. Jeffrey Peierls  

  c/o The Northern Trust Company of Delaware  

  1313 N. Market Street, Suite 5300  

  Wilmington, DE 19801

   

  The Peierls Foundation, Inc.  

  73 South Holman Way  

  Golden, CO 80401

   

  Gore Range Capital Venture 1 LLC  

  2121 N. Frontage Rd. West #253  

  Vail, CO 81657

   

  Pelmea Limited Partnership

    P.O. Box 380199

    Cambridge, MA 02238

   

  Pensco Trust Company LLC CUST FBO Alice Bahner Izzo

  IRA Izzo  

  Pensco Trust Company LLC  

  P.O. Box 173859  

  Denver, CO 80217

   

  Bahner Izzo Family Trust  

  Paul Izzo and Alice Bahner Izzo, Trustees  

  c/o Julie Pitpit  

  UBS Financial Services Inc.  

  1200 Prospect Street, Suite 500  

  La Jolla, CA 92037

   

  JATEM Blue, LLC  

  One South Ocean Boulevard, Suite 306  

  Boca Raton, FL 33432  

  Attn: Edward Mullen

   

  The Abigail A. Smith Gift Trust u/a/d/ November 29, 2007

   

  The Andrew A. Smith Gift Trust u/a/d/ November 29, 2007

   

  The Colin W. Smith Gift Trust u/a/d/ November 29, 2007

   

  Clare Johnson

   

  Chris Otte

   

  Chancie Hall

   

  James Braxton

   

  Carol Shumate

   

  
    
      
 

  

  Exhibit A - Continued

   

  Jan Matchus

   

  Matt Falk

   

  Mike Abbott

   

  John Abbott

   

  Jack Abbott

   

  Tyler Whitmore

   

  Bradford Todd Whitmore

   

  Bernhard Spiess

   

  Mara G. Aspinall

   

  Patrick M. Hall

   

  SH Castle Biosciences, LLC  

  c/o Highland Capital Management, L.P. 300 Crescent Ct.

  Suite 700  

  Dallas, TX 75201  

  ATTN: Frederic Chang    

  
    
      
 

  

  SCHEDULE 1

   

  NOTICE AND WAIVER/ELECTION OF

    RIGHT OF FIRST REFUSAL

   

  I do hereby waive or exercise, as indicated below, my rights of first refusal under the Sixth Amended and Restated Investors’ Rights Agreement
    dated as of July 3, 2019 (the “Agreement”):

   

  1.            Waiver of twenty (20) days’ notice period in which to exercise right of first refusal: (please check only one)

   

  		(  )	WAIVE in full, on behalf of all Holders, the twenty (20) day notice period provided to exercise my right of first refusal granted under the Agreement.

   

  		(  )	DO NOT WAIVE the notice period described above.

   

  2.            Issuance and Sale of New Securities: (please check only one)

   

  		(  )	WAIVE in full the right of first refusal granted under the Agreement with respect to the issuance of the New Securities.

   

  		(  )	ELECT TO PARTICIPATE in $_________ (please provide amount) in New Securities proposed to be issued by Castle Biosciences, Inc., a Delaware corporation, representing LESS than my pro rata portion of the
          aggregate of $[____________] in New Securities being offered in the financing.

   

  		(  )	ELECT TO PARTICIPATE in $_________ in New Securities proposed to be issued by Castle Biosciences, Inc., a Delaware corporation, representing my FULL pro rata portion of the aggregate of $[____________]
          in New Securities being offered in the financing.

   

  		(  )	ELECT TO PARTICIPATE in my full pro rata portion of the aggregate of $[____________] in New Securities being made available in the financing AND, to the extent available, the greater of (x) an additional
          $_________ (please provide amount) or (y) my pro rata portion of any remaining investment amount available in the event other Significant Holders do not exercise their full rights of first refusal with respect to the
          $[____________] in New Securities being offered in the financing.

   

  
    	Date:	 	 	 
	 	 	 	(Print investor name)
	 	 	 	 
	 	 	 	(Signature)
	 	 	 	 
	 	 	 	(Print name of signatory, if signing for an entity)
	 	 	 	 
	 	 	 	(Print title of signatory, if signing for an entity)

  

   

  

   

  

  This is neither a commitment to purchase nor a commitment to issue the New Securities described above. Such issuance can only be made by
    way of definitive documentation related to such issuance. The company will supply you with such definitive documentation upon request or if you indicate that you would like to exercise your first offer rights in whole or in part.Exhibit 4.9

    

    

    THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER APPLICABLE STATE
      SECURITIES LAWS AND HAVE BEEN TAKEN FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION THEREOF. THE SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION AND
      QUALIFICATION WITHOUT, EXCEPT UNDER CERTAIN SPECIFIC LIMITED CIRCUMSTANCES, AN OPINION OF COUNSEL FOR THE HOLDER OF THIS WARRANT, CONCURRED IN BY COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED.

    

    

    July 12, 2019

    

    

    WARRANT

    

    

    TO PURCHASE SHARES OF COMMON STOCK OF

    CASTLE BIOSCIENCES, INC.

    

    

    THIS CERTIFIES that, for value received, SH Castle Biosciences, LLC, a Delaware limited liability company (the “Investor”), is entitled, upon the terms and subject to the conditions hereinafter set forth, on or prior to the close of business on the seventh (7th) anniversary of the date hereof (the “Expiration Date”), but not thereafter, to subscribe
      for and purchase, from CASTLE BIOSCIENCES, INC., a Delaware corporation (the “Company”), 209,243 shares of the Company’s Common Stock (the “Shares”) at a purchase price of $0.001219 per share (the “Exercise Price”). The Exercise
      Price and the number of Shares for which this Warrant is exercisable shall be subject to adjustment as provided herein. This Warrant is issued pursuant to that certain Note Purchase Agreement of even date herewith by and among the Company and the
      Investor (as may be amended from time to time, the “Purchase Agreement”).  Capitalized terms not defined in this Warrant have the meaning given to
      them in the Purchase Agreement

    

    

    Title of Warrant. Prior to the expiration hereof and subject to compliance with applicable laws, this Warrant and all rights hereunder are
      transferable, in whole or in part, at the office or agency of the Company by the registered holder of this Warrant (the “Holder”) in person or by
      duly authorized attorney, upon surrender of this Warrant together with the Assignment Form annexed hereto properly endorsed.

    

    

    1.          Exercise of Warrant.

    

    

    (a)          This Warrant shall initially be exercisable for 104,622
        Shares.  With respect to the remaining 104,621 Shares (the “Additional Warrant Shares”), this Warrant shall only be exercisable from time to time for an aggregate maximum number of
        Additional Warrant Shares that is equal to the product of (i) 104,621 Shares multiplied by (ii) a fraction, (1) the numerator of which is the aggregate dollar amount of securities purchased by the Holder directly from the Company or through a
        placement agent or underwriter engaged by the Company for the primary issuance of equity securities of the Company, up to a maximum of $10,000,000 (excluding the dollar amount of securities purchased by the Holder in the First Closing), and (2) the
        denominator of which is $10,000,000.

    

    

    (b)          Subject to the limitation on exercise in Section 1(a)
        above, the purchase rights represented by this Warrant are exercisable by the Holder, in whole or in part, before close of business on the Expiration Date, by the surrender of the following to the Company at its office located in Friendswood, Texas
        (or such other office or agency of the Company as it may designate by notice in writing to the Holder):

    

    

    (i)          this Warrant;

    

    

    (ii)          an executed copy of the Notice of
        Exercise annexed hereto; and

    
      Page 1

      
        

    

    

    

    (iii)          payment of the Exercise Price (by cash
        or by check or bank draft payable to the order of the Company or by cancellation of indebtedness of the Company to the Holder, if any, at the time of exercise in an amount equal to the aggregate Exercise Price of the Shares thereby purchased).

    

    

    (c)          Upon the proper exercise of this Warrant, the Holder shall
        be entitled to receive a certificate for the number of Shares so purchased. The Company agrees that if at the time of the surrender of this Warrant and purchase the Holder shall be entitled to exercise this Warrant, the Shares so purchased shall be
        and be deemed to be issued to such holder as the record owner of such Shares as of the close of business on the date on which this Warrant shall have been exercised as aforesaid.

    

    

    (d)          Certificates for the Shares purchased hereunder shall be
        delivered to the Holder within a reasonable time after the date on which this Warrant shall have been exercised as aforesaid.

    

    

    (e)          The Company covenants that the Shares which may be issued
        upon the exercise of rights represented by this Warrant will, upon exercise of the rights represented by this Warrant, be fully paid and nonassessable and free from all taxes, liens and charges in respect of the issue thereof.

    

    

    (f)          The Company shall not effect any exercise of this Warrant,
        and the Holder shall not have the right to exercise any portion of this Warrant, to the extent that, after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
        Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of
        the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of the Company’s Common Stock (the “Common Stock”) beneficially owned
        by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of
        Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or
        nonconverted portion of any other securities of the Company (including, without limitation, any other  Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by
        the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 1(f), beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act
        of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that
        such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.  To the extent that the limitation contained in this Section 1(f) applies,
        the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion
        of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution
        Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.   In addition, a
        determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 1(f), in determining the number
        of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent
        public announcement by the Company or (C) a more recent written notice by the Company or the company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall
        within one (1) business day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion
        or exercise of securities of the Company, including this Warrant, held by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this
        Warrant.  The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 1(f) and the provisions of this Section 1(f) shall continue to apply.  Any increase in the Beneficial
        Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this paragraph shall be construed and
        implemented in a manner otherwise than in strict conformity with the terms of this Section 1(f) to the extent necessary to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
        Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.  The limitations contained in this paragraph shall apply to a successor holder of this Warrant.  For purposes of this
        Section 1(f), (i) “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as
        such terms are used in and construed under Rule 405 under the Securities Act of 1933, as amended and (ii) “Person” means an individual or corporation, partnership, trust, incorporated or
        unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

    
      Page 2

      
        

    

    

    

    2.          Net Exercise.  Notwithstanding any provisions herein to the contrary, if the fair  market value of one Share is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this
        Warrant by payment as specified in Section 1(b)(iii) hereof, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal
        office of the Company together with the properly endorsed copy of the Notice of Exercise annexed hereto in which event the Company shall issue to the Holder a number of Shares computed using the following formula:

    

    

    X =  Y*(A-B)

    

    

                A

    

    

    Where X - the number of Shares to be issued to the Holder

    

    

    
      
        	

              	Y =	
                the number of Shares purchasable under this Warrant or, if only a portion of this Warrant is being exercised, the portion of this Warrant being canceled (at the date of such
                  calculation)

              

      

    

    

    

    A =          the fair market value of one Share (at the date of such calculation)

    

    

    B =          Exercise Price (as adjusted to the date of such calculation)

    

    

    For purposes of the above calculation, the fair market value of one Share shall be determined by the Company’s Board of Directors in
      good faith; provided, however, that in the event that this Warrant is exercised pursuant to this Section 2 in connection with the initial public offering of the Company’s common stock, the fair market value
      per share shall be the product of (i) the per share offering price to the public of the initial public offering, and (ii) the number of shares of the Company’s Common Stock into which each Share is convertible at the time of such exercise.

    
      Page 3

      
        

    

    

    

    3.          No Fractional Shares.   No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. With respect to any fraction of a Share called for upon the exercise of this Warrant, an amount
        equal to such fraction multiplied by the Exercise Price shall be paid in cash to the Holder.

    

    

    4.          Charges, Taxes and Expenses.   Issuance of certificates for the Shares issued upon the exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance
        of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided,
          however, that in the event certificates for such Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by
        the Holder; and provided further, that upon any transfer involved in the issuance or delivery of any certificates for the Shares, the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax
        incidental thereto.

    

    

    5.          No Rights as Stockholders. 
        This Warrant does not entitle the Holder to any voting rights or other rights as a stockholder of the Company prior to the exercise thereof.

    

    

    6.          Exchange and Registry of Warrant.  This Warrant is exchangeable, upon the surrender hereof by the Holder at the above-mentioned office or agency of the Company, for a new Warrant of like tenor and dated as of such exchange.

    

    

    The Company shall maintain at the above-mentioned office or agency a registry showing the name and address of the Holder. This Warrant may be surrendered
      for exchange, transfer or exercise, in accordance with its terms, at such office or agency of the Company, and the Company shall be entitled to rely in all respects, prior to written notice to the contrary, upon such registry.

    

    

    7.          Loss, Theft. Destruction or Mutilation of
            Warrant.  Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in case of loss, theft or destruction, of
        indemnity or security reasonably satisfactory to it, and upon reimbursement to the Company of all reasonable expenses incidental thereto, and upon surrender and cancellation of this Warrant, if mutilated, the Company will make and deliver a new
        Warrant of like tenor and dated as of such cancellation, in lieu of this Warrant.

    

    

    8.          Saturdays, Sundays. Holidays. etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday or a Sunday or shall be a legal holiday, then such action may be taken or
        such right may be exercised on the next succeeding day not a legal holiday.

    

    

    9.          Early Termination and Dilution.

    

    

    (a)          Merger, Sale of Assets, etc. If at any time the
        Company proposes to consolidate with, merge with, sell or convey all or substantially all of its assets to any other corporation, or effect some other form of reorganization, then the Company shall give the Holder thirty (30) days’ notice of the
        proposed effective date of such transaction and if this Warrant has not been exercised by the effective date of such transaction this Warrant shall terminate on such date.

    
      Page 4

      
        

    

    

    

    (b)          Reclassification, etc. If the Company at any time
        shall, by subdivision, combination or reclassification of securities or otherwise, change any of the securities to which purchase rights under this Warrant exist into the same or a different number of securities of any class or classes, this
        Warrant shall thereafter be to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities which were subject to the purchase rights under this Warrant immediately prior to such
        subdivision, combination, reclassification or other change. If shares of the Company’s Common Stock (the “Common Stock”) are subdivided or combined
        into a greater or smaller number of shares of Common Stock, the Exercise Price shall be proportionately reduced in case of subdivision of shares or proportionately increased in the case of combination of shares, in both cases by the ratio which the
        total number of shares of Common  Stock to be outstanding immediately after such event bears to the total number of shares of Common Stock outstanding immediately prior to such event.

    

    

    (c)          Cash Distributions. No adjustment on account of cash
        dividends or interest on the Shares or other securities purchasable hereunder will be made to the Exercise Price.

    

    

    (d)          Authorized Shares. The Company covenants that during
        the period in which this Warrant is outstanding and exercisable, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Shares. The Company further covenants that its issuance
        of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Shares.

    

    

    10.          Miscellaneous.

    

    

    (a)          Issue Date. The provisions of this Warrant shall be
        construed and shall be given effect in all respects as if it had been issued and delivered by the Company on the date hereof. This Warrant shall be binding upon any successors or assigns of the Company. This Warrant shall be governed by and
        construed under the laws of the State of Delaware, without regard to the conflicts of laws provisions thereof.

    

    

    (b)          Restrictions. The Holder acknowledges that the
        Shares may be subject to transfer and sale restrictions imposed by state and federal securities laws. The Holder understands and agrees that all certificates evidencing the shares of stock issuable hereunder may bear the following legend:

    

    

    “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
      EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFORM.”

    

    

    (c)          Waivers and Amendments. This Warrant may be amended
        only with the written agreement of the Company and the Holder, and any provision may be waived by a party only in writing.

    

    

    (d)          Dispute Resolution. 
        The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Texas located in Dallas Texas and to the jurisdiction of the United States District Court for the Norther District of Texas for the purpose of
        any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Texas or the United States District Court for the Northern District of Texas, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not
        subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or
        proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

    
      Page 5

      
        

    

    

    

    WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
      OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
      SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES
      HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
      TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

    

    

    [Signature Page Follows]

    
      Page 6

      
        

    

    

    

    IN WITNESS WHEREOF, CASTLE BIOSCIENCES, INC. has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first set
      forth above.

    

    

    	 	
            CASTLE BIOSCIENCES, INC.

          	 
	 	 	 
	 	
            /s/ Derek J. Maetzold

          	 
	 	
            Name: Derek J. Maetzold

          	 
	 	
            Title: President and Chief Executive Officer

          	 

    

    

    
      
        

    

    

    

    IN WITNESS WHEREOF, the undersigned has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first set forth above.

    

    

    	 	
            SH Castle Biosciences, LLC

          	 
	 	 	 	 
	 	 By:	
            /s/ James Dondero

          	 
	 	 Name:	
            James Dondero

          	 
	 	 Title:	
            Authorized Signatory

          	 
	 	 	 	 
	 	
            Address:

          	 
	 	

          	 
	 	
            c/o Highland Capital Management, L.P.

          	 
	 	
            300 Crescent Ct. Suite 700

          	 
	 	
            Dallas, TX 75201

          	 
	 	
            ATTN: Frederic Chang

          	 
	 	
            (972) 628-4163

          	 

    
      
        

    

    

    

    NOTICE OF EXERCISE

    

    

    To:          CASTLE BIOSCIENCES, INC.

    

    

    The undersigned hereby elects to purchase _________ shares of Common Stock of CASTLE BIOSCIENCES, INC, pursuant to the terms of the attached Warrant, and
      tenders herewith payment of the aggregate purchase price of such shares of Common Stock in full.

    

    

    Please issue a certificate of certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified
      below:

    

    

    (Name and Address)

    

    

                                                      

    

    

    

                                                      

    

    

                                                      

    

    

    The undersigned represents that the aforesaid shares of Common Stock are being acquired for the account of the undersigned for investment and not with a
      view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares.

    

    

    By:                                                                    
        

      

    

    

    Name:                                                                     
      

    Title:                                                                    
        

      

    Date:                                                                    
        

      

    
      
        

    

    

    

    ASSIGNMENT FORM

    

    

    (To assign the foregoing warrant, execute this form and supply required information. Do not use this form to purchase shares.)

    

    

    FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to:

              

    

    

    

                                                                      

      

    (Please Print)

    

    

    whose address is

    

    

                                                                    

                                                                       

      

                                                                    

                                                                       

      

    (Please Print)

    

    

    Dated:                                         , 20__

    

    

    Holder’s Signature:

     

    

                                                                                                                        

     

    

    Holder’s Address:

                                                                                                                         

                                                                                                                        

                                                                                                                        

                                                                                                                         

     

      

    

    Signature Guaranteed:                              

    

    

    NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
      or enlargement or any change whatever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing
      Warrant.

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