Document:

Exhibit 10.3

 

STOCK PURCHASE AGREEMENT

 

This Stock Purchase Agreement
(“Agreement”) is made and entered into on July 28, 2015 (“Effective Date”), by and between
Immune Pharmaceuticals Inc., a Delaware corporation (“Company”), and the investor whose name appears on the
signature page hereto (“Investor”).

 

Recitals

 

A.           The
parties desire that, upon the terms and subject to the conditions herein, Investor will purchase up to $7.8 million in shares of
Series D Redeemable Convertible Preferred Stock of the Company, which is convertible into Common Stock at $2.50 per share; and

 

B.           The
offer and sale of the Preferred Shares provided for herein are being made pursuant to the exemptions from registration under Section
4(a)(2) of the Act as a transaction by an issuer not involving any public offering, and as a private placement of restricted securities
pursuant to Regulation S and Rule 506 of Regulation D.

 

Agreement

 

In consideration of the
foregoing, the receipt and adequacy of which are hereby acknowledged, Company and Investor agree as follows:

 

I.           Definitions.
In addition to the terms defined elsewhere in this Agreement and the Transaction Documents, capitalized terms that are not
otherwise defined have the meanings set forth in the Glossary of Defined Terms attached hereto as Exhibit 1.

 

II.          Purchase
and Sale.

 

A.           Purchase
Amount. Subject to the terms and conditions herein and the satisfaction of the conditions to Closing set forth below,
Investor hereby irrevocably agrees to purchase 503 Preferred Shares of Company at $10,000.00 per share with a 5.0% original issue
discount (“OID”) for the sum of $4,782,589.00 (“Purchase Amount”) in cash.

 

B.           Deliveries.
The following documents will be fully executed and delivered at the Closing:

 

1.          Certificate
of Designations (“Certificate of Designations”), in the form attached hereto as Exhibit 2, as filed with
and accepted by the Secretary of State of Company’s state of incorporation;

 

2.          Transfer
Agent Instructions, in the form attached hereto as Exhibit 3;

 

3.          Legal
Opinion, in the form attached hereto as Exhibit 4;

 

4.          Officer’s
Certificate, in the form attached hereto as Exhibit 5;

 

5.          Secretary’s
Certificate, in the form attached hereto as Exhibit 6;

 

    	 

    	 

    

  

6.          Voting
Agreements, in the form attached hereto as Exhibit 7, from ten or fewer stockholders that in the aggregate beneficially
own more than 50% of the total voting power of Common Stock and preferred stock voting together with the Common Stock as a single
class outstanding as of the record date for Company’s next meeting of stockholders; and

 

7.          Stock
certificate for 503 Preferred Shares in the name of Investor.

 

C.           Closing
Conditions. The consummation of the transactions contemplated by this Agreement (“Closing”) is subject to
the satisfaction of each of the following conditions:

 

1.          All
documents, instruments and other writings required to be delivered by Company to Investor pursuant to any provision of this Agreement
or in order to implement and effect the transactions contemplated herein have been fully executed and delivered, including without
limitation those enumerated in Section II.B above;

 

2.          The
Common Stock is listed for and currently trading on the same or higher Trading Market and, subject to Section IV.L below,
Company is in compliance with all requirements to maintain listing on the Trading Market, and there is no notice of any suspension
or delisting with respect to the trading of the shares of Common Stock on such Trading Market;

 

3.          The
representations and warranties of Company and Investor set forth in this Agreement are true and correct in all material respects
as if made on such date (except for representations and warranties expressly made as of a specified date, which shall be true as
of such date);

 

4.          No
material breach or default has occurred under any Transaction Document or any other agreement between Company and Investor;

 

5.          Company
has the number of duly authorized shares of Common Stock reserved for issuance as required pursuant to the terms of this Agreement;

 

6.          There
is not then in effect any law, rule or regulation prohibiting or restricting the transactions contemplated in any Transaction Document,
or requiring any consent or approval which will not have been obtained except for the Approval, nor is there any pending or, to
Company’s knowledge threatened, proceeding or investigation which may have the effect of prohibiting or adversely affecting
any of the transactions contemplated by this Agreement; no statute, rule, regulation, executive order, decree, ruling or injunction
will have been enacted, entered, promulgated or adopted by any court or governmental authority of competent jurisdiction that prohibits
the transactions contemplated by this Agreement, and no actions, suits or proceedings will be in progress, pending or, to Company’s
knowledge threatened, by any person other than Investor or any Affiliate of Investor, that seek to enjoin or prohibit the transactions
contemplated by this Agreement; and

 

7.          Any
rights of first refusal, preemptive rights, rights of participation, or any similar right to participate in the transactions contemplated
by this Agreement, if any, have been waived in writing.

 

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D.           Closing.
Immediately when all conditions set forth in Section II.C have been fully satisfied, Company will issue and sell to Investor
and Investor will purchase 503 Preferred Shares by payment to Company of $4,782,589.00 in cash, by wire transfer of immediately
available funds to an account designated by Company.

 

E.           Company
Option. At any time within 1 Trading Day after the Registration Statement has been declared effective, Company may, in
its sole discretion, deliver written notice to Investor of Company’s election to sell to Investor 316 additional Preferred
Shares at $10,000.00 per Preferred Share with a 5.0% OID for the sum of $3,000,000.00. Subject to Approval having been obtained
and the terms and conditions herein, immediately when all conditions in Section II.C have been fully satisfied as of such date,
(1) Investor will purchase and make payment for the specified number of additional Preferred Shares by payment to Company in cash,
by wire transfer of immediately available funds to an account designated by Company, and (2) Company will deliver to Purchaser
by reputable overnight courier, immediately upon receipt of the funds, a stock certificate representing the purchased Preferred
Shares.

 

III.         Representations
and Warranties.

 

A.           Representations
Regarding Transaction. Except as set forth under the corresponding section of the Disclosure Schedules, if any, Company
hereby represents and warrants to, and as applicable covenants with, Investor as of the Closing:

 

1.          Organization
and Qualification. Company and each Subsidiary is an entity duly incorporated or otherwise organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or organization, as applicable, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither Company
nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents, except as would not reasonably be expected to result in a Material Adverse
Effect. Each of Company and each Subsidiary is duly qualified to conduct business and is in good standing as a foreign corporation
or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may be, would not reasonably be expected
to result in a Material Adverse Effect and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing
or seeking to revoke, limit or curtail such power and authority or qualification.

 

2.          Authorization;
Enforcement. Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents and otherwise to carry out its obligations hereunder or thereunder. The execution and delivery
of each of the Transaction Documents by Company and the consummation by it of the transactions contemplated hereby or thereby have
been duly authorized by all necessary action on the part of Company and no further consent or action is required by Company. Each
of the Transaction Documents has been, or upon delivery will be, duly executed by Company and, when delivered in accordance with
the terms hereof, will constitute the valid and binding obligation of Company, enforceable against Company in accordance with its
terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (b) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (c) insofar as indemnification and
contribution provisions may be limited by applicable law.

 

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3.          No
Conflicts. The execution, delivery and performance of the Transaction Documents by Company, the issuance and sale of the
Shares and the consummation by Company of the other transactions contemplated thereby do not and will not (a) conflict with or
violate any provision of Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational
or charter documents, (b) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become
a default) under, result in the creation of any Lien upon any of the properties or assets of Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of,
any material agreement, credit facility, debt or other instrument (evidencing Company or Subsidiary debt or otherwise) or other
understanding to which Company or any Subsidiary is a party or by which any property or asset of Company or any Subsidiary is bound
or affected, (c) conflict with or result in a violation of any material law, rule, regulation, order, judgment, injunction, decree
or other restriction of any court or governmental authority to which Company or a Subsidiary is subject (including U.S. federal
and state securities laws and regulations), or by which any property or asset of Company or a Subsidiary is bound or affected,
or (d) conflict with or violate the terms of any material agreement by which Company or any Subsidiary is bound or to which any
property or asset of Company or any Subsidiary is bound or affected; except in the case of each of clauses (b), (c) and (d), such
as would not reasonably be expected to result in a Material Adverse Effect.

 

4.          Litigation.
 There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of Company,
threatened against or affecting Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”),
which would reasonably be expected to adversely affect or challenge the legality, validity or enforceability of any of the Transaction
Documents or the issuance of any Shares hereunder. The Commission has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by Company or any Subsidiary under the Exchange Act or the Act.

 

5.          Filings,
Consents and Approvals. Neither Company nor any Subsidiary is required to obtain any consent, waiver, authorization or
order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority or other Person in connection with the execution, delivery and performance by Company of the Transaction Documents, other
than the Approval and required federal and state securities filings and such filings and approvals as are required to be made or
obtained under the applicable Trading Market rules in connection with the transactions contemplated hereby, each of which has been,
or if not yet required to be filed will be, timely filed.

 

6.          Issuance
of Shares. The Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens. Company has reserved and will continue
to reserve from its duly authorized capital stock sufficient shares of its Common Stock for issuance pursuant to the Transaction
Documents.

 

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7.          Disclosure;
Non-Public Information. Company will timely file a current report on Form 8-K within two Trading Days of the Effective
Date describing the material terms and conditions of this Agreement. Notwithstanding any other provision, except with respect to
information that must be, and only to the extent that it actually is, timely publicly disclosed by Company pursuant to the foregoing
sentence, neither Company nor any other Person acting on its behalf has provided Investor or its representatives, agents or attorneys
with any information that constitutes or might constitute material, non-public information, including without limitation this Agreement
and the Exhibits and Disclosure Schedules hereto. No information contained in the Disclosure Schedules constitutes material non-public
information. There is no adverse material information regarding Company that has not been publicly disclosed prior to the Effective
Date. Company understands and confirms that Investor will rely on the foregoing representations and covenants in effecting transactions
in securities of Company. All disclosure provided to Investor regarding Company, its business and the transactions contemplated
hereby, including without limitation the Disclosure Schedules, furnished by or on behalf of Company with respect to the representations
and warranties made herein are true and correct in all material respects and do not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under
which they were made, not misleading.

 

8.          No
Integrated Offering. Neither Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause this offering to be integrated with prior offerings by Company that cause a violation of the Act or any applicable stockholder
approval provisions, including, without limitation, under the rules and regulations of the Trading Market.

 

9.          Financial
Condition. Based on the financial condition of Company and its projected operating and capital requirements, effective
as of the Effective Date, the Company will require additional capital to carry on its business as now conducted and as proposed
to be conducted. Company does not incur debts beyond its ability to pay such debts as they mature, taking into account the timing
and amounts of cash to be payable on or in respect of its debt. The Public Reports set forth as of the dates thereof all outstanding
secured and unsecured Indebtedness of Company or any Subsidiary, or for which Company or any Subsidiary has commitments, and any
material default with respect to any Indebtedness.

 

10.         Section
5 Compliance. No representation or warranty or other statement made by Company in the Transaction Documents contains any
untrue statement or omits to state a material fact necessary to make any of them, in light of the circumstances in which it was
made, not misleading. Company is not aware of any facts or circumstances that would cause the transactions contemplated by the
Transaction Documents, when consummated, to violate Section 5 of the Act or other federal or state securities laws or regulations.

 

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11.         Investment
Company. Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Preferred Shares,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. Company will conduct its business in a manner so that it will not become subject to the Investment Company Act.

 

12.         Acknowledgments
Regarding Investor. Company’s decision to enter into this Agreement has been based solely on the independent evaluation
of Company and its representatives, and Company acknowledges and agrees that:

 

a.           Investor
is not, has never been, and as a result of the transactions contemplated by the Transaction Documents will not become an officer,
director, insider, control person, to Company’s knowledge 10% or greater shareholder, or otherwise an affiliate of Company
as defined under Rule 12b-2 of the Exchange Act;

 

b.           Investor
does not make or has not made any representations, warranties or agreements with respect to the Shares, this Agreement, or the
transactions contemplated hereby other than those specifically set forth in Section III.C below;

 

c.           The
conversion of Preferred Shares and resale of Conversion Shares will result in dilution, which may be substantial; the number of
Conversion Shares will increase in certain circumstances; and Company’s obligation to issue and deliver Conversion Shares
in accordance with this Agreement and the Certificate of Designations is absolute and unconditional regardless of the dilutive
effect that such issuances may have; and

 

d.           Investor
is acting solely in the capacity of arm’s length purchaser with respect to this Agreement and the transactions contemplated
hereby; neither Investor nor any of its Affiliates, agents or representatives has or is acting as a legal, financial, investment,
accounting, tax or other advisor to Company, or fiduciary of Company, or in any similar capacity; neither Investor nor any of its
Affiliates, agents or representatives has provided any legal, financial, investment, accounting, tax or other advice to Company;
any statement made in connection with this Agreement or the transactions contemplated hereby is not advice or a recommendation,
and is merely incidental to Investor’s purchase of the Shares.

 

13.         No
Bad Actor Disqualification. Neither Company, any predecessor of Company, any affiliate of Company, any director, executive
officer, other officer of Company participating in the offering, or any beneficial owner of 20% or more of Company’s outstanding
voting equity securities is subject to any bad actor disqualification as provided in Rule 506(d) of Regulation D.

 

14.         Offshore
Transaction. Company has not, and will not, engage in any directed selling efforts, as defined in Regulation S, in the
United States in respect of any of the Preferred Shares. Company is offering and selling the Preferred Shares only in offshore
transactions, in accordance with Regulation S. Company and its Affiliates have complied, and will comply, with the offering restrictions
requirements of Regulation S. Company has only offered, and will only offer, the Preferred Shares to Investor.

 

B.           Representations
Regarding Company. Except as set forth in any Public Reports and attached exhibits, or under the corresponding section
of the Disclosure Schedules, if any, Company hereby represents and warrants to, and as applicable covenants with, Investor as
of the Closing:

 

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1.          Capitalization.
The capitalization of the Company as of the Effective Date is as described in the Public Reports. No Person has any right of
first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by
the Transaction Documents which has not been waived or satisfied. Except as a result of the purchase and sale of the Shares, there
are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for
or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which Company or any Subsidiary
is or may become bound to issue additional shares of Common Stock or securities convertible into or exercisable for shares of Common
Stock. The issuance and sale of the Shares will not obligate Company to issue shares of Common Stock or other securities to any
Person, other than Investor, and will not result in a right of any holder of Company securities to adjust the exercise, conversion,
exchange, or reset price under such securities. All of the outstanding shares of capital stock of Company are validly issued, fully
paid and nonassessable, have been issued in material compliance with all federal and state securities laws, and none of such outstanding
shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval
or authorization of any stockholder, the Board of Directors of Company or others is required for the issuance and sale of the Shares
except for the Approval. There are no stockholders agreements, voting agreements or other similar agreements with respect to Company’s
capital stock to which Company is a party or, to the knowledge of Company, between or among any of Company’s stockholders.

 

2.          Subsidiaries.
All of the direct and indirect subsidiaries of Company are set forth in the Public Reports or the corresponding section of
the Disclosure Schedules. Company owns, directly or indirectly, all of the capital stock or other equity interests of each
Subsidiary, and all of such directly or indirectly owned capital stock or other equity interests are owned free and clear of any
Liens. All the issued and outstanding shares of capital stock of each Subsidiary are duly authorized, validly issued, fully paid,
nonassessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

3.          Public
Reports; Financial Statements. Company has filed all required Public Reports for the one year preceding the Effective Date.
As of their respective dates or as subsequently amended, the Public Reports complied in all material respects with the requirements
of the Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, as applicable, and none
of the Public Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made, not misleading. The financial statements of Company included in the Public Reports, as amended, comply in all material respects
with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the
time of filing. Such financial statements have been prepared in accordance with GAAP, except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required
by GAAP, and fairly present in all material respects the financial position of Company and its consolidated subsidiaries as of
and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.

 

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4.          Material
Changes. Since the end of the most recent year for which an Annual Report on Form 10-K has been filed with the Commission,
(a) there has been no event, occurrence or development that has had, or that would reasonably be expected to result in, a Material
Adverse Effect, (b) Company has not incurred any liabilities (contingent or otherwise) other than (i) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past practice, and (ii) liabilities not required to be reflected
in Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (c) Company
has not altered its method of accounting, (d) Company has not declared or made any dividend or distribution of cash or other property
to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (e)
Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity
incentive plans. Company does not have pending before the Commission any request for confidential treatment of information.

 

5.          Litigation.
 There is no Action pending or, to the knowledge of the Company, threatened, which would reasonably be expected to result in
a Material Adverse Effect. Neither Company nor any Subsidiary, nor to the knowledge of Company any director or officer thereof,
is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws
or a claim of breach of fiduciary duty. There has not been, and to the knowledge of Company, there is not pending or contemplated,
any investigation by the Commission involving Company or any current or former director or officer of Company.

 

6.          No
Bankruptcy. There has not been any petition or application filed, or any judicial or administrative proceeding commenced
which has not been discharged, by or against the Company or any Subsidiary or with respect to any of the properties or assets of
Company or any Subsidiary under any applicable law relating to bankruptcy, insolvency, reorganization, fraudulent transfer, compromise,
arrangement of debt, creditors’ rights and no assignment has been made by the Company or any Subsidiary for the benefit of
creditors.

 

7.          Labor
Relations. No material labor dispute exists or, to the knowledge of Company, is imminent with respect to any of the employees
of Company, which would reasonably be expected to result in a Material Adverse Effect.

 

8.          Compliance.
Neither Company nor any Subsidiary (a) is in material default under or in material violation of (and no event has occurred that
has not been waived that, with notice or lapse of time or both, would result in a default by Company or any Subsidiary under),
nor has Company or any Subsidiary received notice of a claim that it is in material default under or that it is in material violation
of, any indenture, loan or credit agreement or any other similar agreement or instrument to which it is a party or by which it
or any of its properties is bound (whether or not such default or violation has been waived), (b) is in violation of any order
of any court, arbitrator or governmental body, or (c) is or has been in violation of any statute, rule or regulation of any governmental
authority, including without limitation all foreign, federal, state and local laws applicable to its business, except in each case
as would not reasonably be expected to have a Material Adverse Effect.

 

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9.          Regulatory
Permits. Company and each Subsidiary possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the Public Reports,
except where the failure to possess such permits would not, individually or in the aggregate, reasonably be expected to result
in a Material Adverse Effect (“Material Permits”), and neither Company nor any Subsidiary has received any notice
of proceedings relating to the revocation or modification of any Material Permit.

 

10.         Title
to Assets. Company and each Subsidiary have good and marketable title in fee simple to all real property owned by them
that is material to the business of Company and each Subsidiary and good and marketable title in all personal property owned by
them that is material to the business of Company and each Subsidiary, in each case free and clear of all Liens, except for Liens
that do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made
of such property by Company and each Subsidiary and Liens for the payment of federal, state or other taxes, the payment of which
is neither delinquent nor subject to penalties. Any real property and facilities held under lease by Company and each Subsidiary
are held by them under valid, subsisting and enforceable leases of which Company and each Subsidiary are in compliance.

 

11.         Patents
and Trademarks. Company and each Subsidiary have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary or material
for use in connection with their respective businesses as described in the Public Reports and which the failure to so have would
have a Material Adverse Effect (collectively, “Intellectual Property Rights”). Neither Company nor any Subsidiary
has received a written notice that the Intellectual Property Rights used by Company or any Subsidiary violates or infringes upon
the rights of any Person. To the knowledge of Company, all such Intellectual Property Rights are enforceable and there is no existing
infringement by another Person of any of the Intellectual Property Rights of Company or each Subsidiary.

 

12.         Insurance.
 Company and each Subsidiary are 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 Company and each Subsidiary are engaged, including but
not limited to directors and officers insurance coverage at least equal to the Purchase Amount. To Company’s knowledge, such
insurance contracts and policies are accurate and complete in all material respects. Neither Company nor any Subsidiary has any
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 as may be necessary to continue its business without an increase in cost that would constitute
a Material Adverse Effect.

 

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13.         Transactions
with Affiliates and Employees. None of the officers or directors of Company and, to the knowledge of Company, none of the
employees of Company is presently a party to any transaction with Company or any Subsidiary (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director
or such employee or, to the knowledge of Company, any entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than (i) for payment of salary
or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of Company and (iii) for other employee
benefits, including stock option agreements under any equity incentive plan of Company.

 

14.         Sarbanes-Oxley;
Internal Accounting Controls. Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002,
which are applicable to it as of the date of the Closing. Company presented in its most recently filed periodic report under the
Exchange Act the conclusions of the certifying officers about the ineffectiveness of Company’s disclosure controls and procedures
based on their evaluations as of the evaluation date. Since the date of the most recently filed periodic report under the Exchange
Act, there have been no significant changes in Company’s internal accounting controls or its disclosure controls and procedures
or, to Company’s knowledge, in other factors that could materially affect Company’s internal accounting controls or
its disclosure controls and procedures.

 

15.         Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement.
Notwithstanding any other provision, Investor will have no obligation with respect to any fees or with respect to any claims made
by or on behalf of other Persons for fees of a type contemplated in this section that may be due in connection with the transactions
contemplated by this Agreement or the other Transaction Documents.

 

16.         Registration
Rights. No Person has any right to cause Company to effect the registration under the Act of any securities of Company.

 

17.         Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12 of the Exchange Act, and Company has
taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act nor has Company received any notification that the Commission is contemplating terminating such registration.
Company has not, in the 12 months preceding the Effective Date, received notice from any Trading Market on which the Common Stock
is or has been listed or quoted to the effect that Company is not in compliance with the listing or maintenance requirements of
such Trading Market. Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance
with all such listing and maintenance requirements.

 

18.         Application
of Takeover Protections. Company and its Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under Company’s Certificate of Incorporation (or similar charter documents) or the
laws of its state of incorporation that is or could become applicable to Investor as a result of Investor and Company fulfilling
their obligations or exercising their rights under the Transaction Documents, including without limitation Company’s issuance
of the Shares and Investor’s ownership of the Shares.

 

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19.         Tax
Status. Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other tax
returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that Company
and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported
taxes). Company has not executed a waiver with respect to the statute of limitations relating to the assessment or collection of
any foreign, federal, statute or local tax. None of Company’s tax returns is presently being audited by any taxing authority.
Company would not be classified as a PFIC for its most recently completed taxable year, and does not expect to be classified as
a PFIC for its current taxable year.

 

20.         Foreign
Corrupt Practices. Neither Company, nor to the knowledge of Company, any agent or other person acting on behalf of Company,
has (a) directly or indirectly, used any corrupt funds for unlawful contributions, gifts, entertainment or other unlawful expenses
related to foreign or domestic political activity, (b) made any unlawful payment to foreign or domestic government officials or
employees or to any foreign or domestic political parties or campaigns from corporate funds, (c) failed to disclose fully any contribution
made by Company, or made by any person acting on its behalf of which Company is aware, which is in violation of law, or (d) violated
in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

21.         Accountants.
Company’s accountants are set forth in the Public Reports and such accountants are an independent registered public accounting
firm.

 

22.         No
Disagreements with Accountants or Lawyers. There are no material disagreements presently existing, or reasonably anticipated
by Company to arise, between Company and the accountants or lawyers formerly or presently employed by Company.

 

23.         Powers
of Attorney. There are no outstanding powers of attorney executed on behalf of the Company or any Subsidiary.

 

C.           Representations
and Warranties of Investor. Investor hereby represents and warrants to Company as of the Closing as follows:

 

1.          Organization;
Authority. Investor is an entity validly existing and in good standing under the laws of the jurisdiction of its organization
with full right, company power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations thereunder. The execution, delivery and performance by Investor of the transactions
contemplated by this Agreement have been duly authorized by all necessary company or similar action on the part of Investor. Each
Transaction Document to which it is a party has been, or will be, duly executed by Investor, and when delivered by Investor in
accordance with the terms hereof, will constitute the valid and legally binding obligation of Investor, enforceable against it
in accordance with its terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (b) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (c) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

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2.          Investor
Status.  At the time Investor was offered the Shares, it was, and at the Effective Date it is: (a) an accredited investor
as defined in Rule 501(a) under the Act; (b) not a registered broker-dealer, member of FINRA, or an affiliate thereof; and (c)
not a U.S. Person, and is not acquiring the Shares for the account or beneficial ownership of any U.S. Person.

 

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

 

4.          Ownership.
 Investor is acquiring the Preferred Shares as principal for its own account. Investor will not engage in hedging transactions
with regard to the Shares unless in compliance with the Act, and will resell the Shares only pursuant to registration under the
Act or an available exemption therefrom.

 

5.          No
Short Sales. Neither Investor nor any Affiliate holds any short position in, nor has engaged in any Short Sales of the
Common Stock, or engaged in any hedging transactions with regard to the Shares prior to the Effective Date.  

 

IV.          Securities
and Other Provisions.

 

A.           Investor
Due Diligence. Investor will have the right and opportunity to conduct customary due diligence with respect to any Registration
Statement or Prospectus in which the name of Investor or any Affiliate of Investor appears.

 

B.           Furnishing
of Information. As long as Investor owns any Shares, Company will timely file all reports required to be filed by Company
after the Effective Date pursuant to the Exchange Act. As long as Investor owns any Shares, Company will prepare and make publicly
available such information as is required for Investor to sell its Conversion Shares under Rule 144. Company further covenants
that, as long as Investor owns any Shares, Company will take such further action as Investor may reasonably request, all to the
extent required from time to time to enable Investor to sell its Conversion Shares without registration under the Act within the
limitation of the exemptions provided by Rule 144.

 

C.           Integration.
Company will not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security, as defined in
Section 2 of the Act, that would be integrated with the offer or sale of the Shares to Investor for purposes of the rules and
regulations of any Trading Market such that it would require stockholder approval prior to the closing of such other transaction
unless stockholder approval is obtained before the closing of such subsequent transaction.

 

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D.           Disclosure
and Publicity. Company will notify Investor prior to issuing any current report, press release, public statement or communication
with respect to the transactions contemplated hereby.

 

E.           Shareholders
Rights Plan. No claim will be made or enforced by Company or, to the knowledge of Company, any other Person that Investor
is an “Acquiring Person” under any shareholders rights plan or similar plan or arrangement in effect or hereafter
adopted by Company, or that Investor could be deemed to trigger the provisions of any such plan or arrangement, in either such
case, by virtue of receiving Shares under the Transaction Documents or under any other agreement between Company and Investor.
Company will conduct its business in a manner so that it will not become subject to the Investment Company Act of 1940, as amended.

 

F.           No
Non-Public Information. Company covenants and agrees that neither it nor any other Person acting on its behalf will, provide
Investor or its agents or counsel with any information that Company believes or reasonably should believe will constitute material
non-public information after Closing. On and after Closing, neither Investor nor any Affiliate of Investor will have any duty
of trust or confidence that is owed directly, indirectly, or derivatively, to Company or the stockholders of Company, or to any
other Person who is the source of material non-public information regarding Company. Company understands and confirms that Investor
will be relying on the foregoing in effecting transactions in securities of Company, including without limitation sales of the
Shares.

 

    	13

    	 

    

  

G.           Indemnification
of Investor.

 

1.          Obligation
to Indemnify. Subject to the provisions of this Section IV.G, Company will indemnify and hold Investor, its Affiliates,
managers and advisors, and each of their officers, directors, shareholders, partners, employees, representatives, agents and attorneys,
and any person who controls Investor within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (collectively,
“Investor Parties” and each a “Investor Party”), harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, reasonable costs and expenses, including all judgments, amounts paid in settlements, court costs
and reasonable attorneys’ fees and costs of investigation (collectively, “Losses”) that any Investor Party may
suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements
made by Company in this Agreement or in the other Transaction Documents, (b) any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement, Prospectus, Prospectus Supplement, or any information incorporated
by reference therein, or arising out of or based upon any omission or alleged omission 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, or (c) any action
by a creditor or stockholder of Company who is not an Affiliate of an Investor Party, challenging the transactions contemplated
by the Transaction Documents; provided, however, that Company will not be obligated to indemnify any Investor Party for any Losses
finally adjudicated to be caused solely by (i) a false statement of material fact contained within written information provided
by such Investor Party expressly for the purpose of including it in the applicable Registration Statement, Prospectus, Prospectus
Supplement, or (ii) such Investor Party’s unexcused material breach of an express provision of this Agreement or another
Transaction Document.

 

2.          Procedure
for Indemnification. If any action will be brought against an Investor Party in respect of which indemnity may be sought
pursuant to this Agreement, such Investor Party will promptly notify Company in writing, and Company will have the right to assume
the defense thereof with counsel of its own choosing. Investor Parties will have the right to employ separate counsel in any such
action and participate in the defense thereof, but the reasonable fees and expenses of such counsel will be at the expense of Investor
Parties except to the extent that (a) the employment thereof has been specifically authorized by Company in writing, (b) Company
has failed after a reasonable period of time to assume such defense and to employ counsel or (c) in such action there is, in the
reasonable opinion of such separate counsel, a material conflict with respect to the dispute in question on any material issue
between the position of Company and the position of Investor Parties such that it would be inappropriate for one counsel to represent
Company and Investor Parties. Company will not be liable to Investor Parties under this Agreement (i) for any settlement by an
Investor Party effected without Company’s prior written consent, which will not be unreasonably withheld or delayed; or (ii)
to the extent, but only to the extent that a loss, claim, damage or liability is either attributable to Investor’s breach
of any of the representations, warranties, covenants or agreements made by Investor in this Agreement or in the other Transaction
Documents. In no event will the Company be liable for the reasonable fees and expenses for more than one separate firm of attorneys
(plus local counsel as applicable) to represent all Investor Parties.

 

3.          Other
than the liability of Investor to Company for uncured material breach of the express provisions of this Agreement, no Investor
Party will have any liability to Company or any Person asserting claims on behalf of or in right of Company as a result of acquiring
the Shares under this Agreement.

 

    	14

    	 

    

  

H.           Reservation
of Shares. Company will at all times maintain a reserve from its duly authorized Common Stock for issuance pursuant to
the Transaction Documents authorized shares of Common Stock in an amount equal to thrice the number of shares sufficient to immediately
issue all Conversion Shares potentially issuable at such time.

 

I.           Activity
Restrictions. For so long as Investor or any of its Affiliates holds any Shares, except with regard to the Voting Agreements,
neither Investor nor any Affiliate will: (1) vote any shares of Common Stock owned or controlled by it, sign or solicit any proxies,
or seek to advise or influence any Person with respect to any voting securities of Company; (2) engage or participate in any actions,
plans or proposals which relate to or would result in (a) acquiring additional securities of Company, alone or together with any
other Person, which would result in beneficially owning or controlling more than 9.99% of the total outstanding Common Stock or
other voting securities of Company, (b) an extraordinary corporate transaction, such as a merger, reorganization or liquidation,
involving Company or any of its Subsidiaries, (c) a sale or transfer of a material amount of assets of Company or any of its Subsidiaries,
(d) any change in the present board of directors or management of Company, including any plans or proposals to change the number
or term of directors or to fill any existing vacancies on the board, (e) any material change in the present capitalization or
dividend policy of Company, (f) any other material change in Company’s business or corporate structure, including but not
limited to, if Company is a registered closed-end investment company, any plans or proposals to make any changes in its investment
policy for which a vote is required by Section 13 of the Investment Company Act of 1940, (g) changes in Company’s charter,
bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of Company by any Person,
(h) a class of securities of Company being delisted from a national securities exchange or to cease to be authorized to be quoted
in an inter-dealer quotation system of a registered national securities association, (i) a class of equity securities of Company
becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act, or (j) any action, intention, plan
or arrangement similar to any of those enumerated above; or (3) request Company or its directors, officers, employees, agents
or representatives to amend or waive any provision of this section.

 

J.           No
Shorting. Provided no Trigger Event under Sections I.H.(1), (5), (6), (7), (8), or (9) of the Certificate of Designations
has occurred, for so long as Investor holds any Shares, neither Investor nor any of its Affiliates will engage in or effect, directly
or indirectly, any Short Sale of Common Stock. For the avoidance of doubt, selling against delivery of Conversion Shares after
delivery of a Conversion Notice is not a Short Sale. There will be no restriction or limitation of any kind on Investor’s
right or ability to sell or transfer any or all of the Conversion Shares at any time, in its sole and absolute discretion. Investor
may not sell, transfer or assign any Preferred Shares or any of its rights under this Agreement.

 

K.          Stock
Splits. If Company at any time on or after the Effective Date subdivides (by any stock split, stock dividend, recapitalization
or otherwise) or combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of
Common Stock into a greater or lesser number of shares, the share numbers, prices and other amounts set forth in this Agreement,
as in effect immediately prior to such subdivision or combination, will be proportionately reduced or increased, as applicable,
effective at the close of business on the date the subdivision or combination becomes effective.

 

    	15

    	 

    

  

L.           Subsequent
Financings. As long as Investor holds any Preferred Shares, Company will not enter into any agreement that in any way
restricts its ability to enter into any agreement, amendment or waiver with Investor, including without limitation any agreement
to offer, sell or issue to Investor any preferred stock, common stock or other securities of Company. Until six months after Closing,
Company will not enter into any financing that uses a shelf registration or contains registration rights, other than: (a) with
Investor, (b) in connection with a strategic transaction, (c) the sale of Common Stock at a fixed price of $3.50 per share or
greater, or (d) a debt and warrant financing up to $10,000,000 with Hercules Growth Capital or its Affiliates. For the avoidance
of doubt, Company may enter into an unregistered financing of debt or restricted stock with no registration rights.

 

M.          Approval.
Company will use its best efforts to obtain shareholder approval of this Agreement in accordance with the requirements of
NASDAQ Listing Rule 5635(d) or a waiver from NASDAQ of Listing Rule 5635(d) (“Approval”) as soon as practicable after
the Effective Date. Company will not issue any additional shares of Common Stock until after the record date for its next meeting
of stockholders, and will seek Approval by such meeting. Company, its board of directors, and each of its directors will vote
all proxies given to them in favor of Approval.

 

N.           Principal
Market Regulation. Company will not issue any Conversion Shares if the issuance of shares of Common Stock would exceed
the aggregate number of shares of Common Stock the Company may issue upon conversion of Preferred Shares, collectively with certain
additional shares of Common Stock issued or issuable pursuant other Company’s transactions that are aggregated under the
NASDAQ Rules, without breaching Company’s obligations under NASDAQ Listing Rule 5635(d), except that such limitation will
not apply (1) following Approval or (2) if Investor or Company obtains a written opinion from counsel that such Approval is not
required.

 

O.           Restrictive
Legend. The Shares have not been registered under the Act and may not be resold in the United States unless registered
or an exemption from registration is available. Company is required to refuse to register any transfer of the Shares not made
pursuant to registration under the Act or an available exemption from registration. Upon the issuance thereof, and only until
such time as the same is no longer required under the applicable securities laws and regulations, the certificates representing
any of the Shares will bear a legend in substantially the following form:

 

THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED
OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT OR AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE ACT. IN
ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED unless in
compliance with the ACT.

 

    	16

    	 

    

  

Share certificates will be issued without such
legend or at Investor’s option issue electronic delivery at the applicable balance account at DTC, if either (i) the Shares
are registered for resale under the Act, or (ii) Investor provides an opinion of its counsel to the effect that the Shares may
be issued without restrictive legend.

 

V.          Registration Statement. 

 

A.           Filing.

 

1.          Company
will at its sole cost and expense prepare and file with the Commission as promptly as practicable after the Effective Date, and
in any event within 30 days, a Registration Statement on Form S-3 (“Registration Statement”) registering the
delayed and continuous resale of all Conversion Shares pursuant to Rule 415 under the Act, and will use reasonable best efforts
to cause such Registration Statement to be declared effective under the Act as promptly as practicable, and to remain continuously
effective until all Conversion Shares may be resold by Investor pursuant to Rule 144 without volume restrictions, manner-of-sale
restrictions, or Company being in compliance with any current public information requirement (the “Registration Period”).

 

2.          If
Company breaches its obligations under the preceding paragraph, and Company is not thereafter eligible to register for resale the
Conversion Shares on Form S-3, it shall file a Registration Statement on Form S-1, but such obligation and filing shall not operate
to cure or excuse such breach. If at any after the initial registration Statement is filed on Form S-3, the Registration Statement
may not remain effective on Form S-3, Company shall use reasonable best efforts to amend the Registration Statement on Form S-1.

 

B.           Procedures.
In connection with the Registration Statement, Company will, as soon as reasonably practicable:

 

1.          Prepare
and file with the Commission such pre-effective and post-effective amendments and supplements to the Registration Statement and
the Prospectus used in connection with the Registration Statement, and file such reports under the Exchange Act, as may be necessary
to cause the Registration Statement to become effective, to keep the Registration Statement continuously effective during the Registration
Period and not misleading, and as may otherwise be required or applicable under, and to comply with the provisions of, the Act
with respect to the disposition of all Conversion Shares covered by the Registration Statement during the Registration Period.

 

2.          Furnish
to Investor such number of copies of the Prospectus, and each amendment or supplement thereto, in conformity with the requirements
of the Act, and such other documents as Investor may reasonably request in order to facilitate the disposition of Conversion Shares
owned by it.

 

    	17

    	 

    

  

3.          Notify
Investor: (a) when a Prospectus or any Prospectus supplement or post-effective amendment is proposed to be filed and, with respect
to any post-effective amendment, when the same has become effective, except for any filing to be made solely to incorporate by
reference a Current Report on Form 8-K, Quarterly Report on Form 10-Q or Annual Report on Form 10-K to be filed with the Commission;
(b) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration
Statement or a Prospectus or for additional information; (c) of the issuance by the Commission of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings for that purpose; (d) of the receipt by the Company
of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Conversion
Shares for sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose, and (e) of the occurrence
of any event or circumstance that makes any statement made in the Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in
the Registration Statement, Prospectus or documents so that, in the case of a Registration Statement or the Prospectus, as the
case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;
provided, however, in no event shall any such notice contain any information which would constitute material, non-public information
regarding the Company.

 

4.          Use
reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of, any order suspending the effectiveness
of the Registration Statement, or the lifting of any suspension of the qualification, or exemption from qualification, of any of
the Conversion Shares for sale in any jurisdiction, at the earliest practicable moment.

 

5.          Incorporate
in a Prospectus supplement or post-effective amendment such information as Investor requests be included therein regarding Investor
or the plan of distribution of the Conversion Shares; and make all required filings of the Prospectus supplement or such post-effective
amendment as soon as practicable after the Company has received notification of such matters to be incorporated in such Prospectus
supplement or post-effective amendment; provided, however, that the Company shall not be required to take any action pursuant to
this paragraph that would violate applicable law.

 

6.          Whenever
necessary, prepare and deliver to Investor any required supplement or amendment, including a post-effective amendment, to the Registration
Statement or a supplement to the Prospectus or any document incorporated or deemed to be incorporated therein by reference, and
file any other required document, including such reports as may be required to be filed under the Exchange Act, so that, as thereafter
delivered, the Prospectus 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 statements therein, in light of the circumstances under which they were made, not misleading.

 

7.          Use
reasonable best efforts to cause all Conversion Shares to be listed on the Trading Market or such other securities exchange or
automated quotation system, if any, as is then the principal securities exchange or automated quotation system on which the Common
Stock is then listed.

 

    	18

    	 

    

  

8.          Fully
cooperate with the Transfer Agent, Investor and its brokers to facilitate the timely clearing and delivery of Conversion Shares
to be sold pursuant to the Registration Statement free of any restrictive legends and in such denominations and registered in such
names as Investor may reasonably request, including timely completion and delivery of all forms, documents and instruments requested
by the Transfer Agent or any broker.

 

VI.         General
Provisions.

 

A.           Notice.
Unless a different time of day or method of delivery is specifically provided in the Transaction Documents, any and all notices
or other communications or deliveries required or permitted to be provided hereunder will be in writing and will be deemed given
and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile or
electronic mail prior to 5:00 p.m. Eastern time on a Trading Day and an electronic confirmation of delivery is received by the
sender, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered later than 5:00
p.m. Eastern time or on a day that is not a Trading Day, (c) the next Trading Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be
given. The addresses for such notices and communications are such other address as may be designated in writing, in the same manner,
by such Person.

 

B.           Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of
an amendment, by Company and Investor or, in the case of a waiver, by the party against whom enforcement of any such waiver is
sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement will be deemed to be
a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement
hereof, nor will any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any
such right.

 

C.           No
Third-Party Beneficiaries. Except as otherwise set forth in Section IV.G, this Agreement and the Transaction Documents
will inure solely to the benefit of the parties hereto, and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person. A Person who is not a party to this Agreement shall not have any rights under the Contracts (Rights of Third
Parties) Law, 2014 of the Cayman Islands to enforce any term of this Agreement or any Transaction Document.

 

D.           Fees
and Expenses. Company has paid a flat rate documentation fee to Investor’s counsel incurred in connection with drafting
this Agreement and the other Transaction Documents. Except as otherwise provided in this Agreement, each party will pay the fees
and expenses of its own advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of the Transaction Documents. Company acknowledges
and agrees that Investor’s counsel solely represents Investor, and does not represent Company or its interests in connection
with the Transaction Documents or the transactions contemplated thereby. Company will pay all stamp and other taxes and duties,
if any, levied in connection with the sale or issuance of the Shares to Investor.

 

    	19

    	 

    

  

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

 

F.           Replacement
of Certificates. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, Company
will issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to Company of such loss,
theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument
under such circumstances will also pay any reasonable third-party costs associated with the issuance of such replacement certificates.

 

G.           Governing
Law. All matters between the parties, including without limitation questions concerning the construction, validity, enforcement
and interpretation of the Transaction Documents will be governed by and construed and enforced in accordance with the laws of
the Cayman Islands, without regard to the principles of conflicts of law that would require or permit the application of the laws
of any other jurisdiction, except for corporation law matters applicable to Company which will be governed by the corporate law
of its jurisdiction of formation. The parties hereby waive all rights to a trial by jury. In any action, arbitration or proceeding,
including appeal, arising out of or relating to any of the Transaction Documents or otherwise involving the parties, the prevailing
party will be awarded its reasonable attorneys’ fees and other costs and expenses reasonably incurred in connection with
the investigation, preparation, prosecution or defense of such action or proceeding.

 

H.           Arbitration.
Any dispute, controversy, claim or action of any kind arising out of, relating to, or in connection with this Agreement, or
in any way involving Company and Investor or their respective Affiliates, including any issues of arbitrability, will be resolved
solely by final and binding arbitration in English before a retired judge at JAMS International, or its successor, in the Territory
of the Virgin Islands, pursuant to the most expedited and Streamlined Arbitration Rules and Procedures available. Any interim
or final award may be entered and enforced by any court of competent jurisdiction. The final award will include the prevailing
party’s reasonable arbitration, expert witness and attorney fees, costs and expenses.

 

I.           Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
Investor and Company will be entitled to specific performance under the Transaction Documents, and equitable and injunctive relief
to prevent any actual or threatened breach under the Transaction Documents, to the full extent permitted under applicable laws.

 

J.           Payment
Set Aside. To the extent that Company makes a payment or payments to Investor pursuant to any Transaction Document or
Investor enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise
or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged
by or are required to be refunded, repaid or otherwise restored to Company, a trustee, receiver or any other person under any
law, including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action, then to
the extent of any such restoration the obligation or part thereof originally intended to be satisfied will be revived and continued
in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

    	20

    	 

    

  

K.          Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and will not be deemed to limit or affect
any of the provisions hereof

 

L.           Time
of the Essence. Time is of the essence with respect to all provisions of this Agreement.

 

M.           Survival.
The representations and warranties contained herein will survive the Closing and the delivery of the Shares until all Preferred
Shares issued to Investor have been converted or redeemed.

 

N.           Construction.
The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party will not be employed in the interpretation of the Transaction Documents or any amendments hereto. The language used in this
Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction
will be applied against any party. All currency references in any Transaction Document are to U.S. dollars.

 

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

 

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P.           Entire
Agreement. This Agreement, including the Exhibits hereto, which are hereby incorporated herein by reference, contains
the entire agreement and understanding of the parties, and supersedes all prior and contemporaneous agreements, term sheets, letters,
discussions, communications and understandings, both oral and written, which the parties acknowledge have been merged into this
Agreement. No party, representative, advisor, attorney or agent has relied upon any collateral contract, agreement, assurance,
promise, understanding, statement or representation not expressly set forth herein. The parties hereby absolutely, unconditionally
and irrevocably waive all rights and remedies, at law and in equity, directly or indirectly arising out of or relating to, or
which may arise as a result of, any Person’s reliance on any such statement or assurance.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their respective authorized signatories on the Effective Date.

 

	Company:	 
	 	 
	IMMUNE PHARMACEUTICALS INC.	 
	 	 	 
	By:	/s/ Daniel G. Teper	 	 
	Name:	Daniel G. Teper	 	 
	Title:	Chief Executive Officer	 	 

 

	By:	/s/ Gad Berdugo	 	 
	Name:	Gad Berdugo	 	 
	Title:	Chief Financial Officer –	 	 
	 	Executive VP Finance and Administration	 	 
	 	 	 

 

	Investor:	 
	 	 
	/s/ Discover Growth Fund	 	 
	Investor Name 	 	 
	 	 	 

 

	By:	/s/ Miles Walton 	 
	Name:	Miles Walton	 
	Title:	on behalf of Osiris Management Services Ltd., Director 	 
	 	 	 
	By:	/s/ Stacey Olson	 
	Name:	Stacey Olson	 
	Title:	on behalf of Osiris Management Services Ltd., Director 	 

  

    	22Exhibit 10.4

 

Form of Voting Agreement

 

VOTING AGREEMENT

 

This Voting Agreement (“Agreement”)
is made and entered into on July __, 2015 (“Effective Date”), by and between the stockholder (“Stockholder”)
of Immune Pharmaceuticals Inc., a Delaware corporation (“Company”) whose name appears on the signature page
hereto, and the investor (“Investor”) in Company whose name appears on the signature page hereto.

 

Recitals

 

A.           Company
and Investor are entering into a Stock Purchase Agreement (“Stock Purchase Agreement”), pursuant to which, upon
the terms and subject to the conditions thereof, Investor will purchase shares of Company’s Preferred Stock. Capitalized
terms used but not defined in this Agreement will have the meanings ascribed to them in the Stock Purchase Agreement. The transactions
contemplated by the Stock Purchase Agreement are sometimes referred to as the “Transactions”).

 

B.           Stockholder
beneficially owns the number of shares of Common Stock (“Owned Shares”) set forth on the signature page hereto
(all Owned Shares and, together with all Common Stock now or hereafter beneficially owned by Stockholder or of which Stockholder
acquires beneficial ownership after the Effective Date and prior to the termination hereof, whether by purchase or upon exercise
of options, warrants, conversion of other convertible securities or otherwise, are collectively referred to herein as “Covered
Shares”).

 

C.           Stockholder
acknowledge that Closing is contingent on Investor entering into this Agreement, Investor is Closing the Transactions in reliance
on the representations, warranties, covenants and other agreements of Stockholder set forth in this Agreement, and Investor would
not proceed with Closing if Stockholder did not enter into this Agreement.

 

Agreement

 

In consideration of the
foregoing, the receipt and adequacy of which are hereby acknowledged, Stockholder and Investor agree as follows:

 

I.           Agreement
to Vote.

 

A.           Prior
to termination of this Agreement, Stockholder hereby absolutely, unconditionally and irrevocably agrees that it will, and will
cause any other holder of record of any Covered Shares to, at any meeting of stockholders of Company (whether annual or special
and whether or not an adjourned or postponed meeting), however called, or in any action by written consent of stockholders of
Company:

 

1.          when
a meeting is held, appear at such meeting or otherwise cause the Covered Shares to be counted as present thereat for the purpose
of establishing a quorum; and

 

    	 

    	 

    

  

2.          vote
(or cause to be voted) in person or by proxy all Covered Shares (a) in favor of the approval of the Stock Purchase Agreement, the
Transactions and the issuance of the Shares to Investor, and (b) against any proposal, action or transaction involving Company,
which proposal, action or transaction would impede, frustrate, prevent or materially delay the consummation of the Transactions,
including the sale and issuance of Shares to Investor.

 

B.           Directors
or Officers. Nothing in this Agreement will limit or restrict Stockholder from (1) acting in Stockholder’s capacity
as a director or officer of the Company, to the extent applicable, it being understood that this Agreement shall apply to Stockholder
in Stockholder’s capacity as a stockholder of the Company, or (2) voting in Stockholder’s sole discretion on any matter
other than matters referred to in Section I.A.

 

C.           Irrevocable
Proxy. Concurrently with the execution and delivery of this Agreement, Stockholder will deliver to Company a duly executed
proxy in the form attached hereto as Exhibit A (“Proxy”), which Proxy is coupled with an interest sufficient
in law to support an irrevocable proxy, and, until termination of this Agreement, will be irrevocable to the fullest extent permitted
by law, with respect to each and every meeting of stockholders of Company or action or approval by written resolution or consent
of stockholders of Company with respect to the matters contemplated by Section I.A covering the total number of Covered
Shares in respect of which Stockholder is entitled to vote at any such meeting or in connection with any such written consent.
Upon the execution of this Agreement by Stockholder, (1) Stockholder hereby revokes any and all prior proxies (other than the Proxy)
given by Stockholder with respect to the subject matter contemplated by Section I.A, and (2) Stockholder will not grant
any subsequent proxies with respect to such subject matter, or enter into any agreement or understanding with any person to vote
or give instructions with respect to the Covered Shares in any manner inconsistent with the terms of Section I.A, until
after termination.

 

D.           No
Lawsuits. Stockholder will not in Stockholder’s capacity as a stockholder of the Company bring, commence, institute,
maintain, prosecute or voluntary aid any action, claim, suit or cause of action, in law or in equity, in any court or before any
governmental entity, which (1) challenges the validity or seeks to enjoin the operation of any provision of this Agreement or (2)
alleges that the execution and delivery of this Agreement by Stockholder, either alone or together with other Company voting agreements
and proxies to be delivered in connection with the Stock Purchase Agreement, or the adoption and approval of the Transaction by
Company’s board of directors, breaches any fiduciary duty of the board or any member thereof.

 

E.           No
Transfer. Unless the transferee first agrees in writing to be bound by the terms of this Agreement and executes a Proxy,
Stockholder will not, directly or indirectly, transfer (except as may be specifically required by court order or by operation of
law), grant an option with respect to, sell, exchange, pledge or otherwise dispose of, reduce its economic risk in, or encumber,
the Covered Shares prior to termination of this Agreement. Except pursuant to the terms of this Agreement, Stockholder will not,
directly or indirectly, grant any proxies or powers of attorney with respect to any Covered Shares, deposit any Covered Shares
into a voting trust, or enter into a voting agreement or similar arrangement or commitment with respect to any Covered Shares or
make any public announcement that is in any manner inconsistent with this Agreement. Stockholder will not, in its capacity as a
stockholder of the Company, directly or indirectly, take any action that would make any representation or warranty contained herein
untrue or incorrect or be reasonably expected to have the effect of impairing the ability of Stockholder to perform its obligations
under this Agreement or preventing or delaying the consummation of any of the transactions contemplated hereby.

 

    	 

    	 

    

  

F.           No
Other Restriction. Except as set forth in Section I.A. above, Stockholder will not be restricted from voting in
favor of, against or abstaining with respect to any matter presented to the stockholders of Company.

 

II.          Termination.
 This Agreement will terminate only when Approval is obtained.

 

III.         Representations
and Warranties.

 

A.           Representations
and Warranties of Investor. Investor hereby represents and warrants to Stockholder as follows:

 

1.          Organization;
Authority. Investor is an entity validly existing and in good standing under the laws of the jurisdiction of its organization
with full right, company power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations thereunder. The execution, delivery and performance by Investor of the transactions
contemplated by this Agreement have been duly authorized by all necessary company or similar action on the part of Investor. Each
Transaction Document to which it is a party has been, or will be, duly executed by Investor, and when delivered by Investor in
accordance with the terms hereof, will constitute the valid and legally binding obligation of Investor, enforceable against it
in accordance with its terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (b) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (c) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

2.          Consents;
No Conflicts. Except for the applicable requirements of the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated by the U.S. Securities and Exchange Commission thereunder (collectively, “Exchange Act”),
the execution, delivery and performance by Investor of this Agreement do not and will not (a) require any consent, approval, authorization
or other order of, action by, filing with, or notification to, any governmental authority, (b) violate, conflict with or result
in the breach of any provision of the organizational documents of the Investor, (c) conflict with or violate any law or governmental
order applicable to Investor or its assets, properties or businesses or (d) conflict with, result in any breach of, constitute
a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent
under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, any note,
bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement
to which Investor is a party, except, in the case of clauses (c) and (d), as would not materially and adversely affect the ability
of the Investor to carry out its obligations under, and to consummate the transactions contemplated by, this Agreement.

 

    	 

    	 

    

  

B.           Representations
and Warranties of Stockholder. Stockholder hereby represents and warrants to Investor as follows:

 

1.          Organization;
Authority. Stockholder is a natural person or an entity validly existing and in good standing under the laws of the jurisdiction
of its organization with full right, power and authority to enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its obligations thereunder. The execution, delivery and performance by Stockholder of the
transactions contemplated by this Agreement have been duly authorized by all necessary company or similar action on the part of
Investor. Each Transaction Document to which it is a party has been, or will be, duly executed by Stockholder, and when delivered
by Stockholder in accordance with the terms hereof, will constitute the valid and legally binding obligation of Investor, enforceable
against it in accordance with its terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (b)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (c)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

2.          Consents;
No Conflicts. Except for the applicable requirements of the Exchange Act, the execution, delivery and performance by Stockholder
of this Agreement do not and will not (a) require any consent, approval, authorization or other order of, action by, filing with,
or notification to, any governmental authority, (b) violate, conflict with or result in the breach of any provision of the organizational
documents of the Investor, (c) conflict with or violate any law or governmental order applicable to Stockholder or its assets,
properties or businesses or (d) conflict with, result in any breach of, constitute a default (or event which with the giving of
notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights of termination,
amendment, acceleration, suspension, revocation or cancellation of, any note, bond, mortgage or indenture, contract, agreement,
lease, sublease, license, permit, franchise or other instrument or arrangement to which Stockholder is a party, except, in the
case of clauses (c) and (d), as would not materially and adversely affect the ability of the Investor to carry out its obligations
under, and to consummate the transactions contemplated by, this Agreement.

 

3.          Ownership
of Shares. As of the Effective Date, Stockholder is the record and/or beneficial owner of, and has sole voting power and
sole power of disposition with respect to the Owned Shares free and clear of liens, proxies, powers of attorney, voting trusts
or agreements (other than any Lien or proxy created by this Agreement or pursuant to any pledge in existence as of the date hereof,
which would not materially and adversely affect the ability of the Stockholder to carry out the Stockholder’s obligations
under, and to consummate the transactions contemplated by, this Agreement). As used in this Agreement, the terms “beneficial
owner,” “beneficial ownership,” “beneficially owns” or “owns beneficially,” with respect
to any securities, refer to the beneficial ownership of such securities as determined under Rule 13d-3(a) of the Exchange Act.
The Covered Shares are and will be at all times up until termination of this Agreement be free and clear of any security interests,
liens, claims, pledges, options, rights of first refusal, co-sale rights, agreements, limitations on Stockholder’s voting
rights, charges and other encumbrances of any nature that would adversely affect the Transaction or the exercise or fulfillment
of the rights and obligations of Stockholder under this Agreement or of the parties to this Agreement. Stockholder’s principal
residence or place of business is set forth on the signature page hereto.

 

    	 

    	 

    

  

IV.          General
Provisions.

 

A.           Further
Assurances. From time to time, at another party’s request and without further consideration, each party hereto will
take such reasonable further action as may reasonably be necessary or desirable to consummate and make effective the transactions
contemplated by this Agreement, including without limitation execution of any broker proxy card or broker instruction.

 

B.           Governing
Law. This Agreement will be governed by, and construed in accordance with, the laws of the State of Delaware. All actions
and proceedings arising out of or relating to this Agreement will be heard and determined exclusively in any Delaware state or
federal court, in each case sitting in City of Wilmington, New Castle County. The parties hereto hereby (1) submit to the exclusive
jurisdiction of such courts for the purpose of any action arising out of or relating to this Agreement brought by any party hereto,
and (2) irrevocably waive, and agree not to assert by way of motion, defense or otherwise, in any such action, any claim that it
is not subject personally to the jurisdiction of such courts, that the action is brought in an inconvenient forum, the venue of
the action is improper, or this Agreement may not be enforced in or by any of the above-named courts.

 

C.           Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of
an amendment, by Stockholder and Investor or, in the case of a waiver, by the party against whom enforcement of any such waiver
is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement will be deemed to
be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement
hereof, nor will any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any
such right.

 

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

 

E.           Specific
Performance; Injunctive Relief. The parties hereto acknowledge that Investor will be irreparably harmed and that there
will be no adequate remedy at law for a violation of any of the covenants or agreements of Stockholder set forth herein or in
the Proxy. Therefore, in addition to any other remedies that may be available to Investor upon any violation of this Agreement
or the Proxy, Investor shall have the right to enforce such covenants and agreements and the Proxy by specific performance, injunctive
relief or by any other means available to Investor at law or in equity and Stockholder hereby waives any and all defenses that
could exist in its favor in connection with such enforcement and waives any requirement for the security or posting of any bond
in connection with such enforcement.

 

    	 

    	 

    

 

F.           Construction.
The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise this Agreement
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party
will not be employed in the interpretation of this Agreement or any amendments hereto. The language used in this Agreement will
be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be
applied against any party. The headings herein are for convenience only, do not constitute a part of this Agreement and will not
be deemed to limit or affect any of the provisions hereof

 

G.           Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together will be considered one and the
same agreement. Any signature delivered by portable document format, facsimile or electronic transmission will create a valid
and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as
if such signature page were an original thereof.

 

    	 

    	 

    

  

H.           Entire
Agreement. This Agreement, including the recitals hereto which are hereby incorporated herein by reference, contains the
entire agreement and understanding of the parties, and supersedes all prior and contemporaneous agreements, term sheets, letters,
discussions, communications and understandings, both oral and written, which the parties acknowledge have been merged into this
Agreement. No party, representative, advisor, attorney or agent has relied upon any collateral contract, agreement, assurance,
promise, understanding, statement or representation not expressly set forth herein. The parties hereby absolutely, unconditionally
and irrevocably waive all rights and remedies, at law and in equity, directly or indirectly arising out of or relating to, or
which may arise as a result of, any person’s reliance on any such statement or assurance.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their respective authorized signatories on the Effective Date.

 

Stockholder:

 

	 	 	 
	Stockholder Name	 	Number of Owned Shares
	 	 	 	 
	By: 	 	 	 
	Name: 	 	 	 
	Title: 	 	 	 
	 	 	 	Stockholder Address
	Investor:	 	 	 
	 	 	 	 
	 	 	 
	Investor Name	 
	 	 	 	 
	By: 	 	 	 
	Name: 	 	 	 
	Title:

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