Document:

Exhibit
10.6

 

SOFTWARE
LICENSING AND EXCLUSIVITY AGREEMENT

 

This
Software Licensing and Exclusivity Agreement (the “Agreement”) is entered into as of September 2, 2021 (the “Effective
Date”) and is between Kwikclick, Inc., a Delaware corporation (“Kwikclick”), and NewAge, Inc., a Delaware
corporation (“NewAge”). Kwikclick and NewAge may be referred to herein individually as a “Party”
or collectively as “Parties.”

 

INTRODUCTION

 

WHEREAS,
NewAge is a Direct Sales company (as defined below) that offers name brand health, wellness, beauty, nutritional, and other lifestyle
products to customers located throughout the world;

 

WHEREAS,
Kwikclick is in the process of launching a proprietary Software (as defined below) that Kwikclick has developed for use in marketing
and selling products through social media, mobile media, and computer applications;

 

WHEREAS,
NewAge wants to license the Software for use in NewAge’s social selling platform to market and sell NewAge products to independent
distributors and customers through social media, mobile media, and other computer applications;

 

WHEREAS,
the Parties want to allow NewAge exclusive use of the Software within the Direct Sales industry; and

 

WHEREAS,
NewAge and Kwikclick want to collaborate on the launch of the Software in order to increase customer sales and attract social media influencers
to NewAge’s business; strengthen NewAge’s social selling platform and opportunity; capitalize on a future trend within the
Direct Sales industry; and provide both Parties with a clear competitive advantage in social selling.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, each Party hereby agrees as follows:

 

	1.	DEFINITIONS.

 

		1.1	“Affiliate(s)”
                                            means any entity controlled by or under common control with NewAge, at the time of execution
                                            of the Agreement and any time thereafter, where “control” is defined as (a) the
                                            ownership of at least 50% of the equity or beneficial interest of such entity, or (b) any
                                            other entity with respect to which NewAge has significant management or operational responsibility
                                            (even though NewAge may own less than 50% of the equity of such entity).

 

		1.2	“Brand
                                            Partner(s)” means any independent distributor located anywhere in the world who
                                            has contracted with NewAge and/or its Affiliates to sell NewAge products.

 

    	 

     

    

 

		1.3	“Direct
                                            Sales” means the industry of companies (and any individual company within the direct
                                            sales industry) that uses a business model that offers entrepreneurial opportunities to individuals
                                            as independent contractors and distributors to market and/or sell products and services,
                                            typically outside of a fixed retail establishment, through one-to-one selling, in-home product
                                            demonstrations, or online.

 

		1.4	“Kwikclick
                                            IP” means collectively the name, brand, logos, URLs, copyrights, trademarks, patents,
                                            and any other intellectual property owned by Kwikclick through registration, common law,
                                            or any other means.

 

		1.5	“Launch
                                            Date” means the first date on which NewAge Brand Partners and NewAge customers
                                            in any NewAge market can access and use the Software, which date will be after the Readiness
                                            Date (as defined below). The Launch Date will be September 15, 2021.

 

		1.6	“License”
                                            means the non-transferable license granted, according to the terms and conditions of this
                                            Agreement, by Kwikclick to NewAge to access and utilize the Software to market and sell NewAge
                                            products to NewAge Brand Partners and customers through social media, mobile media, and other
                                            computer applications.

 

		1.7	“Net
                                            Contribution” means gross net sales minus cost of goods sold.

 

		1.8	“Net
                                            Sales” means the portion of revenues generated from product sales that remain after
                                            deducting the allowances for any missing or damaged products, product returns, and sales
                                            discounts.

 

		1.9	“NewAge
                                            IP” means collectively the name, brand, logos, URLs, copyrights, trademarks, patents,
                                            and any other intellectual property owned by NewAge through registration, common law, or
                                            any other means.

 

		1.10	“Readiness
                                            Date” means the date by which Kwikclick will provide the fully functioning Software
                                            to NewAge, which will allow NewAge to load vendors and products for sale to Brand Partners
                                            and NewAge customers. The Readiness Date will be on or before September 7, 2021.

 

		1.11	“Software”
                                            means the communication, sales, and commission-attribution software developed and licensed
                                            by Kwikclick, which Software is the subject of this Licensing Agreement.

 

		1.12	“Support
                                            and Maintenance Services” means technical support, error correction services and
                                            support, and enhancements provided by Kwikclick to NewAge in order to use, maintain, and
                                            enhance the Software for NewAge, its customers, and its Brand Partners.

 

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	2.	LICENSE.

 

		2.1	License
                                            to Use Software. Subject to the terms and conditions of this Agreement, Kwikclick hereby
                                            grants to NewAge and its Affiliates the License. NewAge may customize the Software for use
                                            in NewAge’s social selling platform, but may not, however, transfer or sublicense the
                                            Software to any third-party. Kwikclick will provide instructions and guidelines to NewAge
                                            to be followed for installation, implementation, access, and use of the Software by NewAge.

 

		2.2	Additional
                                            Software. It may become necessary during the Term to provide upgrades to the Software
                                            or additional software to enhance the power and/or usability of the Software. If such upgrades
                                            or additional software is necessary, the License granted above is sufficient to cover NewAge’s
                                            access and use of the upgrade and/or additional software. Kwikclick will provide instructions
                                            and guidelines to NewAge to be followed for installation, implementation, access, and use
                                            of any additional software by NewAge.

 

		2.3	Reservation
                                            of Rights. Kwikclick hereby reserves all rights not expressly granted to NewAge under
                                            this Agreement.

 

	3.	KWIKCLICK
                                            SUPPORT AND MAINTENANCE SERVICES. During the Term, Kwikclick will provide technical support,
                                            error correction services and support, and enhancements provided by Kwikclick to NewAge in
                                            order to use, maintain, and enhances the Software (collectively, the “Support and
                                            Maintenance Services”). Kwikclick will provide telephone and online assistance
                                            to NewAge for the purpose of answering questions relating to the Software, including (a)
                                            clarification of functions and features of the Software; (b) clarification of any documentation
                                            provided by Kwikclick relating to the Software; (c) guidance in operation of the Software;
                                            and (d) error verification, analysis, and correction, including failure to produce results
                                            according to representations and warranties made by Kwikclick. Error verification, analysis,
                                            and correction services will be provided by Kwikclick to NewAge 24 hours a day, 7 days a
                                            week by technicians sufficiently trained and experienced to identify and resolve most support
                                            issues. Kwikclick will provide a current list of technicians and contact information to NewAge
                                            to allow NewAge to escalate support issues. If NewAge detects what it considers to be an
                                            error in the Software that causes it not to conform to, or produce results according to,
                                            Kwikclick’s representations and warranties, then NewAge will notify Kwikclick of the
                                            error. Kwikclick will respond generally within one hour of NewAge’s initial request
                                            and will work with NewAge to correct the error or develop a workaround for any Software error
                                            resulting in downtime.

 

	4.	EXCLUSIVITY.

 

		4.1	Exclusivity
                                            within the Direct Sales Industry. As long as NewAge achieves the Net Sales targets set
                                            forth below over a period of three years from the Launch Date, Kwikclick hereby grants the
                                            exclusive use of the Software to NewAge in the Direct Sales industry and will not license
                                            or connect the Software to any Direct Sales company directly or through a third party. The
                                            Parties understand and agree that independent distributors or customers of other Direct Sales
                                            companies may utilize the Software on an individual consumer basis. Kwikclick will not engage
                                            in any activities or that conflict with this exclusivity. In the event of a conflict or a
                                            perceived conflict with this Agreement, the Parties will negotiate new or additional terms
                                            in good faith to remedy the conflict for the Term of this Agreement and any extension of
                                            the Term of this Agreement.

 

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		4.2	First
                                            Two Six-Month Terms. Kwikclick grants the exclusivity stated above for an initial Term
                                            of six months from the Launch Date. In the first six-month Term from the Launch Date, the
                                            total Net Sales generated by NewAge Brand Partners through the Software must be at least
                                            $20,000,000.00 USD, which would result in $800,000.00 USD in commissions for Kwikclick, in
                                            order to maintain exclusivity for the six-month Term that follows in the first six months
                                            of the Agreement from the Launch Date. If NewAge does not achieve the Net Sales target in
                                            the first Term, NewAge may elect at its discretion to pay any remaining difference of the
                                            full amount of the $800,000.00 USD in commissions to Kwikclick in order to maintain exclusivity.
                                            In the event that NewAge anticipates that it will not achieve the Net Sales target in the
                                            first six months and is unwilling to pay the difference in the commissions to maintain exclusivity,
                                            then NewAge will notify Kwikclick in writing at the beginning of month five from the Launch
                                            Date that NewAge will not meet the Net Sales targets and will not pay the difference in the
                                            commissions to achieve exclusivity. In the second six-month Term, the total Net Sales generated
                                            by NewAge Brand Partners through the Software must be at least $30,000,000.00 USD, which
                                            would result in $1,200,000.00 USD in commissions for Kwikclick, in order to maintain exclusivity
                                            for the three-month Term that follows the second six-month Term. If NewAge does not achieve
                                            the Net Sales target in the second Term, NewAge may elect at its discretion to pay any remaining
                                            difference of the full amount of the $1,200,000.00 USD in commissions to Kwikclick in order
                                            to maintain exclusivity.

 

		4.3	Extension
                                            of the Term of Exclusivity. After the first 12 months from the Launch Date, NewAge may
                                            extend the term of exclusivity in three-month increments (each three- month increment is
                                            a “Term”) by meeting the following quarterly sales targets of Net Sales
                                            generated by Brand Partners:

 

	 	During
    the second year from the Launch Date:	$25,000,000.00
    in Net Sales per quarter
	 	During
    the third year from the Launch Date:	$37,500,000.00
    in Net Sales per quarter

 

	5.	LICENSING
                                            FEES AND SALES COMMISSIONS.

 

		5.1	Licensing
                                            Fee. NewAge will pay to Kwickclick a licensing fee of $50,000.00 USD per month for the
                                            duration of this Agreement. The fee is due on the last day of each month.

 

		5.2	Commissions
                                            for Sales of NewAge Products in China. For all sales of current NewAge products (products
                                            that are currently sold by NewAge in Greater China Market as of the Effective Date) through
                                            the Software in the Greater China Market, NewAge will pay a commission to Kwikclick of 3%
                                            of Net Sales of the products sold through the Software in that market. NewAge will pay a
                                            commission to Kwikclick of 4% of Net Sales of products sold through the Software that are
                                            introduced to the Greater China Market by NewAge after the Effective Date. “Greater
                                            China Market” means mainland China, Hong Kong, and Taiwan.

 

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		5.3	Commissions
                                            for Sales of NewAge Products in Other Countries. For all sales of NewAge products through
                                            the Software in other markets, NewAge will pay a commission to Kwikclick of 4% of Net Sales
                                            of the products sold through the Software in that market.

 

		5.4	Commissions
                                            for Sales of Non-NewAge Products. For all sales of products that are not branded by NewAge,
                                            but for which NewAge has an agreement to sell a third-party vendor’s products through
                                            the Software, NewAge will pay a commission to Kwikclick that will be the greater of 4% of
                                            Net Sales, or 50% of the Net Contribution minus base commissions paid to consumer participants.

 

		5.5	Sales
                                            Collection and Calculation of Commission. Kwikclick will capture the sales of all NewAge
                                            products and non-NewAge products sponsored by NewAge that are made through the Software.
                                            Sales will be captured in the currency in which the sales are made according to the market
                                            in which the products are sold. Each week, Kwikclick will calculate the commissions owed
                                            according to the provisions above and will remit the net revenue to NewAge along with the
                                            accounting for the calculation of commissions owed for that week. Upon seven days’
                                            written notice to Kwikclick, NewAge independent auditors may have the right at reasonable
                                            times during normal business hours to examine the records of Kwikclick to verify the accuracy
                                            of Kwikclick’s collections and calculations of commissions and the remittance by Kwikclick
                                            to NewAge of the net revenue of the product sales through the Software.

 

	6.	NEWAGE
                                            SUPPORT FOR KWIKCLICK. As part of the consideration for the exclusive use of the Software
                                            within the Direct Sales industry, NewAge will assist Kwikclick with the following back-office
                                            services and will provide the following support to Kwikclick:

 

		6.1	Merchant
                                            Services. In the event that Kwikclick is unable to activate and integrate its merchant
                                            services account in time for the Launch Date, NewAge will allow Kwikclick to use NewAge’s
                                            merchant services account to process sales of product through Kwikclick. NewAge will allow
                                            the use of the merchant services account at the rates NewAge pays for such services whenever
                                            possible. Kwikclick, however, understands and agrees that such simultaneous use may not be
                                            possible or may not be possible at the rates that NewAge pays for such services. If possible,
                                            NewAge will also provide commercially reasonable assistance to Kwikclick to establish Kwikclick’s
                                            own merchant services account.

 

		6.2	Transfer
                                            of NewAge’s Shanghai Trading Company. NewAge will permanently transfer ownership
                                            of its entity named ARIIX Trading (Shanghai) Co., Ltd. to Kwikclick for Kwikclick’s
                                            exclusive use. NewAge will assist in the legal transfer of the entity, which transfer must
                                            be reviewed and approved by the Ministry of Commerce of the People’s Republic of China.
                                            The Parties understand and agree that while NewAge will provide commercially reasonable efforts
                                            to transfer the Shanghai entity to Kwikclick, the final approval of the transfer comes from
                                            the Ministry of Commerce. NewAge will not be liable to Kwikclick if the Ministry of Commerce
                                            delays the transfer or does not approve the transfer.

 

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		6.3	Marketing.
                                            NewAge will promote the use of the Software to its Brand Partners through marketing,
                                            regular product introductions, training, and use support.

 

		6.4	Personnel.
                                            NewAge will designate an employee in each NewAge market to be responsible for the deployment
                                            of Kwikclick in that market.

 

		6.5	Collaboration.
                                            The Parties agree to work together to launch Kwikclick in those markets in which NewAge
                                            already operates. NewAge may prioritize the markets on which Kwikclick should focus its efforts.
                                            The Parties acknowledge that it will take Kwikclick longer to open certain markets if it
                                            does so on its own, so both Parties will collaborate and cooperate on the launching of NewAge’s
                                            prioritized markets. Both Parties will dedicate resources to opening the prioritized markets
                                            expeditiously. Such collaboration may take the form of sharing personnel, software, know-how,
                                            and other resources.

 

		6.6	Indemnification.
                                            Each Party will fully indemnify, hold harmless, and defend the other Party and its directors,
                                            officers, employees, agents, stockholders, and Affiliates from and against all claims, demands,
                                            actions, suits, damages, liabilities, losses, settlements, judgments, costs and expenses
                                            (including but not limited to reasonable attorneys’ fees and costs), whether or not
                                            involving a third-party claim, which arise out of or relate to any a Party’s provision
                                            of back-office services to the other Party. In no event will either Party’s aggregate
                                            liability arising out of or related to the provision of back-office services to the other
                                            Party and these terms and conditions under any legal or equitable theory, including breach
                                            of contract, tort (including negligence), strict liability, and otherwise exceed the total
                                            amounts paid to Kwikclick under this Agreement in the one-year period preceding the event
                                            giving rise to the claim.

 

	7.	SOFTWARE
                                            READINESS DATE AND LAUNCH DATE.

 

		7.1	Software
                                            Readiness Date. Kwikclick will provide the fully functioning Software to NewAge on or
                                            before September 7, 2021. At that time, NewAge will be able to load new vendors and products
                                            into the Software to sell products through the Software.

 

		7.2	Launch
                                            Date. The Parties understand and agree that NewAge will need some time between the Readiness
                                            Date and the Launch Date in order to prepare for the Launch Date and to work through issues
                                            such as commission flows, tax issues, etc. The Launch Date will be September 15, 2021. NewAge
                                            reserves the right to launch the Software as beta version in order to test the Software.
                                            Regardless of whether NewAge launches the Software as a beta version or a full version, the
                                            Term will begin on September 15, 2021.

 

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	8.	THIRD-PARTY
                                            VENDORS.

 

		8.1	NewAge
                                            Promoting Third-Party Vendors Through the Software. The Parties understand and agree
                                            that NewAge will have the right to contract with third-party vendors to sell third-party
                                            vendor products through Kwikclick. Kwikclick hereby grants a right of first refusal to NewAge
                                            to promote any third-party vendors that are introduced to Kwikclick by parties other than
                                            NewAge subject to the agreement of the third-party vendor. “Promote” means
                                            that NewAge will promote and sell the vendor’s goods or services to NewAge Brand Partners
                                            and NewAge customers through the Software. NewAge will have seven calendar days from the
                                            initial introduction to the third-party vendor in order to exercise the right of first refusal
                                            to sponsor the third-party vendor. At the expiration of the seven calendar days, if NewAge
                                            has not exercised its right of first refusal, Kwikclick will be free to promote the third-party
                                            vendor directly through the Software at its discretion.

 

		8.2	NewAge
                                            Brand Partners, NewAge Customers, and Employees Presenting Third-Party Vendor Promotion Opportunities.
                                            From time to time, NewAge Brand Partners, customers, or employees may present to NewAge
                                            opportunities to promote third-party vendors through the Software. The Parties understand
                                            and agree that such opportunities should be presented directly to NewAge, not to Kwikclick.
                                            NewAge at its sole discretion may accept or reject the opportunity to promote a third-party
                                            vendor that comes from a Brand Partner, customer, or employee of NewAge. In the event that
                                            NewAge rejects such an opportunity, the Parties agree that neither Party wants NewAge Brand
                                            Partners, customers, or employees to leave NewAge to promote a third-party vendor opportunity
                                            directly with Kwikclick. The Parties will work together to disincentivize NewAge Brand Partners,
                                            customers, or employees from attempting to work directly with Kwickclick. Kwikclick agrees
                                            not to use any Confidential Information (as defined below), including the Brand Partner database,
                                            to entice Brand Partners, customers, or employees to leave NewAge.

 

	9.	TERM
                                            AND TERMINATION.

 

		9.1	Term.
                                            During the first year of this Agreement from the Launch Date, a “Term”
                                            will be six months each. During the second and third years of this Agreement from the Launch
                                            Date, a “Term” will be three months each.

 

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		9.2	Termination.
                                            The Parties may, with Cause, terminate this Agreement at any time. “Cause”
                                            includes any one or more of the following: (1) the charge of a felony, or commission or acts
                                            of fraud, embezzlement, or the like by one of the Parties or an employee or agent of one
                                            of the Parties; (2) material breach by one of the Parties to this Agreement having an adverse
                                            effect on the other Party or its business, operations, or financial condition, which breach,
                                            if curable, is not cured within 10 days following the breaching Party’s receipt of
                                            written notice thereof (such notice will specify in reasonable detail the nature of the material
                                            breach and the curative steps, if curable, required to be taken); (3) intentional failure
                                            by a Party to perform reasonably assigned duties after the breaching Party has been given
                                            written notice by the other Party with respect to such failure and the failing Party has
                                            substantially failed to remedy or cure such failure within a reasonable period of time; and
                                            (4) becoming insolvent, bankrupt, entering receivership, dissolution, or liquidation. Either
                                            Party may terminate this Agreement upon written notice to the other Party if a Party is associated
                                            with a security breach that materially adversely affects the other Party or if any directors
                                            or officers of a Party are formally accused of fraudulent or illegal conduct which, in the
                                            Party’s good faith determination, materially harms the Party’s general reputation
                                            or would harm the Party’s reputation by its continued association with the other Party.
                                            NewAge may terminate the Agreement at any time if it is not satisfied with the function or
                                            performance of the Software.

 

	10.	DATA
                                            SHARING, INTELLECTUAL PROPERTY OWNERSHIP, CONFIDENTIALITY, AND CONSUMER PRIVACY.

 

		10.1	Data
                                            Sharing. The Parties anticipate and agree that the following data may be shared with
                                            each Party during the Term of this Agreement. This list is not exclusive, and the Parties
                                            may share other types of data during the Term as appropriate to the scope of the collaboration
                                            between the Parties. All data shared between the Parties are subject to the intellectual
                                            property ownership, confidentiality, and consumer privacy provisions of this Agreement.

 

		(a)	Items:
                                            item details, quantity on hand, price, shipping options, and shipping status;

 

		(b)	Brand
                                            Partner and NewAge customer information: name, billing address, shipping address, representative
                                            identification number, email address, phone number, fax number, and WeChat identification.

 

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		10.2	Ownership
                                            of Intellectual Property.

 

		(a)	Customer
                                            Information. The Parties agree that they jointly own the consumer information that will
                                            be gathered by the Software during either the selling of NewAge’s products to customers
                                            through the Software or the selling of non- NewAge products to NewAge’s Brand Partners
                                            and NewAge customers through the Software. Such consumer information will include purchase
                                            behavioral data, demographic data, and financial data. The Parties further agree that the
                                            Parties will jointly own consumer information only for customers who purchase NewAge products
                                            through the Software or for purchases made by NewAge’s existing or future Brand Partners
                                            and NewAge customers through the Software. All other customer information processed through
                                            the Software that is unrelated to NewAge will be owned exclusively by Kwikclick. The NewAge
                                            Brand Partner and NewAge customer database and associated Brand Partner and NewAge customer
                                            information will be owned exclusively by NewAge. The jointly owned consumer information gathered
                                            by the Software may only be used for the benefit of the Parties collectively and may not
                                            be sold, transferred, or used for the benefit of only one Party without the written consent
                                            of the other Party. All such consumer information will be considered confidential Information
                                            (as defined below) and subject to the confidentiality restrictions stated below. The joint
                                            ownership of the consumer information by the Parties will survive the termination of this
                                            Agreement.

 

		(b)	Kwikclick
                                            Intellectual Property. Kwikclick is the exclusive owner of the Kwikclick IP (as defined
                                            above). Kwikclick is the exclusive owner of all its brand assets, content created by Kwikclick
                                            and added to the Software by Kwikclick. Kwikclick owns the relationship (the “Relationship”)
                                            with its customers who are not current or NewAge Brand Partners or customers. For the purposes
                                            of this Agreement, Relationship is defined as the right to communicate and interact with
                                            its customers. Notwithstanding the foregoing, NewAge will have access to and rights to all
                                            generic user data and usage data collected as defined and described in the End User License
                                            Agreement between Kwikclick and its end users solely for the purposes of improving upon and
                                            further developing the Software, and for presenting business development and sponsorship
                                            opportunities to Kwikclick.

 

		(c)	NewAge
                                            Intellectual Property. NewAge is the exclusive owner of the NewAge IP (as defined above).
                                            NewAge is the exclusive owner of its Brand Partner and customer database. NewAge is the exclusive
                                            owner of all its brand assets, content created by NewAge and added to the Software by NewAge.
                                            NewAge owns the relationship (the “Relationship”) with its current and
                                            future Brand Partners and customers. For the purposes of this Agreement, Relationship is
                                            defined as the right to communicate and interact with its Brand Partners and customers, even
                                            those who use the Software. Notwithstanding the foregoing, Kwikclick will have access to
                                            and rights to all generic user data and usage data collected as defined and described in
                                            the End User License Agreement between Kwikclick and its end users solely for the purposes
                                            of improving upon and further developing the Software, and for presenting business development
                                            and sponsorship opportunities to NewAge.

 

		(d)	No
                                            Solicitation or Enticement. Kwikclick will not at any time, without the prior written
                                            express consent of NewAge, solicit or entice current or future Brand Partners or NewAge customers
                                            to disrupt or to sever their relationships with NewAge for any reason.

 

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		10.3	Confidentiality.
                                            The Parties believe that it is in their mutual interest to ensure that all confidential,
                                            proprietary, and private information shared by one Party will be safeguarded and carefully
                                            protected by the receiving Party.

 

		(a)	Confidential,
                                            proprietary, and private information refers to knowledge, data, and/or know-how related to
                                            the Parties’ business operations, including, but not limited to, trade secrets, new
                                            inventions, designs, specifications for current and new products, plans and processes, customer
                                            and supplier lists, and other data concerning the manner in which the business is operated,
                                            as well as plans for its future development (the “Information”).

 

		(b)	As
                                            used herein, the term “Recipient” can mean either Party, or the affiliates,
                                            officers, directors, employees, and agents of either, upon disclosure of the Information
                                            by the other Party referred to as the “Disclosing Party.” Recipient agrees
                                            to keep in confidence and not use the Information, or authorize the use of, the Information
                                            other than solely for the purpose of performance under this Agreement. Recipient further
                                            agrees that it will keep in confidence and not disclose any part of the Information to a
                                            third party or parties for the duration of this Agreement, or in the event that this Agreement
                                            is terminated for any reason, for a period of three years after the date this Agreement is
                                            terminated, or for a period of 10 years in the case of the NewAge Brand Partner database.

 

		(c)	Any
                                            obligation of Recipient as set forth in the preceding paragraph will not apply to any information,
                                            knowledge, data, and/or know-how that:

 

		(1)	Is
                                            or becomes public knowledge through no action or fault of the Recipient;

 

		(2)	Recipient
                                            possessed before the time of disclosure by the Disclosing Party and Recipient can properly
                                            demonstrate such prior possession;

 

		(3)	Recipient
                                            lawfully received from a third party who had the legal right to disclose the same, and who
                                            has not received the same from the Disclosing Party; and

 

		(4)	Recipient
                                            developed independent of the Disclosing Party without the benefit of the Information and
                                            Recipient can substantiate such development by reliable and credible evidence.

 

		(d)	If
                                            Recipient is required to disclose the Information in response to a valid law or regulation
                                            or order issued by a court or other governmental body, or for the purpose of establishing
                                            its rights under this Agreement, Recipient will notify the Disclosing Party in writing before
                                            making the disclosure and will take all reasonable steps to preserve the confidentiality
                                            of the Information, including, but not limited to, assisting the Disclosing Party to obtain
                                            a judicial or administrative order of confidentiality, and will thereafter disclose only
                                            so much as is necessary to comply with the law, regulation, or order, or to establish its
                                            rights under this Agreement.

 

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		(e)	Recipient
                                            agrees that it will disclose the Information only to those employees or personnel who have
                                            a need to know it for the purpose of this Agreement, and to obligate its employees or personnel
                                            who will have access to any portion of the Information to protect the confidential and proprietary
                                            nature of the Information.

 

		(f)	Recipient
                                            will satisfy its obligations to protect the Information of the Disclosing Party from misuse
                                            or unauthorized disclosure by exercising reasonable care. Such care will include safeguarding
                                            and protecting the Information using those practices that the Recipient normally uses to
                                            restrict disclosure and use of its own Information of like importance.

 

		(g)	Recipient’s
                                            obligations regarding the Information as set forth herein will apply to all Information,
                                            whether or not the Information is expressly designated “Confidential.” Disclosing
                                            Party, however, will exercise reasonable diligence in notifying Recipient in writing or orally
                                            what Information the Disclosing Party deems confidential or proprietary in nature.

 

		(h)	Unless
                                            otherwise specified in writing, Recipient acknowledges and agrees that Disclosing Party remains
                                            the sole and exclusive owner of all rights in and to the Information disclosed, and if so
                                            requested, the Recipient will return to Disclosing Party, or destroy, all Information, in
                                            whatever format, in the possession or control of the Recipient, including all originals,
                                            copies, reprints, and translations thereof. If such works are deleted, erased, or otherwise
                                            destroyed, the Recipient will certify to the Disclosing Party in writing to such deletion,
                                            erasure, or destruction. Notwithstanding such return, delivery, or destruction, the Recipient
                                            will continue to be bound by all of its obligations hereunder. Furthermore, Recipient will
                                            not use the Information to produce, duplicate, or otherwise form or create any competitive
                                            product or service.

 

		(i)	Other
                                            than as stated above, this Agreement will in no way be construed as the grant of a license
                                            by either Party to the other directly or indirectly under any patent, patent application,
                                            other intellectual property, intellectual property application, or other form of proprietary
                                            property owned by the Disclosing Party.

 

		(j)	To
                                            the extent Disclosing Party pays Recipient to develop or create materials, ideas, designs,
                                            specifications of new products, plans, processes, or other such trade secrets on an independent
                                            contractor, work-for-hire basis, they will be considered to have become part of the Information
                                            as of the date of creation or development.

 

    	11

     

    

 

		(k)	The
                                            Parties to this Agreement agree that without regard to whether all of the information and
                                            materials constituting the Information as revealed to Recipient will be deemed confidential,
                                            material, or important as between the Parties; the Information is important, material, and
                                            gravely affects the effective and successful conduct of Disclosing Party’s business
                                            and that any breach of this confidentiality provision will be a material breach, which will
                                            result in immediate, continuing, and irreparable harm to the Disclosing Party; and Recipient
                                            consents to appropriate remedies, including injunctive relief, in the event of such breach.

 

		(l)	The
                                            Parties state that they have full authority to disclose any Information contemplated herein.
                                            To the best of its knowledge, each Party represents that disclosure of the Information referenced
                                            herein will not violate the rights of any third party.

 

		(m)	The
                                            Disclosing Party makes no express or implied representation or warranty as to the accuracy
                                            or completeness of the Information provided or derived according to this Agreement, and it
                                            expressly disclaims any and all liability that may be based on the Information or any errors
                                            therein or omissions therefrom.

 

		(n)	Recipient
                                            cannot use the Information to create, enhance, or promote a product or service that competes
                                            with the products and services contemplated by this Agreement, and Recipient cannot share
                                            the Information with a third-party to create, enhance, or promote a product or service that
                                            competes with the products or services contemplated by this Agreement.

 

	 	10.4	Data
                                            Privacy, Compliance, and Audits.

 

		(a)	Data
                                            Privacy Compliance. The Parties acknowledge and agree that each Party will remain in
                                            compliance with all applicable laws and regulations that govern data privacy in the jurisdictions
                                            in which the Parties operate (laws such as, but not limited to, the European Union’s
                                            General Data Protection Regulation (“GDPR”), the California Consumer Privacy
                                            Act (“CCPA”), and other privacy laws and regulations that are now in effect
                                            or may yet come into effect). The Parties will each implement and maintain a written information
                                            security program that contains appropriate security measures to safeguard the personal information
                                            of the Parties’ shareholders, employees, directors, officers, Brand Partners, and customers
                                            that the Parties receive, store, maintain, process, or otherwise accesses in connection with
                                            the provision of services hereunder. The Parties will remain compliant with their respective
                                            written information security programs. For these purposes, “personal information”
                                            will mean (a) an individual’s name (first initial and last name or first name and last
                                            name), address or telephone number plus (i) social security number, (ii) driver’s license
                                            number, (iii) state identification card number, (iv) debit or credit card number, (v) financial
                                            account number or (vi) personal identification number or password that would permit access
                                            to a person’s account or (b) any combination of the foregoing that would allow a person
                                            to log onto or access an individual’s account. Notwithstanding the foregoing “personal
                                            information” will not include information that is lawfully obtained from publicly available
                                            information, or from
federal, state, or local government records lawfully made available to the general public.

 

    	12

     

    

 

		(b)	Audits
                                            and Inspections. The Parties acknowledge and agree that each Party will maintain a current
                                            version of the written information security program stated above in order to provide it to
                                            auditors and other professionals or regulators that may audit either or both Parties from
                                            time to time. Each Party reserves the right to audit the other Party to ensure that the appropriate
                                            current version of the written information security program is available. Upon seven days’
                                            written notice to either Party, the requesting Party’s independent auditors may have
                                            the right at reasonable times during normal business hours to examine the records of the
                                            other Party to verify the existence of the current written information security program and
                                            to verify compliance with that program and compliance with all applicable privacy laws and
                                            regulations in the jurisdictions in which the Parties operate, including, but not limited
                                            to, the GDPR and CCPA.

 

		10.5	End
                                            User License Agreement and Privacy Policy. Upon using the Software for the first time,
                                            each user will be prompted to accept terms and conditions and approve a user privacy policy
                                            (“Privacy Policy”) when the user sets up a profile. It is Kwikclick’s
                                            responsibility to provide the End User License Agreement (“EULA”) and
                                            Privacy Policy for the Software and ensure that the EULA and Privacy Policy comply with all
                                            applicable laws and regulations. Kwikclick has a “templated” EULA and privacy
                                            policy that may be shared with and customized by NewAge, but NewAge is not responsible for
                                            verifying that EULA and Privacy Policy language complies with all applicable laws and regulations,
                                            even if NewAge supplies or modifies such templated language.

 

		10.6	Survival.
                                            The Parties’ obligations under sections 10.2 Ownership of Intellectual Property, 10.3
Confidentiality, and 10.4 Data Privacy, Compliance, and Audits will survive the termination of this Agreement.

 

	11.	REPRESENTATIONS
                                            AND WARRANTIES.

 

		11.1	Ownership
                                            and Authorization. Kwikclick hereby represents and warrants to NewAge that Kwikclick
                                            is the owner of the Software and that it is fully authorized to license the Software to NewAge.
                                            Kwikclick represents, warrants, and agrees that: Kwikclick has all intellectual property
                                            rights necessary to license the Software to NewAge according to the terms of this Agreement;
                                            Kwikclick is the sole owner or is a valid licensee of the Software and has secured all necessary
                                            licenses, consents, and authorizations with respect to the use of the Software to the full
                                            extent contemplated herein, including, but not limited to: all source code, text, pictures,
                                            audio, video, logos and copy contained therein; the Software does not and will not infringe
                                            upon any patent, copyright, trademark or other proprietary right or violate any trade secret
                                            or other contractual right of any third party; and there is currently no actual or threatened
                                            suit against Kwikclick by any third party based on an alleged violation of such right. This
                                            warranty will survive the expiration or termination of this Agreement.

 

    	13

     

    

 

		11.2	“As
                                            Is.” Kwikclick offers the Software “as is.” In the event NewAge believes
                                            that the Software is not performing as expected, NewAge will notify Kwikclick, and Kwikclick
                                            will use its best commercial efforts to correct any error or defect in the Software or in
                                            the services provided by Kwikclick to NewAge through the Software.

 

		11.3	Support
                                            and Maintenance Services. Kwikclick represents, warrants, and agrees that it will perform
                                            its obligations required by this Agreement in a good, workmanlike, and professional manner,
                                            according to the highest applicable industry practices and standards and in compliance with
                                            all applicable laws and regulations; provided, however, that where this Agreement specifies
                                            a particular standard or criteria for performance, this warranty shall not diminish that
                                            standard or criteria for performance.

 

	12.	RELATED
                                            PARTY DISCLOSURE AND INCENTIVES. In the interest of avoiding any potential conflicts
                                            of interest, Kwikclick will provide NewAge, before execution of this Agreement, with a list
                                            of NewAge employees who have a financial interest in Kwikclick. Kwikclick will not offer
                                            any financial compensation as an enticement or a reward, in the form of cash or stock, to
                                            any NewAge employee without the express written consent of NewAge. Notwithstanding this condition,
                                            Kwikclick will have the right to sell its stock to any individual on any public stock exchange
                                            at the prevailing market price.

 

	13.	PUBLIC
                                            ANNOUNCEMENTS. The Parties will consult with each other before issuing any press releases
                                            or otherwise making any public statements with respect to this Agreement and the transactions
                                            contemplated hereby and, subject to any applicable disclosure requirements, will not issue
                                            any such press release or make any such public statement without providing reasonable notice
                                            to the other Party of the intent to do so.

 

	14.	MISCELLANEOUS.

 

		14.1	Prior
                                            Agreements and Engagement. Both Parties represent and warrant that each Party’s
                                            engagement under this Agreement does not violate any other agreement to which either is a
                                            party, nor violate or breach any confidential relationship between any other parties. Both
                                            Parties further agree that they will not use for each other’s benefit or disclose any
                                            confidential information of any third party which either party is prohibited by agreement
                                            (such as an agreement with another client) or otherwise from so using or disclosing such
                                            confidential information. Both Parties represent that both Parties have disclosed to each
                                            other any such confidential relationships and relevant agreements and prohibitions. Both
                                            Parties agree to indemnify and hold each other harmless from all damages, expenses, costs
                                            (including reasonable attorneys’ fees) and liabilities incurred in connection with,
                                            or resulting from breach of this Section.

 

		14.2	Assignment.
                                            Neither this Agreement nor any right or obligation hereunder will be assigned, delegated,
                                            or otherwise transferred (by operation of law or otherwise) by any Party without the prior
                                            written consent of the other Party, except as otherwise provided in this Agreement. This
                                            Agreement will be binding on and inure to the benefit of the respective permitted successors
                                            and assigns of the Parties. Any purported assignment, delegation, or other transfer not permitted
                                            by this Section is void.

 

    	14

     

    

 

		14.3	Notices.

 

		(a)	For
                                            a notice or other communication under this Agreement to be valid, it must be in writing and
                                            delivered (1) by hand, (2) by a national transportation company, with all fees prepaid, or
                                            (3) by registered or certified mail, return receipt requested and postage prepaid.

 

		(b)	For
                                            a notice or other communication to a Party under this Agreement to be valid, it must be addressed
                                            using the information specified below for that Party.

 

	 	To
    NewAge:	NewAge,
                                            Inc.

    2420
    17th Street, Suite 220

    Denver,
    CO 80202

    Attention: Brent Willis

	 	 	Copy
                                            to:

     

    NewAge,
    Inc.

    737 E 1180 S

    American
    Fork, UT 84003

    Attention: Tyler Jones

	 	 	 
	 	To
    Kwikclick:	Kwikclick,
                                            Inc.

    Attn:
    Teressa Toombs

    876 East Vine Street

    Murray, Utah 84107

     

    Copy
    to the current residence of Fred Cooper:

     

    1284 Hidden Quail Cove

    Farmington,
    Utah 84025

 

		14.4	Severability.
                                            The Parties agree as follows:

 

		(a)	that
                                            if any provision of this Agreement is held to be unenforceable, then that provision will
                                            be modified to the minimum extent necessary to make it enforceable, unless that modification
                                            is not permitted by law, in which case that provision will be disregarded;

 

		(b)	that
                                            if an unenforceable provision is modified or disregarded in accordance with this section,
                                            then the rest of the Agreement will remain in effect as written; and

 

		(c)	that
                                            any unenforceable provision will remain as written in any circumstances other than those
                                            in which the provision is held to be unenforceable.

 

    	15

     

    

 

		14.5	Governing
                                            Law. The laws of the state of Utah, without giving effect to its principles of conflicts
                                            of law, govern this Agreement and govern all matters of validity, construction, effect, performance,
                                            adversarial proceedings, and all other matters arising out of this Agreement.

 

		14.6	Jurisdiction,
                                            Venue, and Waiver of Jury Trial. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE
                                            JURISDICTION OF THE STATE AND FEDERAL COURTS IN SALT LAKE CITY, UTAH AND ANY APPELLATE COURT
                                            THEREFROM, IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY ANCILLARY
                                            DOCUMENT, AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY, AND TO THE RESPECTIVE COURT
                                            TO WHICH AN APPEAL OF THE DECISIONS OF ANY SUCH COURT MAY BE TAKEN, AND EACH PARTY AGREES
                                            NOT TO COMMENCE, OR COOPERATE IN OR ENCOURAGE THE COMMENCEMENT OF, ANY SUCH PROCEEDING, EXCEPT
                                            IN SUCH A COURT. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY DO SO,
                                            THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE THEREIN OF SUCH A PROCEEDING. EACH
                                            PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT,
                                            AND ANY OTHER PROCESS WITH RESPECT TO ANY SUCH PROCEEDING THAT MAY BE SERVED IN ANY SUCH
                                            PROCEEDING, BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, BY DELIVERING A COPY THEREOF TO
                                            SUCH PARTY AT ITS RESPECTIVE ADDRESS, BY THE REQUIREMENTS OF THIS AGREEMENT OR BY ANY OTHER
                                            METHOD PROVIDED BY APPLICABLE LAW. EACH PARTY HEREBY AGREES THAT A FINAL JUDGMENT IN ANY
                                            SUCH PROCEEDING WILL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY JURISDICTION BY SUIT ON THE
                                            JUDGMENT OR BY ANY OTHER MANNER PROVIDED BY APPLICABLE LAW. EACH PARTY HEREBY EXPRESSLY WAIVES
                                            ANY RIGHT IT MAY HAVE TO A JURY TRIAL IN ANY SUCH PROCEEDING.

 

		14.7	Counterparts.
                                            This Agreement may be executed in one or more counterparts, all of which will be considered
                                            one and the same agreement and will become effective when one or more counterparts have been
                                            signed by each of the Parties and delivered, in person or by facsimile or electronic image
                                            scan, receipt acknowledged to the other Party.

 

		14.8	Entirety
                                            of Agreement. This Agreement constitutes the entire Agreement between the Parties regarding
                                            the subject matter herein and supersedes any other existing representation, warranty, covenant,
                                            agreement, or similar assurance (whether direct or indirect, written or oral, or statutory,
                                            express or implied) of any Party regarding such subject matter (and there is no other representation,
                                            warranty, covenant, agreement, or similar assurance of any Party regarding such subject matter).
                                            No supplement, modification or amendment hereof will be binding unless expressed as such
                                            and executed in writing by each Party. Except to the extent as may otherwise be stated herein,
                                            no waiver of any term hereof will be binding unless expressed as such in a document executed
                                            by the Party making such waiver (and then only to the extent so expressed). No waiver of
                                            any term hereof will be a waiver of any other term hereof, whether or not similar, nor will
                                            any such waiver be a continuing waiver beyond its stated terms. Except to the extent as may
                                            otherwise be stated herein, failure to enforce strict compliance with any term hereof will
                                            not be a waiver of, or estoppel with respect to, any existing or subsequent failure to comply.

 

The
Parties are entering into this Agreement as of the Effective Date.

 

	NewAge,
                                            Inc.

    

    
	 	Kwikclick,
                                            Inc.

    

    

	 	 	 
	/s/
                                            Brent Willis 

    
	 	/s/
                                            Fred W. Cooper 

    

	Brent
                                            Willis

    
	 	Fred
                                            W. Cooper

    

	Chief
    Executive Officer	 	Chief
    Executive Officer

 

    	16cue-ex101_109.htm

 

Exhibit 10.1

Execution Version

 

OPEN MARKET SALE AGREEMENTSM

 

October 1, 2021

 

JEFFERIES LLC  

520 Madison Avenue 

New York, New York 10022

Ladies and Gentlemen: 

 

Cue Biopharma, Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and conditions stated herein, to issue and sell from time to time through Jefferies LLC, as sales agent and/or principal (the “Agent”), shares of the Company’s common stock, par value $0.001 per share (the “Common Shares”), having an aggregate offering price of up to $80,000,000 on the terms set forth in this agreement (this “Agreement”). 

 

Section 1.  DEFINITIONS

 

(a)Certain Definitions.  For purposes of this Agreement, capitalized terms used herein and not otherwise defined shall have the following respective meanings: “Agency Period” means the period commencing on the date of this Agreement and expiring on the earliest to occur of (x) the date on which the Agent shall have placed the Maximum Program Amount pursuant to this Agreement and (y) the date this Agreement is terminated pursuant to Section 7. 

 

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

 

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

“Exchange Act Regulations” means the rules and regulations of the Commission under the Exchange Act. 

“Floor Price” means the minimum price set by the Company in the applicable Issuance Notice below which the Agent shall not sell Shares during the applicable period set forth in the applicable Issuance Notice, which may be adjusted by the Company at any time during the period set forth in the Issuance Notice by delivering written notice of such change to the Agent and which in no event shall be less than $1.00 without the prior written consent of the Agent, which may be withheld in the Agent’s sole discretion. 

 

 

SM “Open Market Sale Agreement” is a service mark of Jefferies LLC

 

 

 

			
	
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“Issuance Amount” means the aggregate Sales Price of the Shares to be sold by the Agent pursuant to any Issuance Notice. 

“Issuance Notice” means a written notice delivered to the Agent by the Company in accordance with this Agreement in the form attached hereto as Exhibit A that is executed by its Chief Executive Officer, President or Chief Financial Officer. 

“Issuance Notice Date” means any Trading Day during the Agency Period that an Issuance Notice is delivered pursuant to Section 3(b)(i). 

 

“Issuance Price” means the Sales Price less the Selling Commission.

 

“Maximum Program Amount” means Common Shares with an aggregate Sales Price of the lesser of (a) the number or dollar amount of Common Shares registered under the effective Registration Statement (defined below) pursuant to which the offering is being made, (b) the number of authorized but unissued Common Shares (less Common Shares issuable upon exercise, conversion or exchange of any outstanding securities of the Company or otherwise reserved from the Company’s authorized capital stock), (c) the number or dollar amount of Common Shares permitted to be sold under Form S-3 (including General Instruction I.B.6 thereof, if applicable), or (d) the number or dollar amount of Common Shares for which the Company has filed a Prospectus (defined below). 

“Person” means an individual or a corporation, partnership, limited liability company, trust, incorporated or unincorporated association, joint venture, joint stock company, governmental authority or other entity of any kind. 

“Principal Market” means the Nasdaq Capital Market or such other national securities exchange on which the Common Shares, including any Shares, are then listed. 

“Sales Price” means the actual sale execution price of each Share placed by the Agent pursuant to this Agreement. 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder. 

“Securities Act Regulations” means the rules and regulations of the Commission under the Securities Act. 

“Selling Commission” means three percent (3%) of the gross proceeds of Shares sold pursuant to this Agreement, or as otherwise agreed between the Company and the Agent with respect to any Shares sold pursuant to this Agreement. 

 “Settlement Date” means the second business day following each Trading Day during the period set forth in the applicable Issuance Notice on which Shares are sold pursuant to this Agreement, when the Company shall deliver to the Agent the amount of Shares sold on such Trading Day and the Agent shall deliver to the Company the Issuance Price received on such sales.

 

			
	
 
	
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“Shares” means the Company’s Common Shares issued or issuable pursuant to this Agreement. 

 

“Trading Day” means any day on which the Principal Market is open for trading.

 

Section 2.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY  

The Company represents and warrants to, and agrees with, the Agent that as of (1) the date of this Agreement, (2) each Issuance Notice Date, (3) each Settlement Date, (4) each Triggering Event Date (as defined below) with respect to which the Company is required to deliver a certificate pursuant to Section 4(o) and (5) as of each Time of Sale (as defined below) (each of the times referenced above is referred to herein as a “Representation Date”), except as may be disclosed in the Prospectus (including any documents incorporated by reference therein and any supplements thereto) on or before a Representation Date, and unless such representation, warranty or agreement specifies a different time:   

(a)Registration Statement.  The Company has prepared and filed with the Commission a shelf registration statement on Form S-3 (File No. 333-239357) that contains a base prospectus. Such registration statement registers the issuance and sale by the Company of the Shares under the Securities Act.  The Company may file one or more additional registration statements from time to time that will contain a base prospectus and related prospectus or prospectus supplement, if applicable, with respect to the Shares, including pursuant to Rule 462(b) under the Securities Act (any such registration statement filed pursuant to Rule 462(b), a “Rule 462(b) Registration Statement”). Except where the context otherwise requires, such registration statement(s), including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, including all financial statements, exhibits and schedules thereto and all documents incorporated or deemed to be incorporated therein by reference pursuant to Item 12 of Form S-3 under the Securities Act as from time to time amended or supplemented, is herein referred to as the “Registration Statement,” and the prospectus constituting a part of such registration statement(s), together with any prospectus supplement filed with the Commission pursuant to Rule 424(b) under the Securities Act relating to a particular issuance of the Shares, including all documents incorporated or deemed to be incorporated therein by reference pursuant to Item 12 of Form S-3 under the Securities Act, in each case, as from time to time amended or supplemented, is referred to herein as the “Prospectus,” except that if any revised prospectus is provided to the Agent by the Company for use in connection with the offering of the Shares that is not required to be filed by the Company pursuant to Rule 424(b) under the Securities Act, the term “Prospectus” shall refer to such revised prospectus from and after the time it is first provided to the Agent for such use.  The Registration Statement at the time it originally became effective is herein called the “Original Registration Statement.”  As used in this Agreement, the terms “amendment” or “supplement” when applied to the Registration Statement or the Prospectus shall be deemed to include the filing by the Company with the Commission of any document under the Exchange Act after the date hereof that is or is deemed to be incorporated therein by reference. 

 

			
	
 
	
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All references in this Agreement to financial statements and schedules and other information which is “contained,” “included” or “stated” in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information which is or is deemed to be incorporated by reference in or

otherwise deemed under the Securities Act to be a part of or included in the Registration Statement or the Prospectus, as the case may be, as of any specified date; and all references in this Agreement to amendments or supplements to the Registration Statement or the Prospectus shall be deemed to mean and include, without limitation, the filing of any document under the Exchange Act which is or is deemed to be incorporated by reference in or otherwise deemed under the Securities Act to be a part of or included in the Registration Statement or the Prospectus, as the case may be, as of any specified date. The Company’s obligations under this Agreement to furnish, provide, deliver or make available (and all other similar references) copies of any report or statement shall be deemed satisfied if the same is filed with the Commission through its Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”). 

At the time the Registration Statement and each post-effective amendment thereto was declared or automatically became effective and at the time the Company’s most recent annual report on Form 10-K was filed with the Commission, if later, the Company met the then-applicable requirements for use of Form S-3 under the Securities Act.  During the Agency Period, each time the Company files an annual report on Form 10-K with the Commission, the Company will meet the then-applicable requirements for use of Form S-3 under the Securities Act.  

(b) Compliance with Registration Requirements.  The Original Registration Statement on Form S-3ASR became automatically effective upon the filing thereof. Each post-effective amendment to the Original Registration Statement and any Rule 462(b) Registration Statement has been declared effective by the Commission under the Securities Act.  The Company has complied to the Commission’s satisfaction with all requests of the Commission for additional or supplemental information with respect to the Registration Statement and any Rule 462(b) Registration Statement.  No stop order suspending the effectiveness of the Registration Statement or any Rule 462(b) Registration Statement is in effect and no proceedings for such purpose have been instituted or are pending or, to the knowledge of the Company, are contemplated or threatened by the Commission.  

The Prospectus when filed complied or will comply in all material respects with the Securities Act and, if filed with the Commission through EDGAR (except as may be permitted by Regulation S-T under the Securities Act), was identical to the copy thereof delivered to the Agent for use in connection with the issuance and sale of the Shares.  Each of the Registration Statement, any Rule 462(b) Registration Statement and any post-effective amendment thereto, at the time it became or becomes effective and at each Representation Date, complied and will comply in all material respects with the Securities Act and did not and will 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 not misleading.  As of the date of this Agreement, the Prospectus and any Free Writing Prospectus (as defined below) considered together (collectively, the “Time of Sale 

 

			
	
 
	
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Information”) did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  The Prospectus, as amended or supplemented, as of its date and at each Representation Date, did not and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  The representations and warranties set forth in the three immediately preceding sentences do not apply to statements in or omissions from the Registration Statement, any Rule 462(b) Registration Statement, or any post-effective amendment thereto, or the Prospectus, or any amendments or supplements thereto, made in reliance upon and in conformity with information relating to the Agent furnished to the Company in writing by the Agent expressly for use therein, it being understood and agreed that the only such information furnished by the Agent to the Company consists of the information described in Section 6  below.  There are no contracts or other documents required to be described in the Prospectus or to be filed as exhibits to the Registration Statement which have not been described or filed as required. The Registration Statement and the offer and sale of the Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act and comply in all material respects with said rule. 

(c)Ineligible Issuer Status. At the time of filing the Registration Statement and any post-effective amendment thereto, at the earliest time thereafter that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the Securities Act) of the Shares and at the date hereof, the Company was not and is not an “ineligible issuer,” as defined in Rule 405, without taking account of any determination by the Commission pursuant to paragraph (2) of the definition of such term in Rule 405. 

(d)Issuer Free Writing Prospectuses.  Any Free Writing Prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act.  Each Free Writing Prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or on behalf of or used or referred to by the Company complies or will comply in all material respects with the requirements of Rule 433 under the Securities Act including timely filing with the Commission or retention where required and legending.  Except for the Free Writing Prospectuses, if any, and electronic road shows, if any, furnished to the Agent before first use, the Company has not prepared, used or referred to, and will not, without the Agent’s prior consent, prepare, use or refer to, any Free Writing Prospectus. No Free Writing Prospectus conflicts or will conflict with the information contained in the Registration Statement or the Prospectus, including any document incorporated by reference therein, and any preliminary or other prospectus deemed to be a part thereof that has not been superseded or modified.  

(e)Independent Accountants.  The accountants who certified the financial statements and supporting schedules included or incorporated by reference in the Registration Statement and the Prospectus are independent public accountants as required by the Securities Act, the Securities Act Regulations, the Exchange Act, the Exchange Act Regulations and the Public Accounting Oversight Board. 

 

			
	
 
	
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(f)Financial Statements; Non-GAAP Financial Measures.  The financial statements included or incorporated by reference in the Registration Statement and the Prospectus, together with the related schedules and notes, present fairly, in all material respects, the financial position of the Company at the dates indicated and the statement of operations, stockholders’ equity and cash flows of the Company for the periods specified; said financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods involved except as may be set forth in the notes included or incorporated by reference and except that unaudited financial statements may not contain footnotes required by GAAP.  The supporting schedules, if any, included in the Registration Statement present fairly, in all material respects, in accordance with GAAP the information required to be stated therein.  The interactive data in eXtensible Business Reporting Language incorporated by reference in the Registration Statement and the Prospectus fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto. To the Company’s knowledge, no person who has been suspended or barred from being associated with a registered public accounting firm, or who has failed to comply with any sanction pursuant to Rule 5300 promulgated by the Public Company Accounting Oversight Board, has participated in or otherwise aided the preparation of, or audited, the financial statements, supporting schedules or other financial data filed with the Commission as a part of the Registration Statement and the Prospectus. 

(g)Incorporated Documents. The documents incorporated or deemed to be incorporated by reference in the Registration Statement and the Prospectus, at the time they were filed with the Commission, complied in all material respects with the requirements of the Exchange Act, as applicable, and, when read together with the other information in the Prospectus, do not 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.  

(h)Exchange Act Compliance.  The documents incorporated or deemed to be incorporated by reference in the Prospectus, at the time they were or hereafter are filed with the Commission, and any Free Writing Prospectus or amendment or supplement thereto complied and will comply in all material respects with the requirements of the Exchange Act, and, when read together with the other information in the Prospectus, at the time the Registration Statement and any amendments thereto become effective and at each Time of Sale, as the case may be, will not 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 fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

(i)Statistical and Market-Related Data.  Any statistical and market-related data included in the Registration Statement or the Prospectus are based on or derived from sources that the Company believes to be reliable and accurate and accurately reflect the materials upon which such data is based or from which it was derived.  

(j)  No Material Adverse Change in Business.  Except as otherwise stated therein, since the respective dates as of which information is given in the Registration Statement or the 

 

			
	
 
	
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Prospectus, (A) there has been no material adverse change in the condition, financial or otherwise, or in the business affairs or business prospects of the Company considered as one enterprise, whether or not arising in the ordinary course of business (a “Material Adverse Effect”), (B) there have been no transactions entered into by the Company, other than those in the ordinary course of business, which are material with respect to the Company considered as one enterprise, and (C) there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock. 

(k)Good Standing of the Company.  The Company has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware and has 

corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement and the Prospectus and to enter into and perform its obligations under this Agreement; and the Company is duly qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure so to qualify or to be in good standing would not result in a Material Adverse Effect.  

(l)Subsidiaries.  The Company does not own or control, directly or indirectly, any corporation, association or other entity other than Cue Biopharma Securities Corp., its wholly-owned subsidiary. 

(m)Capitalization.  The authorized, issued and outstanding shares of capital stock of the Company are as set forth in the Registration Statement and the Prospectus as of the dates referred to therein (except for subsequent issuances, if any, pursuant to this Agreement, pursuant to reservations, agreements, employee benefit plans or employee or director stock option, stock purchase or other equity incentive plans referred to in the Registration Statement and the Prospectus or pursuant to the conversion or exercise of warrants, convertible securities or options referred to in the Registration Statement and the Prospectus).  The outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable.  None of the outstanding shares of capital stock of the Company were issued in violation of the preemptive or other similar rights of any securityholder of the Company.  The outstanding options, warrants, preemptive rights, rights of first refusal and other rights to purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any capital stock of the Company or any of its subsidiary are as set forth in the Registration Statement and the Prospectus as of the dates referred to therein. The descriptions of the Company’s stock option, stock bonus and other stock plans or arrangements, and the options or other rights granted thereunder, set forth in the Registration Statement and the Prospectus accurately and fairly present, in all material respects, the information required to be shown with respect to such plans, arrangements, options and rights as of the dates referred to therein. 

(n)Accounting Controls and Disclosure Controls.  The Company maintains effective internal control over financial reporting (as defined under Rule 13a-15 and 15d-15 under the Exchange Act) and a system of internal accounting controls sufficient to provide reasonable 

 

			
	
 
	
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assurances that (A) transactions are executed in accordance with management’s general or specific authorization; (B) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s general or specific authorization; (D) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and (E) the interactive data in eXtensible Business Reporting Language incorporated by reference in the Registration Statement and the Prospectus fairly presents the information called for in all material respects and is prepared in accordance with the Commission’s rules and guidelines applicable thereto.  Since the end of the Company’s most recent audited fiscal year, the Company’s not aware of any (1) material weakness (as defined in Rule 1-02 of Regulation S-X of the Commission) in the Company’s internal control over financial reporting (whether or not remediated) and (2) change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.  The Company maintains an effective system of disclosure controls and procedures (as defined in Rule 13a-15 and Rule 15d-15 under the Exchange Act) that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and the interactive data in eXtensible Business Reporting Language included as an exhibit to the Registration Statement or incorporated by reference in the Registration Statement are recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and is accumulated and communicated to the Company’s management, including its principal executive officer or officers and principal financial officer or officers, as appropriate, to allow timely decisions regarding disclosure. The Company’s independent public accountants and the audit committee of the Company’s board of directors have been advised of all material weaknesses, if any, and significant deficiencies (as defined in Rule 1-01 of Regulation S-X of the Commission), if any, in the Company’s internal control over financial reporting and of all fraud, if any, whether or not material, involving management or other employees who have a role in the Company’s internal controls and financial reports, in each case that occurred or existing, or was first detected, at any time during the Company’s two consecutive fiscal years ended with and including the Company’s most recent fiscal year for which audited financial statements are included in the Registration Statement and the Prospectus or at any time subsequent thereto. 

(o)This Agreement. This Agreement has been duly authorized, executed and delivered by the Company. 

(p)Authorization of the Shares. The Shares to be sold by the Company pursuant to this Agreement have been duly authorized for issuance and sale pursuant to this Agreement and, when issued and delivered by the Company pursuant to this Agreement against payment of the consideration described herein, will be validly issued and fully paid and non-assessable; and the issuance of the Shares is not subject to the preemptive or other similar rights of any securityholder of the Company.  The Common Shares conform in all material respects to all statements relating thereto contained in the Registration Statement and the Prospectus and such description conforms in all material respects to the rights set forth in the instruments defining the same.  No holder of Shares will be subject to personal liability solely by reason of being such a holder. 

 

			
	
 
	
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(q)Registration Rights.  Except as have been waived or complied with, there are no persons with registration rights or other similar rights to have any securities registered for sale pursuant to the Registration Statement or otherwise registered for sale or sold by the Company under the Securities Act pursuant to this Agreement. 

(r)Absence of Violations, Defaults and Conflicts.  The Company is not (A) in violation of its charter, by-laws or similar organizational document, (B) in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Company is a party or by which it or any of them may be bound or to which any of the properties or assets of the Company or any subsidiary is subject (collectively, “Agreements and Instruments”), except for such violations or defaults that would not, singly or in the aggregate, result in a Material Adverse Effect, or (C) in violation of any law, statute, rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental body, regulatory body, administrative agency or other authority, body or agency having jurisdiction over the Company or any of its respective properties, assets or operations (each, a “Governmental Entity”), except for such violations that would not, singly or in the aggregate, result in a Material Adverse Effect.  The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated herein and in the Registration Statement (including the issuance and sale of the Shares and the use of the proceeds from the sale of the Shares as described in the Prospectus under the caption “Use of Proceeds”) and compliance by the Company with its obligations hereunder have been duly authorized by all necessary corporate action and do not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default or Repayment Event (as defined below) under, or result in the creation or imposition of any lien, charge or encumbrance upon any properties or assets of the Company or any subsidiary pursuant to, the Agreements and Instruments (except for such conflicts, breaches, defaults or Repayment Events or liens, charges or encumbrances that would not, singly or in the aggregate, result in a Material Adverse Effect), nor will such action result in any violation of (i) the provisions of the charter, by-laws or similar organizational document of the Company or (ii) any law, statute, rule, regulation, judgment, order, writ or decree of any Governmental Entity, except for such violations described in (ii) that would not, singly or in the aggregate, result in a Material Adverse Effect.  As used herein, a “Repayment Event” means any event or condition which gives the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company. 

(s)Absence of Labor Dispute.  No labor dispute with the employees of the Company exists or, to the knowledge of the Company, is imminent, and the Company is not aware of any existing or imminent labor disturbance by the employees of any of its or any subsidiary’s principal suppliers, manufacturers, customers or contractors, which, in either case, would result in a Material Adverse Effect. 

(t)Absence of Proceedings.  There is no action, suit, proceeding, inquiry or investigation before or brought by any Governmental Entity now pending or, to the knowledge of the Company, threatened, against or affecting the Company, which could reasonably be expected 

 

			
	
 
	
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to result in a Material Adverse Effect, or which could reasonably be expected to materially and adversely affect their respective properties or assets or the consummation of the transactions contemplated in this Agreement or the performance by the Company of its obligations hereunder; and the aggregate of all pending legal or governmental proceedings to which the Company or any such subsidiary is a party or of which any of their respective properties or assets is the subject which are not described in the Registration Statement and the Prospectus, including ordinary routine litigation incidental to the business, could not reasonably be expected to result in a Material Adverse Effect. 

(u)Accuracy of Descriptions and Exhibits.  The information included or incorporated by reference in the Registration Statement and the Prospectus under the captions “Risk Factors—Risks Related to Intellectual Property and Other Legal Matters,” “Risk Factors—Risks Related to Government Regulation,” “Business—Our Intellectual Property,” “Business—Government Regulation and Product Approval” and “Description of Common Stock We May Offer” and the information in the Registration Statement under Items 14 and 15, in each case to the extent that it constitutes matters of law, summaries of legal matters, summaries of provisions of the Company’s charter or bylaws or any other instruments or agreements, summaries of legal proceedings, or legal conclusions, is correct in all material respects; all descriptions in the Registration Statement and the Prospectus of any other agreement or instrument to which the Company is a party or organizational document of the Company are accurate in all material respects; and there are no franchises, contracts, indentures, mortgages, deeds of trust, loan or credit agreements, bonds, notes, debentures, evidences of indebtedness, leases or other instruments, agreements or documents required to be described or referred to in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement which have not been so described and filed as required. 

(v)Absence of Further Requirements.  Except where the absence thereof would not result in a Material Adverse Effect, no filing with, or authorization, approval, consent, license, order, registration, qualification or decree of, any Governmental Entity is necessary or required for the performance by the Company of its obligations hereunder, in connection with the offering, issuance or sale of the Shares hereunder or the consummation of the transactions contemplated by this Agreement, except such as have been already obtained or as may be required under the Securities Act, the Securities Act Regulations, the rules of the Nasdaq Stock Market LLC, state securities laws or the rules of Financial Industry Regulatory Authority, Inc. (“FINRA”).   

(w)Nasdaq Listing. The Common Shares of the Company are registered pursuant to Section 12(b) of the Exchange Act and are listed on the Nasdaq Capital Market under the ticker symbol “CUE.” The Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Shares under the Exchange Act or delisting the Common Shares from the Nasdaq Capital Market nor has the Company received any notice that it is currently not in compliance with the listing or maintenance requirements of the Nasdaq Capital Market.  The Company believes that it is, and it will in the foreseeable future continue to be, in material compliance with all such listing and maintenance requirements.  A registration statement relating to the Common Shares on Form 8-A or other applicable form under the Exchange Act is effective. 

 

			
	
 
	
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(x)Possession of Licenses and Permits.  The Company possesses such permits, licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate Governmental Entities necessary to conduct the business now operated by them, including without limitation the United States Food and Drug Administration (“FDA”) or any other federal, state or foreign agencies or bodies engaged in the regulation of pharmaceuticals, animal or human clinical studies or biohazardous substances, except where the failure so to possess would not, singly or in the aggregate, result in a Material Adverse Effect.  The Company is in compliance with the terms and conditions of all Governmental Licenses, except where the failure so to comply would not, singly or in the aggregate, result in a Material Adverse Effect.  All of the Governmental Licenses are valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, singly or in the aggregate, result in a Material Adverse Effect.  The Company has not received any notice of proceedings relating to the revocation or modification of any Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to result in a Material Adverse Effect. 

(y)Compliance with Food and Drug Laws. Except as described in the Registration Statement and the Prospectus, the conduct of the preclinical testing and clinical trials and manufacture of the products of the Company is in compliance, in all material respects, with all laws, rules and regulations applicable to such activities, including without limitation applicable good laboratory practices, good clinical practices and good manufacturing practices. The descriptions of the results of such tests and trials contained in the Registration Statement and the Prospectus are accurate in all material respects. The Company has not received a warning letter or clinical hold notice from the FDA or any non-U.S. counterpart of any of the foregoing, or any untitled letter or other correspondence or notice from the FDA or any other governmental authority or agency or any institutional or ethical review board alleging or asserting noncompliance with any law, rule or regulation applicable in any jurisdiction. The Company has not, either voluntarily or involuntarily, initiated, conducted or issued, or caused to be initiated, conducted or issued, any recall, field correction, market withdrawal or replacement, safety alert, warning, “dear doctor” letter, investigator notice, or other notice or action relating to an alleged or potential lack of safety or efficacy of any product or potential product of the Company, any alleged defect of any product of the Company, or any violation of any material applicable law, rule, regulation or any clinical trial or marketing license, approval, permit or authorization for any product of the Company. The Company has not received any written notices, correspondence or other communication from the FDA or other governmental regulatory agency or subdivision thereof, or any institutional or ethical review boards, asserting non-compliance with any applicable statutes, rules, regulations, orders, or other laws, or requiring or requesting the termination, suspension or modification of any preclinical or clinical studies, tests, investigations, or trials conducted by, or on behalf of, the Company or in which the Company has participated. 

(z)Title to Property.  Except where the failure thereof would not result in a Material Adverse Effect, to the Company’s knowledge, the Company has good and marketable title to any real property owned by them and good title to any other properties owned by them, in each case, free and clear of all mortgages, pledges, liens, security interests, claims, restrictions or encumbrances of any kind except such as do not, singly or in the aggregate, materially affect the 

 

			
	
 
	
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value of such property and do not interfere with the use made and proposed to be made of such property by the Company; and all of the leases and subleases material to the business of the Company, considered as one enterprise, and under which the Company holds properties described in the Registration Statement or the Prospectus, are in full force and effect, and neither the Company nor any such subsidiary has any notice of any material claim of any sort that has been asserted by anyone adverse to the rights of the Company or any subsidiary under any of the leases or subleases mentioned above, or affecting or questioning the rights of the Company or such subsidiary to the continued possession of the leased or subleased premises under any such lease or sublease. 

(aa)Possession of Intellectual Property.  The Company owns and possesses or have valid and enforceable licenses to use, all patents, patent rights, patent applications, licenses, copyrights, inventions, know how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade names, service names, software, internet addresses, domain names and other intellectual property (collectively, “Intellectual Property”) that is described in the Registration Statement or the Prospectus or that is necessary for the conduct of their respective businesses as currently conducted, as proposed to be conducted and as described in the Registration Statement and the Prospectus; the Company has not received any notice or is otherwise aware of any infringement of or conflict with rights of others with respect to any Intellectual Property or of any facts or circumstances which would render any Intellectual Property invalid or inadequate to protect the interests of the Company therein; there are no third parties who have or, to the knowledge of the Company, will be able to establish rights to any Intellectual Property of the Company, except for, and to the extent of, the ownership rights of the owners of the Intellectual Property which the Registration Statement and the Prospectus disclose is licensed to the Company; there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others challenging the Company’s rights in or to any such Intellectual Property, or challenging the validity, enforceability or scope of any such Intellectual Property, or asserting that the Company infringes or otherwise violates, or would, upon the commercialization of any product or service described in the Registration Statement or the Prospectus, infringe or violate, any Intellectual Property of others, and the Company is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or claim; the Company have complied with the terms of each agreement pursuant to which any Intellectual Property has been licensed to the Company, all such agreements are in full force and effect, and no event or condition has occurred or exists that gives or, with notice or passage of time or both, would give any person the right to terminate any such agreement; and there is no patent or patent application that contains claims that interfere with the issued or pending claims of any such Intellectual Property of the Company or that challenges the validity, enforceability or scope of any such Intellectual Property. 

(bb)Environmental Laws.  Except as described in the Registration Statement and the Prospectus and except as would not, individually or in the aggregate, result in a Material Adverse Effect, (A) the Company is not in violation of any federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or protection of human health, the environment (including, without limitation, 

 

			
	
 
	
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ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”), (B) the Company has all permits, authorizations and approvals required under any applicable Environmental Laws and are each in compliance with their requirements, (C) there are no pending or threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, Liens, notices of noncompliance or violation, investigation or proceedings relating to any Environmental Law against the Company and (D) there are no events or circumstances that might reasonably be expected to form the basis of an order for clean-up or remediation, or an action, suit or proceeding by any private party or governmental body or agency, against or affecting the Company relating to Hazardous Materials or any Environmental Laws. 

(cc)Cybersecurity. (i)(A) There has been no security breach or other compromise of or relating to any of the Company’s information technology and computer systems, networks, hardware, software, data (including the data of their respective customers, employees, suppliers, vendors and any third party data maintained by or on behalf of them), equipment or technology (collectively, “IT Systems and Data”) and (B) the Company has not been notified of, and has no knowledge of any event or condition that would reasonably be expected to result in, any security breach or other compromise to their IT Systems and Data, except as would not, in the case of this clause (i), individually or in the aggregate, have a Material Adverse Effect; (ii) the Company is presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification, except as would not, in the case of this clause (ii), individually or in the aggregate, have a Material Adverse Effect; and (iii) the Company has implemented backup and disaster recovery technology the Company reasonably believes are consistent with industry standards and practices. 

(dd)Compliance with the Sarbanes-Oxley Act.  There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith, including Section 402 related to loans and Sections 302 and 906 related to certifications.   

(ee)Payment of Taxes.  The Company has filed all foreign, federal, state and local tax returns that are required to be filed or have obtained extensions thereof, except where the failure so to file would not, individually or in the aggregate, result in a Material Adverse Effect, and have paid all taxes (including, without limitation, any estimated taxes) required to be paid and any other assessment, fine or penalty, to the extent that any of the foregoing is due and payable, except for any such tax, assessment, fine or penalty that is currently being contested in good faith by appropriate actions and except for such taxes, assessments, fines or penalties the nonpayment of which would not, individually or in the aggregate, result in a Material Adverse Effect. 

 

			
	
 
	
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(ff)ERISA Compliance.  None of the following events has occurred or exists: (i) a failure to fulfill the obligations, if any, under the minimum funding standards of Section 302 of the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder (“ERISA”) with respect to a Plan (as defined below) determined without regard to any waiver of such obligations or extension of any amortization period; (ii) an audit or investigation by the Internal Revenue Service, the U.S. Department of Labor, the Pension Benefit Guaranty Corporation or any other federal, state or foreign governmental or regulatory agency with respect to the employment or compensation of employees by the Company that might reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect; or (iii) any breach of any contractual obligation, or any violation of law or applicable qualification standards, with respect to the employment or compensation of employees by the Company that might reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.  None of the following events has occurred or is reasonably likely to occur: (i) a material increase in the aggregate amount of contributions required to be made to all Plans in the current fiscal year of the Company compared to the amount of such contributions made in the Company’s most recently completed fiscal year; (ii) a material increase in the “accumulated post-retirement benefit obligations” (within the meaning of Statement of Financial Accounting Standards 106) of the Company compared to the amount of such obligations in the Company’s most recently completed fiscal year; (iii) any event or condition giving rise to a liability under Title IV of ERISA that might reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect; or (iv) the filing of a claim by one or more employees or former employees of the Company related to its or their employment that might reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.  For purposes of this paragraph and the definition of ERISA, the term “Plan” means a plan (within the meaning of Section 3(3) of ERISA) with respect to which the Company may have any liability. 

(gg)Insurance.  The Company is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged; all policies of insurance and any fidelity or surety bonds insuring the Company its businesses, assets, employees, officers and directors are in full force and effect; the Company is in compliance with the terms of such policies and instruments in all material respects; there are no claims by the Company under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause; the Company has not been refused any insurance coverage sought or applied for; and the Company has no reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers at a cost that would not, individually or in the aggregate, result in a Material Adverse Effect. 

(hh)Investment Company Act.  The Company is not required, and upon the issuance and sale of the Shares as herein contemplated and the application of the net proceeds therefrom as described in the Registration Statement and the Prospectus will not be required, to register as an “investment company” within the meaning of the Investment Company Act of 1940, as amended (the “1940 Act”). 

 

			
	
 
	
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(ii)Absence of Manipulation.  Neither the Company nor any affiliate of the Company has taken, nor will the Company or any affiliate take, directly or indirectly, any action which is designed, or would reasonably be expected, to cause or result in, or which constitutes, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Shares or to result in a violation of Regulation M under the Exchange Act. 

(jj)No Unlawful Payments.  Neither the Company nor any of its directors, officers, or employees, nor, to the knowledge of the Company,  any agent, affiliate or other person associated with or acting on behalf of the Company is aware of or has taken any action, directly or indirectly, that has resulted or would result in (i) the use of any funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) the making or taking of an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment or benefit to any foreign or domestic government or regulatory official or employee, including of any government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office; (iii) a violation by any such person of any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom, or any other applicable anti-bribery or anti-corruption laws; or (iv) the making, offering, requesting or taking of, or the agreement to take, an act in furtherance of any unlawful bribe or other unlawful benefit, including, without limitation, any rebate, payoff, influence payment, kickback or other unlawful or improper payment or benefit.  The Company has instituted, maintain and enforce, and will continue to maintain and enforce policies and procedures designed to promote and ensure compliance with all applicable anti-bribery and anti-corruption laws. 

(kk)Compliance with Money Laundering Laws.  The operations of the Company are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements, including those of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the applicable money laundering statutes of all applicable jurisdictions,  the rules and regulations thereunder and any related or similar rules, regulations or guidelines issued, administered or enforced by any governmental or regulatory agency (collectively, the “Anti-Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental or regulatory agency, authority or body or any arbitrator involving the Company with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company is, threatened. 

(ll)No Conflicts with Sanction Laws.  Neither the Company nor any of its directors, officers or employees, nor, to the knowledge of the Company, any agent, employee or affiliate or other person associated with or acting on behalf of the Company is currently the subject or the target of any sanctions administered or enforced by the U.S. Government, (including, without limitation,  OFAC or the U.S. Department of State and including, without limitation, the designation as a “specially designated national” or “blocked person”), the UNSC, the European Union, Her Majesty’s Treasury (“HMT”),  or other relevant sanctions authority (collectively, 

 

			
	
 
	
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“Sanctions”), nor is the Company located, organized or resident in a country or territory that is the subject or the target of Sanctions, including, without limitation, Cuba, Burma (Myanmar), Iran, North Korea, Sudan and Syria (each, a “Sanctioned Country”); and the Company will not directly or indirectly use any of the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person that, at the time of such funding or facilitation, is the subject or the target of any Sanctions, (ii) to fund or facilitate any activities of or any business in any Sanctioned Country or (iii) in any other manner that could result in a violation by any person (including any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of any Sanctions.    For the past five years, the Company have not knowingly engaged in, are not now knowingly engaged in, and will not engage in, any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of any Sanctions or with any Sanctioned Country. 

(mm)Lending and Other Relationship. Except as disclosed in the Registration Statement and the Prospectus, (i) the Company does not have any lending or similar relationship with the Agent or any bank or other lending institution affiliated with the Agent; (ii) the Company will not, directly or indirectly, use any of the proceeds from the sale of the Shares by the Company hereunder to reduce or retire the balance of any loan or credit facility extended by the Agent or any of its “affiliates” or “associated persons” (as such terms are used in FINRA Rule 5121) or otherwise direct any such proceeds to the Agent or any of its “affiliates” or “associated persons” (as so defined); and (iii) there are and have been no transactions, arrangements or dealings between the Company, on one hand, and the Agent or any of its “affiliates” or “associated persons” (as so defined), on the other hand, that, under FINRA Rule 5110 or 5121, must be disclosed in a submission to FINRA in connection with the offering of the Shares contemplated hereby or disclosed in the Registration Statement or Prospectus. 

(nn)Immunity from Jurisdiction.  Neither the Company nor any of its properties or assets has any immunity from the jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) under the laws of Delaware.  

(oo)No Commissions.  The Company is not a party to any contract, agreement or understanding with any person (other than as contemplated by this Agreement) that would give rise to a valid claim against the Company or the Agent for a brokerage commission, finder’s fee or like payment in connection with the offering and sale of the Shares. 

(pp)Related Party Transactions.  There are no business relationships or related party transactions involving the Company or, to the knowledge of the Company, any other person that are required to be described in the Registration Statement or the Prospectus that have not been described as required.        

(qq)FINRA Matters.  All of the information provided to the Agent or to counsel for the Agent by the Company, and, to the Company’s knowledge, its counsel, its officers and directors and the holders of any securities (debt or equity) or options to acquire any securities of the 

 

			
	
 
	
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Company in connection with the offering of the Shares is true and correct as of the date it is provided to the Agent or to counsel for the Agent and is compliant in all material respects with FINRA’s rules in effect at the time it is provided to the Agent or to counsel for the Agent. As of the date hereof, the Company meets the definition of the term “experienced issuer,” as defined in FINRA Rule 5110(j)(6).   

(rr)Dividend Restrictions.  Except as disclosed in the Registration Statement or the Prospectus, no subsidiary of the Company is prohibited or restricted, directly or indirectly, from paying dividends to the Company, or from making any other distribution with respect to such subsidiary’s equity securities or from repaying to the Company or any other subsidiary of the Company any amounts that may from time to time become due under any loans or advances to such subsidiary from the Company or from transferring any property or assets to the Company or to any other subsidiary. 

(ss)Duties, Transfer Taxes, Etc.  No stamp or other issuance or transfer taxes or duties and no capital gains, income, withholding or other taxes are payable by the Agent in the United States or any political subdivision or taxing authority thereof or therein in connection with the execution, delivery or performance of this Agreement by the Company or the sale and delivery by the Company of the Shares. 

(tt)Compliance with Data Privacy Laws. The Company and its subsidiary are, and at all prior times were, in material compliance with all applicable state and federal data privacy and security laws and regulations, including without limitation the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) as amended by the Health Information Technology for Economic and Clinical Health Act of 2009 (“HITECH”), and the Company and its subsidiary have taken commercially reasonable actions to prepare to comply with, and since May 25, 2018, have been and currently are in compliance with, the European Union General Data Protection Regulation (“GDPR”) (EU 2016/679) (collectively, the “Privacy Laws”). To ensure compliance with the Privacy Laws, the Company and its subsidiary have in place, comply with, and take appropriate steps reasonably designed to ensure compliance in all material respects with their policies and procedures relating to data privacy and security and the collection, storage, use, disclosure, handling, and analysis of Personal Data (as defined below) (the “Policies”). The Company and its subsidiary have at all times made all disclosures to users or customers required by applicable laws and regulatory rules or requirements, and none of such disclosures made or contained in any Policy have, to the knowledge of the Company, been inaccurate or in violation of any applicable laws and regulatory rules or requirements in any material respect. The Company further certifies that neither it nor any subsidiary: (i) has received notice of any actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws, and has no knowledge of any event or condition that would reasonably be expected to result in any such notice; (ii) is currently conducting or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any Privacy Law; or (iii) is a party to any order, decree, or agreement that imposes any obligation or liability under any Privacy Law. “Personal Data” means (i) a natural person’s name, street address, telephone number, e-mail address, photograph, social security number or tax identification number, driver’s license number, passport number, credit card number, bank information, or customer or account number; (ii) any information which would 

 

			
	
 
	
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qualify as “personally identifying information” under the Federal Trade Commission Act, as amended; (iii) “personal data” as defined by GDPR and (iv) any information which would qualify as “protected health information” under HIPAA, as amended by HITECH. 

(uu)Other Underwriting Agreements. The Company is not a party to any agreement with an agent or underwriter for any other “at the market” or continuous equity transaction.   

Any certificate signed by any officer or representative of the Company or its subsidiary and delivered to the Agent or counsel for the Agent in connection with an issuance of Shares shall be deemed a representation and warranty by the Company to the Agent as to the matters covered thereby as of the date or dates indicated in such certificate. 

The Company acknowledges that the Agent and, for purposes of the opinions to be delivered pursuant to Section 4(p) hereof, counsel to the Company and counsel to the Agent, will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents to such reliance. 

 

Section 3.  ISSUANCE AND SALE OF COMMON SHARES 

(a)Sale of Securities.  On the basis of the representations, warranties and agreements herein contained, but subject to the terms and conditions herein set forth, the Company and the Agent agree that the Company may from time to time seek to sell Shares through the Agent, acting as sales agent, or directly to the Agent, acting as principal, as follows, with an aggregate Sales Price of up to the Maximum Program Amount, based on and in accordance with Issuance Notices as the Company may deliver, during the Agency Period.   

(b)Mechanics of Issuances.  

(i)Issuance Notice.  Upon the terms and subject to the conditions set forth herein, on any Trading Day during the Agency Period on which the conditions set forth in Section 5(a) and Section 5(b) shall have been satisfied, the Company may exercise its right to request an issuance of Shares by delivering to the Agent an Issuance Notice; provided, however, that (A) in no event may the Company deliver an Issuance Notice to the extent that the sum of (x) the aggregate Sales Price of the requested Issuance Amount, plus (y) the aggregate Sales Price of all Shares issued under all previous Issuance Notices effected pursuant to this Agreement, would exceed the Maximum Program Amount; and (B) prior to delivery of any Issuance Notice, the period set forth for any previous Issuance Notice shall have expired or been terminated. An Issuance Notice shall be considered delivered on the Trading Day that it is received by e-mail by the notice parties for the Agent set forth in Schedule A hereto and confirmed by the Company by telephone to the notice parties for the Agent set forth in Schedule A hereto (including a voicemail message to the notice parties for the Agent so identified), with the understanding that, with adequate prior written notice, the Agent may modify the list of such persons from time to time.  

(ii)Agent Efforts.  Upon the terms and subject to the conditions set forth in this Agreement, upon the receipt of an Issuance Notice, the Agent will use its commercially reasonable efforts consistent with its normal sales and trading practices to place the Shares with respect to 

 

			
	
 
	
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which the Agent has agreed to act as sales agent, subject to, and in accordance with the information specified in, the Issuance Notice, unless the sale of the Shares described therein has been suspended, cancelled or otherwise terminated in accordance with the terms of this Agreement.  For the avoidance of doubt, the parties to this Agreement may modify an Issuance Notice at any time provided they both agree in writing to any such modification.   

(iii)Method of Offer and Sale.  The Shares may be offered and sold (A) in privately negotiated transactions with the consent of the Company; (B) as block transactions; or (C) by any other method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the Principal Market or sales made into any other existing trading market of the Common Shares.  Nothing in this Agreement shall be deemed to require either party to agree to the method of offer and sale specified in the preceding sentence (except as specified in clause (A) of the preceding sentence), and (except as specified in clauses (A) and (B) of the preceding sentence) the method of placement of any Shares by the Agent shall be at the Agent’s discretion. 

(iv)Confirmation to the Company.  If acting as sales agent hereunder, the Agent will provide written confirmation to the Company no later than the opening of the Trading Day next following the Trading Day on which it has placed Shares hereunder setting forth the number of Shares sold on such Trading Day, the corresponding Sales Price and the Issuance Price payable to the Company in respect thereof.   

(v)Settlement.  Each issuance of Shares will be settled on the applicable Settlement Date for such issuance of Shares and, subject to the provisions of Section 5, on or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Shares being sold by crediting the Agent or its designee’s account at The Depository Trust Company through its Deposit/Withdrawal At Custodian (DWAC) System, or by such other means of delivery as may be mutually agreed upon by the parties hereto and, upon receipt of such Shares, which in all cases shall be freely tradable, transferable, registered shares in good deliverable form, the Agent will deliver, by wire transfer of immediately available funds, the related aggregate Issuance Price in same day funds delivered to an account designated by the Company prior to the Settlement Date.  The Company may sell Shares to the Agent as principal at a price agreed upon at each relevant time Shares are sold pursuant to this Agreement (each, a “Time of Sale”).    

(vi) Suspension or Termination of Sales.  Consistent with standard market settlement practices, the Company or the Agent may, upon notice to the other party hereto in writing or by telephone (confirmed immediately by verifiable email), suspend any sale of Shares, and the period set forth in an Issuance Notice shall immediately terminate; provided, however, that (A) such suspension and termination shall not affect or impair either party’s obligations with respect to any Shares placed or sold hereunder prior to the receipt of such notice; (B) if the Company suspends or terminates any sale of Shares after the Agent confirms such sale to the Company, the Company shall still be obligated to comply with Section 3(b)(v) with respect to such Shares; and (C) if the Company defaults in its obligation to deliver Shares on a Settlement Date, the Company agrees that it will hold the Agent harmless against any loss, claim, damage or expense (including, without limitation, penalties, interest and reasonable legal fees and expenses), as incurred, arising out of or 

 

			
	
 
	
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in connection with such default by the Company. The parties hereto acknowledge and agree that, in performing its obligations under this Agreement, the Agent may borrow Common Shares from stock lenders in the event that the Company has not delivered Shares to settle sales as required by subsection (v) above, and may use the Shares to settle or close out such borrowings.  The Company agrees that no such notice shall be effective against the Agent unless it is made to the notice parties set forth in Schedule A attached hereto or identified in writing by the Agent pursuant to Section 3(b)(i).   

(vii)No Guarantee of Placement, Etc.  The Company acknowledges and agrees that (A) there can be no assurance that the Agent will be successful in placing Shares; (B) the Agent will incur no liability or obligation to the Company or any other Person if it does not sell Shares; and (C) the Agent shall be under no obligation to purchase Shares on a principal basis pursuant to this Agreement, except as otherwise specifically agreed by the Agent and the Company. 

(viii)Material Non-Public Information.  Notwithstanding any other provision of this Agreement, the Company and the Agent agree that the Company shall not deliver any Issuance Notice to the Agent, and the Agent shall not be obligated to place any Shares, during any period in which the Company is in possession of material non-public information. 

 

(c)Fees.  As compensation for services rendered, the Company shall pay to the Agent, on the applicable Settlement Date, the Selling Commission for the applicable Issuance Amount (including with respect to any suspended or terminated sale pursuant to Section 3(b)(vi)) by the Agent deducting the Selling Commission from the applicable Issuance Amount.  For the avoidance of doubt, the Company shall not be required to pay to the Agent any Selling Commission with respect to any Issuance Notice, except to the extent Shares are placed pursuant thereto. 

(d)Expenses.  The Company agrees to pay all costs, fees and expenses incurred in connection with the performance of its obligations hereunder and in connection with the transactions contemplated hereby, including without limitation (i) all expenses incident to the issuance and delivery of the Shares (including all printing and engraving costs); (ii) all fees and expenses of the registrar and transfer agent of the Shares; (iii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Shares; (iv) all fees and expenses of the Company’s counsel, independent public or certified public accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates of experts), the Prospectus, any Free Writing Prospectus prepared by or on behalf of, used by, or referred to by the Company, and all amendments and supplements thereto, and this Agreement; (vi) all filing fees, attorneys’ fees and expenses incurred by the Company or the Agent in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Shares for offer and sale under the state securities or blue sky laws or the provincial securities laws of Canada, and, if requested by the Agent, preparing and printing a “Blue Sky Survey” or memorandum and a “Canadian wrapper,” 

 

			
	
 
	
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and any supplements thereto, advising the Agent of such qualifications, registrations, determinations and exemptions; (vii) the reasonable and documented fees and disbursements of the Agent’s counsel, including the reasonable and documented fees and expenses of counsel for the Agent in connection with, FINRA review, if any, and approval of the Agent’s participation in the offering and distribution of the Shares; (viii) the filing fees incident to FINRA review, if any; (ix) the costs and expenses of the Company relating to investor presentations on any “road show” undertaken in connection with the marketing of the offering of the Shares, including, without limitation, expenses associated with the preparation or dissemination of any electronic road show, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, travel and lodging expenses of the representatives, employees and officers of the Company and of the Agent and any such consultants, and the cost of any aircraft chartered in connection with the road show; and (x) the fees and expenses associated with listing the Shares on the Principal Market. The fees and disbursements of Agent’s counsel pursuant to subsections (vi) and (vii) of the preceding sentence shall not exceed (A) $50,000 in connection with the execution of this Agreement and (B) $15,000 in connection with each Triggering Event Date (as defined below) on which the Company is required to provide a certificate pursuant to Section 4(o). 

Section 4.  ADDITIONAL COVENANTS

The Company covenants and agrees with the Agent as follows, in addition to any other covenants and agreements made elsewhere in this Agreement: 

(a)Exchange Act Compliance.  During the Agency Period, the Company shall (i) file, on a timely basis, with the Commission all reports and documents required to be filed under Section 13, 14 or 15 of the Exchange Act in the manner and within the time periods required by the Exchange Act; and (ii) either (A) include in its quarterly reports on Form 10-Q and its annual reports on Form 10-K, a summary detailing, for the relevant reporting period, (1) the number of Shares sold through the Agent pursuant to this Agreement and (2) the net proceeds received by the Company from such sales or (B) prepare a prospectus supplement containing, or include in such other filing permitted by the Securities Act or Exchange Act (each an “Interim Prospectus Supplement”), such summary information and, at least once a quarter and subject to this Section 4, file such Interim Prospectus Supplement pursuant to Rule 424(b) under the Securities Act (and within the time periods required by Rule 424(b) and Rule 430B under the Securities Act). 

(b)Securities Act Compliance.  After the date of this Agreement, the Company shall promptly advise the Agent in writing (i) of the receipt of any comments of, or requests for additional or supplemental information from, the Commission relating to the Registration Statement or Prospectus; (ii) of the time and date of any filing of any post-effective amendment to the Registration Statement, any Rule 462(b) Registration Statement or any amendment or supplement to the Prospectus, or any Free Writing Prospectus; (iii) of the time and date that any post-effective amendment to the Registration Statement or any Rule 462(b) Registration Statement becomes effective; and (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto, any Rule 462(b) Registration Statement or any amendment or supplement to the Prospectus or of any order 

 

			
	
 
	
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preventing or suspending the use of any Free Writing Prospectus or the Prospectus, or of any proceedings to remove, suspend or terminate from listing or quotation the Common Shares from any securities exchange upon which they are listed for trading or included or designated for quotation, or of the threatening or initiation of any proceedings for any of such purposes.  If the Commission shall enter any such stop order at any time, the Company will use its commercially reasonable efforts to obtain the lifting of such order as soon as reasonably practicable. Additionally, the Company agrees that it shall comply with the provisions of Rule 424(b) and Rule 433, as applicable, under the Securities Act and will use its commercially reasonable efforts to confirm that any filings made by the Company under such Rule 424(b) or Rule 433 were filed in a timely manner with the Commission.   

(c)Amendments and Supplements to the Prospectus and Other Securities Act Matters. If any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Prospectus so that the Prospectus does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances when the Prospectus is delivered to a purchaser, not misleading, or if in the opinion of the Agent or counsel for the Agent it is otherwise necessary to amend or supplement the Prospectus to comply with applicable law, including the Securities Act, the Company agrees (subject to Section 4(d) and 4(f)) to promptly prepare, file with the Commission and furnish at its own expense to the Agent, amendments or supplements to the Prospectus (including by filing a document incorporated by reference therein) so that the statements in the Prospectus as so amended or supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances when the Prospectus is delivered to a purchaser, not be misleading or so that the Prospectus, as amended or supplemented, will comply with applicable law including the Securities Act.  Neither the Agent’s consent to, or delivery of, any such amendment or supplement shall constitute a waiver of any of the Company’s obligations under Sections 4(d) and 4(f). Notwithstanding the foregoing, the Company shall not be required to file such amendment or supplement if there is no pending Issuance Notice and the Company believes that it is in its best interest not to file such amendment or supplement; however, the Company agrees not to provide an Issuance Notice or otherwise sell under this Agreement until such amendment or supplement is filed. 

(d)Agent’s Review of Proposed Amendments and Supplements.  Prior to amending or supplementing the Registration Statement (including any registration statement filed under Rule 462(b) under the Securities Act, but excluding (i) the filing under the Exchange Act of documents incorporated by reference into the Registration Statement that either (A) do not name the Agent and do not relate to the transactions contemplated by this Agreement or (B) include disclosure naming the Agent and regarding the transactions contemplated by this Agreement that is limited to disclosure of periodic sales pursuant to this Agreement, and (ii) amendments or supplements that do not name the Agent and do not relate to the transactions contemplated by this Agreement) or the Prospectus (excluding any amendment or supplement through incorporation of any report filed under the Exchange Act), the Company shall furnish to the Agent for review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of each such proposed amendment or supplement, and the Company shall not file or use any such proposed amendment or supplement without the Agent’s prior consent, which shall not be unreasonably withheld, 

 

			
	
 
	
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conditioned or delayed.  The Company shall file with the Commission within the applicable period specified in Rule 424(b) under the Securities Act any prospectus required to be filed pursuant to such Rule. 

(e)Use of Free Writing Prospectus. Neither the Company nor the Agent has prepared, used, referred to or distributed, or will prepare, use, refer to or distribute, without the other party’s prior written consent, any “written communication” that constitutes a “free writing prospectus” as such terms are defined in Rule 405 under the Securities Act with respect to the offering contemplated by this Agreement (any such free writing prospectus being referred to herein as a “Free Writing Prospectus”). 

(f)Free Writing Prospectuses.  The Company shall furnish to the Agent for review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of each proposed Free Writing Prospectus or any amendment or supplement thereto to be prepared by or on behalf of, used by, or referred to by the Company and the Company shall not file, use or refer to any proposed Free Writing Prospectus or any amendment or supplement thereto without the Agent’s consent, which shall not be unreasonably withheld, conditioned or delayed.  The Company shall furnish to the Agent, without charge, as many copies of any Free Writing Prospectus prepared by or on behalf of, or used by the Company, as the Agent may reasonably request.  If at any time when a prospectus is required by the Securities Act (including, without limitation, pursuant to Rule 173(d)) to be delivered in connection with sales of the Shares (but in any event if at any time through and including the date of this Agreement) there occurred or occurs an event or development as a result of which any Free Writing Prospectus prepared by or on behalf of, used by, or referred to by the Company conflicted or would conflict with the information contained in the Registration Statement or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading, the Company shall promptly amend or supplement such Free Writing Prospectus to eliminate or correct such conflict or so that the statements in such Free Writing Prospectus as so amended or supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at such subsequent time, not misleading, as the case may be; provided, however, that prior to amending or supplementing any such Free Writing Prospectus, the Company shall furnish to the Agent for review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of such proposed amended or supplemented Free Writing Prospectus and the Company shall not file, use or refer to any such amended or supplemented Free Writing Prospectus without the Agent’s consent, which shall not be unreasonably withheld, conditioned or delayed. 

(g)Filing of Agent Free Writing Prospectuses.  The Company shall not take any action that would result in the Agent or the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a Free Writing Prospectus prepared by or on behalf of the Agent that the Agent otherwise would not have been required to file thereunder. 

(h)Copies of Registration Statement and Prospectus.  After the date of this Agreement through the last time that a prospectus is required by the Securities Act (including, 

 

			
	
 
	
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without limitation, pursuant to Rule 173(d)) to be delivered in connection with sales of the Shares, the Company agrees to furnish the Agent with copies (which may be electronic copies) of the Registration Statement and each amendment thereto, and with copies of the Prospectus and each amendment or supplement thereto in the form in which it is filed with the Commission pursuant to the Securities Act or Rule 424(b) under the Securities Act, both in such quantities as the Agent may reasonably request from time to time; and, if the delivery of a prospectus is required under the Securities Act or under the blue sky or securities laws of any jurisdiction at any time on or prior to the applicable Settlement Date for any period set forth in an Issuance Notice in connection with the offering or sale of the Shares and if at such time any event has occurred as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such Prospectus is delivered, not misleading, or, if for any other reason it is necessary during such same period to amend or supplement the Prospectus or to file under the Exchange Act any document incorporated by reference in the Prospectus in order to comply with the Securities Act or the Exchange Act, to notify the Agent and to request that the Agent suspend offers to sell Shares (and, if so notified, the Agent shall cease such offers as soon as practicable); and if the Company decides to amend or supplement the Registration Statement or the Prospectus as then amended or supplemented, to advise the Agent promptly by telephone (with confirmation in writing) and to prepare and cause to be filed promptly with the Commission an amendment or supplement to the Registration Statement or the Prospectus as then amended or supplemented that will correct such statement or omission or effect such compliance (it being acknowledged that the Company may delay the filing of any amendment or supplement, if, in the judgment of the Company, it is in the best interest of the Company); provided, however, that if during such same period the Agent is required to deliver a prospectus in respect of transactions in the Shares, the Company shall promptly prepare and file with the Commission such an amendment or supplement. 

(i)Blue Sky Compliance.  The Company shall cooperate with the Agent and counsel for the Agent to qualify or register the Shares for sale under (or obtain exemptions from the  application of) the state securities or blue sky laws or Canadian provincial securities laws of those jurisdictions designated by the Agent, shall comply with such laws and shall continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the Shares.  The Company shall not be required to qualify as a foreign corporation or to take any action that would subject it to general service of process in any such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign corporation.  The Company will advise the Agent promptly of the suspension of the qualification or registration of (or any such exemption relating to) the Shares for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, the Company shall use its commercially reasonable efforts to obtain the withdrawal thereof as soon as reasonably practicable. 

(j)Earnings Statement.  As soon as reasonably practicable, the Company will make generally available to its security holders and to the Agent an earnings statement (which need not be audited) covering a period of at least twelve months beginning with the first fiscal quarter of 

 

			
	
 
	
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the Company occurring after the date of this Agreement which shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 under the Securities Act. 

(k)Listing; Reservation of Shares.  (i)  The Company will use its reasonable best efforts to maintain the listing of the Shares on the Principal Market; and (ii) the Company will reserve and keep available at all times, free of preemptive rights, Shares for the purpose of enabling the Company to satisfy its obligations under this Agreement. 

(l)Transfer Agent.  The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Shares.   

(m)Due Diligence.   During the term of this Agreement, the Company will reasonably cooperate with any reasonable due diligence review conducted by the Agent in connection with the transactions contemplated hereby, including, without limitation, providing information and making available documents and senior corporate officers, during normal business hours and at the Company’s principal offices or virtually, as the Agent may reasonably request from time to time. 

(n)Representations and Warranties.  The Company acknowledges that each delivery of an Issuance Notice and each delivery of Shares on a Settlement Date shall be deemed to be (i) an affirmation to the Agent that the representations and warranties of the Company contained in or made pursuant to this Agreement are true and correct as of the date of such Issuance Notice or of such Settlement Date, as the case may be, as though made at and as of each such date, except as may be disclosed in the Prospectus (including any documents incorporated by reference therein and any supplements thereto); and (ii) an undertaking that the Company will advise the Agent if any of such representations and warranties will not be true and correct as of the Settlement Date for the Shares relating to such Issuance Notice, as though made at and as of each such date (except that such representations and warranties shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented relating to such Shares). 

(o)Deliverables at Triggering Event Dates; Certificates. The Company agrees that on or prior to the date of the first Issuance Notice and, during the term of this Agreement after the date of the first Issuance Notice, upon:   

(A)the filing of the Prospectus or the amendment or supplement of any Registration Statement or Prospectus (other than a prospectus supplement relating solely to an offering of securities other than the Shares or a prospectus filed pursuant to Section 4(a)(ii)(B)), by means of a post-effective amendment, sticker or supplement, but not by means of incorporation of documents by reference into the Registration Statement or Prospectus;    

(B)the filing with the Commission of an annual report on Form 10-K or a quarterly report on Form 10-Q (including any Form 10-K/A or Form 10-Q/A containing amended financial information or a material amendment to the previously filed annual report on Form 10-K or quarterly report on Form 10-Q), in each case, of the Company; or   

 

			
	
 
	
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(C)the filing with the Commission of a current report on Form 8-K of the Company containing amended financial information (other than information “furnished” pursuant to Item 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to reclassification of certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) that is material to the offering of securities of the Company in the Agent’s reasonable discretion;  

(any such event, a “Triggering Event Date”), the Company shall furnish the Agent (but in the case of clause (C) above only if the Agent reasonably determines that the information contained in such current report on Form 8-K of the Company is material) with a certificate as of the Triggering Event Date, in the form and substance reasonably satisfactory to the Agent and its counsel, substantially similar to the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement and the Prospectus as amended or supplemented, (A) confirming that the representations and warranties of the Company contained in this Agreement are true and correct, (B) confirming that the Company has performed all of its obligations hereunder to be performed on or prior to the date of such certificate and as to the matters set forth in Section 5(a)(iii) hereof, and (C) containing any other certification that the Agent shall reasonably request. The requirement to provide a certificate under this Section 4(o) shall be waived for any Triggering Event Date occurring at a time when no Issuance Notice is pending or a suspension is in effect, which waiver shall continue until the earlier to occur of the date the Company delivers an Issuance Notice with instructions for the sale of Shares hereunder (which for such calendar quarter shall be considered a Triggering Event Date) and the next occurring Triggering Event Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Shares following a Triggering Event Date when a suspension was in effect and did not provide the Agent with a certificate under this Section 4(o), then before the Company delivers an Issuance Notice with instructions for the sale of Shares or the Agent sells any Shares pursuant to such instructions, the Company shall provide the Agent with a certificate in conformity with this Section 4(o) dated as of the date that the instructions for the sale of Shares are issued to the Agent. 

(p)Legal Opinions.  The Company shall cause to be furnished to the Agent, (A) on or prior to the date of the first Issuance Notice, (i) a negative assurances letter and the written legal opinion of Wilmer Cutler Pickering Hale and Dorr LLP, counsel to the Company (“Outside Counsel”), and (ii) the written legal opinion of Bozicevic, Field & Francis LLP, intellectual property counsel to the Company (“Outside IP Counsel”), each dated the date of delivery, in form and substance reasonably satisfactory to Agent and its counsel, substantially similar to the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented and (B) on or prior to each subsequent Triggering Event Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable, (i) a negative assurances letter of Outside Counsel and (ii) the written legal opinion of Outside IP Counsel, each dated the date of delivery, in form and substance reasonably satisfactory to Agent and its counsel, substantially similar to the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided that the Company shall be required to furnish to the Agent no more than one negative assurance letter from Outside Counsel and opinion from Outside IP Counsel per each 

 

			
	
 
	
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filing of an annual report on Form 10-K or a quarterly report on Form 10-Q. In lieu of such opinions or negative assurance letters for subsequent periodic filings, in the discretion of the Agent, the Company may furnish a reliance letter from such counsel to the Agent, permitting the Agent to rely on a previously delivered opinion letter or negative assurance letter, modified as appropriate for any passage of time or Triggering Event Date (except that statements in such prior opinion or negative assurance letter shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented as of such Triggering Event Date).  

(q)Comfort Letter. On or prior to the date of the first Issuance Notice and on or prior to each Triggering Event Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable and excluding the date of this Agreement, the Company shall cause RSM US LLP, the independent registered public accounting firm who has audited the financial statements included or incorporated by reference in the Registration Statement, to furnish the Agent a comfort letter, dated the date of delivery, in form and substance reasonably satisfactory to the Agent and its counsel, substantially similar to the form previously provided to the Agent and its counsel; provided, however, that any such comfort letter will only be required on the Triggering Event Date specified to the extent that it contains financial statements filed with the Commission under the Exchange Act and incorporated or deemed to be incorporated by reference into a Prospectus and provided further that the Company shall be required to furnish to the Agent no more than one comfort letter per each filing of an annual report on Form 10-K or a quarterly report on Form 10-Q.  At any time when an Issuance Notice is outstanding, if requested by the Agent, the Company shall also cause a comfort letter to be furnished to the Agent within ten (10) Trading Days of the date of occurrence of any material transaction or event requiring the filing of a current report on Form 8-K containing material amended financial information of the Company, including the restatement of the Company’s financial statements. The Company shall be required to furnish no more than one comfort letter hereunder per each filing of an annual report on Form 10-K or a quarterly report on Form 10-Q. 

(r)Secretary’s Certificate. On or prior to the date of the first Issuance Notice and on or prior to each Triggering Event Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable, the Company shall furnish the Agent a certificate executed by the Secretary of the Company, signing in such capacity, dated the date of delivery (i) certifying that attached thereto are true and complete copies of the resolutions duly adopted by the Board of Directors of the Company authorizing the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby (including, without limitation, the issuance of the Shares pursuant to this Agreement), which authorization shall be in full force and effect on and as of the date of such certificate, (ii) certifying and attesting to the office, incumbency, due authority and specimen signatures of each Person who executed this Agreement for or on behalf of the Company, and (iii) containing any other certification that the Agent shall reasonably request.  

(s)Agent’s Own Account; Clients’ Account.  The Company consents to the Agent trading, in compliance with applicable law, in the Common Shares for the Agent’s own account and for the account of its clients at the same time as sales of the Shares occur pursuant to this Agreement. 

 

			
	
 
	
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(t)Investment Limitation.  The Company shall not invest, or otherwise use the proceeds received by the Company from its sale of the Shares in such a manner as would require the Company or its subsidiary to register as an investment company under the Investment Company Act. 

(u)Market Activities.  The Company will not take, directly or indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of the Shares or any other reference security, whether to facilitate the sale or resale of the Shares or otherwise, and the Company will, and shall use commercially reasonable efforts to cause each of its affiliates to, comply with all applicable provisions of Regulation M.  If the limitations of Rule 102 of Regulation M (“Rule 102”) do not apply with respect to the Shares or any other reference security pursuant to any exception set forth in Section (d) of Rule 102, then promptly upon notice from the Agent (or, if later, at the time stated in the notice), the Company will, and shall use commercially reasonable efforts to cause each of its affiliates to, comply with Rule 102 as though such exception were not available but the other provisions of Rule 102 (as interpreted by the Commission) did apply. The Company shall promptly notify the Agent if it no longer meets the requirements set forth in Section (d) of Rule 102.   

(v)Notice of Other Sale.  Without the written consent of the Agent, the Company will not, directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Shares or securities convertible into or exchangeable for Common Shares (other than Shares hereunder), warrants or any rights to purchase or acquire Common Shares, during the period beginning on the third Trading Day immediately prior to the date on which any Issuance Notice is delivered to the Agent hereunder and ending on the earlier of (A) the third Trading Day immediately following the Settlement Date with respect to Shares sold pursuant to such Issuance Notice and (B) the date such Issuance Notice is cancelled if no Shares have been sold pursuant to such Issuance Notice; and will not directly or indirectly enter into any other “at the market” or continuous equity transaction offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Shares (other than the Shares offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Shares, warrants or any rights to purchase or acquire, Common Shares prior to the termination of this Agreement; provided, however, that such restrictions will not be applicable in connection with the Company’s (i) issuance or sale of Common Shares, options to purchase Common Shares or Common Shares issuable upon the exercise of options or other equity awards pursuant to any employee or director share option, incentive or benefit plan, share purchase or ownership plan, long-term incentive plan, dividend reinvestment plan, inducement award under Nasdaq rules or other compensation plan of the Company or its subsidiary that is disclosed in the Registration Statement and Prospectus, (ii) issuance or sale of Common Shares issuable upon exchange, conversion or redemption of securities or the exercise or vesting of warrants, options or other equity awards outstanding at the date of this Agreement, (iii) issuance or sale of Common Shares or securities convertible into or exchangeable for Common Shares as consideration for mergers, acquisitions, other business combinations, joint ventures or strategic alliances occurring after the date of this Agreement which are not used for capital raising purposes, provided that the aggregate number of Common Shares issued or sold under this subsection (iii) shall not exceed 5% of the number of Common Shares 

 

			
	
 
	
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outstanding immediately prior to giving effect to such sale of issuance, and (iv) modification of any outstanding options, warrants or any rights to purchase or acquire Common Shares.  

Section 5.  CONDITIONS TO DELIVERY OF ISSUANCE NOTICES AND TO SETTLEMENT 

(a)Conditions Precedent to the Right of the Company to Deliver an Issuance Notice and the Obligation of the Agent to Sell Shares.  The right of the Company to deliver an Issuance Notice hereunder is subject to the satisfaction, on the date of delivery of such Issuance Notice, and the obligation of the Agent to use its commercially reasonable efforts to place Shares during the applicable period set forth in the Issuance Notice is subject to the satisfaction, on each Trading Day during the applicable period set forth in the Issuance Notice, of each of the following conditions: 

	
 
	
(i)
	
Accuracy of the Company’s Representations and Warranties; Performance by the Company. The Company shall have delivered the certificate required to be delivered pursuant to Section 4(o) on or before the date on which delivery of such certificate is required pursuant to Section 4(o). The Company shall have performed, satisfied and complied with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to such date, including, but not limited to, the covenants contained in Section 4(p), Section 4(q) and Section 4(r).

	
 
	
(ii)
	
No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby that prohibits or directly and materially adversely affects any of the transactions contemplated by this Agreement, and no proceeding shall have been commenced that may have the effect of prohibiting or materially adversely affecting any of the transactions contemplated by this Agreement.

	
 
	
(iii)
	
Material Adverse Effects. Except as disclosed in the Prospectus and the Time of Sale Information, (a) in the judgment of the Agent there shall not have occurred any Material Adverse Effect; and (b) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any securities of the Company or its subsidiary by any “nationally recognized statistical rating organization” as such term is defined for purposes of Section 3(a)(62) of the Exchange Act.

	
 
	
(iv)
	
No Suspension of Trading in or Delisting of Common Shares; Other Events. The trading of the Common Shares (including without limitation the Shares) shall not have been suspended by the Commission, the Principal Market or FINRA and the Common Shares (including without limitation the Shares) shall have been approved 

 

			
	
 
	
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for listing or quotation on and shall not have been delisted from the Nasdaq Stock Market, the New York Stock Exchange or any of their constituent markets. There shall not have occurred (and be continuing in the case of occurrences under clauses (i) and (ii) below) any of the following: (i) trading or quotation in any of the Company’s securities shall have been suspended or limited by the Commission or by the Principal Market or trading in securities generally on either the Principal Market shall have been suspended or limited, or minimum or maximum prices shall have been generally established on any of such stock exchanges by the Commission or the FINRA; (ii) a general banking moratorium shall have been declared by any federal or New York authorities; or (iii) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis or calamity, or any change in the United States or international financial markets, or any substantial change or development involving a prospective substantial change in United States’ or international political, financial or economic conditions, as in the judgment of the Agent is material and adverse and makes it impracticable to market the Shares in the manner and on the terms described in the Prospectus or to enforce contracts for the sale of securities.

(b)Documents Required to be Delivered on each Issuance Notice Date.  The Agent’s obligation to use its commercially reasonable efforts to place Shares hereunder shall additionally be conditioned upon the delivery to the Agent on or before the Issuance Notice Date of a certificate in form and substance reasonably satisfactory to the Agent, executed by the Chief Executive Officer, President or Chief Financial Officer of the Company, to the effect that all conditions to the delivery of such Issuance Notice shall have been satisfied as at the date of such certificate (which certificate shall not be required if the foregoing representations shall be set forth in the Issuance Notice). 

(c)No Misstatement or Material Omission. Agent shall not have advised the Company that the Registration Statement, the Prospectus or the Time of Sale Information, or any amendment or supplement thereto, contains an untrue statement of fact that in the Agent’s reasonable opinion is material, or omits to state a fact that in the Agent’s reasonable opinion is material and is required to be stated therein or is necessary to make the statements therein not misleading. 

(d)Agent Counsel Legal Opinion. Agent shall have received from Goodwin Procter LLP, counsel for Agent, such opinion or opinions, on or before the date on which the delivery of the Company counsel legal opinion is required pursuant to Section 4(p), with respect to such matters as Agent may reasonably require, and the Company shall have furnished to such counsel such documents as they request for enabling them to pass upon such matters. 

Section 6.  INDEMNIFICATION AND CONTRIBUTION 

(a)Indemnification of the Agent.  The Company agrees to indemnify and hold harmless the Agent, its officers and employees, and each person, if any, who controls the Agent within the meaning of the Securities Act or the Exchange Act against any loss, claim, damage, liability or expense, as incurred, to which the Agent or such officer, employee or controlling person 

 

			
	
 
	
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may become subject, under the Securities Act, the Exchange Act, other federal or state statutory law or regulation, or the laws or regulations of foreign jurisdictions where Shares have been offered or sold or at common law or otherwise (including in settlement of any litigation), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) any untrue statement or alleged untrue statement of a material fact contained in any Free Writing Prospectus that the Company has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of the Securities Act or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; or (iii) any act or failure to act or any alleged act or failure to act by the Agent in connection with, or relating in any manner to, the Shares or the offering contemplated hereby, and which is included as part of or referred to in any loss, claim, damage, liability or action arising out of or based upon any matter covered by clause (i) or (ii) above, provided that the Company shall not be liable under this clause (iii) to the extent that a court of competent jurisdiction shall have determined by a final judgment that such loss, claim, damage, liability or action resulted directly from any such acts or failures to act undertaken or omitted to be taken by the Agent through its bad faith or willful misconduct, and to reimburse the Agent and each such officer, employee and controlling person for any and all reasonable and documented expenses (including the reasonable and documented fees and disbursements of counsel chosen by the Agent) as such expenses are reasonably incurred by the Agent or such officer, employee or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company by the Agent expressly for use in the Registration Statement, any such Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), it being understood and agreed that the only such information furnished by the Agent to the Company consists of the information described in subsection (b) below.  The indemnity agreement set forth in this Section 6(a)  shall be in addition to any liabilities that the Company may otherwise have. 

(b)Indemnification of the Company, its Directors and Officers. The Agent agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who signed the Registration Statement and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act against any loss, claim, damage, liability or expense, as incurred, to which the Company or any such director, officer or controlling person may become subject, under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or the laws or regulations of foreign jurisdictions where Shares have been offered or sold or at common law or otherwise (including in settlement of any litigation), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained 

 

			
	
 
	
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in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any Free Writing Prospectus that the Company has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of the Securities Act or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; but, for each of (i) and (ii) above, only to the extent arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company by the Agent expressly for use in the Registration Statement, any such Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), it being understood and agreed that the only such information furnished by the Agent to the Company consists of the information set forth in the first sentence of the ninth paragraph under the caption “Plan of Distribution” in the Prospectus, and to reimburse the Company and each such director, officer and controlling person for any and all expenses (including the fees and disbursements of one counsel chosen by the Company) as such expenses are reasonably incurred by the Company or such officer, director or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that the Agent or the Company may otherwise have. 

(c)Notifications and Other Indemnification Procedures.  Promptly after receipt by an indemnified party under this Section 6 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 6, notify the indemnifying party in writing of the commencement thereof, but the omission to so notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party for contribution or otherwise than under the indemnity agreement contained in this Section 6 or to the extent it is not prejudiced as a proximate result of such failure. In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in, and, to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded based on the advice of counsel that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party 

 

			
	
 
	
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under this Section 6 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the fees and expenses of more than one separate counsel (together with local counsel), representing the indemnified parties who are parties to such action), which counsel (together with any local counsel) for the indemnified parties shall be selected by the indemnified party (in the case of counsel for the indemnified parties referred to in Section 6(a) and Section 6(b) above), (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action or (iii) the indemnifying party has authorized in writing the employment of counsel for the indemnified party at the expense of the indemnifying party, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party and shall be paid as they are incurred. 

(d)Settlements.  The indemnifying party under this Section 6 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 6(c) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request; and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement.  No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. 

(e)Contribution.  If the indemnification provided for in this Section 6 is for any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and the Agent, on the other hand, from the offering of the Shares pursuant to this Agreement; or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and the Agent, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.  The relative benefits received by the Company, on the one hand, and the Agent, 

 

			
	
 
	
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on the other hand, in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total gross proceeds from the offering of the Shares (before deducting expenses) received by the Company bear to the total Selling Commission received by the Agent.  The relative fault of the Company, on the one hand, and the Agent, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or the Agent, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 

The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 6(c), any reasonable and documented legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim.  The provisions set forth in Section 6(c) with respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this Section 6(e); provided, however, that no additional notice shall be required with respect to any action for which notice has been given under Section 6(c) for purposes of indemnification. 

The Company and the Agent agree that it would not be just and equitable if contribution pursuant to this Section 6(e) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 6(e). 

Notwithstanding the provisions of this Section 6(e), the Agent shall not be required to contribute any amount in excess of the Selling Commission received by the Agent in connection with the offering contemplated hereby.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 6(e), each officer and employee of the Agent and each person, if any, who controls the Agent within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as the Agent, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as the Company.

Section 7.  TERMINATION & SURVIVAL

(a)Term.  Subject to the provisions of this Section 7, the term of this Agreement shall continue from the date of this Agreement until the end of the Agency Period, unless earlier terminated by the parties to this Agreement pursuant to this Section 7. 

(b)Termination; Survival Following Termination.

	
 
	
(i)
	
Either party may terminate this Agreement prior to the end of the Agency Period, by giving written notice as required by this Agreement, upon ten (10) Trading Days’ notice to the other party; provided that, (A) if the Company terminates this 

 

			
	
 
	
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Agreement after the Agent confirms to the Company any sale of Shares, the Company shall remain obligated to comply with Section 3(b)(v) with respect to such Shares and (B) Section 2, Section 6, Section 7 and Section 8 shall survive termination of this Agreement. If termination shall occur prior to the Settlement Date for any sale of Shares, such sale shall nevertheless settle in accordance with the terms of this Agreement. Upon termination of this Agreement, the Company shall not have any liability to the Agent for any discount, commission or other compensation with respect to any Shares not otherwise sold by the Agent under this Agreement.

	
 
	
(ii)
	
In addition to the survival provision of Section 7(b)(i), the respective indemnities, agreements, representations, warranties and other statements of the Company, of its officers and of the Agent set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of the Agent or the Company or any of its or their partners, officers or directors or any controlling person, as the case may be, and, anything herein to the contrary notwithstanding, will survive delivery of and payment for the Shares sold hereunder and any termination of this Agreement.

Section 8.  MISCELLANEOUS

(a)Press Releases and Disclosure.  The Company may issue a press release describing the material terms of the transactions contemplated hereby as soon as practicable following the date of this Agreement, and may file with the Commission a Current Report on Form 8-K or other report obligated to be filed under the Exchange Act, with this Agreement attached as an exhibit thereto, describing the material terms of the transactions contemplated hereby, and the Company shall consult with the Agent prior to making such disclosures, and the parties hereto shall use all commercially reasonable efforts, acting in good faith, to agree upon a text for such disclosures that is reasonably satisfactory to all parties hereto. No party hereto shall issue thereafter any press release or like public statement (including, without limitation,  any disclosure required in reports filed with the Commission pursuant to the Exchange Act) related to this Agreement or any of the transactions contemplated hereby without the prior written approval of the other party hereto, except as may be necessary or appropriate in the reasonable opinion of the party seeking to make disclosure to comply with the requirements of applicable law or stock exchange rules. If any such press release or like public statement is so required, the party making such disclosure shall consult with the other party prior to making such disclosure, and the parties shall use all commercially reasonable efforts, acting in good faith, to agree upon a text for such disclosure that is reasonably satisfactory to all parties hereto. 

(b)No Advisory or Fiduciary Relationship.  The Company acknowledges and agrees that (i) the transactions contemplated by this Agreement, including the determination of any fees, are arm’s-length commercial transactions between the Company and the Agent, (ii) when acting as a principal under this Agreement, the Agent is and has been acting solely as a principal and is not the agent or fiduciary of the Company, or its stockholders, creditors, employees or any other party, (iii) the Agent has not assumed nor will assume an advisory or fiduciary responsibility in 

 

			
	
 
	
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favor of the Company with respect to the transactions contemplated hereby or the process leading thereto (irrespective of whether the Agent has advised or is currently advising the Company on other matters) and the Agent does not have any obligation to the Company with respect to the transactions contemplated hereby except the obligations expressly set forth in this Agreement, (iv) the Agent and its affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company, and (v) the Agent has not provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated hereby and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.  

(c)Research Analyst Independence.  The Company acknowledges that the Agent’s research analysts and research departments are required to and should be independent from their respective investment banking divisions and are subject to certain regulations and internal policies, and as such the Agent’s research analysts may hold views and make statements or investment recommendations and/or publish research reports with respect to the Company or the offering that differ from the views of their respective investment banking divisions.  The Company understands that the Agent is a full service securities firm and as such from time to time, subject to applicable securities laws, may effect transactions for its own account or the account of its customers and hold long or short positions in debt or equity securities of the companies that may be the subject of the transactions contemplated by this Agreement. 

(d)Notices.  All communications hereunder shall be in writing and shall be mailed, hand delivered or telecopied (or, if to the Company, emailed) and confirmed to the parties hereto as follows: 

 

If to the Agent:

 

Jefferies LLC 

520 Madison Avenue 

New York, NY 10022 

Facsimile:  (646) 786-5719 

Attention:  General Counsel

 

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

 

Goodwin Procter LLP 

620 Eighth Avenue 

New York, NY 10018 

Facsimile: (646) 558-4140

Attention: Thomas Levato

 

 

			
	
 
	
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If to the Company:

 

Cue Biopharma, Inc. 

21 Erie Street 

Cambridge, Massachusetts 01239 

Facsimile:  

Attention: Chief Executive Officer

Email: dpasseri@cuebio.com 

 

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

 

Wilmer Cutler Pickering Hale and Dorr LLP

60 State Street 

Boston, Massachusetts 02109 

Facsimile: (617) 526-5000 

Attention: Cynthia Mazareas 

 

Any party hereto may change the address for receipt of communications by giving written notice to the others in accordance with this Section 8(d). 

(e)Successors.  This Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of the employees, officers and directors and controlling persons referred to in Section 6, and in each case their respective successors, and no other person will have any right or obligation hereunder.  The term “successors” shall not include any purchaser of the Shares as such from the Agent merely by reason of such purchase. 

(f)Partial Unenforceability.  The invalidity or unenforceability of any Article, Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Article, Section, paragraph or provision hereof.  If any Article, Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable. 

(g)Governing Law Provisions.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York applicable to agreements made and to be performed in such state.  Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States of America located in the Borough of Manhattan in the City of New York or the courts of the State of New York in each case located in the Borough of Manhattan in the City of New York (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court, as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding.  Service of any process, summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court.  The parties irrevocably and unconditionally waive any 

 

			
	
 
	
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objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum.   

(h)General Provisions.  This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof.  This Agreement may be executed in two or more counterparts, each one of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and may be delivered by facsimile transmission or by electronic delivery of a portable document format (PDF) file (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com).  This Agreement may not be amended or modified unless agreed to in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. The Article and Section headings herein are for the convenience of the parties only and shall not affect the construction or interpretation of this Agreement. 

 

[Signature Page Immediately Follows]

 

 

 

			
	
 
	
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If the foregoing is in accordance with your understanding of our agreement, kindly sign and return to the Company the enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms 

 

	
Very truly yours,

	
 
	
 

	
CUE BIOPHARMA, INC.

	
 
	
 

	
By:
	
/s/ Daniel Passeri

	
 
	
Name: Dan Passeri

	
 
	
Title: Chief Executive Officer

 

 

The foregoing Agreement is hereby confirmed and accepted by the Agent in New York, New York as of the date first above written. 

 

	
JEFFERIES LLC

	
 
	
 

	
By:
	
 

	
 
	
Name:

	
 
	
Title:

 

 

 

 

 

If the foregoing is in accordance with your understanding of our agreement, kindly sign and return to the Company the enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms 

 

	
Very truly yours,

	
 
	
 

	
CUE BIOPHARMA, INC.

	
 
	
 

	
By:
	
/s/ Daniel Passeri

	
 
	
Name: Dan Passeri

	
 
	
Title: Chief Executive Officer

 

 

The foregoing Agreement is hereby confirmed and accepted by the Agent in New York, New York as of the date first above written. 

 

	
JEFFERIES LLC

	
 
	
 

	
By:
	
/s/ Michael Magarro

	
 
	
Name: Michael Magarro

	
 
	
Title: Managing Director

 

 

 

 

 

 

EXHIBIT A

ISSUANCE NOTICE

 

[Date]

 

Jefferies LLC 

520 Madison Avenue 

New York, New York 10022

Attn: [Dustin Tyner] 

 

Reference is made to the Open Market Sale Agreement between Cue Biopharma, Inc. (the “Company”) and Jefferies LLC (the “Agent”) dated as of October 1, 2021.  The Company confirms that all conditions to the delivery of this Issuance Notice are satisfied as of the date hereof.

Date of Delivery of Issuance Notice (determined pursuant to Section 3(b)(i)):

_______________________

Issuance Amount (equal to the total Sales Price for such Shares): 

 

	
 
	
$

	
Number of days in selling period:
	
 

	
First date of selling period:
	
 

	
Last date of selling period:
	
 

 

Settlement Date(s) if other than standard T+2 settlement:

 

	
 
	
 

 

Floor Price Limitation (in no event less than $1.00 without the prior written consent of the Agent, which consent may be withheld in the Agent’s sole discretion): $ ____ per share 

 

	
Comments:
	
 

 

 

	
 
	
 
	
 

	
By:
	
 

	
 
	
Name:

	
 
	
Title:

 

 

 

 

			
	
 
	
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Schedule A

Notice Parties

 

The Company 

Dan Passeri (dpasseri@cuebio.com)

Kerri-Ann Millar (kmillar@cuebio.com)

The Agent

Dustin Tyner (dtyner@jefferies.com)

Robert D’Annibale (rdannibale@jefferies.com) 

Donald Lynaugh (dlynaugh@jefferies.com)

Michael Magarro (mmagarro@jefferies.com) 

 

 

 

			
	
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B-2
	
 

	
NYI-4197943v7
	
 
	
 

	
AMERICAS 91253794 v4
	
 
	
 

	
 
	
 
	
 

	
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