Document:

Exhibit 10.1

 

Execution
Copy

 

 

 

 

 

 

 

SECURITIES PURCHASE AGREEMENT

 

BY AND BETWEEN

 

Armata
Pharmaceuticals, Inc.

 

AND

 

INNOVIVA, INC.

 

Dated as of January 27, 2020

 

 

 

 

 

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	Article I	DEFINITIONS	1
	Section 1.1	Definitions	1
	Section 1.2	Construction	8
	 	 	 
	Article II	PURCHASE AND SALE	10
	Section 2.1	The Purchase and Sale	10
	Section 2.2	First Closing	10
	Section 2.3	Second Closing	11
	 	 	 
	Article III	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	12
	Section 3.1	Organization and Qualification	12
	Section 3.2	Authorization; Enforcement; Validity	13
	Section 3.3	Issuance of Securities	13
	Section 3.4	No Conflicts	13
	Section 3.5	Consents	14
	Section 3.6	No General Solicitation; Agents’ Fees	14
	Section 3.7	Application of Takeover Protections; Rights Agreement	14
	Section 3.8	SEC Documents; Financial Statements	15
	Section 3.9	Absence of Certain Changes	16
	Section 3.10	Conduct of Business; Regulatory Permits	17
	Section 3.11	Certain Regulatory Matters	18
	Section 3.12	Sarbanes-Oxley Act	19
	Section 3.13	Transactions With Affiliates	19
	Section 3.14	Capitalization	19
	Section 3.15	Indebtedness	20
	Section 3.16	Material Contracts	20
	Section 3.17	Litigation	20
	Section 3.18	Insurance	20
	Section 3.19	Employee Relations	21
	Section 3.20	Title	21
	Section 3.21	Intellectual Property Rights	22
	Section 3.22	Environmental Laws	23
	Section 3.23	Tax Status	23
	Section 3.24	Investment Company Status	24
	Section 3.25	U.S. Real Property Holding Corporation	24
	Section 3.26	Registration Eligibility	24
	Section 3.27	Transfer Taxes	24
	Section 3.28	Shell Company Status	24
	Section 3.29	ERISA Compliance	24
	Section 3.30	Management	25
	Section 3.31	FDA	25
	Section 3.32	Stock Option Plans	26
	Section 3.33	No Disqualification Events	26
	Section 3.34	No Integrated Offering	26
	Section 3.35	Regulation M Compliance	27
	Section 3.36	Disclosure	27

 

    	 	i	 

     

    

 

	Section 3.37	Proxy Statement	27
	Section 3.38	Disclaimer of Other Representations and Warranties	27
	 	 	 
	Article IV	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	28
	Section 4.1	Organization	28
	Section 4.2	Organizational Power and Authority	28
	Section 4.3	Execution and Delivery	28
	Section 4.4	No Conflict	28
	Section 4.5	Consents and Approvals	28
	Section 4.6	No Registration	28
	Section 4.7	Purchasing Intent	29
	Section 4.8	Sophistication; Investigation	29
	Section 4.9	Sufficient Funds	29
	Section 4.10	Bad Actor	29
	 	 	 
	Article V	ADDITIONAL COVENANTS	29
	Section 5.1	Covenants of the Company	29
	Section 5.2	Pre-Closing Exclusivity	32
	Section 5.3	Post-Closing Books and Records	32
	Section 5.4	Stockholder Approval	33
	Section 5.5	A&R Registration Rights Agreement	34
	Section 5.6	Integration	34
	Section 5.7	Required Minimum	34
	Section 5.8	Acknowledgment of Dilution	35
	Section 5.9	Expense Reimbursement	35
	Section 5.10	Blue Sky Filings	35
	 	 	 
	Article VI	CONDITIONS TO THE OBLIGATIONS OF THE PARTIES	35
	Section 6.1	Conditions to the Obligations of the Purchaser at the First Closing	35
	Section 6.2	Conditions to the Obligations of the Company at the First Closing	37
	Section 6.3	Conditions to the Obligations of the Purchaser at the Second Closing	37
	Section 6.4	Conditions to the Obligations of the Company at the Second Closing	38
	 	 	 
	Article VII	INTENTIONALLY OMITTED	39
	 	 	 
	Article VIII	TERMINATION	39
	Section 8.1	Termination	39
	Section 8.2	Effect of Termination	40
	Section 8.3	Termination Fee	40
	Section 8.4	Second Closing Abandonment	40
	 	 	 
	Article IX	GENERAL PROVISIONS	41
	Section 9.1	Notices	41
	Section 9.2	Assignment; Third Party Beneficiaries	42
	Section 9.3	Prior Negotiations; Entire Agreement	42
	Section 9.4	Governing Law; Venue: Forum	42

 

    	 	ii	 

     

    

 

	Section 9.5	Waiver of Jury Trial	42
	Section 9.6	Counterparts	43
	Section 9.7	Waivers and Amendments; Rights Cumulative; Consent; Severability	43
	Section 9.8	Headings	43
	Section 9.9	Specific Performance	43
	Section 9.10	Publicity	44
	Section 9.11	No Recourse	44
	Section 9.12	Further Assurances	44
	Section 9.13	Survival	44

 

EXHIBITS

 

	Exhibit A	Investor Rights Agreement
	Exhibit B	Warrant Certificate
	Exhibit C	Voting Agreement

 

 

 

 

 

 

    	 	iii	 

     

    

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE
AGREEMENT (together with all Exhibits and Schedules hereto, as each may be amended, restated, amended and restated, supplemented
or otherwise modified from time to time in accordance with the terms hereof, this “Agreement”), dated as of
January 27, 2020, is made by and between (i) Armata Pharmaceuticals, Inc., a Washington corporation (the “Company”),
and (ii) Innoviva, Inc., (the “Purchaser”). The Company and the Purchaser are referred to herein individually
as a “Party”, and, collectively as the “Parties.”

 

RECITALS

 

WHEREAS, subject to the
terms and conditions contained in this Agreement, at the Closing (as defined below), the Company intends to issue and sell to the
Purchaser (a) 8,710,800 shares of fully paid and non-assessable Common Stock (the “Purchased Common Stock”)
and (b) Warrants to purchase 8,710,800 shares of Common Stock (as may be adjusted pursuant to Section 2.1(a))
(the “Purchased Warrants”), and the Purchaser desires to purchase such Common Stock and Warrants from the Company

 

WHEREAS, each share of
Purchased Common Stock and each Purchased Warrant will be issued and sold to the Purchaser as a unit at the First Closing and the
Second Closing, as applicable, for a per unit price of $2.87 (the “Per Unit Purchase Price”) payable in accordance
with the terms hereof; and

 

WHEREAS, the Board has
unanimously determined that this Agreement and the transactions contemplated hereby are advisable, fair and in the best interests
of the Company and its stockholders.

 

NOW, THEREFORE, in consideration
of the mutual promises, agreements, representations, warranties and covenants contained herein, the Company (on behalf of itself
and each of its direct and indirect Subsidiaries) and the Purchaser agree as follows:

 

Article
I

 

DEFINITIONS

 

Section
1.1     Definitions. Except as otherwise expressly provided in this Agreement, whenever used in this Agreement (including
any Exhibits and Schedules hereto), the following terms shall have the respective meanings specified therefor below:

 

“A&R Registration
Rights Agreement” has the meaning set forth in Section 5.5.

 

“Acquisition
Proposal” has the meaning set forth in Section 5.2.

 

“Action”
means, any action, suit, claim, arbitration, mediation, litigation, hearing, or other proceeding by or before any court, tribunal
or arbitrator or any Governmental Entity.

 

    	 	1	 

     

    

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly, Controls or is Controlled by or is under common
Control with such Person; provided, however, that neither Purchaser nor any of its Affiliates shall be deemed to
be an Affiliate of the Company or any of its direct and indirect Subsidiaries for purposes of this Agreement. “Affiliated”
has a correlative meaning.

 

“Agreement”
has the meaning set forth in the Preamble.

 

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

 

“Business Day”
means any day that is not a Saturday, Sunday or other day on which commercial banks are required or permitted to be closed in the
State of California.

 

“Bylaws”
means the Company’s bylaws, as amended through the date hereof.

 

“Capital Stock”
means (a) any shares, interests, participations or other equivalents (however designated) of capital stock of a corporation;
(b) any ownership interests in a Person other than a corporation, including membership interests, partnership interests, joint
venture interests and beneficial interests; and (c) any warrants, options, convertible or exchangeable securities, subscriptions,
rights (including any preemptive or similar rights), calls or other rights to purchase or acquire any of the foregoing.

 

“Certificate
of Incorporation” means the certificate of incorporation of the Company, as amended through the date hereof.

 

“Common Stock”
means the common stock, par value $0.01 per share, of the Company, and any Capital Stock into which such Common Stock shall have
been converted, exchanged or reclassified following the date hereof.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company Organizational
Documents” mean the Certificate of Incorporation and the Bylaws.

 

“Company’s
Knowledge,” “Knowledge of the Company” or “Knowledge” means the actual knowledge
of Brian Varnum, Todd R. Patrick and Steve R. Martin.

 

“Contract”
means any agreement, contract or instrument, including any loan, note, bond, mortgage, indenture, guarantee, deed of trust, license,
franchise, commitment, lease, franchise agreement, letter of intent, memorandum of understanding or other obligation, and any amendments
thereto, whether written or oral.

 

“Control”
means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting securities or by contract or agency or otherwise.
 “Controlled” has a correlative meaning.

 

    	 	2	 

     

    

 

“Definitive
Documents” means this Agreement, the A&R Registration Rights Agreement, the Investor Rights Agreement, the Warrant
Certificate and each of the other agreements and instruments entered into and delivered by the Parties hereto in connection with
the transactions contemplated hereby.

 

“Environmental
Laws” means all applicable federal, state, local or foreign Laws relating to pollution or protection of human health
or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including Laws relating
to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances
or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations,
codes, demands or demand letters, licenses, notices or notice letters, Orders, permits, plans or regulations issued, entered, promulgated
or approved thereunder.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations thereunder.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that together with the Company or any of its Subsidiaries is treated
as a single employer within the meaning of Section 414 of the Code or Section 4001 of ERISA.

 

“ERISA Event”
means (1) a Reportable Event with respect to a Pension Plan; (2) a withdrawal by the Company, any of its Subsidiaries or any of
their respective ERISA Affiliates from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as a termination under Section
4062(e) of ERISA; (3) a complete or partial withdrawal by the Company, any of its Subsidiaries or any of their respective ERISA
Affiliates from a Multiemployer Plan, written notification of any member of the Consolidated Group or any of their respective ERISA
Affiliates concerning the imposition of Withdrawal Liability or written notification that a Multiemployer Plan is in reorganization
within the meaning of Title IV of ERISA or that a Multiemployer Plan has been determined to be in “endangered” or critical
status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (4) the filing under Section 4041(c) of ERISA of
a notice of intent to terminate a Pension Plan, the treatment of a Pension Plan or Multiemployer Plan amendment as a termination
under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (5) the imposition of any liability under Title IV of ERISA, other than for the payment of plan contributions or PBGC premiums
due but not delinquent under Section 4007 of ERISA, upon the Company, any of its Subsidiaries or any of their respective ERISA
Affiliates, (6) the failure to satisfy the minimum funding standards (within the meaning of Section 412 of the Code or Section
302 of ERISA) with respect to any Pension Plan, (7) the application for a minimum funding waiver under Section 302(c) of ERISA
with respect to a Pension Plan, (8) the imposition of a Lien under Section 303(k) of ERISA with respect to any Pension Plan, (9)
a determination that any Pension Plan is in “at risk” status (within the meaning of Section 303 of ERISA), or (10)
the Company, any of its Subsidiaries or any of their respective ERISA Affiliates has engaged in a transaction that is subject to
Sections 4069 or 4212(c) of ERISA.

 

    	 	3	 

     

    

 

“Expense Reimbursement”
means the reimbursement obligation contemplated by Section 5.9.

 

“First Closing”
has the meaning set forth in Section 2.2(a).

 

“First Closing
Date” has the meaning set forth in Section 2.2(a).

 

“First Common
Stock” means the maximum number of shares of Common Stock issuable at the First Closing to Purchaser in compliance with
any and all Laws and without the requirement for the prior receipt of the Stockholder Approval under the listing requirements of
the NYSE American, assuming that Warrants to purchase an equal number of shares of Common Stock are also issued to Purchaser at
the First Closing.

 

“First Purchase
Price” means an amount in cash equal to the product of (i) the number of shares of First Common Stock multiplied by
(ii) the Per Unit Purchase Price.

 

“First Warrants”
means Warrants to purchase a number of shares of Common Stock equal to the number of shares of First Common Stock.

 

“Fundamental
Representations” has the meaning set forth in Section 9.13.

 

“GAAP”
means United States generally accepted accounting principles, consistently applied, as in effect from time to time.

 

“Governmental
Entity” means any applicable nation, state, county, city, town, village, district or other political jurisdiction of
any nature, federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any
nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), stock exchange,
multi-national organization or body, or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative,
police, regulatory, or Taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity
or enterprise owned or controlled by a government or a public international organization or any of the foregoing.

 

“Indebtedness”
means (a) any indebtedness or other obligation for borrowed money, whether current, short-term or long-term and whether secured
or unsecured; (b) any indebtedness evidenced by any note, bond, debenture or other security or similar instrument; (c) any
liabilities with respect to interest rate or currency swaps, collars, caps and similar hedging obligations; (d) any liabilities
in respect of any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof,
which liabilities are required to be classified and accounted for under GAAP as capital leases; (e) any liabilities under
any performance bond or letter of credit or any bank overdrafts and similar charges; (f) any accrued interest, premiums, penalties
and other obligations relating to the foregoing items in clauses (a) through (e); and (g) any indebtedness referred to in
clauses (a) through (f) above of any Person that is either guaranteed (including under any “keep well” or similar arrangement)
by, or secured (including under any letter of credit, banker’s acceptance or similar credit transaction) by any Lien upon
any property or asset owned by, the Company or any of its Subsidiaries.

 

    	 	4	 

     

    

 

“Insolvent”
means, (i) with respect to the Company and its Subsidiaries, on a consolidated basis, (A) the present fair saleable value of the
Company’s and its Subsidiaries’ assets is less than the amount required to pay the Company’s and its Subsidiaries’
total Indebtedness, (B) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent
or otherwise, as such debts and liabilities become absolute and matured or (C) the Company and its Subsidiaries intend to incur
or believe that they will incur debts that would be beyond their ability to pay as such debts mature; and (ii) with respect to
the Company and each Subsidiary, individually, (A) the present fair saleable value of the Company’s or such Subsidiary’s
(as the case may be) assets is less than the amount required to pay its respective total Indebtedness, (B) the Company or such
Subsidiary (as the case may be) is unable to pay its respective debts and liabilities, subordinated, contingent or otherwise, as
such debts and liabilities become absolute and matured or (C) the Company or such Subsidiary (as the case may be) intends to incur
or believes that it will incur debts that would be beyond its respective ability to pay as such debts mature.

 

“Investor Rights
Agreement” means an Investor Rights Agreement to be entered into by the Company, Purchaser and the other parties thereto
in substantially the form set forth on Exhibit A hereto.

 

“Law”
means any law, statute, code, ordinance, regulation or rule of any Governmental Entity.

 

“Lien”
means any lien, adverse claim, charge, option, right of first refusal, preemptive right, servitude, security interest, mortgage,
pledge, deed of trust, easement, encumbrance, restriction on transfer, Taxes, conditional sale or other title retention agreement,
defect in title or other restrictions of any kind; provided that restrictions on transfer arising under applicable securities
Laws shall not be Liens.

 

“Material Adverse
Effect” means any effect, change, event, development, condition or occurrence that, individually or together with one
or more effects, changes, events, developments, conditions or occurrences, has had or would be reasonably expected to have or result
in a material adverse effect or material adverse change on the business, assets, liabilities, properties, financial condition or
operating results of the Company and its Subsidiaries, taken as a whole, or to the ability of the Company to consummate timely
the transactions contemplated by this Agreement.

 

“Material Contract”
means any Contract that would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(10)
of Regulation S-K under the Securities Act.

 

“Multiemployer
Plan” means any multiemployer plan as defined in Section 4001(a)(3) of ERISA and subject to Title IV of ERISA, to which
any member of the Consolidated Group or any of their respective ERISA Affiliates makes or is obligated to make contributions, or,
during the preceding five (5) plan years, has made or has been obligated to make contributions.

 

“NYSE American”
means the NYSE American stock exchange maintained by the New York Stock Exchange (NYSE).

 

    	 	5	 

     

    

 

“Order”
means any judgment, order, award, injunction, writ, permit, license, settlement or decree issued, promulgated, made, rendered or
entered into by or with any Governmental Entity or arbitrator of applicable jurisdiction (in each case, whether temporary, preliminary
or permanent).

 

“Party”
or “Parties” has the meaning set forth in the Preamble.

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“Pension Plan”
means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer
Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Company, any of its Subsidiaries or any of their
respective ERISA Affiliates or to which the Company, any of its Subsidiaries or any of their respective ERISA Affiliates contributes
or has an obligation to contribute or has made or has had an obligation to make contributions at any time in the preceding five
plan years.

 

“Person”
means an individual, firm, corporation (including any non-profit corporation), partnership, limited liability company, joint venture,
association, trust, Governmental Entity or other entity or organization.

 

“Plan”
means any material “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Company
or any of its Subsidiaries, or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA,
any of their respective ERISA Affiliates.

 

“Registration
Rights Agreement” means that certain Amended and Restated Registration Rights Agreement, dated as of May 9, 2019,
as amended through the date hereof.

 

“Related Party”
means, with respect to any Person, (a) any former, current or future director, officer, agent, Affiliate, employee, general
or limited partner, member, manager or stockholder of such Person and (b) any former, current or future director, officer,
agent, Affiliate, employee, general or limited partner, member, manager or stockholder of any of the foregoing.

 

“Reportable
Event” means, with respect to any Pension Plan, any of the events set forth in Section 4043(c) of ERISA or the regulations
issued thereunder, other than events for which the thirty (30) day notice period has been waived.

 

“Representatives”
means, with respect to any Person, such Person’s directors, officers, members, partners, managers, employees, agents, investment
bankers, attorneys, accountants, advisors and other representatives.

 

“Required Minimum”
means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future
pursuant to this Agreement, including the shares of Common Stock issuable upon exercise in full of all Purchased Warrants.

 

“Sanctioned
Country” means any country or region that is subject or target of a comprehensive trade embargo under Sanctions.

 

    	 	6	 

     

    

 

“Sanctioned
Person” means any individual or entity that is the subject or target of Sanctions, including (i) any individual or entity
listed on any Sanctions-related restricted party list, including the U.S. Department of Treasury, Office of Foreign Asset Control’s
(“OFAC”) Specially Designated Nationals and Blocked Persons List and the EU Consolidated List, (ii) any entity
that is owned, directly or indirectly, or otherwise controlled by a Person or Persons described in clause (i) above, (iii) any
national, resident, government, agency, or instrumentality of a Sanctioned Country or (iv) any individual or entity otherwise the
subject or target of Sanctions.

 

“Sanctions”
means all applicable Laws relating to economic, financial or trade sanctions, including any such Laws administered or enforced
by the U.S. government (including by OFAC or the U.S. Department of State), the United Nations Security Council, the European Union,
the United Kingdom (include by Her Majesty’s Treasury) or any other relevant Governmental Entity that administers or enforces
economic, financial or trade sanctions.

 

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

 

“Second Closing”
has the meaning set forth in Section 2.2(a).

 

“Second Closing
Date” has the meaning set forth in Section 2.2(a).

 

“Second Common
Stock” means an amount equal to (i) the aggregate number of shares of Purchased Common Stock, minus (ii) the number
of shares of First Common Stock.

 

“Second Purchase
Price” means an amount in cash equal to the product of (i) the number of shares of Second Common Stock multiplied
by (ii) the Per Unit Purchase Price.

 

“Second Warrants”
means Warrants to purchase a number of shares of Common Stock equal to the number of shares of Second Common Stock.

 

“Securities”
means the Purchased Common Stock and the Purchased Warrants (including the shares of Common Stock issuable upon exercise of the
Purchased Warrants), in each case, that will be delivered to Purchaser pursuant to this Agreement.

 

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

 

“Stockholder
Approval” means such approval as may be required by the applicable rules and regulations of NYSE American (or any successor
entity) from the stockholders of the Company with respect to the transactions contemplated by this Agreement and the other Definitive
Documents.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, joint venture or other legal entity as to which such Person (either
alone or through or together with any other subsidiary), (a) owns, directly or indirectly, more than fifty percent (50%) of
the stock or other equity interests, (b) has the power to elect a majority of the board of directors or similar governing
body, or (c) has the power to direct the business and policies.

 

    	 	7	 

     

    

 

“Tax Contest”
means any audit, suit, conference, action, assessment, investigation, claim, administrative or judicial proceeding, or other similar
interaction with a Governmental Entity with respect to any Tax.

 

“Tax Returns”
means any and all reports, returns, declarations, claims for refund, elections, disclosures, estimates, information reports or
returns or statements supplied or required to be supplied to a Governmental Entity in connection with Taxes, including any schedule
or attachment thereto or amendment thereof.

 

“Taxes”
means (i) all taxes, assessments, duties, levies or other similar governmental charges paid or payable to a Governmental Entity,
including all federal, state, local, foreign and other income, franchise, profits, gross receipts, capital gains, capital stock,
transfer, property, sales, use, value-added, occupation, excise, severance, windfall profits, stamp, payroll, social security,
withholding and other taxes, assessments, duties, levies (whether payable directly or by withholding and whether or not requiring
the filing of a return), all estimated taxes, deficiency assessments, additions to tax, penalties and interest thereon, (ii) any
liability for such amounts described in clause (i) as a result of being a member of a combined, consolidated, unitary,
or affiliated group and (iii) any and all liability for the payment of any amounts described above in clauses (i) and (ii) as
a result of any express or implied obligation to indemnify any other person, or any successor or transferee liability. “Taxing”
and “Taxation” each have a correlative meaning.

 

“Termination
Date” has the meaning set forth in Section 8.1(b).

 

“Termination
Fee” has the meaning set forth in Section 8.3.

 

“Voting Agreements”
means the voting agreements to be entered into by the Purchaser and certain stockholders of the Company holding at least a majority
of the outstanding shares of Common Stock as of the date hereof, in substantially the form set forth on Exhibit C hereto.

 

“Warrant Certificate”
means the certificate in substantially the form attached hereto as Exhibit B.

 

“Warrants”
means warrants to purchase shares of Common Stock, at an exercise price of $2.87 per share, represented by and on the terms set
forth herein and in the Warrant Certificate.

 

“Withdrawal
Liability” means the liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such term is defined in Part I of Subtitle E of Title IV of ERISA.

 

Section
1.2     Construction. In this Agreement, unless the context otherwise requires:

 

(a)       references
to Articles, Sections, Exhibits and Schedules are references to the articles and sections or subsections of, and the exhibits
and schedules attached to, this Agreement;

 

    	 	8	 

     

    

 

(b)       references
in this Agreement to “writing” or comparable expressions include a reference to a written document transmitted by means
of electronic mail in portable document format (pdf), facsimile transmission or comparable means of communication;

 

(c)       words
expressed in the singular number shall include the plural and vice versa; words expressed in the masculine shall include the feminine
and neuter gender and vice versa;

 

(d)       the
words “hereof,” “herein,” “hereto” and “hereunder,” and words of similar import,
when used in this Agreement, shall refer to this Agreement as a whole, including all Exhibits and Schedules attached to this Agreement,
and not to any provision of this Agreement;

 

(e)       the
term “this Agreement” shall be construed as a reference to this Agreement as the same may have been, or may from time
to time be, amended, modified, varied, novated or supplemented;

 

(f)       “include,”
 “includes” and “including” are deemed to be followed by “without limitation” whether or not
they are in fact followed by such words;

 

(g)       references
to “day” or “days” are to calendar days;

 

(h)       if
the last day for the giving of any notice or the performance of any act required or permitted under this Agreement is a day that
is not a Business Day, then the time for the giving of such notice or the performance of such action shall be extended to the next
succeeding Business Day;

 

(i)       references
to “the date hereof” or “the date of the Agreement” means the date of this Agreement;

 

(j)       references
to “ordinary course of business” means the ordinary and usual course of normal day-to-day operations of the Company,
consistent with past practices

 

(k)       the
word “or” is disjunctive but not necessarily exclusive;

 

(l)       unless
otherwise specified, references to any Law means such Law as amended from time to time and includes any successor Law thereto and
any rules or regulations promulgated thereunder in effect from time to time; and

 

(m)       references
to “dollars” or “$” refer to currency of the United States of America, unless otherwise expressly provided.

 

    	 	9	 

     

    

 

Article
II

 

PURCHASE AND SALE

 

Section
2.1     The Purchase and Sale.

 

(a)       On
the terms and subject to the conditions set forth herein, at the First Closing, the Purchaser hereby agrees to purchase (or cause
certain of its Subsidiaries to purchase), and the Company shall sell to Purchaser (or such Subsidiaries) in exchange for the First
Purchase Price, (i) the First Common Stock, free and clear of all Liens and (ii) the First Warrants, free and clear of
all Liens; provided, that, if during the period from the date hereof until and including the First Closing, the Company
issues to any Person any shares of Common Stock or Capital Stock or similar securities convertible into, exchangeable for or having
the right to subscribe for shares of Common Stock at a price per share less than the Per Unit Purchase Price (other than shares
of Common Stock issued upon the exercise of options, warrants or similar securities outstanding as of the date hereof), the number
of Warrants issued to the Purchaser at the First Closing will be proportionally and ratably increased such that the Warrants issued
to Purchaser will not be affected by any such dilution.

 

(b)       
On the terms and subject to the conditions set forth herein, at the Second Closing, the Purchaser hereby agrees to purchase (or
cause certain of its Subsidiaries to purchase), and the Company shall sell to Purchaser (or such Subsidiaries) in exchange for
the Second Purchase Price, (i) the Second Common Stock, free and clear of all Liens and (ii) the Second Warrants, free
and clear of all Liens; provided, that, if during the period from the date hereof until and including the Second Closing,
the Company issues to any Person any shares of Common Stock or Capital Stock or similar securities convertible into, exchangeable
for or having the right to subscribe for shares of Common Stock at a price per share less than the Per Unit Purchase Price (other
than shares of Common Stock issued upon the exercise of options, warrants or similar securities outstanding as of the date hereof),
the number of Warrants issued to the Purchaser at the Second Closing will be proportionally and ratably increased such that the
Warrants issued to Purchaser will not be affected by any such dilution

 

(c)       The
Parties agree that the Common Stock and Warrants to be purchased by Purchaser hereunder shall be issued in reliance upon the exemption
from registration set forth in Section 4(a)(2) of the Securities Act.

 

Section
2.2     First Closing.

 

(a)       The
closing of the purchase of the First Common Stock and First Warrants (the “First Closing”) shall take place
remotely via the electronic exchange of documents and signatures, or at such other time and place as the Parties may agree in writing,
on the first (1st) Business Day after satisfaction or waiver of the conditions set forth in Section 6.1 and Section
6.2 (other than those conditions that by their terms are to be satisfied at the First Closing, but subject to the satisfaction
or waiver of those conditions). The date on which the First Closing actually occurs shall be referred to herein as the “First
Closing Date.” At the First Closing, the Company shall issue the First Common Stock and First Warrants to the Purchaser
free and clear of all Liens against payment by the Purchaser of the First Purchase Price.

 

    	 	10	 

     

    

 

(b)       At
the First Closing, the Company shall:

 

(i)       deliver
or cause to be delivered to the Purchaser:

 

(A)       a
certificate of good standing of the Company as of a date no earlier than two (2) Business Days prior to the First Closing
Date;

 

(B)       the
certificate contemplated by Section 6.1(f);

 

(C)       counterparts
to Warrant Certificates representing the full number of First Warrants (as may be adjusted pursuant to Section 2.1(a));

 

(D)       copies
of the resolutions or written consents duly adopted by the Board and certified by the Company’s secretary authorizing the
execution, delivery and performance of this Agreement and the transactions contemplated hereby, including the Charter Amendment;
and

 

(E)       counterparts
to the A&R Registration Rights Agreement, duly executed by the Company and the other parties thereto; and

 

(F)       counterparts
to the Investor Rights Agreement, duly executed by the Company and the other parties thereto;

 

(ii)       deliver
or cause to be delivered any other customary documents or certificates reasonably requested by Purchaser which are reasonably necessary
to give effect to the Closing; and

 

(iii)       pay,
or cause to be paid to Purchaser (which may be set off against the First Purchase Price), any portion of the Expense Reimbursement
then accrued and unpaid.

 

Section
2.3     Second Closing.

 

(a)       The
closing of the purchase of the Second Common Stock and Second Warrants (the “Second Closing”) shall take place
remotely via the electronic exchange of documents and signatures, or at such other time and place as the Parties may agree in writing,
on the first (1st) Business Day after satisfaction or waiver of the conditions set forth in Section 6.3 and Section
6.4 (other than those conditions that by their terms are to be satisfied at the Second Closing, but subject to the satisfaction
or waiver of those conditions). The date on which the Second Closing actually occurs shall be referred to herein as the “Second
Closing Date.” At the Second Closing, the Company shall issue the Second Common Stock and Second Warrants to the Purchaser
free and clear of all Liens against payment by the Purchaser of the Second Purchase Price.

 

(b)       At
the Second Closing, the Company shall:

 

(i)       deliver
or cause to be delivered to the Purchaser:

 

    	 	11	 

     

    

 

(A)       a
certificate of good standing of the Company as of a date no earlier than two (2) Business Days prior to the Second Closing
Date;

 

(B)       the
certificate contemplated by Section 6.1(f); and

 

(C)       a
certified copy of the Certificate of Incorporation, duly amended to renounce, to the fullest extent permitted by applicable Law,
any interest or expectancy of the Company in, or in being offered an opportunity to participate in, any business opportunities
presented to the officers, directors or stockholders of the Company (the “Charter Amendment”), or such other
document or instrument reasonably satisfactory to the Purchaser confirming that no such interest or expectancy exists;

 

(D)       counterparts
to Warrant Certificates representing the full number of Second Warrants (as may be adjusted pursuant to Section 2.1(a));

 

(ii)       pay,
or cause to be paid to Purchaser (which may be set off against the Second Purchase Price), any portion of the Expense Reimbursement
then accrued and unpaid; and

 

(iii)       deliver
or cause to be delivered any other customary documents or certificates reasonably requested by Purchaser which are reasonably necessary
to give effect to the Closing.

 

Article
III

 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except as set forth in
the SEC Documents filed with the SEC prior to the date hereof and publicly available on the SEC’s Electronic Data Gathering
Analysis and Retrieval system (but excluding any forward-looking disclosures set forth in any “risk factors” section,
any disclosures in any “forward-looking statements” section and any other disclosures included therein to the extent
they are predictive or forward-looking in nature), the Company hereby represents and warrants to the Purchaser as of the date hereof,
as of the First Closing, and as of the Second Closing, as follows:

 

Section
3.1     Organization and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized,
validly existing and in good standing under the Laws of the jurisdiction in which they are formed, and each has the requisite power
and authority to own its properties and to carry on its business as now being conducted and as presently proposed to be conducted.
Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in
every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary,
except to the extent that the failure to be so qualified or be in good standing would not, individually or in the aggregate, have
a Material Adverse Effect. Other than the Persons set forth on Exhibit 21.1 to the Company’s Registration Statement on Form
S-1, filed with the SEC on December 20, 2019, as amended, the Company has no Subsidiaries and does not own Capital Stock in any
other Person.

 

    	 	12	 

     

    

 

Section
3.2     Authorization; Enforcement; Validity. Subject to the Stockholder Approval, the Company has the requisite power
and authority to enter into and perform its obligations under the Agreement and the other Definitive Documents, to consummate the
transaction contemplated hereby and thereby and to issue the Securities in accordance with the terms hereof and thereof. The execution
and delivery of the Agreement and the other Definitive Documents by the Company, and the consummation by the Company of the transactions
contemplated hereby and thereby (including the issuance of the Securities and the reservation for issuance and issuance of Common
Stock issuable upon the exercise of the Warrants in accordance with, and pursuant to, the Warrant Certificate) have been duly authorized
by the Company, and such authorization has not been, and as of the Closing will not have been, subsequently rescinded or modified
in any way, and, no further filing, consent or authorization is or will be required to be made by or on behalf of the Company,
its Subsidiaries and their respective boards of directors, stockholders or other governing bodies in connection with the transactions
contemplated by the Definitive Documents. The Agreement has been, and the other Definitive Documents to which the Company is a
party will be, prior to the First Closing or Second Closing, as applicable, duly executed and delivered by the Company, and each
constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective
terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies and except as rights to indemnification and to contribution may be limited by applicable federal or state securities
Law (the “General Enforceability Exceptions”).

 

Section
3.3     Issuance of Securities. The issuance of the Securities is duly authorized, and upon issuance in accordance with
the terms of the Definitive Documents will be validly issued, fully paid and non-assessable (to the extent such concepts are applicable)
and free and clear of all Liens. The issuances of the Securities in connection with the transactions contemplated by the Definitive
Documents are in compliance, in all respects, with all applicable Laws, and the Securities are not subject to, and will not be
issued in violation of, any purchase options, call options, rights of first refusal, preemptive rights, subscription rights or
any similar rights under applicable Law, the Company Organizational Documents or any Contract to which the Company or any of its
Subsidiaries is a party or by which it is bound. Subject to the accuracy of the representations and warranties of the Purchaser
set forth in Article IV, the offer and issuance by the Company of the Securities is exempt from registration under the Securities
Act. As of the First Closing, the Company will have reserved from its duly authorized Capital Stock the maximum number of shares
of Common Stock authorized under its Certificate of Incorporation that are available after giving effect to shares of Common Stock
reserved for issuance or issuable upon the exercise of the Purchased Warrants. Upon the issuance of Common Stock following an exercise
of the Purchased Warrants in accordance with the Warrant Certificate, such Common Stock, when issued, will be validly issued, fully
paid and non-assessable and free and clear of all Liens, with the holders thereof being entitled to all rights accorded to a holder
of Common Stock.

 

Section
3.4     No Conflicts. The execution, delivery and performance of this Agreement and the other Definitive Documents by
the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including the issuance of
the Securities and the reservation for issuance and issuance of Common Stock issuable upon the exercise of the Purchased Warrants
in accordance with the Warrant Certificate) will not (i) result in a violation of the Certificate of Incorporation, Bylaws, certificate
of formation, memorandum of association, articles of association, bylaws or other organizational documents of the Company or any
of its Subsidiaries (collectively, the “Group Companies Organizational Documents”), (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any Contract that would be required to be filed by the Company
as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act or other agreement,
indenture or instrument to which the Company or any of its Subsidiaries is a party, other than (a) the acceleration of vesting
of restricted stock awards set forth in the SEC Documents and (b) the deemed exercise of warrants to purchase Common Stock set
forth in the SEC Documents, or (iii) result in a material violation of any Law (including, for the avoidance of doubt, foreign,
federal and state securities Laws and the rules and regulations of the NYSE American) or Order that would be material to the business
of the Company and its Subsidiaries taken as a whole.

 

    	 	13	 

     

    

 

Section
3.5     Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order
of, or make any filing or registration with any Governmental Entity or any regulatory or self-regulatory agency or any other Person
in order for it to execute, deliver or perform any of its respective obligations under or contemplated by this Agreement or the
other Definitive Documents, in each case, in accordance with the terms hereof and thereof. To the Company’s Knowledge, no
facts or circumstances exist which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the
registrations, applications or filings contemplated by the Definitive Documents. The Company is not in violation of the requirements
of the NYSE American and has no Knowledge of any facts or circumstances which could reasonably lead to delisting or suspension
of the Common Stock.

 

Section
3.6     No General Solicitation; Agents’ Fees. Neither the Company, nor any of its Subsidiaries, Affiliates, Representatives
or any other Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within
the meaning of Regulation D) in connection with the offer or sale of the Securities. Except for amounts payable to Ladenburg Thalmann
 & Co. Inc. or any of its Affiliates, no placement agent’s fees, financial advisory fees, or brokers’ commissions
or fees or any similar fees are or will be owed or payable to any Person in connection with transactions contemplated by the Definitive
Documents. Neither the Company nor any of its Subsidiaries has engaged any placement agent or other agent in connection with the
offer or sale of the Securities. The Company further acknowledges that Purchaser is not acting as a financial advisor or fiduciary
of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Definitive Documents and the transactions
contemplated thereby and that the Company’s decision to enter into the Definitive Documents to which it is a party has been
based solely on the independent evaluation by the Company and its Representatives.

 

Section
3.7     Application of Takeover Protections; Rights Agreement. Prior to the First Closing, the Company and its board
of directors will have taken all necessary actions, if any, in order to comply with or obtain waivers in connection with any control
share acquisition, interested stockholder, business combination, poison pill (including any distribution under a rights agreement),
stockholder rights plan or other similar anti-takeover provision under any of the Group Companies Organizational Documents or the
Laws of the jurisdiction of its incorporation or otherwise which is or could become applicable to Purchaser as a result of the
transactions contemplated by the Definitive Documents, including the Company’s issuance of the Securities and ownership by
the Purchaser of the Securities. The Company and the Board have taken all necessary action, if any, in order to render inapplicable
any stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of shares of Common Stock
or a change in control of the Company or any of its Subsidiaries.

 

    	 	14	 

     

    

 

Section
3.8     SEC Documents; Financial Statements.

 

(a)       The
Company (including its predecessors) has timely filed all reports, schedules, forms, proxy statements, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act or the Securities Act (all of the
foregoing filed since January 1, 2017 and all exhibits and appendices included therein and financial statements, notes and schedules
thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”).
The Company has delivered or has made available to Purchaser true, correct and complete copies of each of the SEC Documents not
available on the EDGAR system. As of their respective dates, the SEC Documents complied in all material respects with the requirements
of the 1934 Act, the rules and regulations of the SEC promulgated thereunder and the rules and regulations of the NYSE American,
in each case, applicable to the SEC Documents, and none of the SEC Documents contains any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. None of the Company’s Subsidiaries is subject to the periodic
reporting requirements of the 1934 Act. There are no outstanding or unresolved comments in comment letters from the SEC staff with
respect to any of the SEC Documents. To the Company’s Knowledge, no SEC Document is the subject of ongoing SEC review or
outstanding SEC investigation.

 

(b)       As
of their respective dates, the audited and unaudited financial statements of the Company and its predecessors included in the SEC
Documents (including, in each case, the notes thereto, the “Financial Statements”), complied in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in
effect as of the time of filing. The Financial Statements have been prepared in accordance with GAAP (except (i) as may be otherwise
indicated in such Financial Statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent
they may exclude footnotes or may be condensed or summary statements), and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments which will not be material, either individually or in
the aggregate). The Company is not currently contemplating to amend or restate any of the Financial Statements (including any notes
or any letter of the independent accountants of the Company with respect thereto), nor, to the Company’s Knowledge, do there
exist any facts or circumstances which would require the Company to amend or restate any of the Financial Statements, in each case,
in order for any of the Financials Statements to be in compliance with GAAP and the rules and regulations of the SEC. The Company
has not been informed by its independent accountants that they recommend that the Company amend or restate any of the Financial
Statements or that there is any need for the Company to amend or restate any of the Financial Statements.

 

    	 	15	 

     

    

 

(c)       The
Company and each of its Subsidiaries maintains internal control over financial reporting (as such term is defined in Rule 13a-15(f)
under the 1934 Act) that are effective to provide reasonable assurances regarding the reliability of the financial reporting and
the preparation of financial statements of the Company and its Subsidiaries for external purposes in accordance with GAAP, and
includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Company, (ii) transactions are recorded as necessary to permit
preparation of financial statements and (iii) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only
in accordance with authorizations of management and directors of the Company. The Company maintains disclosure controls and procedures
(as such term is defined in Rule 13a-15(e) under the 1934 Act) that are effective in ensuring that information required to be disclosed
by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within
the time periods specified in the rules and forms of the SEC, including controls and procedures designed to ensure that information
required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated
to the Company’s management, including its principal executive officer or officers and its principal financial officer or
officers, as appropriate, to allow timely decisions regarding required disclosure. Neither the Company nor any of its Subsidiaries
has received any notice or correspondence from any accountants, Governmental Entities or other Person relating to (x) any potential
material weakness or significant deficiency in any part of the internal controls over financial reporting of the Company or any
of its Subsidiaries or (y) any fraud, whether or not material, that involves (or involved) the management or other employees of
the Company or its Subsidiaries who have (or had) a significant role in the Company’s or its Subsidiaries’ internal
controls.

 

(d)       There
is no transaction, arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated or other
off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed or that
otherwise would have a Material Adverse Effect.

 

(e)       There
are no material disagreements of any kind presently existing or, to the Company’s Knowledge, reasonably anticipated to arise
between the Company and any of its Subsidiaries, on the one hand, and the accountants and lawyers formerly or presently employed
by the Company (including its predecessors) and any of Subsidiaries thereof, on the other hand, and the Company and each of its
Subsidiaries is current with respect to any fees owed to its respective accountants and lawyers which, the failure to pay could
affect the Company’s ability to perform any of its obligations under any of the Definitive Documents.

 

Section
3.9     Absence of Certain Changes. Since December 31, 2018 (the “10-K Date”), there has been no material
adverse change and no material adverse development in the business, assets, liabilities, properties, operations (including results
thereof), condition (financial or otherwise) or prospects of the Company or any of its Subsidiaries taken as a whole. Since the
10-K Date, neither the Company nor any of its Subsidiaries has taken any action that if taken after the date hereof would require
the consent of the Purchaser pursuant to Section 5.1(b). Neither the Company nor any of its Subsidiaries has taken any steps
to seek protection pursuant to any applicable Law relating to bankruptcy, insolvency, reorganization, receivership, liquidation
or winding up, nor does the Company or any Subsidiary have any Knowledge or reason to believe that any of their respective creditors
intend to initiate involuntary bankruptcy proceedings or any Knowledge of any fact which would reasonably lead a creditor to do
so. The Company and its Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and, after giving
effect to the transactions contemplated by the Definitive Documents, will not be, Insolvent. Neither the Company nor any of its
Subsidiaries has engaged in any business or in any transaction, and does not plan to engage in any business or in any transaction,
for which the Company’s or such Subsidiary’s remaining assets constitute unreasonably small capital with which to conduct
the business in which it is engaged as such business is now conducted and is proposed to be conducted.

 

    	 	16	 

     

    

 

Section
3.10     Conduct of Business; Regulatory Permits.

 

(a)       Neither
the Company nor any of its Subsidiaries is in violation of any term of or in default under the Group Companies Organizational Documents.
Neither the Company (including its predecessors) nor any Subsidiaries thereof (i) is, or has been since January 1, 2017, in violation
of any applicable Law or Order applicable thereto or (ii) has received since January 1, 2017 a notification or communication from
any Governmental Entity asserting that it is not or has not been in compliance with any applicable Law or Order. Without limiting
the generality of the foregoing, the Company is not in material violation of any of the rules, regulations or requirements of the
NYSE American, and has no Knowledge of any facts or circumstances that could reasonably lead to delisting or suspension of trading
the Common Stock by the NYSE American. Since January 1, 2017, (i) the Common Stock has been listed or designated for quotation
on the NYSE American, (ii) trading in the Common Stock has not been suspended by the SEC or the NYSE American and (iii) the Company
has received no communication, written or oral, from the SEC or the NYSE American regarding the suspension or delisting of the
Common Stock from the NYSE American. The Company and each of its Subsidiaries possess all licenses, certificates, authorizations
and permits issued by the appropriate Governmental Entity necessary to conduct their respective businesses, and neither the Company
nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such license,
certificate, authorization or permit. There is no Contract or Order binding upon the Company or any of its Subsidiaries or to which
the Company or any of its Subsidiaries is a party which, individually or together with any other Contract or Order, has had or
would reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company or
any of its Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries.

 

(b)       The
Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed
to, or which to its Knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange
Act nor has the Company received any notification that the SEC is contemplating terminating such registration. The Company has
not, since January 1, 2019, received notice from the NYSE American to the effect that the Company is not in compliance with the
listing or maintenance requirements of the NYSE American. The Company is, and has no reason to believe that it will not in the
foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently
eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company
is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation) in connection
with such electronic transfer.

 

    	 	17	 

     

    

 

Section
3.11     Certain Regulatory Matters.

 

(a)       None
of the Company (including its predecessors), any Subsidiaries thereof or any of their respective directors, officers, or other
Representatives (individually and collectively, a “Company Affiliate”) have violated the U.S. Foreign Corrupt
Practices Act (the “FCPA”) or any other applicable anti-bribery or anti-corruption Law, nor has any Company
Affiliate offered, paid, promised to pay, or authorized the payment of, any money, or offered, given, promised to give, or authorized
the giving of, anything of value, to any officer, employee or any other person acting in an official capacity for any Governmental
Entity or any political party or official thereof or to any candidate for political office (individually and collectively, a “Government
Official”) or to any Person under circumstances in which such Company Affiliate knew or was aware of a high probability
that all or a portion of such money or thing of value would be offered, given or promised, directly or indirectly, to any Government
Official, for the purpose of: (i) (A) influencing any act or decision of such Government Official in his/her official capacity,
(B) inducing such Government Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper
advantage, or (D) inducing such Government Official to influence or affect any act or decision of any Governmental Entity; or (ii)
assisting the Company or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company
or its Subsidiaries.

 

(b)       The
Company has in place policies, procedures and controls that ensure compliance with the (i) FCPA and (ii) other applicable anti-bribery
or anti-corruption laundering Laws in each foreign jurisdiction in which the Company does business.

 

(c)       No
Company Affiliates or any other business entity or enterprise with which the Company or any Subsidiary is or has been Affiliated
or associated, has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services,
whether or not in contravention of applicable Law, (i) as a kickback, bribe gratuity, lobbying expenditure, political contribution
or contingent fee payment to any Person or (ii) to any political organization, or to the holder of or any aspirant to any elective
or appointive public office except for personal political contributions not involving the direct or indirect use of funds of the
Company or any of its Subsidiaries.

 

(d)       The
Company and its Subsidiaries are in compliance with, and have not previously violated, the USA Patriot Act of 2001 and all other
applicable U.S. and non-U.S. anti-money laundering Laws and regulations and Sanctions, including the Laws, executive orders and
sanctions programs administered by OFAC. No Company Affiliates (x) is a Sanctioned Person or has any reason to believe that it
is acting on behalf of, or for the benefit of, any Sanctioned Person or (y) has engaged in any dealings with or the benefit of
any Sanctioned Person, or in or involving any Sanctioned Country.

 

(e)       Since
January 1, 2017, no allegations of sexual harassment have been made to the Company (including its predecessors) or any Subsidiaries
thereof against any individual in his or her capacity as director or a managerial employee, or to the Company’s Knowledge,
any other employee, of the Company (including its predecessors) or any Subsidiaries thereof.

 

    	 	18	 

     

    

 

Section
3.12     Sarbanes-Oxley Act. The Company and each of its Subsidiaries is in material compliance with any and all applicable
requirements of the Sarbanes-Oxley Act of 2002, as amended, and any and all applicable rules and regulations promulgated by the
SEC thereunder.

 

Section
3.13     Transactions With Affiliates. There have not been any transactions or Contracts or series of related transactions
or Contracts required to be disclosed under Item 404 of Regulation S-K under the 1934 Act.

 

Section
3.14     Capitalization

 

(a)       As
of the date hereof, the authorized capital stock of the Company consists of 217,000,000 shares of Common Stock, of which 9,921,895
are issued and outstanding. No shares of Common Stock are held in the treasury of the Company. Except for the foregoing Capital
Stock, the Company has no other Capital Stock authorized, reserved for issuance or outstanding.

 

(b)       All
of the Company’s Capital Stock is duly authorized and validly issued, fully paid and non-assessable (as such concepts are
applicable). All the outstanding shares of Capital Stock of each Subsidiary of the Company have been validly issued and are fully
paid and non-assessable (to the extent such concepts are applicable) and are owned, directly or indirectly, by the Company free
and clear of all Liens.

 

(c)       (A)
None of the Company’s or any of its Subsidiaries’ Capital Stock is subject to preemptive rights or any other similar
rights or restrictions or Liens suffered or permitted by the Company or any Subsidiary; (B) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, or exercisable or exchangeable for, any Capital Stock of the Company or any of its Subsidiaries, or Contracts by which the
Company or any of its Subsidiaries is or may become bound to issue additional Capital Stock of the Company or any of its Subsidiaries
or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, or exercisable or exchangeable for, any Capital Stock of the Company or any of its Subsidiaries; (C)
there are no Contracts under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities
under the Securities Act; (D) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which
contain any redemption or similar provisions, and there are no Contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (E)
there are no securities or instruments or Capital Stock containing anti-dilution or similar provisions that will be triggered by
the issuance of the Securities; (F) neither the Company nor any Subsidiary has any stock appreciation rights or “phantom
stock” plans or agreements or any similar plan or agreement; and (G) there are no stockholder agreements, voting trusts or
other agreements to which the Company or any of its Subsidiaries is a party or by they are bound relating to the voting of any
shares, interests or capital stock of the Company or any of its Subsidiaries.

 

    	 	19	 

     

    

 

(d)       True,
correct and complete copies of the Company Organizational Documents, and the terms of all convertible securities and the material
rights of the holders thereof in respect thereto, are set forth in, or filed as exhibits to the SEC Documents.

 

Section
3.15     Indebtedness. Neither the Company nor any of its Subsidiaries has any outstanding Indebtedness.

 

Section
3.16     Material Contracts. Neither the Company nor any of its Subsidiaries is party to, and none of their respective
properties or assets are bound by, a Material Contract. Each Material Contract set forth in the SEC Documents is in full force
and effect, and is a legal, valid and binding agreement of the Company or its Subsidiaries, as applicable, and, to the Company’s
Knowledge, the other parties thereto, subject only to the General Enforceability Exceptions. There is no material default or breach
by the Company or any of its Subsidiaries, as applicable, with respect to any such Material Contract or, to the Company’s
Knowledge, any other party thereto, and no event has occurred which, with notice or lapse of time or both, would constitute a material
breach or default or would permit termination, material modification or acceleration thereof by any party to such Material Contract.
Neither the Company nor any of its Subsidiaries has waived any material rights under any such Material Contract. Neither the Company
nor any of its Subsidiaries has received written notice of the intention of any third party under any such Material Contract to
cancel, terminate or materially modify the terms of any such Material Contract, or accelerate the obligations of the Company or
any of its Subsidiaries, as applicable, thereunder. There are no current or pending financing arrangements or assignments of proceeds
with respect to any such Material Contract.

 

Section
3.17     Litigation. Except as would not, individually or in the aggregate, have a Material Adverse Effect, there is
no, and since January 1, 2017 there has not been, any Action before or by the NYSE American, any court, public board, other Governmental
Entity, self-regulatory organization or body pending or, to the Knowledge of the Company, threatened against or affecting the Company
(including its predecessors) or any of Subsidiaries thereof, the Capital Stock thereof or any current or former officers, directors,
managers or employees thereof, whether of a civil or criminal nature or otherwise, in their capacities as such. To the Knowledge
of the Company, no current or former director, officer, manager or employee of the Company (including its predecessors) or any
of its Subsidiaries has willfully violated 18 U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation.
Without limitation of the foregoing, there has not been, and to the Knowledge of the Company, there is not pending or contemplated,
any investigation by the SEC involving the Company (including its predecessors), any Subsidiaries thereof or any current or former
director, officer, manager of employee of the Company or any of its Subsidiaries. The SEC has not issued any stop order or other
order suspending the effectiveness of any registration statement filed by the Company under the Securities Act or the 1934 Act.
To the Company’s Knowledge, no fact exists which might result in or form the basis for any such Action. Neither the Company
nor any of its Subsidiaries is subject to any Order.

 

Section
3.18     Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts, in each case, as is customary in the businesses in which the Company and its
Subsidiaries are engaged. All premiums due and payable in respect of such insurance policies maintained by the Company and its
Subsidiaries have been paid in full. Neither the Company nor any of its Subsidiaries have been refused any insurance coverage sought
or applied for, and neither the Company nor any such Subsidiary has any reason to believe that it will be unable to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business on substantially the same terms as now in effect. Excluding insurance policies that have expired and been
replaced in the ordinary course of business, no such insurance policy of the Company or any of its Subsidiaries has been, or has
been threatened to be, cancelled by the applicable insurer since January 1, 2017, and neither the Company nor any of its Subsidiaries
has received any written notice of cancellation or non-renewal of any such insurance policy.

 

    	 	20	 

     

    

 

Section
3.19     Employee Relations. The Company and each of its Subsidiaries maintains good relationships with their respective
employees. No executive officer (as defined in Rule 501(f) promulgated under the Securities Act) or other key employee of the Company
or any of its Subsidiaries has notified the Company or the applicable Subsidiary that such executive officer or key employee intends
to terminate, or materially amend the terms of, its employment with the Company or the applicable Subsidiary. To the Company’s
Knowledge, no executive officer or other key employee of the Company or any of its Subsidiaries is or will be (with or without
the passage of time, or both), in violation of any material term of any employment Contract, confidentiality, disclosure or proprietary
information Contract, non-competition Contract or any other Contract, or any restrictive covenant, and the continued employment
of each such executive officer or other key employee (as the case may be) does not subject the Company or any of its Subsidiaries
to any material liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with
all applicable federal, state, local and foreign Laws respecting labor, employment and employment practices and benefits, terms
and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in
the aggregate, result in a Material Adverse Effect. There are no strikes or other labor disputes against the Company or any of
its Subsidiaries, and, to the Knowledge of the Company, there are no strikes or other labor disputes threatened against the Company
or any of its Subsidiaries.

 

Section
3.20     Title.

 

(a)       The
Company and each of its Subsidiaries holds good title to all real property, leases in real property, facilities or other interests
in real property owned or held by the Company or any of its Subsidiaries, as applicable (the “Real Property”).
The Real Property is free and clear of all Liens and is not subject to any rights of way, building use restrictions, exceptions,
variances, reservations, or limitations of any nature except for (a) Liens for current Taxes not yet due for which adequate reserves
(as determined in accordance with the GAAP) have been established on the Financial Statements, (b) zoning Laws and other land use
restrictions that do not, and will not (with or without the passage of time, or both) impair the present or anticipated use of
the Real Property subject thereto, and (c) mechanics’, carriers’, workmen’s, warehousemen’s, repairmen’s
or other statutory liens arising in the ordinary course of business that would not reasonably be expected to have a Material Adverse
Effect. Each Real Property held under lease by the Company or any of its Subsidiaries is held by the Company or its applicable
Subsidiary under a valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with
the current and anticipated use made and proposed to be made of such Real Property and buildings by the Company or any of its Subsidiaries,
as applicable.

 

    	 	21	 

     

    

 

(b)       Each
of the Company and its Subsidiaries (as applicable) has good title to, or a valid leasehold interest in, the tangible personal
property, equipment, improvements, fixtures, and other personal property and appurtenances that are used by the Company or its
Subsidiary in connection with the conduct of its business (the “Fixtures and Equipment”). The Fixtures and Equipment
are structurally sound, are in good operating condition and repair, are adequate for the uses to which they are being put, are
not in need of maintenance or repairs, except for routine maintenance and repairs in the ordinary course of business, and are sufficient,
in all material respects, for the conduct of the Company’s and its Subsidiaries’ businesses as currently conducted.
The Company and its Subsidiaries collective own all of the Fixtures and Equipment free and clear of all Liens except for (a) Liens
for current Taxes not yet due for which adequate reserves (as determined in accordance with GAAP) have been established on the
Financial Statements, (b) zoning Laws and other land use restrictions that do not impair the present or anticipated use of the
Fixtures and Equipment subject thereto, (c) mechanics’, carriers’, workmen’s, warehousemen’s, repairmen’s
or other statutory liens arising in the ordinary course of business that would not reasonably be expected to have a Material Adverse
Effect and (d) minor liens that have arisen in the ordinary course of business and that do not, individually or in the aggregate,
materially detract from the value of the assets or properties subject thereto or materially impair the operations of the Company
or its any of Subsidiaries.

 

Section
3.21     Intellectual Property Rights.

 

(a)       The
Company and its Subsidiaries collectively own or possess good and marketable title to, or valid licenses to use, all trademarks,
trade names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications
and registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses
as now conducted and presently proposed to be conducted in all material respects. None of the Company’s material Intellectual
Property Rights have expired or have been terminated or abandoned, or are expected to expire, or to be terminated or abandoned,
in each case, within three (3) years from the date of the Agreement. The Company does not have any Knowledge of any infringement,
misappropriate or violation by the Company or its Subsidiaries of Intellectual Property Rights of others.

 

(b)       The
Company is the exclusive owner of the entire right, title and interest in and to AP-SA02, and is the exclusive owner of the entire
right, title and interest in and to, or has licensed or has the right to license all Intellectual Property rights in, AP-PA02 (collectively,
the “Products”), all data associated therewith, and all Intellectual Property Rights covering or relating to
the Products, free and clear of all liens. To the Company’s Knowledge, all patents owned or controlled by the Company that
have been issued or granted by the appropriate Patent Office are valid and enforceable.

 

(c)       There
is no action which has been brought, or to the Knowledge of the Company, being threatened, against the Company or any of its Subsidiaries
regarding its Intellectual Property Rights. To the Knowledge of the Company, there are no facts or circumstances which might give
rise to any actions regarding the Company’s Intellectual Property Rights.

 

    	 	22	 

     

    

 

(d)       To
the Company’s Knowledge, the manufacture, use, offer for sale, sale and/or importation of any of the Products will not infringe
and patent or other Intellectual Property Rights of any third party. Neither Company nor any of its Subsidiaries has received written
or oral notice of any action, suit or proceeding that claims, that the development, manufacture, use, marketing, sale, offer for
sale, importation or distribution of any Product would infringe on Intellectual Property Rights of any third party.

 

(e)       The
Company is in material compliance with all terms of and obligations under its collaboration agreement with Merck and its grant
agreements with the National Institute of Health and the National Institute of Allergy and Infectious Diseases, and has not breached
and is not in default under any provision of those agreements.

 

(f)       No
event has occurred that would give Merck the right to unilaterally terminate the collaboration agreement. The Company has not received
any notice of an intention by Merck to terminate the collaboration agreement, and the Company has not agreed with Merck to terminate
the collaboration agreement in whole or in part.

 

(g)       The
Company is in material compliance with all healthcare laws and regulations, and with the codes of conduct published by the Pharmaceutical
Research and Manufacturers of America.

 

(h)       The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of
their Intellectual Property Rights. In the past five years, the Company and its Subsidiaries have not (i) experienced any actual,
alleged, or suspected data breach or other security incident or (ii) been subject to or received any notice of any audit, investigation,
complaint, or other claim concerning the violation of any data protection laws.

 

Section
3.22     Environmental Laws.

 

(a)       The
Company (including its predecessors) and Subsidiaries thereof (A) are, and since January 1, 2017 have been, in compliance with
any and all Environmental Laws (as defined below), and neither the Company nor any of its Subsidiaries has received any written
communication alleging that the Company is in violation of, or has any liability under, any Environmental Law, (B) have received
all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses
and (C) are in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing
clauses (A), (B) and (C), the failure to so comply would not have, individually or in the aggregate, a Material Adverse Effect.

 

(b)       No
Hazardous Materials (i) have been disposed of or otherwise released from any currently or formerly owned Real Property of the Company
(including its predecessors) or any Subsidiaries thereof in violation of any Environmental Laws; and (ii) are, to the Company’s
Knowledge, present on, over, beneath, in or upon any Real Property or any portion thereof in quantities that would constitute a
violation of any Environmental Laws.

 

Section
3.23     Tax Status. The Company and each of its Subsidiaries (i) has timely made or filed all Tax Returns required by
any jurisdiction to which it is subject, (ii) has timely paid all Taxes and other governmental assessments and charges (including
satisfying its withholding tax obligations) levied or imposed on their properties, income or assets or otherwise due and payable,
except those being contested in good faith for which adequate reserves (as determined in accordance with the GAAP) have been established
on the Financial Statements and (iii) has set aside on its books provision reasonably adequate for the payment of all Taxes for
periods subsequent to the periods to which such Tax Returns apply. There are no unpaid Taxes claimed to be due and payable by the
Taxing authority of any jurisdiction, and, to Knowledge of the Company, no facts or circumstances exist of that would be the basis
for any such claim. The Company is not operated in such a manner as to qualify as a passive foreign investment company, as defined
in Section 1297 of the Internal Revenue Code of 1986, as amended (the “Code”).

 

    	 	23	 

     

    

 

Section
3.24     Investment Company Status. The Company is not, and upon consummation of the sale of the Securities will not
be, an “investment company,” an affiliate of an “investment company,” a company controlled by an “investment
company” or an “affiliated person” of, or “promoter” or “principal underwriter” for,
an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended.

 

Section
3.25     U.S. Real Property Holding Corporation. The Company (including its predecessors) and all Subsidiaries thereof
is not, has not ever been, and, for so long as any of the Securities are held by the Purchaser, shall not become, a U.S. real property
holding corporation within the meaning of Section 897 of the Code.

 

Section
3.26     Registration Eligibility. The Company is, and from and after the First Closing will be, eligible to register
the Registrable Securities (as defined in the Registration Rights Agreement) for resale by the Purchaser using Form S-1 promulgated
under the 1933 Act.

 

Section
3.27     Transfer Taxes. On the Second Closing Date, all stock transfer or other Taxes (other than income or similar
Taxes) which are required to be paid in connection with the issuance, sale and transfer of the Securities to be sold to Purchaser
pursuant to this Agreement will be, or will have been, fully paid or provided for by the Company, and all Laws imposing such Taxes
will be or will have been complied with in all material respects.

 

Section
3.28     Shell Company Status. The Company is not an issuer identified in, and subject to, Rule 144(i).

 

Section
3.29     ERISA Compliance.

 

(a)       Each
Plan is in material compliance with the applicable provisions of ERISA, the Code and other applicable federal or state Laws.

 

(b)       (i)
No ERISA Event has occurred for which the Company, any of its Subsidiaries or any of their respective ERISA Affiliates has any
residual liability; and (ii) no ERISA Event is expected to occur, except as would not reasonably be expected, individually or in
the aggregate, to result in a material adverse effect on the Company and its Subsidiaries taken as a whole.

 

(c)       At
no time during the past six (6) years has the Company (including its predecessors) or any member of the “Controlled Group”
thereof (defined as any organization which is a member of a controlled group of organizations within the meaning of Code Sections
414(b), (c), (m) or (o)) maintained, sponsored or contributed to, or been obligated to contribute to (i) any retirement plan which
is subject to Title IV of ERISA or Section 412 of the Code or (ii) any “multiemployer plan” as defined in Section 4001(a)(3)
of ERISA

 

    	 	24	 

     

    

 

Section
3.30     Management. Since January 1, 2017, no current or former officer or director or, to the Knowledge of the Company,
no current ten percent (10%) or greater stockholder of the Company (including its predecessors) or any Subsidiaries thereof has
been the subject of:

 

(a)       a
petition under applicable bankruptcy Laws or any other applicable insolvency or moratorium Law or the appointment by a court of
a receiver, fiscal agent or similar officer for such Person, or any partnership in which such person was a general partner, or
any corporation or business association of which such person was an executive officer;

 

(b)       a
conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations that do not
relate to driving while intoxicated or driving under the influence);

 

(c)       any
Order that has not subsequently reversed, suspended or vacated, permanently or temporarily enjoining any such person from, or otherwise
limiting, the following activities:

 

(i)       engaging
in any particular type of business practice; or

 

(ii)       engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of securities
Laws or commodities Laws;

 

(d)       any
Order that has not been subsequently reversed, suspended or vacated, barring, suspending or otherwise limiting for more than sixty
(60) days the right of any such person to engage in any activity described in the preceding sub paragraph, or to be associated
with persons engaged in any such activity;

 

(e)       a
finding by a Governmental Entity in a civil Action or by the SEC or other authority to have violated any securities Laws or decrees,
and the judgment in such civil Action or finding by the SEC or any other authority has not been subsequently reversed, suspended
or vacated; or

 

(f)       a
finding by a Governmental Entity in a civil Action or by the Commodity Futures Trading Commission to have violated any federal
commodities Laws, and the judgment in such civil Action or finding has not been subsequently reversed, suspended or vacated.

 

Section
3.31     FDA. There is no pending, completed or, to the Company's Knowledge, threatened, action (including any lawsuit,
arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any
of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication
from the U.S. Food and Drug Administration (“FDA”) or any other governmental entity, which (i) contests the
premarket clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging
of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests
the recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating
to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries,
(iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent
decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws,
rules or regulations by the Company or any of its Subsidiaries. The properties, business and operations of the Company have been
and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the FDA. The
Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of
any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to approving
or clearing for marketing any product being developed or proposed to be developed by the Company.

 

    	 	25	 

     

    

 

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

 

Section
3.33     No Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule
506(b) under the Securities Act (“Regulation D Securities”), none of the Company, any of its predecessors, any Affiliated
issuer, any director, executive officer, other officer of the Company participating in the offering of the Securities contemplated
by this Agreement, or to the Company’s Knowledge, any beneficial owner of 20% or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under
the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”
and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a
Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any
Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure
obligations under Rule 506(e), and has furnished to Purchaser a copy of any disclosures provided thereunder. The Company is not
aware of any Person that has been or will be paid (directly or indirectly) remuneration for solicitation of Purchaser or other
potential purchasers in connection with the sale of the Securities contemplated by this Agreement.

 

Section
3.34     No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth
in this Agreement, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act
which would require the registration of any such securities under the Securities Act, or (ii) any applicable stockholder approval
provisions of the NYSE American.

 

    	 	26	 

     

    

 

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

 

Section
3.36     Disclosure. The Company understands and confirms that Purchaser will and is entitled to rely on the foregoing
representations in effecting transactions in securities of the Company. All disclosure provided to Purchaser regarding the Company
and its Subsidiaries, their businesses and the transactions contemplated by the Definitive Documents furnished by or on behalf
of the Company or any of its Subsidiaries, does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not
misleading. No event or circumstance has occurred and no information exists with respect to the Company or any of its Subsidiaries
or its or their business, properties, liabilities, prospects, operations (including results thereof) or conditions (financial or
otherwise), which, under applicable Law, requires public disclosure at or before the date hereof or announcement by the Company
but which has not been so publicly disclosed. All financial projections and forecasts that have been prepared by or on behalf of
the Company or any of its Subsidiaries and made available to Purchaser have been prepared in good faith based upon reasonable assumptions
and represented, at the time each such financial projection or forecast was delivered to Purchaser, the Company’s best estimate
of future financial performance (it being recognized that such financial projections or forecasts are not to be viewed as facts
and that the actual results during the period or periods covered by any such financial projections or forecasts may differ from
the projected or forecasted results).

 

Section
3.37     Proxy Statement. None of the information in the Proxy Statement to be sent to the stockholders of the Company
in connection with the Company Stockholders’ Meeting will, on the date it is filed, on the date it is first mailed to the
stockholders of the Company and at the time of the Company Stockholders’ Meeting, contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they are made, not misleading. The Proxy Statement will, at the time of the Company
Stockholders’ Meeting, comply as to form in all material respects with the requirements of the Exchange Act and the rules
and regulations promulgated thereunder.

 

Section
3.38     Disclaimer of Other Representations and Warranties. Except as expressly set forth in this Article III or in
any other Definitive Document, the Company makes no representation or warranty, express or implied, at law or in equity, including
with respect to it or any of its Subsidiaries or any of their respective assets, liabilities or operations, and any such other
representations and warranties are hereby expressly disclaimed.

 

    	 	27	 

     

    

 

Article
IV

 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

Purchaser hereby represents
and warrants as of the date hereof, as of the First Closing, and as of the Second Closing, as follows:

 

Section
4.1     Organization. Purchaser is a corporation duly incorporated, validly existing and in good standing under the Laws
of the State of Delaware.

 

Section
4.2     Organizational Power and Authority. Purchaser has the requisite corporate power and authority to enter into,
execute and deliver this Agreement and to perform its obligations hereunder and has taken or will take all necessary corporate
action required for the due authorization, execution, delivery and performance by it of this Agreement and the transactions contemplated
hereby.

 

Section
4.3     Execution and Delivery. This Agreement has been validly executed and delivered by Purchaser, and, assuming due
and valid execution and delivery hereof by the Company, will constitute valid and legally binding obligations of Purchaser, enforceable
against Purchaser in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization
or other similar Laws limiting creditors’ rights generally or by equitable remedies (regardless of whether enforceability
is considered in a proceeding at law or in equity).

 

Section
4.4     No Conflict. The execution and delivery by Purchaser of this Agreement and the consummation of the transactions
contemplated hereby (a) will not conflict with, or result in a breach, modification, termination or violation of, any of the
terms or provisions of, or constitute a default under (with or without notice or lapse of time or both), or result in the acceleration
of, or the creation of any Lien under, any Contract to which Purchaser is party or is bound or to which any of the property or
assets of Purchaser are subject, (b) will not result in any violation of the provisions of the certificate of incorporation
or bylaws of Purchaser, and (c) will not result in any material violation of any Law or Order applicable to Purchaser or any
of its properties, except in each of the cases described in clauses (a) through (c), for any conflict, breach, modification,
termination, violation, default, acceleration or Lien which would not reasonably be expected, individually or in the aggregate,
to prohibit or materially and adversely impact Purchaser’s performance of its obligations under this Agreement.

 

Section
4.5     Consents and Approvals. No consent, approval, authorization, Order, registration or qualification of or with
any Governmental Entity having jurisdiction over Purchaser or any of its properties is required for the execution and delivery
by Purchaser of this Agreement, the compliance by Purchaser with the provisions hereof and the consummation of the transactions
contemplated hereby, except any consent, approval, authorization, Order, registration or qualification which, if not made or obtained,
would not reasonably be expected, individually or in the aggregate, to prohibit or materially and adversely impact Purchaser’s
performance of its obligations under this Agreement.

 

Section
4.6     No Registration. Purchaser understands that (a) the Purchased Common Stock and Purchased Warrants (including
any shares of Common Stock issuable upon exercise thereof) have not been registered under the Securities Act by reason of a specific
exemption or exclusion from the registration provisions of the Securities Act, the availability of which depends on, among other
things, the bona fide nature of the investment intent and the accuracy of Purchaser’s representations as expressed herein
or otherwise made pursuant hereto and (b) the foregoing securities cannot be sold unless subsequently registered under the
Securities Act or an exemption or exclusion from registration is available.

 

    	 	28	 

     

    

 

Section
4.7     Purchasing Intent. Purchaser is acquiring the Purchased Common Stock and Purchased Warrants (including any shares
of Common Stock issuable upon exercise thereof) for its own account or accounts or funds over which it or its Affiliates hold voting
or investment discretion, not otherwise as a nominee or agent, and not otherwise with the view to, or for resale in connection
with, any distribution thereof not in compliance with applicable securities Laws, and Purchaser has no present intention of selling,
granting any other participation in, or otherwise distributing the same, except in compliance with applicable securities Laws.

 

Section
4.8     Sophistication; Investigation. Purchaser has such knowledge and experience in financial and business matters
such that it is capable of evaluating the merits and risks of its investment in the Purchased Common Stock and Purchased Warrants
(including any shares of Common Stock issuable upon exercise thereof). Purchaser is an “accredited investor” within
the meaning of Rule 501(a) of the Securities Act and an “institutional account” within the meaning of Rule 4512
of the Financial Industry Regulatory Authority or a “qualified institutional buyer” within the meaning of Rule 144A
of the Securities Act. Purchaser understands and is able to bear any economic risks associated with such investment (including
the necessity of holding such shares for an indefinite period of time). Except for the representations and warranties expressly
set forth in this Agreement, Purchaser has independently evaluated the merits and risks of its decision to enter into this Agreement
and consummate the transactions contemplated hereby.

 

Section
4.9     Sufficient Funds. Purchaser has, or at the applicable Closing will have, sufficient assets and the financial
capacity to perform all of its obligations under this Agreement.

 

Section
4.10     Bad Actor. Neither the Purchaser nor any person or entity with whom the Purchaser will share beneficial ownership
of the Purchased Common Stock is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i)
to (viii) under the Securities Act.

 

Article
V

 

ADDITIONAL COVENANTS

 

Section
5.1     Covenants of the Company. During the period from the date hereof until the earlier of the Second Closing and
the termination of this Agreement in accordance with Article VIII, the Company shall, and shall cause each of its Subsidiaries
to, comply with the following covenants:

 

(a)       Affirmative
Covenants: Except (x) as otherwise expressly required by this Agreement, (y) as required by applicable Law or (z) as
consented to in writing by the Purchaser, during the period from the date hereof until the earliest of (i) the Second Closing,
(ii) the Second Closing Abandonment and (iii) the termination of this Agreement in accordance with Article VIII, the
Company shall, and shall cause each of its direct and indirect Subsidiaries to:

 

    	 	29	 

     

    

 

(i)       preserve,
in all material respects, its business operations, organization and goodwill and its relationships with suppliers, customers, lenders
and others having business dealings with the Company and its Subsidiaries;

 

(ii)       to
the extent any legal or structural impediment arises that would prevent, hinder, or delay the consummation of the transactions
contemplated by this Agreement, support and take all steps reasonably necessary and desirable to address and resolve any such impediment;

 

(iii)      use
good faith and commercially reasonable efforts to obtain all required Governmental Entity and third-party approvals for the consummation
of the transactions contemplated by this Agreement;

 

(iv)       inform
counsel to the Purchaser as soon as reasonably practicable after becoming aware of: (A) any Material Adverse Effect, (B) any
notice of any commencement of any involuntary insolvency proceedings, legal suit for payment of debt or securement of security
from or by any person in respect of the Company or any of its Subsidiaries, (C) a breach of this Agreement, and (D) any
representation or statement made or deemed to be made by the Company or any of its Subsidiaries under this Agreement, which is
or proves to have been materially incorrect or misleading in any respect when made or deemed to be made;

 

(v)       maintain
the good standing of the Company and any Subsidiaries of the Company under the Laws of the state or other jurisdiction in which
they are incorporated or organized;

 

(vi)       make
all necessary registrations, declarations and filings with, and notices to, Governmental Entities (including under the Securities
Exchange Act of 1934 (the “Exchange Act”)) (a) in the ordinary course of business and (b) with respect
to the transactions contemplated by this Agreement;

 

(vii)     operate
their business in the ordinary course of business; and

 

(viii)     provide,
and direct its Representatives to provide, to the Purchaser and its Representatives (A) reasonable access to the Company and
its Subsidiaries’ books and records during normal business hours on reasonable advance notice to the Company and its Subsidiaries’
Representatives, (B) reasonable access to the Representatives of the Company and its Subsidiaries on reasonable advance notice
to such persons, and (C) such other information as reasonably requested by the Purchaser and its Representatives.

 

(b)       Negative
Covenants: Except (x) as otherwise expressly required by this Agreement, (y) as required by applicable Law or (z) as
consented to by the Purchaser in writing, during the period from the date hereof until the earliest of (i) the Second Closing,
(ii) the Second Closing Abandonment and (iii)the termination of this Agreement in accordance with Article VIII, the
Company shall not, and shall cause each of its direct and indirect Subsidiaries not to:

 

    	 	30	 

     

    

 

(i)       transfer
any material property, asset or right of the Company or its Subsidiaries or any material property, asset or right used in the business
of the Company and its Subsidiaries to any person or entity outside of the ordinary course of business;

 

(ii)       engage
in any material disposition, acquisition, leasing, investment or other similar transaction (whether by merger, consolidation or
otherwise) outside of the ordinary course of business;

 

(iii)       incur,
create, assume, guarantee or otherwise become liable for any Indebtedness, other than trade indebtedness or contingent liabilities
under surety bonds, in each case, in the ordinary course of business;

 

(iv)       amend
the Company’s or any of its Subsidiaries’ organizational documents (whether by merger, consolidation or otherwise);

 

(v)       split,
combine, reclassify, redeem, repurchase, acquire, issue or deliver or amend the terms of any Capital Stock of the Company or any
of its Subsidiaries (whether by merger, consolidation or otherwise), other than the transactions expressly contemplated by this
Agreement;

 

(vi)       enter
into any transactions with a Related Party;

 

(vii)       create
or incur any Lien on any capital stock, assets or properties of the Company or any of its Subsidiaries, other than (a) Liens
related to capital leases in place as of the date hereof or entered into after the date hereof in the ordinary course of business
or (b) immaterial Liens created or incurred in the ordinary course of business;

 

(viii)      adopt,
establish, enter into, amend, terminate or increase the benefits under any of the Company’s or its Subsidiaries’ benefit
plans, except for approval and adoption of annual compensation programs in the ordinary course of business;

 

(ix)       declare,
set aside, make or pay any dividend or other distribution (whether in stock, cash, other property or any combination thereof) with
respect to any Capital Stock of the Company and its Subsidiaries;

 

(x)       amend
or terminate any Material Contracts of the Company or its Subsidiaries, other than renewals, amendments, change orders and expirations
of such Material Contracts in the ordinary course of business;

 

(xi)       waive,
release, assign, settle or compromise any material action, suit, claim, cause of action, investigation, complaint, legal proceeding,
administrative enforcement proceeding, arbitration proceeding or other proceeding or adjudicative matter by or before any Governmental
Entity (other than settlements of force majeure claims or actions in the ordinary course of business);

 

    	 	31	 

     

    

 

(xii)      settle
or compromise any material Tax Contest, consent to any extension or waiver of any limitation period with respect to any material
claim or assessment for Taxes, make, change or revoke any material Tax election or materially change any of the Company’s
or its Subsidiaries’ accounting principles and methodologies (other than as required by GAAP); or

 

(xiii)      agree,
commit or offer to do any of the foregoing.

 

Section
5.2     Pre-Closing Exclusivity. From the date hereof until the earliest of (i) the Second Closing, (ii) the Second Closing
Abandonment and (iii) the termination of this Agreement in accordance with Article VIII (provided, that, with respect to
any termination of this Agreement or the Second Closing Abandonment, the primary cause of which is the material breach by the Company
of any of its covenants or other agreements contained in this Agreement, the obligations under this Section 5.2 shall extend
until 90 days following the earlier of termination of this Agreement or the Second Closing Abandonment), (i) the Company shall
not, and shall instruct its Affiliates and Representatives not to, directly or indirectly, initiate, solicit, facilitate, encourage,
discuss, negotiate, endorse, engage in, enter into or accept any discussions, negotiations, proposals, inquiries, offers or agreements
with any Person (other than the Purchaser and its Representatives pursuant to this Agreement) relating to the acquisition of the
Company or its Subsidiaries, or greater than 20% of their businesses (whether by merger, stock sale, asset sale, tender offer,
exchange offer or otherwise), or relating to the issuance of equity (other than Common Stock as incentive compensation), (collectively,
the matters described in this Section 5.2(i), an “Acquisition Proposal” (ii) the Company shall, and shall
instruct its Affiliates and Representatives to, immediately cease and cause to be terminated all existing discussions or negotiations
with any third party (other than the Purchaser and its Representatives relating to this Agreement) conducted by or on behalf of
the Company or any of its Subsidiaries on or prior to the date hereof in connection with any other transaction relating to an Acquisition
Proposal and (iii) the Company shall promptly inform the Purchaser in the event that the Company or any of its Affiliates or Representatives
receives any inquiry, proposal or offer that could reasonably be expected to lead to an Acquisition Proposal.

 

Section
5.3     Post-Closing Books and Records. From and after the First Closing, for so long as Purchaser has the right to designate
a director to the Board pursuant to the Investor Rights Agreement, the Company shall, and shall cause its Subsidiaries to, afford
to Purchaser and its Representatives reasonable access, during normal business hours, in such manner as to not interfere with the
normal operation of the Company and its Subsidiaries, to their respective properties, books, contracts, commitments, Tax Returns,
records and appropriate officers and employees of the Company and its Subsidiaries, and shall furnish Purchaser and its Representatives
with financial and operating data and other information concerning the affairs of the Company and its Subsidiaries, in each case,
as Purchaser and its Representatives may reasonably request; provided that such access shall only be upon reasonable advance
notice.

 

    	 	32	 

     

    

 

Section
5.4     Stockholder Approval.

 

(a)       The
Company shall use reasonable best efforts to cause the Voting Agreements to be duly executed and delivered to the Purchaser as
promptly as practicable following the date hereof.

 

(b)       As
promptly as practicable after the date hereof, the Company shall take all action necessary under applicable Law to call, give notice
of, convene and hold a meeting of the stockholders of the Company for the purpose of obtaining the Stockholder Approval (the “Company
Stockholders’ Meeting”). The Company will convene and hold the Company Stockholders’ Meeting no later than
the thirtieth (30th) day following the mailing of the Proxy Statement to the Company’s stockholders. The Company shall take
reasonable measures to ensure that all proxies solicited in connection with the Company Stockholders’ Meeting are solicited
in compliance with all applicable Law. Notwithstanding anything to the contrary contained herein, if on the date of the Company
Stockholders’ Meeting, or a date preceding the date on which the Company Stockholders’ Meeting is scheduled, the Company
reasonably believes that (i) it will not receive proxies sufficient to obtain the Company Stockholder Vote, whether or not a quorum
would be present or (ii) it will not have sufficient shares of Common Stock represented (whether in person or by proxy) to constitute
a quorum necessary to conduct the business of the Company Stockholders’ Meeting, the Company may postpone or adjourn, or
make one or more successive postponements or adjournments of, the Company Stockholders’ Meeting as long as the date of the
Company Stockholders’ Meeting is not postponed or adjourned more than an aggregate of thirty (30) calendar days in connection
with any postponements or adjournments.

 

(c)       As
promptly as reasonably practicable after the date hereof, the Company shall prepare and file with the SEC a preliminary proxy statement
(as amended and supplemented, the “Proxy Statement”), relating to the Company Stockholders’ Meeting. The
Company shall include in the Proxy Statement the recommendation of the Board that the stockholders of the Company vote in favor
of (i) the adoption and approval of this Agreement and the transactions contemplated herein and in the other Definitive Documents
and (ii) the Charter Amendment (to the extent applicable). The Company shall use its reasonable best efforts to obtain the Stockholder
Approval, including using reasonable best efforts to solicit proxies from the Company’s stockholders. The Company shall cause
the Proxy Statement to be distributed to the Company’s stockholders as promptly as practicable after the date the SEC confirms
it has no further comments to the Proxy Statement. The Company will cause the Proxy Statement to comply as to form in all material
respects with the applicable requirements of the Exchange Act and the rules of the SEC and NYSE American. The Company shall not
file the Proxy Statement without providing Purchaser a reasonable opportunity to review and comment thereon (which comments shall
be reasonably considered by the Company). The Company shall resolve all SEC comments with respect to the Proxy Statement as promptly
as practicable after receipt thereof and cause the Proxy Statement in definitive form to be cleared by the SEC and mailed (if required
by applicable Law) to the Company’s stockholders as promptly as reasonably practicable following filing with the SEC. The
Company, prior to responding to SEC comments with respect to the Proxy Statement, will first provide Purchaser and its Representatives
a reasonable opportunity to review and comment thereon, and the Company will give due consideration to all reasonable additions,
deletions or changes suggested thereto by Purchaser or its Representatives.

 

    	 	33	 

     

    

 

(d)       Nothing
contained in this Agreement shall prohibit the Company or the Board from (i) complying with Rules 14d-9 and 14e-2(a) promulgated
under the Exchange Act, or (ii) issuing a “stop, look and listen” communication or similar communication of the type
contemplated by Section 14d-9(f) under the Exchange Act or (iii) otherwise making any disclosure to the Company stockholders; provided
however, that in the case of the foregoing clause (iii) the Board determines in good faith, after consultation with its outside
legal counsel, that failure to make such disclosure would be inconsistent with its fiduciary duties under applicable Law.

 

Section
5.5     A&R Registration Rights Agreement. Simultaneously with the First Closing, the Company shall cause the Registration
Rights Agreement to be duly amended and restated (the “A&R Registration Rights Agreement”), to name the
Purchaser as a “Holder” thereunder, to include the Purchased Common Stock and the Warrant Shares as Registrable Securities
and to provide for the  filing and continuous effectiveness of a Shelf Registration Statement (as defined in the Registration
Rights Agreement)  covering  the Purchased Common Stock and the Purchased Warrants consistent with the terms set forth
in Section 2(a) of the Registration Rights Agreement, with such filing to be made no later than 30 days following the First Closing.

 

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

 

Section
5.7     Required Minimum.

 

(a)       The
Company shall maintain a reserve of the Required Minimum from its duly authorized shares of Common Stock for issuance pursuant
to this Agreement in such amount as may then be required to fulfill its obligations in full under this Agreement, without regard
to any conversion or exercise limits therein.

 

(b)       If,
on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 130% of (i) the
Required Minimum on such date, minus (ii) the number of shares of Common Stock previously issued pursuant to this Agreement, then
the Board of Directors shall use reasonable best efforts to amend the Certificate of Incorporation to increase the number of authorized
but unissued shares of Common Stock to at least the Required Minimum at such time (minus the number of shares of Common Stock previously
issued pursuant to the Transaction Documents), as soon as reasonably practicable and in any event not later than the 30th
day after such date, provided that the Company will not be required at any time to authorize a number of shares of Common Stock
greater than the maximum remaining number of shares of Common Stock that could possibly be issued after such time pursuant to this
Agreement.

 

    	 	34	 

     

    

 

(c)       The
Company shall (i) in the time and manner required by the NYSE American, prepare and file with the NYSE American a Supplemental
Listing Application covering a number of shares of Common Stock at least equal to the Required Minimum on the date of such application,
(ii) take all steps necessary to cause such shares of Common Stock to be approved for listing or quotation on NYSE American as
soon as possible thereafter, (iii) provide to the Purchaser evidence of such listing or quotation and (iv) maintain the listing
or quotation of such Common Stock on any date at least equal to the Required Minimum on such date on NYSE American. The Company
agrees to maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company or another
established clearing corporation, including, without limitation, by timely payment of fees to the Depository Trust Company or such
other established clearing corporation in connection with such electronic transfer.

 

Section
5.8     Acknowledgment of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution
of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further
acknowledges that its obligations under the Definitive Documents, including, without limitation, its obligation to issue the Securities
pursuant to this Agreement, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction,
regardless of the effect of any such dilution or any claim the Company may have against Purchaser and regardless of the dilutive
effect that such issuance may have on the ownership of the other stockholders of the Company.

 

Section
5.9     Expense Reimbursement. Upon (i) the termination of this Agreement under circumstance in which the Termination
Fee is payable in accordance with Section 8.3 (and subject to the limitations set forth in Section 8.3) or (ii) either
or both of the First Closing or the Second Closing, the Company shall promptly, upon written request of the Purchaser, reimburse
the Purchaser for all reasonable and documented fees and expenses of the Purchaser and its Affiliates and Representatives (including
the fees and expenses of counsel) incurred prior to, on or after the date hereof in connection with the examination, review, due
diligence investigation, documentation, negotiation, closing and funding of the transactions contemplated by this Agreement. Notwithstanding
anything to the contrary herein, this Section 5.9 shall survive the termination of this Agreement.

 

Section
5.10     Blue Sky Filings. The Company shall take such action as the Company shall reasonably determine is necessary
in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchaser at the First Closing or Second Closing,
as applicable, under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide
evidence of such actions promptly upon request of any Purchaser.

 

 

Article
VI

 

CONDITIONS TO THE OBLIGATIONS OF THE PARTIES

 

Section
6.1     Conditions to the Obligations of the Purchaser at the First Closing. The obligations of Purchaser to consummate
the First Closing shall be subject to (unless waived in writing by the Purchaser ) the satisfaction of the following conditions
prior to or at the First Closing:

 

    	 	35	 

     

    

 

(a)       Material
Adverse Effect. Since the date of this Agreement, there shall not have occurred a Material Adverse Effect.

 

(b)       Governmental
Approvals. All authorizations, approvals, consents or clearances under applicable Law required in connection with the transactions
contemplated by this Agreement shall have been obtained or filed.

 

(c)       No
Legal Impediment to Issuance. No applicable Law will have been enacted or made effective and no Order will have been issued,
promulgated, enforced or made that serves to restrain, enjoin, make illegal or prohibit the timely consummation of the transactions
contemplated by this Agreement, and no action by a Governmental Entity will have been commenced and be continuing that seeks to
restrain, enjoin, make illegal or prohibit the timely consummation of the transactions contemplated by this Agreement.

 

(d)       Accuracy
of the Representations and Warranties. (i) The Fundamental Representations shall be true and correct in all respects as
of the date hereof and as of the First Closing as though made at and as of the First Closing (other than such representations and
warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date) and (ii) the other
representations and warranties of the Company (A) that are qualified by “materiality”, “Material Adverse
Effect” or similar qualifier shall be true and correct in all respects as of the date hereof and as of the First Closing
as though made at and as of the First Closing (other than such representations and warranties as are made as of an earlier date,
which shall be so true and correct as of such earlier date) and (B) that are not qualified by “materiality”, “Material
Adverse Effect” or similar qualifier shall be true and correct in all material respects as of the date hereof and as of the
First Closing as though made at and as of the First Closing (other than such representations and warranties as are made as of an
earlier date, which shall be so true and correct as of such earlier date).

 

(e)       Compliance
with Covenants. The Company shall have performed and complied, in all material respects, with all of its covenants and agreements
contained in this Agreement that contemplate, by their terms, performance or compliance prior to the First Closing.

 

(f)       Delivery
of the Closing Certificate. The Company shall have delivered to Purchaser a certificate duly executed by the Chief Executive
Officer of the Company certifying that the conditions set forth in clauses (a), (d) and (e) of this Section 6.1 have
been fully satisfied.

 

(g)       NYSE
American Review. (i) The Company shall have timely provided notice to NYSE American regarding the transactions contemplated
by this Agreement, (ii) NYSE American shall have satisfactorily completed its review of the issuance of the Purchased Common Stock
and the Purchased Warrants on the terms and conditions contemplated herein and (iii) the Company shall have received approval from
NYSE American of an Additional Listing Application covering the Purchased Common Stock and the Common Stock underlying the Purchased
Warrants.

 

(h)       Suspension.
Since the date hereof, trading in the Common Stock shall not have been suspended.

 

    	 	36	 

     

    

 

(i)       Voting
Agreement. Voting Agreements shall have been executed and delivered to the Purchaser by stockholders of the Company holding
at least a majority of the outstanding shares of Common Stock as of the date hereof (the “Voting Agreement Condition”).

 

(j)       Other
Deliverables and Actions. The Company shall have delivered or caused to be delivered and shall have taken each of the actions
contemplated by Section 2.2(b).

 

Section
6.2     Conditions to the Obligations of the Company at the First Closing. The obligations of the Company to consummate
the First Closing shall be subject to (unless waived in writing by the Company) the satisfaction of each of the following conditions
prior to or at the First Closing:

 

(a)       Governmental
Approvals. All authorizations, approvals, consents or clearances under applicable Law required in connection with the transactions
contemplated by this Agreement shall have been obtained or filed.

 

(b)       No
Legal Impediment to Issuance. No applicable Law will have been enacted or made effective and no Order will have been issued,
promulgated, enforced or made that serves to restrain, enjoin, make illegal or prohibit the consummation of the transactions contemplated
by this Agreement, and no action by a Governmental Entity will have been commenced and be continuing that seeks to restrain, enjoin,
make illegal or prohibit the consummation of the transactions contemplated by this Agreement.

 

(c)       Accuracy
of the Representations and Warranties. The representations and warranties of the Purchaser shall be true and correct in all
respects as of the date hereof and as of the First Closing as though made at and as of the First Closing (other than such representations
and warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date) except, in each case,
as would not reasonably be expected, individually or in the aggregate, to prohibit or materially and adversely impact Purchaser’s
performance of its obligations under this Agreement.

 

Section
6.3     Conditions to the Obligations of the Purchaser at the Second Closing. The obligations of Purchaser to consummate
the Second Closing shall be subject to (unless waived in writing by the Purchaser) the satisfaction of the following conditions
prior to or at the Second Closing:

 

(a)       Material
Adverse Effect. Since the date of this Agreement, there shall not have occurred a Material Adverse Effect.

 

(b)       Governmental
Approvals. All authorizations, approvals, consents or clearances under applicable Law required in connection with the transactions
contemplated by this Agreement shall have been obtained or filed.

 

(c)       No
Legal Impediment to Issuance. No applicable Law will have been enacted or made effective and no Order will have been issued,
promulgated, enforced or made that serves to restrain, enjoin, make illegal or prohibit the timely consummation of the transactions
contemplated by this Agreement, and no action by a Governmental Entity will have been commenced and be continuing that seeks to
restrain, enjoin, make illegal or prohibit the timely consummation of the transactions contemplated by this Agreement.

 

    	 	37	 

     

    

 

(d)       Accuracy
of the Representations and Warranties. (i) The Fundamental Representations shall be true and correct in all respects as
of the date hereof and as of the Second Closing as though made at and as of the Second Closing (other than such representations
and warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date) and (ii) the
other representations and warranties of the Company (A) that are qualified by “materiality”, “Material Adverse
Effect” or similar qualifier shall be true and correct in all respects as of the date hereof and as of the Second Closing
as though made at and as of the Second Closing (other than such representations and warranties as are made as of an earlier date,
which shall be so true and correct as of such earlier date) and (B) that are not qualified by “materiality”, “Material
Adverse Effect” or similar qualifier shall be true and correct in all material respects as of the date hereof and as of the
Second Closing as though made at and as of the Second Closing (other than such representations and warranties as are made as of
an earlier date, which shall be so true and correct as of such earlier date).

 

(e)       Compliance
with Covenants. The Company shall have performed and complied, in all material respects, with all of its covenants and agreements
contained in this Agreement that contemplate, by their terms, performance or compliance prior to the Second Closing.

 

(f)       Delivery
of the Closing Certificate. The Company shall have delivered to Purchaser a certificate duly executed by the Chief Executive
Officer of the Company certifying that the conditions set forth in clauses (a), (d) and (e) of this Section 6.1 have
been fully satisfied.

 

(g)       Suspension.
Since the date hereof, trading in the Common Stock shall not have been suspended.

 

(h)       Stockholder
Approval. The Stockholder Approval shall have been duly received.

 

(i)       Other
Deliverables and Actions. The Company shall have delivered or caused to be delivered and shall have taken each of the actions
contemplated by Section 2.2(b).

 

Section
6.4     Conditions to the Obligations of the Company at the Second Closing. The obligations of the Company to consummate
the Second Closing shall be subject to (unless waived in writing by the Company) the satisfaction of each of the following conditions
prior to or at the Second Closing:

 

(a)       Governmental
Approvals. All authorizations, approvals, consents or clearances under applicable Law required in connection with the transactions
contemplated by this Agreement shall have been obtained or filed.

 

(b)       No
Legal Impediment to Issuance. No applicable Law will have been enacted or made effective and no Order will have been issued,
promulgated, enforced or made that serves to restrain, enjoin, make illegal or prohibit the consummation of the transactions contemplated
by this Agreement, and no action by a Governmental Entity will have been commenced and be continuing that seeks to restrain, enjoin,
make illegal or prohibit the consummation of the transactions contemplated by this Agreement.

 

    	 	38	 

     

    

 

(c)       Accuracy
of the Representations and Warranties. The representations and warranties of the Purchaser shall be true and correct in all
respects as of the date hereof and as of the Second Closing as though made at and as of the Second Closing (other than such representations
and warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date) except, in each case,
as would not reasonably be expected, individually or in the aggregate, to prohibit or materially and adversely impact Purchaser’s
performance of its obligations under this Agreement.

 

Article
VII

 

INTENTIONALLY OMITTED

 

Article
VIII

 

TERMINATION

 

Section
8.1     Termination. This Agreement may be terminated, and the transactions contemplated hereby may be abandoned, at
any time prior to the First Closing:

 

(a)       by
mutual written consent of the Company and the Purchaser;

 

(b)       by
the Purchaser or the Company, upon written notice to the other, if the First Closing shall not have been consummated on or prior
to 5:00 pm New York Time on March 15, 2020 or such later date, if any, as the Company and the Purchaser may mutually agree
upon in writing (such date, the “Termination Date”); provided, however, that the right to terminate
this Agreement pursuant to this Section 8.1(b) shall not available to a Party if such Party’s breach of any representation,
warranty, covenant or other agreement contained in this Agreement is the primary cause of the failure of the First Closing to occur
on or prior to the Termination Date;

 

(c)       by
the Company or the Purchaser, upon written notice to the other Party, if a Governmental Entity of competent jurisdiction has issued
an Order or has taken any other action permanently enjoining or otherwise prohibiting the consummation of the transactions contemplated
by this Agreement, and such Order or action has become final and non-appealable; provided, however, that the right
to terminate this Agreement pursuant to this Section 8.1(c) shall not be available to any Party whose breach of any
representation, warranty, covenant or other agreement contained in this Agreement is the primary cause of the failure to avoid
such Order or other action; or

 

(d)       by
Purchaser, upon written notice to the Company, if:

 

(i)       (A)
the Company has breached any representation, warranty, covenant or other agreement made by the Company in this Agreement or such
representation or warranty shall have become inaccurate and such breach or inaccuracy would, individually or in the aggregate,
cause a condition to the First Closing or Second Closing to not be able to be satisfied, (B) the Purchaser shall have delivered
written notice of such breach or inaccuracy to the Company and (C) such breach or inaccuracy is not cured by the Company before
the earlier of (x) the 10th day following the delivery of such notice, and (y) the Termination Date; or

 

    	 	39	 

     

    

 

(ii)       the
Company or any of its direct or indirect Subsidiaries (A) voluntarily commences any case or files any petition seeking bankruptcy,
winding up, dissolution, liquidation, administration, moratorium, reorganization or other relief under any federal, state or foreign
bankruptcy, insolvency, administrative receivership or similar law now or hereafter in effect; (B) consents to the institution
of, or fails to contest in a timely and appropriate manner, any involuntary proceeding or petition described in the preceding subsection
(A); (C) applies for or consents to the appointment of a receiver, administrator, administrative receiver, trustee, custodian,
sequestrator, conservator or similar official with respect to the Company or any Affiliate or for a substantial part of the Company’s
assets; (D) makes a general assignment or arrangement for the benefit of creditors; or (E) takes any corporate action
for the purpose of authorizing any of the foregoing.

 

Section
8.2     Effect of Termination. Upon termination of this Agreement pursuant to this Article VIII, this Agreement
shall forthwith become void and there shall be no further obligations or liabilities on the part of the Parties; provided,
that, Section 2.3(b)(ii), Section 5.9, Article VIII, Section 9.1, Section 9.3 through Section
9.11 (except as otherwise set forth therein) and Section 9.13 shall survive the termination of this Agreement; provided
further that nothing set forth in this Agreement shall relieve any Party from liability for any breach of this Agreement occurring
prior to such termination.

 

Section
8.3     Termination Fee. Without limiting any other rights or obligations set forth in this Agreement, in the event that
this Agreement is terminated pursuant to Section 8.1(b) and if, as of such termination, the Voting Agreement Condition
shall not have been satisfied on or prior to prior to 5:00 pm New York Time on March 15, 2020, then the Company shall pay, or cause
to be paid, to the Purchaser, (x) an amount equal to $650,000 (such amount, the “Termination Fee”) and (y) the
reimbursement of expenses contemplated by Section 5.9; provided however that in the event this Agreement is terminated pursuant
to Section 8.1(b), the Company’s expense reimbursement obligation shall be limited to $200,000. Payment of the Termination
Fee or the reimbursement of expenses shall be made by wire transfer of immediately available funds to such accounts as directed
by the Purchaser and shall be made within two (2) Business Days following the termination of this Agreement.

 

Section
8.4     Second Closing Abandonment. In the event that the Second Closing shall not have been consummated on or prior
to 5:00 pm New York Time on May 15, 2020 or such later date, if any, as the Company and the Purchaser may mutually agree (the “Abandonment
Date”), either the Purchaser or the Company shall be entitled to deliver written notice (a “Second Closing Abandonment
Notice”) to the other specifying that the noticing party has elected not to proceed with the consummation of the Second
Closing; provided, however, that the right to deliver a Second Closing Abandonment Notice pursuant to this Section 8.1(c).4
shall not be available to any Party whose breach of any representation, warranty, covenant or other agreement contained in this
Agreement is the primary cause of the failure of the Second Closing to occur on or prior to the Abandonment Date. Upon delivery
of a Second Closing Abandonment Notice, the obligation of each party to consummate the Second Closing shall terminate and no party
shall thereafter be required to take any action contemplated herein necessary to cause the Second Closing to occur (the “Second
Closing Abandonment”). For the avoidance of doubt, (i) the occurrence of the Second Closing Abandonment shall not limit any
liability for a breach of this Agreement occurring prior to the Second Closing Abandonment and (ii) following the Second Closing
Abandonment, all other terms, conditions and indemnities set forth herein shall continue in full effect in accordance with their
terms.

 

    	 	40	 

     

    

 

Article
IX

 

GENERAL PROVISIONS

 

Section
9.1     Notices. All notices and other communications in connection with this Agreement shall be in writing and shall
be deemed given if delivered personally, sent via electronic mail (with confirmation), mailed by registered or certified mail (return
receipt requested) or delivered by an express courier (with confirmation) to the Parties at the following addresses (or at such
other address for a Party as may be specified by like notice):

 

(a)       If
to the Company:

 

Armata Pharmaceuticals, Inc.

4503 Glencoe Avenue

Marina del Rey, CA

Attn: Chief Executive Officer

Tel: (310) 665-2928

Email: info@armatapharma.com

 

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

 

	
        Thompson Hine LLP

        335 Madison Avenue

        12th Floor

        New York, New York 10017-4611

        Attn: Faith L. Charles

        Tel: (212) 344-5680

        Email: faith.charles@thompsonhine.com
	 

 

(b)       If
to the Purchaser:

 

1350 Old Bayshore Highway Suite 400

Burlingame, CA 94010

Attention: Chief Executive Officer

Email: Geoffrey.hulme@inva.com

 

    	 	41	 

     

    

 

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

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Attn: Russell Leaf

           Jared Fertman

Tel: (212) 728-8593

        (212) 728-8670

Email: rleaf@willkie.com

           jfertman@willkie.com

 

Section
9.2     Assignment; Third Party Beneficiaries. Neither this Agreement nor any of the rights, interests or obligations
under this Agreement shall be assigned or transferred (in whole or in part) by any Party (whether by operation of law or otherwise)
without the prior written consent of the other Party; provided that Purchaser shall be entitled to assign this Agreement in whole
or in part to any of its Subsidiaries or Affiliates. Any purported assignment or transfer in violation of this Section 9.2
shall be null and void ab initio. This Agreement (including the documents and instruments referred to in this Agreement)
is not intended to and does not confer upon any Person any rights or remedies under this Agreement other than the Parties.

 

Section
9.3     Prior Negotiations; Entire Agreement. This Agreement (including the agreements attached as Schedules and Exhibits to
and the documents and instruments referred to in this Agreement, including the Definitive Documents) constitute the entire agreement
of the Parties and supersede all prior agreements, arrangements or understandings, whether written or oral, among the Parties with
respect to the subject matter of this Agreement.

 

Section
9.4     Governing Law; Venue: Forum. THIS AGREEMENT (AND ANY CLAIMS OR CAUSE OF ACTION ARISING UNDER, OUT OF OR IN CONNECTION
WITH THIS AGREEMENT, WHETHER IN CONTRACT, TORT OR STATUTE) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF. Each of the Parties irrevocably and unconditionally agrees that, subject to the immediately following sentence
of this Section 9.4, any legal action, suit or proceeding against it with respect to any matter arising under, out
of or in connection with this Agreement or for recognition or enforcement of any judgment rendered in any such action, suit or
proceeding, may be brought in the Delaware Chancery Court (or, if the Delaware Chancery Court shall be unavailable, then any federal
court of the United States of America sitting in the State of Delaware), and by execution and delivery of this Agreement, each
of the Parties: (a) irrevocably submits itself to the nonexclusive jurisdiction of such court, (b) waives any objection
to laying venue in any such action, suit or proceeding and (c) waives any objection that such court is an inconvenient forum
or does not have jurisdiction over such Party.

 

Section
9.5     Waiver of Jury Trial. EACH PARTY IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
UNDER, OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER IN CONTRACT, TORT OR STATUTE).

 

    	 	42	 

     

    

 

Section
9.6     Counterparts. This Agreement may be executed in any number of counterparts, all of which will be considered one
and the same agreement and will become effective when counterparts have been signed by each of the Parties and delivered to each
other Party (including via facsimile or other electronic transmission), it being understood that each Party need not sign the same
counterpart.

 

Section
9.7     Waivers and Amendments; Rights Cumulative; Consent; Severability.

 

(a)       This
Agreement may be amended, restated, modified or changed only by a written instrument signed by the Company and the Purchaser.

 

(b)       Unless
otherwise expressly set forth herein, the terms and conditions of this Agreement may be waived (i) by the Company only by
a written instrument executed by the Company and (ii) by the Purchaser only by a written instrument executed by the Purchaser.
No delay on the part of any Party in exercising any right, power or privilege pursuant to this Agreement will operate as a waiver
thereof, nor will any waiver on the part of any Party of any right, power or privilege pursuant to this Agreement, nor will any
single or partial exercise of any right, power or privilege pursuant to this Agreement, preclude any other or further exercise
thereof or the exercise of any other right, power or privilege pursuant to this Agreement.

 

(c)       In
the event that any provision hereof would be invalid or unenforceable in any respect under applicable Law, such provision shall
be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible
under, applicable Law. The provisions hereof are severable, and in the event any provision hereof should be held invalid or unenforceable
in any respect, it shall not invalidate, render unenforceable or otherwise affect any other provision hereof.

 

Section
9.8     Headings; Interpretation. The headings in this Agreement are for reference purposes only and will not in any
way affect the meaning or interpretation of this Agreement. Each Party participated in the drafting of this Agreement and this
Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party
drafting an instrument or causing any instrument to be drafted.

 

Section
9.9     Specific Performance. It is understood and agreed by the Parties that irreparable damage would occur if any provision
of this Agreement were not performed in accordance with the terms hereof and that the Parties shall be entitled to an injunction
or injunctions without the necessity of posting a bond to prevent breaches of this Agreement or to enforce specifically the performance
of the terms and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity. Unless otherwise
expressly stated in this Agreement, no right or remedy described or provided in this Agreement is intended to be exclusive or to
preclude a Party from pursuing other rights and remedies to the extent available under this Agreement, at law or in equity.

 

    	 	43	 

     

    

 

Section
9.10     Publicity. The Parties shall jointly issue a press release disclosing the material terms of the transactions
contemplated by this Agreement and the other Definitive Documents in form and substance reasonably satisfactory to each Party by
9:30 a.m. New York time on the Business Day immediately following the date hereof. The Company shall file a Current Report on Form
8-K with the SEC within the time required by the Exchange Act in form and substance reasonably satisfactory to Purchaser. The Company
shall consult with the Purchaser in issuing any other press releases with respect to the transactions contemplated hereby, and
the Company shall not issue any such press release or otherwise make any such public statement without the prior consent of the
Purchaser, except if such disclosure is required by Law, in which case the Company shall promptly provide Purchaser with prior
notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name
of Purchaser, or include the name of Purchaser in any filing with the SEC or any Governmental Entity, without the prior written
consent of Purchaser, except to the extent such disclosure is required by Law or NYSE American regulations, in which case the Company
shall provide the Purchaser with prior notice of such disclosure.

 

Section
9.11     No Recourse. Notwithstanding anything that may be expressed or implied in this Agreement, each Party covenants,
agrees and acknowledges that no recourse under this Agreement or any documents or instruments delivered in connection with this
Agreement shall be had against any Party’s Affiliates, Related Parties or Representatives or any of such Party’s Affiliates’
or Related Parties’ Affiliates or Representatives in each case other than the Parties to this Agreement and each of their
respective successors and permitted assigns under this Agreement, whether by the enforcement of any assessment or by any legal
or equitable proceeding, or by virtue of any applicable Law, it being expressly agreed and acknowledged that no personal liability
whatsoever shall attach to, be imposed on or otherwise be incurred by any of the Related Parties or Representatives, as such, for
any obligation or liability of any Party under this Agreement or any documents or instruments delivered in connection herewith
for any claim based on, in respect of or by reason of such obligations or liabilities or their creation; provided, however,
that nothing in this Section 9.11 shall relieve or otherwise limit the liability of any Party hereto or any of their
respective successors or permitted assigns for any breach or violation of its obligations under this Agreement or such other documents
or instruments. For the avoidance of doubt, none of the Parties will have any recourse, be entitled to commence any proceeding
or make any claim under this Agreement or in connection with the transactions contemplated hereby except against any of the Parties
or their respective successors and permitted assigns, as applicable.

 

Section
9.12     Further Assurances. From and after the Second Closing Date, upon the reasonable request of any Party hereto,
any other Party hereto shall execute, acknowledge, file and/or deliver all such additional instruments, agreements and other documents,
and shall do (or cause to be done) all such additional acts and things, that are necessary, proper, advisable or desirable to carry
out, consummate and make effective any of the transactions contemplated by this Agreement.

 

Section
9.13     Survival. All covenants and other agreements contained in this Agreement which by their terms are to be performed
following the Second Closing shall survive the Second Closing until fully performed. The representations and warranties made in
this Agreement shall survive as follows: (a) the representations and warranties set forth in Section 3.1 (Organization
and Qualification), Section 3.2 (Authorization; Enforcement Validity), Section 3.3 (Issuance of Securities),
Section 3.13 (Transactions with Affiliates), Section 3.14 (Capitalization) and Section 3.36
(Disclosure) (collectively, the “Fundamental Representations”) shall survive indefinitely, (b) the representations
and warranties in Section 3.19, (Employee Relations), Section 3.23 (Tax Status) and Section
3.29 (ERISA Compliance) shall survive until the expiration of the statute of limitations plus sixty (60) days and (c)
all other representations and warranties shall survive until the twelve (12)-month anniversary of the Second Closing.

 

[Remainder of Page
Intentionally Left Blank]

 

    	 	44	 

     

    

 

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

 

 

	 	Armata Pharmaceuticals, Inc.
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Todd R. Patrick	 
	 	 	Name: Todd R. Patrick	 
	 	 	Title: Chief Executive Officer	 

 

 

 

 

 

 

[Signature Page to Securities Purchase
Agreement]

     

     

    

 

	 	INNOVIVA, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Geoffrey Holme	 
	 	 	Name: Geoffrey Holme
	 	 	Title: Interim Principal Executive Officer

 

 

 

 

 

 

 

 

[Signature Page to Securities Purchase
Agreement]Exhibit 10.2

 

INVESTOR RIGHTS AGREEMENT

 

This Investor
Rights Agreement (this “Agreement”) is made and entered into as of __________, 2020 by and between Armata
Pharmaceuticals Inc., a Washington corporation (the “Company”), and Innoviva, Inc., a Delaware corporation (the
 “Purchaser”), in connection with that certain Securities Purchase Agreement, dated as of _________, 2020, by
and between the Company and the Purchaser (the “Purchase Agreement”). Capitalized terms used herein have the
respective meanings ascribed thereto in the Purchase Agreement unless otherwise defined herein.

 

The parties hereby
agree as follows:

 

1.       Certain
Definitions.

 

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

 

“Applicable
Percentage” means, with respect to any person on any date of determination, the quotient, expressed as a percentage,
determined by dividing (i) the number of Company Common Stock owned (directly or indirectly) by such person determined on a Fully
Diluted Basis by (ii) the total number of Company Common Stock that are issued and outstanding determined on a Fully Diluted Basis.

 

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

 

“Company Common
Stock” means the shares of common stock, par value $0.01 per share, of the Company.

 

“Exchange
Shares” means Company Common Stock issued or issuable upon the exchange of the Warrants pursuant to the terms thereof.

 

“Exempted
Securities” means

 

(i)Company Common
Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable into or exercisable
for Company Common Stock) issued as a dividend or distribution on the Warrants;

 

(ii)       Company
Common Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable into or exercisable
for Company Common Stock) issued by reason of a dividend, stock split, split-up or other distribution of Company Common Stock;

 

(iii)       Company
Common Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable into or exercisable
for Company Common Stock) issued to employees or directors of, or consultants or advisors to the Company or any of its Subsidiaries
pursuant to a plan, agreement or arrangement;

 

(iv)       Company
Common Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable into or exercisable
for Company Common Stock) issued to banks, equipment lessors or other financial institutions, or to real property lessors, pursuant
to a debt financing, equipment leasing or real property leasing transaction ; or

 

     

     

    

 

(v)       Company
Common Stock (or options or other rights to acquire Company Common Stock or securities convertible or exchangeable into or exercisable
for Company Common Stock) issued in connection with sponsored research, collaboration, technology license, development, manufacturing,
supply, distribution, marketing or other similar commercial agreements or strategic partnerships.

 

“Fully Diluted
Basis” means the number of shares of Company Common Stock outstanding or held (as the case may be), assuming the conversion,
exchange or exercise of all securities or other instruments or rights that are convertible into or exercisable or exchangeable
for Company Common Stock that are outstanding. For purposes of this definition, all Warrants shall be deemed converted on the date
of determination in exchange for cash.

 

“Governmental
Entity” means any federal, state, local, foreign, international or multinational entity or authority exercising executive,
legislative, judicial, regulatory, administrative or taxing functions of or pertaining to government.

 

“New Securities”
means, collectively, equity securities of the Company (including Company Common Stock), whether or not currently authorized, as
well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may
become, convertible or exchangeable into or exercisable for such equity securities. For the avoidance of doubt, New Securities
shall not include any Exempted Securities.

 

“Purchased
Shares” means the Company Common Stock acquired by the Purchaser pursuant to the Purchase Agreement.

 

2.       Registration.
[Reserved].

 

3.       Participation
Rights.

 

(a)       Subject
to the terms and conditions of this Section 3 and applicable securities or blue sky laws, if the Company proposes to offer
or sell any New Securities, the Company shall first offer such New Securities to the Purchaser in accordance with the terms hereof.

 

(b)       The
Company shall give notice (the “Offer Notice”) to the Purchaser, stating (i) its bona fide intention to offer
or sell such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon
which it proposes to offer such New Securities.

 

(c)       By
written notification to the Company within thirty (30) days after the Offer Notice is delivered to the Purchaser, the Purchaser
may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of
such New Securities which equals the Purchaser’s Applicable Percentage. The failure of the Purchaser to deliver such written
notice within such time period shall be deemed an election by the Purchaser not to exercise its purchase rights with respect to
such Offer Notice. To the extent that the Company offers two (2) or more New Securities or other securities in units, the Purchaser
must purchase such units as a whole and will not be given the opportunity to purchase only one of the securities making up such
unit.

 

    	 	- 2 -	 

     

    

 

(d)       The
Company shall sell all applicable New Securities to the Purchaser if it has elected to purchase such New Securities on a date to
be mutually determined by the Company and the Purchaser, which date shall be not later than end of the ten (10) day period commencing
at the expiration of the initial thirty (30) day election period; provided, however, that such ten (10) day period shall be extended
automatically if any approvals or consents of any Governmental Entities are required to consummate the transaction and such approvals
or consents are not received within such ten (10) day period for up to an additional one hundred twenty (120) days as long as such
approvals or consents remain outstanding and the parties are continuing to exercise commercially reasonable efforts to obtain them.

 

(e)       Upon
the expiration of the offering period described in Section 3(d), the Company will be free to sell, during the one hundred
twenty (120) day period commencing at the expiration of, as applicable, the initial thirty (30) day election period following delivery
of an Offer Notice (as may be extended in accordance with Section 3(d)), any New Securities that the Purchaser has not elected
to purchase, at a sale price not less than, and on other terms no less favorable to the Company than, those offered to the Purchaser
as set forth in the Offer Notice, provided, that such one hundred twenty (120) day period shall be extended automatically if any
approvals or consents of any Governmental Entities are required to consummate the transaction and such approvals or consents are
not received within such one hundred twenty (120) day period for up to an additional one hundred twenty (120) days as long as such
approvals or consents remain outstanding and the parties are continuing to exercise commercially reasonable efforts to obtain them.
Any New Securities offered or sold by the Company after such one hundred twenty (120) day period (as such period may be extended
in accordance with the immediately preceding sentence) must be reoffered to the Purchaser pursuant to this Section 3.

 

(f)       The
election by the Purchaser not to exercise its subscription rights under this Section 3 in any one instance shall not affect
its right (other than in respect of a reduction in its Applicable Percentage) as to any subsequent proposed issuance of New Securities
under this Section 3. The provisions of this Section 3 shall apply equally to any issuance or sale by the Company
or any of its Subsidiaries of equity securities that would be deemed New Securities if issued by the Company which, for the avoidance
of doubt, shall not include any issuance of New Securities by a wholly-owned Subsidiary to the Company or to another wholly-owned
Subsidiary of the Company. Subject to the terms of this Section 3, any sale of New Securities by the Company or any other
entity covered by the preceding sentence without first giving the Purchaser the rights described in this Section 3 shall
be null and void and of no force and effect.

 

(g)       Notwithstanding
the terms set forth in this Section 3, if the Board determines in good faith that the Company must issue New Securities
on an expedited basis without prior compliance with the terms of this Section 3 in order to avoid material harm to the Company
(an “Expedited Issuance”), then, subject to compliance with the terms of the immediately following sentence,
the Company may effect and consummate such Expedited Issuance without complying with the terms set forth in this Section 3
and shall not be deemed to be in breach of this Section 3 as a result thereof. As promptly as practicable following the
consummation of such Expedited Issuance, the Company and the Purchaser shall comply with the terms of this Section 3 in
respect of the New Securities issued in such Expedited Issuance such that the Purchaser has the opportunity to participate in such
Expedited Issuance of New Securities and be put in the same place (including in respect of the percentage ownership of the equity
securities of the Company) they would have been had such Expedited Issuance been effected in accordance with the terms of this
Section 3.

 

    	 	- 3 -	 

     

    

 

(h)       (i)
The provisions of this Section 3 (i) shall not apply to the issuance of Exempted Securities and (ii) shall terminate and
be of no further force or effect as of such time that the Purchaser, together with its Affiliates, have an Applicable Percentage
of less than 10%.

 

4.       Board
Matters.

 

(a)       For
so long as the Purchaser, together with its Affiliates and permitted assignees (collectively, the “Investors”)
have an Applicable Percentage of at least 8%, the Company shall cause the Board to consist of not more than eight (8) members without
the prior written consent of the Investors (which shall not be unreasonably withheld).

 

(b)       For
so long as the Investors have an Applicable Percentage of at least 12.5%, the Investors shall have the right to designate two (2)
directors to the Board, and for so long as the Investors, collectively, and together with their Affiliates, continue to have an
Applicable Percentage of at least8% but less than 12.5%, the Investors shall have the right to designate one (1) director to the
Board, in each case, in accordance with the terms of this Section 4. Any directors designated by the Investors in accordance
with this Section 4 shall be referred to as “Investor Designees”. It is the intention of the Investor
that the initial Investor Designees shall consist of Dr. Odysseas Kostas MD and Sarah Schlesinger MD . The right to designate one
or more Investor Designees shall terminate and be of no further force or effect as of such time that the Investors have an Applicable
Percentage of less than an applicable threshold percentage referenced in the first sentence of this Section 4(b). At any
point in which the Investors are entitled to designate an Investor Designee, the Investors may provide written notice (a “Designation
Notice”) to the Company naming the applicable Investor Designee(s) and demanding that the applicable Investor Designee(s)
be appointed to the Board. Promptly, and in any event within five (five) Business Days, following receipt of the Designation Notice,
the Company shall (i) cause a number of existing members of the Board equal to the number of Investor Designees so designated to
resign from the Board and (ii) cause the Investor Designees to be appointed to the Board. Following the delivery of a Designation
Notice and prior to the appointment of the Investor Designees to the Board, the Company shall not (and shall cause its Subsidiaries
not to) take or approve any action outside of the ordinary course of business including (without limitation) in respect of:

 

		(i)	strategic transactions, joint ventures and collaborations;

 

		(ii)	sale or acquisition of assets or shares of the Company or any of its Subsidiaries, whether by merger,
consolidation or otherwise;

 

		(iii)	issuance of equity or debt securities;

 

		(iv)	incurrence or prepayment of indebtedness;

 

    	 	- 4 -	 

     

    

 

		(v)	declaration or payment of any dividend or distribution;

 

		(vi)	amendment of any provision of this Agreement or any other governing documents of the Company or
any of its Subsidiaries in a manner that would be inconsistent with the provisions of this Agreement;

 

		(vii)	any change to the Company’s or any Subsidiary’s legal
form, domicile or tax structure, or make any material change to the Company’s accounting or tax policies or practices;
or

 

		(viii)	amend or alter the compensation of any of the Company’s or Subsidiary’s
executives.

 

(c)       With
respect to any vote of the Board, each director shall have one (1) vote and approval of all matters shall require the affirmative
vote of a majority of directors.

 

(d)       Subject
to the terms of this Section 4, from and after the date hereof, the Company shall take all action within its power to cause
the covenants set forth in Section 4(a) and Section 4(b) to be fulfilled in all respects including: (i) causing the
Investor Designees to be named in any proxy statement of the Company with respect to the election of members of the Board, (ii)
soliciting the votes of shareholders in respect of the Investor Designees in the same manner and with the same level of effort
as with the solicitation in respect of other members of the Board, (iii) seeking to amend any organizational documents of the Company
necessary to give effect to the Investors’ rights hereunder as may reasonably be requested by the Investors and (iv) take
all actions permitted by applicable law to cause the Investor Designees to be members of the Board (including the appointment of
the Investor Designees to the Board).

 

(e)       Subject
to clause (e) immediately below, in the event that an Investor Designee ceases to serve on the Board for any reason (including
the death, disability or resignation of such person), the Investors shall be entitled to appoint a new Investor Designee in the
place of such person, and the terms of this Section 4 shall apply equally to such replacement.

 

(f)       In
the event that the Applicable Percentage of the Investors (and their Affiliates) falls below a threshold set forth in Section
4(b) such that the Investors shall lose the right to designate one or more Investor Designees, if one or more Investor Designee
has been designated, the Investors shall identify which of the Investor Designees shall no longer be an Investor Designee (such
person, a “Departing Designee”), and which Investor Designee(s) (if any) will remain as such; for the avoidance
of doubt, the terms of this Section 4 shall continue to apply to any Investor Designee who is not a Departing Designee.
In the event of a Departing Designee, the Investors shall cause the removal or resignation of such Departing Designee prior to
the next annual meeting of the Company shareholders, and the provisions of Section 4(b) and (c) shall not apply to
such Departing Designee, and in connection therewith, the Company shall not be required to name such Departing Designee on its
proxy statement or solicit votes in favor of such Departing Designee.

 

    	 	- 5 -	 

     

    

 

(g)       For
so long as the Investor holds the Applicable percentages set forth above, in the event that any member of the Board serves on the
board of directors or similar governing body of any Subsidiary of the Company (a “Subsidiary Board”) or in the
event that any shareholder of the Company has appointed or designated a person to serve on a Subsidiary Board, the Investors shall
be entitled to designate a number of Investor Designees to the Subsidiary Board equal to the greater of (x) one Investor Designee
or (y) such other number of Investor Designees such that the proportionate representation of Investor Designees on such Subsidiary
Board approximates, as closely as possible, the proportionate representation of Investor Designees on the Board.

 

Subject to applicable
law and listing requirements, the Investor Designees shall be entitled to be a member of any committee of the Board (including
an executive or similar committee).

 

(h)       Any
person designated by the Investor as an Investor Designee must possess the requisite financial and business experience to serve
as a director of the Company (it being understood that the directors and each of the executives and investment professionals employed
by the Investor or its Affiliates shall be deemed to possess such experience). If the Board and all applicable committees of the
Board reasonably determine that an Investor Designee satisfies the criteria in the foregoing sentence, the Board shall nominate
and appoint such Investor Designee to the Board.

 

(i)       For
purposes of this Section 4, whenever the action of the Investors is required, such action shall be effected by vote of a
majority of Investors.

 

5.       Information
and Confidentiality.

 

The Company shall provide to Purchaser
all information and documentation reasonably requested by Purchaser, within the periods reasonably requested by Purchaser, as is
necessary for the Purchaser to complete and file all public filings required to be made by Purchaser under applicable Law and the
rules and regulations of the Securities Exchange Commission.

 

The
Purchaser agrees that it will keep confidential and will not disclose or divulge any confidential information obtained from the
Company pursuant to the terms of this Agreement, unless such confidential information (a) is known or becomes known to the public
in general (other than as a result of a breach of this Section 5 by the Purchaser), (b) is or has been independently developed
or conceived by the Purchaser without use of the Company’s confidential information, or (c) is or has been made known or
disclosed to the Purchaser by a third party without a breach of any obligation of confidentiality such third party may have to
the Company; provided, however, that the Purchaser may disclose confidential information (i) to its attorneys, accountants, consultants
and other professionals to the extent necessary to obtain their services in connection with matters related to the Company; (ii)
to any prospective purchaser of any Registrable Securities from the Purchaser, if such prospective purchaser agrees to be bound
by the provisions of this Section 5; (iii) to any Affiliate or its or their general or limited partners, members, stockholders,
employees, officers or directors, in the ordinary course of business, provided that the Purchaser informs such person that such
information is confidential and directs such person to maintain the confidentiality of such information; or (iv) as may otherwise
be required by law, regulation, rule, court order, arbitration order or subpoena, provided that the Purchaser promptly notifies
the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure. The Purchaser
acknowledges and agrees that the securities laws of the United States and other jurisdictions contain prohibitions on the trading
in the securities of the Company while in possession of material nonpublic information regarding the Company, and agrees
to comply with such restrictions.

 

    	 	- 6 -	 

     

    

 

6.       Miscellaneous.

 

(a)       Amendments
and Waivers. This Agreement may be amended only by a writing signed by the Company and the Purchaser. The failure or delay
in enforcing compliance at any time with respect to any of the provisions, terms or conditions of this Agreement shall not be considered
a waiver of such provision, term or condition itself or of any of the other provisions, terms or conditions hereof.

 

(b)       Notices.
All notices and other communications provided for or permitted hereunder shall be made as set forth in Section 9.1 of the
Purchase Agreement.

 

(c)       Assignments
and Transfers by the Purchaser. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
and their respective successors and permitted assigns. The Purchaser may transfer or assign, in whole or from time to time in part,
to one or more persons its rights hereunder in connection with the transfer of Registrable Securities by the Purchaser to such
person, provided that the Purchaser complies with all laws applicable thereto and the provisions of the Purchase Agreement and
the Warrant and provides written notice of assignment to the Company prior to such assignment or transfer being effected, and such
transferee agrees in writing and as a condition to the receipt of Registrable Securities to be bound by all of the provisions contained
herein.

 

(d)       Assignments
and Transfers by the Company. This Agreement may not be assigned by the Company (whether by operation of law or otherwise)
without the prior written consent of the Purchaser; provided, however, that in the event that the Company is a party to a merger,
consolidation, share exchange or similar business combination transaction in which the Company Common Stock are converted into
the equity securities of another person, from and after the effective time of such transaction, such person shall, by virtue of
such transaction, be deemed to have assumed the obligations of the Company hereunder, and the term “Company” shall
be deemed to refer to such person and the term “Registrable Securities” shall be deemed to include the securities received
by the Purchaser in connection with such transaction unless such securities are otherwise freely tradable by the Purchaser after
giving effect to such transaction.

 

(e)       Benefits
of the Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and permitted assigns of the parties. 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.

 

    	 	- 7 -	 

     

    

 

(f)       Counterparts.
This Agreement may be executed in several counterparts, and by each party on separate counterparts, each of which and any photocopies
or other electronic transmission (including by PDF) thereof shall be deemed an original, but all of which together shall constitute
one and the same agreement.

 

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

 

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

 

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

 

(j)       Entire
Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein.
This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter.

 

(k)       Specific
Performance. Without limiting remedies that may be available at law or in equity, the parties acknowledge that any failure
by any party to comply with their respective obligations under this Agreement would result in material irreparable injury to the
other party for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely
and that, in the event of any such failure, the non-breaching party may specifically enforce the breaching party’s obligations
under this Agreement without the need to show actual damages and without the need to post a bond or other security.

 

    	 	- 8 -	 

     

    

 

(l)       Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of Delaware without regard to the choice of law principles thereof. Each Party agrees that all legal
proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether
brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the State of Delaware. Each party hereby irrevocably submits to the exclusive
jurisdiction of such courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or other proceeding, any
claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper
or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or other proceeding by mailing a copy thereof via registered or certified United
States mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. The
Parties hereby waive all rights to a trial by jury.

 

[Remainder of page intentionally left blank]

 

    	 	- 9 -	 

     

    

 

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

 

	 	COMPANY:
	 	 
	 	ARMATA PHARMACEUTICALS INC. 
	 	 
	 	 
	 	By:	        	 
	 	Name: 
	 	Title:
	 	 
	 	 
	 	PURCHASER:
	 	 
	 	INNOVIVA, INC.
	 	 
	 	By:	 	        
	 	Name: 
	 	Title: 
	 	 

 

 

 

 

 

    	 	A-1

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