Document:

Exhibit
10.1

 

[AMENDED
AND RESTATED] INDEMNIFICATION AGREEMENT

 

This
[Amended and Restated] Indemnification Agreement (“Agreement”) is made and entered into as of the day
of _________, 2017, by and between Eco-Stim Energy Solutions, Inc., a Nevada corporation (the “Company”),
and ________________ (“Indemnitee”).

 

RECITALS

 

A.
Highly competent and experienced persons are reluctant to serve corporations as directors, executive officers or in other capacities
unless they are provided with adequate protection through insurance and indemnification against claims and actions against them
arising out of their service to and activities on behalf of the corporation.

 

B.
The Board of Directors of the Company (the “Board”) has determined that the inability to attract and
retain such persons would be detrimental to the best interests of the Company and its stockholders and that the Company should
act to assure such persons that there will be increased certainty of such protection in the future.

 

C.
The Board has also determined that it is reasonable, prudent and necessary for the Company, in addition to purchasing and maintaining
directors’ and officers’ liability insurance (or otherwise providing for adequate arrangements of self-insurance),
contractually to obligate itself to indemnify such persons to the fullest extent permitted by applicable law so that they will
serve or continue to serve the Company free from undue concern that they will not be adequately protected.

 

D.
[For directors with existing Indemnification Agreements: Indemnitee and the Company are parties to an Indemnification Agreement
dated as of October 1, 2014 (the “Existing Indemnification Agreement”), and in connection with Indemnitee’s
continued service to the Company, it has been proposed that such Indemnification Agreement be amended and restated in its entirety
as provided herein.]

 

E.
Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company, but only
on the condition that Indemnitee be so indemnified to the fullest extent permitted by law, as permitted herein.

 

F.
Article 4.2 of the Amended and Restated Articles of Incorporation of the Company requires the Company to indemnify its directors
and officers to the fullest extent permitted by law.

 

In
consideration of the foregoing and the mutual covenants herein contained, and other good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties hereby agree as follows:

 

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Article
I

Certain Definitions

 

As
used herein, the following words and terms shall have the following respective meanings (whether singular or plural):

 

“Acquiring
Person” means any Person other than (i) the Company, (ii) any of the Company’s Subsidiaries, (iii) any employee
benefit plan of the Company or of a Subsidiary of the Company or of a Company owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company, or (iv) any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or of a Subsidiary of the Company or of a Company owned
directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company.

 

“Change
in Control” means the occurrence of any of the following events:

 

(i)
The acquisition, after the date of this Agreement, by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 40% or more of either (x) the then outstanding shares of Common Stock of the Company (the “Outstanding
Company Common Stock”) or (y) the combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that for purposes of this Subparagraph (i), the following acquisitions shall not constitute a Change
of Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (D) any
acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of
paragraph (iii) below; or

 

(ii)
Members of the Incumbent Board cease for any reason to constitute at least a majority of the Board; or

 

(iii)
Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets
of the Company or an acquisition of assets of another entity (a “Business Combination”), in each case,
unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of
common equity and the combined voting power of the then outstanding voting securities entitled to vote generally in the election
of directors or other similar governing body, as the case may be, of the entity resulting from such Business Combination (including,
without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately
prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case
may be, (B) no Person (excluding any employee benefit plan (or related trust) of the Company or the entity resulting from such
Business Combination) beneficially owns, directly or indirectly, 40% or more of, respectively, the then outstanding shares of
common equity of the entity resulting from such Business Combination or the combined voting power of the then outstanding voting
securities of such entity except to the extent that such ownership results solely from ownership of the Company that existed prior
to the Business Combination and (C) at least a majority of the members of the board of directors or other similar governing body
of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board, providing for such Business Combination; or

 

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(iv)
Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

“Claim”
means (i) an actual or threatened claim or request for relief which was, is or may be made by reason of anything done or not done
by Indemnitee in, or by reason of any event or occurrence related to, Indemnitee’s Corporate Status and (ii) any threatened,
pending or completed action, suit, arbitration, investigation, inquiry, alternate dispute resolution mechanism, administrative
or legislative hearing, or any other proceeding (including, without limitation, any securities laws action, suit, arbitration,
alternative dispute resolution mechanism, hearing or procedure) whether civil, criminal, administrative, arbitrative or investigative
and whether or not based upon events occurring, or actions taken, before the date hereof, and any appeal in or related to any
such action, suit, arbitration, investigation, hearing or proceeding and any inquiry or investigation (including discovery), whether
conducted by or in the right of the Company or any other Person, that Indemnitee in good faith believes could lead to any such
action, suit, arbitration, alternative dispute resolution mechanism, hearing or other proceeding or appeal thereof.

 

“Corporate
Status” means the status of a person who is, becomes or was a director, officer, employee, agent or fiduciary of
the Company or is, becomes or was serving at the request of the Company as a director, officer, partner, member, venturer, proprietor,
trustee, employee, agent, fiduciary or similar functionary of another foreign or domestic corporation, partnership, limited liability
company, joint venture, sole proprietorship, trust, employee benefit plan or other enterprise. For purposes of this Agreement,
the Company agrees that Indemnitee’s service on behalf of or with respect to any Subsidiary of the Company shall be deemed
to be at the request of the Company.

 

“Disinterested
Director” with respect to any request by Indemnitee for indemnification hereunder, means a director of the Company
who at the time of the vote is not a named defendant or respondent in the Claim in respect of which indemnification is sought
by Indemnitee.

 

“Exchange
Act” means the Securities Exchange Act of 1934.

 

“Expenses”
means all attorneys’ fees and disbursements, retainers, accountant’s fees and disbursements, private investigator
fees and disbursements, court costs, transcript costs, fees and expenses of experts, witness fees and expenses, costs and obligations
under any bond posted in connection with any Claim, travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees and all other disbursements, costs or expenses of the types customarily incurred in connection
with prosecuting, defending (including affirmative defenses and counterclaims), preparing to prosecute or defend, investigating,
being or preparing to be a witness in, or otherwise participating in or preparing to participate in (including on appeal) a Claim
and all interest or finance charges attributable to any thereof. Should any payments by the Company under this Agreement be determined
to be subject to any federal, state or local income or excise tax, “Expenses” shall also include such amounts as are
necessary to place Indemnitee in the same after-tax position (after giving effect to all applicable taxes) as Indemnitee would
have been in had no such tax been determined to apply to such payments. Also, in this Agreement “witness” includes
responding (or objecting) to a discovery request, whether in writing or in an oral deposition, in any Claim.

 

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“Final
Adjudication” means a final adjudication by a court from which there is no further right of appeal or a final adjudication
of an arbitration pursuant to Section 5.1 if Indemnitee elects to seek such arbitration.

 

“Incumbent
Board” means the individuals who, as of the date of this Agreement, constitute the Board and any other individual
who becomes a director of the Company after that date and whose election or appointment by the Board or nomination for election
by the Company’s stockholders was approved by a vote of at least a majority of the directors then comprising the Incumbent
Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Incumbent Board.

 

“Indemnity
Obligations” shall mean all obligations of the Company to Indemnitee under this Agreement, including the Company’s
obligations to provide indemnification to Indemnitee and advance Expenses to Indemnitee under this Agreement.

 

“Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither
contemporaneously is, nor in the five years theretofore has been, retained to represent: (i) the Company, any subsidiary of the
Company, or Indemnitee in any matter material to either such Person (other than as Independent Counsel under this Agreement or
similar agreements), (ii) any other party to the Claim giving rise to a claim for indemnification hereunder or (iii) the beneficial
owner, directly or indirectly, of securities of the Company representing 5% or more of the combined voting power of the Company’s
then outstanding voting securities, or Person controlled by such a beneficial owner (other than, in each such case under clauses
(i) through (iii)), with respect to matters concerning the rights of Indemnitee under this Agreement, or of other indemnitees
under similar indemnification agreements). Notwithstanding the foregoing, the term “Independent Counsel” shall not
include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest
in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

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“Independent
Directors” means the directors on the Board that are independent directors as defined in NASDAQ Marketplace Rule
4200(a)(15) or successor provision, or, if the Company’s Common Stock is not then quoted on the NASDAQ Global Select Market,
that qualify as independent, disinterested, or a similar term as defined in the rules of the principal securities exchange or
inter-dealer quotation system on which the Company’s Common Stock is then listed or quoted.

 

“NGCL”
means the Nevada general corporation law as set forth in Chapter 78 of the Nevada Revised Statutes, and any successor statute
thereto, as either of them may from time to time be amended.

 

“Person”
means any individual, entity or group (within the meaning of Sections 13(d)(3) and 14(d)(2) of the Exchange Act).

 

“Potential
Change in Control” shall be deemed to have occurred if (i) any Person shall have announced publicly an intention
to effect a Change in Control, or commenced any action (such as the commencement of a tender offer for the Company’s Outstanding
Company Common Stock or Outstanding Company Voting Securities or the solicitation of proxies for the election of any of the Company’s
directors) that, if successful, could reasonably be expected to result in the occurrence of a Change in Control; (ii) the Company
enters into an agreement, the consummation of which would constitute a Change in Control; or (iii) any other event occurs which
the Board declares to be a Potential Change of Control.

 

“Sponsor
Entities” means [For Fir Tree directors: Fir Tree Inc. and FT SOF VII Holdings, LLC] [For Don Stoltz:
Bienville Capital Management and Bienville Argentina Opportunities Fund 2.0, L.P.] and any of their respective Affiliates
and any investment fund or other Person advised or managed by any Sponsor Entity; provided, however, that neither the Company
or any of its subsidiaries shall be considered Sponsor Entities.

 

“Subsidiary”
means, with respect to any Person, any corporation or other entity of which a majority of the voting power of the voting equity
securities or equity interest is owned, directly or indirectly, by that Person.

 

“Voting
Securities” means any securities that vote generally in the election of directors, in the admission of general partners,
or in the selection of any other similar governing body.

 

Article
II

Services by Indemnitee

 

Indemnitee
is serving as a director of the Company. Indemnitee may from time to time also agree to serve, as the Company may request from
time to time, in another capacity for the Company (including another officer or director position) or as a director, officer,
partner, member, venturer, proprietor, trustee, employee, agent, fiduciary or similar functionary of another foreign or domestic
corporation, partnership, joint venture, limited liability company, sole proprietorship, trust, employee benefit plan or other
enterprise. Indemnitee and the Company each acknowledge that they have entered into this Agreement as a means of inducing Indemnitee
to serve, or continue to serve, the Company in such capacities. Indemnitee may at any time and for any reason resign from such
position or positions (subject to any other contractual obligation or any obligation imposed by operation of law). The Company
shall have no obligation under this Agreement to continue Indemnitee in any such position or positions.

 

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Article
III

Indemnification

 

Section
3.1 General. Subject to the provisions set forth in Article IV, the Company shall indemnify, and advance
Expenses to, Indemnitee to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent
as applicable law may hereafter from time to time permit. The other provisions set forth in this Agreement are provided in addition
to and as a means of furtherance and implementation of, and not in limitation of, the obligations expressed in this Article
III. No requirement, condition to or limitation of any right to indemnification or to advancement of Expenses under this Article
III shall in any way limit the rights of Indemnitee under Article VII.

 

Section
3.2 Additional Indemnity of the Company.

 

(a)
Indemnitee shall be entitled to indemnification pursuant to this Section 3.2(a) if, by reason of anything done or not done
by Indemnitee in, or by reason of any event or occurrence related to, Indemnitee’s Corporate Status, Indemnitee is, was
or becomes, or is threatened to be made, a party to, or witness or other participant in any Claim. Pursuant to this Section
3.2(a), Indemnitee shall be indemnified against any and all Expenses, judgments, penalties (including excise or similar taxes),
fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with
or in respect of any such Expenses, judgments, penalties, fines and amounts paid in settlement) actually and reasonably incurred
by Indemnitee or on Indemnitee’s behalf in connection with such Claim, issue or matter therein. Notwithstanding the foregoing,
the obligations of the Company under this Section 3.2(a) shall be subject to the condition that no determination (which,
in any case in which Independent Counsel is involved, shall be in a form of a written opinion) shall have been made pursuant to
Article IV that Indemnitee would not be permitted to be indemnified under applicable law. Nothing in this Section 3.2(a)
shall limit the benefits of Section 3.1, Section 3.3 or any other Section hereunder.

 

(b)
Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to indemnify or hold
harmless Indemnitee in connection with any Claim initiated by Indemnitee[, or if Indemnitee was nominated to the Board by one
or more of the Sponsor Entities, such Sponsor Entity,] against the Company or its directors, officers, employees or other indemnitees,
unless (i) the Board authorized the Claim prior to its initiation, (ii) the Company provides the indemnification, in its sole
discretion, pursuant to the powers vested in the Company under applicable law, or (iii) such Claim is being brought by Indemnitee
to assert, interpret or enforce Indemnitee’s rights under this Agreement (for the avoidance of doubt, Indemnitee shall not
be deemed, for purposes of this subsection, to have initiated or brought any claim by reason of (A) having asserted any affirmative
defenses in connection with a claim not initiated by Indemnitee or (B) having made any counterclaim (whether permissive or mandatory)
in connection with any claim not initiated by Indemnitee).

 

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Section
3.3 Advancement of Expenses. The Company shall, on a current and as-incurred basis, pay all Expenses reasonably
incurred by, or, in the case of retainers, to be incurred by, or on behalf of Indemnitee (or, if applicable, reimburse Indemnitee
for any and all Expenses reasonably incurred by Indemnitee and previously paid by Indemnitee) in connection with any Claim, whether
brought by the Company or otherwise, in advance of the later of (a) the final, non-appealable determination or resolution of all
such Claims and (b) any determination respecting entitlement to indemnification pursuant to Article IV hereof (and shall
continue to pay such Expenses after such determination and until it shall ultimately be determined (in a Final Adjudication) that
Indemnitee is not entitled to be indemnified by the Company against such Expenses). Such payments and advances shall be made within
10 days after the receipt by the Company of a written request from Indemnitee requesting such payment or payments from time to
time, whether prior to or after the final, non-appealable determination or resolution of such Claim. Any such payment by the Company
is referred to in this Agreement as an “Expense Advance.” Any dispute as to the reasonableness of the
incurrence of any Expense shall not delay an Expense Advance by the Company, and the Company agrees that any such dispute shall
be resolved only upon the final, non-appealable determination or resolution of the respective underlying Claim involving Indemnitee.
Indemnitee hereby undertakes and agrees that Indemnitee will reimburse and repay the Company, without interest, for any Expense
Advances to the extent that it shall ultimately be determined (in a Final Adjudication) that Indemnitee is not entitled under
the law to be indemnified by the Company against such Expenses. Indemnitee shall not be required to provide collateral or otherwise
secure the undertaking and agreement described in the prior sentence. The Company shall make all Expense Advances pursuant to
this Section 3.3 without regard to the financial ability of the Indemnitee to make repayment and without regard to whether
or not the Indemnitee may ultimately be found to be entitled to indemnification under the provisions of this Agreement.

 

Section
3.4 Indemnification for Additional Expenses. The Company shall indemnify Indemnitee against any and all costs and
expenses (of the types described in the definition of Expenses in Article I) and, if requested by Indemnitee, shall (within
two business days of that request) advance those costs and expenses to Indemnitee, that are incurred by Indemnitee in connection
with any claim asserted against, or action brought by, Indemnitee for (a) indemnification or an Expense Advance by the Company
under this Agreement or any other agreement or provision of the Company’s Articles of Incorporation or Bylaws now or hereafter
in effect relating to any Claim, (b) recovery under any directors’ and officers’ liability insurance policies maintained
by the Company, or (c) enforcement of, or claims for breaches of, any provision of this Agreement, in each of the foregoing situations
regardless of whether Indemnitee ultimately is determined to be entitled to that indemnification, Expense Advance payment, insurance
recovery, enforcement, or damage claim, as the case may be and regardless of whether the nature of the proceeding with respect
to such matters is judicial, by arbitration, or otherwise.

 

Section
3.5 Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of the Expenses, judgments, fines, penalties, and amounts paid in settlement of a Claim but not,
however, for all of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which
Indemnitee is entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise in defense of any or all Claims, or in defense of any issue or matter therein, including
dismissal without prejudice, Indemnitee shall be indemnified against all Expenses incurred in connection therewith.

 

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Article
IV

Procedure for Determination of Entitlement to Indemnification

 

Section
4.1 Request by Indemnitee. To obtain indemnification under this Agreement, Indemnitee shall, at such time as determined
by Indemnitee in Indemnitee’s sole discretion, submit to the Company a written request, including therein or therewith such
documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to
what extent Indemnitee is entitled to indemnification. The Secretary or an Assistant Secretary of the Company shall, promptly
upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
Nevertheless, any failure of Indemnitee to provide a request to the Company, or to provide such a request within any time frame,
shall not relieve the Company of any liability that it may have to Indemnitee hereunder.

 

Section
4.2 Determination of Request. Upon written request by Indemnitee for indemnification pursuant to the first sentence
of Section 4.1 hereof, a determination, if required by applicable law, with respect to whether Indemnitee is permitted
under applicable law to be indemnified shall be made in accordance with the terms of Section 4.5, in the specific case
as set forth in this Section 4.2:

 

(a)
If a Potential Change in Control or a Change in Control shall have occurred, by Independent Counsel (selected in accordance with
Section 4.3) in a written opinion to the Board and Indemnitee, unless Indemnitee shall request that such determination
be made by the Board, or a committee of the Board, in which case by the person or persons or in the manner provided for in clause
(i) or (ii) of paragraph (b) below; or

 

(b)
If a Potential Change in Control or a Change in Control shall not have occurred, then the determination shall be made by one of
the following, in Indemnitee’s sole discretion, as the Indemnitee requests in writing: (i) by the Board by a majority vote
of the Disinterested Directors even though less than a quorum of the Board, or (ii) by a majority vote of a committee solely of
two or more Disinterested Directors designated to act in the matter by a majority vote of all Disinterested Directors even though
less than a quorum of the Board, or (iii) by Independent Counsel selected by the Board or a committee of the Board by a vote as
set forth in clauses (i) or (ii) of this paragraph (b), or if such vote is not obtainable or such a committee
cannot be established, by a majority vote of all directors, or (iv) by the stockholders of the Company in a vote that excludes
the shares held by directors who are not Disinterested Directors.

 

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If
it is so determined that Indemnitee is permitted to be indemnified under applicable law, payment to Indemnitee shall be made within
10 days after such determination. Nothing contained in this Agreement shall require that any determination be made under this
Section 4.2 prior to the final, non-appealable determination or resolution of a Claim involving Indemnitee for which indemnification
is sought hereunder; provided, that Expense Advances shall continue to be made by the Company pursuant to, and to the extent required
by, the provisions of Article III. Indemnitee shall cooperate with the person or persons making such determination with
respect to Indemnitee’s entitlement to indemnification, including providing to such person upon reasonable advance request
any documentation or information that is not privileged or otherwise protected from disclosure and that is reasonably available
to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements)
incurred by Indemnitee in so cooperating with the person or persons making such determination shall be borne by the Company (irrespective
of the determination as to Indemnitee’s entitlement to indemnification), and the Company shall indemnify and hold harmless
Indemnitee therefrom.

 

Section
4.3 Independent Counsel. If the determination of entitlement to indemnification is to be made by Independent Counsel,
the Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written notice to the Company, within 10 days
after submission of Indemnitee’s request for indemnification, specifying the identity and address of the Independent Counsel
so selected, unless Indemnitee shall request that such selection be made by the Disinterested Directors or a committee of the
Board, in which event the Company shall give written notice to Indemnitee within 10 days after receipt of Indemnitee’s request
for the Board or a committee of the Disinterested Directors to make such selection, specifying the identity and address of the
Independent Counsel so selected. In either event, (a) such notice to Indemnitee or the Company, as the case may be, shall be accompanied
by a written confirmation by the Independent Counsel so selected that it satisfies the requirements of the definition of “Independent
Counsel” in Article I and that it agrees to serve in such capacity and (b) Indemnitee or the Company, as the case
may be, may, within seven days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee,
as the case may be, a written objection to such selection. Any objection to the selection of Independent Counsel pursuant to this
Section 4.3 may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements
of the definition of “Independent Counsel” in Article I, and the objection shall set forth with particularity
the factual basis of such assertion. If such written objection is timely made, the Independent Counsel so selected may not serve
as Independent Counsel unless and until a court of competent jurisdiction (the “Court”) has determined
that such objection is without merit or such objection is withdrawn. In the event of a timely written objection to a choice of
Independent Counsel, the party originally selecting the Independent Counsel shall have seven days to make an alternate selection
of Independent Counsel and to give written notice of such selection to the other party, after which time such other party shall
have five days to make a written objection to such alternate selection. If, within 30 days after submission of Indemnitee’s
request for indemnification pursuant to Section 4.1, no Independent Counsel shall have been selected and not objected to,
either the Company or Indemnitee may petition the Court for resolution of any objection that shall have been made by the Company
or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person
selected by the Court or by such other person as the Court shall designate, and the person with respect to whom an objection is
so resolved or the person so appointed shall act as Independent Counsel under Section 4.2. The Company shall pay any and
all fees and expenses reasonably incurred by such Independent Counsel in connection with acting pursuant to Section 4.2,
and the Company shall pay all fees and expenses reasonably incurred incident to the procedures of this Section 4.3, regardless
of the manner in which such Independent Counsel was selected or appointed. Upon the due commencement of any judicial proceeding
or arbitration pursuant to Section 5.1, Independent Counsel shall be discharged and relieved of any further responsibility
in such capacity (subject to the applicable standards of professional conduct then prevailing).

 

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Section
4.4 Establishment of a Trust. In the event of a Potential Change in Control or a Change in Control, the Company
shall, upon written request by Indemnitee, create a trust for the benefit of Indemnitee (the “Trust”)
and from time to time upon written request of Indemnitee shall fund the Trust in an amount sufficient to satisfy any and all Expenses
reasonably anticipated at the time of each such request to be incurred in connection with investigating, preparing for, and defending
any Claim, and any and all judgments, fines, penalties, and settlement amounts of any and all Claims from time to time actually
paid or claimed, reasonably anticipated, or proposed to be paid. The amount to be deposited in the Trust pursuant to the foregoing
funding obligation shall be determined by the Independent Counsel (or other person(s) making the determination of whether Indemnitee
is permitted to be indemnified by applicable law). The terms of the Trust shall provide that, upon a Change in Control, (a) the
Trust shall not be revoked or the principal thereof invaded, without the written consent of Indemnitee; (b) the trustee of the
Trust shall advance to Indemnitee, within ten days of a request by Indemnitee, any and all Expenses reasonably incurred by, or
in case of retainer to be incurred by, or on behalf of Indemnitee (or, if applicable, reimburse Indemnitee for any Expense reasonably
incurred by Indemnitee and previously paid by Indemnitee), with any required determination concerning the reasonableness of the
Expenses to be made by the Independent Counsel (and Indemnitee hereby agrees to reimburse the Trust under the circumstances in
which Indemnitee would be required to reimburse the Company for Expense Advances under Section 3.3 of this Agreement);
(c) the Trust shall continue to be funded by the Company in accordance with the funding obligation set forth above; (d) the trustee
of the Trust shall promptly pay to Indemnitee all amounts for which Indemnitee shall be entitled to indemnification pursuant to
this Agreement; and (e) all unexpended funds in the Trust shall revert to the Company upon a final determination by the Independent
Counsel or a Final Adjudication, as the case may be, that Indemnitee has been fully indemnified under the terms of this Agreement.
The trustee of the Trust shall be chosen by Indemnitee and shall be an institution that is not affiliated with Indemnitee. Nothing
in this Section 4.4 shall relieve the Company of any of its obligations under this Agreement.

 

Section
4.5 Presumptions and Effect of Certain Proceedings.

 

(a)
Indemnitee shall be presumed to be entitled to indemnification under this Agreement upon submission of a request for indemnification
under Section 4.1, and the Company shall have the burden of proof in overcoming that presumption in reaching a determination
contrary to that presumption. Such presumption shall be used by Independent Counsel (or other person or persons determining entitlement
to indemnification) as a basis for a determination of entitlement to indemnification unless the Company provides information sufficient
to overcome such presumption by clear and convincing evidence or unless the investigation, review and analysis of Independent
Counsel (or such other person or persons) convinces Independent Counsel by clear and convincing evidence that the presumption
should not apply.

 

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(b)
If the person or persons empowered or selected under Article IV of this Agreement to determine whether Indemnitee is entitled
to indemnification shall not have made a determination within 60 days after receipt by the Company of the request by Indemnitee
therefor, the determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled
to such indemnification; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional
30 days, if the person making the determination with respect to entitlement to indemnification in good faith requires such additional
time for the obtaining or evaluating of documentation and/or information relating to such determination; and provided, further,
that the 60-day limitation set forth in this Section 4.5(b) shall not apply and such period shall be extended as necessary
(i) if within 30 days after receipt by the Company of the request for indemnification under Section 4.1 Indemnitee and
the Company have agreed, and the Board has resolved to submit such determination to the stockholders of the Company pursuant to
Section 4.2(b) for their consideration at an annual meeting of stockholders to be held within 90 days after such agreement
and such determination is made thereat, or a special meeting of stockholders is called within 30 days after such receipt for the
purpose of making such determination, such meeting is held for such purpose within 60 days after having been so called and such
determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel
pursuant to Section 4.2(a) of this Agreement, in which case the applicable period shall be as set forth in Section 5.1(c).

 

(c)
The termination of any Claim, issue or matter by judgment, order, settlement (whether with or without court approval) or conviction,
or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) by itself
adversely affect the rights of Indemnitee to indemnification or create a presumption that Indemnitee failed to meet any particular
standard of conduct, that Indemnitee had any particular belief, or that a court has determined that indemnification is not permitted
by applicable law. Indemnitee may be found to have failed to meet any particular standard of conduct in respect of any Claim,
issue or matter only after Indemnitee shall have been so adjudged by the Court or arbitrator, as applicable, after exhaustion
of all appeals therefrom.

 

(d)
For purposes of the second sentence of Section 3.5, a settlement or other resolution of a Claim short of final judgment
may be successful if it permits a party to avoid expense, delay, distraction, disruption and uncertainty. For purposes of the
second sentence of Section 3.5, in the event that any Claim to which Indemnitee is a party is resolved in any manner other
than by adverse judgment against Indemnitee (including settlement of such Claim with or without payment of money or other consideration),
it shall be presumed that Indemnitee has been successful on the merits or otherwise in such Claim. Anyone seeking to overcome
this presumption shall have the burden of proof by clear and convincing evidence.

 

    	 	11	 

    	 	 	 

    

 

(e)
The failure of the Company (including by its directors or Independent Counsel) to have made a determination before the commencement
of any action pursuant to this Agreement that indemnification is proper because Indemnitee has met the applicable standard of
conduct shall not be a defense to the action or create a presumption that Indemnitee has not met the standard of conduct.

 

Article
V

Certain Remedies of Indemnitee

 

Section
5.1 Indemnitee Entitled to Adjudication in an Appropriate Court. If (a) a determination is made pursuant to Article
IV that Indemnitee is not entitled to indemnification under this Agreement; (b) there has been any failure by the Company
to make timely payment or advancement of any amounts due hereunder (including, without limitation, any Expense Advances); or (c)
the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 4.2 and such
determination shall not have been made and delivered in a written opinion within 60 days after the latest of (i) such Independent
Counsel’s being appointed, (ii) the overruling by the Court of objections to such counsel’s selection, or (iii) expiration
of all periods for the Company or Indemnitee to object to such counsel’s selection, Indemnitee shall be entitled to commence
an action seeking an adjudication in the Court of Indemnitee’s entitlement to such indemnification or advancements due hereunder,
including, without limitation, Expense Advances. Alternatively, Indemnitee, in Indemnitee’s sole discretion, may seek an
award in arbitration to be conducted by a single arbitrator pursuant to the commercial arbitration rules of the American Arbitration
Association. Indemnitee shall commence such action seeking an adjudication or an award in arbitration within 180 days following
the date on which Indemnitee first has the right to commence such action pursuant to this Section 5.1, or such right shall
expire. The Company agrees not to oppose Indemnitee’s right to seek any such adjudication or award in arbitration and it
shall continue to pay Expense Advances pursuant to Section 3.3 until it shall ultimately be determined (in a Final Adjudication)
that Indemnitee is not entitled to be indemnified by the Company against such Expenses.

 

Section
5.2 Adverse Determination Not to Affect any Judicial Proceeding. If a determination shall have been made pursuant
to Article IV that Indemnitee is not entitled to indemnification under this Agreement, any judicial proceeding or arbitration
commenced pursuant to this Article V shall be conducted in all respects as a de novo trial or arbitration on the merits,
and Indemnitee shall not be prejudiced by reason of such initial adverse determination. In any judicial proceeding or arbitration
commenced pursuant to this Article V, Indemnitee shall be presumed to be entitled to indemnification or advancement of
Expenses, as the case may be, under this Agreement and the Company shall have the burden of proof in overcoming such presumption
and to show by clear and convincing evidence that Indemnitee is not entitled to indemnification or advancement of Expenses, as
the case may be.

 

Section
5.3 Company Bound by Determination Favorable to Indemnitee in any Judicial Proceeding or Arbitration. If a determination
shall have been made or deemed to have been made pursuant to Article IV that Indemnitee is entitled to indemnification,
the Company shall be irrevocably bound by such determination in any judicial proceeding or arbitration commenced pursuant to this
Article V, and shall be precluded from asserting that such determination has not been made or that the procedure by which
such determination was made is not valid, binding and enforceable.

 

    	 	12	 

    	 	 	 

    

 

Section
5.4 Company Bound by the Agreement. The Company shall be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Article V that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement. Without limiting the generality of the preceding sentence, the Company shall not seek from a court,
or agree to, a “bar order” that would have the effect of prohibiting or limiting Indemnitee’s rights to advancement
of any Expenses under this Agreement.

 

Article
VI

Contribution

 

Section
6.1 Contribution Payment.

 

(a)
Whether or not the indemnification provided in Article III hereof is available, in respect of any threatened, pending or
completed action, suit or Claim in which the Company is jointly liable with Indemnitee (or would be if joined in such action,
or Claim), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such action, suit
or Claim without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right
of contribution it may have against Indemnitee. The Company shall not enter into any settlement of any action, suit or Claim in
which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or Claim) unless such settlement
provides for a full and final release of all claims asserted against Indemnitee.

 

(b)
Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee
shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action,
suit or Claim in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or Claim), the
Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred
and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors or
employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action,
suit or Claim), on the one hand, and Indemnitee, on the other hand, from the transaction or events from which such action, suit
or Claim arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary
to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees
of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or Claim),
on the one hand, and Indemnitee, on the other hand, in connection with the transaction or events that resulted in such Expenses,
judgments, fines or settlement amounts, as well as any other equitable considerations which applicable law may require to be considered.

 

    	 	13	 

    	 	 	 

    

 

(c)
The Company hereby agrees, to the fullest extent permitted by applicable law, to fully indemnify and hold Indemnitee harmless
from any claims of contribution which may be brought by officers, directors or employees of the Company, other than Indemnitee,
who may be jointly liable with Indemnitee.

 

(d)
To the fullest extent permissible under applicable law and without diminishing or impairing the obligations of the Company set
forth in the preceding subparagraphs of this Section 6.1, if the indemnification provided for in this Agreement is unavailable
to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred
by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses,
in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and
reasonable in light of all of the circumstances of such Claim in order to reflect (i) the relative benefits received by the Company
and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Claim; and/or (ii) the relative fault of
the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

Section
6.2 Relative Fault. The relative fault of the Indemnitee, on the one hand, and of the Company and any and all other
parties (including officers and directors of the Company other than Indemnitee) who may be at fault with respect to such matter
shall be determined (i) by reference to the relative fault of Indemnitee as determined by the court or other governmental agency
assessing the contribution amounts or (ii) to the extent such court or other governmental agency does not apportion relative fault,
by the Independent Counsel (or such other party which makes a determination under Article IV) after giving effect to, among
other things, the degree of which their actions were motivated by intent to gain personal profit or advantage, the degree to which
their liability is primary or secondary, the degree to which their conduct is active or passive, the degree of the knowledge,
access to information, and opportunity to prevent or correct the subject matter of the Claims and other relevant equitable considerations
of each party. The Company and Indemnitee agree that it would not be just and equitable if contribution pursuant to this Section
6.2 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable
considerations referred to in this Section 6.2.

 

Article
VII

Miscellaneous

 

Section
7.1 Non-Exclusivity. The rights of Indemnitee to receive indemnification and advancement of Expenses under this
Agreement shall be in addition to, and shall not be deemed exclusive of, any other rights Indemnitee shall under the NGCL or other
applicable law, the charter or bylaws of the Company, any other agreement, vote of stockholders or a resolution of directors,
or otherwise. Every other right or remedy of Indemnitee shall be cumulative of the rights and remedies granted Indemnitee hereunder.
No amendment or alteration of the charter or bylaws of the Company or any provision thereof shall adversely affect Indemnitee’s
rights hereunder, and such rights shall be in addition to any rights Indemnitee may have under the charter, bylaws and the NGCL
or other applicable law. To the extent that there is a change in the NGCL or other applicable law (whether by statute or judicial
decision) that allows greater indemnification by agreement than would be afforded currently under the Company’s charter
or bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by virtue of this Agreement the
greater benefit so afforded by such change. Any amendment, alteration or repeal of the NGCL that adversely affects any right of
Indemnitee shall be prospective only and shall not limit or eliminate any such right with respect to any Claim involving any occurrence
or alleged occurrence of any action or omission to act that took place before the effective date of such amendment or repeal.

 

    	 	14	 

    	 	 	 

    

 

Section
7.2 Insurance and Subrogation.

 

(a)
[To be included for directors related to Sponsor Entities: The Company hereby acknowledges that Indemnitee may have certain
rights to indemnification, advancement and insurance provided by one or more Persons with whom or which Indemnitee may be associated
(including, without limitation, any Sponsor Entity). The Company hereby acknowledges and agrees that (i) the Company shall be
the indemnitor of first resort with respect to any Claim that is the subject of the Indemnity Obligations, (ii) the Company shall
be primarily liable for all Indemnity Obligations and any indemnification afforded to Indemnitee in respect of any Claim that
is the subject of Indemnity Obligations, whether created by applicable law, organizational or constituent documents, contract
(including this Agreement) or otherwise, (iii) any obligation of any other Persons with whom or which Indemnitee may be associated
(including, without limitation, any Sponsor Entity) to indemnify Indemnitee or advance Expenses to Indemnitee in respect of any
Claim shall be secondary to the obligations of the Company hereunder, (iv) the Company shall be required to indemnify Indemnitee
and advance Expenses to Indemnitee hereunder to the fullest extent provided herein without regard to any rights Indemnitee may
have against any other Person with whom or which Indemnitee may be associated (including, without limitation, any Sponsor Entity)
or insurer of any such Person and (v) the Company irrevocably waives, relinquishes and releases any other Person with whom or
which Indemnitee may be associated (including, without limitation, any Sponsor Entity) from any claim of contribution, subrogation
or any other recovery of any kind in respect of amounts paid by the Company hereunder. In the event any other Person with whom
or which Indemnitee may be associated (including, without limitation, any Sponsor Entity) or their insurers advances or extinguishes
any liability or loss which is the subject of any Indemnity Obligation owed by the Company or payable under any Company insurance
policy, the payor shall have a right of subrogation against the Company or its insurer or insurers for all amounts so paid which
would otherwise be payable by the Company or its insurer or insurers under this Agreement. In no event will payment of an Indemnity
Obligation by any other Person with whom or which Indemnitee may be associated (including, without limitation, any Sponsor Entity)
or their insurers affect the obligations of the Company hereunder or shift primary liability for any Indemnity Obligation to any
other Person with whom or which Indemnitee may be associated (including, without limitation, any Sponsor Entity). Any indemnification,
insurance or advancement provided by any other Person with whom or which Indemnitee may be associated (including, without limitation,
any Sponsor Entity) with respect to any Claim arising as a result of Indemnitee’s Corporate Status or capacity as an officer
or director of any Person is specifically in excess over any Indemnity Obligation of the Company or any collectible insurance
(including but not limited to any malpractice insurance or professional errors and omissions insurance) provided by the Company
under this Agreement.]

 

    	 	15	 

    	 	 	 

    

 

(b)
To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers,
employees, agents or fiduciaries of the Company or for individuals serving at the request of the Company as directors, officers,
partners, members, venturers, proprietors, trustees, employees, agents, fiduciaries or similar functionaries of another foreign
or domestic corporation, partnership, limited liability company, joint venture, sole proprietorship, trust, employee benefit plan
or other enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum
extent of the coverage available for any such director, officer, employee, agent or fiduciary under such policy or policies[To
be included for directors related to Sponsor Entities: and such policies shall provide for and recognize that the insurance
policies are primary to any rights to indemnification advancement or insurance proceeds to which Indemnitee may be entitled from
one or more Persons with whom or which Indemnitee may be associated (including, without limitation, any Sponsor Entity) to the
same extent as the Company’s indemnification and advancement obligations set forth in this Agreement].

 

(c)
In the event of any payment by the Company under this Agreement for which reimbursement is available under any insurance policy
or policies obtained by the Company, the Company shall be subrogated to the extent of such payment to all of the rights of recovery
of Indemnitee under such insurance policy or policies, who shall execute all papers required and take all action necessary to
secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights, provided that all Expenses relating to such action shall be borne by the Company.

 

(d)
In the event of any payment by the Company under this Agreement, the Company shall be subrogated to the rights of recovery of
Indemnitee to the extent of such payment, provided, however, that nothing in this Section 7.2(d) shall modify the Company’s
agreement to waive, relinquish and release any other Person with whom or which Indemnitee may be associated [(including, without
limitation, any Sponsor Entity)] from any claim of contribution, subrogation or any other recovery of any kind in respect of amounts
paid by the Company hereunder as provided in Section 7.2(a)(v) hereof. For purposes of clarity, the Company does not waive, relinquish
or release any other Person with whom or which Indemnitee is not associated, and the Company intends to preserve subrogation claims
against such Persons.

 

(e)
The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to
the extent that Indemnitee has otherwise actually received such payment under the Company’s charter or bylaws or any insurance
policy, contract, agreement or otherwise.

 

    	 	16	 

    	 	 	 

    

 

(f)
If Indemnitee is a director of the Company, the Company will advise the Board of any proposed material reduction in the coverage
for Indemnitee to be provided by the Company’s directors’ and officers’ liability insurance policy and will
not effect such a reduction with respect to Indemnitee without the prior approval of at least 80% of the Independent Directors
of the Company.

 

(g)
If Indemnitee is a director of the Company during the term of this Agreement and if Indemnitee ceases to be a director of the
Company for any reason, the Company shall procure a run-off directors’ and officers’ liability insurance policy with
respect to claims arising from facts or events that occurred before the time Indemnitee ceased to be a director of the Company
and covering Indemnitee, which policy, without any lapse in coverage, will provide coverage for a period of six years after the
time Indemnitee ceased to be a director of the Company and will provide coverage (including amount and type of coverage and size
of deductibles) that are substantially comparable to the Company’s directors’ and officers’ liability insurance
policy that was most protective of Indemnitee in the 12 months preceding the time Indemnitee ceased to be a director of the Company
and that is reasonably satisfactory to Indemnitee; provided, however, that:

 

(i)
this obligation shall be suspended during the period immediately following the time Indemnitee ceases to be a director of the
Company if and only so long as the Company has a directors’ and officers’ liability insurance policy in effect covering
Indemnitee for such claims that, if it were a run-off policy, would meet or exceed the foregoing standards, but in any event this
suspension period shall end when a Change in Control occurs; and

 

(ii)
no later than the end of the suspension period provided in the preceding clause (i) (whether because of failure to have
a policy meeting the foregoing standards or because a Change in Control occurs), the Company shall procure a run-off directors’
and officers’ liability insurance policy meeting the foregoing standards and lasting for the remainder of the six-year period.

 

(h)
Notwithstanding the preceding clause (g) including the suspension provisions therein, if Indemnitee ceases to be an officer
or a director of the Company in connection with a Change in Control or at or during the one-year period following the occurrence
of a Change in Control, the Company shall procure a run-off directors’ and officers’ liability insurance policy covering
Indemnitee that is reasonably satisfactory to Indemnity, meets the foregoing standards in clause (g), and lasts for a six-year
period upon the Indemnitee’s ceasing to be an officer or a director of the Company in such circumstances.

 

(i)
If at the time of the receipt of a notice of a Claim pursuant to the terms hereof, the Company has directors’ and officers’
liability insurance in effect, the Company shall give prompt notice of the commencement of such Claim to the insurers in accordance
with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action
to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Claim in accordance with the
terms of such policies.

 

    	 	17	 

    	 	 	 

    

 

Section
7.3 Self Insurance of the Company; Other Arrangements. The parties hereto recognize that the Company may, but except
as provided in Section 7.2(f), Section 7.2(g), and Section 7.2(h) is not required to, procure or maintain
insurance or other similar arrangements, at its expense, to protect itself and any person, including Indemnitee, who is or was
a director, officer, employee, agent or fiduciary of the Company or who is or was serving at the request of the Company as a director,
officer, partner, member, venturer, proprietor, trustee, employee, agent, fiduciary or similar functionary of another foreign
or domestic corporation, partnership, limited liability company, joint venture, sole proprietorship, trust, employee benefit plan
or other enterprise against any expense, liability or loss asserted against or incurred by such person, in such a capacity or
arising out of the person’s status as such a person, whether or not the Company would have the power to indemnify such person
against such expense or liability or loss.

 

Except
as provided in Section 7.2(f), Section 7.2(g) and Section 7.2(h), in considering the cost and availability
of such insurance, the Company (through the exercise of the business judgment of its directors and officers) may, from time to
time, purchase insurance which provides for certain (a) deductibles, (b) limits on payments required to be made by the insurer,
or (c) coverage which may not be as comprehensive as that previously included in insurance purchased by the Company or its predecessors.
The purchase of insurance with deductibles, limits on payments and coverage exclusions, even if in the best interest of the Company,
may not be in the best interest of Indemnitee. As to the Company, purchasing insurance with deductibles, limits on payments and
coverage exclusions is similar to the Company’s practice of self-insurance in other areas. In order to protect Indemnitee
who would otherwise be more fully or entirely covered under such policies, the Company shall, to the maximum extent permitted
by applicable law, indemnify and hold Indemnitee harmless to the extent (i) of such deductibles, (ii) of amounts exceeding payments
required to be made by an insurer, or (iii) of amounts that prior policies of directors’ and officers’ liability insurance
held by the Company or its predecessors have provided for payment to Indemnitee, if by reason of Indemnitee’s Corporate
Status Indemnitee is or is threatened to be made a party to any Claim. The obligation of the Company in the preceding sentence
shall be without regard to whether the Company would otherwise be required to indemnify such officer or director under the other
provisions of this Agreement, or under any law, agreement, vote of stockholders or directors or other arrangement. Without limiting
the generality of any provision of this Agreement, the procedures in Article IV hereof shall, to the extent applicable,
be used for determining entitlement to indemnification under this Section 7.3.

 

Section
7.4 Certain Settlement Provisions. The Company shall have no obligation to indemnify Indemnitee under this Agreement
for amounts paid in settlement of a Claim without the Company’s prior written consent. The Company shall not settle any
Claim in any manner that would impose any fine or other obligation on Indemnitee without Indemnitee’s prior written consent.
Neither the Company nor Indemnitee shall unreasonably withhold their consent to any proposed settlement.

 

    	 	18	 

    	 	 	 

    

 

Section
7.5 Duration of Agreement. This Agreement shall continue for so long as Indemnitee serves as a director, officer,
employee, agent or fiduciary of the Company or, at the request of the Company, as a director, officer, partner, member, venturer,
proprietor, trustee, employee, agent, fiduciary or similar functionary of another foreign or domestic corporation, partnership,
limited liability company, joint venture, sole proprietorship, trust, employee benefit plan or other enterprise, and thereafter
shall survive until and terminate upon the later to occur of: (a) the expiration of 20 years after the latest date that Indemnitee
shall have ceased to serve in any such capacity; (b) the final, non-appealable determination or resolution of all pending Claims
in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding
commenced by Indemnitee pursuant to Article IV relating thereto; or (c) the expiration of all statutes of limitation applicable
to possible Claims arising out of Indemnitee’s Corporate Status.

 

Section
7.6 Notice by Each Party. Indemnitee shall promptly notify the Company in writing upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document or communication relating to any Claim for which Indemnitee
may be entitled to indemnification or advancement of Expenses hereunder; provided, however, that any failure of Indemnitee to
so notify the Company shall not adversely affect Indemnitee’s rights under this Agreement except to the extent the Company
shall have been materially prejudiced as a direct result of such failure. The Company shall promptly notify Indemnitee in writing
as to the pendency of any Claim that may involve a claim against Indemnitee for which Indemnitee may be entitled to indemnification
or advancement of Expenses hereunder.

 

Section
7.7 Amendment. This Agreement may not be modified or amended except by a written instrument executed by or on behalf
of each of the parties hereto.

 

Section
7.8 Waivers. The observance of any term of this Agreement may be waived (either generally or in a particular instance
and either retroactively or prospectively) by the party entitled to enforce such term only by a writing signed by the party against
which such waiver is to be asserted. Unless otherwise expressly provided herein, no delay on the part of any party hereto in exercising
any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party hereto
of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder nor shall any
single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise
of any other right, power or privilege hereunder.

 

Section
7.9 Entire Agreement. This Agreement and the documents expressly referred to herein constitute the entire agreement
between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written
understandings or agreements with respect to the matters covered hereby, including without limitation any prior indemnification
agreements, are expressly superseded by this Agreement.

 

Section
7.10 Severability. If any provision of this Agreement (including any provision within a single section, paragraph
or sentence) or the application of such provision to any Person or circumstance, shall be judicially declared to be invalid, unenforceable
or void, such decision will not have the effect of invalidating or voiding the remainder of this Agreement or affect the application
of such provision to other Persons or circumstances, it being the intent and agreement of the parties that this Agreement shall
be deemed amended by modifying such provision to the extent necessary to render it valid, legal and enforceable while preserving
its intent, or if such modification is not possible, by substituting therefor another provision that is valid, legal and enforceable
and that achieves the same objective. Any such finding of invalidity or unenforceability shall not prevent the enforcement of
such provision in any other jurisdiction to the maximum extent permitted by applicable law.

 

    	 	19	 

    	 	 	 

    

 

Section
7.11 Notices. All notices and other communications hereunder shall be in writing and shall be deemed given upon
(a) transmitter’s confirmation of a receipt of a facsimile transmission if during normal business hours of the recipient,
otherwise on the next business day, (b) confirmed delivery of a standard overnight courier or when delivered by hand or (c) the
expiration of five business days after the date mailed by certified or registered mail (return receipt requested), postage prepaid,
to the parties at the following addresses (or at such other addresses for a party as shall be specified by like notice):

 

If
to the Company, to it at:

 

Eco-Stim
Energy Solutions, Inc.

2930
W. Sam Houston Pkwy. N.

Suite
275

Houston,
Texas 77043

Attn:
Alexander Nickolatos CFO

Facsimile:
(281) 531-7297

 

If
to Indemnitee, to Indemnitee at [the address on the signature page to this Agreement]:

 

[For
Fir Tree directors: Fir Tree Inc.

55
West 46th Street

New
York, New York 10036

Attn:
General Counsel]

 

or
to such other address or to such other individuals as any party shall have last designated by notice to the other parties. All
notices and other communications given to any party in accordance with the provisions of this Agreement shall be deemed to have
been given when delivered or sent to the intended recipient thereof in accordance with and as provided in the provisions of this
Section 7.11.

 

Section
7.12 Governing Law. This Agreement and the legal relations among the parties shall, to the fullest extent permitted
by law, be governed by, and construed and enforced in accordance with, the laws of the State of Nevada, without regard to its
conflict of laws rules.

 

Section
7.13 Reserved.

 

Section
7.14 Certain Construction Rules.

 

(a)
The article and section headings contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. As used in this Agreement, unless otherwise provided to the contrary, (i) all references
to days shall be deemed references to calendar days and (ii) any reference to a “Section” or “Article”
shall be deemed to refer to a section or article of this Agreement. The words “hereof,” “herein” and “hereunder”
and words of similar import referring to this Agreement refer to this Agreement as a whole and not to any particular provision
of this Agreement. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.” Unless otherwise specifically provided
for herein, the term “or” shall not be deemed to be exclusive. Whenever the context may require, any pronoun used
in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns
and verbs shall include the plural and vice versa.

 

    	 	20	 

    	 	 	 

    

 

(b)
For purposes of this Agreement, references to “other enterprises” shall include employee benefit plans; references
to “fines” shall include any excise taxes assessed on a person with respect to any employee benefit plan; references
to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of
the Company which imposes duties on, or involves services by, such director, nominee, officer, employee or agent with respect
to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner the person
reasonably believed to be in the interests of the participants and beneficiaries of an employee benefit plan shall be deemed to
have acted in a manner “not opposed to the best interest of the Company” for purposes of this Agreement and the NGCL.

 

(c)
In the event of a merger, consolidation or amalgamation of the Company with or into any other entity, references to the “Company”
shall include the entity surviving or resulting from the merger, consolidation or amalgamation as well as the Company, and Indemnitee
shall stand in the same position under this Agreement with respect to the surviving or resulting entity as Indemnitee would stand
with respect to the Company if its existence had continued upon and after the merger, consolidation or amalgamation.

 

Section
7.15 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to
be an original and all of which together shall be deemed to be one and the same instrument, notwithstanding that both parties
are not signatories to the original or same counterpart.

 

Section
7.16 Certain Persons Not Entitled to Indemnification. Notwithstanding any other provision of this Agreement (but
subject to Section 7.1), Indemnitee shall not be entitled to indemnification or advancement of Expenses pursuant to the
terms of this Agreement with respect to any Claim, issue or matter therein, brought or made by Indemnitee against the Company,
except as specifically provided in Article III, Article IV or Section 7.3. In addition, the Company shall
not be obligated pursuant to the terms of this Agreement:

 

(a)
To indemnify Indemnitee if (and to the extent that) a final, non-appealable decision by a court or arbitration body having jurisdiction
in the matter shall determine that such indemnification is not lawful; or

 

    	 	21	 

    	 	 	 

    

 

(b)
To indemnify Indemnitee for the payment to the Company of profits pursuant to Section 16(b) of the Exchange Act, or Expenses incurred
by Indemnitee for Claims in connection with such payment under Section 16(b) of the Exchange Act.

 

Section
7.17 Indemnification for Negligence, Gross Negligence, etc. Without limiting the generality of any other provision
hereunder, it is the express intent of this Agreement that Indemnitee be indemnified and Expenses be advanced regardless of Indemnitee’s
acts of negligence, gross negligence, intentional or willful misconduct to the extent that indemnification and advancement of
Expenses is allowed pursuant to the terms of this Agreement and under applicable law.

 

Section
7.18 Mutual Acknowledgments. Both the Company and Indemnitee acknowledge that in certain instances, applicable law
(including applicable federal law that may preempt or override applicable state law) or public policy may prohibit the Company
from indemnifying the directors, officers, employees, agents or fiduciaries of the Company under this Agreement or otherwise.
For example, the Company and Indemnitee acknowledge that the U.S. Securities and Exchange Commission has taken the position that
indemnification of directors, officers and controlling Persons of the Company for liabilities arising under federal securities
laws is against public policy and, therefore, unenforceable. Indemnitee understands and acknowledges that the Company has undertaken
or may be required in the future to undertake with the Securities and Exchange Commission to submit the question of indemnification
to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee.
In addition, the Company and Indemnitee acknowledge that federal law prohibits indemnifications for certain violations of the
Employee Retirement Income Security Act of 1974, as amended.

 

Section
7.19 Enforcement. The Company agrees that its execution of this Agreement shall constitute a stipulation by which
it shall be irrevocably bound in any court or arbitration in which a proceeding by Indemnitee for enforcement of Indemnitee’s
rights hereunder shall have been commenced, continued or appealed, that its obligations set forth in this Agreement are unique
and special, and that failure of the Company to comply with the provisions of this Agreement will cause irreparable and irremediable
injury to Indemnitee, for which a remedy at law will be inadequate. As a result, in addition to any other right or remedy Indemnitee
may have at law or in equity with respect to breach of this Agreement, Indemnitee shall be entitled to injunctive or mandatory
relief directing specific performance by the Company of its obligations under this Agreement. The Company agrees not to seek,
and agrees to waive any requirement for the securing or posting of, a bond in connection with Indemnitee’s seeking or obtaining
such relief.

 

Section
7.20 Successors and Assigns. All of the terms and provisions of this Agreement shall be binding upon, shall inure
to the benefit of and shall be enforceable by the parties hereto and their respective successors, assigns, heirs, executors, administrators,
legal representatives.

 

Section
7.21 Period of Limitations. No legal action shall be brought and no cause of action shall be asserted by or on behalf
of the Company or any affiliate of the Company against Indemnitee or Indemnitee’s spouse, heirs, executors, or personal
or legal representatives after the expiration of one year from the date of accrual of that cause of action, and any claim or cause
of action of the Company or its affiliate shall be extinguished and deemed released unless asserted by the timely filing of a
legal action within that one-year period; provided, however, that for any claim based on Indemnitee’s breach of fiduciary
duties to the Company or its stockholders, the period set forth in the preceding sentence shall be three years instead of one
year; and provided, further, that, if any shorter period of limitations is otherwise applicable to any such cause of action, the
shorter period shall govern.

 

Section
7.22 [For directors related to Sponsor Entities: Third-Party Beneficiaries. The Sponsor Entities are intended
third-party beneficiaries under Section 7.2(a), Section 7.2(b) and Section 7.2(d) of this Agreement.]

 

    	 	22	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of the date first above written.

 

	 	ECO-STIM
    ENERGY SOLUTIONS, INC.
	 	 	 
	 	By:	                  
	 	Name:	 
	 	Title:	 

 

	 	INDEMNITEE:
	 	 	 
	 	Name:	                  

 

	 	[Address:	 
	 	 	 
	 	 	]

 

    	 	23sbph-ex101_6.htm

Exhibit 10.1

Execution Copy

Spring Bank Pharmaceuticals, Inc.

Shares of Common Stock

(par value $0.0001 per share)

Controlled Equity OfferingSM

Sales Agreement

August 18, 2017

Cantor Fitzgerald & Co.

499 Park Avenue

New York, NY 10022

 

Ladies and Gentlemen:

Spring Bank Pharmaceuticals, Inc., a Delaware corporation (the “Company”), confirms its agreement (this “Agreement”) with Cantor Fitzgerald & Co. (the “Agent”), as follows:

1.Issuance and Sale of Shares.  The Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the conditions set forth herein, it may issue and sell through the Agent, shares of common stock (the “Placement Shares”) of the Company, par value $0.0001 per share (the “Common Stock”); provided, however, that in no event shall the Company issue or sell through the Agent such number or dollar amount of Placement Shares that would (a) exceed the number or dollar amount of shares of Common Stock registered on the effective Registration Statement (defined below) pursuant to which the offering is being made, (b) exceed the number of authorized but unissued shares of Common Stock, (c) exceed the number or dollar amount of shares of Common Stock permitted to be sold under Form S-3 (including General Instruction I.B.6. thereof, if applicable) or (d) exceed the number or dollar amount of shares of Common Stock for which the Company has filed a Prospectus Supplement (defined below) (the lesser of (a), (b), (c) and (d), the “Maximum Amount”).  Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in this Section 1 on the amount of Placement Shares issued and sold under this Agreement shall be the sole responsibility of the Company and that the Agent shall have no obligation in connection with such compliance.  The offer and sale of Placement Shares through the Agent will be effected pursuant to the Registration Statement (as defined below) filed by the Company and declared effective by the Securities and Exchange Commission (the “Commission”) on June 12, 2017, although nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement to issue Placement Shares.

The Company has filed, in accordance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations thereunder (the “Securities Act Regulations”), with the Commission a registration statement on Form S-3 (File No. 333-218399), including a base prospectus, relating to certain securities, including the Placement Shares to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations thereunder.  The Company has prepared a prospectus or a prospectus supplement to the base prospectus included 

 

 

 

as part of the registration statement, which prospectus or prospectus supplement relates to the Placement Shares to be issued from time to time by the Company (the “Prospectus Supplement”).  The Company will furnish to the Agent, for use by the Agent, copies of the prospectus included as part of such registration statement, as supplemented, by the Prospectus Supplement, relating to the Placement Shares to be issued from time to time by the Company.  The Company may file one or more additional registration statements from time to time that will contain a base prospectus and related prospectus or prospectus supplement, if applicable (which shall be a Prospectus Supplement), with respect to the Placement Shares.  Except where the context otherwise requires, such registration statement(s), including all documents filed as part thereof or incorporated by reference therein, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act Regulations or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Act Regulations, is herein called the “Registration Statement.”  The base prospectus or base prospectuses related to the Placement Shares, including all documents incorporated therein by reference, included in the Registration Statement, as it may be supplemented, if necessary, by the Prospectus Supplement, in the form in which such prospectus or prospectuses and/or Prospectus Supplement have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act Regulations, together with the then issued Issuer Free Writing Prospectus(es) (defined below), is herein called the “Prospectus.”  

Any reference herein to the Registration Statement, any Prospectus Supplement, Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and include the documents, if any, incorporated by reference therein (the “Incorporated Documents”), including, unless the context otherwise requires, the documents, if any, filed as exhibits to such Incorporated Documents. Any reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, any Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and include the filing of any document under the Exchange Act on or after the most-recent effective date of the Registration Statement, or the date of the Prospectus Supplement, Prospectus or such Issuer Free Writing Prospectus, as the case may be, and incorporated therein by reference.  For purposes of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include the most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval system, or if applicable, the Interactive Data Electronic Application system when used by the Commission (collectively, “EDGAR”).

2.Placements.  Each time that the Company wishes to issue and sell Placement Shares hereunder (each, a “Placement”), it will notify the Agent by email notice (or other method mutually agreed to by the parties) of the number of Placement Shares to be issued, the time period during which sales are requested to be made, any limitation on the number of Placement Shares that may be sold in any one day and any minimum price below which sales may not be made (a “Placement Notice”), the form of which is attached hereto as Schedule 1.  The Placement Notice shall originate from any of the individuals from the Company set forth on Schedule 3 (with a copy to each of the other individuals from the Company listed on such schedule), and shall be addressed to each of the individuals from the Agent set forth on Schedule 3, as such Schedule 3 may be amended from time to time.  The Placement Notice shall be effective unless and until (i) the Agent declines in writing to accept the terms contained therein for any reason, in its sole discretion within two (2) Business Days (as defined below) of receipt, (ii) the entire amount of the Placement Shares 

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thereunder have been sold, (iii) the Company suspends or terminates the Placement Notice in its sole discretion or (iv) this Agreement has been terminated under the provisions of Section 12.  The amount of any discount, commission or other compensation to be paid by the Company to Agent in connection with the sale of the Placement Shares shall be calculated in accordance with the terms set forth in Schedule 2.  It is expressly acknowledged and agreed that neither the Company nor the Agent will have any obligation whatsoever with respect to a Placement or any Placement Shares unless and until the Company delivers a Placement Notice to the Agent and the Agent does not decline such Placement Notice pursuant to the terms set forth above, and then only upon the terms specified therein and herein.  In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control. For purposes of this Agreement, “Business Day” shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.

3.Sale of Placement Shares by Agent.  Subject to the provisions of Section 5(a), the Agent, for the period specified in the Placement Notice, will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state and federal laws, rules and regulations and the rules of The NASDAQ Capital Market (the “Exchange”), to sell the Placement Shares up to the amount specified, and otherwise in accordance with the terms of such Placement Notice.  The Agent will provide written confirmation to the Company no later than the opening of the Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such day, the compensation payable by the Company to the Agent pursuant to Section 2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization of the deductions made by the Agent (as set forth in Section 5(b)) from the gross proceeds that it receives from such sales.  Subject to the terms of the Placement Notice and the terms of this Agreement, the Agent may sell Placement Shares by any method permitted by law deemed to be an “at-the-market offering” as defined in Rule 415(a)(4) of the Securities Act Regulations, including sales made directly on or through the Exchange or any other existing trading market for the Common Stock, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices and/or any other method permitted by law.  “Trading Day” means any day on which Common Stock is traded on the Exchange. During the term of this Agreement, the Agent shall not, directly or indirectly, engage in (i) any short sale of any security of the Company, as defined in Regulation SHO, (ii) any sale of any security of the Company that the Agent does not own or any sale that is consummated by the delivery of a security of the Company borrowed by, or for the account of, the Agent or (iii) any market making, bidding, stabilization or other trading activity with regard to the Common Stock or related derivative securities, in each case, if such activity would be prohibited under Regulation M or other anti-manipulation rules under the Securities Act, the Securities Act Regulations, or any other law or regulation applicable to the Agent.

4.Suspension of Sales.  The Company or the Agent may, upon notice to the other party in writing (including by email correspondence to each of the individuals of the other party set forth on Schedule 3, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable email correspondence to each of the individuals of the other party set forth on Schedule 3), suspend any sale of Placement Shares (a “Suspension”); provided, however, that such Suspension shall not affect or impair any party’s obligations with respect to any 

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Placement Shares sold hereunder prior to the receipt of such notice.  While a Suspension is in effect any obligation under Sections 7(l), 7(m), and 7(n) with respect to the delivery of certificates, opinions, or comfort letters to the Agent, shall be waived. Each of the parties agrees that no such notice under this Section 4 shall be effective against any other party unless it is made to one of the individuals named on Schedule 3 hereto, as such Schedule may be amended from time to time.

5.Sale and Delivery to the Agent; Settlement.

(a)Sale of Placement Shares.  On the basis of the representations and warranties herein contained and subject to the terms and conditions herein set forth, upon the Agent’s acceptance of the terms of a Placement Notice, and unless the sale of the Placement Shares described therein has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement, the Agent, for the period specified in the Placement Notice, will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations, including applicable Exchange Rules (as defined below), to sell such Placement Shares up to the amount specified, and otherwise in accordance with the terms of such Placement Notice.  The Company acknowledges and agrees that (i) there can be no assurance that the Agent will be successful in selling Placement Shares, (ii) the Agent will incur no liability or obligation to the Company or any other person or entity if it does not sell Placement Shares for any reason other than a failure by the Agent to use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations, including applicable Exchange Rules, to sell such Placement Shares as required under this Agreement and (iii) the Agent shall be under no obligation to purchase Placement Shares on a principal basis pursuant to this Agreement, except as otherwise agreed by the Agent and the Company.

(b)Settlement of Placement Shares.  Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will occur on the third (3rd) Trading Day (or such earlier day as is industry practice for regular-way trading) following the date on which such sales are made (each, a “Settlement Date”).  The Agent shall notify the Company of each sale of Placement Shares no later than the opening of the Trading Day immediately following the Trading Day on which it has made sales of Placement Shares hereunder.  The amount of proceeds to be delivered to the Company on a Settlement Date against receipt of the Placement Shares sold (the “Net Proceeds”) will be equal to the aggregate sales price received by the Agent, after deduction for (i) the Agent’s commission, discount or other compensation for such sales payable by the Company pursuant to Section 2 hereof, and (ii) any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales.

(c) Delivery of Placement Shares.  On or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Placement Shares being sold by crediting the Agent’s or its designee’s account (provided the Agent shall have given the Company written notice of such designee at least one (1) Trading Day prior to the Settlement Date) at The Depository Trust Company through its Deposit and Withdrawal at Custodian System or by such other means of delivery as may be mutually agreed upon by the parties hereto which in all cases shall be freely tradable, transferable, registered shares in good deliverable form.  On each Settlement Date, the Agent will deliver the related Net Proceeds in same day funds to an account designated by the Company on, or prior to, the Settlement Date.  The Company agrees that if the Company, or its transfer agent (if applicable), defaults in its obligation to deliver Placement Shares on a Settlement Date through no fault of the Agent, the Company agrees that in addition to and in 

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no way limiting the rights and obligations set forth in Section 10(a) hereto, it will (i) hold the Agent harmless against any loss, claim, damage, or expense (including reasonable and documented legal fees and expenses of outside counsel), as incurred, arising out of or in connection with such default by the Company or its transfer agent (if applicable) and (ii) pay to the Agent any commission, discount, or other compensation to which it would otherwise have been entitled absent such default.

(d)Denominations; Registration.  Certificates for the Placement Shares, if any, shall be in such denominations and registered in such names as the Agent may request in writing at least one full Business Day before the Settlement Date.  The certificates for the Placement Shares, if any, will be made available by the Company for examination and packaging by the Agent in The City of New York not later than noon (New York time) on the Business Day prior to the Settlement Date.

(e)Limitations on Offering Size.  Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares if, after giving effect to the sale of such Placement Shares, the aggregate gross sales proceeds of Placement Shares sold pursuant to this Agreement would exceed the lesser of (A) together with all sales of Placement Shares under this Agreement, the Maximum Amount, (B) the amount available for offer and sale under the currently effective Registration Statement and (C) the amount authorized from time to time to be issued and sold under this Agreement by the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive committee, and notified to the Agent in writing.  Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares pursuant to this Agreement at a price lower than the minimum price authorized from time to time by the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive committee.  Further, under no circumstances shall the Company cause or permit the aggregate offering amount of Placement Shares sold pursuant to this Agreement to exceed the Maximum Amount. 

6.Representations and Warranties of the Company.  The Company represents and warrants to, and agrees with Agent that as of the date of this Agreement and as of each Applicable Time (as defined below) unless such representation, warranty or agreement specifies a different time:

(a)Registration Statement and Prospectus.  The Company and the transactions contemplated by this Agreement meet the requirements for and comply with the applicable conditions set forth in Form S-3 (including General Instructions I.A and I.B) under the Securities Act.  The Registration Statement has been filed with the Commission and has been declared effective by the Commission under the Securities Act.  The Prospectus Supplement will name the Agent as the agent in the section entitled “Plan of Distribution.” The Company has not received, and has no notice of, any order of the Commission preventing or suspending the use of the Registration Statement, or threatening or instituting proceedings for that purpose.  The Registration Statement and the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act and comply in all material respects with said Rule.  Any statutes, regulations, contracts or other documents that are required to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement have been so described or filed.  Copies of the Registration Statement, the Prospectus, and any such amendments or supplements and all Incorporated Documents that were filed with the 

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Commission on or prior to the date of this Agreement have been delivered, or are available through EDGAR, to the Agent and its counsel.  The Company has not distributed and, prior to the later to occur of each Settlement Date and completion of the distribution of the Placement Shares, will not distribute any offering material in connection with the offering or sale of the Placement Shares other than the Registration Statement and the Prospectus and any Issuer Free Writing Prospectus (as defined below) to which the Agent has consented.  The Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is currently listed on the Exchange under the trading symbol “SBPH.”  The Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the Exchange, nor has the Company received any notification that the Commission or the Exchange is contemplating terminating such registration or listing.  To the Company’s knowledge, it is in compliance with all applicable listing requirements of the Exchange.  The Company has no reason to believe that it will not in the foreseeable future continue to be in compliance with all such listing and maintenance requirements.  

(b)No Misstatement or Omission.  The Registration Statement, when it became or becomes effective, and the Prospectus, and any amendment or supplement thereto, on the date of such Prospectus or amendment or supplement, conformed and will conform in all material respects with the requirements of the Securities Act.  At each Settlement Date, the Registration Statement and the Prospectus, as of such date, will conform in all material respects with the requirements of the Securities Act.  The Registration Statement, when it became or becomes effective, did not, and will not, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.  The Prospectus and any amendment and supplement thereto, on the date thereof and at each Applicable Time (defined below), did not or will not include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.  The Incorporated Documents did not, and any further Incorporated Documents filed after the date of this Agreement will not, when filed with the Commission, contain an untrue statement of a material fact or omit to state a material fact required to be stated in such document or necessary to make the statements in such document, in light of the circumstances under which they were made, not misleading.  The foregoing shall not apply to statements in, or omissions from, any such document made in reliance upon, and in conformity with, information furnished to the Company by the Agent specifically for use in the preparation thereof. 

(c)Conformity with Securities Act and Exchange Act.  The Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or any amendment or supplement thereto, and the Incorporated Documents, when such documents were or are filed with the Commission under the Securities Act or the Exchange Act or became or become effective under the Securities Act, as the case may be, conformed or will conform in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable. At each Settlement Date, the Registration Statement and the Prospectus, as of such date, will conform in all material respects with the requirements of the Securities Act.

(d)Financial Statements. The financial statements of the Company, together with the related notes, set forth or incorporated by reference in the Registration Statement,  Prospectus and the Issuer Free Writing Prospectuses, if any, comply in all material respects with 

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the requirements of the Securities Act and fairly present the financial condition of the Company as of the dates indicated and the results of operations and changes in cash flows for the periods therein specified in conformity with generally accepted accounting principles in the United States (“GAAP”) consistently applied throughout the periods involved, except in the case of unaudited, interim financial statements, subject to normal year-end audit adjustments and the exclusion of certain footnotes as permitted by the applicable rules of the Commission; the supporting schedules included in the Registration Statement present fairly, in all material respects, the information required to be stated therein; all non-GAAP financial information included or incorporated by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses, if any, complies with the requirements of Regulation G and Item 10 of Regulation S-K under the Securities Act; and, except as disclosed in the Registration Statement and the Prospectus, there are no material off-balance sheet arrangements (as defined in Regulation S-K under the Securities Act, Item 303(a)(4)(ii)) or any other relationships with unconsolidated entities or other persons, that may have a material current or, to the Company’s knowledge, material future effect on the Company’s financial condition, results of operations, liquidity, capital expenditures, capital resources or significant components of revenue or expenses. No other financial statements or schedules are required to be included or incorporated by reference in the Registration Statement or the Prospectus. RSM US LLP, whose report on the consolidated financial statements of the Company is filed with the Commission as part of the Company’s most recent Annual Report on Form 10-K filed with the Commission and incorporated by reference into the Registration Statement and the Prospectus, is (A) an independent public accounting firm within the meaning of the Securities Act and the Securities Act Regulations, (B) a registered public accounting firm (as defined in Section 2(a)(12) of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”)) and (C) not in violation of the auditor independence requirements of the Sarbanes-Oxley Act with respect to the Company. The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement and the Prospectus fairly presents the information called for in all material respects and has been prepared in all material respects in accordance with the Commission’s rules and guidelines applicable thereto.

(e)Conformity with EDGAR Filing.  The Prospectus delivered to the Agent for use in connection with the sale of the Placement Shares pursuant to this Agreement will be identical to the versions of the Prospectus created to be transmitted to the Commission for filing via EDGAR, except to the extent permitted by Regulation S‐T.

(f)Organization and Good Standing. Each of the Company and its Subsidiaries (as defined below) has been duly organized and is validly existing as a corporation in good standing under the laws of its jurisdiction of incorporation. Each of the Company and its Subsidiaries has full corporate power and authority to own its properties and conduct its business as currently being carried on and as described in the Registration Statement and the Prospectus, and is duly qualified to do business as a foreign corporation in good standing in each jurisdiction in which it owns or leases real property or in which the conduct of its business makes such qualification necessary and in which the failure to so qualify would have a material adverse effect upon the business, prospects, management, properties, operations, condition (financial or otherwise), stockholders’ equity or results of operations of the Company and its Subsidiaries, taken as a whole (“Material Adverse Effect”).

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(g)Subsidiaries.  The subsidiaries set forth on Schedule 4 (collectively, the “Subsidiaries”), are the Company’s only significant subsidiaries (as such term is defined in Rule 1‐02 of Regulation S‐X promulgated by the Commission).  Except as set forth in the Registration Statement and in the Prospectus, the Company owns, directly or indirectly, all of the equity interests of the Subsidiaries free and clear of any lien, charge, security interest, encumbrance, right of first refusal or other restriction, and all the equity interests of the Subsidiaries are validly issued and are fully paid, nonassessable and free of preemptive and similar rights.  No Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property or assets to the Company or any other Subsidiary of the Company.

(h)Absence of Certain Events. Except as contemplated in the Registration Statement or the Prospectus subsequent to the respective dates as of which information is given in the Registration Statement, the Prospectus and the Free Writing Prospectuses, if any (including any Incorporated Document), neither the Company nor any of its Subsidiaries have incurred any material liability or obligation, direct or contingent, or entered into any material transaction other than pursuant to this Agreement, or declared or paid any dividends or made any distribution of any kind with respect to its capital stock; and there has not been any change in the capital stock (other than a change in the number of outstanding shares of Common Stock pursuant to this Agreement or due to the issuance of shares upon the exercise of outstanding options or warrants or conversion of convertible securities), or any material change in the short-term or long-term debt (other than as a result of the conversion of convertible securities), or any issuance of options, warrants, convertible securities or other rights to purchase the capital stock, of the Company or any of its Subsidiaries, or any material adverse change, any development involving a prospective material adverse change or any development that would reasonably be expected to result in a material adverse change, in the business, prospects, management, properties, operations, condition (financial or otherwise), stockholders’ equity or results of operations of the Company and its Subsidiaries, taken as a whole.

(i)Absence of Proceedings. Except as set forth in the Registration Statement and in the Prospectus, there is not pending or, to the knowledge of the Company, threatened or contemplated, any action, suit or proceeding (a) to which the Company or any of its Subsidiaries is a party or (b) which has as the subject thereof any officer or director of the Company or its Subsidiaries, any employee benefit plan sponsored by the Company or its Subsidiaries or any property or assets owned or leased by the Company or its Subsidiaries before or by any court or Governmental Authority, or any arbitrator, which, individually or in the aggregate, would be reasonably expected to result in a Material Adverse Effect, or would materially and adversely affect the ability of the Company to perform its obligations under this Agreement. There are no current or, to the knowledge of the Company, pending, legal, governmental or regulatory actions, suits or proceedings (x) to which the Company or its Subsidiaries are subject or (y) which has as the subject thereof any officer or director of the Company or its Subsidiaries, any employee plan sponsored by the Company or its Subsidiaries or any property or assets owned or leased by the Company or its Subsidiaries, that are required to be described in the Registration Statement or Prospectus by the Securities Act or by the Securities Act Regulations and that have not been so described.

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(j)Authorization; No Conflicts; Authority. This Agreement has been duly authorized, executed and delivered by the Company, and constitutes a valid, legal and binding obligation of the Company, enforceable in accordance with its terms, except as rights to indemnity hereunder may be limited by federal or state securities laws and except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the rights of creditors generally and subject to general principles of equity. The execution, delivery and performance of this Agreement and the consummation of the transactions herein contemplated will not (A) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or its Subsidiaries pursuant to any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or its Subsidiaries are a party or by which the Company or its Subsidiaries are bound or to which any of the property or assets of the Company or its Subsidiaries are subject, (B) result in any violation of the provisions of the Amended and Restated Certificate of Incorporation of the Company or Amended and Restated Bylaws of the Company or (C) result in the violation of any law or statute or any judgment, order, rule, regulation or decree of any court or arbitrator or federal, provincial, state, local, municipal, national or foreign governmental agency, regulatory authority, commission, department, board or bureau, or any political subdivision of any of the foregoing, having jurisdiction over the Company or its Subsidiaries or any of their properties or assets (each, a “Governmental Authority”), except in the case of clause (A) as would not result in a Material Adverse Effect. No consent, approval, authorization or order of, or registration or filing with any Governmental Authority is required for the execution, delivery and performance of this Agreement or for the consummation of the transactions contemplated hereby, including the issuance or sale of the Placement Shares by the Company, except such as may be required under the Securities Act, the rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”) or state securities or blue sky laws; and the Company has full power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, including the authorization, issuance and sale of the Placement Shares as contemplated by this Agreement.

(k)Capitalization; the Placement Shares; Registration Rights. All of the issued and outstanding shares of capital stock of the Company, including the outstanding shares of Common Stock, are duly authorized and validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state and foreign securities laws, were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities that have not been waived in writing (a copy of which has been delivered to counsel to the Agent), and the holders thereof are not subject to personal liability solely by reason of being such holders; the Placement Shares which may be sold hereunder by the Company, when issued and delivered pursuant to the terms approved by the board of directors of the Company or a duly authorized committee thereof, or a duly authorized executive committee, will be duly authorized and, when issued, delivered and paid for in accordance with the terms of this Agreement, will have been validly issued and will be fully paid and nonassessable, and the holders thereof will not be subject to personal liability solely by reason of being such holders; and the capital stock of the Company, including the Common Stock (including the Placement Shares), conforms to the description thereof in the Registration Statement and in the Prospectus. Except as otherwise stated in the Registration Statement and in the Prospectus, (A) there are no preemptive rights or other rights to subscribe for or to purchase, or any restriction upon the voting or transfer of, any shares of Common Stock pursuant to the Company’s Amended and Restated Certificate of Incorporation, 

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Amended and Restated Bylaws or any agreement or other instrument to which the Company or its Subsidiaries are a party or by which the Company or its Subsidiaries are bound and (B) neither the filing of the Registration Statement nor the offering or sale of the Placement Shares as contemplated by this Agreement gives rise to any rights for or relating to the registration of any shares of Common Stock or other securities of the Company (collectively “Registration Rights”). All of the issued and outstanding shares of capital stock of the Company’s Subsidiaries have been duly and validly authorized and issued and are fully paid and nonassessable, and, except as otherwise described in the Registration Statement and in the Prospectus, the Company owns of record and beneficially, free and clear of any security interests, claims, liens, proxies, equities or other encumbrances, all of the issued and outstanding shares of such stock. The Company has an authorized and outstanding capitalization as set forth in the Registration Statement and in the Prospectus under the caption “Description of Common Stock.” The Common Stock (including the Placement Shares) conforms in all material respects to the description thereof contained in the Registration Statement and the Prospectus.  At the time the Registration Statement was originally declared effective, and at the time of the Company’s filing with the Commission of a Form 10-K following the date of this Agreement, the Company met the then applicable requirements for the use of Form S-3 under the Securities Act, including, but not limited to, General Instruction I.B.1 of Form S-3. The aggregate market value of the outstanding voting and non-voting common equity (as defined in Securities Act Rule 405) of the Company held by persons other than affiliates of the Company (pursuant to Securities Act Rule 144, those that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company) (the “Non-Affiliate Shares”), was or greater than $75,000,000 million (calculated by multiplying (x) the highest price at which the common equity of the Company closed on the Exchange within 60 days of the date of this Agreement times (y) the number of Non-Affiliate Shares). The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has not been a shell company for at least 12 calendar months previously and if it has been a shell company at any time previously, has filed current Form 10 information (as defined in Instruction I.B.6 of Form S-3) with the Commission at least 12 calendar months previously reflecting its status as an entity that is not a shell company.

(l)Stock Options. Except as described in the Registration Statement and in the Prospectus, there are no options, warrants, agreements, contracts or other rights in existence to purchase or acquire from the Company or its Subsidiaries any shares of the capital stock of the Company or its Subsidiaries. The description of the Company’s stock option, stock bonus and other stock plans or arrangements (the “Company Stock Plans”), and the options (the “Options”) or other rights granted thereunder, set forth in the Registration Statement and the Prospectus accurately and fairly presents the information required to be shown with respect to such plans, arrangements, options and rights. Each grant of an Option (A) was duly authorized no later than the date on which the grant of such Option was by its terms to be effective by all necessary corporate action, including, as applicable, approval by the board of directors of the Company (or a duly constituted and authorized committee thereof) and any required stockholder approval by the necessary number of votes or written consents, and the award agreement governing such grant (if any) was duly executed and delivered by each party thereto and (B) was made in accordance with the terms of the applicable Company Stock Plan, and all applicable laws and regulatory rules or requirements, including all applicable federal securities laws.

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(m)Permits; Compliance with Laws. Each of the Company and its Subsidiaries holds and is operating in compliance in all material respects with, all franchises, grants, authorizations, licenses, permits, easements, consents, certificates, exemptions, approvals, clearances and orders of any Governmental Authority or self-regulatory body required for the conduct of its business (collectively, “Permits”), except where the failure to have such Permits would not, singly or in the aggregate, result in a Material Adverse Effect, and all such Permits are valid and in full force and effect; and neither the Company nor its Subsidiaries have received notice of any revocation or modification of any such Permit or has reason to believe that any such Permit will not be renewed in the ordinary course; and the Company and its Subsidiaries are in compliance in all material respects with all applicable federal, state, local and foreign laws, regulations, orders and decrees.

(n)Ownership of Assets. The Company and its Subsidiaries have good and marketable title to all property (whether real or personal) (excluding for the purposes of this Section, Intellectual Property (as defined below)) described in the Registration Statement and in the Prospectus as being owned by them, in each case free and clear of all liens, claims, security interests, other encumbrances or defects except such as are described in the Registration Statement and in the Prospectus. The Company has valid, subsisting and enforceable leases for the properties described in the Registration Statement and in the Prospectus with only such exceptions with respect to any particular lease as do not interfere in any material respect with the conduct of the business of the Company or its Subsidiaries.

(o)Intellectual Property. Except as disclosed in the Registration Statement and the Prospectus under the headings “Risk Factors—Risks Related to Our Intellectual Property” and “Business—Patents and Proprietary Rights”, the Company or one of its Subsidiaries owns, has obtained valid and enforceable licenses for, or can acquire on reasonable terms, all Intellectual Property necessary for the conduct of the Company’s or each of its Subsidiary’s business as now conducted or as described in the Registration Statement and the Prospectus to be conducted, and there are no unreleased liens or security interests against any of the Intellectual Property rights owned or exclusively licensed by the Company or its Subsidiaries. Furthermore, (A) to the knowledge of the Company, there is no infringement, misappropriation or violation by third parties of any such Intellectual Property, and, except as would not reasonably be expected to have a Material Adverse Effect, the Company is unaware of any facts which would form a reasonable basis for any such claim; (B) there is no pending or, to the knowledge of the Company, threatened, action, suit, proceeding or claim by others challenging the Company’s or each of its Subsidiary’s rights in or to any such Intellectual Property, and, except as would not reasonably be expected to have a Material Adverse Effect, the Company is unaware of any facts which would form a reasonable basis for any such claim; (C) the Intellectual Property owned by the Company or its Subsidiaries, and to the knowledge of the Company, the Intellectual Property licensed to the Company or its Subsidiaries, has not been adjudged invalid or unenforceable, 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, and, except as would not reasonably be expected to have a Material Adverse Effect, the Company is unaware of any facts which would form a reasonable basis for any such claim; (D) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others that the Company or any of its Subsidiaries infringes, misappropriates or otherwise violates any 

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Intellectual Property or other proprietary rights of others, neither the Company nor its Subsidiaries have received any written notice of such claim and the Company is unaware of any other fact which would form a reasonable basis for any such claim; the Company and its Subsidiaries are in compliance in all material respects with the terms of each agreement pursuant to which Intellectual Property has been licensed to the Company or any of its Subsidiaries, and all such agreements are in full force and effect; (F) the product candidates described in the Registration Statement and the Prospectus as under development by the Company or any of its Subsidiaries fall within the scope of the claims of one or more patents or patent applications owned by, or exclusively licensed to, the Company or any of its Subsidiaries; and (G) to the Company’s knowledge, no employee of the Company or its Subsidiaries is in or has ever been in 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 its Subsidiaries or actions undertaken by the employee while employed with the Company or its Subsidiaries. “Intellectual Property” shall mean all patents, patent applications, trade and service marks, trade and service mark registrations, trade names, domain names, copyrights, inventions, trade secrets, technology, know-how and other intellectual property or proprietary rights, whether or not registered.

(p)Taxes. Except as (i) described in the Registration Statement and the Prospectus or (ii) would not, singly or in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) the Company and its Subsidiaries have filed all United States federal, state, local and foreign income tax returns required by law to be filed through the date hereof and all taxes shown by such returns or otherwise assessed, which are due and payable, have been paid; and (B) there is no deficiency that has been, or could reasonably be expected to be, asserted against the Company or its Subsidiaries or any of their respective properties or assets other than tax deficiencies that the Company or its Subsidiaries are contesting in good faith and as to which adequate reserves have been established in accordance with GAAP.

(q)Ownership of Other Entities. Other than the Subsidiaries of the Company set forth on Schedule 4 to this Agreement, the Company, directly or indirectly, owns no capital stock or other equity or ownership or proprietary interest in any corporation, partnership, association, trust or other entity.

(r)Internal Controls. The Company and its Subsidiaries maintain a system of internal accounting controls that comply with the requirements of the Exchange Act and that have been designed 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. Except as disclosed in the Registration Statement and in the Prospectus, the Company’s internal control over financial reporting is effective and none of the Company, its board of directors and audit committee is aware of any “significant deficiencies” or “material weaknesses” (each as defined by the Public Company Accounting Oversight Board (the “PCAOB”)) in its internal control over financial reporting, or 

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any fraud, whether or not material, that involves management or other employees of the Company or its Subsidiaries who have a significant role in the Company’s internal controls; and since the end of the latest audited fiscal year, there has been no change in the Company’s internal control over financial reporting (whether or not remediated) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company’s board of directors has, subject to the exceptions, cure periods and the phase-in periods specified in the applicable stock exchange rules (“Exchange Rules”), validly appointed an audit committee to oversee internal accounting controls whose composition satisfies the applicable requirements of the Exchange Rules and the Company’s board of directors and/or audit committee has adopted a charter that satisfies the requirements of the Exchange Rules.

(s)No Brokers or Finders. Other than as contemplated by this Agreement, the Company has not incurred and will not incur any liability for any finder’s or broker’s fee or agent’s commission in connection with the execution and delivery of this Agreement or the offering and sale of the Placement Shares.

(t)Insurance. The Company and its Subsidiaries carry, or are covered by, insurance from reputable insurers in such amounts and covering such risks as the Company reasonably believes is adequate for the conduct of its business and the value of its properties and the properties of its Subsidiaries and as is customary for companies engaged in similar businesses in similar industries; all policies of insurance and any fidelity or surety bonds of the Company insuring the Company or its Subsidiaries or its business, assets, employees, officers and directors are in full force and effect; the Company and its Subsidiaries are in compliance with the terms of such policies and instruments in all material respects; there are no claims by the Company or its Subsidiaries under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause; neither the Company nor its Subsidiaries have been refused any insurance coverage sought or applied for; and neither the Company nor its Subsidiaries have reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

(u)Investment Company Act. Neither the Company nor any of its Subsidiaries is or, after giving effect to the offering and sale of the Placement Shares, will be an “investment company,” as such term is defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).

(v)Sarbanes-Oxley Act. The Company is in compliance with all applicable provisions of the Sarbanes-Oxley Act and the rules and regulations of the Commission thereunder.

(w)Disclosure Controls. The Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-14 and 15d-14 under the Exchange Act) and such controls and procedures are effective in ensuring that material information relating to the Company, including its Subsidiaries, is made known to the principal executive officer and the principal financial officer. The Company has utilized such controls and procedures in preparing and evaluating the disclosures in the Registration Statement and in the Prospectus.

(x)Anti-Bribery and Anti-Money Laundering Laws. Each of the Company, its Subsidiaries and any of their respective officers, directors, supervisors, managers, agents, or 

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employees, are and have at all times been in compliance with and its participation in the offering will not violate: (A) anti-bribery laws, including but not limited to, any applicable law, rule, or regulation of any locality, including but not limited to any law, rule, or regulation promulgated to implement the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed December 17, 1997, including the U.S. Foreign Corrupt Practices Act of 1977, as amended, the U.K. Bribery Act 2010, or any other law, rule or regulation of similar purposes and scope or (B) anti-money laundering laws, including but not limited to, applicable federal, state, international, foreign or other laws, regulations or government guidance regarding anti-money laundering, including, without limitation, Title 18 US. Code section 1956 and 1957, the Patriot Act, the Bank Secrecy Act, and international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering, of which the United States is a member and with which designation the United States representative to the group or organization continues to concur, all as amended, and any Executive order, directive, or regulation pursuant to the authority of any of the foregoing, or any orders or licenses issued thereunder.

(y)OFAC.

(A)Neither the Company nor its Subsidiaries, nor any or their directors, officers or employees, nor, to the Company’s knowledge, any agent or representative of the Company or its Subsidiaries, is an individual or entity that is, or is owned or controlled by an individual or entity that is:

(1)the subject or target of any sanctions administered or enforced by the U.S. Government, including, without limitations, the U.S. Department of Treasury’s Office of Foreign Assets Control, the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority (collectively, “Sanctions”), nor

(2)located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran, Libya, North Korea, Sudan, Syria or the Crimean region of Ukraine).

(B)Neither the Company nor its Subsidiaries will, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any Subsidiaries, joint venture partner or other individual or entity:

(1)to fund or facilitate any activities or business of or with any individual or entity or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions; or

(2) in any other manner that will result in a violation of Sanctions by any individual or entity (including any individual or entity participating in the offering, whether as underwriter, advisor, investor or otherwise).

(C)For the past five years, neither the Company nor its Subsidiaries have knowingly engaged in, and is not now knowingly engaged in, any dealings or transactions 

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with any individual or entity, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.

(z)Compliance with Environmental Laws. Except as disclosed in the Registration Statement and the Prospectus, neither the Company nor its Subsidiaries are in violation of any statute, rule, regulation, decision or order of any Governmental Authority or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), owns or operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any Environmental Laws, or is subject to any claim relating to any Environmental Laws, which violation, contamination, liability or claim would individually or in the aggregate, have a Material Adverse Effect; and the Company is not aware of any pending investigation which might lead to such a claim. Neither the Company nor its Subsidiaries anticipate incurring any material capital expenditures relating to compliance with Environmental Laws.

(aa)Compliance with Occupational Laws. The Company and its Subsidiaries (A) are in compliance, in all material respects, with any and all applicable foreign, federal, state and local laws, rules, regulations, treaties, statutes and codes promulgated by any and all Governmental Authorities (including pursuant to the Occupational Health and Safety Act) relating to the protection of human health and safety in the workplace (“Occupational Laws”); (B) have received all material permits, licenses or other approvals required of it under applicable Occupational Laws to conduct its business as currently conducted; and (C) are in compliance, in all material respects, with all terms and conditions of such permit, license or approval. No action, proceeding, revocation proceeding, writ, injunction or claim is pending or, to the Company’s knowledge, threatened against the Company or any of its Subsidiaries relating to Occupational Laws, and except as would not reasonably be expected to have a Material Adverse Effect, the Company does not have knowledge of any facts, circumstances or developments relating to its operations or cost accounting practices that could reasonably be expected to form the basis for or give rise to such actions, suits, investigations or proceedings.

(bb)ERISA and Employee Benefits Matters. Except (i) as set forth or described in the Registration Statement or the Prospectus, none of the following events has occurred or exists: (A) a failure to fulfill the obligations, if any, under the minimum funding standards of Section 302 of the United States Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the regulations and published interpretations thereunder with respect to a Plan, determined without regard to any waiver of such obligations or extension of any amortization period that would reasonably be expected to have a Material Adverse Effect; (B) an audit or investigation by the Internal Revenue Service, the U.S. Department of Labor, the Pension Benefit Guaranty Corporation or any other federal or state governmental agency or any foreign regulatory agency with respect to the employment or compensation of employees by the Company or its Subsidiaries that would reasonably be expected to have a Material Adverse Effect; or (C) any breach of any contractual obligation, or any violation of law or applicable qualification standards, with respect to the employment or compensation of employees by the Company or its Subsidiaries that would reasonably be expected to have a Material Adverse Effect. Except (i) as set forth or 

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described in the Registration Statement and the Prospectus or (ii) as would not have, individually or in the aggregate, a Material Adverse Effect, none of the following events has occurred or is reasonably likely to occur: (A) an increase in the aggregate amount of contributions required to be made to all Plans in the current fiscal year of the Company and its Subsidiaries compared to the amount of such contributions made in the most recently completed fiscal year of the Company and its Subsidiaries; (B) an increase in the “accumulated post-retirement benefit obligations” (within the meaning of  Statement of Financial Accounting Standards 106) of the Company and its Subsidiaries compared to the amount of such obligations in the most recently completed fiscal year of the Company and its Subsidiaries; (C) any event or condition giving rise to a liability under Title IV of ERISA; or (D) the filing of a material claim by one or more employees or former employees of the Company or its Subsidiaries related to their employment. For purposes of this paragraph, the term “Plan” means a plan (within the meaning of Section 3(3) of ERISA) with respect to which the Company or its Subsidiaries may have any liability.

(cc)Business Arrangements. Except as disclosed in the Registration Statement and the Prospectus, neither the Company nor its Subsidiaries have granted any material rights to develop, manufacture, distribute, license, market or sell its products to any other person and is not bound by any agreement that limits in any material respects the right of the Company or its Subsidiaries to develop, manufacture, distribute, license, market or sell its products.

(dd)Labor Matters. No labor problem or dispute with the employees of the Company or its Subsidiaries exists or is threatened or imminent, and the Company is not aware of any existing or imminent labor disturbance by the employees of any of its or its Subsidiary’s principal suppliers, contractors or customers, that would have a Material Adverse Effect.

(ee)Disclosure of Legal Matters. There are no statutes, regulations, legal or governmental proceedings or contracts or other documents required to be described in the Registration Statement or in the Prospectus or included as exhibits to the Registration Statement that are not described or included as required by the Securities Act Regulations.

(ff)Statistical Information. Any third party statistical and market-related data included or incorporated by reference in the Registration Statement and the Prospectus are based on or derived from sources that the Company believes to be reliable and accurate in all material respects.

(gg)Forward-looking Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) contained or incorporated by reference in the Registration Statement or the Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.

(hh)Compliance with Healthcare Laws. The Company and its Subsidiaries and, to the Company’s knowledge, its directors, officers, employees, and agents (while acting in such capacity) are, and at all times have been, in material compliance with, all healthcare laws applicable to the Company and its Subsidiaries or any of its products or activities, including, but not limited to, the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), the civil False Claims Act (31 U.S.C. §§ 3729 et seq.), the criminal False Claims Law (42 U.S.C. § 1320a-7b(a)), the federal Physician Payment Sunshine Act (42 U.S.C. § 1320a-7h), the civil monetary penalties 

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laws (42 U.S.C. § 1320a-7a), all criminal laws relating to health care fraud and abuse, including but not limited to 18 U.S.C. §§ 286 and 287, the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.), as amended by the Health Information Technology for Economic and Clinical Health Act (42 U.S.C. §§ 17921 et seq.), the exclusion laws (42 U.S.C. § 1320a-7), the Federal Food, Drug, and Cosmetic Act (21 U.S.C. §§ 301 et seq.), the Controlled Substances Act (21 U.S.C. §§ 801 et seq.), the Public Health Services Act, the Medicare statute (Title XVIII of the Social Security Act), the Medicaid statute (Title XIX of the Social Security Act), each as amended, the regulations promulgated pursuant to such laws, and any other state or federal law, which imposes requirements on the manufacturing, development, testing, labeling, marketing or distribution of pharmaceutical products, kickbacks, patient or program charges, recordkeeping, claims process, documentation requirements, medical necessity, referrals, the hiring of employees or acquisition of services or supplies from those who have been excluded from government health care programs, quality, safety, privacy, security, licensure, accreditation or any other aspect of providing health care or pharmaceutical services (collectively, “Healthcare Laws”), and have not engaged in activities which are, as applicable, prohibited or cause for false claim liability, civil penalties, or mandatory or permissive exclusion from Medicare, Medicaid or any other state or federal health care program. The Company has not received any notification, correspondence or any other written communication, including notification of any pending or threatened claim, suit, proceeding, hearing, enforcement, investigation, arbitration or other action (“Action”) from any court, arbitrator, third- party, or governmental or regulatory authority, including, without limitation, the United States Food and Drug Administration (“FDA”), the Drug Enforcement Administration (“DEA”), the Centers for Medicare and Medicaid Services, or the U.S. Department of Health and Human Services Office of Inspector General, of potential or actual non- compliance by, or liability of, the Company or its Subsidiaries under any Health Care Laws, and to the knowledge of the Company, no such Action is threatened.

(ii)Permits. The Company and, as applicable, its Subsidiaries hold, and are operating in material compliance with, all material permits, licenses, franchises, registrations, exemptions, approvals, authorizations and clearances of the FDA and other governmental authorities required for the conduct of its business as currently conducted (collectively, the “Healthcare Permits”), and all such Healthcare Permits are in full force and effect. The Company and its Subsidiaries have fulfilled and performed all of their material obligations with respect to the Healthcare Permits, and, to the Company’s knowledge, no event has occurred which allows, or after notice or lapse of time would allow, revocation or termination thereof or results in any other material impairment of the rights of the holder of any Healthcare Permit or have a Material Adverse Effect. To the Company’s knowledge, all applications, notifications, submissions, information, claims, reports and statistics, and other data and conclusions derived therefrom, utilized as the basis for any and all requests for a Healthcare Permit from the FDA or other governmental authority relating to the Company and its Subsidiaries, their business and the products of the Company and its Subsidiaries, when submitted to the FDA or other governmental authority, were true, complete and correct in all material respects as of the date of submission and any necessary or required updates, changes, corrections or modification to such applications, submissions, information and data have been submitted to the FDA or other governmental authority.

(jj)Clinical Studies. The clinical trials and pre-clinical studies and tests 

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conducted by or, to the knowledge of the Company, on behalf of or sponsored by the Company or its Subsidiaries were, and if still pending, are, being conducted in all material respects in accordance with all applicable Healthcare Laws, including, but not limited to, the Federal Food, Drug and Cosmetic Act and its applicable implementing regulations at 21 C.F.R. Parts 50, 54, 56, 58 and 312. Any descriptions of clinical, pre-clinical and other studies and tests, including any related results and regulatory status, contained in the Registration Statement or the Prospectus are accurate in all material respects. Except as disclosed in the Registration Statement and the Prospectus and to the Company’s knowledge, there are no studies, tests or trials the result of which reasonably call into question in any material respect the clinical trial results described or referred to in the Registration Statement or the Prospectus. No investigational new drug application filed by or on behalf of the Company or its Subsidiaries with the FDA has been terminated or suspended by the FDA, and neither the FDA nor any applicable foreign regulatory agency has commenced, or, to the Company’s knowledge, threatened to initiate, any action to place a clinical hold order on, or otherwise terminate, delay or suspend, any proposed or ongoing clinical investigation conducted or proposed to be conducted by or on behalf of the Company or its Subsidiaries.

(kk)No Corporate Integrity Agreements. Neither the Company nor its Subsidiaries are a party to or has any ongoing reporting obligations pursuant to any corporate integrity agreements, monitoring agreements, deferred prosecution agreements, consent decrees, settlement orders, or similar agreements with or imposed by any governmental authority.

(ll)No Debarments. Neither the Company, its Subsidiaries, nor any of their respective employees, officers or directors has been excluded, suspended or debarred from participation in any U.S. state or federal health care program or human clinical research or is subject to a governmental inquiry, claim, investigation, proceeding, or other any other Action that could reasonably be expected to result in debarment, suspension, or exclusion.

(mm)No Undisclosed Relationship. No relationship, direct or indirect, exists between or among the Company or its Subsidiaries, on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company, on the other, that is required by the Securities Act to be described in the Registration Statement and the Prospectus and that is not so described in such documents. As of the date of the initial filing of the Registration Statement, there were no outstanding personal loans made, directly or indirectly, by the Company to any director or executive officer of the Company. 

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

(oo)Agent Purchases.  The Company acknowledges and agrees that the Agent has informed the Company that the Agent may, to the extent permitted under the Securities Act and the Exchange Act and by the terms of this Agreement, purchase and sell Common Stock for its own account while this Agreement is in effect, provided, that (i) no such purchase or sales shall take place while a Placement Notice is in effect (except to the extent the Agent may engage in sales of Placement Shares purchased or deemed purchased from the Company as a “riskless principal” or in a similar capacity) and (ii) the Company shall not be deemed to have authorized or consented to any such purchases or sales by the Agent.

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(pp)No Reliance.  The Company has not relied upon the Agent or legal counsel for the Agent for any legal, tax or accounting advice in connection with the offering and sale of the Placement Shares.

(qq)Margin Rules.  Neither the issuance, sale and delivery of the Placement Shares nor the application of the proceeds thereof by the Company as described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors.

(rr)Broker/Dealer Relationships.  Neither the Company nor any of the Subsidiaries (i) is required to register as a “broker” or “dealer” in accordance with the provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls or is a “person associated with a member” or “associated person of a member” (within the meaning set forth in the FINRA Manual).

(ss)Stock Transfer Taxes.  On each Settlement Date, all stock transfer or other taxes (other than income taxes) which are required to be paid in connection with the sale and transfer of the Placement Shares to be sold hereunder will be, or will have been, fully paid or provided for by the Company and all laws imposing such taxes will be or will have been fully complied with in all material respects.

(tt)Status Under the Securities Act.  The Company was not and is not an ineligible issuer as defined in Rule 405 under the Securities Act at the times specified in Rules 164 and 433 under the Securities Act in connection with the offering of the Placement Shares.

(uu)No Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus, as of its issue date and as of each Applicable Time (as defined in Section 23 below), did not, does not and will not include any information that conflicted, conflicts or will conflict with the information contained in the Registration Statement or the Prospectus, including any Incorporated Document that has not been superseded or modified.  The foregoing sentence does not apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity with written information furnished to the Company by the Agent specifically for use therein.

(vv)Emerging Growth Company Status.  From the time of the initial filing of the Company’s first registration statement with the Commission through the date hereof, the Company has been and is an “emerging growth company,” as defined in Section 2(a) of the Securities Act (an “Emerging Growth Company”).

Any certificate signed by an officer of the Company and delivered to the Agent or to counsel for the Agent pursuant to or in connection with this Agreement shall be deemed to be a representation and warranty by the Company, as applicable, to the Agent as to the matters set forth therein.

7.Covenants of the Company.  The Company covenants and agrees with Agent that:

(a)Registration Statement Amendments.  After the date of this Agreement and during any period in which a Prospectus relating to any Placement Shares is required to be 

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delivered by Agent under the Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rule 172 under the Securities Act or similar rule), (i) the Company will notify the Agent promptly of the time when any subsequent amendment to the Registration Statement, other than documents incorporated by reference, has been filed with the Commission and/or has become effective or any subsequent supplement to the Prospectus has been filed and of any request by the Commission for any amendment or supplement to the Registration Statement or Prospectus or for additional information, (ii) the Company will prepare and file with the Commission, promptly upon the Agent’s request, any amendments or supplements to the Registration Statement or Prospectus that, in the Agent’s reasonable opinion, may be necessary or advisable in connection with the distribution of the Placement Shares by the Agent (provided, however, that the failure of the Agent to make such request shall not relieve the Company of any obligation or liability hereunder, or affect the Agent’s right to rely on the representations and warranties made by the Company in this Agreement and provided, further, that the only remedy the Agent shall have with respect to the failure to make such filing shall be to cease making sales under this Agreement until such amendment or supplement is filed); (iii) the Company will not file any amendment or supplement to the Registration Statement or Prospectus relating to the Placement Shares or a security convertible into the Placement Shares unless a copy thereof has been submitted to the Agent within a reasonable period of time before the filing and the Agent has not reasonably objected thereto in writing within two (2) Business Days (provided, however, that the failure of the Agent to make such objection shall not relieve the Company of any obligation or liability hereunder, or affect the Agent’s right to rely on the representations and warranties made by the Company in this Agreement, and the Company has no obligation to provide the Agent with any advance copy of such filing or provide the Agent any opportunity to object to such filing if such filing does not name the Agent and does not relate to the transactions contemplated by this Agreement; and provided, further, that the only remedy the Agent shall have with respect to the failure by the Company to obtain such consent shall be to cease making sales under this Agreement) and the Company will furnish to the Agent at the time of filing thereof a copy of any document that upon filing is deemed to be incorporated by reference into the Registration Statement or Prospectus, except for those documents available via EDGAR; and (iv) the Company will cause each amendment or supplement to the Prospectus to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or, in the case of any document to be incorporated therein by reference, to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed (the determination to file or not file any amendment or supplement with the Commission under this Section 7(a), based on the Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company).

(b)Notice of Commission Stop Orders.  The Company will advise the Agent, promptly after it receives notice or obtains knowledge thereof, of the issuance or threatened issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement, of the suspension of the qualification of the Placement Shares for offering or sale in any jurisdiction, or of the initiation or threatening of any proceeding for any such purpose; and it will promptly use its commercially reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal if such a stop order should be issued.  The Company will advise the Agent promptly after it receives any request by the Commission for any amendments to the Registration Statement or any amendment or supplements to the Prospectus or any Issuer Free Writing Prospectus or for additional information related to the offering of the Placement Shares or for 

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additional information related to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus.

(c)Delivery of Prospectus; Subsequent Changes.  During any period in which a Prospectus relating to the Placement Shares is required to be delivered by the Agent under the Securities Act with respect to the offer and sale of the Placement Shares, (including in circumstances where such requirement may be satisfied pursuant to Rule 172 under the Securities Act or similar rule), the Company will comply with all requirements imposed upon it by the Securities Act, as from time to time in force, and to file on or before their respective due dates all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act.  If the Company has omitted any information from the Registration Statement pursuant to Rule 430B under the Securities Act, it will use its best efforts to comply with the provisions of and make all requisite filings with the Commission pursuant to said Rule 430B and to notify the Agent promptly of all such filings if not available on EDGAR.  If during such period any event occurs as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or supplement the Registration Statement or Prospectus to comply with the Securities Act, the Company will promptly notify the Agent to suspend the offering of Placement Shares during such period and the Company will promptly amend or supplement the Registration Statement or Prospectus (at the expense of the Company) so as to correct such statement or omission or effect such compliance; provided, however, that the Company may delay any such amendment or supplement if, in the reasonable judgment of the Company, it is in the best interests of the Company to do so.

(d)Listing of Placement Shares.  During any period in which the Prospectus relating to the Placement Shares is required to be delivered by the Agent under the Securities Act with respect to the offer and sale of the Placement Shares, the Company will use its reasonable best efforts to cause the Placement Shares to be listed on the Exchange.

(e)Delivery of Registration Statement and Prospectus.  The Company will furnish to the Agent and its counsel (at the expense of the Company) copies of the Registration Statement, the Prospectus (including all Incorporated Documents by reference therein) and all amendments and supplements to the Registration Statement or Prospectus that are filed with the Commission during any period in which a Prospectus relating to the Placement Shares is required to be delivered under the Securities Act (including all Incorporated Documents filed with the Commission during such period), in each case as soon as reasonably practicable and in such quantities as the Agent may from time to time reasonably request and, at the Agent’s request, will also furnish copies of the Prospectus to each exchange or market on which sales of the Placement Shares may be made; provided, however, that the Company shall not be required to furnish any document (other than the Prospectus) to the Agent to the extent such document is available on EDGAR.

(f)Earnings Statement.  The Company will make generally available to its security holders as soon as practicable, but in any event not later than 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering a 12-month period that satisfies the provisions of Section 11(a) and Rule 158 of the Securities Act.

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(g)Use of Proceeds.  The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use of Proceeds.”

(h)Notice of Other Sales.  Without the prior written consent of the Agent (which consent will not be unreasonably withheld or delayed), the Company will not, directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire, Common Stock during the period beginning on the fifth (5th) Trading Day immediately prior to the date on which any Placement Notice is delivered to Agent hereunder and ending on the fifth (5th) Trading Day immediately following the final Settlement Date with respect to Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice has been terminated or suspended prior to the sale of all Placement Shares covered by a Placement Notice, the date of such suspension or termination); and will not directly or indirectly in any other “at-the-market” or continuous equity transaction offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire, Common Stock prior to the later of the termination of this Agreement and the sixtieth (60th) day immediately following the final Settlement Date with respect to Placement Shares sold pursuant to such Placement Notice; provided, however, that such restrictions will not be required in connection with the Company’s issuance or sale of (i) Common Stock, options to purchase Common Stock, other equity awards to acquire Common Stock or Common Stock issuable upon the exercise of options or other equity awards, pursuant to any equity incentive or benefits plan, stock ownership plan or dividend reinvestment plan (but not Common Stock subject to a waiver to exceed plan limits in its dividend reinvestment plan) of the Company whether now in effect or hereafter implemented, (ii) Common Stock issuable upon conversion of securities or the exercise of warrants, options or other rights in effect or outstanding, and disclosed in filings by the Company available on EDGAR or otherwise in writing to the Agent and (iii) Common Stock or securities convertible into or exchangeable for shares of Common Stock as consideration for the provision of goods and services or as consideration for mergers, acquisitions, other business combinations or strategic alliances occurring after the date of this Agreement which are not issued for capital raising purposes.

(i)Change of Circumstances.  The Company will, at any time during the pendency of a Placement Notice advise the Agent promptly after it shall have received notice or obtained knowledge thereof, of any information or fact that would alter or affect in any material respect any opinion, certificate, letter or other document required to be provided to the Agent pursuant to this Agreement.

(j)Due Diligence Cooperation.  The Company will cooperate with any reasonable due diligence review conducted by the Agent or its representatives in connection with the transactions contemplated hereby, including, without limitation, providing information and making available documents and senior corporate officers, during regular business hours and at the Company’s principal offices, as the Agent may reasonably request.

(k)Required Filings Relating to Placement of Placement Shares.  The Company agrees that on such dates as the Securities Act shall require with respect to the Placement Shares, the Company will (i) file a prospectus supplement with the Commission under the 

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applicable paragraph of Rule 424(b) under the Securities Act (each and every filing date under Rule 424(b), a “Filing Date”), which prospectus supplement will set forth, within the relevant period, the amount of Placement Shares sold through the Agent, the Net Proceeds to the Company and the compensation payable by the Company to the Agent with respect to such Placement Shares, and (ii) deliver such number of copies of each such prospectus supplement to each exchange or market on which such sales were effected as may be required by the rules or regulations of such exchange or market.

(l)Representation Dates; Certificate.  (1) On or prior to the date of the first Placement Notice and (2) each time the Company:

(i) files the Prospectus relating to the Placement Shares or amends or supplements (other than a prospectus supplement relating solely to an offering of securities other than the Placement Shares) the Registration Statement or the Prospectus relating to the Placement Shares by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of documents by reference into the Registration Statement or the Prospectus relating to the Placement Shares;

(ii) files an annual report on Form 10-K under the Exchange Act (including any Form 10-K/A containing amended financial information or a material amendment to the previously filed Form 10-K);

(iii) files its quarterly reports on Form 10-Q under the Exchange Act; or 

(iv) files a current report on Form 8-K containing amended financial information (other than information “furnished” pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) under the Exchange Act (each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall be a “Representation Date”);

the Company shall furnish the Agent (but in the case of clause (iv) above only if the Agent reasonably determines that the information contained in such Form 8‐K is material) with a certificate in the form attached hereto as Exhibit 7(l).  The requirement to provide a certificate under this Section 7(l) shall be waived without any action on the part of the Agent or the Company for any Representation Date occurring at a time a Suspension is in effect, which waiver shall continue until the earlier to occur of the date the Company delivers instructions for the sale of Placement Shares hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date.  Notwithstanding the foregoing, if the Company subsequently decides to sell Placement Shares following a Representation Date when a Suspension was in effect and did not provide the Agent with a certificate under this Section 7(l), then before the Company delivers the instructions for the sale of Placement Shares or the Agent sells any Placement Shares pursuant to such instructions, the Company shall provide the Agent with a certificate in conformity with this Section 7(l) dated as of the date that the instructions for the sale of Placement Shares are issued.  

(m)Legal Opinions.  (1) On or prior to the date of the first Placement Notice  and (2) within five (5) Trading Days of each Representation Date with respect to which the 

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Company is obligated to deliver a certificate pursuant to Section 7(l) for which no waiver is applicable and excluding the date of this Agreement, the Company shall cause to be furnished to the Agent (A) a written opinion and negative assurance letter of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (“Company Counsel”), or other counsel satisfactory to the Agent, (B) a written opinion of Goodwin Procter, LLP (“IP Counsel 1”), or other counsel satisfactory to the Agent, and (C) a written opinion of Foley Hoag, LLP (“IP Counsel 2”), or other counsel satisfactory to the Agent in each case in form and substance satisfactory to Agent and its counsel, substantially similar to the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided, however, the Company shall be required to furnish to Agent no more than one opinion and negative assurance letter from Company counsel and no more than one opinion from IP Counsel 1 and one Opinion from IP Counsel 2 hereunder per calendar quarter; provided, further, that in lieu of such opinions for subsequent periodic filings under the Exchange Act, counsel may furnish the Agent with a letter (a “Reliance Letter”) to the effect that the Agent may rely on a prior opinion delivered under this Section 7(m) to the same extent as if it were dated the date of such letter (except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented as of the date of the Reliance Letter).

(n)Comfort Letter.  (1) On or prior to the date of the first Placement Notice and (2) within five (5) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(l) for which no waiver is applicable and excluding the date of this Agreement, the Company shall cause its independent registered public accounting firm to furnish the Agent letters (the “Comfort Letters”), dated the date the Comfort Letter is delivered, which shall meet the requirements set forth in this Section 7(n); provided, that if requested by the Agent, the Company shall cause a Comfort Letter to be furnished to the Agent within ten (10) Trading Days of the date of occurrence of any material transaction or event requiring the filing of a Current Report on Form 8-K, including the restatement of the Company’s financial statements.  The Comfort Letter from the Company’s independent registered public accounting firm shall be in a form and substance reasonably satisfactory to the Agent, (i) confirming that they are an independent registered public accounting firm within the meaning of the Securities Act and the PCAOB, (ii) stating, as of such date, the conclusions and findings of such firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection with registered public offerings (the first such letter, the “Initial Comfort Letter”) and (iii) updating the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had it been given on such date and modified as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.

(o)Market Activities.  The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of Common Stock or (ii) sell, bid for, or purchase Common Stock in violation of Regulation M, or pay anyone any compensation for soliciting purchases of the Placement Shares other than the Agent.

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(p)Investment Company Act.  The Company will conduct its affairs in such a manner so as to reasonably ensure that neither it nor any of its Subsidiaries will be or become, at any time prior to the termination of this Agreement, required to register as an “investment company,” as such term is defined in the Investment Company Act.

(q)No Offer to Sell.  Other than an Issuer Free Writing Prospectus approved in advance by the Company and the Agent in its capacity as agent hereunder, neither the Agent nor the Company (including its agents and representatives, other than the Agent in its capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405 under the Securities Act), required to be filed with the Commission, that constitutes an offer to sell or solicitation of an offer to buy Placement Shares hereunder.

(r)Blue Sky and Other Qualifications.  The Company will use its commercially reasonable efforts, in cooperation with the Agent, to qualify the Placement Shares for offering and sale, or to obtain an exemption for the Placement Shares to be offered and sold, under the applicable securities laws of such states and other jurisdictions (domestic or foreign) as the Agent may reasonably designate and to maintain such qualifications and exemptions in effect for so long as required for the distribution of the Placement Shares (but in no event for less than one year from the date of this Agreement); provided, however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.  In each jurisdiction in which the Placement Shares have been so qualified or exempt, the Company will file such statements and reports as may be required by the laws of such jurisdiction to continue such qualification or exemption, as the case may be, in effect for so long as required for the distribution of the Placement Shares (but in no event for less than one year from the date of this Agreement).

(s)Sarbanes-Oxley Act.  The Company and the Subsidiaries will maintain and keep accurate books and records reflecting their assets and maintain internal accounting controls in a manner designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and including those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company, (ii) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of the Company’s consolidated financial statements in accordance with generally accepted accounting principles, (iii) that receipts and expenditures of the Company are being made only in accordance with management’s and the Company’s directors’ authorization, and (iv) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on its financial statements.  The Company and the Subsidiaries will maintain such controls and other procedures, including, without limitation, those required by Sections 302 and 906 of the Sarbanes-Oxley Act, and the applicable regulations thereunder that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, including, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and 

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communicated to the Company’s management, including its principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure and to ensure that material information relating to the Company or the Subsidiaries is made known to them by others within those entities, particularly during the period in which such periodic reports are being prepared.

(t)Secretary’s Certificate; Further Documentation.  Prior to the date of the first Placement Notice, the Company shall deliver to the Agent a certificate of the Secretary of the Company and attested to by an executive officer of the Company, dated as of such date, certifying as to (i) the Amended and Restated Certificate of Incorporation of the Company, (ii) the Amended and Restated Bylaws of the Company, (iii) the resolutions of the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and the issuance of the Placement Shares and (iv) the incumbency of the officers duly authorized to execute this Agreement and the other documents contemplated by this Agreement.  Within five (5) Trading Days of each Representation Date, the Company shall have furnished to the Agent such further information, certificates and documents as the Agent may reasonably request.

(u)Emerging Growth Company Status.  The Company will promptly notify the Agent if the Company ceases to be an Emerging Growth Company at any time during the term of this Agreement.

8.Payment of Expenses.  The Company will pay all expenses incident to the performance of its obligations under this Agreement, including (i) the preparation and filing of the Registration Statement, including any fees required by the Commission, and the printing or electronic delivery of the Prospectus as originally filed and of each amendment and supplement thereto, in such number as the Agent shall reasonably deem necessary, (ii) the printing and delivery to the Agent of this Agreement and such other documents as may be required in connection with the offering, purchase, sale, issuance or delivery of the Placement Shares, (iii) the preparation, issuance and delivery of the certificates, if any, for the Placement Shares to the Agent, including any stock or other transfer taxes and any capital duties, stamp duties or other similar duties or taxes payable upon the sale, issuance or delivery of the Placement Shares to the Agent, (iv) the fees and disbursements of the counsel, accountants and other advisors to the Company, (v) the reasonable and documented fees and expenses of the Agent’s outside counsel, payable upon the execution of this Agreement, in an amount not to exceed $50,000, (vi) the qualification or exemption of the Placement Shares under state securities laws in accordance with the provisions of Section 7(r) hereof, including filing fees, but excluding fees of the Agent’s counsel, (vii) the printing and delivery to the Agent of copies of any Permitted Issuer Free Writing Prospectus and the Prospectus and any amendments or supplements thereto in such number as the Agent shall reasonably deem necessary, (viii) the preparation, printing and delivery to the Agent of copies of the blue sky survey, (ix) the fees and expenses of the transfer agent and registrar for the Common Stock, (x) the filing and other fees incident to any review by FINRA of the terms of the sale of the Placement Shares including the fees of the Agent’s counsel (subject to the cap, set forth in clause (v) above), and (xi) the fees and expenses incurred in connection with the listing of the Placement Shares on the Exchange.

9.Conditions to Agent’s Obligations.  The obligations of the Agent hereunder with respect to a Placement will be subject to the continuing accuracy and completeness of the representations and warranties made by the Company herein, to the due performance by the 

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Company of its obligations hereunder, to the completion by the Agent of a due diligence review satisfactory to it in its reasonable judgment, and to the continuing satisfaction (or waiver by the Agent in its sole discretion) of the following additional conditions:

(a)Registration Statement Effective.  The Registration Statement shall have become effective and shall be available for the (i) resale of all Placement Shares issued to the Agent and not yet sold by the Agent and (ii) sale of all Placement Shares contemplated to be issued by any Placement Notice.

(b)No Material Notices.  None of the following events shall have occurred and be continuing: (i) receipt by the Company of any request for additional information from the Commission or any other federal or state Governmental Authority during the period of effectiveness of the Registration Statement, the response to which would require any post-effective amendments or supplements to the Registration Statement or the Prospectus; (ii) the issuance by the Commission or any other federal or state Governmental Authority of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Placement Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; or (iv) the occurrence of any event that makes any material statement made in the Registration Statement or the Prospectus or any material  Incorporated Document untrue in any material respect or that requires the making of any changes in the Registration Statement, the Prospectus or any material Incorporated Document it will not contain any materially untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and, that in the case of the Prospectus, it will not contain any materially untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

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

(d)Material Changes.  Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with the Commission, there shall not have been any material adverse change in the authorized capital stock of the Company or any Material Adverse Effect or any development that would cause a Material Adverse Effect, or a downgrading in or withdrawal of the rating assigned to any of the Company’s securities (other than asset backed securities) by any rating organization or a public announcement by any rating organization that it has under surveillance or review its rating of any of the Company’s securities (other than asset backed securities), the effect of which, in the case of any such action by a rating organization described above, in the reasonable judgment of the Agent (without relieving the Company of any obligation or liability it may otherwise have), is so material as to make it impracticable or inadvisable to proceed with the offering of the Placement Shares on the terms and in the manner contemplated in the Prospectus.

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(e)Legal Opinions.  The Agent shall have received the opinions and letters, as applicable, of Company Counsel, IP Counsel 1 and IP Counsel 2 required to be delivered pursuant to Section 7(m) on or before the date on which such delivery of such opinions is required pursuant to Section 7(m).

(f)Comfort Letter.  The Agent shall have received the Comfort Letter required to be delivered pursuant to Section 7(n) on or before the date on which such delivery of such Comfort Letter is required pursuant to Section 7(n).

(g)Representation Certificate.  The Agent shall have received the certificate required to be delivered pursuant to Section 7(l) on or before the date on which delivery of such certificate is required pursuant to Section 7(l).

(h)No Suspension.  Trading in the Common Stock shall not have been suspended on the Exchange and the Common Stock shall not have been delisted from the Exchange.

(i)Other Materials.  On each date on which the Company is required to deliver a certificate pursuant to Section 7(l), the Company shall have furnished to the Agent such appropriate and customary further information, opinions, certificates, letters and other documents as the Agent may reasonably request.  All such opinions, certificates, letters and other documents will be in compliance with the provisions hereof.

(j)Securities Act Filings Made.  All filings with the Commission with respect to the Placement Shares required by Rule 424 under the Securities Act to have been filed prior to the issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing by Rule 424.

(k)Approval for Listing.  The Placement Shares shall either have been (i) approved for listing on the Exchange, subject only to notice of issuance, or (ii) the Company shall have filed an application for listing of the Placement Shares on the Exchange at, or prior to, the issuance of any Placement Notice and the Exchange shall have reviewed such application and not provided any objections thereto.

(l)FINRA.  If applicable, FINRA shall have raised no objection to the terms of this offering and the amount of compensation allowable or payable to the Agent as described in the Prospectus. 

(m)No Termination Event.  There shall not have occurred any event that would permit the Agent to terminate this Agreement pursuant to Section 12(a).

10.Indemnification and Contribution.

(a)Company Indemnification.  The Company agrees to indemnify and hold harmless the Agent, its affiliates and their respective partners, members, directors, officers, employees and agents and each person, if any, who controls the Agent or any affiliate within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as follows: 

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(i)against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact included in any related Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

(ii)against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 10(d) below) any such settlement is effected with the written consent of the Company, which consent shall not unreasonably be delayed or withheld; and

(iii)against any and all expense whatsoever, as incurred (including the reasonable and documented fees and disbursements of counsel), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission (whether or not a party), to the extent that any such expense is not paid under (i) or (ii) above,

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made solely in reliance upon and in conformity with the Agent Information (as defined below).

(b)Agent Indemnification.  The Agent agrees to indemnify and hold harmless the Company and its directors and each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 10(a), as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendments thereto), the Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with information relating to the Agent and furnished to the Company in writing by the Agent expressly for use therein.  The Company hereby acknowledges that the only information that the Agent has furnished to the Company expressly for use in the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) are the statements set forth in the seventh and eighth paragraphs under the caption “Plan of Distribution” in the Prospectus (the “Agent Information”).

(c)Procedure.  Any party that proposes to assert the right to be indemnified under this Section 10 will, promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under 

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this Section 10, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might have to any indemnified party otherwise than under this Section 10 and (ii) any liability that it may have to any indemnified party under the foregoing provision of this Section 10 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party.  If any such action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party for any legal or other expenses except as provided below and except for the reasonable costs of investigation subsequently incurred by the indemnified party in connection with the defense.  The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action or counsel reasonably satisfactory to the indemnified party, in each case, within a reasonable time after receiving notice of the commencement of the action; in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties.  It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm (plus local counsel) admitted to practice in such jurisdiction at any one time for all such indemnified party or parties.  All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred.  An indemnifying party will not, in any event, be liable for any settlement of any action or claim effected without its written consent.  No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 10 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent (1) includes an unconditional release of each indemnified party, in form and substance reasonably satisfactory to such indemnified party, from all liability arising out of such litigation, investigation, proceeding or claim and (2) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

(d)Settlement Without Consent if Failure to Reimburse.  If an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 10(a)(ii) effected without its written consent if 

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(1) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (2) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (3) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.

(e)Contribution.  In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this Section 10 is applicable in accordance with its terms but for any reason is held to be unavailable or insufficient from the Company or the Agent, the Company and the Agent will contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted) to which the Company and the Agent may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Agent on the other hand.  The relative benefits received by the Company on the one hand and the Agent on the other hand shall be deemed to be in the same proportion as the total net proceeds from the sale of the Placement Shares (before deducting expenses) received by the Company bear to the total compensation received by the Agent from the sale of Placement Shares on behalf of the Company.  If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand, and the Agent, on the other hand, with respect to the statements or omission that resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering.  Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Agent, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission.  The Company and the Agent agree that it would not be just and equitable if contributions pursuant to this Section 10(e) were to be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to herein.  The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense, or damage, or action in respect thereof, referred to above in this Section 10(e) shall be deemed to include, for the purpose of this Section 10(e), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim to the extent consistent with Section 10(c) hereof.  Notwithstanding the foregoing provisions of this Section 10(e), the Agent shall not be required to contribute any amount in excess of the commissions received by it under this Agreement and no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 10(e), any person who controls a party to this Agreement within the meaning of the Securities Act, and any officers, directors, partners, employees or agents of the Agent, will have the same rights to contribution as that party, and each director of the Company and each officer of the Company who signed the Registration Statement will have the same rights to contribution as the Company, subject in each case to the provisions hereof.  Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution may be made under this Section 10(e), will notify any 

-31-

 

 

such party or parties from whom contribution may be sought, but the omission to so notify will not relieve that party or parties from whom contribution may be sought from any other obligation it or they may have under this Section 10(e) except to the extent that the failure to so notify such other party materially prejudiced the substantive rights or defenses of the party from whom contribution is sought.  Except for a settlement entered into pursuant to the last sentence of Section 10(c) hereof, no party will be liable for contribution with respect to any action or claim settled without its written consent if such consent is required pursuant to Section 10(c) hereof.

11.Representations and Agreements to Survive Delivery.  The indemnity and contribution agreements contained in Section 10 of this Agreement and all representations and warranties of the Company herein or in certificates delivered pursuant hereto shall survive, as of their respective dates, regardless of (i) any investigation made by or on behalf of the Agent, any controlling persons, or the Company (or any of their respective officers, directors or controlling persons), (ii) delivery and acceptance of the Placement Shares and payment therefor or (iii) any termination of this Agreement.

12.Termination.

(a)The Agent may terminate this Agreement, by notice to the Company, as hereinafter specified at any time (1) if there has been, since the time of execution of this Agreement or since the date as of which information is given in the Prospectus, any change, or any development or event involving a prospective change, in the condition, financial or otherwise, or in the business, properties, earnings, results of operations or prospects of the Company and its Subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business, which individually or in the aggregate, in the sole judgment of the Agent is material and adverse and makes it impractical or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (2) if there has occurred any material adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international political, financial or economic conditions, in each case the effect of which is such as to make it, in the judgment of the Agent, impracticable or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (3) if trading in the Common Stock has been suspended or limited by the Commission or the Exchange and such suspension or limitation is continuing, or if trading generally on the Exchange has been suspended or limited and such suspension or limitation is continuing, or minimum prices for trading have been fixed on the Exchange, (4) if any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market shall have occurred and be continuing, (5) if a major disruption of securities settlements or clearance services in the United States shall have occurred and be continuing, or (6) if a banking moratorium has been declared by either U.S. Federal or New York authorities.  Any such termination shall be without liability of any party to any other party except that the provisions of Section 8 (Payment of Expenses), Section 10 (Indemnification and Contribution), Section 11 (Representations and Agreements to Survive Delivery), Section 17 (Governing Law and Time; Waiver of Jury Trial) and Section 18 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.  If the Agent elects to terminate this Agreement as provided in this Section 12(a), the Agent shall provide the required notice as specified in Section 13 (Notices).

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(b)The Company shall have the right, by giving ten (10) days’ notice as hereinafter specified to terminate this Agreement in its sole discretion at any time after the date of this Agreement.  Any such termination shall be without liability of any party to any other party except that the provisions of Section 8, Section 10, Section 11, Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.

(c)The Agent shall have the right, by giving ten (10) days’ notice as hereinafter specified to terminate this Agreement in its sole discretion at any time after the date of this Agreement.  Any such termination shall be without liability of any party to any other party except that the provisions of Section 8, Section 10, Section 11, Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.

(d)This Agreement shall remain in full force and effect unless terminated pursuant to Sections 12(a), (b), or (c) above or otherwise by mutual agreement of the parties; provided, however, that any such termination by mutual agreement shall in all cases be deemed to provide that Section 8, Section 10, Section 11, Section 17 and Section 18 shall remain in full force and effect.

(e)Any termination of this Agreement shall be effective on the date specified in such notice of termination; provided, however, that such termination shall not be effective until the close of business on the date of receipt of such notice by the Agent or the Company, as the case may be.  If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such Placement Shares shall settle in accordance with the provisions of this Agreement.

13.Notices.  All notices or other communications required or permitted to be given by any party to any other party pursuant to the terms of this Agreement shall be in writing, unless otherwise specified, and if sent to the Agent, shall be delivered to: 

Cantor Fitzgerald & Co. 

499 Park Avenue

New York, NY 10022

Attention:Capital Markets/Jeffrey Lumby

Facsimile:(212) 307-3730

 

and:

 

Cantor Fitzgerald & Co. 

499 Park Avenue

New York, NY 10022

Attention:General Counsel

Facsimile:(212) 829-4708

 

with a copy to:

 

Latham & Watkins LLP

12670 High Bluff Drive

San Diego, CA 92130

Attention:Cheston J. Larson, Esq.

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Facsimile:(858) 523-5450

 

and if to the Company, shall be delivered to:

 

Spring Bank Pharmaceuticals, Inc.

86 South Street

Hopkinton, MA 01748

Attention:Martin Driscoll

 

with a copy to:

 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

One Financial Center

Boston, MA 02111

Attention:Megan Gates, Esq.

Facsimile: 617-542-2241

 

Each party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose.  Each such notice or other communication shall be deemed given (i) when delivered personally on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized overnight courier (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid) and (iv) by Electronic Notice (defined below) as set forth in the following paragraph.  

An electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this Section 13 if sent to the electronic mail address specified by the receiving party under separate cover.  Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party.  Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”) which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

14.Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the Company and the Agent and their respective successors and the parties referred to in Section 10 hereof.  References to any of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.  Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party; provided, however, that the Agent may assign its rights and obligations hereunder to an affiliate thereof which is a registered broker-dealer without obtaining the Company’s consent.

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15.Adjustments for Stock Splits.  The parties acknowledge and agree that all share-related numbers contained in this Agreement shall be adjusted to take into account any stock split, stock dividend or similar event effected with respect to the Placement Shares.

16.Entire Agreement; Amendment; Severability; Waiver.  This Agreement (including all schedules and exhibits attached hereto and Placement Notices issued pursuant hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof.  Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Agent.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected in this Agreement. No implied waiver by a party shall arise in the absence of a waiver in writing signed by such party. No failure or delay in exercising any right, power, or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power, or privilege hereunder.

17.GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.  EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

18.CONSENT TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION CONTEMPLATED HEREBY, 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 BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER.  EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF.  NOTHING 

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CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.

19.Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery of an executed Agreement by one party to the other may be made by facsimile or electronic transmission.

20.Construction.  The section and exhibit headings herein are for convenience only and shall not affect the construction hereof. References herein to any law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority shall be deemed to refer to such law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority as amended, reenacted, supplemented or superseded in whole or in part and in effect from time to time and also to all rules and regulations promulgated thereunder. 

21.Permitted Free Writing Prospectuses.  The Company represents, warrants and agrees that, unless it obtains the prior written consent of the Agent (which consent will not be unreasonably withheld or delayed), and the Agent represents, warrants and agrees that, unless it obtains the prior written consent of the Company, it has not made and will not make any offer relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be filed with the Commission.  Any such free writing prospectus consented to by the Agent or by the Company, as the case may be, is hereinafter referred to as a “Permitted Free Writing Prospectus.”  The Company represents and warrants that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely filing with the Commission where required, legending and record keeping.  For the purposes of clarity, the parties hereto agree that all free writing prospectuses, if any, listed in Exhibit 21 hereto are Permitted Free Writing Prospectuses.

22.Absence of Fiduciary Relationship.  The Company acknowledges and agrees that:

(a)the Agent is acting solely as agent in connection with the public offering of the Placement Shares and in connection with each transaction contemplated by this Agreement and the process leading to such transactions, and no fiduciary or advisory relationship between the Company or any of its respective affiliates, stockholders (or other equity holders), creditors or employees or any other party, on the one hand, and the Agent, on the other hand, has been or will be created in respect of any of the transactions contemplated by this Agreement, irrespective of whether or not the Agent has advised or is advising the Company on other matters, and the Agent has no obligation to the Company with respect to the transactions contemplated by this Agreement except the obligations expressly set forth in this Agreement; 

(b)it is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated by this Agreement;

(c)neither the Agent nor its affiliates have provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement and it has 

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consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;

(d)it is aware that the Agent and its affiliates are engaged in a broad range of transactions which may involve interests that differ from those of the Company and the Agent and its affiliates have no obligation to disclose such interests and transactions to the Company by virtue of any fiduciary, advisory or agency relationship or otherwise; and

(e)it waives, to the fullest extent permitted by law, any claims it may have against the Agent or its affiliates for breach of fiduciary duty or alleged breach of fiduciary duty in connection with the sale of Placement Shares under this Agreement and agrees that the Agent and its affiliates shall not have any liability (whether direct or indirect, in contract, tort or otherwise) to it in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on its behalf or in right of it or the Company, employees or creditors of Company.

23.Representations and Covenants of the Agent.  The Agent represents and warrants that it is duly registered as a broker-dealer under FINRA, the Exchange Act and the applicable statutes and regulations of each state in which the Placement Shares will be offered and sold, except such states in which the Agent is exempt from registration or such registration is not otherwise required during the term of this Agreement. The Agent will comply in all material respects with all applicable law and regulations, including the Exchange Rules, in connection with the Placement Shares.

24.Definitions.  As used in this Agreement, the following terms have the respective meanings set forth below:

“Applicable Time” means (i) each Representation Date, (ii) the time of each sale of any Placement Shares pursuant to this Agreement and (iii) each Settlement Date.

 “Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433, relating to the Placement Shares that (1) is required to be filed with the Commission by the Company, (2) is a “road show” that is a “written communication” within the meaning of Rule 433(d)(8)(i) whether or not required to be filed with the Commission, or (3) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Placement Shares or of the offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the Securities Act Regulations. 

 “Rule 164,” “Rule 172,” “Rule 405,” “Rule 415,” “Rule 424,” “Rule 424(b),” “Rule 430B,” and “Rule 433” refer to such rules under the Securities Act Regulations.

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

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All references in this Agreement to the Registration Statement, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing Prospectus (other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission) shall be deemed to include the copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to “supplements” to the Prospectus shall include, without limitation, any supplements, “wrappers” or similar materials prepared in connection with any offering, sale or private placement of any Placement Shares by the Agent outside of the United States.

[Signature Page Follows]

 

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If the foregoing correctly sets forth the understanding between the Company and the Agent, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Company and the Agent.

Very truly yours,

		
	
SPRING BANK PHARMACEUTICALS, INC. 

 

 

	
 

	
By:
	
/s/ Jonathan Freve

	
 
	
Name:Jonathan Freve

	
 
	
Title:Chief Financial Officer

 

ACCEPTED as of the date first-above written:

 

		
	
CANTOR FITZGERALD & CO.

 

 

	
 

	
By:
	
/s/ Jeffrey Lumby

	
 
	
Name:Jeffrey Lumby

	
 
	
Title:Senior Managing Director

 

 

 

 

 

SCHEDULE 1

 

__________________________

Form of Placement Notice

__________________________

 

	
From: 
	
Spring Bank Pharmaceuticals, Inc.

	
To:
	
Cantor Fitzgerald & Co.

	
Attention:
	
Jeffrey Lumby

 

	
Subject: 
	
Placement Notice

	
Date:
	
[ ● ], 201[ ● ]

Ladies and Gentlemen:

Pursuant to the terms and subject to the conditions contained in the Sales Agreement between Spring Bank Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Cantor Fitzgerald & Co. (“Agent”), dated [ ● ], 2017, the Company hereby requests that the Agent sell up to $[ ● ] of the Company’s common stock, par value $0.0001 per share, at a minimum market price of $[ ● ] per share, during the time period beginning [month, day, time] and ending [month, day, time]. 

 

 

 

 

 

 

SCHEDULE 2

 

__________________________

Compensation

__________________________

 

The Company shall pay to the Agent in cash, upon each sale of Placement Shares pursuant to this Agreement, an amount equal to 3.0% of the aggregate gross proceeds from each sale of Placement Shares.

 

 

 

 

 

 

SCHEDULE 3

 

__________________________

Notice Parties

__________________________

 

The Company

Martin Driscoll (mdriscoll@springbankpharm.com)

Jonathan Freve (jfreve@springbankpharm.com)

Garrett Winslow (gwinslow@springbankpharm.com)

With copies (which shall not constitute notice) to:

Megan Gates (mgates@mintz.com)

The Agent

Jeffrey Lumby (jlumby@cantor.com)

Joshua Feldman (jfeldman@cantor.com)

Sameer Vasudev (svasudev@cantor.com) 

With copies to:

 

CFControlledEquityOffering@cantor.com

 

 

 

SCHEDULE 4

 

__________________________

Subsidiaries

__________________________

Incorporated by reference to Exhibit 21 of the Company’s most recently filed Form 10-K.

 

 

Form of Representation Date Certificate Pursuant to Section 7(l)

The undersigned, the duly qualified and elected [ ● ], of Spring Bank Pharmaceuticals, Inc., a Delaware corporation (the “Company”), does hereby certify in such capacity and on behalf of the Company, pursuant to Section 7(l) of the Sales Agreement, dated [ ● ], 2017 (the “Sales Agreement”), between the Company and Cantor Fitzgerald & Co., that to the best of the knowledge of the undersigned:

(i) The representations and warranties of the Company in Section 6 of the Sales Agreement  (A) to the extent such representations and warranties are subject to qualifications and exceptions contained therein relating to materiality or Material Adverse Effect, are true and correct on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof, except for those representations and warranties that speak solely as of a specific date and which were true and correct as of such date, and (B) to the extent such representations and warranties are not subject to any qualifications or exceptions, are true and correct in all material respects on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof, except for those representations and warranties that speak solely as of a specific date and which were true and correct in all material respects as of such date; provided, however, that such representations and warranties also shall be qualified by the disclosure included or incorporated by reference in the Registration Statement and Prospectus; and 

(ii) The Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied pursuant to the Sales Agreement at or prior to the date hereof. 

 

Capitalized terms used herein without definition shall have the meanings given to such terms in the Sales Agreement.

 

	
	
 

 

Spring Bank Pharmaceuticals, Inc.

 

	
By:  

	
Name:  

	
Title:  

 

Date: [ ● ]

 

 

Permitted Free Writing Prospectus

None.

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