Document:

Exhibit 4.5

 

SUBSCRIPTION
AGREEMENT

 

AmpliPhi Biosciences Corporation

4870 Sadler Road, Suite 300

Glen Allen, Virginia 23060

Attn: Philip Young

 

Ladies and
Gentlemen:

 

sECTION
1.         Issuance
of Common Stock.

 

1.1           Stock
Subscription. The undersigned (the “Purchaser”), intending to be legally bound, hereby irrevocably agrees
to purchase from AmpliPhi Biosciences Corporation, a Washington corporation (the “Company”), such number of
shares of the Company’s Common Stock (“Common Stock”) set forth opposite such Purchaser’s name
on Exhibit A (all of the shares of Common being purchased in the Offering being referred to herein as the “Shares”)
for a purchase price per share of $0.25 (the “Purchase Price”) for the aggregate consideration set forth on
Exhibit A hereof (the “Subscription Amount”).

 

1.2           Offering.
This subscription is submitted to you in accordance with and subject to the terms and conditions described in this Subscription
Agreement (this “Agreement”). The Company is offering (the “Offering”) an aggregate of 72,003,000
shares of Common Stock.

 

1.3           Payment.
The Purchaser may purchase the Shares with cash or other immediately available funds equal to the Subscription Amount. In order
to complete the Purchaser’s subscription hereunder, the Purchaser shall deliver a completed and executed Signature Page
to this Subscription Agreement together with a check for, or wire transfer of, the Subscription Amount.

 

sECTION
2.         Closing.

 

The
closing of the purchase and sale of Shares hereunder (the “Closing”) shall be held as soon as practicable after
the date of this Agreement, and in any event within five business days of the date of this Agreement, with the exception of Phillip
Asset Management Limited, who shall wire funds no later than December ___, 2013, at such place as is mutually agreeable to the
Company and each Purchaser identified on Exhibit A hereto (the “Closing Date”). At the Closing:

 

(a)          Each
Purchaser, severally and not jointly, shall wire funds in the amount set forth opposite such Purchaser’s name on Exhibit
A directly to the Company’s account in accordance with the wire instructions below; and

 

(b)          the
Company shall deliver a certificate representing the applicable number of Shares to Purchaser.

 

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sECTION
3.         Representations and Warranties
of the Company. 

 

Except
as set forth in the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation
or otherwise made herein to the extent of the disclosure contained in the corresponding Section of the Disclosure Schedules, the
Company hereby represents, warrants and covenants to each Purchaser that:

 

3.1           Organization,
Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws
of the State of Washington and has the requisite corporate power to own, lease and operate its properties and assets and to conduct
its business as it is now being conducted. The Company does not have any subsidiaries other than Special Phage Holdings Pty Ltd.
and Biocontrol Ltd. The Company is qualified to do business as a foreign corporation and is in good standing in every jurisdiction
in which the nature of the business conducted or property owned by it makes such qualification necessary, except for any jurisdiction(s)
(alone or in the aggregate) in which the failure to be so qualified will not have a Material Adverse Effect. For the purposes
of this Agreement, “Material Adverse Effect” means any effect on the business, operations, properties or financial
condition of the Company that is material and adverse to the Company, taken as a whole, and any condition, circumstance or situation
that would prohibit the Company from entering into and performing any of its obligations hereunder.

 

3.2           Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and perform this Agreement and to issue
and sell the shares in accordance with the terms hereof. The execution, delivery and performance of this Agreement by the Company
and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate
action, and no further consent or authorization of the Company, its board of directors or stockholders is required. When executed
and delivered by the Company, this Agreement shall constitute a valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, reorganization,
moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of,
creditor’s rights and remedies or by other equitable principles of general application. The Company’s board of directors,
at a meeting duly called and held, adopted resolutions approving the transactions contemplated hereby.

 

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		3.3	Capitalization.

 

(a)          The
authorized capital stock of the Company consists of 445,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock.
As of November 15, 2013 (1) 110,528,505 shares of Common Stock were issued and outstanding, (2) 8,859,978 shares Series B Preferred
Stock were issued and outstanding, which were convertible into 88,599,780 shares of Common Stock, (3) no shares of Common Stock
are held by the Company in its treasury, (4) 12,000,000 shares of Common Stock were held in escrow pursuant to the terms of share
purchase and escrow agreements between the Company and Special Phage Holdings Pty Ltd., (5) 38,425,745 shares of Common Stock
were reserved for issuance pursuant to warrants (the “Existing Warrants”), and (6) 25,555,000 shares
were reserved for issuance pursuant to stock options issued under the Company’s current stock option plans (the “Stock
Options”), and (7) 9,353,323 shares remained available for issuance under the Company’s current stock option plans.
Except for the foregoing Common Stock, Preferred Stock, the Existing Warrants, the SPH Shares, the Intrexon Shares, the Stock
Options, and as disclosed in Schedule 3.3(a), as of the date hereof, no shares of capital stock or other equity or voting securities
of Company are issued, reserved for issuance or outstanding and there exist no outstanding options to purchase shares of the Common
Stock, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally
or in writing, to purchase or otherwise acquire from the Company any shares of capital stock or any securities convertible into
or exchangeable for shares of Company capital stock. All outstanding shares of capital stock and other equity or voting securities
of the Company (including the Existing Warrants, SPH Shares and Stock Options) are, and all shares which may be issued pursuant
thereto will be, when issued in accordance with the terms and conditions of their authorizing documents, duly authorized, validly
issued, fully paid and non-assessable and not subject to or issued in violation of any preemptive right, purchase option, call
option, right of first refusal, preemptive right, subscription right or any similar right. Other than the shares of Series B Preferred
Stock, there are no outstanding bonds, debentures, notes or other indebtedness or securities of the Company having the right to
vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which any Company stockholder
may vote. All of the issued and outstanding shares of Company capital stock were offered, issued, sold and delivered by the Company
in compliance with all applicable state and federal laws concerning the issuance of securities. Further, none of such shares were
issued in violation of any preemptive rights. There are no securities or instruments issued by or to which the Company is a party
containing anti-dilution or similar provisions that will be triggered by the issuance of the Shares.

 

(b)          There
are no outstanding rights, commitments or contracts of any kind obligating the Company to repurchase, redeem or otherwise acquire
any shares of capital stock or other equity or voting securities of the Company. As of the date hereof, other than the Intrexon
Agreement and the Subscription Agreement dated June 26, 2013, between the Company and the holder of the Company’s Series
B Preferred Stock, there are no Contracts of any character (contingent or otherwise) pursuant to which any person is or may be
entitled to cause the Company to file a registration statement under the Securities Act, or which otherwise relate to the registration
of any securities of the Company. Other than under the Intrexon Agreement and as set forth on Schedule 3.3(b), there are no voting
trusts, proxies, anti-takeover plans or other contracts of any character to which the Company is a party or by which it is bound
or to which any of the Company’s stockholders is a party or by which any of them is bound, in each case, with respect to
the issuance, holding, acquisition, voting or disposition of any shares of capital stock of the Company. Other than as set forth
on Schedule 3.3(b), the Company does not own, directly or indirectly, any capital stock, security or other ownership or equity
interest in any entity.

 

(c)          The
shares to be issued and sold hereunder have been duly authorized by all necessary corporate action and, when paid for and issued
in accordance with the terms hereof, will be validly issued, fully paid and nonassessable. In addition, such shares will be free
and clear of all liens, claims, charges, security interests or agreements, pledges, assignments, covenants, restrictions or other
encumbrances created by, or imposed by, the Company (collectively, “Encumbrances”) and rights of refusal of
any kind imposed by the Company (other than restrictions on transfer under applicable securities laws) and the holder of such
shares shall be entitled to all rights accorded to a holder of Common Stock.

 

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3.4           No
Conflicts; Governmental Approvals. The execution, delivery and performance of the Agreement by the Company and the consummation
by the Company of the transactions contemplated hereby do not and will not (i) violate any provision of the Company’s Articles
of Incorporation or Bylaws, each as amended to date, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation
to which the Company is a party or by which the Company’s properties or assets are bound, or (iii) result in a violation
of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected, except
for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually
or in the aggregate, have a Material Adverse Effect. The Company is not required under federal, state, foreign or local law, rule
or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations under this Agreement or issue and sell the shares
in accordance with the terms hereof (other than any filings, consents and approvals which may be required to be made by the Company
under applicable state and federal securities laws, rules or regulations prior to or subsequent to the Closing).

 

3.5           Financial
Statements. For purposes of this Agreement, “Financial Statements” means the audited balance sheet of the
Company as of December 31, 2012, the audited statement of income and retained earnings and unaudited statement of cash flows of
the Company for the year ended on the Financial Statement Date, and the unaudited balance sheet, statement of income and retained
earnings, and statement of cash flows of the Company for the nine-month period ended September 30, 2013 (the “Financial
Statement Date”). An accurate copy of the Financial Statements has been provided to Purchaser. Such Financial Statements
fairly present in all material respects the financial position of the Company as of the dates thereof and the results of operations
and cash flows for the periods then ended (subject to normal year-end adjustments). Such Financial Statements were prepared in
accordance with generally accepted accounting principles. Since the Financial Statement Date, the Company has not incurred any
liabilities or obligations (whether absolute, accrued, fixed, contingent, liquidated, unliquidated or otherwise and whether due
or to become due) of any nature, except liabilities, obligations or contingencies (i) which were incurred after the Financial
Statement Date in the ordinary course of business consistent with past practices under any contract, commitment or agreement specifically
disclosed in the Schedules or not required to be disclosed thereon because of the term or amount involved or otherwise, (ii) which
were incurred as a result of the transactions described herein, or (iii) which would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect on the Company. The Company has timely filed all forms, reports and other documents
material to the business of the Company required to be filed prior to the date hereof with any governmental authority.

 

3.6           Internal
Controls. The Company has established and maintains a system of internal accounting controls sufficient to provide reasonable
assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
in the United States and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

 

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3.7           No
Material Adverse Change. Except as disclosed in Schedule 3.7, since the Financial Statement Date, the Company has not (i)
experienced or suffered any Material Adverse Effect, (ii) incurred any material liabilities, obligations, claims or losses (whether
liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) other than those incurred in the
ordinary course of the Company’s business or (iii) declared, made or paid any dividend or distribution of any kind on its
capital stock.

 

3.8           Litigation.
No action, suit, proceeding or investigation is currently pending or, to the knowledge of the Company, has been threatened in
writing against the Company that: (i) concerns or questions the validity of this Agreement; (ii) concerns or questions the right
of the Company to enter into this Agreement; or (iii) is reasonably likely to have a Material Adverse Effect. The Company is neither
a party to nor subject to the provisions of any material order, writ, injunction, judgment or decree of any court or government
agency or instrumentality. There is no action, suit, proceeding or investigation by the Company currently pending or that the
Company intends to initiate that would have a Material Adverse Effect.

 

3.9           Compliance.
Except for defaults or violations which are not reasonably likely to have a Material Adverse Effect, the Company (i) is not in
default under or in 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 the Company under), nor has the Company received notice of a claim that it is in default under or
that it is in violation of, any indenture, loan or credit agreement or any other 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), (ii) is not in violation
of any order of any court, arbitrator or governmental body, or (iii) is not or has not 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.

 

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		3.10	Intellectual
                                         Property

 

(a)          The
Company has entered into agreements with each of its current and former officers, employees and consultants involved in research
and development work, including development of the Company’s products and technology providing the Company, to the extent
permitted by law, with title and ownership to patents, patent applications, trade secrets and inventions conceived, developed,
reduced to practice by such person, solely or jointly with other of such persons, during the period of employment by the Company,
except where the failure to have entered into such an agreement would not have a Material Adverse Effect. The Company is not aware
that any of its employees or consultants is in material violation thereof.

 

(b)          To
the Company’s knowledge, the Company owns or possesses adequate rights to use all, if any, trademarks, service marks, trade
names, domain names, copyrights, patents, patent applications, inventions, know how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or procedures), and other intellectual property rights (“Intellectual
Property”) as are necessary for the conduct of its business. In addition, (i) to the knowledge of the Company, there
is no infringement, misappropriation or violation by third parties of any such Intellectual Property; (ii) there is no pending
or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others against the Company challenging the
Company’s rights in or to any such Intellectual Property; (iii) the Intellectual Property owned by the Company and,
to the knowledge of the Company, the Intellectual Property licensed to the Company has not been adjudged invalid or unenforceable
by a court of competent jurisdiction or applicable government agency, in whole or in part, and there is no pending or, to the
knowledge of the Company, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such
Intellectual Property; (iv) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim
by others against the Company that the Company infringes, misappropriates or otherwise violates any Intellectual Property or other
proprietary rights of others, and the Company has not received any written notice of such claim; and (v) to the Company’s
knowledge, no employee of the Company is the subject of any claim or proceeding involving a violation of any term of any employment
contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement,
nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to
such employee’s employment with the Company or actions undertaken by the employee while employed with the Company.

 

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		3.11	FDA
                                         Compliance.

 

(a)          The
Company: (i) is in material compliance with all statutes, rules or regulations applicable to the ownership, testing, development,
manufacture, packaging, processing, use, distribution, marketing, labeling, promotion, sale, offer for sale, storage, import,
export or disposal of any product that is under development, manufactured or distributed by the Company (“Applicable
Laws”); (ii) has not received any FDA Form 483, notice of adverse finding, warning letter, untitled letter or other
correspondence or notice from the U.S. Food and Drug Administration (the “FDA”) or any other federal, state,
local or foreign governmental or regulatory authority alleging or asserting material noncompliance with any Applicable Laws or
any licenses, certificates, approvals, clearances, authorizations, permits and supplements or amendments thereto required by any
such Applicable Laws (“Authorizations”); (iii) possesses all material Authorizations necessary for the operation
of its business and such Authorizations are valid and in full force and effect and the Company is not in material violation of
any term of any such Authorizations; and (iv) since December 31, 2011: (A) has not received notice of any claim, action, suit,
proceeding, hearing, enforcement, investigation, arbitration or other action from the FDA or any other federal, state, local or
foreign governmental or regulatory authority or third party alleging that any product operation or activity is in material violation
of any Applicable Laws or Authorizations and the Company has no knowledge that the FDA or any other federal, state, local or foreign
governmental or regulatory authority or third party is considering any such claim, litigation, arbitration, action, suit, investigation
or proceeding; (B) has not received notice that the FDA or any other federal, state, local or foreign governmental or regulatory
authority has taken, is taking or intends to take action to limit, suspend, modify or revoke any material Authorizations and has
no knowledge that the FDA or any other federal, state, local or foreign governmental or regulatory authority is considering such
action; (C) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records,
claims, submissions and supplements or amendments as required by any Applicable Laws or Authorizations and that all such reports,
documents, forms, notices, applications, records, claims, submissions and supplements or amendments were materially complete and
correct on the date filed (or were corrected or supplemented by a subsequent submission); and (D) has not, either voluntarily
or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal
or replacement, safety alert, post-sale warning, “dear doctor” letter, or other notice or action relating to the alleged
lack of safety or efficacy of any product or any alleged product defect or violation and, to the Company’s knowledge, no
third party has initiated, conducted or intends to initiate any such notice or action.

 

(b)          Since
January 1, 2009, the Company has not received any notices or correspondence from the FDA or any other federal, state, local or
foreign governmental or regulatory authority requiring the termination, suspension or material modification of any studies, tests
or preclinical or clinical trials conducted by or on behalf of the Company.

 

		3.12	General
                                         Healthcare Regulatory Compliance.

 

		(a)	As used
                                         in this subsection:

 

(i)          “Governmental
Entity” means any national, federal, state, county, municipal, local or foreign government, or any political subdivision,
court, body, agency or regulatory authority thereof, and any person exercising executive, legislative, judicial, regulatory, taxing
or administrative functions of or pertaining to any of the foregoing.

 

(ii)         “Law”
means any federal, state, local, national or foreign law, statute, code, ordinance, rule, regulation, order, judgment, writ, stipulation,
award, injunction, decree or arbitration award or finding.

 

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(b)          The
Company has not committed any act, made any statement or failed to make any statement that would reasonably be expected to provide
a basis for the FDA or any other Governmental Entity to invoke its policy with respect to “Fraud, Untrue Statements of Material
Facts, Bribery, and Illegal Gratuities”, or similar policies, set forth in any applicable Laws. Neither the Company, nor,
to the knowledge of the Company, any of its officers, key employees or agents has been convicted of any crime or engaged in any
conduct that has resulted, or would reasonably be expected to result, in debarment under applicable Law, including, without limitation,
21 U.S.C. Section 335a. No claims, actions, proceedings or investigations that would reasonably be expected to result in such
a material debarment or exclusion are pending, or to the knowledge of the Company, threatened, against the Company or any of its
respective officers, employees or agents.

 

(c)          Each
of the Company and, to its knowledge, its directors, officers, employees, and agents (while acting in such capacity) is, and at
all times has been, in material compliance with all health care Laws applicable to the Company or by which any of its properties,
businesses, products or other assets is bound or affected, including, without limitation, the federal Anti-kickback Statute (42
U.S.C. § 1320a-7b(b)), the Anti-Inducement Law (42 U.S.C. § 1320a-7a(a)(5)), the civil False Claims Act (31 U.S.C.
§§ 3729 et seq.), the administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), the Health Insurance Portability
and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.), the exclusion laws (42 U.S.C. § 1320a-7), the Food Drug
and Cosmetic Act (21 U.S.C. §§ 301 et seq.) (collectively, “Health Care Laws”). The Company has not
received any notification, correspondence or any other written or oral communication from any Governmental Entity, including,
without limitation, the FDA, the Centers for Medicare and Medicaid Services, and the Department of Health and Human Services Office
of Inspector General, of potential or actual material non-compliance by, or liability of, the Company under any Health Care Laws.

 

(d)          The
Company is not a party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders, or similar
agreements with or imposed by any Governmental Entity.

 

3.13         Application
of Takeover Protections. The issuance of the Shares hereunder and Purchaser’s ownership thereof is not prohibited by
the business combination statutes of the state of Washington. The Company has not adopted any stockholder rights plan, “poison
pill” or similar arrangement that would trigger any right, obligation or event as a result of the issuance of the Shares
and Purchaser’s ownership of such securities and there are no similar anti-takeover provisions under the Company's charter
documents.

 

3.14         Private
Placement. Neither the Company nor its Affiliates, nor any person acting on its or their behalf, (i) has engaged in any form
of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act of 1933 and the rules
and regulations promulgated thereunder (together, the “Securities Act”)) in connection with the offer or sale
of the Shares or (ii) has issued any shares of Common Stock or shares of any series of Preferred Stock or other securities or
instruments convertible into, exchangeable for or otherwise entitling the holder thereof to acquire shares of Common Stock which
would be integrated with the sale of the Shares to Purchaser for purposes of the Securities Act or of any applicable stockholder
approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system
on which any of the securities of the Company are listed or designated, nor will the Company or any of its subsidiaries or affiliates
take any action or steps that would require registration of any of the Shares under the Securities Act or cause the offering of
the Shares to be integrated with other offerings. Assuming the accuracy of the representations and warranties of Purchaser, the
offer and sale of the Shares by the Company to Purchaser pursuant to this Agreement will be exempt from the registration requirements
of the Securities Act.

 

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3.15         No
Disqualification Events. With respect to Shares to be offered and sold hereunder in reliance on Rule 506 under the Securities
Act (“Regulation D Securities”), neither the Company, nor, to the Company’s knowledge, any of its predecessors,
any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering, any beneficial
owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, any
person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such
sale of Shares, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in
any capacity at the time of sale (each, an “Company Covered Person” and, together, “Company Covered
Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii)
under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule
506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Company Covered Person is subject to a
Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e),
and has furnished to the Purchasers a copy of any disclosures provided thereunder.

 

3.16         No
Manipulation of Stock. The Company has not taken and will not, in violation of applicable law, take, any action outside
the ordinary course of business designed to or that might reasonably be expected to cause or result in unlawful manipulation of
the price of the Common Stock.

 

sECTION
4.         Representations and Warranties
of the Purchaser. 

 

Each Purchaser,
severally and not jointly, hereby represents, warrants and covenants to the Company as follows:

 

4.1           None
of the Shares are registered under the Securities Act or any state securities laws. The Purchaser understands that the offering
and sale of the Shares is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof
each as promulgated by the United States Securities and Exchange Commission (the “SEC”)
thereunder, based, in part, upon the representations, warranties and agreements of the Purchaser contained in this Subscription
Agreement.

 

4.2           Prior
to the execution of this Subscription Agreement, the Purchaser and the Purchaser's attorney, accountant, purchaser representative
and/or tax adviser, if any (collectively, the “Advisers”), have received this Subscription Agreement, the terms
of the Common Stock, and all documents requested by the Purchaser, have carefully reviewed them and understand the information
contained therein.

 

4.3           Neither
the SEC nor any state securities commission or other regulatory authority has approved the Shares or passed upon or endorsed the
merits of the offering of the Shares.

 

4.4           All
documents, records, and books pertaining to the investment in the Shares have been made available for inspection by such Purchaser
and its Advisers, if any.

 

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4.5           The
Purchaser and its Advisers, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or
persons acting on behalf of the Company concerning the offering of the Shares and the business, financial condition and results
of operations of the Company, and all such questions have been answered to the full satisfaction of the Purchaser and its Advisers,
if any.

 

4.6           In
evaluating the suitability of an investment in the Company, the Purchaser has not relied upon any representation or information
(oral or written) other than as stated in this Subscription Agreement or the terms of the Common Stock.

 

4.7           The
Purchaser is unaware of, is in no way relying on, and did not become aware of the Offering of the Shares through or as a result
of, any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement
or other communication published in any newspaper, magazine or similar media or broadcast over television, radio or the Internet
(including, without limitation, internet “blogs,” bulletin boards, discussion groups and social networking sites)
in connection with the Offering and sale of the Shares and is not subscribing for the Shares and did not become aware of the Offering
of the Shares through or as a result of any seminar or meeting to which the Purchaser was invited by, or any solicitation of a
subscription by, a person not previously known to the Purchaser in connection with investments in securities generally.

 

4.8           The
Purchaser has taken no action that would give rise to any claim by any person for brokerage commissions, finders' fees or the
like relating to this Subscription Agreement or the transactions contemplated hereby.

 

4.9           The
Purchaser, together with its Advisers, if any, has such knowledge and experience in financial, tax, and business matters, and,
in particular, investments in securities, so as to enable it to utilize the information made available to it in connection with
the Offering to evaluate the merits and risks of an investment in the Shares and the Company and to make an informed investment
decision with respect thereto.

 

4.10         The
Purchaser is not relying on the Company or any of its respective employees or agents with respect to the legal, tax, economic
and related considerations of an investment in the Shares, and the Purchaser has relied on the advice of, or has consulted with,
only its own Advisers.

 

4.11         The
Purchaser is acquiring the Shares solely for such Purchaser's own account for investment purposes only and not with a view to
or intent of resale or distribution thereof, in whole or in part. The Purchaser has no agreement or arrangement, formal or informal,
with any person to sell or transfer all or any part of the Shares and the Purchaser has no plans to enter into any such agreement
or arrangement.

 

4.12         The
Purchaser must bear the substantial economic risks of the investment in the Shares indefinitely because none of the securities
included in the Shares may be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities
Act and applicable state securities laws or an exemption from such registration is available. Legends to
the following effect shall be placed on the securities included in the Shares to the effect that they have not been registered
under the Securities Act or applicable state securities laws:

 

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THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“U.S. SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY THAT
SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN ACCORDANCE WITH AN EXEMPTION FROM REGISTRATION
UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR UNDER AN EFFECTIVE REGISTRATION STATEMENT, AND, IN EACH CASE, IN COMPLIANCE WITH
ANY APPLICABLE STATE SECURITIES LAWS. 

 

4.13         Appropriate
notations will be made in the Company's books to the effect that the Shares
have not been registered under the Securities Act or applicable state securities laws. Stop transfer instructions will
be placed with the transfer agent of the securities. There can be no assurance that there will be any market for resale of the
Shares, nor can there be any assurance that such securities will be freely transferable at any time in the foreseeable future.
The Purchaser has adequate means of providing for such Purchaser's current financial needs and foreseeable contingencies and has
no need for liquidity of its investment in the Shares for an indefinite period of time.

 

4.14         The
Purchaser either:

 

(a)          meets
the requirements of at least one of the suitability standards for an “accredited investor” as that term is
defined in Regulation D and as set forth on the Accredited Investor Certification attached hereto as Exhibit B; or

 

(b)          is
not a “U.S. Person” as defined in Regulation S; and specifically the Purchaser is not (all Purchasers who are not
a U.S. Person must INITIAL this section as indicated to confirm their careful review and understanding of this Section)
Initial _______:

 

(i)          a
natural person resident in the United States of America, including its territories and possessions (“United States”);

 

(ii)         a
partnership or corporation organized or incorporated under the laws of the United States;

 

(iii)        an
estate of which any executor or administrator is a U.S. Person;

 

(iv)        a
trust of which any trustee is a U.S. Person;

 

(v)         an
agency or branch of a foreign entity located in the United States;

 

(vi)        a
non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit
or account of a U.S. Person;

 

    	11

    	 

    

 

(vii)       a
discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated,
or (if an individual) resident in the United States; and

 

(viii)      a
partnership or corporation: (A) organized or incorporated under the laws of any foreign jurisdiction; and (B) formed by a U.S.
Person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized
or incorporated, and owned, by accredited investors (as defined in Rule 501(a) under the Act) who are not natural persons, estates
or trusts.

 

(c)          And,
in addition (to the extent (a) above is inapplicable):

 

(i)          the
Purchaser was not offered the Shares in the United States;

 

(ii)         at
the time the buy-order for the Shares was originated, the Purchaser was outside the United States;

 

(iii)        the
Purchaser is purchasing the Shares for its own account and not on behalf of any U.S. Person (as defined in Regulation S) and a
sale of the Shares has not been pre-arranged with a purchaser in the United States;

 

(iv)        the
Purchaser agrees to resell the Shares only in accordance with the provisions of Regulation S, pursuant to registration under the
Act, or pursuant to an available exemption from registration and agrees not to engage in hedging transactions with regard to such
Shares unless in compliance with the Act;

 

(v)         the
Purchaser agrees that any certificates for any Shares issued to such Purchaser shall contain a legend to the effect that transfer
is prohibited except in accordance with the provisions of Regulation S, pursuant to registration under the Act or pursuant to
an available exemption from registration and that hedging transactions involving such Shares may not be conducted unless in compliance
with the Act; and 

 

(vi)        the
Purchaser agrees that the Company is hereby required to refuse to register any transfer of any Shares issued to such Purchaser
not made in accordance with the provisions of Regulation S, pursuant to registration under the Act, or pursuant to an available
exemption from registration.

 

    	12

    	 

    

 

4.15         The
Purchaser (i) if a natural person, represents that the Purchaser has reached the age of 21 and has full power and authority to
execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions
hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock
company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose
of acquiring the Shares, such entity is duly organized, validly existing and in good standing under the laws of the state of its
organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of
state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this
Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and
to purchase and hold the securities constituting the Shares, the execution and delivery of this Subscription Agreement has been
duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity
and is a legal, valid and binding obligation of such entity; or (iii) if executing this Subscription Agreement in a representative
or fiduciary capacity, represents that it has full power and authority to execute and deliver this Subscription Agreement in such
capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation, or limited liability company
or partnership, or other entity for whom the Purchaser is executing this Subscription Agreement, and such individual, partnership,
ward, trust, estate, corporation, or limited liability company or partnership, or other entity has full right and power to perform
pursuant to this Subscription Agreement and make an investment in the Company, and represents that this Subscription Agreement
constitutes a legal, valid and binding obligation of such entity. The execution and delivery of this Subscription Agreement will
not violate or be in conflict with any order, judgment, injunction, agreement or controlling document to which the Purchaser is
a party or by which it is bound.

 

4.16         The
Purchaser and the Advisers, if any, have had the opportunity to obtain any additional information, to the extent the Company has
such information in its possession or could acquire it without unreasonable effort or expense, necessary to verify the accuracy
of the information contained in all documents received or reviewed in connection with the purchase of the Shares and have had
the opportunity to have representatives of the Company provide them with such additional information regarding the terms and conditions
of this particular investment and the financial condition, results of operations, business of the Company deemed relevant by the
Purchaser or the Advisers, if any, and all such requested information, to the extent the Company had such information in its possession
or could acquire it without unreasonable effort or expense, has been provided to the full satisfaction of the Purchaser and the
Advisers, if any.

 

4.17         Any
information which the Purchaser has heretofore furnished or is furnishing herewith to the Company is complete and accurate and
may be relied upon by the Company in determining the availability of an exemption from registration under federal and state securities
laws in connection with the offering of securities as described herein. The Purchaser further represents and warrants that it
will notify and supply corrective information to the Company immediately upon the occurrence of any change therein occurring prior
to the Company's issuance of the Shares.

 

4.18         The
Purchaser has significant prior investment experience, including investment in non-listed and non-registered securities. The Purchaser
is knowledgeable about investment considerations in development-stage companies with limited operating histories. The Purchaser
has a sufficient net worth to sustain a loss of its entire investment in the Company in the event such a loss should occur. The
Purchaser's overall commitment to investments which are not readily marketable is not excessive in view of the Purchaser’s
net worth and financial circumstances and the purchase of the Shares will not cause such commitment to become excessive. The investment
is a suitable one for the Purchaser.

 

4.19         The
Purchaser is satisfied that the Purchaser has received adequate information with respect to all matters which it or the Advisers,
if any, consider material to its decision to make this investment.

 

    	13

    	 

    

 

4.20         No
oral or written representations have been made, or oral or written information furnished, to the Purchaser or the Advisers, if
any, in connection with the Offering which are in any way inconsistent with the information contained in this Subscription Agreement
or the Shares.

 

4.21         [Intentionally
Omitted].

 

4.22         THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS
AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE SECURITIES
ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID
ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE SECURITIES HAVE NOT BEEN RECOMMENDED, APPROVED OR DISAPPROVED
BY THE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES
PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THIS SUBSCRIPTION AGREEMENT. ANY REPRESENTATION
TO THE CONTRARY IS UNLAWFUL.

 

4.23         In
making an investment decision Purchasers must rely on their own examination of the Company and the terms of the Offering, including
the merits and risks involved. The Purchaser should be aware that it will be required to bear the financial risks of this investment
for an indefinite period of time

 

4.24         (For
ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents that such fiduciary has been informed
of and understands the Company’s investment objectives, policies and strategies, and that the decision to invest “plan
assets” (as such term is defined in ERISA) in the Company is consistent with the provisions of ERISA that require diversification
of plan assets and impose other fiduciary responsibilities. The Purchaser fiduciary or Plan (a) is responsible for the decision
to invest in the Company; (b) is independent of the Company or any of its affiliates; (c) is qualified to make such investment
decision; and (d) in making such decision, the Purchaser fiduciary or Plan has not relied primarily on any advice or recommendation
of the Company or any of its affiliates.

 

4.25         The
Purchaser should check the Office of Foreign Assets Control (“OFAC”) website at http://www.treas.gov/ofac before making
the following representations. The Purchaser represents that the amounts invested by it in the Company in the Offering were
not and are not directly or indirectly derived from activities that contravene federal, state or international laws and regulations,
including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by OFAC prohibit,
among other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories,
entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website
at http://www.treas.gov/ofac. In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit
dealing with individuals[1] or entities in certain countries
regardless of whether such individuals or entities appear on the OFAC lists.

 

    	14

    	 

    

 

4.26         To
the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any person controlling or controlled by the Purchaser;
(3) if the Purchaser is a privately-held entity, any person having a beneficial interest in the Purchaser; or (4) any person for
whom the Purchaser is acting as agent or nominee in connection with this investment is a country, territory, individual or entity
named on an OFAC list, or a person or entity prohibited under the OFAC Programs. Please be advised that the Company may not accept
any amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding
paragraph. The Purchaser agrees to promptly notify the Company should the Purchaser become aware of any change in the information
set forth in these representations. The Purchaser understands and acknowledges that, by law, the Company may be obligated to “freeze
the account” of the Purchaser, either by prohibiting additional subscriptions from the Purchaser, declining any redemption
requests and/or segregating the assets in the account in compliance with governmental regulations, and the Company may also be
required to report such action and to disclose the Purchaser’s identity to OFAC. The Purchaser further acknowledges that
the Company may, by written notice to the Purchaser, suspend the redemption rights, if any, of the Purchaser if the Company reasonably
deems it necessary to do so to comply with anti-money laundering regulations applicable to the Company or any of the Company’s
service providers. These individuals include specially designated nationals, specially designated narcotics traffickers and other
parties subject to OFAC sanctions and embargo programs.

 

4.27         To
the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any person controlling or controlled by the Purchaser;
(3) if the Purchaser is a privately-held entity, any person having a beneficial interest in the Purchaser; or (4) any person for
whom the Purchaser is acting as agent or nominee in connection with this investment is a senior foreign political figure,[2]
or any immediate family[3] member or
close associate[4] of a senior foreign political
figure, as such terms are defined in the footnotes below.

 

 

 

1
These individuals include specially designated nationals, specially designated narcotics traffickers
and other parties subject to OFAC sanctions and embargo programs.

 

2
A “senior foreign political figure” is defined as a senior official in the executive,
legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official
of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition, a “senior
foreign political figure” includes any corporation, business or other entity that has been formed by, or for the benefit
of, a senior foreign political figure.

 

3
“Immediate family” of a senior foreign political figure typically includes the figure’s
parents, siblings, spouse, children and in-laws.

 

4
A “close associate” of a senior foreign political figure is a person who is widely and
publicly known to maintain an unusually close relationship with the senior foreign political figure, and includes a person who
is in a position to conduct substantial domestic and international financial transactions on behalf of the senior foreign political
figure.

 

    	15

    	 

    

 

4.28         If
the Purchaser is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Purchaser receives
deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Purchaser represents
and warrants to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country
in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related
to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank
to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does
not have a physical presence in any country and that is not a regulated affiliate.

 

sECTION
5.         Conditions to the Purchasers’
Obligations.

 

The
obligations of each Purchaser under subsection 1.1 of this Agreement with respect to the Closing are subject to the fulfillment
on or before each Closing (unless otherwise indicated) of each of the following conditions:

 

5.1           Representations
and Warranties. The representations and warranties of the Company contained in Section 3 shall be true and correct in all
material respects on and as of the Closing with the same effect as though such representations and warranties had been made on
and as of the date of the Closing.

 

5.2           Performance.
The Company shall have performed and complied in all material respects with all agreements, obligations and conditions contained
in this Agreement that are required to be performed or complied with by it on or before the Closing.

 

5.3           Compliance
Certificate. The President of the Company shall deliver to the Purchasers at the Closing a certificate stating that the conditions
specified in Sections 5.1 and 5.2 have been fulfilled.

 

5.4           Secretary’s
Certificate. The Company shall deliver to the Purchasers at the Closing a certificate of the Secretary of the Company with
respect to the Company’s Amended and Restated Articles of Incorporation, the Company’s Bylaws and the resolutions
of the Company’s board of directors relating to the transactions contemplated hereby.

 

5.5           Permits,
Qualifications and Consents. All permits, authorizations, approvals, consents or permits, if any, of any governmental authority
or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the
Shares pursuant to this Agreement shall be duly obtained and effective as of the Closing.

 

5.6           Opinion
of Company Counsel. Each Investor shall have received from Morrison & Foerster LLP, counsel for the Company, an opinion,
dated as of the Closing, in substantially the form attached hereto as Exhibit C.

 

5.7           Registration
Rights Agreement. The Company shall have delivered to each Purchaser a copy of the Registration Rights Agreement signed by
the Company.

 

sECTION
6.         Conditions to the Company’s
Obligations.

 

The
obligations of the Company to the Purchasers with respect to the Closing are subject to the fulfillment on or before the Closing
of each of the following conditions by the Purchasers:

 

    	16

    	 

    

 

6.1           Representations
and Warranties. The representations and warranties of the Purchasers contained in Section 4 shall be true and correct on and
as of the Closing with the same effect as though such representations and warranties had been made on and as of the Closing.

 

6.2           Payment
of Purchase Price. The Purchasers shall have delivered the purchase price specified in Section 1.1 for the Shares set forth
opposite each Purchaser’s name on Exhibit A hereto.

 

6.3           Permits,
Qualifications and Consents. All permits, authorizations, approvals, consents or permits, if any, of any governmental authority
or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the
securities pursuant to this Agreement shall be duly obtained and effective as of the Closing.

 

6.4           Registration
Rights Agreement. Each Purchaser shall have delivered to the Company a copy of the Registration Rights Agreement signed by
such Purchaser.

 

sECTION
7.         Indemnification.

 

7.1           Indemnification
by the Company. The Company agrees to indemnify and hold harmless the Purchaser and its respective officers, directors, employees,
agents, attorneys, control persons and affiliates from and against all losses, liabilities, claims, damages, costs, fees and expenses
whatsoever (including, but not limited to, any and all legal and other expenses incurred in investigating, preparing or defending
against any litigation commenced or threatened) based upon or arising out of any actual or alleged false acknowledgment, representation
or warranty, or misrepresentation or omission to state a material fact, or breach by the Company of any covenant or agreement
made by the Company herein or in any other document delivered in connection with this Subscription Agreement.

 

    	17

    	 

    

 

sECTION
8.         Survival of Representations and
Warranties.

 

The
representations and warranties of the Company made in this Subscription Agreement shall survive the execution and delivery hereof
and delivery of the Shares for a period of one year after Closing.

 

sECTION
9.         Legend Removal.

 

9.1           Certificates
evidencing the Shares shall not contain any legend (including the legends referenced in Section 4 above), (i) while a Registration
Statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Shares pursuant
to Rule 144, (iii) if such Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance
with the current public information required under Rule 144 as to such Shares and without volume or manner-of-sale restrictions,
or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the
transfer agent promptly if required by the transfer agent to effect the removal of the legend hereunder. The Company agrees that
following such time as such legend is no longer required under this Section 9.1, it will, no later than three Trading Days following
the delivery by a Purchaser to the Company or the transfer agent of a certificate representing Shares, as the case may be, issued
with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause to be delivered
to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company may
not make any notation on its records or give instructions to the transfer agent that enlarge the restrictions on transfer set
forth in Section 4. Certificates for Securities subject to legend removal hereunder shall be transmitted by the transfer agent
to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed
by such Purchaser.

 

9.2           In
addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated
damages and not as a penalty, for each $2,000 of Shares (based on the volume-weighted average price of the Common Stock on the
date such Shares are submitted to the transfer agent) delivered for removal of the restrictive legend and subject to this Section
9, $10 per Trading Day for each Trading Day after the Legend Removal Date until such certificate is delivered without a legend.
Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Company’s failure to deliver certificates
representing any Shares as required by this Subscription Agreement, and such Purchaser shall have the right to pursue all remedies
available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

9.3           As
used in this section:

 

(a)          “Trading
Day” means (i) a day on which the Common Stock is listed or quoted and traded on its Principal Market (unless the
Principal Market is the OTC Bulletin Board or the “pink sheets”), or (ii) if the Common Stock is not listed on
a Trading Market (other than the OTC Bulletin Board or the OTC QB, OTC QX or “pink sheets” tier of the OTC Markets
Group, Inc.), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board,
or (iii) if the Common Stock is not quoted on any Trading Market (other than the OTC QB, OTC QX or “pink sheets”
tier of the OTC Markets Group, Inc.), a day on which the Common Stock is quoted in the over-the-counter market as reported by
the OTC QB, OTC QX or “pink sheets” tier of the OTC Markets Group, Inc. (or any similar organization or agency succeeding
to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set
forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

 

    	18

    	 

    

 

(b)          “Principal
Market” means the Trading Market on which the Common Stock is primarily listed on and quoted for trading, which, as
of the Closing Date, shall be the OTC Bulletin Board.

 

(c)          “Trading
Market” means whichever of the New York Stock Exchange, the NYSE-MKT, the NASDAQ Global Select Market, the NASDAQ Global
Market, the NASDAQ Capital Market, the OTC Bulletin Board, the OTC QB, OTC QX or “pink sheets” tier of OTC Markets
Group, Inc. (or any similar organization or agency succeeding to its function of reporting prices) on which the Common Stock is
listed or quoted for trading on the date in question.

 

sECTION
10.       Notices.

 

10.1         Any
notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified
mail, return receipt requested, or delivered against receipt to the party to whom it is to be given (a) if to the Company, at
the address set forth above, or (b) if to the Purchaser, at the address set forth on the signature page hereof (or, in either
case, to such other address as the party shall have furnished in writing in accordance with the provisions of this Section 10).
Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for
a notice changing a party's address which shall be deemed given at the time of receipt thereof.

 

sECTION
11.       Miscellaneous.

 

11.1         Irrevocability;
Binding Effect. The Purchaser hereby acknowledges and agrees that the subscription hereunder is irrevocable by the Purchaser,
except as required by applicable law, and that this Subscription Agreement shall survive the death or disability of the Purchaser
and shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal
representatives, and permitted assigns. If the Purchaser is more than one person, the obligations of the Purchaser hereunder shall
be joint and several and the agreements, representations, warranties, and acknowledgments herein shall be deemed to be made by
and be binding upon each such person and such person's heirs, executors, administrators, successors, legal representatives, and
permitted assigns.

 

11.2         Modification.
This Subscription Agreement shall not be amended, modified or waived except by an instrument in writing signed by the Company
and holders representing at least a majority of the shares of Common Stock purchased hereunder; provided that any amendment,
modification or waiver (i) of or relating to Section 9, (ii) that increases the Purchase Price or (iii) that imposes any additional
obligations on the Purchaser, shall require the consent of each Purchaser. Purchaser acknowledges that this Subscription Agreement
may be amended without Purchaser’s consent in accordance with the foregoing sentence.

 

    	19

    	 

    

 

11.3         Assignability.
This Subscription Agreement and the rights, interests and obligations hereunder are not transferable or assignable by the Purchaser
and the transfer or assignment of the Shares shall be made only in accordance with all applicable laws.

 

11.4         Applicable
Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable
to contracts to be wholly-performed within said State, without regard to its conflicts of laws principles.

 

11.5         Venue.
Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated
by this Subscription Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the federal or state courts located in the City of New York, Borough of
Manhattan. Each party hereby irrevocably submits to the exclusive jurisdiction of the federal or state courts located in the City
of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper
or is an inconvenient venue for such proceeding. The parties hereby waive all rights to a trial by jury.

 

11.6         Blue
Sky Qualification. The purchase of Shares under this Subscription Agreement is expressly conditioned upon the exemption from
qualification of the offer and sale of the Shares from applicable federal and state securities laws. The Company shall not be
required to qualify this transaction under the securities laws of any jurisdiction and, should qualification be necessary, the
Company shall be released from any and all obligations to maintain its offer, and may rescind any sale contracted, in the jurisdiction.

 

11.7         Use
of Pronouns. All pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine, neuter,
singular or plural as the identity of the person or persons referred to may require.

 

11.8         Confidentiality.
If the Purchaser has entered into a separate agreement with the Company regarding confidentiality, such agreement shall survive
and control with respect to the subject matter thereof. If the Purchaser has not entered into a separate agreement with the Company
regarding confidentiality, such Purchaser acknowledges and agrees as follows: (i) that any information or data the Purchaser has
acquired from or about the Company, not otherwise properly in the public domain, was received in confidence; and (ii) not to divulge,
communicate or disclose, except as may be required by law or for the performance of this Agreement, or use to the detriment of
the Company or for the benefit of any other person or persons, or misuse in any way, any confidential information of the Company,
including any scientific, technical, trade or business secrets of the Company and any scientific, technical, trade or business
materials that are treated by the Company as confidential or proprietary, including, but not limited to, ideas, discoveries, inventions,
developments and improvements belonging to the Company and confidential information obtained by or given to the Company about
or belonging to third parties.

 

    	20

    	 

    

 

11.9         Termination.
If the Closing does not occur on or prior to December 23, 2013, this Subscription Agreement shall automatically terminate, provided
that such termination shall be without prejudice to any breach of this Subscription Agreement by either party prior to such termination.

 

11.10       Headings.
Paragraph titles are for descriptive purposes only and shall not control or alter the meaning of this Subscription Agreement as
set forth in the text.

 

11.11       Severability.
Each provision of this Subscription Agreement shall be considered separable and, if for any reason any provision or provisions
hereof are determined to be invalid or contrary to applicable law, such invalidity or illegality shall not impair the operation
of or affect the remaining portions of this Subscription Agreement.

 

11.12       Counterparts.
This Subscription Agreement may be executed in one or more counterparts each of which shall be deemed an original, but all of
which shall together constitute one and the same instrument.

 

11.13       Expenses.
Each of the parties hereto shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or
others engaged by such party) in connection with this Subscription Agreement and the transactions contemplated hereby whether
or not the transactions are consummated.

 

11.14      Entire
Agreement. Except as set forth in Section 11.8 above, this Subscription Agreement, together with the exhibits and attachments
hereto and thereto constitute, the entire agreement between the Purchaser and the Company with respect to the subject matter hereof
and supersede all prior oral or written agreements and understandings, if any, relating to the subject matter hereof. The terms
and provisions of this Subscription Agreement may be waived, or consent for the departure therefrom granted, only by a written
document executed by the party entitled to the benefits of such terms or provisions.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	21

    	 

    

 

To subscribe
for Shares in the private offering of the Company:

 

		1.	Date
                                         and Fill in the aggregate Subscription Amount of the Shares being purchased and Complete
                                         and Sign the Signature Page of the Subscription Agreement.

 

		2.	Initial
                                         the Accredited Investor Certification page attached as Exhibit B to this letter.

 

		3.	Return all forms to [_____________]
                                         by fax at [_____________] or email to [________________] and then send all signed
                                         original documents, including a check for the Subscription Amount payable to the order
                                         of “AmpliPhi Biosciences Corporation”, and mail to:

 

AmpliPhi Biosciences
Corporation

4870 Sadler Road, Suite
300

Glen Allen, Virginia 23060

Attn: Philip Young

 

Please include your name
and federal tax ID number (if applicable) on the check.

 

		4.	For wiring funds directly to the Company’s
                                         account, use the following instructions:

 

Account Name: AmpliPhi Biosciences
Corporation

 

	Account Number:	446-04635-3
	ABA Number:	021001088
	Swift Code:	MRMDUS33
	Bank Name & Address	HSBC Bank USA, N.A.
	 	P.O. Box 9
	 	Buffalo, New York 14240
	 	Ref: Investor Name, Tax ID Number and Address

 

    	 

    	 

    

 

AMPLIPHI
BIOSCIENCES CORPORATION

SIGNATURE PAGE
TO THE

SUBSCRIPTION
AGREEMENT

  

 

 

Purchaser
hereby elects to subscribe under the Subscription Agreement for shares of Common Stock in the aggregate Subscription Amount of
$______________ (NOTE: to be completed by Purchaser) and executes the Subscription Agreement.

 

Date (NOTE: To be completed by Purchaser):
_______________________

  

 

 

If the Purchaser
is an INDIVIDUAL, and if purchased as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY PROPERTY:

 

	Print
    Name(s)	 	Social
    Security Number(s)
	 	 	 
	 	 	 
	Signature(s) of Purchaser(s)	 	Signature
	 	 	 
	 	 	 
	Date	 	Address

 

If the Purchaser
is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY or TRUST:

 

	Name
    of Partnership,	 	Federal Taxpayer
	Corporation, Limited 	 	Identification Number (if applicable)
	Liability Company
    or Trust	 	 
	 	 	 
	By:	 	 	 
	 	Name:	 	 	State of Organization
	 	Title:	 	 	 
	 	 	 
	 	 	 
	Date	 	Address

 

 

  

	Accepted and agreed to:	 	 
	 	 	 
	AmplipHI BIOSCIENCES CORPORATION	 	 
	 	 	 
	By:	 	 	Date:___________________________
	Name:	 	 
	Title:	 	 

 

    	 

    	 

    

 

EXHIBIT A

 

SCHEDULE
OF PURCHASERS

 

	Name/Address	 	Subscription
    
Amount	 	 	Number of Shares
    
of Common Stock	 	 	Closing 
Date	 
	 	 		 	 		 	 		 
	CLOSING	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	$	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	$	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	$	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	$	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 	$	 	 	 	 	 	 	 	 	 	 

 

    	 

    	 

    

 

EXHIBIT A-1

 

SCHEDULE OF PURCHASERS

 

	Name/Address	 	Subscription
    
Amount	 	 	Number of Shares
    

    of Common Stock	 	 	Closing 
Date	 
	 	 	 	 	 	 	 	 	 	 
	CLOSING	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 	$		 	 			 	 		 	 

 

    	 

    	 

    

 

EXHIBIT B

ACCREDITED
INVESTOR CERTIFICATION

 

For Individual
Investors Only

(all Individual
Investors must INITIAL where appropriate):

 

	Initial	 	 	I
    have a net worth (including homes, furnishings and automobiles, but excluding for these purposes the net value, after any
    mortgage, of my primary residence) in excess of $1 million either individually or through aggregating my individual holdings
    and those in which I have a joint, community property or other similar shared ownership interest with my spouse.
	 	 	 
	Initial	 	 	I have had
    an annual gross income for the past two years of at least $200,000 (or $300,000 jointly with my spouse) and expect my income
    (or joint income, as appropriate) to reach the same level in the current year.
	 	 	 
	Initial	 	 	I am a director or executive
    officer of the Company.

 

For
Non-Individual Investors

(all
Non-Individual Investors must INITIAL where appropriate):

 

	Initial	 	 	The
    investor certifies that it is a partnership, corporation, limited liability company or business trust that is 100% owned by
    persons who meet at least one of the criteria for Individual Investors set forth above.
	 	 	 
	Initial	 	 	The
    investor certifies that it is a partnership, corporation, limited liability company or business trust that has total assets
    of at least $5 million and was not formed for the purpose of investing in the Company.
	 	 	 
	Initial	 	 	The
    investor certifies that it is an employee benefit plan whose investment decision is made by a plan fiduciary (as defined in
    ERISA §3(21)) that is a bank, savings and loan association, insurance company or registered investment adviser.
	 	 	 
	Initial	 	 	The
    investor certifies that it is an employee benefit plan whose total assets exceed $5,000,000 as of the date of this Agreement.
	 	 	 
	Initial	 	 	The
    undersigned certifies that it is a self-directed employee benefit plan whose investment decisions are made solely by persons
    who meet either of the criteria for Individual Investors.
	 	 	 
	Initial	 	 	The
    investor certifies that it is a U.S. bank, U.S. savings and loan association or other similar U.S. institution acting in its
    individual or fiduciary capacity.
	 	 	 
	Initial	 	 	The
    undersigned certifies that it is a broker-dealer registered pursuant to §15 of the Securities Exchange Act of 1934.
	 	 	 
	Initial	 	 	The
    investor certifies that it is an organization described in §501(c)(3) of the Internal Revenue Code with total assets
    exceeding $5,000,000 and not formed for the specific purpose of investing in the Company.
	 	 	 
	Initial	 	 	The
    investor certifies that it is a trust with total assets of at least $5,000,000, not formed for the specific purpose of investing
    in the Company, and whose purchase is directed by a person with such knowledge and experience in financial and business matters
    that he is capable of evaluating the merits and risks of the prospective investment.
	 	 	 
	Initial	 	 	The investor
    certifies that it is a plan established and maintained by a state or its political subdivisions, or any agency or instrumentality
    thereof, for the benefit of its employees, and which has total assets in excess of $5,000,000.
	 	 	 
	Initial	 	 	The investor certifies
    that it is an insurance company as defined in §2(13) of the Securities Act, or a registered investment company.

 

    	 

    	 

    

 

EXHIBIT C

 

FORM OF LEGAL
OPINIONExhibit 10.1

 

 

	 	Loan Repayment Deed
	 	 
	 	BETWEEN

    

CELLABS PTY LTD
	 	 
	 	(LENDER)
	 	 
	 	AND
	 	 
	 	SPECIAL PHAGE HOLDINGS PTY LTD
	 	 
	 	(BORROWER)
	 	 
	 	AND
	 	 
	 	AMPLIPHI BIOSCIENCES CORPORATION
	 	 
	 	(PAYER)

 

	 	MILLS OAKLEY LAWYERS
	 	Level 6, 530 Collins Street
	 	MELBOURNE VIC 3000
	 	Telephone: 03 9670 9111
	 	Facsimile:  03 9605 0933
	 	DX 558, MELBOURNE
	 	www.millsoakley.com.au
	 	Ref: 5188476

 

    	 

    	 

    

 

		Loan Repayment Deed

 

Parties

 

CELLABS PTY LTD (ACN 003 032 577)

of Unit 5, 14 Kurraba Road, Neutral Bay, NSW 2089

 

 

(the Lender)

 

AND

 

SPECIAL PHAGE HOLDINGS PTY LTD (ACN 102 575 511)

of Unit 5, 14 Kurraba Road, Neutral Bay, NSW 2089

(the Borrower)

 

AND

 

AMPLIPHI BIOSCIENCES CORPORATION

of 800 E. Leigh St, 54 Richmond, VA 23219, United States of
America

(the Payer)

 

Background

 

		A.	The Lender is associated with shareholders of the Borrower.

 

		B.	The Borrower has received the Loan from the Lender.

 

		C.	The Payer’s wholly owned Australian subsidiary, Ampliphi Australia
                                                          Pty Ltd (Aus Bidco), has entered into arrangements to purchase
                                                          100% of the shares in the Borrower.

 

		D.	The Borrower and the Payer have agreed to repay the Loan in accordance with the terms of this deed under the conditions set
forth herein.

 

		E.	The parties have entered into this deed to reflect and formalise the terms of the repayment of the Loan and to supersede and
replace, in its entirety, any original terms of the Loan.

 

Terms and Conditions

 

		1	Definitions and Interpretation

 

		1.1	Definitions

 

			The following definitions apply in this deed unless the context otherwise requires:

 

			Business Day means a day (not being a Saturday, Sunday or public holiday) on which Australian banks (as defined in Section
9 of the Corporations Act) are open for general banking business in Sydney, New South Wales.

 

			Completion means the completion of the acquisition of Borrower by Aus Bidco as defined in the Share Sale Agreement.

 

			Corporations Act means the Corporations Act 2001 (Cth), as amended from time to time.

 

			Encumbrance means any third party interest or encumbrance of any nature whatsoever including (without limitation):

 

		(a)	a mortgage, charge, pledge, lien, hypothecation or title retention arrangement;

 

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		Loan Repayment Deed

 

		(b)	a right of setoff or right to withhold payment of a deposit or other money;

 

		(c)	a right of any person to purchase, occupy or use an asset (including under an option, agreement to purchase, licence, lease,
or hire purchase);

 

		(d)	an easement, restrictive covenant, caveat or similar restriction over property (except an easement or covenant whose burden
is noted on the certificate of title to the land concerned);

 

		(e)	a trust or other third party interest; and

 

		(f)	an agreement to create any of the above or to allow any of them to exist;

 

Loan means all obligations under a loan between the Lender
and the Borrower including the principal amount of $770,000 which was loaned by the Lender to the Borrower and which is subject
to the terms of this deed and all accrued interests and other amounts due thereunder.

 

Proceeds means the cash proceeds to the Borrower or Payer
or Aus Bidco from a license or collaboration transaction. Notwithstanding the foregoing, “Proceeds” shall not include
proceeds attributable to (i) the purchase of debt or equity securities, (ii) reimbursements of patent prosecution and maintenance
expenses; (iii) reimbursement or advances for the cost and expenses of research, development and/or clinical services and reimbursement
or advances for actual out of pocket costs and expenses actually incurred in connection therewith (including fully-burdened labor
and materials costs), (iv) development milestone payments, and (v) any price paid for supply of products. Proceeds will only accrue
to the Borrower or Payer or Aus Bidco for the purposes of this definition from the date of this Deed.

 

Share Sale Agreement means the agreement between Aus
Bidco, the Payer, the Borrower, and the shareholders of the Borrower.

 

		1.2	Interpretation

 

In this Deed, unless the context requires otherwise:

 

		(a)	a reference to a document includes the document as modified from time to time and any document replacing it;

 

		(b)	if something is to be or may be done on a day that is not a Business Day then it must be done on the next Business Day;

 

		(c)	the words “in writing” include any communication sent by letter, facsimile transmission or email or any other form
of communication capable of being read by the recipient;

 

		(d)	a reference to all or any part of a statute, rule, regulation or ordinance (statute) includes that statute as amended, consolidated,
re-enacted or replaced from time to time;

 

		(e)	money amounts are stated in Australian currency unless otherwise specified;

 

		(f)	Any reference in this deed to the singular includes the plural, to any gender includes all genders, to persons includes all
bodies and associations both incorporated and unincorporated, to any legislation or regulations includes all amending and succeeding
legislation and regulations, to clauses and schedules means to clauses and schedules of this deed and paragraph headings are for
reference purposes only; and

 

		(g)	a reference to any agency or body, if that agency or body ceases to exist or is reconstituted, renamed or replaced or has its
powers or functions removed

 

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		Loan Repayment Deed

 

(defunct body), means the agency or body that performs
most closely the functions of the defunct body.

 

		2	Loan

 

		2.1	Acknowledgment of Loan

 

The parties acknowledge and agree
that:

 

		(a)	the Borrower is indebted to the Lender for the Loan;

 

		(b)	the Loan constitutes the entire debt and is the full extent of the obligations owed by the Borrower to the Lender; and

 

		(c)	the Loan is to be repaid on and subject to the terms of this deed which replaces and supercedes any earlier arrangements in
respect of the Loan.

 

		2.2	No Interest

 

Neither the full amount of the Loan, or any part of
the Loan as is outstanding at any particular time, bears or shall bear any interest.

 

		3	Repayment

 

		3.1	Share issuance

 

Upon Completion, the Lender shall be issued 2,000,000
fully paid shares of Payer’s Common Stock (the “Payer Shares”) free and clear of all Encumbrances,
subject to the share issue conditions set forth in Section 3.5 below.

 

		3.2	Payment after Completion

 

The Payer will pay the Lender $150,000 within 30 days
after Completion, in part repayment of the Loan, procured on the Borrower’s behalf.

 

		3.3	Repayment of balance of Loan

 

Subject to clause 3.4, the Payer will repay the balance
of the Loan to the Lender, procured on the Borrower’s behalf, as follows:

 

		(a)	$200,000 will be repaid to the Lender as follows: Payer or Borrower shall pay to Lender 10% of any Proceeds received by the
Payer, Borrower or Aus Bidco until the Lender has received $200,000 pursuant to this paragraph. Such amounts shall be paid within
30 days after receipt by the Payer or Borrower or Aus Bidco of such Proceeds.

 

		(b)	In the event that the Lender has not received $200,000 in total pursuant to clause 3.3(a) above by the end of 18 months following
the date of Completion (the “18 Month Date”), then in lieu of any further payments to the Lender under sub-clause 3.3(a) above, the Payer shall repay the “Remainder Amount” (as defined below) in monthly instalments equal to
the lesser of (i) $10,000, or (ii) the amount of Remainder Amount remaining unpaid at the time of such payment. For purposes of
this clause 3.3(b), the term “Remainder Amount” means the amount by which $200,000 exceeds the total amounts
paid to the Lender under clause 3.3(a) as of the 18 Month Date.

 

		(c)	Payments under clause 3.3(b) shall be made within 30 days of the end of each month-end following the 18 Month Date.

 

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		Loan Repayment Deed

 

		3.4	R&D Tax Rebate

 

		(a)	The Borrower is entitled to apply for and receive a research and development tax rebate in Australia relating to the 2011/2012
financial year (“R&D Tax Rebate”).

 

		(b)	As soon as practicable, the Borrower must complete and lodge any documentation required to obtain the maximum R&D Tax Rebate
available to the Borrower.

 

		(c)	If the total R&D Tax Rebate received by the Borrower is less than $100,000, then the amount payable to the Lender under
clause 3.3 will be reduced by an amount equal to the difference between $100,000 and the R&D Tax Rebate received by the Borrower.

 

		3.5	Share issue conditions

 

The Payer’s obligation to
issue the shares referred to in clause 3.1 is conditional on the Payer receiving:

 

		(a)	an application to subscribe for the shares from the Lender in the form set out as Annexure C duly completed and executed by
the Lender;

 

		(b)	a certificate in the form set out at Annexure A duly completed and executed by the Lender; and

 

		(c)	a certificate in the form set out at Annexure B duly completed and executed by the Lender.

 

		3.6	Loan extinguishment

 

The parties agree that the Loan shall be deemed to
be fully satisfied and extinguished once the shares in clause 3.1 have been issued by the Payer to the Lender and all payments
have been made by the Payer to the Lender in accordance with clauses 3.2 and 3.3 and in such event the Lender agrees that it releases,
in full and final settlement, the Borrower and the Payer from any further liability or obligations in respect of the Loan.

 

		3.7	Payer board meeting

 

The Payer warrants and represents to the Lender that
the issue of the Payer Shares to the Lender in accordance with clause 3.1 has been approved by the board of the Payer.

 

		3.8	Reporting on Proceeds and R&D Tax Rebate

 

		(a)	The Payer will keep the Lender fully informed of the amount of the R&D Tax Rebate and the date it is received by the Borrower
and the amount of Proceeds received by the Payer, the Borrower and Aus Bidco from the date of Completion up until the Loan is extinguished
in accordance with clause 3.6.

 

		(b)	If requested, the Lender (or its nominee) will be given full access to the accounts and records of the Payer, the Borrower
and Aus BidCo for the purposes only of the Lender determining whether one or more payments are due to the Lender under clause 3.3
and the amount due. The Payer must procure the Borrower and Aus Bidco to provide access to those accounts and records to the Lender
(or its nominee).

 

		(c)	The Lender must hold any information obtained under clause 3.8(b) strictly confidential and must only use the information for
the purposes of the Lender determining whether one or more payments are due to the Lender under clause 3.3 and the amount due.
If the Lender wishes to use a nominee for the purposes of clause 3.8(b), it must first ensure that the nominee is bound by equivalent
legally enforceable obligations of confidentiality. Each of the Payer, the Borrower and Aus Bidco may require the nominee to enter
into a deed of confidentiality in a form they prescribe prior to being required to give the nominee access to their accounts and
records.

 

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		Loan Repayment Deed

 

		3.9	Dispute

 

		(a)	If the Lender believes that one or more payments are due to the Lender under this deed and have not been paid, then the Lender
may issue a dispute notice to the Payer.

 

		(b)	The Lender and the Payer must enter into good faith negotiations and use all reasonable endeavours to resolve the dispute.

 

		(c)	If the Lender and the Payer do not resolve the dispute within
                                                               20 Business Days after written notice of the dispute is given (or
                                                               such longer period as the Lender and the Payer agree) then the
                                                               dispute must be referred for resolution to an independent expert
                                                               agreed by the Lender and the Payer within a further 5 Business
                                                               Days. If they cannot agree on who the independent person will be
                                                               within that time period, either of the Lender or Payer may request
                                                               the president, at that time, of the Institute of Arbitrators and
                                                               Mediators Australia (or the president’s nominee) to appoint
                                                               an independent expert to resolve the dispute. The person agreed
                                                               or nominated under this paragraph (c) will be the ‘Expert’
                                                               for the purposes of this clause 3.9.

 

		(d)	The Lender and the Payer must instruct the Expert to decide
                                                               within the shortest practicable time whether payment is due to
                                                               the Lender under this deed and the amount due, and to deliver to
                                                               the Lender and the Payer a report (Expert’s Report)
                                                               which states, on the basis of the Expert’s decision,
                                                               its opinion as to whether payment is due to the Lender under this
                                                               deed and the amount due.

 

		(e)	The Expert will act as an expert, not as an arbitrator, in determining the dispute.

 

		(f)	The Expert’s determination must be made as soon as possible.

 

		(g)	The Expert’s decision is final, conclusive and binding on the parties (except in the case of manifest error).

 

		(h)	The parties hereto will endeavour to procure that the engagement documents for the Expert will provide for such Expert to endeavour
to provide a decision within 10 Business Days of appointment, subject to delays resulting from the action or inaction of the Lender
or the Payer.

 

		(i)	Each party must bear its own costs in complying with this clause 3.9.

 

		(j)	The cost of the Expert (if appointed) must be shared equally and paid by the Lender and the Payer.

 

		4	Interdependence

This deed is conditional on Completion occurring under
the Share Sale Agreement and none of the parties to this deed shall be bound by the obligations under this deed unless and until
Completion occurs under the Share Sale Agreement.

 

		5	Notices, demands and communications

 

		5.1	Service

 

A notice, demand, consent, approval or communication
(Notice) given by a party in connection with this deed must be:

 

		(a)	in writing, in English and signed by an authorised representative of the party; and

 

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		Loan Repayment Deed

 

		(b)	hand delivered or sent by prepaid post (or airmail if applicable) or facsimile to the recipient’s address for notices
specified in the ‘Parties’ section of this deed, as varied by any Notice given by the recipient to the party.

 

		5.2	Effective on receipt

 

A notice takes effect when received (or at a later
time specified in it), and is taken to be received:

 

		(a)	if hand delivered, on delivery;

 

		(b)	if sent by prepaid post, on the second Business Day after the date of posting (or on the seventh Business Day after the date
of posting if posted to or from a place outside Australia); or

 

		(c)	if sent by facsimile, when the sender’s facsimile system generates a message confirming successful transmission of the
entire Notice unless, within eight hours after the transmission (being counted as hours from 9.00am to 5.00pm on a Business Day),
the recipient informs the sender that it has not received the entire Notice,

 

but if the delivery, receipt or transmission is not
on a Business Day or is after 5.00pm (addressee’s time) on a Business Day, the Notice is taken to be received at 9.00am (addressee’s
time) on the next Business Day.

 

		6	General

 

		6.1	Waiver

 

A waiver by either party of any
breach or a failure to enforce or to insist upon the observance of a condition of this deed will not be a waiver of any other or
of any subsequent breach.

 

		6.2	Severance

 

If any part of this deed is invalid,
unenforceable, illegal, void or voidable for any reason, this deed will be construed and be binding on the parties as if the invalid,
unenforceable, illegal, void or voidable part had been deleted from this deed or read down to the extent necessary to overcome
the difficulty.

 

		6.3	Entire Agreement

 

This deed contains the entire
agreement between the parties about its subject matter. Any previous understanding, agreement, representation or warranty relating
to that subject matter (including the original agreement establishing the Loan) is replaced by this document and has no further
effect.

 

		6.4	Costs and Expenses

 

Each party must bear its own
costs, charges, expenses (including any stamp duty and other taxes) of or incidental to the preparation, execution and registration
of this deed or any extension or variation or discharge of this deed.

 

		6.5	Successors and assigns

 

This deed will be binding on
and continue for the benefit of each party, its successors and assigns.

 

		6.6	Further assurances

 

The parties will do everything
reasonably necessary to give effect to this deed and to the transactions contemplated by it and will use all reasonable endeavours
to cause relevant third parties to do likewise.

 

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		Loan Repayment Deed

 

		6.7	Continuing obligations

 

			The expiration or termination of this deed does not operate to terminate any of the continuing
obligations under this deed and they will remain in full force and effect and be binding on the party concerned.

 

		6.8	Applicable law

 

			This deed is governed by and construed in accordance with the laws of the State of New South Wales
and the parties irrevocably submit to the jurisdiction of the courts of that State.

 

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		Loan Repayment Deed

 

	Execution Page	 	 
	 	 	 
	EXECUTED as an deed on	 	28th September 2012
	 	 	 
	The Lender	 	 
	 	 	 
	EXECUTED as a deed by CELLABS PTY LTD	)	 
	in accordance with section 127(1) of the	)	 
	Corporations Act 2001	)	 
	 	 	 
	/s/ Margaret Gibson Smithyman	 	/s/ DR. Anthony M. Smithyman
	Signature of Director	 	Signature of Director / Company Secretary
	 	 	(delete as applicable)
	 	 	 
	Margaret Gibson Smithyman	 	DR. Anthony M. Smithyman
	Name of Director	 	Name of Director / Company Secretary
	(Please print)	 	(Please print)
	 	 	 
	The Borrower	 	 
	 	 	 
	EXECUTED as a deed by SPECIAL PHAGE	)	 
	HOLDINGS PTY LTD by its duly authorised	)	 
	representative, for and on behalf of in the	 	 
	presence of:	 	 
	 	 	 
	/s/ B. G. Halli Rajasekariah	 	/s/ DR. Anthony M. Smithyman
	Signature of Witness	 	Signature of Authorised Representative
	 	 	 
	 	 	 
	Name of Witness	 	 
	(Please print)	 	 
	B. G. Halli Rajasekariah	 	 
	 	 	 
	The Payer	 	 
	 	 	 
	EXECUTED as a deed by AMPLIPHI	)	 
	BIOSCIENCES CORPORATION in accordance	)	 
	with section 127(1) of the Corporations Act	)	 
	2001	 	 
	 	 	 
	/s/ Philip Young	 	 
	Signature of Director	 	Signature of Director / Company Secretary
	 	 	(delete as applicable)
	 	 	 
	Philip Young	 	 
	Name of Director	 	Name of Director / Company Secretary
	(Please print)	 	(Please print)

 

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		Loan Repayment Deed

 

Annexure A             Sophisticated
Investor Certificate

 

SOPHISTICATED INVESTOR CERTIFICATE

 

I certify to Ampliphi Biosciences Corporation, that:

 

		1.	I am one of the following [please tick the appropriate
box]:

 

		 ̈	A member of the Australian Society of the Certified Practising Accountants (ASPCA) entitled to use the post-nominals ‘CPA’
or ‘FCPA’ and subject to and complying with the ASCPA’s continuing professional requirements;

 

		þ	A member of the Institute of the Chartered Accountants in New Zealand (CANZ) entitled to use the post-nominals
                                                                                                             ‘CA’ or ‘ACA’ and subject to complying with the CANZ’s continuing professional requirements;
or                                                                                                             

 

		 ̈	A member of the National Institute of Accountants (NIA) entitled to use the post-nominals ‘MNIA’ or ‘FNIA’
and subject to and complying with the NIA’s continuing professional requirements; and

 

		2.	The investor named below has, for the purpose of the requirements of section 708(B)(c) and section
761G(7)(c) of the Corporations Act, either:

 

		·	Net assets of at least $2.5 million; and / or

 

		·	A gross income for each of the last two financial years of at least $250,000.

 

 

	Name of

 investor:	Cellabs Pty Ltd.	 

 

Dated:

 

	/s/
    DH. Crease	28/9/2012
	Signature of accountant 	 

 

	/s/ DH.
    Crease	 
	Name of accountant (please print)	 
	DH. Crease	 
	Crease Partners Pty
    Ltd.	 

 

Address of accountant

5/14 Kurraba Road,

Neutral Bay,

Neutral Bay

NSW 2089

 

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		Loan Repayment Deed

 

Annexure B U.S. Securities Laws Representations

 

I certify to Ampliphi Biosciences Corporation, that:

 

		(a)	Purchase Entirely for Own Account. The Payer Shares to be received by Lender are being acquired for Lender’s own
account not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that Lender has no
present intention of selling, granting any participation in, or otherwise distributing the same. The acquisition by Lender of the
Payer Shares shall constitute confirmation of the representation by such Lender that such Lender does not have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with
respect to any of the Payer Shares.

 

		(b)	Disclosure of Information. Lender believes it has received the information it considers necessary or appropriate for
deciding whether to acquire the Payer Shares. Lender further represents that it has had an opportunity to ask questions and receive
answers from the Borrower and Payer regarding the business, properties, prospects and financial condition of the Borrower and Payer.

 

		(c)	Investment Experience. Lender acknowledges that it is able to fend for itself, can bear the economic risk of its investment,
and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of
acquiring the Payer Shares. Lender acknowledges that any acquisition of Payer Shares involves a high degree of risk, and represents
that it is able, without materially impairing its financial condition, to hold the Payer Shares for an indefinite period of time
and to suffer a complete loss of its investment.

 

		(d)	Accredited Investor; Non-U.S. Persons. Lender either
                                                                 (A) is an “accredited investor” within the meaning
                                                                 of Securities and Exchange Commission (“SEC”) Rule
                                                                 501 of Regulation D, as presently in effect, or (B) (i) certifies
                                                                 that such Lender is not a “U.S. person” within the
                                                                 meaning of SEC Rule 902 of Regulation S, as presently in effect,
                                                                 and that Lender is not acquiring the Payer Shares for the account
                                                                 or benefit of any such U.S. person, (ii) agrees to resell the
                                                                 Payer Shares only in accordance with the provisions of Regulation
                                                                 S, pursuant to registration under the United States Securities
                                                                 Act of 1933, as amended (the “US Securities Act”),
                                                                 or pursuant to an available exemption from registration and agrees
                                                                 not to engage in hedging transactions with regard to such Payer
                                                                 Shares unless in compliance with the US Securities Act, (iii)
                                                                 agrees that any certificates for any Payer Shares issued to Lender
                                                                 shall contain a legend to the effect that transfer is prohibited
                                                                 except in accordance with the provisions of Regulation S, pursuant
                                                                 to registration under the US Securities Act or pursuant to an
                                                                 available exemption from registration and that hedging transactions
                                                                 involving such Payer Shares may not be conducted unless in compliance
                                                                 with the US Securities Act, and (iv) agrees that the Payer is
                                                                 hereby required to refuse to register any transfer of any Payer
                                                                 Shares issued to such Lender not made in accordance with the
                                                                 provisions of Regulation S, pursuant to registration under the
                                                                 US Securities Act, or pursuant to an available exemption from
                                                                 registration.

 

		(e)	Restricted Securities. Lender understands that the Payer Shares it is acquiring are characterized as “restricted
securities” under the U.S. federal securities laws inasmuch as they are being acquired from Payer in a transaction not involving
a public offering and that under such laws and applicable regulations such securities may be resold without registration under
the US Securities Act only in certain limited circumstances. In this connection, Lender represents that it is familiar with SEC
Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the US Securities Act. Lender understands that the Payer
Shares have not been and will not be registered under the US Securities Act and have not been and will not be registered or qualified
in any state in which they are offered, and thus Lender will not be able to resell or otherwise transfer his, her or its Payer
Shares unless they are registered under the US Securities Act and registered or qualified under applicable state securities laws,
or an exemption from such registration or qualification is available.

 

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		Loan Repayment Deed

  

		(f)	Further Limitations on Disposition. Without in any way limiting the representations set forth above, Lender further
agrees not to make any disposition of all or any portion of the Payer Shares unless:

 

		(i)	There is then in effect a registration statement under the US Securities Act covering such proposed disposition and such disposition
is made in accordance with such registration statement; or

 

		(ii)	(A) Lender shall have notified Payer of the proposed disposition and shall have furnished Payer with a detailed statement of
the circumstances surrounding the proposed disposition, and (B) if reasonably requested by the Payer (or its agents), Lender shall
have furnished Payer (or its agents) with an opinion of counsel reasonably satisfactory to Payer (or such agents) that such disposition
will not require registration of such shares under the US Securities Act.

 

		(g)	Legends. It is understood that the certificates evidencing the Payer Shares will bear the following legends:

 

		(i)	If the Lender is an ‘‘accredited investor” within the meaning of SEC Rule 501 of Regulation D, as presently
in effect:

 

“THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.”

 

		(ii)	If the Lender is not an “accredited investor” and is otherwise not a “U.S. person” within the meaning
of SEC Rule 902 of Regulation S, as presently in effect:

 

“THE SECURITIES REPRESENTED HEREBY HAVE BEEN
OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATIONS UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).”

 

“THE TRANSFER OF THESE SECURITIES IS PROHIBITED
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATIONS AS PROMULGATED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
UNDER THE ACT, PURSUANT TO REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION, AND HEDGING TRANSACTIONS
INVOLVING THESE SECURITIES (INCLUDING ANY SWAP OR ANY OTHER AGREEMENT OR ANY TRANSACTION THAT TRANSFERS, IN WHOLE OR IN PART, DIRECTLY
OR INDIRECTLY, THE ECONOMIC CONSEQUENCE OF OWNERSHIP OF THESE SECURITIES, WHETHER ANY SUCH SWAP, AGREEMENT OR TRANSACTION IS TO
BE SETTLED BY DELIVERY OF ALL OR ANY PORTION OF THESE SECURITIES OR ANY OTHER SECURITIES, IN CASH OR OTHERWISE), MAY NOT BE CONDUCTED
UNLESS IN COMPLIANCE WITH THE ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATIONS UNDER
THE ACT.”

 

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		Loan Repayment Deed

 

		(iii)	Any legends otherwise required by applicable securities laws.

 

	DR. Anthony Smithyman	 	Mrs. Margaret G. Smithyman
	Managing Director	 	Director
	CELLABS Pty Ltd	 	CELLABS Pty Ltd
	 	 	 
	/s/ Anthony Smithyman	 	/s/ Margaret G. Smithyman
	28/9/12	 	28/9/12
	 	 	 
	Philip J. Young	 	 
	CEO	 	 
	Ampliphi Biosciences	 	 
	/s/ Philip J. Young	 	 

 

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		Loan Repayment Deed

 

Application to Subscribe

 

	To:	Ampliphi Biosciences Corporation (“Company”)

800 E. Leigh St 54 Richmond, VA 23219, United States of America

 

	Attention:	Phil Young

 

Dear Sir

 

Application for shares pursuant to Loan Repayment Deed

 

[CELLABS PTY LTD]

 

	1.	hereby applies for the issue of 2,000,000 fully paid ordinary shares in the capital of the Company (“Consideration Shares”) on the terms and conditions of the Loan Repayment Deed;	 
	 	 	 
	3.	agrees to be bound by the constitution of the Company; and	 
	 	 	 
	4.	confirms that it is a sophisticated or professional investor in terms of sections 708(8) and 708(11) of the Corporations Act 2001.	 

 

Capitalised terms which are used but not defined in this application
have the meaning given to them (if any) in the Loan Repayment Deed.

 

Signed by and on behalf of

 

	DR. Anthony Smithyman	 	Mrs. Margaret G Smithyman
	Managing Director	 	Director
	CELLABS Pty Ltd	 	CELLABS Pty Ltd
	 	 	 
	/s/ Anthony Smithyman	 	/s/ Margaret G Smithyman
	28/9/12	 	28/9/12

 

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