Document:

Exhibit 10.1

 

EXECUTION COPY

 

SYNTHETIC BIOLOGICS, INC.

 

SHARE PURCHASE AGREEMENT

 

This Share Purchase
Agreement (this “Agreement”) is dated as of September 11, 2017, among Synthetic Biologics, Inc., a Nevada corporation
(the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors
and assigns, a “Purchaser” and collectively the “Purchasers”).

 

RECITALS

 

A.           The
Company and each Purchaser is executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act, and Rule 506 of Regulation D (“Regulation D”) as promulgated
by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act.

 

B.           Each
Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated
in this Agreement, that aggregate number of shares of Preferred Stock set forth below such Purchaser’s name on the signature
page of this Agreement as provided herein.

 

C.           Contemporaneously
with the execution and delivery of this Agreement, the parties hereto are executing and delivering the Registration Rights Agreement,
pursuant to which, among other things, the Company will agree to provide certain registration rights with respect to the Shares
under the Securities Act and the rules and regulations promulgated thereunder and applicable state securities laws.

 

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:

 

“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 144 under the Securities Act. With respect to a Purchaser,
any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Purchaser
will be deemed to be an Affiliate of such Purchaser.

 

     

     

    

 

“Business
Day” means any day except Saturday, Sunday, any day which shall be 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.

 

“Certificate
of Designation” means the Certificate of Designation to be filed prior to the Closing by the Company with the Secretary
of State of Nevada in the form of Exhibit A attached hereto.

 

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

 

“Closing Date”
means the date and time of the Closing.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common Stock”
means the Common Stock of the Company, par value $0.001 per share, and any other class of securities into which such securities
may hereafter be reclassified or changed into.

 

“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, rights, options, warrants or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

“Company Counsel”
means Gracin & Marlow, LLP, with offices located at the Chrysler Building, 405 Lexington Avenue, New York, New York, 10174.

 

“Effective
Date” means the date that the initial Registration Statement filed by the Company pursuant to the Registration Rights
Agreement is first declared effective by the Commission.

 

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

 

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

 

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

 

“Legend Removal
Date” shall have the meaning ascribed to such term in Section 4.1(d).

 

“Liens”
means a lien, charge, 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(a).

 

    	 	2	 

     

    

 

“Nevada Counsel”
means Parson Behle and Latimer, with offices at 50 West Liberty Street, Suite 750, Reno, Nevada 89501.

 

“Per Share
Purchase Price” equals $100.

 

“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.

 

“Preferred
Stock” means the shares of Company Series A convertible preferred stock to be issued to the Purchasers.

 

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

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.5.

 

“Registration
Rights Agreement” means the Registration Rights Agreement, dated the date hereof, among the Company and the Purchasers,
in the form of Exhibit B attached hereto.

 

“Registration
Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement and
covering the resale by the Purchasers of the Underlying Shares.

 

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

 

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

 

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

 

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

 

“Short Sales”
include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange
Act, whether or not against the box, and all types of direct and indirect stock pledges, forward sale contracts, options, puts,
calls, short sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar
arrangements (including on a total return basis), and sales and other transactions through non-U.S. broker dealers or foreign regulated
brokers.

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for the Shares 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.

 

    	 	3	 

     

    

 

“Subsidiary”
means any subsidiary of the Company as set forth in the SEC Documents.

 

“Trading Day”
means a day on which the Common Stock is traded on a Trading Market.

 

“Trading Market”
means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the
NYSE American LLC, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange
or the OTC Bulletin Board.

 

“Transaction
Documents” means this Agreement, the Registration Rights Agreement and any other documents or agreements executed in
connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Corporate Stock Transfer, Inc., and any successor transfer agent of the Company.

 

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock.

 

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 each Purchaser agrees to purchase, the number
of Shares of Preferred Stock set forth on the signature page hereto executed by such Purchaser. The aggregate number of Shares
of Preferred Stock sold hereunder shall be 120,000. Each Purchaser shall deliver to the Company, via wire transfer immediately
available funds equal to the Subscription Amount as set forth on the signature page hereto executed by such Purchaser and the Company
shall deliver to such Purchaser the number of Shares of Preferred Stock set forth on the signature page hereto executed by such
Purchaser, and the Company and such Purchaser shall deliver the other items set forth in Section 2.2. Upon satisfaction of
the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of Company Counsel or such
other location as the parties shall mutually agree.

 

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 and Nevada Counsel, substantially in the form of Exhibit C attached hereto;

 

    	 	4	 

     

    

 

(iii)        an
irrevocable letter of instruction to the transfer agent to either issue a certificate evidencing a number of Shares of Preferred
Stock equal to such Purchaser’s Shares of Preferred Stock as set forth on the signature page hereto executed by such Purchaser
and registered in the name of such Purchaser or provide evidence of book entry of the number of Shares of Preferred Stock equal
to such Purchaser’s Shares of Preferred Stock as set forth on the signature page hereto executed by such Purchaser and evidence
of the filing and acceptance of the Certificate of Designation from the Secretary of State of Nevada; and

 

(iv)        the
Registration Rights Agreement duly executed by the Company.

 

(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;

 

(ii)         the
Subscription Amount as set forth on the signature page hereto executed by such Purchaser by wire transfer to the account specified
by the Company; and

 

(iii)        the
Registration Rights Agreement duly executed by such Purchaser.

 

2.3          Closing
Conditions.

 

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

 

(i)          the
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchasers contained
herein (except with respect to representations and warranties which relate to a specific date, in which case such representations
and warranties shall continue to be materially accurate as of such date);

 

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

 

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

 

(iv)        no
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents; and

 

(v)         the
Company shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and waivers necessary for
consummation of the purchase and sale of the Shares, all of which shall be and remain so long as necessary in full force and effect.

 

    	 	5	 

     

    

 

(b)          The
respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being
met or waived by each Purchaser as to itself:

 

(i)          the
accuracy in all material respects on the Closing Date of the representations and warranties of the Company contained herein (except
with respect to representations and warranties which relate to a specific date, in which case such representations and warranties
shall continue to be materially 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 and a certificate, dated as of the Closing Date
and signed by its Chief Executive Officer or its Chief Financial Officer, certifying to the fulfillment of the conditions specified
in Sections 2.3(b)(i) and (ii);

 

(iv)       
on the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s principal
Trading Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated
prior to the Closing Date), 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;

 

(v)         no
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents; and

 

(vi)        the
Company shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and waivers necessary for
consummation of the purchase and sale of the Shares, all of which shall be and remain so long as necessary in full force and effect.

 

ARTICLE
III 

 

REPRESENTATIONS AND
WARRANTIES

 

3.1          Representations
and Warranties of the Company. Except as set forth in the SEC Documents which qualify any representation or otherwise made
herein to the extent of the disclosure contained in the SEC Documents, the Company hereby makes the following representations and
warranties to each Purchaser as of the Closing Date:

 

    	 	6	 

     

    

 

(a)          Organization,
Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws
of the State of Nevada and has the requisite corporate power to own, lease and operate its properties and assets and to conduct
its business as it is now being conducted and as described in the reports filed by the Company with the Commission pursuant to
the reporting requirements of the Exchange Act, since the end of its most recently completed fiscal year through the date hereof,
including, without limitation, its most recent report on Form 10-Q. The Company does not have any material subsidiaries other than
those set forth on Exhibit 21 to the Annual Report on Form 10-K for the year ended December 31, 2016. The Company is qualified
to do business as a foreign corporation and is in good standing in every jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except for any jurisdiction(s) (alone or in the aggregate) in which
the failure to be so qualified will not have a Material Adverse Effect. For the purposes of this Agreement, “Material
Adverse Effect” means any effect on the business, operations, properties or financial condition of the Company that is
material and adverse to the Company, taken as a whole, and any condition, circumstance or situation that would prohibit the Company
from entering into and performing any of its obligations hereunder.

 

(b)          Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and perform the Transaction Documents
and to issue the Shares in accordance with the terms hereof. The execution, delivery and performance of the Transaction Documents
by the Company and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all
necessary corporate action, and no further consent or authorization of the Company, its board of directors or stockholders is required.
When executed and delivered by the Company, the Transaction Documents shall constitute a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the
enforcement of, creditor’s rights and remedies or by other equitable principles of general application.

 

(c)          Issuance
of Shares. The Shares to be issued and sold hereunder have been duly authorized by all necessary corporate action and, when
issued in accordance with the terms hereof, will be validly issued, fully paid and nonassessable. In addition, the Shares will
be free and clear of all liens, claims, charges, security interests or agreements, pledges, assignments, covenants, restrictions
or other encumbrances created by, or imposed by, the Company (collectively, “Encumbrances”) and rights of refusal
of any kind imposed by the Company (other than restrictions on transfer under applicable securities laws) and the holder of such
Shares shall be entitled to all rights accorded to a holder of Common Stock. As of the date hereof, 128,460,683 shares of the Company’s
Common Stock are issued and outstanding and no shares of preferred stock are outstanding. The Company has options outstanding to
acquire 57,341,642 shares of Common Stock and warrants outstanding to acquire 11,398,111 shares of Common Stock.

 

    	 	7	 

     

    

 

(d)          No
Conflicts; Governmental Approvals. The execution, delivery and performance of the Transaction Documents by the Company and
the consummation by the Company of the transactions contemplated hereby do not and will not: (i) violate any provision of the Company’s
Articles of Incorporation or Bylaws, each as amended to date; (ii) conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation
to which the Company is a party or by which the Company’s properties or assets are bound; or (iii) result in a violation
of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected, except for
such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in
the aggregate, have a Material Adverse Effect. Except for approval of the NYSE American, LLC of the issuance of the Underlying
Shares, which such approval has been obtained by the Company on or before the date hereof, the Company is not required under federal,
state, foreign or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration
with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement
or issue and sell the Shares in accordance with the terms hereof (other than any filings, consents and approvals which may be required
to be made by the Company under applicable state and federal securities laws, rules or regulations prior to or subsequent to the
Closing).

 

(e)          Commission
Documents, Financial Statements. The Common Stock of the Company is registered pursuant to Section 12(b) of the Exchange Act.
During the year preceding this Agreement, the Company has timely filed all reports, schedules, forms, statements and other documents
required to be filed by it with the Commission pursuant to the reporting requirements of the Exchange Act (the foregoing materials,
including the exhibits thereto and documents incorporated by reference therein being collectively referred to as the “SEC
Documents”). At the times of their respective filing, all such reports, schedules, forms, statements and other documents
complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated
thereunder. At the times of their respective filings, such reports, schedules, forms, statements and other documents did not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates,
the financial statements of the Company included in the SEC Documents complied in all material respects with applicable accounting
requirements and the published rules and regulations of the Commission or other applicable rules and regulations with respect thereto.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied
on a consistent basis (“GAAP”) during the periods involved (except (i) as may be otherwise indicated in such
financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements), and fairly present in all material respects the consolidated financial position
of the Company as of 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 year-end audit adjustments).

 

(f)           Accountants.
BDO USA LLP whose report on the financial statements of the Company is filed with the Commission in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2016, were, at the time such report was issued, independent registered public
accountants as required by the Securities Act.

 

    	 	8	 

     

    

 

(g)          Internal
Controls. The Company has established and maintains a system of internal accounting controls sufficient to provide reasonable
assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
in the United States and to maintain accountability for assets; (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 existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

 

(h)          Disclosure
Controls. The Company has established and maintains disclosure controls and procedures (as such term is defined in Rules 13a-15
and 15d-15 under the Exchange Act). Since the date of the most recent evaluation of such disclosure controls and procedures, there
have been no significant changes in internal controls or in other factors that could significantly affect internal controls, including
any corrective actions with regard to significant deficiencies and material weaknesses. The Company is in compliance in all material
respects with all provisions currently in effect and applicable to the Company of the Sarbanes-Oxley Act of 2002, and all rules
and regulations promulgated thereunder or implementing the provisions thereof.

 

(i)           No
Material Adverse Change. Except as disclosed in the SEC Documents, since June 30, 2017, the Company has not (i) experienced
or suffered any Material Adverse Effect; (ii) incurred any material liabilities, obligations, claims or losses (whether liquidated
or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) other than those incurred in the ordinary course
of the Company’s business; or (iii) declared, made or paid any dividend or distribution of any kind on its capital stock.

 

(j)           No
Undisclosed Events or Circumstances. Except as disclosed in the SEC Documents, and except for the consummation of the
transactions contemplated herein, since June 30, 2017, to the Company’s knowledge, no event or circumstance has
occurred or exists with respect to the Company or its businesses, properties, prospects, operations or financial condition,
which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not
been so publicly announced or disclosed.

 

(k)          Litigation.
No action, suit, proceeding or investigation is currently pending or, to the knowledge of the Company, has been threatened in writing
against the Company that: (i) concerns or questions the validity of this Agreement; (ii) concerns or questions the right of the
Company to enter into this Agreement; or (iii) is reasonably likely to have a Material Adverse Effect. The Company is neither a
party to nor subject to the provisions of any material order, writ, injunction, judgment or decree of any court or government agency
or instrumentality. There is no action, suit, proceeding or investigation by the Company currently pending or that the Company
intends to initiate that would have a Material Adverse Effect.

 

    	 	9	 

     

    

 

(l)           Compliance.
Except for defaults or violations which are not reasonably likely to have a Material Adverse Effect, the Company is not (i) in
default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both,
would result in a default by the Company under), nor has the Company received notice of a claim that it is in default under or
that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived); (ii) is in violation
of any order of any court, arbitrator or governmental body; or (iii) is or has been in violation of any statute, rule or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws, applicable to its business.

 

(m)         Intellectual
Property.

 

(i)          To
the best of its knowledge, the Company has entered into agreements with each of its current and former officers, employees and
consultants involved in research and development work, including development of the Company’s products and technology providing
the Company, to the extent permitted by law, with title and ownership to patents, patent applications, trade secrets and inventions
conceived, developed, reduced to practice by such person, solely or jointly with other of such persons, during the period of employment
by the Company except where the failure to have entered into such an agreement would not have a Material Adverse Effect. The Company
is not aware that any of its employees or consultants is in material violation thereof.

 

(ii)         To
the Company’s knowledge, the Company owns or possesses adequate rights to use all trademarks, service marks, trade names,
domain names, copyrights, patents, patent applications, inventions, know how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures), and other intellectual property rights (“Intellectual
Property”) as are necessary for the conduct of its business as described in the Commission Documents. Except as described
in the SEC Documents: (1) to the knowledge of the Company, there is no infringement, misappropriation or violation by third parties
of any such Intellectual Property; (2) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding
by others against the Company challenging the Company’s rights in or to any such Intellectual Property and the Company has
not received any written notice of a claim by others against the Company challenging the Company’s rights in or to any such
Intellectual Property; (3) the Intellectual Property owned by the Company and, to the knowledge of the Company, the Intellectual
Property licensed to the Company has not been adjudged invalid or unenforceable by a court of competent jurisdiction or applicable
government agency, in whole or in part, and there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding
by others challenging the validity or scope of any such Intellectual Property and Company has not received any written notice of
a claim by others challenging the validity or scope of any such Intellectual Property; (4) there is no pending or, to the knowledge
of the Company, threatened action, suit, proceeding or claim by others against the Company that the Company infringes, misappropriates
or otherwise violates any Intellectual Property or other proprietary rights of others, and the Company has not received any written
notice of such claim; and (5) to the Company’s knowledge, no employee of the Company is the subject of any claim or proceeding
involving a violation of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition
agreement, non-solicitation agreement, nondisclosure agreement or any restrictive covenant to or with a former employer where the
basis of such violation relates to such employee’s employment with the Company or actions undertaken by the employee while
employed with the Company, in each of (1) through (5), for any instances which would not, individually or in the aggregate, result
in a Material Adverse Effect.

 

    	 	10	 

     

    

 

(n)          FDA
Compliance.

 

(i)          
Except as described in the SEC Documents, the Company: (i) is in material compliance with all statutes, rules or regulations applicable
to the ownership, testing, development, manufacture, packaging, processing, use, distribution, marketing, labeling, promotion,
sale, offer for sale, storage, import, export or disposal of any product that is under development, manufactured or distributed
by the Company (“Applicable Laws”); (ii) has not received any FDA Form 483, notice of adverse finding, warning
letter, untitled letter or other correspondence or notice from the U.S. Food and Drug Administration (the “FDA”)
or any other federal, state, local or foreign governmental or regulatory authority alleging or asserting material noncompliance
with any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations, permits and supplements or amendments
thereto required by any such Applicable Laws (“Authorizations”), which would not, individually or in the aggregate,
result in a Material Adverse Effect; (iii) possesses all material Authorizations necessary for the operation of its business as
described in the SEC Documents and such Authorizations are valid and in full force and effect and the Company is not in material
violation of any term of any such Authorizations; and (iv) since January 1, 2017: (A) has not received notice of any claim, action,
suit, proceeding, hearing, enforcement, investigation, arbitration or other action from the FDA or any other federal, state, local
or foreign governmental or regulatory authority or third party alleging that any product operation or activity is in material violation
of any Applicable Laws or Authorizations and has no knowledge that the FDA or any other federal, state, local or foreign governmental
or regulatory authority or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding;
(B) has not received notice that the FDA or any other federal, state, local or foreign governmental or regulatory authority has
taken, is taking or intends to take action to limit, suspend, modify or revoke any material Authorizations and has no knowledge
that the FDA or any other federal, state, local or foreign governmental or regulatory authority is considering such action; (C)
has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records, claims, submissions
and supplements or amendments as required by any Applicable Laws or Authorizations and that all such reports, documents, forms,
notices, applications, records, claims, submissions and supplements or amendments were materially complete and correct on the date
filed (or were corrected or supplemented by a subsequent submission); and (D) has not, either voluntarily or involuntarily, initiated,
conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal or replacement, safety alert,
post sale warning, “dear doctor” letter, or other notice or action relating to the alleged lack of safety or efficacy
of any product or any alleged product defect or violation and, to the Company’s knowledge, no third party has initiated,
conducted or intends to initiate any such notice or action.

 

(o)          Since
January 1, 2017, and except to the extent disclosed in the SEC Documents, the Company has not received any notices or correspondence
from the FDA or any other federal, state, local or foreign governmental or regulatory authority requiring the termination, suspension
or material modification of any studies, tests or preclinical or clinical trials conducted by or on behalf of the Company.

 

    	 	11	 

     

    

 

(p)          General
Healthcare Regulatory Compliance.

 

(i)          As
used in this subsection:

 

1.          “Governmental
Entity” means any national, federal, state, county, municipal, local or foreign government, or any political subdivision,
court, body, agency or regulatory authority thereof, and any Person exercising executive, legislative, judicial, regulatory, taxing
or administrative functions of or pertaining to any of the foregoing.

 

2.          “Law”
means any federal, state, local, national or foreign law, statute, code, ordinance, rule, regulation, order, judgment, writ, stipulation,
award, injunction, decree or arbitration award or finding.

 

(ii)         The
Company has not committed any act, made any statement or failed to make any statement that would reasonably be expected to provide
a basis for the FDA or any other Governmental Entity to invoke its policy with respect to “Fraud, Untrue Statements of Material
Facts, Bribery, and Illegal Gratuities”, or similar policies, set forth in any applicable Laws. Neither the Company, nor,
to the knowledge of the Company, any of its officers, key employees or agents has been convicted of any crime or engaged in any
conduct that has resulted, or would reasonably be expected to result, in debarment under applicable Law, including, without limitation,
21 U.S.C. Section 335a. No claims, actions, proceedings or investigations that would reasonably be expected to result in such a
material debarment or exclusion are pending, or to the knowledge of the Company, threatened, against the Company or any of its
respective officers, employees or agents.

 

(iii)        Each
of the Company and, to its knowledge, its directors, officers, employees, and agents (while acting in such capacity) is, and at
all times has been, in material compliance with all health care Laws applicable to the Company or by which any of its properties,
businesses, products or other assets is bound or affected, including, without limitation, the federal Anti-kickback Statute (42
U.S.C. § 1320a-7b(b)), the Anti-Inducement Law (42 U.S.C. § 1320a-7a(a)(5)), the civil False Claims Act (31 U.S.C.
§§ 3729 et seq.), the administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), the Health Insurance Portability
and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.), the exclusion laws (42 U.S.C. § 1320a-7), the Food Drug and
Cosmetic Act (21 U.S.C. §§ 301 et seq.) (collectively, “Health Care Laws”). The Company has not received
any notification, correspondence or any other written or oral communication from any Governmental Entity, including, without limitation,
the FDA, the Centers for Medicare and Medicaid Services, and the Department of Health and Human Services Office of Inspector General,
of potential or actual material non-compliance by, or liability of, the Company under any Health Care Laws.

 

(iv)        The
Company is not a party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders, or similar
agreements with or imposed by any Governmental Entity.

 

(q)          Application
of Takeover Protections. The issuance of the Shares hereunder and the Purchasers’ ownership thereof is not prohibited
by the business combination statutes of the state of Nevada, including without limitation Nevada Revised Statutes Section 78.411
et seq. The Company has not adopted any stockholder rights plan, “poison pill” or similar arrangement that would trigger
any right, obligation or event as a result of the issuance of such Shares and the Purchasers’ ownership of such Shares and
there are no similar anti-takeover provisions under the Company's charter documents.

 

    	 	12	 

     

    

 

(r)          Listing
and Maintenance Requirements. The Company is in compliance with the requirements of the Trading Market for continued trading
of the Common Stock pursuant thereto. The issuance and sale of the Shares hereunder does not contravene the rules and regulations
of the Trading Market.

 

(s)          Private
Placement. Neither the Company nor its Affiliates, nor any Person acting on its or their behalf: (i) has engaged in any form
of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with
the offer or sale of the Shares hereunder, (ii) has, directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security, under any circumstances that would require registration of the sale and issuance by the Company
of the Shares under the Securities Act; or (iii) has issued any shares of Common Stock or shares of any series of preferred stock
or other securities or instruments convertible into, exchangeable for or otherwise entitling the holder thereof to acquire shares
of Common Stock which would be integrated with the sale of the Shares to Purchasers for purposes of the Securities Act or of any
applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated
quotation system on which any of the securities of the Company are listed or designated, nor will the Company or any of its subsidiaries
or affiliates take any action or steps that would require registration of any of the Shares under the Securities Act or cause the
offering of the Shares to be integrated with other offerings. Assuming the accuracy of the representations and warranties of Purchasers,
the offer and issuance of the Shares by the Company to Purchasers pursuant to this Agreement will be exempt from the registration
requirements of the Securities Act.

 

(t)          No
Manipulation of Stock. The Company has not taken, and has no plans to take, in violation of applicable law, any action outside
the ordinary course of business designed to, or that might reasonably be expected to, cause or result in unlawful manipulation
of the price of the Common Stock.

 

(u)          Brokers.
Neither the Company nor any of the officers, directors or employees of the Company has employed any broker or finder in connection
with the transaction contemplated by this Agreement. The Company shall indemnify Purchasers from and against any broker’s,
finder’s or agent’s fees for which the Company is responsible.

 

(v)         Solvency.
Based on the financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company of the
proceeds from the sale of the Shares hereunder, the fair saleable value of the Company’s assets exceeds the amount that will
be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature. Assuming the Closing occurs, the Company has no knowledge of any facts or circumstances which lead
it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction
within one year from the Closing Date.

 

    	 	13	 

     

    

 

(w)         Foreign
Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of
the Company, 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 made by any person acting on its behalf of which the Company is aware) which is in violation
of law; or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

3.2          Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants to
the Company as follows (as of the Closing Date, unless otherwise noted below):

 

(a)          Authority.
The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized
by all necessary corporate or similar action 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)          Own
Account. Such Purchaser understands that the Shares are “restricted securities” and have not been registered under
the Securities Act or any applicable state securities law and is acquiring the Shares as principal for its own account and not
with a view to or for distributing or reselling such Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, has no present intention of distributing any of such Shares in violation of the Securities Act or any applicable
state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding
the distribution of such Shares (this representation and warranty not limiting such Purchaser’s right to sell the Shares
pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws) in violation
of the Securities Act or any applicable state securities law. Such Purchaser is acquiring the Shares hereunder in the ordinary
course of its business. Such Purchaser understands that it may not be able to sell any of the Shares without prior registration
under the Securities Act or the existence of an exemption from such registration requirement.

 

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

 

    	 	14	 

     

    

 

(d)          Purchaser
Status. At the time such Purchaser was offered the Shares, it was, and at the date hereof is, an “accredited investor”
as defined in Rule 501 under the Securities Act. Investor is not a registered broker dealer registered under Section 15(a) of the
Exchange Act, or a member of the Financial Industry Regulatory Authority Inc. (“FINRA”), or an entity engaged
in the business of being a broker-dealer. The Purchaser is not subject to a bad actor disqualification under Rule 506(d) of the
Securities Act.

 

(e)          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 Shares, 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 Shares and, at the present time, is able to afford a complete loss of such investment. Such Purchaser acknowledges
that it has not received any legal or tax advice from the Company or any of its representatives with respect the transactions contemplated
hereby.

 

(f)           General
Solicitation. Such Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication
regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general solicitation or general advertisement.

 

(g)          Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review any Company information and business
updates requested by Purchaser 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 Shares and the
merits and risks of investing in the Shares and; (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 has sought such accounting,
legal and tax advice as it has considered necessary to make an informed decision with respect to its acquisition of the Shares.

 

    	 	15	 

     

    

 

(h)          Certain
Trading Activities. As of the date hereof, other than with respect to the transactions contemplated herein, since the time
that such Purchaser was first contacted by the Company or any other Person regarding the transactions contemplated hereby, neither
the Purchaser nor any Affiliate of such Purchaser which (i) had knowledge of the transactions contemplated hereby, (ii) has or
shares discretion relating to such Purchaser’s investments or trading or information concerning such Purchaser’s investments,
including in respect of the Shares, and (iii) is subject to such Purchaser’s review or input concerning such Affiliate’s
investments or trading (collectively, “Trading Affiliates”) has directly or indirectly, nor has any Person acting
on behalf of or pursuant to any understanding with such Purchaser or Trading Affiliate, effected or agreed to effect any purchases
or sales of the securities of the Company (including, without limitation, any Short Sales involving the Company’s securities).
Notwithstanding the foregoing, in the case of a Purchaser and/or Trading Affiliate that is, individually or collectively, a multi-managed
investment bank or vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s or Trading Affiliate’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 or Trading Affiliate’s assets, the representation set forth above shall apply only
with respect to the portion of assets managed by the portfolio manager that have knowledge about the financing transaction contemplated
by this Agreement. Other than to other Persons party to this Agreement, their affiliates and each of their respective professional
advisors, such Purchaser maintained the confidentiality of all non-public information disclosed to it in connection with the transactions
contemplated hereby (including the existence and terms of such transactions) at all times prior to the issuance of the Press Release
(as defined below).

 

(i)           Brokers
and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest
or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of the Purchaser.

 

(j)           Independent
Investment Decision. Such Purchaser has independently evaluated the merits of its decision to purchase Shares pursuant to the
Transaction Documents, and such Purchaser confirms that it has not relied on the advice of any other Purchaser’s business
and/or legal counsel in making such decision. Such Purchaser understands that nothing in this Agreement or any other materials
presented by or on behalf of the Company to the Purchaser in connection with the purchase of the Shares constitutes legal, tax
or investment advice. Such Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed
necessary or appropriate in connection with its purchase of the Shares.

 

(k)          No
Governmental Review. Such Purchaser understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in
the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

 

(l)           Residency.
Such Purchaser’s residence (if an individual) or office in which its investment decision with respect to the Shares was made
(if an entity) are located at the address immediately below such Purchaser’s name on its signature page hereto.

 

(m)         Acknowledgment.
Each Purchaser acknowledges and agrees that such Purchaser has reviewed and considered prior to entering this Agreement the more
detailed information about the Company and the risk factors that may affect the realization of forward-looking statements set forth
in the Company’s filings with the SEC, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q filed
with the SEC.

 

    	 	16	 

     

    

 

The Company and each
of the Purchasers acknowledge and agree that no party to this Agreement has made or makes any representations or warranties with
respect to the transactions contemplated hereby other than those specifically set forth in this Article III and the Transaction
Documents.

 

ARTICLE
IV 

 

OTHER
AGREEMENTS OF THE PARTIES

 

4.1          Transfer
Restrictions.

 

(a)          The
Shares may only be disposed of in compliance with state and federal securities laws, including the requirement not to trade in
the Shares while in possession of material non-public information. In connection with any transfer of Shares other than pursuant
to an effective registration statement, to the Company or to an Affiliate of a Purchaser or in connection with a pledge as contemplated
in Section 4.1(c), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the
transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to
the Company, to the effect that such transfer does not require registration of such transferred Shares under the Securities Act.
As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have
the rights of a Purchaser under this Agreement and the Registration Rights Agreement.

 

(b)          The
Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Shares in the following
form:

 

THIS SECURITY HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER
OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES
ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

    	 	17	 

     

    

 

(c)          The
Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the Shares to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement
and the Registration Rights Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledged
or secured Shares to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company
and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further,
no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver
such reasonable documentation as a pledgee or secured party of Shares may reasonably request in connection with a pledge or transfer
of the Shares, including, if the Underlying Shares are subject to registration pursuant to the Registration Rights Agreement, the
preparation and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities Act or other applicable
provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder.

 

(d)          Certificates
evidencing the Underlying Shares shall not contain any legend (including the legend set forth in Section 4.1(b)), (i) while
a registration statement (including the Registration Statement) covering the resale of such Underlying Shares is effective under
the Securities Act, or (ii) following any sale of such Underlying Shares pursuant to Rule 144, or (iii) if such Underlying
Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public
information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to such securities and without volume or manner
of sale restrictions, or (iv) if such legend is not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue
a legal opinion to the Transfer Agent promptly after the Effective Date if required by the Transfer Agent to effect the removal
of the legend hereunder. The Company agrees that following the Effective Date or at such time as such legend is no longer required
under this Section 4.1(d), it will, no later than three Trading Days following the delivery by a Purchaser to the Company
or the Transfer Agent of a certificate representing Underlying Shares issued with a restrictive legend (such third Trading Day,
the “Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such
shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions
to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.1. Certificates for Underlying Shares
subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchasers by crediting the account of the
Purchaser’s prime broker with the Depository Trust Company System, if the Transfer Agent is a participant in the DWAC system,
and otherwise by physical delivery of certificates as directed by the Purchaser.

 

    	 	18	 

     

    

 

(e)          Each
Purchaser, severally and not jointly with the other Purchasers, agrees that the removal of the restrictive legend from certificates
representing Shares as set forth in this Section 4.1 is predicated upon the Company’s reliance that the Purchaser will
sell any Shares pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom, and that if Shares are sold pursuant to a Registration Statement, they will be sold in
compliance with the plan of distribution set forth therein.

 

4.2          Furnishing
of Information. For a period of one year after the date of this Agreement, 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. During this one-year period, if the Company is not required to file reports pursuant
to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144 such
information as is required for the Purchasers to sell the Shares under Rule 144. The Company further covenants that it will take
such further action as any holder of Shares may reasonably request, to the extent required from time to time to enable such Person
to sell such Shares without registration under the Securities Act within the requirements of the exemption provided by Rule 144.

 

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 could reasonably be expected to be integrated with the offer or sale of the Shares
in a manner that would require the registration under the Securities Act of the sale of the Shares to the Purchasers or that would
be integrated with the offer or sale of the Shares 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. On or before 9:00 a.m., New York City time, on the Business Day immediately following the date
hereof, the Company shall issue a press release (the “Press Release”) reasonably acceptable to the Purchasers
disclosing all material terms of the transactions contemplated hereby. On or before 5:30 p.m., New York City time, on the fourth
Trading Day immediately following the execution of this Agreement, the Company will file a Current Report on Form 8-K with the
Commission describing the terms of the Transaction Documents (and including as exhibits to such Current Report on Form 8-K the
material Transaction Documents (including, without limitation, this Agreement and the Registration Rights Agreement)). Notwithstanding
the foregoing, the Company shall not publicly disclose the name of any Purchaser or an Affiliate of any Purchaser, or include the
name of any Purchaser or an Affiliate of any Purchaser in any press release or filing with the Commission (other than the Registration
Statement) or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (i) as required
by federal securities law in connection with (A) any registration statement contemplated by the Registration Rights Agreement and
(B) the filing of final Transaction Documents (including signature pages thereto) with the Commission and (ii) to the extent such
disclosure is required by law, request of the Staff of the Commission or Trading Market regulations, in which case the Company
shall provide the Purchasers with prior written notice of such disclosure permitted under this subclause (ii). From and after the
issuance of the Press Release, no Purchaser shall be in possession of any material, non-public information received from the Company
or any of its officers, directors, employees or agents, that is not disclosed in the Press Release.

 

    	 	19	 

     

    

 

4.5          Indemnification
of Purchasers.

 

(a)          In
addition to the indemnity provided in the Registration Rights Agreement, the Company will indemnify and hold each Purchaser and
its directors, officers, stockholders, 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, stockholders,
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 person (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 (i) as a result of 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 (ii) arising out of, in connection with, or as a result
of the execution or delivery of this Agreement, any other Transaction Document or any agreement or instrument contemplated hereby
or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of
the transactions contemplated hereby or thereby. The Company will not be liable to any Purchaser Party under this Agreement 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.

 

(b)          Promptly
after receipt by any Person (the “Indemnified Person”) of notice of any demand, claim or circumstances which
would or might give rise to a claim or the commencement of any action, proceeding or investigation in respect of which indemnity
may be sought pursuant to Section 4.5(a), such Indemnified Person shall promptly notify the Company in writing and the Company
shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person, and shall
assume the payment of all fees and expenses; provided, however, that the failure of any Indemnified Person so to notify the Company
shall not relieve the Company of its obligations hereunder except to the extent that the Company is actually and materially and
adversely prejudiced by such failure to notify. In any such proceeding, any Indemnified Person shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i) the Company
and the Indemnified Person shall have mutually agreed to the retention of such counsel; (ii) the Company shall have failed promptly
to assume the defense of such proceeding and to employ counsel reasonably satisfactory to such Indemnified Person in such proceeding;
or (iii) in the reasonable judgment of counsel to such Indemnified Person, representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between them. The Company shall not be liable for any settlement
of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or conditioned.
Without the prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld, delayed or conditioned,
the Company shall not effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person
is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement
includes an unconditional release of such Indemnified Person from all liability arising out of such proceeding, does not admit
liability on the part of or attribute fault to any Indemnified Person and contains a provision requiring confidentiality with respect
to the facts and circumstances of the dispute and of the existence and amount of the settlement.

 

    	 	20	 

     

    

 

4.6          Reservation
of Preferred Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, a sufficient number of shares of Preferred Stock for the purpose of enabling the Company to issue Shares pursuant
to this Agreement.

 

4.7          Listing
or Quotation of Common Stock. The Company’s common stock is currently quoted on the NYSE-MKT and is not currently eligible
for listing or quotation on any other Trading Market. The Company hereby agrees to use best efforts to maintain the listing or
quotation of the Common Stock on a Trading Market, and prior to the Closing to list all of the Underlying Shares on such Trading
Market, as may be applicable. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading
Market, it will include in such application all of the Underlying Shares, and will take such other action as is necessary to cause
all of the Underlying Shares to be listed on such other Trading Market as promptly as possible. The Company will 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.

 

4.8          Equal
Treatment of Purchasers. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the
Transaction Documents. 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.

 

4.9          Confidentiality
After The Date Hereof. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time
as the transactions contemplated by this Agreement and such other material non-public information related to the Company in possession
of the Purchaser are publicly disclosed by the Company as described in Section 4.4, such Purchaser will maintain the confidentiality
of all non-public information disclosed to it in connection with the transactions contemplated hereby (including the existence
and terms of such transactions).

 

4.10        Delivery
of Shares After Closing. The Company shall deliver, or cause to be delivered, the respective Shares purchased by each Purchaser
to such Purchaser within three Trading Days of the Closing Date (unless such Purchaser has specified to the Company at the time
of execution of this Agreement that it shall settle “delivery versus payment” in which case such Shares shall be delivered
on or prior to the Closing Date).

 

    	 	21	 

     

    

 

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

 

4.12        Use
of Proceeds. The Company intends to use the net proceeds of this offering after payment of the expenses of the offering for
general corporate purposes and shall not use such proceeds for the satisfaction of any portion of the Company’s debt (other
than trade payables in the ordinary course of the Company’s business and prior practices), or to redeem any Common Stock
or Common Stock Equivalents.

 

4.13        Termination.
Notwithstanding anything herein to the contrary, this Agreement may be terminated at any time by any Purchaser (with respect to
the obligations of such Purchaser) or the Company, upon written notice to the other party, if the Closing shall not have occurred
on or before October 1, 2017 (the “Outside Date”); provided, however, that the right to terminate this Agreement
under this Section 4.13 shall not be available to any party whose (i) breach of any provision of this Agreement, (ii) failure to
comply with their obligations under this Agreement or (iii) actions not taken in good faith, shall have been the cause of, or shall
have resulted in, the failure of the Closing to occur on or prior to the Outside Date or the failure of a condition in Section
2.3 to be satisfied at such time.

 

ARTICLE
V

MISCELLANEOUS

 

5.1          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, stamp taxes and other taxes and duties levied in connection with the delivery of the Shares to the Purchasers.

 

5.2          Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof 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. At or after
the Closing, and without further consideration, the Company and the Purchasers will execute and deliver to the other such further
documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction
Documents.

 

    	 	22	 

     

    

 

5.3          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 email to the e-mail address set forth on the signature pages attached hereto 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 email to the e-mail
address 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 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.

 

5.4          Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment,
by the Company and each Purchaser. 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 either party to exercise any right hereunder in any manner
impair the exercise of any such right.

 

5.5          Headings
and Construction. 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. The language used in this Agreement will be deemed to be the language chosen
by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. This Agreement
shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring
any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents.

 

5.6          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 Shares, provided such transferee agrees in writing to be bound, with respect to the
transferred Shares, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.7          No
Third-Party Beneficiaries. 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.

 

5.8          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, 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 suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is 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 suit, 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.

 

    	 	23	 

     

    

 

5.9          Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Shares.

 

5.10        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 the other party, it being
understood that both 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.

 

5.11        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.

 

5.12        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 and materially 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.

 

    	 	24	 

     

    

 

5.13        Replacement
of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor,
a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company and the Transfer Agent
of such loss, theft or destruction and the execution by the holder thereof of a customary lost certificate affidavit of that fact
and an agreement to indemnify and hold harmless the Company and the Transfer Agent for any losses in connection therewith or, if
required by the Transfer Agent, a bond in such form and amount as is required by the Transfer Agent. The applicants for a new certificate
or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement
Shares. If a replacement certificate or instrument evidencing any Shares is requested due to a mutilation thereof, the Company
may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement.

 

5.14        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 agrees 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.

 

5.15        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.

 

5.16        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 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 their review and negotiation of the Transaction Documents. 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 the Purchasers.

 

    	 	25	 

     

    

 

5.17        No
Promotion. The Company agrees that it will not, and shall cause each of its Subsidiaries to not, without the prior written
consent of a Purchaser, use for advertising, publicity or other purposes the name of such Purchaser, its affiliates or any of their
respective partners or employees, nor any trade name, trademark, trade device, service mark, symbol or any abbreviation, contraction
or simulation thereof owned by such persons; it being understood that disclosure deemed necessary in regulatory filings does not
fall under this prohibition.  The Company further agrees that it shall obtain the written consent of such Purchaser prior
to the Company’s or any of its Subsidiaries’ issuance of any public statement detailing the purchase of Shares by Purchasers
pursuant to this Agreement.

 

5.18        Construction.
The parties agree that each of them and/or their respective counsel has 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 hereto.

 

5.19        Exculpation
Among Purchasers. Each Purchaser acknowledges that it is not relying upon any person, firm or corporation (including without
limitation any other Purchaser), other than the Company and its officers and directors (acting in their capacity as representatives
of the Company), in deciding to invest and in making its investment in the Company. Each Purchaser agrees that no other Purchaser
nor the respective controlling persons, officers, directors, partners, agents or employees of any other Purchaser shall be liable
to such Purchaser for any losses incurred by such Purchaser in connection with its investment in the Company.

 

5.20        Company
Acknowledgement. The Company acknowledges and agrees that (i) each of the Purchasers is participating in the transactions contemplated
by this Agreement and the other Transaction Documents at the Company’s request and the Company has concluded that such participation
is in the Company’s best interest and is consistent with the Company’s objectives and (ii) each of the Purchasers is
acting solely in the capacity of an arm’s length purchaser. The Company further acknowledges that no Purchaser is acting
or has acted as an advisor, agent or fiduciary of the Company (or in any similar capacity) with respect to this Agreement or the
other Transaction Documents and any advice given by any Purchaser or any of its respective representatives in connection with this
Agreement or the other Transaction Documents is merely incidental to the Purchasers’ purchase of Shares. The Company further
represents to each Purchaser that the Company’s decision to enter into this Agreement has been based solely on the independent
evaluation of the transactions contemplated hereby by the Company and its representatives.

 

5.21        Exercise
Limit.  Notwithstanding anything to the contrary set forth in this Agreement, the Company shall not be obligated
to issue any shares of Common Stock upon exercise of the Preferred Stock if the issuance of such shares of Common Stock would exceed
the aggregate number of shares of Common Stock that the Company may issue upon  conversion of the Preferred Stock to remain
in compliance with the Company’s obligations under the rules or regulations of the Trading Market, which rules and regulations
limit the amount of shares of Common Stock that the Company may issue upon conversion of the Preferred Stock to no more than an
aggregate of 19.99% of the number of shares outstanding on the Closing Date (the “Exchange Cap”), except that such
limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders as required by the applicable
rules of the Trading Market for issuances of Common Stock in excess of such amount, or (B) obtains a written opinion from outside
counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to majority stockholders.
In the event that the Company is not obligated, as a result of the operation of the immediately preceding sentence, to issue any
shares of Common Stock that it would have otherwise be required to issue upon conversion of Preferred Stock, then the Company shall
issue the number of shares of Common Stock that it is obligated issue after giving effect to the immediately preceding sentence
and, in addition, on the date of such issuance, shall pay to the holder exercising conversion of Preferred Stock an amount in cash
equal to the product of (a) the difference between (x) the number of shares of Common Stock that the Company is obligated issue
before giving effect to the immediately preceding sentence, minus (y) the number of shares of Common Stock that the Company is
obligated issue after giving effect to the immediately preceding sentence, multiplied by (b) the closing price of the Common Stock
on the Trading Market on the Trading Day immediately preceding the date on which the notice of conversion is delivered to the Company
by such holder.

 

 

(Signature Pages Follow)

 

    	 	26	 

     

    

 

IN WITNESS WHEREOF,
the undersigned has caused this Share Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated
above.

 

	SYNTHETIC BIOLOGICS, INC.	Address for Notice:
	 	 	 
	 	 	9605 Medical Center Drive, Suite 270
	 	 	Rockville, MD 20850
	By	/s/ Jeffrey L. Riley	 
	 	Name:  Jeffrey L. Riley	 
	 	Title:  Chief Executive Officer	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

     

     

    

 

IN WITNESS WHEREOF,
the undersigned has caused this Share Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated
above.

 

Name of Purchaser: MSD Credit Opportunity
Master Fund, L.P.

 

	Signature of Authorized Signatory of Purchaser:	/s/ Marcello Liguori

 

Name of Authorized Signatory: Marcello
Liguori

 

Title of Authorized Signatory: Managing
Director

 

Email Address of Purchaser: mliguori@msdcapital.com

 

	Address for Notice of Purchaser:	645 Fifth Avenue, 21st Floor
	 	New York, NY 10022
	 	Attn: Marcello Liguori

 

Address for Delivery of Shares for Purchaser (if not same as
above):

 

Goldman, Sachs & Co.

222 South Main Street, 11th Floor

Salt Lake City, UT 84101-2174

Phone: (801) 884-4435

Attn: Richard Hixson

 

	Subscription Amount: $12,000,000.00
	 
	Shares of Preferred Stock: 120,000 (conv. @ $0.54 into 22,222,222 shares)

 

     

     

    

 

Exhibit A

 

Certificate of Designation

 

     

     

    

 

Exhibit B

 

Registration Rights Agreement

 

     

     

    

 

Exhibit C

 

Form of Legal opinion of Company Counsel
and Nevada Counsel

 

Based upon and subject to the foregoing,
it is our opinion as of this date that:

 

1.           Based
solely upon the certificate of good standing, dated [______________], 2017, issued by the State of Nevada, the Company is a corporation
validly existing and in good standing under the laws of the State of Nevada.

 

2.           The
Company has the corporate power and authority to execute, deliver and perform its obligations under the Transaction Documents,
including, without limitation, to issue and deliver the Shares as contemplated by the Agreement. Each of the Transaction Documents
has been duly authorized by all necessary corporate action and each has been duly executed and delivered on behalf of the Company,
and each is a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

 

3.           The
execution and delivery by the Company of the Transaction Documents, and the performance by the Company of its obligations thereunder
as of the date hereof, do not violate the Company’s Articles of Incorporation or Bylaws, do not constitute a default under
or a material breach of any material agreement of the Company that has not otherwise been waived and, to our knowledge, do not
(a) violate any U. S. Federal or state statute, rule or regulation applicable to the transactions contemplated by the Transaction
Documents or (b) violate any order, writ, judgment, injunction, decree, determination or award which has been entered against the
Company and of which such counsel is aware, except, with respect to clauses (a) and (b), where such violation would not materially
and adversely affect the Company.

 

4.           The
Company has the authorized capital stock as set forth in the SEC Documents. The Shares have been duly authorized, and when issued
and sold in accordance with the Share Purchase Agreement, will be validly issued and non-assessable.

 

5.           No
approval, authorization or other action by, or notice to or filing with, any governmental authority is required in connection with
the execution, delivery and performance by the Company of the Transaction Documents, except (a) those that have been obtained
or made and are in full force and effect, and (b) any filings required by Regulation D promulgated under the Securities Act
of 1933, as amended, or by state securities laws.

 

6.           To
our knowledge, there is no action, proceeding or investigation pending or overtly threatened against the Company before any court
or administrative agency that questions the validity of the Transaction Documents or that could reasonably be expected to result,
either individually or in the aggregate, in a material adverse effect on the Company.

 

7.           Assuming
the truth and accuracy of the representations made by the Company and the Purchasers in the Share Purchase Agreement, the sale
and issuance of the Shares in conformity with the terms of the Transaction Documents constitute transactions that are exempt from
the registration requirements of the Securities Act of 1933, as amended, subject to the timely filing of a Form D pursuant to Regulation
D.

 

     

     

    

 

8.           The
Company is not, after giving effect to the issuance of the Shares, an “investment company” as defined in the Investment
Company Act of 1940, as amended.

 

9.           To
our knowledge, there are no written contracts, agreements or understandings between the Company and any person granting such person
the right (other than rights which have been waived in writing or otherwise satisfied) to require the Company to include any securities
of the Company in any registration statement.EX-10.1

 Exhibit 10.1 
  

FORM OF 
 CONTRIBUTION,
CONVEYANCE AND ASSUMPTION AGREEMENT 
 by and among 

HOWARD MIDSTREAM ENERGY PARTNERS, LLC 

PIP5 SKYLINE MLP HOLDINGS LLC 

HOWARD MIDSTREAM GP, LLC 

HOWARD MIDSTREAM PARTNERS, LP 

HOWARD MIDSTREAM OPERATING, LLC 

HOWARD MIDSTREAM OPCO GP, LLC 

and 
 HOWARD MIDSTREAM OPCO, LP

 dated as of 

[●], 2017 
  

 TABLE OF CONTENTS 

 

							
	 	 	  	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	2	 
			
	 1.1
	 	Defined Terms	  	 	2	 
	 1.2
	 	References and Rules of Construction	  	 	2	 
		
	 ARTICLE II CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS
	  	 	3	 
			
	 2.1
	 	Execution of the Partnership Agreement	  	 	3	 
	 2.2
	 	Contribution of the Operating Interests	  	 	3	 
	 2.3
	 	Issuance of Incentive Distribution Rights to the General Partner 	  	 	4	 
	 2.4
	 	Contribution of the Contributed Interests to the Partnership	  	 	4	 
	 2.5
	 	Redemption of AIMCo’s Series B Preferred Units	  	 	4	 
	 2.6
	 	Public Cash Contribution and Purchase	  	 	4	 
	 2.7
	 	Payment of Transaction Expenses by the Partnership	  	 	5	 
	 2.8
	 	Use of Proceeds	  	 	5	 
	 2.9
	 	Conveyance of the Contributed Interests to the Operating Company	  	 	5	 
	 2.10
	 	Execution of the OpCo GP Agreement	  	 	5	 
	 2.11
	 	Execution of the OpCo LP Agreement	  	 	5	 
	 2.12
	 	Redemption of the Initial LP Interest from the Partnership and Return of Initial Capital Contribution	  	 	5	 
		
	 ARTICLE III EXERCISE OF OVER-ALLOTMENT OPTION
	  	 	5	 
			
	 3.1
	 	Exercise of Over-Allotment Option in Whole	  	 	5	 
	 3.2
	 	Exercise of Over-Allotment Option in Part	  	 	6	 
	 3.3
	 	Deferred Issuance to HEP	  	 	6	 
		
	 ARTICLE IV FURTHER ASSURANCES
	  	 	6	 
		
	 ARTICLE V ORDER OF COMPLETION AND EFFECTIVENESS OF TRANSACTIONS
	  	 	6	 
			
	 5.1
	 	Order of Completion of Transactions	  	 	6	 
	 5.2
	 	Effectiveness of Transactions	  	 	7	 
		
	 ARTICLE VI MISCELLANEOUS
	  	 	7	 
			
	 6.1
	 	Taxes; Costs	  	 	7	 
	 6.2
	 	Assignment; Binding Effect	  	 	7	 
	 6.3
	 	No Third Party Rights	  	 	7	 
	 6.4
	 	Entire Agreement	  	 	7	 
	 6.5
	 	Amendment	  	 	7	 
	 6.6
	 	Applicable Law	  	 	7	 
	 6.7
	 	Parties in Interest	  	 	8	 
	 6.8
	 	Preparation of Agreement	  	 	8	 

  
 i 

							
	 6.9
	 	Severability	  	 	8	 
	 6.10
	 	Counterparts	  	 	8	 
	 6.11
	 	Deed; Bill of Sale; Assignment	  	 	8	 
			
	 APPENDIX
	 		  			
			
	 Appendix I
	 	Definitions	  			

  
 ii 

 CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT 

This CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of [●], 2017 (as may be amended, supplemented or restated from time to
time, this “Agreement”), is by and among HOWARD MIDSTREAM ENERGY PARTNERS, LLC, a Delaware limited liability company (“HEP”), PIP5 SKYLINE MLP HOLDINGS LLC, a Delaware limited liability
company (“AIMCo”), HOWARD MIDSTREAM GP, LLC, a Delaware limited liability company (the “General Partner”), HOWARD MIDSTREAM PARTNERS, LP, a Delaware limited partnership (the
“Partnership”), HOWARD MIDSTREAM OPERATING, LLC, a Delaware limited liability company (the “Operating Company”), HOWARD MIDSTREAM OPCO GP, LLC, a Delaware limited liability company
(“OpCo GP”), and HOWARD MIDSTREAM OPCO, LP, a Delaware limited partnership (“OpCo LP”) (each, a “Party” and, collectively, the “Parties”). 

RECITALS 
 WHEREAS,
the General Partner and HEP formed the Partnership pursuant to the Delaware Revised Uniform Limited Partnership Act (as amended from time to time, the “DRULPA”) to engage in any business activity that is approved by the
General Partner and that lawfully may be conducted by a limited partnership organized under the DRULPA, all as more fully described in the Prospectus (as defined herein); 

WHEREAS, in connection with the closing of the Offering (as defined herein), HEP desires to contribute, assign, transfer and deliver to
the Partnership, and the Partnership desires to acquire from HEP, (i) 100% of the limited liability company interests in OpCo GP (the “OpCo GP Interests”), (ii) [●]% of the limited partner interests in OpCo LP (together
with the OpCo GP Interests, the “Contributed Interests”) and (iii) $[●] million, and, in exchange, the Partnership desires to issue to HEP the interests set forth in Section 2.4 and assume in
full the $[●] million outstanding balance of the Term Loan; 
 WHEREAS, HEP desires to transfer to AIMCo the number of Common
Units (as defined herein) set forth in Section 2.5 in partial redemption of the Series B Preferred Interests (as defined herein) in HEP held by AIMCo, and, upon receipt of such Common Units, AIMCo desires to sell [●]
Common Units representing an approximate [●]% limited partner interest in the Partnership to the public, through the Underwriters, as part of the Offering; 

WHEREAS, in order to accomplish the objectives and purposes in the preceding recitals, each of the following actions has been taken
prior to the date hereof: 
 1. On November 2, 2016, HEP formed the General Partner under the Delaware Limited Liability Company Act
(the “Delaware LLC Act”) and contributed $1,000 in exchange for 100% of the limited liability company interests in the General Partner; 

2. On November 2, 2016, HEP, as the organizational limited partner, and the General Partner, as the general partner, formed the
Partnership under the DRULPA, HEP contributed $2,000 in exchange for 100% of the limited partner interests (the “Initial LP Interest”) in the Partnership and the General Partner received a
non-economic general partner interest in the Partnership; 

 3. On August 17, 2017, the Partnership formed the Operating Company under the Delaware LLC
Act and contributed $1,000 in exchange for 100% of the limited liability company interests in the Operating Company; 
 4. On
August 17, 2017, HEP formed OpCo GP under the Delaware LLC Act and contributed $1,000 in exchange for the OpCo GP Interests; and 
 5.
On August 17, 2017, HEP, as the organizational limited partner, and OpCo GP, as the general partner, formed OpCo LP under the DRULPA, HEP contributed $1,000 in exchange for 100% of the limited partner interests in OpCo LP and OpCo GP received a
non-economic general partner interest in OpCo LP. 
 WHEREAS, concurrently with the
consummation of the transactions contemplated hereby, each of the matters provided for in Article II will occur in accordance with its respective terms; 

WHEREAS, each of the matters provided for in Article III will occur in accordance with its respective terms; and 

WHEREAS, the respective Parties have taken or caused to be taken all limited liability company and partnership action, as the case may
be, required to approve the transactions contemplated by this Agreement. 
 NOW, THEREFORE, in consideration of the premises and the
covenants, conditions and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

ARTICLE I 

DEFINITIONS 
 As used in
this Agreement, the following terms shall have the meanings set forth below: 
 1.1 Defined
Terms. For purposes hereof, the capitalized terms used herein and not otherwise defined have the meanings set forth in Appendix I. 

1.2 References and Rules of Construction. All references in this Agreement to Appendices,
Articles, Sections, subsections and other subdivisions refer to the corresponding Appendices, Articles, Sections, subsections and other subdivisions of or to this Agreement unless expressly provided otherwise. Titles appearing at the beginning of
any Appendices, Articles, Sections, subsections and other subdivisions of this Agreement are for convenience only, do not constitute any part of this Agreement and shall be disregarded in construing the language hereof. The words “this
Agreement,” “herein,” “hereby,” “hereunder” and “hereof,” and words of similar import, refer to this Agreement as a whole and not to any particular Appendix, Article, Section, subsection or other
subdivision unless expressly so limited. The word “including” (in its various forms) means “including without limitation.” All references to “$” or “dollars” shall be deemed references to United States
dollars. Each accounting term not defined herein will have the meaning given to it under generally accepted accounting principles in the United States (“GAAP”). Pronouns in masculine, feminine or neuter genders shall be
construed to state and 

  
 2 

 
include any other gender, and words, terms and titles (including terms defined herein) in the singular form shall be construed to include the plural and vice versa, unless the context otherwise
requires. References to any Law mean such Law as it may be amended from time to time. 
 ARTICLE II

 CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS 

Each of the following transactions set forth in this Article II shall be completed in the order set forth herein, subject to, and in
accordance with, the provisions of Article V: 
 2.1 Execution of the Partnership
Agreement. The General Partner and HEP, as the organizational limited partner, shall amend and restate the Original Partnership Agreement by executing and delivering the Partnership Agreement, with such changes as the General Partner and HEP
may agree. 
 2.2 Contribution of the Operating Interests. HEP hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to OpCo LP (i) its 100% equity interests in (A) Howard Marketing LLC (“Howard Marketing”), (B) Texas Pipeline Processing, LLC (“Texas
Processing”), (C) Texas Pipeline LLC (“Texas LLC”), (D) Texas Pipeline Webb County Rich System, LLC (“Texas Rich”), (E) HEP Pennsylvania Gathering, LLC (“HEP
Gathering”), (F) Texas Pipeline Webb County Lean System, LLC (“Texas Lean”), (G) Maverick Terminals, LLC (“Maverick”) and (H) HEP Tioga Gathering, LLC
(“Tioga”), (ii) its 50% equity interest in Texas Gas Marketing LLC (“Texas Gas”), (iii) its 48% equity interest in Live Oak Midstream Partners, LLC (“LOMP”) and (iv) its
100% voting interest and 83.3% economic interest in Live Oak Rail Partners, LLC (“LORP” and, together with Howard Marketing, Texas Processing, Texas LLC, Texas Rich, HEP Gathering, Texas Lean, Maverick, Tioga, Texas Gas and
LOMP, the “Operating Subsidiaries”) as a capital contribution. Notwithstanding anything in the (i) Limited Liability Company Agreement of Howard Marketing, dated effective as of May 22, 2013 (the “Howard
Marketing Agreement”), (ii) Limited Liability Company Agreement of Texas Processing, dated effective as of July 26, 2012 (the “Texas Processing Agreement”), (iii) Amended and Restated Limited Liability
Company Agreement of Texas LLC, dated effective as of June 22, 2011 (the “Texas LLC Agreement”), (iv) Limited Liability Company Agreement of Texas Rich, dated effective as of March 5, 2012 (the “Texas
Rich Agreement”), (v) Limited Liability Company Agreement of HEP Gathering, dated effective as of December 11, 2014 (the “HEP Gathering Agreement”), (vi) Amended and Restated Limited Liability
Company Agreement of Texas Lean, dated effective as of April 5, 2012 (the “Texas Lean Agreement”), (vii) Amended and Restated Limited Liability Company Agreement of Maverick, dated effective as of May 23, 2013
(the “Maverick Agreement”), and (viii) Limited Liability Company Agreement of Tioga, dated effective April 22, 2015 (the “Tioga Agreement”), to the contrary, as applicable, pursuant to this
Agreement, OpCo LP is hereby admitted as a member of each of Howard Marketing, Texas Processing, Texas LLC, Texas Rich, HEP Gathering, Texas Lean, Maverick and Tioga, and agrees that it is bound by each of the Howard Marketing Agreement, Texas
Processing Agreement, Texas LLC 

  
 3 

 
Agreement, Texas Rich Agreement, HEP Gathering Agreement, Texas Lean Agreement, Maverick Agreement and Tioga Agreement as the sole member of Howard Marketing, Texas Processing, Texas LLC, Texas
Rich, HEP Gathering, Texas Lean, Maverick and Tioga, respectively. In accordance with the provisions of (i) the Second Amended and Restated Limited Liability Company Agreement of Texas Gas, dated as of July 25, 2013 (the “Texas Gas
Agreement”), (ii) the Amended and Restated Limited Liability Company Agreement of LOMP, dated as of August 1, 2014 (the “LOMP Agreement”), and (iii) the Amended and Restated Limited Liability Company
Agreement of LORP, dated effective as of December 21, 2012 (the “LORP Agreement”), effective at the time of, and in the order of events set forth within, this Agreement, OpCo LP is being admitted as a member of Texas
Gas, LOMP and LORP and OpCo LP has agreed to, and hereby confirms its agreement to, be bound by the Texas Gas Agreement, the LOMP Agreement and the LORP Agreement. HEP hereby ceases to be a member of each Operating Subsidiary immediately following
OpCo LP’s admission to each as described in this Section 2.2 and each Operating Subsidiary hereby continues without dissolution. 

2.3 Issuance of Incentive Distribution Rights to the General Partner. The Partnership hereby
issues to the General Partner, and the General Partner hereby accepts, 100% of the Partnership’s Incentive Distribution Rights. 
 2.4
Contribution of the Contributed Interests to the Partnership. Notwithstanding anything to the contrary in the Original OpCo GP Agreement, or the Original OpCo LP Agreement,
HEP hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the Partnership all right, title and interest in and to the Contributed Interests and $[●] million in cash, as a capital contribution, in exchange
for (a) [●] Common Units representing an approximate [●]% limited partner interest in the Partnership (based on an aggregate of [●] Common Units and Subordinated Units to be outstanding after the completion of the Offering), (b)
[●] Subordinated Units representing a 50.0% limited partner interest in the Partnership (based on an aggregate of [●] Common Units and Subordinated Units to be outstanding after the completion of the Offering) and (c) the
Partnership’s assumption of the outstanding balance of $[●] million under the Term Loan. Notwithstanding anything to the contrary in the Original OpCo GP Agreement or the Original OpCo LP Agreement, the Partnership is hereby admitted as a
limited partner of OpCo LP and a member of OpCo GP, the Partnership agrees to be bound by the Original OpCo GP Agreement and the Original OpCo LP Agreement, HEP ceases to be a member of OpCo GP and OpCo GP and OpCo LP are continued without
dissolution. 
 2.5 Redemption of AIMCo’s Series B Preferred
Units. HEP shall transfer [●] Common Units (the “AIMCo Common Units”) representing an approximate [●]% limited partner interest in the Partnership (based on an aggregate of [●] Common Units and
Subordinated Units to be outstanding after the completion of the Offering) to AIMCo to redeem [●] Series B Preferred Units in HEP owned by AIMCo. 

2.6 Public Cash Contribution and Purchase. The Parties acknowledge that, in connection with the
Offering, public investors, through the Underwriters, have (i) purchased from AIMCo [●] of the AIMCo Common Units for $[●] in cash and (ii) made a capital contribution to the Partnership of $[●] in cash in exchange for
[●] Common Units which, 

  
 4 

 
together with the AIMCo Common Units, represent an approximate [●]% limited partner interest in the Partnership (based on an aggregate of [●] Common Units and Subordinated Units to be
outstanding after the completion of the Offering), and such public investors are being admitted to the Partnership as limited partners in connection therewith. 

2.7 Payment of Transaction Expenses by the Partnership. In connection with the closing of the
Offering, the Partnership will pay (a) transaction expenses in the amount of approximately $[●] million, excluding the underwriting discount of approximately $[●] million in the aggregate from the sale of the Firm Units, and
(b) an aggregate structuring fee equal to [●]% of the gross proceeds of the Offering payable to Barclays Capital Inc. and a structuring fee equal to $[●] payable to Tudor, Pickering, Holt & Co. Advisors, LLC (together, the
“Structuring Fee”). 
 2.8 Use of Proceeds. The Partnership shall
repay the outstanding balance of $[●] million under the Term Loan assumed by the Partnership as set forth in Section 2.4. 

2.9 Conveyance of the Contributed Interests to the Operating Company. Notwithstanding anything
to the contrary in the Original OpCo GP Agreement or the Original OpCo LP Agreement, the Partnership hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the Operating Company all right, title and interest in
and to all of the Contributed Interests, as a capital contribution. Notwithstanding anything in the Original OpCo GP Agreement to the contrary, pursuant to this Agreement, (i) the Operating Company is hereby admitted as a member of OpCo GP and
agrees that it is bound by the Original OpCo GP Agreement as the sole member of OpCo GP, (ii) the Partnership hereby ceases to be a member of OpCo GP immediately following the Operating Company’s admission as a member of OpCo GP as
described in (i), and (iii) OpCo GP hereby continues without dissolution with the Operating Company as its sole member. Notwithstanding anything in the Original OpCo LP Agreement to the contrary, pursuant to this Agreement, (i) the
Operating Company is hereby admitted as a limited partner of OpCo LP and agrees that it is bound by the Original OpCo LP Agreement, (ii) the Partnership hereby ceases to be a limited partner of OpCo LP immediately following the Operating
Company’s admission as a limited partner as described in (i), and (iii) OpCo LP hereby continues without dissolution with the Operating Company as a limited partner. 

2.10 Execution of the OpCo GP Agreement. The Operating Company, as sole member, shall amend and
restate the Original OpCo GP Agreement by executing and delivering the OpCo GP Agreement, with such changes as the Operating Company may determine. 

2.11 Execution of the OpCo LP Agreement. OpCo GP, as general partner, the Operating Company, as
a limited partner, and HEP, as the organizational limited partner, shall amend and restate the Original OpCo LP Agreement by executing and delivering the OpCo LP Agreement, with such changes as the Operating Company, HEP and OpCo GP may agree. 

2.12 Redemption of the Initial LP Interest from the Partnership and Return of Initial Capital
Contribution. The Partnership hereby redeems the Initial LP Interest held by HEP and hereby refunds and distributes to HEP the initial contribution, in the amount of $2,000, made by HEP in connection with the formation of the Partnership,
along with any interest or other profit that resulted from the investment or other use of such initial contribution. 
 
ARTICLE III 
 EXERCISE OF OVER-ALLOTMENT OPTION 

3.1 Exercise of Over-Allotment Option in Whole. If the Over-Allotment Option is exercised in
whole, public investors, through the Underwriters, will purchase from the Partnership an additional [●] Common Units (the “Option Units”) for $[●] in cash, the Option Units representing an approximate [●]%
limited partner interest in the Partnership (based on an aggregate of [●] Common Units and Subordinated Units to be outstanding after the completion of the Offering). The Partnership shall distribute the proceeds from the sale of the Option
Units to HEP. 

  
 5 

 3.2 Exercise of Over-Allotment Option in Part. If
the Over-Allotment Option is exercised in part, public investors, through the Underwriters, will purchase from the Partnership the number of Option Units set forth in the notice of exercise delivered by the Underwriters to the Partnership at the
price per Common Unit set forth in the Prospectus, net of the underwriting discount. The Partnership shall distribute the proceeds from the sale of the Option Units to HEP. 

3.3 Deferred Issuance to HEP. Upon the expiration of the Option Period, the Partnership shall
issue any Option Units not purchased by the public investors, through the Underwriters, to HEP for no additional consideration as part of the contribution transactions described in Section 2.4. 

ARTICLE IV 

FURTHER ASSURANCES 
 4.1
From time to time after the date hereof, and without any additional consideration, the Parties agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances
and other documents, and to do all such other acts and things, all in accordance with applicable Law, as may be necessary or appropriate to (i) more fully assure that the applicable Parties own all of the properties, rights, titles, interests,
estates, remedies, powers and privileges granted by this Agreement, or which are intended to be so granted, (ii) more fully and effectively vest in the applicable Parties and their respective successors and assigns beneficial and record title
to the interests contributed, assigned, transferred and delivered by this Agreement, or which are intended to be so contributed, assigned, transferred and delivered and (iii) more fully and effectively carry out the purposes and intent of this
Agreement. 
 ARTICLE V 

ORDER OF COMPLETION AND EFFECTIVENESS OF TRANSACTIONS 

5.1 Order of Completion of Transactions. The transactions provided for in
Section 2.1 through Section 2.4 shall be completed as of the Effective Time in the order set forth in Article II. The transactions provided for in Section 2.5
through Section 2.12 shall be completed as of the Closing Time in the order set forth in Article II. The transactions provided for in Article III shall be completed upon the exercise of the Over-Allotment
Option or the expiration of the Option Period, as applicable. 

  
 6 

 5.2 Effectiveness of Transactions. Notwithstanding
anything contained in this Agreement to the contrary, (a) none of the provisions of Section 2.1 through Section 2.4 shall be operative or have any effect until the Effective Time, and
(b) none of the provisions of Section 2.5 through Section 2.12 shall be operative or have any effect until the Closing Time and (c) none of the provisions of Article III shall be
operative or have any effect until the exercise of the Over-Allotment Option or the expiration of the Option Period, as applicable, at which respective times all such applicable provisions shall be effective and operative in accordance with
Section 5.1 without further action by any Party. 
 ARTICLE VI 

MISCELLANEOUS 
 6.1 
Taxes; Costs. Except for the transaction expenses payable by the Partnership as set forth in Section 2.7, HEP shall pay all expenses, fees and costs, including all sales, use and similar taxes arising out of the
contributions, distributions, conveyances and deliveries to be made under Article II and shall pay all documentary, filing, recording, transfer, deed and conveyance taxes and fees required in connection therewith. In addition, HEP shall be
responsible for all costs, liabilities and expenses (including court costs and reasonable attorneys’ fees) incurred in connection with the implementation of any conveyance or delivery pursuant to Article IV (to the extent related to any
of the contributions, distributions, conveyances and deliveries to be made under Article II). 
 6.2 
Assignment; Binding Effect. This Agreement may not be assigned by any Party, in whole or in part, without the prior written consent of the other Parties. No assignment hereunder by any Party shall relieve such Party of any obligations
and responsibilities hereunder. This Agreement shall be binding upon and inure to the benefit of the Parties and, to the extent permitted by this Agreement, their successors, legal representatives and permitted assigns. 

6.3 No Third Party Rights. The provisions of this Agreement are intended to bind the Parties as
to each other and are not intended to and do not create rights in any other Person or confer upon any other Person any benefits, rights or remedies, and no Person is or is intended to be a third party beneficiary of any of the provisions of this
Agreement. 
 6.4 Entire Agreement. This Agreement and the Omnibus Agreement constitute the
entire agreement of the Parties and their Affiliates relating to the transactions contemplated hereby and supersede all provisions and concepts contained in all prior letters of intent, memoranda, agreements or communications between the Parties or
their Affiliates relating to the transactions contemplated hereby. 
 6.5 Amendment. This
Agreement may be amended only by an instrument in writing executed by the Parties and expressly identified as an amendment or modification. 

6.6 Applicable Law. This Agreement shall be subject to and governed by the laws of the State of
Delaware, excluding any conflicts-of-law rule or principle that might refer the 

  
 7 

 
construction or interpretation of this Agreement to the laws of another state. EACH OF THE PARTIES HERETO AGREES THAT THIS AGREEMENT INVOLVES AT LEAST U.S. $100,000.00 AND THAT THIS AGREEMENT HAS
BEEN ENTERED INTO IN EXPRESS RELIANCE UPON 6 Del. C. § 2708. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES (i) TO BE SUBJECT TO THE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND OF THE FEDERAL COURTS SITTING
IN THE STATE OF DELAWARE AND (ii) TO THE EXTENT SUCH PARTY IS NOT OTHERWISE SUBJECT TO SERVICE OF PROCESS IN THE STATE OF DELAWARE, TO APPOINT AND MAINTAIN AN AGENT IN THE STATE OF DELAWARE AS SUCH PARTY’S AGENT FOR ACCEPTANCE OF LEGAL
PROCESS AND TO NOTIFY THE OTHER PARTIES OF THE NAME AND ADDRESS OF SUCH AGENT. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 
 6.7 Parties in
Interest. Except as expressly set forth in this Agreement, nothing in this Agreement shall entitle any Person other than the Parties to any claim, cause of action, remedy or right of any kind. 

6.8 Preparation of Agreement. All of the Parties and their respective counsels participated in
the preparation of this Agreement. In the event of any ambiguity in this Agreement, it is the intent of the parties that no presumption shall arise based on the identity of the draftsman of this Agreement. 

6.9 Severability. If any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any adverse manner to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 

6.10 Counterparts. This Agreement may be executed in any number of counterparts, and each such
counterpart hereof shall be deemed to be an original instrument, but all of such counterparts shall constitute for all purposes one agreement. Any signature hereto delivered by a Party by electronic mail shall be deemed an original signature hereto.

 6.11 Deed; Bill of Sale; Assignment. To the extent required and permitted by applicable
Law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of the assets and interests referenced herein. 

[Remainder of page intentionally left blank.] 

  
 8 

 IN WITNESS WHEREOF, the Parties to this Agreement have caused it to be duly executed as of the
date first above written. 

 

			
	HEP:
	
	HOWARD MIDSTREAM ENERGY PARTNERS, LLC

			
	  
 By:  
	 	 

			
	 Name:
 Title:

	
	PARTNERSHIP:
	
	HOWARD MIDSTREAM PARTNERS, LP
	
	By: Howard Midstream GP, LLC, its general partner
		 	

			
	By:  	 	 

			
	 Name:
 Title:

	
	OPCO LP:
	
	Howard Midstream OpCo, LP
	
	By: Howard Midstream OpCo GP, LLC, its general partner
		 	

			
	  
 By:  
	 	 

			
	 Name:
 Title:

 

			
	GENERAL PARTNER:
	
	HOWARD MIDSTREAM GP, LLC

			
	  
 By:  
	 	  

			
	 Name:
 Title:

	
	OPERATING COMPANY:
	
	HOWARD MIDSTREAM OPERATING, LLC

			
	  
 By:  
	 	  

			
	 Name:
 Title:

		 	
		 	
	
	OPCO GP:
	
	Howard Midstream OpCo GP, LLC

			
	  
 By:  
	 	  

			
	 Name:
 Title:

		
		 	
		 	

 
 

  
 Signature Page to

 Contribution, Conveyance and Assumption Agreement 

			
	 AIMCo:

	
	 PIP5 SKYLINE MLP HOLDINGS
LLC

			
		
	  
 By:  
	 	 

			
	 Name:

Title:

  
 10 

 APPENDIX I 

Definitions 

“Affiliate” means, with respect to any Person, any other Person that directly, or indirectly through one or more
intermediaries, Controls, is Controlled by, or is Under Common Control With, such Person. 
 “Agreement” is defined
in the Preamble. 
 “AIMCo” is defined in the Preamble. 

“AIMCo Common Units” is defined in Section 2.5. 

“Closing Date” means the first date on which Common Units are sold by the Partnership and AIMCo to the Underwriters
pursuant to the provisions of the Underwriting Agreement. 
 “Closing Time” means the time of closing on the Closing
Date pursuant to the Underwriting Agreement. 
 “Commission” means the United States Securities and Exchange
Commission. 
 “Common Unit” has the meaning given such term in the Partnership Agreement. 

“Contributed Interests” is defined in the Recitals. 

“Control” (including the terms “Controlled” and “Under Common Control
With”) means with respect to any Person, the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting shares, by contract, or
otherwise. 
 “Delaware LLC Act” is defined in the Recitals. 

“DRULPA” is defined in the Recitals. 

“Effective Time” means [12:01 a.m.] Eastern Time on the Closing Date. 

“Existing Credit Agreement” means that certain Fourth Amended and Restated Credit Agreement, dated as of
April 10, 2015, by and among HEP, the Royal Bank of Canada, and the other parties thereto. 
 “Firm Units”
means the [●] Common Units to be issued and sold to the Underwriters pursuant to the Underwriting Agreement. 

“GAAP” is defined in Section 1.2. 

“General Partner” is defined in the Preamble. 

  
 Appendix I-1 

 “Governmental Authority” means any federal, state, local, municipal,
tribal or other government; any governmental, regulatory or administrative agency, commission, body or other authority exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power;
and any court or governmental tribunal, including any tribal authority having or asserting jurisdiction. 
 “HEP” is
defined in the Preamble. 
 “HEP Gathering” is defined in Section 2.2. 

“HEP Gathering Agreement” is defined in Section 2.2. 

“Howard Marketing” is defined in Section 2.2. 

“Howard Marketing Agreement” is defined in Section 2.2. 

“Incentive Distribution Rights” has the meaning given such term in the Partnership Agreement. 

“Initial LP Interest” is defined in the Recitals. 

“Law” means any applicable statute, law, rule, regulation, ordinance, order, code, ruling, writ, injunction, decree or
other official act of or by any Governmental Authority. 
 “LOMP” is defined in
Section 2.2. 
 “LOMP Agreement” is defined in Section 2.2. 

“LORP” is defined in Section 2.2. 

“LORP Agreement” is defined in Section 2.2. 

“Maverick” is defined in Section 2.2. 

“Maverick Agreement” is defined in Section 2.2. 

“Offering” means the initial offering and sale of Common Units to the public (including the offer and sale of Common
Units pursuant to the Over-Allotment Option), as described in the Registration Statement. 
 “Omnibus Agreement”
means that certain Omnibus Agreement by and among HEP, HEP Services, LLC, the Partnership, the General Partner, the Operating Company, OpCo LP and OpCo GP, dated as of the date hereof, as may be amended from time to time. 

“OpCo GP” is defined in the Preamble. 

“OpCo GP Agreement” means the Amended and Restated Limited Liability Company Agreement of OpCo GP, dated effective as
of [    ], 2017, as the same may be amended from time to time. 
 “OpCo GP Interests” is defined
in the Recitals. 

  
 Appendix I-2 

 “OpCo LP” is defined in the Preamble. 

“OpCo LP Agreement” means the Amended and Restated Agreement of Limited Partnership of OpCo LP, dated effective as of
[●], 2017, as the same may be amended from time to time. 
 “Operating Company” is defined in the Preamble.

 “Operating Subsidiaries” is defined in Section 2.2. 

“Option Period” means the period from the Closing Date to and including the date that is 30 days after the Closing
Date. 
 “Original OpCo GP Agreement” means that certain Limited Liability Company Agreement of OpCo GP, dated
effective as of August 17, 2017. 
 “Original OpCo LP Agreement” means that certain Agreement of Limited Partnership
of OpCo LP, dated effective as of [●], 2017. 
 “Original Partnership Agreement” means that certain Agreement
of Limited Partnership of the Partnership, dated effective as of November 14, 2016. 
 “Option Units” is
defined in Section 3.1. 
 “Over-Allotment Option” means the option granted to the
Underwriters by the Partnership and AIMCo pursuant to Section [●] of the Underwriting Agreement. 

“Partnership” is defined in the Preamble. 

“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of the Partnership,
dated as of the Closing Date, substantially in the form attached as Appendix A to the Prospectus, as the same may be amended from time to time. 

“Party” and “Parties” are defined in the Preamble. 

“Person” means any individual, corporation, company, partnership, limited partnership, limited liability company,
trust, estate, Governmental Authority or any other entity. 
 “Prospectus” means the final prospectus relating to
the Offering dated [●], 2017 and filed by the Partnership with the Commission pursuant to Rule 424 of the Securities Act on [●], 2017. 

“Registration Statement” means the Registration Statement on Form S-1 (File No. 333-[●]), as amended, filed by the Partnership with the Commission under the Securities Act to register the offering and sale of the Common Units in the Offering. 

“Securities Act” means the Securities Act of 1933, as amended, supplemented or restated from time to time, and any
successor to such statute. 

  
 Appendix I-3 

 “Series B Preferred Units” has the meaning given such term in the Eighth
Amended and Restated Limited Liability Company Agreement of HEP, dated as of March 6, 2017. 
 “Structuring
Fee” is defined in Section 2.7. 
 “Subordinated Unit” has the meaning given
such term in the Partnership Agreement. 
 “Term Loan” means the term loan portion of the Existing Credit Agreement.

 “Texas Gas” is defined in Section 2.2. 

“Texas Gas Agreement” is defined in Section 2.2. 

“Texas Lean” is defined in Section 2.2. 

“Texas Lean Agreement” is defined in Section 2.2. 

“Texas LLC” is defined in Section 2.2. 

“Texas LLC Agreement” is defined in Section 2.2. 

“Texas Processing” is defined in Section 2.2. 

“Texas Processing Agreement” is defined in Section 2.2. 

“Texas Rich” is defined in Section 2.2. 

“Texas Rich Agreement” is defined in Section 2.2. 

“Underwriters” means, collectively, each member of the underwriting syndicate named as an underwriter in Schedule I to
the Underwriting Agreement. 
 “Underwriting Agreement” means that certain Underwriting Agreement dated as of
[●], 2017 among the Underwriters, HEP, AIMCo, the General Partner, the Partnership and the Operating Company, providing for the purchase of Common Units by the Underwriters. 

  
 Appendix I-4

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