Document:

Exhibit
10.1

 

FORM
OF SECURITIES PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of October 13, 2017, between CASI Pharmaceuticals,
Inc., a Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each,
including its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser,
and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration
the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE
I.

DEFINITIONS

 

1.1           Definitions.  In
addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings
set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.5.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.  

 

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

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later
than the second Trading Day following the date hereof.

 

     

     

    

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.01 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” 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, right, option, warrant 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.

 

“Company
Counsel” means Arnold & Porter Kaye Scholer LLP, with offices located at 601 Massachusetts Avenue, N.W., Washington,
D.C. 20001.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(s).

 

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

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“FDA”
shall have the meaning ascribed to such term in Section 3.1(gg).

 

“FDCA”
shall have the meaning ascribed to such term in Section 3.1(gg).

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

“Per
Share Purchase Price” equals $3.00, subject to adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

     

     

    

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Pharmaceutical
Product” shall have the meaning ascribed to such term in Section 3.1(gg).

 

“Placement
Agent” means H.C. Wainwright & Co., LLC.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the base prospectus filed for the Registration Statement.

 

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with
the Commission and delivered by the Company to each Purchaser at the Closing.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.8.

 

“Registration
Statement” means the effective registration statement with Commission file No. 333-207304 which registers the sale of
the Shares, the Warrants and the Warrant Shares to the Purchaser.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

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

 

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

 

“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

 

     

     

    

 

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

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares and Warrants purchased hereunder as
specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, also include any direct or indirect
subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market
or the New York Stock Exchange (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Warrants, all exhibits and schedules thereto and hereto and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means American Stock Transfer & Trust Company, the current transfer agent of the Company, with a mailing
address of 6201 15th Avenue, Brooklyn, NY 11219 and a facsimile number of 718-765-8712, and any successor transfer
agent of the Company.

 

“Warrants”
means, collectively, the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance with Section
2.2(a) hereof, which Warrants shall be exercisable on April 17, 2018 and have a term of exercise equal to two and half years from
the issue date, in the form of Exhibit A attached hereto.

 

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

 

     

     

    

 

ARTICLE
II.

PURCHASE AND SALE

 

2.1           Closing.  On
the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and
delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly, agree
to purchase, up to an aggregate of $23,855,595 of Shares and Warrants.  Each Purchaser’s Subscription Amount as
set forth on the signature page hereto executed by such Purchaser shall be made available for “Delivery Versus Payment”
settlement with the Company or its designees. The Company shall deliver to each Purchaser its respective Shares and a Warrant
as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section
2.2 deliverable at the Closing.  Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3,
the Closing shall occur at the offices of the Placement Agent or such other location as the parties shall mutually agree.  Unless
otherwise directed by the Placement Agent, settlement of the Shares shall occur via “Delivery Versus Payment” (“DVP”)
(i.e., on the Closing Date, the Company shall issue the Shares registered in the Purchasers’ names and addresses and released
by the Transfer Agent directly to the account(s) at the Placement Agent identified by each Purchaser; upon receipt of such Shares,
the Placement Agent shall promptly electronically deliver such Shares to the applicable Purchaser, and payment therefor shall
be made by the Placement Agent (or its clearing firm) by wire transfer to the Company).

 

2.2           Deliveries.

 

(a)          On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)          this
Agreement duly executed by the Company;

 

(ii)         a
legal opinion of Company Counsel, in a form reasonably acceptable to the Placement Agent and Purchasers;

 

(iii)        the
Company shall have provided each Purchaser with the Company’s wire instructions, on Company letterhead and executed by the
Chief Executive Officer or Chief Financial Officer;

 

(iv)        subject
to the last sentence of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent
to deliver on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”)
Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of
such Purchaser;

 

(v)         a
Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 20% of such Purchaser’s
Shares, with an exercise price equal to $3.75, subject to adjustment therein; and

 

(vi)        the
Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b)          On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)          this
Agreement duly executed by such Purchaser; and

 

     

     

    

 

(ii)         such
Purchaser’s Subscription Amount, which shall be made available for “Delivery Versus Payment” settlement with
the Company or its designees.

 

2.3           Closing
Conditions.

 

(a)          The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)          the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) on the Closing Date of the representations and warranties of the Purchasers contained herein (unless
as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)         all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and

 

(iii)        the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b)          The
respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being
met:

 

(i)          the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)         all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed;

 

(iii)        the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)        there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)         from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, a banking moratorium shall not have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the
Closing.

 

     

     

    

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company.  Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall
be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained
in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and warranties
to each Purchaser:

 

(a)          Subsidiaries.  All
of the direct and indirect subsidiaries of the Company are as set forth on Schedule 3.1(a). 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.  If the Company has no subsidiaries, all other references to the Subsidiaries
or any of them in the Transaction Documents shall be disregarded.

 

(b)          Organization
and Qualification.  The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted.  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 the Subsidiaries is
duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, could not have or 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 the 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.

 

     

     

    

 

(c)          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.

 

(d)          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, or (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon
any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, anti-dilution
or similar adjustments, 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.

 

(e)          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, other
than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus
Supplement, (iii) application(s) to each applicable Trading Market for the listing of the Shares and Warrant Shares for trading
thereon in the time and manner required thereby, and such filings as are required to be made under applicable state securities
laws (collectively, the “Required Approvals”).

 

     

     

    

 

(f)          Issuance
of the Securities; Registration.  The Securities 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.  The Warrant Shares, when issued in accordance with the terms of the Warrants, will be
validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.  The Company has reserved
from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to the Warrants. The Company
has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective
on October 15, 2015 (the “Effective Date”), including the Prospectus, and such amendments and supplements
thereto as may have been required to the date of this Agreement.  The Company was at the time of the filing of the Registration
Statement eligible to use Form S-3. The Company is eligible to use Form S-3 under the Securities Act and it meets the transaction
requirements as set forth in General Instruction I.B.1 of Form S-3. The Registration Statement is effective under the Securities
Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the
use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge
of the Company, are threatened by the Commission.  The Company, if required by the rules and regulations of the Commission,
shall file the Prospectus Supplement with the Commission pursuant to Rule 424(b).  At the time the Registration Statement
and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the Registration Statement
and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities Act and did
not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading; and the Prospectus and any amendments or supplements thereto, at time
the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, conformed and will conform in all material
respects to the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

 

(g)          Capitalization.  The
capitalization of the Company is as set forth on Schedule 3.1(g).  The Company has not issued any capital stock since
its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options
under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s
employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the
date of the most recently filed periodic report under the Exchange Act.  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 disclosed in the SEC Reports and as a result of the purchase and sale of the Securities, 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 the capital stock of any Subsidiary, 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 or
capital stock of any Subsidiary.  The issuance and sale of the Securities will not obligate the Company or any Subsidiary
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 outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions,
and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or “phantom
stock” plans or agreements or any similar plan or agreement. 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.  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.

 

     

     

    

 

(h)          SEC
Reports; Financial Statements.  The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
together with the Prospectus and the Prospectus Supplement, being collectively referred to herein as the “SEC Reports”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements
of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject
to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing.  Such financial statements have been prepared in accordance with United States generally accepted
accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be
otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain
all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

     

     

    

 

(i)          Material
Changes; Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited financial statements
included within the SEC Reports, except as disclosed in the SEC Reports, (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 reflected in the Company’s financial statements pursuant
to GAAP or 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.  The Company does not
have pending before the Commission any request for confidential treatment of information.  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,
prospects, 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 that has not been publicly disclosed at least 1 Trading
Day prior to the date that this representation is made.

 

(j)          Litigation.  There
is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened
against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the
Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse
Effect.  Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of
any Action 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.  The Commission
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or
any Subsidiary under the Exchange Act or the Securities Act.  

 

     

     

    

 

(k)          Labor
Relations.  No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the
employees of the Company, which could reasonably be expected to result in a Material Adverse Effect.  None of the Company’s
or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company
or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that their relationships with their employees are good.  To the knowledge of the
Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term
of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or
any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each
such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing
matters.  The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and
regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where
the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

(l)          Compliance.  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.

 

(m)          Environmental
Laws.  The Company and its Subsidiaries (i) are in compliance with
all federal, state, local and foreign laws relating to pollution or protection of human health or the environment (including ambient
air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases
or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous
Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand
letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered,
promulgated or approved thereunder (“Environmental Laws”); (ii) have received all permits licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance
with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii), the failure to
so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

 

     

     

    

 

(n)          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 as described in the SEC
Reports, 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.

 

(o)          Title
to Assets.  The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned
by them and good and marketable title in all personal property owned by them that is material to the business of the Company and
the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such
property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries,
and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance
with GAAP and, the payment of which is neither delinquent nor subject to penalties.  Any real property and facilities
held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which
the Company and the Subsidiaries are in compliance.

 

(p)          Intellectual
Property.  The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property
rights and similar rights necessary or required for use in connection with their respective businesses as described in the SEC
Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”).  None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise)
that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate
or be abandoned, within two (2) years from the date of this Agreement.  Neither the Company nor any Subsidiary has received,
since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not
have or reasonably be expected to not have a Material Adverse Effect.  To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights.  The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. The Company has no knowledge of any facts that would preclude it from having valid license
rights or clear title to the Intellectual Property Rights.  The Company has no knowledge that it lacks or will be unable
to obtain any rights or licenses to use all Intellectual Property Rights that are necessary to conduct its business.

 

     

     

    

 

(q)          Insurance.  The
Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount.  Neither
the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as
and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business
without a significant increase in cost.

 

(r)          Transactions
With Affiliates and Employees.  Except as disclosed in the SEC Reports, none of the officers or directors of the
Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary 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, providing for the borrowing of money from or lending of money to 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, stockholder, member 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.

 

(s)          Sarbanes-Oxley;
Internal Accounting Controls.  The Company and the Subsidiaries are in compliance with any and all applicable requirements
of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof and as of the Closing Date.  The Company and the
Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets
is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the Commission’s rules and forms.  The Company’s certifying
officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of
the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation
Date”).  The Company presented in its most recently filed periodic report under the Exchange Act the conclusions
of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of
the Evaluation Date.  Since the Evaluation Date, there have been no changes in the internal control over financial reporting
(as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably
likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

     

     

    

 

(t)          Certain
Fees.  Except as set forth in the Prospectus Supplement, no brokerage or finder’s fees or commissions are
or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.  The Purchasers
shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees
of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

(u)          Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended.  The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

(v)         Registration
Rights.  No Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities
Act of any securities of the Company or any Subsidiary.

 

(w)         Listing
and Maintenance Requirements.  The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration.  The Company has not, in the 12 months preceding the date hereof, received notice from
any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will
not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock
is currently eligible for electronic transfer through the Depository Trust Company or another established clearing corporation
and the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation)
in connection with such electronic transfer.

 

(x)          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.

 

     

     

    

 

(y)          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 which is not otherwise disclosed
in the Prospectus Supplement.   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, including the Disclosure Schedules to this Agreement, is 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 the
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 the 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.

 

(z)          No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
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 the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions
of any Trading Market on which any of the securities of the Company are listed or designated.

 

(aa)        Tax
Status.  Except for matters that would not, individually or in the aggregate, have or reasonably be expected to
result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal,state
and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which
it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply.  There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of
the Company or of any Subsidiary know of no basis for any such claim.

 

     

     

    

 

(bb)        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 FCPA.

 

(cc)        Accountants.  The
Company’s accounting firm is set forth on Schedule 3.1(cc) of the Disclosure Schedules.  To the knowledge
and belief of the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and
(ii) shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report for
the fiscal year ending December 31, 2017.        

 

(dd)       Acknowledgment Regarding Purchasers’ Purchase of Securities.  The Company acknowledges and agrees that
each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents
and the transactions contemplated thereby.  The Company further acknowledges that no Purchaser is acting as a financial
advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions
contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection
with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase
of the Securities.  The Company further represents to each Purchaser that the Company’s decision to enter into
this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated
hereby by the Company and its representatives.

 

(ee)        Acknowledgement
Regarding Purchaser’s Trading Activity.  Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(e) and 4.13 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers
has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short,
securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities
for any specified term; (ii) past or future open market or other transactions by any
Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after the
closing of this or future private placement transactions, may negatively impact the market price of the Company’s publicly-traded
securities; (iii) any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a
party, directly or indirectly, presently may have a “short” position in the Common Stock, and (iv) each Purchaser
shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction.  The Company further understands and acknowledges that (y) one or more Purchasers may engage in
hedging activities at various times during the period that the Securities are outstanding, including, without limitation, during
the periods that the value of the Warrant Shares deliverable with respect to Securities are being determined, and (z) such hedging
activities (if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time
that the hedging activities are being conducted.  The Company acknowledges that such aforementioned hedging activities
do not constitute a breach of any of the Transaction Documents.

 

     

     

    

 

(ff)         Regulation
M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for
soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another
to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s
placement agent in connection with the placement of the Securities.

 

(gg)       FDA.  As
to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) under the Federal
Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged,
labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical
Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed
by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration,
investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices,
good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the
failure to be in compliance would not have a Material Adverse Effect.  There is no pending, completed or, to the Company's
knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge,
complaint, or investigation) against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries
has received any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests
the premarket clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging
of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of,
requests the recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials
relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of
its Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to
enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges any
violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the
aggregate, would have a Material Adverse Effect.  The properties, business and operations of the Company have been and
are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the FDA.  The
Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of
any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to approving
or clearing for marketing any product being developed or proposed to be developed by the Company.

 

     

     

    

 

(hh)       Stock
Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance
with the terms of the Company’s stock option plan and (ii) with 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.

 

(ii)          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”).

 

(jj)          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.

 

(kk)        Bank
Holding Company Act.  Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding
Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve
System (the “Federal Reserve”).  Neither the Company nor any of its Subsidiaries or Affiliates owns
or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or
twenty-five percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal
Reserve.  Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management
or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(ll)          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 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.

 

     

     

    

 

3.2           Representations
and Warranties of the Purchasers.  Each Purchaser, for itself and for no other Purchaser, hereby represents and
warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in
which case they shall be accurate as of such date):

 

(a)          Organization;
Authority.  Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and
in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership,
limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction
Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized
by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser.  Each
Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in
accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against
it 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.

 

(b)          Understandings
or Arrangements.  Such Purchaser is acquiring the Securities as principal for its own account and has no direct
or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities
(this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration
Statement or otherwise in compliance with applicable federal and state securities laws).  Such Purchaser is acquiring
the Securities hereunder in the ordinary course of its business.

 

(c)          Purchaser
Status.  At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on
each date on which it exercises any Warrants, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in
Rule 144A(a) under the Securities Act.

 

(d)          Experience
of Such Purchaser.  Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment.  Such Purchaser is able to bear the
economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

     

     

    

 

(e)          Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions as it
has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the
offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company
and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to
evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.  Such
Purchaser acknowledges and agrees that neither the Placement Agent nor any Affiliate of the Placement Agent has provided such
Purchaser with any information or advice with respect to the Securities nor is such information or advice necessary or desired.  Neither
the Placement Agent nor any Affiliate has made or makes any representation as to the Company or the quality of the Securities
and the Placement Agent and any Affiliate may have acquired non-public information with respect to the Company which such Purchaser
agrees need not be provided to it.  In connection with the issuance of the Securities to such Purchaser, neither the
Placement Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser.

 

(f)           Certain
Transactions and Confidentiality.  Other than consummating the transactions contemplated hereunder, such Purchaser
has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time
that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company
setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof.
Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the
investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation
set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment
decision to purchase the Securities covered by this Agreement.  Other than to other Persons party to this Agreement
or to such Purchaser’s representatives, including, without limitation, its officers, directors, partners, legal and other
advisors, employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in
connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for the
avoidance of doubt, nothing contained herein shall constitute a representation or warranty against, or a prohibition of, any actions
with respect to the borrowing of, arrangement to borrow, identification of the availability of, and/or securing of, securities
of the Company in order for such Purchaser (or its broker or other financial representative) to effect Short Sales or similar
transactions in the future.

 

The
Company acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations
and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transactions contemplated hereby.

 

     

     

    

 

ARTICLE
IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Warrant
Shares.  If all or any portion of a Warrant is exercised at a time when there is an effective registration statement
to cover the issuance or resale of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares
issued pursuant to any such exercise shall be issued free of all legends.  If at any time following the date hereof
the Registration Statement (or any subsequent registration statement registering the sale or resale of the Warrant Shares) is
not effective or is not otherwise available for the sale or resale of the Warrant Shares, the Company shall immediately notify
the holders of the Warrants in writing that such registration statement is not then effective and thereafter shall promptly notify
such holders when the registration statement is effective again and available for the sale or resale of the Warrant Shares (it
being understood and agreed that the foregoing shall not limit the ability of the Company to issue, or any Purchaser to sell,
any of the Warrant Shares in compliance with applicable federal and state securities laws).  The Company shall use best
efforts to keep a registration statement (including the Registration Statement) registering the issuance or resale of the Warrant
Shares effective during the term of the Warrants.

 

4.2           Furnishing
of Information.

 

(a)          Until
the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants have expired, the Company covenants to timely
file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by
the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements
of the Exchange Act.  

 

4.3           Integration.  The
Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules
and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction
unless shareholder approval is obtained before the closing of such subsequent transaction.

 

     

     

    

 

4.4           Securities
Laws Disclosure; Publicity.  The Company shall (a) by 9 a.m. (New York City time) on the Trading Day immediately
following the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b)
file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time
required by the Exchange Act.  From and after the issuance of such press release, the Company represents to the Purchasers
that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or
any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions
contemplated by the Transaction Documents.  In addition, effective upon the issuance of such press release, the Company
acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral,
between the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on
the one hand, and any of the Purchasers or any of their Affiliates on the other hand, shall terminate. The Company and each Purchaser
shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither
the Company nor any Purchaser shall issue any such press release nor otherwise make any such public statement without the prior
consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with
respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure
is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public
statement or communication.  Notwithstanding the foregoing, the Company shall not publicly disclose the name of any
Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market,
without the prior written consent of such Purchaser, except (a) as required by federal securities law in connection with the filing
of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market
regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this
clause (b).

 

4.5           Shareholder
Rights Plan.  No claim will be made or enforced by the Company or, with the consent of the Company, any other Person,
that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter
adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue
of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

4.6           Non-Public
Information.  Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person
acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company
reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to
the receipt of such information and agreed with the Company to keep such information confidential.  The Company understands
and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.  To
the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of
its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis
of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding
the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K.  The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in
effecting transactions in securities of the Company.

 

     

     

    

 

4.7           Use
of Proceeds.  Except as set forth in the Prospectus Supplement, the Company shall use the net proceeds from the
sale of the Securities as set forth in the Prospectus Supplement and shall not use such proceeds: (a) for 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) for the redemption of any Common Stock or Common Stock Equivalents, (c) for the settlement of any outstanding
litigation or (d) in violation of FCPA or OFAC regulations.

 

4.8           Indemnification
of Purchasers.   Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser
and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls
such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses,
including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation
that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action
instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of
the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is solely based upon a material breach of such Purchaser Party’s representations, warranties
or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder
or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which is
finally judicially determined to constitute fraud, gross negligence, willful misconduct), or (c) in connection with any registration
statement of the Company providing for the resale by the Purchasers of the Warrant Shares issued and issuable upon exercise of
the Warrants, the Company will indemnify each Purchaser Party, to the fullest extent permitted by applicable law, from and against
any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and
expenses, as incurred, arising out of or relating to (i) any untrue or alleged untrue statement of a material fact contained in
such registration statement, any prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein (in the case of any prospectus or supplement thereto, in the light of the circumstances
under which they were made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions
are based solely upon information regarding such Purchaser furnished in writing to the Company by such Purchaser expressly for
use therein, or (ii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities
law, or any rule or regulation thereunder in connection therewith. If any action shall be brought against any Purchaser Party
in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company
in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable
to the Purchaser Party.  Any Purchaser Party shall have the right to employ separate counsel in any such action and
participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party
except to the extent that (x) the employment thereof has been specifically authorized by the Company in writing, (y) the Company
has failed after a reasonable period of time to assume such defense and to employ counsel or (z) in such action there is, in the
reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the position
of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one
such separate counsel.  The Company will not be liable to any Purchaser Party under this Agreement (1) for any settlement
by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed;
or (2) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s
breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in
the other Transaction Documents. The indemnification required by this Section 4.8 shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements
contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others
and any liabilities the Company may be subject to pursuant to law.

 

     

     

    

 

4.9           Reservation
of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company
to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

4.10         Listing
of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on
the Trading Market on which it is currently listed, and concurrently with the Closing, the Company shall apply to list or quote
all of the Shares and Warrant Shares on such Trading Market and promptly secure the listing of all of the Shares and Warrant Shares
on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading
Market, it will then include in such application all of the Shares and Warrant Shares, and will take such other action as is necessary
to cause all of the Shares and Warrant Shares to be listed or quoted on such other Trading Market as promptly as possible.  The
Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market
and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of
the Trading Market.  The Company agrees to maintain the eligibility of the Common Stock for electronic transfer through
the Depository Trust Company or another established clearing corporation, including, without limitation, by timely payment of
fees to the Depository Trust Company or such other established clearing corporation in connection with such electronic transfer.

 

4.11         Reserved.

 

4.12         Reserved.

 

     

     

    

 

4.13         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 the Transaction Documents unless the
same consideration is also offered to all of the parties to such Transaction Documents.  For clarification purposes,
this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser,
and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting
in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

4.14         Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
as described in Section 4.4.  Each Purchaser, severally and not jointly with the other Purchasers, covenants that until
such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press
release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms of this transaction
and the information included in the Disclosure Schedules.  Notwithstanding the foregoing, and notwithstanding anything
contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation,
warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time
that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described
in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company
in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are
first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no Purchaser shall have any
duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after the issuance
of the initial press release as described in Section 4.4.  Notwithstanding the foregoing, in the case of a Purchaser
that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s
assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing
other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of
assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.

 

4.15         Exercise
Procedures.  The form of Notice of Exercise included in the Warrants set forth the totality of the procedures required
of the Purchasers in order to exercise the Warrants.  No additional legal opinion, other information or instructions
shall be required of the Purchasers to exercise their Warrants.  Without limiting the preceding sentences, no ink-original
Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice
of Exercise form be required in order to exercise the Warrants.  The Company shall honor exercises of the Warrants and
shall deliver Warrant Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

     

     

    

 

ARTICLE
V.

MISCELLANEOUS

 

5.1           Termination.  This
Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever
on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not
been consummated on or before October 24, 2017; provided, however, that no such termination will affect the right
of any party to sue for any breach by any other party (or parties).

 

5.2           Fees
and Expenses.  Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay
the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.  The Company
shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction
letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied
in connection with the delivery of any Securities to the Purchasers.

 

5.3           Entire
Agreement.  The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and the
Prospectus Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and
supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge
have been merged into such documents, exhibits and schedules.

 

5.4           Notices.  Any
and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto
at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth
on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any
Trading Day, (c) the second (2nd)Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for
such notices and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided
pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

 

     

     

    

 

5.5           Amendments;
Waivers.  No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument
signed, in the case of an amendment, by the Company and Purchasers which purchased at least 50.1% in interest of the Shares based
on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived
provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser
(or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required.  No
waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.
Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser
relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such adversely
affected Purchaser. Any amendment effected in accordance with this Section 5.5 shall be binding upon each Purchaser and holder
of Securities and the Company.

 

5.6           Headings.  The
headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.7           Successors
and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the
prior written consent of each Purchaser (other than by merger).  Any Purchaser may assign any or all of its rights under
this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees
in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply
to the “Purchasers.”

 

5.8           No
Third-Party Beneficiaries.  The Placement Agent shall be the third party beneficiary of the representations and
warranties of the Company in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2.  This
Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8 and
this Section 5.8.

 

5.9           Governing
Law.  All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflicts of law thereof.  Each party agrees that all legal Proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought
against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents)
shall be commenced exclusively in the state and federal courts sitting in the City of New York.  Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that
such Action or Proceeding is improper or is an inconvenient venue for such Proceeding.  Each party hereby irrevocably
waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by law.   If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction
Documents, then, in addition to the obligations of the Company under Section 4.8, the prevailing party in such Action or Proceeding
shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred
with the investigation, preparation and prosecution of such Action or Proceeding.

 

     

     

    

 

5.10         Survival.  The
representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

5.11         Execution.  This
Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood
that the parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

5.12         Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

5.13         Rescission
and Withdrawal Right.  Notwithstanding anything to the contrary contained in (and without limiting any similar provisions
of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights; provided, however, that in the case of a rescission
of an exercise of a Warrant, the applicable Purchaser shall be required to return any shares of Common Stock subject to any such
rescinded exercise notice concurrently with the return to such Purchaser of the aggregate exercise price paid to the Company for
such shares and the restoration of such Purchaser’s right to acquire such shares pursuant to such Purchaser’s Warrant
(including, issuance of a replacement warrant certificate evidencing such restored right).

 

     

     

    

 

5.14         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 (in the case of mutilation),
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.  The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities.

 

5.15         Remedies.  In
addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the
Purchasers and the Company will be entitled to specific performance under the Transaction Documents.  The parties agree
that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained
in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

5.16         Payment
Set Aside.  To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of
action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17         Independent
Nature of Purchasers’ Obligations and Rights.  The obligations of each Purchaser under any Transaction Document
are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the
performance or non-performance of the obligations of any other Purchaser under any Transaction Document.  Nothing contained
herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed
to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated
by the Transaction Documents.  Each Purchaser shall be entitled to independently protect and enforce its rights including,
without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary
for any other Purchaser to be joined as an additional party in any Proceeding for such purpose.  Each Purchaser has
been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents.  For
reasons of administrative convenience only, each Purchaser and its respective counsel have chosen to communicate with the Company
through the legal counsel of the Placement Agent. The legal counsel of the Placement Agent does not represent any of the Purchasers
and only represents the Placement Agent.  The Company has elected to provide all Purchasers with the same terms and
Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers.  It
is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between
the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the
Purchasers.

 

     

     

    

 

5.18         Liquidated
Damages.  The Company’s obligations to pay any partial liquidated damages or other amounts owing under the
Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages
and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated
damages or other amounts are due and payable shall have been canceled.

 

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

 

5.20         Construction.  The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

5.21         WAIVER
OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER
PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

(Signature
Pages Follow)

 

     

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	CASI
    PHARMACEUTICALS, INC.	 	Address for Notice:
	 	 	 	 
	By:	 	 	Fax:
	 	Name:	 	E-mail:
	 	Title:	 	 
	 	 	 	 
	With a copy to (which shall not constitute notice):	 	 
	 	 	 
	[ADD]	 	 

 

[REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE
FOR PURCHASER FOLLOWS]

 

     

     

    

 

[PURCHASER SIGNATURE
PAGES TO CASI SECURITIES PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

Name of Purchaser:
______________________________________________________

 

Signature
of Authorized Signatory of Purchaser: _________________________________

 

Name of Authorized
Signatory: _______________________________________________

 

Title of Authorized
Signatory: ________________________________________________

 

Email Address
of Authorized Signatory:_________________________________________

 

Facsimile Number of Authorized Signatory:
__________________________________________

 

Address for Notice to Purchaser:

 

Address for Delivery of Warrants
to Purchaser (if not same as address for notice):

 

DWAC for Shares:

 

Subscription Amount: $_________________

 

Shares: _________________

 

Warrant Shares: __________________

 

EIN Number: ____________________

 

 ̈
Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i)
the obligations of the above-signed to purchase the securities set forth in this Agreement to be purchased from the Company by
the above-signed, and the obligations of the Company to sell such securities to the above-signed, shall be unconditional and all
conditions to Closing shall be disregarded, (ii) the Closing shall occur by the second (2nd) Trading Day following the date of
this Agreement and (iii) any condition to Closing contemplated by this Agreement (but prior to being disregarded by clause (i)
above) that required delivery by the Company or the above-signed of any agreement, instrument, certificate or the like or purchase
price (as applicable) shall no longer be a condition and shall instead be an unconditional obligation of the Company or the above-signed
(as applicable) to deliver such agreement, instrument, certificate or the like or purchase price (as applicable) to such other
party on the Closing Date.

 

[SIGNATURE PAGES
CONTINUE]

 

     

     

    

 

EXHIBIT A

TO THE SECURITIES
PURCHASE AGREEMENT

FORM OF WARRANTExhibit 10.1

 

SHARE EXCHANGE AGREEMENT

 

by and between

 

PARETEUM CORPORATION

 

and

 

ARTILIUM, PLC

 

DATED AS OF OCTOBER 16, 2017

 

     

     

    

 

SHARE EXCHANGE AGREEMENT

 

This Share Exchange Agreement (this “Agreement”)
is made and entered into as of the 16th day of October, 2017 (“Agreement Date”), by and between Pareteum
Corporation., a Delaware corporation (“TEUM”) and Artilium, PLC, a public limited company incorporated under
the laws of England and Wales with registered number 03904535 (“ARTA”). TEUM and ARTA are referred to
herein individually as a “Party” and jointly as the “Parties.”

 

PREAMBLE

 

WHEREAS, pursuant
to the terms and subject to the conditions of this Agreement, TEUM desires to issue and sell to ARTA, and ARTA desires to acquire
from TEUM 3,200,332 shares of common stock of $0.0001 each in the capital of TEUM (the “TEUM Shares”), notionally
valued at USD $1.26 per share, in exchange for 27,695,177 newly issued ordinary shares of £0.05 each in the capital of ARTA
(the “ARTA Shares”) notionally valued at GBP £0.11 each. The TEUM Shares and the ARTA Shares are at times
collectively referred to herein as the “Exchange Securities.”

 

WHEREAS, the
obligation of the Parties to effect the Exchange is subject to the conditions set forth in Article V hereof.

 

WHEREAS, the
Parties concurrently with the execution of this Agreement will execute a Strategic Partnership Agreement for the mutual pursuit
of joint commercial opportunities.

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants, representations and warranties contained herein, the Parties hereto,
intending to be legally bound, hereby agree as follows:

 

CERTAIN DEFINITIONS

 

In addition to the
terms defined elsewhere in this Agreement the following terms have the meanings set forth below:

 

“Affiliate” means any
Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Applicable Law” means
any domestic or foreign law, statute, regulation, rule, policy, guideline or ordinance applicable to the businesses of the Parties,
the Exchange (as defined in Section 1.1 of this Agreement) and/or the Parties.

 

“ARTA Ordinary Shares”
means the ordinary shares of £0.05 each in the capital of ARTA.

 

“Board of Directors”
means the board of directors of TEUM or ARTA, as appropriate.

 

“Business Day” means
any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking
institutions in the State of New York and/or in the City of London are authorized or required by law or other governmental action
to close.

 

“Closing” means the
closing of the exchange of the TEUM Shares and the ARTA Shares pursuant to Section 1.2.

 

“Closing Date” means
the Business Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto,
and all conditions precedent to (i) ARTA’s obligations to issue the ARTA Shares as payment and (ii) TEUM’s obligations
to deliver the TEUM Shares, in each case, have been satisfied or waived, but in no event later than the third Business Day following
the date hereof.

     

     

    

 

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

 

“Consents” means consents,
authorization, approvals, actions, waivers and similar writings.

 

“Contract”
means any contract, mortgage, indenture, lease, sublease, note, bond, deed of trust, license, sublicense, purchase order, sales
order, undertaking, understanding, plan, commitment, arrangement, instrument, or other agreement, oral or written, formal or informal.

 

“Document” means any
Contract, financial statement, registration, certificate (including officer’s certificates), application, other writing or
other document.

 

“GAAP” means generally
accepted accounting principles in the United States of America as promulgated by the American Institute of Certified Public Accountants
and the Financial Accounting Standards Board or any successor institutes concerning the treatment of any accounting matter.

 

“IFRS” means the standards
and interpretations adopted by the International Accounting Standards Board (“IASB”), including (i) the International
Financial Reporting Standards issued by the IASB, (ii) the International Accounting Standards originally issued by the International
Accounting Standards Committee, in the form adopted by the IASB (iii) the final interpretations issued by the International Financial
Reporting Interpretations Committee and (iv) the final interpretations issued by the Standing Interpretations Committee, consistently
applied, as in effect at the date of such financial statements or information to which it refers.

 

“Governmental Authority”
means any United Kingdom, United States and/or foreign federal, state, local or other governmental authority of any kind or nature,
including any department, subdivision, commission, board, bureau, regulatory agency, agency or instrumentality thereof, any court
and any administrative agency, and any comparable body performing any governmental functions.

 

“Indemnifiable Claim”
means any claim or other Proceeding with respect to which an Indemnitee may be entitled to indemnification or damages under this
Agreement.

 

“Indemnitee” means the
Party or other Person seeking indemnification or damages pursuant to this Agreement.

 

“Indemnitor” means the
Party that is required or requested to provide indemnification or damages pursuant to this Agreement.

 

“Law” means, as to any
Person, the certificate of incorporation and by-laws, and any statute, rule, regulation, ordinance, code, guideline, law, judicial
decision, determination, order (including any injunction, judgment, writ, award or decree) or Consent of a court, other Governmental
Authority or arbitrator, in each case applicable to or binding upon such Person, including the conduct of its business, or any
of its assets or revenues or to which such Person or any of its assets or revenues are subject.

 

“Liabilities” means
any liabilities, commitments or other obligations of any kind or nature whatsoever, accrued, fixed, contingent or otherwise, liquidated
or unliquidated, direct or indirect, choate or inchoate, determined, determinable or non-determinable, due or to become due.

 

“Losses”
means any and all Liabilities, losses, claims (including allegations), demands, other Proceedings, damages, deficiencies, assessments,
judgments, fines, penalties, reasonable costs (including remediation, renewal or response costs, and costs of investigation), and
reasonable expenses (including reasonable legal fees and expenses, including reasonable legal fees and expenses incurred in the
enforcement of the obligations under Section 6.1 or Section 6.2).

 

    	 	- 2 -	 

     

    

 

“Material Adverse Effect”
means a material adverse effect upon the businesses, operations, results of operations, assets, condition (financial or otherwise)
of TEUM or ARTA (when taken as a combined whole).

 

“Person” means any individual,
corporation, partnership, limited liability company, trust, association, Governmental Authority or any other entity.

 

“Proceedings” means
any claims, controversies, demands, actions, lawsuits, investigations, proceedings or other disputes, formal or informal, including
any by, involving or before any arbitrator or any Governmental Authority.

 

“Securities Act” means
the Securities Act 1933, as amended or supplemented from time to time, in the United States.

 

“Subsidiaries” means
the subsidiaries of TEUM listed in its SEC Reports (as defined below) or ARTA as the case may require.

 

“Taxes” means any and
all taxes or assessments of any kind or nature whatsoever, whether imposed in the United Kingdom, the United States or elsewhere
in the world, including any and all income, franchise, gross receipts, sales, alternative, add-on, minimum, employment, real property,
personal property, business, capital stock, use and occupancy, ad valorem, transfer, license, excise, stamp, other transfer,
estimated, withholding, service, payroll and recording taxes and any related penalties, charges, interest and other additions thereto.

 

“TEUM Common Stock”
means, at any applicable point in time, the issued and outstanding shares of common stock of $0.0001 TEUM.

 

“Trading Market” means
the principal trading market on which the shares of TEUM or ARTA, as the case may be, are traded.

 

“Transaction Documents”
means this Agreement, any documents appended hereto as an Exhibit and all agreements, documents and instruments executed and delivered
pursuant thereto.

 

ARTICLE I

THE EXCHANGE

 

1.1           The
Exchange. On the Closing Date, subject to the terms and conditions set forth in this Agreement, substantially concurrent with
the execution and delivery of this Agreement by the parties hereto, TEUM hereby agree to issue and deliver to ARTA, with full title
guarantee, and ARTA shall acquire and accept from TEUM, 3,200,332 TEUM Shares and in exchange, ARTA shall issue and deliver 27,695,177
ARTA Shares to TEUM (the “Exchange”). The Parties shall deliver the other items set forth in Sections 1.3 and
1.4, deliverable at the Closing.

 

1.2           Closing
and Effective Time. Upon satisfaction of the covenants and conditions set forth in Articles IV and V, the Closing of the issuance
by TEUM of the TEUM Shares and the issuance by ARTA of the ARTA Shares shall be deemed to take place at the offices of Sichenzia
Ross Ference Kesner LLP not later than three Business Days after all of the conditions to closing specified in this Agreement (other
than those conditions requiring the execution or delivery of a Document or the taking of some action at the Closing) have been
fulfilled or waived by the Party entitled to waive that condition; provided, however, that (a) the Parties shall use their best
efforts to effect the Closing by 16:00 Eastern Standard Time on Monday October 16, 2017, and (b) the Closing may take place by
facsimile or other means as may be mutually agreed upon in advance by the Parties.

 

    	 	- 3 -	 

     

    

 

1.3           Deliveries
at Closing by TEUM. At the Closing, subject to the terms and conditions of this Agreement, TEUM shall execute and/or deliver
(as applicable), or cause to be executed and/or delivered, to ARTA:

 

(a)          this
Agreement duly executed by TEUM;

 

(b)
       a letter of instruction to TEUM’s transfer agent instructing such transfer
agent to issue certificates evidencing the TEUM Shares in the name of ARTA; and

 

(c)          such
other Documents as may be reasonably requested by ARTA and approved in good faith by TEUM’s Board of Directors and TEUM’s
counsel, that are necessary to effect the Closing.

 

1.4           Deliveries
at Closing by ARTA. At the Closing, subject to the terms and conditions of this Agreement, ARTA shall execute and deliver or
cause to be executed and delivered to TEUM:

 

(a)          this
Agreement duly executed by ARTA;

 

(b)
       a letter of instruction to ARTA’s transfer agent instructing such transfer
agent to issue certificates evidencing the ARTA Shares in the name of TEUM; and

 

(b)          
such other Documents as may be reasonably requested by TEUM and approved in good faith by ARTA’s
Board of Directors and ARTA’s counsel, that are necessary to effect the Closing.

 

1.5           Restrictions
on Resale. None of the TEUM Shares will be registered under the Securities Act, or the securities laws of any state, and the
TEUM Shares cannot be transferred, hypothecated, sold or otherwise disposed of until; (i) a registration statement with respect
to such securities is declared effective under the Securities Act, or (ii) an opinion of counsel
for the a Party is provided, reasonably satisfactory to counsel for the other Party, that an exemption from the registration requirements
of the Securities Act is available. The TEUM Certificates will accordingly contain a customary Securities Act 1933, section 144,
legend until the same is removed in accordance with that Act. To the extent that similar rules or restrictions apply to ARTA Shares,
TEUM agrees to comply with those. Further, both Parties hereby agree to provide reasonable assistance and cooperation to ensure
compliance with their respective jurisdictions’ securities laws in place from time to time as well as ensuring admission
to trading of the TEUM Shares and/or ARTA Shares on a relevant stock exchange and/or otherwise disposing of the TEUM Shares or
ARTA Shares after the agreed lock-up period. 

 

1.6        CRESR
Holding/Listing of ARTA Shares 

 

(a)          ARTA
confirms that it has authorised its nominated advisor to make application on its behalf in accordance with Rule 29 of part 1 of
the AIM Rules for Companies in connection with the admission to trading on AIM of the ARTA Shares (the “Application”)
and undertakes that it will pay all such fees as may be necessary to obtain admission of the ARTA Shares to trading on AIM becoming
effective in accordance with Rule 6 of Part 1 of the AIM Rules for Companies by no later than 8.00 am on December 31, 2017 or such
later date as is agreed in writing between the parties.

 

(c)          ARTA
undertakes to TEUM that it shall promptly, following admission of the ARTA Shares to trading on AIM becoming effective procure
the registration of TEUM as a member of ARTA and ARTA shall, subject to TEUM or its nominated agent having provided ARTA’s
registrars with the relevant CREST participant ID and CREST member account ID, procure that the registrars credit such shares to
the relevant CREST accounts not later than December 31, 2017.

 

    	 	- 4 -	 

     

    

 

ARTICLE II

REPRESENTATIONS
AND WARRANTIES OF TEUM

 

Except
as set forth in the reports, schedules, forms, statements and other documents required to be filed by TEUM under the Securities
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter
period as the Company was required by law or regulation to file such material) (the foregoing materials and any amendments filed
through the date hereof, including the exhibits thereto and documents incorporated by reference therein, being collectively referred
to herein as the “SEC Reports”), disclosure in any one of which shall apply to any and all representations and
warranties made by TEUM in this Agreement, TEUM hereby represents and warrants to the ARTA, as of the date of this Agreement and
as of the Closing Date, as follows:

 

2.1           Organization,
Standing and Power. TEUM is a company duly incorporated, validly existing and in good
standing under the laws of the State of Delaware and has corporate power and authority to conduct its business as presently conducted
by it and to enter into and perform this Agreement and to carry out the transactions contemplated by this Agreement. The
TEUM Common Stock is currently trading on NYSE American (“NYSE American”) under the symbol “TEUM”.
TEUM is duly qualified to do business as a foreign corporation doing business in each state in which it owns or leases real property
and where the failure to be so qualified and in good standing would have a Material Adverse Effect on TEUM or its business.
Other than the Subsidiaries, TEUM does not have an ownership interest in any corporation, partnership (general or limited), limited
liability company or other entity, whether foreign or domestic (collectively such ownership interests including capital stock).

 

2.2           Capitalization.

 

(a)          On
or about the date of this Agreement, there are 550,000,000 shares of capital stock of TEUM authorized, consisting of (i) 500,000,000
shares of TEUM Common Stock and (ii) 50,000,000 shares of Preferred Stock of TEUM, of which there are (i) approximately 16,082,068
TEUM Common Stock issued and outstanding with a par value of $0.0001, and (ii) there are no shares of Preferred Stock issued and
outstanding.

 

 

2.3           Authority
for Agreement. The execution, delivery, and performance of this Agreement by TEUM has been duly authorized by all necessary
corporate and shareholder action, and this Agreement, upon its execution by the Parties, will constitute the valid and binding
obligation of TEUM enforceable against it in accordance with and subject to its terms, except as enforceability may be affected
by bankruptcy, insolvency or other laws of general application affecting the enforcement of creditors' rights. The execution, delivery
and performance of this Agreement and compliance with its provisions by TEUM will not violate any provision of Applicable Law and
will not conflict with or result in any breach of any of the terms, conditions, or provisions of, or constitute a default under
(whether with or without notice or lapse of time or both), TEUM 's Certificate of Incorporation or Bylaws, in each case as amended,
or, in any material respect, any indenture, lease, loan agreement or other agreement or instrument to which TEUM is a party or
by which it or any of its properties are bound, or any decree, judgment, order, statute, injunction, charge, rule or regulation
or other restriction of any governmental agency applicable to TEUM except to the extent that any breach or violation of any of
the foregoing would not constitute or result in a Material Adverse Effect on TEUM. Except as set forth the SEC Reports, no consent,
filing with or notification to, or approval or authorization of any governmental, regulatory or other authority is required on
the part of TEUM in connection with the execution, delivery and performance of this Agreement.

 

2.4           Issuance
of the TEUM Shares. The shares of TEUM Common Stock issuable to ARTA will, when issued pursuant to this Agreement,
be duly and validly authorized and issued, fully paid and non-assessable. The shares of TEUM Common Stock issuable to ARTA will
rank pari passu with the existing TEUM Common Shares currently in issue. TEUM undertakes to assist ARTA with facilitating
the electronic trading of the TEUM Shares after the lockup period.

 

    	 	- 5 -	 

     

    

 

2.5           Financial
Statements.

 

(a)          The
financial statements of TEUM included in the SEC Reports comply in all material respects with applicable accounting requirements
and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. The financial statements (the
“TEUM Financial Statements”) of TEUM included in its Form 10-K for the year ended December 31, 2016 and Form
10-Q for the quarter ending June 30, 2017 have been prepared in accordance with United States generally accepted accounting principles
applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in
such financial statements or the footnotes thereto except that unaudited financial statements may not contain all footnotes required
by GAAP, and fairly present in all material respects the financial position of TEUM and its Subsidiaries as of and for the dates
thereof and the results of operations and cash flows for the periods then ended, subject to normal, immaterial, year-end audit
adjustments. There is no transaction, arrangement, or other relationship between TEUM or any Subsidiary and an unconsolidated or
other off balance sheet entity that is not disclosed in its financial statements that should be disclosed in accordance with GAAP
and that would be reasonably likely to have a Material Adverse Effect.

 

(b)          Except
as disclosed in the consolidated financial statements contained in the TEUM Financial Statements, there has been no material change
in the financial condition, operations or business of TEUM since the date of the most recent 10-Q filing.

 

(d)          Except
as otherwise disclosed in the consolidated financial statements contained in the TEUM Financial Statements included in the SEC
Reports, TEUM does not have any liabilities.

 

2.6           Governmental
Consent. No consent, waiver, approval, order or authorization of, or registration, declaration
or filing with, any court, administrative agency or commission or other federal, state, county, local or other foreign governmental
authority, instrumentality, agency or commission or any third party, including a party to any agreement with TEUM, is required
by or with respect to TEUM in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby, except for such consents, waivers, approvals, orders, authorizations, registrations,
declarations and filings as may be required under applicable state or securities laws,.

 

2.7           Litigation.
Except as set forth in the SEC Reports, there is no action, suit, investigation, audit or proceeding pending against, or to the
knowledge of TEUM threatened against or affecting, TEUM or any of its assets or properties before
any court or arbitrator or any governmental or other body, agency or official in which an unfavorable outcome would materially
harm TEUM’s financial position.

 

2.8           Interested
Party Transactions. Except as set forth in the SEC Reports, TEUM is not indebted to
any officer or director of TEUM (except for compensation and reimbursement of expenses incurred in the ordinary course of business
and payment of which is not overdue), and no such person is indebted to TEUM.

 

2.9           Compliance
with Applicable Laws. The business of TEUM has not been, and is not being, conducted in violation of any Applicable Law, except
for possible violations which both individually and also in the aggregate have not had and are not reasonably likely to have a
Material Adverse Effect. No investigation or review by any governmental entity with respect to TEUM is pending or, to the knowledge
of TEUM after reasonable inquiry, threatened, nor has any governmental entity indicated an intention to conduct the same, except
for investigations or reviews which both individually and also in the aggregate would not have, nor be reasonably likely to have,
a Material Adverse Effect. TEUM has not been threatened or subject to delisting on any exchange on which it is traded.

    	 	- 6 -	 

     

    

 

2.10         No
Undisclosed Liabilities. Except as set forth in the SEC Reports, there are no liabilities or debts of TEUM of any kind
whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, and there is no existing condition, situation
or set of circumstances which could reasonably be expected to result in such a liability or debt.

 

2.11         Tax
Returns and Payment. Except as set forth in the SEC Reports, TEUM has duly and timely
filed all Tax Returns required to be filed by it and has duly and timely paid all Taxes. Except as disclosed in the TEUM Financial
Statements, there is no claim for Taxes that is a lien against the property of TEUM other than liens for Taxes not yet due and
payable, none of which Taxes is material. TEUM has not received notification of any audit of any Tax Return of TEUM being
conducted or pending by a Tax authority, no extension or waiver of the statute of limitations on the assessment of any Taxes has
been granted by TEUM which is currently in effect, and TEUM is not a party to any agreement,
contract or arrangement with any Tax authority or otherwise, which may result in the payment of any amount in excess of the amount
reflected on the TEUM Financial Statements.

 

2.12         TEUM
Public Filings. All public filings by TEUM under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), are true, correct and complete in all material respects, are not misleading
and do not omit to state any material fact which is necessary to make the statements contained in such public filings not misleading
in any material respect. Except as set forth in the SEC Reports, all TEUM public filings
under the Exchange Act have been timely made. TEUM is not in violation of the listing requirements
of NYSE American and does not reasonably anticipate that the Common Stock will be delisted by NYSE American in the foreseeable
future, nor are the Company’s securities “chilled” by FINRA. TEUM and
its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

ARTICLE III

REPRESENTATIONS
AND WARRANTIES OF ARTA.

 

Except as set forth
in Disclosure Schedules, attached hereto, disclosure in any one of which shall apply to any and all representations
and warranties made by ARTA in this Agreement, ARTA hereby represents and warrants
to TEUM, as of the date of this Agreement and as of the Closing Date, as follows:

 

3.1           Organization,
Standing and Authority; Ownership of Shares. ARTA is a corporation duly organized, validly existing and in good standing under
the laws of England and Wales. ARTA has the full corporate power and corporate authority to execute, deliver and perform each Transaction
Document to which it is a party. ARTA is qualified to do business and is in good standing in each jurisdiction in which the nature
of its business or the properties owned or leased by it requires qualification. ARTA has all right, power and authority to execute
and deliver this Agreement and each Transaction Document to which it is a party and to perform its obligations hereunder and thereunder.
ARTA’s ordinary shares are currently trading on the Alternative Investment Market of the
London Stock Exchange (“AIM”) under the symbol “ARTA”. ARTA is duly qualified to do business as
a foreign corporation doing business in each jurisdiction in which it owns or leases real property and where the failure to be
so qualified and in good standing would have a Material Adverse Effect on ARTA or its business.
Other than its subsidiaries, ARTA does not have an ownership interest in any corporation, partnership (general or limited), limited
liability company or other entity, whether foreign or domestic (collectively such ownership interests including capital stock).

 

3.2           Capitalization.

 

(a)          On
or about the date of this Agreement, there are 313,588,578 shares of ARTA issued, consisting of only ordinary shares of ARTA with
par value £0.05 (“ARTA Ordinary Shares”).

 

    	 	- 7 -	 

     

    

 

3.3           Authority
for Agreement. The execution, delivery, and performance of this Agreement by ARTA has been duly authorized by all necessary
corporate and shareholder action, and this Agreement, upon its execution by the Parties, will constitute the valid and binding
obligation of ARTA enforceable against it in accordance with and subject to its terms, except as enforceability may be affected
by bankruptcy, insolvency or other laws of general application affecting the enforcement of creditors' rights. The execution, delivery
and performance of this Agreement and compliance with its provisions by ARTA will not violate any provision of Applicable Law and
will not conflict with or result in any breach of any of the terms, conditions, or provisions of, or constitute a default under
(whether with or without notice or lapse of time or both), ARTA's Certificate of Incorporation or Bylaws, in each case as amended,
or, in any material respect, any indenture, lease, loan agreement or other agreement or instrument to which ARTA is a party or
by which it or any of its properties are bound, or any decree, judgment, order, statute, injunction, charge, rule or regulation
or other restriction of any governmental agency applicable to ARTA except to the extent that any breach or violation of any of
the foregoing would not constitute or result in a Material Adverse Effect on ARTA. Except as set forth the Disclosure Schedules,
no consent, filing with or notification to, or approval or authorization of any governmental, regulatory or other authority is
required on the part of ARTA in connection with the execution, delivery and performance of this Agreement.

 

3.4           Issuance
of the ARTA Shares.

 

(a)          The
ARTA Ordinary Shares issuable to TEUM will, when issued pursuant to this Agreement, be duly and validly authorized and issued,
credited as fully paid up and shall rank parri passu with the existing ARTA Ordinary Shares currently in issue.

 

(b)          ARTA
confirms that it has authorised its nominated advisor to make application on its behalf in accordance with Rule 29 of part 1 of
the AIM Rules for Companies in connection with the admission to trading on AIM of the ARTA Shares (the “Application”)
and undertakes that it will pay all such fees as may be necessary to obtain admission of the ARTA Shares to trading on AIM becoming
effective in accordance with Rule 6 of Part 1 of the AIM Rules for Companies by no later than 8.00 am on December 31, 2017 or such
later date as is agreed in writing between the parties.

 

3.5           ARTA
is aware that the TEUM Shares have not been registered under the Securities Act, or any state securities laws or regulations in
reliance upon the exemption set forth in Section 4(2) of the Securities Act and safe-harbor set forth in Regulation S adopted
under the Securities Act that provides certain offerings conducted outside the United States are not subject to the registration
requirements of the Securities Act, and similar exemptions under state law. ARTA will not offer or sell the TEUM Shares unless
they are registered or are exempt from registration under the Securities Act and any applicable state securities laws or regulations.

 

3.6           Financial
Statements.

 

(a)          The
financial statements of ARTA included in the Disclosure Schedules are true and complete copies of the financial statements of ARTA
(the “ARTA Financial Statements”) and have been prepared in accordance with IFRS, except as may be otherwise
specified in such financial statements or the footnotes thereto except that unaudited financial statements may not contain all
footnotes required by IFRS, and fairly present in all material respects the financial position of ARTA and its subsidiaries as
of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject to normal, immaterial,
year-end audit adjustments. There is no transaction, arrangement, or other relationship between ARTA or any of its subsidiaries
and an unconsolidated or other off balance sheet entity that is not disclosed in its financial statements that should be disclosed
in accordance with IFRS and that would be reasonably likely to have a Material Adverse Effect.

 

(b)          Except
as disclosed in the consolidated financial statements contained in the ARTA Financial Statements, there has been no material change
in the financial condition, operations or business of ARTA since June 30, 2017.

 

    	 	- 8 -	 

     

    

 

(d)          Except
as otherwise disclosed in the consolidated financial statements contained in the ARTA Financial Statements included in the Disclosure
Schedules, ARTA does not have any liabilities.

 

3.7           Governmental
Consent. No consent, waiver, approval, order or authorization of, or registration, declaration
or filing with, any court, administrative agency or commission or other federal, state, county, local or other foreign governmental
authority, instrumentality, agency or commission or any third party, including a party to any agreement with ARTA, is required
by or with respect to ARTA in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby, except for such consents, waivers, approvals, orders, authorizations, registrations,
declarations and filings as may be required under applicable state or securities laws,.

 

3.8           Litigation.
Except as set forth in the Disclosure Schedules, there is no action, suit, investigation, audit or proceeding pending against,
or to the knowledge of ARTA threatened against or affecting, ARTA or any of its assets or properties before
any court or arbitrator or any governmental or other body, agency or official in which an unfavorable outcome would materially
harm ARTA’s financial positon.

 

3.9           Interested
Party Transactions. Except as set forth in the Disclosure Schedules, ARTA is not indebted
to any officer or director of ARTA (except for compensation and reimbursement of expenses incurred in the ordinary course of business
and payment of which is not overdue), and no such person is indebted to ARTA.

 

3.10         Compliance
with Applicable Laws. The business of ARTA has not been, and is not being, conducted in violation of any Applicable Law, except
for possible violations which both individually and also in the aggregate have not had and are not reasonably likely to have a
Material Adverse Effect. No investigation or review by any governmental entity with respect to ARTA is pending or, to the knowledge
of ARTA after reasonable inquiry, threatened, nor has any governmental entity indicated an intention to conduct the same, except
for investigations or reviews which both individually and also in the aggregate would not have, nor be reasonably likely to have,
a Material Adverse Effect. ARTA has not been threatened or subject to delisting on any exchange on which it is traded.

 

3.11         No
Undisclosed Liabilities. Except as set forth in the Disclosure Schedules, there are no liabilities or debts of ARTA
of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, and there is no existing
condition, situation or set of circumstances which could reasonably be expected to result in such a liability or debt.

 

3.12         Tax
Returns and Payment. Except as set forth in the Disclosure Schedules, ARTA has duly
and timely filed all Tax Returns required to be filed by it and has duly and timely paid all Taxes. Except as disclosed in the
ARTA Financial Statements, there is no claim for Taxes that is a lien against the property of ARTA other than liens for Taxes not
yet due and payable, none of which Taxes is material. ARTA has not received notification of any audit of any Tax Return of ARTA
being conducted or pending by a Tax authority, no extension or waiver of the statute of limitations on the assessment of
any Taxes has been granted by ARTA which is currently in effect, and ARTA is not a party
to any agreement, contract or arrangement with any Tax authority or otherwise, which may result in the payment of any amount in
excess of the amount reflected on the ARTA Financial Statements.

 

 

ARTICLE IV

CERTAIN COVENANTS AND AGREEMENTS

 

4.1           Additional
Covenants and Agreements. The Parties hereto do hereby mutually covenant and agree as to the matters set forth in this Section
4.1 below:

 

    	 	- 9 -	 

     

    

 

(a)          Announcement.
No Party shall issue any press release or otherwise make any public statement with respect to this Agreement or the transactions
contemplated hereby without the prior consent of the other Party hereto (which consent shall not be unreasonably withheld or delayed),
except as may be required by Applicable Law or securities regulation. Notwithstanding anything
in this Section 4.1 to the contrary, the Parties will, to the extent practicable, consult with each other before issuing, and provide
each other the opportunity to review and comment upon, any such press release or other public statements with respect to this Agreement
and the transactions contemplated hereby whether or not required by Applicable Law.

 

(b)          Notification
of Certain Matters. Each Party shall give prompt written notice to the other Party upon becoming aware of:

 

(i)          The
occurrence, or non-occurrence, of any event the occurrence, or non-occurrence, of which would be reasonably likely to cause any
representation or warranty contained in this Agreement to be untrue or inaccurate in any material respect at or prior to the Closing
Date; and

 

(ii)         Any
material failure of TEUM, on the one hand, or ARTA, on the other hand, to comply with or satisfy any covenant, condition or agreement
to be complied with or satisfied by it hereunder.

 

(c)          Reasonable
Efforts. Before Closing, upon the terms and subject to the conditions of this Agreement, the Parties agree to use their respective
reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or
advisable (subject to applicable laws) and with their respective policies to consummate and make effective the Exchange and other
transactions contemplated by this Agreement as promptly as practicable including, but not limited to:

 

(i)          The
preparation and filing of all forms, registrations and notices required to be filed to consummate the Exchange, including without
limitation, any approvals, consents, orders, exemptions or waivers by any third party or governmental entity; and

 

(i)          The
satisfaction of the other Party's conditions precedent to Closing.

 

(d)          Access
to Information.

 

(i)          Inspection
by ARTA. ARTA will make available for inspection by TEUM and its advisers, during normal business hours and in a manner so
as not to interfere with normal business operations, all of ARTA’s records (including tax records), books of account, premises,
contracts and all other documents in ARTA’s possession or control that are reasonably requested by TEUM or its advisers to
inspect and examine the business and affairs of ARTA. ARTA will cause its managerial employees and regular independent accountants
to be available upon reasonable advance notice to answer questions of TEUM concerning the business
and affairs of ARTA. TEUM will treat and hold as confidential any information they receive from ARTA in the course of the reviews
contemplated by this Section 4.1(d). No examination by TEUM will, however, constitute a waiver or relinquishment by TEUM of its
rights to rely on ARTA’s covenants, representations and warranties made herein or pursuant hereto.

 

(ii)         Inspection
by TEUM. TEUM will make available for inspection by ARTA and its advisers, during normal business hours and in a manner so
as not to interfere with normal business operations, all of TEUM’s records (including tax records), books of account, premises,
contracts and all other documents in TEUM’s possession or control that are reasonably requested by ARTA or its advisers to
inspect and examine the business and affairs of TEUM. TEUM will cause its managerial employees and regular independent accountants
to be available upon reasonable advance notice to answer questions of ARTA concerning the business and affairs of TEUM. ARTA will
treat and hold as confidential any information it receives from TEUM in the course of the reviews contemplated by this Section
4.1(d). No examination by ARTA will, however, constitute a waiver or relinquishment by ARTA
of its rights to rely on TEUM’s covenants, representations and warranties made herein or pursuant hereto.

 

(e)          Notice
of Developments. Each Party shall give prompt written notice to the others of any development causing a breach of any of its
representations and warranties contained in this Agreement. No disclosure by any Party pursuant to this Section 4.1(e), however,
shall be deemed to amend or supplement the SEC Reports or to prevent or cure any misrepresentation, breach of warranty, or breach
of covenant.

 

    	 	- 10 -	 

     

    

 

4.2           TEUM
Shares Lock-Up/Leak-Out Agreement. Except as otherwise expressly provided herein, ARTA agrees not to sell, assign, pledge,
hypothecate, encumber, or transfer any of the TEUM Shares or any interest therein, until the nine month anniversary of the Closing
Date (the “Lock-Up Period”), subject to the following:

 

(a)          Commencing
30 days from the end of the Lock-Up Period, ARTA agrees not to sell more than 1/5th of the TEUM Shares
in any 30-day period (the “Leak-Out Period”) with the first sale not to occur prior to 30 days
after the end of the Lock-Up Period (the “Leak-Out Restriction”).

 

(b)          ARTA
shall not engage in any short selling (as defined under Rule 200 of Regulation SHO under the Exchange Act) of the Exchange Securities
during the Lock-Up Period or while the Leak-Out Restriction is in effect.

 

(c)          The
following legend describing this Agreement shall be imprinted on each stock certificate representing Common Stock covered hereby,
and the transfer records of the Company’s transfer agent shall reflect such appropriate restrictions:

 

“THE TRANSFERABILITY
OF THE SHARES REPRESENTED BY THIS STOCK CERTIFICATE IS SUBJECT TO THE TERMS OF THE LOCK-UP AND LEAK-OUT AGREEMENT ENTERED INTO
BY THE SHAREHOLDER AND THE COMPANY.”

 

(d)          During
the Leak-Out Period, TEUM shall maintain its “reporting” status with the Securities and Exchange Commission; file all
reports that are required to be filed by it during such period; and use its “best efforts” to ensure that the Common
Stock is continually quoted for public trading on a nationally recognized stock exchange.

 

4.3           ARTA
Shares Lock-In/Orderly Market Agreement . 

 

(a)          TEUM
hereby undertakes to ARTA and finnCap:

 

(i)          not
at any time during the Lock-Up Period, without the prior written consent of ARTA, to offer,
dispose of, or agree to offer or otherwise dispose of directly or indirectly, whether for consideration or not:

 

a. any ARTA Shares (or any legal or beneficial interest
in any ARTA Shares); or

 

b. any securities of ARTA that are substantially similar
to the ARTA Shares (or any legal or beneficial interest in such securities or right in respect of such securities) including any
securities that are convertible into or exchangeable for, or that represent the right (whether conditional or not) to receive ARTA
Shares or any such substantially similar securities,

 

or do anything with the same
or substantially the same economic effect as any of the foregoing (including, a derivatives transaction); and

 

(ii)         not,
whilst finnCap remains as broker to the Company, until the end of the Lock-Up Period make any such disposal as is referred
to in section 4.3(a)(i) above except through finnCapIn this section 4.3(a), "dispose" includes mortgaging, pledging,
charging, lending, assigning, selling, transferring, issuing or granting options, rights or warrants or otherwise disposing.

 

    	 	- 11 -	 

     

    

 

(b)          TEUM
acknowledges that any decision by finnCap and/or ARTA to withhold consent in any of the circumstances mentioned in section 4.3(a)
shall not form the basis of any claim against finnCap and/or ARTA for any damage, loss, cost or expense alleged to have been caused
by such decision.

 

(c)          In
view of the difficulties in placing a monetary value upon the effects of any breach of the terms of the undertakings referred to
in this section 4.3, TEUM recognises that finnCap and ARTA will be entitled to seek injunctive relief as well as any other relief
which may be appropriate under the circumstances in any court of competent jurisdiction in the event of any breach or anticipatory
breach of the obligations set out in this agreement.

 

ARTICLE V

CONDITIONS OF CLOSING

 

5.1           Conditions
Precedent to Obligations of ARTA. The obligations of ARTA hereunder in
connection with the Closing are subject to the following conditions being met:

 

(a)          the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) on the Closing Date of the representations and warranties of ARTA contained herein (unless as of a specific
date therein in which case they shall be accurate as of such date);

 

(b)          all
obligations, covenants and agreements of ARTA required to be performed at or prior to the Closing Date shall have been performed;

 

(c)          from
the date hereof to the Closing Date, trading in the ARTA Ordinary Shares shall not have been suspended by ARTA’s principal
Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall
not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by
such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United Kingdom or London
authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international
calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the
reasonable judgment of TEUM, makes it impracticable or inadvisable to exchange the Exchange Securities at the Closing; and

 

(d)          the
delivery by ARTA of the items set forth in Section 1.4 of this Agreement.

 

5.2           Conditions
Precedent to Obligations of TEUM. The obligations of TEUM hereunder in connection with the Closing are subject to the following
conditions being met:

 

(a)          the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of TEUM contained herein (unless
as of a specific date therein);

 

(b)          all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

 

(c)          from
the date hereof to the Closing Date, trading in the TEUM Common Stock shall not have been suspended by the Commission or TEUM’s
principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of ARTA, makes it impracticable or inadvisable to exchange the Exchange Securities at the
Closing; and

    	 	- 12 -	 

     

    

 

(d)          the
delivery by TEUM of the items set forth in Section 1.3 of this Agreement. 

 

ARTICLE VI

INDEMNIFICATION

 

6.1           Indemnification
by TEUM. Subject to the provisions of this Article VI, TEUM agrees to indemnify, defend and hold harmless ARTA from and against
any and all Losses incurred or suffered arising out of any breach of any representation or warranty in this Agreement and/or in
any Transaction Document made or given by TEUM.

 

6.2        Indemnification
by ARTA Subject to the provisions of this Article VI, ARTA agrees to indemnify, defend and hold harmless TEUM from and against
any and all Losses incurred or suffered arising out of any breach of any representation or warranty in this Agreement and/or in
any Transaction Document made or given by ARTA.

 

6.3           Other
Indemnification Arrangements.

 

(a)          Notwithstanding
the other provisions of this Article VI, no Indemnitor shall be liable under this Article VI or otherwise for a breach
of representation or warranty unless the Indemnitee gives notice of a claim against such Indemnitor giving reasonable details of
the claim and the events which gave rise to the claim and, if practicable, the Indemnitee’s genuine pre-estimate of the amount
of the claim not later than 12 months (the “Claims Period”) after the Closing Date (and for the avoidance of
doubt, claims asserted in writing before such date shall be deemed timely made regardless of whether litigation or arbitration
proceedings are commenced by such date) and proceedings in respect of any claim so notified are commenced (by the issue and service
of a claim form) within six months of such notification if the claim is not settled within such six month period. Such limitation
shall not apply to Indemnifiable Claims arising out of an inaccuracy of a statement, or a breach of warranty, as applicable, set
forth in this Agreement, which shall survive the Claims Period without limitation.

 

(b)          Indemnitee
agrees to give to the Indemnitor prompt written notice of any claim with respect to which it may be entitled to indemnity or damages
hereunder (but the obligations of Indemnitor under this Article 6.3 or otherwise shall not be impaired by failure to give such
notice except to the extent said failure actually causes Losses to, or prejudices the rights of Indemnitor). Indemnitor shall have
the right to (and shall upon the request of Indemnitee) assume, with counsel reasonably satisfactory to Indemnitee, the defense
of any such claim brought by a third party. After Indemnitor’s written confirmation of the assumption of the defense of any
such claim and its obligation to indemnify and hold harmless Indemnitee in respect thereof Indemnitor shall not be responsible
for the legal fees and expenses of counsel independently retained by Indemnitee during the continuance of such assumption (but
shall be liable for any such fees and expenses other than during the continuance of such assumption). Indemnitor may effect any
settlement, adjustment or other compromise (collectively, “Settlement”) of any such claim without the consent
of Indemnitee if Indemnitor has paid, or made adequate provision for the payment of, the amount of such Settlement at the time
thereof and obtained a complete release respecting any such claims against the Indemnitee, as applicable, provided that before
entering into any Settlement that involves any remedy other than the payment of money by Indemnitor, Indemnitor shall obtain the
prior written consent of Indemnitee, which shall not be unreasonably withheld, denied or delayed. Indemnitee may, at its election,
employ counsel at its own expense in connection with the handling of any such claim. Indemnitee shall have the right to enter into
any Settlement of any such claim provided Indemnitee shall not be entitled to any indemnification or damages hereunder in connection
with the payment of any amounts pursuant to any Settlement agreed to by it unless such Settlement is consented to in writing by
Indemnitor, which consent shall not be unreasonably withheld, denied or delayed. The Parties agree to cooperate with each other
in connection with the defense, negotiation or Settlement of any claim of a third party.

    	 	- 13 -	 

     

    

 

(c)          The
Indemnitee shall not be entitled to claim more than once in respect of the same loss or damage. The Indemnitee shall not have any
claim under this Agreement in respect of any matter to the extent that the facts which might result in a claim or possible claim
were fairly disclosed in the Disclosure Schedule or in this Agreement or the other documents referred to in this Agreement.

 

(d)          No
Indemnitor shall have a liability for a claim under this Agreement unless and until such claim reaches final determination, which
means:

 

(i)          the
relevant Indemnitor(s) and the Indemnitee agreeing a settlement in respect of the relevant claim or it being otherwise satisfied;
or

 

(ii)         an
order or a decree of a court of competent jurisdiction being given in proceedings in respect of a relevant claim and such order
or decree being final and not or no longer appealable.

 

(e)          If
any claim under this Agreement is based upon a liability that is contingent only an Indemnitor shall not be liable to make any
payment to an Indemnitee, unless and until such contingent liability becomes an actual liability and is discharged and in the case
of a claim under the warranties set out in this Agreement loss is proven.

 

(f)          Where
an Indemnitee is at any time entitled to recover from some other Person any sum in respect of any matter giving rise to a claim
under this Agreement the Indemnitee shall undertake all reasonable steps to enforce such recovery prior to taking any actions (other
than notifying the Indemnitor of the claim) against an Indemnitor and in the event that an Indemnitee shall recover any amount
from such other Person the amount of the claim against an Indemnitor shall be reduced by the amount recovered less the reasonable
costs incurred by the Indemnitee in recovering that sum from such other person.

 

(g)          If
an Indemnitor makes any payment to an Indemnitee in relation to any claim under this Agreement and the Indemnitee subsequently
receives from a third party any amount referable to, or any benefit which would not have been received but for the circumstances
giving rise to, the subject matter of that claim, the Indemnitee shall, once it has received such amount or benefit, immediately
repay or procure the repayment to the Indemnitor of either:

 

(i)          the
amount of such receipt (after deducting an amount equal to the reasonable costs of the Indemnitee incurred in recovering such receipt
and any taxation payable on it); or if lesser,

 

(ii)         the
amount paid in respect of such claim by the Indemnitor together with any interest or repayment supplement paid to the Indemnitee
in respect of it.

 

(h)          Nothing
in this Section shall in any way affect or prejudice the Indemnitee’s common law duty to mitigate its loss.

 

(i)          ARTA
shall not be entitled to claim in respect of any matter provided for in the TEUM Financial Statements.

 

(j)          TEUM
shall not be entitled to claim in respect of any matters provided for in the ARTA Financial Statements.

 

6.4           Maximum
Liability. The aggregate liability of the Indemnitor in respect of all claims under this Agreement will not exceed an amount
equal to the consideration received by that Indemnitor under this Agreement

 

 

    	 	- 14 -	 

     

    

 

6.5           Small
claims throw away. An Indemnitor will not be liable for any claim unless the amount of the liability in respect of that claim
(excluding interest and costs) exceeds $5,000.

 

6.6           Threshold.
A Indemnitor will not be liable for any claim unless and until the amount of the liability in respect of that claim, when aggregated
with the amount of the liability in respect of all other claims (excluding any amounts in respect of a claim for which the Indemnitor
has no liability because of Article 6.5), exceeds $50,000 in which event the Indemnitor will be liable for the whole amount of
such liability and not merely for the excess.

 

6.7           Fraud.
The limitations set out in this Article VI shall not apply to an Indemnitor in respect of
Liabilities arising from fraud or willful non-disclosure on the part of that Indemnitor, its agents
or advisers. 

 

ARTICLE VIII

MISCELLANEOUS

 

7.1           Termination.
This Agreement may be terminated before the Closing by a Party by written notice to the other Party, if the Closing has not been
consummated on or before December 31, 2017; provided, however, that such termination will not affect the right of any party to
sue for any breach by any other party.

 

7.2           Entire
Agreement, Survival.

 

(a)          This
Agreement, and the documents referred to in it, constitute the entire agreement and understanding of the Parties and supersede
any previous agreements made or existing between the Parties or any of them before or simultaneously with this Agreement and relating
to the subject matter of this Agreement (all of which shall be deemed to have been terminated by mutual consent with effect from
the date of this Agreement).

 

(b)          Each
of the Parties acknowledges and agrees that on entering into this Agreement, and the documents referred to herein, does not rely
on, and shall have no remedy in respect of, any statement, representation, warranty or understanding (whether negligently or innocently
made) of any person (whether party to this Agreement or not) other than as expressly set out in this Agreement.

 

(c)          Save
as provided for in section 7.3(b), the only remedy available to a Party for a breach of this Agreement shall be for breach of contract
under the terms of this Agreement.

 

(d)          Nothing
in this Section 7.2 shall, however, operate to limit or exclude any liability for fraud.

 

(e)          Except
as otherwise permitted by this Agreement no change to its terms shall be effective unless it is in writing and signed by or on
behalf of each of the Parties.

 

7.3           Jurisdiction
and Governing Law; Jury Trial.

 

(a)          This
Agreement shall be governed by and construed solely and exclusively in accordance with the internal laws of England & Wales
without regard to the conflicts of laws principles thereof. The Parties hereto hereby expressly and irrevocably agree that any
suit or proceeding arising directly and/or indirectly pursuant to or under this Agreement shall be brought solely in a court located
in the City, of London, England. By its execution hereof, the Parties hereby covenant and irrevocably submit to the in personam
jurisdiction of the federal and state courts located in London, England, and agree that any process in any such action may be served
upon any of them personally, or by certified mail or registered mail upon them or their agent, return receipt requested, with the
same full force and effect as if personally served upon them in London. The Parties hereto expressly and irrevocably waive any
claim that any such jurisdiction is not a convenient forum for any such suit or proceeding and any defense or lack of in personam
jurisdiction with respect thereto. In the event of any such action or proceeding, the party prevailing therein shall be entitled
to payment from the other party hereto of all of its reasonable counsel fees and disbursements.

    	 	- 15 -	 

     

    

 

(b)          Each
of the Parties hereto acknowledges and agrees that irreparable damage would occur in the event that any
of the provisions of this Agreement or any other Transaction Document was not performed
in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties
shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and the
other Transaction Documents to enforce specifically the terms and provisions hereof and thereof, this being in addition to any
other remedy to which any of them may be entitled by law or equity.

 

(c)          Each
of the Parties hereto hereby waives a trial by jury in any action, proceeding or counterclaim brought by either of the Parties
hereto against the other in respect of any matter arising out or in connection with this Agreement or any Transaction Document.

 

7.4           Schedules;
Tables of Contents and Headings. Any section required to be attached and not attached to this Agreement on the Agreement
Date shall be deemed to have been attached thereto with the following thereon: “None.” The table of contents and section
headings of this Agreement and titles given to Schedules to this Agreement are for reference purposes only and are to be given
no effect in the construction or interpretation of this Agreement. All notices and other communications under this Agreement shall
be in writing and shall be deemed given when (a) delivered personally
or (b) delivered by a responsible overnight courier service, in each such case delivered or mailed to the Parties at the
addresses set forth below (or to such address as a Party may have specified by notice given to the other Parties pursuant to this
provision).

 

7.5           Severability.
In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect (a) such provision
shall be enforced to the maximum extent permissible under applicable law, and (b) the invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain
in full force and effect.

 

7.6        Expenses.
Each Party shall pay the fees and expenses of its own advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution, delivery and performance of the Transaction Documents.

 

7.7        Notices.         All
notices and other communications under this Agreement shall be in writing and shall be deemed given
when (a) delivered personally or (b) delivered by a responsible overnight courier
service, in each such case delivered or mailed to the Parties at the addresses set forth below (or to such address as a Party may
have specified by notice given to the other Parties pursuant to this provision). The addresses for such communications shall be:

 

	If to ARTA to:	 
	 	 
	 	Artilium PLC
	 	Attn: Bart Weijermars
	 	Vaartdijkstraat 19, 8200 Brugge, Belgium

 

	If to TEUM to:	 
	 	 
	 	Pareteum Corporation
	 	100 Park Avenue, 16th Floor 
	 	New York, New York 10017
	 	Attention: Edward O’Donnell

 

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

 

	 	Sichenzia Ross Ference Kesner LLP
	 	1185 Avenue of the Americas, 37rh Floor
	 	New York, NY 10036
	 	Attention: Darrin M. Ocasio, Esq.

 

    	 	- 16 -	 

     

    

  

7.8           Miscellaneous
Provisions. 

 

(a)          Subject
and without prejudice to Section 7.1, all rights and remedies of any Party under any provision of this Agreement shall be in addition
to any other rights and remedies provided for by any law of any kind (including all forms of legal and equitable relief, including
specific performance), all rights and remedies contemplated in the preceding part of this sentence shall be independent and cumulative,
and may, to the extent permitted by law, be exercised concurrently or separately, and the exercise of any one right or remedy shall
not be deemed to be an election of such right or remedy or to preclude or waive the exercise of any other right or remedy.

 

(b)          Any
Party may waive compliance by another with any of the provisions of this Agreement provided that (i) no waiver of any provision
shall be construed as a waiver of any other provision, (ii) any waiver must be in writing and shall be strictly construed, and
(iii) a waiver in any one instance shall not be deemed a waiver in any subsequent instance.

 

(c)          This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Parties
may not assign this Agreement or any rights or obligations hereunder without the prior written consent. A Party may assign any
or all of its rights under this Agreement to any Person to whom the Party assigns or transfers any Exchange Securities, provided
that such transferee agrees in writing to be bound, with respect to the transferred Exchange Securities, by the provisions of the
Transaction Documents that apply to such Party.

 

(d)         This Agreement may
be executed via fax and or other electronic transmission in counterparts, each of which shall be an original, but which together
shall constitute one and the same Agreement.

 

(e)           Each Party (severally) shall indemnify and hold harmless the other Parties from and against any and all claims for investment bankers,
brokers, finders or similar commissions (“Third Party Commission”) made by any Person as a result of this Agreement
and the transactions contemplated hereunder to the extent that any such Third Party Commission was incurred, or alleged to have
been incurred, by or through that Party.

 

[Signature page follows]

 

 

    	 	- 17 -	 

     

    

 

IN WITNESS WHEREOF,
the parties have duly executed this Agreement as of the date first above written.

 

 

	 	PARETEUM CORPORATION
	 	 	 
	 	By:	 
	 	Name:  	Robert H. Turner
	 	Title:	Executive Chairman
	 	 	 
	 	ARTILIUM, PLC
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 

 

    	 	- 18 -

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