Exhibit 10.1


 


AKERNA
Corp.


common
stock sales agreement


 


September 28, 2022


 


A.G.P./Alliance Global Partners

590 Madison Avenue, 28th Floor

New York, NY 10022


 


Ladies and Gentlemen:


 


Akerna Corp., a Delaware corporation
(the “Company”), confirms its agreement (this “Agreement”) with A.G.P./Alliance Global Partners
(the “Sales Agent”), as follows:


 


1. Issuance and Sale of
Shares. The Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the conditions set
forth herein, it may issue and sell to or through the Sales Agent, acting as agent and/or principal, shares of the Company’s common
stock, par value $0.0001 per share (the “Common Stock”), having an aggregate offering price of up to $20 million (the
“Maximum Amount”), subject to the limitations set forth in Section 3(b) hereof. The issuance and sale of shares
of Common Stock to or through the Sales Agent will be effected pursuant to the Registration Statement (as defined below) filed, or to
be filed, by the Company in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations thereunder
(collectively, the “Securities Act”), with the U.S. Securities and Exchange Commission (the “Commission”)
and after such Registration Statement has been declared effective by the Commission, although nothing in this Agreement shall be construed
as requiring the Company to use the Registration Statement (as defined below) to issue the Common Stock.


 


Prior to the date of this
Agreement, the Company has filed with the Commission in accordance with the Securities Act a registration statement on Form S-3 (File
No. 333-256878), including a base prospectus, relating to certain securities, including the Common Stock, to be issued from time to time
by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions
of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (collectively, the “Exchange Act”).
The Company has prepared a prospectus supplement specifically relating to the offer and sale of Placement Shares (as defined below) pursuant
to this Agreement included as part of such registration statement (the “ATM Prospectus”). The Company will furnish
to the Sales Agent, for use by the Sales Agent, copies of the ATM Prospectus included as part of such registration statement, relating
to the Placement Shares. Except where the context otherwise requires, the various parts of such registration statement, at any given time,
each part as amended or supplemented as of such time, including all documents and exhibits filed as part thereof or incorporated by reference
therein, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to
Rule 424(b) under the Securities Act or deemed to be a part of such registration statement pursuant to Rules 430B or 462(b) of the Securities
Act, are herein called the “Registration Statement.” The base prospectus, including all documents incorporated therein
by reference, together with the ATM Prospectus, including all documents incorporated therein by reference, each of which is included in
the Registration Statement, as each may be supplemented by any additional prospectus supplement, in the form in which such prospectus
and/or ATM Prospectus have most recently been filed by the Company with the Commission, is herein called the “Prospectus.”
Any reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer to
and include the documents incorporated by reference therein, and any reference herein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include the filing
after the execution hereof of any document with the Commission deemed to be incorporated by reference therein. For purposes of this Agreement,
all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include any
copy filed with the Commission pursuant to the Electronic Data Gathering Analysis and Retrieval System or any successor thereto (collectively
“EDGAR”).


 






     


     


    

 


2. Placements. Each
time that the Company wishes to issue and sell the Common Stock through the Sales Agent, as agent, hereunder (each, a “Placement”),
it will notify the Sales Agent by email notice (or other method mutually agreed to in writing by the parties) (a “Placement Notice”)
containing the parameters in accordance with which it desires the Common Stock to be sold, which shall at a minimum include the number
of shares of Common Stock to be issued (the “Placement Shares”), the time period during which sales are requested to
be made, any limitation on the number of shares of Common Stock that may be sold in any one Trading Day (as defined in Section 3),
and any minimum price below which sales may not be made, a form of which containing such minimum sales parameters necessary is attached
hereto as Schedule 1. The Placement Notice shall originate from any of the individuals from the Company set forth on Schedule
2 (with a copy to each of the other individuals from the Company listed on such schedule) and shall be addressed to each of the
individuals from the Sales Agent set forth on Schedule 2, as such Schedule 2 may be amended from time to time.
The Placement Notice shall be effective upon receipt by the Sales Agent unless and until (i) in accordance with the notice requirements
set forth in Section 4, the Sales Agent declines to accept the terms contained therein for any reason, in its sole discretion,
(ii) the entire amount of the Placement Shares have been sold, (iii) in accordance with the notice requirements set forth in Section
4, the Company suspends or terminates the Placement Notice, (iv) the Company issues a subsequent Placement Notice with parameters
superseding those on the earlier dated Placement Notice, or (v) this Agreement has been terminated under the provisions of Section
11. The amount of any discount, commission or other compensation to be paid by the Company to the Sales Agent in connection with the
sale of the Placement Shares through the Sales Agent, as agent, shall be as set forth in Schedule 3. It is expressly acknowledged
and agreed that neither the Company nor the Sales Agent will have any obligation whatsoever with respect to a Placement or any Placement
Shares unless and until the Company delivers a Placement Notice to the Sales Agent and the Sales Agent does not decline such Placement
Notice pursuant to the terms set forth above, and then only upon the terms specified therein and herein. In the event of a conflict between
the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control.


 


3. Sale of Placement Shares
by the Sales Agent.


 


(a) Subject to the terms
and conditions herein set forth, upon the Company’s issuance of a Placement Notice, and unless the sale of the Placement Shares
described therein has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement, the Sales Agent,
as agent for the Company, will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable
state and federal laws, rules and regulations, and the rules of The Nasdaq Capital Market (the “Exchange”), for the
period specified in the Placement Notice, to sell such Placement Shares up to the amount specified by the Company in, and otherwise in
accordance with the terms of, such Placement Notice. If acting as agent hereunder, the Sales Agent will provide written confirmation to
the Company (including by email correspondence to each of the individuals of the Company set forth on Schedule 2, if receipt
of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) no later
than the opening of the Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares
hereunder, setting forth the number of Placement Shares sold on such day, the compensation payable by the Company to the Sales Agent pursuant
to Section 2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization of
the deductions made by the Sales Agent (as set forth in Section 5(a)) from the gross proceeds that it receives from such sales.
Subject to the terms of the Placement Notice, the Sales Agent may sell Placement Shares by any method permitted by law deemed to be an
“at the market” offering as defined in Rule 415 under the Securities Act, including without limitation sales made directly
on the Exchange, on any other existing trading market for the Common Stock or to or through a market maker. If expressly authorized by
the Company in a Placement Notice, the Sales Agent may also sell Placement Shares in privately negotiated transactions. Subject to Section
3(c) below, the Sales Agent may not purchase Placement Shares for its own account as principal, unless expressly authorized to do
so by the Company in a Placement Notice. The Company acknowledges and agrees that (i) there can be no assurance that the Sales Agent will
be successful in selling Placement Shares, and (ii) the Sales Agent will incur no liability or obligation to the Company or any other
person or entity if it does not sell Placement Shares for any reason other than a failure by the Sales Agent to use its commercially reasonable
efforts consistent with its normal trading and sales practices and applicable law and regulations to sell such Placement Shares as required
under this Section 3. For the purposes hereof, “Trading Day” means any day on which the Company’s Common
Stock is purchased and sold on the principal market on which the Common Stock is listed or quoted.


 






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(b) Under no circumstances
shall the Company cause or request the offer or sale of any Placement Shares if, after giving effect to the sale of such Placement Shares,
the aggregate number or gross sales proceeds of Placement Shares sold pursuant to this Agreement would exceed the lesser of: (i) the number
or dollar amount of shares of Common Stock registered pursuant to the Registration Statement pursuant to which the offering hereunder
is being made, (ii) the number of authorized but unissued and unreserved shares of Common Stock, (iii) the number or dollar amount of
shares of Common Stock permitted to be offered and sold by the Company under Form S-3 (including General Instruction I.B.6. of Form S-3,
if and for so long as applicable), (iv) the number or dollar amount of shares of Common Stock authorized from time to time to be issued
and sold under this Agreement by the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive
officer, and notified to the Sales Agent in writing, or (v) the number or dollar amount of shares of Common Stock for which the Company
has filed the ATM Prospectus or other prospectus or prospectus supplement thereto specifically relating to the offering of the Placement
Shares pursuant to this Agreement. Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares
pursuant to this Agreement at a price lower than the minimum price authorized from time to time by the Company’s board of directors,
a duly authorized committee thereof or a duly authorized executive committee, and notified to the Sales Agent in writing. Notwithstanding
anything to the contrary contained herein, the parties hereto acknowledge and agree that compliance with the limitations set forth in
this Section 3(b) on the number or dollar amount of Placement Shares that may be issued and sold under this Agreement from time
to time shall be the sole responsibility of the Company, and that the Sales Agent shall have no obligation in connection with such compliance.


 


(c) The Company acknowledges
and agrees that the Sales Agent has informed the Company that the Sales Agent may, to the extent permitted under the Securities Act and
the Exchange Act (including, without limitation, Regulation M promulgated thereunder), purchase and sell shares of Common Stock for its
own account while this Agreement is in effect, and shall be under no obligation to purchase Placement Shares on a principal basis pursuant
to this Agreement, except as otherwise agreed by the Sales Agent in a Placement Notice; provided, that no such purchase or sales
shall take place while a Placement Notice is in effect (except (i) as agreed by the Company and the Sales Agent in the Placement Notice
or (ii) to the extent the Sales Agent may engage in sales of Placement Shares purchased or deemed purchased from the Company as a “riskless
principal” or in a similar capacity); and, provided, further, that the Sales Agent acknowledges and agrees that, except
as expressly set forth in a Placement Notice, any such transactions are not being, and shall not be deemed to have been, undertaken at
the request or direction of, or for the account of, the Company, and that the Company has and shall have no control over any decision
by the Sales Agent to enter into any such transactions.


 


(d) During the term of this
Agreement and notwithstanding anything to the contrary herein, the Sales Agent agrees that in no event will the Sales Agent or its affiliates
engage in any market making, bidding, stabilization or other trading activity with regard to the Common Stock or related derivative securities
if such activity would be prohibited under Regulation M or other anti-manipulation rules under the Exchange Act.


 






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(e) The Sales Agent represents
and warrants that it is duly registered as a broker-dealer under the Financial Industry Regulatory Authority, Inc. (“FINRA”)
and the applicable statutes and regulations of each state in which the Placement Shares will be offered and sold, except such states in
which the Sales Agent is exempt from registration or such registration is not otherwise required in connection with the offer and sale
of the Placement Shares. The Sales Agent shall continue, for the term of this Agreement, to be duly registered as a broker-dealer under
FINRA and the applicable statutes and regulations of each state in which the Placement Shares will be offered and sold, except such states
in which it is exempt from registration or such registration is not otherwise required in connection with the offer and sale of the Placement
Shares.


 


4. Suspension of Sales.


 


(a) The Company or the Sales
Agent may, upon notice to the other party in writing (including by email correspondence to each of the individuals of the other party
set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the
notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence
to each of the individuals of the other party set forth on Schedule 2), suspend any sale of Placement Shares for a period
of time (a “Suspension Period”); provided, however, that such suspension shall not affect or impair either
party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt of such notice. While a Suspension
Period is in effect, any obligation under Sections 7(m), 7(n), and 7(o) with respect to the delivery of certificates,
opinions or comfort letters to the Sales Agent shall be suspended. Each of the parties agrees that no such notice under this Section
4 shall be effective against the other unless it is made to one of the individuals named on Schedule 2 hereto, as such
schedule may be amended from time to time. During a Suspension Period, the Company shall not issue any Placement Notices, and the Sales
Agent shall not sell any Placement Shares hereunder. The party that issued a suspension notice shall notify the other party in writing
of the Trading Day on which the Suspension Period shall expire not later than twenty-four (24) hours prior to such Trading Day. Following
the expiration of any Suspension Period, the Company will not issue any Placement Notices, and the Sales Agent will not be obligated to
sell any Placement Shares until such time as the Company has brought current its obligation under Sections 7(m), 7(n), and
7(o) with respect to the delivery of certificates, opinions or comfort letters to the Sales Agent.


 


(b) Notwithstanding any other
provision of this Agreement, during any period in which the Company is in possession of material non-public information, the Company and
the Sales Agent agree that (i) no sale of Placement Shares will take place, (ii) the Company shall not request the sale of any Placement
Shares, and (iii) the Sales Agent shall not be obligated to sell or offer to sell any Placement Shares.


 


5. Settlement.


 


(a) Settlement of Placement
Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will occur on the
second (2nd) Trading Day (or such earlier day as is industry practice for regular-way trading) following the respective Point of Sale
(as defined below) (each, a “Settlement Date”). The amount of proceeds to be delivered to the Company on a Settlement
Date against receipt of the Placement Shares sold (the “Net Proceeds”) will be equal to the aggregate sales price received
by the Sales Agent at which such Placement Shares were sold, after deduction for (i) the Sales Agent’s discount, commission or other
compensation for such sales payable by the Company pursuant to Section 2 hereof, (ii) any other amounts due and payable by the
Company to the Sales Agent hereunder pursuant to Section 7(g) hereof and (iii) any transaction fees imposed by any governmental
or self-regulatory organization in respect of such sales. “Point of Sale” means, for a Placement, the time at which
an acquiror of Placement Shares entered into a contract, binding upon such acquiror, to acquire such Placement Shares.


 






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(b) Delivery of Placement
Shares. On each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Placement Shares
being sold by crediting the Sales Agent’s or its designees’ account (provided the Sales Agent shall have given the
Company written notice of such designee prior to the Settlement Date) at The Depository Trust Company through its Deposit and Withdrawal
at Custodian System or by such other means of delivery as may be mutually agreed upon by the parties hereto, which in all cases shall
be freely tradable, transferable, registered shares in good deliverable form. On each Settlement Date, the Sales Agent will deliver the
related Net Proceeds in same day funds to an account designated by the Company on, or prior to, the Settlement Date. The Company agrees
that if the Company, or its transfer agent (if applicable), defaults in its obligation to deliver duly authorized Placement Shares on
a Settlement Date, in addition to and in no way limiting the rights and obligations set forth in Section 9(a) hereto, the Company
will (i) hold the Sales Agent, its directors, officers, members, partners, employees and agents of the Sales Agent, each broker dealer
affiliate of the Sales Agent, and each person, if any, who (A) controls the Sales Agent within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act or (B) is controlled by or is under common control with the Sales Agent (each, a “Sales
Agent Affiliate”), harmless against any loss, claim, damage, or reasonable expense (including reasonable legal fees and expenses),
as incurred, arising out of or in connection with such default by the Company or its transfer agent (if applicable) and (ii) pay to the
Sales Agent any commission, discount, or other compensation to which it would otherwise have been entitled absent such default.


 


6. Representations and
Warranties of the Company. The Company, on behalf of itself and its subsidiaries, represents and warrants to, and agrees with, the
Sales Agent that as of each Applicable Time (as defined in Section 22(a)):


 


(a) Compliance with Registration
Requirements. As of each Applicable Time other than the date of this Agreement, the Registration Statement has been declared effective
by the Commission under the Securities Act, and any 462(b) Registration Statement has become automatically effective pursuant to Rule
462(b) under the Securities Act. The Company has complied to the Commission’s satisfaction with all requests of the Commission for
additional or supplemental information related to the Registration Statement and the Prospectus. No stop order suspending the effectiveness
of the Registration Statement or any Rule 462(b) Registration Statement is in effect and no proceedings for such purpose or pursuant to
Section 8A of the Securities Act have been instituted or are pending or, to the knowledge of the Company, are contemplated or threatened
by the Commission. The Registration Statement and the offer and sale of the Placement Shares as contemplated hereby meet the requirements
of Rule 415 under the Securities Act and comply in all material respects with said Rule. In the section entitled “Plan of Distribution”
in the ATM Prospectus, the Company has named A.G.P./Alliance Global Partners as agent that the Company has engaged in connection with
the transactions contemplated by this Agreement. The Company was an “ineligible issuer” as defined in Rule 405 under the Securities
Act at the time of filing of the Registration Statement.


 






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(b) No Misstatement or
Omission. The Prospectus when filed will comply or complied and, as amended or supplemented, if applicable, will comply in all material
respects with the Securities Act. Each of the Registration Statement, any Rule 462(b) Registration Statement and any post-effective amendment
thereto, at the time it becomes effective, and as of each Applicable Time, if any, will comply in all material respects with the Securities
Act and did not and, as of each Applicable Time, if any, will not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus, as amended or supplemented,
as of its date, did not and, as of each Applicable Time, if any, will not contain 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.
The representations and warranties set forth in the two immediately preceding sentences do not apply to statements in or omissions from
the Registration Statement, any Rule 462(b) Registration Statement, or any post-effective amendment thereto, or the Prospectus, or any
amendments or supplements thereto, made in reliance upon and in conformity with information furnished to the Company in writing by the
Sale Agent expressly for use therein. The parties hereto agree that the information provided in writing by or on behalf of the Sales Agent
expressly for use in the Registration Statement, any Rule 462(b) Registration Statement, or any post-effective amendment thereto, or the
Prospectus, or any amendments or supplements thereto, consists solely of the material referred to in Schedule 5 hereto,
as updated from time to time.


 


(c) S-3 Eligibility.
At the time the Registration Statement and any Rule 462(b) Registration Statement was or will be filed with the Commission, at the time
the Registration Statement and any Rule 462(b) Registration Statement was or will be declared effective by the Commission, and at the
time the Company’s most recent Annual Report on Form 10-K was filed with the Commission, the Company met or will meet the then applicable
requirements for the use of Form S-3 under the Securities Act, including, but not limited to, General Instructions I.B.1. or I.B.6. of
Form S-3, if and for so long as applicable. The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has
not been a shell company for at least 12 calendar months previously.


 


(d) Distribution of Offering
Material by the Company. The Company has not distributed and will not distribute, prior to the completion of the Sales Agent’s
distribution of the Placement Shares, any offering material in connection with the offering and sale of the Placement Shares other than
the Prospectus or the Registration Statement.


 


(e) Emerging Growth Company.
The Company has been and is an “emerging growth company,” as defined in Section 2(a) of the Securities Act (an “Emerging
Growth Company”).


 


(f) Incorporated Documents.
The documents incorporated by reference in the Registration Statement and the Prospectus, when they were filed with the Commission, conformed
in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and none of such documents contained
any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; and any further documents so filed and incorporated by reference in the
Registration Statement and the Prospectus, when such documents are filed with the Commission, at each Point of Sale and each Settlement
Date, will conform in all material respects to the requirements of the Exchange Act and will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.


 


(g) Financial Statements.
The financial statements (including the related notes thereto) of the Company and its consolidated subsidiaries included or incorporated
by reference in the Registration Statement and the Prospectus comply in all material respects with the applicable requirements of the
Securities Act and the Exchange Act, as applicable and present fairly the financial position of the Company and its consolidated subsidiaries
as of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified; such financial
statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States
applied on a consistent basis throughout the periods covered thereby, and any supporting schedules included or incorporated by reference
in the Registration Statement and the Prospectus present fairly the information required to be stated therein; and the other financial
information included or incorporated by reference in the Registration Statement and the Prospectus has been derived from the accounting
records of the Company and its consolidated subsidiaries and presents fairly the information shown thereby; all disclosures included or
incorporated by reference in the Registration Statement and the Prospectus regarding “non-GAAP financial measures” (as such
term is defined by the rules and regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation
S-K of the Securities Act, to the extent applicable; and the pro forma financial information and the related notes thereto included or
incorporated by reference in the Registration Statement and the Prospectus have been prepared in accordance with the applicable requirements
of the Securities Act and the Exchange Act, as applicable, and the assumptions underlying such pro forma financial information are reasonable
and are set forth in the Registration Statement and the Prospectus.


 






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(h) No “Prohibited
Activities”. Except as preapproved in accordance with the requirements set forth in Section 10A of the Exchange Act, the accounting
firm that certified the financial statements and supporting schedules of the Company has not been engaged by the Company to perform any
“prohibited activities” (as defined in Section 10A of the Exchange Act).


 


(i) No Material Off-Balance
Sheet Arrangements. There are no material off-balance sheet arrangements (as defined in Item 303 of Regulation S-K) that have or are
reasonably likely to have a material current or future effect on the Company’s financial condition, results of operations, liquidity,
capital expenditures or capital resources.


 


(j) The Sales Agreement.
This Agreement has been duly authorized, executed and delivered by the Company, and constitutes a valid, legal, and binding obligation
of the Company, enforceable against the Company in accordance with its terms, except as rights to indemnity hereunder may be limited by
federal or state securities laws and except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the rights of creditors generally, and subject to general principles of equity. The Company has full corporate
power and authority to enter into this Agreement and to authorize, issue and sell the Placement Shares as contemplated by this Agreement.
This Agreement conforms in all material respects to the descriptions thereof in the Registration Statement and the Prospectus.


 


(k) No Material Adverse
Change. Since the date of the most recent financial statements of the Company included or incorporated by reference in the Registration
Statement and the Prospectus, (i) there has not been any change in the capital stock (other than the issuance of shares of Common Stock
upon exercise of stock options and warrants described as outstanding in, and the grant of options and awards under existing equity incentive
plans described in, the Registration Statement and the Prospectus), short-term debt or long-term debt of the Company or any of its subsidiaries,
or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock,
or any material adverse change, or any development involving a prospective material adverse change, in or affecting the business, properties,
management, financial position, stockholders’ equity, results of operations or prospects of the Company and its subsidiaries taken
as a whole; (ii) neither the Company nor any of its subsidiaries has entered into any transaction or agreement (whether or not in the
ordinary course of business) that is material to the Company and its subsidiaries taken as a whole or incurred any liability or obligation,
direct or contingent, that is material to the Company and its subsidiaries taken as a whole; and (iii) neither the Company nor any of
its subsidiaries has sustained any loss or interference with its business that is material to the Company and its subsidiaries taken as
a whole and that is either from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance
or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, except in each case as otherwise
disclosed in the Registration Statement and the Prospectus.


 






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(l) Organization and Good
Standing. The Company and each of its subsidiaries have been duly organized or formed, as applicable, and are validly existing and
in good standing (where such concept is recognized under the laws of the jurisdiction in which they are organized and formed) under the
laws of their respective jurisdictions of organization, are duly qualified to do business and are in good standing in each jurisdiction
in which their respective ownership or lease of property or the conduct of their respective businesses requires such qualification, and
have all power and authority necessary to own or hold their respective properties and to conduct the businesses in which they are engaged,
except where the failure to be so qualified or in good standing or have such power or authority would not, individually or in the aggregate,
have a material adverse effect on the business, properties, management, financial position, stockholders’ equity, results of operations
or prospects of the Company and its subsidiaries taken as a whole or on the performance by the Company of its obligations under this Agreement
(a “Material Adverse Effect”). The subsidiaries listed in Schedule 4 to this Agreement are the only subsidiaries
of the Company.


 


(m) Capitalization.
The Company has an authorized capitalization as set forth in the Registration Statement and the Prospectus under the heading “Description
of Capital Stock”; all the outstanding shares of capital stock of the Company have been duly and validly authorized and issued and
are fully paid and non-assessable and are not subject to any pre-emptive or similar rights; except as disclosed in the Registration Statement
and the Prospectus, there are no outstanding rights (including, without limitation, pre-emptive rights), warrants or options to acquire,
or instruments convertible into or exchangeable for, any shares of capital stock or other equity interest in the Company or any of its
subsidiaries, or any contract, commitment, agreement, understanding or arrangement of any kind relating to the issuance of any capital
stock of the Company or any such subsidiary, any such convertible or exchangeable securities or any such rights, warrants or options;
the capital stock of the Company conforms in all material respects to the description thereof contained in the Registration Statement
and the Prospectus; and all the outstanding shares of capital stock or other equity interests of each subsidiary owned, directly or indirectly,
by the Company have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly
by the Company, free and clear of any lien, charge, encumbrance, security interest, restriction on voting or transfer or any other claim
of any third party.


 


(n) Authorization of the
Placement Shares. The Placement Shares to be sold by the Sales Agent, acting as agent and/or principal for the Company, have been
duly authorized and, when issued and paid for as contemplated herein, will be validly issued, fully paid and non-assessable. The issuance
of the Placement Shares is not subject to the preemptive or other similar rights of any stockholder of the Company.


 


(o) No Applicable Registration
or Other Similar Rights. There are no persons with registration or other similar rights to have any equity or debt securities registered
for sale under the Registration Statement or included in the offering contemplated by this Agreement, except for such rights as have been
duly waived or terminated. Other than as set forth in this Agreement, no person has the right to act as an underwriter or as a financial
advisor to the Company in connection with the offer and sale of the Placement Shares hereunder, whether as a result of the filing or effectiveness
of the Registration Statement or the sale of the Placement Shares as contemplated hereby or otherwise.


 


(p) Stock Options.
The Company has not granted any stock options under its equity compensation plans.


 


(q) No Violation or Default.
Neither the Company nor any of its subsidiaries is (i) in violation of its charter or by-laws or similar organizational documents; (ii)
in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance
or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or
to which any of the property or assets of the Company or any of its subsidiaries is subject; or (iii) in violation of any law, statute,
rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental body, regulatory body, administrative agency
or other authority, body or agency having jurisdiction over the Company or its subsidiaries or any of their respective properties, assets
or operations, except, in the case of clauses (ii) and (iii) above, for any such default or violation that would not, individually or
in the aggregate, have a Material Adverse Effect.


 






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(r) No Conflicts.
The execution, delivery and performance by the Company of this Agreement, the
issuance and sale of the Placement Shares by the Company and the consummation by the Company of the transactions contemplated by this
Agreement or the Prospectus will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute
a default under, result in the termination, modification or acceleration of, or result in the creation or imposition of any lien, charge
or encumbrance upon any property, right or asset of the Company or any of its subsidiaries pursuant to, any indenture, mortgage, deed
of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company
or any of its subsidiaries is bound or to which any property, right or asset of the Company or any of its subsidiaries is subject, (ii)
result in any violation of the provisions of the charter or by-laws or similar organizational documents of the Company or any of its subsidiaries,
or (iii) result in the violation of any law, statute, rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental
body, regulatory body, administrative agency or other authority, body or agency having jurisdiction over the Company or its subsidiaries
or any of their respective properties, assets or operations, except, in the case of clauses (i) and (iii) above, for any such conflict,
breach, violation, default, lien, charge or encumbrance that would not, individually or in the aggregate, have a Material Adverse Effect.


 


(s) No Consents Required.
No consent, approval, authorization, order, license, registration or qualification of or with any court or arbitrator or governmental
or regulatory authority is required for the execution, delivery and performance by the Company of this Agreement, the issuance and sale
of the Placement Shares and the consummation of the transactions contemplated by this Agreement, except for the registration of the Placement
Shares under the Securities Act, and such consents, approvals, authorizations, orders and registrations or qualifications as may be required
by FINRA, the Exchange and under applicable state securities laws in connection with the distribution and sale of the Placement Shares
by the Sales Agent.


 


(t) FINRA Matters.
All of the information provided to the Sales Agent or to counsel for the Sales Agent by the Company, its counsel, its officers and directors
and the holders of any securities (debt or equity) or options to acquire any securities of the Company in connection with the offering
of the Placement Shares, is true, complete, correct and compliant in all material respects with FINRA’s rules, and any letters,
filings or other supplemental information provided to FINRA pursuant to FINRA rules or the National Association of Securities Dealers,
or NASD, Conduct Rules is true, complete, correct and compliant in all material respects.


 


(u) Legal Proceedings.
Except as described in the Registration Statement and the Prospectus, there are no legal, governmental or regulatory investigations, actions,
demands, claims, suits, arbitrations, inquiries or proceedings (“Legal Proceedings”) pending to which the Company or
any of its subsidiaries is or may be a party or to which any property of the Company or any of its subsidiaries is or may be the subject
that, individually or in the aggregate, if determined adversely to the Company or any of its subsidiaries, could reasonably be expected
to have a Material Adverse Effect; no such Legal Proceedings are threatened or, to the knowledge of the Company, contemplated by any governmental
or regulatory authority or threatened by others; and (i) there are no current or pending Legal Proceedings that are required under the
Securities Act to be described in the Registration Statement or the Prospectus that are not so described in the Registration Statement
and the Prospectus, and (ii) there are no statutes, regulations or contracts or other documents that are required under the Securities
Act to be filed as exhibits to the Registration Statement or described in the Registration Statement or the Prospectus that are not so
filed as exhibits to the Registration Statement or described in the Registration Statement and the Prospectus.


 






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(v) Independent Accountants.
Marcum LLP, which has certified certain financial statements of the Company and its subsidiaries and expressed its opinion with respect
to the financial statements (which term as used in this Agreement includes the related notes thereto) and any supporting schedules filed
with the Commission or incorporated by reference in the Registration Statement and included or incorporated by reference in the Prospectus,
is an independent public accounting firm as required by the Securities Act and the rules of the Public Company Accounting Oversight Board
(“PCAOB”).


 


(w) Title to Real and
Personal Property. The Company and its subsidiaries have good and marketable title in fee simple to, or have valid rights to lease
or otherwise use, all items of real and personal property that are material to the respective businesses of the Company and its subsidiaries,
in each case free and clear of all liens, encumbrances, claims and defects and imperfections of title except those that (i) do not materially
interfere with the use made and proposed to be made of such property by the Company and its subsidiaries or (ii) could not reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect.


 


(x) Title to Intellectual
Property. Except as disclosed in the Registration Statement and the Prospectus, the Company owns or possesses the valid right to use
all (i) valid and enforceable patents, patent applications, trademarks, trademark registrations, service marks, service mark registrations,
Internet domain name registrations, copyrights, copyright registrations, licenses, trade secret rights (“Intellectual Property
Rights”) and (ii) inventions, software, works of authorships, trademarks, service marks, trade names, databases, formulae, know
how, Internet domain names and other intellectual property (including trade secrets and other unpatented and/or unpatentable proprietary
confidential information, systems, or procedures) (collectively, “Intellectual Property Assets”) necessary to conduct
its business as currently conducted, and as proposed to be conducted and described in the Registration Statement and the Prospectus. The
Company has not received any notice of, nor is aware of, any infringement of or conflict with asserted rights of others with respect to
any Intellectual Property Rights or Intellectual Property Assets. Further, the Company has not received any opinion from its legal counsel
concluding that any activities of its business infringe, misappropriate, or otherwise violate, valid and enforceable Intellectual Property
Rights of any other person, and has not received written notice of any challenge, which is to its knowledge still pending, by any other
person to the rights of the Company with respect to any Intellectual Property Rights or Intellectual Property Assets owned or used by
the Company. To the Company’s knowledge, the Company’s business as now conducted does not give rise to any infringement of,
any misappropriation of, or other violation of, any valid and enforceable Intellectual Property Rights of any other person. All licenses
for the use of the Intellectual Property Rights described in the Registration Statement and the Prospectus are valid, binding upon, and
enforceable by or against the parties thereto in accordance with their terms. The Company has complied in all material respects with,
and is not in breach nor has received any asserted or threatened claim of breach of any Intellectual Property license, and the Company
has no knowledge of any breach or anticipated breach by any other person to any Intellectual Property license. No claim has been made
against the Company alleging the infringement by the Company of any patent, trademark, service mark, trade name, copyright, trade secret,
license in or other intellectual property right or franchise right of any person. The Company has taken all reasonable steps to protect,
maintain and safeguard its Intellectual Property Rights, including the execution of appropriate nondisclosure and confidentiality agreements.
The consummation of the transactions contemplated by this Agreement will not result in the loss or impairment of or payment of any additional
amounts with respect to, nor require the consent of any other person in respect of, the Company’s right to own, use, or hold for
use any of the Intellectual Property Rights as owned, used or held for use in the conduct of the business as currently conducted. The
Company has at all times complied with all applicable laws relating to privacy, data protection, and the collection and use of personal
information collected, used, or held for use by the Company in the conduct of the Company’s business. No claims have been asserted
or threatened against the Company alleging a violation of any person’s privacy or personal information or data rights and the consummation
of the transactions contemplated hereby will not breach or otherwise cause any violation of any law related to data privacy, data protection,
or the collection and use of personal information collected, used, or held for use by the Company in the conduct of the Company’s
business. The Company takes reasonable measures to ensure that such information is protected against unauthorized access, use, modification,
or other misuse. The Company has taken all necessary actions to obtain ownership of all works of authorship and inventions made by its
employees, consultants and contractors during the time they were employed by or under contract with the Company and which relate to the
Company’s business. All founders and key employees have signed confidentiality and invention assignment agreements with the Company.


 






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(y) No Undisclosed Relationships.
No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries, on the one hand, and the directors,
officers, stockholders, customers, suppliers or other affiliates of the Company or any of its subsidiaries, on the other, that is required
by the Securities Act to be described in each of the Registration Statement and the Prospectus and that is not so described in such documents.


 


(z) Company Not an “Investment
Company”. The Company is not and, after giving effect to the offering and sale of the Placement Shares and the application of
the proceeds thereof as described in the Registration Statement and the Prospectus, will not be required to register as an “investment
company” or an entity “controlled” by an “investment company” within the meaning of the Investment Company
Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Investment Company Act”).


 


(aa) Tax Law Compliance.
The Company and its subsidiaries have paid all federal, state, local and foreign taxes and filed all tax returns required to be paid or
filed through the date hereof; and except as otherwise disclosed in each of the Registration Statement and the Prospectus, there is no
tax deficiency that has been, or could reasonably be expected to be, asserted against the Company or any of its subsidiaries or any of
their respective properties or assets, except such as would not, individually or in the aggregate, have a Material Adverse Effect.


 


(bb) Licenses and Permits.
The Company and its subsidiaries possess all licenses, sub-licenses, certificates, permits and other authorizations issued by, and have
made all declarations and filings with, the appropriate 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 respective businesses as described in each
of the Registration Statement and the Prospectus, except where the failure to possess or make the same would not, individually or in the
aggregate, have a Material Adverse Effect; and except as described in each of the Registration Statement and the Prospectus, neither the
Company nor any of its subsidiaries has received notice of any revocation or modification of any such license, sub-license, certificate,
permit or authorization or has any reason to believe that any such license, sub-license, certificate, permit or authorization will not
be renewed in the ordinary course. The Company and its subsidiaries are in compliance with all statutes, rules and regulations applicable
to the ownership, testing, development, manufacture, packaging, processing, use, distribution, storage, import, export or disposal of
any product manufactured or distributed by the Company or its subsidiaries.


 


(cc) No Labor Disputes.
No labor disturbance by or dispute with employees of the Company or any of its subsidiaries exists or, to the knowledge of the Company,
is contemplated or threatened, and the Company is not aware of any existing or imminent labor disturbance by, or dispute with, the employees
of any of its or its subsidiaries’ principal suppliers, contractors or customers, except as would not have a Material Adverse Effect.
Neither the Company nor any of its subsidiaries has received any notice of cancellation or termination with respect to any collective
bargaining agreement to which it is a party.


 






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(dd) Certain Environmental
Matters. (i) The Company and its subsidiaries (x) are in compliance with all, and have not violated any, applicable federal, state,
local and foreign laws (including common law), rules, regulations, requirements, decisions, judgments, ordinance, policy, code, decrees,
orders and other legally enforceable requirements relating to pollution or the protection of human health or safety, the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), wildlife, natural resources, hazardous
or toxic substances or wastes, petroleum or petroleum products, asbestos-containing materials, mold, pollutants or contaminants (collectively,
“Environmental Laws”), (y) have received and are in compliance with all, and have not violated any, permits, licenses,
certificates or other authorizations or approvals required of them under any Environmental Laws to conduct their respective businesses,
and (z) have not received notice of any actual or potential liability or obligation under or relating to, or any actual or potential violation
of, any Environmental Laws, including for the investigation or remediation of any disposal or release of hazardous or toxic substances
or wastes, pollutants or contaminants, and have no knowledge of any event or condition that would reasonably be expected to result in
any such notice; (ii) there are no costs or liabilities associated with Environmental Laws of or relating to the Company or its subsidiaries,
except in the case of each of (i) and (ii) above, for any such matter, as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect; and (iii) except as described in each of the Registration Statement and the Prospectus, (x) there is
no proceeding that is pending, or that is known to be contemplated, against the Company or any of its subsidiaries under any Environmental
Laws in which a governmental entity is also a party, other than such proceeding regarding which it is reasonably believed no monetary
sanctions of $100,000 or more will be imposed, (y) the Company and its subsidiaries are not aware of any facts or issues regarding compliance
with Environmental Laws, or liabilities or other obligations under Environmental Laws or concerning hazardous or toxic substances or wastes,
pollutants or contaminants, that could reasonably be expected to have a material effect on the capital expenditures, earnings or competitive
position of the Company and its subsidiaries, and (z) none of the Company or its subsidiaries anticipates material capital expenditures
relating to any Environmental Laws.


 


(ee) Compliance with ERISA.
(i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), for which the Company or any member of its “Controlled Group” (defined as any entity, whether
or not incorporated, that is under common control with the Company within the meaning of Section 4001(a)(14) of ERISA or any entity that
would be regarded as a single employer with the Company under Section 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as
amended (the “Code”), would have any liability (each, a “Plan”) has been maintained in compliance
with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to, ERISA and
the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect
to any Plan excluding transactions effected pursuant to a statutory or administrative exemption; (iii) for each Plan that is subject to
the funding rules of Section 412 of the Code or Section 302 of ERISA, no Plan has failed (whether or not waived), or is reasonably expected
to fail, to satisfy the minimum funding standards (within the meaning of Section 302 of ERISA or Section 412 of the Code) applicable to
such Plan; (iv) no Plan is, or is reasonably expected to be, in “at risk status” (within the meaning of Section 303(i) of
ERISA) and no Plan that is a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA is in “endangered
status” or “critical status” (within the meaning of Sections 304 and 305 of ERISA); (v) the fair market value of the
assets of each Plan exceeds the present value of all benefits accrued under such Plan (determined based on those assumptions used to fund
such Plan); (vi) no “reportable event” (within the meaning of Section 4043(c) of ERISA and the regulations promulgated thereunder)
has occurred or is reasonably expected to occur; (vii) each Plan that is intended to be qualified under Section 401(a) of the Code is
so qualified, and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification; (viii)
neither the Company nor any member of the Controlled Group has incurred, nor reasonably expects to incur, any liability under Title IV
of ERISA (other than contributions to the Plan or premiums to the Pension Benefit Guarantee Corporation, in the ordinary course and without
default) in respect of a Plan (including a “multiemployer plan”, within the meaning of Section 4001(a)(3) of ERISA); and (ix)
none of the following events has occurred or is reasonably likely to occur: (A) a material increase in the aggregate amount of contributions
required to be made to all Plans by the Company or its Controlled Group affiliates in the current fiscal year of the Company and its Controlled
Group affiliates compared to the amount of such contributions made in the Company’s and its Controlled Group affiliates’ most
recently completed fiscal year; or (B) a material increase in the Company and its subsidiaries’ “accumulated post-retirement
benefit obligations” (within the meaning of Accounting Standards Codification Topic 715-60) compared to the amount of such obligations
in the Company and its subsidiaries’ most recently completed fiscal year, except in each case with respect to the events or conditions
set forth in (i) through (ix) hereof, as would not, individually or in the aggregate, have a Material Adverse Effect.


 






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(ff) Disclosure Controls.
Except as disclosed in the Registration Statement and the Prospectus, the Company and its subsidiaries maintain an effective system of
“disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that complies with the requirements
of the Exchange Act and that has been designed to ensure that information required to be disclosed by the Company in reports that it files
or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s
rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated to the Company’s
management as appropriate to allow timely decisions regarding required disclosure. The Company and its subsidiaries have carried out evaluations
of the effectiveness of their disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act.


 


(gg) Accounting Controls.
Except as disclosed in the Registration Statement and the Prospectus, the Company and its subsidiaries maintain systems of “internal
control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange
Act and have been designed by, or under the supervision of, their respective principal executive and principal financial officers, or
persons performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with GAAP. Except as disclosed in the Registration Statement and the Prospectus,
the Company and its subsidiaries maintain 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 GAAP 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) interactive
data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement and the Prospectus
fairly presents the information called for in all material respects and is prepared in accordance with the Commission’s rules and
guidelines applicable thereto. Based on the Company’s most recent evaluation of its internal controls over financial reporting pursuant
to Rule 13a-15(c) of the Exchange Act, except as disclosed in the Registration Statement and the Prospectus, there are no material weaknesses
in the Company’s internal controls. The Company’s auditors and the audit committee of the Board of Directors of the Company
have been advised of: (i) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial
reporting which have adversely affected or are reasonably likely to adversely affect the Company’s ability to record, process, summarize
and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a
significant role in the Company’s internal controls over financial reporting.


 






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(hh) Insurance. Except
as otherwise described in the Registration Statement and the Prospectus, the Company and its subsidiaries have insurance covering their
respective properties, operations, personnel and businesses, including business interruption insurance, which insurance is in amounts
and insures against such losses and risks as are adequate to protect the Company and its subsidiaries and their respective businesses;
and neither the Company nor any of its subsidiaries has (i) received notice from any insurer or agent of such insurer that capital improvements
or other expenditures are required or necessary to be made in order to continue such insurance or (ii) 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 at reasonable cost
from similar insurers as may be necessary to continue its business.


 


(ii) Privacy and Data
Protection. (i)(x) To the knowledge of Company, there has been no security breach or other compromise of any Personal Data (as defined
herein) and/or any of the Company’s information technology and computer systems, networks, hardware, software used to store and/or
process any Personal Data (collectively, “IT Systems and Data”), except as would not, individually or in the aggregate,
have a Material Adverse Effect, and (y) the Company has not been notified of, and has no knowledge of any event or condition that would
reasonably be expected to result in, any security breach or other compromise to their IT Systems and Data; (ii) the Company is presently
in compliance with all applicable laws or statutes and all applicable judgments, orders, rules and regulations of any court or arbitrator
or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems
and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification, if any, except
as would not, in the case of this clause (ii), individually or in the aggregate, have a Material Adverse Effect; and (iii) the Company
has implemented backup and disaster recovery technology consistent with industry standards and practices. “Personal Data”
means (i) a natural person’s name, street address, telephone number, email address, photograph, social security number, bank information,
or customer or account number; (ii) any information which would qualify as “personally identifying information” under the
Federal Trade Commission Act, as amended; (iii) Protected Health Information as defined by Health Insurance Portability and Accountability
Act, as amended; and (iv) any other piece of information that identifies such natural person, or his or her family, or identifies a specific
person’s health condition or sexual orientation.


 


(jj) No Unlawful Payments.
Neither the Company nor any of its subsidiaries nor any director, officer or employee of the Company or any of its subsidiaries nor any
director, officer, agent, employee, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries
has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity;
(ii) made or taken an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment or benefit to
any foreign or domestic government official or employee, including of any government-owned or controlled entity or of a public international
organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official
or candidate for political office; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as
amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or
anti-corruption law; or (iv) made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other unlawful benefit,
including, without limitation, any rebate, payoff, influence payment, kickback or other unlawful, or improper payment or benefit. The
Company and its subsidiaries have instituted, maintain and enforce, and will continue to maintain and enforce policies and procedures
designed to promote and ensure compliance with all applicable anti-bribery and anti-corruption laws.


 






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(kk) Compliance with Anti-Money
Laundering Laws. 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, including those of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, the applicable money laundering statutes of all jurisdictions where the Company or any of its subsidiaries conducts business,
the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by
any governmental agency (collectively, the “Anti-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 Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened.


 


(ll) No Conflicts with
Sanctions Laws.


 


i. Neither the
Company, nor any of its subsidiaries, directors, officers, or employees, nor, to the knowledge of the Company, any agent or affiliate
of the Company or any of its subsidiaries, or other person associated with or acting on behalf of the Company or any of its subsidiaries
is (i) currently the subject or the target of any sanctions administered or enforced by the U.S. government (including, without limitation,
the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) or the U.S. Department of State
and including, without limitation, the designation as a “specially designated national” or “blocked person”),
the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
“Sanctions”), nor is (ii) located, organized or resident in a country or territory that is the subject or the target
of Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea and Syria (each, a “Sanctioned Country”).


 


ii. The Company
will not, directly or indirectly, use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available
such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities or business
of or with any person that, at the time of such funding or facilitation, is the subject or the target of Sanctions, (ii) to fund or facilitate
any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any person (including
any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.


 


iii. For the past
five years, the Company and its subsidiaries have not engaged in and are not now engaged in, and will not engage in, any dealings or transactions
with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned
Country.


 


iv. The Company
has implemented and maintains in effect policies and procedures designed to ensure compliance by the Company, and the Company and its
subsidiaries, and their respective directors, officers and employees, and to the knowledge of the Company, the agents of the Company and
its subsidiaries, are in compliance with all applicable Sanctions, and are not knowingly engaged in any activity that would reasonably
be expected to result in the Company being designated as the subject or target of Sanctions.


 


(mm) Lending Relationship.
The Company (i) does not have any material lending or other relationship with any banking or lending affiliate of the Sales Agent and
(ii) does not intend to use any of the proceeds from the sale of the Placement Shares to repay any outstanding debt owed to any affiliate
of the Sales Agent.


 


(nn) No Restrictions on
Subsidiaries. No subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement or other instrument
to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution on such subsidiary’s
capital stock or similar ownership interest, from repaying to the Company any loans or advances to such subsidiary from the Company or
from transferring any of such subsidiary’s properties or assets to the Company or any other subsidiary of the Company.


 


(oo) No Broker’s
Fees. Neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding with any person (other
than this Agreement) that would give rise to a valid claim against the Company or any of its subsidiaries or the Sales Agent for a brokerage
commission, finder’s fee or like payment in connection with the offering and sale of the Placement Shares.


 


(pp) No Registration Rights.
No person has the right to require the Company or any of its subsidiaries to register any securities for sale under the Securities Act
by reason of the filing of the Registration Statement with the Commission, the issuance and sale of the Placement Shares by the Company.


 


(qq) No Price Stabilization
or Manipulation. Neither the Company, nor any of its subsidiaries, nor any of its or their respective directors, officers or, to the
knowledge of the Company, controlling persons has taken, directly or indirectly, any action designed to or that might reasonably be expected
to cause or result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of
the Common Stock.


 






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(rr) Related-Party Transactions.
There are no business relationships or related-party transactions involving the Company or any of its subsidiaries or any other person
required to be described in the Registration Statement and the Prospectus that have not been described as required.


 


(ss) No Outstanding Loans
or Other Indebtedness. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course
of business) or guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or
any of their respective family members, except as disclosed in the Prospectus. The Company has not directly or indirectly extended or
maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any
director or executive officer of the Company.


 


(tt) No Reliance.
The Company has not relied upon the Sales Agent or legal counsel for the Sales Agent for any legal, tax or accounting advice in connection
with the offering and sale of the Placement Shares.


 


(uu) Compliance with Laws.
The Company has not been advised, and has no reason to believe, that it and each of its subsidiaries are not conducting business in compliance
with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business, except where failure to be so
in compliance would not result in a Material Adverse Effect.


 


(vv) Sarbanes-Oxley Act.
Except as disclosed in the Registration Statement and the Prospectus, there is and has been no failure on the part of the Company or to
the knowledge of the Company any of the Company’s directors or officers, in their capacities as such, to comply in all material
respects with any applicable provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith
(the “Sarbanes- Oxley Act”), including Section 402 related to loans and Sections 302 and 906 related to certifications.


 


(ww) Exchange Listing.
The Common Stock is currently listed on the Exchange under the trading symbol “KERN”. Except as disclosed in the Registration
Statement and the Prospectus, the Company has not, in the 12 months preceding the date the first Placement Notice is given hereunder,
received notice from the Exchange to the effect that the Company is not in compliance with the listing or maintenance requirements. Except
as disclosed in the Registration Statement and the Prospectus, the Company has no reason to believe that it will not, in the foreseeable
future, continue to be in compliance with all such listing and maintenance requirements.


 






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(xx) Margin Rules.
Neither the issuance, sale and delivery of the Placement Shares nor the application of the proceeds thereof by the Company as described
in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve System
or any other regulation of such Board of Governors.


 


(yy) Continuous Offering
Agreements. Except for this Agreement, the Company is not party to any other equity distribution or sales agency agreement or other
similar arrangement with any other agent or any other representative in respect of any “at the market offering” or other continuous
equity offering transaction.


 


(zz) Forward-Looking Statements.
No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) included or
incorporated by reference in any of the Registration Statement and the Prospectus has been made or reaffirmed without a reasonable basis
or has been disclosed other than in good faith.


 


(aaa) No Material Defaults.
Neither the Company nor any of its subsidiaries has defaulted on any installment on indebtedness for borrowed money or on any rental on
one or more long-term leases, which defaults, individually or in the aggregate, could reasonably be expected to result in a Material Adverse
Effect.


 


(bbb) Statistical and
Market Data. Nothing has come to the attention of the Company that has caused the Company to believe that the statistical and market-related
data included or incorporated by reference in each of the Registration Statement and the Prospectus is not based on or derived from sources
that are reliable and accurate in all material respects.


 


(ccc) Conformity of Issuer
Free Writing Prospectus. Any “issuer free writing prospectus,” as defined in Rule 433 of the Securities Act, relating
to the Placement Shares (“Issuer Free Writing Prospectus”) conforms or will conform in all material respects to the
requirements of the Securities Act on the date of first use, and the Company has complied, or will comply, with any filing requirements
applicable to such Issuer Free Writing Prospectus pursuant to the Securities Act. Each Issuer Free Writing Prospectus, as of its issue
date and at all subsequent times through the completion of the public offer and sale of the Placement Shares, does not, did not and will
not include any information that conflicts, conflicted or will conflict with the information contained in the Registration Statement or
the Prospectus, including any document incorporated by reference therein that has not been superseded or modified. The Company has not
made any offer relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus without the prior written consent
of the Sales Agent. The Company has retained in accordance with the Securities Act all Issuer Free Writing Prospectuses that were not
required to be filed pursuant to the Securities Act.


 


(ddd) No Integration.
Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would cause the offer and sale of the Placement
Shares hereunder to be integrated with prior offerings by the Company for purposes of the Securities Act that would require the registration
of any such securities under the Securities Act.


 






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(eee) Broker-Dealer Status.
Neither the Company nor any of its subsidiaries (i) is required to register as a “broker” or “dealer” in accordance
with the provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls or is a “person
associated with a member” or “associated person of a member” (as defined in FINRA By-Laws, Article I) of any member
firm of FINRA. To the Company’s knowledge, there are no affiliations or associations between any member of FINRA and any of the
Company’s officers, directors or 5% or greater security holders, except as set forth in the Registration Statement.


 


Any certificate signed by
an officer of the Company and delivered to the Sales Agent or to counsel for the Sales Agent pursuant to or in connection with this Agreement
shall be deemed to be a representation and warranty by the Company to the Sales Agent as to the matters set forth therein. The Company
acknowledges that the Sales Agent and, for purposes of the opinions to be delivered pursuant to Section 7 hereof, counsel to the
Company and counsel to the Sales Agent will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents
to such reliance.


 


7. Covenants of the Company.
The Company covenants and agrees with the Sales Agent that:


 


(a) Registration
Statement Amendments. After the date of this Agreement and during any period in which a Prospectus relating to any Placement
Shares is required to be delivered by the Sales Agent under the Securities Act (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act), (i) the Company will notify the Sales Agent promptly of the time
when any subsequent amendment to the Registration Statement, other than documents incorporated by reference, has been filed with the
Commission and/or has become effective or any subsequent supplement to the Prospectus has been filed and of any request by the
Commission for any amendment or supplement to the Registration Statement or Prospectus or for additional information, (ii) the
Company will prepare and file with the Commission, promptly upon the Sales Agent’s request, any amendments or supplements to
the Registration Statement or Prospectus that, in the Sales Agent’s reasonable opinion, may be necessary or advisable in
connection with the distribution of the Placement Shares by the Sales Agent (provided, however, that the failure of
the Sales Agent to make such request shall not relieve the Company of any obligation or liability hereunder, or affect the Sales
Agent’s right to rely on the representations and warranties made by the Company in this Agreement, and provided, further,
that the only remedy the Sales Agent shall have with respect to the failure to make such filing shall be to cease making sales under
this Agreement until such amendment or supplement is filed); (iii) the Company will not file any amendment or supplement to the
Registration Statement or Prospectus, other than documents incorporated by reference, relating to the Placement Shares or a security
convertible into the Placement Shares unless a copy thereof has been submitted to the Sales Agent within a reasonable period of time
before the filing and the Sales Agent has not reasonably objected thereto (provided, however, that the failure of the
Sales Agent to make such objection shall not relieve the Company of any obligation or liability hereunder, or affect the Sales
Agent’s right to rely on the representations and warranties made by the Company in this Agreement, and provided, further,
that the only remedy the Sales Agent shall have with respect to the failure by the Company to obtain such consent shall be to cease
making sales under this Agreement); (iv) the Company will furnish to the Sales Agent at the time of filing thereof a copy of any
document that upon filing is deemed to be incorporated by reference into the Registration Statement or Prospectus, except for those
documents available via EDGAR; (v) the Company will cause each amendment or supplement to the Prospectus, other than documents
incorporated by reference, to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the
Securities Act (without reliance on Rule 424(b)(8) of the Securities Act) or, in the case of any documents incorporated by
reference, to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed (the
determination to file or not file any amendment or supplement with the Commission under this Section 7(a), based on the
Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company).


 






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(b) Notice of Commission
Stop Orders. The Company will advise the Sales Agent, promptly after it receives notice or obtains knowledge thereof, of the issuance
by the Commission of any stop order suspending the effectiveness of the Registration Statement or any notice objecting to, or other order
preventing or suspending the use of, the Prospectus, of the suspension of the qualification of the Placement Shares for offering or sale
in any jurisdiction, or of the initiation of any proceeding for any such purpose or any examination pursuant to Section 8(e) of the Securities
Act, or if the Company becomes the subject of a proceeding under Section 8A of the Securities Act in connection with the offering of the
Placement Shares; and the Company will promptly use its commercially reasonable efforts to prevent the issuance of any stop order or to
obtain its withdrawal if such a stop order should be issued. Until such time as any stop order is lifted, the Sales Agent shall cease
making offers and sales under this Agreement.


 


(c) Delivery of Prospectus;
Subsequent Changes. During any period in which a Prospectus relating to the Placement Shares is required to be delivered by the Sales
Agent under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act), the Company will comply with all requirements imposed upon it by the
Securities Act, as from time to time in force, and to file on or before their respective due dates all reports and any definitive proxy
or information statements required to be filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any
other provision of or under the Exchange Act. If during such period any event occurs as a result of which the Prospectus as then amended
or supplemented would include an untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or supplement
the Registration Statement or Prospectus to comply with the Securities Act, the Company will promptly notify the Sales Agent to suspend
the offering of Placement Shares during such period and the Company will promptly amend or supplement the Registration Statement or Prospectus
(at the expense of the Company) so as to correct such statement or omission or effect such compliance; provided, however,
that the Company may delay the filing of any amendment or supplement if, in the judgment of the Company, it is in the best interest of
the Company.


 


(d) Listing of Placement
Shares. During any period in which the Prospectus relating to the Placement Shares is required to be delivered by the Sales Agent
under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances where such requirement may
be satisfied pursuant to Rule 172 under the Securities Act), the Company will use commercially reasonable efforts to cause the Placement
Shares to be listed on the Exchange and to qualify the Placement Shares for sale under the securities laws of such jurisdictions as the
Sales Agent reasonably designates and to continue such qualifications in effect so long as required for the distribution of the Placement
Shares; provided, however, that the Company shall not be required in connection therewith to qualify as a foreign corporation
or dealer in securities or file a general consent to service of process in any jurisdiction.


 


(e) Delivery of Registration
Statement and Prospectus. The Company will furnish to the Sales Agent and its counsel (at the expense of the Company) copies of (i)
the Registration Statement and the Prospectus (including all documents incorporated by reference therein) filed with the Commission on
the date of this Agreement and (ii) all amendments and supplements to the Registration Statement or Prospectus that are filed with the
Commission during any period in which a Prospectus relating to the Placement Shares is required to be delivered by the Sales Agent under
the Securities Act (including all documents filed with the Commission during such period that are deemed to be incorporated by reference
therein), in each case as soon as reasonably practicable and in such quantities as the Sales Agent may from time to time reasonably request
and, at the Sales Agent’s request, will also furnish copies of the Prospectus to each exchange or market on which sales of the Placement
Shares may be made; provided, however, that the Company shall not be required to furnish any document (other than the Prospectus)
to the Sales Agent to the extent such document is available on EDGAR.


 






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(f) Earnings Statement.
The Company will make generally available to its security holders and the Sales Agent as soon as practicable, but in any event not later
than 15 months after the end of the Company’s current fiscal quarter, an earnings statement of the Company and its subsidiaries
(which need not be audited) covering a 12-month period that complies with Section 11(a) and Rule 158 of the Securities Act. The terms
“earnings statement” and “make generally available to its security holders” shall have the meanings set forth
in Rule 158 under the Securities Act.


 


(g) Expenses. The
Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated in accordance with the
provisions of Section 11 hereunder, will pay the following expenses all incident to the performance of its obligations hereunder,
including, but not limited to, expenses relating to (i) the preparation, printing and filing of the Registration Statement and each amendment
and supplement thereto, of each Prospectus and of each amendment and supplement thereto, (ii) the preparation, issuance and delivery of
the Placement Shares, including any stock or other transfer taxes and any stamp or other duties payable upon the sale, issuance or delivery
of the Placement Shares to the Sales Agent, (iii) the fees and disbursements of the counsel, accountants and other advisors to the Company
in connection with the transactions contemplated by this Agreement; (iv) the qualification of the Placement Shares under securities laws
in accordance with the provisions of Section 7(d) of this Agreement, including filing fees (provided, however, that any fees or
disbursements of counsel for the Sales Agent in connection therewith shall be paid by the Sales Agent except as set forth in (ix) below),
(v) the printing and delivery to the Sales Agent of copies of the Prospectus and any amendments or supplements thereto, and of this Agreement,
(vi) the fees and expenses incurred in connection with the listing or qualification of the Placement Shares for trading on the Exchange,
(vii) the fees and expenses of the transfer agent or registrar for the Common Stock; (viii) filing fees and expenses, if any, of the Commission
and the FINRA Corporate Financing Department (including, with respect to any required review by FINRA, the fees and expenses of the Sales
Agent’s counsel); and (ix) the Company shall reimburse the Sales Agent for the fees and disbursements of the Sales Agent’s
counsel in an amount not to exceed (a) $50,000 in connection with the establishment of this at-the-market offering, and (b) thereafter,
$3,000 on a quarterly basis (such approval not to be unreasonably withheld, conditioned or delayed).


 


(h) Use of Proceeds.
The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use of Proceeds.”


 


(i) Notice of Other Sales.
During the pendency of any Placement Notice given hereunder, the Company shall provide the Sales Agent notice as promptly as reasonably
possible before it offers to sell, contracts to sell, sells, grants any option to sell or otherwise disposes of any shares of Common Stock
(other than Placement Shares offered pursuant to the provisions of this Agreement) or securities convertible into or exchangeable for
Common Stock, warrants or any rights to purchase or acquire Common Stock; provided, that such notice shall not be required in connection
with the (i) issuance, grant or sale of Common Stock, options or other rights to purchase or otherwise acquire Common Stock, or Common
Stock issuable upon the exercise of options or other equity awards, in each case granted pursuant to any stock option, stock bonus or
other stock or compensatory plan or arrangement, whether now in effect or hereafter implemented, (ii) issuance of securities in connection
with an acquisition, merger, or sale or purchase of assets, (iii) issuance or sale of Common Stock upon conversion of securities or the
exercise of warrants, options or other rights then in effect or outstanding, and disclosed in filings by the Company available on EDGAR
or otherwise in writing to the Sales Agent, and (iv) issuance or sale of Common Stock pursuant to any dividend reinvestment and stock
purchase plan that the Company has in effect or may adopt from time to time, provided that the implementation of such new plan is disclosed
to the Sales Agent in advance. If the Company notifies the Sales Agent under this Section 7(i) of a proposed sale of shares of
Common Stock or Common Stock equivalents, the Sales Agent may suspend any offers and sales of securities under this Agreement for a period
of time deemed appropriate by the Sales Agent.


 






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(j) Change of Circumstances.
The Company will, at any time during a fiscal quarter in which the Company intends to tender a Placement Notice or sell Placement Shares,
advise the Sales Agent promptly after it shall have received notice or obtained knowledge thereof, of any information or fact that would
alter or affect in any material respect any opinion, certificate, letter or other document provided to the Sales Agent pursuant to this
Agreement.


 


(k) Due Diligence Cooperation.
The Company will cooperate with any reasonable due diligence review conducted by the Sales Agent or its agents in connection with the
transactions contemplated hereby, including, without limitation, providing information and making available documents and senior corporate
officers, during regular business hours and at the Company’s principal offices, as the Sales Agent may reasonably request.


 


(l) Required Filings Relating
to Placement of Placement Shares. The Company shall set forth in each Annual Report on Form 10-K and Quarterly Report on Form 10-Q
filed by the Company with the Commission in respect of any quarter in which sales of Placement Shares were made by or through the Sales
Agent under this Agreement, with regard to the relevant period, the amount of Placement Shares sold to or through the Sales Agent, the
Net Proceeds to the Company and the compensation payable by the Company to the Sales Agent with respect to such sales of Placement Shares.
To the extent that the filing of a prospectus supplement to the Prospectus with the Commission with respect to any sales of Placement
Shares becomes required under Rule 424(b) under the Securities Act, the Company agrees that, on or before such dates as the Securities
Act shall require, the Company will (i) file a prospectus supplement to the Prospectus with the Commission under the applicable paragraph
of Rule 424(b) under the Securities Act, which prospectus supplement will set forth, with regard to the relevant period, the amount of
Placement Shares sold to or through the Sales Agent, the Net Proceeds to the Company and the compensation payable by the Company to the
Sales Agent with respect to such Placement Shares, and (ii) deliver such number of copies of each such prospectus supplement to each exchange
or market on which such sales were effected as may be required by the rules or regulations of such exchange or market. The Company shall
afford the Sales Agent and its counsel with a reasonable opportunity to review and comment upon, shall consult with the Sales Agent and
its counsel on the form and substance of, and shall give due consideration to all such comments from the Sales Agent or its counsel on,
any such filing prior to the issuance, filing or public disclosure thereof; provided, however, that the Company shall not be required
to submit for review (A) any portion of any periodic reports filed with the Commission under the Exchange Act other than the specific
disclosure relating to any sales of Placement Shares and (B) any disclosure contained in periodic reports filed with the Commission under
the Exchange Act if it shall have previously provided the same disclosure for review in connection with a previous filing.


 






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(m) Representation Dates;
Certificate. On or prior to the date the first Placement Notice is given hereunder and each time the Company subsequently thereafter
(i) amends or supplements the Registration Statement or the Prospectus relating to the Placement Shares (other than (A) a prospectus supplement
filed in accordance with Section 7(l) of this Agreement or (B) a supplement or amendment that relates to an offering of securities
other than the Placement Shares) by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of document(s)
by reference to the Registration Statement or the Prospectus relating to the Placement Shares; (ii) files an annual report on Form 10-K
under the Exchange Act (including any Form 10-K/A containing amended financial information or a material amendment to the previously filed
Form 10-K); (iii) files a quarterly report on Form 10-Q under the Exchange Act; (iv) files a report on Form 8-K containing amended financial
information (other than an earnings release, to “furnish” information pursuant to Items 2.02 or 7.01 of Form 8-K or to provide
disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as discontinued operations in accordance
with Statement of Financial Accounting Standards No. 144) under the Exchange Act (unless the Sales Agent determine that the information
contained in such Form 8-K is not material); or (v) sells Placement Shares to the Sales Agent as principal at the Point of Sale pursuant
to the applicable Placement Notice (each date of filing of one or more of the documents and each other date referred to in clauses (i)
through (v) shall be a “Representation Date”), the Company shall furnish the Sales Agent within three (3) Trading Days
after each Representation Date with a certificate, in the form attached hereto as Exhibit 7(m). The requirement to provide
a certificate under this Section 7(m) shall be waived for any Representation Date occurring at a time at which no Placement Notice
is pending or during any Suspension Period, which waiver shall continue until the earlier to occur of the date the Company delivers a
Placement Notice hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation
Date or the termination of any Suspension Period; provided, however, that such waiver shall not apply for any Representation
Date on which the Company files its annual report on Form 10-K. Notwithstanding the foregoing, if the Company subsequently decides to
sell Placement Shares following a Representation Date when the Company relied on such waiver or following the termination of a Suspension
Period and did not provide the Sales Agent with a certificate under this Section 7(m), then, before the Company delivers the Placement
Notice or the Sales Agent sells any Placement Shares, the Company shall provide such Sales Agent with a certificate, in the form attached
hereto as Exhibit 7(m), dated the date of the Placement Notice.


 


(n) Legal Opinion.
On or prior to the date the first Placement Notice is given hereunder, the Company shall cause to be furnished to the Sales Agent the
written opinion and negative assurance of Dorsey & Whitney LLP, counsel to the Company (“Company Counsel”), in
form and substance reasonably satisfactory to the Sales Agent. Thereafter, within three (3) Trading Days after each Representation Date
with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(m) for which no waiver or Suspension
Period is applicable pursuant to Section 7(m), and not more than once per calendar quarter, the Company shall cause to be furnished
to the Sales Agent the written opinions and negative assurance of Company Counsel substantially in the form previously agreed between
the Company and the Sales Agent, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or
supplemented.


 


(o) Comfort Letter.
On or prior to the date the first Placement Notice is given hereunder and within three (3) Trading Days after each subsequent Representation
Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(m) for which no waiver or Suspension
Period is applicable pursuant to Section 7(m), the Company shall cause its independent accountants to furnish the Sales Agent letters
(the “Comfort Letters”), dated the date that the Comfort Letter is delivered, in form and substance satisfactory to
the Sales Agent, (i) confirming that they are an independent registered public accounting firm within the meaning of the Securities Act,
the Exchange Act and the rules and regulations of PCAOB and are in compliance with the applicable requirements relating to the qualification
of accountants under Rule 2-01 of Regulation S-X of the Commission, (ii) stating, as of such date, the conclusions and findings of such
firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters”
to the Sales Agent in connection with registered public offerings (the first such letter, the “Initial Comfort Letter”)
and (iii) updating the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had it
been given on such date and modified as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented
to the date of such letter.


 


(p) Market Activities.
The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes or might reasonably
be expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale
of the Common Stock or (ii) sell, bid for, or purchase the Placement Shares to be issued and sold pursuant to this Agreement, or pay anyone
any compensation for soliciting purchases of the Placement Shares other than the Sales Agent.


 






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(q) Insurance. The
Company and its subsidiaries shall maintain, or caused to be maintained, insurance in such amounts and covering such risks as is reasonable
and customary for the business in which it is engaged.


 


(r) Compliance with Laws.
The Company and each of its subsidiaries shall maintain, or cause to be maintained, all material permits, licenses and other authorizations
required by federal, state and local law and regulations in order to conduct their businesses as described in the Registration Statement
and the Prospectus, and the Company and each of its subsidiaries shall conduct their businesses, or cause their businesses to be conducted,
in substantial compliance with such permits, licenses and authorizations and with applicable laws and regulations, except where the failure
to maintain or be in compliance with such permits, licenses and authorizations could not reasonably be expected to result in a Material
Adverse Effect.


 


(s) Investment Company
Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that neither it nor its subsidiaries is or,
after giving effect to the offering and sale of the Placement Shares and the application of proceeds therefrom as described in the Prospectus,
will be, an “investment company” within the meaning of such term under the Investment Company Act.


 


(t) Securities Act and
Exchange Act. The Company will use its best efforts to comply with all requirements imposed upon it by the Securities Act and the
Exchange Act as from time to time in force, so far as necessary to permit the continuance of sales of, or dealings in, the Placement Shares
as contemplated by the provisions hereof and the Prospectus.


 


(u) No Offer to Sell.
Other than the Prospectus, neither the Sales Agent nor the Company (including its agents and representatives, other than the Sales Agent
in its capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405 under
the Securities Act), required to be filed with the Commission, that constitutes an offer to sell or solicitation of an offer to buy Placement
Shares hereunder.


 


(v) Sarbanes-Oxley Act.
The Company and its subsidiaries will use their best efforts to comply with all effective applicable provisions of the Sarbanes-Oxley
Act.


 


(w) New Registration Statement.
If immediately prior to the third anniversary of the initial effective date of the Registration Statement, any of the Placement Shares
remain unsold, the sale of the Placement Shares under this Agreement shall automatically be suspended unless and until the Company files
a new shelf registration statement relating to the Placement Shares and such new registration statement is declared effective by the Commission.
References herein to the Registration Statement shall include such new shelf registration statement. If any such new shelf registration
statement becomes effective prior to the termination date of this Agreement, the Company agrees to notify the Sales Agent of such effective
date.


 


(x) Emerging Growth Company.
The Company will promptly notify the Sales Agent if the Company ceases to be an Emerging Growth Company at any time prior to the expiration
or termination of this Agreement.


 


8. Conditions to the Sales
Agent’s Obligations. The obligations of the Sales Agent hereunder with respect to any Placement will be subject to the continuing
accuracy and completeness of the representations and warranties made by the Company herein, to the due performance by the Company of its
obligations hereunder, to the completion by the Sales Agent of a due diligence review satisfactory to the Sales Agent in its reasonable
judgment, and to the continuing satisfaction (or waiver by the Sales Agent in its sole discretion) of the following additional conditions.


 






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(a) Registration Statement
Effective. The Registration Statement shall be effective and shall be available for the sale of all Placement Shares contemplated
to be issued by any Placement Notice.


 


(b) Securities Act Filings
Made. The Company shall have filed with the Commission the ATM Prospectus pursuant to Rule 424(b) under the Securities Act within
the applicable time period prescribed for such filing by Rule 424(b) (without reliance on Rule 424(b)(8) of the Securities Act). All other
filings with the Commission required by Rule 424 under the Securities Act to have been filed prior to the issuance of any Placement Notice
hereunder shall have been made within the applicable time period prescribed for such filing by Rule 424.


 


(c) No Material Notices.
None of the following events shall have occurred and be continuing: (i) receipt by the Company or any of its subsidiaries of any request
for additional information from the Commission or any other federal or state governmental authority during the period of effectiveness
of the Registration Statement, the response to which would require any post-effective amendments or supplements to the Registration Statement
or the Prospectus; (ii) the issuance by the Commission or any other federal or state governmental authority of any stop order suspending
the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by the Company of
any notification with respect to the suspension of the qualification or exemption from qualification of any of the Placement Shares for
sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; (iv) the occurrence of any event that makes
any material statement made in the Registration Statement or the Prospectus or any material document incorporated or deemed to be incorporated
therein by reference untrue in any material respect or that requires the making of any changes in the Registration Statement, related
Prospectus or such documents so that, in the case of the Registration Statement, it will not contain any materially untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading
and, that in the case of the Prospectus, it will not contain any materially untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.


 


(d) No Misstatement or
Material Omission. The Sales Agent shall not have advised the Company that the Registration Statement or Prospectus, or any amendment
or supplement thereto, contains an untrue statement of fact that in the Sales Agent’s reasonable opinion is material, or omits to
state a fact that in the Sales Agent’s reasonable opinion is material and is required to be stated therein or is necessary to make
the statements therein not misleading.


 


(e) Material Changes.
Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with the Commission, there shall not have
been any material adverse change in the authorized capital stock of the Company or any Material Adverse Effect or any development that
could reasonably be expected to result in a Material Adverse Effect, or any downgrading in or withdrawal of the rating assigned to any
of the Company’s securities (other than asset backed securities) by any rating organization or a public announcement by any rating
organization that it has under surveillance or review its rating of any of the Company’s securities (other than asset backed securities),
the effect of which, in the case of any such action by a rating organization described above, in the reasonable judgment of the Sales
Agent (without relieving the Company of any obligation or liability it may otherwise have), is so material as to make it impracticable
or inadvisable to proceed with the offering of the Placement Shares on the terms and in the manner contemplated by this Agreement and
the Prospectus.


 


(f) Company Counsel Legal
Opinion. The Sales Agent shall have received the opinions and negative assurances of Company Counsel required to be delivered pursuant
Section 7(n) on or before the date on which such delivery of such opinions and negative assurances is required pursuant to Section
7(n).


 






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(g) Sales Agent’s
Counsel Legal Opinion. The Sales Agent shall have received from Thompson Hine LLP, counsel to the Sales Agent, on or before the date
on which the delivery of the Company Counsel legal opinion is required pursuant to Section 7(n), such negative assurances with
respect to such matters as the Sales Agent may reasonably require, and the Company shall have furnished to such counsel such documents
as they request for enabling them to pass upon such matters.


 


(h) Comfort Letter.
The Sales Agent shall have received the Comfort Letter required to be delivered pursuant Section 7(o) on or before the date on
which such delivery of such Comfort Letter is required pursuant to Section 7(o).


 


(i) Representation Certificate.
The Sales Agent shall have received the certificate required to be delivered pursuant to Section 7(m) on or before the date on
which delivery of such certificate is required pursuant to Section 7(m).


 


(j) Secretary’s
Certificate. The Sales Agent shall have received a certificate, signed on behalf of the Company by its corporate Secretary, certifying
as to (i) the Certificate of Incorporation of the Company, (ii) the By-laws of the Company, (iii) the resolutions of the Board of Directors
of the Company (or a committee thereof) authorizing the execution, delivery and performance of this Agreement and the issuance of the
Placement Shares and (iv) the incumbency of the officers duly authorized to execute this Agreement and the other documents contemplated
by this Agreement.


 


(k) No Suspension.
Trading in the Common Stock shall not have been suspended on the Exchange, and the Common Stock shall not have been delisted from the
Exchange.


 


(l) Other Materials.
On each date on which the Company is required to deliver a certificate pursuant to Section 7(m), the Company shall have furnished
to the Sales Agent such appropriate further opinions, certificates, letters and documents as the Sales Agent may have reasonably requested.
All such opinions, certificates, letters and other documents shall have been in compliance with the provisions hereof. The Company will
furnish the Sales Agent with such conformed copies of such opinions, certificates, letters and other documents as the Sales Agent shall
have reasonably requested.


 


(m) Approval for Listing.
The Placement Shares shall have been approved for listing on the Exchange, subject only to notice of issuance.


 


(n) No Termination Event.
There shall not have occurred any event that would permit the Sales Agent to terminate this Agreement pursuant to Section 11(a).


 


(o) FINRA. The Sales
Agent shall have received a letter from the Corporate Financing Department of FINRA confirming that such department has determined to
raise no objection with respect to the fairness or reasonableness of the terms and arrangements related to the sale of the Placement Shares
pursuant to this Agreement.


 






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9. Indemnification and
Contribution.


 


(a) Company Indemnification.
The Company agrees to indemnify and hold harmless the Sales Agent, the directors, officers, members, partners, employees and agents of
the Sales Agent, each broker dealer affiliate of the Sales Agent, and each Sales Agent Affiliate, if any, from and against any and all
losses, claims, liabilities, expenses and damages (including, but not limited to, any and all reasonable investigative, legal and other
expenses incurred in connection with, and any and all amounts paid in settlement (in accordance with Section 9(c)) of, any action,
suit or proceeding between any of the indemnified parties and any indemnifying parties or between any indemnified party and any third
party, or otherwise, or any claim asserted), as and when incurred, to which the Sales Agent, or any such person, 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, liabilities, expenses or damages arise out of or are based, directly or indirectly, on (x) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement or the Prospectus or any amendment or supplement thereto or
in any free writing prospectus or in any application or other document executed by or on behalf of the Company or based on written information
furnished by or on behalf of the Company filed in any jurisdiction in order to qualify the Common Stock under the securities laws thereof
or filed with the Commission, (y) the omission or alleged omission to state in any such document a material fact required to be stated
in it or necessary to make the statements in it not misleading or (z) any breach by any of the indemnifying parties of any of their respective
representations, warranties and agreements contained in this Agreement; provided, however, that this indemnity agreement
shall not apply to the extent that such loss, claim, liability, expense or damage arises from the sale of the Placement Shares pursuant
to this Agreement and is caused directly by an untrue statement or omission made in reliance upon and in strict conformity with written
information relating to the Sales Agent and furnished to the Company by the Sales Agent expressly for inclusion in any document as described
in clause (x) of this Section 9(a). This indemnity agreement will be in addition to any liability that the Company might otherwise
have.


 


(b) The Sales Agent Indemnification.
The Sales Agent agrees to indemnify and hold harmless the Company and its directors and each officer of the Company that signed the Registration
Statement, and each person, if any, who (i) controls the Company within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act or (ii) is controlled by or is under common control with the Company (each, a “Company Affiliate”)
from and against any and all losses, claims, liabilities, expenses and damages (including, but not limited to, any and all reasonable
investigative, legal and other expenses incurred in connection with, and any and all amounts paid in settlement (in accordance with Section
9(c)) of, any action, suit or proceeding between any of the indemnified parties and any indemnifying parties or between any indemnified
party and any third party, or otherwise, or any claim asserted), as and when incurred, to which any such Company Affiliate, 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, liabilities, expenses or damages arise out of or are based, directly or indirectly, on (x) any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement or the Prospectus or any amendment or
supplement thereto, or (y) the omission or alleged omission to state in any such document a material fact required to be stated in it
or necessary to make the statements in it not misleading; provided, however, that this indemnity agreement shall apply only
to the extent that such loss, claim, liability, expense or damage is caused directly by an untrue statement or omission made in reliance
upon and in strict conformity with written information relating to the Sales Agent and furnished to the Company by the Sales Agent expressly
for inclusion in any document as described in clause (x) of this Section 9(b), which the Company acknowledges consists solely of
the material referred to in Schedule 5 hereto, as updated from time to time.


 






    26


     


    

 


(c) Procedure. Any
party that proposes to assert the right to be indemnified under this Section 9 will, promptly after receipt of notice of commencement
of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section
9, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission
so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might have to any indemnified
party otherwise than under this Section 9 and (ii) any liability that it may have to any indemnified party under the foregoing
provision of this Section 9 unless, and only to the extent that, such omission results in the forfeiture of substantive rights
or defenses by the indemnifying party. If any such action is brought against any indemnified party and it notifies the indemnifying party
of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written
notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly
with any other indemnifying party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the
indemnified party, and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying
party will not be liable to the indemnified party for any legal or other expenses except as provided below and except for the reasonable
costs of investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified party will have
the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense
of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying
party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it
or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential
conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which
case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the
indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice
of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the
expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more
than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees,
disbursements and other charges will be reimbursed by the indemnifying party promptly after the indemnifying party received a written
invoice relating to the fees, disbursements and other charges in reasonable detail. An indemnifying party will not, in any event, be liable
for any settlement of any action or claim effected without its written consent. No indemnifying party shall, without the prior written
consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action
or proceeding relating to the matters contemplated by this Section 9 (whether or not any indemnified party is a party thereto),
unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or
that may arise out of such claim, action or proceeding.


 






    27


     


    

 


(d) Contribution.
In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs
of this Section 9 is applicable in accordance with its terms but for any reason is held to be unavailable from the Company or the
Sales Agent, the Company and the Sales Agent will contribute to the total losses, claims, liabilities, expenses and damages (including
any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action,
suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Sales
Agent, such as persons who control the Company within the meaning of the Securities Act, officers of the Company who signed the Registration
Statement and directors of the Company, who also may be liable for contribution) to which the Company and the Sales Agent may be subject
in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Sales Agent
on the other. The relative benefits received by the Company on the one hand and the Sales Agent on the other hand shall be deemed to be
in the same proportion as the total Net Proceeds from the sale of the Placement Shares (before deducting expenses) received by the Company
bear to the total compensation received by the Sales Agent from the sale of Placement Shares on behalf of the Company. If the allocation
provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion
as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company,
on the one hand, and the Sales Agent, on the other, with respect to the statements or omission that resulted in such loss, claim, liability,
expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering.
Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Sales Agent, the intent
of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The
Company and the Sales Agent agree that it would not be just and equitable if contributions pursuant to this Section 9(d) were to
be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations
referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense, or damage,
or action in respect thereof, referred to above in this Section 9(d) shall be deemed to include, for the purpose of this Section
9(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any
such action or claim to the extent consistent with Section 9(c) hereof. Notwithstanding the foregoing provisions of this Section
9(d), the Sales Agent shall not be required to contribute any amount in excess of the commissions received by it under this Agreement
and no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled
to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 9(d), any
person who controls a party to this Agreement within the meaning of the Securities Act will have the same rights to contribution as that
party (and any officers, directors, members, partners, employees or agents of the Sales Agent and each broker dealer affiliate of the
Sales Agent will have the same rights to contribution as the Sales Agent), and each officer of the Company who signed the Registration
Statement and each director of the Company will have the same rights to contribution as the Company, subject in each case to the provisions
hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect
of which a claim for contribution may be made under this Section 9(d), will notify any such party or parties from whom contribution
may be sought, but the omission to so notify will not relieve that party or parties from whom contribution may be sought from any other
obligation it or they may have under this Section 9(d) except to the extent that the failure to so notify such other party materially
prejudiced the substantive rights or defenses of the party from whom contribution is sought. Except for a settlement entered into pursuant
to the last sentence of Section 9(c) hereof, no party will be liable for contribution with respect to any action or claim settled
without its written consent if such consent is required pursuant to Section 9(c) hereof.


 






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10. Representations and
Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section 9 of this Agreement and all
representations and warranties of the Company herein or in certificates delivered pursuant hereto shall survive, as of their respective
dates, regardless of (i) any investigation made by or on behalf of the Sales Agent, any controlling person of the Sales Agent, or the
Company (or any of their respective officers, directors, members or controlling persons), (ii) delivery and acceptance of the Placement
Shares and payment therefor or (iii) any termination of this Agreement.


 


11. Termination.


 


(a) The Sales Agent shall
have the right by giving notice as hereinafter specified at any time to terminate this Agreement if (i) any Material Adverse Effect, or
any development that could reasonably be expected to result in a Material Adverse Effect has occurred that, in the reasonable judgment
of the Sales Agent, may materially impair the ability of the Sales Agent to sell the Placement Shares hereunder, (ii) the Company shall
have failed, refused or been unable to perform any agreement on its part to be performed hereunder; provided, however, in
the case of any failure of the Company to deliver (or cause another person to deliver) any certification, opinion, or letter required
under Sections 7(m), 7(n), or 7(o), the Sales Agent’s right to terminate shall not arise unless such failure
to deliver (or cause to be delivered) continues for more than thirty (30) days from the date such delivery was required, (iii) any other
condition of the Sales Agent’s obligations hereunder is not fulfilled, or (iv) any suspension or limitation of trading in the Placement
Shares or in securities generally on the Exchange shall have occurred (including automatic halt in trading pursuant to market-decline
triggers, other than those in which solely program trading is temporarily halted), or a major disruption of securities settlements or
clearing services in the United States shall have occurred, or minimum prices for trading have been fixed on the Exchange. Any such termination
shall be without liability of any party to any other party except that the provisions of Section 7(g) (Expenses), Section 9
(Indemnification and Contribution), Section 10 (Representations and Agreements to Survive Delivery), Section 11(f), Section
16 (Applicable Law; Consent to Jurisdiction) and Section 17 (Waiver of Jury Trial) hereof shall remain in full force and effect
notwithstanding such termination. If the Sales Agent elects to terminate this Agreement as provided in this Section 11(a), the
Sales Agent shall provide the required notice as specified in Section 12 (Notices).


 


(b) The Company shall have
the right, by giving ten (10) days’ notice as hereinafter specified in Section 12, to terminate this Agreement in its sole
discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any other party
except that the provisions of Section 7(g), Section 9, Section 10, Section 11(f), Section 16 and Section
17 hereof shall remain in full force and effect notwithstanding such termination.


 


(c) The Sales Agent shall
have the right, by giving ten (10) days’ notice as hereinafter specified in Section 12, to terminate this Agreement in its
sole discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any other
party except that the provisions of Section 7(g), Section 9, Section 10, Section 11(f), Section 16
and Section 17 hereof shall remain in full force and effect notwithstanding such termination.


 


(d) Unless earlier terminated
pursuant to this Section 11, this Agreement shall automatically terminate upon the issuance and sale of all of the Placement Shares
to or through the Sales Agent on the terms and subject to the conditions set forth herein; provided that the provisions of Section
7(g), Section 9, Section 10, Section 11(f), Section 16 and Section 17 hereof shall remain in full
force and effect notwithstanding such termination.


 


(e) This Agreement shall
remain in full force and effect unless terminated pursuant to Sections 11(a), (b), (c) or (d) above or otherwise
by mutual agreement of the parties; provided, however, that any such termination by mutual agreement shall in all cases
be deemed to provide that Section 7(g), Section 9, Section 10, Section 11(f), Section 16 and Section
17 shall remain in full force and effect.


 


(f) Any termination of this
Agreement shall be effective on the date specified in such notice of termination; provided, however, that such termination
shall not be effective until the close of business on the date of receipt of such notice by the Sales Agent or the Company, as the case
may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such termination shall not become
effective until the close of business on such Settlement Date and such Placement Shares shall settle in accordance with the provisions
of this Agreement.


 






    29


     


    

 


12. Notices. All notices
or other communications required or permitted to be given by any party to any other party pursuant to the terms of this Agreement shall
be in writing, unless otherwise specified, and if sent to the Sales Agent, shall be delivered to:


 


A.G.P./Alliance Global
Partners


590 Madison Avenue,
28th Floor


New York, NY 10022


Attention:
Tom Higgins


Email: atm@allianceg.com


 


with a copy (which shall not
constitute notice) to:


 


Thompson Hine LLP


335 Madison Avenue


New York, NY 10017


Attention:
Faith L. Charles


Email: Faith.Charles@ThompsonHine.com


 


and if to the Company, shall
be delivered to:


 


Akerna Corp.


1550 Larimer Street,
#246


Denver, CO 80202


Attention:
Jessica Billingsley


Email: jlb@akerna.com


 


with a copy (which shall not
constitute notice) to:


 


Dorsey & Whitney
LLP


1400 Wewatta Street,
Suite 400


Denver, CO 80202


Attention:
Jason K. Brenkert


Email: brenkert.jason@dorsey.com


 


Each party may change such
address for notices by sending to the other party to this Agreement written notice of a new address for such purpose. Each such notice
or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile transmission on or before 4:30 p.m.,
New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) on the next Business
Day after timely delivery to a nationally-recognized overnight courier and (iii) on the Business Day actually received if deposited in
the U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes of this Agreement, “Business
Day” shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.


 


An electronic communication
(“Electronic Notice”) shall be deemed written notice for purposes of this Section 12 if sent to the electronic
mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the party sending
Electronic Notice receives confirmation of receipt by the receiving party (other than pursuant to auto-reply). Any party receiving Electronic
Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”)
which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.


 


13. Successors and Assigns.
This Agreement shall inure to the benefit of and be binding upon the Company and the Sales Agent and their respective successors and permitted
assigns and, as to Sections 5(b) and 9, the other indemnified parties specified therein. References to any of the parties
contained in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing in this Agreement,
express or implied, is intended to confer upon any other person any rights, remedies, obligations or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under this Agreement
without the prior written consent of the other party; provided, however, that the Sales Agent may assign its rights and
obligations hereunder to an affiliate of the Sales Agent without obtaining the Company’s consent.


 






    30


     


    

 


14. Adjustments for Share
Splits. The parties acknowledge and agree that all share-related numbers contained in this Agreement shall be adjusted to take into
account any share split, share dividend or similar event effected with respect to the Common Stock.


 







15. Entire Agreement; Amendment;
Severability. This Agreement (including all schedules and exhibits attached hereto and Placement Notices issued pursuant hereto) and
any other writing entered into by the parties relating to this Agreement constitutes the entire agreement and supersedes all other prior
and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof.
Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Sales
Agent. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid,
illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to
the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed
as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that giving effect to
such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected
in this Agreement.


 


16. Applicable Law; Consent
to Jurisdiction. This Agreement and all matters arising under or related to this Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of New York, without regard to the principles of conflicts of laws. Each party hereby
irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan,
for the adjudication of any dispute hereunder or in connection with any transaction contemplated hereby, and hereby irrevocably waives,
and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof (certified or registered mail, return receipt requested) to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.


 


17. Waiver of Jury Trial.
The Company and the Sales Agent each hereby irrevocably waives any right it may have to a trial by jury in respect of any claim based
upon or arising out of this Agreement or any transaction contemplated hereby.


 


18. Absence of Fiduciary
Relationship. The Company acknowledges and agrees that:


 


(a) the Sales Agent is acting
solely as agent in connection with the sale of the Placement Shares contemplated by this Agreement and the process leading to such transactions,
and no fiduciary or advisory relationship between the Company or any of its respective affiliates, stockholders (or other equity holders),
creditors or employees or any other party, on the one hand, and the Sales Agent, on the other hand, has been or will be created in respect
of any of the transactions contemplated by this Agreement, irrespective of whether the Sales Agent has advised or are advising the Company
on other matters, and the Sales Agent has no obligation to the Company with respect to the transactions contemplated by this Agreement,
except the obligations expressly set forth in this Agreement;


 


(b) the Company is capable
of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement;


 


(c) the Sales Agent has not
provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement, and the Company
has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;


 






    31


     


    

 


(d) the Company has been
advised and is aware that the Sales Agent and its affiliates are engaged in a broad range of transactions which may involve interests
that differ from those of the Company and that the Sales Agent has no obligation to disclose such interests and transactions to the Company
by virtue of any fiduciary, advisory or agency relationship; and


 


(e) the Company waives, to
the fullest extent permitted by law, any claims it may have against the Sales Agent, for breach of fiduciary duty or alleged breach of
fiduciary duty and agrees that the Sales Agent shall have no liability (whether direct or indirect, in contract, tort or otherwise) to
the Company in respect of such a fiduciary claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company,
including stockholders, partners, employees or creditors of the Company.


 


19. Use of Information.
The Sales Agent may not provide any information gained in connection with this Agreement and the transactions contemplated by this Agreement,
including due diligence, to any third party other than its legal counsel advising it on this Agreement unless expressly approved by the
Company in writing.


 


20. Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile transmission or e-mail
of a PDF attachment.


 


21. Effect of Headings;
Knowledge of the Company. The section, schedule and exhibit headings herein are for convenience only and shall not affect the construction
hereof. All references in this Agreement to the “knowledge of the Company” or the “Company’s knowledge”
or similar qualifiers shall mean the actual knowledge of the directors and officers of the Company, after due inquiry.


 


22. Definitions. As
used in this Agreement, the following term has the meaning set forth below:


 


“Applicable Time”
means the date of this Agreement, each Representation Date, each date on which a Placement Notice is given, each Point of Sale, and each
Settlement Date.


 





[The remainder of this page has been intentionally
left blank.]


 




    32


     


    

 


If the foregoing correctly
sets forth the understanding between the Company and the Sales Agent, please so indicate in the space provided below for that purpose,
whereupon this letter shall constitute a binding agreement between the Company and the Sales Agent.


 


Very truly yours,


 


	AKErna corp.	 
	 	 
	By:	 	 
	Name: 	Jessica Billingsley	 
	Title:	Chief Executive Officer	 


 


Accepted and Agreed to as of


the date first written above:


 


	A.G.P./Alliance Global Partners	 
	 	 
	By:	                                 	 
	Name: 	Thomas Higgins	 
	Title:	Managing Director	 


 


[Signature Page to the Akerna Corp. Sales Agreement]


 




     


     


    

 


Schedule
1


 


Form
of Placement Notice


 


	From: 	Akerna Corp.
	To:	A.G.P./Alliance Global Partners
	 	Attention: Tom Higgins


 


Subject: At-The-Market
Offering—Placement Notice


 


Ladies and Gentlemen:


  


Pursuant
to the terms and subject to the conditions contained in the Sales Agreement between Akerna Corp., a Delaware corporation (the “Company”),
and A.G.P./Alliance Global Partners (the “Sales Agent”) dated September 28, 2022 (the “Agreement”),
I hereby request on behalf of the Company that the Sales Agent sell up to                      
shares of the Company’s common stock, par value $0.0001 per share, at a minimum market price of $              
per share, during the period beginning [MONTH/DAY/TIME] and ending [MONTH/DAY/TIME].


 




     


     


    

 


Schedule
2


 


Notice
Parties


 


Akerna Corp.


 


Jessica Billingsley,
Chief Executive Officer (jlb@akerna.com)


 


Larry Dean Ditto
Jr., Chief Financial Officer (dean.ditto@akerna.com)


 


A.G.P./Alliance Global Partners


 


Thomas J. Higgins,
Managing Director (atm@allianceg.com)


 




     


     


    

 


Schedule
3


 


Compensation


 


The Sales Agent shall be paid
compensation equal to 3.0% of the gross proceeds from the sales of Placement Shares pursuant to the terms of this Agreement and shall
be reimbursed for certain expenses in accordance with Section 7(g) of this Agreement.


 


The foregoing rate of compensation
shall not apply when the Sales Agent acts as principal, in which case the Company may sell the Placement Shares to such Sales Agent as
principal at a price agreed upon at the relevant Point of Sale pursuant to the applicable Placement Notice.


 




     


     


    

 


Schedule
4


 


schedule
of subsidiaries


 


 


1. Akerna Canada
Ample Exchange Inc.


2. Akerna Canada
Holdings Inc.


3. Ample Organics
Inc.


4. Akerna Services,
LLC


5. Dynamics 365
People Software and Services Ltd.


6. Last Call Analytics
Inc.


7. MJ Freeway,
LLC


8. Solo Sciences,
Inc.


9. The NAV People,
Inc.


10. Trellis Solutions,
Inc.


11. Viridian Sciences,
Inc.


 




     


     


    

 


Schedule
5


 


Information
Provided by Sales Agent


 


The parties acknowledge and
agree that, for purposes of Sections 6(b) and 9 of this Agreement, there is no information provided by the Sales Agent.
The information in this Schedule shall be updated from time to time in connection with the filing of a new Prospectus or otherwise as
necessary.


 




     


     


    

 


Exhibit 7(m)


 


Officer
Certificate 


 


The undersigned, the duly
qualified and appointed ____________________ of Akerna Corp., a Delaware corporation (the “Company”), does hereby certify
in such capacity and on behalf of the Company, pursuant to Section 7(m) of the Sales Agreement, dated September [●], 2022 (the “Agreement”),
between the Company and A.G.P./Alliance Global Partners, that:


 


		(i)	the representations and warranties of the Company in Section
6 of the Agreement (A) to the extent such representations and warranties are subject to qualifications and exceptions contained therein
relating to materiality or Material Adverse Effect, are true and correct on and as of the date hereof with the same force and effect
as if expressly made on and as of the date hereof, except for those representations and warranties that speak solely as of a specific
date and which were true and correct as of such date, and (B) to the extent such representations and warranties are not subject to any
qualifications or exceptions, are true and correct in all material respects as of the date hereof as if made on and as of the date hereof
with the same force and effect as if expressly made on and as of the date hereof except for those representations and warranties that
speak solely as of a specific date and which were true and correct as of such date;



		 	 



		(ii)	the Company has complied with all agreements and satisfied
all conditions on its part to be performed or satisfied pursuant to the Agreement at or prior to the date hereof;



		 	 



		(iii)	as of the date hereof, (i) the Registration Statement does
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order
to make the statements therein not misleading, (ii) the Prospectus does not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading and (iii) no event has occurred as a result of which it is necessary to amend or supplement
the Registration Statement or the Prospectus in order to make the statements therein not untrue or misleading for clauses (i) and (ii)
above, respectively, to be true and correct;



		 	 



		(iv)	there has been no Material Adverse Effect since the date as
of which information is given in the Prospectus, as amended or supplemented;



		 	 



		(v)	the Company does not possess any material non-public information;
and



		 	 



		(vi)	the aggregate offering price of the Placement Shares that
may be issued and sold pursuant to the Agreement and the maximum number or amount of Placement Shares that may be sold pursuant to the
Agreement have been duly authorized by the Company’s board of directors or a duly authorized committee thereof.



 


Terms used herein and not
defined herein have the meanings ascribed to them in the Agreement.


 


	Date:	By:	 
	 	Name:	 
	 	Title: