Document:

EXHIBIT 10.3

       

      

      

       

      THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE
        SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR, SUBJECT TO SECTION 11 HEREOF, AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL) REASONABLY
        SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT, OR ANY APPLICABLE STATE SECURITIES LAWS.

       

      

      

      WARRANT AGREEMENT

      

      

      To Purchase Shares of the Common Stock of

      

      

      STRATA Skin Sciences, Inc.

      

      

      Dated as of September 30, 2021 (the “Effective Date”)

      

      

      WHEREAS, STRATA Skin Sciences, Inc., a Delaware corporation (the “Company”), has entered into the Credit and Security Agreement (as defined bellow) with MidCap Financial Trust, a Delaware statutory trust, in its capacity as administrative agent for itself and the Lenders (as defined in the
        Credit and Security Agreement) (the “Agent”) and the Lenders from time to time party thereto;

      

      

      WHEREAS, pursuant to the Credit and Security Agreement and as additional consideration for, among other things, the agreements in the
        Credit and Security Agreement, the Company has agreed to issue to MidCap Funding XXVII Trust, a Delaware statutory trust (together with any registered holder from time to time of this Warrant or any holder of the shares issueable or issued upon the
        exercise or conversion of this Warrant, “Warrantholder”), an Affiliate of MidCap Financial Trust, this Warrant Agreement (this “Agreement”), evidencing the right of Warrantholder to purchase shares of the Company’s Common Stock (the “Warrant”);

       

      NOW, THEREFORE, in consideration of having executed and delivered the Credit and Security Agreement and provided the financial
        accommodations contemplated therein, and in consideration of the mutual covenants and agreements contained herein, the Company and Warrantholder agree as follows:

      

      
        
          	
                  SECTION 1.

                	
                  GRANT OF THE RIGHT TO PURCHASE COMMON STOCK. 

                

        

      

       

      

       

      (a)          Grant of Purchase Right.  For value received, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions
          hereinafter set forth, to subscribe for and purchase, from the Company, up to the number of fully paid and non-assessable shares of Common Stock (as defined below) as determined pursuant to Section 1(b) below, at a purchase price per share equal
          to the Exercise Price (as defined below).  The number and Exercise Price of such shares are subject to adjustment as provided in Section 8.  As used herein, the following terms shall have the following meanings:

       

      “Act” means the
        Securities Act of 1933, as amended.

       

      “Affiliate” means a
        business entity that directly or indirectly Controls, is Controlled by, or is under the common Control of a party hereto, and “Control” of an organization or
        entity shall mean: (i) ownership or direct or indirect control of 50% or more of the outstanding voting shares or other ownership interests of such organization or entity; or (ii) direct or indirect possession of the power to elect or appoint 50%
        or more of the members of the board of director or other governing body of such organization or other entity.

       

      
        
          

          

          

          

          

        

        
          

        

      

      
      

      

       

      “Charter” means the
        Company’s Fifth Amended and Restated Certificate of Incorporation, as amended, or other constitutional document, as it may be amended and in effect from time to time.

       

      “Common Stock” means the
        Company’s common stock, $0.001 par value per share, as presently constituted under the Charter, and any class and/or series of Company capital stock for or into which such common stock may be converted or exchanged in a reorganization,
        recapitalization or similar transaction.

       

      “Credit and Security Agreement”
        means that certain Credit and Security Agreement of even date herewith among the Company, the other Borrowers (as defined therein) from time to time party thereto, the several Lenders or entities from time to time Lender parties thereto, and MidCap
        Financial Trust in its capacity as administrative agent for itself and the Lenders, as amended,  restated, supplemented, and modified and in effect from time to time.

       

      “Exercise Price” means
        $1.82, subject to adjustment from time to time in accordance with the provisions of the Warrant.

       

      “September 2021 Registration Rights
            Agreement” means that certain Registration Rights Agreement, dated as of September 30, 2021, by and among the Company and each purchaser set forth therein and the Warrantholder.

       

      “Liquid Sale” means the
        closing of a Merger Event in which the consideration received by the Company and/or its stockholders, as applicable, consists solely of cash and/or Marketable Securities.

       

      “Marketable Securities”
        in connection with a Merger Event means securities meeting all of the following requirements: (i) the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended
        (the “Exchange Act”), and is then current in its filing of all required reports and other information under the Act and the Exchange Act; (ii) the class and
        series of shares or other security of the issuer that would be received by the Warrantholder in connection with the Merger Event were the Warrantholder to exercise the Warrant on or prior to the closing thereof is then traded on a national
        securities exchange or over-the-counter market, and (iii) following the closing of such Merger Event, the Warrantholder would not be restricted from publicly re-selling all of the issuer’s shares and/or other securities that would be received by
        the Warrantholder in such Merger Event were the Warrantholder to exercise the Warrant in full on or prior to the closing of such Merger Event, except to the extent that any such restriction (x) arises solely under federal or state securities laws,
        rules or regulations, and (y) does not extend beyond six (6) months from the closing of such Merger Event.

       

      “Merger Event” means any
        of the following: (i) a sale, lease or other transfer of all or substantially all assets of the Company, (ii) any merger or consolidation involving the Company in which the Company is not the surviving entity or in which the outstanding shares of
        the Company’s capital stock are otherwise converted into or exchanged for shares of capital stock or other securities or property of another entity or converted into the right to receive cash, or (iii) any sale by holders of the outstanding voting
        equity securities of the Company in a single transaction or series of related transactions of shares constituting a majority of the outstanding combined voting power of the Company.

       

      
        
          

          

          

          

          

        

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      “Purchase Price” means,
        with respect to any exercise of the Warrant, an amount equal to the then-effective Exercise Price multiplied by the number of shares of Common Stock as to which the Warrant is then exercised.

      

      

      (b)          Number of Shares.  The Warrant shall be exercisable for the purchase of 373,626 shares of Common Stock, subject to adjustment from time to time in accordance with the provisions
          of this Agreement.

      
        

        

        
          	
                  SECTION 2.

                	
                  TERM OF THE AGREEMENT.

                

        

      

      

      The term of this Agreement and the right to purchase Common Stock as granted herein shall commence on the Effective Date and, subject
        to Section 8(a) below, shall be exercisable for a period ending upon the tenth anniversary of the Effective Date.

      
      

      

      
        
          	
                  SECTION 3.

                	
                  EXERCISE OF THE PURCHASE RIGHTS.

                

        

      

      

      (a)          Exercise.  The purchase rights set forth in this Agreement are exercisable by the Warrantholder, in whole or in part, at any time, or from time to time, prior to the expiration
          of the term set forth in Section 2, by tendering to the Company at its principal office a notice of exercise in the form attached hereto as Exhibit I (the
          “Notice of Exercise”), duly completed and executed.  Promptly upon receipt of the Notice of Exercise and the payment of the Purchase Price in accordance
          with the terms set forth below, and in no event later than three (3) business days thereafter or, if earlier, the closing of a Merger Event, the Company shall issue, at the Company’s expense, to the Warrantholder a certificate for the number of
          shares of Common Stock purchased and shall execute the acknowledgment of exercise in the form attached hereto as Exhibit II (the “Acknowledgment of Exercise”) indicating the number of shares which remain subject to future purchases under the Warrant, if any.  The delivery by the Warrantholder of the Notice
          of Exercise and the payment of the Purchase Price as provided above shall constitute the Warrantholder’s certification to the Company that the Warrantholder’s representations contained in Section 10 of this Agreement are true and correct as of
          the exercise date as if remade in their entirety (or, in the case of any transferee Warrantholder, such transferee Warrantholder’s certification to the Company that such representations are true and correct as to such transferee Warrantholder as
          of the exercise date).  The delivery by the Company of the Acknowledgement of Exercise as provided above shall constitute the Company’s certification to the Warrantholder that the Company’s representations contained in Section 9 of this Agreement
          are true and correct as of the exercise date as if remade in their entirety. Except as expressly set forth in this Agreement, the Warrantholder shall not be required to deliver this Agreement in order to effect an exercise of the Warrant
          hereunder.

      

      

      The Purchase Price may be paid at the Warrantholder’s election either (i) by cash or check, or (ii) by surrender of all or a portion
        of the Warrant for shares of Common Stock to be exercised under this Agreement and, if applicable, an amended Agreement setting forth the remaining number of shares purchasable hereunder, as determined below (“Net Issuance”).  If the Warrantholder elects the Net Issuance method, the Company will issue shares of Common Stock in accordance with the following formula:

      

      

      X = Y(A-B)

                  A

      

      

      
        
          	Where:	X =	the number of shares of Common
                    Stock to be issued to the Warrantholder.

        

      

       

      	

            	Y =	
              the number of shares of Common Stock requested to be exercised under this Agreement.

            

       

      	

            	A =	
              the then-current fair market value of one (1) share of Common Stock at the time of exercise.

            

       

      
        
          

          

          

          

          

        

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              	B =	
                the then-effective Exercise Price.

              

      

       
      For purposes of the above calculation, the current fair market value of shares of Common Stock shall mean with respect to each share
        of Common Stock:

      

      

      (i)          (a) at all times when
          the Common Stock shall be traded on a national securities exchange, the last reported sale price reported on such national securities exchange before the day the current fair market value of the securities is being determined or (b) at all times
          when the Common Stock shall not be traded on a national securities exchange, but is traded OTC or by some other similar public means, the average of the closing bid and asked prices over the three (3) trading day period ending before the day the
          current fair market value of the securities is being determined;

      

      

      (ii)          if the exercise is in
          connection with a Merger Event, the fair market value of a share of Common Stock shall be deemed to be the per share value received by the holders of the outstanding shares of Common Stock upon the closing of such Merger Event as determined in
          reasonable good faith by the Company’s Board of Directors; or

      

      

      (iii)          in cases other than
          as described in the foregoing clauses (i) and (ii), the current fair market value of a share of Common Stock shall be determined in reasonable good faith by the Company’s Board of Directors.

      

      

      In the event of Section 3(a)(ii) or 3(a)(iii) above, the Company’s Board of Directors shall prepare a certificate, to be signed by an
        authorized officer of the Company, setting forth in reasonable detail the basis for and method of determination of the fair market value of a share of Common Stock.  The Company’s Board of Directors will also certify to the Warrantholder that this
        per share fair market value will be applicable to all holders of the Company’s Common Stock.  Such certifications must be made to the Warrantholder, in the event of Section 3(a)(ii) above, at least ten (10) business days prior to the proposed
        effective date of Merger Event, and in the event of Section 3(a)(iii), promptly after exercise of this Warrant.

       

      

      Upon partial exercise by either cash or Net Issuance, upon request by the Warrantholder and surrender of all or a portion of the
        Warrant prior to the expiration or earlier termination hereof, the Company shall promptly issue an amended Agreement representing the remaining number of shares purchasable hereunder. All other terms and conditions of such amended Agreement shall
        be identical to those contained herein, including, but not limited to the Effective Date hereof.

      

      

      (b)          Exercise Prior to Expiration.  To the extent the Warrant is not previously exercised as to all shares subject hereto, and if the then-current fair market value of one share of
          Common Stock is greater than the Exercise Price then in effect, or, in the case of a Liquid Sale, where the value per share of Common Stock (as determined as of the closing of such Liquid Sale in accordance with the definitive agreements executed
          by the parties in connection with such Merger Event) to be paid to the holders thereof is greater than the Exercise Price then in effect, this Agreement, unless the Warrantholder notifies the Company in writing otherwise, shall be deemed
          automatically exercised on a Net Issuance basis pursuant to Section 3(a) (even if not surrendered) as of immediately before its expiration determined in accordance with Section 2; provided, however, that the more specific provisions of Section
          8(a) shall govern in the case of an automatic exercise upon a Merger Event that is a Liquid Sale.  For purposes of such automatic exercise, the fair market value of one share of Common Stock upon such expiration shall be determined pursuant to
          Section 3(a).  To the extent the Warrant or any portion hereof is deemed automatically exercised pursuant to this Section 3(b), the Company agrees to promptly notify the Warrantholder of the number of shares of Common Stock if any, the
          Warrantholder is to receive by reason of such automatic exercise.

      
        
          

          

          

          

          

        

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                  SECTION 4.

                	
                  RESERVATION OF SHARES.

                

        

      

       

       

      

      During the term of this Agreement, the Company will at all times have authorized and reserved a sufficient number of shares of its
        Common Stock to provide for the full exercise of the rights to purchase Common Stock as provided for herein.

       

      
        
          	
                  SECTION 5.

                	
                  NO FRACTIONAL SHARES OR SCRIP.

                

        

      

       

       

      

      No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Agreement, but in lieu of such
        fractional shares the Company shall make a cash payment therefor upon the basis of the Exercise Price then in effect.

       

      
        
          	
                  SECTION 6.

                	
                  NO RIGHTS AS STOCKHOLDER.

                

        

      

       

       

      

      Without limitation of any provision hereof, the Warrantholder agrees that this Agreement does not entitle the Warrantholder to any
        voting rights or other rights as a stockholder of the Company prior to the exercise of any of the purchase rights set forth in this Agreement.

       

      
        
          	
                  SECTION 7.

                	
                  WARRANTHOLDER REGISTRY.

                

        

      

      

      The Company shall maintain a registry showing the name and address of the registered holder of this Agreement.  The Warrantholder’s
        initial address, for purposes of such registry, is set forth in Section 12(g) below.  The Warrantholder may change such address by giving written notice of such changed address to the Company.

       

      
        
          	
                  SECTION 8.

                	
                  ADJUSTMENT RIGHTS.

                

        

      

       

       

      

      The Exercise Price and the number of shares of Common Stock purchasable hereunder are subject to adjustment from time to time, as
        follows:

       

      (a)          Merger Event.  In connection with a Merger Event that is a Liquid Sale where the value per share of Common Stock is greater than the exercise price then in effect, the Warrant
          shall, on and after the closing thereof, automatically and without further action on the part of any party or other person, represent the right to receive, in lieu of the shares of Common Stock that are issuable hereunder as of immediately prior to the closing of such Merger Event, the consideration payable on or in respect
          of such shares of Common Stock less the Purchase Price for all such shares of Common Stock (such consideration to include both the consideration payable at the closing of such Merger Event and all deferred consideration payable thereafter, if
          any, including, but not limited to, payments of amounts deposited at such closing into escrow and payments in the nature of earn-outs, milestone payments or other performance-based payments), and such Merger Event consideration shall be paid to
          the Warrantholder as and when it is paid to the holders of the outstanding shares of Common Stock; provided, however, in the event of a Merger Event that is an arms length sale of all or substantially all of the Company’s assets (and only its
          assets) to a third party that is not an Affiliate of the Company (a “True Asset Sale”), the Warrantholder may either (a) exercise its conversion or purchase
          right under this Warrant and such exercise will be deemed effective immediately prior to the consummation of such Merger Event, or (b) permit the Warrant to continue for the term of this Agreement if the Company continues as a going concern
          following the closing of any such True Asset Sale.  In connection with a Merger Event that is not a Liquid Sale, the Company shall cause the successor or surviving entity to assume this Agreement and the obligations of the Company hereunder on
          the closing thereof, and thereafter the Warrant shall be exercisable for the same number, class, and type of securities or other property as the Warrantholder would have received in consideration for the shares of Common Stock issuable hereunder
          had it exercised the Warrant in full as of immediately prior to such closing, at an aggregate Exercise Price no greater than the aggregate Exercise Price in effect as of immediately prior to such closing, and subject to further adjustment from
          time to time in accordance with the provisions of this Agreement.  The provisions of this Section 8(a) shall similarly apply to successive Merger Events.

       

      
        
          

          

          

          

          

        

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      (b)          Reclassification of Shares.  Except for Merger Events subject to Section 8(a), if the Company at any time shall, by combination, reclassification, exchange or subdivision of
          securities or otherwise, change any of the securities as to which purchase rights under this Agreement exist into the same or a different number of securities of any other class or classes of securities, this Agreement shall thereafter represent
          the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities which were subject to the purchase rights under this Agreement immediately prior to such combination,
          reclassification, exchange, subdivision or other change. The provisions of this Section 8(b) shall similarly apply to successive combination, reclassification, exchange, subdivision or other change.

       

      (c)          Subdivision or Combination of Shares.  If the Company at any time shall combine or subdivide its Common Stock, (i) in the case of a subdivision, the Exercise Price shall be
          proportionately decreased and the number of shares for which the Warrant is exercisable shall be proportionately increased, or (ii) in the case of a combination, the Exercise Price shall be proportionately increased and the number of shares for
          which the Warrant is exercisable shall be proportionately decreased.

       

      (d)          Stock Dividends.  If the Company at any time while this Agreement is outstanding and unexpired shall:

       

      (i)          pay a dividend with
          respect to the outstanding shares of Common Stock payable in additional shares of Common Stock, then the Exercise Price shall be adjusted to that price determined by multiplying the Exercise Price in effect immediately prior to such date of
          determination by a fraction (A) the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to such dividend or distribution, and (B) the denominator of which shall be the total number of shares of
          Common Stock outstanding immediately after such dividend or distribution, and the number of shares of Common Stock for which the Warrant is exercisable shall be proportionately increased; or

       

      (ii)          make any other dividend
          or distribution on or with respect to Common Stock, except any dividend or distribution (A) in cash, or (B) specifically provided for in any other clause of this Section 8, then, in each such case, provision shall be made by the Company such that
          the Warrantholder shall receive upon exercise or conversion of the Warrant a proportionate share of any such distribution as though it were the holder of the Common Stock (or other stock for which the Common Stock is convertible) as of the record
          date fixed for the determination of the stockholders of the Company entitled to receive such distribution.

       

      (e)          Notice of Certain Events.  If: (i) the Company shall declare any dividend or distribution upon its outstanding Common Stock, payable in stock, cash, property or other securities
          (provided that the Required Lenders (as defined in the Credit and Security Agreement) under the Credit and Security Agreement consents to such dividend); (ii) the Company shall offer for subscription pro rata to the holders of its Common Stock
          any additional shares of stock of any class or other rights; (iii) the Company shall effect a closing of any Merger Event; or (iv) there shall be any voluntary dissolution, liquidation or winding up of the Company; then, in connection with each
          such event, the Company shall give the Warrantholder notice thereof at the same time and in the same manner as it gives notice thereof to the holders of outstanding Common Stock; provided, however, in the case of subclause (iii), the Company
          shall give the Warrantholder notice thereof not later than ten (10) business days prior to the closing thereof setting forth the material terms and conditions thereof, and shall provide the Warrantholder with copies of the draft transaction
          agreements and other documents in connection therewith and with such other information respecting such proposed Merger Event as may reasonably be requested by the Warrantholder.

       

      
        
          

          

          

          

          

        

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      (f)          Notice of Adjustments.  Whenever any Exercise Price or the kind or number of securities issuable under this Warrant shall be adjusted pursuant to the terms hereof, the Company
          shall prepare a certificate signed by an officer of the Company setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the Exercise Price and
          number or kind of shares issuable upon exercise of this Warrant after giving effect to such adjustment, and within thirty (30) days of such adjustment shall cause copies of such certificate to be delivered to the Warrantholder.

      

      

      

      
        
          	
                  SECTION 9.

                	
                  REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.

                

        

      

      

      (a)          Reservation of Common Stock.  The Company covenants and agrees that all shares of Common Stock, if any, that may be issued upon the exercise of the rights represented by the
          Warrant will, upon issuance, be validly issued and outstanding, fully paid and non-assessable. The Company further covenants and agrees that the Company will, at all times during the term hereof, have authorized and reserved, free from preemptive
          rights, a sufficient number of shares of Common Stock to provide for the full exercise of the rights represented by the Warrant.  If at any time during the term hereof the number of authorized but unissued shares of Common Stock shall not be
          sufficient to permit exercise of the Warrant in full, the Company will take such corporate action as may, in the reasonable opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of
          shares as shall be sufficient for such purposes. This Warrant has been validly issued and is free of restrictions on transfer other than restrictions on transfer set forth herein and under applicable state and federal securities laws. Subject to
          applicable restrictions on transfer, the issuance and delivery of this Warrant and the shares of Common Stock issuable upon exercise of this Warrant are not subject to any preemptive or other similar rights or any liens or encumbrances except as
          specifically set forth in the Company’s Charter or this Warrant. The Company agrees that it will, and will cause its subsidiaries and representatives to, use their commercially reasonable efforts to list and qualify the shares of Common Stock
          that are issued to the Warrantholder upon the exercise of this Warrant for trading on NASDAQ or any other securities exchange then applicable as soon as reasonably practicable following the satisfaction of the Company’s obligations under the
          September 2021 Registration Rights Agreement. Except and to the extent as waived or consented to by the Warrantholder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any
          reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant or the September 2021
          Registration Rights Agreement, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the Warrantholder as set forth in
          this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any shares of Common Stock issuable upon exercise of this Warrant above the amount payable therefor upon such
          exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise
          of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its
          obligations under this Warrant.

       

      (b)          Due Authority; No Conflict; Corporate Organization.  The execution and delivery by the Company of this Agreement and the performance of all obligations of the Company hereunder,
          including the issuance to the Warrantholder of the right to acquire the shares of Common Stock, have been duly authorized by all necessary corporate action on the part of the Company.  The execution, delivery, and performance of this Agreement
          will not result in (a) any violation of, be in conflict with, or constitute a default under, with or without the passage of time or the giving of notice (i) the Company's Charter or

       

      
        
          

          

          

          

          

        

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      current bylaws; (ii) any law or governmental rule, regulation or order applicable to it; (iii) any provision of any judgment, decree, or order to which
        Company is a party, by which it is bound, or to which any of its material assets are subject, or (iv) any contract, obligation, or commitment to which the Company is a party or by which it is bound, or (b) the creation of any lien, charge or
        encumbrance upon any assets of the Company.  This Agreement constitutes a legal, valid and binding agreement of the Company, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or
        similar laws relating to or affecting creditors’ rights generally (including, without limitation, fraudulent conveyance laws) and by general principles of equity, regardless of whether considered in a proceeding in equity or at law. The Company (a)
        is a corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization, (b) has the corporate power and authority to own and operate its properties and to carry on its business as now
        conducted and as proposed to be conducted; and (c) is qualified as a foreign corporation in all jurisdictions where such qualification is required.

       

      (c)          Consents and Approvals.  No consent or approval of, giving of notice to, registration with, or taking of any other action in respect of any state, federal or other governmental
          authority or agency is required with respect to the execution, delivery and performance by the Company of its obligations under this Agreement, except for the filing of notices pursuant to Regulation D under the Act and any filing required by
          applicable state securities law, which filings will be effective by the time required thereby.

       

      (d)          Exempt Transaction.  Subject to the accuracy of the Warrantholder’s representations in Section 10, the issuance of the Common Stock upon exercise of this Agreement will constitute
          a transaction exempt from (i) the registration requirements of Section 5 of the Act, in reliance upon Section 4(2) thereof, and (ii) the qualification requirements of the applicable state securities laws.

       

      (e)          Information Rights.  At all times (if any) prior to the earlier to occur of (x) the date on which all shares of Common Stock issued on exercise of the Warrant have been sold, or
          (y) the expiration or earlier termination of the Warrant, when the Company shall not be required to file reports pursuant to Section 13 or 15(d) of the Exchange Act or shall not have timely filed all such required reports, the Warrantholder shall
          be entitled to the information rights contained in Section 6.2 of the Credit and Security Agreement, and in any such event Section 6.2 of the Credit and Security Agreement is hereby incorporated into this Agreement by this reference as though
          fully set forth herein; provided, however, that the Company shall not be required to deliver a Compliance Certificate once all Indebtedness (as defined in the Credit and Security Agreement) owed by the Company to the Warrantholder has been
          repaid.  If at any time up to the earlier of the expiration or earlier termination of this Warrant and the complete exercise of this Warrant, the Company is no longer subject to the reporting requirements of Section 13 or Section 15(d) of the
          Exchange Act, the Company shall also deliver to the Warrantholder, as soon as available and in any event within 30 days after the end of each fiscal quarter, an updated capitalization table of the Company in form and substance reasonably
          acceptable to the Warrantholder.

       

      (f)          Rule 144 Compliance.  The Company shall, at all times prior to the earlier to occur of (x) the date of sale or other disposition by the Warrantholder of the Warrant or all shares
          of Common Stock issued on exercise of the Warrant, or (y)  the expiration or earlier termination of the Warrant if its Warrant has not been exercised in full or in part on such date, timely file all reports required under the 1934 Act and
          otherwise timely take all actions necessary to permit the Warrantholder to sell or otherwise dispose of the Warrant and the shares of Common Stock issued on exercise hereof pursuant to Rule 144 promulgated under the Act as amended and in effect
          from time to time, provided that the foregoing shall not apply in the event of a Merger Event following which the successor or surviving entity is not subject to the reporting requirements of the 1934 Act.  If the Warrantholder proposes to sell
          Common Stock issuable upon the exercise of this Agreement in compliance with Rule 144, then, upon the Warrantholder’s written request to the Company, the Company shall as soon as a reason ably practicable furnish to the Warrantholder, and in any
          event within one (1) business day after receipt of such request, a written statement confirming the Company’s compliance with the filing and other requirements of such Rule.

       

      
        
          

          

          

          

          

        

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      (g)          Reports.  The Company has previously furnished or made available to the Warrantholder complete and accurate copies, as amended or supplemented, of its (a) Annual Report on Form
          10-K for the fiscal year ended December 31, 2020, as filed with the Securities and Exchange Commission (the “SEC”), and (b) all other reports filed by the
          Company under Section 13 or subsections (a) or (c) of Section 14 of the Exchange Act with the SEC since December 31, 2020 (such reports are collectively referred to herein as the “Company Reports”).  The Company Reports constitute all of the documents required to be filed by the Company under Section 13 or subsections (a) or (c) of Section 14 of the Exchange Act with the SEC from
          December 31, 2020 through the date of this Warrant.  The Company Reports complied in all material respects with the requirements of the Exchange Act and the rules and regulations thereunder when filed.  As of their respective dates, the Company
          Reports did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

       

      
        
          	
                  SECTION 10.

                	
                  REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER.

                

        

      

       

       

      

      This Agreement has been entered into by the Company in reliance upon the following representations and covenants of the Warrantholder:

       

      (a)          Investment Purpose.  The Warrant and the shares issued on exercise hereof will be acquired for investment and not with a view to the sale or distribution of any part thereof in
          violation of applicable federal and state securities laws, and the Warrantholder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.

       

      (b)          Private Issue.  The Warrantholder understands (i) that the Common Stock issuable upon exercise of this Agreement is not, as of the Effective Date,
          registered under the Act or qualified under applicable state securities laws, and (ii) that the Company's reliance on exemption from such registration is predicated on the representations set forth in this Section 10.

       

      (c)          Financial Risk.  The Warrantholder has such knowledge and experi-ence in financial and business matters as to be capable of evaluating the merits and
          risks of its investment, and has the ability to bear the economic risks of its investment.

       

      (d)          Accredited Investor.  The Warrantholder is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Act, as presently in effect.

       

      (e)          No Short Sales.  The Warrantholder has not at any time on or prior to the Effective Date engaged in any short sales or equivalent transactions in the Common Stock.  The
          Warrantholder agrees that at all times from and after the Effective Date and on or before the expiration or earlier termination of the Warrant, it shall not engage in any short sales or equivalent transactions in the Common Stock.

       

      
        
          	
                  SECTION 11.

                	
                  TRANSFERS.

                

        

      

       

       

      

      Subject to compliance with applicable federal and state securities laws, this Agreement and all rights hereunder are transferable, in
        whole or in part, without charge to the holder hereof (except for transfer taxes) upon surrender of this Agreement properly endorsed, together with, at the request of the Company unless a transfer is to an Affiliate as provided below, an opinion of
        counsel reasonably satisfactory to the Company to the effect that such transfer may be made pursuant to an available exemption from the registration requirements of the Act and all applicable state securities laws; provided, however, that without
        the prior written consent of the Company, not to be unreasonably withheld, this Warrant may be transferred only to an Affiliate (as defined below) of the Warrantholder.  Subject to the foregoing, each taker and holder of this Agreement, by taking
        or holding the same, consents and agrees that this Agreement, when endorsed, shall be deemed negotiable, and that the holder hereof, when this Agreement shall have been so endorsed and its transfer recorded on the Company’s books, shall be treated
        by the Company and all other persons dealing with this Agreement as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented by this Agreement.  The transfer of this Agreement shall

      
        
          

          

          

          

          

        

        9

        
          

        

      

      

      

      be recorded on the books of the Company upon receipt by the Company of a notice of transfer in the form attached hereto as Exhibit III (the "Transfer Notice"), at its principal offices and the payment to the Company of all transfer taxes and other governmental charges imposed on such transfer.  Until
        the Company receives such Transfer Notice, the Company may treat the registered owner hereof as the owner for all purposes.  Notwithstanding anything herein or in any legend to the contrary, the Company shall not require an opinion of counsel in
        connection with any sale, assignment or other transfer by the Warrantholder of this Agreement, the Warrant (or any portion hereof or thereof or any interest herein or therein) or of any shares of Common Stock issued upon any exercise hereof to an
        Affiliate of the Warrantholder, provided that such Affiliate is an “accredited investor” as defined in Regulation D.

      

        
          
            	
                    SECTION 12.

                  	
                    MISCELLANEOUS.

                  

          

        

        

      

      (a)          Effective Date.  The provisions of this Agreement shall be construed and shall be given effect in all respects as if it had been executed and delivered by the Company on the date
          hereof.  This Agreement shall be binding upon any successors or assigns of the Company.

       

      (b)          Remedies.  In the event of any default hereunder, the non-defaulting party may proceed to protect and enforce its rights either by suit in equity and/or by action at law,
          including but not limited to an action for damages as a result of any such default, and/or an action for specific performance for any default where the Warrantholder will not have an adequate remedy at law and where damages will not be readily
          ascertainable.

       

      (c)          No Impairment of Rights.  The Company will not, by amendment of its Charter or through any other means, avoid or seek to avoid the observance or performance of any of the terms of
          this Agreement, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate in order to protect the rights of the Warrantholder against impairment.

       

      (d)          Additional Documents.  The Company agrees to supply such other documents as the Warrantholder may from time to time reasonably request.

       

      (e)          Attorneys’ Fees.  In any litigation, arbitration or court proceeding between the Company and the Warrantholder relating hereto, the prevailing party shall be entitled to
          attorneys’ fees and expenses and all costs of proceedings incurred in enforcing this Agreement.  For the purposes of this Section 12(e), attorneys’ fees shall include without limitation fees incurred in connection with the following: (i) contempt
          proceedings; (ii) discovery; (iii) any motion, proceeding or other activity of any kind in connection with an insolvency proceeding; (iv) garnishment, levy, and debtor and third party examinations; and (v) post-judgment motions and proceedings of
          any kind, including without limitation any activity taken to collect or enforce any judgment.

       

      (f)          Severability.  In the event any one or more of the provisions of this Agreement shall for any reason be held invalid, illegal or unenforceable, the remaining provisions of this
          Agreement shall be unimpaired, and the invalid, illegal or unenforceable provision shall be replaced by a mutually acceptable valid, legal and enforceable provision, which comes closest to the intention of the parties underlying the invalid,
          illegal or unenforceable provision.

       

      (g)          Notices.  Except as otherwise provided herein, any notice, demand, request, consent, approval, declaration, service of process or other communication that is required,
          contemplated, or permitted under this Agreement or with respect to the subject matter hereof shall be in writing, and shall be deemed to have been validly served, given, delivered, and received upon the earlier of: (a) personal delivery to the
          party to be notified, (b) when sent by confirmed electronic transmission or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified
          mail, return receipt requested, postage prepaid, or (d) one business day after

       

      
        
          

          

          

          

          

        

        10

        
          

        

      

      

      

      deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt, and shall be addressed to the
        party to be notified as follows:

       

      If to the Warrantholder:

      MidCap Funding XXVII Trust

      c/o MidCap Financial Services, LLC, as servicer

      7255 Woodmont Ave, Suite 300

      Bethesda, MD 20814

      Attn: Account Manager for Strata Skin transaction

      Email:  notices@midcapfinancial.com

       

      With a copy to:

       

      

      MidCap Funding XXVII Trust

      c/o MidCap Financial Services, LLC, as servicer

      7255 Woodmont Ave, Suite 300

      Bethesda, MD 20814

      Attn: Legal

      Email:  legalnotices@midcapfinancial.com

      

      

       

      If to the Company:

       STRATA Skin Sciences, Inc.

      5 Walnut Grove Drive, Suite 140

      Horsham, Pennsylvania 19044

      Attention: Matt Hill, Chief Financial Officer

      E-Mail: mhill@strataskin.com

      

      

      or to such other address as each party may designate for itself by like notice.

       

      (h)          Entire Agreement; Amendments.  This Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter hereof, and supersedes and
          replaces in their entirety any prior proposals, term sheets, letters, negotiations or other documents or agreements, whether written or oral, with respect to the subject matter hereof.  None of the terms of this Agreement may be amended except by
          an instrument executed by each of the parties hereto.  This Agreement does not supersede any confidentiality agreement between the Company and the Warrantholder.

       

      (i)          Headings.  The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any provisions hereof.

       

      (j)          Advice of Counsel.  Each of the parties represents to each other party hereto that it has discussed (or had an opportunity to discuss) with its counsel
          this Agreement and, specifically, the provisions of Sections 12(n), 12(o), 12(p) and 12(q).

       

      (k)          No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or
          interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto 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.

       

      (l)          No Waiver.  No omission or delay by the Warrantholder at any time to enforce any right or remedy reserved to it, or to require performance of any of the terms, covenants or
          provisions hereof by the Warrantholder at any time designated, shall be a waiver of any such right or remedy to which the

       

      
        
          

          

          

          

          

        

        11

        
          

        

      

      

      

      Warrantholder is entitled, nor shall it in any way affect the right of the Warrantholder to enforce such provisions thereafter during the term of this
        Agreement.

       

      (m)          Survival.  All agreements, representations and warranties contained in this Agreement or in any document delivered pursuant hereto shall be for the benefit of the respective
          parties hereto and shall survive the execution and delivery of this Agreement and the expiration or other termination of this Agreement.

       

      (n)          Governing Law.  This Agreement has been negotiated and delivered to the Warrantholder in the State of Delaware, and shall be deemed to have been accepted by the Warrantholder in
          the State of Delaware.  Delivery of Common Stock to the Warrantholder by the Company under this Agreement is due in the State of Delaware.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State
          of Delaware, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.

       

      (o)          Mutual Waiver of Jury Trial.  Because disputes arising in connection with complex financial transactions are most quickly and economically resolved by an experienced and expert
          person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that their disputes arising under or in connection with this Agreement be resolved by a judge applying such applicable
          laws.  EACH OF THE COMPANY AND THE WARRANTHOLDER SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”) ASSERTED BY THE
          COMPANY AGAINST THE WARRANTHOLDER OR ITS ASSIGNEE OR BY THE WARRANTHOLDER OR ITS ASSIGNEE AGAINST THE COMPANY RELATING TO THIS AGREEMENT.  This waiver extends to all such Claims, including Claims that involve persons or entities other the Company
          and the Warrantholder; Claims that arise out of or are in any way connected to the relationship between the Company and the Warrantholder; and any Claims for damages, breach of contract, specific performance, or any equitable or legal relief of
          any kind, arising out of this Agreement.

       

      (p)          Arbitration.  If the Mutual Waiver of Jury Trial set forth in Section 12(o) is ineffective or unenforceable, the parties agree that all Claims shall be submitted to binding
          arbitration in accordance with the commercial arbitration rules of JAMS (the “Rules”), such arbitration to occur before one arbitrator, which arbitrator
          shall be a retired Federal court judge.  The decision of the arbitrator shall be binding on the parties, and shall be final and nonappealable to the maximum extent permitted by law.  Any judgment rendered by the arbitrator may be entered in a
          court of competent jurisdiction and enforced by the prevailing party as a final judgment of such court.

       

      (q)          Pre-arbitration Relief.  In the event Claims are to be resolved by arbitration, either party may seek from a court of competent jurisdiction, any prejudgment order, writ or other
          relief and have such prejudgment order, writ or other relief enforced to the fullest extent permitted by law notwithstanding that all Claims are otherwise subject to resolution by binding arbitration.

       

      (r)          Counterparts.  This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts, and by different parties hereto in
          separate counterparts, each of which when so delivered shall be deemed an original, but all of which counterparts shall constitute but one and the same instrument.

       

      (s)          Specific Performance.  The parties hereto hereby declare that it is impossible to measure in money the damages which will accrue to the Warrantholder by reason of the Company’s
          failure to perform any of the obligations under this Agreement and agree that the terms of this Agreement shall be specifically enforceable by the Warrantholder.  If the Warrantholder institutes any action or proceeding to specifically enforce
          the provisions hereof, any person against whom such action or proceeding is brought

       

      
        
          

          

          

          

          

        

        12

        
          

        

      

      

      

      hereby waives the claim or defense therein that the Warrantholder has an adequate remedy at law, and such person shall not offer in any such action or
        proceeding the claim or defense that such remedy at law exists.

       

      (t)          Lost, Stolen, Mutilated or Destroyed Warrant.  If the Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may
          reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed.  Any such new Warrant shall constitute
          an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

       

      (u)          Charges, Taxes and Expenses.  Issuance of certificates for shares of Common Stock upon the exercise or conversion of this Warrant shall be made without charge to the Warrantholder
          for any United States or state of the United States documentary stamp tax or other incidental expense with respect to the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be
          issued in the name of the Warrantholder.

       

      (v)          Legends.  To the extent required by applicable laws, the Warrant and the shares of Common Stock issuable hereunder (and the securities issuable, directly or indirectly, upon
          conversion of such shares of Common Stock, if any) may be imprinted with a restricted securities legend in substantially the following form:

      

      

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES
        LAWS, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO RULE 144 OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND
        ANY APPLICABLE STATE SECURITIES LAWS.

      

      

       

      

      

       

      

      

      [Remainder of Page Intentionally Left Blank]

      
        
          

          

          

          

          

        

        13

        
          

        

      

      IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement to be executed by its officers thereunto duly authorized as
        of the Effective Date.

      

      

      

      

      COMPANY:          STRATA SKIN SCIENCES,
          INC.

      

      

      

      

      By:  /s/ Matthew C. Hill        
                       

      

      Name:           Matthew C. Hill

      Title:     Chief Financial Officer

      

      

      

      

      

      

      WARRANTHOLDER:          MIDCAP FUNDING XXVII TRUST

      

      

      By: Apollo Capital Management, L.P., its investment manager

      

      

      By: Apollo Capital Management GP, LLC, its general partner

      

      

      

      

      By: /s/ Maurice Amsellem       
                 

      

      Name:  Maurice Amsellem

      Title:  Authorized Signatory

      
        
          

          

          

          

          

        

        14

        
          

        

      

      

      

      EXHIBIT  I

      

      

      NOTICE  OF  EXERCISE

      

      

      

      

      To:          [____________________________]

      

      

      	(1)	
              The undersigned Warrantholder hereby elects to purchase [_______] shares of the Common Stock of STRATA Skin Sciences, Inc., pursuant to the terms of the Agreement
                dated the [___] day of [______, _____] (the "Agreement") between STRATA Skin Sciences, Inc. and the Warrantholder, and tenders herewith payment of the Purchase Price in full, together with all applicable transfer taxes, if any. [NET ISSUANCE: elects pursuant to Section 3(a) of the Agreement to effect a Net Issuance.]

            

      

      

      	(2)	
              Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below.

            

      

      

      

      

      

      

      _________________________________

      (Name)

      

      

      _________________________________

      (Address)

      

      

      

      

      WARRANTHOLDER:          MIDCAP FUNDING XXVII TRUST

      

      

      By: Apollo Capital Management, L.P., its investment manager

      

      

      By: Apollo Capital Management GP, LLC, its general partner

      

      

      

      

      By:  _____________________        

      

      Name:  Maurice Amsellem

      Title:  Authorized Signatory

      
        
          

          

          

          

          

        

        15

        
          

        

      

      

      

      EXHIBIT II

      

      

      
        	
                1.

              	
                ACKNOWLEDGMENT OF EXERCISE

              

      

      

      

      

      

      

      

      The undersigned [____________________________________], hereby acknowledge receipt of the "Notice of Exercise" from MIDCAP FUNDING XXVII TRUST to
        purchase [____] shares of the Common Stock of STRATA Skin Sciences, Inc., pursuant to the terms of the Agreement, and further acknowledges that [______] shares remain subject to purchase under the terms of the Agreement.

      

      

      

      

      

      

      COMPANY:                      STRATA Skin Sciences, Inc.

      

      

      

      

      By:          _________________________________

      

      

      Title:          ________________________________

      

      

      Date:          ________________________________

      
        
          

          

          

          

          

        

        16

        
          

        
          

          

        

      

      
      EXHIBIT III

      

      

      TRANSFER NOTICE

      

      

      

      

      (To transfer or assign the foregoing Agreement execute this form and supply required information.  Do not use this form to purchase shares.)

      

      

      FOR VALUE RECEIVED, the foregoing Agreement and all rights evidenced thereby are hereby transferred and assigned to

      

      

      _________________________________________________________________

      (Please Print)

      

      

      whose address is___________________________________________________

      

      

      _________________________________________________________________

      

      

      

      

      Dated:          ____________________________________

      

      

      

      

      Holder's Signature:          _______________________________

      

      

      

      

      Holder's Address:          _______________________________

      

      

      

      

      _____________________________________________________

      

      

      

      

      Signature Guaranteed:          ____________________________________________

      

      

      

      

      NOTE:          The signature to this
          Transfer Notice must correspond with the name as it appears on the face of the Agreement, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should
          file proper evidence of authority to assign the foregoing Agreement.

      

      

      

      

      
        

      

    

  

  17EXHIBIT 10.4

       

      REGISTRATION RIGHTS AGREEMENT

       

      This Registration Rights Agreement (this “Agreement”)
        is made and entered into as of September 30, 2021, between STRATA Skin Sciences, Inc., a Delaware corporation (the “Company”), and MidCap Funding XXVII
        Trust, a Delaware statutory trust (together with any registered holder from time to time of the Warrant or any holder of the shares issueable or issued upon the exercise or conversion of this Warrant, “Warrantholder”), an Affiliate of MidCap Financial Trust.

       

      This Agreement is made pursuant to the Warrant Agreement, dated as of the date hereof, between the Company and Warrantholder (the “Warrant Agreement”).

       

      The Company and Warrantholder hereby agrees as follows:

       

      1.          Definitions.

       

      Capitalized terms used and not
          otherwise defined herein that are defined in the Warrant Agreement shall have the meanings given such terms in the Warrant Agreement.  As used in this Agreement, the following terms shall have the following meanings:

       

      “Advice” shall have the meaning set forth
        in Section 6(d).

       

      “Commission” means the Securities and
        Exchange Commission.

       

      “Effectiveness Date” means, with respect to
        the Initial Registration Statement required to be filed hereunder, the 90th calendar day following the date hereof (or, in the event of a “full review” by the Commission, the 120th calendar day following the date hereof) and
        with respect to any additional Registration Statements which may be required pursuant to Section 2(c) or Section 3(c), the 120th calendar day following the date on which an additional Registration Statement is required to be filed
        hereunder (or, in the event of a “full review” by the Commission, the 120th calendar day following the date such additional Registration Statement is required to be filed hereunder); provided, however, that in the event the Company is notified by the Commission that one or more of the above
        Registration Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following the date on which the Company is so notified if
        such date precedes the dates otherwise required above, provided, further, if such Effectiveness Date falls on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding Trading Day.

       

      “Effectiveness Period” shall have the
        meaning set forth in Section 2(a).

       

      “Event” shall have the meaning set forth in
        Section 2(d).

       

      “Event Date” shall have the meaning set
        forth in Section 2(d).

       

      “Filing Date” means, with respect to the
        Initial Registration Statement required hereunder, the 45th calendar day following the date hereof and, with respect to any additional Registration Statements which may be required pursuant to Section 2(c) or Section 3(c), the earliest
        practical

       

      
        
          

          

          

        

        
          

        

      

      
      

      

       

      date on which the Company is permitted by SEC Guidance to file such additional Registration Statement related to the Registrable Securities.

       

      “Holder” or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

       

      “Indemnified Party” shall have the meaning
        set forth in Section 5(c).

       

      “Indemnifying Party” shall have the meaning
        set forth in Section 5(c).

       

      “Initial Registration Statement” means the
        initial Registration Statement filed pursuant to this Agreement.

       

      “Losses” shall have the meaning set forth
        in Section 5(a).

       

      “Person” means an 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.

       

      “Plan of Distribution” shall have the
        meaning set forth in Section 2(a).

       

      “Prospectus” means the prospectus included
        in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the
        Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other
        amendments and supplements to the Prospectus, including post‐effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

       

      “Registrable Securities” means, as of any
        date of determination, (a) all of the shares of Common Stock then issued and issuable upon exercise of the Warrant (assuming on such date the Warrants are exercised in full without regard to any exercise limitations therein) (collectively, the “Warrant Shares”), and (b) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event with
        respect to the foregoing; provided, however, that any such
        Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (a) a Registration
        Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective Registration
        Statement, (b) such Registrable Securities have been previously sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or manner-of-sale restrictions and without current public information pursuant to
        Rule 144 as set forth in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and any securities issuable upon exercise, conversion or exchange of
        which, or as a dividend upon which, such securities were

       

      
        
          

          

          

        

        2

        
          

        

      

      

      

      issued or are issuable, were at no time held by any Affiliate of the Company), as reasonably determined by the Company, upon the advice of counsel to the
        Company.

       

      “Registration Statement” means any
        registration statement required to be filed hereunder pursuant to Section 2(a) and any additional registration statements contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and supplements to any such
        registration statement or Prospectus, including pre‐ and post‐effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in any such registration statement.

       

      “Rule 415” means Rule 415 promulgated by
        the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

       

      “Rule 424” means Rule 424 promulgated by
        the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

       

      “Selling Stockholder Questionnaire” shall
        have the meaning set forth in Section 3(a).

       

      “SEC Guidance” means (i) any
        publicly-available written or oral guidance of the Commission staff, or any comments, requirements or requests of the Commission staff and (ii) the Securities Act.

       

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

       

      “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 or the
        Over-the-Counter Bulletin Board (or any successors to any of the foregoing).

       

      2.          Shelf Registration.

       

      (a)          On or
          prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of Registrable Securities, representing at least the Warrant Shares that are not then registered on an effective
          Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415.  Notwithstanding the foregoing sentence, the Company and the initial Warrantholder shall cooperate with respect to the Initial Registration Statement as
          to the number of shares of Common Stock which shall be requested to be registered on such Initial Registration Statement in order to (1) avoid a limitation on the number of shares of Common Stock which may be registered on such Registration
          Statement due to Rule 415, (2) to avoid registration on such Registration Statement of shares of Common Stock which are not authorized by the Company’s certificate of incorporation and (3) to conform to any Nasdaq limitations on the number of
          shares of Common Stock which may be registered on the Initial Registration Statement.  Each Registration Statement filed hereunder shall be on Form S‐3

       

      
        
          

          

          

        

        3

        
          

        

      

      

      

      (except if the Company is not then eligible to register for resale the Registrable Securities on Form S‐3, in which case such registration shall be on
        another appropriate form in accordance herewith, subject to the provisions of Section 2(e)) and shall contain (unless otherwise directed by at least a majority in interest of the Holders) substantially the “Plan of Distribution” attached hereto as Annex A. Subject to the terms of this Agreement,
        the Company shall use its best efforts to cause a Registration Statement filed under this Agreement (including, without limitation, under Section 3(c)) to be declared effective under the Securities Act as promptly as reasonably practical after the
        filing thereof, but in any event no later than the applicable Effectiveness Date, and shall use its best efforts to keep such Registration Statement continuously effective under the Securities Act until all Registrable Securities covered by such
        Registration Statement (i) have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current
        public information requirement under Rule 144, as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected Holders (the “Effectiveness Period”). The Company shall telephonically request effectiveness of a Registration Statement as of 5:00 p.m. Eastern Time on a Trading Day.  The Company shall
        immediately notify the Holders via facsimile or by e‐mail of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically confirms effectiveness with the Commission, which shall be the date requested for
        effectiveness of such Registration Statement.  The Company shall, by 9:30 a.m. Eastern Time on the Trading Day after the effective date of such Registration Statement, file a final Prospectus with the Commission as required by Rule 424.  Failure to
        so notify the Holder within one (1) Trading Day of such notification of effectiveness or failure to file a final Prospectus as foresaid shall be deemed an Event under Section 2(d).

       

      (b)          Notwithstanding
          the registration obligations set forth in Section 2(a), if the Commission informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single
          registration statement, the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts to file amendments to the Initial Registration Statement as required by the Commission, covering the maximum
          number of Registrable Securities permitted to be registered by the Commission, on Form S‐3 or such other form available to register for resale the Registrable Securities as a secondary offering, subject to the provisions of Section 2(e); with
          respect to filing on Form S‐3 or other appropriate form, and subject to the provisions of Section 2(d) with respect to the payment of liquidated damages; provided,
          however, that prior to filing such amendment, the Company shall be obligated to use diligent efforts to advocate with the Commission for the
          registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation 612.09.

       

      (c)          Notwithstanding
          any other provision of this Agreement and subject to the payment of liquidated damages pursuant to Section 2(d), if the Commission or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on a
          particular Registration Statement as a secondary offering (and notwithstanding that the Company used diligent efforts to advocate with the Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise
          directed in writing by a Holder as to its Registrable

       

      
        
          

          

          

        

        4

        
          

        

      

      

      

      Securities, the number of Registrable Securities to be registered on such Registration Statement will be reduced as follows:

       

      
        	
                a.

              	
                First, the Company shall reduce or eliminate any securities to be included by any Person other than a Holder; and

                 

                

              

      

      
        	
                b.

              	
                Second, the Company shall reduce Registrable Securities represented by Warrant Shares (applied, in the case that some
                  Warrant Shares may be registered, to the Holders on a pro rata basis based on the total number of unregistered Warrant Shares held by such Holders).

              

      

       

      

      In the event of a cutback hereunder, the Company shall give the Holder at least five (5) Trading Days prior written notice along with the
        calculations as to such Holder’s allotment.  In the event the Company amends the Initial Registration Statement in accordance with the foregoing, the Company will use its best efforts to file with the Commission, as promptly as allowed by
        Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on Form S‐3 or such other form available to register for resale those Registrable Securities that were not registered
        for resale on the Initial Registration Statement, as amended.

       

      (d)          If: 
          (i) the Initial Registration Statement is not filed on or prior to its Filing Date (if the Company files the Initial Registration Statement without affording the Holders the opportunity to review and comment on the same as required by
          Section 3(a) herein, the Company shall be deemed to have not satisfied this clause (i)), or (ii) the Company fails to file with the Commission a request for acceleration of a Registration Statement in accordance with Rule 461 promulgated by the
          Commission pursuant to the Securities Act, within five Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be “reviewed” or will not be
          subject to further review, or (iii) prior to the effective date of a Registration Statement, the Company fails to file a pre‐effective amendment and otherwise respond in writing to comments made by the Commission in respect of such Registration
          Statement within ten (10) Trading Days after the receipt of comments by or notice from the Commission that such amendment is required in order for such Registration Statement to be declared effective, or (iv) a Registration Statement registering
          for resale Registrable Securities equal to at least the Warrant Shares is not declared effective by the Commission by the Effectiveness Date of the Initial Registration Statement, provided, that to the extent that the initial Warrantholder
          consented (pursuant to the second sentence of Section 2(a)) to the Company registering less than all of the Registrable Securities required to be registed on the Initial Registration Statement, then the Company shall only be required to register
          such lesser amount of Registrable Securities on the Initial Registration Statement, or (v) after the effective date of a Registration Statement, such Registration Statement ceases for any reason to remain continuously effective as to all
          Registrable Securities included in such Registration Statement, or the Holders are otherwise not permitted to utilize the Prospectus therein to resell such Registrable Securities, for more than ten (10) consecutive calendar days or more than an
          aggregate of fifteen (15) calendar days (which need not be consecutive calendar days) during any 12‐month period (any such failure or breach being referred to as an “Event”, and for purposes of clauses (i) and (iv), the date on which such Event occurs, and for purpose of clause (ii) the date on which such five (5)

       

      
        
          

          

          

        

        5

        
          

        

      

      

      

      Trading Day period is exceeded, and for purpose of clause (iii) the date which such ten (10) calendar day period is exceeded, and for purpose of
        clause (v) the date on which such ten (10) or fifteen (15) calendar day period, as applicable, is exceeded being referred to as “Event Date”), then, in
        addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the
        applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to 2.0% of the aggregate purchase price paid by such Holder pursuant to the Warrant Agreement; provided,
        however, the Company shall not be liable for liquidated damages solely with respect to any Registrable Shares not registered solely as a result of the application of Rule 415 to the extent that the Company otherwise complies with the its
        obligations herein.  The parties agree that the maximum aggregate liquidated damages payable to a Holder under this Agreement shall be 12% of the aggregate Subscription Amount paid by such Holder pursuant to the Warrant Agreement.  If the Company
        fails to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable, the Company will pay interest thereon at a rate of 12% per annum (or such lesser maximum amount that is permitted to be paid by
        applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full.  The partial liquidated damages pursuant to the terms hereof shall apply on a
        daily pro rata basis for any portion of a month prior to the cure of an Event.

       

      (e)          If
          Form S‐3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i) register the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable
          Securities on Form S‐3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement
          then in effect until such time as a Registration Statement on Form S‐3 covering the Registrable Securities has been declared effective by the Commission.

       

      3.          Registration Procedures.

       

      In connection with the Company’s registration obligations hereunder, the Company shall:

       

      (a)          Not
          less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be
          incorporated or deemed to be incorporated therein by reference, but not including (i) any Exchange Act filing or (ii) any supplement or post‐effective amendment to a registration statement that is not related to such Holder’s Registrable
          Securities), the Company shall (i) furnish to each Holder copies of all such documents proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review of such Holders,
          and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable
          investigation within the meaning of the Securities Act.  Notwithstanding the above, the Company shall not be obligated to provide the Holders advance copies of any universal shelf registration statement registering securities in addition to those
          required hereunder, or any Prospectus prepared thereto.  The Company shall not file a Registration Statement or any such

       

      
        
          

          

          

        

        6

        
          

        

      

      

      

      Prospectus or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object in good
        faith, provided that, the Company is notified of such objection in writing no later than five (5) Trading Days after the Holders have been so furnished copies of a Registration Statement or one (1) Trading Day after the Holders have been so
        furnished copies of any related Prospectus or amendments or supplements thereto.  Each Holder agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement as Annex B (a “Selling Stockholder Questionnaire”) on a date that is not less than two (2) Trading Days prior to the
        Filing Date or by the end of the fourth (4th) Trading Day following the date on which such Holder receives draft materials in accordance with this Section.

       

      (b)          (i)
          Prepare and file with the Commission such amendments, including post‐effective amendments, to a Registration Statement and the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective
          (subject to any requirement that a post‐effective amendment be declared effective by the Commission) as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration
          Statements in order to register for resale under the Securities Act all of the Registrable Securities subject to any SEC Guidance that sets forth a limitation on the number of Registrable Securities permitted to be registered on a particular
          Registration Statement, (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424,
          (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to a Registration Statement or any amendment thereto and provide as promptly as reasonably possible to the Holders true and complete copies
          of all correspondence from and to the Commission relating to a Registration Statement (provided that, the Company shall excise any information contained therein which would constitute material non‐public information as to any Holder which has not
          executed a confidentiality agreement with respect thereto with the Company regarding the Company or any of its Subsidiaries), and (iv) comply in all material respects with the applicable provisions of the Securities Act and the Exchange Act with
          respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the terms of this Agreement) with the intended methods of disposition by the Holders thereof set
          forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

       

      (c)          If
          during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but
          in any case prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than the number of such Registrable Securities.

       

      (d)          Notify
          the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as
          reasonably possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a
          Prospectus or any Prospectus supplement or post‐effective amendment to a Registration Statement is proposed to be filed (but not including (i) any Exchange

       

      
        
          

          

          

        

        7

        
          

        

      

      

      

      Act filing or (ii) any supplement or post‐effective amendment to a registration statement that is not related to such Holder’s Registrable Securities),
        (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration Statement, and (C) with respect to a Registration Statement or any
        post‐effective amendment, when the same has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional
        information, (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation
        of any Proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or
        the initiation or threatening of any Proceeding for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made
        in a Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration Statement, Prospectus or other documents so
        that, in the case of a Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
        therein, in light of the circumstances under which they were made, not misleading, and (vi) of the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be material and that, in the
        determination of the Company, makes it not in the best interest of the Company to allow continued availability of a Registration Statement or Prospectus, provided,
        however, in no event shall any such notice contain any information which would constitute material, non‐public information regarding the Company or any of
        its Subsidiaries.

       

      (e)          Use
          its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from
          qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

       

      (f)          Furnish
          to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference
          to the extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that
          any such item which is available on the EDGAR system (or successor thereto) need not be furnished in physical form.

       

      (g)          Subject
          to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by
          such Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).

       

      
        
          

          

          

        

        8

        
          

        

      

      

      

      (h)          The
          Company shall cooperate with any broker-dealer through which a Holder proposes to resell its Registrable Securities in effecting a filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110, as requested by any such Holder,
          and the Company shall pay the filing fee required by such filing within two (2) Business Days of request therefor.

       

      (i)          Prior
          to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from the Registration or
          qualification) of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder reasonably requests in writing, to keep each registration or
          qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the Registrable Securities covered by each
          Registration Statement; provided, that, the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction where it is not
          then so subject or file a general consent to service of process in any such jurisdiction.

       

      (j)          If
          requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall
          be free, to the extent permitted by the Warrant Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holder may request.

       

      (k)          Upon
          the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the
          premature disclosure of such event, prepare a supplement or amendment, including a post‐effective amendment, to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein
          by reference, and file any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated
          therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.  If the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above to suspend the
          use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus.  The Company will use its reasonable best efforts to ensure that the use of the Prospectus may be resumed
          as promptly as is practicable.  The Company shall be entitled to exercise its right under this Section 3(k) to suspend the availability of a Registration Statement and Prospectus, subject to the payment of partial liquidated damages otherwise
          required pursuant to Section 2(d), for a period not to exceed 60 calendar days (which need not be consecutive days) in any 12‐month period.

       

      (l)          Comply
          with all applicable rules and regulations of the Commission in connection with obtaining and maintaining the effectiveness of any Registration Statement required to be filed and maintained with the Commission hereunder.

       

      
        
          

          

          

        

        9

        
          

        

      

      

      

      (m)          The
          Company shall use its reasonable best efforts to maintain eligibility for use of Form S‐3 (or any successor form thereto) for the registration of the resale of Registrable Securities.

       

      (n)          The
          Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting
          and dispositive control over the shares.  During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the Registrable Securities solely because any Holder fails to furnish such information
          within three Trading Days of the Company’s request, any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such
          Holder only, until such information is delivered to the Company.

       

      4.          Registration Expenses.  All fees and expenses incident to the performance of or compliance with, this Agreement by the Company shall be borne by the
          Company whether or not any Registrable Securities are sold pursuant to a Registration Statement.  The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
          without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made with the Commission, (B) with respect to filings required to be made with any Trading Market on which
          the Common Stock is then listed for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing (including, without limitation, fees and disbursements of counsel for the Company in
          connection with Blue Sky qualifications or exemptions of the Registrable Securities), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities), (iii) messenger, telephone and delivery
          expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the
          consummation of the transactions contemplated by this Agreement.  In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement
          (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable
          Securities on any securities exchange as required hereunder.  In no event shall the Company be responsible for any broker or similar commissions of any Holder or, except to the extent provided for in the Warrant Agreement or other costs of the
          Holders.

       

      5.          Indemnification.

       

      (a)          Indemnification by the Company.  The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the
          officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and
          employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each of them,

       

      
        
          

          

          

        

        10

        
          

        

      

      

      

      each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers,
        directors, members, stockholders, partners, agents and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each such controlling Person,
        to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of
        prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
        (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities
        law, or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information
        regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was
        reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose) or
        (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the
        Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice contemplated in Section 6(d), but only if and to the extent that following the receipt of the Advice the
        misstatement or omission giving rise to such Loss would have been corrected.  The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated
        by this Agreement of which the Company is aware.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall survive the transfer of any Registrable Securities by
        any of the Holders in accordance with Section 6(h).

       

      (b)          Indemnification by Holders.  Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and
          employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent
          permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon:  (x) such Holder’s failure to comply with any applicable prospectus delivery requirements of the Securities Act through no
          fault of the Company or (y) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or
          relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were
          made) not misleading (i) to the extent, but only to the extent, that such untrue statement or omission

       

      
        
          

          

          

        

        11

        
          

        

      

      

      

      is contained in any information so furnished in writing by such Holder to the Company expressly for inclusion in such Registration Statement or such
        Prospectus or (ii) to the extent, but only to the extent, that such information relates to such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use
        in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or in any amendment or supplement thereto or (iii) in the case of an occurrence of an event of the type specified in
        Section 3(d)(iii)-(vi), to the extent, but only to the extent, related to the use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated,
        defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice contemplated in Section 6(d), but only if and to the extent that following the receipt of the Advice the misstatement or omission giving
        rise to such Loss would have been corrected.  In no event shall the liability of any selling Holder under this Section 5(b) be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable
        Securities giving rise to such indemnification obligation.

       

      (c)          Conduct of Indemnification Proceedings.  If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to
          the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that, the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or
          liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have
          materially and adversely prejudiced the Indemnifying Party.

       

      An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof,
        but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless:  (1) the Indemnifying Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to
        assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified
        Party and the Indemnifying Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in
        which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and
        the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent,
        which consent shall not be unreasonably withheld or delayed.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a
        party, unless

       

      
        
          

          

          

        

        12

        
          

        

      

      

      

      such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

       

      Subject to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and
        expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice
        thereof to the Indemnifying Party; provided, that, the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is finally determined by
        a court of competent jurisdiction (which determination is not subject to appeal or further review) not to be entitled to indemnification hereunder.

       

      (d)          Contribution.  If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party
          harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in
          connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.  The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to,
          among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such
          Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission.  The amount paid or payable by a party as a result of any Losses
          shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified
          for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

       

      The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro
        rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this Section 5(d), no Holder shall be required
        to contribute pursuant to this Section 5(d), in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of
        any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

       

      The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may
        have to the Indemnified Parties.

       

      6.          Miscellaneous.

       

      (a)          Remedies.  In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement, each Holder or the Company, as the case may be, in

       

      
        
          

          

          

        

        13

        
          

        

      

      

      

      addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, shall be entitled to specific
        performance of its rights under this Agreement.  Each of the Company and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement
        and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

       

      (b)          No Piggyback on Registrations; Prohibition on Filing Other Registration Statements.  Except as set forth on Schedule 6(b) attached hereto, neither the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in any
          Registration Statements other than the Registrable Securities.  The Company shall not file any other registration statements until all Registrable Securities are registered pursuant to a Registration Statement that is declared effective by the
          Commission, provided that this Section 6(b) shall not prohibit the Company from filing supplements or amendments to registration statements filed prior to the date of this Agreement or from filing any registration statements on Form S‐8.

       

      (c)          Compliance.  Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it
          (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to a Registration Statement.

       

      (d)          Discontinued Disposition.  By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company of the
          occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed.  The Company will use
          its reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.  The Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the
          Registrable Securities hereunder shall be subject to the provisions of Section 2(d).

       

      (e)          Piggy-Back Registrations.  If, at any time during the Effectiveness Period, there is not an effective Registration Statement covering all of the
          Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities,
          other than on Form S‐4 or Form S‐8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities
          issuable in connection with the Company’s stock option or other employee benefit plans, then the Company shall deliver to each Holder a written notice of such determination and, if within fifteen days after the date of the delivery of such
          notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such Holder requests to be registered; provided, however, that the Company shall not be required to register any Registrable

       

      
        
          

          

          

        

        14

        
          

        

      

      

      

      Securities pursuant to this Section 6(e) that are eligible for resale pursuant to Rule 144 (without volume restrictions or current public information
        requirements) promulgated by the Commission pursuant to the Securities Act or that are the subject of a then effective Registration Statement.

       

      (f)          Amendments and Waivers.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and
          waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of a majority or more of the then outstanding Registrable Securities (for purposes of
          clarification, this includes any Registrable Securities issuable upon exercise or conversion of any Security); provided, however, unanimous consent shall be required for any amendment that would adversely affect any Holder.  If a Registration
          Statement does not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata
          among all Holders and each Holder shall have the right to designate which of its Registrable Securities shall be omitted from such Registration Statement.  Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof
          with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders may be given only by such Holder or Holders of all of the Registrable
          Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the first sentence of this Section 6(f). No consideration shall be
          offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

       

      (g)          Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as set forth in
          the Warrant Agreement.

       

      (h)          Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties
          and shall inure to the benefit of each Holder.  The Company may not assign (except by merger) its rights or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities.  Each Holder
          may assign their respective rights hereunder in the manner and to the Persons as permitted under Section 11 of the Warrant Agreement.

       

      (i)          No Inconsistent Agreements.  Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its
          Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
          hereof.  Except as set forth on Schedule 6(i), neither the Company nor any of its Subsidiaries has previously entered into any agreement granting
          any registration rights with respect to any of its securities to any Person that have not been satisfied in full.

       

      (j)          Execution and Counterparts.  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

       

      
        
          

          

          

        

        15

        
          

        

      

      

      

      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 e‐mail 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
        or “.pdf” signature page were an original thereof.

       

      (k)          Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in accordance
          with the provisions of the Warrant Agreement.

       

      (l)          Cumulative Remedies.  The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

       

      (m)          Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
          void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their
          commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the
          intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

       

      (n)          Headings.  The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit or
          affect any of the provisions hereof.

       

      (o)          Independent Nature of Holders’ Obligations and Rights.  The obligations of each Holder hereunder are several and not joint with the obligations of any
          other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder.  Nothing contained herein or in any other agreement or document delivered at any closing, and no action
          taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in
          concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company shall
          not asset any such claim, with respect to such obligations or transactions.  Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for
          any other Holder to be joined as an additional party in any proceeding for such purpose.  The use of a single agreement with respect to the obligations of the Company contained was solely in the control of the Company, not the action or decision
          of any Holder, and was done solely for the convenience of the Company and not because it was required or requested to do so by any Holder.  It is expressly understood and agreed that each provision contained in this Agreement is between the
          Company and a Holder, solely, and not between the Company and the Holders collectively and not between and among Holders.

       

      
        
          

          

          

        

        16

        
          

        

      

      

      

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

       

      (Signature Pages Follow)

       

      
        
          

          

          

        

        17

        
          

        

      

      IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

       

      STRATA SKIN SCIENCES, INC.

      

      

      

      

      By:  /s/ Matthew C. Hill________
                 

      Name:  Matthew C. Hill

      Title:  Chief Financial Officer

       

       

      [SIGNATURE PAGE OF HOLDERS FOLLOWS]

       

      
        
          

          

          

        

        18

        
          

        

      

      [SIGNATURE PAGE OF HOLDERS TO STRATA RRA]

       

      MIDCAP FUNDING XXVII TRUST

      

      

      By: Apollo Capital Management, L.P., its investment manager

      

      

      By: Apollo Capital Management GP, LLC, its general partner

      

      

      

      

      By:    /s/ Maurice Amsellem

      Name:  Maurice Amsellem

      Title:  Authorized Signatory

      

      

       

      

      

       

      
        
          

          

          

        

        19

        
          

        

      

      Annex A

       

      PLAN OF DISTRIBUTION

       

      Each Selling Stockholder (the “Selling Stockholders”) of the
        securities and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their securities covered hereby on the Nasdaq Stock Market or any other stock exchange, market or trading facility on which the
        securities are traded or in private transactions.  These sales may be at fixed or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling securities:

       

      

      
        	
                •

              	
                block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block as
                  principal to facilitate the transaction;

                 

                

              

      

      
        	
                •

              	
                purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

                 

                

              

      

      
        	
                •

              	
                an exchange distribution in accordance with the rules of the applicable exchange;

                 

                

              

      

      
        	
                •

              	
                privately negotiated transactions;

                 

                

              

      

      
        	
                •

              	
                settlement of short sales;

                 

                

              

      

      
        	
                •

              	
                in transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number of such securities at a stipulated
                  price per security;

                 

                

              

      

      
        	
                •

              	
                through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

                 

                

              

      

      
        	
                •

              	
                a combination of any such methods of sale; or

                 

                

              

      

      
        	
                •

              	
                any other method permitted pursuant to applicable law.

              

      

       

      

      The Selling Stockholders may also sell securities under Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”), if available, rather than under this prospectus.

       

      Broker-dealers engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales.  Broker-dealers may
        receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in
        the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM‐2440.

       

      In connection with the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with
        broker-dealers or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they assume.

       

      
        
          

          

          

          

        

        
          

        

      

      

      

       

      The Selling Stockholders may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities
        to broker-dealers that in turn may sell these securities.  The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the
        delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect
        such transaction).

       

      The Selling Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be
        “underwriters” within the meaning of the Securities Act in connection with such sales.  In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the securities purchased by them may be deemed to be
        underwriting commissions or discounts under the Securities Act.  Each Selling Stockholder has informed the Company that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the
        securities.  In no event shall any broker-dealer receive fees, commissions and markups which, in the aggregate, would exceed eight percent (8%).

       

      The Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the securities.  The
        Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

       

      Because Selling Stockholders may be deemed to be “underwriters” within the meaning of the Securities Act, they will be subject to the
        prospectus delivery requirements of the Securities Act including Rule 172 thereunder.  In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather
        than under this prospectus.  The Selling Stockholders have advised us that there is no underwriter or coordinating broker acting in connection with the proposed sale of the resale securities by the Selling Stockholders.

       

      We agreed to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling
        Stockholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for the Company to be in compliance with the current public information under Rule 144 under the
        Securities Act or any other rule of similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect.  The resale securities will be sold only through
        registered or licensed brokers or dealers if required under applicable state securities laws.  In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the
        applicable state or an exemption from the registration or qualification requirement is available and is complied with.

       

      Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not
        simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution.  In addition, the Selling Stockholders will be
        subject

       

      
        
          

          

          

          

        

        
          

        

      

       

      to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases
        and sales of the common stock by the Selling Stockholders or any other person.  We will make copies of this prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser
        at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

       

      
        
          

          

          

          

        

        
          

        

      

      Annex B

       

      STRATA SKIN SCIENCES, INC.

        SELLING STOCKHOLDER NOTICE AND QUESTIONNAIRE

       

      The undersigned beneficial owner of common stock (the “Registrable
            Securities”) of STRATA Skin Sciences, Inc., a Delaware corporation (the “Company”), understands that the Company has filed or intends to file
        with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”),
        of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration Rights Agreement”) to which this document
        is annexed. A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below.  All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration
        Rights Agreement.

       

      Certain legal consequences arise from being named as a selling stockholder in the Registration Statement and the related prospectus. 
        Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling stockholder in the Registration Statement and the
        related prospectus.

       

      NOTICE

       

      The undersigned beneficial owner (the “Selling
            Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities owned by it in the Registration Statement.

       

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

       

      
        
          

          

          

          

        

        
          

        

      

      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 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 this Questionnaire):

              

      

       

        

      2.          Address for Notices to Selling
          Stockholder:

       

      

      

      Telephone:

      Fax:

      Contact Person:

       

      3.          Broker-Dealer Status:

       

      
        	
                (a)

              	
                Are you a broker-dealer?

              

      

      Yes ☐ No ☐

       

      
        	
                (b)

              	
                If “yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services to the
                  Company?

              

      

      Yes ☐ No ☐

       

      Note:  If “no” to Section 3(b), 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 ☐

       

      
        	
                (d)

              	
                 If you are an affiliate of a broker-dealer, do you certify that you purchased 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” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

       

      4.          Beneficial Ownership of Securities
          of the Company Owned by the Selling Stockholder.

       

      Except as set forth below in this Item 4, the undersigned is not the beneficial or registered
        owner of any securities of the Company other than the securities issuable pursuant to the Warrant Agreement.

       

      
        	
                (a)

              	
                Type and Amount of other securities beneficially owned by the Selling Stockholder:

              

      

      

      

      

      

      

      

      5.           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 at any time while the Registration Statement remains effective.

       

      By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5
        and the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto.  The undersigned understands that such information will be relied upon by the Company in connection with the
        preparation or amendment of the Registration Statement and the related prospectus and any amendments or supplements thereto.

       

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

       

      Date:                    Beneficial Owner:          

      

      

      
        
          

          

          

          

        

        
          

        

      

      

      

      

      

      By:   _________________________________      

      

       

      

      Name: ___________________________         

      

       

      

      Title:  ____________________________        

      

       

      PLEASE FAX A COPY (OR EMAIL A .PDF COPY) OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT
        MAIL, TO:

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