Document:

Exhibit
10.1

 

Execution
Version

 

First
Amendment to Credit Agreement 

 

This
First Amendment to Credit Agreement (this
 “First Amendment”), dated as of June 18, 2020 (the “First Amendment Effective Date”), is
among Bonanza Creek Energy, Inc.,
a Delaware corporation (the “Borrower”); each of the undersigned guarantors (the “Guarantors”,
and together with the Borrower, the “Credit Parties”); each of the Lenders that is a signatory hereto; and
JPMorgan Chase Bank, N.A., as administrative
agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).

 

Recitals

 

A.      The
Borrower, the Administrative Agent, the Lenders and the Issuing Banks are parties to that certain Credit Agreement dated as of
December 7, 2018 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”),
pursuant to which the Lenders have, subject to the terms and conditions set forth therein, made certain credit available to and
on behalf of the Borrower.

 

B.       The
parties hereto desire to enter into this First Amendment to, among other things, (i) amend the Credit Agreement as set forth in
Section 2 hereof, (ii) evidence the decrease of the Borrowing Base from $375,000,000 to $260,000,000 as set forth in Section
3.1 hereof and (iii) evidence the decrease of the Elected Loan Limit from $350,000,000 to $260,000,000 as set forth in Section
3.2 hereof, in each case, as set forth herein and to be effective as of the First Amendment Effective Date.

 

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

 

Section
1.                   Defined Terms.
Each capitalized term which is defined in the Credit Agreement, but which is not defined in this First Amendment, shall have the
meaning ascribed such term in the Credit Agreement, as amended hereby. Unless otherwise indicated, all section references in this
First Amendment refer to the Credit Agreement.

 

Section
2.                  Amendments.
In reliance on the representations, warranties, covenants and agreements contained in this First Amendment, and subject to the
satisfaction of the conditions precedent set forth in Section 4 hereof, the Credit Agreement shall be amended effective
as of the First Amendment Effective Date, in the manner provided in this Section 2.

 

2.1     
Additional Definitions. Section 1.02 of the Credit Agreement is hereby amended to add thereto in alphabetical order the
following definitions which shall read in full as follows:

 

   “BHC
Act Affiliate” means, as to any Person, an “affiliate” (as such term is defined under, and interpreted in
accordance with, 12 U.S.C. 1841(k)) of such Person.

 

    	 	 	 

     

    

 

“Consolidated
Cash Balance” means the aggregate amount of (a) cash, (b) cash equivalents and (c) any other marketable securities,
treasury bonds and bills, certificates of deposit, investments in money market funds and commercial paper, in each case, held
or owned by (either directly or indirectly), credited to the account of or that would otherwise be required to be reflected as
an asset on the balance sheet of the Borrower or any other Credit Party; provided that the Consolidated Cash Balance shall
exclude (i) any cash or cash equivalents for which the Borrower or any other Credit Party have issued checks or initiated wires
or ACH transfers in order to utilize such cash or cash equivalents, (ii) cash or cash equivalents in an amount not to exceed $5,000,000
in the aggregate for which the Borrower or any other Credit Party in their respective good faith discretion, will issue checks
or initiate wires or ACH transfers within five (5) Business Days in order to utilize such cash or cash equivalents, (iii) any
cash or cash equivalents set aside to pay royalty obligations, working interest obligations, production payments and severance
taxes of the Borrower or any other Credit Party then due and owing to third parties and for which the Borrower or such other Credit
Party has issued checks or has initiated wires or ACH transfers (or, in their respective good faith discretion, will issue checks
or initiate wires or ACH transfers within five (5) Business Days in order to make such payments), (iv) any cash or cash equivalents
set aside to pay (1) payroll, (2) payroll taxes, (3) other taxes, (4) employee wage and benefit payments, and (5) trust and fiduciary
obligations, of the Borrower or any other Credit Party then due and owing (or, in their respective good faith discretion, will
become due and owing within five (5) Business Days), and (v) any cash or cash equivalents of the Borrower or any other Credit
Party constituting purchase price deposits held in escrow pursuant to a binding and enforceable purchase and sale agreement with
a third party that is not an Affiliate of the Borrower or any Credit Party containing customary provisions regarding the payment
and refunding of such deposits and otherwise permitted under this Agreement.

 

“Covered
Entity” means any of the following: (a) a “covered entity” as that term is defined in, and interpreted in
accordance with, 12 C.F.R. § 252.82(b); (b) a “covered bank” as that term is defined in, and interpreted in accordance
with, 12 C.F.R. § 47.3(b); or (c) a “covered FSI” as that term is defined in, and interpreted in accordance with,
12 C.F.R. § 382.2(b)

 

“Covered
Party” has the meaning given to such term in Section 12.21.

 

“Default
Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§
252.81, 47.2 or 382.1, as applicable.

 

“First
Amendment” means that certain First Amendment to Credit Agreement dated as of June 18, 2020, among the Borrower, the
Guarantors party thereto, the Administrative Agent and the Lenders party thereto.

 

“QFC”
has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with,
12 U.S.C. 5390(c)(8)(D).

 

    	 	Page 2	 

     

    

 

“QFC
Credit Support” has the meaning given to such term in Section 12.21.

 

“Supported
QFC” has the meaning given to such term in Section 12.21.

 

“U.S.
Special Resolution Regimes” has the meaning given to such term in Section 12.21.

 

2.2         
Amended Definition. The following definition contained in Section 1.02 of the Credit Agreement is hereby amended and restated
in its entirety to read in full as follows:

 

“Loan
Documents” means this Agreement, the First Amendment, the Notes, the Letter of Credit Agreements, the Letters of Credit,
the Security Instruments, the Guarantee Agreement and the Proposal Letter.

 

2.3         
Amendment to Section 3.03 of the Credit Agreement. Section 3.03 of the Credit Agreement is hereby amended by adding a new
clause (e) thereto immediately following the existing clause (d) therein to read in full as follows:

 

(e)        Additional
Mandatory Prepayments—Application in Connection with Consolidated Cash Balance. If, at the end of the first Business
Day of any week, the Consolidated Cash Balance exceeds $35,000,000, then the Borrower shall, on the next Business Day, prepay
the Revolving Credit Borrowings in an aggregate principal amount equal to such excess. Each prepayment of Revolving Credit Borrowings
pursuant to this Section 3.03(e) shall be applied in the same manner as set forth in Section 3.03(c)(iv) and shall
be accompanied by accrued interest on the amount prepaid to the extent required by Section 3.02.

 

2.4         
Amendment to Section 6.02(a) of the Credit Agreement. Section 6.02(a) of the Credit Agreement is hereby amended and restated
in its entirety to read in full as follows:

 

(a)      
At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such
Letter of Credit, as applicable, (i) no Default or Borrowing Base Deficiency shall have occurred and be continuing and (ii) the
Consolidated Cash Balance shall not exceed the greater of (A) $35,000,000 or (B) expenditures in respect of the oil and gas properties
of the Borrower permitted hereunder in the ordinary course of business as agreed to by the Administrative Agent at the time of
such credit event and subject to the Administrative Agent receiving prior written notice of such request on or prior to the date
of delivery of the applicable Revolving Credit Borrowing Request in accordance with Section 2.03 or request for a Letter of Credit
in accordance with Section 2.07(b).

 

2.5         
Amendment to Section 9.01(b) of the Credit Agreement. Section 9.01(b) of the Credit Agreement is hereby amended by replacing
the reference to “4.0” appearing therein with a reference to “3.5”.

 

    	 	Page 3	 

     

    

 

2.6        
 Amendment to Section 9.04(d)(ii)(A) of the Credit Agreement. Section 9.04(d)(ii)(A) of the Credit Agreement is hereby amended
by replacing the reference to “3.25” appearing therein with a reference to “2.75”.

 

2.7        
Amendment to Section 9.05(k)(ii)(A) of the Credit Agreement. Section 9.05(k)(ii)(A) of the Credit Agreement is hereby amended
by replacing the reference to “3.25” appearing therein with a reference to “2.75”.

 

2.8        
Amendment to Section 9.15(b)(iii)(C) of the Credit Agreement. Section 9.15(b)(iii)(C) of the Credit Agreement is hereby
amended by replacing the reference to “3.25” appearing therein with a reference to “2.75”.

 

2.9         
Amendment to Article XII of the Credit Agreement. Article XII of the Credit Agreement is hereby by amended by adding a
new Section 12.21 immediately following Section 12.20 of the Credit Agreement, which new Section 12.21 shall read in full as follows:

 

Section
12.21           Acknowledgment Regarding Any Supported QFCs. To the extent that the Loan Documents provide
support, through a guarantee or otherwise, for any Swap Agreement or any other agreement or instrument that is a QFC (such support,
 “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and
agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance
Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder,
the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions
below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws
of the State of New York and/or of the United States or any other state of the United States).

 

In
the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a
proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support
(and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing
such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would
be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest,
obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event
a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime,
Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be
exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised
under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States
or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of
the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported
QFC or any QFC Credit Support.

 

    	 	Page 4	 

     

    

 

2.10        
Replacement of Schedule 1.1. Schedule 1.1 to the Credit Agreement is hereby replaced in its entirety with Schedule 1.1
hereto and Schedule 1.1 hereto shall be deemed to be attached as Schedule 1.1 to the Credit Agreement.

 

Section
3.                    Borrowing
Base and Election of Elected Loan Limit.

 

3.1          
Borrowing Base. The Administrative Agent and the Lenders party hereto hereby agree that, effective as of the First Amendment
Effective Date, the Borrowing Base is hereby reduced from $375,000,000 to $260,000,000, and the Borrowing Base shall remain at
$260,000,000 until the next Scheduled Redetermination, Interim Redetermination or other adjustment of the Borrowing Base thereafter,
whichever occurs first pursuant to the terms of the Credit Agreement. The Borrower and the Lenders acknowledge that the redetermination
of the Borrowing Base provided for in this Section 3.1 shall constitute the Scheduled Redetermination of the Borrowing
Base scheduled to occur on or about May 1, 2020 for purposes of Section 2.06 of the Credit Agreement. This First Amendment constitutes
a New Borrowing Base Notice delivered pursuant to Section 2.06(d) of the Credit Agreement with respect to the Borrowing Base decrease
provided for in this Section 3.1.

 

3.2          
Election of Elected Loan Limit. In connection with the Borrowing Base decrease provided for in Section 3.1 hereof,
this First Amendment constitutes the Borrower’s election for the Elected Loan Limit to equal $260,000,000. Contemporaneously
with the effectiveness of the Borrowing Base decrease pursuant to Section 3.1 hereof, the parties agree that the Elected
Loan Limit shall be $260,000,000 until subsequently decreased or increased pursuant to Section 2.01(b) of the Credit Agreement.

 

Section
4.                    Conditions
Precedent. The effectiveness of this First Amendment is subject to the following:

 

4.1          
Counterparts. The Administrative Agent shall have received counterparts of this First Amendment from the Credit Parties
and the Lenders constituting the Required Lenders.

 

4.2          
Fees. The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the First
Amendment Effective Date.

 

4.3          
Other Documents. The Administrative Agent shall have received such other documents as the Administrative Agent or counsel
to the Administrative Agent may reasonably request.

 

Section
5.                    Miscellaneous.

 

5.1          
Confirmation and Effect. The provisions of the Credit Agreement (as amended by this First Amendment) shall remain in full
force and effect in accordance with its terms following the effectiveness of this First Amendment, and this First Amendment shall
not constitute a waiver of any provision of the Credit Agreement or any other Loan Document. Each reference in the Credit Agreement
to “this Agreement”, “hereunder”, “hereof’, “herein”, or words of like import
shall mean and be a reference to the Credit Agreement as amended hereby, and each reference to the Credit Agreement in any other
document, instrument or agreement executed and/or delivered in connection with the Credit Agreement shall mean and be a reference
to the Credit Agreement as amended hereby.

 

    	 	Page 5	 

     

    

 

5.2          
Ratification and Affirmation of Credit Parties. Each of the Credit Parties hereby expressly (i) acknowledges the terms
of this First Amendment, (ii) ratifies and affirms its obligations under the Loan Documents to which it is a party, (iii) acknowledges,
renews and extends its continued liability under the Loan Documents to which it is a party, (iv) agrees, with respect to each
Credit Party that is a Guarantor, that its Guarantee under the Guarantee Agreement remains in full force and effect with respect
to the Obligations as amended hereby, (v) represents and warrants to the Lenders and the Administrative Agent that each representation
and warranty of such Credit Party contained in the Credit Agreement and the other Loan Documents to which it is a party is true
and correct in all material respects as of the date hereof and after giving effect to the amendments set forth in Section 2
hereof except (A) to the extent any such representations and warranties are expressly limited to an earlier date, in which
case, on and as of the date hereof, such representations and warranties shall continue to be true and correct in all material
respects as of such specified earlier date, and (B) to the extent that any such representation and warranty is expressly qualified
by materiality or by reference to Material Adverse Effect, such representation and warranty (as so qualified) shall continue to
be true and correct in all respects, (vi) represents and warrants to the Lenders and the Administrative Agent that the execution,
delivery and performance by such Credit Party of this First Amendment are within such Credit Party’s corporate, limited
partnership or limited liability company powers (as applicable), have been duly authorized by all necessary action and that this
First Amendment constitutes the valid and binding obligation of such Credit Party enforceable in accordance with its terms, except
as the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally,
and (vii) represents and warrants to the Lenders and the Administrative Agent that, after giving effect to this First Amendment,
no Event of Default exists.

 

5.3          
Counterparts. This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts,
and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this First
Amendment by fax or electronic transmission (e.g. “.pdf”) shall be effective as delivery of a manually executed original
counterpart hereof.

 

5.4          
No Oral Agreement. This written First Amendment, the Credit Agreement and the other
Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be
contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties. There are no subsequent oral
agreements between the parties that modify the agreements of the parties in the Credit Agreement and the other Loan Documents.

 

5.5          
Governing Law. This First Amendment (including, but not limited to, the validity
and enforceability hereof) shall be governed by, and construed in accordance with, the laws of the State of New York.

 

    	 	Page 6	 

     

    

 

5.6          
Payment of Expenses. The Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket
costs and expenses incurred in connection with this First Amendment, any other documents prepared in connection herewith and the
transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative
Agent.

 

5.7          
Severability. Any provision of this First Amendment which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

 

5.8          
Successors and Assigns. This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

 

[Signature
Pages Follow.]

 

    	 	Page 7	 

     

    

 

The
parties hereto have caused this First Amendment to be duly executed as of the day and year first above written.

 

	BORROWER:	BONANZA
    CREEK ENERGY, INC.
	 	 	 
	 	By:	/s/ Brant H. DeMuth 
	 	Name:	Brant
    H. DeMuth
	 	Title:	Executive
    Vice President and Chief Financial Officer 

 

[SIGNATURE
PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT – BONANZA CREEK ENERGY, INC.]

 

    	 	 	 

     

    

 

	GUARANTORS:	BONANZA
    CREEK ENERGY OPERATING COMPANY, LLC 
	 	 	 
	 	By:	/s/ Cyrus D. Marter IV 
	 	Name:	Cyrus
    D. Marter IV
	 	Title:	President
	 	 	 
	 	HOLMES
    EASTERN COMPANY, LLC 
	 	 
	 	By:	/s/ Cyrus D. Marter IV 
	 	Name:	Cyrus
    D. Marter IV
	 	Title:	President
	 	 	 
	 	ROCKY
    MOUNTAIN INFRASTRUCTURE, LLC 
	 	 	 
	 	By:	/s/ Cyrus D. Marter IV 
	 	Name:	Cyrus
    D. Marter IV
	 	Title:	President

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	JPMORGAN
        CHASE BANK, N.A.,

        as
        Administrative Agent and a Lender

	 	 	 
	 	By:	/s/ Darren Vanek 
	 	Name:	Darren
        Vanek

	 	Title:	Authorized
    Officer

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	KEYBANK
        NATIONAL ASSOCIATION,

as
a Lender

	 	 	 
	 	By:	/s/ George E. McKean
	 	Name:	 George E. McKean

	 	Title:	Senior Vice President

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	BANK
    OF AMERICA, N.A.,
	 	as
    a Lender
	 	 	 
	 	By:	/s/ Ronald E. McKaig
	 	Name:	Ronald
E. McKaig
	 	Title:	Managing Director

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	CAPITAL
    ONE, NATIONAL ASSOCIATION,
	 	as
    a Lender
	 	 	            
	 	By:	/s/ Christopher Kuna 
	 	Name:	Christopher
Kuna 
	 	Title:	Senior Director 

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	BMO
    HARRIS FINANCING, INC.,
	 	as
    a Lender
	 	 	 
	 	By:	/s/ Hill Taylor
	 	Name:	Hill
Taylor
	 	Title:	Vice President 

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	CITIBANK,
    N.A.,
	 	as
    a Lender
	 	 	 
	 	By:	/s/ Cliff Vaz
	 	Name:	Cliff
Vaz 
	 	Title:	Vice President

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	TRUIST
    BANK (as successor by merger to  SunTrust Bank),
	 	as
    a Lender
	 	 	 
	 	By:	/s/ Arize Agumadu
	 	Name:	Arize
Agumadu
	 	Title:	Director

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	BBVA
    USA,
	 	as
    a Lender
	 	 	 
	 	By:	/s/ Gabriela Azcarate
	 	Name:	Gabriela
Azcarate 
	 	Title:	Senior Vice President

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	BOKF,
    N.A. DBA BANK OF OKLAHOMA,
	 	as
    a Lender
	 	 	 
	 	By:	/s/ Guy C Evangelista 
	 	Name:	Guy C Evangelista
	 	Title:	Senior Vice President 

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	FIFTH
    THIRD BANK,
	 	as
    a Lender
	 	 	 
	 	By:	/s/ Jonathan Lee 
	 	Name:	Jonathan
Lee
	 	Title:	Director 

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	THE
    HUNTINGTON NATIONAL BANK,
	 	as
    a Lender
	 	 	 
	 	By:	/s/ Steven Hoffman
	 	Name: 	Steven
Hoffman 
	 	Title:	Managing Director 

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

	 	U.S.
    BANK NATIONAL ASSOCIATION,
	 	as
    a Lender
	 	 	 
	 	By:	/s/ Mark E. Thompson
	 	Name: 	Mark
E. Thompson 
	 	Title:	Senior Vice President 

 

[Signature Page to First Amendment to Credit Agreement
 – Bonanza Creek Energy, Inc.]

 

    	 	 	 

     

    

 

SCHEDULE
1.1

 

APPLICABLE MARGIN

 

	 	 	Commitment
    Utilization Grid
	 	 	Level
    I	 	Level
    II	 	Level
    III	 	Level
    IV	 	Level
    V
	Commitment
    Utilization Percentage	 	<25%	 	≥25%
    <50%	 	≥50%
    <75%	 	≥75%
    <90%	 	≥90%
	Eurodollar
    Revolving Credit Loans	 	2.00%	 	2.25%	 	2.50%	 	2.75%	 	3.00%
	Letters
    of Credit	 	2.00%	 	2.25%	 	2.50%	 	2.75%	 	3.00%
	ABR
    Revolving Credit Loans	 	1.00%	 	1.25%	 	1.50%	 	1.75%	 	2.00%
	Commitment
    Fee Rate	 	0.50%	 	0.50%	 	0.50%	 	0.50%	 	0.50%

 

    	 	Schedule 1.1-1Adamis Pharmaceuticals Corporation 8-K

 

Exhibit 4.6

 

 

DESCRIPTION OF CAPITAL STOCK

 

General

 

Adamis Pharmaceuticals Corporation (“we,”
“the Company” or “Adamis”) has one class of securities registered under Section 12 of the Securities Exchange
Act of 1934, as amended: our common stock, $0.0001 par value per share. The following description of our capital stock, is not
complete. This description is summarized from, and qualified in its entirety by reference to, our restated certificate of incorporation,
as the same may be amended from time to time, any certificates of designation for our preferred stock, and our amended and restated
bylaws, as amended from time to time, which have been publicly filed with the Securities and Exchange Commission as exhibits to
our Annual Report on Form 10-K, and to the applicable provisions of the Delaware General Corporation Law, or DGCL, which also affects
the terms of these securities. Our authorized capital stock consisted of 100,000,000 shares of common stock, $0.0001 par value
per share, and 10,000,000 shares of preferred stock, $0.0001 par value per share.

 

Common Stock

 

General

 

Our board of directors (the “Board”)
is authorized, without stockholder approval except as required by the listing standards of The Nasdaq Stock Market LLC (or of any
other stock exchange or market on which our common stock is then traded), to issue shares of our common stock from time to time.
Our common stock is currently listed on the Nasdaq Capital Market under the symbol “ADMP.”

 

Voting Rights

 

Each holder of our common stock is entitled
to one vote for each share held of record on all matters submitted to a vote of stockholders. Our restated certificate of incorporation
does not provide for cumulative voting for the election of directors.

 

Dividends and Distributions

 

Subject to preferences that may be applicable
to any outstanding preferred stock, the holders of our common stock are entitled to receive ratably such dividends, if any, as
may be declared by our Board, out of legally available funds. Upon liquidation, dissolution or winding-up, the holders of our common
stock are entitled to share ratably in all of our assets which are legally available for distribution to stockholders, after payment
of or provision for all debts and other liabilities and subject to the prior rights or liquidation preference of any outstanding
preferred stock.

 

Other Rights

 

The holders of our common stock have no preemptive,
subscription, redemption or conversion rights, and there are no redemption or sinking fund provisions applicable to our common
stock. The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected
by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue.

 

    	 

    	 

    

 

Preferred Stock

 

Our restated certificate of incorporation provides
that the Board is authorized, without further action by the stockholders (unless such stockholder action is required by applicable
law or the rules of any stock exchange or market on which our securities are then traded), to provide for the issuance of shares
of preferred stock in one or more series and, by filing a certificate of designation pursuant to the applicable law of the State
of Delaware, to establish from time to time for each such series the number of shares to be included in each such series and to
fix the designation, powers, rights and preferences of the shares of each such series, and the qualifications, limitations and
restrictions thereof, which may include, among others, dividend rights, voting rights, liquidation preferences, conversion rights,
preemptive rights, and the number of shares constituting any series or the designation of any series, any or all of which may be
greater than the rights of the common stock. Any convertible preferred stock we may issue will be convertible into our common stock
or our other securities. Conversion may be mandatory or at the holder’s option and would be at prescribed conversion rates.
Any certificate of designation that establishes a series of preferred stock may include a description of the rights, powers and
preferences of such series including, to the extent applicable:

 

	 	●	the designation of the series, which may be by distinguishing number, letter or title;

 

	 	●	the number of shares of the series, which number the Board may thereafter (except where otherwise provided in the certificate of designation) increase or decrease (but not below the number of shares thereof then outstanding);

 

	 	●	the purchase price;

 

	 	●	whether dividends, if any, shall be paid, and, if paid, the date or dates upon which, or other times at which, such dividends shall be payable, whether such dividends shall be cumulative or noncumulative, the rate of such dividends (which may be variable) and the relative preference in payment of dividends of such series;

 

	 	●	whether shares of such series shall be redeemable, the time or times when, and the price or prices at which, shares of such series shall be redeemable, the redemption price and the terms and conditions of redemption;

 

	 	●	the terms and amounts of any sinking fund or similar fund provided for the purchase or redemption of shares of the series;

 

	 	●	the amounts payable on shares of such series and the rights of holders of such shares in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of our corporation;

 

	 	●	whether the shares of the series shall be convertible into shares of any other class or series, or convertible into or exchangeable for debt securities or any other security, of our corporation or any other corporation, and, if so, the specification of such other class or series of such other security, the conversion or exchange price or prices, or rate or rates, any adjustments thereto, the date or dates on which such shares shall be convertible or exchangeable and other terms and conditions upon which such conversion may be made;

 

	 	●	the preemptive or preferential rights, if any, of the holders of shares of such series to subscribe for, purchase, receive, or otherwise acquire any part of any new or additional issue of stock of any class, whether now or hereafter authorized, or of any bonds, debentures, notes, or any of other securities, whether or not convertible into shares of common stock;

  

	 	●	restrictions on the issuance of shares of the same series or of any other class or series; and

 

	 	●	the voting rights, if any, and whether full or limited, of the holders of shares of the series, which may include no voting rights, one vote per share, or such higher or lower number of votes per share as may be designated by the Board.

    	 

    	 

    

 

Preferred stock may be issued in the future
in connection with acquisitions, financings, or other matters as the Board deems appropriate. In the event that any shares of preferred
stock are to be issued, a certificate of designation containing the rights, privileges and limitations of such series of preferred
stock may be filed with the Secretary of State of Delaware. The effect of such preferred stock is that, subject to federal securities
laws and Delaware law, the Board alone may be able to authorize the issuance of preferred stock, which could have the effect of
delaying, deferring or preventing a change in control of us without further action by the stockholders or of discouraging a third
party from acquiring, a majority of our outstanding voting stock, and may adversely affect the other rights of the holders of our
common stock. The issuance of preferred stock with voting and conversion rights may also adversely affect the voting power of holders
of our common stock, including the loss of voting control to others.

 

The effects of issuing preferred stock could
include one or more of the following:

 

	 	●	decreasing the amount of earnings and assets available for distribution to holders of common stock;

 

	 	●	diluting the voting power of the common stock;

 

	 	●	impairing the liquidation rights of the common stock; or

 

	 	●	delaying, deferring or preventing changes in our control or management.

 

Anti-Takeover Effects of Certain Provisions of our Certificate
of Incorporation, Bylaws and the DGCL

 

Delaware Law

 

We are subject to Section 203 of the DGCL. This
provision generally prohibits a Delaware corporation from engaging in any business combination with any interested stockholder
for a period of three years following the date the stockholder became an interested stockholder, unless:

 

	 	●	prior to such date, the board of directors approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

 

	 	●	upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding those shares owned by persons who are directors and also officers and by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

 

	 	●	on or subsequent to such date, the business combination is approved by the board of directors and authorized at an annual meeting or special meeting of stockholders and not by written consent, by the affirmative vote of at least 66-2/3% of the outstanding voting stock that is not owned by the interested stockholder.

 

Section 203 defines a business combination to include:

 

	 	●	any merger or consolidation involving the corporation and the interested stockholder;

 

	 	●	any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;

 

	 	●	subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

 

    	 

    	 

    

  

	 	●	any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or

 

	 	●	the receipt by the interested stockholder of the direct or indirect benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

 

In general, Section 203 defines an “interested
stockholder” as any entity or person beneficially owning 15% or more of the outstanding voting stock of a corporation, or
an affiliate or associate of the corporation and was the owner of 15% or more of the outstanding voting stock of a corporation
at any time within three years prior to the time of determination of interested stockholder status; and any entity or person affiliated
with or directly or indirectly controlling or controlled by such entity or person, who presently holds the power to direct management
or is in a director or officer of the corporation.

 

These statutory provisions could delay or frustrate
the removal of incumbent directors or a change in control of our company, and accordingly, may discourage attempts to acquire us
even though such a transaction may offer our stockholders the opportunity to sell their stock at a price above the prevailing market
price.

 

Restated Certificate of Incorporation and Bylaw Provisions

 

Our restated certificate of incorporation, as
amended, and bylaws contain provisions that could have the effect of discouraging potential acquisition proposals or making a tender
offer or delaying or preventing a change in control, including changes a stockholder might consider favorable. In particular, the
restated certificate of incorporation and bylaws, as applicable, among other things:

 

	 	●	permit the Board to issue up to 10,000,000 shares of preferred stock, without further action by the stockholders, with any rights, preferences and privileges as they may designate;

 

	 	●	provide that all vacancies on the Board, including newly created directorships, may, except as otherwise required by law, or as determined otherwise by resolution of the Board, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum;

 

	 	●	do not provide for cumulative voting rights with respect to election of directors; 

 

	 	●	provide that no action shall be taken by the stockholders, except at an annual or special meeting of stockholders, and no action shall be taken by the stockholders by written consent or by electronic transmission;

 

	 	●	set forth an advance notice procedure with regard to the nomination, other than by or at the direction of the Board, of candidates for election as directors and with regard to business to be brought before a meeting of stockholders.  Although the bylaws do not give the Board the power to approve or disapprove of stockholder nominations of candidates or proposals regarding other proper business to be conducted at a special or annual meeting, the bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of the Company; and

 

	 	●	provide the Board with the ability to alter its bylaws without stockholder approval.

 

Such provisions may make it more difficult for
holders of our common stock to replace our board of directors and may have the effect of discouraging a third-party from making
tender offers for our shares or acquiring us, even if doing so would be beneficial to our stockholders. These provisions also may
have the effect of preventing changes in our management.

 

    	 

    	 

    

 

Choice of Forum. Our bylaws provide that
unless the corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware
shall, to the fullest extent permitted by law, be the sole and exclusive forum for (i) any derivative action or proceeding
brought on behalf of the Company; (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer
or other employee of the Company to the Company or the Company’s stockholders; (iii) any action asserting a claim against
the Company or any director or officer or other employee of the Company arising pursuant to any provision of the DGCL, the certificate
of incorporation or the bylaws of the Company, or as to which the DGCL confers jurisdiction on the Court of Chancery of the State
of Delaware; or (iv) any action asserting a claim against the Company or any director or officer or other employee of the
Company governed by the internal affairs doctrine, in all cases subject to the court’s having personal jurisdiction over
the indispensable parties named as defendants (including without limitation as a result of the consent of such indispensable parties
to the personal jurisdiction of such court). The bylaws further provide that if any action the subject matter of which is within
the scope of the preceding sentence is filed in a court other than a court located within the State of Delaware (a “Foreign
Action”) in the name of any stockholder, such stockholder shall be deemed to have consented to (i) the personal jurisdiction
of the state and federal courts located within the State of Delaware in connection with any action brought in any such court to
enforce the preceding sentence and (ii) having service of process made upon such stockholder in any such action by service upon
such stockholder’s counsel in the Foreign Action as agent for such stockholder. The bylaws provide that the above provisions
do not apply to suits brought to enforce a duty or liability created by the Securities Act of 1933, as amended (the “Securities
Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any other
claim for which the federal courts have exclusive jurisdiction. Section 27 of the Exchange Act creates exclusive federal jurisdiction
over all suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder. As
a result, the exclusive forum provision will not apply to suits brought to enforce any duty or liability created by the Exchange
Act or any other claim for which the federal courts have exclusive jurisdiction. Our bylaws do not relieve us of our duties to
comply with federal securities laws and the rules and regulations thereunder, and our stockholders will not be deemed to have waived
our compliance with these laws, rules and regulations. The bylaws also provide that unless the Company consents in writing to the
selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted
by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities
Act, and that any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of the
Company shall be deemed to have notice of and consented to the provisions described above.

 

Under the Securities Act, federal and state
courts have concurrent jurisdiction over all suits brought to enforce any duty or liability created by the Securities Act. There
is uncertainty as to whether a court (other than state courts in the State of Delaware, where the Supreme Court of the State of
Delaware decided in March 2020 that exclusive forum provisions for causes of action arising under the Securities Act are facially
valid under Delaware law) would enforce forum selection provisions and whether investors can waive compliance with the federal
securities laws and the rules and regulations thereunder. The forum selection provisions in the bylaws may have the effect of discouraging
lawsuits against us and/or our directors, officers and employees as it may limit any stockholder’s ability to bring a claim
in a judicial forum that such stockholder finds favorable for disputes with us or our directors, officers or employees. In addition,
stockholders who do bring a claim in the Court of Chancery in the State of Delaware could face additional litigation costs in pursuing
any such claim, particularly if they do not reside in or near Delaware. The enforceability of similar choice of forum provisions
in other companies’ charter documents has been challenged in legal proceedings, and it is possible that, in connection with
any applicable action brought against us, a future court could find the choice of forum provisions contained in our bylaws to be
inapplicable or unenforceable in such action. If a court were to find the choice of forum provision contained in our bylaws to
be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions,
which could adversely affect our business, financial condition or results of operations.

 

Transfer Agent and Registrar

 

The Transfer Agent and Registrar for our common
stock is American Stock Transfer & Trust Company, LLC.

 

    	 

    	 

    

 

Indemnification of Directors and Officers

 

Section 145 of the DGCL provides, in general,
that a corporation incorporated under the laws of the State of Delaware, as we are, may indemnify any person who was or is a party
or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than a derivative
action by or in the right of the corporation) by reason of the fact that such person is or was a director, officer, employee or
agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another
enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by such person in connection with such action, suit or proceeding if such person acted in good faith and in a manner such
person reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action
or proceeding, had no reasonable cause to believe such person’s conduct was unlawful. In the case of a derivative action,
a Delaware corporation may indemnify any such person against expenses (including attorneys’ fees) actually and reasonably
incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good faith
and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation, except that no
indemnification will be made in respect of any claim, issue or matter as to which such person will have been adjudged to be liable
to the corporation, unless and only to the extent that the Court of Chancery of the State of Delaware or any other court in which
such action was brought determines such person is fairly and reasonably entitled to indemnity for such expenses.

 

Our bylaws provide that we will indemnify our
directors and officers, to the maximum extent permitted by the DGCL, or any other applicable law, except that we are not required
to indemnify any director or officer in connection with any proceeding initiated by such person, unless (i) such indemnification
is expressly required to be made by law or the bylaws, (ii) the proceeding was authorized by the Board, or (iii) such indemnification
is provided by us pursuant to the powers vested in the company under the DGCL or any other applicable law. In addition, our bylaws
provide that we may indemnify our employees and other agents as set forth in the DGCL or any other applicable law. Our bylaws also
provide for the advancement of expenses incurred by a person who was or is a party or is threatened to be made a party to any threatened,
pending or completed proceeding by reason of the fact that the person is or was a director or officer of the company, or is or
was serving at the request of the company as a director or officer of another corporation, partnership, joint venture, trust or
other enterprise, prior to the final disposition of the proceeding, provided, however, that if the DGCL requires, an advancement
of expenses incurred by a director or officer in his or her capacity as a director or officer shall be made only upon delivery
to the company of an undertaking by or on behalf of the indemnitee to repay all amounts so advanced if it shall ultimately be determined
by final judicial decision from which there is no further right to appeal the indemnitee is not entitled to be indemnified for
such expenses under the bylaws. In addition, our restated certificate of incorporation provides that the liability of any of our
directors for monetary damages shall be eliminated to the fullest extent under applicable law. We carry officer and director liability
insurance with respect to certain matters, including matters arising under the Securities Act of 1933, as amended.

 

Disclosure of Commission Position on Indemnification for Securities
Act Liabilities

 

Insofar as indemnification for liabilities arising
under the Securities Act, may be permitted to our directors, officers and persons controlling us, we have been advised that it
is the Securities and Exchange Commission’s opinion that such indemnification is against public policy as expressed in the
Securities Act and is, therefore, unenforceable.

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