Document:

Exhibit 10.1

 

EXECUTION
COPY

 

SECURITIES
PURCHASE AND EXCHANGE AGREEMENT

 

This
Securities Purchase and Exchange Agreement (this “Agreement”) is dated as of January 10, 2020, by and among
Interpace Biosciences, Inc., a Delaware corporation (the “Company”), 1315 Capital II, L.P., a Delaware limited
partnership (including its successors and assigns, “1315 Capital”) and Ampersand 2018 Limited Partnership,
a Delaware limited partnership (including its successors and assigns, “Ampersand” and, together with 1315 Capital,
the “Purchasers” and each a “Purchaser”).

 

RECITALS

 

A.
The Company and the Purchasers are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506
of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the
“Commission”).

 

B.
The Company has authorized a new series of convertible preferred stock of the Company designated as Series B Convertible Preferred
Stock, par value $0.01 per share (the “Series B Shares”), the terms of which are set forth in the certificate
of designations, preferences and rights for such Series B Shares, substantially in the form attached hereto as Exhibit A
(the “Certificate of Designation”).

 

C.
Each Purchaser wishes to purchase, and the Company wishes to sell, upon the terms and subject to the conditions stated in this
Agreement, that number of Series B Shares as set forth next to such Purchaser’s name on Schedule I (the “New
Investment Shares”).

 

D.
Ampersand desires to exchange (the “Exchange”) all of its 270 shares of the Company’s Series A Convertible
Preferred Stock, par value $0.01 per share (the “Series A Shares”), representing all issued and outstanding
Series A Shares of the Company, for that number of Series B Shares as set forth next to Ampersand’s name on Schedule
II (the “Exchange Shares”). The Exchange is intended to be treated as a recapitalization under Section
368 of the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations thereunder (the
“Code”).

 

E.
The Series B Shares shall be convertible into shares of the Company’s common stock, par value $0.01 per share (the “Common
Stock”), in accordance with the terms of the Certificate of Designation, at a conversion price of $0.60 per share of
Common Stock, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar
recapitalization affecting such shares (the shares of Common Stock issued or issuable upon conversion of any Preferred Shares,
being the “Conversion Shares”). The Preferred Shares and the Conversion Shares are referred to herein as the
“Securities.”

 

F.
At the Closing, the parties hereto shall execute and deliver an Amended and Restated Investor Rights Agreement, substantially
in the form attached hereto as Exhibit B (with such changes as the parties may mutually agree, the “Investor Rights
Agreement”), pursuant to which, among other things, the Company will agree to provide certain registration rights with
respect to the Conversion Shares under the Securities Act and the rules and regulations promulgated thereunder and applicable
state securities laws and to provide the Purchasers with certain preemptive and board representation rights among other rights.

 

    	 		 

    	 

    

 

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

 

Article
I

DEFINITIONS

 

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

 

“1315
Capital” has the meaning set forth in the Preamble.

 

“2018
Form 10-K” means the Company’s Form 10-K for the fiscal year ended December 31, 2018 as filed with the Commission
on March 21, 2019.

 

“2020
Annual Meeting” means the 2020 annual meeting of the Company’s stockholders.

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, Controls,
is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the
Securities Act; provided, however, (i) the Company and its Subsidiaries shall not be deemed to be Affiliates of the Purchasers
or their Affiliates, and (ii) with respect to a Purchaser, any investment fund or managed account that is managed on a discretionary
basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of the Purchaser.

 

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

 

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

 

“Applicable
Laws” has the meaning set forth in Section 3.1(ww).

 

“Authorizations”
has the meaning set forth in Section 3.1(ww).

 

“Balance
Sheet Date” has the meaning set forth in Section 3.1(b).

 

Any
Person shall be deemed to “beneficially own”, to have “beneficial ownership” of, or to be
“beneficially owning” any securities (which securities shall also be deemed “beneficially owned”
by such Person) that such Person is deemed to “beneficially own” within the meaning of Rules 13d-3 and 13d-5 under
the Exchange Act; provided that any Person shall be deemed to beneficially own any securities that such Person has the
right to acquire, whether or not such right is exercisable immediately (including assuming conversion of all Preferred Shares,
if any, owned by such Person to Common Stock).

 

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

 

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

 

“Capitalization
Date” has the meaning set forth in Section 3.1(i).

 

“Certificate
of Designation” has the meaning set forth in the Recitals.

 

“Closing”
means the closing of the purchase and sale of the Preferred Shares listed in Schedule I, attached hereto, pursuant to this
Agreement.

 

“Closing
Date” means the date on which when all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all of the conditions set forth in Sections 2.1, 2.2, 5.1 and 5.2 hereof are
satisfied or waived, as the case may be, or such other date as the parties may agree.

 

    	 	2	 

    	 

    

 

“Closing
Subscription Amount” means, with respect to each Purchaser, the aggregate amount to be paid for the New Investment Shares
purchased hereunder at the Closing as indicated on Schedule I attached hereto under the heading “Closing Subscription
Amount” in United States dollars and in immediately available funds.

 

“Code”
has the meaning set forth in the Recitals.

 

“Commission”
has the meaning set forth in the Recitals.

 

“Common
Stock” has the meaning set forth in the Recitals.

 

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

 

“Company
Counsel” means Pepper Hamilton LLP, with offices located at 620 Eighth Avenue, 37th Floor, New York, NY 10018-1405.

 

“Company
Organizational Documents” means the Certificate of Incorporation, as amended, of the Company and the Amended and Restated
Bylaws, as amended, of the Company, in each case, as in effect on the date of this Agreement.

 

“Company
Preferred Stock” has the meaning set forth in Section 3.1(i).

 

“Company
Securities” has the meaning set forth in Section 3.1(j).

 

“Company
Stock Plans” has the meaning set forth in Section 3.1(k).

 

“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means
the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.

 

“Conversion
Shares” has the meaning set forth in the Recitals, and also includes any securities into which the Conversion Shares
may hereafter be reclassified or changed.

 

“Delaware
Courts” means the state and federal courts sitting in the City of Wilmington in the State of Delaware.

 

“DTC”
has the meaning set forth in Section 4.1(b).

 

“Employee
Benefit Laws” has the meaning set forth in Section 3.1(bb).

 

“Environmental
Laws” has the meaning set forth in Section 3.1(f).

 

“Equity
Interests” means (i) any capital stock, share, partnership or membership interest, unit of participation or other similar
interest (however designated) in any Person or any securities or obligations convertible into or exchangeable for any of the foregoing
and (ii) any option, warrant, purchase right, conversion right, exchange right or other contractual obligation which would entitle
any Person to share in the equity, profit, earnings, losses or gains of such Person (including stock appreciation, phantom stock,
profit participation or other similar rights).

 

“ERISA”
has the meaning set forth in Section 3.1(bb).

 

    	 	3	 

    	 

    

 

“Exchange”
has the meaning set forth in the Recitals.

 

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

 

“Exchange
Shares” has the meaning set forth in the Recitals.

 

“FCPA”
has the meaning set forth in Section 3.1(gg).

 

“FDA”
has the meaning set forth in Section 3.1(pp).

 

“Filed
SEC Reports” has the meaning set forth in Section 3.1(a).

 

“Governmental
Approval” has the meaning set forth in Section 4.7(b).

 

“Governmental
Entity” means any United States or non-United States (i) federal, national, regional, state, provincial, local, municipal
or other government, (ii) governmental or quasi-governmental entity of any nature (including any governmental agency, branch,
department, official, or entity, any self-regulatory authority, public utility and any supra-national organization, state, county,
city or other political subdivision and any court or other tribunal) or (iii) body exercising or entitled to exercise any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or power of any nature, including any public arbitral
tribunal, arbitrator or mediator.

 

“Government
Program” means any “federal health care program” as defined in 42 U.S.C. § 1320a-7b(f), including Medicare,
state Medicaid programs, state CHIP programs, TRICARE and similar or successor programs with or for the benefit of any Governmental
Entity.

 

“Grant
Date” has the meaning set forth in Section 3.1(k).

 

“Hazardous
Materials” has the meaning set forth in Section 3.1(f).

 

“Health
Care Laws” has the meaning set forth in Section 3.1(pp).

 

“HIPAA”
has the meaning set forth in Section 3.1(pp).

 

“Intellectual
Property” has the meaning set forth in Section 3.1(w).

 

“Investment
Company Act” has the meaning set forth in Section 3.1(p).

 

“Investor
Rights Agreement” has the meaning set forth in the Recitals.

 

“Legal
Proceeding” means any judicial, administrative or arbitral actions, suits, claims, investigations or proceedings (public
or private), whether for condemnation or otherwise, by or before a Governmental Entity or arbitrator.

 

“Material
Adverse Effect” has the meaning set forth in Section 3.1(d).

 

“Material
Contract” means any contract or other agreement of the Company that has been filed or was required to have been filed
as an exhibit to the SEC Reports pursuant to Item 601(b)(1), Item 601(b)(2), Item 601(b)(3), Item 601(b)(4) or Item 601(b)(10)
of Regulation S-K.

 

“Money
Laundering Laws” has the meaning set forth in Section 3.1(ff).

 

    	 	4	 

    	 

    

 

“New
Investment Shares” has the meaning set forth in the Recitals.

 

“OFAC”
has the meaning set forth in Section 3.1(ee).

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, Governmental Entity or any other form of entity not specifically
listed herein.

 

“Preferred
Shares” means the Series B Shares, and also includes any securities into which the Series B Shares may hereafter be
reclassified or changed.

 

“Principal
Trading Market” means the Trading Market on which the Common Stock is primarily listed on and quoted for trading, which,
as of the date of this Agreement and the Closing Date, shall be The Nasdaq Capital Market.

 

“Private
Programs” means any private non-governmental program, including any private insurance program, in which the Company
participates or has participated or from which the Company receives or has received payments or reimbursements.

 

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

 

“Product”
has the meaning set forth in Section 3.1(pp).

 

“Purchaser”
or “Purchasers” has the meaning set forth in the Preamble.

 

“Purchaser
Covered Person” has the meaning set forth in Section 3.2(n)(i).

 

“Regulation
D” has the meaning set forth in the Recitals.

 

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

 

“SEC
Reports” has the meaning set forth in Section 3.1(a).

 

“Secretary’s
Certificate” has the meaning set forth in Section 2.2(a)(iv).

 

“Securities”
has the meaning set forth in the Recitals.

 

“Securities
Act” has the meaning set forth in the Recitals.

 

“Series
A Shares” has the meaning set forth in the Recitals.

 

“Series
B Shares” has the meaning set forth in the Recitals.

 

“Stock
Options” has the meaning set forth in Section 3.1(k).

 

“Subsidiaries”
has the meaning set forth in Section 3.1(nn).

 

“Trading
Market” means whichever of the New York Stock Exchange, the NYSE American, the NASDAQ Global Select Market, the NASDAQ
Global Market, the NASDAQ Capital Market on which the Common Stock is listed or quoted for trading on the date in question.

 

    	 	5	 

    	 

    

 

“Transaction
Documents” means this Agreement, the exhibits attached hereto, the Investor Rights Agreement and any other documents
or agreements for the Closing explicitly contemplated hereunder and thereunder.

 

“Transaction
Litigation” has the meaning set forth in Section 4.9.

 

“Transfer
Agent” means American Stock Transfer and Trust Company, LLC, the current transfer agent of the Company, with a mailing
address of 6201 15th Avenue, Brooklyn, New York 11219, and a telephone number of (718) 921-8200, or any successor transfer
agent for the Company.

 

“U.S.
GAAP” means U.S. generally accepted accounting principles, as applied by the Company.

 

Article
II

PURCHASE AND SALE; EXCHANGE

 

2.1
Closing.

 

(a)
Issuance of New Investment Shares. Subject to the terms and conditions set forth in this Agreement, at the Closing, the
Company shall issue and sell to each Purchaser, and each Purchaser shall purchase from the Company, such number of New Investment
Shares as set forth next to each Purchaser’s name on Schedule I.

 

(b)
Exchange and Issuance of Exchange Shares.

 

(i)
Subject to the terms and conditions set forth in the Agreement, at the Closing, the Company shall issue to Ampersand such number
of Exchange Shares as set forth next to Ampersand’s name on Schedule II, in exchange for the tender for cancellation
of an aggregate of 270 shares of Series A Shares held by Ampersand as set forth on Schedule II hereto.

 

(ii)
Except as otherwise required by applicable laws, the Company and Ampersand hereby agree to treat, for U.S. federal, state and
local income tax purposes, the Exchange as a recapitalization under Section 368 of the Code.

 

(c)
Closing. The Closing of the purchase and sale of the New Investment Shares and the exchange and issuance of the Exchange
Shares shall take place at the offices of Pepper Hamilton LLP, with offices located at 620 Eighth Avenue, 37th Floor,
New York, NY 10018-1405, on the Closing Date or at such other locations or remotely by facsimile transmission or other electronic
means as the parties may mutually agree.

 

(d)
Form of Payment. At the Closing, each Purchaser shall wire the Closing Subscription Amount for the New Investment Shares
set forth next to such Purchaser’s name on Schedule I hereto, in United States dollars and in immediately available
funds, to the Company’s account set forth on Exhibit C hereto or such other account as may be designated in writing
by the Company at least two (2) Business Days in advance. At the Closing, the Company shall issue all New Investment Shares and
Exchange Shares in book-entry form.

 

2.2
Closing Deliveries. (a) At or prior to the Closing, the Company shall issue, deliver or cause to be delivered to the Purchasers
the following:

 

(i)
evidence reasonably satisfactory to each Purchaser that the Transfer Agent has recorded the Series B Shares to be issued to each
Purchaser at the Closing on the stock ledger of the Company in book-entry form;

 

    	 	6	 

    	 

    

 

(ii)
a legal opinion of Company Counsel with respect to the matters described on Schedule A, dated as of the Closing Date, in form
and substance reasonably satisfactory to each Purchaser, executed by such counsel and addressed to each Purchaser;

 

(iii)
the Investor Rights Agreement, duly executed by the Company;

 

(iv)
a certificate of the Secretary of the Company (the “Secretary’s Certificate”), dated as of the Closing
Date, (a) certifying the resolutions adopted by the Board of Directors of the Company approving the transactions contemplated
by this Agreement and the other Transaction Documents and the issuance of the Series B Shares at the Closing, (b) certifying the
current versions of the Company Organizational Documents and the Certificate of Designation and (c) certifying as to the signatures
and authority of the individuals signing the Transaction Documents and related documents on behalf of the Company, in the form
attached hereto as Exhibit E;

 

(v)
a certificate dated as of the Closing Date and signed by its chief executive officer or its chief financial officer in the form
attached hereto as Exhibit F;

 

(vi)
a certificate evidencing the formation and good standing of the Company issued by the Secretary of State (or comparable office)
of Delaware, as of a date within seven (7) Business Days of the Closing Date; and

 

(vii)
a certificate evidencing the Company’s qualification as a foreign corporation and good standing issued by the Secretary
of State (or comparable office) of each jurisdiction in which the Company is qualified to do business as a foreign corporation,
as of a date within seven (7) Business Days of the Closing Date.

 

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

 

(i)
the Closing Subscription Amount, in United States dollars and in immediately available funds, in the amount set forth next to
such Purchaser’s name on Schedule I under the heading “Closing Subscription Amount”, by wire transfer
to the account set forth on Exhibit C attached hereto or such other account as may be notified by the Company to the Purchasers
at least two (2) Business Days prior to the Closing Date;

 

(ii)
the Investor Rights Agreement, duly executed by such Purchaser; and

 

(iii)
a fully completed and duly executed Accredited Investor Questionnaire, satisfactory to the Company, and Stock Certificate Questionnaire
in the forms attached hereto as Exhibits D-1 and D-2, respectively.

 

    	 	7	 

    	 

    

 

Article
III

REPRESENTATIONS AND WARRANTIES

 

3.1
Representations and Warranties of the Company. The Company hereby represents and warrants as of the Closing Date to the
Purchasers as follows:

 

(a)
The Company has filed all reports, schedules, forms, statements and other documents required to be filed by it under the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, since the date that is two years preceding the date hereof (or such
shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”
and the SEC Reports filed with, or furnished to, the Commission and publicly available prior to the date hereof being the “Filed
SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension, except where the failure to file on a timely basis, individually or in
the aggregate, would not have or reasonably be expected to be material to the Company. As of their respective filing dates, or
to the extent corrected by a subsequent restatement prior to the date hereof, as of the date of such restatement, the SEC Reports
complied as to form in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. Each of the Material Contracts to which the
Company or any of its Subsidiaries is a party or to which the property or assets of the Company or any of its Subsidiaries are
subject has been filed as an exhibit to the SEC Reports. As of the date hereof, (i) the Company is eligible to file a Registration
Statement on Form S-3 for the resale of the Conversion Shares, (ii) none of the Company’s Subsidiaries is required
to file any documents with the Commission, (iii) there are no outstanding or unresolved comments in comment letters from
the Commission staff with respect to any of the Filed SEC Reports and (iv) none of the Filed SEC Reports is the subject
of ongoing Commission review, outstanding Commission comment or outstanding Commission investigation. Each of the certifications
and statements relating to the Filed SEC Reports required by: (A) Rule 13a-14 or Rule 15d-14 under the Exchange Act, (B) 18
U.S.C. §1350 (Section 906 of the Sarbanes-Oxley Act) or (C) any other rule or regulation promulgated by the Commission
or applicable to the Filed SEC Reports is accurate and complete, has been timely filed and complies as to form and content with
all applicable laws.

 

(b)
The financial statements of the Company (including all notes and schedules thereto) included or incorporated by reference in the
SEC Reports complied as to form, as of their respective dates of filing with the Commission, in all material respects with the
published rules and regulations of the Commission with respect thereto, have been prepared in all material respects in accordance
with U.S. GAAP (except, in the case of unaudited quarterly statements, as permitted by Form 10-Q of the Commission or other rules
and regulations of the Commission) applied on a consistent basis during the periods involved (except (i) as may be indicated
in such financial statements or in the notes thereto or (ii) as permitted by Regulation S-X or other rules or regulations
of the Commission) and present fairly in all material respects the financial position of the Company and its consolidated subsidiaries
at the dates indicated and the statement of operations, stockholders’ equity and cash flows of the Company and its consolidated
subsidiaries for the periods specified and such financial statements and related schedules and notes thereto, subject in the case
of unaudited statements, to normal, immaterial, year-end audit adjustments. Neither the Company nor any of its Subsidiaries has
any liabilities of any nature (whether accrued, absolute, contingent or otherwise) that would be required under U.S. GAAP, as
in effect on the date hereof, to be reflected on a consolidated balance sheet of the Company (including the notes thereto) except
liabilities (i) reflected or reserved against in the balance sheet (or the notes thereto) of the Company and its Subsidiaries
as of September 30, 2019 (the “Balance Sheet Date”) included in the Filed SEC Reports, (ii) incurred after
the Balance Sheet Date in the ordinary course of business, or (iii) as contemplated by this Agreement.

 

(c)
The Company and each of its Subsidiaries has filed all material United States federal, state, local and non-United States tax
returns that are required to be filed through the date hereof, which returns are true and correct in all material respects, or
has received timely extensions thereof, and has paid all taxes shown on such returns and all assessments received by it to the
extent that the same are material and have become due, except for any such taxes currently being contested in good faith. There
are no tax audits or investigations pending.

 

    	 	8	 

    	 

    

 

(d)
(i) Neither the Company nor any of its Subsidiaries has sustained since the date of the latest audited financial statements included
or incorporated by reference in the Filed SEC Reports any material loss or interference with its business, direct or contingent,
including from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court
or governmental action, order or decree, otherwise than as set forth or contemplated in the Filed SEC Reports; and (ii) since
the respective dates as of which information is given in the Filed SEC Reports, there has not been (A) any change in the capital
stock or long-term debt of the Company or any of its Subsidiaries, taken as a whole (other than changes pursuant to agreements
or employee benefit plans or in connection with the exercise of options, in each case as described or referred to in the Filed
SEC Reports) or (B) any material, individually or in the aggregate, adverse change, or any development involving a prospective
adverse change that is material (i) in or affecting the properties, business, management, prospects, operations, earnings or condition
(financial or otherwise) of the Company and its Subsidiaries, taken as a whole or (ii) to the ability of the Company to consummate
the transactions contemplated by the Transaction Documents on a timely basis or on the ability of the Company to comply with its
obligations under the Transaction Documents (a “Material Adverse Effect”).

 

(e)
The Company and its Subsidiaries have good and marketable title to all real property owned by them, if any, and have good title
to all other material property owned by them, in each case free and clear of all liens, encumbrances and defects except as do
not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property
by the Company and its Subsidiaries; and any real property and buildings held under lease by the Company and its Subsidiaries
are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not materially
interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries.

 

(f)
(i) The Company and its Subsidiaries are in material compliance with all Applicable Laws or any judicial or administrative interpretation
thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or protection of human
health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), including, without limitation, laws and regulations relating to the release or threatened release of chemicals, pollutants,
contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products, asbestos-containing materials or
mold (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”), (ii)
the Company and its Subsidiaries have all permits, authorizations and approvals required under any applicable Environmental Laws
and are each in material compliance with their requirements, (iii) there are no pending or, to
the knowledge of the Company, threatened administrative, regulatory or judicial actions, suits, demands, demand letters,
claims, liens, notices of non-compliance or violation, investigation or Proceedings relating to any Environmental Law against
the Company or any of its Subsidiaries, and (iv) to the knowledge of the Company, there
are no events or circumstances that would reasonably be expected to form the basis of an order for clean-up or remediation, or
an action, suit or Proceeding by any private party or Governmental Entity, against or affecting the Company or any of its Subsidiaries
relating to Hazardous Materials or any Environmental Laws.

 

    	 	9	 

    	 

    

 

(g)
The Company (i) has been duly incorporated and is validly existing as a corporation in good standing under the laws of the State
of Delaware, with corporate power and corporate authority to own its properties and conduct its business as described in all material
respects in the SEC Reports, and (ii) has been duly qualified as a foreign corporation for the transaction of business and is
in good standing under the laws of each other jurisdiction in which it owns or leases properties or conducts any business so as
to require such qualification, except in the case of clause (ii), where the failure to be so qualified or in good standing would
not be material; and each Subsidiary of the Company (x) has been duly incorporated or formed, as the case may be, and is validly
existing as a corporation or limited liability company, as applicable, in good standing under the laws of its jurisdiction of
incorporation or formation, with the company power and authority to own its properties and conduct its business as described in
the SEC Reports, and (y) has been duly qualified as a foreign corporation or limited liability company for the transaction of
business and is in good standing under the laws of each other jurisdiction in which it owns or leases properties or conducts any
business so as to require such qualification, except in the case of clause (y), where the failure to be so qualified or in good
standing would not be material.

 

(h)
The execution and delivery of this Agreement by the Company and performance by the Company of the transactions contemplated by
this Agreement have been duly authorized by all necessary corporate or other applicable action including by the Board of Directors.
Each Transaction Document to which it is a party has been (or will be) duly executed by the Company, and when delivered by the
Company in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Company, enforceable
against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies,
by other equitable principles of general application, or except insofar as indemnification and contribution provisions may be
limited by applicable law. No vote, consent or approval of the stockholders of the Company is required under applicable law, the
Company Organizational Documents or under any contract between the Company and any stockholder of the Company, to authorize or
approve this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby. The Board of Directors
has taken all necessary actions such that the restrictions set forth in Section 203 of the General Corporation Law of the
State of Delaware will not apply to any acquisition by any Purchaser of the Preferred Shares to be issued pursuant to this Agreement
or upon the conversion of the Preferred Shares into Conversion Shares pursuant to the Certificate of Designation.

 

(i)
The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock and 5,000,000 shares of preferred stock,
par value $0.01 per share (“Company Preferred Stock”), of which 47,000 shares of Series B Shares will be authorized
as of the Closing and no other shares of Company Preferred Stock other than the Series A Shares will be authorized as of the Closing.
At the close of business on January 10, 2020 (the “Capitalization Date”), (i) 39,722,603 shares of Common Stock were
issued, (ii) 39,604,797 shares of Common Stock were outstanding, (iii) 2,992,211 shares of Common Stock were reserved and available
for issuance pursuant to the Company Stock Plans, (iv) 4,650,342 shares of Common Stock were subject to outstanding Company Stock
Grants, (v) 1,000,000 shares of Common Stock were reserved and available for issuance pursuant to the Company’s employee
stock purchase plan, (vi) warrants to purchase 14,196,482 shares of Common Stock were outstanding, (vii) 270 Series A Shares were
issued and outstanding, (viii) 34,408,295 shares of Common Stock were available and reserved for issuance upon conversion of Series
A Shares and (ix) no shares of Series B Shares were issued and outstanding.

 

    	 	10	 

    	 

    

 

(j)
Except as described in Section 3.1(i), as of the Capitalization Date, there were (i) no outstanding shares of
capital stock of, or other Equity Interests or voting interests in, the Company, (ii) no outstanding securities of the Company
convertible into or exchangeable for shares of capital stock of, or other Equity Interests or voting interests in, the Company,
(iii) no outstanding options, warrants, rights or other commitments or agreements to acquire from the Company, or that obligate
the Company to issue, any capital stock of, or other Equity Interests or voting interests (or voting debt) in, or any securities
convertible into or exchangeable for shares of capital stock of, or other Equity Interests or voting interests in, the Company
other than obligations under the Company Plans in the ordinary course of business, (iv) no obligations of the Company to
grant, extend or enter into any subscription, warrant, right, convertible or exchangeable security or other similar agreement
or commitment relating to any capital stock of, or other Equity Interests or voting interests in, the Company (the items in clauses
(i), (ii), (iii) and (iv) being referred to collectively as “Company Securities”) and (v) no
other obligations by the Company or any of its Subsidiaries to make any payments based on the price or value of any Company Securities.
Since the Capitalization Date, neither the Company nor any of its Subsidiaries has (A) issued any Company Securities or incurred
any obligation to make any payments based on the price or value of any Company Securities or dividends paid thereon, other than
in connection with the vesting, settlement or exercise of the stock option, service based restricted stock awards and performance-based
restricted stock awards referred to in Section 3.1(i) that were outstanding as of the Capitalization Date or as expressly
contemplated by this Agreement or (B) established a record date for, declared, set aside for payment or paid any dividend
on, or made any other distribution in respect of, any shares of the Company’s capital stock. Except as described in the
SEC Reports, there are no outstanding agreements of any kind which obligate the Company or any of its Subsidiaries to repurchase,
redeem or otherwise acquire any Company Securities (other than pursuant to the cashless exercise of Company Stock Options), or
obligate the Company to grant, extend or enter into any such agreements relating to any Company Securities, including any agreements
granting any preemptive rights, subscription rights, anti-dilutive rights, rights of first refusal or similar rights with respect
to any Company Securities. Except as set forth in the Investor Rights Agreement, none of the Company or any Subsidiary of the
Company is a party to any stockholders’ agreement, voting trust agreement, registration rights agreement or other similar
agreement or understanding relating to any Company Securities or any other agreement relating to the disposition, voting or dividends
with respect to any Company Securities.

 

(k)
All of the issued shares of capital stock of the Company have been duly authorized and validly issued and are fully paid, non-assessable
and free of preemptive rights and were not issued in violation of any rights of first refusal or other similar rights to subscribe
for or purchase securities of the Company; and conform in all material respects to the description of such capital stock contained
in the Filed SEC Reports and all of the issued shares of capital stock of each Subsidiary of the Company have been duly authorized
and validly issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of all
liens, encumbrances, equities or claims and there are no options, warrants or rights to acquire shares of capital stock of any
Subsidiary of the Company. With respect to stock options (the “Stock Options”) granted pursuant to the stock-based
compensation plans of the Company (the “Company Stock Plans”), (i) each Stock Option intended to qualify as
an “incentive stock option” under Section 422 of the Code so qualified as of the applicable Grant Date, (ii) each
grant of a Stock Option was duly authorized no later than the date on which the grant of such Stock Option was by its terms to
be effective (the “Grant Date”) by all necessary corporate action, including, as applicable, approval by the
Board of Directors and any required stockholder approval by the necessary number of votes or written consents, and the award agreement
governing such grant (if any) was duly executed and delivered by each party thereto, (iii) each such grant was made in accordance
with the terms of the Company Stock Plans, (iv) the per share exercise price of each Stock Option was equal to the fair market
value of a share of Common Stock, as determined in good faith by the Board of Directors on the effective Grant Date and (v) each
such grant was properly accounted for in accordance with U.S. GAAP.

 

(l)
The Preferred Shares to be issued by the Company to the Purchasers hereunder have been duly authorized and, when issued and delivered
against payment therefor as provided herein, will be duly and validly issued and fully paid and non-assessable and, assuming the
accuracy of the Purchasers’ representations in Section 3.2 below, issued in compliance with all applicable federal
and state securities laws; the Conversion Shares have been duly authorized and, when issued and delivered in accordance with the
Transaction Documents and the Certificate of Designation upon conversion of the Series B Shares, will be duly and validly issued
and fully paid and non-assessable and, assuming the accuracy of the Purchasers’ representations in Section 3.2 below,
issued in compliance with all applicable federal and state securities laws; and the issuance of the Securities is not and will
not be issued in violation of any purchase option, call option, preemptive right, resale right, subscription right, right of first
refusal or similar right, and will be free and clear of all liens and encumbrances, except restrictions imposed by the Securities
Act and any applicable state securities laws. The Preferred Shares, when issued, and the Conversion Shares, if and when issued,
will have the terms and conditions and entitle the holders thereof to the rights set forth in the Company Organizational Documents,
as amended by the Certificate of Designation. The shares of Common Stock issuable upon conversion of the Preferred Shares have
been duly reserved for issuance. Nothing in this subsection shall be construed to mean that the Preferred Shares, Conversion Shares
and Common Stock are not subject to the restrictions set forth in the Certificate of Designation and the Investor Rights Agreement.

 

    	 	11	 

    	 

    

 

(m)
The execution, delivery and performance by the Company of this Agreement, the Transaction Documents (including the adoption of
the Certificate of Designation), and the consummation of the transactions contemplated hereby and thereby, including the issue
and sale of the Preferred Shares and the compliance by the Company its obligations hereunder and thereunder, do not and will not
(A) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation under, any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument
to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or to which
any of the property or assets of the Company or any of its Subsidiaries is subject, (B) violate any of the provisions of
the Company Organizational Documents, or the organizational documents of any subsidiary, (C) violate any law, rule, regulation,
order, judgment or decree (including federal and state securities laws) of any court or governmental agency or body having jurisdiction
over the Company or any of its Subsidiaries or any of their properties, or (D) require any consent, approval, authorization,
order, registration or qualification of or with any court, governmental agency or body or third party, except for such consents,
approvals, authorizations, orders, registrations or qualifications that have been obtained or made and are in full force and effect,
and with respect to any third party consent, the failure of which to obtain, individually or in the aggregate, would not be material
to the Company and its Subsidiaries, taken as a whole, or adversely impact the ability to consummate the offering contemplated
hereby.

 

(n)
Neither the Company nor any of its Subsidiaries is (A) in violation of the Company Organizational Documents or other organizational
documents or (B) in default in the performance or observance of any obligation, agreement, covenant or condition contained
in any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which it is a party or by
which it or any of its properties may be bound, except in the case of clause (B), to the extent that such default, individually
or in the aggregate, would not be material to the Company and its Subsidiaries, taken as a whole, or adversely impact the ability
to consummate the offering contemplated hereby.

 

(o)
Other than as set forth in the Filed SEC Reports, there are no legal or governmental Proceedings pending to which the Company
or any of its Subsidiaries is a party or of which any property or assets of the Company or any of its Subsidiaries is the subject,
which, if determined adversely to the Company or any of its Subsidiaries, would individually or in the aggregate be material to
the Company or its Subsidiaries; and, no such Proceedings are threatened by governmental authorities or threatened by others.

 

(p)
                                         The Company is not and, after giving effect to the offering and sale of the Securities
                                         and the application of the proceeds thereof, will not be required to be registered as
                                         an “investment company,” as such term is defined in the Investment Company
                                         Act of 1940, as amended (the “Investment Company Act”).

 

    	 	12	 

    	 

    

 

(q)
                                         BDO USA, LLP, who have audited certain financial statements of the Company and its Subsidiaries
                                         is a registered public accounting firm (as defined in Section 2(a)(12) of the Sarbanes-Oxley
                                         Act), is “independent” with respect to the Company within the meaning of
                                         Regulation S-X and the Public Company Accounting Oversight Board (United States) and
                                         is in compliance with subsections (g) through (l) of Section 10A of the
                                         Exchange Act and the rules and regulations promulgated by the Commissions and the Public
                                         Company Accounting Oversight Board thereunder. All non-audit services performed by the
                                         Company’s auditors for the Company that were required to be approved in accordance
                                         with Section 202 of the Sarbanes-Oxley Act were so approved.

 

(r)
                                         The Company maintains a system of internal control over financial reporting (as such
                                         term is defined in Rule 13a-15(f) under the Exchange Act) that complies with the requirements
                                         of the Exchange Act and has been designed by the Company’s principal executive
                                         officer and principal financial officer, or under their supervision, to provide reasonable
                                         assurance regarding the reliability of financial reporting and the preparation of financial
                                         statements for external purposes in accordance with generally accepted accounting principles.
                                         The Company’s internal control over financial reporting is effective and the Company
                                         is not aware of any material weaknesses in its internal control over financial reporting.

 

(s)
                                         The Board of Directors meets the independence requirements of, and has established an
                                         audit committee that meets the independence requirements of, the rules and regulations
                                         of the Commission and the Principal Trading Market.

 

(t)
                                         Since the date of the latest audited financial statements included or incorporated by
                                         reference in the Filed SEC Reports, there has been no change in the internal control
                                         of the Company or its Subsidiaries over financial reporting that has materially affected,
                                         or is reasonably likely to materially affect, the internal control of the Company or
                                         its Subsidiaries over financial reporting.

 

(u)
                                         The Company and its Subsidiaries maintains disclosure controls and procedures (as such
                                         term is defined in Rule 13a-15(e) under the Exchange Act) that comply with the requirements
                                         of the Exchange Act and such disclosure controls and procedures are effective at the
                                         reasonable assurance level.

 

(v)
                                         The Company and each of its Subsidiaries make and keep accurate books and records and
                                         maintain a system of internal accounting controls sufficient to provide reasonable assurance
                                         that: (i) transactions are executed in accordance with management’s general or
                                         specific authorization; (ii) transactions are recorded as necessary to permit preparation
                                         of financial statements in conformity with generally accepted accounting principles as
                                         applied in the United States and to maintain accountability for assets; (iii) access
                                         to assets is permitted only in accordance with management’s general or specific
                                         authorization; (iv) the recorded accountability for assets is compared with existing
                                         assets at reasonable intervals and appropriate action is taken with respect to any differences;
                                         and (v) the interactive data in extensible Business Reporting Language included or incorporated
                                         by reference in the SEC Reports fairly presents the information called for in all material
                                         respects and is prepared in accordance with the Commission’s rules and guidelines
                                         applicable thereto.

 

    	 	13	 

    	 

    

 

(w)
                                         To the Company’s knowledge, the Company and its Subsidiaries own, possess, license
                                         or have other rights to use, or could obtain on commercially reasonable terms, all foreign
                                         and domestic patents, patent applications, trade and service marks, trade and service
                                         mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology,
                                         Internet domain names, know-how and other intellectual property (collectively, the “Intellectual
                                         Property”), necessary for the conduct of their respective businesses as now
                                         conducted and as currently proposed to be conducted. Further, (i) there are no material
                                         rights of third parties to any such Intellectual Property owned by the Company or its
                                         Subsidiaries except for nonexclusive licenses granted to customers in the ordinary course
                                         to third parties; (ii) to the Company’s knowledge, there is no infringement by
                                         third parties of any such Intellectual Property of the Company or its Subsidiaries necessary
                                         for the conduct of their respective businesses as now conducted and as currently proposed
                                         to be conducted; (iii) there is no pending or, to the Company’s knowledge, threatened
                                         action, suit, proceeding or claim by others challenging the Company’s or its Subsidiaries’
                                         rights in or to any such Intellectual Property of the Company or its Subsidiaries necessary
                                         for the conduct of their respective businesses as now conducted and as currently proposed
                                         to be conducted, and the Company is unaware of any facts which could form a reasonable
                                         basis for any such action, suit, proceeding or claim; (iv) there is no pending or, to
                                         the Company’s knowledge, threatened action, suit, proceeding or claim by others
                                         challenging the validity or scope of any Intellectual Property of the Company or its
                                         Subsidiaries necessary for the conduct of their respective businesses as now conducted
                                         and as currently proposed to be conducted; (v) there is no pending or, to the Company’s
                                         knowledge, threatened action, suit, proceeding or claim by others that the Company or
                                         its Subsidiaries infringe or otherwise violate any patent, trademark, copyright, trade
                                         secret or other proprietary rights of others; (vi) to the Company’s knowledge,
                                         there is no third-party U.S. patent or published U.S. patent application which contains
                                         claims for which an Interference Proceeding (as defined in 35 U.S.C. § 135), or
                                         the equivalent in any other jurisdiction, has been commenced against any patent or patent
                                         application owned by or licensed to the Company or its Subsidiaries; and (vii) except
                                         as disclosed in the SEC Reports, the Company and its Subsidiaries have complied in all
                                         material respects with the terms of each agreement pursuant to which Intellectual Property
                                         has been licensed to the Company or such Subsidiary, and all such agreements are in full
                                         force and effect.

 

(x)
                                         There are no off-balance sheet arrangements (as defined in Regulation S-K Item 303(a)(4)(ii))
                                         that may have a material current or future effect on the Company’s financial condition,
                                         changes in financial condition, results of operations, liquidity, capital expenditures
                                         or capital resources.

 

(y)
                                         The Company and its Subsidiaries have each complied, and are presently in compliance,
                                         in all material respects with all obligations, laws and regulations regarding the collection,
                                         use, transfer, storage, protection, disposal and/or disclosure of personally identifiable
                                         information and/or any other information collected from or provided by third parties.
                                         The Company and its Subsidiaries have taken commercially reasonable steps to protect
                                         the information technology systems and data used in connection with the operation of
                                         the Company and/or its Subsidiaries. The Company and its Subsidiaries have used reasonable
                                         efforts to establish, and have established, commercially reasonable disaster recovery
                                         and security plans, procedures and facilities for the business, including, without limitation,
                                         for the information technology systems and data held or used by or for the Company and/or
                                         any of its Subsidiaries. There has been no security breach or attack or other compromise
                                         of or relating to any such information technology system or data which would reasonably
                                         be expected to be material to the Company and its Subsidiaries, taken as a whole.

 

(z)
                                         The Company and each of its Subsidiaries are insured by insurers of recognized financial
                                         responsibility against such losses and risks and in such amounts as are, in the Company’s
                                         reasonable judgment, prudent and adequate for the businesses in which they are engaged.

 

(aa)
                                         Except as disclosed in the Filed SEC Reports, there are no related party transactions
                                         that would be required to be disclosed therein by Item 404 of Regulation S-K and
                                         any such related party transactions described therein are accurately described in all
                                         material respects.

 

(bb)
                                         Neither the Company nor any of its Subsidiaries maintains or contributes to, or otherwise
                                         has any current or contingent liability with respect to, an employee benefit plan that
                                         is subject to Title IV of the Employee Retirement Income Security Act of 1974, as amended,
                                         including the regulations and published interpretations thereunder (“ERISA”),
                                         or Section 412 of the Code; the employee benefit plans sponsored, maintained or
                                         contributed to by the Company and its Subsidiaries are in compliance in all material
                                         respects with the applicable provisions of ERISA and the Code; to the knowledge of the
                                         Company, no non-exempt prohibited transaction has occurred, within the meaning of Section 406
                                         of ERISA or Section 4975 of the Code for which the Company or any of its Subsidiaries
                                         would have any liability.

 

    	 	14	 

    	 

    

 

(cc)
                                         The operations of the Company and its Subsidiaries are and have been conducted at all
                                         times in material compliance with the ERISA, the rules and regulations thereunder and
                                         any related or similar rules, regulations or guidelines, issued, administered or enforced
                                         by any Governmental Entity (collectively, the “Employee Benefit Laws”).
                                         No action, suit or Proceeding by or before any court or Governmental Entity, authority
                                         or body or any arbitrator to which the Company or any of its Subsidiaries is a party
                                         with respect to Employee Benefit Laws is pending or, to the knowledge of the Company,
                                         threatened.

 

(dd)
                                         The holders of outstanding shares of Common Stock are not entitled to preemptive or other
                                         rights to subscribe for the Securities; none of the outstanding shares of Common Stock
                                         were issued in violation of any preemptive rights, rights of first refusal or other similar
                                         rights to subscribe for or purchase securities of the Company; other than Ampersand with
                                         respect to the Series A Shares (which rights have been waived under this Agreement),
                                         there are no Persons with registration or other similar rights to have securities of
                                         the Company registered under the Securities Act or the rules and regulations of the Commission
                                         thereunder; there are no authorized or outstanding options, warrants, preemptive rights,
                                         rights of first refusal or other rights to purchase, or equity or debt securities convertible
                                         into or exchangeable or exercisable for, any capital stock of the Company or any of its
                                         Subsidiaries except as disclosed in Section 3.1(i); and the description of the
                                         Company Stock Plans, and the options or other rights granted thereunder, included in
                                         the SEC Reports fairly presents the information required to be shown with respect to
                                         such plans, options and rights.

 

(ee)
                                         Neither the Company nor any of its Subsidiaries or any of their respective Affiliates
                                         does business with any court, administrative agency, regulatory body, commission or other
                                         Governmental Entity, board, bureau or instrumentality, domestic or foreign, any subdivision
                                         thereof, or with any individual, corporation, firm, partnership, joint venture, limited
                                         liability company, estate, trust, business association, organization or other entity
                                         located in any country that is the subject of the economic sanctions or programs of the
                                         United States as administered by the Office of Foreign Assets Control of the U.S. Treasury
                                         Department (“OFAC”); and the Company will not directly or indirectly
                                         use the proceeds of the offering, or lend, contribute or otherwise make available such
                                         proceeds to its Subsidiaries or any joint venture partner or other Person, in a manner
                                         that violates any U.S. sanctions administered by OFAC.

 

(ff)
                                         The operations of the Company and its Subsidiaries are and have been conducted at all
                                         times in compliance with applicable financial record-keeping and reporting requirements
                                         of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America
                                         by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
                                         (USA PATRIOT Act), the Currency and Foreign Transactions Reporting Act of 1970, as amended,
                                         the applicable money laundering statutes of jurisdictions where the Company and its Subsidiaries
                                         conduct business, the applicable rules and regulations thereunder and any related or
                                         similar rules, regulations or guidelines, issued, administered or enforced by any governmental
                                         agency (collectively, the “Money Laundering Laws”), and no action,
                                         suit or Proceeding by or before any court or governmental agency, authority or body or
                                         any arbitrator involving the Company or any of its Subsidiaries with respect to the Money
                                         Laundering Laws is pending or threatened.

 

(gg)
                                         Neither the Company or any of its Subsidiaries nor any director, officer, agent, employee
                                         or Affiliate of the Company or any of its Subsidiaries is aware of or has taken any action,
                                         directly or indirectly, that would result in a violation by such Persons of the Foreign
                                         Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the
                                         “FCPA”), including, without limitation, making use of the mails or
                                         any means or instrumentality of interstate commerce corruptly in furtherance of an offer,
                                         payment, promise to pay or authorization of the payment of any money, or other property,
                                         gift, promise to give, or authorization of the giving of anything of value to any “foreign
                                         official” (as such term is defined in the FCPA) or any foreign political party
                                         or official thereof or any candidate for foreign political office, in contravention of
                                         the FCPA and the Company, its Subsidiaries and its Affiliates have conducted their businesses
                                         in compliance with the FCPA and have instituted and maintain policies and procedures
                                         designed to ensure, and which are reasonably expected to continue to ensure, continued
                                         compliance therewith.

 

    	 	15	 

    	 

    

 

(hh)
                                         Private Placement. Assuming the accuracy of the Purchasers’ representations
                                         and warranties set forth in Section 3.2 of this Agreement and the accuracy of
                                         the information disclosed in the Accredited Investor Questionnaires provided by the Purchasers,
                                         no registration under the Securities Act is required for the offer and sale of the Preferred
                                         Shares by the Company to the Purchasers under the Transaction Documents. The issuance
                                         and sale of the Preferred Shares hereunder does not contravene the rules and regulations
                                         of the Trading Market.

 

(ii)
                                         Listing and Maintenance Requirements. Except as described in the SEC Reports,
                                         the Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is listed
                                         on the Principal Trading Market, and the Company has taken no action designed to terminate,
                                         or likely to have the effect of terminating, the registration of the Common Stock under
                                         the Exchange Act or to delist, or likely to have the effect of delisting, the Common
                                         Stock from the Principal Trading Market, nor has the Company received any notification
                                         that the Commission or the Principal Trading Market is contemplating terminating or suspending
                                         such registration or listing. Except as described in the SEC Reports, the Company is
                                         in compliance with all applicable listing requirements of the Principal Trading Market.

 

(jj)
                                         No Integrated Offering. None of the Company, its Subsidiaries nor any of its Affiliates
                                         or any Person acting on its behalf has, directly or indirectly, at any time within the
                                         past six (6) months, made any offers or sales of any Company security or solicited any
                                         offers to buy any security under circumstances that would (i) impair the availability
                                         of the exemption from registration under Regulation D under the Securities Act in connection
                                         with the offer and sale by the Company of the Preferred Shares as contemplated hereby
                                         or (ii) cause the offering of the Preferred Shares pursuant to the Transaction Documents
                                         to be integrated with prior offerings by the Company for purposes of any applicable law,
                                         regulation or stockholder approval provisions, including, without limitation, under the
                                         rules and regulations of any Trading Market on which any of the securities of the Company
                                         are listed or designated.

 

(kk)
                                         No General Solicitation. Neither the Company nor any Person acting on behalf of
                                         the Company has offered or sold any of the Preferred Shares by any form of general solicitation
                                         or general advertising.

 

(ll)
                                         No Rights Agreement. The Company is not party to a stockholder rights agreement,
                                         “poison pill” or similar antitakeover agreement or plan and no anti-takeover
                                         statutes currently in effect in any jurisdiction in which the Company operates are applicable.

 

(mm)
                                         Certain Business Relationships with Affiliates. The Company has provided to the
                                         Purchasers on or prior to the date hereof true and complete unredacted copies of any
                                         contracts or other agreements (excluding employment, stock option and customary indemnification
                                         agreements with officers and directors entered into in the ordinary course of business)
                                         between the Company, on the one hand, and any director, officer or stockholder (in each
                                         case, in his, her or its capacity as such) of the Company, any of its Subsidiaries or
                                         its Affiliates, on the other hand, which is currently in effect.

 

(nn)
                                         Subsidiaries. The entities set forth on Schedule B (collectively, the entities
                                         required to be disclosed on Schedule B, the “Subsidiaries”), are the
                                         Company’s only significant subsidiaries (as such term is defined in Rule 1-02 of
                                         Regulation S-X promulgated by the Commission). The Company owns, directly or indirectly,
                                         all of the equity interests of the Subsidiaries free and clear of any lien, charge, security
                                         interest, encumbrance, right of first refusal or other restriction, and all the equity
                                         interests of the Subsidiaries are validly issued and are fully paid, nonassessable and
                                         free of preemptive and similar rights. Except as described in the Filed SEC Reports,
                                         no Subsidiary is currently prohibited, directly or indirectly, from paying any dividends
                                         to the Company or any of its Subsidiaries, from making any other distribution on such
                                         Subsidiary’s capital stock, from repaying to the Company any loans or advances
                                         to such Subsidiary from the Company or from transferring any of such Subsidiary’s
                                         property or assets to the Company or any other Subsidiary of the Company.

 

    	 	16	 

    	 

    

 

(oo)
                                         No Preferential Rights. Except as described in the Filed SEC Reports, (i) no Person
                                         has the right, contractual or otherwise, to cause the Company or any of its Subsidiaries
                                         to issue or sell to such Person any Common Stock or shares of any other capital stock
                                         or other securities of the Company or any of its Subsidiaries, (ii) no Person has any
                                         preemptive rights, resale rights, rights of first refusal, rights of co-sale, or any
                                         other rights (whether pursuant to a “poison pill” provision or otherwise)
                                         to purchase any Common Stock or shares of any other capital stock or other securities
                                         of the Company or any of its Subsidiaries, (iii) no Person has the right to act as an
                                         underwriter or as a financial advisor to the Company in connection with the offer and
                                         sale of the Common Stock, and (iv) no Person has the right, contractual or otherwise,
                                         to require the Company or any of its Subsidiaries to register under the Securities Act,
                                         any Common Stock or shares of any other capital stock or other securities of the Company
                                         or any of its Subsidiaries, or to include any such shares or other securities in the
                                         offering contemplated hereby, as a result of the sale of the Preferred Shares as contemplated
                                         hereby or otherwise.

 

(pp)
                                         Consents and Permits. Each product subject to the jurisdiction of the U.S. Food
                                         and Drug Administration (“FDA”) or any non-U.S. counterpart that is
                                         manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company
                                         or any of its Subsidiaries are subject to (each such product, a “Product”),
                                         had been manufactured, packaged, labeled, tested, distributed, sold and/or marketed by
                                         the Company or its Subsidiaries, in compliance in all material respects with all applicable
                                         Health Care Laws relating to registration, investigational use, premarket clearance,
                                         licensure, or application approval, good manufacturing practices, good laboratory practices,
                                         good clinical practices, product listing, quotas, labeling, advertising, record keeping
                                         and filing of reports. There is no pending, completed or threatened action (including
                                         any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge,
                                         complaint, or investigation) against the Company or any of its Subsidiaries, and none
                                         of the Company or any of its Subsidiaries has received any notice, warning letter or
                                         other communication from the FDA or any other governmental entity, which (i) contests
                                         the premarket clearance, licensure, registration, or approval of, the uses of, the distribution
                                         of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and
                                         promotion of any 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 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 or, (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 in any material respect. Neither the Company nor any of its Subsidiaries
                                         have been informed by the FDA or any non-U.S. counterpart that the FDA or any non-U.S.
                                         counterpart will prohibit the marketing, sale, license or use in the United States or
                                         in any other territory any product proposed to be developed, produced or marketed by
                                         the Company or any of its Subsidiaries nor has the FDA or any non-U.S. counterpart expressed
                                         any concern as to approving or clearing for marketing any product being developed or
                                         proposed to be developed by the Company or any of its Subsidiaries. To the Company’s
                                         knowledge, there are no legal or governmental proceedings relating to any Health Care
                                         Law pending or threatened to which the Company or any of its Subsidiaries is a party,
                                         nor is it aware of any material violations of such acts or regulations by the Company
                                         or any of its Subsidiaries. For purposes of this Agreement, “Health Care Laws”
                                         means: (i) the Federal Food, Drug, and Cosmetic Act and the regulations promulgated thereunder;
                                         (ii) all applicable federal, state, local and all applicable foreign health care related
                                         fraud and abuse laws, including, without limitation, the U.S. Anti-Kickback Statute (42
                                         U.S.C. Section 1320a-7b(b)), the U.S. Physician Payment Sunshine Act (42 U.S.C. §
                                         1320a-7h), the U.S. Civil False Claims Act (31 U.S.C. Section 3729 et seq.), the criminal
                                         False Claims Law (42 U.S.C. § 1320a-7b(a)), all criminal laws relating to health
                                         care fraud and abuse, including but not limited to 18 U.S.C. Sections 286 and 287, and
                                         the health care fraud criminal provisions under the U.S. Health Insurance Portability
                                         and Accountability Act of 1996 (“HIPAA”) (42 U.S.C. Section 1320d
                                         et seq.), the exclusion laws (42 U.S.C. § 1320a-7), the civil monetary penalties
                                         law (42 U.S.C. § 1320a-7a), the statutes, regulations and directives of applicable
                                         government funded or sponsored healthcare programs, and the regulations promulgated pursuant
                                         to such statutes; (iii) the Standards for Privacy of Individually Identifiable Health
                                         Information, the Security Standards, and the Standards for Electronic Transactions and
                                         Code Sets promulgated under HIPAA, the Health Information Technology for Economic and
                                         Clinical Health Act (42 U.S.C. Section 17921 et seq.), and the regulations promulgated
                                         thereunder and any state or non-U.S. counterpart thereof or other law or regulation the
                                         purpose of which is to protect the privacy of individuals or prescribers; (iv) Medicare
                                         (Title XVIII of the Social Security Act); (v) Medicaid (Title XIX of the Social Security
                                         Act); and (vi) any and all other applicable health care laws and regulations.

 

    	 	17	 

    	 

    

 

(qq)
                                         Regulatory Filings. Except as described in the Filed SEC Reports, neither the
                                         Company nor any of its Subsidiaries has failed to file with the applicable Governmental
                                         Entity (including the FDA or any foreign, federal, state or local Governmental Entity
                                         performing functions similar to those performed by the FDA) any required filing, declaration,
                                         listing, registration, report or submission, except for any deficiencies that, individually
                                         or in the aggregate, would be immaterial; except as described in the Filed SEC Reports,
                                         all such filings, declarations, listings, registrations, reports or submissions were
                                         in material compliance with applicable laws when filed and no material deficiencies have
                                         been asserted by any applicable regulatory authority with respect to any such filings,
                                         declarations, listings, registrations, reports or submissions. Each of the Company and
                                         its Subsidiaries have operated and currently is, in all material respects, in compliance
                                         with all applicable Health Care Laws. The Company has no knowledge of any studies, tests
                                         or trials the results of the Company or any of its Subsidiaries which reasonably call
                                         into question in any material respect the results of such studies, tests and trials.

 

(rr)
                                         Clinical Studies. The preclinical studies and tests and clinical trials of the
                                         Company or any of its Subsidiaries were, and, if still pending, are being conducted in
                                         all material respects in accordance with the experimental protocols, procedures and controls
                                         pursuant to, where applicable, accepted professional and scientific standards for products
                                         or product candidates comparable to those being developed by the Company or any of its
                                         Subsidiaries; the descriptions of such studies, tests and trials, and the results thereof,
                                         contained in the Filed SEC Reports, if any, are accurate and complete in all material
                                         respects; the Company is not aware of any tests, studies or trials not described in the
                                         Filed SEC Reports, the results of which reasonably call into question the results of
                                         the tests, studies and trials described in the Filed SEC Reports; and neither the Company
                                         nor any of its Subsidiaries has received any written notice or correspondence from the
                                         FDA or any foreign, state or local Governmental Entity exercising comparable authority
                                         or any institutional review board or comparable authority requiring the termination,
                                         suspension, clinical hold or material modification of any tests, studies or trials.

 

(ss)
                                         Brokers. Neither the Company nor any of its Subsidiaries has incurred any liability
                                         for any finder’s fees, brokerage commissions or similar payments in connection
                                         with the transactions herein contemplated.

 

(tt)
                                         Labor Disputes and Matters. Neither the Company nor any of its Subsidiaries employs
                                         any person represented by a union or collective bargaining unit. No labor disturbance
                                         by or dispute with employees of the Company or any of its Subsidiaries exists or, to
                                         the knowledge of the Company, is threatened.

 

(uu)
                                         Margin Rules. Neither the issuance, sale and delivery of the Preferred Shares
                                         nor the application of the proceeds thereof by the Company as described in the Filed
                                         SEC Reports will violate Regulation T, U or X of the Board of Governors of the Federal
                                         Reserve System or any other regulation of such Board of Governors.

 

(vv)
                                         Insurance. The Company and each of its Subsidiaries carry, or are covered by,
                                         insurance in such amounts and covering such risks as the Company and each of its Subsidiaries
                                         reasonably believe are adequate for the conduct of their business and as is customary
                                         for companies engaged in similar businesses in similar industries.

 

    	 	18	 

    	 

    

 

(ww)
                                         Compliance with Laws. Each of the Company and its Subsidiaries: (i) is and at
                                         all times has been in material compliance with all laws, statutes, rules, or regulations
                                         applicable to the ownership, testing, development, manufacture, packaging, processing,
                                         use, distribution, marketing, labeling, promotion, sale, offer for sale, storage, import,
                                         export or disposal of any product manufactured or distributed by the Company or its Subsidiaries
                                         (“Applicable Laws”); (ii) has not received any FDA Form 483, notice
                                         of adverse finding, warning letter, untitled letter or other correspondence or notice
                                         from the FDA or any other Governmental Entity alleging or asserting noncompliance with
                                         any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations,
                                         permits and supplements or amendments thereto required by any such Applicable Laws (“Authorizations”);
                                         (iii) possesses all material Authorizations and such Authorizations are valid and in
                                         full force and effect and are not in material violation of any term of any such Authorizations;
                                         (iv) has not received notice of any claim, action, suit, proceeding, hearing, enforcement,
                                         investigation, arbitration or other action from any Governmental Entity or third party
                                         alleging that any product operation or activity is in violation of any Applicable Laws
                                         or Authorizations and has no knowledge that any such Governmental Entity or third party
                                         is considering any such claim, litigation, arbitration, action, suit, investigation or
                                         proceeding; (v) has not received notice that any Governmental Entity has taken, is taking
                                         or intends to take action to limit, suspend, modify or revoke any Authorizations and
                                         has no knowledge that any such Governmental Entity is considering such action; (vi) has
                                         filed, obtained, maintained or submitted all material reports, documents, forms, notices,
                                         applications, records, claims, submissions and supplements or amendments as required
                                         by any Applicable Laws or Authorizations and that all such reports, documents, forms,
                                         notices, applications, records, claims, submissions and supplements or amendments were
                                         complete and correct in all material respects on the date filed (or were corrected or
                                         supplemented by a subsequent submission); and (vii) has not, either voluntarily or involuntarily,
                                         initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall,
                                         market withdrawal or replacement, safety alert, post-sale warning, “dear healthcare
                                         provider” letter, or other notice or action relating to the alleged lack of safety
                                         or efficacy of any product or any alleged product defect or violation and, to the Company’s
                                         knowledge, no third party has initiated, conducted or intends to initiate any such notice
                                         or action.

 

(xx)
                                         Disclosure. No representation or warranty or other statement made by the Company
                                         or its representatives in connection with the negotiation, execution, delivery or performance
                                         of this Agreement or the Transaction Documents contains any untrue statement of a material
                                         fact or omits to state any material fact necessary in order to make the statements contained
                                         herein and therein, in light of the circumstances under which such statements were made,
                                         not misleading.

 

(yy)
                                         Health Care Regulatory Compliance.

 

(i)
The Company and each of its Subsidiaries is in material compliance with all applicable Health Care Laws. Neither the Company
nor any of its Subsidiaries has received any written or, to the Company’s knowledge, oral communication from a Governmental
Entity, Government Program, Private Program, or other Person alleging any failure to comply with applicable Health Care Laws.
Except as disclosed in the section entitled “RedPath – DOJ Settlement” in Note 10 of the consolidated financial
statements included in the 2018 Form 10-K, to the knowledge of the Company, neither the Company nor any of its Subsidiaries has
been investigated for violation of any Health Care Laws to which it is bound or to which any business activity or professional
services performed by or for the Company or any of its Subsidiaries is subject.

 

(ii)
The Company and each of its Subsidiaries has, and for the past three years has had, privacy and security policies, procedures
and safeguards that comply with then-applicable requirements of health care privacy laws.

 

    	 	19	 

    	 

    

 

(iii)
Except as disclosed in the section entitled “RedPath – DOJ Settlement” in Note 10 of the consolidated financial
statements included in the 2018 Form 10-K, neither the Company nor any of its Subsidiaries is, and in the past three years has
not been, a party to a corporate integrity agreement with any Governmental Entity or otherwise had any continuing reporting obligations
pursuant to any deferred prosecution, settlement or other integrity agreement with any Governmental Entity.

 

(iv)
Neither the Company nor any of its Subsidiaries has at any time in the past three years (i) been served with or received any search
warrant, subpoena or civil investigative demand from any Governmental Entity, (ii) made a voluntary disclosure pursuant to the
U.S. Department of Health and Human Services Office of the Inspector General’s provider Self-Disclosure Protocol or the
Centers for Medicare and Medicaid’s Voluntary Self-Referral Disclosure Protocol, (iii) made a self-disclosure to a Medicare
Administrative Contractor or (iv) otherwise made a material disclosure to a Governmental Entity regarding potential repayment
obligations arising from actual or potential violations of Health Care Laws.

 

(v)
The Company and each of its Subsidiaries, their respective personnel and authorized representatives are operating, and for past
three years have operated, in material compliance with the federal health care program anti-kickback statute (42 U.S.C. §
1320a-7b, et seq.), the federal physician self-referral law (commonly known as the Stark Law) (42 U.S.C. § 1395nn, et seq.,
and its implementing regulations, 42 C.F.R. Subpart J), and all other Applicable Laws with respect to direct and indirect compensation
arrangements, ownership interests or other relationships between such Person and any past, present or potential patient, physician,
supplier, contractor or other Person in a position to refer, recommend or arrange for the referral of patients or other health
care business or to whom such Person refers, recommends or arranges for the referral of patients or other health care business.

 

(vi)
There has been no non-coverage decision, material adverse change to any existing coverage determination, nor change in reimbursement
or coverage policies which could have a material adverse effect on, cause, or result in a denial of reimbursement, with respect
to any of the Company’s or any of its Subsidiaries’ products or services by CMS or its contractors (including but
not limited to Medicare Administrative Contractors (MACs)), whether through a National Coverage Determination (NCD) or a Local
Coverage Determination (LCD), nor a determination by CMS or a MAC that any of the Company’s or any of its Subsidiaries’
products or services (i) are considered non-covered services, and (ii) no existing coverage determination has been, is pending,
nor has been threatened to be revoked or amended.

 

(vii)
Except as disclosed in the section entitled “RedPath – DOJ Settlement” in Note 10 of the consolidated financial
statements included in the 2018 Form 10-K for the year ended December 31, 2018, neither the Company nor any of its Subsidiaries
has received any nor, to the knowledge of the Company, are there any pending, written complaints, claims, demands, inquiries,
proceedings, or other notices, including any notices of any investigation or other Legal Proceedings regarding the Company or
any of its Subsidiaries, initiated by (i) any Person; (ii) any Private Programs; (iii) any Governmental Entity, including the
United States Federal Trade Commission, a state attorney general, data protection authority or similar state official, or a supervisory
authority; or (iv) any self-regulatory authority or entity, alleging that any activity of the Company or any of its Subsidiaries:
(A) is in violation of any applicable information laws, (B) is in violation of any privacy agreements, (C) is in violation of
any privacy policies, (D) is otherwise in violation of any person’s privacy, personal or confidentiality rights, or (E)
otherwise constitutes an unfair, deceptive, or misleading trade practice.

 

    	 	20	 

    	 

    

 

(viii)
Neither the Company nor any of its Subsidiaries, to the knowledge of the Company, any officer, key employee or agent of the Company
has, within the last three years, been convicted of any crime or engaged in any conduct that would reasonably be expected to result
in (i) debarment under 21 U.S.C. Section 335a or any similar state or foreign Applicable Laws or (ii) exclusion under 42 U.S.C.
Section 1320a-7 or any similar state or foreign Applicable Laws.

 

3.2
Representations and Warranties of the Purchasers. Each Purchaser, severally and not jointly, hereby represents and warrants
as of the Closing Date to the Company as follows:

 

(a)
                                         Organization; Authority; Enforceability. Such Purchaser is an entity duly organized,
                                         validly existing and in good standing under the laws of the jurisdiction of its organization
                                         with the requisite corporate or partnership power and authority to enter into and to
                                         consummate the transactions contemplated by the applicable Transaction Documents and
                                         otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
                                         of this Agreement by such Purchaser and performance by such Purchaser of the transactions
                                         contemplated by this Agreement have been duly authorized by all necessary corporate or,
                                         if such Purchaser is not a corporation, such partnership, limited liability company or
                                         other applicable like action, on the part of such Purchaser. Each Transaction Document
                                         to which it is a party has been duly executed by such Purchaser, and when delivered by
                                         such Purchaser in accordance with the terms hereof, will constitute the valid and legally
                                         binding obligation of such Purchaser, enforceable against it in accordance with its terms,
                                         except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
                                         moratorium, liquidation or similar laws relating to, or affecting generally the enforcement
                                         of, creditors’ rights and remedies or by other equitable principles of general
                                         application.

 

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

 

(c)
                                         Investment Intent. Such Purchaser understands that the Securities are “restricted
                                         securities” and have not been registered under the Securities Act or any applicable
                                         state securities law and is acquiring the Securities as principal for its own account
                                         and not with a view to, or for distributing or reselling such Securities or any part
                                         thereof in violation of the Securities Act or any applicable state securities laws. Such
                                         Purchaser is acquiring the Securities hereunder in the ordinary course of its business.
                                         Such Purchaser does not presently have any agreement, plan or understanding, directly
                                         or indirectly, with any Person to distribute or effect any distribution of any of the
                                         Securities (or any securities which are derivatives thereof) to or through any Person;
                                         such Purchaser is not a registered broker-dealer under Section 15 of the Exchange Act
                                         or an entity engaged in a business that would require it to be so registered as a broker-dealer.

 
(d)
                                         Purchaser Status. At the time such Purchaser was offered the Preferred Shares,
                                         it was, and at the date hereof it is, an “accredited investor” as defined
                                         in Rule 501(a) under the Securities Act.

 

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

 

    	 	21	 

    	 

    

 

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

 

(g)
                                         Access to Information. Such Purchaser acknowledges that it has had the opportunity
                                         to review the Transaction Documents (including all exhibits and schedules thereto) and
                                         the SEC Reports and that it has been afforded (i) the opportunity to ask such questions
                                         as it has deemed necessary of, and to receive answers from, representatives of the Company
                                         concerning the terms and conditions of the offering of the Securities and the merits
                                         and risks of investing in the Securities; (ii) access to information about the Company
                                         and the Subsidiaries and their respective financial condition, results of operations,
                                         business, properties, management and prospects sufficient to enable it to evaluate its
                                         investment; and (iii) the opportunity to obtain such additional information that the
                                         Company possesses or can acquire without unreasonable effort or expense to make an informed
                                         decision with respect to the investment. Neither such inquiries nor any other investigation
                                         conducted by or on behalf of such Purchaser or its representatives or counsel shall modify,
                                         amend or affect such Purchaser’s right to rely on the truth, accuracy and completeness
                                         of the Company’s representations and warranties contained in the Transaction Documents.

 

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

 

(i)
                                         Independent Investment Decision. Such Purchaser has independently evaluated the
                                         merits of its decision to purchase the Preferred Shares pursuant to the Transaction Documents.
                                         Such Purchaser understands that nothing in this Agreement or any other materials presented
                                         by or on behalf of the Company to such Purchaser in connection with the purchase of the
                                         Preferred Shares constitutes legal, tax or investment advice. Such Purchaser has consulted
                                         such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary
                                         or appropriate in connection with its purchase of the Preferred Shares.

 

(j)
                                         Reliance on Exemptions. Such Purchaser understands that the Preferred Shares are
                                         being offered and sold to it in reliance on specific exemptions from the registration
                                         requirements of United States federal and state securities laws and that the Company
                                         is relying in part upon the truth and accuracy of, and such Purchaser’s compliance
                                         with, the representations, warranties, agreements, acknowledgements and understandings
                                         of such Purchaser set forth herein in order to determine the availability of such exemptions
                                         and the eligibility of such Purchaser to acquire the Preferred Shares.

 

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

 
(l)
                                         Regulation M. Such Purchaser is aware that the anti-manipulation rules of Regulation
                                         M under the Exchange Act may apply to certain sales of Common Stock and certain other
                                         activities with respect to the Common Stock by the Purchaser.

 

(m)
                                         Residency. Such Purchaser’s offices in which its investment decision with
                                         respect to the Preferred Shares was made are located at the address set forth for notices
                                         to be delivered to such Purchaser in Section 6.3.

 

    	 	22	 

    	 

    

 

(n)
No Disqualification Events.

 

(i)
Such Purchaser represents that neither it, nor any of its directors, executive officers, other officers participating in the offering
of Preferred Shares, general partners or managing members, nor any of the directors, executive officers or other officers participating
in the offering of Preferred Shares of any such general partner or managing member, nor any other officers or employees of such
Purchaser or any such general partner or managing member that have been or will be paid (directly or indirectly) remuneration
for solicitation of purchasers in connection with the sale of any Preferred Shares (each, a “Purchaser Covered Person”
and, collectively, “Purchaser Covered Persons”), is subject to any Disqualification Event except for a Disqualification
Event (a) contemplated by Rule 506(d)(2) under the Securities Act and (b) a description of which has been furnished in writing
to the Company prior to the date hereof, or, in the case of a Disqualification Event occurring after the date hereof, prior to
the date of any offering of Preferred Shares.

 

(ii)
Such Purchaser represents that it is not aware of any person that has been or will be paid (directly or indirectly) remuneration
for solicitation of purchasers in connection with the sale of any Preferred Shares. Such Purchaser will notify the Company, prior
to any offering of Preferred Shares, of any agreement entered into between such Purchaser and such person in connection with such
sale.

 

(iii)
Such Purchaser will notify the Company in writing, prior to any offering of Preferred Shares of (a) any Disqualification Event
relating to any Purchaser Covered Person not previously disclosed to the Company in accordance with this Section 3.2(n)
and (b) any event that would, with the passage of time, become a Disqualification Event relating to any Purchaser Covered Person.

 

3.3
Representations and Warranties of Ampersand. Ampersand hereby represents and warrants as of the Closing Date to the
Company that it is the record and beneficial owner of, and has valid and marketable title to, the Series A Shares being exchanged
by it pursuant to this Agreement, free and clear of any lien, pledge, restriction or other encumbrance (other than restrictions
arising pursuant to applicable securities laws), and has the absolute and unrestricted right, power and capacity to surrender
and exchange the Series A Shares being exchanged by it pursuant to this Agreement, free and clear of any lien, pledge, restriction
or other encumbrance. Except for the Investor Rights Agreement, it is not a party to or bound by, and the Series A Shares being
exchanged by it pursuant to this Agreement are not subject to, any agreement, understanding or other arrangement (i) granting
any option, warrant or right of first refusal with respect to such Series A Shares to any person, (ii) restricting its right to
surrender and exchange such Series A Shares as contemplated by this Agreement, or (iii) restricting any other of its rights with
respect to such Series A Shares.

 

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

 

    	 	23	 

    	 

    

 

Article
IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1
Transfer Restrictions.

 

(a)
Legends. Certificates evidencing the Securities shall bear any legend as required by the “blue sky” laws of
any state and a restrictive legend in substantially the following form, until such time as they are not required under Section
4.1(b):

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR
BLUE SKY LAWS AS EVIDENCED BY, IF REQUESTED BY THE COMPANY, A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY
AND ITS TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

(b)
                                         Removal of Legends. Promptly, and in no event later than two (2) Business Days,
                                         following a request by a Purchaser, the legend set forth in Section 4.1(a) above
                                         shall be removed and the Company shall issue a certificate without such legend or any
                                         other legend to the holder of the applicable Securities upon which it is stamped or issue
                                         to such holder (if such Securities are DTC eligible) by electronic delivery at the applicable
                                         account at the Depository Trust Company (“DTC”) designated by such
                                         holder, if (i) such Securities are registered for resale under the Securities Act or
                                         (ii) such Securities are sold or transferred pursuant to Rule 144 (if the transferor
                                         is not an Affiliate of the Company). Certificates for Securities subject to legend removal
                                         hereunder may be transmitted by the Transfer Agent to such Purchaser by crediting the
                                         account of such Purchaser’s prime broker with DTC as directed by such Purchaser.
                                         Nothing herein shall limit a Purchaser’s right to pursue any other remedies available
                                         to it hereunder, at law or in equity including, without limitation, a decree of specific
                                         performance and/or injunctive relief with respect to the Company’s failure to timely
                                         deliver certificates representing Securities without legends as required pursuant to
                                         the terms hereof; provided, however, such Purchaser shall not be entitled to both (i)
                                         require the reissuance of the Securities submitted for legend removal for which such
                                         conversion was not timely honored and (ii) receive the type and number of Securities
                                         that would have been issued if the Company had timely complied with its delivery requirements
                                         hereunder. If the Company fails to deliver to a Purchaser (or its transferee) the applicable
                                         certificate or certificates without any legend or issue to such holder by electronic
                                         delivery at the applicable account at the DTC within such two (2) Business Day period,
                                         and if after such date such Purchaser is required to or otherwise purchases (in an open
                                         market transaction or otherwise), Securities to deliver in satisfaction of a sale by
                                         such Purchaser of Securities which such Purchaser was entitled to receive without a legend
                                         (a “Buy-In”), then the Company shall (A) pay in cash to such Purchaser
                                         (in addition to any other remedies available to or elected by such Purchaser) the amount
                                         by which (x) such Purchaser’s total purchase price (including any brokerage commissions)
                                         for the Securities so purchased exceeds (y) the product of (1) the aggregate number of
                                         Securities at issue multiplied by (2) the actual sale price at which the sell order giving
                                         rise to such purchase obligation was executed (including any brokerage commissions) and
                                         (B) reissue (if surrendered) the type and number of Securities equal to the type and
                                         number of Securities submitted for legend removal. For example, if a Purchaser purchases
                                         common shares having a total purchase price of $11,000 to cover a Buy-In with respect
                                         to which the actual sale price (including any brokerage commissions) giving rise to such
                                         purchase obligation was a total of $10,000 under clause (A) of the immediately preceding
                                         sentence, the Company shall be required to pay such Purchaser $1,000. Such Purchaser
                                         shall provide the Company written notice, within three (3) trading days after the occurrence
                                         of a Buy-In, indicating the amounts payable to such Purchaser in respect of such Buy-In
                                         together with applicable confirmations and other evidence reasonably requested by the
                                         Company. Nothing herein shall limit a Purchaser’s right to pursue any other remedies
                                         available to it hereunder, at law or in equity including, without limitation, a decree
                                         of specific performance and/or injunctive relief with respect to the Company’s
                                         failure to timely deliver certificates representing Securities without legends as required
                                         pursuant to the terms hereof; provided, however, that such Purchaser shall not be entitled
                                         to both (i) require the reissuance of the Securities submitted for legend removal for
                                         which such conversion was not timely honored and (ii) receive the type and number of
                                         Securities that would have been issued if the Company had timely complied with its delivery
                                         requirements hereunder.

 

    	 	24	 

    	 

    

 

4.2
Integration. The Company shall not, and shall use its reasonable best efforts
to ensure that no Affiliate of the Company shall, 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 will 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 to the Purchasers, or that
will be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such
that it would require stockholder approval prior to the closing of such other transaction.

 

4.3
Use of Proceeds. The Company shall use the net proceeds from the sale of the Preferred Shares hereunder to fund the Company’s
ongoing operational needs, including to fund strategic acquisitions from time to time.

 

4.4
Principal Trading Market Listing. The Company shall, prior to the date hereof, prepare and submit to The Nasdaq Capital
Market a listing application for the Conversion Shares.

 

4.5
Form D; Blue Sky. The Company agrees to timely file a Form D with respect to the Securities as required under
Regulation D and to provide a copy thereof, promptly upon the written request of either Purchaser. The Company, on or before
the Closing Date, 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 Purchasers under applicable securities or “Blue Sky” laws of the
states of the United States (or to obtain an exemption from such qualification) and shall provide evidence of such actions promptly
upon the written request of either Purchaser.

 

4.6
Reservation of Securities. The Company shall take all action necessary to at all times have authorized, and reserved for
the purpose of issuance from and after the Closing Date, the number of shares of Common Stock issuable upon conversion of the
Series B Shares in accordance with the terms of the Certificate of Designation.

 

4.7
Efforts to Consummate.

 

(a)
                                         Subject to the terms and conditions herein provided, each of the Purchasers and the Company
                                         shall use reasonable best efforts to take, or cause to be taken, all action and to do,
                                         or cause to be done, all things commercially reasonable efforts, proper or advisable
                                         to consummate and make effective as promptly as practicable the transactions contemplated
                                         by this Agreement (including the satisfaction, but not waiver, of the closing conditions
                                         set forth in Article V).

 
(b)
                                         Each of the Purchasers and the Company shall use commercially reasonable efforts to obtain
                                         consents of all Governmental Entities necessary to consummate the transactions contemplated
                                         by this Agreement (collectively, the “Governmental Approvals”). Each
                                         of the Purchasers and the Company shall promptly inform the other parties hereto of any
                                         communication between the Purchasers or the Company, as applicable, and any Governmental
                                         Entity regarding any of the transactions contemplated by this Agreement.

 

    	 	25	 

    	 

    

 

4.8
Board of Directors and 2020 Annual Meeting.

 

(a)
The Company shall have taken all action necessary such that, effective as of the Closing, the Company’s Board of Directors
will consist of seven (7) members and shall be comprised of:

 

(i)
two (2) Class I Directors, (x) one of whom shall qualify as an “independent director” under Rule 5605(a)(2) of the
of the listing rules of the Nasdaq Stock Market (or any successor rule) or under any similar rule promulgated by such other exchange
on which the Company’s securities are then listed or designated (such director, an “Independent Director”),
and shall initially be Stephen J. Sullivan and (y) one of whom shall be designated by Ampersand and shall initially be Eric Lev;

 

(ii)
three (3) Class II Directors, (x) one of whom shall be an Independent Director designated by Ampersand and shall initially be
Robert Gorman, (y) one of whom shall be an Independent Director designated by 1315 Capital at a future date, and (z) one of whom
shall be designated by 1315 Capital and shall initially be Edward Chan; and

 

(iii)
two (2) Class III Directors, (x) one of whom shall initially be Jack Stover, and (y) one of whom shall be an Independent Director
and shall initially be Dr. Joseph Keegan.

 

(b)
                                         The Company shall use its reasonable best efforts to obtain the approval of the Company’s
                                         stockholders at the 2020 Annual Meeting of an amendment to the Company’s Certificate
                                         of Incorporation to eliminate the classified structure of the Company’s Board of
                                         Directors and to provide that all members of the Company’s Board of Directors shall
                                         stand for election at each annual meeting of the Company’s stockholders. Each Investor
                                         hereby agrees to vote in favor of the election of Jack Stover, Dr. Joseph Keegan and
                                         Stephen J. Sullivan to the Company’s Board of Directors at the 2020 Annual Meeting.

 

4.9
Notification of Certain Matters. Notwithstanding anything else herein to the contrary, the Company and each Purchaser shall
give prompt written notice to each other party of (a) any notice or other communication from any Person alleging that any
consent, waiver or approval from, or notification requirement to, such Person is or may be required in connection with the transactions
contemplated by the Transaction Documents, (b) all effects, changes, events and occurrences arising subsequent to the date
of this Agreement which could reasonably be expected to result in any breach of a representation or warranty or covenant of the
Company in this Agreement that would, if occurring or continuing on the Closing Date, cause any of the conditions set forth in
Article V not to be satisfied, (c) any effect, change, event or occurrence that, individually or in the aggregate, would
reasonably be expected to have a Material Adverse Effect and (d) any litigation relating to the transactions contemplated
by the Transaction Documents (the “Transaction Litigation”) and any updates to the status thereof. The Company
and its Subsidiaries shall give the Purchasers an opportunity to discuss with the Company and its representatives any Transaction
Litigation (subject to the entry into any joint defense or similar agreement and otherwise subject to the protection of any attorney-client
or other similar doctrine or privilege) and the Company and its representatives shall consider the Purchasers’ recommendations
with respect thereto in good faith. For the avoidance of doubt, no updated information provided in accordance with this Section 4.9
shall be deemed to cure any breach of any representation, warranty or covenant made in this Agreement or affect any rights
under this Agreement or the other Transaction Documents.

 

4.10
Consent. Subject to and effective as of the Closing, Ampersand, as holder of all issued and outstanding Series A Shares,
consents to the transactions contemplated by this Agreement and waives its rights under Section 7 of the Investor Rights Agreement,
dated as of July 15, 2019, by and among the Company and Ampersand.

 

    	 	26	 

    	 

    

 

Article
V

CONDITIONS PRECEDENT TO CLOSINGs

 

5.1
Conditions Precedent to the Obligations of the Purchasers to Purchase Preferred Shares at the Closing. The obligation of
the Purchasers to acquire Preferred Shares at the Closing is subject to the fulfillment to the Purchasers’ satisfaction,
on or prior to the Closing Date, of each of the following conditions, any of which may be waived by the Purchasers:

 

(a)
Representations and Warranties. As of the Closing Date, the representations and warranties of the Company contained in
Article III (other than in Sections 3.1(g), 3.1(h), 3.1(i), 3.1(j), 3.1(k) (but only the first
sentence thereof), 3.1(l), 3.1(w), and 3.1(yy)) shall be true and correct in all material respects as though
made on and as of such date, except for such representations and warranties that speak as of a specific date (which shall be true
and correct in all material respects as of such date). As of the Closing Date, the representations and warranties contained in
Sections 3.1(g), 3.1(h), 3.1(w) and 3.1(yy) shall be true and correct in all respects as though made
on and as of such date, except for such representations and warranties that speak as of a specific date (which shall be so true
and correct as of such date). As of the Closing Date, the representations and warranties contained in Sections 3.1(i),
3.1(j), 3.1(k) (but only the first sentence thereof) and 3.1(l) shall be true and correct in all respects,
except for any de minimis inaccuracies, as though made on and as of such date, except for such representations and warranties
that speak as of a specific date (which shall be so true and correct as of such date).

 

(b)
Covenants. The Company shall have performed and complied in all material respects with all covenants, obligations and conditions
of this Agreement required to be performed and complied with by it at or prior to the Closing.

 

(c)
No Material Adverse Effect. Since September 30, 2019, there has not occurred any
event or condition that has had or would reasonably be expected to have a Material Adverse Effect.

 

(d)
Listing on Nasdaq. The Company shall have filed with Nasdaq a Notification Form:
Listing of Additional Shares for the listing of Conversion Shares, a copy of which shall have been provided to the Purchasers,
and Nasdaq shall have approved the listing of such Conversion Shares.

 

(e)
No Injunction; Government Approvals. No statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits
the consummation of any of the transactions contemplated by the Transaction Documents.

 

(f)
Certificate of Designation. The Certificate of Designation substantially in the form attached hereto as Exhibit A
shall have been filed with the Secretary of State of the State of Delaware and shall be in full force and effect, enforceable
against the Company in accordance with its terms and shall not have been amended.

 
(g)
                                         Reverse Stock Split. The reverse stock split of the Company’s Common Stock
                                         previously approved by the stockholders of the Company shall have become effective at
                                         a ratio acceptable to each Purchaser.

 

(h)
                                         Deliveries. Each Purchaser shall have received each of the agreements, instruments
                                         and other documents set forth in Section 2.2(a).

 

    	 	27	 

    	 

    

 

5.2
Conditions Precedent to the Obligations of the Company to Issue Preferred Shares at the Closing. The Company’s obligation
to issue the Preferred Shares at the Closing to each Purchaser is subject to the fulfillment to the satisfaction of the Company
on or prior to the Closing Date of the following conditions, any of which may be waived by the Company:

 

(a)
                                         No Injunction; Governmental Approvals. No statute, rule, regulation, executive
                                         order, decree, ruling or injunction shall have been enacted, entered, promulgated or
                                         endorsed by any court or Governmental Entity of competent jurisdiction that prohibits
                                         the consummation of any of the transactions contemplated by the Transaction Documents.

 

(b)
                                         Representations and Warranties. The representations and warranties of each Purchaser
                                         contained in Article III shall be true and correct in all material respects as
                                         of the Closing Date.

 

(c)
                                         Covenants. The Purchasers shall have performed and complied in all material respects
                                         with all covenants, obligations and conditions of this Agreement required to be performed
                                         and complied with by it at or prior to the Closing.

 

(d)
                                         Deliveries. The Company shall have received each of the agreements, instruments
                                         and other documents set forth in Section 2.2(b).

 

Article
VI

MISCELLANEOUS

 

6.1
Fees and Expenses. At the Closing, the Company shall pay (a) the reasonable fees and expenses of 1315 Capital incurred
in connection with the Closing, in an amount not to exceed, in the aggregate, $150,000 and (b) the reasonable fees and expenses
of Ampersand incurred in connection with the Closing, in an amount not to exceed, in the aggregate, $150,000.

 

6.2
Entire Agreement. The Transaction Documents together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations,
oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and
schedules. At or after the Closing, and without further consideration, the Company and the Purchasers will execute and deliver
to the other such further documents as may be reasonably requested in order to give practical effect to the intention of the parties
under the Transaction Documents.

 

6.3
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication
is delivered via email (provided the sender does not receive a machine-generated rejection of transmission) at the email address
specified in this Section 6.3 prior to 5:00 P.M., New York City time, on a Business Day, (b) the next Business Day after
the date of transmission, if such notice or communication is delivered via email at the email address specified in this Section
6.3 on a day that is not a Business Day or later than 5:00 P.M., New York City time, on any Business Day, (c) the Business
Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service with next day delivery specified,
or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as follows:

 

	 	If
    to the Company:	Interpace
    Biosciences, Inc.
	 	 	Morris
    Corporate Center 1, Building C
	 	 	300
    Interpace Parkway, Parsippany, NJ 07054
	 	 	Attention:
    Jack E. Stover, President and CEO
	 	 	Email:
    jstover@interpacedx.com

 

    	 	28	 

    	 

    

 

	 	With
    a copy to:	Pepper
    Hamilton LLP
	 	 	620
    Eighth Avenue, 37th Floor
	 	 	New
    York Times Building
	 	 	New
    York, NY 10018
	 	 	Attention:
    Merrill M. Kraines, Esquire 
	 	 	Email:
    krainesm@pepperlaw.com
	 	 	 
	 	If
    to 1315 Capital:	1315
    Capital II, L.P.
	 	 	2929
    Walnut Street, Suite 1240
	 	 	Philadelphia,
    PA 19104
	 	 	Attention:
    Brian Schwenk, Chief Financial Officer
	 	 	Email:
    brian.schwenk@1315capital.com
	 	 	 
	 	With
    a copy to:	Morgan,
    Lewis & Bockius LLP
	 	 	1701
    Market Street
	 	 	Philadelphia,
    PA 19103-2921
	 	 	Attention:
    Joanne R. Soslow, Esquire
	 	 	Email:
    joanne.soslow@morganlewis.com
	 	 	 
	 	If
    to Ampersand:	Ampersand
    2018 Limited Partnership
	 	 	c/o
    Ampersand Capital Partners
	 	 	55
    William Street, Suite 240
	 	 	Wellesley,
    MA 02481 
	 	 	Attn:
    Dana L. Niles, Chief Operating Partner
	 	 	Email:
    dln@ampersandcapital.com
	 	 	 
	 	With
    a copy to:	Goodwin
    Procter LLP
	 	 	100
    Northern Avenue
	 	 	Boston,
    MA 02210
	 	 	Attention:
    James T. Barrett, Esq., and Jocelyn Arel, Esq.
	 	 	Email:
    JBarrett@goodwinlaw.com and JArel@goodwinlaw.com 

 

or
such other address as may be designated in writing hereafter, in the same manner, by such Person.

 

6.4
Amendments; Waivers; No Additional Consideration. No provision of this Agreement may be waived, modified, supplemented
or amended except in a written instrument signed, in the case of an amendment, by the Company and each Purchaser or, in the case
of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any
subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either
party to exercise any right hereunder in any manner impair the exercise of any such right. No consideration shall be offered or
paid to either Purchaser to amend or consent to a waiver or modification of any provision of any Transaction Document unless the
same consideration is also offered to any holders who then hold Securities.

 

    	 	29	 

    	 

    

 

6.5
Construction; Interpretation. The headings herein are for convenience only, do not constitute a part of this Agreement
and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to
be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against
any party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction
Documents. Unless otherwise indicated to the contrary herein by the context or use thereof: (i) the words, “herein,”
“hereto,” “hereof” and words of similar import refer to this Agreement as a whole, including the Schedules
and exhibits, and not to any particular section, subsection, paragraph, subparagraph or clause contained in this Agreement; (ii)
masculine gender shall also include the feminine and neutral genders, and vice versa; (iii) words importing the singular shall
also include the plural, and vice versa; (iv) the words “include,” “includes” or “including”
shall be deemed to be followed by the words “without limitation”; (v) financial terms shall have the meanings given
to such terms under GAAP unless otherwise specified herein; (vi) references to “$” or “dollar” or “US$”
shall be references to United States dollars; (vii) where the context permits, the use of the term “or” will be non-exclusive
and equivalent to the use of the term “and/or”; (viii) the word “extent” in the phrase “to the extent”
shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply “if”; and (ix)
if any action under this Agreement is required to be done or taken on a day that is not a Business Day or on which a government
office is not open with respect to which a filing must be made, then such action shall be required to be done or taken not on
such day but on the first succeeding Business Day thereafter.

 

6.6
Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties
and their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the
Company without the prior written consent of each Purchaser. Any Purchaser may assign its rights hereunder in whole or in part
to any Person to whom such Purchaser assigns or transfers such rights in compliance with applicable law, provided such transferee
shall agree in writing to be bound, with respect to any Securities transferred in connection with such assignment, by the terms
and conditions of this Agreement and the Investor Rights Agreement that apply to the “Purchasers;” provided, further,
that, such Purchaser remains liable for its obligations hereunder.

 

6.7
No Third-Party Beneficiaries. Except as set forth in Section 6.13 and Section 6.14, 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 and
shall not confer any rights or remedies on, nor may any provision hereof be enforced by, any other Person.

 

6.8
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the
principles of conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations, enforcement and
defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the Delaware Courts. Each party hereto
hereby irrevocably submits to the exclusive jurisdiction of the Delaware Courts for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement
of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that
it is not personally subject to the jurisdiction of any such Delaware Court, or that such Proceeding has been commenced in an
improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process
being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

    	 	30	 

    	 

    

 

6.9
Survival. Subject to applicable statute of limitations, the representations, warranties, agreements and covenants contained
herein shall survive the Closing and the delivery of the Preferred Shares at the Closing.

 

6.10
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission, or by email delivery of a “.pdf” format data file, such signature shall create a valid
and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as
if such facsimile signature page were an original thereof.

 

6.11
Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and
the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

 

6.12
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The
parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other
than in connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate.

 

6.13
Limitation of Liability; No Recourse.

 

(a)
Notwithstanding anything that may be expressed or implied in this Agreement, the liability of each Purchaser hereunder shall be
several, not joint and several, and, under no circumstance, shall any Purchaser be liable for any amounts hereunder or pursuant
to claims related to any breach or alleged breach of this Agreement in excess of its Closing Subscription Amount.

 

(b)
Notwithstanding anything that may be expressed or implied in this Agreement, and notwithstanding the fact that one or more Purchasers
may be a corporation, partnership, limited liability company or trust, the Company and each Purchaser covenant, agree and acknowledge
that no recourse under this Agreement, any Transaction Document, or any other documents or instruments delivered in connection
with this Agreement shall be had against any current or future Affiliate, director, officer, employee, general or limited partner,
stockholder, manager, member, trustee or control persons (as such term is used in the Securities Act, as amended, and the rules
and regulations thereunder) of any Purchaser or any director, officer, employee, general or limited partner, stockholder, manager,
member, trustee or control persons (as such term is used in the Securities Act, as amended, and the rules and regulations thereunder),
Affiliate or assignee thereof (collectively, “Purchaser Related Parties”), whether by the enforcement of any
assessment or by any legal or equitable Proceeding, or by virtue of any statute, regulation or other 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 current or future officer, agent or employee of any Purchaser or any current or future director, officer, employee, general
or limited partner, stockholder, manager, member or trustee of any Purchaser or of any Affiliate or assignee thereof, as such
for any obligation of any Purchaser under this Agreement, any Transaction Document, or any other documents or instruments delivered
in connection with this Agreement for any claim based on, in respect of or by reason of such obligations or their creation.

 

    	 	31	 

    	 

    

 

6.14
Indemnification. The Company will indemnify each Purchaser Related Party to the full extent lawful against any and all
claims by any Person (including any stockholders of the Company), losses and expenses as incurred (including all reasonable fees
and disbursements of any such indemnitee’s counsel and other out-of-pocket expenses incurred in connection with the investigation
of and preparation for any such pending or threatened claims and any litigation or other Proceedings arising therefrom) arising
in connection with this Agreement, any of the other Transaction Documents, or any transactions contemplated hereby or thereby,
or in connection with any action or failure to take any action in connection therewith or any such indemnitee being a controlling
person of a Purchaser Related Party or any of its subsidiaries; provided, however, there shall be excluded from
such indemnification (x) any such claim, loss or expense to the extent that it is based upon any action or failure to act by such
indemnitee that is found in a final judicial determination to constitute gross negligence or intentional misconduct on such indemnitee’s
part and (y) any such claim, or loss or expense to the extent that it is based on such claim, brought by the Company against a
Purchaser (but not on behalf of the Company by any of its stockholders) for a breach of this Agreement by such Purchaser. The
Company will advance costs and expenses, including attorney’s fees, incurred by any such indemnitee in defending any such
claim in advance of the final disposition of such claim upon receipt of an undertaking by or on behalf of such indemnitee to repay
amounts so advanced if it shall ultimately be determined that such indemnitee is not entitled to be indemnified by the Company
pursuant to this Agreement.

 

6.15
Termination. This Agreement may be terminated and transactions contemplated hereby abandoned at any time prior to the Closing:
(i) by mutual written consent of the Company and each Purchaser or (ii) by either Purchaser if the Company or any of its Affiliates
institutes, directly or indirectly, any action, litigation or other Proceeding against (x) any Purchaser Related Parties in connection
with the transactions described in this Agreement or the Transaction Documents or (y) such Purchaser in connection with the transactions
described in this Agreement, other than in the case of clause (y), an action, litigation or other Proceeding seeking to enforce
this Agreement in accordance with its terms. Nothing in this Section 6.15 shall be deemed to release any party from any
liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to
impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the
other Transaction Documents, and Sections 6.13 and 6.14 shall survive the termination of this Agreement.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	32	 

    	 

    

 

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

 

	 	INTERPACE
                                         BIOSCIENCES, INC.
	 	 	 
		By:	 /s/
                                         Jack E. Stover 
	 		Name: Jack
                                                                                                                                                                                                                                                                                            E. Stover
	 		Title:
                                                                                                                                                                                                                                                                                            President                                          & Chief Executive Officer

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

[Signature
Page to Securities Purchase and Exchange Agreement]

 

    	 

    	 

    

 

	 	1315
    CAPITAL II, L.P.
	 	 
	 	By:
    1315 CAPITAL MANAGEMENT II, LLC, its General Partner
	 	 	 
	 	By:
    	 /s/ Adele C. Oliva 
	 		Name: Adele
    C. Oliva
	 	 	Title: Managing
    Member
	 	 	 
	 	Ampersand
    2018 Limited Partnership
	 	 
	 	By:
    AMP-18 Management Company Limited Partnership, its General Partner
	 	 	 
	 	By:
    AMP-18 MC LLC, its General Partner
	 	 	 
	 	By:	 /s/ Herbert H. Hooper 
	 		Name: Herbert
    H. Hooper
	 	 	Title: Managing
    Member

 

[Signature
Page to Securities Purchase and Exchange Agreement]

 

    	 

    	 

    

 

Schedule
I

 

	Purchaser	 	Series
    B Shares	 	Closing
    Subscription Amount
	1315
    capital II, L.P.	 	19,000	 	$19,000,000.00
	Ampersand
    2018 Limited Partnership	 	1,000	 	$1,000,000.00

 

    	 	 	 

    	 	 

    

 

Schedule
II

 

	Purchaser	 	Series
    A Shares to be Exchanged	 	Series
    B Shares to be Issued
	Ampersand
    2018 Limited Partnership	 	270	 	27,000

 

    	 	 	 

    	 	 

    

 

EXHIBITS

 

	A:
    	Certificate
    of Designation
	B:	Form
    of Investor Rights Agreement
	C:	Wire
    Instructions
	D-1:
    	Accredited
    Investor Questionnaire
	D-2:	Stock
    Certificate Questionnaire
	E:	Form
    of Secretary’s Certificate
	F:	Form
    of Officer’s Certificate

 

	Schedule
    A: 	Form
    of Opinion
	Schedule
    B: 	Subsidiaries

 

    	 	 	 

    	 	 

    

 

 EXHIBIT
A 

 

 Certificate
of Designation 

 

    	A-1

    	 

    

 

INTERPACE
BIOSCIENCES, INC.

CERTIFICATE OF DESIGNATION OF PREFERENCES, RIGHTS AND LIMITATIONS

 

OF

 

SERIES
B CONVERTIBLE PREFERRED STOCK

 

PURSUANT
TO SECTION 151 OF THE

DELAWARE GENERAL CORPORATION LAW

 

INTERPACE
BIOSCIENCES, INC., a Delaware corporation (the “Corporation”), in accordance with the provisions
of Section 103 of the Delaware General Corporation Law (the “DGCL”) does hereby certify that, in accordance
with Section 151 of the DGCL, the following resolution was duly adopted by the Board of Directors of the Corporation on January
[•], 2020:

 

RESOLVED,
pursuant to authority expressly set forth in the Certificate of Incorporation of the Corporation (the “Certificate
of Incorporation”), the issuance of a series of Preferred Stock designated as the Series B Convertible Preferred
Stock, par value $0.01 per share, of the Corporation is hereby authorized and the designation, number of shares, powers, preferences,
rights, qualifications, limitations and restrictions thereof (in addition to any provisions set forth in the Certificate of Incorporation
that are applicable to the Preferred Stock of all classes and series) are hereby fixed, and this Certificate of Designation of
Preferences, Rights and Limitations of Series B Convertible Preferred Stock is hereby approved as follows:

 

SERIES
B CONVERTIBLE PREFERRED STOCK

 

Section
1. Definitions. For the purposes hereof, the following terms shall have the following meanings:

 

“1315
Capital” means 1315 Capital II, L.P., a Delaware limited partnership, including its successors and assigns.

 

“Ampersand”
means Ampersand 2018 Limited Partnership, a Delaware limited partnership, including its successors and assigns.

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the
Securities Act. With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary basis by
the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser.

 

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

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Common
Stock” means the Corporation’s common stock, par value $0.01 per share.

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Series B Preferred
Stock in accordance with the terms hereof.

 

“Convertible
Securities” shall mean any evidences of indebtedness, shares or other securities directly or indirectly convertible
into or exchangeable for Common Stock, but excluding Options.

 

“Deemed
Liquidation” shall mean (a) a merger or consolidation in which (i) the Corporation is a constituent party or (ii)
a subsidiary of the Corporation is a constituent party and the Corporation issues shares of its capital stock pursuant to such
merger or consolidation, except any such merger or consolidation involving the Corporation or a subsidiary in which the shares
of capital stock of the Corporation outstanding immediately prior to such merger or consolidation continue to represent, or are
converted into or exchanged for shares of capital stock that represent, immediately following such merger or consolidation, at
least a majority, by voting power, of the capital stock of (1) the surviving or resulting corporation; or (2) if the surviving
or resulting corporation is a wholly owned subsidiary of another corporation immediately following such merger or consolidation,
the parent corporation of such surviving or resulting corporation; or (b) the sale, lease, transfer, exclusive license or other
disposition, in a single transaction or series of related transactions, by the Corporation or any subsidiary of the Corporation
of all or substantially all the assets of the Corporation and its subsidiaries taken as a whole, or the sale or disposition (whether
by merger, consolidation or otherwise) of one or more subsidiaries of the Corporation if substantially all of the assets of the
Corporation and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease,
transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Corporation.

 

“DGCL”
shall mean the Delaware General Corporation Law.

 

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

 

“Holder”
means any holder of Series B Preferred Stock.

 

“Issuance
Date” means January [•], 2020.

 

“Option”
shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible Securities.

 

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

 

“Preferred
Stock” means the Corporation’s preferred stock, par value $0.01 per share.

 

“Series
B Conversion Price” means an amount initially equal to six dollars ($6.00) (subject to appropriate adjustment in
the event of any stock dividend, stock split, combination or other similar recapitalization affecting such shares).

 

“Series
B Conversion Ratio” means, for each share of Series B Preferred Stock, the ratio obtained by dividing the Series
B Liquidation Amount of such share by the Series B Conversion Price.

 

“Series
B Liquidation Amount” has the meaning set forth in Section 5(a).

 

“Series
B Liquidation Value” means an amount equal to the Series B Liquidation Amount divided by the number of shares of
Series B Preferred Stock outstanding.

 

“Series
B Mandatory Conversion Price” means an amount equal to twelve dollars ($12.00).

 

“Stated
Value” means $1,000 per share.

 

“Trading
Day” means a day on which the Common Stock is traded for any period on a principal securities exchange or if the
Common Stock is not traded on a principal securities exchange, on a day that the Common Stock is traded on another securities
market on which the Common Stock is then being traded.

 

Section
2. Designation, Amount and Par Value; Assignment.

 

(a)
The Preferred Stock designated by this Certificate of Designation shall be designated as the Corporation’s Series B Convertible
Preferred Stock (the “Series B Preferred Stock”) and the number of shares so designated shall be 47,000.

 

(b)
The Corporation shall register shares of the Series B Preferred Stock, upon records to be maintained by the Corporation for that
purpose (the “Series B Preferred Stock Register”), in the name of the Holders thereof from time to time.
The Corporation may deem and treat the registered Holder of shares of Series B Preferred Stock as the absolute owner thereof for
the purpose of any conversion thereof and for all other purposes. Shares of Series B Preferred Stock may be issued solely in book-entry
form or, if requested by any Holder, such Holder’s shares may be issued in certificated form. The Corporation shall register
the transfer of any shares of Series B Preferred Stock in the Series B Preferred Stock Register, upon surrender of the certificates
(if applicable) evidencing such shares to be transferred, duly endorsed by the Holder thereof, to the Corporation at its address
specified herein. Upon any such registration or transfer, a new certificate (or book-entry notation, if applicable) evidencing
the shares of Series B Preferred Stock so transferred shall be issued to the transferee and a new certificate (or book-entry notation,
if applicable) evidencing the remaining portion of the shares not so transferred, if any, shall be issued to the transferring
Holder, in each case, within two (2) Business Days. The provisions of this Certificate of Designation are intended to be for the
benefit of all Holders from time to time and shall be enforceable by any such Holder.

 

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Section
3. Dividends. Dividends may be declared and paid on the Series B Preferred Stock from funds lawfully available therefor
as and when determined by the Corporation’s Board of Directors. The Corporation shall not declare, pay or set aside any
dividends on shares of any other class or series of capital stock of the Corporation (other than dividends on shares of Common
Stock payable in shares of Common Stock) unless the Holders of the Series B Preferred Stock then outstanding shall first receive,
or simultaneously receive, a dividend on each outstanding share of Series B Preferred Stock in an amount at least equal to (A)
in the case of a dividend on Common Stock or any class or series that is convertible into Common Stock, that dividend per share
of Series B Preferred Stock as would equal the product of (1) the dividend payable on each share of such class or series determined,
if applicable, as if all shares of such class or series had been converted into Common Stock and (2) the number of shares of Common
Stock issuable upon conversion of a share of Series B Preferred Stock pursuant to Section 6, in each case calculated on the record
date for determination of holders entitled to receive such dividend or (B) in the case of a dividend on any class or series that
is not convertible into Common Stock, at a rate per share of Series B Preferred Stock determined by (1) dividing the amount of
the dividend payable on each share of such class or series of capital stock by the original issuance price of such class or series
of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar
recapitalization affecting such shares) and (2) multiplying such fraction by an amount equal to the Stated Value; provided that,
if the Corporation declares, pays or sets aside, on the same date, a dividend on shares of more than one class or series of capital
stock of the Corporation, the dividend payable to the Holders of Series B Preferred Stock pursuant to this Section 3 shall be
calculated based upon the dividend on the class or series of capital stock that would result in the highest Series B Preferred
Stock dividend.

 

Section
4. Voting Rights.

 

(a)
Series B Preferred Stock Voting Rights. On any matter presented to the stockholders of the Corporation for their action
or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu of meeting),
each Holder of outstanding shares of Series B Preferred Stock shall be entitled to cast the number of votes equal to the number
of whole shares of Common Stock into which the shares of Series B Preferred Stock held by such Holder are convertible as of the
record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions
of this Certificate of Designation, Holders of Series B Preferred Stock shall vote together with the holders of Common Stock as
a single class and on an as-converted to Common Stock basis.

 

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(b)
Directors.

 

(i)
For so long as Ampersand holds at least sixty percent (60%) of the Series B Preferred Stock held by Ampersand as of the Issuance
Date, Ampersand shall be entitled to elect two (2) directors of the Corporation, provided that one (1) director elected by Ampersand
must qualify as an “independent director” under Rule 5605(a)(2) of the of the listing rules of the Nasdaq Stock Market
(or any successor rule) or under any similar rule promulgated by such other exchange on which the Corporation’s securities
are then listed or designated. For so long as Ampersand holds less than sixty percent (60%) of the Series B Preferred Stock held
by Ampersand as of the Issuance Date but at least forty percent (40%) of the Series B Preferred Stock held by Ampersand as of
the Issuance Date, Ampersand shall be entitled to elect one (1) director of the Corporation.

 

(ii)
For so long as 1315 Capital holds at least sixty percent (60%) of the Series B Preferred Stock held by 1315 Capital as of the
Issuance Date, 1315 Capital shall be entitled to elect two (2) directors of the Corporation, provided that one (1) director elected
by 1315 Capital must qualify as an “independent director” under Rule 5605(a)(2) of the of the listing rules of the
Nasdaq Stock Market (or any successor rule) or under any similar rule promulgated by such other exchange on which the Corporation’s
securities are then listed or designated. For so long as 1315 Capital holds less than sixty percent (60%) of the Series B Preferred
Stock held by 1315 Capital as of the Issuance Date but at least forty percent (40%) of the Series B Preferred Stock held by 1315
Capital as of the Issuance Date, 1315 Capital shall be entitled to elect one (1) director of the Corporation.

 

(iii)
The holders of record of the shares of Common Stock and of any other class or series of voting stock (including the Series B Preferred
Stock), exclusively and voting together as a single class, shall, subject to the rights of any additional series of Preferred
Stock that may be established from time to time, be entitled to elect the balance of the total number of directors of the Corporation.
At any meeting held for the purpose of electing a director, the presence in person or by proxy of the holders of a majority of
the outstanding shares of the class or series entitled to elect such director shall constitute a quorum for the purpose of electing
such director.

 

(iv)
Any director elected pursuant to this Section 4(b) may be removed without cause by, and only by, the affirmative vote of the holders
of the shares of the class or series of capital stock entitled to elect such director or directors, given either at a special
meeting of such stockholders duly called for that purpose or pursuant to a written consent of stockholders. A vacancy in any directorship
filled by the holders of any class or series shall be filled only by vote or written consent in lieu of a meeting of the holders
of such class or series or by any remaining director or directors elected by the holders of such class or series pursuant to this
Section 4(b).

 

(c)
Protective Provisions. Notwithstanding anything in this Certificate of Designation to the contrary, for so long as any
shares of the Series B Preferred Stock remain outstanding, the following actions may only be taken by the Corporation or any of
its direct or indirect subsidiaries with the written consent of Holders representing at least seventy-five percent (75%) of the
outstanding shares of Series B Preferred Stock (voting as a single class):

 

(i)
amend, waive, alter or repeal the preferences, rights, privileges or powers of the Holders of the Series B Preferred Stock;

 

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(ii)
amend, alter or repeal any provision of this Certificate of Designation in a manner that is adverse to the Holders of Series B
Preferred Stock;

 

(iii)
authorize, create or issue any equity securities senior to or pari passu with the Series B Preferred Stock; or

 

(iv)
increase or decrease the number of directors constituting the Board of Directors of the Corporation.

 

(d)
Additional Protective Provisions. Notwithstanding anything in this Certificate of Designation to the contrary, for so long
as at least thirty percent (30%) of the Series B Preferred Stock outstanding as of the Issuance Date remains outstanding (subject
to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization affecting
such shares), the following actions may only be taken by the Corporation or any of its direct or indirect subsidiaries with the
written consent with the consent of Holders representing at least seventy-five percent (75%) of the outstanding shares of Series
B Preferred Stock (voting as a single class):

 

(i)
(1) authorize, create or issue any debt securities for borrowed money or funded debt pursuant to which the Corporation or any
of its direct or indirect subsidiaries issues shares, warrants or any other convertible security in the same transaction or a
series of related transactions; or (2) authorize, create or issue any debt securities for borrowed money or funded debt pursuant
to which the Corporation or any of its direct or indirect subsidiaries does not issue shares, warrants or any other convertible
security in the same transaction or a series of related transactions exceeding $4.5 million initially (the “Debt Threshold”),
excluding, however: (i) any capitalized and operating leases entered into by the Corporation or its direct or indirect subsidiaries
in the ordinary course of business consistent with past practice and (ii) any debt incurred by the Corporation pursuant to the
terms of the Corporation’s existing term loan and credit facility with Silicon Valley Bank; provided, that if the aggregate
consolidated revenue recognized by the Corporation and its direct or indirect subsidiaries (the “Combined Revenue”)
as reported by the Corporation on Form 10-K as filed with the Commission for any fiscal year ending after the Issuance Date exceeds
$45 million dollars, the Debt Threshold for the following fiscal year shall increase to an amount equal to: (x) ten percent (10%);
multiplied by (y) the Combined Revenue as reported by the Corporation on Form 10-K as filed with the Commission for the previous
fiscal year;

 

(ii)
merge with or acquire all or substantially all of the assets of one or more other companies or entities with a value in excess
of $20 million (the “Acquisition Threshold”); provided, that the Acquisition Threshold shall increase
on a straight line basis to an amount up to $40 million, but in no event greater than $40 million, to the extent Combined Revenue
for the then-most recently completed quarterly period as reported by the Corporation on Form 10-K as filed with the Commission
or Form 10-Q as filed with the Commission, as applicable, falls between the Combined Revenue for the Corporation’s fiscal
quarter ended on September 30, 2019, and 100% greater than the Combined Revenue for the Corporation’s fiscal quarter ended
on September 30, 2019;

 

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(iii)
materially change the nature of the business of the Corporation or any of its direct or indirect subsidiaries as it is proposed
to be conducted as of the Issuance Date.;

 

(iv)
consummate any Liquidation (as defined below);

 

(v)
transfer, by sale, exclusive license or otherwise, material intellectual property rights of the Corporation or any of its direct
or indirect subsidiaries, other than licenses, transfers or sales of products accomplished in the ordinary course of business
consistent with past practice;

 

(vi)
declare or pay any cash dividend or make any cash distribution on any equity interests of the Corporation other than the Series
B Preferred Stock;

 

(vii)
repurchase or redeem any shares of capital stock of the Corporation, except for: (1) the redemption of the Series B Preferred
Stock pursuant to Section 5(d); or (2) repurchases of Common Stock under agreements previously approved by the Board of Directors
of the Corporation with employees, consultants, advisors or others who performed services for the Corporation or any direct or
indirect subsidiary in connection with the cessation of such employment or service;

 

(viii)
(1) incur any additional individual debt, indebtedness for borrowed money or other additional liabilities pursuant to which the
Corporation or any of its direct or indirect subsidiaries issues shares, warrants or any other convertible security in the same
transaction or a series of related transactions; or (2) incur any individual debt, indebtedness for borrowed money or other liabilities
pursuant to which the Corporation or any of its direct or indirect subsidiaries does not issue shares, warrants or any other convertible
security in the same transaction or a series of related transactions in excess of the Debt Threshold (in each case, excluding:
(x) any capitalized and operating leases entered into by the Corporation or its direct or indirect subsidiaries in the ordinary
course of business consistent with past practice; (y) any debt incurred by the Corporation pursuant to the terms of the Corporation’s
existing term loan and credit facility with Silicon Valley Bank; and (z) any purchase money financing in connection with the acquisition
of equipment or otherwise);

 

(ix)
change any accounting methods or practices of the Corporation or any of its direct or indirect subsidiaries, except for those
changes required by GAAP or applicable regulatory agencies or authorities, including but not limited to the Securities and Exchange
Commission and the Financial Accounting Standards Board, in each case, as consented to by the Corporation’s independent
auditors; or

 

(x)
conduct a public offering of Common Stock registered with the Securities and Exchange Commission, including any at-the-market
offering of the Corporation’s Common Stock.

 

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Section
5. Liquidation.

 

(a)
In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation or Deemed Liquidation (a
“Liquidation”), the Holders of shares of Series B Preferred Stock then outstanding shall be entitled
to be paid out of the assets of the Corporation available for distribution to its stockholders (on a pari passu basis with the
holders of any class or series of Preferred Stock ranking on liquidation on a parity with the Series B Preferred Stock), and before
any payment shall be made to the holders of Common Stock or any other class or series of Preferred Stock ranking on liquidation
junior to the Series B Preferred Stock by reason of their ownership thereof, an amount per share of Series B Preferred Stock equal
to the greater of (i) the Stated Value of such share of Series B Preferred Stock, plus any dividends declared but unpaid thereon,
or (ii) such amount per share as would have been payable had each such share been converted into Common Stock pursuant to Section
6 immediately prior to such Liquidation, (the amount payable in respect of shares of Series B Preferred Stock pursuant to this
sentence is hereinafter referred to as the “Series B Liquidation Amount”). If upon any such Liquidation,
the assets of the Corporation available for distribution to its stockholders shall be insufficient to pay the Holders of shares
of Series B Preferred Stock and any series of Preferred Stock ranking on liquidation on a parity with the Series B Preferred Stock
the full amount to which they shall be entitled under this Section 5(a), the Holders of shares of Series B Preferred Stock and
any series of Preferred Stock ranking on liquidation on a parity with the Series B Preferred Stock shall share ratably in any
distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable
in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid
in full.

 

(b)
In the event of any Liquidation, after the payment of all preferential amounts required to be paid to the Holders of shares of
Series B Preferred Stock and any other series of Preferred Stock ranking on liquidation senior to the Common Stock, the remaining
assets of the Corporation available for distribution to its stockholders shall be distributed among the holders of shares of Common
Stock, pro rata based on the number of shares held by each such holder.

 

(c)
The Corporation shall not have the power to effect a Deemed Liquidation unless the definitive agreement regarding such transaction
provides that the consideration payable to the stockholders of the Corporation shall be allocated among the holders of capital
stock of the Corporation in accordance with Section 5 of this Certificate of Designation.

 

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(d)
If following a Deemed Liquidation the Corporation does not effect a dissolution of the Corporation under the General Corporation
Law within sixty (60) days after such Deemed Liquidation, then (i) the Corporation shall send a written notice to each Holder
of Series B Preferred Stock no later than the sixtieth (60th) day after the Deemed Liquidation advising such Holders of their
right (and the requirements to be met to secure such right) pursuant to the terms of the following clause (ii) to require the
redemption of such shares of Series B Preferred Stock, and (ii) if the Holders of at least seventy-five percent (75%) of the then
outstanding shares of Series B Preferred Stock so request in a written instrument delivered to the Corporation not later than
sixty (60) days after receipt of such notice, the Corporation shall use the consideration received by the Corporation for such
Deemed Liquidation (net of any retained liabilities associated with the assets sold or technology licensed, as determined in good
faith by the Board of Directors of the Corporation) (the “Net Proceeds”), to the extent legally available
therefor, on the one hundred fiftieth (150th) day after such Deemed Liquidation, to redeem all outstanding shares of Series B
Preferred Stock at a price per share equal to the Series B Liquidation Value. Notwithstanding the foregoing, in the event of a
redemption pursuant to the preceding sentence, if the Net Proceeds are not sufficient to redeem all outstanding shares of Series
B Preferred Stock and of any other series of Preferred Stock ranking on redemption on parity with the Series B Preferred Stock
that is required to then be redeemed, or if the Corporation does not have sufficient lawfully available funds to effect such redemption,
the Corporation shall first redeem a pro rata portion of each Holder’s shares of Series B Preferred Stock and any such other
series of Preferred Stock ranking on redemption on a parity with the Series B Preferred Stock to the fullest extent of such Net
Proceeds or such lawfully available funds, as the case may be, based on the respective amounts which would otherwise be payable
in respect of the shares to be redeemed if the legally available funds were sufficient to redeem all such shares. If upon any
such redemption, the assets of the Corporation lawfully available to effect such redemption shall be insufficient to pay the Holders
of shares of Series B Preferred Stock and any series of Preferred Stock ranking on redemption on a parity with the Series B Preferred
Stock, the full amount to which they shall be entitled under this Section 5(d), the Holders of shares of Series B Preferred Stock
and any series of Preferred Stock ranking on redemption on a parity with the Series B Preferred Stock shall share ratably in any
distribution of the assets lawfully available for such redemption in proportion to the respective amounts which would otherwise
be payable in respect of the shares held by them upon such redemption if all amounts payable on or with respect to such shares
were paid in full, and shall redeem the remaining shares to have been redeemed as soon as practicable after the Corporation has
funds legally available therefor. Prior to the distribution or redemption provided for in this Section 5(d), the Corporation shall
not expend or dissipate the consideration received for such Deemed Liquidation, except to discharge expenses incurred in connection
with such Deemed Liquidation or in the ordinary course of business consistent with past practice.

 

(e)
The amount deemed paid or distributed to the holders of capital stock of the Corporation upon any Liquidation Event shall be the
cash or the value of the property, rights or securities paid or distributed to such holders by the Corporation or the acquiring
person, firm or other entity; provided, that the value of any such non-cash property, rights or securities shall be determined
in good faith by the Board of Directors of the Corporation.

 

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Section
6. Conversion of Series B Preferred Stock into Common Stock.

 

(a)
Conversion of Series B Preferred Stock into Common Stock at Option of Holder.

 

Subject
to Section 6(c) below, each share of Series B Preferred Stock shall be convertible, at any time and from time to time from and
after the Issuance Date, at the option of the Holder thereof, into a number of shares of Common Stock equal to the product of
the Series B Conversion Ratio and the number of shares of Series B Preferred Stock to be converted. Holders shall effect conversions
of Series B Preferred Stock into Common Stock by providing the Corporation with the form of conversion notice attached hereto
as Annex A (a “Notice of Conversion”), duly completed and executed. Provided the Corporation’s
transfer agent is participating in the Depository Trust Corporation (“DTC”) Fast Automated Securities
Transfer program, the Notice of Conversion may specify, at the Holder’s election, whether the applicable Conversion Shares
shall be credited to the DTC participant account nominated by the Holder through DTC’s Deposit Withdrawal Agent Commission
system (a “DWAC Delivery”). The “Optional Conversion Date”, or the date on
which a conversion shall be deemed effective, shall be defined as the Trading Day after the Trading Date that the Notice of Conversion,
completed and executed, is sent by facsimile or other electronic transmission to, and received during regular business hours by,
the Corporation; provided that the original certificate(s) (if any) representing such shares of Series B Preferred Stock being
converted, duly endorsed, and the accompanying Notice of Conversion, are received by the Corporation within two (2) Trading Days
thereafter. In all other cases, the Optional Conversion Date shall be defined as the Trading Day after the Trading Date on which
the original shares of Series B Preferred Stock being converted, duly endorsed, and the accompanying Notice of Conversion, are
received by the Corporation.

 

(b)
Mandatory Conversion of Series B Preferred Stock into Common Stock. If the Corporation consummates the sale of shares of
Common Stock to the public in a firm-commitment underwritten public offering pursuant to an effective registration statement under
the Securities Act of 1933, as amended, pursuant to which (A) the price per share of the Common Stock in such offering is at least
the Series B Mandatory Conversion Price (subject to appropriate adjustment in the event of any stock dividend, stock split, combination
or other similar recapitalization affecting such shares) and (B) such offering results in at least $25 million in proceeds, net
of the underwriting discount and commissions, to the Corporation and the Common Stock continues to be listed for trading on the
Nasdaq Capital Market or another Exchange such as NYSE (such offering, an “Underwritten Offering”, and
the date of the consummation of such Underwritten Offering is referred to herein as the “Mandatory Conversion Date”
and together with each Optional Conversion Date, a “Conversion Date”), (i) all outstanding shares of
Series B Preferred Stock shall automatically be converted into shares of Common Stock, at the then effective Series B Conversion
Ratio and (ii) such shares may not be reissued by the Corporation. The provisions of Section 6(c) shall apply, with such necessary
changes in the details thereof as are necessitated by the context, to the conversion of shares of Series B Preferred Stock into
Common Stock pursuant to this Section 6(b). Notwithstanding the foregoing, an Underwritten Offering shall not include, and shares
of Series B Preferred Stock will not automatically convert to shares of Common Stock upon the consummation of, any Underwritten
Offering that includes the issuance of warrants to purchase capital stock of the Corporation or any other Convertible Security.

 

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(c)
Mechanics of Conversion of Series B Preferred Stock into Common Stock.

 

(i)
Delivery of Certificate or Electronic Issuance Upon Conversion. Not later than three (3) Trading Days after the applicable
Conversion Date (the “Share Delivery Date”), the Corporation shall electronically transfer the number
of Conversion Shares set forth in a Notice of Conversion being acquired upon the conversion of shares of Series B Preferred Stock
by crediting the DTC participant account nominated by the Holder through DTC’s DWAC system. If in the case such shares are
not electronically delivered to or as directed by, the applicable Holder by the Share Delivery Date, the applicable Holder shall
be entitled to elect to rescind such Notice of Conversion by written notice to the Corporation at any time on or before its receipt
of such certificate or certificates for Conversion Shares or electronic receipt of such shares, as applicable, in which event
the Corporation shall promptly return to such Holder any original Series B Preferred Stock certificate delivered to the Corporation
and such Holder shall promptly direct the return of any shares of Common Stock delivered to the Holder through the DWAC system,
representing the shares of Series B Preferred Stock unsuccessfully tendered for conversion to the Corporation.

 

(ii)
Obligation Absolute. Subject to Holder’s right to rescind a Notice of Conversion pursuant to Section 6(c)(i) above,
the Corporation’s obligation to issue and deliver the Conversion Shares upon conversion of Series B Preferred Stock in accordance
with the terms hereof are absolute and unconditional, irrespective of any action or inaction by a Holder to enforce the same,
any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce
the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such Holder or
any other Person of any obligation to the Corporation or any violation or alleged violation of law by such Holder or any other
Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Corporation to such Holder
in connection with the issuance of such Conversion Shares. Nothing herein shall limit a Holder’s right to pursue actual
damages for the Corporation’s failure to deliver Conversion Shares within the period specified herein and such Holder shall
have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief; provided that Holder shall not receive duplicate damages for the Corporation’s
failure to deliver Conversion Shares within the period specified herein. The exercise of any such rights shall not prohibit a
Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

 

(iii)
Compensation for Buy-In on Failure to Timely Deliver Shares Upon Conversion. If the Corporation fails to effect a DWAC
Delivery that represents shares of Common Stock by the Share Delivery Date pursuant to Section 6(c)(i) (other than a failure caused
by incorrect or incomplete information provided by Holder to the Corporation), and if after such Share Delivery Date such Holder
is required to or otherwise purchases (in an open market transaction or otherwise), shares of Common Stock to deliver in satisfaction
of a sale by such Holder of the Conversion Shares which such Holder was entitled to receive upon the conversion relating to such
Share Delivery Date (a “Buy-In”), then the Corporation shall (A) pay in cash to such Holder (in addition
to any other remedies available to or elected by such Holder) the amount by which (x) such Holder’s total purchase price
(including any brokerage commissions) for the shares of Common Stock so purchased exceeds (y) the product of (1) the aggregate
number of shares of Common Stock that such Holder was entitled to receive from the conversion at issue multiplied by (2) the actual
sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions)
and (B) at the option of such Holder, either reissue (if surrendered) the shares of Series B Preferred Stock equal to the number
of shares of Series B Preferred Stock submitted for conversion or deliver to such Holder the number of shares of Common Stock
that would have been issued if the Corporation had timely complied with its delivery requirements under Section 6(c)(i). For example,
if a Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted
conversion of shares of Series B Preferred Stock with respect to which the actual sale price (including any brokerage commissions)
giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence, the Corporation
shall be required to pay such Holder $1,000. The Holder shall provide the Corporation written notice, within three (3) Trading
Days after the occurrence of a Buy-In, indicating the amounts payable to such Holder in respect of such Buy-In together with applicable
confirmations and other evidence reasonably requested by the Corporation. Nothing herein shall limit a Holder’s right to
pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Corporation’s failure to timely effect a DWAC Delivery representing shares
of Common Stock upon conversion of the shares of Series B Preferred Stock as required pursuant to the terms hereof; provided,
however, that the Holder shall not be entitled to both (i) require the reissuance of the shares of Series B Preferred Stock submitted
for conversion for which such conversion was not timely honored and (ii) receive the number of shares of Common Stock that would
have been issued if the Corporation had timely complied with its delivery requirements under Section 6(c)(i).

 

    	A-12

    	 

    

 

(d)
Reservation of Shares Issuable Upon Conversion. The Corporation covenants that it will, at all times reserve and keep available
out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Series B Preferred
Stock, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holders of the Series
B Preferred Stock, not less than such aggregate number of shares of the Common Stock as shall be issuable (taking into account
the adjustments of Section 7) upon the conversion of all outstanding shares of Series B Preferred Stock. The Corporation covenants
that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid, non-assessable
and free and clear of all liens and other encumbrances.

 

(e)
Fractional Shares. No fractional shares or scrip representing fractional shares of Common Stock shall be issued upon the
conversion of the Series B Preferred Stock. As to any fraction of a share of Common Stock which a Holder would otherwise be entitled
to receive upon such conversion, the Corporation shall pay a cash adjustment in respect of such final fraction in an amount equal
to such fraction multiplied by the Series B Conversion Price.

 

(f)
Transfer Taxes. The issuance of book entry notations for shares of the Common Stock upon conversion of the Series B Preferred
Stock shall be made without charge to any Holder for any documentary stamp or similar taxes that may be payable in respect of
the issue of such book entry notation, provided that the Corporation shall not be required to pay any tax that may be payable
in respect of any transfer involved in the issuance of such book entry notation upon conversion in a name other than that of the
registered Holder(s) of such shares of Series B Preferred Stock, and the Corporation shall not be required to issue such book
entry notation unless or until the Person or Persons requesting the issuance thereof shall have paid to the Corporation the amount
of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.

 

(g)
Status as Stockholder. Upon each Conversion Date and Mandatory Conversion Date: (i) the shares of Series B Preferred Stock
being converted shall be deemed converted into shares of Common Stock; and (ii) the Holder’s rights as a holder of such
converted shares of Series B Preferred Stock shall cease and terminate, excepting only the right to receive book entry notations
for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder
because of a failure by the Corporation to comply with the terms of this Certificate of Designation. In all cases, the Holder
shall retain all of its rights and remedies for the Corporation’s failure to convert Series B Preferred Stock.

 

    	A-13

    	 

    

 

Section
7. Certain Adjustments.

 

(a)
Stock Dividends and Stock Splits. If the Corporation, at any time while any shares of Series B Preferred Stock are outstanding:
(i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock with respect to
the then outstanding shares of Common Stock; (ii) subdivides outstanding shares of Common Stock into a larger number of shares;
or (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares,
then the Series B Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common
Stock (excluding any treasury shares of the Corporation) outstanding immediately before such event and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such event (excluding any treasury shares of the Corporation).
Any adjustment made pursuant to this Section 7(a) shall become effective immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date
in the case of a subdivision or combination.

 

(b)
Adjustments for Other Dividends and Distributions. In the event the Corporation at any time or from time to time after
the Issuance Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive,
a dividend or other distribution payable in securities of the Corporation (other than a distribution of shares of Common Stock
in respect of outstanding shares of Common Stock) or in other property, then and in each such event the Holders of Series B Preferred
Stock shall receive, simultaneously with the distribution to the holders of Common Stock, a dividend or other distribution of
such securities or other property in an amount equal to the amount of such securities or other property as they would have received
if all outstanding shares of Series B Preferred Stock had been converted into Common Stock on the date of such event.

 

(c)
Adjustment for Merger or Reorganization, etc. Subject to the provisions of Section 5, if there shall occur any reorganization,
recapitalization, reclassification, consolidation or merger involving the Corporation in which the Common Stock (but not the Series
B Preferred Stock) is converted into or exchanged for securities, cash or other property (other than a transaction covered by
Section 7(a) or Section 7(b)), then, following any such reorganization, recapitalization, reclassification, consolidation or merger,
each share of Series B Preferred Stock shall thereafter be convertible in lieu of the Common Stock into which it was convertible
prior to such event into the kind and amount of securities, cash or other property which a holder of the number of shares of Common
Stock of the Corporation issuable upon conversion of one share of Series B Preferred Stock immediately prior to such reorganization,
recapitalization, reclassification, consolidation or merger would have been entitled to receive pursuant to such transaction;
and, in such case, appropriate adjustment (as determined in good faith by the Board of Directors of the Corporation) shall be
made in the application of the provisions in this Certificate of Designation with respect to the rights and interests thereafter
of the Holders of the Series B Preferred Stock, to the end that the provisions set forth in this Certificate of Designation (including
provisions with respect to changes in and other adjustments of the Series B Conversion Price) shall thereafter be applicable,
as nearly as reasonably may be, in relation to any securities or other property thereafter deliverable upon the conversion of
the Series B Preferred Stock.

 

    	A-14

    	 

    

 

(d)
Calculations. All calculations under this Certificate of Designation shall be made to the nearest cent or the nearest 1/100th
of a share, as the case may be. For purposes of this Section 7, the number of shares of Common Stock deemed to be issued and outstanding
as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation)
issued and outstanding.

 

(e)
Notice to the Holders.

 

(i)
Adjustment to Series B Conversion Price. Whenever the Series B Conversion Price is adjusted pursuant to any provision of
this Section 7, the Corporation shall promptly deliver to each Holder a notice setting forth the Series B Conversion Ratio after
such adjustment and setting forth a brief statement of the facts requiring such adjustment.

 

(ii)
Other Notices. If (A) the Corporation shall declare a dividend (or any other distribution in whatever form) on the Common
Stock, (B) the Corporation shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Corporation shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Corporation shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Corporation is a party,
any Liquidation, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property,
or (E) consent of the Holders of Series B Preferred Stock is required pursuant to Section 4(c) or Section 4(d), then, in each
case, the Corporation shall cause to be filed at each office or agency maintained for the purpose of conversion of the shares
of Series B Preferred Stock, and shall cause to be delivered to each Holder at its last address as it shall appear upon the stock
books of the Corporation, at least ten (10) calendar days prior to the applicable record or effective date hereinafter specified,
a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights
or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled
to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer, Liquidation or share exchange is expected to become effective or close, and the date as
of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock
for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share
exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the
validity of the corporate action required to be specified in such notice.

 

    	A-15

    	 

    

 

Section
8. Miscellaneous.

 

(a)
Lost or Mutilated Stock Certificates. If a Holder’s certificate representing shares of Series B Preferred Stock shall
be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver, if requested by the Holder, in exchange and
substitution for and upon cancellation of a mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed
certificate, a new certificate for the shares of Series B Preferred Stock so mutilated, lost, stolen or destroyed, but only upon
receipt of evidence of such loss, theft or destruction of such certificate, and of the ownership thereof, reasonably satisfactory
to the Corporation and, in each case, customary and reasonable indemnity, if requested, without the requirement to post a bond.
Applicants for a new certificate under such circumstances shall also comply with such other reasonable regulations and procedures
and pay such other reasonable third-party costs as the Corporation may prescribe, without the requirement to post a bond.

 

(b)
Waiver. Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate of Designation shall
not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of
this Certificate of Designation or a waiver by any other Holders. The failure of the Corporation or a Holder to insist upon strict
adherence to any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive
that party (or any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this
Certificate of Designation. Any waiver by the Corporation or a Holder must be in writing. Notwithstanding any provision in this
Certificate of Designation to the contrary, any provision contained herein and any right of the Holders of Series B Preferred
Stock granted hereunder may be waived as to all shares of Series B Preferred Stock (and the Holders thereof) upon the written
consent of the Holders of at least seventy-five percent (75%) of the shares of Series B Preferred Stock (voting as a single class)
then outstanding, unless a higher percentage is required by the DGCL, in which case the written consent of the Holders of not
less than such higher percentage shall be required.

 

(c)
Severability. If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of
this Certificate of Designation shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it
shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount
deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall
automatically be lowered to equal the maximum rate of interest permitted under applicable law.

 

(d)
Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day.

 

(e)
Headings. The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation
and shall not be deemed to limit or affect any of the provisions hereof.

 

(f)
Status of Converted Series B Preferred Stock. If any shares of Series B Preferred Stock shall be converted or redeemed
by the Corporation, such shares shall resume the status of authorized but unissued shares of preferred stock and shall no longer
be designated as Series B Preferred Stock.

 

********************

 

    	A-16

    	 

    

 

IN
WITNESS WHEREOF, Interpace Biosciences, Inc., has caused this Certificate of Designation of Preferences, Rights and Limitations
of Series B Convertible Preferred Stock to be executed by its duly authorized officer this __ day of January, 2020.

 

	 	INTERPACE
    BIOSCIENCES, INC.
	 	 	 
	 	By:	                       
	 	Name:	Jack
    E. Stover 
	 	Title:	President
    & Chief Executive Officer

 

[Signature Page to Certificate of Designation]

 

    	 

    	 

    

 

ANNEX
A

 

NOTICE
OF CONVERSION

 

(TO
BE EXECUTED BY THE REGISTERED HOLDER

IN
ORDER TO CONVERT SHARES OF SERIES B PREFERRED STOCK)

 

The
undersigned Holder hereby irrevocably elects to convert the number of shares of Series B Preferred Stock indicated below, represented
by stock certificate No(s). _____ (the “Preferred Stock Certificates”), into shares of common
stock, par value $0.01 per share (the “Common Stock”), of Interpace Biosciences, Inc., a Delaware corporation
(the “Corporation”), as of the date written below. If securities are to be issued in the name of a person
other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto. Capitalized terms utilized
but not defined herein shall have the meaning ascribed to such terms in that certain Certificate of Designation of Preferences,
Rights and Limitations of Series B Convertible Preferred Stock (the “Certificate of Designation”) filed
by the Corporation with the Delaware Secretary of State on January [•], 2020.

 

Conversion
calculations:

 

	Date to Effect Conversion: 	 	 
	 	 	 
	Number of shares of Series B Preferred Stock owned prior to Conversion: 	 	 
	 	 	 
	Number of shares of Series B Preferred Stock to be Converted: 	 	 
	 	 	 
	Number of shares of Common Stock to be Issued: 	 	 
	 	 	 
	Address for delivery of physical certificates: 	 	 
	 	 	 
	Or	 	 
	 	 	 
	for DWAC Delivery:	 	 
	 	 	 
	DWAC Instructions:	 	 
	 	 	 
	Broker no:	 	 
	 	 	 
	Account no:	 	 

 

	 	HOLDER
	 	 	 
	 	By:	                   
	 	Name:	 
	 	Title:	 
	 	Date:	

 

    	 

    	 

    

 

 Exhibit
B 

 

 Form
of Investor Rights Agreement 

 

    	B-1

    	 

    

 

AMENDED
AND RESTATED INVESTOR RIGHTS AGREEMENT

 

THIS
AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT (this “Agreement”) is entered into as of January [●],
2020, by and among Interpace Biosciences, Inc., a Delaware corporation (the “Company”), 1315 Capital
II, L.P., a Delaware limited partnership (including its successors and assigns, “1315 Capital”) and
Ampersand 2018 Limited Partnership, a Delaware limited partnership (including its successors and assigns, “Ampersand”
and, together with 1315 Capital, the “Investors” and each an “Investor”).

 

WHEREAS,
the Company and the Investors are parties to a Securities Purchase and Exchange Agreement, dated as of January 10, 2020 (the “Securities
Purchase Agreement”), pursuant to which on the date hereof (a) the Company issued, sold and delivered to the Investors,
and the Investors purchased and acquired from the Company, pursuant to the terms and subject to the conditions set forth therein,
an aggregate of 20,000 shares of the Company’s Series B Convertible Preferred Stock, par value $0.01 per share (the “Series
B Shares”) and (b) the Company issued and delivered 27,000 Series B Shares to Ampersand in exchange for Ampersand’s
270 shares of the Company’s Series A Convertible Preferred Stock, par value $0.01 per share (the “Series A Shares”),
representing all issued and outstanding Series A Shares, pursuant to the terms and subject to the conditions set forth therein;

 

WHEREAS,
Series B Shares have the designation, powers, preferences and rights, and the qualifications, limitations and restrictions, as
specified in the Form of Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock
(the “Certificate of Designation”), attached as an exhibit to the Securities Purchase Agreement.

 

WHEREAS,
the Series B Shares are convertible into shares of the Company’s common stock, par value $0.01 per share (“Common
Shares”) pursuant to the Certificate of Designation; and

 

WHEREAS,
the Company and the Investors desire to amend and restate that certain Investor Rights Agreement, dated as of July 15, 2019, among
the Company and Ampersand in order to establish certain terms and conditions concerning the rights of and restrictions on the
Investors with respect to the ownership of the Series B Shares and other capital stock of the Company, and it is a condition of
the closing of the transactions contemplated by the Securities Purchase Agreement that the Company and the Investors execute and
deliver this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.
DEFINITIONS. The following capitalized terms used herein have the following meanings:

 

“1315
Capital Confidentiality Agreement” means that certain Non-Disclosure Agreement, dated as of November 22, 2019, between
the Company and 1315 Capital LLC.

 

“Addendum
Agreement” is defined in Section 9.2.

 

    	B-2

    	 

    

 

“Affiliate”
means, with respect to any specified Person, any other Person directly or indirectly controlling or controlled by, or under direct
or indirect common control with, such specified Person; provided that the following Persons shall not be deemed to be Affiliates
of any of the Investors or any of their respective Affiliates: (a) the Company and its subsidiaries and (b) any portfolio company
in which any of the Investors or any of their respective Affiliates has an investment (whether debt or equity) or any of such
portfolio companies’ controlled Affiliates, so long as, in the case of this clause (b), such Person shall not have been
acting on behalf of or at the direction of any of the Investors or any of their respective Affiliates or received any Confidential
Information from or on behalf of any of the Investors; provided, however, clause (b) shall not apply to the use of the word “Affiliate”
in the definition of Investor Parties. For the purposes of this definition, “control”, when used with
respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

 

“Ampersand
Confidentiality Agreement” means that certain Letter Agreement, dated as of February 15, 2019, between the Company
and Ampersand Management, LLC.

 

“as
converted basis” means with respect to the outstanding Common Shares as of any date, all outstanding Common Shares
calculated on a basis in which all Common Shares issuable upon conversion of the outstanding Series B Shares (at the “Series
B Conversion Price” in effect on such date as set forth in the Certificate of Designation), are assumed to be outstanding
as of such date.

 

Any
Person shall be deemed to “beneficially own”, to have “beneficial ownership”
of, or to be “beneficially owning” any securities (which securities shall also be deemed “beneficially
owned” by such Person) that such Person is deemed to “beneficially own” within the meaning of Rules
13d-3 and 13d-5 under the Exchange Act; provided that any Person shall be deemed to beneficially own any securities that
such Person has the right to acquire, whether or not such right is exercisable immediately, within 60 days or otherwise (including
assuming conversion of all Series B Shares owned by such Person to Common Shares).

 

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

 

“Capital
Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however
designated, whether voting or non-voting) of capital stock, partnership interests (whether general or limited) or equivalent ownership
interests in or issued by such Person, and with respect to the Company includes, without limitation, any and all Common Shares
and Series B Shares.

 

“Closing
Date” means the date of this Agreement.

 

“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

“Commission”
means the Securities and Exchange Commission, or any other Federal agency then administering the Securities Act or the Exchange
Act.

 

“Common
Shares” is defined in the recitals to this Agreement.

 

“Company”
is defined in the preamble to this Agreement.

 

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

 

“Demand
Registration” is defined in Section 2.1.1.

 

“Demand
Takedown” is defined in Section 2.3.4.(a).

 

    	B-3

    	 

    

 

“Demanding
Holder” is defined in Section 2.1.1.

 

“Effectiveness
Period” is defined in Section 3.1.3.

 

“Equity
Securities” means, with respect to any Person, (x) any shares of Capital Stock of such Person, (y) any rights, options,
warrants or similar securities to subscribe for, purchase or otherwise acquire any shares of Capital Stock of such Person, and
(z) Capital Stock or other equity securities directly or indirectly convertible into or exercisable or exchangeable for any shares
of Capital Stock of such Person, excluding, for all purposes, any debt, including, without limitation, any debt convertible into
any of the foregoing described in clauses (x) through (z).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated
thereunder, all as the same shall be in effect at the time.

 

“Exempted
Securities” means (a) Common Shares, options or convertible securities issued as a dividend or distribution on Series
B Shares; (b) Common Shares, options or convertible securities issued by reason of a dividend, stock split, split-up or other
distribution on Common Shares; (c) Common Shares or options 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 approved by the Company Board, including the
approval of at least one Investor Director; (d) Common Shares or convertible securities actually issued upon the exercise of options
or Common Shares actually issued upon the conversion or exchange of convertible securities, in each case, provided such issuance
is pursuant to the terms of an option or convertible security that is issued and outstanding prior to the Closing Date.

 

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

 

“Governmental
Authority” any United States or non-United States (i) federal, national, regional, state, provincial, local, municipal
or other government, (ii) governmental or quasi-governmental entity of any nature (including any governmental agency, branch,
department, official, or entity, any self-regulatory authority, public utility and any supra-national organization, state, county,
city or other political subdivision and any court or other tribunal) or (iii) body exercising or entitled to exercise any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or power of any nature, including any public arbitral
tribunal, arbitrator or mediator.

 

“Indemnified
Party” is defined in Section 4.3.

 

“Indemnifying
Party” is defined in Section 4.3.

 

“Independent
Director” is defined in Section 6.1.1.

 

“Investor”
and “Investors” are defined in the preamble to this Agreement.

 

“Investor
Directors” is defined in Section 6.1.1.

 

“Investor
Indemnified Party” is defined in Section 4.1.

 

“Investor
Parties” means, as applicable, each of the Investors and any of their respective Affiliates, including Affiliates
to whom Series B Shares or Common Shares are transferred pursuant to and in accordance with this Agreement.

 

    	B-4

    	 

    

 

“Law”
means all applicable constitutions, treaties, statutes, laws (including common law), orders, ordinances, regulations, codes, rules,
legally binding regulatory policy statements, binding standards or guidance, or general binding directives or decrees enacted,
adopted or applied by any and all Governmental Authorities.

 

“Lock-Up
Parties” is defined in Section 2.4.4.

 

“Lock-Up
Period” means the period commencing on the Closing Date and ending one hundred and eighty (180) days following the
Closing Date.

 

“Marketed
Takedown” shall mean a Underwritten Takedown that is a fully marketed underwritten offering that requires Company
management to participate in “road show” presentations to potential investors requiring substantial marketing effort
from management over multiple days.

 

“Maximum
Number of Shares” is defined in Section 2.1.4.

 

“Notices”
is defined in Section 9.3.

 

“Observer”
is defined in Section 6.2.

 

“Participation
Portion” means a fraction the numerator of which is the aggregate number of Common Shares issuable upon the conversion
of the Series B Shares held by an Investor as of the date of the Pre-Emptive Right Notice, and the denominator of which is the
aggregate number of Common Shares issued and outstanding as of the date of the Pre-Emptive Right Notice, assuming for such purposes
that all Series B Shares have been converted into Common Shares in accordance with their terms as of such date.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, Governmental Authority or any other form of entity not specifically
listed herein.

 

“Piggy-Back
Registration” is defined in Section 2.2.1.

 

“Pre-Emptive
Right Notice” is defined in Section 7.1.1.

 

“Registrable
Securities” means (i) any Series B Shares, (ii) any Common Shares issued upon the conversion of the Series B Shares
and (iii) any other Common Shares hereafter acquired by the Investors (and any other securities issued or issuable to the Investors
with respect to the securities referred to in clauses (i), (ii) and (iii) by way of any share split, share dividend or other distribution,
recapitalization, share exchange, share reconstruction, amalgamation, contractual control arrangement or similar event). As to
any particular Registrable Securities, such securities shall cease to be Registrable Securities when: (a) a Registration Statement
with respect to the sale of such securities shall have become effective under the Securities Act and such securities shall have
been sold, transferred or disposed of pursuant to such Registration Statement; (b) upon an Investor’s request in writing,
(i) such securities shall have been otherwise transferred pursuant to such written request, (ii) new certificates for them or
registered in such alternative form, in each case not bearing a legend restricting further transfer, shall have been delivered
by the Company in accordance with such written request and (iii) subsequent public distribution of them shall not require registration
under the Securities Act and is permitted under Rule 144A without any volume, manner-of-sale or other conditions; or (c) such
securities shall have ceased to be outstanding. The parties hereto acknowledge that the inclusion of “any Series B Shares”
in the definition of “Registrable Securities” is intended solely to facilitate any registration of Common Shares and
that, in the event the Investors have no rights under this Agreement to effect any public offering of Series B Shares.

 

    	B-5

    	 

    

 

“Registration”
means a registration effected by preparing and filing a registration statement or similar document in compliance with the requirements
of the Securities Act, and the applicable rules and regulations promulgated thereunder, and such registration statement becoming
effective.

 

“Registration
Statement” means a registration statement filed by the Company with the Commission in compliance with the Securities
Act and the rules and regulations promulgated thereunder for a public offering and sale of equity securities, or securities or
other obligations exercisable or exchangeable for, or convertible into, equity securities (other than a registration statement
on Form S-4 or Form S-8 or their successors, or any registration statement covering only securities proposed to be issued in exchange
for securities or assets of another entity).

 

“Requesting
Holder” is defined in Section 2.3.4(a).

 

“Resale
Shelf Registration Statement” is defined in Section 2.3.1.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder,
all as the same shall be in effect at the time.

 

“Securities
Purchase Agreement” is defined in the recitals to this Agreement.

 

“Selling
Holders” is defined in Section 2.3.4(a)(ii).

 

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

 

“Standstill
Period” means the period commencing on the Closing Date and ending on the first (1st) anniversary of
the Closing Date.

 

“Underwriter”
means a securities dealer who purchases any Registrable Securities as principal in an underwritten offering and not as part of
such dealer’s market-making activities.

 

“Underwritten
Takedown” shall mean an underwritten public offering of Registrable Securities pursuant to the Resale Shelf Registration
Statement, as amended or supplemented.

 

2.
REGISTRATION RIGHTS.

 

2.1
Demand Registration.

 

2.1.1
Request for Registration. Subject to Section 2.4, at any time and from time to time beginning one year following
the Closing Date, any Investor or a group of Investors may make a written demand to require the Company to effect the Registration
under the Securities Act of all or any portion of their Registrable Securities, as applicable, on Form S-1 or any similar long-form
Registration or, if then available, on Form S-3; provided that the Registrable Securities included in such demand have
an estimated aggregate market value of not less than $5,000,000. Each registration requested pursuant to this Section 2.1.1
is referred to herein as a “Demand Registration”. Any demand for a Demand Registration shall specify
the number of shares of Registrable Securities proposed to be sold and the intended method(s) of distribution thereof. The Company
will notify all Investors that are holders of Registrable Securities of the demand, and each such holder of Registrable Securities
who wishes to include all or a portion of such holder’s Registrable Securities in the Demand Registration (each such holder
including shares of Registrable Securities in such registration, a “Demanding Holder”) shall so notify
the Company within fifteen (15) days after the receipt by the holder of the notice from the Company. Upon any such request, the
Demanding Holders shall be entitled to have their Registrable Securities included in the Demand Registration, subject to Sections
2.1.4 and 3.4 and the provisos set forth in Section 3.1.1.

 

    	B-6

    	 

    

 

2.1.2
Effective Registration. A Registration will not count as a Demand Registration until the Registration Statement filed with
the Commission with respect to such Demand Registration has been declared effective and the Company has complied with all of its
obligations under this Agreement with respect thereto (including the Company’s maintaining effectiveness for the duration
of the Effectiveness Period (as defined below)); provided, however, that if, after such Registration Statement has
been declared effective, the offering of Registrable Securities pursuant to a Demand Registration is interfered with by any stop
order or injunction of the Commission or any other Governmental Authority or court, the Registration Statement with respect to
such Demand Registration will be deemed not to have been declared effective, unless and until, (i) such stop order or injunction
is removed, rescinded or otherwise terminated, and (ii) the Demanding Holders holding seventy-five percent (75%) of the Registrable
Securities covered by such Registration Statement thereafter elect to continue the offering; provided, further,
that the Company shall not be obligated to file a second Registration Statement until a Registration Statement that has been filed
is counted as a Demand Registration or is terminated.

 

2.1.3
Underwritten Offering. If the Demanding Holders so elect and such holders so advise the Company as part of their written
demand for a Demand Registration, the offering of such Registrable Securities pursuant to such Demand Registration shall be in
the form of an underwritten offering. In such event, the right of any holder to include its Registrable Securities in such Registration
shall be conditioned upon such holder’s participation in such underwriting and the inclusion of such holder’s Registrable
Securities in the underwriting to the extent provided herein. All Demanding Holders proposing to distribute their Registrable
Securities through such underwriting and the Company shall enter into an underwriting agreement in customary form with the Underwriter
or Underwriters selected for such underwriting by the holders initiating the Demand Registration.

 

2.1.4
Reduction of Offering. If the managing Underwriter or Underwriters for a Demand Registration that is to be an underwritten
offering advises the Company and the Demanding Holders in writing that the dollar amount or number of shares of Registrable Securities
which the Demanding Holders desire to sell, taken together with all other Common Shares which the Company desires to sell and
the Common Shares, if any, as to which registration has been requested pursuant to valid written contractual piggy-back registration
rights held by other stockholders of the Company who desire to sell, exceeds the maximum dollar amount or maximum number of shares
that can be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution method,
or the probability of success of such offering (such maximum dollar amount or maximum number of shares, as applicable, the “Maximum
Number of Shares”), then the Company shall include in such registration: (i) first, the Registrable Securities as
to which Demand Registration has been requested by the Demanding Holders (pro rata in accordance with the number of shares held
by each such Person) that can be sold without exceeding the Maximum Number of Shares; (ii) second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause (i), the Common Shares that the Company desires to sell that
can be sold without exceeding the Maximum Number of Shares; (iii) third, to the extent that the Maximum Number of Shares has not
been reached under the foregoing clauses (i) and (ii), the Common Shares for the account of other persons that the Company is
obligated to register pursuant to valid written contractual arrangements with such persons, as to which “piggy-back”
registration has been requested by the holders thereof (pro rata in accordance with the number of shares held by each such person)
that can be sold without exceeding the Maximum Number of Shares.

 

    	B-7

    	 

    

 

2.1.5
Withdrawal. The Demanding Holders holding seventy-five percent (75%) of the Registrable Securities covered by such Registration
Statement shall have the right to require the Company to abandon or withdraw such Registration Statement by giving written notice
to the Company and the managing Underwriter or Underwriters of such request prior to the effectiveness of the Registration Statement
filed with the Commission with respect to such Demand Registration. In such case, the abandoned or withdrawn registration shall
not count for purposes of the number of Demand Registrations permitted pursuant to Section 2.4.1 if (i) more than 20% of
the Registrable Securities requested by such Demanding Holders to be included in such registration are not or would not have been
so included or (ii) a material adverse change in the Company’s business, operations, financial condition, operating results
or prospects or the price to the public at which the Registrable Securities are proposed to be sold in such registration has occurred;
provided that if such Demanding Holders require the Company to abandon or withdraw such Registration Statement for any
other reason, the abandoned or withdrawn registration shall also not count for purposes of the number of Demand Registrations
permitted pursuant to Section 2.4.1 if such Demanding Holders reimburse the Company for the Demanding Holders’ costs
associated with the abandoned or withdrawn registration.

 

2.2
Piggy-Back Registration.

 

2.2.1
Piggy-Back Rights. If at any time from time to time, the Company proposes to file a Registration Statement under the Securities
Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible
into, equity securities, by the Company for its own account or for stockholders of the Company for their account (or by the Company
and by stockholders of the Company including, without limitation, pursuant to Section 2.3), other than a Registration Statement
(i) filed in connection with any employee stock option or other benefit plan, (ii) for an exchange offer or offering of securities
solely to the Company’s existing stockholders, (iii) for an offering of debt that is convertible into equity securities
of the Company or (iv) for a dividend reinvestment plan, then the Company shall (x) give written notice of such proposed filing
to the holders of Registrable Securities as soon as practicable but in no event less than ten (10) days before the anticipated
filing date, which notice shall describe the amount and type of securities to be included in such offering, the intended method(s)
of distribution, and the name of the proposed managing Underwriter or Underwriters, if any, of the offering, and (y) offer to
the holders of Registrable Securities in such notice the opportunity to register the sale of such number of shares of Registrable
Securities as such holders may request in writing within five (5) days following receipt of such notice (a “Piggy-Back
Registration”). Subject to receipt of the information from the holders of Registrable Securities set forth in Section
3.4, the Company shall cause such Registrable Securities to be included in such registration and shall use its best efforts
to cause the managing Underwriter or Underwriters of a proposed underwritten offering to permit the Registrable Securities requested
to be included in a Piggy-Back Registration on the same terms and conditions as any similar securities of the Company and to permit
the sale or other disposition of such Registrable Securities in accordance with the intended method(s) of distribution thereof.
The Company and all holders of Registrable Securities proposing to distribute their securities through a Piggy-Back Registration
that involves an Underwriter or Underwriters shall enter into an underwriting agreement in customary form with the Underwriter
or Underwriters selected for such Piggy-Back Registration.

 

    	B-8

    	 

    

 

2.2.2
Reduction of Offering. If the managing Underwriter or Underwriters for a Piggy-Back Registration that is to be an underwritten
offering advises the Company and the holders of Registrable Securities in writing that the dollar amount or number of Common Shares
which the Company desires to sell, taken together with Common Shares, if any, as to which registration has been demanded pursuant
to valid written contractual arrangements with persons other than the holders of Registrable Securities hereunder and the Registrable
Securities as to which registration has been requested under this Section 2.2, exceeds the Maximum Number of Shares, then
the Company shall include in any such registration:

 

(a)
If the registration is undertaken for the Company’s account: (A) first, the Common Shares or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Number of Shares; and (B) second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause (A), the Common Shares or other securities, if any, comprised
of Registrable Securities, as to which registration has been requested pursuant to the terms hereof, that can be sold without
exceeding the Maximum Number of Shares, pro rata based on the total number of Registrable Securities held by the Investors; and
(C) third, to the extent that the Maximum Number of shares has not been reached under the foregoing clauses (A) and (B), the Common
Shares or other securities for the account of other persons that the Company is obligated to register pursuant to valid written
contractual piggy-back registration rights with such persons and that can be sold without exceeding the Maximum Number of Shares;
and

 

(b)
If the registration is a “demand” registration undertaken at the demand of persons other than the holders of Registrable
Securities, (A) first, the Common Shares or other securities for the account of the demanding persons and the holders of Registrable
Securities exercising their piggy-back registration rights pursuant to the terms hereof, pro rata based on the total number of
fully diluted Common Shares held by such selling holders, that can be sold without exceeding the Maximum Number of Shares; (B)
second, to the extent that the Maximum Number of Shares has not been reached under the foregoing clause (A), the Common Shares
or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares; and (C)
third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A) and (B), the Common
Shares or other securities for the account of other persons that the Company is obligated to register pursuant to valid written
contractual arrangements with such persons, that can be sold without exceeding the Maximum Number of Shares.

 

2.2.3
Withdrawal. Any holder of Registrable Securities may elect to withdraw such holder’s request for inclusion of Registrable
Securities in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness
of the Registration Statement. With respect to registrations not initiated by holders of Registrable Securities and to which such
holders are participating solely through their piggy-back registration rights, the Company (whether on its own determination or
as the result of a withdrawal by persons making a demand pursuant to valid written contractual obligations) may withdraw a Registration
Statement at any time prior to the effectiveness of such Registration Statement. Notwithstanding any such withdrawal, the Company
shall pay all expenses incurred by the holders of Registrable Securities in connection with such Piggy-Back Registration as provided
in Section 3.3.

 

2.3
Resale Shelf Registration Rights.

 

2.3.1
Registration Statement Covering Resale of Registrable Securities. On or prior to the first anniversary of the Closing Date,
upon the written demand of an Investor or group of Investors and subject to receipt of the information from the holders of Registrable
Securities set forth in Section 3.4, the Company shall promptly effect an effective Registration Statement permitting offerings
to be made on a continuous basis pursuant to Rule 415 under the Securities Act registering the resale from time to time by Investors
of all of the Registrable Securities held by or then-issuable to the Investors (the “Resale Shelf Registration Statement”).
The Company will notify all Investors that are holders of Registrable Securities of the demand and that they will include in the
Resale Shelf Registration Statement such Investor’s Registrable Securities. The Resale Shelf Registration Statement shall
be on Form S-3 or another appropriate form permitting Registration of such Registrable Securities for resale by such Investors.
If, on the date that the Resale Shelf Registration Statement is filed, the Company is a well-known seasoned issuer (as defined
in Rule 405 under the Securities Act) (a “WKSI”), then the Company shall file the Resale Shelf Registration
Statement as an automatic shelf registration statement (as defined in Rule 405 under the Securities Act), which shall be effective
upon the filing thereof. If the Company is not a WKSI on the date of the written demand, the Company shall make the initial filing
of the Resale Shelf Registration Statement within forty-five (45) days of receipt of the written demand. Once the Resale Shelf
Registration Statement is effective, the Company shall use commercially reasonable efforts to keep the Resale Shelf Registration
Statement continuously effective under the Securities Act at all times until the expiration of the Effectiveness Period. If any
Registrable Securities are outstanding at the expiration of the Effectiveness Period, the Company is obligated to file and make
effective a subsequent Resale Shelf Registration Statement on or prior to the expiration of the Effectiveness Period in accordance
with this Section 2.3.1 registering the resale from time to time by Investors of all of the Registrable Securities held
by or then issuable to the Investors.

 

    	B-9

    	 

    

 

2.3.2
Notification and Distribution of Materials. The Company shall notify the Investors in writing of the effectiveness of the
Resale Shelf Registration Statement and shall furnish to them, without charge, such number of copies of the Resale Shelf Registration
Statement (including any amendments, supplements and exhibits), the prospectus contained therein (including each preliminary prospectus
and all related amendments and supplements) and any documents incorporated by reference in the Resale Shelf Registration Statement
or such other documents as the Investors may reasonably request in order to facilitate the sale of the Registrable Securities
in the manner described in the Resale Shelf Registration Statement.

 

2.3.3
Amendments and Supplements. Subject to the provisions of Section 2.3.1 above, the Company shall promptly prepare
and file with the Commission from time to time such amendments and supplements to the Resale Shelf Registration Statement and
prospectus used in connection therewith as may be necessary to keep the Resale Shelf Registration Statement effective and to comply
with the provisions of the Securities Act with respect to the disposition of all the Registrable Securities during the Effectiveness
Period.

 

2.3.4
Notice of Certain Events. The Company shall promptly notify the Investors in writing of any request by the Commission for
any amendment or supplement to, or additional information in connection with, the Resale Shelf Registration Statement required
to be prepared and filed hereunder (or prospectus relating thereto). The Company shall promptly notify each Investor in writing
of the filing of the Resale Shelf Registration Statement or any prospectus, amendment or supplement related thereto or any post-effective
amendment to the Resale Shelf Registration Statement and the effectiveness of any post-effective amendment.

 

(a)
If the Company shall receive a request from one or more holders of Registrable Securities (the requesting holder(s) shall be referred
to herein as the “Requesting Holder”), provided that the estimated aggregate market value of the Registrable
Securities is at least $5,000,000 for a Marketed Takedown, that the Company effect an Underwritten Takedown of all or any portion
of the Requesting Holder’s Registrable Securities, and specifying the intended method of disposition thereof (including
whether such Underwritten Takedown is intended to be a Marketed Takedown), then the Company shall promptly give notice of such
requested Underwritten Takedown (each such request shall be referred to herein as a “Demand Takedown”)
at least five (5) Business Days prior to the anticipated filing date of the prospectus or supplement relating to such Demand Takedown
to the other Investors and thereupon shall use its commercially reasonable efforts to effect, as expeditiously as possible, the
offering in such Underwritten Takedown of:

 

(i)
subject to the restrictions set forth in Section 2.1.4, all Registrable Securities for which the Requesting Holder has
requested such offering under Section 2.3.4(a), and

 

(ii)
subject to the restrictions set forth in Section 2.1.4, all other Registrable Securities that any holders of Registrable
Securities (all such holders, together with the Requesting Holder, the “Selling Holders”) have requested
the Company to offer by request received by the Company within two (2) Business Days after such holders receive the Company’s
notice of the Demand Takedown, all to the extent necessary to permit the disposition (in accordance with the intended methods
thereof as aforesaid) of the Registrable Securities so to be offered.

 

    	B-10

    	 

    

 

(b)
Promptly after the expiration of the two (2) Business Day period referred to in Section 2.3.4(a)(ii), the Company will
notify all Selling Holders of the identities of the other Selling Holders and the number of shares of Registrable Securities requested
to be included therein.

 

(c)
If the managing underwriter in an Underwritten Takedown advises the Company and the Requesting Holder that, in its view, the number
of shares of Registrable Securities requested to be included in such underwritten offering exceeds the largest number of shares
that can be sold without having an adverse effect on such offering, including the price at which such shares can be sold, the
shares included in such Underwritten Takedown will be reduced by the Registrable Securities held by the Selling Holders (on a
pro rata basis based on the total number of Registrable Securities held by such Selling Holders, subject to a determination by
the Commission that certain Selling Holders must be reduced first based on the number of Registrable Securities held by such Selling
Holders).

 

2.3.5
Selection of Underwriters. Selling Holders holding seventy-five percent (75%) of the Registrable Securities requested to
be sold in an Underwritten Takedown shall have the right to select an Underwriter or Underwriters in connection with such Underwritten
Takedown, which Underwriter or Underwriters shall be reasonably acceptable to the Company (which consent shall not be unreasonably
withheld, conditioned or delayed). In connection with an Underwritten Takedown, the Company shall enter into customary agreements
(including an underwriting agreement in customary form) and take such other actions as are reasonably required in order to expedite
or facilitate the disposition of the Registrable Securities in such Underwritten Takedown, including, if necessary, the engagement
of a “qualified independent underwriter” in connection with the qualification of the underwriting arrangements with
the Financial Industry Regulatory Authority, Inc.

 

2.4
Registration Rights Limitations.

 

2.4.1
The Company shall not be obligated to effectuate more than an aggregate of two (2) Demand Registrations.

 

2.4.2
The Company shall not be obligated to effectuate more than (i) two (2) Marketed Takedowns in any 365-day period or (ii) an aggregate
of two (2) Marketed Takedowns.

 

2.4.3
For so long as a Resale Shelf Registration Statement is effective with respect to all Registrable Securities of an Investor and
such Investor is able to sell its Registrable Securities in a takedown offering pursuant to such Resale Shelf Registration Statement,
such Investor’s right to make a Demand Registration of such Registrable Securities pursuant to Section 2.1 is suspended.

 

2.4.4
If any sale of Registrable Securities shall be effected by means of an underwritten offering, (a) each of the Investors, the members
of the Company Board and the executive officers of the Company (collectively, the “Lock-Up Parties”)
shall enter into a customary “lock-up” agreement (which lock-up agreements shall contain identical terms) in favor
of the underwriters and (b) neither the Company nor any Lock-Up Party shall effect any public sale or distribution of any of the
Company’s securities (except as part of such underwritten offering), including any sale pursuant to Rule 144 or by entering
into any swap, hedge or other arrangement that transfers, in whole or in part, the economic consequence of ownership of such securities,
during the ten (10) Business Days prior to, and continuing for ninety (90) Business Days after, the date of the pricing of such
underwritten offering (unless the underwriters, the Company and the Investors agree on a different time period). The foregoing
notwithstanding, no Lock-Up Party shall be required to terminate an existing 10b5-1 plan or to cease sales under any such plan.
No Lock-Up Party holding any class of securities subject to this Section 2.4.4 shall be released from any obligation under
any agreement, arrangement or understanding entered into with respect to this Section 2.4.4 unless the Investors are also
released.

 

    	B-11

    	 

    

 

2.4.5
The Company shall not, without the prior written consent of the Investors, enter into any agreement with any holder or prospective
holder of any security of the Company giving such holder or prospective holder any registration rights the terms of which are
more favorable than the registration rights granted to the holders of Registrable Securities hereunder, or which would reduce
the amount of Registrable Securities such holders can include in any (i) registration statement filed pursuant to Sections
2.1 and 2.3.1 hereunder or (ii) Underwritten Takedown pursuant to Section 2.3.4 hereunder, unless such rights
are subordinate to those of the holders of Registrable Securities.

 

3.
REGISTRATION PROCEDURES.

 

3.1
Filings; Information. Whenever the Company is required to effect the registration of any Registrable Securities pursuant
to Section 2, the Company shall use its commercially reasonable efforts to effect the registration and sale of such Registrable
Securities in accordance with the intended method(s) of distribution thereof as expeditiously as practicable, and in connection
with any such request:

 

3.1.1
Filing Registration Statement. The Company shall use its commercially reasonable efforts to, as expeditiously as possible
after receipt of a request for a Demand Registration pursuant to Section 2.1, prepare and file with the Commission a Registration
Statement on any form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form
shall be available for the sale of all Registrable Securities to be registered thereunder in accordance with the intended method(s)
of distribution thereof, and shall use its commercially reasonable efforts to cause such Registration Statement to become effective
and use its commercially reasonable efforts to keep it effective for the Effectiveness Period; provided, however,
that the Company shall have the right to defer any Demand Registration for up to forty-five (45) days, and any Piggy-Back Registration
for such period as may be applicable to deferment of any Demand Registration to which such Piggy-Back Registration relates, in
each case if the Company shall furnish to the holders a certificate signed by the chief executive officer and chief financial
officer of the Company stating that, in the good faith judgment of the Company Board, if the Registration Statement were to be
effected at such time, it would (i) materially interfere with a bona fide material acquisition, corporate organization or other
similar transaction involving the Company or (ii) require premature disclosure of material information that the Company has a
bona fide business purpose for preserving as confidential, the premature disclosure of which would materially adversely affect
the Company; provided, further, however, that the Company shall not have the right to exercise the right
set forth in the immediately preceding proviso for more than a total of ninety (90) days in any 365-day period.

 

3.1.2
Copies. The Company shall, prior to filing a Registration Statement or prospectus, or any amendment or supplement thereto,
furnish without charge to the holders of Registrable Securities included in such registration, and such holders’ legal counsel,
copies of such Registration Statement as proposed to be filed, each amendment and supplement to such Registration Statement (in
each case including all exhibits thereto and documents incorporated by reference therein), the prospectus included in such Registration
Statement (including each preliminary prospectus) and such other documents as the holders of Registrable Securities included in
such registration or legal counsel for any such holders may request in order to facilitate the disposition of the Registrable
Securities owned by such holders.

 

    	B-12

    	 

    

 

3.1.3
Amendments and Supplements. The Company shall prepare and file with the Commission such amendments, including post-effective
amendments, and supplements to such Registration Statement and the prospectus used in connection therewith as may be necessary
to keep such Registration Statement effective and in compliance with the provisions of the Securities Act until the date on which
all Registrable Securities and other securities covered by such Registration Statement have been disposed of in accordance with
the intended method(s) of distribution set forth in such Registration Statement or such securities have been withdrawn (the “Effectiveness
Period”).

 

3.1.4
Notification. After the filing of a Registration Statement, the Company shall promptly, and in no event more than two (2)
Business Days after such filing, notify the holders of Registrable Securities included in such Registration Statement of such
filing, and shall further notify such holders within two (2) Business Days of the occurrence of any of the following: (i) when
such Registration Statement becomes effective; (ii) when any post-effective amendment to such Registration Statement becomes effective;
(iii) the issuance or threatened issuance by the Commission of any stop order (and the Company shall take all actions required
to prevent the entry of such stop order or to remove it if entered); and (iv) any request by the Commission for any amendment
or supplement to such Registration Statement or any prospectus relating thereto or for additional information or of the occurrence
of an event requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter delivered to the
purchasers of the securities covered by such Registration Statement, such prospectus will not contain an untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not
misleading, and promptly make available to the holders of Registrable Securities included in such Registration Statement any such
supplement or amendment; except that before filing with the Commission a Registration Statement or prospectus or any amendment
or supplement thereto, including documents incorporated by reference, the Company shall furnish to the holders of Registrable
Securities included in such Registration Statement and to the legal counsel for any such holders, copies of all such documents
proposed to be filed sufficiently in advance of filing to provide such holders and legal counsel with a reasonable opportunity
to review such documents and comment thereon.

 

3.1.5
Securities Laws Compliance. The Company shall use its commercially reasonable efforts to (i) register or qualify the Registrable
Securities covered by the Registration Statement under such securities or “blue sky” laws of such jurisdictions in
the United States as the holders of Registrable Securities included in such Registration Statement (in light of their intended
plan of distribution) may reasonably request and (ii) take such action necessary to cause such Registrable Securities covered
by the Registration Statement to be registered with or approved by such other governmental authorities as may be necessary by
virtue of the business and operations of the Company and do any and all other acts and things that may be necessary or advisable
to enable the holders of Registrable Securities included in such Registration Statement to consummate the disposition of such
Registrable Securities in such jurisdictions; provided, however, that the Company shall not be required to qualify
generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph or subject
itself to taxation in any such jurisdiction.

 

3.1.6
Agreements for Disposition. The Company shall enter into customary agreements (including, if applicable, an underwriting
agreement in customary form) and take such other actions as are reasonably required in order to expedite or facilitate the disposition
of such Registrable Securities. The representations, warranties and covenants of the Company in any underwriting agreement which
are made to or for the benefit of any Underwriters, to the extent applicable, shall also be made to and for the benefit of the
holders of Registrable Securities included in such registration statement, and the representations, warranties and covenants of
the holders of Registrable Securities included in such registration statement in any underwriting agreement which are made to
or for the benefit of any Underwriters, to the extent applicable, shall also be made to and for the benefit of the Company.

 

    	B-13

    	 

    

 

3.1.7
Comfort Letter. The Company shall obtain a “cold comfort” letter from the Company’s independent registered
public accountants in the event of an underwritten offering, in customary form and covering such matters of the type customarily
covered by “cold comfort” letters as the managing Underwriter may reasonably request, and as are reasonably satisfactory
to participating holders holding seventy-five percent (75%) of the Registrable Securities included in such offering.

 

3.1.8
Opinions. On the date the Registrable Securities are delivered for sale pursuant to any Registration or Underwritten Takedown,
the Company shall obtain an opinion, dated such date, of one (1) counsel representing the Company for the purposes of such Registration,
addressed to the holders, the placement agent or sales agent, if any, and the Underwriters, if any, covering such legal matters
with respect to the Registration in respect of which such opinion is being given as the holders, placement agent, sales agent
or Underwriter may reasonably request and as are customarily included in such opinions, and as are reasonably satisfactory to
participating holders holding seventy-five percent (75%) of the Registrable Securities included in such offering.

 

3.1.9
Cooperation. The principal executive officer of the Company, the principal financial officer of the Company, the principal
accounting officer of the Company and all other officers and members of the management of the Company shall cooperate fully in
any offering of Registrable Securities hereunder, which cooperation shall include, without limitation, the preparation of the
Registration Statement with respect to such offering and all other offering materials and related documents, and participation
in meetings with Underwriters, attorneys, accountants and potential investors.

 

3.1.10
Records. Upon execution of confidentiality agreements, the Company shall make available for inspection by the holders of
Registrable Securities included in such Registration Statement, any Underwriter participating in any disposition pursuant to such
registration statement and any attorney, accountant or other professional retained by any holder of Registrable Securities included
in such Registration Statement or any Underwriter, all financial and other records, pertinent corporate documents and properties
of the Company, as shall be necessary to enable them to exercise their due diligence responsibility, and cause the Company’s
officers, directors and employees to supply all information requested by any of them in connection with such Registration Statement.

 

3.1.11
Listing. The Company shall use its commercially reasonable efforts to cause all Registrable Securities included in any
Registration Statement to be listed on such exchanges or otherwise designated for trading in the same manner as similar securities
issued by the Company are then listed or designated.

 

3.2
Obligation to Suspend Distribution. Upon receipt of any written notice from the Company of the happening of any event of
the kind described in Section 3.1.4(iv), or, upon any suspension by the Company, pursuant to a written insider trading
compliance program adopted by the Company Board, of the ability of all “insiders” covered by such program to transact
in the Company’s securities because of the existence of material non-public information, each holder of Registrable Securities
included in any registration shall immediately discontinue disposition of such Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until such holder receives the supplemented or amended prospectus contemplated
by Section 3.1.4(iv) or the restriction on the ability of “insiders” to transact in the Company’s securities
is removed, as applicable, and, if so directed by the Company, each such holder will deliver to the Company all copies, other
than permanent file copies then in such holder’s possession, of the most recent prospectus covering such Registrable Securities
at the time of receipt of such notice.

 

    	B-14

    	 

    

 

3.3
Registration Expenses. The Company shall bear all costs and expenses incurred in connection with the Resale Shelf Registration
Statement pursuant to Section 2.3, any Demand Registration pursuant to Section 2.1, any Demand Takedown pursuant
to Section 2.3.4(a), any Piggy-Back Registration pursuant to Section 2.2, any other distribution pursuant to the
terms hereof and all expenses incurred in performing or complying with its other obligations under this Agreement, whether or
not the Registration Statement becomes effective, including, without limitation: (i) all registration and filing fees; (ii) fees
and expenses of compliance with securities or “blue sky” laws (including fees and disbursements of counsel in connection
with blue sky qualifications of the Registrable Securities); (iii) printing expenses; (iv) the Company’s internal expenses
(including, without limitation, all salaries and expenses of its officers and employees); (v) the fees and expenses incurred in
connection with the listing of the Registrable Securities as required by Section 3.1.11; (vi) Financial Industry Regulatory
Authority fees; (vii) fees and disbursements of counsel for the Company and fees and expenses for independent certified public
accountants retained by the Company; (viii) the fees and expenses of any special experts retained by the Company in connection
with such registration and (ix) the reasonable fees and expenses of one (1) legal counsel selected by participating holders holding
seventy-five percent (75%) of the Registrable Securities included in such Registration or offering. The Company shall have no
obligation to pay any underwriting discounts or selling commissions attributable to the Registrable Securities being sold by the
holders thereof, which underwriting discounts or selling commissions shall be borne by such holders.

 

3.4
Information. The holders of Registrable Securities shall promptly provide such information as may reasonably be requested
by the Company, or the managing Underwriter, if any, in connection with the preparation of any Registration Statement, including
amendments and supplements thereto, in order to effect the registration of any Registrable Securities under the Securities Act
and in connection with the Company’s obligation to comply with applicable state securities laws, including each participating
holder delivering to the Company a fully completed and duly executed Selling Stockholder Questionnaire, a form of which is attached
hereto as Exhibit B.

 

4.
INDEMNIFICATION AND CONTRIBUTION.

 

4.1
Indemnification by the Company. The Company agrees to indemnify and hold harmless each Investor and each other holder of
Registrable Securities, and each of their respective officers, employees, affiliates, directors, partners, members, attorneys
and agents, and each person, if any, who controls an Investor and each other holder of Registrable Securities (within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act) (each, an “Investor Indemnified Party”),
from and against any expenses, losses, judgments, claims, damages or liabilities, whether joint or several, arising out of or
based upon any untrue statement (or allegedly untrue statement) of a material fact contained in any Registration Statement under
which the sale of such Registrable Securities was registered under the Securities Act, any preliminary prospectus, final prospectus
or summary prospectus contained in the Registration Statement, or any amendment or supplement to such Registration Statement,
any “free writing prospectus” (as defined in Rule 405 under the Securities Act), or any “issuer information”
(as defined in Rule 433 under the Securities Act) or any “road show” (as defined in Rule 433 under the Securities
Act), or arising out of or based upon any omission (or alleged omission) to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act or any rule
or regulation promulgated thereunder applicable to the Company and relating to action or inaction required of the Company in connection
with any such registration; and the Company shall promptly reimburse the Investor Indemnified Party for any legal and any other
expenses reasonably incurred by such Investor Indemnified Party in connection with investigating and defending any such expense,
loss, judgment, claim, damage, liability or action; provided, however, that the Company will not be liable in any
such case to the extent that any such expense, loss, claim, damage or liability arises out of or is based upon any untrue statement
or allegedly untrue statement or omission or alleged omission made in such Registration Statement, preliminary prospectus, final
prospectus, or summary prospectus, or any such amendment or supplement, any “free writing prospectus” (as defined
in Rule 405 under the Securities Act), or any “road show” (as defined in Rule 433 under the Securities Act) in reliance
upon and in conformity with information furnished to the Company, in writing, by such selling holder expressly for use therein.

 

    	B-15

    	 

    

 

4.2
Indemnification by Holders of Registrable Securities. Each selling holder of Registrable Securities will severally, in
the event that any registration is being effected under the Securities Act pursuant to this Agreement of any Registrable Securities
held by such selling holder, indemnify and hold harmless the Company, each of its directors and officers against any losses, claims,
judgments, damages or liabilities, whether joint or several, insofar as such losses, claims, judgments, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any untrue statement or allegedly untrue statement of a material
fact contained in any Registration Statement under which the sale of such Registrable Securities was registered under the Securities
Act, any preliminary prospectus, final prospectus or summary prospectus contained in the Registration Statement, or any amendment
or supplement to the Registration Statement, any “free writing prospectus” (as defined in Rule 405 under the Securities
Act), or any “issuer information” (as defined in Rule 433 under the Securities Act) or any “road show”
(as defined in Rule 433 under the Securities Act), or arise out of or are based upon any omission or the alleged omission to state
a material fact required to be stated therein or necessary to make the statement therein not misleading, if the statement or omission
was made in reliance upon and in conformity with information furnished in writing to the Company by such selling holder expressly
for use therein, and shall reimburse the Company, its directors and officers for any legal or other expenses reasonably incurred
by any of them in connection with investigation or defending any such loss, claim, damage, liability or action. Each selling holder’s
indemnification obligations hereunder shall be several and not joint and shall be limited to the amount of any net proceeds actually
received by such selling holder.

 

4.3
Conduct of Indemnification Proceedings. Promptly after receipt by any person of any notice of any loss, claim, damage or
liability or any action in respect of which indemnity may be sought pursuant to Sections 4.1 or 4.2, such person
(the “Indemnified Party”) shall, if a claim in respect thereof is to be made against any other person
for indemnification hereunder, notify such other person (the “Indemnifying Party”) in writing of the
loss, claim, judgment, damage, liability or action; provided, however, that the failure by the Indemnified Party
to notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability which the Indemnifying Party may
have to such Indemnified Party hereunder, except and solely to the extent the Indemnifying Party is actually prejudiced by such
failure. If the Indemnified Party is seeking indemnification with respect to any claim or action brought against the Indemnified
Party, then the Indemnifying Party shall be entitled to participate in such claim or action, and, to the extent that it wishes,
jointly with all other Indemnifying Parties, to assume control of the defense thereof with counsel satisfactory to the Indemnified
Party. After notice from the Indemnifying Party to the Indemnified Party of its election to assume control of the defense of such
claim or action, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or other expenses subsequently
incurred by the Indemnified Party in connection with the defense thereof other than reasonable costs of investigation; provided,
however, that in any action in which both the Indemnified Party and the Indemnifying Party are named as defendants, the Indemnified
Party shall have the right to employ separate counsel (but no more than one (1) such separate counsel, which counsel is reasonably
acceptable to the Indemnifying Party) to represent the Indemnified Party and its controlling persons who may be subject to liability
arising out of any claim in respect of which indemnity may be sought by the Indemnified Party against the Indemnifying Party,
with the fees and expenses of such counsel to be paid by such Indemnifying Party if, based upon the written opinion of counsel
of such Indemnified Party, representation of both parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, consent
to entry of judgment or effect any settlement of any claim or pending or threatened proceeding in respect of which the Indemnified
Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such judgment
or settlement includes an unconditional release of such Indemnified Party from all liability arising out of such claim or proceeding.

 

    	B-16

    	 

    

 

4.4
Contribution.

 

4.4.1
If the indemnification provided for in the foregoing Sections 4.1, 4.2 and 4.3 is unavailable to any Indemnified
Party in respect of any loss, claim, damage, liability or action referred to herein, then each such Indemnifying Party, in lieu
of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of
such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the Indemnified
Parties and the Indemnifying Parties in connection with the actions or omissions which resulted in such loss, claim, damage, liability
or action, as well as any other relevant equitable considerations. The relative fault of any Indemnified Party and any Indemnifying
Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information supplied by such Indemnified Party or such
Indemnifying Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

 

4.4.2
The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4.4.2 were determined
by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred
to in the immediately preceding Section 4.4.1.

 

4.4.3
The amount paid or payable by an Indemnified Party as a result of any loss, claim, damage, liability or action referred to in
the immediately preceding paragraphs shall be deemed to include, subject to the limitations set forth above, any legal or other
expenses incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding
the provisions of this Section 4.4, no holder of Registrable Securities shall be required to contribute any amount in excess
of the dollar amount of the net proceeds (after payment of any underwriting fees, discounts, commissions or taxes) actually received
by such holder from the sale of Registrable Securities which gave rise to such contribution obligation. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

 

5.
UNDERWRITING AND DISTRIBUTION.

 

5.1
Rule 144. The Company covenants that it shall file any reports required to be filed by it under the Securities Act and
the Exchange Act and shall take such further action as the holders of Registrable Securities may reasonably request, all to the
extent required from time to time to enable such holders to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by Rule 144 under the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission.

 

6.
BOARD OF DIRECTORS MATTERS.

 

6.1
Directors.

 

6.1.1
The Company Board will take the actions necessary such that, effective as of the Closing Date, the Company Board shall be comprised
of:

 

(a)
two (2) Class I Directors, (i) one of whom shall qualify as an “independent director” under Rule 5605(a)(2) of the
of the listing rules of the Nasdaq Stock Market (or any successor rule) or under any similar rule promulgated by such other exchange
on which the Company’s securities are then listed or designated (such director, an “Independent Director”),
and shall initially be Stephen J. Sullivan and (ii) one of whom shall be designated by Ampersand and shall initially be Eric Lev;

 

    	B-17

    	 

    

 

(b)
three (3) Class II Directors, (i) one of whom shall be an Independent Director designated by Ampersand and shall initially be
Robert Gorman, (ii) one of whom shall be an Independent Director designated by 1315 at a future date, and (iii) one of whom shall
be designated by 1315 and shall initially be Edward Chan; and

 

(c)
two (2) Class III Directors, (i) one of whom shall initially be Jack Stover, and (ii) one of whom shall be an Independent Director
and shall initially be Dr. Joseph Keegan.

 

6.1.2
For so long as Ampersand holds at least sixty percent (60%) of the Series B Shares held by Ampersand as of the Closing Date, Ampersand
shall be entitled to elect two (2) directors of the Company, provided that one (1) director elected by Ampersand must qualify
as an Independent Director. For so long as Ampersand holds less than sixty percent (60%) of the Series B Shares held by Ampersand
as of the Closing Date but at least forty percent (40%) of the Series B Shares held by Ampersand as of the Closing Date, Ampersand
shall be entitled to elect one (1) director of the Company. Each director elected pursuant to this Section 6.1.2 is referred
to herein as an “Ampersand Director.”

 

6.1.3
For so long as 1315 Capital holds at least sixty percent (60%) of the Series B Shares held by 1315 Capital as of the Closing Date,
1315 Capital shall be entitled to elect two (2) directors of the Company, provided that one (1) director elected by 1315 Capital
must qualify as an Independent Director. For so long as 1315 Capital holds less than sixty percent (60%) of the Series B Shares
held by 1315 Capital as of the Closing Date but at least forty percent (40%) of the Series B Shares held by 1315 Capital as of
the Closing Date, 1315 Capital shall be entitled to elect one (1) director of the Company. Each director elected pursuant to this
Section 6.1.3 is referred to herein as a “1315 Capital Director” and, together with the Ampersand
Director, the “Investor Directors.”

 

6.1.4
From and after the Closing Date, subject to the rules and regulations regarding director independence of the Nasdaq Stock Market
or such other exchange on which the Company’s securities are then listed or designated, one (1) Ampersand Director and one
(1) 1315 Capital Director shall have the right to serve on each and every committee of the Company Board.

 

6.2
Observation Rights. From and after the Closing Date, 1315 Capital shall have the right to designate one (1) representative,
who shall initially be Adele Oliva, to attend all meetings of the Company Board and any committees or sub-committees thereof in
a nonvoting observer capacity (a “Observer”) and Ampersand shall have right to designate two (2) Observers,
who shall initially be Herb Hooper and Laurence McCarthy; provided, that the Observers can be excluded from any meeting of any
committee or sub-committee of the Company Board at the sole discretion of such committee or sub-committee for any reason.

 

6.3
Compensation; D&O Insurance; Indemnification. The Company shall reimburse each Investor Director and Observer for his
or her reasonable out-of-pocket expenses incurred for the purpose of attending each meeting of the Company Board or any committee
thereof in accordance with the Company’s reimbursement policy in effect from time to time for non-employee directors (such
policy being deemed to apply to an Observer as if he or she were a member of the Company Board). Each Investor Director shall
be entitled to the same benefits and other rights (other than compensation) provided to any other non-executive director, including
benefits and coverage under any director and officer insurance policy maintained by the Company. Promptly following the appointment
or election of any Investor Director, the Company and such Investor Director shall enter into an indemnification agreement on
terms substantially similar to the terms of indemnification agreements that the Company has entered into with any other non-executive
director. The Company shall enter into an indemnification agreement at least as favorable as the indemnification agreements entered
into with any other non-executive director after the Closing Date with any other individual that becomes an Investor Director,
if and as applicable.

 

    	B-18

    	 

    

 

6.4
Information Rights. From and after the Closing Date, the Company shall deliver to the Investor Directors and Observers,
as applicable, and the Investors (for the benefit of the Investors) copies of all written information (including, without limitation,
board packages, notices, minutes, consents, budgets, business plans, financial forecasts, financial statements (audited or unaudited,
with or without footnotes), operating reports and any other materials to the extent and in the manner and form provided to the
Company Board or any committee or sub-committee thereof or in any periodic information required to be delivered to any lender
to the Company or any of its subsidiaries, in each case, at the same time such information is provided to the Company Board (or
any committee or sub-committee thereof) or any such lender). The Investor Directors, Observers and/or Investor may, in its, his
or her sole discretion, request that delivery of such written information and materials not be provided to it, him or her at any
time; provided, however, that refusal of any one or more deliveries shall not be deemed to be an ongoing waiver or amendment of
the Company’s obligations and/or each of the Investor Director’s, Observer’s or Investor’s rights pursuant
to this Section 6.5.

 

6.5
Confidentiality. Ampersand agrees to keep confidential “Evaluation Material” (as defined in the Ampersand Confidentiality
Agreement) and 1315 Capital agrees to keep confidential “Confidential Information” (as defined in the 1315 Capital
Confidentiality Agreement) received prior to the date hereof and all proprietary and all non-public information regarding the
Company and its subsidiaries received pursuant to Section 6.5 (the “Confidential Information”),
and in each case not to disclose or reveal any such Confidential Information to any Person without the prior written consent of
the Company; provided, however, that Confidential Information may be disclosed by any Investor to its members, directors, managers,
officers, employees, debt financing sources, potential purchasers of Equity Securities from any Investor Party with respect to
transfers that would be permitted pursuant to Section 8.3, consultants, agents, advisors and representatives, including
the Investor Directors and Observers (collectively, “Permitted Representatives”) who need to know such
Confidential Information for the purpose of evaluating, monitoring or taking any other action with respect to the investment by
any Investor in any Series B Shares or Common Shares issued or issuable upon conversion of any Series B Shares pursuant to the
Certificate of Designation, and agree to cause such Permitted Representatives to observe the terms of this Section 6.6;
provided, that nothing herein shall prevent any Investor or any Permitted Representative from disclosing any Confidential
Information that (1) is or becomes generally available to the public other than as a result of any act or omission by an Investor
or such Permitted Representative in violation of this Section 6.6, (2) was available to any Investor or Permitted Representative
on a non-confidential basis prior to disclosure to any Investor or Permitted Representative by the Company or its representatives,
(3) becomes available to any Investor or Permitted Representatives from a source other than the Company or its representatives
when such source is entitled, to the knowledge of such Investor, to make such disclosure without violating any fiduciary duty
or any non-disclosure or confidentiality agreement, or (4) is required to be disclosed by law, rule or regulation (provided;
that prior to such disclosure, the applicable Investor shall, unless prohibited by law, rule, regulation or order, promptly notify
the Company of any such disclosure, use reasonable efforts to limit the disclosure requirements of such law or order, and maintain
the confidentiality of such information to the maximum extent permitted by law, rule or regulation). If any Investor or Permitted
Representative is requested or required (by oral questions, interrogatories, requests for information, subpoena, civil investigative
demand or similar process) to disclose any Confidential Information, it is agreed that such Investor will provide the Company
with prompt written notice of such request(s) so that the Company may seek (at the Company’s sole cost) an appropriate protective
order or other appropriate remedy and/or waive the Investor’s compliance with this Section 6.6. If, failing the entry
of a protective order or the receipt of a waiver hereunder, any Investor or Permitted Representative is, after consultation with
outside counsel, compelled to disclose Confidential Information, such Investor or Permitted Representative may disclose only that
portion of such information that in the opinion of Investor’s counsel is legally required without liability hereunder; provided,
that such Investor agrees to use commercially reasonable efforts to obtain, at the Company’s sole expense, assurance that
confidential treatment will be accorded such information, including, by cooperating with the Company to obtain an appropriate
protective order or other reliable assurance that confidential treatment will be accorded the Confidential Information.

 

    	B-19

    	 

    

 

7.
RIGHTS TO PURCHASE.

 

7.1
Right to Participate in Certain Sales of Additional Securities.

 

7.1.1
For so long as any shares of Registrable Securities remain outstanding, the Company agrees that it will not (and that it will
cause its subsidiaries not to) sell or issue any shares of Capital Stock or Equity Securities, in each case, unless (x) the Company
first submits a written notice (a “Pre-Emptive Right Notice”) to the Investors (for the benefit of the
Investor Parties) setting forth in reasonable detail (A) the designation and all of the terms and provisions of the securities
proposed to be issued (the “Proposed Securities”), including, to the extent applicable, the voting powers,
preferences and relative participating, optional or other special rights, and the qualification, limitations or restrictions thereof
and interest rate and maturity; (B) the price, timing (which shall be at least three (3) but no more than six (6) Business Days
after the delivery or deemed delivery of such Pre-Emptive Right Notice to the Investor) and other terms of the proposed sale of
such Proposed Securities; and (C) the amount of such Proposed Securities proposed to be issued; provided, that following the delivery
of such notice, the Company shall deliver to the Investors (for the benefit of the Investor Parties) any such information the
Investors may reasonably request in order to evaluate the proposed issuance, (y) it offers to issue and sell to the Investor Parties,
on such terms as the Proposed Securities are issued and upon full payment by the Investor Parties, the lesser of (i) fifty percent
(50%) of the Proposed Securities (to be allocated among the Investor Parties in proportion to their respective levels of ownership
of Series B Shares as of the date of the Pre-Emptive Rights Notice) or (ii) the percentage of the Proposed Securities equal to
the aggregate Participation Portions of the Investor Parties (to be allocated among the Investor Parties in proportion to their
respective levels of ownership of Series B Shares as of the date of the Pre-Emptive Rights Notice); provided, however,
that, subject to compliance with the terms and conditions set forth in Section 7.1.5, the Company shall not be required
to offer to issue or sell to the Investor Parties the portion of the Proposed Securities that would require the Company to obtain
stockholder approval in respect of the issuance of any Proposed Securities to the Investor Parties under Nasdaq Marketplace Rule
5635 unless such approval has been obtained (provided, further, however, that the Company shall still be
obligated to provide written notice of such proposed issuance to the Investors (for the benefit of the Investor Parties), which
notice shall include a description of the Proposed Securities (including the number thereof) that would require stockholder approval
in respect of the issuance thereof).

 

7.1.2
The Investor Parties will have the option, exercisable by written notice delivered by the Investors (on behalf of the Investor
Parties) to the Company, to accept the Company’s offer and commit to purchase any or all of the Proposed Securities offered
to be sold by the Company to such Investor Parties, which notice must be given prior to the later of (x) five (5) Business Days
after receipt of such notice from the Company and (y) two (2) Business Days prior to the proposed issuance date set forth in the
Pre-Emptive Right Notice (the “Pre-Emptive Right Lapse Time”). If the Company offers two (2) or more
securities as a unit to all other participants in the offering, the Investor Parties will be given the same choice as provided
to other participants in the offering. The closing of the exercise of such subscription right shall take place simultaneously
with the closing of the sale of the Proposed Securities giving rise to such subscription right; provided, however, that
the closing of any purchase by any such Investor Party may be extended beyond the closing of the sale of the Proposed Securities
giving rise to such preemptive right to the extent necessary to (i) obtain required approvals from any Governmental Authority
or (ii) permit one or more Investor Parties to receive proceeds from calling capital pursuant to commitments made by its (or its
affiliated investment funds’) limited partners. Upon the expiration of the offering period described above, the Company
will be free to sell such Proposed Securities that the Investor Parties have not elected to purchase during the 60 days following
such expiration on terms and conditions no more favorable to the purchasers thereof than those offered to the Investor Parties
in the Pre-Emptive Right Notice delivered in accordance with Section 7.1.1. Any Proposed Securities offered or sold by
the Company after such 60-day period must be reoffered to issue or sell to the Investor Parties pursuant to this Section 7.1;
provided that, subject to compliance with the terms and conditions set forth in Section 7.1.5, the Company shall
not be required to reoffer to the Investor Parties the portion of the Proposed Securities that would require the Company to obtain
stockholder approval in respect of the issuance of any Proposed Securities under the under Nasdaq Marketplace Rule 5635 unless
such approval has been obtained. 

 

    	B-20

    	 

    

 

7.1.3
The election by any Investor Party not to exercise its pre-emptive rights under this Section 7.1 in any one instance shall
not affect its right as to any subsequent proposed issuance.

 

7.1.4
In the case of an issuance subject to this Section 7.1 for consideration in whole or in part other than cash, including
securities acquired in exchange therefor, the consideration other than cash shall be deemed to be the “Fair Market Value”
(as defined in the Certificate of Designation) thereof.

 

7.1.5
In the event that the Company is not required to offer or reoffer to an Investor Party any Proposed Securities because such issuance
would require the Company to obtain stockholder approval in respect of the issuance of any Proposed Securities under Nasdaq Marketplace
Rule 5635, the Company shall, upon the reasonable request of the Investors delivered to the Company in writing at or before the
Pre-Emptive Right Lapse Time, at the Investors’ election (acting in its sole discretion):

 

(a)
consider and discuss in good faith modifications proposed by the Investors to the terms and conditions of such portion of the
Proposed Securities which would otherwise be issued to the Investor Party such that the Company would not be required to obtain
stockholder approval in respect of the issuance of such Proposed Securities as so modified; and/or;

 

(b)
take such actions as may be reasonably necessary to seek stockholder approval in respect of the issuance of any Proposed Securities
to the Investor Parties, including without limitation, calling a special meeting of the Company’s stockholders to vote on
(and including in the proxy statement related thereto) a proposal to authorize and approve potential equity issuances by the Company
upon exercise of the Investor Parties’ rights pursuant to Section 7 which occur prior to the seven-year anniversary
of such special meeting and a recommendation by the Company Board in favor of the approval of such proposal (providing the highest
level of support for the approval of such proposal as the Company Board provides to any other proposal included in either such
proxy statement or the proxy statement for the preceding year’s annual meeting of stockholders).

 

7.2
Exceptions. Notwithstanding the foregoing, the right to purchase granted to the Investor Parties under this Section
7 shall be inapplicable with respect to the issuance of Exempted Securities. The Company and the Investors also severally
agree that, with respect to an underwritten offering of securities that is consummated within one year of the Closing Date, to
the extent the offer and sale of any securities in such underwritten offering to any Investor Party pursuant to this Section
7 would not comply with Rule 2010 of the Financial Industry Regulatory Authority Manual or applicable rules and regulations
of the Commission, then the Company shall not be required to make such an offer and sale in such underwritten offering to any
Investor Party pursuant to this Section 7. In such event, the Company agrees that it will cooperate with the Investor Parties
and will promptly take all actions to effect the offer and sale of securities to the Investor Parties in an alternative manner
that complies with Rule 2010 of the Financial Industry Regulatory Authority Manual or applicable rules and regulations of the
Commission so that the intents and purposes of this Section 7 are effectuated, including without limitation by offering the Investor
Parties securities in a private transaction that provide the Investor Parties the opportunity to maintain their respective proportional
stock ownership in the Company on a fully-diluted basis.

 

    	B-21

    	 

    

 

8.
COVENANTS.

 

8.1
Standstill. The Investors agree that during the Standstill Period, without the prior written approval of the Company or
the Company Board, or as otherwise expressly permitted or contemplated by this Agreement (including Section 7) or the Certificate
of Designation, each Investor will not and will cause its respective Affiliates not to acquire beneficial ownership of any securities
(including in derivative form) of the Company, in each case excluding (x) the Series B Shares purchased or issued directly from
the Company or Common Shares issuable upon conversion of the Series B Shares, and (y) any Capital Stock or other Equity Securities
of the Company pursuant to or in accordance with the Certificate of Designation or Section 7 hereof.

 

8.2
Short Sales Prohibited. The Investors shall not engage, directly or indirectly, in any transactions in the Company’s
securities (including, without limitation, any Short Sales involving the Company’s securities) during the period from the
date hereof until the earlier of (i) the consummation of a Deemed Liquidation (as defined in the Certificate of Designation);
and (ii) the date that Investor Parties do not own any Series B Shares or Common Shares issuable upon conversion of the Series
B Shares.

 

8.3
Lock-Up. The Investors agree that during the Lock-Up Period, the Investors shall not transfer any Common Shares issuable
upon conversion of the Series B Shares, except as part of a pledge by an Investor of the equity securities it acquires in any
portfolio company that is made to secure indebtedness existing as of the date hereof for borrowed money incurred in connection
with on-call commitments of such Investor’s limited partners (a “Permitted Pledge”) or to any
Affiliate of such Investor.

 

8.4
Investor Consent Rights. For so long as any shares of the Series B Shares remain outstanding, the following actions may
only be taken by the Company or any of its direct or indirect subsidiaries with the written consent of Investors representing
at least seventy-five percent (75%) of the outstanding Series B Shares:

 

8.4.1
amend, waive, alter or repeal the preferences, rights, privileges or powers of the Series B Shares;

 

8.4.2
amend, alter or repeal any provision of the Certificate of Designation in a manner that is adverse to the holders of Series B
Shares;

 

8.4.3
authorize, create or issue any equity securities senior to or pari passu with either series of the Series B Shares; or

 

8.4.4
increase or decrease the number of directors constituting the Company Board.

 

    	B-22

    	 

    

 

8.5
Additional Investor Consent Rights. For so long as at least thirty percent (30%) of the Series B Shares outstanding as
of the Closing Date remains outstanding (as equitably adjusted for any stock split, reverse stock split, recapitalization or similar
event with respect to the Common Shares), the following actions may only be taken by the Company or any of its direct or indirect
subsidiaries with the written consent with the consent of Investors representing at least seventy-five percent (75%) of the outstanding
shares of Series B Shares:

 

8.5.1.1
(a) authorize, create or issue any debt securities for borrowed money or funded debt pursuant to which the Company or any of its
direct or indirect subsidiaries issues shares, warrants or any other convertible security in the same transaction or a series
of related transactions; or (b) authorize, create or issue any debt securities for borrowed money or funded debt pursuant to which
the Company or any of its direct or indirect subsidiaries does not issue shares, warrants or any other convertible security in
the same transaction or a series of related transactions exceeding $4.5 million initially (the “Debt Threshold”),
excluding, however: (i) any capitalized and operating leases entered into by the Company or its direct or indirect subsidiaries
in the ordinary course of business consistent with past practice and (ii) any debt incurred by the Company pursuant to the terms
of the Company’s existing term loan and credit facility with Silicon Valley Bank; provided, that if the aggregate consolidated
revenue recognized by the Company and its direct or indirect subsidiaries (the “Combined Revenue”) as
reported by the Company on Form 10-K for any fiscal year ending after the Closing Date exceeds $45 million dollars, the Debt Threshold
for the following fiscal year shall increase to an amount equal to: (i) ten percent (10%); multiplied by (ii) the Combined Revenue
as reported by the Company on Form 10-K for the previous fiscal year;

 

8.5.1.2
merge with or acquire all or substantially all of the assets of one or more other companies or entities with a value in excess
of $20 million (the “Acquisition Threshold”); provided, that the Acquisition Threshold shall increase
on a straight line basis to an amount up to $40 million, but in no event greater than $40 million, to the extent Combined Revenue
for the then-most recently completed quarterly period as reported by the Company on Form 10-K or Form 10-Q, as applicable, falls
between the Combined Revenue for the Company’s fiscal quarter ended on September 30, 2019, and 100% greater than the Combined
Revenue for the Company’s fiscal quarter ended on September 30, 2019;

 

8.5.1.3
materially change the nature of the business of the Company or any of its direct or indirect subsidiaries as it is proposed to
be conducted as of the Closing Date;

 

8.5.1.4
consummate any Liquidation (as defined in the Certificate of Designation);

 

8.5.1.5
transfer, by sale, exclusive license or otherwise, material intellectual property rights of the Company or any of its direct or
indirect subsidiaries, other than licenses, transfers or sales of products accomplished in the ordinary course of business consistent
with past practice;

 

8.5.1.6
declare or pay any cash dividend or make any cash distribution on any equity interests of the Company other than the Series B
Shares;

 

8.5.1.7
repurchase or redeem any shares of capital stock of the Company, except for: (a) the redemption of the Series B Shares pursuant
to Section 5(d) of the Certificate of Designation; or (b) repurchases of Common Shares under agreements previously approved by
the Company Board with employees, consultants, advisors or others who performed services for the Company or any direct or indirect
subsidiary in connection with the cessation of such employment or service;

 

8.5.1.8
(a) incur any additional individual debt, indebtedness for borrowed money or other additional liabilities pursuant to which the
Company or any of its direct or indirect subsidiaries issues shares, warrants or any other convertible security in the same transaction
or a series of related transactions; or (b) incur any individual debt, indebtedness for borrowed money or other liabilities pursuant
to which the Company or any of its direct or indirect subsidiaries does not issue shares, warrants or any other convertible security
in the same transaction or a series of related transactions in excess of the Debt Threshold (in each case, excluding: (i) any
capitalized and operating leases entered into by the Company or its direct or indirect subsidiaries in the ordinary course of
business consistent with past practice; (ii) any debt incurred by the Company pursuant to the terms of the Company’s existing
term loan and credit facility with Silicon Valley Bank; and (iii) any purchase money financing in connection with the acquisition
of equipment or otherwise);

 

    	B-23

    	 

    

 

8.5.1.9
change any accounting methods or practices of the Company or any of its direct or indirect subsidiaries, except for those changes
required by GAAP or applicable regulatory agencies or authorities, including but not limited to the Securities and Exchange Commission
and the Financial Accounting Standards Board, in each case, as consented to by the Company’s independent auditors; or

 

8.5.1.10
conduct a public offering of Common Shares registered with the Securities and Exchange Commission, including any at-the-market
offering of the Company’s Common Shares.

 

8.6
Tax Treatment. The Company agrees that, except as otherwise required pursuant to a change in law applicable to the Series
B Shares or a final determination (as defined in Section 1313(a) of the Code), (a) it will not treat the Series B Shares as “preferred
stock” for purposes of Section 305 of the Code and (b) it will not treat any accrued or accumulated but undeclared dividends
on the Series B Shares as a distribution pursuant to Section 305(c) of the Code.

 

8.7
Section 16 Matters. If the Company becomes a party to a consolidation, merger or other similar transaction that may result
in Investor, any other Investor Party and/or any Investor Director or Observer being deemed to have made a disposition of equity
securities of the Company or derivatives thereof for purposes of Section 16 of the Exchange Act, and if such Investor Director
is serving on the Company Board at such time or has served on the Company Board during the preceding six months (or if the Observers
are serving in its capacity as such or has served in such capacity during the preceding six months): (i) the Company Board will
pre-approve such disposition of equity securities of the Company or derivatives thereof for the express purpose of exempting the
Investor Parties’, the Investor Director’s and the Observer’s interests (for the Investor Parties and/or Observers,
to the extent any Investor Party or the Observers may be deemed to be “directors by deputization”) in such transaction
from Section 16(b) of the Exchange Act pursuant to Rule 16b-3 thereunder and (ii) if the transaction involves (A) a merger or
consolidation to which the Company is a party and Common Shares or Series B Shares are, in whole or in part, converted into or
exchanged for equity securities of a different issuer, (B) a potential acquisition by any Investor Party and/or any Investor Director
or Observer of equity securities of such other issuer or derivatives thereof and (C) an Affiliate or associate or other designee
of any Investor Party will serve on the board of directors (or its equivalent) of such other issuer, then if the Company requires
that the other issuer pre-approve any acquisition of equity securities or derivatives thereof for the express purpose of exempting
the interests of any director or officer of the Company or any of its subsidiaries in such transactions from Section 16(b) of
the Exchange Act pursuant to Rule 16b-3 thereunder, the Company shall require that such other issuer pre-approve any such acquisitions
of equity securities or derivatives thereof for the express purpose of exempting the interests of the Investor Parties, the Investor
Directors and the Observers (for the Investor Parties and/or Observers, to the extent such persons may be deemed to be “directors
by deputization” of such other issuer) in such transactions from Section 16(b) of the Exchange Act pursuant to Rule 16b-3
thereunder.

 

8.8
Corporate Actions. At any time that any Series B Share is outstanding, the Company shall:

 

8.8.1
take all action necessary to at all times have authorized, and reserved for the purpose of issuance from and after the Closing
Date, the number of Common Shares issuable upon conversion of the Series B Shares in accordance with the terms of the Certificate
of Designation; and

 

8.8.2
not effect any voluntary deregistration under the Exchange Act or any voluntary delisting with the Nasdaq Stock Market in respect
of the Common Shares other than in connection with a Deemed Liquidation (as defined in the Certificate of Designation) pursuant
to which the Company agrees to satisfy, or will otherwise cause the satisfaction, in full of its obligations under the Certificate
of Designation.

 

    	B-24

    	 

    

 

8.9
Voting. Each Investor shall vote all voting securities of the Company owned by such Investor, or over which such Investor
has voting control, in favor of the election of any individual who is nominated by the Company’s Nominating and Corporate
Governance Committee to serve as a director on the Company Board; provided that nothing in this Section 8.9 shall
prevent an Investor from exercising its rights to designate and elect the Investor Directors as contemplated by Section 6.1.
Each Investor’s obligations pursuant to this Section 8.9 shall terminate if such Investor is no longer entitled to
designate or elect an Investor Director pursuant to Section 6.1.

 

9.
MISCELLANEOUS.

 

9.1
Other Registration Rights and Arrangements. The Company represents and warrants that no person, other than the holders
of the Registrable Securities, has any right to require the Company to register any of the Company’s share capital for sale
or to include the Company’s share capital in any registration filed by the Company for the sale of shares for its own account
or for the account of any other person. The Company shall not hereafter enter into any agreement with respect to its securities
which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement and in the
event of any conflict between any such agreement or agreements and this Agreement, the terms of this Agreement shall prevail.

 

9.2
Assignment; No Third Party Beneficiaries. This Agreement and the rights, duties and obligations of the Company hereunder
may not be assigned or delegated by the Company in whole or in part. Subject to Section 8.3, this Agreement and the rights,
duties and obligations of the holders of Registrable Securities hereunder may be freely assigned or delegated by such holder of
Registrable Securities in conjunction with and to the extent of any permitted transfer of Registrable Securities by any such holder;
provided, that Sections 6.1 – 6.5, 7, 8.4, 8.5, 8.6, 8.7 and 8.9
shall not be transferable or assignable to the transferee of Registrable Securities that received such Registrable Securities
upon foreclosure of a Permitted Pledge. This Agreement and the provisions hereof shall be binding upon and shall inure to the
benefit of each of the parties hereto and their respective successors and assigns and the holders of Registrable Securities and
their respective successors and permitted assigns. This Agreement is not intended to confer any rights or benefits on any persons
that are not party hereto other than as expressly set forth in Section 4 and this Section 9.2. The rights of a holder
of Registrable Securities under this Agreement may be transferred by such a holder to a transferee; provided, however,
that such transferee has executed and delivered to the Company a properly completed agreement to be bound by the terms of this
Agreement substantially in form attached hereto as Exhibit A (an “Addendum Agreement”), and the
transferor shall have delivered to the Company no later than thirty (30) days following the date of the transfer, written notification
of such transfer setting forth the name of the transferor, the name and address of the transferee, and the number of Registrable
Securities so transferred. The execution of an Addendum Agreement shall constitute a permitted amendment of this Agreement.

 

    	B-25

    	 

    

 

9.3
Notices. All notices, demands, requests, consents, approvals or other communications (collectively, “Notices”)
required or permitted to be given hereunder or which are given with respect to this Agreement shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via email
(provided the sender does not receive a machine-generated rejection of transmission) at the email address specified in this Section
9.3 prior to 5:00 P.M., New York City time, on a Business Day, (b) the next Business Day after the date of transmission, if
such notice or communication is delivered via email at the email address specified in this Section 9.3 on a day that is
not a Business Day or later than 5:00 P.M., New York City time, on any Business Day, (c) the Business Day following the date of
mailing, if sent by U.S. nationally recognized overnight courier service with next day delivery specified, or (d) upon actual
receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as
follows (or to such other address or email address as such party shall have specified most recently by written notice):

 

If
to the Company:

 

Interpace
Biosciences, Inc.

Morris
Corporate Center 1, Building C

300
Interpace Parkway, Parsippany, NJ 07054

Attention:
Jack E. Stover, President and CEO

Email:
jstover@interpace.com

 

With
a copy to:

 

Pepper
Hamilton LLP

620
Eighth Avenue, 37th Floor

New
York Times Building

New
York, NY 10018

Attention:
Merrill M. Kraines, Esquire

Email:
krainesm@pepperlaw.com

 

If
to 1315 Capital:

 

1315
Capital II, L.P.

2929
Walnut Street, Suite 1240

Philadelphia,
PA 19104

Attention:
Adele C. Oliva, Founding Partner

Email:
adele.oliva@1315capital.com

 

With
a copy to:

 

Morgan,
Lewis & Bockius LLP

1701
Market Street

Philadelphia,
PA 19103-2921

Attention:
Joanne R. Soslow, Esquire

Email:
joanne.soslow@morganlewis.com

 

If
to Ampersand:

 

Ampersand
2018 Limited Partnership

c/o
Ampersand Capital Partners

55
William Street, Suite 240

Wellesley,
MA 02481

Attention:
Dana L. Niles, Chief Operating Partner

Email:
dln@ampersandcapital.com

 

    	B-26

    	 

    

 

With
a copy to:

 

Goodwin
Procter LLP

100
Northern Avenue

Boston,
MA 02210

Attention:
James T. Barrett, Esq., and Jocelyn Arel, Esq.

Email:
JBarrett@goodwinlaw.com and JArel@goodwinlaw.com

 

9.4
Severability; Amendments; Waivers. This Agreement shall be deemed severable, and the invalidity or unenforceability of
any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision
hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall
be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible
that is valid and enforceable. The provisions of this Agreement may be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may be given, only with the written agreement of holders holding seventy-five percent
(75%) of the Registrable Securities covered hereby.

 

9.5
Governing Law; Waiver of Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware,
without regard to the principles of conflicts of law thereof that would result in the application of any law other than the laws
of the State of Delaware. Each party agrees that all proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, employees or
agents) shall be commenced exclusively in the state and federal courts sitting in the City of Wilmington in the State of Delaware.
Each party hereto 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 proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
or that such proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

9.6
Specific Enforcement. The parties acknowledge and agree that (a) the parties shall be entitled to an injunction or injunctions,
specific performance or other equitable relief to enforce specifically the terms and provisions hereof in the courts described
in Section 9.5 without proof of damages or otherwise, this being in addition to any other remedy to which they are entitled
under this Agreement and (b) the right of specific enforcement is an integral part of this Agreement and without that right, neither
the Company nor the Investors would have entered into this Agreement. The parties hereto agree not to assert that a remedy of
specific enforcement is unenforceable, invalid, contrary to law or inequitable for any reason, and agree not to assert that a
remedy of monetary damages would provide an adequate remedy or that the parties otherwise have an adequate remedy at law. The
parties hereto acknowledge and agree that any party seeking an injunction or injunctions to prevent breaches of this Agreement
and to enforce specifically the terms and provisions of this Agreement in accordance with this Section 9.6 shall not be
required to provide any bond or other security in connection with any such order or injunction.

 

9.7
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all
of which taken together shall constitute one and the same instrument.

 

9.8
Construction; Interpretation. The headings herein are for convenience only, do not constitute a part of this Agreement
and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to
be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against
any party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. Unless otherwise indicated
to the contrary herein by the context or use thereof: (i) the words, “herein,” “hereto,” “hereof”
and words of similar import refer to this Agreement as a whole, including the Schedules and exhibits, and not to any particular
section, subsection, paragraph, subparagraph or clause contained in this Agreement; (ii) masculine gender shall also include the
feminine and neutral genders, and vice versa; (iii) words importing the singular shall also include the plural, and vice versa;
(iv) the words “include,” “includes” or “including” shall be deemed to be followed by the
words “without limitation”; (v) financial terms shall have the meanings given to such terms under GAAP unless otherwise
specified herein; (vi) references to “$” or “dollar” or “US$” shall be references to United
States dollars; (vii) where the context permits, the use of the term “or” will be non-exclusive and equivalent to
the use of the term “and/or”; (viii) the word “extent” in the phrase “to the extent” shall
mean the degree to which a subject or other thing extends, and such phrase shall not mean simply “if”; and (ix) if
any action under this Agreement is required to be done or taken on a day that is not a Business Day or on which a government office
is not open with respect to which a filing must be made, then such action shall be required to be done or taken not on such day
but on the first succeeding Business Day thereafter.

 

9.9
Entire Agreement. This Agreement and the Securities Purchase Agreement (including all agreements entered into pursuant
hereto and thereto and all certificates and instruments delivered pursuant hereto or thereto) constitute the entire agreement
of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations,
understandings, negotiations and discussions between the parties, whether oral or written.

 

[Signature
Page Follows]

 

    	B-27

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by their duly authorized representatives
as of the date first written above.

 

 

	 	COMPANY:
	 	 	 
	 	INTERPACE BIOSCIENCES, INC.
	 	 	 
	 	By:	 
	 	Name:	Jack
    E. Stover
	 	Title:	President
    & Chief Executive Officer

 

[Remainder
of Page Intentionally Left Blank]

 

Signature
Page to Investor Rights Agreement

 

    	 	 	 

    	 

    

 

	 	INVESTORS:
	 	 	 
	 	Ampersand 2018 Limited Partnership
	 	 	 
	 	By:
    	AMP-18
    Management Company Limited Partnership, its General Partner
	 	 	 
	 	By:
    	AMP-18
    MC LLC, its General Partner

 

	 	By:	 
	 	Name:	Herbert
    H. Hooper
	 	Title:	Managing
    Member

 

	 	1315 CAPITAL II, L.P.
	 	 	 
	 	By:	1315
    Capital Management II, LLC, 
	 	 	its
    General Partner

 

	 	By:	 
	 	Name:	Adele
    C. Oliva
	 	Title:	Managing
    Member

 

Signature
Page to Investor Rights Agreement

 

    	 	 	 

    	 

    

 

EXHIBIT
A

 

Addendum
Agreement

 

This
Addendum Agreement (“Addendum Agreement”) is executed on __________________, 20___, by the undersigned
(the “New Holder”) pursuant to the terms of that certain Amended and Restated Investor Rights Agreement,
dated as of January [•], 2020 (the “Agreement”), by and among the Company and the Investors identified
therein, as such Agreement may be amended, supplemented or otherwise modified from time to time. Capitalized terms used but not
defined in this Addendum Agreement shall have the respective meanings ascribed to such terms in the Agreement. By the execution
of this Addendum Agreement, the New Holder agrees as follows:

 

1.
Acknowledgment. New Holder acknowledges that New Holder is acquiring certain Common Shares of the Company (the “Shares”)
[or other equity securities of the Company that are convertible, exercisable or exchangeable for Common Shares of the Company
(the “Convertible Securities”)] as a transferee of such Shares [or Convertible Securities] from a party
in such party’s capacity as a holder of Registrable Securities under the Agreement, and after such transfer, New Holder
shall be considered an “Investor” and a holder of Registrable Securities for all purposes under the Agreement.

 

2.
Agreement. New Holder hereby (a) agrees that the Shares [or Convertible Securities] shall be bound by and subject to the
terms of the Agreement and (b) adopts the Agreement with the same force and effect as if the New Holder were originally a party
thereto.

 

3.
Notice. Any notice required or permitted by the Agreement shall be given to New Holder at the address or facsimile number
listed below New Holder’s signature below.

 

	NEW HOLDER:	 	ACCEPTED AND AGREED:
	 	 	 	 	 
	Print Name:	 	INTERPACE BIOSCIENCES, INC.
	 	 	 	 	 
	By:	           	 	By:	                 

 

    	 	 	 

    	 

    

 

EXHIBIT
B

 

SELLING
STOCKHOLDER NOTICE AND QUESTIONNAIRE

 

The
undersigned holder of shares of the Series B Convertible Preferred Stock, par value $0.01 per share, of Interpace Biosciences,
Inc., a Delaware corporation (the “Company”), is a party to that certain Amended and Restated Investor Rights
Agreement, dated as of January [•], 2020, by and among the Company, 1315 Capital II, L.P., a Delaware limited partnership,
Ampersand 2018 Limited Partnership, a Delaware limited partnership (the “Agreement”), and understands that
the Company is obligated to file with the Securities and Exchange Commission a registration statement (the “Registration
Statement”) for the registration of the Registrable Securities in accordance with the terms of the Agreement. All capitalized
terms not otherwise defined herein shall have the meanings ascribed thereto in the Agreement. The undersigned has agreed to complete,
execute and deliver this Questionnaire to the Company pursuant to Section 3.4 of the Agreement.

 

In
order to sell or otherwise dispose of any Registrable Securities pursuant to the Registration Statement, a holder of Registrable
Securities generally will be required to be named as a selling stockholder in the related prospectus or a supplement thereto (as
so supplemented, the “Prospectus”), deliver the Prospectus to purchasers of Registrable Securities (including
pursuant to Rule 172 under the Securities Act). Holders must complete and deliver this Notice and Questionnaire in order to be
named as selling stockholders in the Prospectus. Holders of Registrable Securities who do not complete, execute and return
this Notice and Questionnaire within ten (10) Business Days following either (A) any Investor’s delivery of a notice for
Demand Registration, (B) the Company’s delivery of a notice for Piggy-Back Registration or (C) a request from the Company
in connection with the filing of a Resale Shelf Registration Statement pursuant to Section 2.3 of the Agreement (1) will
not be named as selling stockholders in the Registration Statement or the Prospectus and (2) may not use the Prospectus for resales
of Registrable Securities.

 

Certain
legal consequences arise from being named as a selling stockholder in the Registration Statement and the Prospectus. Holders of
Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not
named as a selling stockholder in the Registration Statement and the Prospectus.

 

NOTICE

 

The
undersigned holder (the “Selling Stockholder”) of Registrable Securities hereby gives notice to the Company
of its intention to sell or otherwise dispose of Registrable Securities owned by it and listed below in Item (3), unless otherwise
specified in Item (3), pursuant to the Registration Statement. The undersigned, by signing and returning this Notice and Questionnaire,
understands and agrees that it will be bound by the terms and conditions of this Notice and Questionnaire and the Agreement.

 

The
undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate
and complete:

 

    	 	 	 

    	 

    

 

 QUESTIONNAIRE

 

1.
Name.

 

	(a)	Full Legal Name of Selling Stockholder:
	 	 
	 	

 

	(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below
are held:
	 	 

 

	(c)	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power
to vote or dispose of the securities covered by the questionnaire):
	 	 

 

2.
Address for Notices to Selling Stockholder:

 

	 
	 
	 
	Telephone: ____________________________________________________________________________
	Fax:  _________________________________________________________________________________
	Contact
    Person: ________________________________________________________________________
	E-mail
    address of Contact Person:______________________________________________

 

3.
Beneficial Ownership of Registrable Securities Issuable Pursuant to the Purchase Agreement:

 

	 	(a)	Type
    and Number of Registrable Securities beneficially owned and issued pursuant to the Agreement:
	 	 	 
	 	 	
	 	 	
	 	 	

 

 

	 	(b)	Number
    of shares of Common Shares to be registered pursuant to this Notice for resale:

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 	 	 

    	 

    

 

4.
Broker-Dealer Status:

 

	 	(a)
    	Are
    you a broker-dealer?

 

	Yes[  ]
    	No[  ]
    

 

	 	(b)	If
    “yes” to Section 4(a), did you receive your Registrable Securities as compensation for investment banking
    services to the Company?

 

	Yes[  ]
    	No[  ]
    

 

	Note:
    	If
    no, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

	 	(c)
    	Are
    you an affiliate of a broker-dealer?

 

	Yes[  ]
	No[  ]
    

 

	 	Note:	If
    yes, provide a narrative explanation below:

 

	 	 	 
	 	 	 
	 	 	 

 

	 	(d)	If
    you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities in the ordinary course
    of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings,
    directly or indirectly, with any person to distribute the Registrable Securities?

 

	Yes[  ]
	No[  ]
    

 

	 	Note:	If
    no, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

5.
Beneficial Ownership of Other Securities of the Company Owned by the Selling Stockholder.

 

Except
as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company
other than the Registrable Securities listed above in Item 3.

 

Type
and amount of other securities beneficially owned:

 

		__________________________________________________________________________________

 

		_______________________________________________________________________________

 

6.
Relationships with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners
of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship
with the Company (or its predecessors or affiliates) during the past three years.

 

    	 	 	 

    	 

    

 

	 	State
    any exceptions here:

 

	 	 
	 	 

 

 ***********

 

The
undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur
subsequent to the date hereof and prior to the effective date of any applicable Registration Statement. All notices hereunder
and pursuant to the Agreement shall be made in writing, by hand delivery, confirmed or facsimile transmission, first-class mail
or air courier guaranteeing overnight delivery at the address set forth below. In the absence of any such notification, the Company
shall be entitled to continue to rely on the accuracy of the information in this Notice and Questionnaire.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items (1) through
(6) above and the inclusion of such information in the Registration Statement and the Prospectus. The undersigned understands
that such information will be relied upon by the Company in connection with the preparation or amendment of any such Registration
Statement and the Prospectus.

 

By
signing below, the undersigned acknowledges that it understands its obligation to comply, and agrees that it will comply, with
the provisions of the Exchange Act and the rules and regulations thereunder. The undersigned also acknowledges that it understands
that the answers to this Questionnaire are furnished for use in connection with Registration Statements filed pursuant to the
Registration Rights Agreement and any amendments or supplements thereto filed with the Commission pursuant to the Securities Act.

 

I
confirm that, to the best of my knowledge and belief, the foregoing statements (including without limitation the answers to this
Questionnaire) are correct.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Questionnaire to be executed and delivered either in
person or by its duly authorized agent.

 

	Dated:
____________________________    	Beneficial Owner: ________________________
	 	 	 
	 	By:	                                        
	 	Name:	 
	 	Title:	 

 

    	 	 	 

    	 

    

 

EXHIBIT
C

 

WIRE
INSTRUCTIONS

 

 [Intentionally
omitted.] 

 

    	 	C-1	 

    	 	 

    

 

EXHIBIT
D-1

 

ACCREDITED
INVESTOR QUESTIONNAIRE

 

 [Intentionally
omitted.] 

 

    	D-1-1

    	 

    

 

EXHIBIT
D-2

 

STOCK
CERTIFICATE QUESTIONNAIRE

 

 [Intentionally
omitted.] 

 

    	D-2-1

    	 

    

 

EXHIBIT
E

 

FORM
OF SECRETARY’S CERTIFICATE

 

 [Intentionally
omitted.] 

 

    	E-1

    	 

    

 

EXHIBIT
F

 

FORM OF OFFICER’S CERTIFICATE

 

 [Intentionally
omitted.] 

 

    	 	F-1	 

    	 	 

    

 

Schedule
A

 

OPINIONS

 

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omitted.] 

 

    	 	Schedule A-1	 

    	 	 

    

 

Schedule
B

 

SUBSIDIARIES

 

 [Intentionally
omitted.] 

 

    	 	Schedule B-1Exhibit 4.1

 

THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION OF ANY PORTION HEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, NEITHER THIS NOTE NOR ANY SUCH SECURITIES, NOR ANY
INTEREST IN ANY THEREOF, MAY BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, ASSIGNED OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE OR SUCH SECURITIES UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.

 

XPRESSPA HOLDINGS, LLC

 

THIRD AMENDED AND RESTATED CONVERTIBLE
PROMISSORY NOTE

 

	$7,150,000.00 	January 9, 2020
	 	New York, New York

 

FOR VALUE RECEIVED,
XPRESSPA HOLDINGS, LLC, a Delaware limited liability company (the “Company”), promises to pay to B3D, LLC, a
North Carolina limited liability company (as assignee and successor in interest to ROCKMORE INVESTMENT MASTER FUND LTD.) (the “Lender”),
or its registered and permitted assigns, in lawful money of the United States of America the principal sum of Seven Million One
Hundred Thousand and No/100 Dollars ($7,150,000.00), or, if less, the then outstanding principal amount of the Loan, together with
interest thereon as hereinafter provided. This Note evidences the Loan made to the Company under that certain Credit Agreement
dated April 22, 2015, as amended by the First Amendment to Credit Agreement and Waiver dated as of August 8, 2016, and as amended
by a Second Amendment to Credit Agreement dated as of May 10, 2017, and as amended by a Third Amendment to Credit Agreement dated
as of May 11, 2018, as amended by a Fourth Amendment to Credit Agreement dated July 8, 2019, and as amended by a Fifth Amendment
to Credit Agreement and as of the date hereof (as further amended, restated, amended and restated, extended, renewed, replaced,
supplemented or otherwise modified from time to time, collectively, the “Credit Agreement”) between the Company
and the Lender. The Company shall pay such principal amount on the Maturity Date, whether at maturity, by acceleration or otherwise.

 

Capitalized terms used
but not defined herein shall have the meanings given them in the Credit Agreement.

 

The Company further
promises to pay interest to the Lender on the unpaid principal amount hereof from time to time outstanding from and including
April 22, 2015 until paid in full (both before and after judgment and both before and after the occurrence of an Event of Default)
at the rates and on the dates determined in accordance with, and calculated in the manner set forth herein and in the Credit Agreement.
In no event shall interest exceed the maximum interest rate permitted by applicable law. This Note is secured by the Collateral
defined in the Loan Documents.

 

Whenever any payment to be made hereunder shall be stated to be due on a day that is not a
Business Day, the payment shall be made on the next succeeding Business Day (except as otherwise provided in the Credit Agreement)
and such extension of time shall be included in the computation of the amount of interest due hereunder.

 

This Note is the Note
referred to in the Credit Agreement and shall be entitled to the benefit of all terms and conditions of, and the security of all
security interests, liens and rights granted under or in connection with, the Credit Agreement and the other Loan Documents, and
is subject to optional prepayment as provided therein. Upon the occurrence of any one or more of the Events of Default specified
in the Credit Agreement, all amounts then remaining unpaid on this Note may be declared to be or may automatically become immediately
due and payable as provided herein or in the Credit Agreement.

 

     

     

    

 

The following is a
statement of the rights of Lender and the conditions to which this Note is subject, and to which Lender, by the acceptance of this
Note, agrees:

 

1.       Definitions.
As used in this Note, the following capitalized terms have the following meanings:

 

(a)            
“Black Scholes Value” means, upon the voluntary prepayment of all or a portion of this Note, the value
of the amount subject to prepayment, based on the Black-Scholes Option Pricing Model obtained from the “OV” function
on Bloomberg Financial Markets (“Bloomberg”) determined as of the day immediately preceding such voluntary prepayment,
for pricing purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to
the remaining term of this Note as of such date of request, (ii) an expected volatility equal to the greater of 100% and the 100
day volatility obtained from the HVT function on Bloomberg as of the day immediately preceding the voluntary prepayment, (iii)
the VWAP of the Prepaid Conversion Amount, (iv) a zero cost of borrow and (v) a 360 day annualization factor.

 

(b)           “Business
Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are
required or permitted by law to close.

 

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

 

(d)           
“Common Stock Equivalents” means any securities of the Parent or its subsidiaries which would entitle
the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option,
warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the
holder thereof to receive, Common Stock.

 

(e)             “Company”
includes the limited liability company initially executing this Note and any Person which shall succeed to or assume the obligations
of the Company under this Note, with Lender’s prior written approval, at Lender’s sole discretion.

 

(f)              “Conversion”
shall have the meaning ascribed to such term in Section 7.

 

(g)             “Conversion Date” shall have the meaning set forth in Section 7(a).

 

(h)             “Conversion Price” shall have the meaning set forth in Section 7(b).

 

(i)              
“Conversion Shares” means, collectively, the shares of Common Stock issuable upon conversion of this
Note in accordance with the terms hereof.

 

(j)              “Dilutive
Issuance” shall have the meaning set forth in Section 8(e).

 

(k)             “Credit
Agreement” has the meaning specified in the introductory paragraph hereof.

 

(l)             
“Event of Default” has the meaning specified in the Credit Agreement.

 

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

 

    2

     

    

 

(n)              
“Exempt Issuance” means the issuance of (a) shares of Common Stock and options to officers, directors,
employees or consultants of the Parent after the Note hereof pursuant to plans approved by the shareholders of the Parent and
which issuances are approved by a majority of the independent members of a committee of the board of directors, (b) securities
exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Note, provided
that such securities and any term thereof have not been amended since the date of this Note to increase the number of such securities
or to decrease the issue price, exercise price, exchange price or conversion price of such securities and which securities and
the principal terms thereof are described in the reports, schedules, forms, statements and other documents required to be filed
by the Parent under the Securities Act and the Exchange Act, (c) securities issued pursuant to acquisitions or strategic transactions
approved by a majority of the disinterested directors of the Parent, provided that any such issuance shall only be to a Person
(or to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset
in a business synergistic with the business of the Parent and shall be intended to provide to the Parent substantial additional
benefits in addition to the investment of funds, but shall not include a transaction in which the Parent is issuing securities
primarily for the purpose of raising capital or to an entity whose primary business is investing in securities, (d) up to 25,000
shares of Common Stock, (e) securities as payment for investment banking services provided to the Parent, (f) securities issued
to third party vendors as payment for goods or services, (g) securities issued to the Parent’s Airport Concession Disadvantaged
Business Enterprise partners up to a number of shares of Common Stock equal in value, upon the issuance thereof, to $150,000,
for each Airport Concession Disadvantaged Business Enterprise partner to whom they are issued, (h) securities issued or issuable
to the Lender, and their assigns pursuant to the Credit Agreement, or the Notes, or upon exercise, conversion or exchange of any
such securities and (i) securities issued or issuable pursuant to that certain letter agreement dated as of July 8, 2019 relating
to the Company’s outstanding Class B Warrants and the potential issuance of new “reload” warrants.

 

(o)             “Fundamental Transaction” shall have the meaning set forth in Section 8(e).

 

(p)            
“Interest Deferment Date” shall mean the earlier of (i) October 7, 2019 and (ii) the date on which Shareholder
Approval is obtained.

 

(q)           
“Lender” shall mean the Person specified in the introductory paragraph of this Note or, subject to the
terms and conditions of the Credit Agreement, any Person who shall at the time be the registered Lender of this Note.

  

(r)             
“Notice of Conversion” shall have the meaning set forth in Section 7(a).

 

(s)            
“Original Effective Date” shall mean April 22, 2015.

 

(t)             
“Parent” shall mean XpresSpa Group, Inc., a Delaware corporation.

 

(u)            
“Person” shall mean and include an individual, a partnership, a corporation (including a business trust),
a joint stock company, a limited liability company, an unincorporated association, a joint venture or other entity or a governmental
authority.

 

(v)            
“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.

 

(w)           
“Shareholder Approval”. The consent of the Parent’s shareholders pursuant to Nasdaq Listing Rule
5635(d) that is required for the issuance of all the shares of its Common Stock that could be issued pursuant to Section 2 and
Section 7.

 

    3

     

    

 

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

 

(y)             “Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the
New York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any successors to any of the foregoing).

 

(z)              “Variable Rate Transaction” means (i) any equity line of credit (which shall include any transaction
involving a written agreement between the Parent and an investor or underwriter whereby the Parent has the right to “put”
its securities to the investor or underwriter over an agreed period of time and at an agreed price or price formula) or similar
agreement or (ii) any floating or variable priced equity linked instruments (which shall include (A) any debt or equity securities
which are convertible into, exercisable or exchangeable for, or carry the right to receive additional shares of Common Stock or
Common Stock Equivalents or any of the foregoing at a price that can be reduced either (1) at any conversion, exercise or exchange
rate or other price that is based upon and/or varies with the trading prices of or quotations for Common Stock at any time after
the initial issuance of such debt or equity security, or (2) with a fixed conversion, exercise or exchange price that is subject
to being reset at some future date at any time after the initial issuance of such debt or equity security due to a change in the
market price of the Parent’s Common Stock since date of initial issuance, or upon the issuance of any debt, equity or Common
Stock Equivalent, and (B) any amortizing convertible security which amortizes prior to its maturity date, where the Parent is
required or has the option to (or any investor in such transaction has the option to require the Parent to) make such amortization
payments in shares of Common Stock which are valued at a price that is based upon and/or varies with the trading prices of or
quotations for Common Stock at any time after the initial issuance of such debt or equity security (whether or not such payments
in stock are subject to certain equity conditions).

 

(aa)            “VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if any of the NASDAQ markets or exchanges is not
a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC
Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the
Common Stock are then reported on the OTCQX, OTCQB or OTC Pink Marketplace maintained by the OTC Markets Group, Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the volume weighted average price of the Common Stock
on the first such facility (or a similar organization or agency succeeding to its functions of reporting prices), or (d) in all
other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith
by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to Lender, the fees and
expenses of which shall be paid by Lender.

 

2.       Interest.

 

(a)              This
Note shall bear interest at the rate of 9.00% per annum. Except as provided in Section 2(b) and in Section 2(c) below, interest
only on the Loan shall be calculated on a monthly basis, which shall be payable in arrears on the last Business Day of each month
(the “Monthly Interest”). All interest hereunder shall be computed on the basis of a year of 360 days, and
in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

(b)             Notwithstanding
Section 2(a) above, from the date hereof until the Interest Deferment Date, the Monthly Interest shall continue to accrue, shall
be compounded monthly, and all unpaid amounts thereof shall be due and payable on the Interest Deferment Date.

 

    4

     

    

 

(c)             At
Company’s option, exercisable in writing by notice to the Company at any time, (i) not more than thirty (30) but not less
than five (5) Business Days, prior to the Interest Deferment Date, at Company’s sole discretion, all or any portion of the
Monthly Interest that is payable on the Interest Deferment Date, or (ii) after the Interest Deferment Date, not more than twenty-one
(21) Business Days but not less than five (5) Business Days, prior to the date upon which each payment of Monthly Interest is due,
at Company’s sole discretion, all or any portion of the Monthly Interest that is payable on such payment date (in each case,
the “Share Portion”), shall be paid by way of issuance of duly authorized, validly issued, fully paid and non-assessable
and tradeable shares of Common Stock (such number of Common Stock to be issued instead of cash payment, the “Interest
Share Amount”). Notwithstanding anything to the contrary contained in this Section 2(b), until the Shareholder Approval
is obtained, the Monthly Interest on $150,000 of the principal of this Note, shall be payable by cash payment alone in accordance
with Section 2(a) and may not be included in the Share Portion. The Interest Share Amount will be determined by dividing the amount
of the Share Portion set forth in Lender’s exercise notice by a price per share of Common Stock equal to ninety percent
(90%) of the VWAP on the Trading Date immediately preceding the date of the exercise notice (the “Initial Interest Share
Price”). The Parent shall deliver to Lender certificates evidencing the Interest Share Amount within two (2) Business
Days after the date of the exercise notice. If ninety percent (90%) of the average VWAP for the 30 Trading Days prior to and including
the applicable interest payment date or, if the applicable interest payment date is not a Trading Day, on the next succeeding
Trading Day (such price, the “Make Whole Price”), is less than the Initial Interest Share Price, then the Lender shall
be entitled to additional shares of Common Stock as partial (and additional) payment of the Interest Share Amount (such shares,
the “Make Whole Shares”). The quantity of Make Whole Shares will be determined by (y) dividing the amount of
the Share Portion set forth in Lender’s exercise notice by the Make Whole Price, and (z) subtracting therefrom the Interest
Share Amount. The Parent shall deliver to Lender certificates evidencing the Make Whole Shares within two (2) Business Days after
the Interest Deferment Date. The Lender shall have the same rights and remedies with respect to the delivery of any such Interest
Share Amount and the Make Whole Shares as if such shares were being issued pursuant to a voluntary conversion pursuant to Section
7(a).

 

(d)             All
Monthly Interest arising and accruing from and after the Interest Deferment Date, shall be paid in accordance with Section 2(a)
above (except as set forth in Section 2(c) above).

 

3.      
Default Rate. Notwithstanding the foregoing, after the occurrence and during the continuance of an
Event of Default, then, so long as such Event of Default is continuing, all principal of this Note and each fee and other amount
then due and payable by the Company hereunder or under the Credit Agreement (whether at the stated maturity thereof, by acceleration
or otherwise) shall bear interest at a rate per annum equal to six percent (6.00%) plus the rate otherwise applicable to this
Note.

 

4.     
Voluntary Prepayments. The Company may, at its option, prepay this Note in full or in part at any
time and from time to time by notifying the Lender in writing not later than the date of such prepayment specifying the principal
amount of this Note to be prepaid and the date of prepayment. Each such notice shall be irrevocable and the amount specified in
each such notice shall be due and payable on the date specified. Each partial prepayment of this Note pursuant to this Subsection
shall be in an aggregate principal amount of $100,000 or an integral multiple of $50,000 in excess thereof, or, if less than $100,000,
the outstanding principal balance of this Note. In the event the Company prepays this Note in full before the date that is fifteen
(15) Business Days prior to the Maturity Date, the Company shall pay a premium equal to the greater of (i) four percent (4%) or
(ii) the Black Scholes Value of the outstanding principal amount subject to such prepayment. Notwithstanding anything to
the contrary in the foregoing or in any other Loan Document, there shall be no premium or penalty payable by the Company in the
event that the Company either (y) prepays this Note in full on or after the date that is fifteen (15) Business Days prior to the
Maturity Date and before the Maturity Date or (z) repays this Note in full on the Maturity Date. Simultaneously with each prepayment
of this Note, the Company shall prepay all accrued and unpaid interest on the amount prepaid through the date of prepayment. If
no Event of Default exists and if the proceeds arising out of any insurance claim or series of related claims do not exceed $250,000,
loss payments in each instance will be applied by the applicable Credit Party to the repair and/or replacement of property with
respect to which the loss was incurred to the extent reasonably feasible, and any loss payments or the balance thereof remaining,
to the extent not so applied, shall be payable to the applicable Credit Party; provided, however, that payments received by any
Credit Party after an Event of Default occurs and is continuing or in excess of $250,000 for any occurrence or series of related
occurrences shall be paid to the Lender for itself and on behalf of the secured parties under the Security Agreement and, if received
by such Credit Party, shall be held in trust for the secured parties under the Security Agreement and immediately paid over to
the Lender unless otherwise directed in writing by the Lender.

 

    5

     

    

 

5.       Events
of Default.

 

Each of the following shall constitute an "Event
of Default" hereunder:

 

(a)             The
failure of the Company to make any payment of principal on the Loan on the date when due and payable; or

 

(b)             The
failure of the Company to make any payment of interest, Fees, expenses or other amounts payable under any Loan Document which
failure shall have continued unremedied for a period of three Business Days after the date when due and payable; or

 

(c)             The
failure of the Company or the Parent to observe or perform any covenant or agreement contained in Article 7 of the Credit Agreement;
or

 

(d)             The failure of any Credit Party to observe or perform any other term, covenant, or agreement contained in any Loan Document
to which it is a party, which failure shall have continued unremedied for a period of 30 days after the occurrence thereof; or

 

(e)             Any
representation, warranty, certification or statement made by any Credit Party (or any of its officers) in any Loan Document to
which it is a party, or in any certificate, financial statement or other document delivered or to be delivered by it pursuant
thereto, shall prove to have been incorrect or misleading in any material respect when made or deemed made; or

 

(f)             
(i) Any Indebtedness of the Company, the Parent or any Subsidiary Guarantor (other than its obligations hereunder) in an
amount in excess of $100,000, whether as principal, guarantor, surety or other obligor (x) shall become or shall be declared to
be due and payable prior to the expressed maturity thereof, or (y) shall not be paid when due or within any grace period for the
payment thereof, or (ii) any holder of any obligation referred to in clause (i) of this Subsection (f) shall have the right to
declare such obligation due and payable prior to the expressed maturity thereof; or

 

(g)             The
Company, the Parent or any Subsidiary Guarantor shall (i) except as permitted by Section 7.03 or 7.07 of the Credit Agreement,
suspend or discontinue its business, (ii) make an assignment for the benefit of creditors, (iii) generally not be paying its debts
as such debts become due, (iv) admit in writing its inability to pay its debts as they become due, (v) file a voluntary petition
in bankruptcy, (vi) become insolvent (however such insolvency shall be evidenced), (vii) file any petition or answer seeking for
itself any reorganization, arrangement, composition, readjustment of debt, liquidation or dissolution or similar relief under
any present or future statute, law or regulation of any jurisdiction, (viii) petition or apply to any tribunal for any receiver,
custodian or any trustee for any substantial part of its Property, (ix) be the subject of any such proceeding filed against it
which remains undismissed for a period of 60 days, (x) file any answer admitting or not contesting the material allegations of
any such petition filed against it or any order, judgment or decree approving such petition in any such proceeding, (xi) seek,
approve, consent to, or acquiesce in, any such proceeding, or in the appointment of any trustee, receiver, sequestrator, custodian,
liquidator, or fiscal agent for it, or any substantial part of its Property, or an order is entered appointing any such trustee,
receiver, custodian, liquidator or fiscal agent and such order remains in effect for 60 days, or (xii) take any formal action
for the purpose of effecting any of the foregoing or looking to the liquidation or dissolution of the Company or any Subsidiary
Guarantor; or

 

    6

     

    

 

(h)            
(i) An order for relief is entered under the United States bankruptcy laws, or (ii) any other decree or order is entered
by a court having jurisdiction (A) adjudging the Company, the Parent or any Subsidiary Guarantor bankrupt or insolvent, (B) approving
as properly filed a petition seeking reorganization, liquidation, arrangement, adjustment or composition of or in respect of the
Company, the Parent or any Subsidiary Guarantor under the United States bankruptcy laws or any other applicable Federal or state
law, (C) appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Company,
the Parent or any Subsidiary Guarantor or of any substantial part of the Property thereof, or (D) ordering the winding up or liquidation
of the affairs of the Company, the Parent or any Subsidiary Guarantor, and any such decree or order under this clause (ii) continues
unstayed and in effect for a period of 60 days; or

 

(i)             
Judgments or other orders for the payment of money aggregating in excess of $150,000 shall be rendered against the Company
or any Subsidiary Guarantor and shall remain unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period of
30 days; or

 

(j)              Any Loan Document shall cease, for any reason, to be in full force and effect, or the Company or any obligor thereunder
shall so assert in writing or shall disavow any of its obligations thereunder or hereunder; or

 

(k)             An ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably
be expected to result in a Material Adverse Effect; or

 

(l)              A Material Adverse Change shall have occurred; or

 

(m)           
A Change in Control shall have occurred; or

 

(n)             A
Change in Management shall have occurred; or

 

(o)            
Parent does not meet the current public information requirements under Rule 144; or

 

(p)             Parent shall fail for any reason to deliver certificates to the Lender evidencing the Interest Share Amount pursuant to
Section 2(b), or Parent shall provide at any time notice to the Lender, including by way of public announcement, of Parent’s
intention to not honor such obligation in accordance with the terms hereof; or

 

(q)            
Parent shall fail for any reason to deliver certificates to the Lender prior to the fifth Trading Day after a Conversion
Date pursuant to Section 7(c) or Parent shall provide at any time notice to the Lender, including by way of public announcement,
of Parent’s intention to not honor requests for conversions of any Notes in accordance with the terms hereof; or not

 

(r)            
  an event resulting in the Common Stock of the Parent no longer being listed or quoted on a Trading Market, or notification
from a Trading Market that the Parent is not in compliance with the conditions for such continued quotation and such non-compliance
continues for twenty (20) days following such notification; or

 

(s)            
 a Commission or judicial stop trade order or suspension from the Parent’s principal Trading Market; or

 

(t)             
  the Parent effectuates a reverse split of its Common Stock without ten (10) days prior written notice to the Lender.

 

    7

     

    

 

6.      
Remedies.

 

Upon the occurrence
of an Event of Default or at any time thereafter during the continuance thereof, (a) if such event is an Event of Default specified
in Section 8.01(g) or Section 8.01(h) of the Credit Agreement, (i) the Loan, all accrued and unpaid interest thereon and all other
amounts owing under the Loan Documents shall immediately become due and payable, (ii) the Commitment shall immediately terminate
and (iii) the Lender may exercise any and all remedies and other rights provided in the Loan Documents, and (b) if such event is
any other Event of Default, any or all of the following actions may be taken: (i) the Lender may by notice to the Company, (x)
declare the Loan, all accrued and unpaid interest thereon and all other amounts owing under any Loan Documents to be due and payable,
whereupon the same shall immediately become due and payable, and (y) declare the Commitment to be immediately terminated, and (ii)
the Lender may exercise any and all remedies and other rights provided in the Loan Documents, presentment, demand, protest and
all other notices of any kind being in each case hereby expressly waived by the Company.

 

7.       Conversion.

 

(a)             Voluntary
Conversion. At any time after the receipt of Shareholder Approval until this Note is no longer outstanding, all or any portion
of the outstanding principal amount of this Note, plus any accrued and unpaid interest on such amount that is outstanding on the
Conversion Date shall be convertible, in whole or in part, into shares of Common Stock at the option of the Lender, at any time
and from time to time (subject to the conversion limitations set forth in Section 7(d) hereof). The Lender shall effect conversions
by delivering to Parent a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice
of Conversion”), specifying therein the principal amount of this Note and accrued interest, if any, to be converted
and the date on which such conversion shall be effected (each such date, a “Conversion Date”). If no Conversion
Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered
hereunder. To effect conversions hereunder, the Lender shall not be required to physically surrender this Note to Parent unless
the entire principal amount of this Note has been so converted. Conversions hereunder shall have the effect of lowering the outstanding
principal amount of this Note in an amount equal to the applicable conversion. The Lender and Parent shall maintain records showing
the principal amount(s) converted and the date of such conversion(s). Parent may deliver an objection to any Notice of Conversion
within one (1) Business Day of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records
of the Lender shall be controlling and determinative in the absence of manifest error. The Lender, and any assignee by acceptance
of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of
the Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof.

 

(b)          
Conversion Price. The conversion price for the principal and interest, if any, in connection with voluntary
conversions by the Lender pursuant to clause (a) above shall be two dollars ($2.00) per share of Common Stock, subject to adjustment
herein (the “Conversion Price”).

 

(c)           
Mechanics of Conversion.

 

(i)            
Conversion Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a
conversion hereunder shall be determined by the quotient obtained by dividing (x) the amount to be converted plus interest, if
any, elected by the Lender to be converted by (y) the Conversion Price.

 

(ii)            
Delivery of Certificate Upon Conversion. Not later than two (2) Trading Days after each Conversion Date (the “Share
Delivery Date”), Parent shall deliver, or cause to be delivered, to the Lender a certificate or certificates representing
the Conversion Shares, which, on the Share Delivery Date shall be free of restrictive legends and trading restrictions representing
the number of Conversion Shares being acquired upon the conversion of this Note. Parent shall use its best efforts to deliver
any certificate or certificates required to be delivered by Parent under this Section 7(c) electronically through the Depository
Trust Company or another established clearing corporation performing similar functions.

 

    8

     

    

 

(iii)           
Failure to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are
not delivered to or as directed by the applicable Lender by the Share Delivery Date, the Lender shall be entitled to elect by
written notice to Parent at any time on or before its receipt of such certificate or certificates, to rescind such Conversion,
in which event Parent shall promptly return to the Lender any original Note delivered to Parent and the Lender shall promptly
return to Parent the Common Stock certificates issued to such Lender pursuant to the rescinded Conversion Notice.

 

(iv)           
Obligation Absolute; Partial Liquidated Damages. Parent’s obligations to issue and deliver the Conversion
Shares upon conversion of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action
or inaction by the Lender to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any
judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination,
or any breach or alleged breach by the Lender or any other Person of any obligation to Parent or any violation or alleged violation
of law by the Lender or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation
of Parent to the Lender in connection with the issuance of such Conversion Shares; provided, however, that such
delivery shall not operate as a waiver by Parent of any such action Parent may have against the Lender. In the event the Lender
of this Note shall elect to convert any or all of the outstanding principal amount hereof, Parent may not refuse conversion based
on any claim that the Lender or anyone associated or affiliated with the Lender has been engaged in any violation of law, agreement
or for any other reason, unless an injunction from a court, on notice to Lender, restraining and or enjoining conversion of all
or part of this Note shall have been sought and obtained, and Parent posts a surety bond for the benefit of the Lender in the
amount of 150% of the outstanding principal amount of this Note, which is subject to the injunction, which bond shall remain in
effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to
the Lender to the extent it obtains judgment. In the absence of such injunction, Parent shall issue Conversion Shares or, if applicable,
cash, upon a properly noticed conversion. If Parent fails for any reason to deliver to the Lender such certificate or certificates
pursuant to Section 7(c)(ii) by the Share Delivery Date, Parent shall pay to the Lender, in cash, as liquidated damages and not
as a penalty, for each $1,000 of principal amount being converted, $10 per Trading Day (increasing to $20 per Trading Day on the
fifth (5th) Trading Day after such liquidated damages being to accrue) for each Trading Day after such Share Delivery
Date until such certificates are delivered or Lender rescinds such conversion. Nothing herein shall limit a Lender’s right
to pursue actual damages or declare an Event of Default pursuant to Section 8 hereof for Parent’s failure to deliver Conversion
Shares within the period specified herein and the Lender shall have the right to pursue all remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of
any such rights shall not prohibit the Lender from seeking to enforce damages pursuant to any other Section hereof or under applicable
law.

 

(v)             Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available to the Lender,
if Parent fails for any reason to deliver to the Lender such certificate or certificates by the Share Delivery Date pursuant to
Section 7(c)(ii), and if after such Share Delivery Date the Lender is required by its brokerage firm to purchase (in an open market
transaction or otherwise), or the Lender or Lender’s brokerage firm otherwise purchases, shares of Common Stock to deliver
in satisfaction of a sale by the Lender of the Conversion Shares which the Lender was entitled to receive upon the conversion
relating to such Share Delivery Date (a “Buy-In”), then Parent shall (A) pay in cash to the Lender (in addition
to any other remedies available to or elected by the Lender) the amount, if any, by which (x) the Lender’s total purchase
price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate
number of shares of Common Stock that the Lender was entitled to receive from the conversion at issue multiplied by (2) the actual
sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions)
and (B) at the option of the Lender, either reissue (if surrendered) this Note in a principal amount equal to the principal amount
of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Lender the number of shares
of Common Stock that would have been issued if Parent had timely complied with its delivery requirements under Section 7(c)(ii).
For example, if the Lender purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
Parent shall be required to pay the Lender $1,000. The Lender shall provide Parent written notice indicating the amounts payable
to the Lender in respect of the Buy-In and, upon request of Parent, evidence of the amount of such loss. Nothing herein shall
limit a Lender’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with respect to Parent’s failure to timely deliver certificates
representing shares of Common Stock upon conversion of this Note as required pursuant to the terms hereof.

 

    9

     

    

 

(vi)            
Reservation of Shares Issuable Upon Conversion. Parent covenants that it will at all times reserve and keep available
out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Note as herein
provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Lender (and the
other holders of the Notes), not less than 125% of the aggregate number of shares of the Common Stock as shall be issuable (taking
into account the adjustments and restrictions of Section 8) upon the conversion of the then outstanding principal amount of this
Note and interest which has accrued and would accrue on such principal amount assuming such principal amount was not converted
through the Maturity Date. Parent covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly
authorized, validly issued, fully paid and nonassessable.

 

(vii)         
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion
of this Note. As to any fraction of a share which the Lender would otherwise be entitled to purchase upon such conversion, Parent
shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Conversion Price or round up to the next whole share.

 

(viii)         
Transfer Taxes and Expenses. The issuance of certificates for shares of the Common Stock on conversion of this Note
shall be made without charge to the Lender hereof for any documentary stamp or similar taxes that may be payable in respect of
the issue or delivery of such certificates, provided that, Parent shall not be required to pay any tax that may be payable in
respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that
of the Lender of this Note so converted and Parent shall not be required to issue or deliver such certificates unless or until
the Person or Persons requesting the issuance thereof shall have paid to Parent the amount of such tax or shall have established
to the satisfaction of Parent that such tax has been paid. Parent shall pay all Transfer Agent fees required for same-day
processing of any Notice of Conversion.

 

8.       Certain
Adjustments.

 

(a)            
Stock Dividends and Stock Splits. If Parent, at any time while this Note is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock
Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by Parent upon conversion of the
Notes), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of
a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of a reclassification
of shares of the Common Stock, any shares of capital stock of Parent, then the Conversion Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of Parent) outstanding immediately
before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such
event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date
in the case of a subdivision, combination or re-classification.

 

    10

     

    

 

(b)           
Subsequent Equity Sales. If, at any time while this Note is outstanding, the Parent or any Subsidiary, as applicable,
sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces
any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person
to acquire Common Stock at an effective price per share that is lower than the Conversion Price (such lower price, the “Base
Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the
Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which
are issued in connection with such issuance, be entitled to receive Common Stock at an effective price per share that is lower
than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the
Dilutive Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price, subject to adjustment for reverse
and forward stock splits and the like. Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are
issued. Notwithstanding the foregoing, no adjustment will be made under this Section 8(b) in respect of an Exempt Issuance. If
the Parent enters into a Variable Rate Transaction, the Parent shall be deemed to have issued Common Stock or Common Stock Equivalents
at the lowest possible conversion price at which such securities may be converted or exercised. Notwithstanding anything herein
to the contrary, this Section 8(b) shall not apply until receipt of the Shareholder Approval pursuant to Nasdaq Listing Rule 5635(d)
unless the Parent is not then subject to Nasdaq Listing Rule 5635(d). The Company and the Parent shall notify the Lender in writing,
no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 8(b),
indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing
terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Parent
provides a Dilutive Issuance Notice pursuant to this Section 8(b), upon the occurrence of any Dilutive Issuance, the Lender
is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive
Issuance, regardless of whether the Lender accurately refers to the Base Conversion Price in the Notice of Conversion.

 

(c)            
Subsequent Rights Offerings. In addition to any adjustments pursuant to Sections 8(a) and (b) above, if at any
time Parent grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property
pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Lender
will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Lender
could have acquired if the Lender had held the number of shares of Common Stock acquirable upon complete conversion of this Note
(without regard to any limitations on exercise hereof, if any) immediately before the date on which a record is taken for the
grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

 

(d)           
Pro Rata Distributions. During such time as this Note is outstanding, if Parent shall declare or make any dividend
whether or not permitted, or makes any other distribution of its assets (or rights to acquire its assets) to holders of shares
of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other
securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement
or other similar transaction) (a “Distribution”), at any time after the issuance of this Note, then, in each
such case, the Lender shall be entitled to participate in such Distribution to the same extent that the Lender would have participated
therein if the Lender had held the number of shares of Common Stock acquirable upon complete exercise of this Note (without regard
to any limitations on exercise hereof, if any) immediately before the date of which a record is taken for such Distribution, or,
if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation
in such Distribution.

 

    11

     

    

 

(e)           
Fundamental Transaction. If, at any time while this Note is outstanding, (i) Parent, directly or indirectly,
in one or more related transactions effects any merger or consolidation of Parent with or into another Person, (ii) Parent, directly
or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by Parent or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender
or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding
Common Stock, (iv) Parent, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, (v) Parent, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making
or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or
other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this
Note, the Lender shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion
immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 7(d) on the conversion
of this Note), the number of shares of Common Stock of the successor or acquiring corporation or of Parent, if it is the surviving
corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such
Fundamental Transaction by a holder of the number of shares of Common Stock for which this Note is convertible immediately prior
to such Fundamental Transaction (without regard to any limitation in Section 7(d) on the conversion of this Note). For purposes
of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in such Fundamental Transaction,
and Parent shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Lender shall be given the same choice as to the Alternate
Consideration it receives upon any conversion of this Note following such Fundamental Transaction. Parent shall cause any successor
entity in a Fundamental Transaction in which Parent is not the survivor (the “Successor Entity”) to assume
in writing all of the obligations of Parent under this Note, the Credit Agreement, the Security Agreement, the Parent Guaranty,
and the other Loan Documents (as defined in the Credit Agreement) in accordance with the provisions of this Section 8(e) pursuant
to written agreements in form and substance reasonably satisfactory to the Lender and approved by the Lender (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Note, deliver to the Lender in exchange
for this Note a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Note which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Note (without regard to any
limitations on the conversion of this Note) prior to such Fundamental Transaction, and with a conversion price which applies the
conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common
Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital
stock and such conversion price being for the purpose of protecting the economic value of this Note immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Lender. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to the “Parent”
shall refer instead to the Successor Entity), and may exercise every right and power of Parent and shall assume all of the obligations
of Parent under this Note and the other Transaction Documents with the same effect as if such Successor Entity had been named
as Parent herein.

 

(f)              Calculations.
All calculations under this Section 8 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may
be. For purposes of this Section 8, the number of shares of Common Stock deemed to be issued and outstanding as of a given
date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of Parent) issued and
outstanding.

 

    12

     

    

 

(g)             Notice
to the Lender.

 

(i)              Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 8, Parent shall promptly
deliver to each Lender a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of
the facts requiring such adjustment.

 

(ii)             
Notice to Allow Conversion by Lender. If (A) Parent shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) Parent shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock,
(C) Parent shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of Parent shall be required in
connection with any reclassification of the Common Stock, any consolidation or merger to which Parent is a party, any sale or
transfer of all or substantially all of the assets of Parent, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property or (E) Parent shall authorize the voluntary or involuntary dissolution, liquidation or
winding up of the affairs of Parent, then, in each case, Parent shall cause to be filed at each office or agency maintained for
the purpose of conversion of this Note, and shall cause to be delivered to the Lender at its last address as it shall appear upon
the Note Register, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified,
a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights
or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled
to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it
is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided
that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the
corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains,
material, non-public information regarding Parent or any of the Subsidiaries, Parent shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K. The Lender shall remain entitled to convert this Note during the 20-day
period commencing on the date of such notice through the effective date of the event triggering such notice except as may otherwise
be expressly set forth herein.

 

(h)            Nasdaq
Approval. Until the Parent receives the approval of its shareholders for the issuance of the Conversion Shares pursuant to
Nasdaq Listing Rule 5635(d) and for so long as such requirement is applicable to the Parent, the Parent may not issue any Interest
Share Amount in violation of such Listing Rule nor additional Conversion Shares resulting from a Dilutive Issuance in excess of
the amount of Conversion Shares issuable prior to the reduction of the Conversion Price due to the Dilutive Issuance adjustment.

 

9.      
[Reserved]

 

    13

     

    

 

10.    
Lender Voting Rights; Rights to Receive Distributions. Except as otherwise specifically provided
herein, prior to the issuance to the Lender of the Conversion Shares to which the Lender is then entitled to receive upon the
due exercise of the Conversion Right, the Lender shall not be entitled to vote or receive distributions or dividends or be deemed
the holder of Common Stock of the Parent for such purposes, nor shall anything contained herein be construed to confer upon the
Lender, as such, any right to vote, give or withhold consent to any action, receive notice of meetings or other actions by stock
holders of Parent, receive distributions, dividends or subscription rights, or otherwise. In addition, nothing contained herein
shall be construed as imposing any liabilities on the Lender to purchase any securities (upon exercise of the Conversion Right
or otherwise) or as a stockholder of the Parent, whether such liabilities are asserted by the Company or by creditors of the Parent
or the Company. Notwithstanding this Section 10, the Parent shall provide the Lender with copies of the same notices and other
information given to the stockholders of the Parent generally, contemporaneously with the giving thereof to its stockholders.

 

11.     Successors
and Assigns. Subject to the restrictions on transfer described in Sections 13 and 14 hereof, the rights
and obligations of the Company and Lender shall be binding upon and benefit the successors, permitted assigns and transferees
of the parties.

 

12.     Waiver
and Amendment. Any provision of this Note may be amended, waived or modified only upon the written consent of the Company
and the Lender.

 

13.     Transfer
of this Note by Lender. Subject to the transfer conditions referred to in the legend endorsed hereon, this Note may be
transferred by Lender only in accordance with Section 9.03 of the Credit Agreement.

 

14.    
Assignment by the Company. Neither this Note nor any of the rights, interests or obligations hereunder
may be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of Lender.

 

15.    
Notices.All notices, requests, demands, consents, instructions or other communications pursuant
to this Note shall be in writing, either by letter (delivered by nationally recognized overnight courier service or sent by registered
or certified mail, return receipt requested), facsimile transmission or other electronic means to each party at the respective
addresses, facsimile numbers and email addresses of the parties as set forth in the Credit Agreement. Any notice, request, demand
or other communication hereunder shall be deemed to have been given on: (x) the day on which it is sent by facsimile transmission
or other electronic means to such party at its facsimile number or email address specified above (provided such notice shall be
effective only if followed by one of the other methods of delivery set forth herein) or delivered by a nationally recognized overnight
courier service to such party at its address specified above, or (y) on the third Business Day after the day deposited in the
mail, postage prepaid, if sent by mail. Any party hereto may change the Person, address or facsimile number to whom or which notices
are to be given hereunder, by notice duly given hereunder; provided that any such notice shall be deemed to have been given hereunder
only when actually received by the party to which it is addressed.

 

16.      Payment.
Payment shall be made in lawful tender of the United States.

 

17.   
  Expenses. If action is instituted to collect this Note after the occurrence of any Event of
Default, the Company promises to pay all costs and expenses, including, without limitation, reasonable attorneys’ fees and
costs, incurred in connection with such action, in each case to the extent required by Section 9.06 of the Credit Agreement.

 

    14

     

    

 

18.   
Governing Law. This Note and all actions arising out of or in connection with this Note shall be
governed by and construed in accordance with the laws of the State of New York, without regard to the conflicts of law provisions
of the State of New York, or of any other state.

 

19.    
Amendment and Restatement of Existing Note. This Note amends and restates that certain Amended And
Restated Promissory Note issued to the Lender by the Company on August 8, 2018 in the original principal amount of $6,500,000
(the “Existing Note”) in its entirety. Upon the issuance of this Note, the Existing Note shall be deemed superseded
by this Note without any further action by the Lender or the Company. The indebtedness evidenced by the Existing Note is continuing
indebtedness, and nothing in this Note shall be deemed to constitute a payment, settlement or novation of the Existing Note, or
the release of, or otherwise adversely affect any lien or security interest securing such indebtedness or any rights of Lender
against the undersigned, or any guarantor of this Note or the Existing Note. Upon receipt of this Note Lender, at the Company’s
request shall surrender the Existing Note to the Company. All of the obligations of the Company and all Guarantors and the Parent
shall, from and after execution and delivery of this Note by the Company, continue in full force and effect as set forth herein.

 

(Signature Page Follows)

 

    15

     

    

 

 

IN WITNESS
WHEREOF, the Company has caused this Note to be issued as of the date first written above.

 

	 	XPRESSPA
    HOLDINGS, LLC
	 	 
	 	By: 	/s/ Douglas Satzman
	 	Name: 	Douglas Satzman
	 	Its: 	President

 

 

[Signature
Page to 3rd Amended & Restated Convertible Promissory Note]

    16

     

    

 

[FORM OF NOTICE OF CONVERSION]

 

The undersigned
hereby elects to convert principal under the Third Amended And Restated Convertible Promissory Note dated January [●], 2020,
of XPRESSPA HOLDINGS, LLC, a Delaware limited liability company (the “Company”), promises to pay to B3D, LLC,
a North Carolina limited liability company, into shares of common stock (the “Common Stock”), of the Company’s
Parent XpresSpa Group, Inc., a Delaware corporation (the “Parent”), according to the conditions hereof, as of
the date written below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned
will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably
requested by Parent in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer
taxes, if any.

 

The undersigned
agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer
of the aforesaid shares of Common Stock. Conversion calculations:

 

	 	Date to Effect
    Conversion:
	 	 
	 	Principal Amount of Note
    to be Converted:
	 	$                                  
	 	 
	 	Accrued Interest to be
    Converted, if any: $                      
	 	 
	 	Conversion Price: $                                  
	 	 
	 	Number of shares of Common
    Stock to be issued:
	 	                           
	 	 
	 	Signature:	                               	 
	 	 	 	 
	 	Name:	 	 
	 	 
	 	Address for Delivery
    of Common Stock Certificates:
	 	 
	 	Or

	 	DWAC Instructions:	 

 

	 	Broker No:	 

	 	Account No:

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