Document:

Exhibit 10.9

 

UNIT
PURCHASE AGREEMENT

BY AND AMONG

HOTH THERAPEUTICS, INC.

 

AND

THE PURCHASERS PARTY HERETO

 

     

     

    

 

Exhibits

TO

Unit PURCHASE AGREEMENT

  

	Exhibit A	Schedule of Purchasers
	Exhibit B	Form of Warrant
	Exhibit C	Form of Subscription Agreement
	Exhibit D	Funding Instructions
	Exhibit E	Form of Legal Opinion
	Exhibit F	Form of Investor Rights Agreement

  

     

     

    

 

HOTH
THERAPEUTICS, INC.

 

Unit
PURCHASE AGREEMENT

 

THIS
UNIT PURCHASE AGREEMENT (the “Agreement”) is entered into as of the date set forth on the signature
page hereto by and among Hoth Therapeutics, Inc., a Nevada corporation (the “Company”), and the purchasers
identified on Exhibit A on the date hereof (which purchasers are hereinafter collectively referred to as the “Purchasers”
and each individually as, a “Purchaser”).

 

BACKGROUND

 

A.           Unless
otherwise defined in this Agreement, capitalized terms used in this Agreement shall have the respective meanings ascribed to such
terms in Section 9.

 

B.           The
Company is offering (the “Offering”) Units to a limited number of persons who qualify as “accredited
investors” as defined in Rule 501 of Regulation D promulgated under the Securities Act at a price per Unit of $100,000 pursuant
to the terms set forth in the Company’s Confidential Private Placement Memorandum, dated as of August 10, 2017, as may be
amended and/or supplemented, from time to time (collectively, the “Memorandum”).

 

C.           The
Company is offering to a limited number of persons who qualify as “accredited investors” as defined in Rule 501 of
Regulation D promulgated under the Securities Act (the “Offering”) units of its Series A Preferred Stock,
par value $0.0001 per share, of the Company (the “Preferred Shares”), which Preferred Shares are convertible
into shares (the “Conversion Shares”) of the Company’s common stock, par value $0.0001 per share
(the “Common Stock”) and warrants (the “Warrants” and together with the Preferred
Share, the “Units”) to purchase shares of Common Stock (the “Warrant Shares”)
at a price per Unit of $100,000.

 

D.           Each
Unit shall consist of (a) 100,000 Preferred Shares at a price of $1.00 per share, which Preferred Shares are convertible an aggregate
of 400,000 Conversion Shares, and (b) a warrant to purchase Common Shares equal to 25% of the Conversion Shares at an exercise
price per share equal to $0.25 per share, which warrant will be exercisable immediately and for a period of seven (7) years following
the date of issuance (the “Warrant”).

 

E.           The
Units are being offered on a “reasonable efforts, all or none” basis with respect to the minimum of $1,000,000
(the “Minimum Offering Amount”), and thereafter on a “best efforts” basis up to the
maximum of $5,000,000 (the “Maximum Offering Amount”); provided, that, the Company and
Laidlaw may mutually agree, prior to the “Termination Date” referred to below, to terminate the Offering
if a total of $5,000,000 of Units has been sold. 

 

F.           The
Company desires to issue and sell the Units to each Purchaser in one or more closings (each a “Closing”
and collectively the “Closings”) as set forth herein.

 

NOW,
THEREFORE, in consideration of the representations, warranties, covenants and agreements herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby
agree as follows:

 

     

     

    

 

1.            AGREEMENT
TO SELL AND PURCHASE.

 

1.1          Authorization
of Units. The board of directors of the Company (the “Board of Directors”) has authorized (i) the
sale of up to 50 Units, each Unit consisting of (a) 100,000 Preferred Shares and (b) a warrant to purchase shares of Common Stock
equal to 25% of the Conversion Shares at an exercise price per share equal to $0.25 per share, which warrant will be exercisable
immediately and for a period of seven (7) years following the date of issuance. From and after the applicable Closing, the Company
shall issue and reserve for issuance the Conversion Shares in connection with such Closing; and (ii) the shares of Common Stock
that may be issued upon full exercise of the Warrants (the “Warrant Shares”) issued at such Closing,
plus such additional number of Warrant Shares as shall be required to be issued pursuant to the terms thereof.

 

1.2          Initial
Sale and Purchase of Units. Subject to the terms and conditions hereof, and in reliance upon the representations, warranties
and covenants contained herein, at the Initial Closing (as defined below), the Company shall issue and sell to each Purchaser,
and each Purchaser shall purchase from the Company, the number of Units set forth opposite such Purchaser’s name on Exhibit
A under the “Initial Units” column, at a purchase price of $100,000 per Unit (subject to appropriate and proportionate
adjustment for stock dividends payable in shares of, forward or reverse stock splits and other subdivisions and combinations of,
and recapitalizations and like occurrences with respect to, the Preferred Shares, the “Per Unit Purchase Price”).
The minimum purchase by each Purchaser is one Unit, unless the Company and the Placement Agent agree, in their mutual discretion,
to allow a Purchaser to purchase a partial Unit.

 

1.3          Subsequent
Sales and Purchases of Units. Subject to the terms and conditions hereof, and in reliance upon the representations, warranties
and covenants contained herein, at each subsequent Closing, the Company shall issue and sell to each Purchaser who is identified
as a “Subsequent Closing Purchaser” on Exhibit A, which shall be deemed amended at each such subsequent Closing
to add each such additional Purchaser (each, a “Subsequent Closing Purchaser”), and each Subsequent
Closing Purchaser shall purchase from the Company, the number of Units set forth opposite such Purchaser’s name on Exhibit
A at the Per Unit Purchase Price.

 

1.4          Issuance
of Warrants. The Warrants shall be in form and substance substantially the same as the form of Warrant in Exhibit B.

 

2.            CLOSINGS,
DELIVERY AND PAYMENT.

 

2.1          Initial
Closing. Subject to the conditions set forth in Section 5 herein, the initial closing of the sale and purchase of the Units
(the “Initial Closing”), shall take place electronically on such date and at such time as is agreed
between the Company and the Placement Agent (such date the “Initial Closing Date”); provided that such
Closing occurs by October 31, 2017 (the “Initial Offering Period”), which period may be extended by
the Company and Placement Agent in their mutual discretion, without notice or vote by prospective investors, to a date no later
than November 30, 2017 (this additional period and the Initial Offering Period will be collectively referred to as the “Offering
Period”). Subject to the foregoing, at the Initial Closing, the Company must sell the minimum of 10 full Units for
$100,000 (the “Initial Units”), and the Company may thereafter sell up to a maximum of 40 Units.

 

2.2          Subsequent
Closings. If the Minimum Offering Amount has been raised within the Initial Offering Period, subject to the conditions set
forth in Section 5, each Subsequent Closing shall take place electronically on such date and at such time as is agreed between
the Company and the Placement Agent (such date the “Subsequent Closing Date”), in no event later than
the November 30, 2017. Subject to the foregoing, at Subsequent Closings, the Company may sell
up to a maximum of 40 Units less the number of Units sold in all prior Closings. The Units sold at the Subsequent Closings are
sometimes referred to herein as “Subsequent Units.”

 

     

     

    

 

2.3          Delivery;
Payment. At each Closing, subject to the terms and conditions hereof, the Purchasers will deliver the full amount of the Purchase
Price in cash by wire transfer of immediately available funds in accordance with instructions attached hereto as Exhibit D,
or as the Company shall otherwise direct and the Company will deliver (1) one (1) certificate registered in such Purchaser’s
name, to purchase such number of Preferred Shares included in the Units purchased by such Purchaser or Subsequent Closing Purchaser,
as the case may be, at such Closing and (2) one Warrant, registered in such Purchaser’s name to purchase such number of
Warrant Shares included in the Units purchased by such Purchaser or Subsequent Closing Purchaser, as the case may be, at such
Closing. The Company and the Placement Agent, in their mutual discretion, may allow a Purchaser to purchase a partial Unit, in
which case the Purchaser shall receive a certificate representing the appropriate number of Preferred Shares included in such
partial Unit and a Warrant for the appropriate number of corresponding Warrant Shares.

 

3.            REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to the Placement Agent and each of the Purchasers that the statements made in this Section 3,
except as qualified in the disclosure schedules referenced herein and attached hereto (the “Schedules”),
are true and correct on the date hereof, as of the Initial Closing and shall be true and correct as of each Subsequent Closing,
except as qualified by any updated Schedules delivered at the Subsequent Closing in accordance with Section 5.1.1 herein, all
of which qualifications in the Schedules attached hereto and updated Schedules delivered at the Subsequent Closing shall be deemed
to be representations and warranties as if made hereunder. The Schedules shall be arranged to correspond to the numbered paragraphs
contained in this Section 3, and the disclosure in any paragraph of the Schedules shall qualify other subsections in Section 3
only to the extent that it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other
subsections. For purposes of this Section 3, “knowledge” shall mean the personal knowledge of any of the Company’s
officers or directors or what they would have known upon having made reasonable inquiry.

 

3.1          Organization,
Good Standing and Qualification. The Company is a corporation duly incorporated, validly existing and in good standing under
the corporate and general laws of the State of Nevada. Each of the Subsidiaries is a corporation duly incorporated, validly existing
and in good standing under the laws of its jurisdiction of incorporation. Each of the Company and its Subsidiaries has all requisite
corporate power and authority to own and operate its properties and assets. Neither the Company nor any Subsidiary is in violation
nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational
or charter documents. Each of the Company and its Subsidiaries is duly qualified to conduct business and is in good standing as
a foreign corporation in each jurisdiction set forth on Schedule 3.1, except where failure to be so qualified or in good
standing, as the case may be, could not reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted
in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

     

     

    

 

3.2          Subsidiaries.
Schedule 3.2 includes a true and complete list of each of the Subsidiaries and their respective jurisdictions of organization.
Except as set forth on Schedule 3.2, neither the Company nor any Subsidiary owns or controls any ownership interest or
profits interest in any other corporation, limited liability company, limited partnership or other entity. The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free
of preemptive and similar rights to subscribe for or purchase securities. Except as set forth on Schedule 3.2, neither
the Company nor any Subsidiary is a participant in any joint venture, partnership or similar arrangement.

 

3.3          Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the
part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its 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.

 

3.4          No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby
and thereby do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter documents, (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 upon
any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which
any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict
with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court
or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii)
and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

3.5          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents.

 

     

     

    

 

3.6          Issuance
of the Securities. The Units, the Preferred Shares and the Warrants are duly authorized and, when issued and paid for in accordance
with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all
Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Conversion Shares
and the Warrant Shares, when issued in accordance with the terms of the Preferred Shares and the Warrants, as the case may be,
will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions
on transfer provided for in the Transaction Documents. The Company has reserved from its duly authorized capital stock a number
of shares of Common Stock for issuance of the Conversion Shares and the Warrant Shares on the date hereof.

 

3.7          Capitalization.
The capitalization of the Company is set forth on Schedule 3.7. Except as disclosed on Schedule 3.7, there are no
outstanding securities of the Company or any Subsidiary which contain any right of first refusal, preemptive right, right of participation,
or any similar right. No Person has any right of first refusal, preemptive right, right of participation, or any similar right
to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the
Securities, and except as set forth Schedule 3.7, there are no outstanding options, warrants, scrip rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common
Stock or common stock equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common
Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities
to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no proxies, stockholder agreements,
or any other agreements between the Company or any Subsidiary and any securityholder of such entity or, to the knowledge of the
Company, among any securityholders of the Company or any Subsidiary, including agreements relating to the voting, transfer, redemption
or repurchase of any securities of such entity. Neither the Company nor any Subsidiary has any outstanding shareholder purchase
rights or “poison pill” or any similar arrangement in effect giving any person the right to purchase any equity interest
in such entity upon the occurrence of certain events. All of the outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none
of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale
of the Securities. Except for the stockholders agreement dated even herewith, between the Company and the Company’s stockholders
(the “Amended and Restated Stockholders Agreement”), there are no stockholders agreements, voting agreements
or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge
of the Company, between or among any of the Company’s stockholders. Except as required by law, including any federal securities
rules and regulations, there are no restrictions upon the voting or transfer of any of the shares of capital stock of the Company
or any Subsidiary pursuant to its Organizational Documents or other governing documents or any agreement or other instruments
to which the Company or any Subsidiary is a party or by which it is bound.

 

3.8          Intentionally
Omitted.

 

3.9          Absence
of Liabilities. Except as set forth on Schedule 3.9 hereto: (i) there has been no event, occurrence or development
that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any
liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be disclosed in filings made with the Commission, (iii) the
Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash
or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital
stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing
Company stock option plans. Except for the issuance of the Securities contemplated by this Agreement, no event, liability, fact,
circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the
Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition, that would
be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed
made. Except as set forth on Schedule 3.9, neither the Company nor any Subsidiary is
a guarantor or indemnitor of any liability of any other Person.

 

     

     

    

 

3.10        Agreements;
Action.

 

3.10.1.    The
Company has provided or made available to the Purchasers, upon request, true and complete copies, of all of the contracts or agreements
which are material to the Company (the “Material Contracts”). Each of the Material Contracts is (a)
in full force and effect, (b) a valid and binding obligation of, and is enforceable in accordance with its terms against the Company
or the applicable Subsidiary that is party thereto and, to the knowledge of the Company, each of the other parties thereto, except
as such enforceability may be limited by bankruptcy, insolvency, moratorium or other law affecting the enforcement of creditors’
rights generally or by general equitable principles, (c) was made in the ordinary course of business, and (d) contains no provision
or covenant prohibiting or limiting the ability of the Company or any Subsidiary to operate its business in the manner in which
it is currently operated.

 

3.10.2.    To
the best of the Company’s knowledge, each of the Company and its Subsidiaries has in all material respects performed the
obligations required to be performed by it to date under each Material Contract to which it is a party and is not in default or
breach thereof, and no event or condition has occurred, whether with or without the passage of time or the giving of notice, or
both, that would constitute such a breach or default. Neither the Company nor any Subsidiary or any other party to any Material
Contract has provided any notice to the other party or to the Company or any Subsidiary, as applicable, of its intent to terminate,
withdraw its participation in, or not renew any such Material Contract. Neither the Company nor its Subsidiaries has, and to the
knowledge of the Company, no other party to any Material Contract has, threatened to terminate, withdraw from participation in,
or not renew any such Material Contract. To the knowledge of the Company, no other party to any Material Contract is in breach
or default under any provision thereof, and no event or condition has occurred, whether with or without the passage of time or
the giving of notice, or both, that would constitute such a breach or default.

 

3.10.3.    No
Consent of any party to any Material Contract is required in connection with the transactions contemplated by this Agreement and
the other Transaction Documents.

 

3.10.4.    The
execution, delivery and performance of this Agreement and the other Transaction Documents do not and will not (a) result in or
give to any Person any right of termination, non-renewal, cancellation, withdrawal, acceleration or modification in or with respect
to any Material Contract, (b) result in or give to any Person any additional rights or entitlement to increased, additional, accelerated
or guaranteed payments under any such Material Contract or (c) result in the creation or imposition of any Liability or any Encumbrances
upon the Intellectual Property or any assets of the Company or any Subsidiary under the terms of any such Material Contract.

 

     

     

    

 

3.10.5.    Except
as disclosed on Schedule 3.10.5, neither the Company nor any Subsidiary or any representative thereof is a party to any
binding Contract or has engaged in the past twelve (12) months in any discussions regarding, and is not a party to or otherwise
bound by any Contract in respect of, (a) any purchase, lease, license or other acquisition of any other Person, whether by equity
purchase, merger, consolidation, reorganization or otherwise, or all or substantially all of the assets of any other Person, or
the entering into by the Company or any Subsidiary of any share exchange with any other Person, (b) any change of control transaction
with respect to the Company or its Subsidiaries, or (c) liquidation with respect to the Company or any Subsidiary.

 

3.11        Changes.
Except as set forth on Schedule 3.11, or where the occurrence of any of the following events would not have a Material
Adverse Effect, there has not been:

 

3.11.1.    any
effect, event, condition or circumstance (including, without limitation, the initiation of any litigation or other legal, regulatory
or investigative proceeding) against the Company that individually or in the aggregate, with or without the passage of time, the
giving of notice, or both, has had or could reasonably be expected to have a Material Adverse Effect;

 

3.11.2.    any
resignation or termination of any director, officer or key employee of the Company or any Subsidiary, and neither the Company
nor any Subsidiary has received notification of any impending resignation from any such Person;

 

3.11.3.    any
material change in the contingent obligations of the Company or any Subsidiary by way of guaranty, endorsement, indemnity, warranty
or otherwise;

 

3.11.4.    any
material damage, destruction or loss adversely affecting the assets, properties, business, financial condition or prospects of
the Company and its Subsidiaries taken as a whole, whether or not covered by insurance;

 

3.11.5.    any
waiver by the Company or any Subsidiary of a valuable right or of any debt;

 

3.11.6.    any
development, event, change, condition or circumstance that constitutes, whether with or without the passage of time or the giving
of notice or both, a default under any outstanding debt obligation of the Company or any Subsidiary;

 

3.11.7.    any
change in any compensation arrangement or agreement with any employee, consultant, officer, director or stockholder of the Company
or any Subsidiary that would increase the cost of any such agreement or arrangement to the Company or any Subsidiary by more than
$10,000 in each instance;

 

3.11.8.    any
labor organization activity of the employees of the Company or any Subsidiary;

 

3.11.9.    any
declaration or payment of any dividend or other distribution of the assets of the Company or any Subsidiary;

 

3.11.10.  any
change in the accounting methods or practices followed by the Company or any Subsidiary; or

 

     

     

    

 

3.11.11.  any
Contract or commitment made by the Company or any Subsidiary to do any of the foregoing.

 

3.12        Title
to Properties and Assets; Liens, etc. Except where a violation of this Section 3.12 could reasonably be expected to have a
Material Adverse Effect, the Company and each Subsidiary has good and marketable title to the properties and assets it owns, and
the Company and each Subsidiary has a valid license in all properties and assets licensed by it, and has a valid leasehold interest
in its leasehold estates, in each case subject to no Encumbrance, other than those resulting from Taxes which have not yet become
delinquent or those of the lessors of leased property or assets. All facilities, machinery, equipment, fixtures, vehicles and
other properties owned, leased or used by the Company or any Subsidiary are in good operating condition and repair, ordinary wear
and tear excepted and are fit and usable for the purposes for which they are being used. Each of the Company and its Subsidiaries
is in compliance with all terms of each lease to which it is a party or is otherwise bound.

 

3.13        Intellectual
Property.

 

3.13.1.    The
Company or the applicable Subsidiary is the owner or licensee of all Owned Intellectual Property and all Licensed Intellectual
Property as described in the Memorandum (collectively, the “Intellectual Property”). Except as set forth
on Schedule 3.13.1 and identified as such, neither the Company nor any Subsidiary has licensed any Intellectual Property to any
Person. All of the registrations and applications for registration of the Intellectual Property are valid, subsisting and in full
force and effect, and all actions and payments necessary for the maintenance and continuation of such Intellectual Property have
been taken or paid on a timely basis. The Company and its Subsidiaries owns or possesses sufficient legal rights to use all of
the Intellectual Property and the exclusive right to use all Owned Intellectual Property and all Licensed Intellectual Property
as being licensed to the Company and its Subsidiaries.  

 

3.13.2.    To
the knowledge of the Company, the business as currently conducted and as proposed to be conducted by the Company and its Subsidiaries
has not and will not constitute any infringement of the Intellectual Property rights of any other Person which could reasonably
be expected to have a Material Adverse Effect. To the knowledge of the Company, the development of Product candidates and the
use, manufacture or sale of the Company’s Products based on the Intellectual Property does not, and will not, infringe the
Intellectual Property rights of any third Person. To the knowledge of the Company, no employee or agents of the Company or any
Subsidiary have misappropriated the Intellectual Property rights of any Person.

 

3.13.3.    Except
as set forth on Schedule 3.13.3, there are no outstanding options or other rights to acquire any Intellectual Property.
To the knowledge of the Company, each licensor of the Licensed Intellectual Property is the sole and exclusive owner of such Licensed
Intellectual Property and has the sole and exclusive right and authority to grant licenses to such Licensed Intellectual Property.

 

3.13.4.    Except
as set forth on Schedule 3.13.4, neither the Company nor any Subsidiary has received any written communications alleging
or suggesting that it has violated or, by conducting its business as currently conducted or proposed to be conducted, would infringe
or misappropriate any of the Intellectual Property rights of any other Person.

 

3.13.5.    It
is not necessary to the business of the Company or any Subsidiary, as currently conducted or as proposed to be conducted, to utilize
any inventions, trade secrets or proprietary information of any of its employees, agents, developers, consultants or contractors
made prior to their employment by or service to such entity, except for inventions, trade secrets or proprietary information that
have been assigned or licensed to the Company or any Subsidiary.

 

     

     

    

 

3.13.6.    Except
as disclosed on Schedule 3.13.6, since the date of the Company’s incorporation, there has not been any sale,
assignment or transfer of any material Intellectual Property or other material intangible assets of  the Company by the
Company or any Subsidiary.

 

3.13.7.    To
the knowledge of the Company, no Intellectual Property is subject to any interference, reissue, reexamination, opposition or cancellation
proceeding or any other Legal Proceeding or subject to or otherwise bound by any outstanding Order or Contract (other than in
the case of any Licensed Intellectual Property, the Contract pursuant to which the Company licenses the rights to such Licensed
Intellectual Property) that restricts in any manner the use, transfer or licensing thereof by the Company or any Subsidiary or
may affect the validity, use or enforceability of such Intellectual Property. Neither the Company nor any Subsidiary has any knowledge
of any fact or circumstance that would render any portion of the Intellectual Property invalid or unenforceable.

 

3.13.8.    Except
where the failure to comply with this Section 3.13.8 could not be reasonably expected to have a Material Adverse Effect, each
current and former officer, employee, agent, developer, consultant and contractor who (a) has had or has access to any confidentiality
of the trade secrets of the Intellectual Property; and (b) contributed to or participated in the creation and/or development of
the Intellectual Property either: (i) is a party to a “work made for hire” agreement under which the Company or any
Subsidiary is deemed to be the original owner/author of all right, title and interest in the Intellectual Property created or
developed by such Person; or (ii) has executed an assignment or an agreement to assign in favor of the Company or any Subsidiary
of all such Person’s right, title and interest in the Intellectual Property.

 

3.13.9.    The
execution and delivery of this Agreement and the other Transaction Documents and consummation of the transactions contemplated
hereby and thereby will not result in the breach of, or create on behalf of any third party the right to terminate or modify,
any license, sublicense, agreement or permission: (a) relating to or affecting any Intellectual Property; or (b) pursuant to which
the Company or any Subsidiary is granted a license or otherwise authorized to use any third party Intellectual Property.

 

3.13.10.  Except as set forth on Schedule 3.13.10, to the knowledge of the Company, no Person is infringing, violating, misappropriating
or making unauthorized use of any of the Intellectual Property. Neither the Company nor any Subsidiary have enforced and taken
such commercially reasonable steps as are necessary to protect and preserve all rights in the Intellectual Property against the
infringement, violation, misappropriation and unauthorized use thereof by any Person. Each of the Company or the Subsidiary has
the right to: (a) bring actions for past, present and future infringement, dilution, misappropriation or unauthorized use of any
Intellectual Property owned or licensed by such entity, injury to goodwill associated with the use of any such Intellectual Property,
unfair competition or trade practices violations of and other violation of such Intellectual Property; and (b) with respect to
the Intellectual Property owned exclusively by the Company or any Subsidiary, receive all proceeds from the foregoing set forth
in subsection (a) hereof, including, without limitation, licenses, royalties income, payments, claims, damages and proceeds of
suit.

 

3.14        Compliance
with Other Instruments. Except as set forth on Schedule 3.14, neither the Company nor any Subsidiary (i) is 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 or any Subsidiary under), nor has the Company or any Subsidiary 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) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or
has been 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 taxes, environmental protection, occupational health and safety, product
quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to result
in a Material Adverse Effect.

 

     

     

    

 

3.15        Litigation.
Except as set forth in the Memorandum or on Schedule 3.15, there is no Legal Proceeding pending or, to the knowledge of
the Company, threatened against the Company or any Subsidiary or any investigation of the Company or any Subsidiary, nor is the
Company aware of any fact that would make any of the foregoing reasonably likely to arise. Neither the Company nor any Subsidiary
is a party or subject to the provisions of any Order. Except as set forth on Schedule 3.15, there is no Legal Proceeding
by the Company or any Subsidiary currently pending or that the Company or any Subsidiary intends to initiate. Neither the Company
nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Order involving a claim of violation
of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the
knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any
current or former director or officer of the Company.

 

3.16        Tax
Returns and Payments.

 

3.16.1.    Except
as set forth on Schedule 3.16.1, the Company and each Subsidiary has filed all Tax Returns required to be filed by it,
and each such entity has timely paid all Taxes owed (whether or not shown on any Tax Return). All such Tax Returns were complete
and correct, and such Tax Returns correctly reflected the facts regarding the income, business, assets, operations, activities,
status and other matters of such entity and any other information required to be shown thereon. The Company and each Subsidiary
has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any Employee,
creditor, independent contractor, shareholder, member or other third party. The Company and each Subsidiary has established adequate
reserves for all Taxes accrued but not yet payable. No deficiency assessment with respect to or proposed adjustment of the Company
and/or any Subsidiaries Taxes is pending or, to the knowledge of the Company, threatened. There is no tax lien (other than for
current Taxes not yet due and payable), imposed by any taxing authority, outstanding against the assets, properties or the business
of the Company or any Subsidiary.

 

3.16.2.    Neither
the Company nor any Subsidiary has agreed to make any adjustment under Section 481(a) of the Internal Revenue Code of 1986, as
amended (the “Code”) (or any corresponding provision of state, local or foreign tax law) by reason of
a change in accounting method or otherwise, and neither the Company nor any Subsidiary will be required to make any such adjustment
as a result of the transactions contemplated by this Agreement. Neither the Company nor any Subsidiary has been or is a party
to any tax sharing or similar agreement. Neither the Company nor any Subsidiary is or has ever been a party to any joint venture,
partnership, limited liability company, or other arrangement or Contract which could be treated as a partnership for federal income
tax purposes. Neither the Company nor any Subidiary is or has ever been a “United States real property holding corporation”
as that term is defined in Section 897 of the Code.

 

     

     

    

 

3.17        Employees.

 

3.17.1.    (a)
Neither the Company nor any Subsidiary has, or has ever had any, collective bargaining agreements with any of its employees; (b)
there is no labor union organizing activity pending or, to the knowledge of the Company, threatened with respect to the Company
or any Subsidiary; (c) other than Robb Knie, the President and CEO of the Company, no employee has or is subject to any agreement
or Contract to which the Company or any Subsidiary is a party (including, without limitation, licenses, covenants or commitments
of any nature) regarding his or her employment or engagement; (d) to the best of the Company’s knowledge, no employee is
subject to any Order that would interfere with his or her duties to the Company or any Subsidiary or that would conflict with
the businesses the Company or any Subsidiary as currently conducted and as proposed to be conducted; (e) no employee is in violation
of any term of any employment contract, proprietary information agreement or any other agreement relating to the right of any
such Person to be employed by, or to contract with, the Company or any Subsidiary; (f) to the best of the Company’s knowledge,
the continued employment by the Company or any Subsidiary of its present employees, and the performance of their respective duties
to such entity, will not result in any violation of any term of any employment contract, proprietary information agreement or
any other agreement relating to the right of any such individual to be employed by, or to contract with, the Company or any Subsidiary,
and neither the Company nor any Subsidiary has received any written notice alleging that such violation has occurred; (g) other
than Mr. Knie, no Employee or consultant has been granted the right to continued employment by or service to the Company or any
Subsidiary or to any compensation following termination of employment with or service to the Company or any Subsidiary; and (h)
neither the Company nor any Subsidiary has any present intention to terminate the employment or engagement or service of any officer
or any significant employee or consultant

 

3.17.2.    Except
as set forth on Schedule 3.17.2, there are no outstanding or, to the knowledge of the Company, threatened claims against
the Company or any Subsidiary or any Affiliate (whether under federal or state law, under any employment agreement, or otherwise)
asserted by any present or former employee or consultant of the Company or any Subsidiary. Neither the Company nor any Subsidiary
is in violation of any law or Requirement of Law concerning immigration or the employment of persons other than U.S. citizens.

 

3.18        Pension
and Other Employee Benefit Plans.

 

3.18.1.    There
are set forth or identified in Schedule 3.18.1 all of the plans, funds, policies, programs and arrangements sponsored or
maintained by the Company or any Subsidiary on behalf of any employee or former employee of the Company or any Subsidiary (or
any dependent or beneficiary of any such Employee or former employee) with respect to (a) deferred compensation or retirement
benefits; (b) severance or separation from service benefits (other than those required by law); (c) incentive, performance, stock,
share appreciation or bonus awards; (d) health care benefits; (e) disability income or wage continuation benefits; (f) supplemental
unemployment benefits; (g) life insurance, death or survivor’s benefits; (h) accrued sick pay or vacation pay; or (i) any
other material benefit offered under any arrangement constituting an “employee benefit plan” within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and not excepted
by Section 4 of ERISA (the foregoing being collectively called “Employee Benefit Plans”). Schedule
3.18.1 sets forth all such Employee Benefit Plans subject to the provisions of Section 412 of the Code as well as any “multi-employer
plans” within the meaning of Section 3(37) of ERISA or Section 4001(a)(3) of ERISA. Except as set forth on Schedule 3.18.1,
the transactions contemplated by this Agreement will not result in any payment or series of payments by the Purchasers, the Company
or any Subsidiary of an “excess parachute payment” within the meaning of Section 280G of the Code or any other severance,
bonus or other payment on account of such transactions. Except as set forth on Schedule 3.18.1, none of the Employee Benefit
Plans is under investigation or audit by the United States Department of Labor, the Internal Revenue Service or any other Governmental
or Regulatory Authority.

 

3.18.2.    Except
as set forth on Schedule 3.18.2, (a) the Company and each Subsidiary has complied with its obligations under all applicable
Requirements of Law including, without limitation, of ERISA and the Code with respect to such Employee Benefit Plans and all other
arrangements that provide compensation or benefits to any Employee and the terms thereof, whether or not such person is directly
employed by the Company or any Subsidiary and (b) there are no pending or, to the knowledge of the Company, threatened actions
or claims for benefits by any Employee, other than routine claims for benefits in the ordinary course of business. No Employee
Benefit Plan provides any benefits to any former employees.

 

     

     

    

 

3.18.3.    All
Employee Benefit Plans that are intended to meet the requirements of Section 401(a) of the Code have been determined by the Internal
Revenue Service to meet such requirements and have at all times operated in compliance with such requirements.

 

3.18.4.    All
employment Taxes, premiums for employee benefits provided through insurance, contributions to Employee Benefit Plans, and all
other compensation and benefits to which employees are entitled, have been timely paid or provided as applicable, and there is
no liability for any such payments, contributions or premiums.

 

3.19        Real
Property. Neither the Company nor any Subsidiary has any interest in any real estate, except that the Company and its Subsidiaries
lease the properties described on Schedule 3.19 (the “Leased Real Property”). The Leased Real
Property is adequate for the operations of each of the Company and its Subsidiaries’ businesses as currently conducted and
as contemplated to be conducted. True and complete copies of the lease agreements (the “Real Property Leases”)
pertaining to the Leased Real Property have been delivered or made available to the Placement Agent. Except as set forth on Schedule
3.19, the Company and each Subsidiary has paid all amounts due from it, and is not in default under any of the Real Property
Leases and there exists no condition or event, which, with the passage of time, giving of notice or both, would reasonably be
expected to give rise to a default under or breach of the Real Property Leases.

 

3.20        Permits;
Regulatory.

 

3.20.1     No
Regulatory Approval or Consent of, or any designation, declaration or filing with, any Governmental or Regulatory Authority or
any other Person is required in connection with the valid execution, delivery and performance of this Agreement and the other
Transaction Documents (including, without limitation, the issuance of the Units), except such Regulatory Approvals, Consents,
designations, declarations or filings that have been duly and validly obtained or filed, or with respect to any filings that must
be made after the Initial Closing or the Subsequent Closing as will be filed in a timely manner. The Company and each Subsidiary
has all franchises, Permits, licenses and any similar authority necessary for the conduct of its business as now being conducted,
including, without limitation, the Food and Drug Administration (“FDA”) of the U.S. Department
of Health and Human Services.

 

3.20.2     To
the best of the Company’s knowledge, all manufacturing and production operations conducted by the Company or (or by third
parties on behalf of the Company and its Subsidiaries including, without limitation, any manufacturing or production being done
by any third party in connection with any feasibility, preclinical, clinical or other study, test or trial for or on behalf of
the Company or any Subsidiary or any such study, test or trial that is being sponsored by the Company or any Subsidiary or in
which the Company or any Subsidiary or any of the Company and its Subsidiaries’ Products is participating), if any, relating
to the manufacture or production of the Products are being conducted in compliance with all applicable Requirements of Law including
to the extent mandated by relevant regulatory agencies, without limitation, current Good Manufacturing Practices or similar foreign
requirements.

 

     

     

    

 

3.20.3     Neither
the Company nor any Subsidiary or, to the knowledge of the Company, any other Person has received (a) any reports of inspection
observations, (b) any establishment inspection reports or (c) any warning letters or any other documents from the FDA or any other
Governmental or Regulatory Authority relating to the Products and/or arising out of the conduct of any Subsidiary or any Person
which has conducted or is conducting any feasibility, preclinical, clinical or other study, test or trial for or on behalf of
the Company or any Subsidiary or any such study, test or trial that is being sponsored by the Company or any Subsidiary or in
which any of the Company’s or any Subsidiary’s Products is participating that assert a material violation or material
non-compliance with any applicable Requirements of Law (including, without limitation, those of the FDA).

 

3.21        Environmental
and Safety Laws. Neither the Company nor any Subsidiary has caused or allowed, or contracted with any party for, the generation,
use, transportation, treatment, storage or disposal of any Hazardous Substances in connection with the operation of its business
or otherwise, except in compliance with all applicable Environmental Laws. To the best of the Company’s knowledge, the Company
and each Subsidiary and the operation of their respective businesses are in compliance with all applicable Environmental Laws.
To the best of the Company’s knowledge, all of the Leased Real Property and all other real property which the Company or
any Subsidiary occupy (the “Premises”) is in compliance with all applicable Environmental Laws and Orders
or directives of any Governmental or Regulatory Authority having jurisdiction under such Environmental Laws, including, without
limitation, any Environmental Laws or Orders or directives with respect to any cleanup or remediation of any release or threat
of release of Hazardous Substances. Each of the Company and its Subsidiaries and the operation of their respective businesses
are and have been in compliance with all applicable Environmental Laws. To the knowledge of the Company, there have occurred no
and there are no events, conditions, circumstances, activities, practices, incidents, or actions that may give rise to any common
law or statutory liability, or otherwise form the basis of any Legal Proceeding, any Order, any remedial or responsive action,
or any investigation or study involving or relating to the Company or any Subsidiary, based upon or related to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling, or the emission, discharge, release or threatened
release into the environment, of any pollutants, contaminants, chemicals, or industrial, toxic or Hazardous Substance. To the
knowledge of the Company, (a) there is no asbestos contained in or forming a part of any building, structure or improvement comprising
a part of any of the Leased Real Property, (b) there are no polychlorinated biphenyls (PCBs) present, in use or stored on any
of the Leased Real Property, and (c) no radon gas or the presence of radioactive decay products of radon are present on, or underground
at any of the Leased Real Property at levels beyond the minimum safe levels for such gas or products prescribed by applicable
Environmental Laws. Each of the Company and its Subsidiaries has obtained and is maintaining in full force and effect all necessary
Permits, licenses and approvals required by all Environmental Laws applicable to the Premises and the business operations conducted
thereon, and is in compliance with all such Permits, licenses and approvals. Neither the Company nor any Subsidiary has caused
or allowed a release, or a threat of release, of any Hazardous Substance onto, at or near the Premises, and, to the knowledge
of the Company, neither the Premises nor any property at or near the Premises has ever been subject to a release, or a threat
of release, of any Hazardous Substance.

 

3.22        Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess
such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”),
and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of
any Material Permit

 

3.23        Offering
Valid. Assuming the accuracy of the representations and warranties of the Purchasers contained in the subscription agreements
entered into by each Purchaser in connection with this Agreement, the offer, sale and issuance of the Units will be exempt from
the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and
will be exempt from registration and qualification under applicable state securities laws.

 

     

     

    

 

3.24        Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information. The Company understands
and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.
All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, is, as of each Closing Date, true and correct and does not contain
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during
the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser
makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically
set forth in Section 3.2 hereof.

 

3.25        Minute
Books. A copy of all minutes of all meetings of directors and stockholders and all actions by written consent without a meeting
by the directors and stockholders since May 2017, has been made available to the Placement Agent in a virtual data room and accurately
reflect all actions taken by the directors (and any committee of the directors) and stockholders with respect to all transactions
referred to in such minutes.

 

3.26        Insurance.
Schedule 3.26 sets forth a list of all policies or binders of fire, casualty, liability, product liability, worker’s
compensation, vehicular or other insurance held by the Company and its Subsidiaries concerning its assets and/or its businesses
(specifying for each such insurance policy the insurer, the policy number or covering note number with respect to binders, and
each pending claim thereunder of more than $5,000). Such policies and binders are valid and in full force and effect. Neither
the Company nor any Subsidiary is in default with respect to any provision contained in any such policy or binder or has failed
to give any notice or present any claim of which it has notice under any such policy or binder in a timely fashion. Neither the
Company nor any Subsidiary has received or given a notice of cancellation or non-renewal with respect to any such policy or binder.
None of the applications for such policies or binders contain any material inaccuracy, and all premiums for such policies and
binders have been paid when due. Neither the Company nor any Subsidiary has knowledge of any state of facts or the occurrence
of any event that could reasonably be expected to form the basis for any claim against it not fully covered by the policies referred
to on Schedule 3.26. No Subsidiary has received written notice from any of their respective insurance carriers that any
insurance premiums will be materially increased after the applicable Closing Date or that any insurance coverage listed on Schedule
3.26 will not be available after such Closing Date on substantially the same terms as now in effect.

 

3.27        Investment
Company Act. Neither the Company nor any Subsidiary is an “investment company”, or a company “controlled”
by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended.

 

     

     

    

 

3.28        Foreign
Payments; Undisclosed Contract Terms.

 

3.28.1.     To
the knowledge of the Company, neither the Company nor any Subsidiary has made any offer, payment, promise to pay or authorization
for the payment of money or an offer, gift, promise to give, or authorization for the giving of anything of value to any Person
in violation of the Foreign Corrupt Practices Act of 1977, as amended and the rules and regulations promulgated thereunder.

 

3.28.2.     To
the knowledge of the Company, there are no understandings, arrangements, agreements, provisions, conditions or terms relating
to, and there have been no payments made to any Person in connection with any agreement, Contract, commitment, lease or other
contractual undertaking of the Company or any Subsidiary which are not expressly set forth in such contractual undertaking.

 

3.29        No
Broker. Other than commissions (including fees, expenses and warrants) payable to the Placement Agent as described in the
Memorandum, neither the Company nor any Subsidiary has employed any broker or finder, or incurred any liability for any brokerage
or finder’s fees in connection with the sale of the Units, or the Preferred Shares and Warrants underlying the Units pursuant
to this Agreement or the other Transaction Documents.

 

3.30        Compliance
with Laws. Neither the Company nor any Subsidiary is in violation of, or in default under, any Requirement of Law applicable
to such Subsidiary, or any Order issued or pending against such Subsidiary or by which the Company’s or such Subsidiary’s
properties are bound, except for such violations or defaults that have not had, and could not reasonably be expected to have,
a Material Adverse Effect.

 

3.31        No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 4,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of any of the Preferred Shares, Warrants and Warrant Shares (collectively, the “Securities”) to be integrated
with prior offerings by the Company for purposes of (i) the Securities Act which would require the registration of any such securities
under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of the securities
of the Company are listed or designated.

 

3.32        Application
of Takeover Protections. The Company and the Board of Directors 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 certificate of incorporation (or similar charter documents)
or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and
the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation
as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities.

 

3.33        No
General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers
and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

     

     

    

 

3.34        Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent
or other person acting on behalf of the Company or any 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 any Subsidiary (or made by any person
acting on its behalf 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.

 

3.35        Stock
Option Plans. Except as set forth on Schedule 3.35, each stock option or stock issuance granted by the Company under
the Company’s stock incentive plan was granted (i) in accordance with the terms of the Company’s stock incentive plan
and (ii) such options had an exercise price at least equal to the fair market value of the Common Stock on the date such stock
option would be considered granted under GAAP and applicable law. No stock option granted under the Company’s stock option
plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or practice to
knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other
public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

 

3.36        Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer,
agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

3.37        U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

3.38        Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

3.39        Bad
Actor Disqualification

 

(a)           No
Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506 under the Securities
Act (“Regulation D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director,
executive officer, other officer of the Company participating in the offering, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule
405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”
and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications described
in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person
is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under
Rule 506(e), and has furnished to the Placement Agent and the Subscriber a copy of any disclosures provided thereunder.

 

     

     

    

 

(b)           Other
Covered Persons. The Company is not aware of any person that (i) has been or will be paid (directly or indirectly) remuneration
for solicitation of purchasers in connection with the sale of the Securities and (ii) who is subject to a Disqualification Event.

 

3.40        Notice
of Disqualification Events. The Company will notify the Placement Agent in writing of (i) any Disqualification Event relating
to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating
to any Issuer Covered Person, prior to any Closing of this Offering.

 

3.41        Transactions
with Affiliates and Employees. Except as set forth on Schedule 3.41, none of the officers or directors of the Company
and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company
or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which
any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each
case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement
for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any
stock option plan of the Company.

 

3.42        OFAC.
Neither the Company nor any Subsidiary or, to the Company’s knowledge, any director, officer, agent, employee, Affiliate
or person acting on behalf of any Subsidiary, is currently subject to any U.S. sanctions administered by the OFAC; and the Company
will not directly or indirectly use the proceeds of the sale of the Units, or lend, contribute or otherwise make available such
proceeds to any joint venture partner or other person or entity, towards any sales or operations in Cuba, Iran, Syria, Sudan,
Myanmar or any other country sanctioned by OFAC or for the purpose of financing the activities of any person currently subject
to any U.S. sanctions.

 

3.43        Registration
Rights. Except as set forth in the Memorandum or on Schedule 3.43 and as required pursuant to the Investor Rights Agreement,
neither the Company nor any Subsidiary is under any obligation, or has granted any rights that have not been terminated, to register
any of such Subsidiary’s currently outstanding securities or any of its securities that may hereafter be issued.

 

3.48        Material
Non-Public Information. Except with respect to the transactions contemplated hereby that will be publicly disclosed, neither
the Company nor any Subsidiary has provided any Purchaser with any information that such Subsidiary believes constitutes material
non-public information.

 

3.49        Right
to Receive Additional Shares. Except as set forth in the Memorandum or in connection with the Units issued in this Offering,
no existing shareholder of the Company has any right to cause the Company to issue additional shares of Common Stock (the “Existing
Right Issuances”) to such shareholder.

 

4.            REPRESENTATIONS
AND WARRANTIES OF THE PURCHASERS.

 

Each
of the Purchasers hereby severally, and not jointly, represents and warrants to the Company that each such Purchaser’s representations
and warranties in such Purchaser’s subscription agreement (each a “Subscription Agreement” and
collectively, the “Subscription Agreements”) entered into in connection with this Agreement, in form
and substance substantially the same as the form of Subscription Agreement in Exhibit C are true and correct as of their
respective Closing, and such representations and warranties are deemed repeated as if contained herein.

 

     

     

    

 

5.            CONDITIONS
TO THE CLOSING.

 

5.1          Conditions
to Purchasers’ Obligations at the Closings. The obligations of the Purchasers to consummate the transactions contemplated
herein to be consummated at the Initial Closing and of each Subsequent Closing, as the case may be, are subject to the satisfaction,
on or prior to the date of such Closing, of the conditions set forth below and applicable thereto, which satisfaction shall be
determined, or may be waived in writing, the Purchasers or Subsequent Closing Purchasers, as the case may be, who have subscribed
for at least a majority of the Units to be purchased at such Closing.

 

5.1.1.       Representations
and Warranties; Performance of Obligations. Each of the representations and warranties of the Company contained herein shall
be true and correct on and as of the Initial Closing Date. As of the Initial Closing, the Company shall have performed and complied
with the covenants and provisions of this Agreement required to be performed or complied with by it at or prior to the Initial
Closing Date. As to the Subsequent Closings, each of the representations and warranties of the Company contained herein shall
be true and correct on and as of the Subsequent Closing Date, as qualified by any updated Schedules delivered at least five (5)
days in advance of the Subsequent Closing to the Subsequent Closing Purchasers participating in the Subsequent Closing. As to
the Subsequent Closings, the Company shall have performed and complied with the covenants and provisions of this Agreement and
the other Transaction Documents required to be performed or complied with by it at or prior to the Subsequent Closing Date. At
each Closing, the Purchasers participating in such Closing shall have received certificates of the Company dated as of the date
of such Closing, signed by the president or chief executive officer of the Company, certifying as to the fulfillment of the conditions
set forth in this Section 5.1 and the truth and accuracy of the representations and warranties of the Company contained herein
(as qualified by the most recently delivered Schedules) as of the Initial Closing Date and, as to each Subsequent Closing, the
Subsequent Closing Date.

 

5.1.2.       Issuance
in Compliance with Laws. The sale and issuance of the Units shall be legally permitted by all laws and regulations to which
any of the Purchasers and the Company are subject.

 

5.1.3.       Filings,
Consents, Permits, and Waivers. The Company and the Purchasers shall have made all filings and obtained any and all Consents,
Permits, waivers, and Regulatory Approvals necessary for consummation of the transactions contemplated by the Agreement and the
other Transaction Documents, except for such filings as are not due to be made until after the applicable Closing.

 

5.1.4.       Reservation
of the Conversion Shares and Warrant Shares. From and after the Initial Closing and any Subsequent Closing, the Conversion
Shares and Warrant Shares, which were the subject of such Closing shall have been duly authorized and reserved for issuance by
the Board of Directors.

 

5.1.5.       Investor
Rights Agreement. Concurrently with the issuance of the Units occurring at the Initial Closing, the Investor Rights Agreement,
substantially in the form attached hereto as Exhibit F (the “Investor Rights Agreement”), shall
have been executed and delivered by the Company and each Purchaser.

 

5.1.6.       Legal
Opinion. At each Closing, the Placement Agent and the Purchasers or the Subsequent Closing Purchasers, as the case may be,
shall have received a legal opinion addressed to each of them, dated as of such Closing Date, substantially in the form attached
hereto as Exhibit E from Sheppard Mullin LLP.

 

     

     

    

 

5.1.7.       Proceedings
and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closings and all
documents and instruments incident to such transactions shall be reasonably satisfactory in substance and form to the Purchasers
or the Subsequent Closing Purchasers, as the case may be, and their counsel, and the Purchasers or the Subsequent Closing Purchasers,
as the case may be, and their counsel shall have received all such counterpart originals or certified or other copies of such
documents as they may reasonably request.

 

5.1.8.       Proceedings
and Litigation. No action, suit or proceeding shall have been commenced by any Person against any party hereto seeking to
restrain or delay the purchase and sale of the Units or the other transactions contemplated by this Agreement or any of the other
Transaction Documents.

 

5.1.9.       No
Material Adverse Effect. Since the date hereof, there shall not have occurred any effect, event, condition or circumstance
(including, without limitation, the initiation of any litigation or other legal, regulatory or investigative proceeding) that
individually or in the aggregate, with or without the passage of time, the giving of notice, or both, that has had, or could reasonably
be expected to have, a Material Adverse Effect or which could adversely affect the Company’s ability to perform its respective
obligations under this Agreement or any of the other Transaction Documents.

 

5.1.10.    Updated
Disclosures. As to the Subsequent Closings, the Company must have delivered to the Purchasers an updated set of schedules
in accordance with Section 5.1.1 and such updated schedules do not reveal any information or the occurrence, since the Initial
Closing Date, of any effect, event, condition or circumstance, which individually, or in the aggregate, has had or could reasonably
be expected to have, a Material Adverse Effect and do not include any state of facts that occur as a result of the breach by the
Company of any of its obligations under this Agreement or any of the other Transaction Documents.

 

5.1.11.    Payment
of Purchase Price. As to the Initial Closing, each Purchaser shall have delivered to the Company the total purchase price
to be paid for such Purchaser’s Initial Units, in the amount set forth opposite such Purchaser’s name on Exhibit
A, which shall be no less than $100,000 in aggregate gross proceeds. As to each Subsequent Closing, each Subsequent Closing
Purchaser shall have delivered to the Company the total purchase price to be paid for such Subsequent Closing Purchaser’s
Subsequent Units.

 

5.1.12.    Delivery
of Documents at the Initial Closing. The Company shall have executed and delivered the following documents, on or prior to
the Initial Closing Date:

 

(a)           Certificates.
Certificates representing the Preferred Shares to be purchased and sold on the Initial Closing Date;

 

(b)           Warrants:
An executed Warrant, in substantially the form of Exhibit B for the Warrants to be issued on the Initial Closing Date;

 

     

     

    

 

(c)           Compliance
Certificate. The certificate required by Section 5.1.12(e) hereof certifying that all representations and warranties made
by the Company as of the Initial Closing Date are true, complete and correct as of the Initial Closing Date, as qualified by the
Schedules delivered pursuant to Section 5.1.1 and that all covenants in this Agreement and the other Transaction Documents required
to be performed by the Company prior to the Initial Closing Date have been so performed;

 

(d)           Legal
Opinion. The legal opinion required by Section 5.1.6 hereof;

 

(e)           Secretary’s
Certificate. A certificate of the Secretary of the Company (i) attaching and certifying as to the Company’s Certificate
of Incorporation (the “Certificate”), (ii) attaching and certifying as to the Bylaws of the Company
in effect at the Initial Closing, (iii) attaching and certifying as to copies of resolutions by the Board of Directors of the
Company authorizing and approving this Agreement and the other Transaction Documents and the transactions contemplated hereby
(collectively, the “Minutes”); and (iv) certifying as to the incumbency of the officers of the Company
executing this Agreement and the other Transaction Documents.

 

5.1.13.    Delivery
of Documents at the Subsequent Closing. At any Subsequent Closing, the Company shall deliver, or shall cause to be delivered
to the Subsequent Closing Purchasers the following documents, to be held in escrow pending the completion of such Subsequent Closing:

 

(a)           Certificates.
Certificates representing the Preferred Shares to be purchased and sold on the Subsequent Closing Date bearing the legends required
to be placed on such certificates pursuant to the Transaction Documents;

 

(b)           Warrants:
An executed Warrant, in substantially the form of Exhibit B for the Warrants to be issued on the Subsequent Closing
Date; 

 

(c)           Compliance
Certificate. The certificate required by Section 5.1.13(e) hereof certifying that all representations and warranties made
by the Company as of the Subsequent Closing Date are true, complete and correct as of the Subsequent Closing Date, as qualified
by the updated Schedules delivered pursuant to Section 5.1.1 and that all covenants in this Agreement and the other Transaction
Documents required to be performed by the Company prior to the Subsequent Closing Date have been so performed;

 

(d)           Legal
Opinion. A bringdown of the legal opinion required by Section 5.1.7 hereof; and

 

(e)           Secretary’s
Certificate. A Certificate of the Secretary of the Company (i) certifying that the resolutions by the Board of Directors of
the Company authorizing and approving this Agreement and the other Transaction Documents delivered at the Initial Closing have
not been modified in any way or rescinded and are otherwise in effect as of the Subsequent Closing, (ii) certifying as to the
incumbency of the officers of the Company executing any documents contemplated by this Agreement to be executed and delivered
by the Company at the Subsequent Closing, and (iii) attaching and certifying as to the Certificate as in effect at the Subsequent
Closing, and (iv) the Bylaws of the Company in effect at the Subsequent Closing.

 

     

     

    

 

5.2          Conditions
to Obligations of the Company at the Closings. The obligation of the Company to consummate the transactions contemplated herein
to be consummated at the Initial Closing or the Subsequent Closing, as the case may be, is subject to the satisfaction, on or
prior to the date of such Closing of the conditions set forth below and applicable thereto, any of which may be waived in writing
by the Company:

 

5.2.1.       Representations
and Warranties; Performance of Obligations. Each of the representations and warranties of the Purchasers contained herein
shall be true and correct on and as of the Initial Closing Date. As of the Initial Closing Date, the Purchasers shall have performed
and complied with the covenants and provisions of this Agreement required to be performed or complied with by them at or prior
to the Initial Closing Date. As to the Subsequent Closing, each of the representations and warranties of the Purchaser(s) contained
herein shall be true and correct on and as of the Subsequent Closing Date. As to the Subsequent Closing, the Subsequent Closing
Purchaser(s) shall have performed and complied with the covenants and provisions of this Agreement required to be performed and
complied with by them at or prior to the Subsequent Closing Date.

 

5.2.2.       Proceedings
and Litigation. No action, suit or proceeding shall have been commenced by any Governmental Authority against any party hereto
seeking to restrain or delay the purchase and sale of the Units or the other transactions contemplated by this Agreement.

 

5.2.3.       Qualifications.
All Permits, if any, that are required in connection with the lawful issuance and sale of the Units pursuant to this Agreement
shall be obtained and effective as of the Initial Closing or Subsequent Closing, as applicable.

 

6.            COVENANTS
OF THE PARTIES.

 

6.1          Commercially
Reasonable Efforts. Upon the terms and subject to the conditions set forth in this Agreement, the parties to this Agreement
shall use their respective good faith commercially reasonable efforts to take, or cause to be taken, without any party being obligated
to incur any material internal costs or make any payment or payments to any third party or parties which, individually or in the
aggregate, are material and are not otherwise legally required to be made, all actions, and to do or cause to be done, and to
assist and cooperate with the other parties in doing, all things necessary, proper or advisable for such party to consummate and
make effective, in the most expeditious manner practicable, each Closing and the other transactions contemplated hereunder.

 

6.2          Post-Closing
Filings. In connection with each Closing, the Company and the Purchasers, if applicable, agree to file all required forms
or filings under applicable securities laws.

 

6.3          Transfer
Restrictions.

 

6.3.1        The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144 promulgated under the Securities Act, to the Company or
to an Affiliate of a Purchaser, the Company may require the transferor thereof to provide to the Company an opinion of counsel
selected by the transferor and reasonably acceptable to the Company, the form and substance of which shall be reasonably satisfactory
to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities
Act. As a condition of transfer, any such transferee
shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a Purchaser under this Agreement.

 

6.3.2        The
Purchaser agrees to the imprinting, so long as is required by this Section 6.3, of a legend on any of the Securities, including
the Warrant Shares, substantially in the following form:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAS [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 (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD OR OTHERWISE TRANSFERRED,
PLEDGED OR HYPOTHECATED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

     

     

    

 

6.3.3        Certificates
evidencing the Preferred Shares and Warrant Shares shall be eligible for removal of the restrictive legend set forth in Section
6.3.2 hereof, (a) following any sale of such Preferred Shares or Warrant Shares pursuant to Rule 144, or (b) if such Preferred
Shares, or Warrant Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with
the current public information required under Rule 144 as to such Preferred Shares and Warrant Shares and without volume or manner-of-sale
restrictions, (c) following any sale of such Preferred Shares, or Warrant Shares, pursuant to the plan of distribution in an effective
registration statement (in compliance with any prospectus delivery requirements), or (d) if such legend is not required under
applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the
Commission) (the “Removal Date”).
The Company shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after the Removal Date if required
by the Transfer Agent to effect the removal of the legend hereunder as permitted by applicable law then in effect. The Company
agrees that following the Removal Date, it will, no later than five (5) trading days following the delivery by a Purchaser to
the Company or the Transfer Agent of a certificate representing the Preferred Shares or Warrant Shares, as the case may be, issued
with a restrictive legend, together with any reasonable certifications requested by the Company, the Company’s counsel or
the Transfer Agent (such fifth (5th) trading day, the “Legend Removal Date”), deliver or cause to be
delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The
Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer
set forth in this Section 6. Certificates for the Preferred Shares and Warrant Shares subject to legend removal hereunder shall
be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with
the Depository Trust Company System as directed by such Purchaser if the Transfer Agent is then a participant in such system and
the Company is eligible to use such system and as directed by such Purchaser if either (i) there is
an effective registration statement permitting the resale of such Preferred Shares, or Warrant Shares by the Purchaser (and the
Purchaser provides the Company or the Company’s counsel with any requested certifications with respect to future sales of
such shares) or (ii) the shares are eligible for resale by the Purchaser under Rule 144, without the requirement for the Company
to be in compliance with the current public information required under Rule 144 as to such Preferred Shares and Warrant Shares
and without volume or manner-of-sale restrictions.

 

6.3.4        In
addition to any other rights available to a Purchaser, if the Company fails to deliver to a Purchaser unlegended Warrant Shares
as required pursuant to this Agreement and after the Legend Removal Date such Purchaser, or a broker on such Purchaser’s
behalf, purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by
such Purchaser of the Warrant Shares that such Purchaser was entitled to receive from the Company (a “Buy-In”),
then the Company shall promptly pay in cash to such Purchaser (in addition to any remedies available to or elected by such Purchaser)
the amount by which (a) such Purchaser’s total purchase price (including brokerage commissions, if any) for the Preferred
Shares so purchased exceeds (b) the aggregate purchase price of the Warrant Shares delivered to the Company for reissuance as
unlegended shares (which amount shall be paid as liquidated damages and not as a penalty). For example, if a Purchaser purchases
shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to Common Stock or Warrant Shares
delivered to the Company for reissuance as unlegended shares having an aggregate purchase price of $10,000, the Company shall
be required to pay the Purchaser $1,000, plus interest. The Purchaser shall provide the Company written notice indicating the
amounts payable to the Purchaser in respect of the Buy-In. For purposes of this Agreement, the “purchase price” of
a (a) Preferred Share shall be $1.00 per share, and (B) Warrant Share shall be the Exercise Price (as defined in the Warrants).

 

     

     

    

 

6.3.5        In
addition to such Purchaser’s other available remedies, the Company shall pay to such Purchaser, in cash, as partial liquidated
damages and not as a penalty, for each $1,000 of Warrant Shares (based on the Exercise Price of such Warrant Shares, as the case
may be) delivered for removal of the restrictive legend, $10 per trading day (increasing to $20 per trading day five (5) trading
days after such damages have begun to accrue)) for each trading day after the fifth (5th) trading day following the Legend Removal
Date until such certificate is delivered without a legend. Nothing herein shall limit such Purchaser’s right to pursue actual
damages for the Company’s failure to deliver certificates representing any Securities as required by the Transaction Documents,
and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief.

  

6.4          Listing
of Securities. The Company agrees, (i) if the Company applies to have the Common Stock traded on any other trading market,
it will include in such application the Warrant Shares of each Purchaser, and will take such other action as is necessary or desirable
to cause such Common Stock and any Warrant Shares to be listed on such other trading market as promptly as possible, and (ii)
it will take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market (as defined
in the Warrant) and will comply in all material respects with the Company’s reporting, filing and other obligations under
the bylaws or rules of any such Trading Market (as defined in the Warrant). 

  

6.5          Reservation
of Shares. From and after the Initial Closing and any Subsequent Closing, the Company shall
at all times thereafter while the Preferred Shares and Warrants which were purchased and sold at such Closing are outstanding
maintain a reserve from its duly authorized shares of Common Stock of a number of shares of Common Stock sufficient to allow for
the issuance of Conversion Shares and Warrant Shares, which were the subject of such Closing.

 

6.6          Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss,
theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement securities.
If a replacement certificate or instrument evidencing any securities is requested due to a mutilation thereof, the Company may
require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement.

 

6.7          Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D promulgated under the Securities Act and to provide a copy thereof, promptly upon request of the Purchaser. The Company shall
take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the
Securities for, sale to the Purchaser at the Closing under applicable securities or “Blue Sky” laws of the states
of the United States, and shall provide evidence of such actions promptly upon request of any Purchaser.

 

     

     

    

 

6.8          Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the
same consideration is also offered to all of the parties to the Transaction Documents. 

 

6.9          Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company covenants and agrees that neither it, nor any other person acting on its behalf, will provide Purchaser
or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior
thereto Purchaser shall have executed a written agreement regarding the confidentiality and use of such information. The Company
understands and confirms that Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of
the Company. 

 

6.10        Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes
and shall not use the proceeds for (a) the satisfaction of any portion of the Company’s debt (other than payment of trade
payables in the ordinary course of the Company’s business and prior practices), (b) the redemption of any Common Stock or
Common Stock Equivalents or (c) the settlement of any outstanding litigation.

 

6.11        Commercially
Reasonable Efforts. Upon the terms and subject to the conditions set forth in this Agreement, the parties to this Agreement
shall use their respective good faith commercially reasonable efforts to take, or cause to be taken, without any party being obligated
to incur any material internal costs or make any payment or payments to any third party or parties which, individually or in the
aggregate, are material and are not otherwise legally required to be made, all actions, and to do or cause to be done, and to
assist and cooperate with the other parties in doing, all things necessary, proper or advisable for such party to consummate and
make effective, in the most expeditious manner practicable, each Closing and the other transactions contemplated hereunder.

 

7.            INDEMNIFICATION
AND EXPENSES.

 

7.4          The
Company Indemnification. The Company shall indemnify and hold harmless each Purchaser and any of such Purchaser’s Affiliates
and any Person which controls, is controlled by, or under common control with (within the meaning of the Securities Act) such
Purchaser or any such Affiliate, and each of their respective directors and officers, and the successors and assigns and executors
and estates of any of the foregoing (each, an “Indemnified Party”, and collectively, the “Indemnified
Parties”) from and against all Indemnified Losses imposed upon, incurred by, or asserted against any of the Indemnified
Parties resulting from, relating to or arising out of:

 

7.4.1.       any
representation or warranty made in this Agreement or any of the other Transaction Documents or in any certificate or other instrument
delivered by or on behalf of the Company not being true and correct in any material respect when made;

 

7.4.2.       any
breach or non-fulfillment of any covenant or agreement to be performed by the Company under this Agreement or the other Transaction
Documents;

 

7.4.3.       any
third party action or claim against any Indemnified Party arising out of any misrepresentation or breach described in Section
7.4.1 or Section 7.4.2; or

 

     

     

    

 

7.4.4.       any
third party action or claim relating in any way to the Indemnified Party’s status as a security holder of the Company, as
a Person which controls, is controlled by or under common control with (within the meaning of the Securities Act) any such Indemnified
Party or as a director or officer of any of the foregoing (including, without limitation, any and all Indemnifiable Losses arising
under the Securities Act, the Securities Exchange Act of 1934, as amended, or similar securities law, or any other Requirements
of Law or otherwise, which relate directly or indirectly to the registration, purchase, sale or ownership of any securities of
the Company or to any fiduciary obligation owed with respect thereto), including, without limitation, in connection with any action
or claim relating to any action taken or omitted to be taken or alleged to have been taken or omitted to have been taken by such
Indemnified Party as a security holder; provided that the Company shall not be obligated to indemnify or hold harmless any Indemnified
Party under this Section 7.4.4 against any Indemnified Losses resulting from or arising out of any such action or claim if it
has been adjudicated by a final and non-appealable determination of a court or other trier of fact of competent jurisdiction that
such Indemnified Losses were the result of (a) a breach of such Indemnified Party’s fiduciary duty, (b) any action or omission
made by the Indemnified Party in bad faith, (c) such Indemnified Party’s willful misconduct, or (d) any criminal action
on the part of such Indemnified Party.

 

7.2          Attorneys’
Fees and Expenses. If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms
of this Agreement or any Transaction Document, the prevailing party shall be entitled to reasonable attorneys’ fees, costs
and necessary disbursements in addition to any other relief to which such party may be entitled as determined by such court, equity
or arbitration proceeding.

 

8.            MISCELLANEOUS.

 

8.4          Governing
Law; Submission to Jurisdiction; Waiver of Trial by Jury. This Agreement shall be governed in all respects by the laws of
the State of New York without regard to the conflict of laws principles of the State of New York or any other jurisdiction. No
suit, action or proceeding with respect to this Agreement or any of the Transaction Documents may be brought in any court or before
any similar authority other than in a court of competent jurisdiction in the State of New York and the parties hereby submit to
the exclusive jurisdiction of such courts for the purpose of such suit, proceeding or judgment. Each of the parties hereto hereby
irrevocably waives any right which it may have had to bring such an action in any other court, domestic or foreign, or before
any similar domestic or foreign authority and agrees not to claim or plead the same. Each of the parties hereto hereby irrevocably
and unconditionally waives trial by jury in any legal action or proceeding in relation to this Agreement or any of the Transaction
Documents and for any counterclaim therein.

 

8.5          Survival
of Representations and Warranties. The representations and warranties made by the Company and the Purchasers herein at each
Closing shall survive such Closing for a period of twelve (12) months. All statements contained in any certificate or other instrument
delivered by or on behalf of any party to this Agreement, pursuant to or in connection with the transactions contemplated by this
Agreement or any of the other Transaction Documents shall be deemed to be representations and warranties made by such party as
of the date of such certificate or other instrument.

 

8.6          Successors
and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns; provided that no party may assign, delegate or otherwise transfer any of its rights
or obligations under this Agreement without the consent of each other party. Notwithstanding the foregoing (a) any Purchaser may
assign or transfer, in whole or, from time to time, in part, the right to purchase all or any portion of the Units to one or more
of its Affiliates (subject to Affiliate qualification as an Accredited Investor) and (b) from and after the Initial Closing Date,
any Purchaser or other holder of Preferred Shares may assign, pledge or otherwise transfer, in whole or from time to time in part,
its rights hereunder to any Person who acquires any interest in any Preferred Shares and (c) any Purchaser may assign or transfer
any of its rights or obligations under this Agreement, in whole or from time to time in part, to the Company or any other Purchaser
or any Affiliate of any other Purchaser. As a condition of any transfer pursuant to this Section 8.6, the transferee must agree
in writing for the benefit of all parties to this Agreement (which writing shall be in form and substance reasonably acceptable
to all parties to this Agreement) to be bound by the terms and conditions of this Agreement and all other Transaction Documents
with respect to any Preferred Shares being transferred hereunder.

 

     

     

    

 

8.7          Entire
Agreement. This Agreement, the Exhibits and Schedules hereto, the other Transaction Documents and each of the Exhibits delivered
pursuant thereto constitute the full and entire understanding and agreement between the parties hereto with regard to the subject
matter hereof and thereof and no party hereto shall be liable or bound to any other party hereto in any manner by any representations,
warranties, covenants and agreements except as specifically set forth herein and therein.

 

8.8          Severability.
If any provision of the Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions of this Agreement shall not in any way be affected or impaired thereby.

 

8.9          Amendment
and Waiver. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing
and is signed by the Company and the Purchasers (and, to the extent of any assignment under Section 8.6 hereof, their respective
permitted assigns and any permitted assigns thereof) holding a majority of the voting power of the then outstanding Preferred
Shares and Warrant Shares purchased under this Agreement held by such holders.

 

8.10        Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party, upon any breach, default
or noncompliance by another party under this Agreement, the other Transaction Documents, shall impair any such right, power or
remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or
of or in any similar breach, default or noncompliance thereafter occurring. Any waiver or approval of any kind or character on
any Purchaser’s part of any breach, default or noncompliance under this Agreement, the other Transaction Documents or any
waiver on such party’s part of any provisions or conditions of the Agreement, the other Transaction Documents, must be in
writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement,
the other Transaction Documents, or otherwise afforded to any party, shall be cumulative and not alternative.

 

8.11        Notices.
All notices, requests, demands and other communications given or made in accordance with the provisions of this Agreement shall
be addressed (i) if to a Purchaser, at such Purchaser’s address, fax number or email address, as furnished to the Company
on the signature page below or as otherwise furnished to the Company by the Purchaser in writing, or (ii) if to the Company, to
the attention of the President at such address, fax number or email address furnished to the Purchasers on the signature page
below or as otherwise furnished by the Company in writing, and shall be made or sent by a personal delivery or overnight courier,
by registered, certified or first class mail, postage prepaid, or by facsimile or electronic mail with confirmation of receipt,
and shall be deemed to be given on the date of delivery when made by personal delivery or overnight courier, 48 hours after being
deposited in the U.S. mail, or upon confirmation of receipt when sent by facsimile or electronic mail. Any party may, by written
notice to the other, alter its address, number or respondent, and such notice shall be considered to have been given three (3)
days after the overnight delivery, airmailing, faxing or sending via e-mail thereof.

 

     

     

    

 

8.12        Expenses.
The Company shall pay all costs and expenses that it incurs with respect to the preparation, negotiation, execution, delivery
and performance of this Agreement, including, without limitation, any costs and expenses of its counsel. The Company shall pay
the reasonable fees and expenses of independent counsel for the Placement Agent with respect to the negotiation and execution
of this Agreement and the other Transaction Documents in accordance with the terms of the Company’s agreement with the Placement
Agent.

 

8.13        Titles
and Subtitles. The titles of the sections and subsections of the Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

 

8.14        Counterparts;
Execution by Facsimile Signature. This Agreement may be executed in any number of counterparts (including execution by facsimile),
each of which shall be an original, but all of which together shall constitute one instrument. This Agreement may be executed
by facsimile signature(s) which shall be binding on the party delivering same, to be followed by delivery of originally executed
signature pages.

 

8.15        Acknowledgment.
Any investigation or other examination that may have been made at any time by or on behalf of a party to whom representations
and warranties are made in this Agreement or in any other Transaction Documents shall not limit, diminish, supersede, act as a
waiver of, or in any other way affect the representations, warranties and indemnities contained in this Agreement and the other
Transaction Documents, and the respective parties may rely on the representations, warranties and indemnities made to them in
this Agreement and the other Transaction Documents irrespective of and notwithstanding any information obtained by them in the
course of any investigation, examination or otherwise, whether before or after any Closing.

 

8.16        Publicity.
Except as otherwise required by law, no announcement or other disclosure, public or otherwise, concerning the transactions contemplated
by this Agreement shall be made, either directly or indirectly, by any party hereto which mentions another party (or parties)
hereto without the prior written consent of such other party (or parties), which consent shall not be unreasonably withheld, delayed
or conditioned.

 

8.17        No
Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer on any person other than the
parties hereto or their respective successors and assigns any rights, remedies, obligations or Liabilities under or by reason
of this Agreement.

 

8.18        Pronouns.
All pronouns contained herein, and any variations thereof, shall be deemed to refer to the masculine, feminine or neutral, singular
or plural, as to the identity of the parties hereto may require.

 

9.            DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the meanings herein specified:

 

9.4          “Affiliate”
shall mean, with respect to any Person specified: (i) any Person that directly or indirectly through one or more intermediaries
controls, is controlled by or under common control with the Person specified; (ii) any director, officer, or Subsidiary of the
Person specified; and (iii) the spouse, parents, children, siblings, mothers-in-law, fathers-in law, sons-in-law, daughters-in-law,
brothers-in-law, and sisters-in-law of the Person specified, whether arising by blood, marriage or adoption, and any Person who
resides in the specified Person’s home. For any director, officer, or Subsidiary of the Person specified. For purposes of
this definition and without limitation to the previous sentence, (x) “control” (including, with correlative meanings,
the terms “controlled by” and “under common control with”) of a Person means the power, direct or indirect,
to direct or cause the direction of management and policies of such Person, whether through ownership of voting securities, by
contract or otherwise, and (y) any Person beneficially owning, directly or indirectly, more than ten percent (10%) or more of
any class of voting securities or similar interests of another Person shall be deemed to be an Affiliate of that Person.

 

     

     

    

 

9.5          “Agreement”
shall have the meaning set forth in the preamble to this Agreement.

 

9.6          Intentionally
Omitted.

 

9.7          “Certificate”
shall have the meaning set forth in Section 5.1.12.

 

9.8          “Closing”
shall mean the Initial Closing or the Subsequent Closing, as applicable.

 

9.9          “Code”
shall have the meaning set forth in Section 3.16.2.

 

9.10        “Closing
Date” shall mean the Initial Closing Date or the Subsequent Closing Date, as applicable.

 

9.11       
“Common Stock” shall have the meaning set forth in the preamble to this Agreement.

 

9.12        “Common
Stock Equivalents” shall means any securities of the Company or the Subsidiaries which would entitle the holder
thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants
or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder
thereof to receive Common Stock.

 

9.13        “Company”
shall have the meaning set forth in the preamble to this Agreement.

 

9.14        “Consents”
shall mean any consents, waivers, approvals, authorizations, or certifications from any Person or under any Contract, Organizational
Document or Requirement of Law, as applicable.

 

9.15        “Contracts”
shall mean any indentures, indebtedness, contracts, leases, agreements, instruments, licenses, undertakings and other commitments,
whether written or oral.

 

9.16        “Copyrights”
shall mean all copyrights, copyrightable works, mask works and databases, including, without limitation, any computer software
(object code and source code), Internet web-sites and the content thereof, and any other works of authorship, whether statutory
or common law, registered or unregistered, and registrations for and pending applications to register the same including all reissues,
extensions and renewals thereto, and all moral rights thereto under the laws of any jurisdiction.

 

9.17        “Employee”
shall have the meaning set forth in Section 3.17.1.

 

9.18        “Employee
Benefit Plans” shall have the meaning set forth in Section 3.18.1.

 

9.19        “Encumbrances”
shall mean any security interests, liens, encumbrances, pledges, mortgages, conditional or installment sales Contracts, title
retention Contracts, transferability restrictions and other claims or burdens of any nature whatsoever.

 

     

     

    

 

9.20        “Environmental
Laws” shall mean any Federal, state or local law or ordinance or Requirement of Law or regulation pertaining to
the protection of human health or the environment, including, without limitation, the Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C. Sections 9601, et seq., the Emergency Planning and Community Right-to-Know Act, 42 U.S.C. Sections
11001, et seq., and the Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901, et seq.

 

9.21        “ERISA”
shall have the meaning set forth in Section 3.18.1.

 

9.22        “FDA”
shall have the meaning set forth in Section 3.20.1.

 

9.23        Intentionally
Omitted.

 

9.24        “Governmental
or Regulatory Authority” shall mean any court, tribunal, arbitrator, authority, agency, commission, official or
other instrumentality of the government of the United States or of any foreign country, any state or any political subdivision
of any such government (whether state, provincial, county, city, municipal or otherwise).

 

9.25        “Hazardous
Substances” shall mean oil and petroleum products, asbestos, polychlorinated biphenyls, urea formaldehyde and any
other materials classified as hazardous or toxic under any Environmental Laws.

 

9.26        “Indemnified
Losses” shall mean all losses, Liabilities, obligations, claims, demands, damages, penalties, settlements, causes
of action, costs and expenses arising out of any third party claim or action against an Indemnified Party, including, without
limitation, the actual costs paid in connection with an Indemnified Party’s investigation and evaluation of any claim or
right asserted against such Indemnified Party and all reasonable attorneys’, experts’ and accountants’ fees,
expenses and disbursements and court costs including, without limitation, those incurred in connection with the Indemnified Party’s
enforcement of the indemnification provisions of Section 7 of this Agreement.

 

9.27        “Indemnified
Party” shall have the meaning set forth in Section 7.4.

 

9.28        “Initial Closing” shall have the meaning set forth in Section 2.1.

 

9.29        “Initial
Closing Date” shall have the meaning set forth in Section 2.1.

 

9.30        “Initial
Units” shall have the meaning set forth in Section 1.2.

 

9.31        “Investor
Rights Agreement” shall have the meaning set forth in Section 5.1.5.

 

9.32        “Leased
Real Property” shall have the meaning set forth in Section 3.19.

 

9.33        “Legal
Proceeding” shall mean any action, suit, arbitration, claim or investigation by or before any Governmental or Regulatory
Authority, any arbitration or alternative dispute resolution panel, or any other legal, administrative or other proceeding.

 

9.34        “Liabilities”
shall mean all obligations and liabilities including, without limitation, direct or indirect indebtedness, guaranties, endorsements,
claims, losses, damages, deficiencies, costs, expenses, or responsibilities, in any of the foregoing cases, whether fixed or unfixed,
known or unknown, asserted or unasserted, choate or inchoate, liquidated or unliquidated, or secured or unsecured.

 

     

     

    

 

9.35        “Licensed
Intellectual Property” shall mean all Copyrights, Patents, Trademarks, technology rights and licenses, trade secrets,
know-how, inventions, methods, techniques and other intellectual property any one or more Entities have or has the right to use
in connection with its business or their respective businesses, as applicable, pursuant to license, sublicense, agreement or permission.

 

9.36        “Material
Adverse Effect” shall have the meaning set forth in Section 3.1.

 

9.37        “Material
Contract” shall have the meaning set forth in Section 3.10.1.

 

9.38        “Order”
shall mean any judgment, order, writ, decree, stipulation, injunction or other determination whatsoever of any Governmental or
Regulatory Authority, arbitrator or any other Person whose finding, ruling or holding is legally binding or is enforceable as
a matter of right (in any case, whether preliminary or final and whether voluntarily imposed or consented to).

 

9.39        “Organizational
Documents” shall mean, with respect to any Person, such Person’s articles or certificate of incorporation,
by-laws or other governing or constitutive documents, if any.

 

9.40        “Owned
Intellectual Property” shall mean all Copyrights, Patents, Trademarks, technology, trade secrets, know-how, inventions,
methods, techniques and other intellectual property owned by the Company or any of its Subsidiaries.

 

9.41        “Patents”
shall mean patents and patent applications (including, without limitation, provisional applications, utility applications and
design applications), including, without limitation, reissues, patents of addition, continuations, continuations-in-part, substitutions,
additions, divisionals, renewals, registrations, confirmations, re-examinations, certificates of inventorship, extensions and
the like, any foreign or international equivalent of any of the foregoing, and any domestic or foreign patents or patent applications
claiming priority to any of the above.

 

9.42        “Permits”
shall mean all licenses, permits, certificates of authority, authorizations, approvals, registrations, franchises, rights, Orders,
qualifications and similar rights or approvals granted or issued by any Governmental or Regulatory Authority relating to the Business.

 

9.43        “Per
Unit Purchase Price” shall have the meaning set forth in Section 1.2.

 

9.44        “Person”
shall mean any individual, corporation, partnership, firm, joint venture, association, limited liability company, limited liability
partnership, joint-stock company, trust, unincorporated organization or Governmental or Regulatory Authority.

 

9.45        “Placement
Agent” shall mean Laidlaw & Company (UK) Ltd.

 

9.46        “Premises” shall have the meaning set forth in Section 3.21.

 

9.47        “Products”
shall have the meaning set forth in Section 3.13.2.

 

9.48        “Purchase
Price” shall mean the “Total Purchase Price Amount” set forth in Exhibit A for each respective
Purchaser.

 

9.49        “Purchasers”
and “Purchaser” shall have the meaning set forth in the preamble to this Agreement.

 

     

     

    

 

9.50        “Real
Property Leases” shall have the meaning set forth in Section 3.19.

 

9.51        “Regulatory
Approvals” shall mean all Consents from all Governmental or Regulatory Authorities.

 

9.52        “Requirement
of Law” shall mean any provision of law, statute, treaty, rule, regulation, ordinance or pronouncement having the
effect of law, and any Order.

 

9.53        “Schedules”
shall have the meaning set forth in the preamble to Section 3.

 

9.54        “SEC”
shall mean Securities and Exchange Commission.

 

9.55        “Securities” shall have the meaning set forth in Section 3.31.

 

9.56        “Securities
Act” shall have the meaning set forth in Section 3.23.

 

9.57        “Subsequent
Closing” shall mean the funding which occurs on the Subsequent Closing Date.

 

9.58        “Subsequent
Closing Date” shall have the meaning set forth in Section 2.2.

 

9.59        “Subsequent
Closing Purchaser” shall have the meaning set forth in Section 1.3.

 

9.60        “Subsidiaries” and “Subsidiary” shall mean, with respect to any Person (including
the Company), any corporation, partnership, association or other business entity of which more than 50% of the issued and outstanding
stock or equivalent thereof having ordinary voting power is owned or controlled by such Person, by one or more Subsidiaries or
by such Person and one or more Subsidiaries of such Person.

 

9.61        “Tax Returns” shall mean any declaration, return, report, estimate, information return, schedule, statements
or other document filed or required to be filed in connection with the calculation, assessment or collection of any Taxes or,
when none is required to be filed with a taxing authority, the statement or other document issued by, a taxing authority.

 

9.62        “Taxes”
shall mean (i) any tax, charge, fee, levy or other assessment including, without limitation, any net income, gross income, gross
receipts, sales, use, ad valorem, transfer, franchise, profits, payroll, employment, social security, unemployment, excise,
estimated, stamp, occupancy, occupation, property or other similar taxes, including any interest or penalties thereon, and additions
to tax or additional amounts imposed by any federal, state, local or foreign Governmental or Regulatory Authority, domestic or
foreign or (ii) any Liability for the payment of any taxes, interest, penalty, addition to tax or like additional amount resulting
from the application of Treasury Regulation §1.1502-6 or comparable Requirement of Law.

 

9.63        “Trademarks”
shall mean trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names,
trade styles, uniform resource locators (URLs), domain names, trade dress, any other names and locators associated with the Internet,
other source of business identifiers, whether registered or unregistered and whether or not currently in use, and registrations,
applications to register and all of the goodwill of the business related to the foregoing.

 

     

     

    

 

9.64        “Transaction
Documents” shall mean this Agreement, the Subscription Agreements, the Warrant, the Registration Rights Agreement
and all other documents, certificates and instruments executed and delivered at any Closing.

 

9.65        “Units”
shall have the meaning set forth in the preamble to this Agreement.

 

9.66        “Warrant Shares” shall have the meaning set forth in Section 1.1.

 

[SIGNATURES
ON FOLLOWING PAGES]

 

     

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Unit Purchase Agreement as of [_________ ___], 2017.

 

	COMPANY:

                    
 HOTH THERAPEUTICS, INC. 

	 
	 	 	 
	By:	 	 
	Name:
 Title:
 
 Address:

 
 Tel: 

Fax:
 email: 

	 
	 	 	 
	PURCHASERS:
	 

                                                The
                                         Purchasers set forth on Exhibit A to the Agreement have executed a Subscription
                                         Agreement with the Company which provides, among other things, that by executing the
                                         Subscription Agreement each Purchaser is deemed to have executed the UNIT PURCHASE AGREEMENT
                                         in all respects and is bound to purchase the Units set forth in such Subscription Agreement
                                         and Exhibit A to the Agreement.

                                                 

     

     

    

 

EXHIBIT
A

SCHEDULE OF PURCHASERS

 

Initial
Closing

 

	Name
    of

Purchaser	Initial
    Units	Preferred

Shares 
	Warrant

Shares	Total
    Purchase

    Price Amount
	 	 	 	 	$
		 	 	 	TOTAL:
    $

 

Subsequent
Closing

 

	Name
    of

Subsequent

Closing

Purchaser	Subsequent

Units	Preferred

Shares
	Warrant

Shares	Total
    Purchase

Price Amount
	 	 	 	 	TOTAL:
    $

 

     

     

    

 

EXHIBIT
B

 

FORM
OF WARRANT

 

     

     

    

 

EXHIBIT
C

 

Form
of SUBSCRIPTION AGREEMENT

 

     

     

    

 

EXHIBIT
D

 

FUNDING
INSTRUCTIONS

 

     

     

    

 

EXHIBIT
E

 

Form
of legal opinion

 

     

     

    

 

exhibit
f

 

FORM
OF INVESTOR RIGHTS AGREEMENTExhibit 10.10

 

INVESTOR RIGHTS AGREEMENT
BY AND BETWEEN

 

HOTH THERAPEUTICS
INC.

 

AND

 

THE INVESTORS PARTY HERETO

 

August     , 2017

 

    1

     

    

 

INVESTOR RIGHTS AGREEMENT

THIS INVESTOR RIGHTS AGREEMENT
(the“ Agreement”) is entered into as of August , 2017, by between Hoth Therapeutics Inc., a Nevada corporation
(the “Company”) and the persons identified on Exhibit A hereto (collectively, the “Investors”).

 

BACKGROUND

 

WHEREAS,
the Investors are purchasing or otherwise acquiring shares of the Company’s Series A Preferred Stock, par value $0.0001 per
share pursuant to that certain Private Placement Memorandum (the “Memorandum”), dated as of the date
hereof, by and among the Investors and the Company.

 

NOW, THEREFORE,
in consideration of the mutual promises, representations, warranties, covenants and conditions set forth in this Agreement and
in the Memorandum, the parties, intending to be legally bound, mutually agree as follows:

 

Section 1 GENERAL

 

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

 

“Affiliate”
means, with respect to any Person, any other Person who is an “affiliate” of such Person within the meaning
of Rule 12b-2 of the General Rules and Regulations under the Exchange.

 

“Board”
means the Board of Directors of the Company.

 

“Articles”
means the Company’s Amended and Restated Articles of Incorporation, as such may be amended from time to time in accordance
with the provisions thereof.

 

“Charter
Documents” means the Articles and the Bylaws of the Company as in effect on the date hereof, and as may be amended
from time to time in accordance with the provisions thereof.

 

“Common
Stock” means shares of common stock, par value $0.0001 of the Company.

 

“Counterpart”
means a counterpart signature page to this Agreement in substantially the same form as Exhibit B attached to this Agreement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and any rules or regulations promulgated thereunder,
all as the same is in effect from time to time.

 

“Form
S-3” means such form under the Securities Act as in effect on the date hereof or any successor form under the Securities
Act that permits significant incorporation by reference of the Company’s subsequent public filings under the Exchange Act.

 

“Holder”
means any Investor owning of record any shares of Series A Preferred Stock and any assignee of record of such Series A Preferred
Stock of the Company.

 

“Indemnifiable
Losses” means shall mean all losses, liabilities, obligations, claims, demands, damages, penalties, settlements,
causes of action, costs and expenses, including, without limitation, the actual reasonable costs paid in connection with an Indemnitee’s
investigation and evaluation of any claim or right asserted against such Indemnitee Party and all reasonable attorneys’,
experts’ and accountants’ fees, expenses and disbursements and court costs including, without limitation, those incurred
in connection with the Indemnitee’s enforcement of this Agreement and the indemnification provisions of Section 7 of this
Agreement.

 

    2

     

    

 

“IPO”
means the Company’s offering of its securities for sale or resale pursuant to a registration statement under the Securities
Act.

 

“Major
Holder” means any Holder in the aggregate of at least 500,000 shares of Series A Preferred Stock.

 

The number
of shares of “Registrable Securities then outstanding” shall be determined by the number of shares of
Common Stock of the Company outstanding which are Registrable Securities plus the number of shares of Common stock of the Company
issuable pursuant to then exercisable, convertible or exchangeable securities which are Registrable Securities.

 

“Person”
means any natural person, corporation, general partnership, limited partnership, limited liability partnership, limited liability
company, proprietorship, joint venture, trust, association, union, entity or other form of business organization or any governmental
or regulatory authority whatsoever.

 

“Qualified
Initial Public Offering” means the Company’s offering of its securities for sale or resale pursuant to a registration
statement under the Securities Act with aggregate gross proceeds to the Company of no less than $5,000,000.

 

“Register,”
“registered” and “registration” refer to a registration effected by preparing and
filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of
such registration statement.

 

“Registrable
Securities” means the following shares of the Company’s Common Stock (referred to herein collectively as the
“Stock”): (i) the shares of Common Stock of the Company issued or issuable upon conversion of shares
of the Series A Preferred Stock of the Company issued and outstanding as of the date of this Agreement and (ii) the shares of Common
Stock issued or issuable upon exercise of the warrants issued pursuant to the Memorandum, but shall not include shares for which
registration rights have terminated pursuant to Section 10.5 hereof, or (iii) any other shares of the Company’s Common Stock
issued as (or issuable upon conversion or exercise of any warrant, right or other security which is issued as) a dividend or other
distribution with respect to or in exchange for or replacement of shares of Series A Preferred Stock of the Company, excluding
in all cases, however, any Registrable Securities sold by a person in a transaction in which an Investor’s rights under this
Agreement are not assigned; provided, however, that Registrable Securities shall not include any securities (A) sold to or through
a broker or dealer or underwriter in a public distribution or a public securities transaction, (B) sold in a transaction exempt
from the registration and prospectus delivery requirements of the Securities Act under Section 4(l) thereof so that all transfer
restrictions and restrictive legends with respect thereto are removed upon the consummation of such sale, or (C) if the Investor
thereof is no longer entitled to exercise any right provided in Sections 2, 3 or 4 in accordance with Section 10.5 hereof.

 

“SEC”
or “Commission” means the Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended, and any rules or regulations promulgated thereunder, all as the
same is in effect from time to time.

 

“Series
A Director” means that certain director elected to the Board by the holders of the Series A Preferred Stock.

 

“Series
A Preferred Stock” means the Company’s Series A Preferred Stock, par value $0.0001 per share held by the Holders
and their permitted assigns.

 

    3

     

    

 

“Subsidiaries”
means any Person of which a Company, directly or indirectly, through one or more intermediaries owns or controls at the time at
least fifty percent (50%) of the outstanding voting equity or similar interests or the right to receive at least fifty percent
(50%) of the profits or earnings or aggregate equity value.

 

“Transaction Documents” has
the meaning ascribed to it in the Memorandum.

 

Section 2          PIGGYBACK RIGHTS

 

2.1.
Notice of Registration. If at any time or from time to time, the Company shall determine to register any of its equity securities
for its own account in a direct public offering or an underwritten public offering, the Company will:

 

(i)         prior to the filing of such registration give to the Holders written notice thereof; and

 

(ii)        include
in such registration (and any related qualification under blue sky laws or other compliance), and underwriting, all the Registrable
Securities (subject to cutback as set forth in Section 2.2) specified in a written request or requests made within thirty (30)
days after the receipt of such written notice from the Company by any Holder.

 

2.2.
Underwriting. The right of any Holder to registration pursuant to this Section 2 shall be conditioned upon such Holder’s
participation in such offering and the inclusion of Registrable Securities in the offering to the extent provided herein. If any
Holder proposes to distribute its securities through an underwritten offering, such Holder shall (together with the Company and
any other stockholders distributing their securities through such underwriting) enter into an underwriting agreement in customary
form with the underwriter or underwriters selected for such underwriting by the Company. Notwithstanding any other provision of
this Section 2, if the Company or the managing underwriter determines that marketing factors require a limitation of the number
of shares to be underwritten, the managing underwriter may limit the Registrable Securities to be included in such registration.
The Company shall so advise the Holders and the other stockholders distributing their securities through such offering pursuant
to piggyback registration rights, and the number of shares of Registrable Securities and other securities that may be included
in the registration and underwriting shall be allocated among the Holders of Series A Preferred Stock in proportion, in each case
as nearly as practicable, to the respective amounts of Registrable Securities held by such Holders and other securities held by
other stockholders at the time of filing the registration statement, provided that the aggregate amount of Registrable Securities
held by selling Holders included in the offering shall not be reduced below thirty percent (30%) of the total amount of securities
included in that offering unless the offering is the IPO of the Company’s securities, in which case all Registrable Securities
held by Holders may be excluded. To facilitate the allocation of shares in accordance with the above provisions, the Company or
the underwriters may round the number of shares allocated to each Holder or other stockholder to the nearest 100 shares. If any
Holder or other stockholder disapproves of the terms of any such underwriting, he or she may elect to withdraw therefrom by written
notice to the Company and the managing underwriter. Any securities excluded or withdrawn from such offering shall be withdrawn
from such registration, and shall not be transferred in a public distribution prior to one-hundred eighty (180) days after the
effective date of the registration statement relating thereto.

 

2.3. Right
to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under
this Section 2 prior to the effectiveness of such registration, whether or not any Holder has elected to include securities in
such registration.

 

    4

     

    

 

Section 3          DEMAND REGISTRATION

 

3.1.
Demand Registration. If at any time after the three (3) month anniversary after the Company’s Common Stock becomes subject
to reporting requirements under the Exchange Act (whether through a Qualified Initial Public Offering, a Pubco Transaction (as
defined below) or otherwise, (the “Start Date”)), whichever is earlier, Holders of at least thirty-five percent (35%)
of the Registrable Securities then outstanding request in writing that the Company file a registration statement under the Securities
Act covering the registration of at least 20% of the then outstanding Registrable Securities, or a lesser percentage if the anticipated
aggregate offering price, net of underwriting discounts and commissions, would exceed $10,000,000, then the Company will (i) give
written notice of the proposed registration to all other Holders within ten (10) days of receipt of such request, and (ii) use
its best efforts to cause such shares to be registered (together with any Registrable Securities of any Holder or Holders joining
in such request as are specified in a written request received by the Company) within twenty (20) days of the mailing of such written
notice by the Company; provided, however, that (a) the Company shall not be required to effect any such registration (i) within
one-hundred eighty (180) days prior to the filing of, and one-hundred eighty (180) days following the effective date of, a registration
statement pertaining to a direct or underwritten public offering of the Company’s securities in which Registrable Securities
were or will be registered; provided, that, the Company is actively employing in good faith all reasonable efforts to cause such
registration statement to become effective, (ii) if, within thirty (30) days of receipt of the written request from the Holders
pursuant to this Section 3.1, the Company gives notice to the Holders of the Company’s intention to make a public offering
within sixty (60) days or (iii) if the Holders making the request propose to dispose of shares of Registrable Securities that may
be immediately registered on Form S-3 pursuant to a request made pursuant to Section 4 below,(b) if the Company furnishes the requesting
Holders with a certificate of the President of the Company stating that in the good faith judgment of the Board of Directors it
would be materially detrimental to the Company and its stockholders for a registration statement to be filed in the near future,
such registration obligation shall be deferred for not more than ninety (90) days, but the Company shall not be entitled to such
deferral more than once in any 12-month period and (c) the Company shall not be obligated to effect more than a total of two (2)
demand registrations pursuant to this Section 3, and (d) the Company shall not be required to effect a registration in any particular
jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration,
unless the Company is already subject to service in such jurisdiction and except as may be required under the Act. Any such registration
shall be firmly underwritten by an underwriter of nationally recognized standing which shall be mutually agreeable to the Company
and a majority in interest of the Holders requesting the registration. If any Holder disapproves of the terms of the underwriting,
such person may elect to withdraw therefrom by written notice to the Company, the managing underwriter and the Holders making the
request. The Registrable Securities so withdrawn shall also be withdrawn from registration, and such Registrable Securities shall
not be transferred in a public distribution prior to ninety (90) days after the effective date of such registration; provided,
however, that, if by the withdrawal of such Registrable Securities, a greater number of Registrable Securities held by other Holders
may be included in such registration (up to the maximum of any limitation imposed by the underwriters), then the Company shall
offer to all Holders who have included Registrable Securities in the registration the right to include additional Registrable Securities.
Holders shall be so entitled to include additional Registrable Securities in the registration upon written notice within ten (10)
days of such offer being made.

 

3.2. Underwritten
Public Offering. In the event the Company offers its equity securities in an underwritten offering, the Company shall enter
into an underwriting agreement with an investment banking firm or firms containing representations, warranties, indemnities and
agreements then customarily included by an issuer in underwriting agreements with respect to secondary distributions. The Company
shall not cause the registration under the Securities Act of any other shares of its Common Stock to become effective (other than
registration of an employee stock plan, or registration in connection with any Rule 145 or similar transaction) during the effectiveness
of a registration requested hereunder for an underwritten public offering if, in the judgment of the underwriter or underwriters,
marketing factors would materially adversely affect the price of the Registrable Securities subject to such underwritten registration.

 

    5

     

    

 

Section 4          FORM S-3 REGISTRATION

 

If at any
time that the Company is eligible to use a Form S-3, holders of at least thirty percent (30%) of the Registrable Securities shall
be entitled to request in writing (each, an “S-3 Registration Request”) registrations of Registrable Securities then
owned by such requesting Holders on a Form S-3 registration statement or any successor form under the Securities Act (an “S-3
Registration”). The Company shall pay for the expenses of such request as provided in Section 6. The S-3 Registration Request
must be made in writing, and the S-3 Registration Request shall: (i) specify the number of shares intended to be offered and sold;
(ii) express the present intention of the requesting Holders to offer or cause the offering of such shares for distribution; and
(iii) contain the undertaking of the requesting Holders to provide all such information and materials and take all such action
as may be required in order to permit the Company to comply with all applicable requirements of the SEC and to obtain any desired
acceleration of the effective date of such registration statement. The Company shall, as soon as practicable, (a) promptly give
written notice of the proposed registration to all other Holders, and (b) file an S-3 Registration and obtain all such qualifications
and compliance as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of the
requesting Holders’ Registrable Securities as are specified in the S-3 Registration Request (together with any Registrable
Securities of any Holder or Holders joining in such request as are specified in a written request received by the Company within
twenty (20) days after receipt of such written notice from the Company), within 15 days after receipt of such written notice by
the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance,
pursuant to this Section 4: (i) if Form S-3 is not available for such offering by the requesting Holders; (ii) the requesting Holders,
together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable
Securities and such other securities (if any) at an aggregate gross price to the public of less than $1,000,000; (iii) if within
thirty (30) days of receipt of a written request from the requesting Holders, the Company gives notice to the Holders of the Company’s
intention to make its IPO or a public offering within sixty (60) days; (iv) if the Company furnishes the requesting Holders with
a certificate of the President, Chief Executive Officer or Chairman of the Board of the Company stating that in the good faith
judgment of the Board of Directors it would be seriously detrimental to the Company and its stockholders for a registration statement
to be filed in the near future, such registration obligation shall be deferred for not more than ninety (90) days, but the Company
shall not be entitled to such deferral more than once in any 12-month period, (iv) if in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a general consent to service or process in effecting such registration,
qualification or compliance; or (v) the Company has, within the twelve (12) month period preceding the date of such request, already
effected two registrations on Form S-3 for any Holder pursuant to this Section 4.

 

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Section 5         OBLIGATIONS OF COMPANY

 

Whenever
the Company is required by the provisions of this Agreement to effect the registration of the Registrable Securities, the Company
shall: (i) prepare and, as soon as possible, file with the SEC a registration statement with respect to the Registrable Securities,
and use its reasonable best efforts to cause such registration statement to become effective and, upon the request of the Holders
of a majority of the Registrable Securities registered thereunder, to remain effective until the earlier of the completion of the
distribution of the Registrable Securities so registered or one hundred twenty (120) days subsequent to the effective date of such
registration; (ii) prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus
used in connection therewith as may be necessary to make and to keep such registration statement effective and to comply with the
provisions of the Securities Act with respect to the sale or other disposition of all securities proposed to be registered in such
registration statement for the period covered under clause (i) above; (iii) furnish to any Holder such number of copies of any
prospectus (including any preliminary prospectus and any amended or supplemented prospectus), in conformity with the requirements
of the Securities Act, as such Holder may reasonably request in order to effect the offering and sale of the Registrable Securities
to be offered and sold; (iv) use its best efforts to register or qualify the Registrable Securities covered by such registration
statement under the securities or blue sky laws of such states as the Holders shall reasonably request, maintain any such registration
or qualification current for the period covered under clause (i) above, and take any and all other actions either necessary or
reasonably advisable to enable Holders to consummate the public sale or other disposition of the Registrable Securities in jurisdictions
where such Holders desire to effect such sales or other disposition; (v) take all such other actions either necessary or reasonably
desirable to permit the Registrable Securities held by a Holder to be registered and disposed of in accordance with the method
of disposition described herein; (vi) in the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering; (vii) notify each
Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required
to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, such
obligation to continue for one hundred twenty (120) days from the date of effectiveness of the registration statement; (viii) cause
all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities
issued by the Company are then listed; (ix) provide a transfer agent and registrar for all Registrable Securities registered pursuant
hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;
and (x) use its best efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant
to Section 3, if such securities are being sold through underwriters, or if such securities are not being sold through underwriters,
on the date that the registration statement with respect to such securities becomes effective,(A) an opinion, dated such date as
registration statement becomes effective, of the counsel representing the Company for the purposes of such registration, in form
and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters and to
the Holders requesting registration of Registrable Securities and (B) a letter dated such date as the registration statement becomes
effective, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering and reasonably satisfactory to the Holders of a
majority of the Registrable Securities being registered, addressed to the underwriters, if any, and to the Holders requesting registration
of Registrable Securities. Notwithstanding the foregoing, the Company shall not be required to register or to qualify an offering
of the Registrable Securities under the laws of a state if as a condition to so doing the Company is required to qualify to do
business or to file a general consent to service of process in any such state or jurisdiction, unless the Company is already subject
to service in such jurisdiction.

 

Subject to the
volume limitations and other underwriting conditions set forth in Sections 2.2 and 3.1, above, in the event a registration statement
is not filed with the SEC including all the Registrable Securities no later than ninety (90) days after the Start Date or if such
registration statement is not declared effective by the SEC within one hundred eighty (180) days following the Start Date (or is
declared effective but can no longer be used to sell Registrable Securities), the Company shall pay to each Holder of Registrable
Securities one (1%) percent of such Holder’s purchase price of that holder’s unregistered Registrable Securities for
each thirty (30) days (pro rata for shorter periods) until such registration statement is filed with the SEC and/or declared effective
or is able to be reused by the holders of Registrable Securities, or such Holder is able to sell its shares pursuant to Rule 144
or otherwise, as the case may be. Notwithstanding the foregoing, in no event shall any payment of liquidated damages under this
Agreement exceed 6% of a Holder’s purchase price of such holders unregistered Registrable Securities.

 

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SECTION 6         EXPENSES OF REGISTRATION

 

The Company
shall pay all of the fees and expenses (exclusive of underwriting discounts and commission and stock transfer taxes) incurred by
the Company in complying with Sections 2, 3, 4 and 5 hereof in connection with any registration statement that is initiated pursuant
to this Agreement, including, without limitation, all SEC and blue sky registration and filing fees, printing expenses, transfer
agent and registrar fees, the fees and disbursements of the Company’s outside counsel, the reasonable fees and disbursements
of one special counsel to the Holders (not to exceed $10,000), and the expense of any special audits not to exceed ten thousand
dollars ($10,000) incident to or required by any such registration (the “Registration Expenses”). If
a registration proceeding is begun upon the request of Holders pursuant to Sections 3 or 4 but such request is subsequently withdrawn,
then the Holders of Registrable Securities to have been registered shall bear all Registration pro rata on the basis of the number
of shares to have been registered,. Notwithstanding the foregoing, however, if at the time of the withdrawal, the Holders have
learned of a material adverse change in the condition, business or prospects of the Company from that known to the Holders at the
time of their request, then the Holders shall not be required to pay any of said Registration Expenses. In such case, the Company
shall be deemed not to have effected a registration pursuant to Sections 3 or 4, as applicable, of this Agreement. Any underwriting
discounts, fees and disbursements of any additional counsel to the Holders, selling commissions and stock transfer taxes applicable
to the Registrable Securities registered on behalf of Holders shall be borne by the Holders of the Registrable Securities included
in such registration. The expenses of any legal services or special audit required in connection with any registration, qualification
or compliance pursuant to Section 3 or 4 in excess of ten thousand dollars ($10,000) shall be borne pro rata by the Holders of
Registrable Securities proposing to distribute such shares of Registrable Securities in such registration.

 

SECTION 7         INDEMNIFICATION

 

7.1. The Company.
To the extent permitted by law, the Company will indemnify Holders and each person controlling Holders within the meaning of Section
15 of the Securities Act, and each underwriter if any, of the Company’s securities, with respect to any registration, qualification
or compliance which has been effected pursuant to this Agreement, against all expenses, claims, losses, damages or liabilities
(or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened,
arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration
statement, prospectus, offering circular or other document, or any amendment or supplement thereto, incident to any such registration,
qualification or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or
any violation by the Company of any rule or regulation promulgated under the Securities Act or Exchange Act or state securities
law applicable to the Company in connection with any such registration, qualification or compliance, and the Company will reimburse
Holders and each person controlling Holders, and each underwriter, if any, for any legal and any other expenses reasonably incurred
in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, provided that the Company
will not be liable in any such case to the extent that any such claim, loss, damage, liability or expense arises out of or is based
on any untrue statement or omission or alleged untrue statement or omission, made in reliance upon and in conformity with written
information expressly furnished to the Company by such Holder or controlling person or underwriter seeking indemnification for
use in connection with such registration by any such Holder, underwriter or controlling person.

 

    8

     

    

 

7.2.
Holders. To the extent permitted by law, each Holder shall, if Registrable Securities held by such Holder are included in the
securities as to which such registration, qualification or compliance is being effected (the “Indemnifying Holder”),
indemnify the Company, each of its directors and officers and each person who controls the Company within the meaning of Section
15 of the Securities Act, and each underwriter, if any, of the Company’s securities with respect to any registration, qualification
or compliance which has been effected pursuant to this Agreement, against all expenses, claims, losses, damages and liabilities
(or actions in respect thereof), arising out of or based on any untrue statement (or alleged untrue statement) of a material fact
contained in any such registration statement, prospectus, offering circular or other document, or any amendment or supplement thereto,
incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to state therein
a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by such
Indemnifying Holder of any rule or regulation promulgated under the Securities Act applicable to such Indemnifying Holder in connection
with any such registration, qualification or compliance, and the Indemnifying Holder will reimburse the Company, such directors
and officers and each person controlling Company and each underwriter, if any, for any legal or any other expenses reasonably incurred
in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, in each case to the
extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made
in such registration statement, prospectus, offering circular or other document, or any amendment or supplement thereto, incident
to any such registration, qualification or compliance, in reliance upon and in conformity with written information furnished to
the Company by such Indemnifying Holder, provided that in no event shall any indemnity under this Section 7.2 exceed the net proceeds
of the offering received by such Indemnifying Holder; provided, further, that the indemnity agreement contained in this Section
7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Indemnifying Holder (which consent shall not be unreasonably withheld); provided further, however, that
the indemnity agreement contained in this Section 7.2 with respect to any preliminary prospectus shall not inure to the benefit
of any Holder or underwriter, or any person controlling such Holder or underwriter, from whom the person asserting any such losses,
claims, damages or liabilities purchased shares in the offering, if a copy of the prospectus (as then amended or supplemented if
the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Holder or
underwriter to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of
the shares to such person, and if the prospectus (as so amended or supplemented) would have cured the defect giving rise to such
loss, claim, damage or liability.

 

7.3.
Defense of Claims. Each party entitled to indemnification under this Section 7 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly
after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying
Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall
not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party’s expense; provided,
however, that the Indemnifying Party shall pay such expense if representation of the Indemnified Party by counsel retained by the
Indemnifying Party would be inappropriate due to actual or potential differing interests between the Indemnified Party and any
other party represented by such counsel in such proceeding, and provided further that the failure of any Indemnified Party to give
notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 7 unless the failure to
give such notice is materially prejudicial to an Indemnifying Party’s ability to defend such action. No Indemnifying Party,
in the defense of any such claim or litigation shall, except with the written consent of each Indemnified Party which consent shall
not be unreasonably withheld, consent to entry of any judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such
claim or litigation. No Indemnifying Party shall be required to indemnify any Indemnified Party with respect to any settlement
entered into without the Indemnifying Party’s prior written consent.

 

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7.4.
Contribution. If the indemnification provided for in this Section 7 is held by a court of competent jurisdiction to be unavailable
to an Indemnified Party with respect to any losses, claims, damages or liabilities referred to herein, the Indemnifying Party,
in lieu of indemnifying such Indemnified Party thereunder, shall to the extent permitted by applicable law contribute to the amount
paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate
to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other, in connection
with the violations that resulted in such loss, claim, damage or liability, as well as any other relevant equitable considerations.
The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by a court of law by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission; provided, that in no event shall any contribution
by a Holder exceed the net proceeds from the offering received by such Holder.

 

7.5.    
Conflict; Survival. Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution
contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the
foregoing provisions, the provisions in the underwriting agreement shall control. The obligations of the Company and Holders under
Section 7 shall survive the completion of any offering of Registrable Securities in a registration statement.

 

SECTION 8         RULE 144 REPORTING

 

With a view
to making available the benefits of certain rules and regulations of the SEC which may at any time permit the sale of the Registrable
Securities to the public without registration, the Company agrees to:

 

(a)   
Make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act,
at all times from and after ninety (90) days following the effective date of the IPO;

 

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

 

(c)   
So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon request a written statement by
the Company as to its compliance with the reporting requirements of said Rule 144 of the Securities Act (at any time from and after
ninety (90) days following the effective date of the IPO) and of the Exchange Act (at any time after it has become subject to such
reporting requirements), a copy of the most recent annual or quarterly report of the Company, and such other reports and documents
of the Company, and such other reports and documents so filed as a Holder may reasonably request in availing itself of any rule
or regulation of the SEC allowing such Holder to sell any such securities without registration; and

 

(d)  
Take such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange Act, as is necessary
to enable the Holders to utilize Form S-3 for the sale of their Registrable Securities, such action to be taken as soon as practicable
after the end of the fiscal year in which the first registration statement filed by the Company for the offering of its securities
to the general public is declared effective.

 

(e)   
The Company agrees to pay the cost for its counsel or other counsel reasonably acceptable to Company to issue an opinion
under Rule 144 in connection with any request by a Holder to clear any restrictive legends from their shares.

 

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SECTION 9         STANDOFF AGREEMENT

 

Upon the
effectiveness of any registration statement for the offering of equity securities of the Company, if requested by the Company and
the managing underwriter, each Holder agrees not to offer to sell or sell, make any short sale of, loan, grant any option for the
purchase of, or otherwise dispose of any securities of the Company held by the Holder at any time during such period (other than
(i) those included in the offering or (ii) those unregistered shares of Series A Preferred Stock which are sold under Rule 144,
if any), directly or indirectly, without the prior written consent of the Company or the underwriters for such period of time following
the effective date of the registration statement (not to exceed one-hundred eighty (180) days) as may be requested by the Company
and the managing underwriter, provided that the foregoing obligations shall apply only if all directors and executive officers
of the Company and all other stockholders holding greater than one percent (1%) of the outstanding Registrable Securities of the
Company, and all other persons with registration rights (whether or not pursuant to this Agreement), enter into similar agreements.
This Section 9 shall not apply to a registration relating solely to employee benefit plans, or to a registration relating solely
to a transaction pursuant to Rule 145 under the Securities Act. In order to enforce the foregoing, the Company may impose stop-transfer
instructions with respect to the Registrable Securities of each Holder (and the share or securities of every other person subject
to the foregoing restrictions) until the end of such period.

 

From and
after the date of this Agreement, the Company shall not, without the prior written consent of at least a majority of the outstanding
Registrable Securities (the “Required Vote”), grant to future investors any registration rights on parity
with or more favorable than the registration rights granted to the Holders hereunder. Without limiting the foregoing, the Company
shall not, without the prior written consent of the Holders of at least the Required Vote, allow future investors to make a demand
registration which could result in such registration statement being declared effective prior to the earlier of either of the dates
set forth in subsection 3.1 or within one hundred twenty (120) days of the effective date of any registration effected pursuant
to Section 3.

 

SECTION 10   COVENANTS OF THE COMPANY

 

		10.1	Financial Information and Reporting.

 

(a)   
The Company and its Subsidiaries shall maintain accurate books and records of account in which complete entries shall be
made pursuant to a system of accounting established and administered in accordance with generally accepted accounting principles
consistently applied, and shall set aside on their books all such proper accruals and reserves as shall be required under generally
accepted accounting principles consistently applied.

 

(b)  
As soon as practicable after the end of each fiscal year of the Company, and in any event within one hundred twenty (120)
days thereafter, the Company shall furnish each Major Holder (other than a Major Holder reasonably deemed by the Board to be a
competitor of the Company) a consolidated balance sheet of the Company and its Subsidiaries, as at the end of such fiscal year,
and a consolidated statement of income and a consolidated statement of cash flows and changes in stockholders’ equity of
the Company and its Subsidiaries, for such year, all prepared in accordance with generally accepted accounting principles consistently
applied and setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail (the
“Audited Financial Statements”). The Audited Financial Statements shall be accompanied by a report and
opinion thereon by a firm of independent public accountants of national standing or such other independent public accounting firm
approved by the Board (the “Audit Report”) and a certificate of the Chief Executive Officer (or principal
operating officer) of the Company certifying that no information inconsistent with that set forth in the information in the Audited
Financial Statements and the Audit Report has been filed with any governmental agency or given to the Company’s or its Subsidiaries’
lenders.

 

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(c)   
The Company shall furnish to each Major Holder (other than a Major Holder reasonably deemed by the Board to be a competitor
of the Company), as soon as practicable after the end of each quarterly accounting periods in each fiscal year of the Company and
its Subsidiaries, and in any event within forty-five (45) days thereafter, an unaudited consolidated balance sheet of the Company
and its Subsidiaries, and an unaudited consolidated statement of income and an unaudited consolidated statement of cash flows and
changes in stockholders’ equity of the Company and its Subsidiaries for such quarterly period, and for the current fiscal
year to date, including a comparison of the current fiscal year to date to the Company’s annual budget with any variances
between such figures so listed and setting forth, in each case, comparable figures for the prior year, all prepared in accordance
with generally accepted accounting principles and in reasonable detail, with the exception that no notes need be attached to such
statements.

 

(d)  
The Company shall furnish to each Major Holder (other than a Major Holder reasonably deemed by the Board to be a competitor
of the Company), concurrently with the Company’s furnishing to the Board, but in no event later than thirty (30) days before
the end of each fiscal year, an annual budget, including projected income, cash flow and balance sheet statements on at least a
monthly basis for the ensuing fiscal year, and operating plans, including a brief qualitative description of the Company’s
plan by its Chief Executive Officer in support of the annual budget of the Company and its Subsidiaries for such fiscal year (the
“Budget”). In addition, the Company shall furnish concurrently with its furnishing to the Board, any
proposed material revision to the Budget. The Budget and each proposed material revision to the Budget shall be deemed accepted
as the Company’s Budget for such fiscal year only when it has been approved by a majority of the entire Board.

 

(e)   
The Company shall furnish to each Major Holder (other than a Major Holder reasonably deemed by the Board to be a competitor
of the Company), no later than five (5) days after an executive officer of the Company or its Subsidiaries, as the case may be,
first has knowledge of any of the following: (i) the occurrence of a default hereunder, or under any material agreement of the
Company or its Subsidiaries, including without limitation any loan or financing agreement, (ii) the commencement of any legal proceeding
against the Company or any of its Subsidiaries, or (iii) the occurrence of any effect, event, condition, or circumstance, in any
case, that individually or in the aggregate with any one or more other effects, events, conditions or circumstances, with or without
the passage of time, the giving of notice or both, has had or could reasonably be expected to have a material and adverse effect
on the business, properties, assets, financial condition, results of operations, prospects or liabilities of the Company or its
Subsidiaries, a statement from the Company’s Chief Executive Officer describing such occurrence and management’s anticipated
response.

 

(f)   
The Company shall furnish to each Major Holder (other than a Major Holder reasonably deemed by the Board to be a competitor
of the Company), such other financial and other information of the Company and its Subsidiaries as such Major Holder may reasonably
request pursuant to this Section 10.1(f) in writing; provided, that the Company generates such information in the ordinary course
of its business and the Company shall not be required to provide any information if and to the extent that such information would
lose its privilege under the attorney-client privilege between the Company and its counsel as a result of such information being
furnished to the Major Holders.

 

(g)   
The Company shall furnish to each Major Holder (other than a Major Holder reasonably deemed by the Board to be a competitor
of the Company), concurrently with the Company’s furnishing to the Board, but in no event later than five (5) business days
after the date of filing or delivery, copies of all materials of whatsoever nature filed or delivered by the Company or its Subsidiaries
thereof (i) with the Commission; (ii) with any national or foreign securities exchange or quotation bureau; and (iii) to holders
of any class of its capital stock or other securities.

 

(h)  
The Company shall furnish to each Major Holder (other than a Major Holder reasonably deemed by the Board to be a competitor
of the Company), concurrently with the Company’s furnishing to the Board, but in no event later than five (5) business days
after the date of delivery, any and all management letters provided by the Company’s accountants to the Company.

 

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(i)    
In the event the Company or any of its Subsidiaries fails to timely provide each Major Holder (other than a Major Holder
reasonably deemed by the Board to be a competitor of the Company) with the reports and information required by this Section 10.1,
a Major Holder may, after thirty (30) days after providing written notice of such failure to the Company, during which period the
Company shall have the opportunity to cure such deficiency, request that an independent accounting firm of such Holder’s
choice and as to which the Company has no reasonable objection audit the Company and its Subsidiaries, at the Company’s expense,
which audit shall be limited to the production of such reports in a manner satisfactory to the Major Holder in their reasonable
discretion. The Company and its Subsidiaries shall cooperate in good faith in any such audit.

 

		10.2	Reservation of Common Stock.

 

The
Company shall (and shall use its best efforts to cause its stockholders to) take any and all action necessary to reserve for issuance
the number of shares of Common Stock into which all of the shares of Series A Preferred Stock then outstanding are convertible,
and shall (and shall use its best efforts to cause its stockholders to) increase the number of shares of Common Stock reserved
for issuance as required by any increase in the number of shares of Common Stock into which the shares of Series A Preferred Stock
may then be converted.

 

		10.3	Board of Directors.

 

The
Company shall call, and shall use its best efforts to have, regular meetings of the Board not less often than once each quarter.
The Board may conduct meetings by any means of communication by which all directors participating may simultaneously hear each
other during the meeting. In the event a director’s presence in person at a meeting is desirable or necessary, the Company
shall pay all reasonable and appropriately documented travel expenses and other out-of-pocket expenses incurred by directors of
the Company in connection with attendance at such meeting of the Board or any committee thereof.

 

		10.4	Real Property Holding Corporation.

 

The
Company covenants that it will operate in a manner such that it will not become a “United States real property holding corporation”
as that term is defined in Section 897(c)(2) of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (a
“USRPHC”). The Company agrees to make determinations as to its status as a USRPHC, and will file statements
concerning those determinations with the Internal Revenue Service, in the manner and at the times required under Reg. § 1.897-2(h),
or any supplementary or successor provision thereto. Within thirty (30) days of a request from the Investors or any of their respective
partners, the Company will inform the requesting party, in the manner set forth in Reg. § 1.897- 2(h)(1)(iv) or any supplementary
or successor provision thereto, whether that party’s interest in the Company constitutes a United States real property interest
(within the meaning of Internal Revenue Code Section 897(c)(1) and the regulations thereunder) and whether the Company has provided
to the Internal Revenue Service all required notices as to its USRPHC status.

 

		10.5	Termination of Covenants.

 

Except
for the covenants set forth in Section 10.2, 10.6, 10.7 and 10.8, all covenants of the Company and its Subsidiaries contained in
this Section 10 of this Agreement shall expire and terminate as to the Holders upon the first to occur of (a) the consummation
of the Qualified Initial Public Offering or (b) the time at which the Company first becomes subject to the reporting provisions
of the Exchange Act. Unless otherwise specified herein, the rights and provisions of this Agreement shall terminate as to all Holders
on the fifth (5th) anniversary of the closing date of the Qualified Initial Public Offering.

 

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		10.6	Restrictive Agreements.

 

Neither
the Company nor any of its Subsidiaries will, without the prior written approval of the holders of a majority of the then outstanding
Series A Preferred Shares, enter into or become obligated under any agreement or contract (excluding sales agreements executed
in the ordinary course of business) including, without limitation, any loan agreement, promissory note (or other evidence of indebtedness),
mortgage, security agreement or lease, which by its terms prevents or restricts the Company or its Subsidiaries from performing
its obligations under this Agreement.

 

		10.7	D&O Insurance.

 

The Company
will use commercially reasonable efforts to obtain and maintain, a Directors’ and Officers’ insurance policy on the
Directors and Officers of the Company in an aggregate amount of at least two million dollars ($2,000,000). The Company will provide
a copy of the insurance certificate regarding the insurance described in this Section 10.7 to any Holder upon its request.

 

		10.8	Indemnification.

 

The Company
shall indemnify and hold harmless, to the maximum extent permitted under applicable law, each Holder, each of their respective
direct and indirect subsidiaries and Affiliates, and each of the respective partners, members, stockholders, equity holders, officers,
directors, trustees and other fiduciaries, employees, agents, and representatives of any of the foregoing (collectively, referred
to as the “Indemnitees” and individually as a “Indemnitee”) from and against
any and all Indemnifiable Losses resulting from, relating to or arising out of any claim or claims made against such Indemnitee
in connection with any threatened, pending or completed action, suit, arbitration, investigation or other proceeding arising out
of, or relating to the any Indemnitee’s performance of its obligations or the exercise of any Indemnitee’s rights in
accordance with the terms of this Agreement, including actions taken in their capacity as directors or stockholders of the Company;
provided, however, that the Company shall not be obligated to indemnify or hold harmless any Indemnitee under this Section 10.8
against any Indemnifiable Losses resulting from or arising out of any such action or claim if it has been adjudicated by a final
and non-appealable determination of a court or other trier of fact of competent jurisdiction that such Indemnifiable Losses were
the result of (a) a breach of such Indemnitee’s fiduciary duty to the Company, (b) any action or omission made by the Indemnitee
in bad faith, (c) any criminal action on the part of such Indemnitee or (d) such Indemnitee’s willful misconduct.

 

The Company
shall reimburse, promptly following request therefor, all reasonable expenses incurred by an Indemnitee in connection with any
threatened, pending or completed action, suit, arbitration, investigation or other proceeding arising out of, or relating to, the
Indemnitees’ actions in connection with any transaction undertaken in connection with this Agreement.

 

10.9       Pubco
Transaction.

 

The Company
will utilize its reasonable commercial efforts to undertake either (i) a reverse merger or similar transaction between the Company
and a corporation whose shares of common stock are publicly traded in the United States or other mutually agreed jurisdiction (“Pubco”),
or (ii) any filing with an applicable regulatory body which will result in the Company becoming an entity traded on a public exchange
(the “Pubco Transaction”). The Pubco Transaction (unless mutually agreed upon by the Company and Laidlaw
& Company (UK) Ltd. (“Laidlaw”), shall (a) be on a U.S. stock exchange, (b) have no less than the
OTCQB, (c) be with an entity which must, among other criteria, (i) have filed all reports required to be filed by such entity under
the Exchange Act, (ii) have no material liabilities or contingent liabilities, (iii) be Depository Trust Company eligible, (iv)
have no mature or unmatured rescission rights, (v) have not been late in any SEC filing for the last one (1) year, and (vi) be
in good standing in its place of incorporation and on such other terms and conditions (including normal and customary due diligence)
reasonably satisfactory to Laidlaw and Company no later than one year (twelve (12) months) after the final closing of the no less
than $5,000,000 of gross proceeds from the sale of the Company’s Series A Preferred Stock.

 

    14

     

    

 

SECTION 11   COVENANTS OF THE HOLDERS

 

11.1       Confidentiality
of Records.

 

Each Holder
agrees that it will keep confidential and not disclose, divulge or use for any purpose other than to evaluate and monitor its investment
in the Company any confidential or proprietary information (“Confidential Information”) which such party
obtains from the Company pursuant to financial statements, reports and other information submitted by the Company to such party
pursuant to this Agreement or the Memorandum; provided, however, that the Investors may disclose Confidential Information (a) to
their respective general partners, limited partners, members, stockholders, equity holders, Affiliates and any of the directors,
officers and other representatives of any of the foregoing in accordance with their respective normal reporting practices, and
to their respective attorneys, accountants, consultants and other professionals under an obligation of confidentiality and (b)
to any prospective purchaser of any securities of the Company so long as such prospective purchaser is obligated not to disclose,
divulge or use such Confidential Information to the same extent as the disclosing Investor. Each Holder shall use the same level
of care with the Confidential Information that it uses with its own confidential information. “Confidential Information”
shall not include the following: (i) information that is now in, or hereafter enters, the public domain through no fault of the
Holder; (ii) information that previously was known by the Holder independently of the Company; (iii) information that is independently
developed by the Holder without reference to Confidential Information; (iv) information that is disclosed with the written approval
of the Company; or (v) information that is received from a third party without a duty of confidentiality. Notwithstanding the foregoing,
no Holder shall be prohibited from disclosing Confidential Information that is required to be disclosed pursuant to any legal process
or subpoena from any court, arbitrator, governmental body, official or authority or by applicable law; provided that the disclosing
Holder takes reasonable steps to minimize the extent of such disclosure and provides the Company with reasonably prompt notice
after becoming required to disclose such Confidential Information to afford the Company an opportunity to intervene and oppose
such disclosure. This provision shall survive any termination of this Agreement.

 

SECTION 12   MISCELLANEOUS

 

		12.1	Governing Law.

 

This Agreement
shall be governed by and construed under the laws of the State of New York, notwithstanding the conflicts of laws principles of
the State of New York or any other jurisdiction. No suit, action or proceeding with respect to this Agreement may be brought in
any court or before any similar authority other than in a court of competent jurisdiction in the State of New York and the parties
hereby submit to the exclusive jurisdiction of such courts for the purpose of such suit, proceeding or judgment. Each of the parties
hereto hereby irrevocably waives any right which it may have had to bring such an action in any other court, domestic or foreign,
or before any similar domestic or foreign authority and agrees not to claim or plead the same. Each of the parties hereto hereby
irrevocably and unconditionally waives trial by jury in any legal action or proceeding in relation to this Agreement and for any
counterclaim therein.

 

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		12.2	Survival.

 

The
representations, warranties, covenants, and agreements made herein shall survive any investigation made by any Holder and the closing
of the transactions contemplated hereby. All statements as to factual matters contained in any certificate or other instrument
delivered by or on behalf of the Company or its Subsidiaries or the Investors pursuant hereto in connection with the transactions
contemplated hereby shall be deemed to be representations and warranties by the Company or its Subsidiaries or the Investors, as
applicable, hereunder solely as of the date of such certificate or instrument.

 

		12.3	Successors and Assigns.

 

Except
as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors
and permitted assigns of the parties hereto and shall inure to the benefit of and be enforceable by each person who shall be a
Holder of Series A Preferred Stock from time to time; provided, however, that each such successor and permitted assign the transferee
has agreed in writing to be bound by the terms of this Agreement as if such successor and permitted assign were an original Holder
by executing the Counterpart.

 

		12.4	Entire Agreement.

 

This Agreement
and each of the Exhibits hereto, the Memorandum and each of the Exhibits and Schedules thereto, the other Transaction Documents
and each of the exhibits, schedules, and appendices thereto, constitute the full and entire understanding and agreement between
the parties hereto with regard to the subject matter hereof and thereof and no party hereto shall be liable or bound to any other
party hereto in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein
and therein.

 

		12.5	Severability.

 

If any
provision of the Agreement is held to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

 

		12.6	Amendment and Waiver.

 

Any
provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance
and either retroactively or prospectively), only with the written consent of the Company and the Holders of a majority of each
of the then outstanding Series A Preferred Shares and any amendment or waiver so made shall be binding upon each Holder and the
Company. In addition, any provision of this Agreement and the observance thereof may be waived (either generally or in a particular
instance and either retroactively or prospectively) by any party so waiving in writing, such waiver to be enforceable solely against
such party.

 

		12.7	Delays or Omissions.

 

No delay
or omission to exercise any right, power, or remedy accruing to any party hereto, upon any breach, default or noncompliance of
any party under this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any such
breach, default or noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring.
Any waiver, permit, consent, or approval of any kind or character on part of any party hereto of any breach, default or noncompliance
under the Agreement or any waiver on such party’s part of any provisions or conditions of this Agreement must be in writing
and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, by
law, or otherwise afforded to the parties hereto, shall be cumulative and not alternative.

 

    16

     

    

 

		12.8	Notices.

 

All
notices, requests, demands and other communications given or made in accordance with the provisions of this Agreement shall be
addressed (i) if to a Holder, at such Holder’s address, fax number or email address furnished on the signature pages hereof
or such Holder’s Counterpart hereto or as otherwise furnished to the Company by the Holder in writing, or (ii) if to the
Company, to the attention of the President at such address, fax number or email address furnished on the signature page below or
as otherwise furnished by the Company in writing, and shall be made or sent by a personal delivery or overnight courier, by registered,
certified or first class mail, postage prepaid, or by facsimile or electronic mail with confirmation of receipt, and shall be deemed
to be given on the date of delivery when made by personal delivery or overnight courier, 48 hours after being deposited in the
U.S. mail, or upon confirmation of receipt when sent by facsimile or electronic mail. Any party may, by written notice to the other,
alter its address, number or respondent, and such notice shall be considered to have been given three (3) days after the overnight
delivery, airmailing, faxing or sending via e-mail thereof.

 

		12.9	Titles and Subtitles.

 

The
titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in
construing this Agreement.

 

		12.10	Counterparts; Execution by Facsimile Signature.

 

This Agreement
may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one
instrument. This Agreement may be executed by facsimile signature(s) which shall be binding on the party delivering same, to be
followed by delivery of originally executed signature pages.

 

[SIGNATURES ON FOLLOWING PAGES]

 

    17

     

    

 

IN WITNESS WHEREOF, the parties
hereto have executed this Investor Rights Agreement as of the date set forth in the first paragraph hereof.

 

	COMPANY:	 
	HOTH PHARMACEUTICALS INC.
	 	 	 
	By:	 	 
	 	 
	Name: Robb Knie	 
	Title: President and CEO	 
	 	 	 
	Address: 1 Rockefeller Plaza, Suite 1039, New York, NY 10020
	 
	Tel: (     )
	Fax: (     )
	email: robb@hoththerapeutics.com

 

[Signature
Page to Investor Rights Agreement]

 

    18

     

    

 

IN WITNESS
WHEREOF, the parties hereto have executed this Investor Rights Agreement as of the date set forth in the first paragraph hereof.

 

	By:	 	 
	 	 	 
	Name:	 
	Title:	 
	 	 
	Address:	 
	 	 
	Tel:	 
	Fax:	 
	Email:	 

 

[Signature Page to Investor
Rights Agreement]

 

    19

     

    

 

Exhibit A

 

Investors

 

    -20-

     

    

 

Exhibit B

 

Counterpart
Signature Page

 

to

 

Investor Rights Agreement
dated August , 2017 for

 

Hoth Pharmaceuticals
Inc.

 

The
undersigned hereby acknowledges receipt of a copy of that certain Investor Rights Agreement, dated August , 2017, as amended to
date, among Hoth Pharmaceuticals Inc., a Nevada corporation and the Investors referred to therein and the undersigned (as hereafter
amended from time to time, the “Investor Rights Agreement”), and hereby certifies to the other parties
thereto that it has read and fully understands the Investor Rights Agreement, that it has had an opportunity to review and discuss
the terms and conditions of the Investor Rights Agreement with its legal counsel and other advisors, and that it agrees to be bound
by the terms and conditions of the Investor Agreement as if it were an original signatory thereto.

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed on this ________ day of __________, 20__.

 

    -21-

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