Document:

Exhibit 10.2

 

SECURITY AGREEMENT

 

THIS
SECURITY AGREEMENT (this "Agreement"), is entered into as of March 11, 2021 (the “Effective Date”),
by and between NEXGEL, INC., a Delaware corporation (the "Borrower"), and Auctus Fund, LLC, a Delaware limited
liability company (the "Secured Party"). All capitalized terms not otherwise defined herein shall the meanings
ascribed to them in that certain securities purchase agreement by and between Borrower and the Secured Party of even date (the
 "Securities Purchase Agreement") and Note (as defined below), as applicable.

 

RECITALS

 

WHEREAS,
the Secured Party has entered into the Securities Purchase Agreement, pursuant to which the Borrower issued that certain senior
secured promissory note in the principal amount of $1,500,000.00 (the “Note”) to the Secured Party on March
11, 2021;

 

WHEREAS,
the term "Secured Party" as used in this Agreement shall mean, collectively, all holders of the Note, including those
persons who become holders of Note subsequent to the date hereof; and

 

WHEREAS, this Agreement is being executed and delivered
by Borrower to secure the Note.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the parties
hereto hereby agrees as follows:

 

1.        
Obligations Secured. This Agreement secures, in part, the prompt payment and performance of all obligations of Borrower
under the Note, and all renewals, extensions, modifications, amendments, and/or supplements thereto (collectively, the "Secured
Obligations"). If, as of the date that is one hundred fifty (150) calendar days after the date of this Agreement, (i)
an Event of Default (as defined in this Agreement) has not occurred and (ii) the Borrower has complied in all material respects
with the terms of the Registration Rights Agreement (as defined in the Securities Purchase Agreement), and (iii) the Common Stock
(as defined in the Securities Purchase Agreement) is quoted or listed for trading on the OTCQB Marketplace, OTCQX, any tier of
the NASDAQ Stock Market, the New York Stock Exchange, or the NYSE American, then the security interest created in favor of the
Secured Party pursuant to this Agreement shall terminate.

 

		2.	Grant of Security.

 

a.                
Collateral. Borrower hereby grants, pledges, and assigns for the benefit of the Secured Party, and there is hereby created
in favor of the Secured Party, a security interest in and to all of Borrower' s right, title, and interest in, to, and under all
of the collateral set forth on Exhibit A hereto (collectively, "Collateral").

 

b.                 
Effective Date. This grant of security shall be effective as of the Effective Date.

 

    

     

    

 

c.                 
Subordination. The Note and the Secured Obligations shall not be subordinated, or junior in interest, to any other obligations
of Borrower.

 

d.                  
Filings to Perfect Security. The Borrower shall (and is hereby authorized to) file with the applicable filing office(s)
such financing statements, amendments, addenda, continuations, terminations, assignments and other records (whether or not executed
by Borrower) to perfect and to maintain perfected security interests in the Collateral by the Secured Party, including but not
limited to (a) promptly upon the execution of this Agreement, a Financing Statement on Form UCC-1 (the "Financing Statement'')
shall be filed with the Delaware Secretary of State and in all other applicable jurisdictions on behalf of the Secured Party with
respect to the Collateral. The Financing Statement shall designate the Secured Party as a Secured Party and Borrower as the debtor,
shall identify the security interest in the Collateral, and contain any other items required by law. The Secured Party shall have
the right (and is hereby authorized to) to file with the applicable filing office(s) such financing statements, amendments, addenda,
continuations, terminations, assignments and other records (whether or not executed by Borrower) to perfect and to maintain perfected
security interests in the Collateral by the Secured Party, including but not limited to a Financing Statement on Form UCC-1 with
the Delaware Secretary of State and in all other applicable jurisdictions with respect to the Collateral promptly upon the execution
of this Agreement.

 

The
Financing Statement shall contain a description of collateral consistent with the description set forth herein.

 

3.                
Transfers and Other Liens. Except as set forth herein or in the Note, Borrower shall not, without the prior written consent
of the Secured Party, at their sole and absolute discretion:

 

a.            Sell, transfer, assign, or dispose of (by operation of law or otherwise), any of the Collateral outside of the ordinary course
of business;

 

b.            Create or suffer to exist any lien, security interest, or other charge or encumbrance upon or with respect to any of the Collateral,
except the security interests created hereby; or

 

		c.	Permit any of the Collateral to be levied upon under any legal process.

 

Notwithstanding anything in
this Section 3 of this Agreement to the contrary, up and until fourteen calendar days from the Effective Date, the Borrower may
issue junior secured promissory notes in the total aggregate amount of up to $1,000,000.00 (the “Junior Notes”), on
the same terms and conditions of the Note, except that the rights and interests of the holder(s) of the Junior Notes must be fully
subordinated to the Secured Party’s rights and interests under the Note, the Purchase Agreement, this Agreement, and the
other related transaction document entered into between the Borrower and the Secured Party on or around the Effective Date. Accordingly,
prior to the issuance of any Junior Notes, the holder(s) of such Junior Notes shall enter into a subordination agreement with the
Secured Party in such form and substance that is acceptable to the Secured Party.

 

4.                 Representations
and Warranties. Borrower hereby represents and warrants to the Secured Party as follows: (a) to Borrower' s knowledge,
Borrower is the owner of the Collateral (or, in the case of after-acquired Collateral, at the time Borrower acquires rights
in the Collateral, will be the owner thereat) and that, except as expressly provided herein, no other person has (or, in the
case of after-acquired Collateral, at the time Borrower acquires rights therein, will have) any right, title, claim or
interest (by way of Lien or otherwise) in, against or to the Collateral; (b) to Borrower's knowledge, except as expressly
provided herein, upon the filing of a Financing Statement with the Delaware Secretary of State, the Secured Party (or in the
case of after-acquired Collateral, at the time Borrower acquires rights therein, will have) will have a perfected senior
security interest in the Collateral to the extent that a security interest in the Collateral can be perfected by such filing;
(c) all Accounts Receivable (as defined in Exhibit A) are genuine and enforceable against the party obligated
to pay the same; (d) Borrower has full power and authority to enter into the transactions provided for in this Agreement and
the Note; (e) this Agreement and the Note, when executed and delivered by Borrower, will constitute the legal, valid and
binding obligations of Borrower enforceable in accordance with their terms; (t) the execution and delivery by Borrower of
this Agreement and the Note and the performance and consummation of the transactions contemplated hereby and thereby do not
and will not violate Borrower's Certificate of Incorporation or Bylaws or any material judgment, order, writ, decree,
statute, rule or regulation applicable to Borrower (g) there does not exist any default or violation by Borrower of or under
any of the terms, conditions or obligations of (i) any indenture, mortgage, deed of trust, franchise, permit, contract,
agreement, or other instrument to which Borrower is a party or by which Borrower is bound, or (ii) any law, ordinance,
regulation, ruling, order, injunction, decree, condition or other requirement applicable to or imposed upon Borrower by any
law, the action of any court or any governmental authority or agency; and the execution, delivery and performance of this
Agreement will not result in any such default or violation; (h) there is no action, suit, proceeding, hearing, investigation,
charge, complaint, claim, or demand pending or, to the knowledge of Borrower, threatened which adversely affects Borrower' s
business or financial condition and there is no basis known to Borrower for any action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand which could result in the same; and (i) this Agreement and the Note do not
contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements
contained in this Agreement and the Note not misleading.

 

    

     

    

 

5.                
Events of Default. For purposes of this Agreement, the term "Event of Default" shall mean and refer to any of
the following:

 

		a.	Failure of Borrower to perform or observe any covenant set forth in this
Agreement, or to perform or observe any other term, condition, covenant, warranty, agreement or other provision contained in this
Agreement;

 

		b.	Any representation or warranty made or furnished by Borrower in writing
in connection with this Agreement and the Note or any statement or representation made in any certificate, report or opinion delivered
pursuant to this Agreement or in connection with this Agreement is false, incorrect or incomplete in any material respect at the
time it is furnished; or

 

		c.	Occurrence of any other Event of Default as defined in the Note.

 

6.                 Remedies.
Upon the occurrence and during the continuance of an Event of Default (subject to the notice and cure provisions provided for
herein, if any), each Secured Party shall have the rights of a secured creditor under the Uniform Commercial Code of the
applicable jurisdiction, all rights granted by the Note, this Agreement and by law, including the right to require Borrower
to assemble the Collateral and make it available to the Secured Party at a place to be designated by Borrower. The rights and
remedies provided in this Agreement and the Note are cumulative and may be exercised independently or concurrently, and are
not exclusive of any other right or remedy provided at law or in equity. No failure to exercise or delay by the Secured Party
in exercising any right or remedy under this Agreement or the Note shall impair or prohibit the exercise of any such rights
or remedies in the future or be deemed to constitute a waiver or limitation of any such right or remedy or acquiescence
therein. Every right and remedy granted to the Secured Party under this Agreement and the Note or by law or in equity may be
exercised by any Secured Party at any time and from time to time.

 

    

     

    

 

		7.	Further Assurances. Borrower agrees that, from time to time, at its own expense, it will:

 

		a.	Protect and defend the Collateral against all claims and demands of all persons
at any time claiming the same or any interest therein, and preserve and protect Secured Party's security interest in the Collateral.

 

		b.	Promptly execute and deliver to Secured Party all instruments and documents,
and take all further action necessary or desirable, as any Secured Party may reasonably request to (i) continue, perfect, or protect
any security interest granted or purported to be granted hereby, and (ii) enable a Secured Party to exercise and enforce any of
Secured Party's rights and remedies hereunder with respect to any Collateral.

 

		c.	Permit a Secured Party's representatives to inspect and make copies of all
books and records relating to the Collateral, wherever such books and records are located, and to conduct an audit relating to
the Collateral at any reasonable time or times.

 

8.                
Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed telex, e-mail or facsimile if sent during normal business
hours of the recipient, if not, then on the next business day, (c) five (5) days after having been sent by registered or certified
mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be sent as follows:

 

If to the Borrower, to:

 

NEXGEL, INC.

2150 Cabot Blvd West, Suite B

Langhorne, PA 19047

E-mail: alevy@nexgel.com

 

If to the Secured Party:

 

Auctus Fund, LLC

545 Boylston Street, 2nd Floor

Boston, MA 02116

 

or to such other address or telecopy number as the
party to whom notice is to be given may have furnished to the other party in writing in accordance herewith.

 

10.                Amendments
and Waivers. No modification, amendment or waiver of any provision of, or consent required by, this Agreement, nor any consent
to any departure herefrom, shall be effective unless it is in writing and signed by each of the parties hereto. Such modification,
amendment, waiver or consent shall be effective only in the specific instance and for the purpose for which given.

 

    

     

    

 

11.            
Exclusivity and Waiver of Rights. No failure to exercise and no delay in exercising on the part of any party, any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or
privilege preclude any other right, power or privilege. The rights and remedies herein provided are cumulative and are not exclusive
of any other rights or remedies provided by law.

 

12.            
Invalidity. Any term or provision of this Agreement shall be ineffective to the extent it is declared invalid or unenforceable,
without rendering invalid or enforceable the remaining terms and provisions of this Agreement.

 

13.           
Headings. Headings used in this Agreement are inserted for convenience only and shall not affect the meaning of any term
or provision of this Agreement.

 

14.           
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original instrument,
but all of which collectively shall constitute one and the same agreement.

 

15.           
Assignment. This Agreement and the rights and obligations hereunder shall not be assignable or transferable by the any of
the parties without the prior written consent of the Secured Party, at their sole and absolute discretion.

 

16.            
Survival. Unless otherwise expressly provided herein, all representations warranties, agreements and covenants contained
in this Agreement shall survive the execution hereof and shall remain in full force and effect until the Note is fully repaid and
extinguished in its entirety.

 

17.           
Miscellaneous. This Agreement shall inure to the benefit of each of the parties hereto and all their respective successors
and permitted assigns. Nothing in this Agreement is intended or shall be construed to give to any other person, firm or corporation
any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein contained.

 

18.            
GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE
(WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAWS PROVISIONS).

 

19.            
CONSENT TO JURISDICTION. Any action brought by either party against the other
arising out of or related to this agreement shall be commenced only in the state or federal courts located in the Commonwealth
of Massachusetts, except that all such disputes between the parties shall be subject to alternative dispute resolution through
binding arbitration at the Holder’s sole discretion and election (regardless of which party initiates the legal proceedings). 

 

20.             Attorneys'
Fees. In the event that any suit or action is instituted to enforce any provision in this Agreement, the prevailing party
in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of
such prevailing party under or with respect to this Agreement, including without limitation, such reasonable fees and
expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals.

 

    

     

    

 

21.            
Entire Agreement. This Agreement contains the entire agreement among the parties with respect to the transactions contemplated
by this Agreement and supersedes all prior agreements or understandings among the parties with respect to the subject matter hereof.

 

[SIGNATURE PAGE(S) FOLLOW]

 

    

     

    

 

IN WITNESS WHEREOF, this
Agreement has been executed as of the date first set written above.

 

	NEXGEL,
    INC.	 
	 	 
	By:	         	 
	Name: Adam Levy	 
	Title: Chief Executive Officer	 
	 	 
	AUCTUS FUND, LLC	 
	  	 
	By:	 	 
	Name: Lou Posner	 
	Title: Managing Director	 

 

    

     

    

 

EXHIBIT
A

COLLATERAL

 

Borrower
hereby grants, pledges, and assigns for the benefit of the Secured Party, and there is hereby created in favor of the Secured Party,
a security interest in and to all of Borrower's right, title, and interest in, to, and under all assets and all personal property
of Borrower and the Borrower’s subsidiaries, whether now or hereafter existing, or now owned or hereafter acquired, including
but not limited to the following (collectively, "Collateral"):

 

1.               
All accounts, chattel paper, contracts, contract rights, accounts receivable, tax refunds, note receivable, documents, other choses
in action and general intangibles, including, but not limited to, proceeds of inventory and returned goods and proceeds from the
sale of goods and services, and all rights, liens, securities, guaranties, remedies and privileges related thereto, including the
right of stoppage in transit and rights and property of any kind forming the subject matter of any of the foregoing ("Accounts
Receivable");

 

2.                
All time, savings, demand, certificate of deposit or other accounts in the name of Borrower and/or any subsidiary of the Borrower
or in which Borrower and/or any subsidiary of the Borrower has any right, title or interest, including but not limited to all sums
now or at any time hereafter on deposit, and any renewals, extensions or replacements of and all other property which may from
time to time be acquired directly or indirectly using the proceeds of any of the foregoing;

 

3.                
All inventory and equipment of every type or description wherever located, including, but not limited to all raw materials, parts,
containers, work in process, finished goods, goods in transit, wares, merchandise furniture, fixtures, hardware, machinery, tools,
parts, supplies, automobiles, trucks, other intangible property of whatever kind and wherever located associated with the Borrower's
and/or any subsidiary of the Borrower’s business, tools and goods returned for credit, repossessed, reclaimed or otherwise
reacquired by Borrower and/or any subsidiary of the Borrower;

 

4.                
All documents of title and other property from time to time received, receivable or otherwise distributed in respect of, exchange
or substitution for or addition to any of the foregoing including, but not limited to, any documents of title;

 

5.
               All know-how, information, permits, patents, copyrights, goodwill, trademarks, trade names, licenses and approvals held by Borrower
and/or any subsidiary of the Borrower, including all other intangible property of Borrower and/or any subsidiary of the Borrower;

 

6.                All
assets of any type or description that may at any time be assigned or delivered to or come into possession of Borrower and/or
any subsidiary of the Borrower for any purpose for the account of Borrower and/or any subsidiary of the Borrower or as to which
Borrower and/or any subsidiary of the Borrower may have any right, title, interest or power, and property in the possession or
custody of or in transit to anyone for the account of Borrower and/or any subsidiary of the Borrower, as well as all proceeds
and products thereof and accessions and annexations thereto; and

 

7.                All
proceeds (including but not limited to insurance proceeds) and products of and accessions and annexations to any of the foregoing.Exhibit 10.3

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this "Agreement"), dated as of March 11, 2021, by and between NEXGEL, INC., a Delaware
corporation (the "Company"), and AUCTUS FUND, LLC, a
Delaware limited liability company (together with it permitted assigns, the “Investor”). Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in the securities purchase agreement
by and between the parties hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from
time to time, the "Purchase Agreement").

 

WHEREAS:

 

The Company has agreed,
upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Investor that certain senior secured promissory
note in the principal amount of $1,500,000.00 (the “Note”) and Warrants (as defined in the Purchase Agreement)
(the “Warrants”) dated March 11, 2021, and to induce the Investor to enter into the Purchase Agreement, the
Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute (collectively, the "Securities Act"), and applicable state securities
laws.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1.       DEFINITIONS.

 

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

 

a.       "Investor"
shall have the meaning set forth above.

 

b.       "Person"
means any individual or entity including but not limited to any corporation, a limited liability company, an association, a partnership,
an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

c.       "Register,"
 "registered," and "registration" refer to a registration effected by preparing and filing one
or more registration statements of the Company in compliance with the Securities Act and/or pursuant to Rule 415 under the Securities
Act or any successor rule providing for offering securities on a continuous basis ("Rule 415"), and the declaration
or ordering of effectiveness of such registration statement(s) by the United States Securities and Exchange Commission (the "SEC").

d.       "Registrable
Securities" means all of the shares of Common Stock into which the Note is convertible into and the Warrants are exercisable
into, which have been, or which may, from time to time be issued (without regard to any limitation or retriction therein), all
of the shares of common stock which have been issued or will be issued to the Investor under the Purchase Agreement (without regard
to any limitation or restriction therein), and all shares of Common Stock issued to the Investor as a result of any stock split,
stock dividend, recapitalization, exchange or similar event or otherwise.

 

e.       "Registration
Statement" means one or more registration statements of the Company covering only the sale of the Registrable Securities.

 

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2.       REGISTRATION.

 

a.       Mandatory
Registration. The Company shall, within thirty (30) calendar days from the date of this Agreement, file with the SEC an initial
Registration Statement covering the maximum number of Registrable Securities as shall be permitted to be included thereon in accordance
with applicable SEC rules, regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor,
including but not limited to under Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices),
subject to the aggregate number of authorized shares of the Company’s Common Stock then available for issuance in its Certificate
of Incorporation. The initial Registration Statement shall register only the Registrable Securities. The
Investor and its counsel shall have a reasonable opportunity to review and comment upon such Registration Statement and any amendment
or supplement to such Registration Statement and any related prospectus prior to its filing with the SEC, and the Company shall
give due consideration to all reasonable comments. The Investor shall furnish all information reasonably requested by the Company
for inclusion therein. The Company shall have the Registration Statement and any amendment declared effective by the SEC at the
earliest possible date (in any event within one hundred and fifty (150) calendar days from the date hereof). The Company shall
keep the Registration Statement effective, including but not limited to pursuant to Rule 415 promulgated under the Securities
Act and available for the resale by the Investor of all of the Registrable Securities covered thereby at all times until the date
on which the Investor shall have sold all the Registrable Securities covered thereby (the "Registration Period").
The Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not misleading.

 

b.       Rule
424 Prospectus. The Company shall, as required by applicable securities regulations, from time to time file with the SEC,
pursuant to Rule 424 promulgated under the Securities Act, the prospectus and prospectus supplements, if any, to be used in connection
with sales of the Registrable Securities under the Registration Statement. The Company shall file such initial prospectus covering
the Investor’s sale of the Registrable Securities on the same date that the Registration Statement is declared effective
by the SEC. The Investor and its counsel shall have a reasonable opportunity to review and comment upon such prospectus prior
to its filing with the SEC, and the Company shall give due consideration to all such comments. The Investor shall use its reasonable
best efforts to comment upon such prospectus within one (1) Business Day from the date the Investor receives the final pre-filing
version of such prospectus.

 

c.       Sufficient
Number of Shares Registered. In the event the number of shares available under the Registration Statement is insufficient
to cover all of the Registrable Securities, the Company shall amend the Registration Statement or file a new Registration Statement
(a “New Registration Statement”), so as to cover all of such Registrable Securities (subject to the limitations
set forth in Section 2(a)) as soon as practicable, but in any event not later than ten (10) Business Days after the necessity
therefor arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415 under the Securities Act (with the
understanding that this process shall be repeated until the Note is extinguished in its entirety and the Warrants are exercised
in full). The Company shall use it reasonable best efforts to cause such amendment and/or New Registration Statement to become
effective as soon as practicable following the filing thereof. In the event that any of the Registrable Securities are not included
in the Registration Statement, or have not been included in any New Registration Statement and the Company files any other registration
statement under the Securities Act (other than on Form S-4, Form S-8, or with respect to other employee related plans or rights
offerings) (“Other Registration Statement”) then the Company shall include such remaining Registrable Securities
in such Other Registration Statement. The Company agrees that it shall not file any such Other Registration Statement unless all
of the Registrable Securities have been included in such Other Registration Statement or otherwise have been registered for resale
as described above.

 

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d.       Offering.
If the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant to a Registration
Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such Registration Statement
to become effective and be used for resales by the Investor under Rule 415 at then prevailing market prices (and not fixed prices),
or if after the filing of the initial Registration Statement with the SEC pursuant to Section 2(a), the Company is otherwise required
by the Staff or the SEC to reduce the number of Registrable Securities included in such initial Registration Statement, then the
Company shall reduce the number of Registrable Securities to be included in such initial Registration Statement (with the prior
consent, which shall not be unreasonably withheld, of the Investor and its legal counsel as to the specific Registrable Securities
to be removed therefrom) until such time as the Staff and the SEC shall so permit such Registration Statement to become effective
and be used as aforesaid. In the event of any reduction in Registrable Securities pursuant to this paragraph, the Company shall
file one or more New Registration Statements in accordance with Section 2(c) until such time as all Registrable Securities have
been included in Registration Statements that have been declared effective and the prospectus contained therein is available for
use by the Investor. Notwithstanding any provision herein or in the Purchase Agreement to the contrary, the Company’s obligations
to register Registrable Securities (and any related conditions to the Investor’s obligations) shall be qualified as necessary
to comport with any requirement of the SEC or the Staff as addressed in this Section 2(d).

 

3.       RELATED
OBLIGATIONS.

 

With respect to the
Registration Statement and whenever any Registrable Securities are to be registered pursuant to Section 2 including on any New
Registration Statement, the Company shall use its reasonable best efforts to effect the registration of the Registrable Securities
in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

a.       The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any registration
statement and the prospectus used in connection with such registration statement, which prospectus is to be filed pursuant to
Rule 424 promulgated under the Securities Act, as may be necessary to keep the Registration Statement or any New Registration
Statement effective at all times during the Registration Period, and, during such period, comply with the provisions of the Securities
Act with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any
New Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with
the intended methods of disposition by the seller or sellers thereof as set forth in such registration statement.

 

b.       The
Company shall permit the Investor to review and comment upon the Registration Statement or any New Registration Statement and
all amendments and supplements thereto at least two (2) Business Days prior to their filing with the SEC, and not file any document
in a form to which Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon the Registration
Statement or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date
the Investor receives the final version thereof. The Company shall furnish to the Investor, without charge any correspondence
from the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration
Statement.

 

c.       Upon
request of the Investor, the Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with the
SEC, at least one copy of such registration statement and any amendment(s) thereto, including financial statements and schedules,
all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any registration statement, a
copy of the prospectus included in such registration statement and all amendments and supplements thereto (or such other number
of copies as the Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final
prospectus, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by the Investor. For the avoidance of doubt, any filing available to the Investor via the SEC’s live EDGAR
system shall be deemed “furnished to the Investor” hereunder.

 

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d.       The
Company shall use reasonable best efforts to (i) register and qualify the Registrable Securities covered by a registration statement
under such other securities or "blue sky" laws of such jurisdictions in the United States as the Investor reasonably
requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements
to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period,
(iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during
the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section
3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in
any such jurisdiction. The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company
of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for
sale under the securities or "blue sky" laws of any jurisdiction in the United States or its receipt of actual notice
of the initiation or threatening of any proceeding for such purpose.

 

e.       As
promptly as practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the happening
of any event or existence of such facts as a result of which the prospectus included in any registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly prepare
a supplement or amendment to such registration statement to correct such untrue statement or omission, and deliver a copy of such
supplement or amendment to the Investor (or such other number of copies as the Investor may reasonably request). The Company shall
also promptly notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has
been filed, and when a registration statement or any post-effective amendment has become effective (notification of such effectiveness
shall be delivered to the Investor by email or facsimile on the same day of such effectiveness and by overnight mail), (ii) of
any request by the SEC for amendments or supplements to any registration statement or related prospectus or related information,
and (iii) of the Company's reasonable determination that a post-effective amendment to a registration statement would be appropriate.

 

f.       The
Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of
any registration statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

g.       The
Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same
class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities on the Principal
Market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

    4 

     

    

 

h.       The
Company shall cooperate with the Investor to facilitate the timely preparation and delivery of the Registrable Securities (not
bearing any restrictive legend) either by DWAC, DRS, or in certificated form if DWAC or DRS is unavailable, to be offered pursuant
to any registration statement and enable such Registrable Securities to be in such denominations or amounts as the Investor may
reasonably request and registered in such names as the Investor may request.

 

i.       The
Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

 

j.       If
reasonably requested by the Investor, the Company shall (i) immediately incorporate in a prospectus supplement or post-effective
amendment such information as the Investor believes should be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase
price being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of
such prospectus supplement or post-effective amendment as soon as practicable upon notification of the matters to be incorporated
in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any registration statement.

 

k.       The
Company shall use its reasonable best efforts to cause the Registrable Securities covered by any registration statement to be
registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

l.       Within
one (1) Business Day after any registration statement which includes the Registrable Securities is ordered effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investor) confirmation that such registration statement has been declared effective by the SEC
in the form attached hereto as Exhibit A. Thereafter, if requested by the Investor at any time, the Company shall require
its counsel to deliver to the Investor a written confirmation whether or not the effectiveness of such registration statement
has lapsed at any time for any reason (including, without limitation, the issuance of a stop order) and whether or not the registration
statement is current and available to the Investor for sale of all of the Registrable Securities.

 

m.       The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to any registration statement.

 

4.       OBLIGATIONS
OF THE INVESTOR.

 

a.       The
Company shall notify the Investor in writing of the information the Company reasonably requires from the Investor in connection
with any registration statement hereunder. The Investor shall furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required
to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration
as the Company may reasonably request.

 

b.       The
Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing
of any registration statement hereunder.

 

    5 

     

    

 

c.       The
Investor agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind
described in Section 3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of Registrable
Securities pursuant to any registration statement(s) covering such Registrable Securities until the Investor's receipt of the
copies of the supplemented or amended prospectus contemplated by Section 3(f) or the first sentence of 3(e). Notwithstanding anything
to the contrary, the Company shall cause its transfer agent to promptly deliver shares of Common Stock without any restrictive
legend in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect
to which an Investor has entered into a contract for sale prior to the Investor's receipt of a notice from the Company of the
happening of any event of the kind described in Section 3(f) or the first sentence of Section 3(e) and for which the Investor
has not yet settled.

 

5.       EXPENSES
OF REGISTRATION.

 

All reasonable expenses,
other than sales or brokerage commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections
2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees
and disbursements of counsel for the Company, shall be paid by the Company.

 

6.       INDEMNIFICATION.

 

a.       To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each
Person, if any, who controls the Investor, the members, the directors, officers, partners, employees, agents, representatives
of the Investor and each Person, if any, who controls the Investor within the meaning of the Securities Act or the Securities
Exchange Act of 1934, as amended (the "Exchange Act") (each, an "Indemnified Person"), against
any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys' fees, amounts paid in settlement
or expenses, joint or several, (collectively, "Claims") incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto ("Indemnified Damages"), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in the Registration Statement, any New Registration Statement
or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are offered ("Blue Sky Filing"),
or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus
(as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances
under which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Company of the Securities
Act, the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities pursuant to the Registration Statement or any New Registration Statement
or (iv) any material violation by the Company of this Agreement (the matters in the foregoing clauses (i) through (iv) being,
collectively, "Violations"). The Company shall reimburse each Indemnified Person promptly as such expenses are
incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement
contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation
which occurs in reliance upon and in conformity with information about the Investor furnished in writing to the Company by such
Indemnified Person expressly for use in connection with the preparation of the Registration Statement, any New Registration Statement
or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company pursuant to Section
3(c) or Section 3(e); (ii) with respect to any superseded prospectus, shall not inure to the benefit of any such person from whom
the person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any
person controlling such person) if the untrue statement or omission of material fact contained in the superseded prospectus was
corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available by
the Company pursuant to Section 3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing not to use the
incorrect prospectus prior to the use giving rise to a violation and such Indemnified Person, notwithstanding such advice, used
it; (iii) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered
the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant to Section
3(c) or Section 3(e); and (iv) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer
of the Registrable Securities by the Investor pursuant to Section 9.

 

    6 

     

    

 

b.       Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall,
if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense
thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel
with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented
by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party
in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim.
The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of
the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any
action, claim or proceeding effectuated without its written consent, provided, however, that the indemnifying party shall not
unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified Party
or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a
release from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action.

 

    7 

     

    

 

c.       The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

d.       The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

7.       CONTRIBUTION.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with
respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided,
however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount
of proceeds received by such seller from the sale of such Registrable Securities.

 

8.       REPORTS
AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With a view to making
available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation
of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration ("Rule
144"), the Company agrees, at the Company’s sole expense, to:

 

a.       make
and keep public information available, as those terms are understood and defined in Rule 144;

 

b.       file
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required
for the applicable provisions of Rule 144;

 

c.       furnish
to the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange Act, (ii)
a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company,
and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule
144 without registration; and

 

d.       take
such additional action as is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule
144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to
the Company’s Transfer Agent as may be requested from time to time by the Investor and otherwise fully cooperate with Investor
and Investor’s broker to effect such sale of securities pursuant to Rule 144.

 

    8 

     

    

 

The Company agrees that
damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Investor shall, whether
or not it is pursuing any remedies at law, be entitled to equitable relief in the form of a preliminary or permanent injunctions,
without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

 

		9.	ASSIGNMENT OF REGISTRATION RIGHTS.

 

The Company shall not
assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor.

 

		10.	AMENDMENT OF REGISTRATION RIGHTS.

 

No provision of this
Agreement may be amended or waived by the parties from and after the date that is one Business Day immediately preceding the initial
filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, no provision of this Agreement
may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written instrument
signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

 

	 	11.	MISCELLANEOUS.

 

a.       A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered
owner of such Registrable Securities.

 

b.       Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party);
or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses for such communications shall be:

 

If to the Company, to:

 

NEXGEL, INC.

2150 Cabot Blvd West, Suite
B

Langhorne, PA 19047

Attention: Adam Levy

e-mail: alevy@nexgel.com

 

If to the Investor:

 

AUCTUS FUND, LLC

545 Boylston Street, 2nd Floor

Boston, MA 02116

 

    9 

     

    

 

or at such other address and/or email
address and/or to the attention of such other person as the recipient party has specified by written notice given to each other
party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient
of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's email account
containing the time, date, recipient email address, as applicable, and an image of the first page of such transmission or (C)
provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

c.       The
corporate laws of the State of Delaware shall govern all issues concerning this Agreement. All other questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of
Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or
any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state courts located in the Commonwealth of Massachusetts
and federal courts located in the Commonwealth of Massachusetts, 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 proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. If any provision of this Agreement shall be invalid
or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other
jurisdiction.

 

d.       This
Agreement and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement and the Purchase Agreement supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

 

e.       Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties hereto.

 

f.       The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

g.       This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile
transmission or by e-mail in a “.pdf” format data file of a copy of this Agreement bearing the signature of the party
so delivering this Agreement.

 

h.       Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

    10 

     

    

 

i.       The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no
rules of strict construction will be applied against any party.

 

j.       This
Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns, and is not
for the benefit of, nor may any provision hereof be enforced by, any other Person. 

 

* * * * * *

 

    11 

     

    

 

       IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of day and year first above written.

 

THE COMPANY:

 

NEXGEL, INC. 

 

	By:  	 	 
	 	Name: ADAM LEVY	 
	 	Title: CHIEF EXECUTIVE OFFICER	 

 

INVESTOR:

 

AUCTUS FUND, LLC 

 

	By:  	 	 
	 	Name: LOU POSNER	 
	 	Title: MANAGING DIRECTOR	 

 

[Signature Page to registration rights
agreement]

 

    12 

     

    

 

EXHIBIT A

 

TO REGISTRATION
RIGHTS AGREEMENT

 

FORM OF NOTICE
OF EFFECTIVENESS

OF REGISTRATION
STATEMENT

 

		,2021	 
	 	 	 
	 	 
	 	 
	 	 
	 	 

 

Re: Effectiveness of Registration Statement

 

Ladies and Gentlemen:

 

We are counsel to
NEXGEL, INC., a Delaware corporation (the “Company”), and have represented the Company in connection with that
certain securities purchase agreement, dated as of March 11, 2021 (the “Purchase Agreement”), entered into
by and between the Company and Auctus Fund, LLC, a Delaware limited liability company (the “Investor”) pursuant
to which the Company has agreed to issue to the Investor shares of common stock of the Company, par value $0.001 per share, consisting
of the Conversion Shares (as defined in the Purchase Agreement) (the “Conversion Shares”) and Warrant Shares
(as defined in the Purchase Agreement) (the “Warrant Shares”) in accordance with the terms of the Purchase
Agreement, Note (as defined in the Purchase Agreement) (the “Note”), and Warrants (as defined in the Purchase
Agreement) (the “Warrants”). In connection with the transactions contemplated by the Purchase Agreement, the
Company has registered with the U.S. Securities & Exchange Commission the following shares of Common Stock:

 

		(1)	                    	Conversion Shares issued to the
                                         Investor in accordance with the Note; and

 

		(2)	                    	Warrant Shares issued and/or to
                                         be issued to the Investor upon exercise of the Warrants in accordance with the Warrants.

 

Pursuant to the Purchase
Agreement, the Company also has entered into a registration rights agreement, of even date with the Purchase Agreement with the
Investor (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to
register the Conversion Shares and Warrant Shares under the Securities Act of 1933, as amended (the “Securities Act”).
In connection with the Company's obligations under the Purchase Agreement and the Registration Rights Agreement, on [       ],
2021, the Company filed a Registration Statement (File No. 333-[             ])
(the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating
to the resale of the Conversion Shares and Warrant Shares.

 

In connection with
the foregoing, we advise you that a member of the SEC's staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the Securities Act at [       ] [A.M./P.M.]
on [                ], 2021 and we have
no knowledge, after telephonic inquiry of a member of the SEC's staff, that any stop order suspending its effectiveness has been
issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Conversion Shares and Warrant
Shares are available for resale under the Securities Act pursuant to the Registration Statement and may be issued without any
restrictive legend.

 

	 	Very truly yours,
	 	[Company Counsel]
	 	 
	 	By:	      
	 	 
	cc:Auctus Fund, LLC

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