Exhibit 10.1


 


ELOXX PHARMACEUTICALS, INC.


 


$50,000,000


Shares of Common Stock


($0.01 par value)


 


Equity Distribution Agreement


 


November 16, 2018


 


Citigroup Global Markets Inc.


388 Greenwich Street


New York, New York 10013


 


Cantor Fitzgerald & Co.


499 Park Avenue


New York, New York 10022


 


Ladies and Gentlemen:


 


Eloxx Pharmaceuticals, Inc.,
a corporation organized under the laws of the State of Delaware (the “Company”), confirms its agreement (this
“Agreement”) with each of Citigroup Global Markets Inc. and Cantor Fitzgerald & Co. (each a “Manager”,
and together, the “Managers”) as follows:


 


1.           Description
of Shares. The Company proposes to issue and sell through or to the Managers, as sales agents and/or principals, shares of
the Company’s common stock, $0.01 par value per share (“Common Stock”), having an aggregate gross sales
price of up to $50,000,000 (the “Shares”), from time to time during the term of this Agreement and on the terms
set forth in Section 3 of this Agreement. For purposes of selling the Shares through the Managers, the Company hereby appoints
the Managers as exclusive agents of the Company for the purpose of soliciting purchases of the Shares from the Company pursuant
to this Agreement and the Managers agree to use their reasonable efforts to solicit purchases of the Shares on the terms and subject
to the conditions stated herein. The Company agrees that whenever it determines to sell the Shares directly to either of the Managers
as principal, it will enter into a separate agreement (each, a “Terms Agreement”) with such Manager in substantially
the form of Annex I hereto, relating to such sale in accordance with Section 3 of this Agreement. Certain terms used herein are
defined in Section 18 hereof.


 


2.           Representations
and Warranties. The Company represents and warrants to, and agrees with, each Manager at the Execution Time and on each such
time the following representations and warranties are repeated or deemed to be made pursuant to this Agreement, as set forth below.


 




    	 	 	 



     


    

 


(a)          The
Company meets the requirements for use of Form S-3 under the Securities Act and has prepared and filed with the Commission
a registration statement on Form S-3 (File Number 333-224207), including a related Base Prospectus, for registration under
the Securities Act of the offering and sale of the Shares. Such Registration Statement, including any amendments thereto filed
prior to the Execution Time or prior to any such time this representation is repeated or deemed to be made, has become effective.
The Company has filed or will file with the Commission the Prospectus Supplement relating to the Shares in accordance with Rule
424(b). As filed, the Prospectus contains all information required by the Securities Act and the rules thereunder, and, except
to the extent the Managers shall agree in writing to a modification, shall be in all substantive respects in the form furnished
to the Managers prior to the Execution Time or prior to any such time this representation is repeated or deemed to be made. The
Registration Statement, at the Execution Time, each such time this representation is repeated or deemed to be made, and at all
times during which a prospectus is required by the Securities Act to be delivered (whether physically or through compliance with
Rule 172 or any similar rule) in connection with any offer or sale of Shares, meets the requirements set forth in Rule 415(a)(1)(x).
The initial Effective Date of the Registration Statement was not earlier than the date three years before the Execution Time. Any
reference herein to the Registration Statement, the Base Prospectus, the Prospectus Supplement or the Prospectus shall be deemed
to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 which were filed
under the Exchange Act on or before the Effective Date of the Registration Statement or the issue date of the Base Prospectus,
the Prospectus Supplement or the Prospectus, as the case may be; and any reference herein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement, the Base Prospectus, the Prospectus Supplement or the Prospectus
shall be deemed to refer to and include the filing of any document under the Exchange Act after the Effective Date of the Registration
Statement or the issue date of the Base Prospectus, the Prospectus Supplement or the Prospectus, as the case may be, deemed to
be incorporated therein by reference.


 


(b)          To
the extent that the Registration Statement is not available for the sales of the Shares as contemplated by this Agreement or the
Company is not a “well known seasoned issuer” as defined in Rule 405 or otherwise is unable to make the representations
set forth in Section 2(e) at any time when such representations are required, the Company shall, before requesting the sale of
Shares pursuant to this Agreement, file a new registration statement with respect to any additional shares of Common Stock necessary
to complete such sales of the Shares and shall cause such registration statement to become effective as promptly as practicable.
After the effectiveness of any such registration statement, all references to “Registration Statement” included in
this Agreement shall be deemed to include such new registration statement, including all documents incorporated by reference therein
pursuant to Item 12 of Form S-3, and all references to “Base Prospectus” included in this Agreement shall be deemed
to include the final form of prospectus, including all documents incorporated therein by reference, included in any such registration
statement at the time such registration statement became effective.


 




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(c)          On
each Effective Date, at the Execution Time, at each Applicable Time, at each Settlement Date and at all times during which a prospectus
is required by the Securities Act to be delivered (whether physically or through compliance with Rule 172 or any similar rule)
in connection with any offer or sale of Shares, the Registration Statement complied and will comply in all material respects with
the applicable requirements of the Securities Act and the Exchange Act and the respective rules thereunder and did not and will
not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
in order to make the statements therein not misleading; and on the date of any filing pursuant to Rule 424(b), at the Execution
Time, at each Applicable Time, on each Settlement Date and at all times during which a prospectus is required by the Securities
Act to be delivered (whether physically or through compliance with Rule 172 or any similar rule) in connection with any offer or
sale of Shares, the Prospectus (together with any supplement thereto) complied and will comply in all material respects with the
applicable requirements of the Securities Act and the Exchange Act and the respective rules thereunder and did not and will not
include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided, however, that the Company
makes no representations or warranties as to the information contained in or omitted from the Registration Statement or the Prospectus
(or any supplement thereto) in reliance upon and in conformity with information furnished in writing to the Company by the Managers
specifically for inclusion in the Registration Statement or the Prospectus (or any supplement thereto).


 


(d)          At
the Execution Time, at each Applicable Time and at each Settlement Date, the Disclosure Package does not, and will not, contain
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to statements
in or omissions from the Disclosure Package based upon and in conformity with written information furnished to the Company by the
Managers specifically for use therein.


 


(e)         
(i) At the earliest time after the filing of the Registration Statement that the Company or another offering participant made a
bona fide offer (within the meaning of Rule 164(h)(2)) of the Shares and (ii) as of the Execution Time and on each such time this
representation is repeated or deemed to be made (with such date being used as the determination date for purposes of this clause
(ii)), the Company was not and is not an Ineligible Issuer (as defined in Rule 405), without taking account of any determination
by the Commission pursuant to Rule 405 that it is not necessary that the Company be considered an Ineligible Issuer.


 


(f)           Each
Issuer Free Writing Prospectus, if any, does not include any information that conflicts with the information contained in the Registration
Statement, including any document incorporated by reference therein and any prospectus supplement deemed to be a part thereof that
has not been superseded or modified. The foregoing sentence does not apply to statements in or omissions from any Issuer Free Writing
Prospectus based upon and in conformity with written information furnished to the Company by the Managers specifically for use
therein.


 




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(g)          The
Registration Statement is not the subject of a pending proceeding or examination under Section 8(d) or 8(e) of the Securities Act,
and the Company is not the subject of a pending proceeding under Section 8A of the Securities Act in connection with the offering
of the Shares.


 


(h)          The
Company has not entered into any other sales agency agreements or other similar arrangements with any agent or any other representative
in respect of at the market offerings of the Shares in accordance with Rule 415(a)(4) of the Securities Act.


 


(i)           The
Company has not taken and will not take, directly or indirectly, any action designed to or that might be reasonably expected to
cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of
the Shares.


 


(j)           There
is no broker, finder or other party that is entitled to receive from the Company any brokerage or finder’s fee or other fee
or commission as a result of any transactions contemplated by this Agreement.


 


(k)          The
interactive data in the eXtensible Business Reporting Language (“XBRL”) included or incorporated by reference
in the Registration Statement fairly presents the information called for in all material respects and has been prepared in accordance
with the Commission’s rules and guidelines applicable thereto.


 


(l)           Each
of the Company and its subsidiaries has been duly incorporated and is validly existing as a corporation in good standing under
the laws of the jurisdiction in which it is chartered or organized with full corporate power and authority to own or lease, as
the case may be, and to operate its properties and conduct its business as described in the Disclosure Package and the Prospectus,
and is duly qualified to do business as a foreign corporation and is in good standing under the laws of each jurisdiction which
requires such qualification, where such concepts exist, except where such failure to so qualify would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect (as defined below).


 


(m)         All
the outstanding shares of capital stock of each subsidiary have been duly and validly authorized and issued and are fully paid
and nonassessable, and, except as otherwise set forth in the Disclosure Package and the Prospectus, all outstanding shares of capital
stock of the subsidiaries are owned by the Company either directly or through wholly owned subsidiaries free and clear of any perfected
security interest or any other security interests, claims, liens or encumbrances.


 


(n)          There
is no franchise, contract or other document of a character required to be described in the Registration Statement or Prospectus,
or to be filed as an exhibit thereto, which is not described or filed as required; and the statements in the Prospectus under the
heading “Description of Capital Stock”, insofar as such statements summarize legal matters, agreements, documents or
proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents or proceedings.


 




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(o)          This
Agreement has been duly authorized, executed and delivered by the Company.


 


(p)          The
Company is not and, after giving effect to the offering and sale of the Shares and the application of the proceeds thereof as described
in the Disclosure Package and the Prospectus, will not be an “investment company” as defined in the Investment Company
Act of 1940, as amended.


 


(q)          No
consent, approval, authorization, filing with or order of any court or governmental agency or body is required in connection with
the transactions contemplated herein, except such as have been obtained under the Securities Act and such as may be required under
the blue sky laws of any jurisdiction in connection with the purchase and distribution of the Shares by the Managers in the manner
contemplated herein and in the Disclosure Package and the Prospectus or such consents, approvals, authorizations, filings or orders
the absence of which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.


 


(r)          Neither
the issue and sale of the Shares nor the consummation of any other of the transactions herein contemplated nor the fulfillment
of the terms hereof will conflict with, result in a breach or violation of, or imposition of any lien, charge or encumbrance upon
any property or assets of the Company or any of its subsidiaries pursuant to, (i) the charter or by-laws of the Company or any
of its subsidiaries, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement
or other agreement, obligation, condition, covenant or instrument to which the Company or any of its subsidiaries is a party or
bound or to which its or their property is subject, or (iii) any statute, law, rule, regulation, judgment, order or decree applicable
to the Company or any of its subsidiaries of any court, regulatory body, administrative agency, governmental body, arbitrator or
other authority having jurisdiction over the Company or any of its subsidiaries or any of its or their properties.


 


(s)          Except
as set forth in the Disclosure Package and the Prospectus in respect of securities that may be issued to Technion Research and
Development Foundation Limited, no holders of securities of the Company have rights to the registration of such securities under
the Registration Statement and the holders of outstanding shares of capital stock of the Company are not entitled to statutory
preemptive or other similar contractual rights to subscribe for the Shares.


 


(t)          The
consolidated historical financial statements and schedules of the Company and its consolidated subsidiaries included in the Prospectus
and the Registration Statement present fairly in all material respects the financial condition, results of operations and cash
flows of the Company as of the dates and for the periods indicated, comply as to form with the applicable accounting requirements
of the Securities Act and have been prepared in conformity with generally accepted accounting principles applied on a consistent
basis throughout the periods involved (except as otherwise noted therein).


 




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(u)          No
action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company
or any of its subsidiaries or its or their property is pending or, to the best knowledge of the Company, threatened that (i) could
reasonably be expected to have a material adverse effect on the performance of this Agreement or the consummation of any of the
transactions contemplated hereby or (ii) could reasonably be expected to have a material adverse effect on the condition (financial
or otherwise), prospects, earnings, business or properties of the Company and its subsidiaries, taken as a whole, whether or not
arising from transactions in the ordinary course of business (a “Material Adverse Effect”), except as set forth
in or contemplated in the Disclosure Package and the Prospectus (exclusive of any amendment or supplement thereto).


 


(v)         Each
of the Company and each of its subsidiaries owns or leases all such properties as are reasonably necessary to the conduct of its
operations as presently conducted.


 


(w)         Neither
the Company nor any subsidiary is in violation or default of (i) any provision of its charter or bylaws, (ii) the terms of any
indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition,
covenant or instrument to which it is a party or bound or to which its property is subject, or (iii) any statute, law, rule, regulation,
judgment, order or decree of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority
having jurisdiction over the Company or such subsidiary or any of its properties, as applicable except, with respect to (ii) and
(iii) above, such violations and defaults that would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.


 


(x)          Kost
Forer Gabbay & Kasierer, a member of Ernst & Young Global, who have certified certain financial statements of the Company
and its consolidated subsidiaries and delivered their report with respect to the audited consolidated financial statements and
schedules included in the Disclosure Package and the Prospectus, are independent public accountants with respect to the Company
within the meaning of the Securities Act and the applicable published rules and regulations thereunder.


 


(y)          Deloitte
& Touche LLP, who have certified certain financial statements of the Company and its consolidated subsidiaries included in
the Disclosure Package and the Prospectus, are independent public accountants with respect to the Company within the meaning of
the Securities Act and the applicable published rules and regulations thereunder.


 


(z)          There
are no transfer taxes or other similar fees or charges under U.S. federal law or the laws of any state, or any political subdivision
thereof, required to be paid in connection with the execution and delivery of this Agreement or the issuance by the Company or
sale by the Company of the Shares.


 




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(aa)        The
Company has filed all tax returns that are required to be filed or has requested extensions thereof (except in any case in which
the failure so to file would not have a Material Adverse Effect, except as set forth in or contemplated in the Disclosure Package
and the Prospectus (exclusive of any amendment or supplement thereto)) and has paid all taxes required to be paid by it and any
other assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable, except for any
such assessment, fine or penalty that is currently being contested in good faith or as would not have a Material Adverse Effect,
except as set forth in or contemplated in the Disclosure Package and the Prospectus (exclusive of any amendment or supplement thereto).


 


(bb)        No
labor problem or dispute with the employees of the Company or any of its subsidiaries exists or is threatened or imminent, and
the Company is not aware of any existing or imminent labor disturbance by the employees of any of its or its subsidiaries’
principal suppliers, contractors or customers, that could have a Material Adverse Effect, except as set forth in or contemplated
in the Disclosure Package and the Prospectus (exclusive of any amendment or supplement thereto).


 


(cc)        The
Company and each of its subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the businesses in which they are engaged; all policies of insurance insuring
the Company or any of its subsidiaries or their respective businesses, assets, employees, officers and directors are in full force
and effect; the Company and its subsidiaries are in compliance with the terms of such policies and instruments in all material
respects; and there are no claims by the Company or any of its subsidiaries under any such policy or instrument as to which any
insurance company is denying liability or defending under a reservation of rights clause; neither the Company nor any such subsidiary
has been refused any insurance coverage sought or applied for; and neither the Company nor any such subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect,
except as set forth in or contemplated in the Disclosure Package and the Prospectus (exclusive of any amendment or supplement thereto).


 


(dd)        No
subsidiary of the Company is currently prohibited, directly or indirectly, from paying any dividends to the Company, from making
any other distribution on such subsidiary’s capital stock, from repaying to the Company any loans or advances to such subsidiary
from the Company or from transferring any of such subsidiary’s property or assets to the Company or any other subsidiary
of the Company, except as described in or contemplated by the Disclosure Package and the Prospectus (exclusive of any amendment
or supplement thereto).


 


(ee)        The
Company and its subsidiaries possess all licenses, certificates, permits and other authorizations issued by all applicable authorities
necessary to conduct their respective businesses, and neither the Company nor any such subsidiary has received any notice of proceedings
relating to the revocation or modification of any such certificate, authorization or permit which, singly or in the aggregate,
if the subject of an unfavorable decision, ruling or finding, would have a Material Adverse Effect, except as set forth in or contemplated
in the Disclosure Package and the Prospectus (exclusive of any amendment or supplement thereto).


 




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(ff)         The
Company and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or
specific authorization; (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences; and (v) the interactive data in eXtensible Business Reporting
Language included or incorporated by reference in the Registration Statement and the Prospectus is in compliance with the Commission’s
published rules, regulations and guidelines applicable thereto. The Company and its subsidiaries’ internal controls over
financial reporting are effective and the Company and its subsidiaries are not aware of any material weakness in their internal
controls over financial reporting.


 


(gg)        The
Company and its subsidiaries maintain “disclosure controls and procedures” (as such term is defined in Rule 13a-15(e)
under the Exchange Act); such disclosure controls and procedures are effective.


 


(hh)        The
Company and its subsidiaries are (i) in compliance with any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental Laws”), (ii) have received and are in compliance with all permits, licenses or
other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) have not
received notice of any actual or potential liability under any environmental law, except where such non-compliance with Environmental
Laws, failure to receive required permits, licenses or other approvals, or liability would not, individually or in the aggregate,
have a Material Adverse Effect, except as set forth in or contemplated in the Disclosure Package and the Prospectus (exclusive
of any amendment or supplement thereto). Except as set forth in the Disclosure Package and the Prospectus, neither the Company
nor any of the subsidiaries has been named as a “potentially responsible party” under the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended.


 


(ii)          In
the ordinary course of its business, the Company periodically reviews the effect of Environmental Laws on the business, operations
and properties of the Company and its subsidiaries, in the course of which it identifies and evaluates associated costs and liabilities
(including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance
with Environmental Laws, or any permit, license or approval, any related constraints on operating activities and any potential
liabilities to third parties). On the basis of such review, the Company has reasonably concluded that such associated costs and
liabilities would not, singly or in the aggregate, have a Material Adverse Effect, except as set forth in or contemplated in the
Disclosure Package and the Prospectus (exclusive of any amendment or supplement thereto).


 




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(jj)          None
of the following events has occurred or exists: (i) a failure to fulfill the obligations, if any, under the minimum funding standards
of Section 302 of the United States Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and
the regulations and published interpretations thereunder with respect to a Plan, determined without regard to any waiver of such
obligations or extension of any amortization period; (ii) an audit or investigation by the Internal Revenue Service, the U.S. Department
of Labor, the Pension Benefit Guaranty Corporation or any other federal or state governmental agency or any foreign regulatory
agency with respect to the employment or compensation of employees by any of the Company or any of its subsidiaries that could
have a Material Adverse Effect; (iii) any breach of any contractual obligation, or any violation of law or applicable qualification
standards, with respect to the employment or compensation of employees by the Company or any of its subsidiaries that could have
a Material Adverse Effect. None of the following events has occurred or is reasonably likely to occur: (i) a material increase
in the aggregate amount of contributions required to be made to all Plans in the current fiscal year of the Company and its subsidiaries
compared to the amount of such contributions made in the most recently completed fiscal year of the Company and its subsidiaries;
(ii) a material increase in the “accumulated post-retirement benefit obligations” (within the meaning of Statement
of Financial Accounting Standards 106) of the Company and its subsidiaries compared to the amount of such obligations in the most
recently completed fiscal year of the Company and its subsidiaries; (iii) any event or condition giving rise to a liability under
Title IV of ERISA that could reasonably be expected to have a Material Adverse Effect; or (iv) the filing of a claim by one or
more employees or former employees of the Company or any of its subsidiaries related to their employment that could have a Material
Adverse Effect. For purposes of this paragraph, the term “Plan” means a plan (within the meaning of Section 3(3) of
ERISA) subject to Title IV of ERISA with respect to which the Company or any of its subsidiaries may have any liability.


 


(kk)        There
is and has been no failure on the part of the Company and any of the Company’s directors or officers, in their capacities
as such, to comply with any applicable provision of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated
in connection thereunder (the “Sarbanes-Oxley Act”), including Section 402 relating to loans and Sections 302
and 906 relating to certifications.


 


(ll)          Neither
the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate
or other person acting on behalf of the Company or any of its subsidiaries is aware of or has taken any action, directly or indirectly,
that could result in a violation or a sanction for violation by such persons of the Foreign Corrupt Practices Act of 1977 or the
U.K. Bribery Act 2010, each as may be amended, or similar law of any other relevant jurisdiction, or the rules or regulations thereunder;
and the Company and its subsidiaries have instituted and maintain policies and procedures to ensure compliance therewith. No part
of the proceeds of the offering will be used, directly or indirectly, in violation of the Foreign Corrupt Practices Act of 1977
or the U.K. Bribery Act 2010, each as may be amended, or similar law of any other relevant jurisdiction, or the rules or regulations
thereunder.


 




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(mm)      The
operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements and the money laundering statutes and the rules and regulations thereunder and any related
or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to
the best knowledge of the Company, threatened.


 


(nn)       Neither
the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate
of the Company or any of its subsidiaries (i) is, or is controlled or 50% or more owned in the aggregate by or is acting on behalf
of, one or more individuals or entities that are currently the subject of any sanctions administered or enforced by the United
States (including any administered or enforced by the Office of Foreign Assets Control of the U.S. Department of the Treasury,
the U.S. Department of State or the Bureau of Industry and Security of the U.S. Department of Commerce), the United Nations Security
Council, the European Union, a member state of the European Union (including sanctions administered or enforced by Her Majesty’s
Treasury of the United Kingdom) or other relevant sanctions authority (collectively, “Sanctions” and such persons,
“Sanctioned Persons” and each such person, a “Sanctioned Person”), (ii) is located, organized
or resident in a country or territory that is, or whose government is, the subject of Sanctions that broadly prohibit dealings
with that country or territory (collectively, “Sanctioned Countries” and each, a “Sanctioned Country”)
or (iii) will, directly or indirectly, use the proceeds of this offering, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other individual or entity in any manner that would result in a violation
of any Sanctions by, or could result in the imposition of Sanctions against, any individual or entity (including any individual
or entity participating in the offering, whether as underwriter, advisor, investor or otherwise).


 


(oo)       Neither
the Company nor any of its subsidiaries has engaged in any dealings or transactions with or for the benefit of a Sanctioned Person,
or with or in a Sanctioned Country, in the preceding 3 years, nor does the Company or any of its subsidiaries have any plans to
engage in dealings or transactions with or for the benefit of a Sanctioned Person, or with or in a Sanctioned Country.


 


(pp)       The
subsidiaries listed on Annex II attached hereto are the only significant subsidiaries of the Company as defined by Rule 1-02
of Regulation S-X.


 




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(qq)       To
the Company’s best knowledge as of the date hereof, the Company and its subsidiaries own, possess, license or have other
rights to use, on reasonable terms, all material patents, patent applications, trade and service marks, trade and service mark
registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, know-how and other intellectual property
(collectively, the “Intellectual Property”) necessary for the conduct of the Company’s business as now
conducted or as proposed in the Disclosure Package and Prospectus to be conducted. Except as set forth in the Disclosure Package
and the Prospectus under the caption “Business—Intellectual Property,” (a) to the Company’s best knowledge,
there are no rights of third parties to any such Intellectual Property; (b) to the Company’s best knowledge, there is
no material infringement by third parties of any such Intellectual Property; (c) there is no pending or to the Company’s
best knowledge, threatened action, suit, proceeding or claim by others challenging the Company’s rights in or to any such
Intellectual Property, and the Company is unaware of any facts which would form a reasonable basis for any such claim; (d) there
is no pending or threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual
Property, and the Company is unaware of any facts which would form a reasonable basis for any such claim; (e) there is no pending
or, to the Company’s best knowledge, threatened action, suit, proceeding or claim by others that the Company infringes or
otherwise violates any patent, trademark, copyright, trade secret or other proprietary rights of others, and the Company is unaware
of any other fact which would form a reasonable basis for any such claim; (f) to the Company’s best knowledge, there
is no U.S. patent or published U.S. patent application which contains claims that dominate or may dominate any Intellectual Property
described in the Disclosure Package and the Prospectus as being owned by or licensed to the Company or that interferes with the
issued or pending claims of any such Intellectual Property; and (g) there is no prior art of which the Company is aware that
may render any U.S. patent held by the Company invalid or any U.S. patent application held by the Company unpatentable which has
not been disclosed to the U.S. Patent and Trademark Office.


 


(rr)         All
amounts payable by the Company or its subsidiaries to all persons involved in the research, development, conception or reduction
to practice of any of the Company’s or any subsidiary’s Intellectual Property have been paid in full, and all current
and former employees of the Company or its subsidiaries have expressly and irrevocably waived the right to receive compensation
in connection with “Service Inventions” under Section 134 of the Israeli Patent Law 1967 or any other similar provision
under law of any applicable jurisdiction. No government funding, facilities or resources of a university, college, other educational
institution or research center or funding from third parties, including without limitation the Israeli Investment Center and the
Office of the Chief Scientist of the Ministry of Industry, Trade and Labor of the State of Israel, was used in the development
of any intellectual property that is owned or purported to be owned by the Company or any of its subsidiaries except as would not
have a material adverse effect on the Company and its subsidiaries, and no governmental agency or body, university, college, other
educational institution or research center has any claim or right in or to any intellectual property that is owned or purported
to be owned by the Company or any of its subsidiaries.


 


(ss)        The
statements contained in the Prospectus under the captions “Risk Factors—Risks Related to Intellectual Property”
and “Business—Intellectual Property,” insofar as such statements summarize legal matters, agreements, documents,
or proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents or proceedings.


 




    	 	11	 



     


    

 


(tt)         Except
as described in the Registration Statement, the Disclosure Package and the Prospectus, as applicable, the Company (i) is and at
all times has been in compliance with all statutes, rules and regulations applicable to the ownership, testing, development, manufacture,
packaging, processing, use, distribution, marketing, advertising, labeling, promotion, sale, offer for sale, storage, import, export
or disposal of any product manufactured or distributed by the Company including, without limitation the Federal Food, Drug and
Cosmetic Act (21 U.S.C. §301 et seq.), the federal Anti-Kickback Statute (42 U.S.C. §1320a-7b(b)), the Health Insurance
Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act
of 2009, and the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Affordability
Reconciliation Act of 2010, the regulations promulgated pursuant to such laws, and any successor government programs and comparable
state laws, regulations relating to Good Clinical Practices and Good Laboratory Practices and all other local, state, federal,
national, supranational and foreign laws, manual provisions, policies and administrative guidance relating to the regulation of
the Company (collectively, the “Applicable Laws”); (ii) has not received any notice from any court or arbitrator
or governmental or regulatory authority or third party alleging or asserting noncompliance with any Applicable Laws or any licenses,
exemptions, certificates, approvals, clearances, authorizations, permits, registrations and supplements or amendments thereto required
by any such Applicable Laws (“Authorizations”); (iii) possesses all Authorizations and such Authorizations are
valid and in full force and effect and are not in violation of any term of any such Authorizations; (iv) has not received written
notice of any claim, action, suit, proceeding, hearing, enforcement, investigation arbitration or other action from any court or
arbitrator or governmental or regulatory authority or third party alleging that any product operation or activity is in violation
of any Applicable Laws or Authorizations nor is any such claim, action, suit, proceeding, hearing, enforcement, investigation,
arbitration or other action threatened; (v) has received any written notice that any court or arbitrator or governmental or regulatory
authority has taken, is taking or intends to take, action to limit, suspend, materially modify or revoke any Authorizations nor
is any such limitation, suspension, modification or revocation threatened; (vi) has filed, obtained, maintained or submitted all
material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required
by any Applicable Laws or Authorizations and that all such reports, documents, forms, notices, applications, records, claims, submissions
and supplements or amendments were complete and accurate on the date filed (or were corrected or supplemented by a subsequent submission);
and (vii) is not a party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders, or similar
agreements with or imposed by any governmental or regulatory authority.


 




    	 	12	 



     


    

 


(uu)       The
clinical and pre-clinical trials conducted by or on behalf of or sponsored by the Company or its subsidiaries, or in which the
Company or its subsidiaries have participated, that are described in the Registration Statement, the Disclosure Package and the
Prospectus or the results of which are referred to in the Registration Statement, the Disclosure Package and the Prospectus, as
applicable, and are intended to be submitted to Regulatory Authorities as a basis for product approval, were and, if still pending,
are being conducted in accordance with standard medical and scientific research procedures and all applicable statutes, rules and
regulations of the FDA and comparable drug regulatory agencies outside of the United States to which it is subject (collectively,
the “Regulatory Authorities”), including, without limitation, 21 C.F.R. Parts 50, 54, 56, 58, and 312, and current
Good Clinical Practices and Good Laboratory Practices; the descriptions in the Registration Statement, the Disclosure Package or
the Prospectus of the results of such studies and trials are accurate and complete and fairly present the data derived from such
trials; the Company has no knowledge of any other trials conducted by or on behalf of or sponsored by the Company or its subsidiaries,
or in which the Company or its subsidiaries have participated the results of which are inconsistent with or otherwise call into
question the results described or referred to in the Registration Statement, Disclosure Package and the Prospectus; the Company
and its subsidiaries have operated and are currently in compliance with all applicable statutes, rules and regulations of the Regulatory
Authorities; neither the Company nor any of its subsidiaries has not received any written notices, correspondence or other communication
from the Regulatory Authorities or any governmental authority which could lead to the termination or suspension of any clinical
or pre-clinical trials that are described in the Registration Statement, the Disclosure Package and the Prospectus or the results
of which are referred to in the Registration Statement, Disclosure Package or the Prospectus, and there are no reasonable grounds
for same.


 


(vv)       The
Company and its subsidiaries possess all licenses, certificates, permits and other authorizations (collectively, “Permits”)
issued by, and has made all declarations and filings with, the applicable federal, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of their respective properties or the conduct of their businesses as
described in the Registration Statement, the Disclosure Package and the Prospectus, or to permit all clinical and nonclinical studies
and trials conducted by or on behalf of the Company and its subsidiaries, including, without limitation, all necessary FDA and
applicable foreign regulatory agency approvals; neither the Company nor any of its subsidiaries is in violation of, or in default
under, any such Permit; and the Company and its subsidiaries have not received notice of any revocation or modification of any
such Permit and does not have any reason to believe that any such Permit will not be renewed in the ordinary course. The Company
and its subsidiaries (i) have, and at all times have been, in compliance with all Applicable Laws; and (ii) have not
received any FDA Form 483, written notice of adverse finding, warning letter, untitled letter or other correspondence or written
notice from any court or arbitrator or governmental or regulatory authority alleging or asserting non-compliance with (A) any
Applicable Laws or (B) any Permits required by any such Applicable Laws.


 


(ww)      To
the Company’s knowledge, the manufacturing facilities and operations of its suppliers are operated in compliance with all
applicable statutes, rules, regulations and policies of the Regulatory Authorities.


 


(xx)        None
of the Company’s product candidates have received marketing approval from any Regulatory Authority.


 




    	 	13	 



     


    

 


Any certificate signed
by any officer of the Company and delivered to the Managers or counsel for the Managers in connection with this Agreement or any
Terms Agreement shall be deemed a representation and warranty by the Company, as to matters covered thereby, to each Manager.


 


3.           Sale
and Delivery of Shares.


 


(a)          Subject
to the terms and conditions and in reliance upon the representations and warranties herein set forth, the Company agrees to issue
and sell Shares from time to time through the Managers, acting as sales agents, and the Managers agree to use their reasonable
efforts to sell, as sales agents for the Company, the Shares on the following terms.


 


(i)          The
Shares are to be sold by one of the Managers on a daily basis or otherwise as shall be agreed to by the Company and such Manager
on any day that (A) is a trading day for the Nasdaq Global Market (“Nasdaq”), (B) the Company has instructed
such Manager by telephone (confirmed promptly by electronic mail) to make such sales and (C) the Company has satisfied its obligations
under Section 6 of this Agreement. The Company will designate the maximum amount of the Shares to be sold by such Manager daily
as agreed to by such Manager (in any event not in excess of the amount available for issuance under the Prospectus and the currently
effective Registration Statement) and the minimum price per Share at which such Shares may be sold. Subject to the terms and conditions
hereof, such Manager shall use its reasonable efforts to sell on a particular day all of the Shares designated for the sale by
the Company on such day. The gross sales price of the Shares sold under this Section 3(a) shall be the market price for shares
of the Company’s Common Stock sold by such Manager under this Section 3(a) on Nasdaq at the time of sale of such Shares.
For the avoidance of doubt, in no event shall the Company submit instructions to sell Shares to (x) more than one Manager under
this Agreement or (y) to any Manager under this Agreement and any sales agent or other representative under any other effective
sales agency agreement in respect of at the market offerings of Common Stock in accordance with Rule 415(a)(4), in each case, on
any single trading day.


 


(ii)         The
Company acknowledges and agrees that (A) there can be no assurance that the Managers will be successful in selling the Shares,
(B) no Manager will incur liability or obligation to the Company or any other person or entity if such Manager does not sell Shares
for any reason other than a failure by such Manager to use its reasonable efforts consistent with its normal trading and sales
practices and applicable law and regulations to sell such Shares as required under this Agreement, and (C) no Manager shall be
under any obligation to purchase Shares on a principal basis pursuant to this Agreement, except as otherwise specifically agreed
by such Manager and the Company.


 




    	 	14	 



     


    

 


(iii)        The
Company shall not authorize the issuance and sale of, and the relevant Manager shall not be obligated to use its reasonable efforts
to sell, any Share at a price lower than the minimum price therefor designated from time to time by the Company’s Board of
Directors (the “Board”), or a duly authorized committee thereof, and notified to such Manager in writing. The
Company or any Manager may, upon notice to the other party hereto by telephone (confirmed promptly by electronic mail), suspend
the offering of the Shares for any reason and at any time; provided, however, that such suspension or termination
shall not affect or impair the parties’ respective obligations with respect to the Shares sold hereunder prior to the giving
of such notice.


 


(iv)        Each Manager hereby
covenants and agrees not to make any sales of the Shares on behalf of the Company, pursuant to this Section 3(a), other than (A)
by means of ordinary brokers’ transactions between members of Nasdaq that qualify for delivery of a Prospectus to Nasdaq
in accordance with Rule 153 of the Securities Act (such transactions are hereinafter referred to as “Continuous Offerings”)
and (B) such other sales of the Shares on behalf of the Company in its capacity as agent of the Company as shall be agreed by the
Company and such Manager pursuant to a Terms Agreement.


 


(v)         The
compensation to each Manager for sales of the Shares with respect to which such Manager acts as sales agent under this Agreement
shall be 3.0% of the gross sales price of the Shares sold pursuant to this Section 3(a) and payable as described in the succeeding
subsection (vi) below. The foregoing rate of compensation shall not apply when such Manager acts as principal, in which case the
Company may sell Shares to such Manager as principal at a price agreed upon at the relevant Applicable Time pursuant to a Terms
Agreement. The remaining proceeds, after further deduction for any transaction fees imposed by any governmental or self-regulatory
organization in respect of such sales (the “Transaction Fees”), shall constitute the net proceeds to the Company
for such Shares (the “Net Proceeds”).


 


(vi)       The
Manager acting as sales agent hereunder shall provide written confirmation (which may be by facsimile or electronic mail) to the
Company following the close of trading on Nasdaq each day in which the Shares are sold under this Section 3(a) setting forth the
number of the Shares sold on such day, the aggregate gross sales proceeds and the Net Proceeds to the Company, and the compensation
payable by the Company to such Manager with respect to such sales. Such compensation shall be set forth and invoiced in periodic
statements from such Manager to the Company, with payment to be made by the Company promptly after its receipt thereof.


 




    	 	15	 



     


    

 


(vii)       Settlement
for sales of the Shares pursuant to this Section 3(a) will occur on the second business day following the date on which such sales
are made (each such day, a “Settlement Date”). On each Settlement Date, the Shares sold through a Manager for
settlement on such date shall be issued and delivered by the Company to such Manager against payment of the aggregate gross sales
proceeds less any Transaction Fees for the sale of such Shares. Settlement for all such Shares shall be effected by free delivery
of the Shares to such Manager’s account at The Depository Trust Company (“DTC”) in return for payments
in same day funds delivered to the account designated by the Company. If the Company or its transfer agent (if applicable) shall
default on its obligation to deliver the Shares on any Settlement Date, the Company shall (A) indemnify and hold such Manager harmless
against any loss, claim or damage arising from or as a result of such default by the Company and (B) pay such Manager any commission
to which it would otherwise be entitled absent such default. If any Manager breaches this Agreement by failing to deliver the aggregate
gross sales proceeds less any Transaction Fees to the Company on any Settlement Date for the Shares delivered by the Company, such
Manager will pay the Company interest based on the effective overnight federal funds rate on such unpaid amount less any compensation
due to such Manager.


 


(viii)      At
each Applicable Time, Settlement Date and Representation Date (as defined in Section 4(k)), the Company shall be deemed to have
affirmed each representation and warranty contained in this Agreement as if such representation and warranty were made as of such
date, modified as necessary to relate to the Registration Statement and the Prospectus as amended as of such date. Any obligation
of a Manager to use its reasonable efforts to sell the Shares on behalf of the Company shall be subject to the continuing accuracy
of the representations and warranties of the Company herein, to the performance by the Company of its obligations hereunder and
to the continuing satisfaction of the additional conditions specified in Section 6 of this Agreement.


 


(b)          If
the Company wishes to issue and sell the Shares pursuant to this Agreement but other than as set forth in Section 3(a) of this
Agreement (each, a “Placement”), it will notify a Manager of the proposed terms of such Placement. If such Manager,
acting as principal, wishes to accept such proposed terms (which it may decline to do for any reason in its sole discretion) or,
following discussions with the Company wishes to accept amended terms, such Manager and the Company will enter into a Terms Agreement
setting forth the terms of such Placement. The terms set forth in a Terms Agreement will not be binding on the Company or such
Manager unless and until the Company and such Manager have each executed such Terms Agreement accepting all of the terms of such
Terms Agreement. In the event of a conflict between the terms of this Agreement and the terms of a Terms Agreement, the terms of
such Terms Agreement will control.


 


(c)          Each
sale of the Shares to a Manager shall be made in accordance with the terms of this Agreement and, if applicable, a Terms Agreement,
which will provide for the sale of such Shares to, and the purchase thereof by, such Manager. A Terms Agreement may also specify
certain provisions relating to the reoffering of such Shares by such Manager. The commitment of such Manager to purchase the Shares
pursuant to any Terms Agreement shall be deemed to have been made on the basis of the representations and warranties of the Company
herein contained and shall be subject to the terms and conditions herein set forth. Each Terms Agreement shall specify the number
of the Shares to be purchased by such Manager pursuant thereto, the price to be paid to the Company for such Shares, any provisions
relating to rights of, and default by, underwriters acting together with such Manager in the reoffering of the Shares, and the
time and date (each such time and date being referred to herein as a “Time of Delivery”) and place of delivery
of and payment for such Shares. Such Terms Agreement shall also specify any requirements for opinions of counsel, accountants’
letters and officers’ certificates pursuant to Section 6 of this Agreement and any other information or documents required
by such Manager.


 




    	 	16	 



     


    

 


(d)          Under
no circumstances shall the number and aggregate amount of the Shares sold pursuant to this Agreement and any Terms Agreement exceed
(i) the aggregate amount set forth in Section 1, (ii) the number of shares of the Common Stock available for issuance under the
currently effective Registration Statement or (iii) the number and aggregate amount of the Shares authorized from time to time
to be issued and sold under this Agreement by the Board, or a duly authorized committee thereof, and notified to the Manager acting
as sales agent in writing.


 


(e)          If
any party has reason to believe that the exemptive provisions set forth in Rule 101(c)(1) of Regulation M under the Exchange Act
are not satisfied with respect to the Shares, it shall promptly notify the other parties and sales of the Shares under this Agreement
and any Terms Agreement shall be suspended until that or other exemptive provisions have been satisfied in the judgment of each
party.


 


(f)          Notwithstanding
any other provision of this Agreement the Company shall not request the sale of any Shares that would be sold, and no Manager shall
be obligated to sell, during any period in which the Company is, or would reasonably be deemed to be, in possession of material
non-public information.


 


4.           Agreements.
The Company agrees with the Managers that:


 


(a)          During
any period when the delivery of a prospectus relating to the Shares is required (including in circumstances where such requirement
may be satisfied pursuant to Rule 172) to be delivered under the Securities Act, the Company will not file any amendment of the
Registration Statement or supplement (including the Prospectus Supplement) to the Base Prospectus unless the Company has furnished
to the Managers a copy for their review prior to filing and will not file any such proposed amendment or supplement to which any
Manager reasonably objects. The Company has properly completed the Prospectus, in a form approved by the Managers, and filed such
Prospectus, as amended at the Execution Time, with the Commission pursuant to the applicable paragraph of Rule 424(b) by the
Execution Time and will cause any supplement to the Prospectus to be properly completed, in a form approved by the Managers, and
will file such supplement with the Commission pursuant to the applicable paragraph of Rule 424(b) within the time period prescribed
thereby and will provide evidence satisfactory to the Managers of such timely filing. The Company will promptly advise each Manager
(i) when the Prospectus, and any supplement thereto, shall have been filed (if required) with the Commission pursuant to Rule 424(b)
or when any Rule 462(b) Registration Statement shall have been filed with the Commission, (ii) when, during any period
when the delivery of a prospectus (whether physically or through compliance with Rule 172 or any similar rule) is required under
the Securities Act in connection with the offering or sale of the Shares, any amendment to the Registration Statement shall have
been filed or become effective, (iii) of any request by the Commission or its staff for any amendment of the Registration
Statement, or any Rule 462(b) Registration Statement, or for any supplement to the Prospectus or for any additional information,
(iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of
any notice objecting to its use or the institution or threatening of any proceeding for that purpose and (v) of the receipt
by the Company of any notification with respect to the suspension of the qualification of the Shares for sale in any jurisdiction
or the institution or threatening of any proceeding for such purpose. The Company will use its best efforts to prevent the issuance
of any such stop order or the occurrence of any such suspension or objection to the use of the Registration Statement and, upon
such issuance, occurrence or notice of objection, to obtain as soon as possible the withdrawal of such stop order or relief from
such occurrence or objection, including, if necessary, by filing an amendment to the Registration Statement or a new registration
statement and using its best efforts to have such amendment or new registration statement declared effective as soon as practicable.


 




    	 	17	 



     


    

 


(b)          If,
at any time on or after an Applicable Time but prior to the related Settlement Date or Time of Delivery, any event occurs as a
result of which the Disclosure Package would include any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein in the light of the circumstances under which they were made or the circumstances
then prevailing not misleading, the Company will (i) notify promptly each Manager so that any use of the Disclosure Package may
cease until it is amended or supplemented; (ii) amend or supplement the Disclosure Package to correct such statement or omission;
and (iii) supply any amendment or supplement to each Manager in such quantities as such Manager may reasonably request.


 


(c)          During
any period when the delivery of a prospectus relating to the Shares is required (including in circumstances where such requirement
may be satisfied pursuant to Rule 172) to be delivered under the Securities Act, any event occurs as a result of which the Prospectus
as then supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements therein in the light of the circumstances under which they were made at such time not misleading, or if
it shall be necessary to amend the Registration Statement, file a new registration statement or supplement the Prospectus to comply
with the Securities Act or the Exchange Act or the respective rules thereunder, including in connection with use or delivery of
the Prospectus, the Company promptly will (i) notify each Manager of any such event, (ii) prepare and file with the Commission,
subject to the second sentence of paragraph (a) of this Section 4, an amendment or supplement or new registration statement
which will correct such statement or omission or effect such compliance, (iii) use its best efforts to have any amendment to the
Registration Statement or new registration statement declared effective as soon as practicable in order to avoid any disruption
in use of the Prospectus and (iv) supply any supplemented Prospectus to each Manager in such quantities as such Manager may
reasonably request.


 


(d)          As
soon as practicable, the Company will make generally available to its security holders and to the Managers an earnings statement
or statements of the Company and its subsidiaries which will satisfy the provisions of Section 11(a) of the Securities Act
and Rule 158.


 




    	 	18	 



     


    

 


(e)          The
Company will furnish to each Manager and counsel for the Managers, without charge, signed copies of the Registration Statement
(including exhibits thereto) and, so long as delivery of a prospectus by each Manager or dealer may be required by the Securities
Act (including in circumstances where such requirement may be satisfied pursuant to Rule 172), as many copies of the Prospectus
and any Issuer Free Writing Prospectus and any supplement thereto as such Manager may reasonably request. The Company will pay
the expenses of printing or other production of all documents relating to the offering.


 


(f)           The
Company will arrange, if necessary, for the qualification of the Shares for sale under the laws of such jurisdictions as the Managers
may designate and will maintain such qualifications in effect so long as required for the distribution of the Shares; provided
that in no event shall the Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified
or to take any action that would subject it to service of process in suits, other than those arising out of the offering or sale
of the Shares, in any jurisdiction where it is not now so subject.


 


(g)          The
Company agrees that, unless it has or shall have obtained the prior written consent of the Managers, and the Managers agree with
the Company that, unless it has or shall have obtained, as the case may be, the prior written consent of the Company, it has not
made and will not make any offer relating to the Shares that would constitute an Issuer Free Writing Prospectus or that would otherwise
constitute a “free writing prospectus” (as defined in Rule 405) required to be filed by the Company with the Commission
or retained by the Company under Rule 433; provided that the prior written consent of the parties hereto shall be deemed
to have been given in respect of the Free Writing Prospectuses included in Schedule I hereto. Any such free writing prospectus
consented to by the Managers or the Company is hereinafter referred to as a “Permitted Free Writing Prospectus.” The
Company agrees that (i) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer
Free Writing Prospectus and (ii) it has complied and will comply, as the case may be, with the requirements of Rules 164 and 433
applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the Commission, legending and record
keeping.


 


(h)          Without
giving the Managers at least five Business Days’ prior written notice specifying the nature of the proposed transaction and
the date of such proposed transaction and while a Placement is in effect, the Company will not offer, sell, contract to sell, pledge,
or otherwise dispose of, (or enter into any transaction which is designed to, or might reasonably be expected to, result in the
disposition of (whether by actual disposition or effective economic disposition due to cash settlement or otherwise) by the Company or
any affiliate of the Company or any person in privity with the Company or any affiliate of the Company) directly or indirectly,
including the filing (or participation in the filing) of a registration statement (other than a registration statement on Form
S-8, Form S-4 or, in either case, a successor form thereto) with the Commission in respect of, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act, any other
shares of Common Stock or any securities convertible into, or exercisable, or exchangeable for, shares of Common Stock, or publicly
announce an intention to effect any such transaction; provided, however, that the Company may issue and sell Common
Stock pursuant to this Agreement or any Terms Agreement, any equity incentive plan, employee stock option plan, stock ownership
plan or dividend reinvestment plan of the Company in effect at the Execution Time or approved by the Board and the Company may
issue Common Stock issuable upon the conversion of securities or the exercise of warrants outstanding at the Execution Time.


 




    	 	19	 



     


    

 


(i)           The
Company will not (i) take, directly or indirectly, any action designed to or that would constitute or that might reasonably be
expected to cause or result in, under the Exchange Act or otherwise, stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of the Shares or (ii) sell, bid for, purchase Common Stock in violation of Regulation
M under the Exchange Act or pay any person (other than as contemplated by this Agreement or any Terms Agreement) any compensation
for soliciting purchases of the Shares.


 


(j)           The
Company will, at any time during the term of this Agreement, as supplemented from time to time, advise the Managers immediately
after it shall have received notice or obtain knowledge thereof, of any information or fact that would alter or affect any opinion,
certificate, letter and other document provided to the Managers pursuant to Section 6 herein.


 


(k)          On
the date the Company first requests a Placement (and upon the recommencement of the offering of the Shares under this Agreement
following the termination of a suspension of sales hereunder), and each time that (i) the Registration Statement or the Prospectus
shall be amended or supplemented (other than a prospectus supplement relating solely to the offering of securities other than the
Shares), (ii) there is filed with the Commission any document incorporated by reference into the Prospectus, (iii) the Shares are
delivered to any Manager as principal at the Time of Delivery pursuant to a Terms Agreement, or (iv) otherwise as any Manager may
reasonably request (such commencement or recommencement date and each such date referred to in (i), (ii), (iii) and (iv) above,
a “Representation Date”), the Company shall furnish or cause to be furnished to the Managers (or, in the case
of subclause (iii) above, the relevant Manager party to such Terms Agreement) forthwith a certificate dated and delivered the date
of such commencement or recommencement, effectiveness of such amendment, the date of filing with the Commission of such supplement
or other document, the Time of Delivery, or promptly upon request, as the case may be, in form satisfactory to the Managers (or,
in the case of subclause (iii) above, the relevant Manager party to such Terms Agreement) to the effect that the statements contained
in the certificate referred to in Section 6(e) of this Agreement which were last furnished to the Managers (or, in the case of
subclause (iii) above, the relevant Manager party to such Terms Agreement) are true and correct at the time of such commencement
or recommencement, amendment, supplement, filing, or delivery, as the case may be, as though made at and as of such time (except
that such statements shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented to
such time) or, in lieu of such certificate, a certificate of the same tenor as the certificate referred to in said Section 6(e),
modified as necessary to relate to the Registration Statement and the Prospectus as amended and supplemented to the time of delivery
of such certificate; provided, however, the request to deliver a certificate under this Section 4(k) shall be waived for any Representation
Date occurring at a time at which no Placement is pending or no Terms Agreement is in effect (each, a “Waiver”),
which Waiver, in each case, shall continue until such time as the Company requests its next Placement or enters into a Terms Agreement.


 




    	 	20	 



     


    

 


(l)           At
each Representation Date, the Company shall furnish or cause to be furnished forthwith to the Managers (or, in the case of a Representation
Date of the type described in Section 4(k)(iii), the relevant Manager party to such Terms Agreement) and to counsel to the
Managers a written opinion of Proskauer Rose LLP, counsel to the Company (“Company Counsel”), or other counsel
satisfactory to the Manager(s), dated and delivered the date of commencement or recommencement, effectiveness of such amendment,
the date of filing with the Commission of such supplement or other document, the Time of Delivery, or promptly upon such request,
as the case may be, in form and substance reasonably satisfactory to the Manager(s), of the same tenor as the opinions referred
to in Section 6(b) of this Agreement, but modified as necessary to relate to the Registration Statement and the Prospectus as amended
and supplemented to the time of delivery of such opinion; provided, however, the Company shall not be required to furnish such
letter at any time a Waiver is in effect until such time as the Company requests its next Placement or enters into a Terms Agreement.


 


(m)         At
each Representation Date, the Company shall furnish or cause to be furnished forthwith to the Managers (or, in the case of a Representation
Date of the type described in Section 4(k)(iii), the relevant Manager party to such Terms Agreement) and to counsel to the
Managers a written opinion of Perkins Coie LLP, intellectual property counsel to the Company (“Company IP Counsel”),
or other counsel satisfactory to the Manager(s), dated and delivered the date of commencement or recommencement, effectiveness
of such amendment, the date of filing with the Commission of such supplement or other document, the Time of Delivery, or promptly
upon such request, as the case may be, in form and substance reasonably satisfactory to the Manager(s), of the same tenor as the
opinions referred to in Section 6(c) of this Agreement, but modified as necessary to relate to the Registration Statement and the
Prospectus as amended and supplemented to the time of delivery of such opinion; provided, however, the Company shall not be required
to furnish such letter at any time a Waiver is in effect until such time as the Company requests its next Placement or enters into
a Terms Agreement.


 


(n)          At
each Representation Date, Goodwin Procter LLP, counsel to the Managers, shall deliver a written opinion, dated and delivered the
date of commencement or recommencement, effectiveness of such amendment, the date of filing with the Commission of such supplement
or other document, the Time of Delivery, or promptly upon such request, as the case may be, in form and substance satisfactory
to the Managers (or, in the case of a Representation Date of the type described in Section 4(k)(iii), the relevant Manager
party to such Terms Agreement), of the same tenor as the opinions referred to in Section 6(d) of this Agreement but modified as
necessary to relate to the Registration Statement and the Prospectus as amended and supplemented to the time of delivery of such
opinion; provided, however, Goodwin Procter LLP shall not be required to furnish such letter at any time a Waiver is in effect
until such time as the Company requests its next Placement or enters into a Terms Agreement.


 




    	 	21	 



     


    

 


(o)          On
the date the Company first requests a Placement (and upon the recommencement of the offering of the Shares under this Agreement
following the termination of a suspension of sales hereunder), and each time that (i) the Registration Statement or the Prospectus
shall be amended or supplemented to include additional amended financial information, (ii) the Shares are delivered to a Manager
as principal at a Time of Delivery pursuant to a Terms Agreement, (iii) the Company files a Quarterly Report on Form 10-Q or an
Annual Report on Form 10-K, or (iv) at the Manager’s request and upon reasonable advance notice to the Company, there is
filed with the Commission any document which contains financial information (other than an Annual Report on Form 10-K) incorporated
by reference into the Prospectus, the Company shall cause each of (A) Kost Forer Gabbay & Kasierer, a member of Ernst &
Young Global, and (B) Deloitte & Touche LLP (together, the “Accountants”), or other independent accountants
satisfactory to the Managers forthwith, to furnish the Managers (or, in the case of subclause (ii) above, the relevant Manager
party to such Terms Agreement) a letter, dated the date of commencement or recommencement, effectiveness of such amendment, the
date of filing of such supplement or other document with the Commission, or the Time of Delivery, as the case may be, in form reasonably
satisfactory to the Manager(s), of the same tenor as the letter referred to in Section 6(f) of this Agreement but modified to relate
to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.


 


(p)          On
or prior to the date the Company first requests a Placement (and upon the recommencement of the offering of the Shares under this
Agreement following the termination of a suspension of sales hereunder), and at each Representation Date, the Company will conduct
a due diligence session, in form and substance reasonably satisfactory to the Managers, which shall include representatives of
the management and the independent accountants of the Company. The Company shall cooperate timely with any reasonable due diligence
request from or review conducted by the Managers or their agents from time to time in connection with the transactions contemplated
by this Agreement, including, without limitation, providing information and available documents and access to appropriate corporate
officers and the Company’s agents during regular business hours and at the Company’s principal offices, and timely
furnishing or causing to be furnished such certificates, letters and opinions from the Company, its officers and its agents, as
the Managers may reasonably request.


 


(q)          The
Company consents to the Managers trading in the Common Stock for the Managers’ own accounts and for the account of their
clients at the same time as sales of the Shares occur pursuant to this Agreement or pursuant to a Terms Agreement.


 


(r)          The
Company will disclose in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, as applicable, the number of Shares
sold through the Managers under this Agreement, the Net Proceeds to the Company and the compensation paid by the Company with respect
to sales of Shares pursuant to this Agreement during the relevant quarter.


 




    	 	22	 



     


    

 


(s)          If
to the knowledge of the Company, the conditions set forth in Section 6(a), 6(g) or 6(h) shall not be true and correct on the applicable
Settlement Date, the Company will promptly notify the applicable Managers of any such condition that is not true or correct.


 


(t)          Each
acceptance by the Company of an offer to purchase the Shares hereunder, and each execution and delivery by the Company of a Terms
Agreement, shall be deemed to be an affirmation to each Manager that the representations and warranties of the Company contained
in or made pursuant to this Agreement are true and correct as of the date of such acceptance or of such Terms Agreement as though
made at and as of such date, and an undertaking that such representations and warranties will be true and correct as of the Settlement
Date for the Shares relating to such acceptance or as of the Time of Delivery relating to such sale, as the case may be, as though
made at and as of such date (except that such representations and warranties shall be deemed to relate to the Registration Statement
and the Prospectus as amended and supplemented relating to such Shares).


 


(u)          The
Company shall ensure that there are at all times sufficient shares of Common Stock to provide for the issuance, free of any preemptive
rights, out of its authorized but unissued shares of Common Stock or shares of Common Stock held in treasury, of the maximum aggregate
number of Shares authorized for issuance by the Board pursuant to the terms of this Agreement. The Company will use its commercially
reasonable efforts to cause the Shares to be listed for trading on Nasdaq and to maintain such listing.


 


(v)         During
any period when the delivery of a prospectus relating to the Shares is required (including in circumstances where such requirement
may be satisfied pursuant to Rule 172) to be delivered under the Securities Act, the Company will file all documents required to
be filed with the Commission pursuant to the Exchange Act within the time periods required by the Exchange Act and the regulations
thereunder.


 


(w)         The
Company shall cooperate with the Managers and use its reasonable efforts to permit the Shares to be eligible for clearance and
settlement through the facilities of DTC.


 


(x)          The
Company will apply the Net Proceeds from the sale of the Shares in the manner set forth in the Prospectus.


 




    	 	23	 



     


    

 


5.           Payment
of Expenses.


 


(a)          The
Company agrees to pay the costs and expenses incident to the performance of its obligations under this Agreement, whether or not
the transactions contemplated hereby are consummated, including without limitation: (i) the preparation, printing or reproduction
and filing with the Commission of the Registration Statement (including financial statements and exhibits thereto), the Prospectus
and each Issuer Free Writing Prospectus, and each amendment or supplement to any of them; (ii) the printing (or reproduction)
and delivery (including postage, air freight charges and charges for counting and packaging) of such copies of the Registration
Statement, the Prospectus, and each Issuer Free Writing Prospectus, and all amendments or supplements to any of them, as may, in
each case, be reasonably requested for use in connection with the offering and sale of the Shares; (iii) the preparation,
printing, authentication, issuance and delivery of certificates for the Shares, including any stamp or transfer taxes in connection
with the original issuance and sale of the Shares; (iv) the printing (or reproduction) and delivery of this Agreement, any
blue sky memorandum and all other agreements or documents printed (or reproduced) and delivered in connection with the offering
of the Shares; (v) the registration of the Shares under the Exchange Act and the listing of the Shares on Nasdaq; (vi) any
registration or qualification of the Shares for offer and sale under the securities or blue sky laws of the several states (including
filing fees and the reasonable fees and expenses of counsel for the Managers relating to such registration and qualification);
(vii) any filings required to be made with the Financial Industry Regulatory Authority, Inc. (“FINRA”)
(including filing fees and the reasonable fees and expenses of counsel for the Managers relating to such filings); (viii) the
transportation and other expenses incurred by or on behalf of Company representatives in connection with presentations to prospective
purchasers of the Shares; (ix) the fees and expenses of the Company’s accountants and the fees and expenses of counsel
(including local and special counsel) for the Company; (x) the reasonable documented out-of-pocket expenses of the Managers, including
the reasonable fees, disbursements and expenses of counsel for the Managers in connection with this Agreement and the Registration
Statement and ongoing services in connection with the transactions contemplated hereunder, in an amount not to exceed $50,000;
and (xi) all other costs and expenses incident to the performance by the Company of its obligations hereunder.


 


6.           Conditions
to the Obligations of the Managers. The obligations of the Managers under this Agreement and any Terms Agreement shall be subject
to (i) the accuracy of the representations and warranties on the part of the Company contained herein as of the Execution Time,
each Representation Date, and as of each Applicable Time, Settlement Date and Time of Delivery, (ii) to the performance by the
Company of its obligations hereunder and (iii) the following additional conditions:


 


(a)          The
Prospectus, and any supplement thereto, required by Rule 424 to be filed with the Commission have been filed in the manner and
within the time period required by Rule 424(b) with respect to any sale of Shares; any material required to be filed by the
Company pursuant to Rule 433(d) under the Securities Act, shall have been filed with the Commission within the applicable time
periods prescribed for such filings by Rule 433; and no stop order suspending the effectiveness of the Registration Statement or
any notice objecting to its use shall have been issued and no proceedings for that purpose shall have been instituted or threatened.


 


(b)          The
Company shall have requested and caused the Company Counsel to furnish to the Managers (or, in the case of a Representation Date
of the type described in Section 4(k)(iii), the relevant Manager party to such Terms Agreement), on every date specified in Section
4(l) of this Agreement, its opinion, dated as of such date and addressed to such Manager(s), in form and substance reasonably satisfactory
to such Manager(s).


 




    	 	24	 



     


    

 


(c)          The
Company shall have requested and caused the Company IP Counsel to furnish to the Managers (or, in the case of a Representation
Date of the type described in Section 4(k)(iii), the relevant Manager party to such Terms Agreement), on every date specified in
Section 4(m) of this Agreement, its opinion, dated as of such date and addressed to such Manager(s), in form and substance reasonably
satisfactory to such Manager(s).


 


(d)          The
Managers (or, in the case of a Representation Date of the type described in Section 4(k)(iii), the relevant Manager party to such
Terms Agreement) shall have received from Goodwin Procter LLP, counsel for the Managers, on every date specified in Section 4(n)
of this Agreement, such opinion or opinions, dated as of such date and addressed to such Manager(s), with respect to the issuance
and sale of the Shares, the Registration Statement, the Disclosure Package, the Prospectus (together with any supplement thereto)
and other related matters as such Manager(s) may reasonably require, and the Company shall have furnished to such counsel such
documents as they request for the purpose of enabling them to pass upon such matters.


 


(e)          The
Company shall have furnished or caused to be furnished to the Managers (or, in the case of a Representation Date of the type described
in Section 4(k)(iii), the relevant Manager party to such Terms Agreement), on every date specified in Section 4(k) of this Agreement,
a certificate of the Company, signed by the Chairman of the Board or the President or Chief Executive Officer and the principal
financial or accounting officer of the Company, dated as of such date, to the effect that the signers of such certificate have
carefully examined the Registration Statement, the Disclosure Package and the Prospectus and any supplements or amendments thereto
and this Agreement and that:


 


(i)          the
representations and warranties of the Company in this Agreement are true and correct on and as of such date with the same effect
as if made on such date and the Company has complied with all the agreements and satisfied all the conditions on its part to be
performed or satisfied at or prior to such date;


 


(ii)         no
stop order suspending the effectiveness of the Registration Statement or any notice objecting to its use has been issued and no
proceedings for that purpose have been instituted or, to the Company’s knowledge, threatened; and


 


(iii)        since
the date of the most recent financial statements included in the Disclosure Package, there has been no Material Adverse Effect,
except as set forth in or contemplated in the Disclosure Package and the Prospectus.


 


(f)           The
Company shall have requested and caused the Accountants to have furnished to the Managers (or, in the case of a Representation
Date of the type described in Section 4(k)(iii), the relevant Manager party to such Terms Agreement), on every date specified in
Section 4(o) hereof and to the extent requested by the Manager(s) in connection with any offering of the Shares, letters (which
may refer to letters previously delivered to such Manager(s)), dated as of such date, in form and substance reasonably satisfactory
to such Manager(s).


 




    	 	25	 



     


    

 


(g)          Since
the respective dates as of which information is disclosed in the Registration Statement, the Disclosure Package and the Prospectus,
except as otherwise stated therein, there shall not have been (i) any change or decrease specified in the letter or letters
referred to in paragraph (e) of this Section 6 or (ii) any change, or any development involving a prospective change,
in or affecting the condition (financial or otherwise), earnings, business or properties of the Company and its subsidiaries taken
as a whole, whether or not arising from transactions in the ordinary course of business, except as set forth in or contemplated
in the Disclosure Package (exclusive of any amendment or supplement thereto) the effect of which, in any case referred to in clause (i)
or (ii) above, is, in the sole judgment of the Managers, so material and adverse as to make it impractical or inadvisable to proceed
with the offering or delivery of the Shares as contemplated by the Registration Statement (exclusive of any amendment thereof),
the Disclosure Package and the Prospectus (exclusive of any amendment or supplement thereto).


 


(h)          Between
the Execution Time and the time of any sale of Shares through a Manager, there shall not have been any decrease in the rating of
any of the Company’s debt securities by any “nationally recognized statistical rating organization” (as defined
for purposes of Rule 436(g) under the Securities Act) or any notice given of any intended or potential decrease in any such
rating or of a possible change in any such rating that does not indicate the direction of the possible change.


 


(i)           FINRA
shall not have raised any objection with respect to the fairness and reasonableness of the terms and arrangements under this Agreement.


 


(j)           The
Shares shall have been listed and admitted and authorized for trading on Nasdaq, and satisfactory evidence of such actions shall
have been provided to the Managers.


 


(k)          Prior
to each Settlement Date and Time of Delivery, as applicable, the Company shall have furnished to the Managers such further information,
certificates and documents as the Managers may reasonably request.


 


If any of the conditions
specified in this Section 6 shall not have been fulfilled when and as provided in this Agreement, or if any of the opinions
and certificates mentioned above or elsewhere in this Agreement shall not be reasonably satisfactory in form and substance to any
Managers and counsel for the Managers, this Agreement, as it relates to such Manager, and all obligations of such Manager hereunder
may be canceled at, or at any time prior to, any Settlement Date or Time of Delivery, as applicable, by such Manager. Notice of
such cancellation shall be given to the Company in writing or by telephone or facsimile confirmed in writing.


 




    	 	26	 



     


    

 


The documents required to
be delivered by this Section 6 shall be delivered at the office of Goodwin Procter LLP, counsel for the Managers, at 620 Eighth
Avenue, New York, New York 10018, on each such date as provided in this Agreement.


 


7.           Indemnification
and Contribution.


 


(a)          The
Company agrees to indemnify and hold harmless the Managers, the directors, officers, employees, affiliates and agents of the Managers
and each person who controls any Manager within the meaning of either the Securities Act or the Exchange Act against any and all
losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Securities
Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the registration statement for the registration of the Shares as originally filed or
in any amendment thereof, or in the Base Prospectus, the Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus,
or in any amendment thereof or supplement thereto or arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary in order to make the statements therein not misleading, and agrees to
reimburse each such indemnified party, as incurred, for any documented legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company
will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon
any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity
with written information furnished to the Company by the Managers specifically for inclusion therein. This indemnity agreement
will be in addition to any liability that the Company may otherwise have. The Company acknowledges that the last two sentences
of the first paragraph under the heading “Plan of Distribution” in the Prospectus Supplement and the name and contact
information of the Managers in the Prospectus Supplement and the Prospectus constitute the only information furnished in writing
by or on behalf of the Managers for inclusion in the Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus.


 


(b)          The
Managers, severally and not jointly, agree to indemnify and hold harmless the Company, each of its directors, each of its officers
who signs the Registration Statement, and each person who controls the Company within the meaning of either the Securities Act
or the Exchange Act, to the same extent as the foregoing indemnity from the Company to each Manager, but only with reference to
written information relating to a Manager furnished to the Company by or on behalf of such Manager specifically for inclusion in
the documents referred to in the foregoing indemnity. This indemnity agreement will be in addition to any liability which any Manager
may otherwise have.


 




    	 	27	 



     


    

 


(c)          Promptly
after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party under this Section 7, notify the indemnifying
party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it
from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and
such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not,
in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation
provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s
choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is
sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel
retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall
be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel
to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including
local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the
use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of
interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and
the indemnifying party and the indemnified party shall have reasonably concluded, based on advice of counsel, that there may be
legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the
indemnifying party, (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party
to represent the indemnified party within a reasonable time after notice of the institution of such action or (iv) the indemnifying
party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying
party will not, without the prior written consent of the indemnified parties (such consent not to be unreasonably withheld, conditioned
or delayed), settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified
parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent: (i) includes an
unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding and (ii)
does not include an admission of fault.


 




    	 	28	 



     


    

 


(d)          In
the event that the indemnity provided in paragraph (a), (b) or (c) of this Section 7 is unavailable to or insufficient
to hold harmless an indemnified party for any reason, the Company and each Manager agree to contribute to the aggregate losses,
claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending
the same) (collectively “Losses”) to which the Company and the Managers may be subject in such proportion as
is appropriate to reflect the relative benefits received by the Company on the one hand and by any Managers on the other from the
offering of the Shares. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the Company
and the Managers severally shall contribute in such relative proportions as is appropriate to reflect not only such relative benefits
but also the relative fault of the Company on the one hand and of the Managers on the other in connection with the statements or
omissions which resulted in such Losses as well as any other relevant equitable considerations. Benefits received by the Company
shall be deemed to be equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits
received by the Managers shall be deemed to be equal to the gross compensation received by such Managers with respect to the Shares
purchased under this Agreement, in each case as determined by this Agreement or any applicable Terms Agreement. Relative fault
shall be determined by reference to, among other things, whether any untrue or any alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information provided by the Company on the one hand or
the Managers on the other, the intent of the parties and their relative knowledge, access to information and opportunity to correct
or prevent such untrue statement or omission. The Company and each Manager agree that it would not be just and equitable if contribution
were determined by pro rata allocation or any other method of allocation which does not take account of the equitable considerations
referred to above. Notwithstanding the provisions of this paragraph (d), in no event shall any Manager be required to contribute
any amount in excess of the amount by which the gross compensation applicable to the Shares purchased by such Managers hereunder
exceeds the amount of any damages that such Manager has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 7, each person who controls a Manager within the meaning of either the Securities Act or the
Exchange Act and each director, officer, employee, affiliate and agent of a Manager shall have the same rights to contribution
as any Manager, and each person who controls the Company within the meaning of either the Securities Act or the Exchange Act, each
officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights
to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).


 


8.           Termination.


 


(a)          The
Company shall have the right, by giving written notice as hereinafter specified, to terminate the provisions of this Agreement
relating to the solicitation of offers to purchase the Shares in its sole discretion at any time. Any such termination shall be
without liability of any party to any other party except that (i) if Shares have been sold through any Manager for the Company,
then Section 4(t) shall remain in full force and effect, (ii) with respect to any pending sale, through such Manager for the Company,
the obligations of the Company, including in respect of compensation of the Managers, shall remain in full force and effect notwithstanding
the termination and (iii) the provisions of Sections 2, 5, 7, 9, 10, 12 and 14 of this Agreement shall remain in full force and
effect notwithstanding such termination.


 


(b)          Each
Manager shall have the right, by giving written notice as hereinafter specified, to terminate its own obligations under the provisions
of this Agreement relating to the solicitation of offers to purchase the Shares in its sole discretion at any time. Any such termination
shall have no effect on the obligations of any other Manager under this Agreement and shall be without liability of any party to
any other party except that the provisions of Sections 2, 5, 7, 9, 10, 12 and 14 of this Agreement shall remain in full force and
effect with respect to such Managers notwithstanding such termination.


 




    	 	29	 



     


    

 


(c)          This
Agreement shall remain in full force and effect until the earlier of (i) its termination pursuant to Section 8(a) above or otherwise
by mutual agreement of all of the parties and (ii) the termination of the obligations of each Manager pursuant to Section 8(b)
above; provided that any such termination by mutual agreement shall in all cases be deemed to provide that Sections 2, 5,
7 and 9 shall remain in full force and effect.


 


(d)          Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided that such
termination shall not be effective until the close of business on the date of receipt of such notice by any Manager or the Company,
as the case may be. If such termination shall occur prior to the Settlement Date or Time of Delivery for any sale of the Shares,
such sale shall settle in accordance with the provisions of Section 3(a)(vii) of this Agreement.


 


(e)          In
the case of any purchase of Shares by any Manager pursuant to a Terms Agreement, the obligations of such Manager pursuant to such
Terms Agreement shall be subject to termination, in the absolute discretion of such Manager, by notice given to the Company prior
to the Time of Delivery relating to such Shares, if at any time prior to such delivery and payment (i) trading in the Company’s
Common Stock shall have been suspended by the Commission or Nasdaq or trading in securities generally on the NYSE or Nasdaq shall
have been suspended or limited or minimum prices shall have been established on either of such exchanges, (ii) a banking moratorium
shall have been declared either by Federal or New York State authorities or (iii) there shall have occurred any outbreak or
escalation of hostilities, declaration by the United States of a national emergency or war, or other calamity or crisis the effect
of which on financial markets is such as to make it, in the sole judgment of such Manager, impractical or inadvisable to proceed
with the offering or delivery of the Shares as contemplated by the Prospectus (exclusive of any amendment or supplement thereto).


 


9.           Representations
and Indemnities to Survive. The respective agreements, representations, warranties, indemnities and other statements of the
Company or its officers and of the Managers set forth in or made pursuant to this Agreement will remain in full force and effect,
regardless of any investigation made by the Managers or the Company or any of the officers, directors, employees, affiliates, agents
or controlling persons referred to in Section 7 hereof, and will survive delivery of and payment for the Shares.


 


10.         Notices.
All communications hereunder will be in writing and effective only on receipt, and, if sent to the Managers, will be mailed, delivered
or telefaxed to the (i) Citigroup Global Markets Inc. General Counsel (fax no.: (646) 291-1469) and confirmed to the General
Counsel, Citigroup Global Markets Inc., at 388 Greenwich Street, New York, New York, 10013, Attention: General Counsel and (ii)
Cantor Fitzgerald & Co. General Counsel (fax no.: (212) 829-4708) and confirmed to the General Counsel, Cantor Fitzgerald
& Co., at 499 Park Avenue, New York, New York, 10022, Attention: General Counsel; or, if sent to the Company, will be mailed,
delivered or telefaxed to (781) 577-5300 and confirmed to it at 950 Winter Street, Waltham Massachusetts 02451, Attention: Chief
Executive Officer.


 


11.         Successors.
This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the officers,
directors, employees, agents and controlling persons referred to in Section 7 hereof, and no other person will have any right
or obligation hereunder.


 




    	 	30	 



     


    

 


12.         No
Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and sale of the Shares pursuant to this Agreement is
an arm’s-length commercial transaction between the Company, on the one hand, and the Managers and any affiliate through which
any of them may be acting, on the other, (b) the Managers are acting solely as sales agents and/or principals in connection with
the purchase and sale of the Company’s securities and not as a fiduciary of the Company and (c) the Company’s engagement
of the Managers in connection with the offering and the process leading up to the offering is as independent contractors and not
in any other capacity. Furthermore, the Company agrees that it is solely responsible for making its own judgments in connection
with the offering (irrespective of whether the Managers have advised or is currently advising the Company on related or other matters).
The Company agrees that it will not claim that the Managers have rendered advisory services of any nature or respect, or owe an
agency, fiduciary or similar duty to the Company, in connection with such transaction or the process leading thereto.


 


13.         Integration.
This Agreement and any Terms Agreement supersede all prior agreements and understandings (whether written or oral) between the
Company and the Managers with respect to the subject matter hereof.


 


14.         Applicable
Law. This Agreement and any Terms Agreement will be governed by and construed in accordance with the laws of the State of New
York applicable to contracts made and to be performed within the State of New York.


 


15.         Waiver
of Jury Trial. The Company hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Agreement, any Terms Agreement or the transactions
contemplated hereby or thereby.


 


16.         Counterparts.
This Agreement and any Terms Agreement may be signed in one or more counterparts, each of which shall constitute an original and
all of which together shall constitute one and the same agreement.


 


17.         Headings.
The section headings used in this Agreement and any Terms Agreement are for convenience only and shall not affect the construction
hereof.


 


18.         Definitions.
The terms that follow, when used in this Agreement and any Terms Agreement, shall have the meanings indicated.


 


“Applicable
Time” shall mean, with respect to any Shares, the time of sale of such Shares pursuant to this Agreement or any relevant
Terms Agreement.


 


“Base
Prospectus” shall mean the base prospectus referred to in Section 2(a) above contained in the Registration Statement
at the Execution Time.


 


“Business
Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions
or trust companies are authorized or obligated by law to close in New York City.


 


“Commission”
shall mean the Securities and Exchange Commission.


 




    	 	31	 



     


    

 


“Disclosure
Package” shall mean (i) the Base Prospectus, (ii) the Prospectus Supplement, (iii) the Issuer Free Writing Prospectuses,
if any, identified in Schedule I hereto, (iv) the public offering price of Shares sold at the relevant Applicable Time and (v)
any other Free Writing Prospectus that the parties hereto shall hereafter expressly agree in writing to treat as part of the Disclosure
Package.


 


“Effective
Date” shall mean each date and time that the Registration Statement, any post-effective amendment or amendments thereto
and any Rule 462(b) Registration Statement became or becomes effective.


 


“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.


 


“Execution
Time” shall mean the date and time that this Agreement is executed and delivered by the parties hereto.


 


“Free
Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405.


 


“Issuer
Free Writing Prospectus” shall mean an issuer free writing prospectus, as defined in Rule 433.


 


“Prospectus”
shall mean the Base Prospectus, as supplemented by the Prospectus Supplement.


 


“Prospectus
Supplement” shall mean the most recent prospectus supplement relating to the Shares that was first filed pursuant to
Rule 424(b) at or prior to the Execution Time.


 


“Registration
Statement” shall mean the registration statement referred to in Section 2(a) above, including exhibits and financial
statements and any prospectus supplement relating to the Shares that is filed with the Commission pursuant to Rule 424(b) and deemed
part of such registration statement pursuant to Rule 430B, as amended on each Effective Date and, in the event any post-effective
amendment thereto becomes effective, shall also mean such registration statement as so amended or such Rule 462(b) Registration
Statement, as the case may be.


 


“Rule
158”, “Rule 163”, “Rule 164”, “Rule 172”, “Rule 405”,
“Rule 415”, “Rule 424”, “Rule 430B” and “Rule 433”
refer to such rules under the Securities Act.


 


“Rule 462(b)
Registration Statement” shall mean a registration statement and any amendments thereto filed pursuant to Rule 462(b)
relating to the offering covered by the registration statement referred to in Section 2(a) hereof.


 


“Securities
Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.


 


[Remainder of Page Intentionally
Left Blank]


 




    	 	32	 



     


    

 


If the foregoing is in accordance
with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this letter and
your acceptance shall represent a binding agreement among the Company and the Managers.


 


	 	Very truly yours,
	 	 
	 	ELOXX PHARMACEUTICALS, INC.


 


	 	By:	/s/ Robert E. Ward
	 	 	Name: Robert E. Ward
	 	 	Title: Chief Executive Officer


 


The foregoing Agreement is

hereby confirmed and accepted

as of the date first written above.


 


CITIGROUP GLOBAL MARKETS INC.


 


	By:	/s/ Bradley Wolff	 
	 	Name: Bradley Wolff	 
	 	Title: Managing Director, Head of West Coast Life Sciences 	 



 


CANTOR
FITZGERALD & CO.


 


	By:	/s/ Mark Kaplan	 
	 	Name: Mark Kaplan	 
	 	Title: Global COO	 


 




    	 	 	 



     


    

 


SCHEDULE I


 


Schedule of Free Writing Prospectuses included
in the Disclosure Package


 


None.


 




    	 	 	 



     


    

 


ANNEX
I


 


ELOXX
Pharmaceuticals, inc.


 


Common Stock


 


Terms
Agreement


 


______, 20__


 


[Citigroup Global Markets Inc.


388 Greenwich Street


New York, New York, 10013]


[Cantor Fitzgerald & Co.


499 Park Avenue


New York, New York 10022]


 


Ladies and Gentleman:


 


Eloxx Pharmaceuticals, Inc. (the “Company”)
proposes, subject to the terms and conditions stated herein and in the Equity Distribution Agreement, dated November [●],
2018 (the “Equity Distribution Agreement”), between the Company, on the one hand, and Citigroup Global Markets
Inc. and Cantor Fitzgerald & Co. (together, the “Managers”), on the other, to issue and sell to [Citigroup
Global Markets Inc.][Cantor Fitzgerald & Co.] the securities specified in Schedule I hereto (the “Purchased Shares”).


 


Each of the provisions of the Equity Distribution
Agreement not specifically related to the solicitation by the Managers, as agents of the Company, of offers to purchase securities
is incorporated herein by reference in its entirety, and shall be deemed to be part of this Terms Agreement to the same extent
as if such provisions had been set forth in full herein. Each of the representations and warranties set forth therein shall be
deemed to have been made at and as of the date of this Terms Agreement and the Time of Delivery, except that each representation
and warranty in Section 2 of the Equity Distribution Agreement which makes reference to the Prospectus (as therein defined) shall
be deemed to be a representation and warranty as of the date of the Equity Distribution Agreement in relation to the Prospectus,
and also a representation and warranty as of the date of this Terms Agreement and the Time of Delivery in relation to the Prospectus
as amended and supplemented to relate to the Purchased Shares.


 


An amendment to the Registration Statement (as
defined in the Equity Distribution Agreement), or a supplement to the Prospectus, as the case may be, relating to the Purchased
Shares, in the form heretofore delivered to each Manager is now proposed to be filed with the Securities and Exchange Commission.


 


Subject to the terms and conditions set forth
herein and in the Equity Distribution Agreement which are incorporated herein by reference, the Company agrees to issue and sell
to [Citigroup Global Markets Inc.][Cantor Fitzgerald & Co.] and the latter agrees to purchase from the Company the number of
shares of the Purchased Shares at the time and place and at the purchase price set forth in the Schedule I hereto.


 




    	 	 	 



     


    

 


If the foregoing is in accordance with your understanding,
please sign and return to us a counterpart hereof, whereupon this Terms Agreement, including those provisions of the Equity Distribution
Agreement incorporated herein by reference, shall constitute a binding agreement between [Citigroup Global Markets Inc.][Cantor
Fitzgerald & Co.] and the Company.


 


	 	ELOXX PHARMACEUTICALS, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:


 


ACCEPTED as of the date

first written above.


 


[CITIGROUP GLOBAL MARKETS INC.]


[CANTOR FITZGERALD & CO.]


 


	By:	 	 
	 	Name:	 
	 	Title:	 


 




    	 	 	 



     


    

 


Schedule I to the Terms Agreement


 


Title of Purchased Shares:


Common Stock, par value $0.01 per share


 


Number of Shares of Purchased Shares:


 


Price to Public:


 


Purchase Price by [Citigroup Global Markets Inc.][Cantor Fitzgerald
& Co.]:


 


Method of and Specified Funds for Payment of Purchase Price:


By wire transfer to a bank account specified by the Company
in same day funds.


 


Method of Delivery:


Free delivery of the Shares to the Manager’s account
at The Depository Trust Company in return for payment of the purchase price.


 


Time of Delivery:


 


Closing Location:


 


Documents to be Delivered:


 


The following documents referred to in the Equity Distribution
Agreement shall be delivered as a condition to the closing at the Time of Delivery:


		(1)	The opinion referred to in Section 4(l).



		(2)	The opinion referred to in Section 4(m).



		(3)	The opinion referred to in Section 4(n)



		(4)	The accountants’ letters referred to in Section
4(o).



		(5)	The officers’ certificate referred to in Section
4(k).



		(6)	Such other documents as the Manager shall reasonably
request.



 




    	 	 	 



     


    

 


ANNEX II


 


Subsidiaries


 


		1)	Eloxx Pharmaceuticals Ltd., a private limited company organized under the laws of Israel