Execution Version


 


SECURITIES PURCHASE AGREEMENT


 


This SECURITIES PURCHASE AGREEMENT (this “Agreement”)
is made and entered into as of October 10, 2022 by and among Immunic, Inc., a Delaware corporation (the “Company”),
and the Investors identified on Exhibit A attached hereto (each an “Investor” and collectively, the “Investors”).


 


Recitals



 


A.               
The Company and each Investor is executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the 1933 Act (as defined below) and Regulation D (as defined below); and


 


B.                
The Investors, severally and not jointly, wish to purchase from the Company, and the Company wishes to sell and issue to the Investors,
upon the terms and subject to the conditions stated in this Agreement, (i) shares (the “Shares”) of the Company’s
Common Stock, par value $0.0001 per share (the “Common Stock”), and (ii) pre-funded warrants in the form attached hereto
as Exhibit B to purchase Common Stock (collectively, the “Warrants”).


 


In consideration of the mutual promises made herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:


 


1.                     
Definitions. For the purposes of this Agreement, the following terms shall have the meanings set forth below:


 


“Affiliate” means, with respect
to any Person, any other Person which directly or indirectly through one or more intermediaries controls, is controlled by, or is under
common control with, such Person.


 


“Anti-Money Laundering Laws”
has the meaning set forth in Section 4.29.


 


“Beneficial Ownership Limitation”
shall be 9.99% of the outstanding shares of Common Stock.


 


“Business Day” means a day,
other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business.


 


“Bylaws” means the Company’s
Third Amended and Restated Bylaws, as may be amended and/or restated from time to time.


 


“Certificate of Incorporation”
means the Company’s Amended and Restated Certificate of Incorporation, as may be amended and/or restated from time to time.


 


“Cleansing Release” has the
meaning set forth in Section 9.7.


 






     


     


    

 


“Closing” has the meaning set
forth in Section 3.1.


 


“Closing Date” has the meaning
set forth in Section 3.1.


 


“Closing Securities” means the
Shares and the Warrants.


 


“Code” has the meaning set forth
in Section 5.18.


 


“Company’s Knowledge”
means the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company.


 


“Control” (including the terms
“controlling”, “controlled by” or “under common control with”) means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities,
by contract or otherwise.


 


“EDGAR system” means the Electronic
Data Gathering, Analysis, and Retrieval system.


 


“Environmental Laws” has the
meaning set forth in Section 4.15.


 


“ERISA” has the meaning set
forth in Section 5.18.


 


“Evaluation Date” has the meaning
set forth in Section 4.23.


 


“FDA” has the meaning set forth
in Section 4.25.


 


“GAAP” has the meaning set forth
in Section 4.17.


 


“Health Care Laws” means the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. §§ 301 et seq.), the regulations promulgated by other similar local, state or
federal law and regulations.


 


“Indemnified Party” has the
meaning set forth in Section 8.4.


 


“Indemnifying Party” has the
meaning set forth in Section 8.4.


 


“Investor Indemnified Party”
has the meaning set forth in Section 8.2.


 


“Intellectual Property” means
all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, trade secrets, licenses,
domain names, information and proprietary rights and processes.


 


“Intellectual Property Rights”
has the meaning set forth in Section 4.14.


 


“Investor Questionnaire” has
the meaning set forth in Section 3.1.


 


“Irrevocable Transfer Agent Instructions”
has the meaning set forth in Section 7.3.


 


“Legend Removal Date” has the
meaning set forth in Section 7.2.


 






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“Majority Investors” has the
meaning set forth in Section 6.3(a)(i).


 


“Material Adverse Effect” means
a material adverse effect on (i) the assets, liabilities, results of operations, financial condition or business of the Company and
its Subsidiary taken as a whole, (ii) the legality or enforceability of any of the Transaction Documents or (iii) the ability
of the Company to perform its obligations under the Transaction Documents; provided, however, that in no event shall any
of the following occurring after the date hereof, alone or in combination, be deemed to constitute, or be taken into account in determining
whether, a Material Adverse Effect has occurred: any effect caused by the announcement or pendency of the transactions contemplated by
the Transaction Documents, or the identity of any Investor or any of its Affiliates as the purchaser in connection with the transactions
contemplated by this Agreement or any change in the market price of the Common Stock.


 


“Material Contract” means any
contract, instrument or other agreement to which the Company is a party or by which it is bound which is material to the business of the
Company, including those that have been filed as an exhibit to the SEC Filings pursuant to Item 601(b)(10) of Regulation S-K.


 


“Nasdaq” means The Nasdaq Stock
Market.


 


“Person” means an individual,
corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship,
unincorporated organization, governmental authority or any other form of entity not specifically listed herein.


 


“Placement Agents” means SVB Securities
LLC and Piper Sandler & Co..


 


“Registrable Securities” means
(i) the Shares and Warrant Shares and (ii) any other securities issued upon any stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing; provided, however, that any such Registrable Securities shall cease to be
Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another, registration statement
hereunder with respect thereto) upon the first to occur of (A) a registration statement with respect to the sale of such Registrable Securities
being declared effective by the SEC under the 1933 Act and such Registrable Securities having been disposed of or transferred by the holder
thereof in accordance with such effective Registration Statement, (B) such Registrable Securities having been previously sold or
transferred in accordance with Rule 144 (or another exemption from the registration requirements of the 1933 Act), and (C) such securities
becoming eligible for resale without volume or manner-of-sale restrictions and without current public information requirements pursuant
to Rule 144.


 


“Regulation D” means Regulation
D as promulgated by the SEC under the 1933 Act.


 


“Rule 144” means Rule 144 promulgated
under the 1933 Act (or any successor rule).


 


“Sanctions” has the meaning
set forth in Section 4.28.


 


“SEC” means the United States
Securities and Exchange Commission.


 






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“SEC Filings” has the meaning
set forth in Section 4.7.


 


“Securities” means the Shares,
the Warrants and the Warrant Shares.


 


“Shareholder Approval” means
such approval as required by the applicable rules and regulations of Nasdaq from the shareholders of the Company to issue Warrant Shares
to the Investors in excess of the Beneficial Ownership Limitation.


 


“Shares” has the meaning set
forth in the recitals to this Agreement.


 


“Short Sales” means all “short
sales” as defined in Rule 200 of Regulation SHO under the 1934 Act (but shall not be deemed to include the location and/or reservation
of borrowable shares of Common Stock).


 


“Subscription Amount” means,
as to an Investor, the aggregate amount to be paid for the Closing Securities purchased hereunder as specified opposite such Investor’s
name on Exhibit A attached hereto, under the column entitled “Aggregate Purchase Price of Closing Securities,” in U.S.
Dollars and in immediately available funds.


 


“Subsidiary” has the meaning
set forth in Section 4.1.


 


“Trading Day” means a day on
which Nasdaq is open for trading.


 


“Transfer Agent” has the meaning
set forth in Section 7.2.


 


“Transaction Documents” means
this Agreement, including the exhibits attached hereto, the Warrants and any other documents or agreements executed and delivered by the
Company and the Investors in connection with the transactions contemplated hereunder.


 


“Warrants” has the meaning set
forth in the Recitals.


 


“Warrant Shares” means the shares
of Common Stock issuable upon exercise of the Warrants.


 


“1933 Act” means the Securities
Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.


 


“1934 Act” means the Securities
Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.


 


2.                     
Purchase and Sale of the Shares and Warrants. On the Closing Date, upon the terms and subject to the conditions set forth
herein, the Company will issue and sell, and each Investor will purchase, severally and not jointly, (i) the number of Shares set forth
opposite the name of such Investor under the heading “Number of Shares” on Exhibit A attached hereto, at a price per
Share equal to $4.35, (ii) the number of Warrants set forth opposite the name of such Investor under the heading “Number of Warrants”
on Exhibit A attached hereto, each with an exercise price equal to $0.01 per Warrant Share, at a price per Warrant equal to $4.34
each with an exercise price equal to $0.01 per Warrant Share (subject to adjustment as provided therein).


 






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3.                     
Closing.


 


3.1.               
The closing of the purchase and sale of the Closing Securities pursuant to this Agreement (the “Closing”) shall
be held remotely via the exchange of documents and signatures no later than 10:00 AM (Eastern Time) on October 12, 2022 (the “Closing
Date”). At or prior to the Closing, each Investor shall execute any related agreements or other documents required to be executed
hereunder, dated on or before the Closing Date, including but not limited to the Investor Questionnaire in the form attached hereto as
Appendix I (the “Investor Questionnaire”).


 


3.2.               
On the Closing Date, each Investor shall deliver or cause to be delivered to the Company the Subscription Amount via wire transfer
of immediately available funds pursuant to the wire instructions delivered to such Investor by the Company on or prior to the Closing
Date.


 


3.3.               
At or before the Closing, the Company shall deliver or cause to be delivered to each Investor (i) the number of Shares, registered
in the name of the Investor (or its nominee in accordance with its delivery instructions) in book entry form, in the amount set forth
opposite the name of such Investor under the heading “Number of Shares” on Exhibit A attached hereto and (ii) the number
of Warrants set forth opposite the name of such Investor under the heading “Number of Warrants” on Exhibit A attached
hereto, registered in the name of the Investor.


 


4.                     
Representations and Warranties of the Company. The Company hereby represents and warrants to the Investors that, except
as otherwise described in the SEC Filings, which qualify these representations and warranties in their entirety, as of the date hereof
and the Closing Date (except for the representations and warranties that speak as of a specific date, which shall be made as of such date):


 


4.1.               
Organization, Good Standing and Qualification. The Company is an entity duly incorporated, validly existing and in good
standing under the laws of the State of Delaware, with the requisite corporate power and authority to own or lease and use its properties
and assets, to execute and deliver the Transaction Documents, to carry out the provisions of the Transaction Documents, to issue and sell
the Closing Securities and to carry on its business as presently conducted and as proposed to be conducted as described in the SEC Filings.
Immunic AG (the “Subsidiary”) is the only subsidiary of the Company and is wholly owned by the Company. The Subsidiary
is an entity duly incorporated or otherwise organized, validly existing and in good standing (to the extent such concept exists in the
relevant jurisdiction) under the laws of the jurisdiction of its incorporation or organization, as applicable, and has all requisite power
and authority to carry on its business and to own and use its properties. Neither the Company nor its Subsidiary is in violation or default
of any of the provisions of its respective articles of association, charter, certificate of incorporation, bylaws, limited partnership
agreement or other organizational or constitutive documents. Each of the Company and its Subsidiary is duly qualified to do business as
a foreign entity and is in good standing (to the extent such concept exists in the relevant jurisdiction) in each jurisdiction in which
the conduct of its business or its ownership or leasing of property makes such qualification necessary, except to the extent any failure
to so qualify has not had and would not reasonably be expected to have a Material Adverse Effect.


 






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4.2.               
Authorization. The Company has the requisite corporate power and authority and has taken all requisite corporate action
necessary for, and no further action on the part of the Company, its officers, directors and stockholders is necessary for, (i) the
authorization, execution and delivery of the Transaction Documents, (ii) the authorization of the performance of all obligations
of the Company hereunder or thereunder, and (iii) the authorization, issuance (or reservation for issuance) and delivery of the Closing
Securities. The Company’s execution and delivery of each of the Transaction Documents and the consummation by it of the transactions
contemplated hereby and thereby have been duly and validly authorized by all necessary board and stockholder action. Each of the Transaction
Documents has been duly executed and delivered by the Company and, assuming due authorization, execution and delivery by the Investors,
constitutes valid and binding obligations of the Company enforceable in accordance with their terms, except (a) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights,
(b) general principles of equity that restrict the availability of equitable remedies and (c) to the extent that the enforceability of
indemnification provisions may be limited by applicable laws.


 


4.3.               
Capitalization. The Company is authorized under the Certificate of Incorporation to issue 130,000,000 shares of Common Stock
and 20,000,000 shares of preferred stock. The Company’s disclosure of its issued and outstanding capital stock in its most recent
SEC Filing containing such disclosure was accurate in all material respects as of the date indicated in such SEC Filing. Since the date
indicated in such SEC Filing, there has not been any change to the Company’s capital stock, other than as a result of the exercise
of stock options or incentive awards in the ordinary course of business pursuant to the Company’s stock-based compensation plans
described in the SEC Filings, and the exercise of warrants to purchase Common Stock described in the SEC Filings, and the issuance of
shares of Common Stock pursuant to the Company’s at-the-market sales agreement described in the SEC Filings. All of the issued and
outstanding shares of the Company’s capital stock have been duly authorized and validly issued and are fully paid and nonassessable,
and none of such shares were issued in violation of any pre-emptive rights and such shares were issued in compliance in all material respects
with applicable state and federal securities law and any rights of third parties. No Person is entitled to pre-emptive or similar statutory
or contractual rights with respect to the issuance by the Company of any securities of the Company. Except as described in the SEC Filings
and as provided in this Agreement, there are no outstanding warrants, options, convertible securities or other rights, agreements or arrangements
of any character under which the Company is or may be obligated to issue any equity securities of any kind. Except as described in the
SEC Filings or for agreements filed as exhibits to the SEC Filings, there are no material voting agreements, buy-sell agreements, option
or right of first purchase agreements or other agreements of any kind among the Company and any of the security holders of the Company
relating to the securities of the Company held by them. Except as described in the SEC Filings and as provided in this Agreement, no Person
has the right to require the Company to register any securities of the Company under the 1933 Act, whether on a demand basis or in connection
with the registration of securities of the Company for its own account or for the account of any other Person. The issuance and sale of
the Closing Securities hereunder will not obligate the Company to issue shares of Common Stock or other securities to any other Person
(other than the Investors) and will not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding
security.


 






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4.4.               
Valid Issuance. The Shares have been duly and validly authorized and, when issued and paid for pursuant to this Agreement,
will be validly issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions (other than those
waived or created by the Investors), except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable
securities laws. The Warrants have been duly and validly authorized and, when issued and paid for pursuant to this Agreement, will be
validly issued. The Warrant Shares have been duly and validly authorized and reserved for issuance and, upon exercise of the Warrants
in accordance with their terms, including the payment of any exercise price therefor, will be validly issued, fully paid and nonassessable
and will be free and clear of all encumbrances and restrictions (other than those created by the Investors), except for restrictions on
transfer set forth in the Transaction Documents or imposed by applicable securities laws. Assuming the accuracy of the representations
and warranties of the Investors in this Agreement, the Closing Securities will be issued in compliance with all applicable federal and
state securities laws.


 


4.5.               
Consents. The execution, delivery and performance by the Company of the Transaction Documents and the offer, issuance and
sale of the Closing Securities require no consent of, action by or in respect of, or filing with, any Person, governmental body, agency,
or official other than filings that have been made pursuant to applicable state securities laws and post-sale filings pursuant to applicable
state and federal securities laws and the rules and regulations of Nasdaq, which the Company undertakes to file within the applicable
time periods, except as have already been made, obtained or waived or where the failure to obtain any such approval, authorization, consent,
order or filing would not impair the ability of the Company to issue and sell the Closing Securities or to consummate the transactions
contemplated by this Agreement.


 


4.6.               
No Material Adverse Change. Since June 30, 2022, except as specifically set forth in a subsequent SEC Filing, there has
not been:


 


(i)                    
any change in the consolidated assets, liabilities, financial condition or operating results of the Company from that reflected
in the financial statements included in the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2022, except
for changes in the ordinary course of business which have not had and would not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect;


 


(ii)                 
any declaration or payment by the Company of any dividend, or any authorization or payment by the Company of any distribution,
on any of the capital stock of the Company, or any redemption or repurchase by the Company of any securities of the Company;


 


(iii)               
any material damage, destruction or loss, whether or not covered by insurance, to any assets or properties of the Company;


 






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(iv)                
any waiver, not in the ordinary course of business, by the Company of a material right or of a material debt owed to it;


 


(v)                  
any satisfaction or discharge of a material lien, claim or encumbrance or payment of any obligation by the Company, except in the
ordinary course of business;


 


(vi)                
any change or amendment to the Certificate of Incorporation or Bylaws, or termination of or material amendment to any contract
of the Company that the Company is required to file with the SEC pursuant to Item 601(b)(10) of Regulation S-K;


 


(vii)             
any material labor difficulties or, to the Company’s Knowledge, labor union organizing activities with respect to employees
of the Company;


 


(viii)           
any material transaction entered into by the Company other than in the ordinary course of business;


 


(ix)                
the loss of the services of any executive officer (as defined in Rule 405 under the 1933 Act) of the Company; or


 


(x)                  
any other event or condition that, to the Company’s Knowledge, has had or would reasonably be expected to have a Material
Adverse Effect.


 


4.7.               
SEC Filings. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by
the Company under the 1933 Act and the 1934 Act, including pursuant to Section 13(a) or 15(d) thereof, for the year preceding
the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the “SEC Filings”).
At the time of filing thereof, the SEC Filings complied as to form in all material respects with the requirements of the 1933 Act or 1934
Act, as applicable, and none of the SEC Filings, when filed, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading.


 


4.8.               
No Conflict, Breach, Violation or Default. The execution, delivery and performance of the Transaction Documents by the Company
and the issuance and sale of the Closing Securities in accordance with the provisions thereof will not (i) conflict with or result
in a breach or violation of (a) any of the terms and provisions of, or constitute a default under, the Certificate of Incorporation
or Bylaws, both as in effect on the date hereof (true and complete copies of which have been made available to the Investors through the
EDGAR system), or (b) assuming the accuracy of the representations and warranties in Section 5, any applicable statute, rule, regulation
or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or its Subsidiary,
or any of their assets or properties, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time
or both would become a default) under, result in the creation of any lien, encumbrance or other adverse claim upon any of the properties
or assets of the Company or its Subsidiary or give to others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any Material Contract except, in the case of clauses (i)(b) and (ii) only, for such conflicts,
breaches, violations and defaults as have not and would not reasonably be expected to have a Material Adverse Effect. This Section does
not relate to matters with respect to tax status, which are the subject of Section 4.10, employee relations and labor matters,
which are the subject of Section 4.13, intellectual property, which are the subject of Section 4.14, and environmental
laws, which are the subject of Section 4.15.


 






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4.9.               
Compliance.  The Company is not (i) in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a default by the Company under), nor has the Company received
notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement
or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been
waived), (ii) in violation of any judgment, decree or order of any court, arbitrator or governmental body or (iii) in violation
of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state
and local laws relating to environmental protection, occupational health and safety, product quality and safety and employment and labor
matters, and excluding taxes, which are the subject of Section 4.10, except in each case as would not have or reasonably be expected
to result in a Material Adverse Effect.


 


4.10.           
Tax Matters. The Company and its Subsidiary have filed all tax returns required to have been filed by them and have paid
all taxes shown thereon or otherwise owed by them, other than (i) those taxes being contested in good faith and for which adequate reserves
have been provided or (ii) where the failure to so file or pay would not reasonably be expected to result in a Material Adverse Effect.
The Company has made adequate charges, accruals and reserves in the applicable financial statements referred to in Section 4.17
below in respect of all federal, state and foreign income and franchise taxes for all periods as to which the tax liability of the Company
or its Subsidiary has not been finally determined, except to the extent of any inadequacy that would not reasonably be expected to result
in a Material Adverse Effect. There are no tax liens or claims pending or, to the Company’s Knowledge, threatened against the Company
or its Subsidiary or any of their respective assets or property, which could reasonably be expected to result in a Material Adverse Effect.


 


4.11.           
Title to Properties. The Company and its Subsidiary have good and marketable title to all real properties and all other
tangible properties and assets owned by them, in each case free from liens, encumbrances and defects, except such as would not reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect; and the Company and its Subsidiary hold any leased real
or personal property under valid, subsisting and enforceable leases with which the Company and its Subsidiary are in compliance and with
no exceptions, except such as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect and
except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent
convenience or other similar laws relating to creditor’s rights generally and (ii) general principles of equity and the discretion
of the court before which any proceeding therefor may be brought.


 


4.12.           
Certificates, Authorities and Permits. The Company and its Subsidiary possess certificates, authorities or permits issued
by appropriate governmental agencies or bodies necessary to conduct the business now operated by them, except where the failure to so
possess would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect. During the past three
years, the Company and its Subsidiary have not received any written notice of proceedings relating to the revocation or modification of
any such certificate, authority or permit that, if determined adversely to the Company or its Subsidiary, would reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect.


 






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4.13.           
Labor Matters.


 


(a)                  
Neither the Company nor its Subsidiary are parties to or bound by any collective bargaining agreements or other agreements with
labor organizations.


 


(b)                  
No labor dispute before the National Labor Relations Board with the employees of the Company or its Subsidiary, or with the employees
of any principal supplier, manufacturer, customer or contractor of the Company, exists or, to the Company’s Knowledge, is threatened
or imminent that would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.


 


(c)                  
There are no claims pending against the Company before the Equal Employment Opportunity Commission or any other administrative
body or in any court asserting any violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination Act of 1967, 42 U.S.C.
§§ 1981 or 1983 or any other federal, state or local law, statute or ordinance barring discrimination of employment that would
reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.


 


4.14.           
Intellectual Property. Except as disclosed in the SEC Filings, and as would not reasonably be expected, individually or
in the aggregate, to have a Material Adverse Effect, the Company and its Subsidiary own, possess, license or have other rights to use,
the patents and patent applications, copyrights, trademarks, service marks, trade names, service names and trade secrets as necessary
or material for use in connection with their businesses as described in the SEC Filings (collectively, the “Intellectual Property
Rights”), and to the Company’s Knowledge, there are no material liens, security interests or encumbrances that have been
filed against any of these Intellectual Property Rights. No actions, suits, proceedings or claims are pending, or to the Company’s
Knowledge, asserted or threatened against the Company or its Subsidiary alleging infringement of a patent or other intellectual property
right of others. To the Company’s Knowledge, there is no existing infringement by another Person of any of the Intellectual Property
Rights that would materially affect the use thereof by the Company. To the Company’s Knowledge, the development, manufacture, sale,
and any currently proposed use of any of the products, proposed products or processes of the Company referred to in the SEC Filings, in
the current or proposed conduct of the business of the Company, do not, and will not upon commercialization, to the Company’s Knowledge,
infringe any right or valid patent claim of any third party. To the Company’s Knowledge, there are no ownership rights of third
parties to any Intellectual Property Rights in any field of use that is exclusively licensed to the Company, other than any licensor to
the Company of such Intellectual Property Rights. To the Company’s Knowledge, no action, suit, claim or other proceeding, except
for routine patent and trademark prosecution proceedings in patent offices throughout the world, is pending or threatened challenging
the validity, enforceability, scope, registration, ownership or use of any of the Intellectual Property Rights. To the Company’s
Knowledge, no action, suit, claim or other proceeding is pending or threatened, challenging the Company’s rights in or to any Intellectual
Property Rights.  The Company and its Subsidiary have security procedures designed to protect the secrecy, confidentiality and value
of their Intellectual Property Rights. To the Company’s Knowledge, no employee is in or has been in violation in any material respect
of any term of any employment contract, invention assignment agreement, noncompetition agreement, or nondisclosure agreement
with a former employer, executed prior to such employee’s employment where the basis of such violation relates to such employee’s
employment and such violation occurred while employed and while the contract was valid and in effect. All material licenses or other material
agreements under which the Company is granted rights to Intellectual Property are, to the Company’s Knowledge, in full force and
effect and, to the Company’s Knowledge, there is no material default by any other party thereto. To the Company’s Knowledge,
the licensors under material licenses and other material agreements had all requisite power and authority to grant the rights to the Intellectual
Property Rights purported to be granted thereby. To the Company’s Knowledge, the consummation of the transactions contemplated hereby
and by the other Transaction Documents will not result in the alteration, loss, impairment of or restriction on the Company’s or
its Subsidiary’s ownership or right to use any Intellectual Property Rights that is material to the conduct of the Company’s
business as now conducted.


 






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4.15.           
Environmental Matters. Except as disclosed in the SEC Filings and as would not reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect, neither the Company nor its Subsidiary is in violation of any statute, rule, regulation,
decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous
or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances
(collectively, “Environmental Laws”), has released any hazardous substances regulated by Environmental Law on to any
real property that it owns or operates, or has received any written notice or claim that it is liable for any off-site disposal or contamination
pursuant to any Environmental Laws; and to the Company’s Knowledge, there is no pending or threatened investigation that would reasonably
be expected to lead to such a claim.


 


4.16.           
Legal Proceedings. Except as disclosed in the SEC Filings, there are no legal, governmental or regulatory investigations,
actions, suits or proceedings pending to which the Company or its Subsidiary is a party or to which any property of the Company is subject
that, individually or in the aggregate, if determined adversely to the Company or its Subsidiary, would reasonably be expected to have
a Material Adverse Effect; and to the Company's Knowledge, no such proceedings are threatened or contemplated by governmental authorities
or others.


 


4.17.           
Financial Statements. The financial statements included in each SEC Filing comply in all material respects with applicable
accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing (or to the extent
corrected by a subsequent restatement) and present fairly, in all material respects, the financial position of the Company as of the dates
shown and its results of operations and cash flows for the periods shown, subject in the case of unaudited financial statements to normal
year-end audit adjustments, and such financial statements have been prepared in conformity with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”) (except as may be disclosed therein or
in the notes thereto, and except that the unaudited financial statements may not contain all footnotes required by GAAP, and, in the case
of quarterly financial statements, as permitted by Form 10-Q under the 1934 Act). There are no financial statements (historical or pro
forma) that are required to be included in the SEC Filings that are not so included as required.


 






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4.18.           
Insurance Coverage. The Company and its Subsidiary maintain insurance covering their respective properties, operations,
personnel and businesses as the Company reasonably deems adequate; the Company reasonably believes such insurance insures against such
losses and risks in accordance with customary industry practice to protect the Company and its Subsidiary and their respective businesses
and which is commercially reasonable for the current conduct of their respective businesses; all such insurance is fully in force on the
date hereof; the Company and its Subsidiary are in compliance with the terms of such policies in all material respects; neither the Company
nor its Subsidiary has 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; there are no material claims by the Company or its Subsidiary under any such
policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause; and neither
the Company nor its Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that
would not reasonably be expected to have a Material Adverse Effect.


 


4.19.           
Compliance with Nasdaq Continued Listing Requirements. The Company is in compliance with applicable Nasdaq continued listing
requirements. There are no proceedings pending or, to the Company’s Knowledge, threatened against the Company relating to the continued
listing of the Common Stock on Nasdaq and the Company has not received any notice of, nor, to the Company’s Knowledge, is there
any reasonable basis for, the delisting of the Common Stock from Nasdaq.


 


4.20.           
Brokers and Finders. Neither the Company nor its Subsidiary is a party to any contract, agreement or understanding with
any Person, other than the Placement Agents, that would give rise to a valid claim against any of them for a brokerage commission, finder’s
fee or like payment in connection with the offering and sale of the Securities. Other than the Placement Agents, no Person will have,
as a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against or upon the Company
or, to the Company’s Knowledge, an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of the Company.


 


4.21.           
No Directed Selling Efforts or General Solicitation. Neither the Company nor its Subsidiary nor any Person acting on their
behalf has conducted any general solicitation or general advertising (as those terms are used in Regulation D) in connection with
the offer or sale of any of the Closing Securities.


 


4.22.           
No Integrated Offering. Neither the Company nor its Subsidiary nor any Person acting on their behalf has, directly or indirectly,
made any offers or sales of any Company security or solicited any offers to buy any Company security, under circumstances that would adversely
affect reliance by the Company on Section 4(a)(2) for the exemption from registration for the transactions contemplated hereby or
would require registration of the Closing Securities under the 1933 Act. Neither the Company nor its Subsidiary solicited an Investor
through the use of general solicitation and the Company or one or more of the Placement Agents has a substantive relationship with each
Investor that was established prior to the commencement of the exempt offering contemplated herein.


 






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4.23.           
Internal Controls. The Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-15(c)
and 15d-15(e) of the 1934 Act) for the Company and designed such disclosure controls and procedures to ensure that material information
relating to the Company and required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is made
known to the certifying officers by others within the Company. The Company maintains a system of internal accounting controls sufficient
to provide reasonable assurance that (i) receipts and expenditures are being made in accordance with management’s general or specific
authorizations, and (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP.
The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of the end
of the period covered by the most recently filed periodic report under the 1934 Act (such date, the “Evaluation Date”).
The Company presented in its most recently filed periodic report under the 1934 Act the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the end of the Company’s
most recent audited fiscal year, to the Company’s Knowledge, there have been no significant deficiencies or material weakness detected
in the Company’s internal control over financial reporting (whether or not remediated) and no change in the Company’s internal
control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal
control over financial reporting. The Company is not aware of any change in its internal control over financial reporting that has occurred
during its most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.


 


4.24.           
Investment Company. The Company is not required to be registered as, and immediately following the Closing will not be required
to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.


 


4.25.           
Tests and Preclinical and Clinical Trials. During the past three years, the studies, tests and preclinical and clinical
trials conducted by or, to the Company’s Knowledge, on behalf of the Company were and, if still pending, are being, conducted in
all material respects in accordance with all applicable Health Care Laws. The descriptions of the studies, tests and preclinical and clinical
trials conducted by or, to the Company’s Knowledge, on behalf of the Company, contained in the SEC Filings are accurate in all material
respects; the Company is not aware of any other studies, tests or preclinical and clinical trials, the results of which call into question
the results described in the SEC Filings; and the Company has not received any written notices or correspondence from the U.S. Food and
Drug Administration (the “FDA”), any foreign, state or local governmental body exercising comparable authority or any
Institutional Review Board requiring the termination, suspension or clinical hold of any studies, tests or preclinical or clinical trials
conducted by or on behalf of the Company. During the past three years, neither the Company nor, to the Company’s Knowledge, any
of its officers or employees has committed any act, made any statement or failed to make any statement that would reasonably be expected
to provide a basis for the FDA to invoke its policy with respect to “Fraud, Untrue Statements of Material Facts, Bribery, and Illegal
Gratuities” set forth in 56 Fed. Reg. 46191 (Sept. 10, 1991) and any amendments thereto. During the past three years, neither the
Company nor, to the Company’s Knowledge, any officer or employee of the Company has been convicted of any crime or engaged in any
conduct that has resulted in or would reasonably be expected to result in (i) debarment under 21 U.S.C. Section 335a or any
similar state law or (ii) exclusion under 42 U.S.C. Section 1320a-7 or any similar state law or regulation.


 






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4.26.           
Manipulation of Price.  The Company has not, and, to the Company’s Knowledge, no Person acting on its behalf
has taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of any of the Closing Securities.


 


4.27.           
Bad Actor Disqualification. None of the Company, any predecessor or affiliated issuer of the Company nor, to the Company’s
Knowledge, any director or executive officer of the Company or any promoter connected with the Company in any capacity, is subject to
any of the “bad actor” disqualifications within the meaning of Rule 506(d) under the 1933 Act, except for a disqualification
event covered by Rule 506(d)(2) or (d)(3). The Company has complied, to the extent applicable, with any disclosure obligations under Rule
506(e) under the Securities Act.


 


4.28.           
Foreign Corrupt Practices; Questionable Payments; Office of Foreign Assets Control.  Neither the Company nor its Subsidiary
has, and to the Company’s Knowledge, no agent or other person acting on behalf of the Company or its Subsidiary has (i) directly
or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic
political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or its Subsidiary
(or made by any person acting on behalf of the Company or its Subsidiary of which the Company is aware) which is in violation of law,
or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. Neither the Company nor
the Subsidiary, nor any or their directors, officers or employees, nor, to the Company’s Knowledge, any agent, affiliate or representative
of the Company or the Subsidiary, is an individual or entity that is, or is owned or controlled by an individual or entity that is: (i)
the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control, the
United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
“Sanctions”), nor (ii) located, organized or resident in a country or territory that is the subject of Sanctions (including,
without limitation, Burma/Myanmar, Cuba, Iran, Libya, North Korea and Syria).


 


4.29.           
Anti-Money Laundering. The operations of the Company and the Subsidiary are and have been conducted at all times in material
compliance with all applicable financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act, as amended
by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001 (USA PATRIOT Act), and the applicable anti-money laundering statutes of jurisdictions where the Company and its Subsidiary conduct
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 its Subsidiary with respect to the
Anti-Money Laundering Laws is pending or, to the Company’s Knowledge, threatened.


 






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4.30.           
Takeover Protections; Rights Agreements.  The Company and the Board of Directors of the Company have taken all necessary
action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the Company’s charter documents or the laws of its state
of incorporation that is or could reasonably be expected to become applicable to any of the Investors as a result of the Investors and
the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including, without limitation, the
Company’s issuance of the Closing Securities and the Investors’ ownership of the Closing Securities.


 


4.31.           
Transactions With Affiliates and Employees. Other than as contemplated by the Transaction Documents, no relationship, direct
or indirect, exists between or among the Company, on the one hand, and the directors, officers, stockholders, customers or suppliers of
the Company, on the other hand, that is required to be described in the SEC Filings that is not so described.


 


5.                     
Representations and Warranties of the Investors. Each of the Investors hereby, severally and not jointly, represents and
warrants to the Company that:


 


5.1.               
Organization and Existence. Such Investor is a validly existing corporation, limited partnership or limited liability company
and has all requisite corporate, partnership or limited liability company power and authority to enter into and consummate the transactions
contemplated by the Transaction Documents and to carry out its obligations hereunder and thereunder, and to invest in the Closing Securities
pursuant to this Agreement.


 


5.2.               
Authorization. The execution, delivery and performance by such Investor of the Transaction Documents to which such Investor
is a party have been duly authorized and each has been duly executed and when delivered will constitute the valid and legally binding
obligation of such Investor, enforceable against such Investor in accordance with their respective terms, except: (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.


 


5.3.               
Purchase Entirely for Own Account. The Closing Securities to be received by such Investor hereunder will be acquired for
such Investor’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation
of the 1933 Act, and such Investor has no present intention of selling, granting any participation in, or otherwise distributing the same
in violation of the 1933 Act without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all
or any part of such Closing Securities in compliance with applicable federal and state securities laws. Nothing contained herein shall
be deemed a representation or warranty by any Investor to hold the Closing Securities for any period of time. Such Investor is not a broker-dealer
registered with the SEC under the 1934 Act or an entity engaged in a business that would require it to be so registered.


 






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5.4.               
Investment Experience. Such Investor acknowledges that it can bear the economic risk and complete loss of its investment
in the Securities and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and
risks of the investment contemplated hereby.


 


5.5.               
Disclosure of Information. Such Investor has had an opportunity to receive, review and understand all information related
to the Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its business and the
terms and conditions of the offering of the Securities, and has conducted and completed its own independent due diligence. Such Investor
acknowledges receipt of copies of, or access through the EDGAR system to, the SEC Filings. Based on the information such Investor has
deemed appropriate, it has independently made its own analysis and decision to enter into the Transaction Documents. Such Investor is
relying exclusively on its own investment analysis and due diligence (including professional advice from its own independent advisors
it deems appropriate), and without reliance on the Placement Agents, with respect to the execution, delivery and performance of the Transaction
Documents, the Securities and the business, condition (financial and otherwise), management, operations, properties and prospects of the
Company, including but not limited to all business, legal, regulatory, accounting, credit and tax matters. Such Investor has not relied
on any information or advice furnished by or on behalf of the Placement Agents in connection with the Transaction Documents or the transactions
contemplated thereby. Neither such inquiries nor any other due diligence investigation conducted by such Investor shall modify, limit
or otherwise affect such Investor’s right to rely on the Company’s representations and warranties contained in this Agreement.


 


5.6.               
Restricted Securities. Such Investor understands that the Securities are characterized as “restricted securities”
under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be resold without registration under the 1933 Act only in certain
limited circumstances.


 


5.7.               
Legends. It is understood that, except as provided below, certificates or book entry positions evidencing the Securities
may bear the following or any similar legend:


 


“The
securities represented hereby have not been registered with the Securities and Exchange Commission or the securities commission of any
state in reliance upon an exemption from registration under the Securities Act of 1933, as amended, and, accordingly, may not be transferred
unless (i) such securities have been registered for sale pursuant to the Securities Act of 1933, as amended, (ii) such securities
may be sold pursuant to Rule 144, or (iii) the Company has received an opinion of counsel reasonably satisfactory to it that
such transfer may lawfully be made without registration under the Securities Act of 1933, as amended. These securities are subject to
transfer and other restrictions set forth in a SECURITIES Purchase Agreement, dated OCTOBER 10, 2022, copies of which are on file with
the Company. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.” 


 






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If required by the authorities of any state in connection
with the issuance and sale of the Securities, the legend required by such state authority.


 


5.8.               
Accredited Investor. At the time such Investor was offered the Securities, it was and, as of the date hereof, such Investor
is an “accredited investor” within the meaning of Rule 501 under the 1933 Act and has executed and delivered to the Company
its Investor Questionnaire, which such Investor represents and warrants is true, correct and complete. Such Investor is a sophisticated
institutional investor with sufficient knowledge, sophistication and experience in business, including transactions involving private
investments in public equity, to properly evaluate the risks and merits of its purchase of the Closing Securities. Such Investor has determined
based on its own independent review and such professional advice as it deems appropriate that its purchase of the Closing Securities and
participation in the transactions contemplated by the Transaction Documents (i) are fully consistent with its financial needs, objectives
and condition, (ii) comply and are fully consistent with all investment policies, guidelines and other restrictions applicable to such
Investor, (iii) have been duly authorized and approved by all necessary action, (iv) do not and will not violate or constitute a default
under such Investor’s charter, bylaws or other constituent document, if applicable, or under any law, rule, regulation, agreement
or other obligation by which such Investor is bound and (v) are a fit, proper and suitable investment for such Investor, notwithstanding
the substantial risks inherent in investing in or holding the Securities.


 


5.9.               
No General Solicitation; Pre-Existing Relationship. Such Investor did not learn of the investment in the Shares as a result
of any general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (a)
any advertisement, article, notice or other communication published in any newspaper, magazine, website, or similar media, or broadcast
over television or radio, or (b) any seminar or meeting to which such Investor was invited by any of the foregoing means of communications.
Each Investor has a substantive relationship with the Company or one or more of the Placement Agents that was established prior to the
commencement of the exempt offering contemplated herein.


 


5.10.           
Brokers and Finders. No Person will have, as a result of the transactions contemplated by the Transaction Documents, any
valid right, interest or claim against or upon the Company or an Investor for any commission, fee or other compensation pursuant to any
agreement, arrangement or understanding entered into by or on behalf of such Investor.


 






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5.11.           
Short Sales and Confidentiality Prior to the Date Hereof.  Other than consummating the transactions contemplated hereunder,
such Investor has not, nor has any Person acting on behalf of or pursuant to any understanding with such Investor, directly or indirectly
executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time
that such Investor was first contacted by the Company, a Placement Agent or any other Person regarding the transactions contemplated hereby
and ending immediately prior to the date hereof.  Notwithstanding the foregoing, in the case of an Investor that is a multi-managed
investment vehicle whereby separate portfolio managers manage separate portions of such Investor’s assets and the portfolio managers
have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Investor’s assets,
the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the
investment decision to purchase the Securities covered by this Agreement.  Such Investor, its Affiliates and, to the knowledge of
such Investor, authorized representatives and advisors of such Investor who are aware of the transactions contemplated hereby, maintained
the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of such transaction).
Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or
preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to
effect Short Sales or similar transactions in the future.


 


5.12.           
 No Government Recommendation or Approval. Such Investor understands that no United States federal or state agency, or similar
agency of any other country, has reviewed, approved, passed upon, or made any recommendation or endorsement of the Company or the purchase
of the Securities.


 


5.13.           
No Conflicts. The execution, delivery and performance by such Investor of the Transaction Documents and the consummation
by such Investor of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents
of such Investor or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which such Investor is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities laws) applicable to such Investor, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults,
rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the
ability of such Investor to perform its obligations hereunder.


 


5.14.           
Residency. Such Investor’s office in which its investment decision with respect to the Closing Securities was made
is located at the address immediately below such Investor’s name on the Schedule of Investors.


 






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5.15.
       Placement Agents. Such Investor hereby acknowledges and agrees that (i) the
Placement Agents are acting solely as placement agents in connection with the execution, delivery and performance of the Transaction
Documents and are not acting as underwriters or in any other capacity and are not and shall not be construed as fiduciaries for such
Investor, the Company or any other Person in connection with the execution, delivery and performance of the Transaction Documents,
(ii) the Placement Agents have not made and will not make any representation or warranty, whether express or implied, of any kind or
character, and have not provided any advice or recommendation in connection with the execution, delivery and performance of the
Transaction Documents, (iii) the Placement Agents will not have any responsibility with respect to (a) any representations,
warranties or agreements made by any Person under or in connection with the execution, delivery and performance of the Transaction
Documents, or the execution, legality, validity or enforceability (with respect to any Person) thereof, or (b) the business,
affairs, financial condition, operations, properties or prospects of, or any other matter concerning the Company, and (iv) the
Placement Agents will not have any liability or obligation (including without limitation, for or with respect to any losses, claims,
damages, obligations, penalties, judgments, awards, liabilities, costs, expenses or disbursements incurred by such Investor, the
Company or any other person or entity), whether in contract, tort or otherwise, to such Investor, or to any Person claiming through
it, in respect of the execution, delivery and performance of the Transaction Documents, except, in each case in this clause (iv),
for such party’s own gross negligence, willful misconduct or bad faith.


 


6.                     
Conditions to Closing.


 


6.1.               
Conditions to the Investors’ Obligations. The obligation of each Investor to purchase Closing Securities at the Closing
is subject to the fulfillment to such Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any
of which may be waived by such Investor (as to itself only):


 


(a)                  
The representations and warranties made by the Company in Section 4 hereof, as qualified by the SEC Filings, shall
be true and correct in all material respects (except for those representations and warranties which are qualified as to materiality or
by Material Adverse Effect, in which case such representations and warranties shall be true and correct in all respects) as of the date
hereof and on the Closing Date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which
case such representation or warranty shall be true and correct as of such earlier date. The Company shall have performed in all material
respects all obligations and covenants herein required to be performed by it on or prior to the Closing Date.


 


(b)                  
The Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary for consummation
of the purchase and sale of the Closing Securities and the consummation of the other transactions contemplated by the Transaction Documents,
all of which shall be in full force and effect.


 


(c)                  
The Company shall have filed with Nasdaq a Notification Form: Listing of Additional Shares for the Closing Securities.


 


(d)                  
No judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy
court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been
instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby or in the other
Transaction Documents.


 






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(e)                  
The Investors shall have received an opinion from Dentons US LLP, the Company’s counsel, dated as of the Closing Date, in
a customary form reasonably acceptable to the Investors.


 


(f)                   
The Investors shall have received the duly executed Irrevocable Transfer Agent Instructions instructing the Transfer Agent to deliver
a book-entry statement evidencing the number of Shares equal to such Investor’s shares of Common Stock set forth below next to such
Investor’s name on Exhibit A attached hereto registered in the name of such Investor.


 


(g)                  
No stop order or suspension of trading shall have been imposed by Nasdaq, the SEC or any other governmental or regulatory body
with respect to public trading in the Common Stock.


 


(h)                  
The Company shall have delivered a certificate of the Secretary of the Company (the “Secretary’s Certificate”),
dated as of the Closing Date, (a) certifying the resolutions adopted by the Board of Directors of the Company or a duly authorized committee
thereof approving the transactions contemplated by this Agreement and the other Transaction Documents and the issuance of the Closing
Securities, and (b) certifying the current versions of the Certificate of Incorporation and Bylaws of the Company.


 


(i)                    
Since the date hereof, no event or circumstance or series of events or circumstances shall have occurred that has had or would
reasonably be expected to have a Material Adverse Effect.


 


6.2.               
Conditions to Obligations of the Company. The Company’s obligation to sell and issue Closing Securities at the Closing
to each Investor is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following conditions,
any of which may be waived by the Company:


 


(a)                  
The representations and warranties made by each Investor in Section 5 hereof shall be true and correct in all material
respects (except for those representations and warranties which are qualified as to materiality, in which case such representations and
warranties shall be true and correct in all respects) as of the date hereof and on the Closing Date. The Investors shall have performed
in all material respects all obligations and covenants herein required to be performed by them on or prior to the Closing Date.


 


(b)                  
Each Investor shall have executed and delivered the Investor Questionnaire.


 


(c)                  
Any Investor purchasing Closing Securities at the Closing shall have paid in full its Subscription Amount to the Company.


 


6.3.               
Termination of Obligations to Effect Closing; Effects.


 


(a)                  
The obligations of the Company, on the one hand, and the Investors, on the other hand, to effect the Closing shall terminate as
follows:


 






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(i)                    
Upon the mutual written consent of the Company and Investors that agreed to purchase a majority of the Shares and the Warrant Shares
issuable upon exercise of the Warrants in the aggregate (the “Majority Investors”) to be issued and sold pursuant to
this Agreement;


 


(ii)                 
By the Company if any of the conditions set forth in Section 6.2 shall have become incapable of fulfillment, and shall
not have been waived by the Company; or


 


(iii)               
By an Investor (with respect to itself only) if any of the conditions set forth in Section 6.1 shall have become incapable
of fulfillment, and shall not have been waived by the Investor;


 


provided, however, that, except in the case of clause
(i) above, the party seeking to terminate its obligation to effect the Closing shall not then be in breach of any of its representations,
warranties, covenants or agreements contained in this Agreement or the other Transaction Documents if such breach has resulted in the
circumstances giving rise to such party’s seeking to terminate its obligation to effect the Closing.


 


(b)                  
In the event of termination by the Company or any Investor of its obligations to effect the Closing pursuant to this Section 6.3,
written notice thereof shall be given promptly to the other Investors by the Company and the other Investors shall have the right to terminate
their obligations to effect the Closing upon written notice to the Company and the other Investors. Nothing in this Section 6.3
shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or
the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations
under this Agreement or the other Transaction Documents.


 


7.                     
Covenants and Agreements of the Company.


 


7.1.               
Nasdaq Listing. From the date hereof until such time as the Shares and Warrant Shares have been sold pursuant to Rule 144
or are eligible for resale under Rule 144(b)(1) or any successor provision, the Company will take such action as is necessary to continue
the listing and trading of its Common Stock on Nasdaq and, in accordance, therewith, will take all actions necessary to comply in all
respects with the Company’s reporting, filing and other obligations under the bylaws or rules of such market or exchange, as applicable.
The Company further agrees, if the Company applies to have the Common Stock traded on any other trading market, it will then include in
such application all of the Shares and Warrant Shares, and will take such other action as is necessary to cause all of the Shares and
Warrant Shares to be listed or quoted on such other trading market as promptly as possible. The Company agrees to maintain the eligibility
of the Common Stock for electronic transfer through the Depository Trust Company or another established clearing corporation, including,
without limitation, by timely payment of fees to the Depository Trust Company or such other established clearing corporation in connection
with such electronic transfer.


 






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7.2.               
Removal of Legends. In connection with any sale or disposition of the Shares or the Warrant Shares by an Investor pursuant
to Rule 144 or pursuant to any other exemption under the 1933 Act such that the purchaser acquires freely tradable shares and upon
compliance by the Investor with the requirements of this Agreement, if requested by the Investor, the Company shall use its reasonable
best efforts to request that the transfer agent for the Common Stock (the “Transfer Agent”) remove any restrictive
legends related to the book entry account holding such Shares or Warrant Shares and make a new, unlegended entry for such book entry Shares
or Warrant Shares sold or disposed of without restrictive legends within two Trading Days of receipt of such request from the Investor
(such date, the “Legend Removal Date”) provided that the Company has received customary representations and other documentation
reasonably acceptable to the Company in connection therewith not later than 5:00 p.m. Eastern Time on the date of such request. Subject
to receipt by the Company of customary representations and other documentation reasonably acceptable to the Company in connection therewith,
upon the earliest of such time as the Shares and Warrant Shares (i) have been sold or transferred pursuant to an effective registration
statement, (ii) have been sold pursuant to Rule 144 or (iii) are eligible for resale under
Rule 144(b)(1) or any successor provision without the current public information requirement under Rule 144(c), the Company shall
(A) deliver to the Transfer Agent irrevocable instructions that the Transfer Agent shall make a new, unlegended entry for such book
entry Shares or Warrant Shares, and (B) cause its counsel to deliver to the Transfer Agent one or more opinions to the effect that
the removal of such legends in such circumstances may be effected under the 1933 Act. The Company shall be responsible for the fees of
its Transfer Agent and all the Depository Trust Company fees associated with such issuance.


 


7.3.               
Irrevocable Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent, and any
subsequent transfer agent to issue to the Investors (or in such nominee’s name(s) as designated by an Investor) book-entry notations
representing the Shares set forth next to such Investor’s name on Exhibit A attached hereto (the “Irrevocable Transfer
Agent Instructions”) and, upon exercise of the Warrants pursuant to their terms, the Company shall issue irrevocable instructions
to its transfer agent, and any subsequent transfer agent to issue to the Investors (or in such nominee’s name(s) as designated by
an Investor), book-entry notations representing the Warrant Shares (the “Warrant Share Instructions”). The Company
represents and warrants that no instruction other than the Irrevocable Transfer Agent Instructions and the Warrant Share Instructions
referred to in this Section 7.3 (or instructions that are consistent therewith) will be given by the Company to its transfer agent in
connection with this Agreement and that the Shares and the Warrant Shares shall otherwise be freely transferable on the books and records
of the Company as and to the extent provided in this Agreement and the other Transaction Documents and applicable law. The Company acknowledges
that a breach by it of its obligations under this Section 7.3 will cause irreparable harm to an Investor. Accordingly, the Company acknowledges
that the remedy at law for a breach of its obligations under this Section 7.3 will be inadequate and agrees, in the event of a breach
by the Company of the provisions of this Section 7.3, that an Investor shall be entitled, in addition to all other available remedies,
to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic
loss and without any bond or other security being required.


 


7.4.               
Transfer Restrictions. Each Investor agrees that it will sell, transfer or otherwise dispose of the Securities only in compliance
with all applicable state and federal securities laws.


 






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7.5.               
Reservation of Common Stock. As of the date hereof, the Company has reserved, and the Company shall take all action necessary
to at all times have authorized, and reserved for the purpose of issuance from and after the Closing Date, the number of shares of Common
Stock issuable upon exercise of the Warrants issued at the Closing (without taking into account any limitations on exercise of the Warrants
set forth therein).


 


7.6.               
Subsequent Equity Sales. The Company shall not, and shall use its commercially reasonable best efforts to ensure that no
controlled Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security
(as defined in Section 2 of the 1933 Act) that will be integrated with the offer or sale of the Shares in a manner that would require
the registration under the 1933 Act of the sale of the Shares to the Investors. The Company shall not take any action or steps that would
adversely affect reliance by the Company in any material respect on Section 4(a)(2) for the exemption from registration for the transactions
contemplated hereby or require registration of the Shares under the 1933 Act.


 


7.7.               
Short Sales and Confidentiality After the Date Hereof. Each Investor covenants that neither it nor any Affiliates acting
on its behalf or pursuant to any understanding with it will execute any Short Sales during the period from the date hereof until the earlier
of (i) after the transactions contemplated by this Agreement are first publicly announced or (ii) this Agreement is terminated in full.
Each Investor covenants that until such time as all confidential information disclosed to it in connection with this transaction is publicly
disclosed by the Company, such Investor will maintain the confidentiality of all such information, unless otherwise legally required to
disclose.


 


7.8.               
Adjustments in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable
in shares of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly
shares of Common Stock), combination or other similar recapitalization or event occurring after the date hereof and prior to the Closing,
each reference in any Transaction Document to a number of shares or a price per share shall be deemed to be amended to appropriately account
for such event.


 


7.9.               
Registration Rights; Rule 144.


 


(a)                  
The Company shall use its reasonable best efforts to register the resale by the Investors of the Registrable Securities on a registration
statement on Form S-3, or if Form S-3 is not available, Form S-1 (the “Registration Statement”), by filing such Registration
Statement with the SEC no later than sixty (60) calendar days from the Closing Date, and shall use its reasonable best efforts to have
the Registration Statement declared effective as soon as practicable, but in no event later than ninety (90) calendar days from the Closing
Date, provided, that this deadline shall be extended to one hundred twenty (120) calendar days after the Closing Date if the Registration
Statement is reviewed by, and comments thereto are provided from, the SEC, provided, further that the Company shall have the Registration
Statement declared effective within three (3) Business Days after the SEC has notified the Company that it will not review, or has completed
its review, of the Registration Statement. In no event shall the Investor be identified as a statutory underwriter in the Registration
Statement unless requested by the SEC; provided, that if the SEC requests that the Investor be identified as a statutory underwriter in
the Registration Statement, the Investor will have the option, in its sole and absolute discretion, to either (i) have the opportunity
to withdraw from the Registration Statement, in which case the Company’s obligation to register the Registrable Securities will
be deemed satisfied or (ii) be included as such in the Registration Statement. Such Registration Statement shall not include any shares
of Common Stock or other securities for the account of any other holder without the prior written consent of the Investors beneficially
owning (as determined pursuant to Rule 13d-3 under the Exchange Act) a majority of the Registrable Securities.


 






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(b)                  
Notwithstanding anything to the contrary contained herein, the Company may, upon written notice to any holder of Registrable Securities
included in a Registration Statement, suspend the use of any Registration Statement, including any prospectus that forms a part of a Registration
Statement, if the Company (X) determines that it would be required to make disclosure of material information in the Registration Statement
that the Company has a bona fide business purpose for preserving as confidential, (Y) the Company determines it must amend or supplement
the Registration Statement or the related prospectus so that such Registration Statement or prospectus shall not include an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the
case of the prospectus in light of the circumstances under which they were made, not misleading or (Z) the Company has experienced or
is experiencing some other material non-public event, including a pending transaction involving the Company, the disclosure of which at
such time, in the good faith judgment of the Company, would adversely affect the Company; provided, however, in no event
shall holders of Registrable Securities be suspended from selling Registrable Securities pursuant to the Registration Statement for a
period that exceeds 30 consecutive Trading Days or 60 total Trading Days in any 360-day period. Upon disclosure of such information or
the termination of the condition described above, the Company shall provide prompt notice to holders whose Registrable Securities are
included in the Registration Statement, and shall promptly terminate any suspension of sales it has put into effect and shall take such
other reasonable actions to permit registered sales of Registrable Securities as contemplated hereby.


 


(c)                  
With a view to making available to the Investors the benefits of Rule 144 (or its successor rule) and any other rule or regulation
of the SEC that may at any time permit the Investors to sell shares of Common Stock to the public without registration, the Company covenants
and agrees to: (i) make and keep public information available, as those terms are understood and defined in Rule 144, until
the earlier of (A) six months after such date as all of the Registrable Securities may be sold without restriction by the holders
thereof pursuant to Rule 144 or any other rule of similar effect or (B) such date as there are no longer Registrable Securities;
(ii) file with the SEC in a timely manner all reports and other documents required of the Company under the 1934 Act; and (iii) furnish
electronically to each Investor upon request, as long as such Investor owns any Registrable Securities, (A) a written statement by
the Company that it has complied with the reporting requirements of the 1934 Act, (B) a copy of or electronic access to the Company’s
most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, and (C) such other information as may be reasonably requested
in order to avail such Investor of any rule or regulation of the SEC that permits the selling of any such Registrable Securities without
registration.


 






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7.10.           
Shareholder Approval. If and only if Shareholder Approval is required by the applicable rules and regulations of Nasdaq,
the Company shall hold a special meeting of stockholders (which may also be the annual meeting of stockholders) on or prior to July 14,
2023, for the purpose of obtaining the Shareholder Approval with the recommendation of the Company’s Board of Directors that such
proposals are approved, and the Company shall solicit proxies from its stockholders in connection therewith in the same manner as all
other management proposals in such proxy statement and all management-appointed proxyholders shall vote their proxies in favor of such
proposals. The Company shall use its commercially reasonable efforts to obtain the Shareholder Approval. Each Investor acknowledges that
it is not entitled to vote any Shares or Warrant Shares that it holds on the Shareholder Approval.


 


8.                     
Survival and Indemnification.


 


8.1.               
Survival. Subject to applicable statutes of limitations, the representations, warranties, covenants, and agreements contained
in this Agreement shall survive the Closing and the delivery of the Securities.


 


8.2.               
Indemnification by the Company. The Company agrees to indemnify and hold harmless each of the Investors, the officers, directors,
partners, agents, investment advisors, members, and employees (and any other Persons with a functionally equivalent role of a Person holding
such titles, notwithstanding a lack of such title or any other title) of each Investor, each Person who controls any such Investor (within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act) and the officers, directors, partners, stockholders, members
and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such
title or any other title) of each such controlling Person (each, an “Investor Indemnified Party”), from and against
any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) or expenses,
joint or several, to which such Investor Indemnified Party may become subject, insofar as such losses, claims, damages, liabilities, costs
or expenses (or actions in respect thereof as contemplated below) arise out of or are based in whole or in part on the inaccuracy in the
representations and warranties of the Company contained in this Agreement or the failure of the Company to perform its obligations hereunder,
or arise out of or are based upon any untrue statement or alleged untrue statement or omission or alleged omission of any material fact
contained in any Registration Statement, any preliminary prospectus or final prospectus thereto, or any amendment or supplement thereof,
and will reimburse each Investor Indemnified Party for reasonable legal and other expenses reasonably incurred as such expenses are reasonably
incurred by such Investor Indemnified Party in connection with investigating, defending, settling, compromising or paying such loss, claim,
damage, liability, expense or action; provided, however, that the Company will not be liable in any such case to the extent
that any such loss, claim, damage, liability, cost or expense arises out of or is based upon (i) the failure of such Investor Indemnified
Party to materially comply with the covenants and agreements contained herein, (ii) the material inaccuracy of any representations made
by such Investor Indemnified Party herein or in an Investor Questionnaire, (iii) an untrue statement or alleged untrue statement or omission
or alleged omission so made in conformity with information furnished by an Investor Indemnified Party in writing specifically for use
in the Registration Statement or a prospectus, (iv) the use by an Investor Indemnified Party of an outdated or defective prospectus after
the Company has notified such Investor in writing that such prospectus is outdated or defective, or (v) an Investor Indemnified Party’s
failure to send or give a copy of the prospectus or supplement (as then amended or supplemented), if required (and not exempted) to the
persons asserting an untrue statement or omission or alleged untrue statement or omission at or prior to the written confirmation of the
sale of Registrable Securities.


 






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8.3.               
Indemnification by the Investors. Each Investor agrees, severally but not jointly, to indemnify and hold harmless, to the
fullest extent permitted by law, the Company, its directors, officers, employees, stockholders and each person who controls the Company
(within the meaning of the 1933 Act) against any losses, claims, damages, liabilities and expense (including reasonable attorney fees)
resulting from any untrue statement of a material fact or any omission of a material fact required to be stated in the Registration Statement
or prospectus or preliminary prospectus or amendment or supplement thereto or necessary to make the statements therein not misleading,
to the extent, but only to the extent, that such untrue statement or omission is contained in any information regarding such Investor
and furnished in writing by such Investor to the Company specifically for inclusion in the Registration Statement or prospectus or amendment
or supplement thereto. In no event shall the liability of an Investor be greater than the dollar amount of the proceeds received by such
Investor upon the sale of the Registrable Securities included in such Registration Statement giving rise to such indemnification obligation.


 


8.4.               
Indemnification Procedure. Promptly after any indemnified party hereunder (the “Indemnified Party”) has
received notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third Person, which the
Indemnified Party believes in good faith is an indemnifiable claim under this Agreement, the Indemnified Party shall give the indemnitor
hereunder (the “Indemnifying Party”) written notice of such claim or the commencement of such action, suit or proceeding,
but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may have to such Indemnified
Party hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure. Such notice shall state the
nature and the basis of such claim to the extent then known. The Indemnifying Party shall have the right to defend and settle, at its
own expense and by its own counsel, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If
the Indemnifying Party undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention to do so, and the
Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof
and the settlement thereof. Such cooperation shall include, but shall not be limited to, furnishing the Indemnifying Party with any books,
records and other information reasonably requested by the Indemnifying Party and in the Indemnified Party’s possession or control.
Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the
Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party
diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified
Party in connection with any defense or settlement of such asserted liability; provided, however, that the Indemnified Party
shall be entitled (a) at its expense, to assist the Indemnifying Party in the defense of such asserted liability and the negotiations
of the settlement thereof and (b) if (i) the Indemnifying Party has failed to assume the defense or (ii) if the defendants in any such
action include both the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have reasonably concluded
that there may be reasonable defenses available to the Indemnified Party that are different from or in addition to those available to
the Indemnifying Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying
Party, then the Indemnified Party shall have the right to select a separate counsel and to assume such legal defense and otherwise to
participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation
to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party
shall not settle any indemnified claim without the consent of the Indemnified Party which consent shall not be unreasonably withheld or
delayed, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does
not include any admission of wrongdoing or malfeasance by, the Indemnified Party.


 






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9.                     
Miscellaneous.


 


9.1.               
Successors and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company
or the Investors, as applicable; provided, however, that an Investor may assign its rights and delegate its duties hereunder
in whole or in part to an Affiliate without the prior written consent of the Company or the other Investors, provided such assignee agrees
in writing to be bound by the provisions hereof that apply to Investors. The provisions of this Agreement shall inure to the benefit of
and be binding upon the respective permitted successors and assigns of the parties. Without limiting the generality of the foregoing,
in the event that the Company is a party to a merger, consolidation, share exchange or similar business combination transaction in which
the Common Stock is converted into the equity securities of another Person, from and after the effective time of such transaction, such
Person shall, by virtue of such transaction, be deemed to have assumed the obligations of the Company hereunder, the term “Company”
shall be deemed to refer to such Person and the term “Securities” shall be deemed to refer to the securities received by the
Investors in connection with such transaction. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective permitted successors and assigns any rights, remedies, obligations, or liabilities under or
by reason of this Agreement, except as expressly provided in this Agreement.


 


9.2.               
Counterparts; E-mail. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf
or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and
any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.


 


9.3.               
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.


 






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9.4.               
Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be
deemed effectively given upon the earlier of actual receipt, or (a) personal delivery to the party to be notified, (b) when sent, if sent
by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s
next business day, (c) two Business Days after having been sent by registered or certified mail, return receipt requested, postage prepaid,
or (d) one Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery,
with written verification of receipt. All communications shall be sent to the respective parties at their electronic mail address or address
as set forth below, or to such electronic mail address or address as subsequently modified by written notice given in accordance with
this Section 9.4.


 


If to the Company:


 


Immunic, Inc.


1200 Avenue of the Americas, Suite 200,


New York, NY 10036


Attention: Glenn Whaley


Email:glen.whaley@imux.com


 


With a copy (which will not constitute notice) to:


 


Dentons US LLP


Ilan Katz


101 John F Kennedy Pkwy.


Short Hills, NJ 07078


Email: Ilan.Katz@Dentons.com


 


If to the Investors:


 


to the contact information set forth on
the signature pages hereto.


 


9.5.               
Expenses. The parties hereto shall pay their own costs and expenses in connection herewith regardless of whether the transactions
contemplated hereby are consummated; it being understood that each of the Company and each Investor has relied on the advice of its own
respective counsel. The Company shall pay any Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the
sale and issuance of the Closing Securities to the Investors. Notwithstanding the forgoing, at the Closing, the Company shall reimburse
the documented and reasonable legal fees and other out-of-pocket expenses of Deep Track Biotechnology Master Fund, Ltd. incurred in connection
with the purchase of the Securities, in an amount not to exceed, in the aggregate, $50,000.


 






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9.6.               
Amendments and Waivers. Other than as provided herein, any term of this Agreement may be amended and the observance of any
term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with
the written consent of the Company and (a) prior to the Closing, the Majority Investors and (b) following the Closing, Investors holding
a majority of the Shares issued and sold pursuant to this Agreement and the Warrant Shares issuable upon exercise of the Warrants issued
and sold pursuant to this Agreement that are then-held by such Investors; provided, however, that in no event may any Investor's Subscription
Amount, Number of Shares or Number of Warrants set forth on Exhibit A hereto be amended without the written
consent of such Investor. Notwithstanding the foregoing, this Agreement may not be amended and the observance of any term of this Agreement
may not be waived with respect to any Investor without the written consent of such Investor unless such amendment or waiver applies to
all Investors in the same fashion. Any amendment or waiver effected in accordance with this paragraph shall be binding upon (i) prior
to Closing, each Investor and (ii) following the Closing, each holder of any Closing Securities purchased under this Agreement or Warrant
Shares at the time outstanding, and in each case, each future holder of all such Securities and the Company.


 


9.7.               
Publicity. Except as set forth below, no public release or announcement concerning the transactions contemplated hereby
shall be issued by the Company or the Investors without the prior written consent of the Company (in the case of a release or announcement
by the Investors) or the Investors (in the case of a release or announcement by the Company) (which consents shall not be unreasonably
withheld or delayed), except as such release or announcement may be required by law or the applicable rules or regulations of any securities
exchange or securities market, in which case the Company or the Investors, as the case may be, shall allow the Investors or the Company,
as applicable, to the extent reasonably practicable in the circumstances, reasonable time to comment on such release or announcement in
advance of such issuance. No later than the Trading Day immediately following the date of this Agreement, the Company shall issue a press
release or make a public filing with the SEC (the “Cleansing Release”) disclosing all material terms of the transactions
contemplated by this Agreement and any other material, nonpublic information that the Company may have provided to any Investor in connection
with the transactions contemplated by this Agreement; provided however, that any material, nonpublic information relating to the Company’s
clinical trials and other product development activities that the Company may have provided to any Investor will only be cleansed in the
Company’s ordinary course of public disclosures. Notwithstanding anything to the contrary, the Company shall not publicly disclose
the name of an Investor or any of its Affiliates or advisers, or include the name of the Investor or any of its Affiliates or advisers
in the Cleansing Release, any filing with the SEC or any regulatory agency or trading market filing, press release or any other public
announcement without the prior written consent of such Investor except (A) as required by the federal securities laws, rules or regulations
and (B) to the extent such disclosure is required by other laws, rules or regulations, at the request of the staff of the SEC or regulatory
agency or under the regulations of Nasdaq, in which case of clause (A) or (B), the Company shall provide such Investor with prior written
notice (including by e-mail) of such permitted disclosure, and shall reasonably consult with such Investor regarding such disclosure.
The Company shall not, and shall cause each of its officers, directors, employees and agents not to, provide any Investor with any material
nonpublic information regarding the Company from and after issuance or filing of the Cleansing Release without the express prior written
consent of such Investor.


 


9.8.               
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof
but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
To the extent permitted by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited
or unenforceable in any respect.


 






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9.9.               
Entire Agreement. This Agreement, including the signature pages, exhibits, the other Transaction Documents and any oral
or written agreement between the Company (or on its behalf) and any Investor regarding confidentiality matters that was entered into in
connection with the transactions contemplated hereby constitute the entire agreement among the parties hereto with respect to the subject
matter hereof and thereof and supersede all prior agreements and understandings, both oral and written, between the parties with respect
to the subject matter hereof and thereof.


 


9.10.           
Further Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other
actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements
herein contained.


 


9.11.           
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to the choice of law principles thereof (other than Sections 5-1401 and
5-1402 of the General Obligations Law). Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of
the State of New York located in New York County and the United States District Court for the Southern District of New York for the purpose
of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service
of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same
methods as are specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction
of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives
any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that
any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED
SPECIFICALLY AS TO THIS WAIVER.


 


9.12.           
Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction Document
are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance
of the obligations of any other Investor under any Transaction Document. The decision of each Investor to purchase Closing Securities
pursuant to the Transaction Documents has been made by such Investor independently of any other Investor. Nothing contained herein or
in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert
or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Investor acknowledges
that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that no Investor will
be acting as agent of such Investor in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction
Documents. Each Investor shall be entitled to independently protect and enforce its rights, including, without limitation, the rights
arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined
as an additional party in any proceeding for such purpose.


 






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9.13.           
Benefit of Agreement. The Placement Agents are an intended third-party beneficiary of the representations and warranties
of the Company and of each Investor set forth in Section 4 and Section 5, respectively, of this Agreement.


 


9.14.           
Exculpation of the Placement Agents. Each party hereto agrees for the express benefit of the Placements Agents and their
respective Affiliates and representatives that:


 


(a)        none
of the Placement Agents, their respective Affiliates or any of their respective representatives: (i) has any duties or obligations other
than those specifically set forth in the engagement letter, dated as of October 10, 2022 (the “Engagement Letter”), between
the Company and the Placement Agents; (ii) shall be liable for any improper payment made in accordance with the information provided by
the Company; (iii) makes any representation or warranty, or has any responsibilities as to the validity, accuracy, value or genuineness
of any information, certificates or documentation delivered by or on behalf of the Company pursuant to this Agreement or the Transaction
Documents or in connection with any of the transactions contemplated hereby and thereby; or (iv) shall be liable (x) for any action taken,
suffered or omitted by any of them in good faith and reasonably believed to be authorized or within the discretion or rights or powers
conferred upon it by this Agreement or any Transaction Document or (y) for anything which any of them may do or refrain from doing in
connection with this Agreement or any Transaction Document, except, in each case in this clause (iv), for such party’s own gross
negligence, willful misconduct or bad faith.


 


(b)        The
Placement Agents and their respective Affiliates and representatives shall be entitled to (i) rely on, and shall be protected in acting
upon, any certificate, instrument, notice, letter or any other document or security delivered to any of them by or on behalf of the Company,
and (ii) be indemnified by the Company for acting as the Placement Agents hereunder pursuant to the indemnification provisions set forth
in the Engagement Letter.


 


[remainder of page intentionally left blank]


 






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IN WITNESS WHEREOF, the parties have executed this
Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.


 


	COMPANY:  IMMUNIC, INC.	
	 	By:	 
	 	 	Name: 
	 	 	
    Title:

     



 






     


     


    

 


IN WITNESS WHEREOF, the parties have executed this
Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.


 


	INVESTOR:	
	 	
    By:
	
	 	 	
    Name:

    Title:



 






     


     


    

 


EXHIBIT A


 


Schedule of Investors


 






     


     


    

 


EXHIBIT B


 


Form of Warrant


 


[See attached]


 






     


     


    

 


APPENDIX I


 


Form of Investor Questionnaire


 


INVESTOR QUESTIONNAIRE


 


To:


 


This Investor Questionnaire (“Questionnaire”)
must be completed by each potential investor in connection with the offer and sale of the shares of common stock, par value $0.01 per
share (“Common Stock”), and/or the pre-funded warrants to purchase Common Stock (collectively, the “Securities”),
of Immunic, Inc., a Delaware corporation (the “Corporation”). The Securities are being offered and sold by the Corporation
without registration under the Securities Act of 1933, as amended (the “Securities Act”), and the securities laws of
certain states, in reliance on the exemptions contained in Section 4(a)(2) of the Securities Act and on Regulation D promulgated thereunder
and in reliance on similar exemptions under applicable state laws. The Corporation must determine that a potential investor meets certain
suitability requirements before offering or selling the Securities to such investor. The purpose of this Questionnaire is to assure the
Corporation that each investor will meet the applicable suitability requirements. The information supplied by you will be used in determining
whether you meet such criteria, and reliance upon the private offering exemptions from registration is based in part on the information
herein supplied.


 


This Questionnaire does not constitute an offer
to sell or a solicitation of an offer to buy any security. By signing this Questionnaire, you will be authorizing the Corporation to provide
a completed copy of this Questionnaire to such parties as the Corporation deems appropriate in order to ensure that the offer and sale
of the Securities will not result in a violation of the Securities Act or the securities laws of any state and that you otherwise satisfy
the suitability standards applicable to purchasers of the Securities. All potential investors must answer all applicable questions and
complete, date and sign this Questionnaire. Please print or type your responses and attach additional sheets of paper if necessary to
complete your answers to any item.


 


PART A. BACKGROUND INFORMATION


 


Name of Beneficial Owner of the Securities:


 


Business Address:______________________________________________________________________


(Number and Street)


 


City: _________________                        State: _____                                   Zip Code: ___________


 


Telephone Number: _______________________


 


If a corporation, partnership, limited liability company, trust
or other entity:


 

Type of entity: _________________________





 


State of formation: _____________________              Approximate Date of formation:
__________________


 


Were you formed for
the purpose of investing in the securities being offered? Yes ☐No ☐


 






     


     


    

 


If an individual:


 


Residence Address: ___________________________________________________________________


(Number and Street)


 


City: _________________                        State: _____                                   Zip Code: ___________


 


Telephone Number: _______________________


 


Age: _________________                        Citizenship: _________               Where registered
to vote: _______


 


Set forth in the space provided below the state(s), if any, in the
United States in which you maintained your residence during the past two years and the dates during which you resided in each state:


 


Are you a director or executive officer
of the Corporation? Yes ☐No ☐


 




Social Security or Taxpayer Identification No.: ________________


 


PART B. ACCREDITED INVESTOR QUESTIONNAIRE


 


In order for the Corporation
to offer and sell the Securities in conformance with state and federal securities laws, the following information must be obtained regarding
your investor status. Please initial each category applicable to you as a purchaser of Securities of the Corporation.


 


☐
(1)     A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined
in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;


 


☐
(2)     A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”);


 


☐
(3)     An insurance company as defined in Section 2(a)(13) of the Securities Act;


 


☐
(4)     An investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section
2(a)(48) of that act;


 


☐
(5)     A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small
Business Investment Act of 1958;


 


☐
(6)     A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;


 


☐
(7)     An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment
decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association,
insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if
a self-directed plan, with investment decisions made solely by persons that are accredited investors;


 






     


     


    

 


☐
(8)     A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;


 


☐
(9)     An organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, Massachusetts or similar business trust,
or partnership, not formed for the specific purpose of acquiring the Securities, with total assets in excess of $5,000,000;


 


☐
(10)     A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities, whose purchase
is directed by a sophisticated person who has such knowledge and experience in financial and business matters that such person is capable
of evaluating the merits and risks of investing in the Corporation;


 


☐
(11)     A natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds
$1,000,000 (exclusive of the value of that person’s primary residence);


 


☐
(12)     A natural person who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with
that person’s spouse in excess of $300,000, in each of those years, and has a reasonable expectation of reaching the same income
level in the current year;


 


☐
(13)     An executive officer or director of the Corporation;


 


☐
(14)     An entity in which all of the equity owners qualify under any of the above subparagraphs. If the undersigned belongs to this investor
category only, list the equity owners of the undersigned, and the investor category which each such equity owner satisfies.


 


PART C. BAD ACTOR QUESTIONNAIRE


 


		1.	During the past ten years, have you been convicted of any felony or misdemeanor that is related to
any securities matter?



 


Yes ☐
(If yes, please continue to Question 1.a)


 


No ☐
(If no, please continue to Question 2)


 


		a)	If your answer to Question 1 was “yes”, was the conviction related to: (i) the purchase or
sale of any security; (ii) the making of any false filing with the Securities and Exchange Commission (the “SEC”);
or (iii) the conduct of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers
of securities?



 


Yes ☐
No ☐


 


		2.	Are you subject to any court injunction or restraining order entered during the past five years that
is related to any securities matter?



 


Yes ☐
(If yes, please continue to Question 2.a)


 


No ☐
(If no, please continue to Question 3)


 


		a)	If your answer to Question 2 was “yes”, does the court injunction or restraining order currently
restrain or enjoin you from engaging or continuing to engage in any conduct or practice related to: (i) the purchase or sale of any security;
(ii) the making of any false filing with the SEC; or (iii) the conduct of an underwriter, broker, dealer, municipal securities
dealer, investment adviser or paid solicitor of purchasers of securities?



 


Yes ☐
No ☐


 






     


     


    

 


		3.	Are you subject to any final order1
of any governmental commission, authority, agency or officer2(2)
related to any securities, insurance or banking matter?



 


Yes ☐
(If yes, please continue to Question 3.a)


 


No ☐
(If no, please continue to Question 4)


 


a) If your
answer to Question 3 was “yes”:


 


		i)	Does the order currently bar you from: (i) associating with an entity regulated by such commission, authority,
agency or officer; (ii) engaging in the business of securities, insurance or banking; or (iii) engaging in savings association
or credit union activities?



 


Yes ☐
No ☐


 


		ii)	Was the order (i) entered within the past ten years and (ii) based on a violation of any law or
regulation that prohibits fraudulent, manipulative or deceptive conduct?



 


Yes ☐
No ☐


 


		4.	Are you subject to any SEC disciplinary order?3(3)



 


Yes ☐
(If yes, please continue to Question 4.a)


 


No ☐
(If no, please continue to Question 5)


 


		a)	If your answer to Question 4 was “yes”, does the order currently: (i) suspend or revoke your
registration as a broker, dealer, municipal securities dealer or investment adviser; (ii) place limitations on your activities, functions
or operations; or (iii) bar you from being associated with any particular entity or class of entities or from participating in
the offering of any penny stock?



 





 







		1	A “final order” is defined under Rule 501(g) as a written directive or declaratory statement issued by a federal or state
agency described in Rule 506(d)(1)(iii) under applicable statutory authority that provides for notice and an opportunity for a hearing,
and that constitutes a final disposition or action by such federal or state agency.



 


		2	You may limit your response to final orders of: (i) state securities commissions (or state agencies/officers that perform a similar
function); (ii) state authorities that supervise or examine banks, savings associations or credit unions; (iii) state insurance commissions
(or state agencies/officers that perform a similar function); (iv) federal banking agencies; (v) the U.S. Commodity Futures Trading Commission;
or (vi) the U.S. National Credit Union Administration.



 


		3	You may limit your response to disciplinary orders issued pursuant to Sections 15(b) or 15B(c) of the Exchange Act or Section 203(e)
or (f) of the Investment Advisers Act of 1940 (the “Advisers Act”).



  






     


     


    

 


		5.	Are you subject to any SEC cease and desist order entered within the past five years?



 


Yes ☐
(If yes, please continue to Question 5.a)


 


No ☐
(If no, please continue to Question 6)


 


		a)	If your answer to Question 5 was “yes”, does the order currently require you to cease and
desist from committing or causing a violation or future violation of (i) any knowledge-based anti-fraud provision of the U.S. federal
securities laws4 or (ii) Section 5 of the Securities
Act?



 


Yes ☐
No ☐


 


		6.	Have you been suspended or expelled from membership in, or suspended or barred from association with
a member of, a registered national securities exchange or a registered national or affiliated securities association?



 


Yes ☐
(If yes, please describe the basis of any such suspension or expulsion and any related details in the space provided under Question
10 below)5


 


No ☐
(If no, please continue to Question 7)


 


		7.	Have you registered a securities offering with the SEC, made an offering under Regulation A or been
named as an underwriter in any registration statement or Regulation A offering statement filed with the SEC?



 


Yes ☐
(If yes, please continue to Question 7.a)


 


No ☐
(If no, please continue to Question 8)


 


a) If your
answer to Question 7 was “yes”:


 


		i)	During the past five years, was any such registration statement or Regulation A offering statement the
subject of a refusal order, stop order or order suspending the Regulation A exemption?



 


Yes ☐
No ☐


 


		ii)	Is any such registration statement or Regulation A offering statement currently the subject of an investigation
or proceeding to determine whether a stop order or suspension order should be issued?



 


Yes ☐
No ☐


 


		8.	Are you subject to a U.S. Postal Service false representation order entered within the past five years?



 


Yes ☐
No ☐


 


		9.	Are you currently subject to a temporary restraining order or preliminary injunction with respect to
conduct alleged by the U.S. Postal Service to constitute a scheme or device for obtaining money or property through the mail by means
of false representations?



 


Yes ☐
No ☐


 


		10.	In the space provided below, describe any facts or circumstances that caused you to answer “yes”
to any Question (indicating the corresponding Question number). Attach additional pages if necessary.



 





 











		4	Including (but not limited to) Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder,
Section 15(c)(1) of the Exchange Act, and Section 206(1) of the Advisers Act or any other rule or regulation thereunder.



 


		5	In providing additional information, please explain whether or not the suspension or expulsion resulted from “any act or omission
to act constituting conduct inconsistent with just and equitable principles of trade.”



  






     


     


    

 


		A.	FOR EXECUTION BY AN INDIVIDUAL:



 


		By:	______________________________






 


Print Name: _________________________


____________________________


Date


 


B.       FOR
EXECUTION BY AN ENTITY:


 


Entity Name: _________________________


 


		By:	____________________________






 


Print Name: ______________________


 


		Title:____________________________






 


____________________________


Date



 


		C.	ADDITIONAL SIGNATURES (if required by partnership, corporation or trust document):



 


Entity Name:


 


		By:	____________________________






 


Print Name: ______________________


 


		Title:	____________________________



  


____________________________


Date



 


Entity Name: _________________________


 


		By:	____________________________



 





Print Name: ______________________


 


		Title:	____________________________



 


____________________________


Date