Document:

EX-10.1

 Exhibit 10.1 

XOMA CORPORATION 

$75,000,000 
 SALES
AGREEMENT  
 November 12, 2015 

Cowen and Company, LLC 
 599 Lexington Avenue 

New York, NY 10022 
 Ladies and Gentlemen: 

XOMA Corporation, a Delaware corporation, (the “Company”), confirms its agreement (this
“Agreement”) with Cowen and Company, LLC (“Cowen”), as follows: 
 1. Issuance and
Sale of Shares. The Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the conditions set forth herein, it may issue and sell through Cowen, acting as agent and/or principal, shares (the
“Placement Shares”) of the Company’s common stock, par value $0.0075 per share (the “Common Stock”), having an aggregate offering price of up to $75,000,000. Notwithstanding anything to the
contrary contained herein, the parties hereto agree that compliance with the limitation set forth in this Section 1 on the number of shares of Common Stock issued and sold under this Agreement shall be the sole responsibility of the
Company, and Cowen shall have no obligation in connection with such compliance. The issuance and sale of Common Stock through Cowen will be effected pursuant to the Registration Statement (as defined below) filed by the Company and declared
effective by the Securities and Exchange Commission (the “Commission”), although nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement (as defined below) to issue the Common
Stock. 
 The Company has filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations
thereunder (collectively, the “Securities Act”), with the Commission a registration statement on Form S-3 (File No. 333-201882), including a base prospectus, relating to certain securities, including the Common Stock, to
be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder (collectively, the “Exchange Act”). The Company has prepared a prospectus supplement specifically relating to the Placement Shares (the “Prospectus Supplement”) to the base prospectus
included as part of such registration statement. The Company has furnished to Cowen, for use by Cowen, copies of the prospectus included as part of such registration statement, as supplemented by the Prospectus Supplement, relating to the Placement
Shares. Except where the context otherwise requires, such registration statement, as amended when it became effective, including all documents filed as part thereof or incorporated by reference therein, and including any information contained in a
Prospectus (as 

 
defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act or deemed to be a part of such registration statement pursuant to Rule 430B or 462(b) of the
Securities Act, is herein called the “Registration Statement.” The base prospectus, including all documents incorporated therein by reference, included in the Registration Statement, as it may be supplemented by the
Prospectus Supplement, in the form in which such prospectus and/or Prospectus Supplement have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act, together with any “issuer free writing
prospectus,” as defined in Rule 433 of the Securities Act regulations (“Rule 433”), relating to the Placement Shares that (i) is required to be filed with the Commission by the Company or (ii) is exempt from
filing pursuant to Rule 433(d)(5)(i), in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g), is herein called the
“Prospectus.” Any reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer to and include the documents incorporated by reference therein, and any
reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include the filing after the execution hereof of any
document with the Commission deemed to be incorporated by reference therein (the “Incorporated Documents”). For purposes of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or
supplement thereto shall be deemed to include any copy filed with the Commission pursuant the Electronic Data Gathering Analysis and Retrieval System (“EDGAR”). 

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

  
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 3. Sale of Placement Shares by Cowen. Subject to the terms and conditions herein set
forth, upon the Company’s delivery of a Placement Notice, and unless the sale of the Placement Shares described therein has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement, Cowen, for the period
specified in the Placement Notice, will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state and federal laws, rules and regulations and the rules of the Nasdaq Global Market
(“Nasdaq”) to sell such Placement Shares up to the amount specified, and otherwise in accordance with the terms of such Placement Notice. Cowen will provide written confirmation to the Company (including by email
correspondence to each of the individuals of the Company set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) no later than the opening
of the Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such day, the compensation payable by the Company to Cowen
pursuant to Section 2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization of the deductions made by Cowen (as set forth in Section 5(a)) from the gross proceeds that it receives
from such sales. Cowen may sell Placement Shares by any method permitted by law deemed to be an “at the market” offering as defined in Rule 415 of the Securities Act, including without limitation sales made through Nasdaq, on any other
existing trading market for the Common Stock or to or through a market maker. If expressly authorized by the Company in a Placement Notice, Cowen may also sell Placement Shares by any other method permitted by law, including but not limited to
negotiated transactions. Notwithstanding the provisions of Section 6(dd), Cowen shall not purchase Placement Shares for its own account as principal unless expressly authorized to do so by the Company in a Placement Notice. The Company
acknowledges and agrees that (i) there can be no assurance that Cowen will be successful in selling Placement Shares, and (ii) Cowen will incur no liability or obligation to the Company or any other person or entity if it does not sell
Placement Shares for any reason other than a failure by Cowen to use its commercially reasonable efforts consistent with its normal trading and sales practices to sell such Placement Shares as required under this Section 3. For the
purposes hereof, “Trading Day” means any day on which the Company’s Common Stock is purchased and sold on Nasdaq. 

4. Suspension of Sales. 

(a) The Company or Cowen may, upon notice to the other party in writing (including by email correspondence to each of the individuals of the
other party set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable
facsimile transmission or email correspondence to each of the individuals of the other party set forth on Schedule 2), suspend any sale of Placement Shares; provided, however, that such suspension shall not affect or impair
either party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt of such notice. Each of the Parties agrees that no such notice under this Section 4 shall be effective against the other unless it
is made to one of the individuals named on Schedule 2 hereto, as such schedule may be amended from time to time. 

  
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 (b) Notwithstanding any other provision of this Agreement, during any period in which the Company
is in possession of material non-public information, the Company and Cowen agree that (i) no sale of Placement Shares will take place, (ii) the Company shall not request the sale of any Placement Shares, and (iii) Cowen shall not be
obligated to sell or offer to sell any Placement Shares. 
 (c) If either Cowen or the Company has reason to believe that the exemptive
provisions set forth in Rule 101(c)(1) of Regulation M under the Exchange Act are not satisfied with respect to the Common Stock, it shall promptly notify the other party, and Cowen may, at its sole discretion, suspend sales of the Placement Shares
under this Agreement. Cowen shall calculate on a weekly basis the average daily trading volume (as defined by Rule 100 of Regulation M under the Exchange Act) of the Common Stock. 

5. Settlement. 

(a) Settlement of Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement for
sales of Placement Shares will occur on the third (3rd) Trading Day (or such earlier day as is industry practice for regular-way trading) following the date on which such sales are made
(each, a “Settlement Date” and the first such settlement date, the “First Delivery Date”). The amount of proceeds to be delivered to the Company on a Settlement Date against receipt of the Placement
Shares sold (the “Net Proceeds”) will be equal to the aggregate sales price received by Cowen at which such Placement Shares were sold, after deduction for (i) Cowen’s commission, discount or other compensation for
such sales payable by the Company pursuant to Section 2 hereof, (ii) any other amounts due and payable by the Company to Cowen hereunder pursuant to Section 7(g) (Expenses) hereof, and (iii) any transaction fees
imposed by any governmental or self-regulatory organization in respect of such sales. 
 (b) Delivery of Placement
Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Placement Shares being sold by crediting Cowen’s or its designee’s account (provided Cowen shall have given
the Company written notice of such designee at least one (1) Trading Day prior to the Settlement Date) at The Depository Trust Company through its Deposit and Withdrawal at Custodian System (“DWAC”) or by such other means of delivery
as may be mutually agreed upon by the parties hereto which in all cases shall be freely tradeable, transferable, registered shares in good deliverable form. On each Settlement Date, Cowen will deliver the related Net Proceeds in same day funds to an
account designated by the Company on, or prior to, the Settlement Date. The Company agrees that if the Company, or its transfer agent (if applicable), defaults in its obligation to deliver duly authorized Placement Shares on a Settlement Date, the
Company agrees that in addition to and in no way limiting the rights and obligations set forth in Section 9(a) (Indemnification and Contribution) hereto, it will (i) hold Cowen harmless against any loss, claim, damage, or reasonable
documented expense (including reasonable and documented legal fees and expenses), as incurred, arising out of or in connection with such default by the Company and (ii) pay to Cowen any commission, discount, or other compensation to which it
would otherwise have been entitled absent such default. 

  
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 6. Representations and Warranties of the Company. Except as disclosed in the
Registration Statement, the Prospectus or any Prospectus Supplement (including the Incorporated Documents), the Company represents and warrants to, and agrees with, Cowen that as of the date of this Agreement, each Representation Date, each date on
which a Placement Notice is given, and any date on which Placement Shares are sold hereunder: 
 (a) Compliance with
Registration Requirements. The Registration Statement and any Rule 462(b) Registration Statement have been declared effective by the Commission under the Securities Act. The Company has complied to the Commission’s satisfaction with
all requests of the Commission for additional or supplemental information. No stop order suspending the effectiveness of the Registration Statement or any Rule 462(b) Registration Statement is in effect and no proceedings for such purpose have
been instituted or are pending or, to the best knowledge of the Company, contemplated or threatened by the Commission. The Company meets the requirements for use of Form S-3 under the Securities Act. As of the
date hereof, the sale of the Placement Shares hereunder meets the requirements or General Instruction I.B.1 of Form S-3. 

(b) No Misstatement or Omission. The Prospectus when filed complied and, as amended or supplemented, if applicable,
will comply in all material respects with the Securities Act. Each of the Registration Statement, any Rule 462(b) Registration Statement, the Prospectus and any post-effective amendments or supplements thereto, at the time it became effective
or its date, as applicable, and as of each of the Settlement Dates, if any, complied in all material respects with the Securities Act and did not and, as of each Settlement Date, if any, did not and will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus, as amended or supplemented, as of its date, did not and, as of each of the Settlement Dates, if
any, will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The representations and
warranties set forth in the two immediately preceding sentences do not apply to statements in or omissions from the Registration Statement, any Rule 462(b) Registration Statement, or any post-effective amendment thereto, or the Prospectus, or
any amendments or supplements thereto, made in reliance upon and in conformity with information relating to Cowen furnished to the Company in writing by Cowen expressly for use therein. There are no contracts or other documents required to be
described in the Prospectus or to be filed as exhibits to the Registration Statement which have not been described or filed as required. 

(c) Offering Materials Furnished to Cowen. The Company has delivered to Cowen one complete copy of the Registration
Statement and a copy of each consent and certificate of experts filed as a part thereof, and conformed copies of the Registration Statement (without exhibits) and the Prospectus, as amended or supplemented, in such quantities and at such places as
Cowen has reasonably requested. 
 (d) Not an Ineligible Issuer. The Company currently is not an “ineligible
issuer,” as defined in Rule 405 of the rules and regulation of the Commission. The Company agrees to notify Cowen promptly upon the Company becoming an “ineligible issuer.” 

  
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 (e) Distribution of Offering Material By the Company. The Company has
not distributed and will not distribute, prior to the completion of Cowen’s distribution of the Placement Shares pursuant to this Agreement, any offering material in connection with the offering and sale of the Placement Shares other than the
Prospectus or the Registration Statement. 
 (f) The Sales Agreement. This Agreement has been duly authorized,
executed and delivered by, and is a valid and binding agreement of, the Company, enforceable in accordance with its terms, except as rights to indemnification hereunder may be limited by applicable law and except as the enforcement hereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles. 

(g) Authorization of the Common Stock. The Placement Shares, when issued and delivered, will be duly authorized for
issuance and sale pursuant to this Agreement and, when issued and delivered by the Company against payment therefor pursuant to this Agreement, will be duly authorized, validly issued, fully paid and nonassessable. 

(h) No Applicable Registration or Other Similar Rights. There are no persons with registration or other similar
rights to have any equity or debt securities registered for sale under the Registration Statement or included in the offering contemplated by this Agreement, except for such rights as have been duly waived. 

(i) No Material Adverse Change. Since the date of the most recent financial statements of the Company included or
incorporated by reference in the Registration Statement and Prospectus:: (i) there has been no material adverse change, or any development that could reasonably be expected to result in a material adverse change, in the condition, financial or
otherwise, or in the earnings, business, operations or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries, considered as one entity (any such change is called a
“Material Adverse Change”); (ii) the Company and its subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect, direct or contingent, not in the ordinary course of business
nor entered into any material transaction or agreement not in the ordinary course of business: and (iii) there has been no dividend or distribution of any kind declared, paid or made by the Company or, except for regular quarterly dividends
publicly announced by the Company or dividends paid to the Company or other subsidiaries, by any of its subsidiaries on any class of capital stock or repurchase or redemption by the Company or any of its subsidiaries of any class of capital stock.

 (j) Independent Accountants. Ernst & Young LLP, who has expressed its opinion with respect to the
financial statements (which term as used in this Agreement includes the related notes thereto) and supporting schedules filed with the Commission or incorporated by reference as a part of the Registration Statement and included in the Prospectus, is
an independent registered public accounting firm as required by the Securities Act and the Exchange Act. 

(k) Preparation of the Financial Statements. The financial statements filed with the Commission as a part of or
incorporated by reference therein the Registration Statement and 

  
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included in the Prospectus present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of and at the dates indicated and the results of
their operations and cash flows for the periods specified. Such financial statements and supporting schedules have been prepared in accordance with generally accepted accounting principles as applied in the United States applied on a consistent
basis throughout the periods involved, except as may be expressly stated in the related notes thereto. No other financial statements or supporting schedules are required to be included in or incorporated in the Registration Statement. 

(l) XBRL. The interactive data in eXtensible Business Reporting Language included or incorporated by reference in
the each Registration Statement fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto. 

(m) Incorporation and Good Standing of the Company and its Subsidiaries. The Company has been duly incorporated and
is validly existing as a corporation in good standing under the laws of the State of Delaware and has corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Prospectus and to enter into
and perform its obligations under this Agreement. The entities listed on Schedule 4 hereto are the Company’s only significant subsidiaries (as defined in Rule 1-02 (w) of Regulation S-X of the Exchange Act) (the
“Significant Subsidiaries”). The Significant Subsidiaries have been duly organized and are validly existing as corporations in good standing under the laws of the jurisdiction of their organization and have the requisite
power and authority to own, lease and operate their properties and to conduct their businesses as described in the Prospectus. Each of the Company and each of the Significant Subsidiaries are duly qualified as a foreign corporation or foreign
partnership to transact business and is in good standing in the State of California and each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except for
such jurisdictions (other than the State of California) where the failure to so qualify or to be in good standing would not, individually or in the aggregate, result in a Material Adverse Change. Except as described in the Prospectus, all of the
issued and outstanding equity interests of each of the Significant Subsidiaries have been duly authorized and validly issued, are fully paid and nonassessable and are owned by the Company free and clear of any security interest, mortgage, pledge,
lien, encumbrance or claim. The Company does not own or control, directly or indirectly, any corporation, association or other entity other than the subsidiaries listed in Exhibit 21.1 to the Company’s Annual Report on Form 10-K for
the most recently ended fiscal year and other than (i) those subsidiaries not required to be listed on Exhibit 21.1 by Item 601 of Regulation S-K under the Exchange Act and (ii) those subsidiaries formed since the last day of the
most recently ended fiscal year. 
 (n) Capital Stock Matters. The Common Stock conforms in all material respects
to the description thereof contained in the Prospectus. All of the issued and outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid and nonassessable and have been issued in compliance with federal and state
securities laws. None of the outstanding shares of Common Stock were issued in violation of any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase securities of the Company. There are no authorized or
outstanding options, warrants, preemptive rights, rights 

  
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of first refusal or other rights to purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any capital stock of the Company or any of its subsidiaries other
than those accurately described in all material respects in the Prospectus. The description of the Company’s stock option, stock bonus and other stock plans or arrangements, and the options or other rights granted thereunder, set forth in the
Prospectus accurately and fairly presents in all material respects the information required to be shown with respect to such plans, arrangements, options and rights. 

(o) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals Required. Neither the Company
nor any of its subsidiaries is in violation of its charter or by-laws or is in default (or, with the giving of notice or lapse of time, would be in default) (“Default”) under any indenture, mortgage, loan or credit agreement,
note, contract, franchise, lease or other instrument to which the Company or any of its subsidiaries is a party or by which it or any of them may be bound, or to which any of the property or assets of the Company or any of its subsidiaries is
subject (each, an “Existing Instrument”), except for such Defaults as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change. The Company’s execution, delivery and
performance of this Agreement and consummation of the transactions contemplated hereby and by the Prospectus (i) have been duly authorized by all necessary corporate action and will not result in any violation of the provisions of the charter
or by-laws of the Company or any subsidiary, (ii) will not conflict with or constitute a breach of, or Default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any
of its subsidiaries pursuant to, or require the consent of any other party to, any Existing Instrument, except for such conflicts, breaches, Defaults, liens, charges or encumbrances as would not, individually or in the aggregate, result in a
Material Adverse Change and (iii) will not result in any violation of any law, administrative regulation or administrative or court decree applicable to the Company or any subsidiary. No consent, approval, authorization or other order of, or
registration or filing with, any court or other governmental or regulatory authority or agency, is required for the Company’s execution, delivery and performance of this Agreement and consummation of the transactions contemplated hereby and by
the Prospectus, except such as have been obtained or made by the Company under the Securities Act and are in full force and effect or that may be required under applicable state securities or blue sky laws and from the Financial Industry Regulatory
Authority (“FINRA”) or Nasdaq. 
 (p) No Material Actions or Proceedings. Except as
disclosed in the Prospectus, there are no legal or governmental actions, suits or proceedings pending or, to the Company’s knowledge, threatened (i) against or affecting the Company or any of its subsidiaries, (ii) which has as the
subject thereof any officer or director of, or property owned or leased by, the Company or any of its subsidiaries or (iii) relating to environmental or discrimination matters, where in any such case (A) there is a reasonable possibility
that such action, suit or proceeding might be determined adversely to the Company or such subsidiary and (B) any such action, suit or proceeding, if so determined adversely, would reasonably be expected to result in a Material Adverse Change or
adversely affect the consummation of the transactions contemplated by this Agreement. No material labor dispute with the employees of the Company or any of its subsidiaries exists or, to the Company’s knowledge, is threatened or imminent. 

  
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 (q) All Necessary Permits, etc. The Company and each subsidiary
possess such valid and current certificates, authorizations or permits issued by the appropriate state, federal or foreign regulatory agencies or bodies necessary to conduct their respective businesses as described in the Registration Statement and
Prospectus, other than those the failure to possess or own would not result in a Material Adverse Change, and neither the Company nor any subsidiary has received any notice of proceedings relating to the revocation or modification of, or
non-compliance with, any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, could result in a Material Adverse Change. 

(r) Tax Law Compliance. Subject to any permitted extensions, the Company and its consolidated subsidiaries have
filed all necessary federal, state and foreign income, property and franchise tax returns (or have properly requested extensions thereof) and have paid all taxes required to be paid by any of them and, if due and payable, any related or similar
assessment, fine or penalty levied against any of them except as may be being contested in good faith and by appropriate proceedings. The Company has made adequate charges, accruals and reserves in the applicable financial statements referred to in
Section 1 (i) above in respect of all federal, state and foreign income, property and franchise taxes for all periods as to which the tax liability of the Company or any of its consolidated subsidiaries has not been finally determined.

 (s) Company Not an “Investment Company”. The Company is not, and will not, after receipt of payment
for the Placement Shares be required to register as an “investment company” or an entity “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. 

(t) Insurance. Except as otherwise described in the Prospectus, each of the Company and its subsidiaries are
insured by insurers of recognized financial responsibility with policies in such amounts and with such deductibles and covering such risks as are generally deemed prudent and customary for their businesses as described in the Registration Statement
and the Prospectus. The Company has no reason to believe that it or any subsidiary will not be able (i) to renew its existing insurance coverage as and when such policies expire or (ii) to obtain comparable coverage from similar
institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse Change. 

(u) No Price Stabilization or Manipulation. The Company has not taken and will not take, directly or indirectly,
any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Placement Shares. 

(v) Related Party Transactions. There are no business relationships or related-party transactions involving the
Company or any subsidiary or any other person required to be described in the Prospectus which have not been described as required. 

(w) Exchange Act Compliance. The documents incorporated or deemed to be incorporated by reference in the
Prospectus, at the time they were or hereafter are filed with the Commission, complied and will comply in all material respects with the requirements of 

  
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the Exchange Act, and, when read together with the other information in the Prospectus, at the Settlement Dates, will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

(x) No Unlawful Contributions or Other Payments. Neither the Company nor any of its subsidiaries nor, to the best
of the Company’s knowledge, any director, officer, employee or agent of the Company or any subsidiary has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political
activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977,
as amended; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment. 

(y) Compliance with Money Laundering Laws. The operations of the Company and its subsidiaries are and have been
conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and
regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by
or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, the knowledge of the Company, threatened. 

(z) Compliance with OFAC. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any
director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Office Control of the U.S. Department of the Treasury
(“OFAC”); and the Company will not, directly or indirectly, use the proceeds of the offering of the Placement Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC. 

(aa) Internal Controls. The Company maintains a system of internal accounting controls, including, but not limited
to, internal controls over accounting matters and financial reporting, an internal audit function and legal and regulatory compliance controls (collectively, “Internal Controls”), that comply with the Securities Laws (as
defined below) and 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 U.S. generally accepted accounting principles 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. The Internal Controls are overseen by the Audit Committee (the
“Audit Committee”) of the Board of Directors of the Company (the “Board”) in accordance with Exchange Rules (as defined below). As 

  
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previously disclosed to Cowen, the Company has not publicly disclosed or reported to the Audit Committee or the Board, and within the next 90 days the Company does not reasonably expect to
publicly disclose or report to the Audit Committee or the Board, a significant deficiency, material weakness, change in Internal Controls or fraud involving management or other employees who have a significant role in Internal Controls (each, an
“Internal Control Event”), any violation of, or failure to comply with, the Securities Laws, or any matter which, if determined adversely, would have a Material Adverse Change. “Securities Laws” means,
collectively, the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”), the Securities Act, the Exchange Act, the rules and regulations of the Commission, the auditing principles, rules, standards and practices applicable to
auditors of “issuers” (as defined in Sarbanes-Oxley) promulgated or approved by the Public Company Accounting Oversight Board and, as applicable, the rules of the New York Stock Exchange and the Nasdaq Stock Market (“Exchange
Rules”). 
 (bb) Disclosure Controls. The Company has established and maintains “disclosure
controls and procedures” (as defined in Rules 13a–15(e) and 15d–15(e) of the Exchange Act); the Company’s “disclosure controls and procedures” are reasonably designed to ensure that all information (both financial and
non–financial) required to be disclosed by the Company in the reports that it files or furnishes under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and regulations of the
Commission, and that all such information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure and to make the certifications of the Chief Executive Officer and Chief
Financial Officer of the Company required under the Exchange Act with respect to such reports. 
 (cc) Compliance
with Environmental Laws. Except as otherwise described in the Prospectus, and except as would not, individually or in the aggregate, result in a Material Adverse Change (i) neither the Company nor any of its subsidiaries is in violation of
any federal, state, local or foreign law or regulation relating to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife,
including without limitation, laws and regulations relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum and petroleum products
(collectively, “Materials of Environmental Concern”), or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Materials of Environmental Concern
(collectively, “Environmental Laws”), which violation includes, but is not limited to, noncompliance with any permits or other governmental authorizations required for the operation of the business of the Company or its
subsidiaries under applicable Environmental Laws, or noncompliance with the terms and conditions thereof, nor has the Company or any of its subsidiaries received any written communication, whether from a governmental authority, citizens group,
employee or otherwise, that alleges that the Company or any of its subsidiaries is in violation of any Environmental Law; (ii) there is no claim, action or cause of action filed with a court or governmental authority, no investigation with
respect to which the Company has received written notice, and no written notice by any person or entity alleging potential liability for investigatory costs, cleanup costs, governmental responses costs, natural resources damages, property damages,
personal injuries, attorneys’ fees or penalties arising out of, based on or 

  
 - 11 - 

 
resulting from the presence, or release into the environment, of any Material of Environmental Concern at any location owned, leased or operated by the Company or any of its subsidiaries, now or
in the past (collectively, “Environmental Claims”), pending or, to the Company’s knowledge, threatened against the Company or any of its subsidiaries or any person or entity whose liability for any Environmental Claim
the Company or any of its subsidiaries has retained or assumed either contractually or by operation of law; and (iii) to the best of the Company’s knowledge, there are no past or present actions, activities, circumstances, conditions,
events or incidents, including, without limitation, the release, emission, discharge, presence or disposal of any Material of Environmental Concern, that reasonably could result in a violation of any Environmental Law or form the basis of a
potential Environmental Claim against the Company or any of its subsidiaries or against any person or entity whose liability for any Environmental Claim the Company or any of its subsidiaries has retained or assumed either contractually or by
operation of law. 
 (dd) Intellectual Property. The Company and its subsidiaries own or possess the valid right
to use all (i) patents, patent applications, trademarks, trademark registrations, service marks, service mark registrations, Internet domain name registrations, copyrights, copyright registrations, licenses, trade secret rights
(“Intellectual Property Rights”) and (ii) inventions, software, works of authorships, trade marks, service marks, trade names, databases, formulae, know how, Internet domain names and other intellectual property (including trade
secrets and other unpatented and/or unpatentable proprietary confidential information, systems, or procedures) (collectively, “Intellectual Property Assets”) necessary to conduct their respective businesses as currently conducted, and as
proposed to be conducted and described in the Prospectus. The Company and its subsidiaries have not received any opinion from their legal counsel concluding that any activities of their respective businesses infringe, misappropriate, or otherwise
violate, valid and enforceable Intellectual Property Rights of any other person, and have not received written notice of any challenge, which is to their knowledge still pending, by any other person to the rights of the Company and its subsidiaries
with respect to any Intellectual Property Rights or Intellectual Property Assets owned or used by the Company or its subsidiaries. To the knowledge of the Company, the Company and its subsidiaries’ respective businesses as now conducted do not
give rise to any infringement of, any misappropriation of, or other violation of, any valid and enforceable Intellectual Property Rights of any other person. All licenses for the use of the Intellectual Property Rights described in the Prospectus
are valid, binding upon, and enforceable by or against the parties thereto in accordance to its terms. The Company has complied in all material respects with, and is not in breach nor has received any asserted or threatened claim of breach of any
Intellectual Property license, and the Company has no knowledge of any breach or anticipated breach by any other person to any Intellectual Property license. Except as described in the Prospectus, no claim has been made against the Company alleging
the infringement by the Company of any patent, trademark, service mark, trade name, copyright, trade secret, license in or other intellectual property right or franchise right of any person. The Company has taken all reasonable steps to protect,
maintain and safeguard its Intellectual Property Rights, including the execution of appropriate nondisclosure and confidentiality agreements. The consummation of the transactions contemplated by this Agreement will not result in the loss or
impairment of or payment of any additional amounts with respect to, nor require the consent of any other person in respect of, the Company’s right to own, use, or hold for use any of the Intellectual Property Rights as owned, used or held for
use in the conduct of the business as currently conducted. 

  
 - 12 - 

 (ee) Listing. The shares of Common Stock are registered pursuant to
Section 12(b) of the Exchange Act and listed on Nasdaq; the Company has taken no action designed to, or reasonably likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common
Stock from Nasdaq, nor has the Company received any notification that the Commission or FINRA is contemplating terminating such registration or listing; no consent, approval, authorization or order of, or filing, notification or registration with,
Nasdaq is required for the listing and trading of the shares of Common Stock offered hereby on Nasdaq that will not have been obtained or filed as of each respective Settlement Date; and no approval of the stockholders of the Company under the rules
and regulations of Nasdaq is required for the Company to issue and deliver the shares of Common Stock offered hereby. 

(ff) Possession of Licenses and Permits. The Company and each of the Significant Subsidiaries has all material
licenses, certifications, permits, franchises, approvals, clearances and other regulatory authorizations (“Permits”) from governmental authorities as are necessary to conduct its businesses as currently conducted and to own, lease
and operate its properties in the manner described in the Prospectus. There is no claim, proceeding or controversy, pending or, to the knowledge of the Company or any of the Significant Subsidiaries, threatened, involving the status of or sanctions
under any of the Permits which could reasonably be expected to have a Material Adverse Change. The Company and each of the Significant Subsidiaries has fulfilled and performed all of its material obligations with respect to the Permits, and no event
has occurred which allows, or after notice or lapse of time would allow, the revocation, termination, modification or other impairment of the rights of the Company or any of the Significant Subsidiaries under such Permit which could reasonably be
expected to have a Material Adverse Change. 
 (gg) Regulatory Compliance. The conduct of business by the Company
and each of the Significant Subsidiaries complies, and at all times has complied, in all material respects with federal, state, local and foreign laws, statutes, ordinances, rules, regulations, decrees, orders, Permits and other similar items
(“Laws”) applicable to its business, including, without limitation: (a) the U.S. Food, Drug and Cosmetic Act (“FDCA”) (21 U.S.C. § 301 et seq.), the Public Health Services Act (“PHSA”) (
42 U.S.C. § 262), the regulations promulgated pursuant to such laws, each as may be amended from time to time, and similar federal, state, local and foreign Laws; (b) the Occupational Safety and Health Act, the Environmental Protection
Act, the Toxic Substance Control Act and similar federal, state, local and foreign Laws applicable to hazardous or regulated substances and radioactive or biologic materials; (c) the federal Antikickback Statute (42 U.S.C. § 1320a-7b(b)),
the Stark Law (42 U.S.C. §§ 1395nn), any applicable state fraud and abuse prohibitions, including those that apply to all payors (governmental, commercial insurance and self-payors), 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 civil monetary penalty laws (42 U.S.C. § 1320a-7a), the Program Fraud and Civil Remedies
Act (31 U.S.C. § 3801 et seq.), the criminal false claims statutes (e.g., 18 U.S.C. §§ 287 and 1001), the exclusion laws (42 U.S.C. § 1320a- 7), the Health Insurance Portability and Accountability Act of 1996 (42

  
 - 13 - 

 
U.S.C. § 1320d et seq.), as amended by the Health Information, Technology for Economic and Clinical Health Act of 2009, the exclusion laws (42 U.S.C. 1320a-7), any federal or state billing
or reimbursement laws or related guidance issued by the Centers for Medicare & Medicaid Services or any applicable state Medicaid agency, and any comparable state or local laws, and the regulations promulgated pursuant to such laws, each as
amended from time to time; and (d) licensing, permitting, authorizing, approving and certification Laws covering any aspect of the business of the Company or any of the Significant Subsidiaries. Neither the Company nor any of the Significant
Subsidiaries has received any notification asserting, or has knowledge of, any present or past failure to comply with or violation of any such Laws nor has the Company nor any of the Significant Subsidiaries received any notification of proceedings
relating to the revocation or modification of any license, permit, approval, certification, authorization or other governmental license. Except to the extent disclosed in the Registration Statement or the Prospectus, the pending and completed
clinical, pre-clinical and other studies, tests and research conducted by the Company or any of the Significant Subsidiaries or on behalf of the Company or any of the Significant Subsidiaries that are disclosed in the Registration Statement or the
Prospectus, if still pending, are and, if completed, were conducted in compliance, in all material respects, with, to the extent applicable, the FDCA and the regulations and guidelines promulgated thereunder, including Title 21 of the Code of
Federal Regulations, and other U.S. Food and Drug Administration (“FDA”) regulations and guidelines governing clinical studies, current good laboratory practices and good clinical practices, the International Conference on
Harmonisation Guidelines, the protocols submitted to the FDA, and applicable institutional review board and independent ethics committee requirements; the drug substances used in the clinical trials have been manufactured under current Good
Manufacturing Practices; the descriptions of the preclinical and clinical studies and results thereof, conducted by or, on behalf of the Company or any of the Significant Subsidiaries contained in the Registration Statement or the Prospectus are
accurate and complete in all material respects; neither the Company nor any of the Significant Subsidiaries are in receipt of any written communications from the FDA or any foreign, state or local governmental body exercising comparable authority
that reasonably call into question the results of the studies described or referred to in the Registration Statement or the Prospectus; and neither the Company nor any of the Significant Subsidiaries have received any notice or correspondence from
the FDA or any foreign, state or local governmental body exercising comparable authority requiring the termination, suspension, or clinical hold of any tests or preclinical or clinical studies, or such written notice or correspondence from any
Institutional Review Board or comparable authority requiring the termination or suspension of a clinical study, conducted by or on behalf of the Company or any of the Significant Subsidiaries, which termination, suspension, or clinical hold would
reasonably be expected to have a Material Adverse Change. No filing or submission to the FDA or any other regulatory body, to the knowledge of the Company, contains any material omission or, material false information. 

(hh) Accurate Disclosure. The statements in the Prospectus under the heading “Description of Capital
Stock” are true and correct in all material respects and in the Company’s Annual Report on Form 10-K incorporated by reference into the Registration Statement and the Prospectus under the captions “Business—Government
Regulation” and “Business—Patents and Trade Secrets,” insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate and fair summaries of

  
 - 14 - 

 
such legal matters, agreements, documents or proceedings and present the information required to be shown. The Common Stock conforms in all material respects to the description thereof contained
in the Registration Statement and the Prospectus. There are no statutes, regulations, contracts or other documents (including, without limitation, any voting agreement) that are required to be described in the Registration Statement or the
Prospectus or to be filed as exhibits to the Registration Statement that are not described or filed as required. Neither the Company nor any of the Significant Subsidiaries has sent or received any notice indicating the termination of or intention
to terminate any of the contracts or agreements referred to or described in the Registration Statement or the Prospectus, or filed as an exhibit to the Registration Statement, and no such termination has been threatened by the Company, any
Significant Subsidiary or any other party to any such contract or agreement. 
 (ii) Anti-Takeover Provisions.
The Company and the Board have taken all necessary action, if any, to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision
under the Company’s charter or the laws of the State of Delaware that is or could become applicable as of result of the Company’s issuance of the Common Stock offered hereunder. 

(jj) Title to Property. The Company and the Significant Subsidiaries have good and marketable title to all of the
properties and assets reflected in the Registration Statement and the Prospectus, including the financial statements contained therein, subject to no lien, mortgage, pledge, charge or encumbrance of any kind except those reflected in such financial
statements (or as described in the Registration Statement or the Prospectus) or which are not material in amount. The Company and the Significant Subsidiaries occupy their material leased properties under valid and binding leases conforming in all
material respects to the descriptions thereof set forth in the Registration Statement or the Prospectus with no terms or provisions that would materially interfere with the use made or to be made thereof by them. 

(kk) FINRA Affiliations. To the Company’s knowledge, there are no affiliations or associations between any
member of FINRA and any of the Company’s officers, directors or 5% or greater security holders, except as set forth in the Registration Statement or the Prospectus. 

(ll) Statistical and Market-Related Data. Any statistical, industry-related and market-related data included in, or
incorporated by reference into, the Registration Statement or the Prospectus are based on or derived from sources that the Company reasonably and in good faith believes are reliable and accurate. 

(mm) Brokers. Except for commissions payable to Cowen as described in Schedule 3, there is no broker, finder or
other party that is entitled to receive from the Company any brokerage or finder’s fee or other fee or commission as a result of any transactions contemplated by this Agreement. 

(nn) Forward-Looking Statements. The information contained in the Registration Statement or the Prospectus
regarding the Company’s expectations, plans and intentions, and any other information that constitutes “forward-looking” information within the meaning of the Securities Act and the Exchange Act were made by the Company on a
reasonable basis and reflect the Company’s good faith belief and/or estimate of the matters described therein. 

  
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 (oo) Exchange Act Reporting. The Company is subject to and in
compliance in all material respects with the reporting requirements of Section 13 or Section 15(d) of the Exchange Act. 

(pp) ERISA Compliance. The Company is in compliance in all material respects with all presently applicable
provisions of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder (“ERISA”); no “reportable event” (as defined in ERISA) has occurred with
respect to any “pension plan” (as defined in ERISA) subject to Title IV of ERISA for which the Company would have any liability; the Company has not incurred and does not expect to incur liability under (i) Title IV of ERISA with
respect to termination of, or withdrawal from, any “pension plan” or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations thereunder (the
“Code”); and each “pension plan” for which the Company would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and, to the Company’s
knowledge, nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification. 

(qq) Compliance with Sarbanes-Oxley. The Company and the Board are in compliance with Sarbanes-Oxley and all
applicable Exchange Rules. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees of indebtedness by the Company to or for the benefit of any of the executive officers
or directors of the Company or any of their respective family members, except as disclosed in the Prospectus. The Company has not directly or indirectly extended or maintained credit, arranged for the extension of credit, or renewed an extension of
credit, in the form of a personal loan to or for any director or executive officer of the Company. 
 (rr) No
Outstanding Loans or Other Indebtedness. Except as described in the Prospectus, there are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees or indebtedness by the
Company to or for the benefit of any of the officers or directors of the Company or any of the immediate family members of any of them. 

(ss) No Reliance. The Company has not relied upon Cowen or legal counsel for Cowen for any legal, tax or accounting
advice in connection with the offering and sale of the Placement Shares. 
 (tt) Cowen Purchases. The Company
acknowledges and agrees that Cowen has informed the Company that Cowen may, to the extent permitted under the Securities Act, the Exchange Act and this Agreement, purchase and sell shares of Common Stock for its own account while this Agreement is
in effect, provided, that (i) no such purchase or sales shall take place while a Placement Notice is in effect (except to the extent Cowen may engage in sales of Placement Shares purchased or deemed purchased from the Company as a
“riskless principal” or in a similar capacity) and (ii) the Company shall not be deemed to have authorized or consented to any such purchases or sales by Cowen. 

  
 - 16 - 

 (uu) Partnerships and Joint Ventures. Other than the Significant
Subsidiaries, the Company does not own, directly or indirectly, any shares of capital stock and does not have any other equity or ownership or proprietary interest in any corporation, partnership, association, trust, limited liability company, joint
venture or other entity. 
 (vv) Compliance with Laws. The Company has not been advised, and has no reason to
believe, that it and each of its subsidiaries are not conducting business in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business, except where failure to be so in compliance would not
reasonably be expected to result in a Material Adverse Change. 
 Any certificate signed by an officer of the Company and delivered to Cowen or to counsel
for Cowen in connection with this Agreement shall be deemed to be a representation and warranty by the Company to Cowen as to the matters set forth therein. 

The Company acknowledges that Cowen and, for purposes of the opinions to be delivered pursuant to Section 7 hereof, counsel to the Company and
counsel to Cowen, will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents to such reliance. 

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

(a) Registration Statement Amendments. After the date of this Agreement and during any period in which a Prospectus
relating to any Placement Shares is required to be delivered by Cowen under the Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rule 172 under the Securities Act), (i) the Company will notify
Cowen promptly of the time when any subsequent amendment to the Registration Statement, other than documents incorporated by reference, has been filed with the Commission and/or has become effective or any subsequent supplement to the Prospectus has
been filed and of any request by the Commission for any amendment or supplement to the Registration Statement or Prospectus or for additional information, (ii) the Company will prepare and file with the Commission, promptly upon Cowen’s
request, any amendments or supplements to the Registration Statement or Prospectus that, in Cowen’s reasonable opinion, may be necessary or advisable in connection with the distribution of the Placement Shares by Cowen (provided,
however, that (A) the failure of Cowen to make such request shall not relieve the Company of any obligation or liability hereunder, or affect Cowen’s right to rely on the representations and warranties made by the Company in this
Agreement; (B) the Company has no obligation to provide Cowen any advance copy of such filing or to provide Cowen an opportunity to object to such filing if the filing does not name Cowen or does not relate to the transaction herein provided,
and (C) the only remedy Cowen shall have with respect to the failure by the Company to provide Cowen with such copy or the filing of such amendment or supplement despite Cowen’s objection shall be to cease making sales under this
Agreement); (iii) the Company will not file any amendment or supplement to the Registration Statement or Prospectus, other than documents incorporated by reference, relating to the Placement Shares or a security convertible into the Placement
Shares unless a copy thereof has been submitted to Cowen within a reasonable period of time before the filing and Cowen has not reasonably objected thereto (provided, however, that the failure of Cowen to make such objection shall not relieve
the Company of any obligation or liability hereunder, or affect Cowen’s right to 

  
 - 17 - 

 
rely on the representations and warranties made by the Company in this Agreement) and the Company will furnish to Cowen at the time of filing thereof a copy of any document that upon filing is
deemed to be incorporated by reference into the Registration Statement or Prospectus, except for those documents available via EDGAR; and (iv) the Company will cause each amendment or supplement to the Prospectus, other than documents
incorporated by reference, to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act. 

(b) Notice of Commission Stop Orders. The Company will advise Cowen, promptly after it receives notice or obtains
knowledge thereof, of the issuance or threatened issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement, of the suspension of the qualification of the Placement Shares for offering or sale in any
jurisdiction, or of the initiation or threatening of any proceeding for any such purpose; and it will promptly use its commercially reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal if such a stop order should
be issued. 
 (c) Delivery of Prospectus; Subsequent Changes. During any period in which a Prospectus relating to
the Placement Shares is required to be delivered by Cowen under the Securities Act with respect to a pending sale of the Placement Shares, (including in circumstances where such requirement may be satisfied pursuant to Rule 172 under the Securities
Act), the Company will comply with all requirements imposed upon it by the Securities Act, as from time to time in force, and to file on or before their respective due dates all reports and any definitive proxy or information statements required to
be filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act. If during such period any event occurs as a result of which the Prospectus as then amended or supplemented
would include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or
supplement the Registration Statement or Prospectus to comply with the Securities Act, the Company will promptly notify Cowen to suspend the offering of Placement Shares during such period and the Company will promptly amend or supplement the
Registration Statement or Prospectus (at the expense of the Company) so as to correct such statement or omission or effect such compliance; provided, however, that the Company may delay the filing of any amendment or supplement, if in the
judgment of the Company, it is in the best interest of the Company. 
 (d) Listing of Placement Shares. During
any period in which the Prospectus relating to the Placement Shares is required to be delivered by Cowen under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances where such requirement may be
satisfied pursuant to Rule 172 under the Securities Act), the Company will use its commercially reasonable efforts to cause the Placement Shares to be listed on Nasdaq and to qualify the Placement Shares for sale under the securities laws of such
jurisdictions as Cowen reasonably designates and to continue such qualifications in effect so long as required for the distribution of the Placement Shares; provided, however, that the Company shall not be required in connection therewith to
qualify as a foreign corporation or dealer in securities or file a general consent to service of process in any jurisdiction. 

  
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 (e) Delivery of Registration Statement and Prospectus. The Company
will furnish to Cowen and its counsel (at the expense of the Company) copies of the Registration Statement, the Prospectus (including all documents incorporated by reference therein) and all amendments and supplements to the Registration Statement
or Prospectus that are filed with the Commission during any period in which a Prospectus relating to the Placement Shares is required to be delivered under the Securities Act (including all documents filed with the Commission during such period that
are deemed to be incorporated by reference therein), in each case as soon as reasonably practicable and in such quantities as Cowen may from time to time reasonably request and, at Cowen’s request, will also furnish copies of the Prospectus to
each exchange or market on which sales of the Placement Shares may be made; provided, however, that the Company shall not be required to furnish any document (other than the Prospectus) to Cowen to the extent such document is available on
EDGAR. 
 (f) Earnings Statement. The Company will make generally available to its security holders as soon as
practicable, but in any event not later than 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering a 12-month period that satisfies the provisions of Section 11(a) and Rule 158 of the Securities
Act. 
 (g) Expenses. The Company, whether or not the transactions contemplated hereunder are consummated or this
Agreement is terminated, in accordance with the provisions of Section 11 hereunder, will pay the following expenses all incident to the performance of its obligations hereunder, including, but not limited to, expenses relating to (i) the
preparation, printing and filing of the Registration Statement and each amendment and supplement thereto, of each Prospectus and of each amendment and supplement thereto, (ii) the preparation, issuance and delivery of the Placement Shares,
(iii) the qualification of the Placement Shares under securities laws in accordance with the provisions of Section 7(d) of this Agreement, including filing fees (provided, however, that any fees or disbursements of counsel for Cowen
in connection therewith shall be paid by Cowen except as set forth in (vii) below), (iv) the printing and delivery to Cowen of copies of the Prospectus and any amendments or supplements thereto, and of this Agreement, (v) the fees and
expenses incurred in connection with the listing or qualification of the Placement Shares for trading on Nasdaq, (vi) the filing fees and expenses, if any, of the Commission, (vii) the filing fees and associated legal expenses of
Cowen’s outside counsel for filings with the FINRA Corporate Financing Department, and other reasonable fees and disbursements of Cowen’s counsel in an aggregate amount not to exceed $50,000. 

(h) Use of Proceeds. The Company will use the Net Proceeds as described in the Prospectus in the section entitled
“Use of Proceeds.” 
 (i) Notice of Other Sales. During the pendency of any Placement Notice given
hereunder, and for 5 trading days following the termination of any Placement Notice given hereunder, the Company shall provide Cowen notice as promptly as reasonably possible before it offers to sell, contracts to sell, sells, grants any option to
sell or otherwise disposes of any shares of Common Stock (other than Placement Shares offered pursuant to the provisions of this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or
acquire Common Stock; provided, that such notice shall not be required in connection with the (i) issuance, grant or sale of Common Stock, options to purchase shares of Common Stock or Common Stock issuable upon the exercise of options
or 

  
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other equity awards pursuant to the any stock option, stock bonus or other stock plan or arrangement described in the Prospectus, (ii) the issuance of securities in connection with an
acquisition, merger or sale or purchase of assets or (iii) the issuance or sale of Common Stock pursuant to any dividend reinvestment plan that the Company may adopt from time to time provided the implementation of such is disclosed to Cowen in
advance or (iv) any shares of common stock issuable upon the exchange, conversion or redemption of securities or the exercise of warrants, options or other rights in effect or outstanding. 

(j) Change of Circumstances. The Company will, at any time during a fiscal quarter in which the Company intends to
tender a Placement Notice or sell Placement Shares, advise Cowen promptly after it shall have received notice or obtained knowledge thereof, of any information or fact that would alter or affect in any material respect any opinion, certificate,
letter or other document provided to Cowen pursuant to this Agreement. 
 (k) Due Diligence Cooperation. During
the term of this Agreement, the Company will cooperate with any reasonable due diligence review conducted by Cowen or its agents in connection with the transactions contemplated hereby, including, without limitation, providing information and making
available documents and senior corporate officers, during regular business hours and at the Company’s principal offices, as Cowen may reasonably request. 

(l) Required Filings Relating to Placement of Placement Shares. The Company agrees that on such dates as the
Securities Act shall require, the Company will (i) file a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b) under the Securities Act (each and every filing under Rule 424(b), a “Filing
Date”), which prospectus supplement will set forth, within the relevant period, the amount of Placement Shares sold through Cowen, the Net Proceeds to the Company and the compensation payable by the Company to Cowen with respect to such
Placement Shares, and (ii) deliver such number of copies of each such prospectus supplement to each exchange or market on which such sales were effected as may be required by the rules or regulations of such exchange or market. 

(m) Representation Dates; Certificate. On or prior to the First Delivery Date and, thereafter, during the term of
this Agreement, each time the Company (i) files the Prospectus relating to the Placement Shares or amends or supplements the Registration Statement or the Prospectus relating to the Placement Shares (other than a prospectus supplement filed in
accordance with Section 7(l) of this Agreement) by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of document(s) by reference to the Registration Statement or the Prospectus relating to the
Placement Shares; (ii) files an annual report on Form 10-K under the Exchange Act; (iii) files its quarterly reports on Form 10-Q under the Exchange Act; or (iv) files a current report on Form 8-K containing amended audited financial
information (other than information “furnished” pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as discontinued operations in
accordance with Statement of Financial Accounting Standards No. 144) under the Exchange Act (each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall be a “Representation
Date”); the Company shall furnish Cowen (but in the case of clause (iv) above only if (1) a Placement Notice is pending, (2) Cowen reasonably determines that the 

  
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information contained in such Form 8-K is material to a holder of Common Stock and (3) Cowen requests such certificate within three (3) days after the filing of such Form 8-K with the
Commission) with a certificate, in the form attached hereto as Exhibit 7(m) within three (3) Trading Days of any Representation Date. The requirement to provide a certificate under this Section 7(m) shall be automatically
waived for any Representation Date occurring at a time at which no Placement Notice is pending, which waiver shall continue until the earlier to occur of the date the Company delivers a Placement Notice hereunder (which for such calendar quarter
shall be considered a Representation Date) and the next occurring Representation Date; provided, however, that such waiver shall not apply for any Representation Date on which the Company files its annual report on Form 10-K.
Notwithstanding the foregoing, if the Company subsequently decides to sell Placement Shares following a Representation Date when the Company relied on such waiver and did not provide Cowen with a certificate under this Section 7(m), then
before the Company delivers the Placement Notice or Cowen sells any Placement Shares, the Company shall provide Cowen with a certificate, in the form attached hereto as Exhibit 7(m), dated the date of the Placement Notice. 

(n) Legal Opinion. On or prior to the First Delivery Date, the Company shall cause to be furnished to Cowen a
written opinion and negative assurance statement of Cooley LLP (“Company Counsel”), or other counsel reasonably satisfactory to Cowen, in form and substance reasonably satisfactory to Cowen and its counsel, dated the date that the
opinion is required to be delivered and (ii) within the later of (A) three (3) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto as
Exhibit 7(m) or (B) the date a Placement Notice is first delivered by the Company following a Representation Date, the Company shall cause to be furnished to Cowen a negative assurance statement of Company Counsel, dated the date
that the negative assurance statement is required to be delivered, provided, the Company shall not be required to furnish any such opinion or negative assurance statement if Goodwin Procter LLP, or other counsel for Cowen, does not also
deliver a written opinion and negative assurance statement to Cowen dated as of such date; provided, further, with respect to a Representation Date on which the Company files its annual report on Form 10-K the Company shall not be required to
furnish any such negative assurance statement if the Company does not intend to deliver a Placement Notice in such calendar year until such time as the Company delivers its next Placement Notice; provided, further, that in lieu of such
negative assurance statements for subsequent Representation Dates, counsel may furnish Cowen with a letter (a “Reliance Letter”) to the effect that Cowen may rely on a prior negative assurance statement delivered under this
Section 7(n) to the same extent as if it were dated the date of such letter (except that statements in such prior negative assurance statements shall be deemed to relate to the Registration Statement and the Prospectus as amended or
supplemented at such Representation Date). 
 (o) Comfort Letter. On or prior to the First Delivery Date and
within the later of (A) three (3) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto as Exhibit 7(m) or (B) the date a Placement Notice
is first delivered by the Company following a Representation Date, the Company shall cause its independent accountants to furnish Cowen letters (the “Comfort Letters”), dated the date the Comfort Letter is delivered, in form
and substance satisfactory to 

  
 - 21 - 

 
Cowen, (i) confirming that they are an independent registered public accounting firm within the meaning of the Securities Act and the PCAOB, (ii) stating, as of such date, the
conclusions and findings of such firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters” to Cowen in connection with registered public offerings (the first such letter, the
“Initial Comfort Letter”) and (iii) updating the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had it been given on such date and modified as necessary to relate
to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter. 

(p) Market Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or
result in, or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Placement Shares or (ii) sell, bid for, or
purchase the Placement Shares to be issued and sold pursuant to this Agreement, or pay anyone any compensation for soliciting purchases of the Placement Shares other than Cowen; provided, however, that the Company may bid for and purchase shares of
its common stock in accordance with Rule 10b-18 under the Exchange Act. 
 (q) Insurance. The Company and its
Subsidiaries shall maintain, or cause to be maintained, insurance in such amounts and covering such risks as is reasonable and customary for the business for which it is engaged. 

(r) Investment Company Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that
neither it nor the Subsidiaries will be or become, at any time prior to the termination of this Agreement, an “investment company,” as such term is defined in the Investment Company Act, assuming no change in the Commission’s current
interpretation as to entities that are not considered an investment company. 
 (s) Securities Act and Exchange
Act. The Company will use its best efforts to comply with all requirements imposed upon it by the Securities Act and the Exchange Act as from time to time in force, so far as necessary to permit the continuance of sales of, or dealings in, the
Placement Shares as contemplated by the provisions hereof and the Prospectus. 
 (t) No Offer to Sell. Other than
a free writing prospectus (as defined in Rule 405 under the Securities Act) approved in advance by the Company and Cowen in its capacity as principal or agent hereunder, neither Cowen nor the Company (including its agents and representatives, other
than Cowen in its capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405 under the Securities Act), required to be filed with the Commission, that constitutes an offer to sell or
solicitation of an offer to buy Placement Shares hereunder 
 (u) Sarbanes-Oxley. The Company and the
Subsidiaries will use their best efforts to comply with all effective applicable provisions of Sarbanes-Oxley. 
 8. Conditions to
Cowen’s Obligations. The obligations of Cowen hereunder with respect to a Placement will be subject to the continuing accuracy and completeness of the representations and warranties made by the Company herein, to the due performance by the

  
 - 22 - 

 
Company of its obligations hereunder, to the completion by Cowen of a due diligence review satisfactory to Cowen in its reasonable judgment, and to the continuing satisfaction (or waiver by Cowen
in its sole discretion) of the following additional conditions: 
 (a) Registration Statement Effective. The
Registration Statement shall be effective and shall be available for (i) all sales of Placement Shares issued pursuant to all prior Placement Notices and (ii) the sale of all Placement Shares contemplated to be issued by any Placement
Notice. 
 (b) No Material Notices. None of the following events shall have occurred and be continuing:
(i) receipt by the Company or any of its Subsidiaries of any request for additional information from the Commission or any other federal or state governmental authority during the period of effectiveness of the Registration Statement, the
response to which would require any post-effective amendments or supplements to the Registration Statement or the Prospectus; (ii) the issuance by the Commission or any other federal or state governmental authority of any stop order suspending
the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any
of the Placement Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; (iv) the occurrence of any event that makes any material statement made in the Registration Statement or the Prospectus or
any material document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the Registration Statement, related Prospectus or such documents so that, in the case
of the Registration Statement, it will not contain any materially untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and, that in the case
of the Prospectus, it will not contain any materially untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading. 
 (c) No Misstatement or Material Omission. Cowen shall not have advised the
Company that the Registration Statement or Prospectus, or any amendment or supplement thereto, contains an untrue statement of fact that in Cowen’s reasonable opinion is material, or omits to state a fact that in Cowen’s opinion is
material and is required to be stated therein or is necessary to make the statements therein not misleading. 

(d) Material Changes. Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed
with the Commission, there shall not have been any Material Adverse Change or any development that could reasonably be expected to result in a Material Adverse Change. 

(e) Company Counsel Legal Opinion. Cowen shall have received the opinions of Company Counsel required to be
delivered pursuant to Section 7(n) on or before the date on which such delivery of such opinion is required pursuant to Section 7(n). 

(f) Cowen Counsel Legal Opinion. Cowen shall have received from Goodwin Procter LLP, counsel for Cowen, such
opinion or opinions, on or before the date on which the delivery of the Company Counsel legal opinion is required pursuant to Section 7(n), with 

  
 - 23 - 

 
respect to such matters as Cowen may reasonably require, and the Company shall have furnished to such counsel such documents as they request for enabling them to pass upon such matters. 

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

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

(i) Secretary’s Certificate. On or prior to the First Delivery Date, Cowen shall have received a certificate,
signed on behalf of the Company by its corporate Secretary, in form and substance satisfactory to Cowen and its counsel. 

(j) No Suspension. Trading in the Common Stock shall not have been suspended on Nasdaq. 

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

(l) Securities Act Filings Made. All filings with the Commission required by Rule 424 under the Securities Act to
have been filed prior to the issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing by Rule 424. 

(m) Approval for Listing. The Placement Shares shall either have been (i) approved for listing on Nasdaq,
subject only to notice of issuance, or (ii) the Company shall have filed an application for listing of the Placement Shares on Nasdaq at, or prior to, the issuance of any Placement Notice. 

(n) No Termination Event. There shall not have occurred any event that would permit Cowen to terminate this
Agreement pursuant to Section 11(a). 
 9. Indemnification and Contribution. 

(a) Company Indemnification. The Company agrees to indemnify and hold harmless Cowen, the directors, officers,
partners, employees and agents of Cowen and each person, if any, who (i) controls Cowen within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, or (ii) is controlled by or is under common control
with Cowen (a “Cowen Affiliate”) from and against any and all losses, claims, liabilities, expenses and damages (including, but not limited to, any and all reasonable investigative, legal and other

  
 - 24 - 

 
expenses incurred in connection with, and any and all amounts paid in settlement (in accordance with Section 9(c)) of, any action, suit or proceeding between any of the indemnified
parties and any indemnifying parties or between any indemnified party and any third party, or otherwise, or any claim asserted), as and when incurred, to which Cowen, or any such person, may become subject under the Securities Act, the Exchange Act
or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, liabilities, expenses or damages arise out of or are based, directly or indirectly, on (x) any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement or the Prospectus or any amendment or supplement to the Registration Statement or the Prospectus or in any free writing prospectus or in any application or other document executed
by or on behalf of the Company or based on written information furnished by or on behalf of the Company filed in any jurisdiction in order to qualify the Common Stock under the securities laws thereof or filed with the Commission, (y) the
omission or alleged omission to state in any such document a material fact required to be stated in it or necessary to make the statements in it not misleading or (z) any breach by any of the indemnifying parties of any of their respective
representations, warranties and agreements contained in this Agreement; provided, however, that this indemnity agreement shall not apply to the extent that such loss, claim, liability, expense or damage arises from the sale of the
Placement Shares pursuant to this Agreement and is caused directly or indirectly by an untrue statement or omission made in reliance upon and in conformity with written information relating to Cowen and furnished to the Company by Cowen expressly
for inclusion in the Registration Statement or Prospectus. This indemnity agreement will be in addition to any liability that the Company might otherwise have. 

(b) Cowen Indemnification. Cowen agrees to indemnify and hold harmless the Company and its directors and each
officer of the Company that signed the Registration Statement, and each person, if any, who (i) controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or (ii) is controlled
by or is under common control with the Company against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 9(a), as incurred, but only with respect to untrue statements or omissions, or
alleged untrue statements or omissions, made in the Registration Statement (or any amendments thereto) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information relating to Cowen and
furnished to the Company by Cowen expressly for inclusion the Registration Statement or Prospectus. 

(c) Procedure. Any party that proposes to assert the right to be indemnified under this Section 9 will,
promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section 9, notify each such indemnifying party of the
commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might have to any indemnified party otherwise than
under this Section 9 and (ii) any liability that it may have to any indemnified party under the foregoing provision of this Section 9 unless, and only to the extent that, such omission results in the forfeiture of
substantive rights or defenses by the indemnifying party. If any such action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to

  
 - 25 - 

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

(d) Contribution. In order to provide for just and equitable contribution in circumstances in which the
indemnification provided for in the foregoing paragraphs of this Section 9 is applicable in accordance with its terms but for any reason is held to be unavailable from the Company or Cowen, the Company and Cowen will contribute to the
total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, but
after deducting any contribution received by the Company from persons other than Cowen, such as persons who control the Company within the meaning of the Securities Act, officers of the Company who signed the Registration Statement and directors of
the Company, who also may be liable for contribution) to which the Company and Cowen may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and Cowen on the other. The
relative benefits received by the Company on the one hand and Cowen on the other hand shall 

  
 - 26 - 

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

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

  
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 11. Termination. 

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

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

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

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

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

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

12. Notices. All notices or other communications required or permitted to be given by any party to any other party pursuant to the
terms of this Agreement shall be in writing, unless otherwise specified in this Agreement, and if sent to Cowen, shall be delivered to Cowen at Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, fax no. 646-562-1124, Attention:
General Counsel with a copy to Goodwin Procter LLP, fax no. 212-355-3333, attention: Michael D. Maline; or if sent to the Company, shall be delivered to XOMA Corporation, fax no. 510-644-2011, attention: Chief Financial Officer, with a copy to
Cooley LLP, fax no. 212-479-6275, attention: Jim Fulton. Each party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose. Each such notice or other
communication shall be deemed given (i) when delivered personally, by e-mail or by verifiable facsimile transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day (as defined below), or, if such day
is not a Business Day on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized overnight courier and (iii) on the Business Day actually received if deposited in the U.S. mail
(certified or registered mail, return receipt requested, postage prepaid). For purposes of this Agreement, “Business Day” shall mean any day on which the Nasdaq and commercial banks in the City of New York are open for
business. 
 13. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and Cowen
and their respective successors and the affiliates, controlling persons, officers and directors referred to in Section 9 hereof. References to any of the parties contained in this Agreement shall be deemed to include the successors and
permitted assigns of such party. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party; provided, however, that
Cowen may assign its rights and obligations hereunder to an affiliate of Cowen without obtaining the Company’s consent. 

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

15. Entire Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Placement
Notices issued pursuant hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof. Neither this
Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and Cowen. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given 

  
 - 29 - 

 
full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal
or unenforceable term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected in this
Agreement. 
 16. Applicable Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to the principles of conflicts of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough
of Manhattan, for the adjudication of any dispute hereunder or in connection with any transaction contemplated hereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof (certified or registered mail, return receipt requested) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. 

17. Waiver of Jury Trial. The Company and Cowen each hereby irrevocably waives any right it may have to a trial by jury in respect
of any claim based upon or arising out of this Agreement or any transaction contemplated hereby. 
 18. Absence of Fiduciary
Relationship. The Company acknowledges and agrees that: 
 (a) Cowen has been retained solely to act as sales
agent in connection with the sale of the Common Stock and that no fiduciary, advisory or agency relationship between the Company and Cowen has been created in respect of any of the transactions contemplated by this Agreement, irrespective of whether
Cowen has advised or is advising the Company on other matters; 
 (b) the Company is capable of evaluating and
understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement; 

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

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

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

[Remainder of Page Intentionally Blank] 

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

			
	Very truly yours,
	
	COWEN AND COMPANY, LLC
		
	By:	 	 /s/ Grant Miller

	Name:	 	Grant Miller
	Title:	 	Managing Director
	
	 ACCEPTED as of the date

first-above written:

	
	XOMA CORPORATION
		
	By:	 	 /s/ Tom Burns

	Name:	 	Tom Burns
	Title:	 	V.P. Finance & Chief Financial Officer

 SIGNATURE PAGE TO 

SALES AGREEMENT 

 SCHEDULE 1 

FORM OF PLACEMENT NOTICE 
  

			
	From:	  	[                    ]
	Cc:	  	[                    ]
	To:	  	[                    ]
	Subject:	  	Cowen at the Market Offering—Placement Notice
		
	Gentlemen:	  	

 Pursuant to the terms and subject to the conditions contained in the Sales Agreement between XOMA Corporation (the
“Company”), and Cowen and Company, LLC (“Cowen”) dated November 12, 2015 (the “Agreement”), I hereby request on behalf of the Company that Cowen sell up to
[            ] shares of the Company’s common stock, par value $0.0075 per share, at a minimum market price of
$[            ] per share. Sales should begin on the date of this Notice and shall continue until [DATE] [all shares are sold][the aggregate sales price of the shares reaches
$[            ]]. 

 SCHEDULE 2 
  

			
	XOMA Corporation:	  	
	John Varian	  	CEO
	James Neal	  	SVP, COO
	Tom Burns	  	CFO
		
	Cowen and Company, LLC:	  	
	William Follis	  	Director
	Rob Sine	  	Director

 SCHEDULE 3 

Compensation 
 Cowen shall be paid
compensation equal to 3.0% of the gross proceeds from the sales of Common Stock pursuant to the terms of this Agreement. 

 SCHEDULE 4 

Significant Subsidiaries 

XOMA Ireland Limited 
 XOMA
Technology Ltd. 
 XOMA (US) LLC 

XOMA Commercial LLC 
 XOMA CDRA
LLC 
 XOMA UK Limited 

 Exhibit 7(m) 

OFFICER CERTIFICATE 
 The
undersigned, the duly qualified and elected                     , of XOMA Corporation (“Company”), a Delaware
corporation, does hereby certify in such capacity and on behalf of the Company, pursuant to Section 7(m) of the Sales Agreement dated November 12, 2015 (the “Sales Agreement”) between the Company and Cowen
and Company, LLC, that to the best of the knowledge of the undersigned. 
 (i) The representations and warranties of the Company in
Section 6 of the Sales Agreement (A) to the extent such representations and warranties are subject to qualifications and exceptions contained therein relating to materiality or Material Adverse Change, are true and correct on and as
of the date hereof with the same force and effect as if expressly made on and as of the date hereof, except for those representations and warranties that speak solely as of a specific date and which were true and correct as of such date, and
(B) to the extent such representations and warranties are not subject to any qualifications or exceptions, are true and correct in all material respects as of the date hereof as if made on and as of the date hereof with the same force and
effect as if expressly made on and as of the date hereof except for those representations and warranties that speak solely as of a specific date and which were true and correct as of such date; and 

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

			
	By:	 	  

		 	Name:
		 	Title:

Date:Exhibit 10.1

 

Execution Version

 

FORBEARANCE AGREEMENT AND THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS FORBEARANCE AGREEMENT AND THIRD AMENDMENT TO CREDIT AGREEMENT is made and entered into on November 6, 2015, by and among INDUSTRIAL SERVICES OF AMERICA, INC., a Florida corporation (“Parent”), ISA INDIANA, INC., an Indiana corporation (“ISA Inc.”), ISA LOGISTICS LLC, a Kentucky limited liability company (“ISA Logistics”; and, together with Parent and ISA Inc., “Borrowers”), ISA REAL ESTATE, LLC, a Kentucky limited liability company (“ISA Real Estate”), ISA INDIANA REAL ESTATE, LLC, a Kentucky limited liability company (“Indiana Real Estate”), WESSCO, LLC, a Delaware limited liability company (“WESSCO”), 7021 GRADE LANE LLC, a Kentucky limited liability company (“7021 Grade”), 7124 GRADE LANE LLC, a Kentucky limited liability company (“7124 Grade”), 7200 GRADE LANE LLC, a Kentucky limited liability company (“7200 Grade”; and, together with ISA Real Estate, Indiana Real Estate, WESSCO, 7021 Grade, and 7124 Grade, “Guarantors”; and, together with Borrowers, “Loan Parties”), each with their chief executive office and principal place of business at 7100 Grade Lane, Louisville, Kentucky 40213 (except Indiana Real Estate, whose chief executive office is located at 960 South, County Road 900 West, North Vernon, Indiana 47265), and WELLS FARGO BANK, NATIONAL ASSOCIATION (hereinafter referred to as “Lender”) with an office at 1100 Abernathy Road NE, Suite 1600, Atlanta, Georgia 30328.

 

Recitals:

 

Lender, Borrowers and Guarantors are parties to a certain Credit Agreement dated as of June 13, 2014 (as at any time amended, restated, modified or supplemented, the “Credit Agreement”) pursuant to which Lender has made certain revolving credit loans, term loans and other financial accommodations to Borrowers, which loans are secured by security interests in and other liens upon all or substantially all of the assets of Borrowers and guaranteed unconditionally by Guarantors.   Lender and Loan Parties are also parties to that certain Security Agreement dated as of June 13, 2014 (as at any time amended, restated, modified or supplemented, the “Security Agreement”), pursuant to which Loan Parties granted to Lender a security interest in and liens upon substantially all personal property of the respective Loan Parties.

 

Events of Default under (and as defined in) the Credit Agreement exist and are continuing, in consequence of which Lender is entitled to terminate further advances and other extensions of credit to or for the benefit of Borrowers, to declare the entire balance owing to it from Borrowers to be immediately due and payable, to enforce its security interests and other liens in the collateral securing its claim against Borrowers, to enforce its claim against Guarantors, and to take all other enforcement action provided in the Credit Agreement or related documents or authorized by applicable law.

 

Borrowers and Guarantors desire that Lender forbear from exercising certain remedies available to Lender under the Credit Agreement as a consequence of Borrowers’ default in order to afford Borrowers an opportunity to execute their business affairs (including, without limitation, to negotiate and close the sale of various assets) and to pay the indebtedness owing to Lender.

 

Borrowers and Guarantors desire that Lender continue, during the period of Lender’s forbearance, to make loans to Borrowers as hereinafter described.

 

 

Lender is willing to forbear, in accordance with the terms of this Agreement, from exercising remedies available to it as a result of Borrowers’ default under the Credit Agreement and to continue making loans, in its discretion, in accordance with this Agreement and the Credit Agreement, as amended hereby.

 

Statement of Agreement:

 

NOW, THEREFORE, for TEN DOLLARS ($10.00) in hand paid and in consideration of the premises and the mutual covenants herein contained, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.             Definitions; Rules of Construction.

 

(a)           All capitalized terms used in this Agreement, unless otherwise defined, shall have the meaning ascribed to such terms in the Credit Agreement and the Security Agreement.  In addition, as used herein, the following terms shall have the meanings ascribed to them (and these defined terms shall hereafter be deemed and construed to be defined terms in the Credit Agreement):

 

“Agreement” shall mean this Forbearance Agreement.

 

“Acceptable APA” means a duly executed written agreement for the purchase of all or substantially all of the assets of WESSCO and of the “CWS division” by Buyer for a purchase price sufficient to result in payment to Lender of net cash proceeds, after payment of all obligations owed to the Bank of Kentucky that are secured by liens on the assets being sold and payment to D.A. Davidson & Co. of its investment banking fee in connection with the closing of such purchase, in an amount necessary to pay in full the Term Loan and any Overadvance Amount existing as of the WESSCO Closing Date.  Any Acceptable APA shall be in form and substance acceptable to Lender.

 

“Applicable Law” shall mean all laws, rules and regulations applicable to the Person, conduct, transaction, covenant or Loan Document in question, including all applicable common law and equitable principles; all provisions of all applicable state, federal and foreign constitutions, statutes, rules, regulations and orders of governmental bodies; and all orders, judgments and decrees of all courts and arbitrators.

 

“Anticipated Financial Covenant Defaults” shall mean the Events of Default that are anticipated to occur during the Forbearance Period by reason of the Borrowers’ failure to achieve a Fixed Charge Coverage Ratio of not less than 1.25 to 1.00.

 

“Buyer” shall mean a Third Party, as buyer in connection with an LOI.

 

“Budget” shall mean the 13-week cash flow budget and projections delivered to Lender from the Loan Parties on November 2, 2015, as at any time amended, supplemented, updated or modified with the prior written consent of Lender in its discretion.

 

“Forbearance Conditions” shall mean the conditions to forbearance set forth in Section 4 of this Agreement.

 

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“Forbearance Effective Date” shall mean the later to occur of the date of this Agreement or the date on which each of the conditions precedent set forth in Section 6 is satisfied.

 

“Forbearance Period” shall mean the period commencing on the Forbearance Effective Date and ending at 5:00 o’clock p.m. on March 15, 2016, unless extended in writing by Lender in its sole discretion.

 

“Forbearance Termination Date” shall mean the sooner to occur of (a) 5:01 o’clock p.m. on the last day of the Forbearance Period or (b) the date on which Lender’s agreement to forbear terminates as provided in Section 5 of this Agreement.

 

“LOI” shall mean a duly executed written agreement between a Buyer, on the one hand, and WESSCO and Parent, collectively, as seller, on the other hand, that contemplates the execution of an Acceptable APA and is otherwise in form and substance satisfactory to Lender in its discretion.

 

“Payroll Taxes” shall mean all taxes and deposits required to be paid or withheld from the wages or salaries of Borrower’s employees.

 

“Permitted Overadvance Amount” shall mean an outstanding Overadvance Amount not to exceed (i) provided that the Qualified Consultant has confirmed to Lender on or before the date of this Agreement that no material changes to the Budget are anticipated, and that Lender has received a fully executed LOI on or before the date of this Agreement, $750,000 on any date between November 1, 2015 and December 31, 2015, and (ii) $0 on and after the earlier to occur of (x) January 1, 2016, (y) the WESSCO Closing Date, or (z) a date on which any Forbearance Condition is not timely satisfied.

 

“Permitted Real Estate Sale” shall mean the proposed sale by ISA Real Estate of that certain parcel of real estate (and improvements thereon) located at 7110 Grade Lane Louisville, Jefferson County, Kentucky, on such terms and conditions acceptable to Lender in its sole and absolute discretion.

 

“Qualified Consultant” shall mean Conway MacKenzie, Inc., or another financial or turnaround consultant whose experience, qualifications, personnel and terms of retention are acceptable to Lender in its sole and absolute discretion.

 

“Qualified Consultant Engagement Letter” shall mean a written agreement among Loan Parties, on the one hand, and the Qualified Consultant, on the other hand, which sets forth the terms and conditions of the engagement of such Qualified Consultant.  Such agreement shall be in form and substance acceptable to Lender in its sole and absolute discretion and shall thereafter not be amended, restated or otherwise modified without the prior written consent of Lender in its sole and absolute discretion.

 

“Representatives” shall mean, with respect to any Person, such Person’s employees, agents, representatives and financing sources, and any financial advisor, consultant, accountant, legal counsel, agent, representative or expert retained by or acting on behalf such Person.

 

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“Stipulated Defaults” shall mean (i) the Events of Default referenced in Section 2(c) of this Agreement in existence on the date hereof, and (ii) the Anticipated Financial Covenant Defaults.

 

“Third Party” shall mean a Person other than Lender, any Loan Party, or any Affiliate of any Loan Party.

 

“WESSCO Closing Date” shall mean the deadline set forth in the Acceptable APA to close the sale evidenced thereby, which shall be no later than December 31, 2015.

 

“WESSCO Sale” shall mean the sale of, among other things, the assets of WESSCO, contemplated by an Acceptable APA.

 

“WESSCO Sale Covenants” shall mean the covenants set forth in Section 9 of this Agreement.

 

(b)           The terms “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision.  Any pronoun used shall be deemed to cover all genders.  All references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations; to any of the Loan Documents shall include any and all modifications thereto and any and all restatements, extensions or renewals thereof; to any Person shall mean and include the successors and permitted assigns of such Person; to “including” and “include” shall be understood to mean “including, without limitation” (and, for purposes of this Agreement and each other Loan Document, the parties agree that the rule of ejusdem generis shall not be applicable to limit a general statement, which is followed by or referable to an enumeration of specific matters to matters similar to the matters specifically mentioned); to Lender’s discretion shall mean the sole and absolute discretion of Lender; or to the time of day shall mean the time of day on the day in question in Atlanta, Georgia, unless otherwise expressly provided in this Agreement.

 

2.             Acknowledgments and Stipulations by Borrower Loan Parties.  Each Loan Party acknowledges, stipulates and agrees that (a) as of the opening of business on November 4, 2015, the aggregate principal balance, in each case exclusive of costs and attorneys’ fees chargeable to Borrowers under the Loan Documents, (i) the outstanding principal balance of Advances totaled $1,998,843.00; and (ii) the outstanding principal balance of the Term Loan totaled $2,053,333.00; (b) all of the Obligations are absolutely due and owing by Borrowers to Lender without any defense, deduction, offset or counterclaim (and, to the extent any Borrower had any defense, deduction, offset or counterclaim on the date hereof, the same is hereby waived);  (c) Events of Default have occurred and now exist under the Loan Documents and are continuing by reason of (i) the failure of Parent and its Subsidiaries to achieve the minimum EBITDA required under Section 4.3(a) of the Credit Agreement for the period ended December 31, 2014, and each measurement period thereafter; (ii) the failure of the Borrowers and the other Loan Parties to deliver the financial statements and Compliance Certificate required under Section 4.1 and Schedule C to the Credit Agreement by the deadline set forth therein with respect to the year ended December 31, 2014; and (iii) the failure of Parent and Subsidiaries to maintain a Fixed Charge Coverage Ratio required under Section 4.3(c) of the Credit Agreement for each measurement period prior to the date hereof, each of which Events of Default is material; (d) the Loan Documents executed by Loan Parties are legal, valid and binding obligations of Loan Parties enforceable against Loan Parties in accordance with their terms; (e) the security interests and other Liens granted by Borrowers to Lender in the Accounts, Inventory,

 

4

 

General Intangibles, real estate, and other Collateral are duly perfected, first priority security interests and Liens; (f) each Guaranty is a legal, valid and binding obligation of the respective Guarantor signatory thereto, and is enforceable against such Guarantor in accordance with its terms; (g) each of the Recitals contained at the beginning of this Agreement is true and correct; and (h) prior to executing this Agreement, each Loan Party consulted with and had the benefit of advice of legal counsel of its own selection and each has relied upon the advice of such counsel, and in no part upon any representation of Lender concerning the legal effects of this Agreement or any provision hereof.

 

3.             Agreement to Forbear.

 

(a)           If and for so long as each of the Forbearance Conditions is timely satisfied, and subject to the satisfaction of the conditions precedent set forth in Section 6 hereof, Lender agrees that, during the Forbearance Period, it will not, solely by reason of the existence on this date of the Stipulated Defaults, exercise any remedy available to Lender under the Credit Agreement, any of the other Loan Documents or Applicable Law to accelerate the maturity of any of the Obligations, enforce collection from any Loan Party of any of the Obligations, to repossess any of the Collateral, or to foreclose its security interest in or other Liens upon any of the Collateral; provided, however, that the foregoing forbearance shall not (i) restrict, impair or otherwise affect (A) Lender’s rights to make demand for payment of any of the Obligations that exceed the sum of (x) the Borrowing Base at such time plus (y) the Permitted Overadvance Amount at such time, or any other limitations imposed under the Credit Agreement or that are payable on demand under the terms of any of the Loan Documents, (B) charge or accrue interest at the Default Rate, (C) Lender’s rights or remedies (including rights of setoff) under or with respect to any deposit account, blocked account, control account, bank agency, lockbox, Letter of Credit or agreement to which Lender is a party relating to any deposit or other account of any Borrower or any Letter of Credit issued for any Borrower’s or any other Loan Party’s account, (D) Lender’s rights to administer the lending relationship with Borrowers under and in accordance with the Loan Documents and this Agreement, including the imposition, change, release or re-imposition of the Availability Block in such amounts and with respect to such matters as Lender may elect from time to time, or (E) Lender’s right to file, record, publish or deliver a notice of default or document of similar effect relating to any Event of Default that is not a Stipulated Default, or to take any Lien enforcement action as a consequence of any such Event of Default, or (ii) affect any restriction or prohibition in any of the Loan Documents on the right of any Borrower to take or omit to take, or otherwise acquiesce in, certain actions, including any limitations, restriction, or prohibitions with respect to Distributions, advancing monies to any Affiliate, repaying certain Subordinated Debt, consummating acquisitions or making certain dispositions of assets.  Neither this Agreement nor Lender’s forbearance hereunder shall be deemed to be a waiver of or a consent to any Default or Event of Default.

 

4.             Conditions to Forbearance.  The following conditions shall constitute Forbearance Conditions, the timely satisfaction of each and every one of which during the Forbearance Period shall be a condition to the agreement of Lender to forbear as set forth in Section 3 of this Agreement:

 

(a)           Each Loan Party duly and punctually observes, performs and discharges each and every obligation and covenant on its part to be performed under this Agreement and diligently and in good faith seek to satisfy each of the conditions precedent in Section 6 hereof;

 

(b)           No Event of Default occurs or exists other than the Stipulated Defaults;

 

5

 

(c)           No material adverse change occurs in any Loan Party’s business, prospects or financial condition after the date hereof;

 

(d)           All of the Obligations are paid in full on or before the Maturity Date (as amended hereby);

 

(e)           No Guarantor revokes or attempts to revoke or terminate such Guarantor’s Guaranty or otherwise breach any of such Guarantor’s obligations under its respective Guaranty;

 

(f)            No representation or warranty made by any Loan Party in this Agreement proves to have been false or misleading in any material respect;

 

(g)           Each Loan Party timely deducts from the wages of its employees and makes timely and proper deposits for all Payroll Taxes as the same became due and payable, and if, as and when requested to do so by Lender, provides Lender with proof of all deposits for Payroll Taxes;

 

(h)           Each Loan Party is able to pay and does pay, as the same shall become due and payable, all debts incurred by such Loan Party on or after the date hereof;

 

(i)            No Person to whom any Loan Party is indebted under capital leases or for money borrowed accelerates the maturity or demands payment of such indebtedness, in whole or in part;

 

(j)            A Qualified Consultant is engaged by Loan Parties on or before the date of this Agreement, remains engaged by Loan Parties at all times during the Forbearance Period pursuant to the terms of a Qualified Consultant Engagement Letter and, notwithstanding any term or provision set forth herein (or in any other agreement between a Qualified Consultant and any Loan Party) to the contrary, each Loan Party hereby (i) acknowledges and agrees that the scope of the Qualified Consultant’s engagement may be expanded from time to time at Lender’s request in consultation with the Loan Parties, (ii) authorizes and directs each Qualified Consultant to provide Lender with complete access to such Qualified Consultant and its work product (whether created prior to or after the effectiveness of this Agreement), (iii) authorizes and directs each Qualified Consultant to speak freely with Lender concerning all matters relating to its engagement with any Loan Party and to provide Lender with copies of its work product (whether created prior to or after the effectiveness of this Agreement), and (iv) authorizes and directs each Qualified Consultant to actively participate on behalf of Loan Parties in all discussions with Lender;

 

(k)           On or before the date of this Agreement, Qualified Consultant shall have reviewed and approved the initial Budget;

 

(l)            No Loan Party uses proceeds of Advances or Collateral to make any payments for any purpose that is not included in the Budget or in amounts that exceed one hundred three percent (103%) of the amounts shown in the Budget (on a cumulative basis from the date of this Agreement through the relevant payment date), except for payments in respect of the Obligations;

 

(m)          On the date that any sale of real property on which Lender has a Lien is consummated, including, without limitation, the Permitted Real Estate Sale, Lender shall receive all Net Disposition Proceeds (defined as the gross proceeds of the sale less reasonable closing expenses,

 

6

 

brokerage fees and prorated ad valorem real property taxes to be paid by seller) of the sale (provided that this Agreement shall not be deemed or construed to constitute consent by Lender to any sale, and each Loan Party acknowledges and agrees that any sale of real property subject to Liens in favor of Lender shall be on terms and conditions acceptable to Lender in its sole and absolute discretion) for application to the Obligations in accordance with Section 11 hereof;

 

(n)           Each Loan Party is able to pay and does pay, as the same shall become due and payable, all real and personal property taxes owed by such Loan Party on or after the date hereof;

 

(o)           Each of the WESSCO Sale Covenants shall be timely satisfied;

 

(p)           Loan Parties shall achieve total weekly (i) Cash Receipts, and (ii) “Recycling Inventory Sold” of at least eighty percent (80%) of the amounts shown in the Budget, on a cumulative basis, beginning with the week ending November 6, 2015, measured on a weekly basis; and

 

(q)           On or before January 31, 2016, Loan Parties shall have delivered to Lender a commitment letter for financing for the Loan Parties in an amount sufficient to, and which provides that the proceeds will be used to, repay all of the Obligations in full on or before the Maturity Date, which commitment letter must be from a lender acceptable to Lender and on terms and conditions satisfactory to Lender.

 

5.             Termination of Forbearance.  If any one or more of the Forbearance Conditions is not satisfied (time being of the essence), Lender’s agreement to forbear as set forth in Section 3 of this Agreement shall, at Lender’s election but without further notice to or demand upon Borrower, terminate, and Lender shall thereupon have and may exercise from time to time all of the remedies available to it under the Loan Documents and Applicable Law as a consequence of an Event of Default, without further notice to or demand upon Borrower or any other Person.

 

6.             Conditions Precedent.  The following shall constitute conditions precedent, the satisfaction of each of which shall be required as a condition to Lender’s obligation to forbear pursuant to Section 3 hereof:

 

(a)           Lender shall have signed this Agreement and received counterparts of this Agreement duly executed by Loan Parties on or before November 6, 2015;

 

(b)           Borrower shall have paid all fees then due and payable to Lender pursuant to the Credit Agreement and, to the extent invoiced by Lender not less than two Business Days prior to the date of this Agreement, shall have reimbursed Lender for all reasonable costs and expenses incurred by Lender in connection with this Agreement, including the preparation, negotiation and execution of this Agreement and all accrued costs and expenses of consultants and financial advisors employed or retained by Lender in connection with the restructuring of the Obligations and the negotiation of this Agreement;

 

(c)           All of the representations and warranties contained in this Agreement and that are made by each Loan Party are true, complete and accurate on the date hereof;

 

(d)           After giving effect to the terms of this Agreement, no Default or Event of Default shall have occurred and be continuing on the date hereof other than the Stipulated Defaults; and

 

7

 

(e)           Lender shall have received from the applicable Loan Parties duly executed Certificates of Authority in the form attached hereto as Exhibit A.

 

7.             Extensions of Credit.

 

(a)           Notwithstanding the existence of the Stipulated Defaults, and subject to the satisfaction of each of the Forbearance Conditions, Lender, in its discretion, may continue to honor requests by Borrowers for Advances pursuant to the Credit Agreement up to a maximum amount at any time outstanding equal to the Borrowing Base plus the Permitted Overadvance Amount at such time (and in all events not to exceed the Maximum Revolver Amount, as amended hereby), but in no event shall Lender’s honoring of any such requests be deemed a waiver of the Stipulated Defaults or any other Event of Default that may occur or exist.  Lender’s discretion to honor Borrowers’ request for Advances, and the amount of such Advances, may be exercised without regard to the accuracy of any representation made or deemed to be made under, or Borrowers’ compliance with the terms of, the Loan Documents or the existence of any Event of Default.   For the avoidance of doubt, the maximum amount of Advances at any time outstanding may not exceed the sum of the Borrowing Base plus the Permitted Overadvance Amount, regardless of whether the Budget projected a higher amount.

 

(b)           The provisions of Section 1.1(j) of the Credit Agreement notwithstanding, subject to satisfaction of each of the Forbearance Conditions, Borrowers may be permitted to maintain outstanding Advances in excess of the Borrowing Base up to the Permitted Overadvance Amount applicable from time to time, provided that any Overadvance Amount outstanding as of December 31, 2015, must be repaid by that date.

 

(c)           If the unpaid balance of Advances outstanding at any time should exceed the Borrowing Base at such time, all such Advances shall nevertheless constitute Obligations that are secured by all of the Collateral and entitled to all of the benefits thereof.

 

(d)           Each Borrower and each Guarantor acknowledges and agrees that Advances and other extensions of credit made by Lender to or for the benefit of Borrowers during the Forbearance Period have been made in reliance upon, and are consideration for, among other things, the general releases and indemnities contained in this Agreement and the other covenants, agreements, representations and warranties of Borrowers and Guarantors herein.  Borrowers shall not have the right to request, and Lender shall have no obligation to issue or renew, any Letter of Credit; provided, however, nothing herein shall require termination of any Letter of Credit that was in effect as of the date hereof.

 

(e)           Borrowers shall be deemed to have represented and warranted to Lender, on each date that an Advance or other extension of credit is requested by Borrowers, that Borrowers do not intend to use any of the proceeds of any such Advance or other extension of credit, and have not theretofore used the proceeds of any Advance or other extension of credit (or any proceeds of any Collateral), for the purpose of paying any retainer to any legal counsel or other consultant in contemplation of the planned or possible commencement by an Loan Party of any Insolvency Proceeding, unless otherwise disclosed in writing to Lender at or before the time of Borrowers’ request for such Advance or other extension of credit.

 

8.             Budget.  During the Forbearance Period, Loan Parties covenant that, unless otherwise consented to by Lender in writing in its sole and absolute discretion, Loan Parties shall

 

8

 

provide to Lender on or before the 12:00 pm prevailing eastern time on the third (3rd) Business Day of each calendar week (i) an updated 13-week cash flow budget and projections consistent in form and scope with the Budget (it being understood that Lender shall not be deemed to have consented to any amended Budget solely as a result of receiving it from Loan Parties), the accuracy of which must be approved by Qualified Consultant, and the form and substance of which must be satisfactory to Lender in its sole and absolute discretion; and (ii) a variance report in form and substance satisfactory to Lender in its reasonable discretion (each a “Variance Report”) setting forth any variances in actual cash receipts, expenditures, sales, loan balances and availability from those projected in the Budget for the prior week.

 

9.             WESSCO Sale. To induce Lender to forbear in accordance with Section 3 of this Agreement, Loan Parties agree that they, with the assistance of Qualified Consultant, shall negotiate, document and consummate with Buyer an Acceptable APA as soon as practicable.  Notwithstanding the foregoing, nothing herein constitutes or shall be deemed to constitute any consent by Lender to any sale of assets by or equity investment in any Loan Party or any waiver of any of the rights and remedies of Lender with respect thereto.  In addition to the foregoing, but without limitation thereof, the Loan Parties shall strictly and timely comply (time being of the essence of this Section 9) with each and every one of the following additional covenants (collectively, the “WESSCO Sale Covenants”) regarding the asset-sale process:

 

(a)           the LOI shall at no time be revoked or terminated by any party thereto without the prior written consent of Lender;

 

(b)           Loan Parties shall have received and delivered to Lender an Acceptable APA, immediately upon execution, but in any event on or before the close of business on December 7, 2015; and

 

(c)           On or before December 31, 2015, the WESSCO Closing Date shall have occurred under the Acceptable APA and Lender shall have received all of the net cash proceeds of the sale remaining after payment in full of the outstanding debt owed to Bank of Kentucky and payment to D.A. Davidson & Co. of its investment banking fee in connection with the closing of such sale, which proceeds shall be applied to the Obligations in accordance with Section 11 hereof.

 

10.          Access to Information; Lender Meetings.  In addition to, and without in any way limiting the rights of Lender under any of the Loan Documents, Loan Parties:

 

(a) shall (i) give Lender (including employees, agents, advisors and consultants) access to offices, properties, officers, employees, accountants, auditors, counsel and other representatives and the books and records of Loan Parties; (ii) furnish to Lender such financial, operating and property related data and other information as Lender shall reasonably request; and (iii) instruct each Loan Party’s employees, accountants, auditors, counsel, financial advisors and other representatives to cooperate fully with, and upon request regularly consult with, Lender and its representatives in respect of the matter set forth in clauses (i), (ii) and (iii) hereof; and

 

(b)           agree to, at the request of Lender from time to time after the date hereof, conduct a telephonic meeting to be attended by Representatives of Lender, Loan Parties and Qualified Consultant, at which telephonic meeting Representatives of Qualified Consultant and Loan Parties shall present an update on, in addition to such other items as Lender may request in its discretion,

 

9

 

Loan Parties’ operations, the Budget and financial projections generated by Loan Parties, the Collateral, and the status of any LOI or Acceptable APA.

 

11.          Application of Proceeds.  Each Loan Party hereby waives the right, if any, to direct the manner in which Lender applies any payments or Collateral proceeds to the Obligations and agrees that Lender may apply and reapply all such payments or proceeds to the Obligations as Lender in its discretion elects from time to time.   The foregoing notwithstanding, the net cash proceeds of the WESSCO Sale received by Lender shall be applied: first to repay the outstanding balance of principal, interest, and other charges due and owing under the Term Loan; second to repay any outstanding Overadvance Amount (whereupon the Permitted Overadvance Amount shall be reduced to $0), and third, to reduce the outstanding Advances and other interest, fees, and charges outstanding under the Line of Credit, in such order of application as Lender in its discretion elects.   Upon the closing of the Permitted Real Estate Sale, (a) the net cash proceeds thereof received by Lender shall be applied to the outstanding Obligations under the Line of Credit in such order of application as Lender in its discretion elects, and (b) the Availability Block shall be increased dollar-for-dollar by the amount of such Permitted Real Estate Sale proceeds received by Lender.

 

12.          Representations and Warranties of Loan Parties. Each Loan Party represents and warrants to Lender, as an inducement to Lender to enter into this Agreement, that (a) no Default or Event of Default exists under the Loan Documents, except for Stipulated Defaults that are in existence on the date hereof; (b) subject to the existence of the Stipulated Defaults, the representations and warranties of Loan Parties contained in the Loan Documents were true and correct in all material respects when made and continue to be true and correct in all material respects on the date hereof; (c) the execution, delivery and performance by Loan Parties of this Agreement and the consummation of the transactions contemplated hereby are within the entity power of each Loan Party and have been duly authorized by all necessary entity action on the part of such Loan Party, do not require any approval or consent, or filing with, any governmental agency or authority, do not violate any provisions of any law, rule or regulation or any provision of any order, writ, judgment, injunction, decree, determination or award presently in effect in which such Loan Party is named or any provision of the organizational documents of such Loan Party and do not result in a breach of or constitute a default under any agreement or instrument to which such Loan Party is a party or by which it or any of its properties is bound; (d) this Agreement constitutes the legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party in accordance with its terms; (e) all Payroll Taxes required to be withheld from the wages of Borrowers’ employees have been paid or deposited when due; (f) each is entering into this Agreement freely and voluntarily with the advice of legal counsel of his or its own choosing; (g) each has freely and voluntarily agreed to the releases, waivers and undertakings set forth in this Agreement; and (h) no Loan Party presently intends to commence any Insolvency Proceeding.

 

13.          Amendments to Credit Agreement.  The Credit Agreement is hereby amended as follows:

 

(a)           By deleting the amount “$15,000,000” from Section 1.1(a) of the Credit Agreement (the definition of “Maximum Revolver Amount”) and substituting in lieu thereof the amount of “$5,000,000”;

 

(b)           By deleting the amount “$7,500,000” from Section 1.1(a)(ii)(A) of the Credit Agreement and substituting in lieu thereof the amount of “2,500,000”;

 

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(c)           By deleting (i) the percentage “3.00%” from clause (ii) of Section 1.3(a)(1) of the Credit Agreement and substituting in lieu thereof the percentage “4.00%”, and (ii) the percentage “3.25%” from clause (ii) of Section 1.3(a)(2) of the Credit Agreement and substituting in lieu thereof the percentage “4.50%”;

 

(d)           By deleting the date “June 13, 2019” in the definition of “Maturity Date” in Section 7.1 of the Credit Agreement and inserting in lieu thereof the date “March 15, 2016”;

 

(e)           By deleting the amount of “1,250,000” from the definition of Availability Block in Section 7.1 of the Credit Agreement and inserting in lieu thereof the amount of “$1,625,000” (it being understood that the increase in the Availability Block shall correspond to a reduction in the Reserves for Bank Products, such that the first $225,000 in respect of Bank Product exposure shall not result in a Reserve that is duplicative of the $225,000 amount that is being added to the Availability Block hereby).

 

(f)            By inserting the following clause at the beginning of each of subparagraphs (g), (i), and (j) of Section 5.3 of the Credit Agreement:  “except for the Permitted Real Estate Sale and the WESSCO Sale,”.

 

14.          Reaffirmation of Obligations.  Each Borrower hereby ratifies and reaffirms the Loan Documents and all of its covenants, duties, obligations and liabilities thereunder.  Each Guarantor hereby ratifies and reaffirms the validity, legality and enforceability of its respective Guaranty and agrees that such Guaranty is and shall remain in full force and in effect until all the Obligations have been paid in full.

 

15.          Prepayment Charges.  Lender hereby permanently waives the prepayment fees set forth in the Fee Letter.

 

16.          Specific Waivers.  Each Loan Party hereby waives, to the fullest extent permitted by Applicable Law, (a) any and all rights to receive notice in connection with the enforcement by Lender of its liens and security interests with respect to any of the Collateral, including notices under or in connection with UCC § 9-610 through 613 and § 9-623, and (b) the benefit of any statute of limitations that might otherwise bar the recovery of any of the Obligations from any one or more of them.

 

17.          Relationship of Parties; No Third Party Beneficiaries.  Nothing in this Agreement shall be construed to alter the existing debtor-creditor relationship between Loan Parties and Lender.  This Agreement is not intended, nor shall it be construed, to create a partnership or joint venture relationship between or among any of the parties hereto.  No Person other than a party hereto is intended to be a beneficiary hereof and no Person other than a party hereto shall be authorized to rely upon or enforce the contents of this Agreement.

 

18.          Entire Agreement; Amendments; Successors and Assigns.  This Agreement and the other Loan Documents constitute the entire understanding of the parties with respect to the subject matter hereof and thereof; supersedes all other discussions, promises, representations, warranties, agreements and understandings between the parties with respect thereto; may not be modified, altered or amended except by agreement in writing signed by all the parties hereto; and

 

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shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

19.          Construction.  This Agreement has been prepared through the joint efforts of all of the parties hereto.  Neither the provisions of this Agreement nor any alleged ambiguity therein shall be interpreted or resolved against any party on the grounds that such party or its counsel drafted this Agreement, or based on any other rule of strict construction.  Each of the parties represents that such party has carefully read this Agreement and all other instruments and agreements executed in connection herewith and that such party knows the contents hereof and has signed the same freely and voluntarily.

 

20.          Non-Waiver of Default.  Neither this Agreement, Lender’s forbearance hereunder nor Lender’s continued making of loans or other extensions of credit at any time extended to Borrowers in accordance with this Agreement and the Loan Documents shall be deemed a waiver of or consent to the Stipulated Defaults or any other Event of Default.  Each Loan Party agrees that such Events of Default shall not be deemed to have been waived, released or cured by virtue of Loans or other extensions of credit at any time extended to Borrowers, Lender’s agreement to forbear pursuant to the terms of this Agreement or the execution of this Agreement.

 

21.          No Novation; Strict Compliance.  This Agreement is not intended to be, nor shall it be construed to create, a novation or accord and satisfaction and the Credit Agreement and the other Loan Documents shall remain in full force and effect.  Notwithstanding any prior mutual temporary disregard of any of the terms of any of the Loan Documents, the parties agree that the terms of each of the Loan Documents shall be strictly adhered to on and after the date hereof, except as expressly modified by this Agreement.

 

22.          Counterparts; Waiver of Notice of Acceptance.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall constitute an original, but all of which taken together shall be one and the same instrument.  In proving this Agreement or any of the Loan Documents, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought.  Notice of Lender’s acceptance hereof is hereby waived.

 

23.          Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of Kentucky.

 

24.          Reimbursement for Legal Expenses.  Each Borrower jointly and severally agrees to reimburse Lender, on demand, for any costs and expenses, including reasonable legal fees, incurred by Lender in connection with the drafting, negotiation, execution and closing of this Agreement.

 

25.          Release of Claims; Covenant Not to Sue.  To induce Lender to enter into this Agreement, each Loan Party, for itself and on behalf of such Loan Party’s subsidiaries, successors and assigns (collectively with each Loan Party, “Releasors” and individually a “Releasor”), hereby RELEASES, ACQUITS AND FOREVER DISCHARGES each Releasee (as hereinafter defined) from any and all liabilities, claims, demands, actions or causes of action of every kind or nature (if any there be), whether absolute or contingent, due or to become due, disputed or undisputed, liquidated or unliquidated, at law or in equity, or known or unknown (collectively, “Claims”) that any Releasor now has, ever had or hereafter may have against Lender in any capacity or Lender’s officers, directors, employees, agents, attorneys,

 

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representatives, subsidiaries, affiliates and shareholders (collectively with Lender, the “Releasees”) based on acts, transactions or circumstances that have occurred or been consummated on or before the date of this Agreement and that relate to (i) any Loan Documents or Collateral, (ii) any transaction, act or omission contemplated by or described in any Loan Documents or concluded thereunder, or (iii) any aspect of the dealings or relationships between or among any Loan Party, on the one hand, and Lender, on the other hand, under or in connection with any Loan Document or any transaction, act or omission contemplated by or described in any Loan Document or concluded thereunder.  The provisions of this Section shall survive the termination of this Agreement and any of the other Loan Documents and payment in full of the Obligations.  Each Loan Party, for itself and on behalf of such Loan Party’s successors, assigns and other legal representatives, hereby unconditionally and irrevocably agrees such Loan Party will not sue any Releasee on the basis of any Claim released, remised and discharged pursuant to the foregoing provisions of this Section, and if any Loan Party or any of such Loan Party’s successors or assigns violates the foregoing covenant, each Loan Party, for itself and its successors and assigns agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys’ fees and cost incurred by any Releasee as a result of such violation.

 

26.          Waiver of Jury Trial.  To the fullest extent permitted by Applicable Law, the parties hereto each hereby waives the right to trial by jury in any action, suit or proceeding arising out of or related to this Agreement, the Credit Agreement, or any Guaranty.

 

[Rest of page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered on the date first written above.

 

	
 
    	
BORROWERS:
    
	
 
    	
 
    
	
 
    	
INDUSTRIAL SERVICES OF AMERICA, INC.
    
	
 
    	
ISA INDIANA, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Todd Phillips
    
	
 
    	
Name:  Todd Phillips
    
	
 
    	
Title:  Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ISA   LOGISTICS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Industrial Services   of America, Inc., its Sole Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Todd Phillips
    
	
 
    	
 
    	
Name:  Todd Phillips
    
	
 
    	
 
    	
Title:  Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
WESSCO, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Todd Phillips
    
	
 
    	
Name:  Todd Phillips
    
	
 
    	
Title:  Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ISA   REAL ESTATE, LLC
    
	
 
    	
ISA INDIANA   REAL ESTATE, LLC
    
	
 
    	
7021 GRADE LANE LLC
    
	
 
    	
7124 GRADE LANE LLC
    
	
 
    	
7200 GRADE LANE LLC
    
	
 
    	
 
    
	
 
    	
 
    	
By: Algar, Inc.,   their Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Sean Garber
    
	
 
    	
 
    	
Name:  Sean Garber
    
	
 
    	
 
    	
Title:  [President/Chief Executive Officer]
    
						

 

Forbearance Agreement and Amendment to Credit Agreement (ISA)

 

 

	
 
    	
Accepted as of the   date first written above:
    
	
 
    	
 
    
	
 
    	
LENDER:
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph L. White
    
	
 
    	
Name: Joseph L. White
    
	
 
    	
Title: Vice President

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