Document:

Exhibit 4.7

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT
TO (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933,
AS AMENDED, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE HOLDER OR
THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. ANY TRANSFEREE OF THESE SECURITIES
SHOULD CAREFULLY REVIEW THE TERMS HEREIN. THE NUMBER OF SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE LESS
THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 1(a) OF THIS WARRANT.

 

ICAGEN, INC.

 

Warrant To Purchase Common
Stock

 

Warrant No.: ICGI-2019-003

 

Issuance Date: August 27, 2019
(“Issuance Date”)

 

Icagen, Inc.,
a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Perceptive Credit Holdings II, LP, the registered holder hereof or his, her or
its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the
Company, at the Exercise Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Common Stock (including
any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at
any time or times on or after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below),
Five Hundred Ninety Nine Thousand Nine Hundred Ninety One (599,991) (subject to adjustment as provided herein) fully paid
and non-assessable shares of Common Stock (as defined below) (the “Warrant Shares). Except as otherwise defined herein,
capitalized terms in this Warrant shall have the meanings set forth in Section 17. This Warrant was issued pursuant to Section
13 of that certain Forbearance Agreement and First Amendment to Credit Agreement and Guaranty (the “Forbearance Agreement”),
dated as of August 27, 2019 (the “Subscription Date”), by and among the Company, Icagen-T, Inc., the Subsidiary
Guarantors party thereto, each financial institution from time to time party thereto as lender (each, a “Lender”
and collectively, the “Lenders”), and the Holder, as administrative agent.

 

     

     

    

 

1.
EXERCISE OF WARRANT.

 

(a) Mechanics
of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section
1(f)), this Warrant may be exercised by the Holder on any day on or after the Issuance Date (an “Exercise Date”),
in whole or in part, by delivery (whether via facsimile or otherwise) of a written notice, in the form attached hereto as Exhibit
A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. Within one (1) Trading
Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the
Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so
exercised (the “Aggregate Exercise Price”) in cash, check or via wire transfer of immediately available funds
if the Holder did not notify the Company in such Exercise Notice that such exercise was made pursuant to a Cashless Exercise (as
defined in Section 1(d)). The Holder shall not be required to deliver the original of this Warrant in order to effect an
exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have
the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase
the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares
shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with
the terms hereof. On or before the first (1st) Trading Day following the date on which the Company has received an Exercise Notice,
the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of such Exercise
Notice, in the form attached hereto as Exhibit B, to the Holder and the Company’s transfer agent (the “Transfer
Agent”), which confirmation shall constitute an instruction to the Transfer Agent to process such Exercise Notice in
accordance with the terms herein. On or before the third (3rd) Trading Day following the date
on which the Company has received such Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable
law, rule or regulation for the settlement of a trade of such Warrant Shares initiated on the applicable Exercise Date), (the “Share
Delivery Deadline”), the Company shall; provided that the Aggregate Exercise Price has been delivered in the time period
set forth above, unless the Aggregate Exercise Price is paid through a Cashless Exercise (X) provided that the Transfer Agent is
participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, credit such
aggregate number of shares of Common Stock to which the Holder’s or its designee’s balance account with DTC through
its Deposit/Withdrawal at Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program, upon the request of the Holder, issue and deliver (via reputable overnight courier) to the address as specified
in the Exercise Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common
Stock to which the Holder shall be entitled pursuant to such exercise. Upon delivery of an Exercise Notice, the Holder shall be
deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant
has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of
delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with
any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise
is greater than the number of Warrant Shares being acquired upon an exercise and upon surrender of this Warrant to the Company
by the Holder, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than three (3)
Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance
with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such
exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares
of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued
shall be rounded up to the nearest whole number. The Company shall pay any and all transfer, stamp, issuance and similar taxes,
costs and expenses (including, without limitation, fees and expenses of the Transfer Agent) that may be payable with respect to
the issuance and delivery of Warrant Shares upon exercise of this Warrant.

 

(b) Exercise
Price. For purposes of this Warrant, “Exercise Price” means $3.50, subject to adjustment as provided herein.

 

(c) Company’s
Failure to Timely Deliver Securities. If the Company is a Trading Issuer and fails on or prior to the Share Delivery Deadline
to issue and deliver to the Holder (or its designee) a certificate and register such shares of Common Stock on the Company’s
share register or, credit the balance account of the Holder or the Holder’s designee with DTC for the number of shares of
Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be pursuant to this Section
1(c) and/or pursuant to the Company’s obligation pursuant to clause (ii) below) and if on or after such Share Delivery
Deadline the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of
a sale by the Holder of all or any portion of the number of shares of Common Stock issuable upon such exercise that the Holder
anticipated receiving from the Company (a “Buy-In”), then, in addition to all other remedies available to the
Holder, the Company shall, within three (3) Business Days after the Holder’s request and in the Holder’s discretion,
either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions
and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including, without limitation, by any other
Person in respect, or on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s obligation
to so issue and deliver such certificate (and to issue such shares of Common Stock) or credit the balance account of such Holder
or such Holder’s designee, as applicable, with DTC for the number of Warrant Shares to which the Holder is entitled upon
the Holder’s exercise hereunder (as the case may be) (and to issue such Warrant Shares) shall terminate, or (ii) promptly
honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such Warrant Shares or credit
the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of Warrant Shares to
which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) and pay cash to the Holder in an amount
equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Warrant Shares multiplied by (B) the lowest
Closing Sale Price or Closing Bid Price (as the case may be) of the Common Stock on any Trading Day during the period commencing
on the date of the applicable Exercise Notice and ending on the date of such issuance and payment under this clause (ii) (the “Buy-In
Payment Amount”). Nothing shall limit the Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing shares of Common Stock (or to electronically deliver such shares
of Common Stock) upon the exercise of this Warrant as required pursuant to the terms hereof.

 

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(d) Cashless
Exercise. If the Company is a Trading Issuer and at the applicable time an effective registration statement is not available
for the issuance of Warrant Shares and notwithstanding anything contained herein to the contrary (other than Section 1(f)
below), the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment
otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to
receive upon such exercise the “Net Number” of Warrant Shares determined according to the following formula
(a “Cashless Exercise”):

 

Net Number = (A x B) - (A x C)

   D

 

For purposes of the foregoing formula:

 

A= the total number of shares
with respect to which this Warrant is then being exercised.

 

B = the lowest Closing Bid Price
or Closing Sale Price (as the case may be) during the ten (10) consecutive Trading Days ending at the close of business on the
Principal Market immediately prior to the time of exercise as set forth in the applicable Exercise Notice.

 

C = the Exercise Price then in
effect for the applicable Warrant Shares at the time of such exercise.

 

D = as applicable: the Closing
Sale Price or Closing Bid Price (as the case may be) of the Common Stock on the Trading Day immediately preceding the date of the
applicable Exercise Notice.

 

For purposes
of Rule 144(d) promulgated under the Securities Act, as in effect on the Subscription Date, it is intended that the Warrant Shares
issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares
shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Forbearance Agreement.

 

(e) Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares
to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are
not disputed and resolve such dispute in accordance with Section 13.

 

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(f) Limitations
on Exercises. The Company shall not effect the exercise of any portion of this Warrant, and the Holder shall not have the right
to exercise any portion of this Warrant, pursuant to the terms and conditions of this Warrant and any such exercise shall be null
and void and treated as if never made, to the extent that after giving effect to such exercise, the Holder together with the other
Attribution Parties collectively would beneficially own in excess of 9.99% (the “Maximum Percentage”) of the
shares of Common Stock outstanding immediately after giving effect to such exercise, such determination by the Company to be based
solely upon the Reported Outstanding Share Number (as defined below) and the number of shares disclosed to the Company by Holder
as being beneficially owned by the Holder and the other Attribution Parties. For purposes of the foregoing sentence, the aggregate
number of shares of Common Stock beneficially owned by the Holder and the other Attribution Parties shall include the number of
shares of Common Stock held by the Holder and all other Attribution Parties plus the number of shares of Common Stock issuable
upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares
of Common Stock which would be issuable upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned
by the Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or unconverted portion
of any other securities of the Company (including, without limitation, any convertible notes or convertible preferred stock or
warrants, including, without limitation, the Warrant) beneficially owned by the Holder or any other Attribution Party subject to
a limitation on conversion or exercise analogous to the limitation contained in this Section 1(f)(i). For purposes of this
Section 1(f)(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes
of determining the number of outstanding shares of Common Stock the Holder may acquire upon the exercise of this Warrant without
exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public
filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written notice by
the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock outstanding (the “Reported
Outstanding Share Number”). If the Company receives an Exercise Notice from the Holder at a time when the actual number
of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder
in writing of the number of shares of Common Stock then outstanding and, to the extent that such Exercise Notice would otherwise
cause the Holder’s beneficial ownership, as determined pursuant to this Section 1(f)(i), to exceed the Maximum Percentage,
the Holder must notify the Company of a reduced number of Warrant Shares to be acquired pursuant to such Exercise Notice (the number
of shares by which such purchase is reduced, the “Reduction Shares”) and (ii) as soon as reasonably practicable,
the Company shall return to the Holder any exercise price paid by the Holder for the Reduction Shares. For any reason at any time,
upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or
by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was
reported. In the event that the issuance of shares of Common Stock to the Holder upon exercise of this Warrant results in the Holder
and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number
of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which
the Holder’s and the other Attribution Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the
“Excess Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall
not have the power to vote or to transfer the Excess Shares. As soon as reasonably practicable after the issuance of the Excess
Shares has been deemed null and void, the Company shall return to the Holder the exercise price paid by the Holder for the Excess
Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase (with such increase not effective
until the sixty-first (61st) day after delivery of such notice) or decrease the Maximum Percentage to any other percentage not
in excess of 9.99% as specified in such notice; provided that any such increase in the Maximum Percentage will not be effective
until the sixty-first (61st) day after such notice is delivered to the Company. For purposes of clarity, the shares of Common Stock
issuable pursuant to the terms of this Warrant in excess of the Maximum Percentage shall not be deemed to be beneficially owned
by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to
exercise this Warrant pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph
with respect to any subsequent determination of exercisability. The provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 1(f)(i) to the extent necessary to correct
this paragraph or any portion of this paragraph which may be defective or inconsistent with the intended beneficial ownership limitation
contained in this Section 1(f)(i) or to make changes or supplements necessary or desirable to properly give effect to such
limitation. The limitation contained in this paragraph may not be waived and shall apply to a successor holder of this Warrant.

 

(g)
Reservation of Shares.

 

(i) Required
Reserve Amount. Commencing on the Closing Date and continuing as long as this Warrant remains outstanding, the Company shall
at all times keep reserved for issuance under this Warrant at least 100% of the maximum number of shares of Common Stock as shall
from time to time be necessary to satisfy the Company’s obligation to issue shares of Common Stock under this Warrant (without
regard to any limitations on exercise and assuming for purposes of this Section 1(g) that the Holder does not exercise any
portion of this Warrant on a Cashless Exercise basis and in any event does not exercise this Warrant until the last calendar date
prior to the Expiration Date) (the “Required Reserve Amount”); provided that at no time shall the number of
shares of Common Stock reserved pursuant to this Section 1(g)(i) be reduced.

 

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(ii) Insufficient
Authorized Shares. If, notwithstanding Section 1(g)(i) above, and not in limitation thereof, at any time while this
Warrants remains outstanding, the Company does not have a sufficient number of authorized and unreserved shares of Common Stock
to satisfy its obligation to reserve the Required Reserve Amount (an “Authorized Share Failure”), then the Company
shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient
to allow the Company to reserve the Required Reserve Amount for this Warrant. Without limiting the generality of the foregoing
sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than ninety
(90) days after the occurrence of such Authorized Share Failure, the Company shall either (i) hold a meeting of its stockholders
for the approval of an increase in the number of authorized shares of Common Stock, or (ii) have cured the Authorized Share Failure
by, among other required items, obtaining a written consent of the required percentage of holders of shares Common Stock for the
required increase in authorized shares and had taken any and all other such action necessary to rectify the Authorized Share Failure
including, but not limited to, providing the non-consenting stockholders with an information statement and a Form 14(C) and filed
with the SEC such Form 14(C). In connection with such meeting as set forth in (i) above, the Company shall provide each stockholder
with a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized
shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal. In
the event that the Company is prohibited from issuing shares of Common Stock upon an exercise of this Warrant due to the failure
by the Company to have sufficient shares of Common Stock available out of the authorized but unissued shares of Common Stock (such
unavailable number of shares of Common Stock, the “Authorization Failure Shares”), in lieu of delivering such
Authorization Failure Shares to the Holder, the Company shall pay cash in exchange for the cancellation of such portion of this
Warrant exercisable into such Authorized Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorization
Failure Shares and (y) the greatest Closing Sale Price or Closing Bid Price (as the case may be) of the Common Stock on any Trading
Day during the period commencing on the date the Holder delivers the applicable Exercise Notice with respect to such Authorization
Failure Shares to the Company and ending on the date of such issuance and payment under this Section 1(g) (or the Exercise
Price if the Company is not then a Trading Issuer); and (ii) to the extent the Holder purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Authorization Failure Shares, any Buy-In
Payment Amount, brokerage commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith.
Nothing contained in this Section 1(g) shall limit any obligations of the Company under any provision of the Forbearance
Agreement.

 

2. ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES; RESET OF EXERCISE PRICE. The Exercise Price and number of Warrant Shares issuable
upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

(a) Stock
Dividends and Splits. Without limiting any provision of Section 2(b) or Section 4, if the Company, at any time
on or after the Subscription Date, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock
or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by
any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock
into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its
then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and
of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment
made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph
shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment
under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise
Price shall be adjusted appropriately to reflect such event.

 

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(b)
Adjustment Upon Issuance of Shares of Common Stock Prior to the Closing Date of a Qualifying PO. In addition to and not
in limitation of any other rights of the Holder under this Warrant including, but not limited to, Section 2 hereof and/or
any other Loan Document, if, at any time this Warrant is outstanding and whenever on or after the Subscription Date but prior
to the closing date of a Qualifying PO (as defined in the Company’s Certificate of Designation of Powers, Preferences and
Rights of Series C Convertible Redeemable Preferred Stock), the Company, in any manner sells or grants any option to purchase,
issues or sells or grants any right to reprice, and/or otherwise sells, disposes of and/or issues any shares of Common Stock or
Common Stock Equivalents (as defined below) (including upon conversion, exercise or otherwise) entitling any Person to acquire
shares of Common Stock at a price per share of Common Stock that is lower than the then Exercise Price (such lower price, the
“New Issuance Price” and each such issuance, a “Dilutive Issuance” and collectively, “Dilutive
Issuances”), (if the holder of shares of Common Stock or Common Stock Equivalents so issued and/or any holder of Common
Stock and/or Common Stock Equivalents as of the Subscription Date or issued subsequent thereto, shall at any time, whether by
amendment, supplement, operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices
or otherwise be entitled under the terms of any such instruments to receive shares of Common Stock at a price per share that is
lower than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such date of
the Dilutive Issuance), then the then Exercise Price shall be reduced to equal the New Issuance Price. For purposes of clarification,
if the Company issues, sells and/or otherwise disposes of any shares of Common Stock at a price less than the then Exercise Price,
the then Exercise Price shall immediately be reduced to the New Issuance Price on the date of such Dilutive Issuance. All adjustments
provided for in this Section 2(b) shall be made whenever any such Common Stock or Common Stock Equivalents are issued.
Notwithstanding anything to the contrary in the foregoing, if a Dilutive Issuance consists of the issuance and/or sale of both
Common Stock and Common Stock Equivalents or two or more Common Stock Equivalents as units (each, a “Share and/or a CSE
Issuance”), in determining the value of the component parts of the unit issued and/or sold in a Share and/or a CSE Issuance
no value will be attributed to Common Stock Equivalents and the New Issuance Price as a result thereof will be the lowest of (i)
the lowest purchase price per unit, (ii) the lowest conversion, exercise and/or exchange price to acquire one (1) share of Common
Stock of any Common Stock Equivalent included in a unit if a unit also includes shares of Common Stock, and (iii) if no shares
of Common Stock are included in a unit, the lowest exercise, conversion and/or exchange price to acquire one (1) share of Common
Stock of the Common Stock Equivalents comprising a unit, such lowest price of (i)-(iii) shall be the “Lowest Price;”
provided, however, a Dilutive Issuance and a resulting New Issuance Price relating to a Share and/or a CSE Issuance
shall only occur if the Lowest Price relating to a Share and/or a CSE Issuance is lower than the then Exercise Price. Notwithstanding
the foregoing, no adjustment will be made under this Section 2(b) in respect of an Exempt Issuance (as defined in the Company’s
Certificate of Designation of Powers, Preferences and Rights of Series C Convertible Redeemable Preferred Stock). The Company
shall notify the Holder in writing, no later than the first Trading Day following the issuance of any Common Stock or Common Stock
Equivalents subject to this Section 2(b), indicating therein the applicable Lowest Price, issuance price, reset price,
exchange price, conversion price and Exercise Price and other pricing terms (such notice, the “Dilutive Issuance Notice”).
For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice upon the occurrence of any Dilutive
Issuance, the Holder is entitled to receive a number of shares of Common Stock based upon the New Issuance Price on or after the
date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the New Issuance Price in any Exercise Notice.
For purposes hereof, the term “Common Stock Equivalents” means any securities (as defined under the Securities
Act) including, but not limited to, any Options and/or Convertible Securities of the Company, the Company and/or any subsidiary
of the Company (a “Subsidiary”) which would entitle the Holder thereof to acquire at any time shares of Common Stock,
including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible
into or exercisable or exchangeable for, or otherwise entitles the Holder thereof to receive, shares of Company Common Stock.
If the Company and/or any Subsidiary enters into a Variable Rate Transaction, the Company shall be deemed to have issued shares
of Common Stock or Common Stock Equivalents at the lowest possible price at which such securities may be converted, exchanged
and/or exercised under the terms of such Variable Rate Transaction.

 

(c) Calculations.
All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100th of a share, as
applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for
the account of the Company, and the disposition of any such shares shall be considered an issuance or sale of Common Stock.

 

(d) Voluntary
Adjustment By Company. The Company may at any time during the term of this Warrant, with the prior written consent of the Holders,
reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of
the Company.

 

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(e) Certain
Reset Right Upon a Qualifying PO. If on or after the Subscription Date, the Company consummates a Qualifying PO, and on the
closing date of such Qualifying PO, the then Exercise Price in effect on such date is greater than the Qualifying PO Per Share
Sale Price (as defined below), then the Exercise Price shall automatically and without any action by the Company or otherwise,
be reset to the Qualifying PO Per Share Sale Price. A “Qualifying PO Per Share Sale Price” shall be as
applicable (i) the gross purchase price a share of Common Stock is sold to the public in the Qualifying PO if only shares of Common
Stock are sold to the public in such Qualifying PO, (ii) the gross purchase price a unit consisting of shares of Common Stock and
Common Stock Equivalents is sold to the public in the Qualifying PO, or (iii) the sum equal to the gross purchase price of (a)
one (1) share of Common Stock, and (b) a Common Stock Equivalent if such are sold to each purchaser in a Qualifying PO but not
in a unit.

 

3. RIGHTS
UPON DISTRIBUTION OF ASSETS. In addition to any adjustments provided for elsewhere in this Warrant including, but not limited
to, pursuant to Section 2 above, if the Company shall declare or make any dividend or other distribution of its assets (or
rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property, options, evidence of indebtedness or any other assets
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately before the date
on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the participation in such Distribution (provided, however, that to the extent
that the Holder’s right to participate in any such Distribution would result in the Holder and the other Attribution Parties
exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (and
shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial ownership)
to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time or
times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage,
at which time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such initial Distribution
or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no such limitation).

 

4.
PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a) Purchase
Rights. In addition to any adjustments provided for elsewhere in this Warrant including, but not limited to, pursuant to Section
2 above, if at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock,
warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”),
then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights , the aggregate Purchase Rights
which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise
of this Warrant (without regard to any limitations or restrictions on exercise of this Warrant, including without limitation, the
Maximum Percentage) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights,
or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the
grant, issuance or sale of such Purchase Rights (provided, however, that to the extent that the Holder’s right
to participate in any such Purchase Right would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage,
then the Holder shall not be entitled to participate in such Purchase Right to such extent (and shall not be entitled to beneficial
ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to such extent) and such
Purchase Right to such extent shall be held in abeyance for the benefit of the Holder until such time or times, if ever, as its
right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time
or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase Right
or on any subsequent Purchase Right held similarly in abeyance) to the same extent as if there had been no such limitation).

 

    7

     

    

 

(b) Fundamental
Transactions. Subject to the rights of (i) the Company or a Successor Entity (as the case may be) to redeem this Warrant
pursuant to Section 4(c)(i), and (ii) the Holder to require the redemption of this Warrant by the Company or the
Successor Entity (as the case may be) pursuant to Section 4(c)(ii), the Company shall not enter into or be party to a
Fundamental Transaction unless (i) the Successor Entity assumes in writing all of the obligations of the Company under this
Warrant and the other documents entered into between the Holder, the Company and its subsidiaries in accordance with the
provisions of this Section 4(b) pursuant to written agreements in form and substance satisfactory to the Holder and
approved by the Holder prior to such Fundamental Transaction, including agreements to deliver to the Holder in
exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form
and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of
capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without
regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price
which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the
shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such
adjustments to the number of shares of capital stock and such exercise price being for the purpose of protecting the economic
value of this Warrant immediately prior to the consummation of such Fundamental Transaction); and (ii) the Successor Entity
is a publicly traded corporation whose shares of common stock are quoted or listed on an Eligible Market. Upon the closing on
the closing date of a Fundamental Transaction (an “FT Closing Date”), and subject to the rights of (A) the
Company or a Successor Entity (as the case may be) to redeem this Warrant pursuant to Section 4(c)(i), and (B) the
Company or the Successor Entity (as the case may be) to redeem this Warrant pursuant to a demand of the Holder pursuant to Section
4(c)(ii), the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the
applicable Fundamental Transaction, the provisions of this Warrant and the other Loan Documents referring to the
“Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and
shall assume all of the obligations of the Company under this Warrant and the other Loan Documents with the same effect as if
such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, unless there
is a redemption under 4(c)(i) or 4(c)(ii), the Successor Entity shall deliver to the Holder confirmation that there shall be
issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in lieu of
the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections
3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant prior to
the applicable Fundamental Transaction, such shares of publicly traded common stock (or its equivalent) of the Successor
Entity which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had
this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on
the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. In addition to and not in
substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which
holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for
shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision to insure that
the Holder will thereafter have the right to receive upon any full or partial (as proportionately determined) exercise of
this Warrant at any time (i) prior to the FT Closing Date, and/or (ii) at any time following a FT Closing Date if no
redemption occurred on the FT Closing Date unless there is a redemption under Section 4(c)(i) or Section
4(c)(ii) but prior to the Expiration Date, in lieu of the shares of the Common Stock (or other securities, cash, assets
or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be
receivable thereafter) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock,
securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which
the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant
been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise
of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory
to the Holder; provided, however, notwithstanding anything to the contrary or elsewhere, if the Company or the
Successor Entity, elects to redeem this Warrant pursuant to Section 4(c)(i) and complies with such related provisions
and if on the FT Closing Date this Warrant or any portion of this Warrant is outstanding, the Company shall have the right to
redeem this Warrant as provided in Section 4(c)(i) below.

 

    8

     

    

 

(c)
Redemption of Warrant in Certain Events.

 

(i) Company/Successor
Entity Fundamental Redemption Right. Subject to the rights of the Holder pursuant to Section 4(c)(ii) and notwithstanding
anything to the contrary provided in Section 4(b) above, the Company or any Successor Entity (as the case may be) shall
have the right on a FT Closing Date to redeem this Warrant provided the Company or the Successor Entity (as the case may be) provides
to the Holder written notice of such election pursuant to Section 8 hereof, and paying to the Holder in full, in cash on
the FT Closing Date the Black Scholes Value or the Event of Default Black Scholes Value (if on the FT Closing Date an Event of
Default (as defined in the Credit Agreement) has occurred and is continuing), the “Warrant Redemption Price”,
in accordance with and pursuant to this Section 4(c)(i), and on such FT Closing Date the Company or the Successor
Entity (as the case may be) shall also provide written notice to the Holder of the payment of the Warrant Redemption Price, the
amount thereof and the calculations as to how such Warrant Redemption Price was determined (including whether such was the Black
Scholes Value or the Event of Default Black Scholes Value). Notwithstanding that the Company or the Successor Entity (as the case
may be) has delivered notice of election to redeem this Warrant pursuant to this Section 4(c)(i) the Holder may nevertheless
exercise this Warrant in whole or in part at any time and from time to time through and including the last Trading Day prior to
the FT Closing Date. If the Warrant Redemption Price is not received by the Holder in full, in cash (by wire transfer or bank check)
by 11:59 p.m. (New York City time) by the first (1st) Trading Day following the FT Closing
Date, the right of the Company or the Successor Entity (as the case may be) shall terminate with respect to that Fundamental Change
as shall all future redemption rights of the Company (including to have a Successor Entity do the same) to elect to redeem this
Warrant pursuant to Section 4(c)(i) or otherwise and the Holder shall have the same rights set forth in Section 4(b)
it would have had but for the election of the Company pursuant to this Section 4(c)(i). The agreement governing the Fundamental
Transaction shall make provision for redemption of the Warrant by the Company or the Successor Entity and also for if the Company
or the Successor Entity (as the case may be) elects to redeem this Warrant pursuant to Section 4(c)(i) but fails to timely
honor all of their respective obligations pursuant to Section 4(c)(i).

 

(ii) Mandatory
Fundamental Transaction Redemption at the Request of the Holder. Notwithstanding the provisions of Sections 4(b) and/or
4(c)(i), at the request of the Holder delivered at any time commencing on the earliest to occur of (x) the public disclosure
of any Fundamental Transaction, (y) the consummation of any Fundamental Transaction and (z) the Holder first becoming aware of
any Fundamental Transaction through the date that is thirty (30) days after the public disclosure of the consummation of such Fundamental
Transaction by the Company pursuant to a Current Report on Form 8-K filed with the SEC, the Company or the Successor Entity (as
the case may be) shall purchase this Warrant from the Holder on the date of such request by paying to the Holder cash an amount
equal to the Black Scholes Value (or the Event of Default Black Scholes Value if on the date of the required redemption payment
to the Holder, an Event of Default exists). Notwithstanding anything to the contrary contained herein, if the FT Closing Date occurs
prior to the foregoing thirty (30) day time period, the Company or Successor Entity (as the case may be) may pay the Warrant Redemption
Price on the FT Closing Date and thereafter, if all the redemption procedures required herein including Section 8 are followed
and the Warrant is redeemed in full, this Warrant shall terminate.

 

(iii) Event
of Default Redemption. Notwithstanding Section 4(c)(i) and (ii) and Section 4(b) above, at the request of the
Holder delivered at any time after the occurrence of an Event of Default (as defined in the Credit Agreement and regardless of
if the Term Loans are no longer outstanding), the Company or the Successor Entity (as the case may be) shall purchase this Warrant
from the Holder on the date of such request by paying to the Holder cash in an amount equal to the Event of Default Black Scholes
Value.

 

(d) Application.
The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate
Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to
any limitations on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit of the Maximum
Percentage, applied however with respect to shares of capital stock registered under the 1934 Act and thereafter receivable upon
exercise of this Warrant (or any other warrant)).

 

5. NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or
through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issuance or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect
the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of
any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, and (b) shall
take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid
and non-assessable shares of Common Stock upon the exercise of this Warrant. Notwithstanding anything herein to the contrary, if
after the sixty (60) calendar day anniversary of the Issuance Date, the Holder is not permitted to exercise this Warrant in full
for any reason (other than pursuant to restrictions set forth in Section 1(f) hereof), the Company shall use its best efforts
to promptly remedy such failure, including, without limitation, obtaining such consents or approvals as necessary to permit such
exercise into shares of Common Stock.

 

    9

     

    

 

6. WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a
holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company
for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as
the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to
any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance
or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the
Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained
in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors
of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and
other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

7.
REISSUANCE OF WARRANTS.

 

(a) Transfer
of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered
as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and,
if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance
with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b) Lost,
Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall
suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to
the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the
Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to
purchase the Warrant Shares then underlying this Warrant.

 

(c) Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase
the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such
portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no
warrants for fractional shares of Common Stock shall be given.

 

(d) Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date,
and (iv) shall have the same rights and conditions as this Warrant.

 

    10

     

    

 

8. NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with Section 14.02 of the Credit Agreement. The Company shall provide the Holder with prompt written notice of all actions
taken pursuant to this Warrant (other than the issuance of shares of Common Stock upon exercise in accordance with the terms hereof),
including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing,
the Company will give written notice to the Holder (for purposes of clauses (ii) and (iii) below, disclosure in a press release
or filing with the SEC shall be deemed to satisfy the notice obligation)(i) immediately upon each adjustment of the Exercise Price
and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s), (ii)
at least ten (10) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend
or distribution upon the shares of Common Stock or (B) for determining rights to vote with respect to any Fundamental Transaction,
dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction
with such notice being provided to the Holder, (iii) at least ten (10) Trading Days prior to an FT Closing Date, and (iv) within
one (1) Business Day of the occurrence of an Event of Default (as defined in the Credit Agreement), setting forth in reasonable
detail any material events with respect to such Event of Default and any efforts by the Company to cure such Event of Default.
To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company
or any of its Subsidiaries, the Company shall simultaneously file such notice with the Securities and Exchange Commission pursuant
to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder in each
Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

 

9. AMENDMENT
AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant (other than Section 1(f)) may be amended
and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if
the Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by
an authorized representative of the waiving party.

 

10. SEVERABILITY.
If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

11. GOVERNING
LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York. The Company 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 to the Company at the address set forth on the signature pages to the Credit Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. The Company 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 herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.
Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against
the Company in any other jurisdiction to collect on the Company’s obligations to the Holder, to realize on any collateral
or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

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12. CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against
any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the Credit Agreement shall have the meanings
ascribed to such terms in such Credit Agreement unless otherwise consented to in writing by the Holder.

 

13.
DISPUTE RESOLUTION.

 

(a)
Submission to Dispute Resolution.

 

(i) In
the case of a dispute relating to the Exercise Price, the Closing Sale Price, the Closing Bid Price, the Lowest Price, the Black
Scholes Value, the Event of Default Black Scholes Value or fair market value or the arithmetic calculation of the number of Warrant
Shares (as the case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the
Company or the Holder (as the case may be) shall submit the dispute to the other party via facsimile (A)if by the Company,
within two (2) Business Days after the occurrence of the circumstances giving rise to such dispute or (B) if by the Holder, at
any time after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to
promptly resolve such dispute relating to such Exercise Price, such Closing Sale Price, such Closing Bid Price, such Lowest Price,
such Black Scholes Value, such Event of Default Black Scholes Value or such fair market value or such arithmetic calculation of
the number of Warrant Shares (as the case may be), at any time after the second (2nd) Business Day following such initial notice
by the Company or the Holder (as the case may be) of such dispute to the Company or the Holder (as the case may be), then the Holder
may, at its sole option, select an independent, reputable investment bank to resolve such dispute.

 

(ii)
The Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so
delivered in accordance with the first sentence of this Section 13 and (B)written documentation supporting its
position with respect to such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day
immediately following the date on which the Holder selected such investment bank (the “Dispute Submission
Deadline”) (the documents referred to in the immediately preceding clauses (A) and (B) are collectively referred to
herein as the “Required Dispute Documentation”) (it being understood and agreed that if either the Holder
or the Company fails to so deliver all of the Required Dispute Documentation by the Dispute Submission Deadline, then the
party who fails to so submit all of the Required Dispute Documentation shall no longer be entitled to (and hereby waives its
right to) deliver or submit any written documentation or other support to such investment bank with respect to such dispute
and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation that was delivered to
such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by both the Company and
the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled to deliver or
submit any written documentation or other support to such investment bank in connection with such dispute (other than the
Required Dispute Documentation).

 

(iii) The
Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and
the Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline. The fees
and expenses of such investment bank shall be borne solely by the Company, and such investment bank’s resolution of such
dispute shall be final and binding upon all parties absent manifest error.

 

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(b) Miscellaneous.
The Company expressly acknowledges and agrees that (i) this Section 13 constitutes an agreement to arbitrate between
the Company and the Holder (and constitutes an arbitration agreement) under the rules then in effect under §7501, et
seq. of the New York Civil Practice Law and Rules (“CPLR”) and that the Holder is authorized to apply for
an order to compel arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section 13,
(ii) a dispute relating to the Exercise Price includes, without limitation, disputes as to (A) whether an issuance or sale or
deemed issuance or sale of Common Stock occurred under Section 2(b), (B) the consideration per share at which
an issuance or deemed issuance of Common Stock occurred, (C) whether any issuance or sale or deemed issuance or sale of
Common Stock was an issuance or sale or deemed issuance or sale of Excluded Securities, (D) whether an agreement, instrument,
security or the like constitutes and Option or Convertible Security and (E) whether a Dilutive Issuance occurred, (iii) the
terms of this Warrant and each other applicable Transaction Document shall serve as the basis for the selected investment
bank’s resolution of the applicable dispute, such investment bank shall be entitled (and is hereby expressly
authorized) to make all findings, determinations and the like that such investment bank determines are required to be made by
such investment bank in connection with its resolution of such dispute (including, without limitation, determining (A)
whether an issuance or sale or deemed issuance or sale of Common Stock occurred under Section 2(b), (B) the
consideration per share at which an issuance or deemed issuance of Common Stock occurred, (C) whether any issuance or sale or
deemed issuance or sale of Common Stock was an issuance or sale or deemed issuance or sale of Excluded Securities, (D)
whether an agreement, instrument, security or the like constitutes and Option or Convertible Security and (E) whether a
Dilutive Issuance occurred) and in resolving such dispute such investment bank shall apply such findings, determinations and
the like to the terms of this Warrant and any other applicable Loan Documents, (iv) the Holder (and only the Holder), in its
sole discretion, shall have the right to submit any dispute described in this Section 13 to any state or federal court
sitting in The City of New York, Borough of Manhattan in lieu of utilizing the procedures set forth in this Section 13
and (v) nothing in this Section 13 shall limit the Holder from obtaining any injunctive relief or other equitable
remedies (including, without limitation, with respect to any matters described in this Section 13).

 

14. REMEDIES,
CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant and the other Loan Documents, at law or in equity (including
a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue
actual and consequential damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants
to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts
set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts
to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company
(or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable
harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the
event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available
remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other
security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder
to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Warrant (including, without
limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby
upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs
in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer
involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

 

15. PAYMENT
OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Warrant is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the holder otherwise takes action to collect amounts due under this
Warrant or to enforce the provisions of this Warrant or (b) there occurs any bankruptcy, reorganization, receivership of the company
or other proceedings affecting company creditors’ rights and involving a claim under this Warrant, then the Company shall
pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements.

 

16. TRANSFER.
This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

 

17. CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

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

 

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

 

(c) “Affiliate”
or “affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is
controlled by, or is under common control with, such Person, it being understood for purposes of this definition that “control”
of a Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the
election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by
contract or otherwise.

 

(d) “Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder
or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any
of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be aggregated
with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose
of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

(e)
“Black Scholes Value” means the value of the unexercised portion of this Warrant remaining on the date of
the Holder’s applicable request pursuant to Section 4(c)(ii) or the Company’s or the Successor
Entity’s election (as the case may be) pursuant to Section 4(c)(i), as a result of a Fundamental Transaction,
which value is calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on
Bloomberg utilizing (i) an underlying price per share equal to the greater of (1) the highest Closing Sale Price or Closing
Bid Price (as the case may be) of the Common Stock during the period beginning on the Trading Day immediately preceding the
announcement of the applicable Fundamental Transaction (or the consummation of the applicable Fundamental Transaction, if
earlier) and ending on the Trading Day of the Holder’s request pursuant to Section 4(c)(ii) or the
Company’s or the Successor Entity’s election (as the case may be) pursuant to Section 4(c)(i), and (2) as
a result of a Fundamental Transaction, the sum of the price per share being offered in cash in the applicable Fundamental
Transaction (if any) plus the value of the non-cash consideration being offered in the applicable Fundamental Transaction (if
any), (ii) a strike price equal to the Exercise Price in effect on the date of the Holder’s request pursuant to Section
4(c)(ii) or the Company’s or the Successor Entity’s election (as the case may be) pursuant to Section
4(c)(i) as a result of a Fundamental Transaction, (iii) a risk-free interest rate corresponding to the U.S. Treasury rate
for a period equal to the greater of (1) the remaining term of this Warrant as of the date of the aforementioned request
pursuant to either Section 4(c)(i) or Section 4(c)(ii) as a result of a Fundamental Transaction and (2) the
remaining term of this Warrant as of the date of consummation of the applicable Fundamental Transaction or as of the date of
the aforementioned request pursuant to either Section 4(c)(i) or Section 4(c)(ii) as a result of a Fundamental
Transaction if such request is prior to the date of the consummation of the applicable Fundamental Transaction, (iv) a zero
cost of borrow and (v) an expected volatility equal to the greater of 100% and the 30 day volatility obtained from the
“HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day
immediately following the earliest to occur of (A) the public disclosure of the applicable Fundamental Transaction, (B) the
consummation of the applicable Fundamental Transaction and (C) the date on which the Holder first became aware of the
applicable Fundamental Transaction.

 

(f)
“Bloomberg” means Bloomberg, L.P.

 

(g) “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

    14

     

    

 

(h) “Closing
Bid Price” or “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as
the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00 p.m., New York time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid
price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such
security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as
reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the
Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price
or the Closing Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually determined
by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then
such dispute shall be resolved in accordance with the procedures in Section 24. All such determinations shall be appropriately
adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during such
period.

 

(i) “Common
Stock” means (i) the Company’s shares of common stock, $0.001 par value per share, and (ii) any capital stock into
which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(j) “Convertible
Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly
or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any
shares of Common Stock.

 

(k) “Credit
Agreement” means that certain Credit Agreement and Guaranty, dated as of August 31, 2018, by and among the Company, certain
of the Company’s’ subsidiaries from time to time parties hereto, the Lenders and the Holder, as administrative agent.

 

(l) “Eligible
Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Select Market,
the Nasdaq Global Market or the Principal Market.

 

(m) “Event
of Default Black Scholes Value” means the value of the unexercised portion of this Warrant remaining on the date of the
Holder’s request pursuant to Section 4(c)(ii) as a result of an Event of Default, which value is calculated using
the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg utilizing (i) an underlying price
per share equal to the highest Closing Sale Price or Closing Bid Price (as the case may be) of the Common Stock during the period
beginning on the date of the occurrence of the Event of Default through the date all Events of Default have been cured or, if earlier,
the Trading Day of the Holder’s request pursuant to Section 4(c)(ii) as a result of an Event of Default, (ii) a strike
price equal to the Exercise Price in effect on the date of the Holder’s request pursuant to Section 4(c)(ii) as a
result of an Event of Default, (iii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the
greater of (1) the remaining term of this Warrant as of the date of the Holder’s request pursuant to Section 4(c)(ii)
as a result of an Event of Default and (2) the remaining term of this Warrant as of the date of the occurrence of such Event of
Default, (iv) a zero cost of borrow and (v) an expected volatility equal to the greater of 100% and the 30 day volatility obtained
from the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately
following later of (x) the date of the occurrence of such Event of Default and (y) the date of the public announcement of such
Event of Default.

 

(n) “Expiration
Date” means the date that is the seventh (7th) anniversary of the Issuance Date or, if such date falls on a day other
than a Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next
date that is not a Holiday.

 

    15

     

    

 

(o) “Fundamental
Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related
transactions (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation)
any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its
respective properties or assets to any other Person, or (3) allow any other Person to make a purchase, tender or exchange offer
that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares
of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making
or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other
Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including
any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated
with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (ii) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations
promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange
Act of 1934, as amended), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding
Voting Stock of the Company. Notwithstanding the above, a Fundamental Transaction shall not be deemed to occur as a result of a
reincorporation merger of the Company provided other than the place of incorporation of the Company no other material changes occur
to the Company, as a result of such reincorporation merger.

 

(p) “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(q) “Option
Value” means (I) if the Company is a Trading Issuer, the value of the applicable Option or Convertible Security (as the
case may be) using the Black Scholes Option Pricing model obtained from the “OV” function on Bloomberg determined as
of the date of issuance of the Option or Convertible Security (as the case may be) utilizing (i) an underlying price per share
equal to the Closing Bid Price or Closing Sale Price (as the case may be) of the Common Stock on the Trading Day immediately preceding
the public announcement of the execution of definitive documents with respect to the issuance of such Option or Convertible Security
(as the case may be), (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining
term of such Option or Convertible Security (as the case may be) as of the date of issuance of such Option or Convertible Security
(as the case may be), (iii) a zero cost of borrow and (iv) an expected volatility equal to the greater of 100% and the 100 day
volatility obtained from the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as of
the Trading Day immediately following the date of issuance of such Option or Convertible Security (as the case may be)., or (II)
if the Company is not a Trading Issuer (or the value of an Option cannot be determined pursuant to (I)), of this definition of
“Option Value,” the value of an Option or Convertible Security (as the case may be) shall be determined pursuant to
Section 24.

 

(r) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

(s) “Principal
Market” means as of a particular date, the Eligible Market on such date that the Common Stock is principally traded or
quoted on.

 

(t)
“SEC” means the United States Securities and Exchange Commission or the successor thereto.

 

(u) “Successor
Entity” means the Person formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so
elected by the Holder with which such Fundamental Transaction shall have been entered into.

 

(v) “Trading
Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock,
any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market
for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded,
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange
or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on
such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange
or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated as a Trading Day
in writing by the Holder or (y) with respect to all determinations other than price determinations relating to the Common Stock,
any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

(w) “Trading
Issuer” means the Company at such time as the Common Stock is then traded or quoted on an Eligible Market.

 

    16

     

    

 

(x) “Variable
Rate Transaction” means “a transaction in which the Company (i) issues or sells any debt or equity securities that
are convertible into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either
(A) at a conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices
of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B)
with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of
such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business
of the Company or the market for the Common Stock or (ii) enters into, or effects a transaction under, any agreement, including,
but not limited to, an equity line of credit, an at-the-market offering (as defined in SEC Rule 415) or a similarly structured
transaction, whereby the Company may issue securities at a future determined price.

 

(y) “Voting
Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have
the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers, trustees
or other similar governing body of such Person (irrespective of whether or not at the time capital stock of any other class or
classes shall have or might have voting power by reason of the happening of any contingency).

 

[Signature page follows]

 

    17

     

    

 

IN WITNESS
WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	
        ICAGEN, INC.

	 	 	 
	 	By:	/s/ Richard Cunningham
	 	Name: 	Richard Cunningham
	 	Title:	Chief Executive Officer

 

    18

     

    

 

EXHIBIT
A

 

EXERCISE
NOTICE

 

TO BE EXECUTED BY THE REGISTERED
HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

ICAGEN, INC.

 

The undersigned
holder hereby exercises the right to purchase                                 
of the shares of Common Stock (“Warrant Shares”) of Icagen, Inc., a Delaware corporation (the “Company”),
evidenced by Warrant to Purchase Common Stock No.                        
(the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant.

 

1.
Form of Exercise Price. The Holder intends that payment of the Aggregate Exercise Price shall be made as:

 

	 	 	 	 	a “Cash Exercise” with respect to                                   Warrant Shares; and/or
	 
	 	 	 	 
	 	 	 	 
	 	 	 	 	a “Cashless Exercise” with respect to                                   Warrant Shares.
	 

 

In the event
that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto,
the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder at                                  
[a.m.][p.m.] on the date set forth below and (ii) if applicable, the Closing Sale Price or Closing Bid Price as of such time of
execution of this Exercise Notice was $                          .

 

☐
If this Exercise Notice is being delivered after the Alternate Exercise Eligibility Date, check here if Holder is electing to
use the following Alternate Exercise Price in this exercise: 
                          .

 

2. Payment
of Exercise Price. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares
to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $                                  
to the Company in accordance with the terms of the Warrant.

 

3. Delivery
of Warrant Shares. The Company shall deliver to Holder, or its designee or agent as specified below,                                  
Warrant Shares in accordance with the terms of the Warrant. Delivery shall be made to Holder, or
for its benefit, as follows:

 

☐
Check here if requesting delivery as a certificate to the following name and to the following address:

 

	 	Issue to:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    19

     

    

 

☐
Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	 	
        DTC

        Participant:
	 
	 	 	 
	 	DTC Number:	 
	 	 	 
	 	Account Number:	 

 

	Date:	 	 
	 	 	 
	 	 	 
	Name of Registered Holder	 

 

	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	Tax ID:	 	 
	 	 	 
	Facsimile:	 	 
	 	 	 
	E-mail Address:	 

 

    20

     

    

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company
hereby acknowledges this Exercise Notice and hereby directs                                  
to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated                                  ,
2018, from Icagen, Inc. and acknowledged and agreed to by                                  .

 

	 	ICAGEN, INC.
	 	 	 	 
	 	By:	                       
	 	 	Name:	                                       
	 	 	Title:	 

 

 

21Exhibit 10.1

 

Executed Copy

 

 

  

 

 

 

 

 

 

Asset purchase agreement

 

BY AND BETWEEN

 

ICAGEN, INC.

 

CERTAIN SUBSIDIARIES OF ICAGEN INC.

 

AND

 

ADJACENT ACQUISITION CO., LLC

 

FEBRUARY 11, 2020

 

 

 

 

 

 

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE 1	DEFINITIONS	1
	Section 1.1.	Certain Definitions	1
	Section 1.2.	Certain Other Definitions	11
	 	 	 
	ARTICLE 2	TRANSFER OF ASSETS	12
	Section 2.1.	Transfer of Assets by Seller	12
	Section 2.2.	Excluded Assets	13
	Section 2.3.	Assumption of Liabilities	14
	Section 2.4.	Excluded Liabilities	14
	Section 2.5.	Assignment of Contracts and Rights	16
	Section 2.6.	Closing	16
	Section 2.7.	Closing Deliveries	16
	Section 2.8.	Purchase Price	18
	Section 2.9.	Working Capital Adjustment	19
	Section 2.10.	Escrow Arrangements	21
	Section 2.11.	Purchase Price Allocation	21
	 	 	 
	ARTICLE 3	REPRESENTATIONS AND WARRANTIES OF SELLER	22
	Section 3.1.	Organization and Qualification	22
	Section 3.2.	Authority	22
	Section 3.3.	Consents and Approvals; No Violations	23
	Section 3.4.	Financial Information	23
	Section 3.5.	Absence of Undisclosed Liabilities	24
	Section 3.6.	Assets; Employees	24
	Section 3.7.	Absence of Certain Changes or Events	25
	Section 3.8.	Litigation	25
	Section 3.9.	Compliance with Laws	26
	Section 3.10.	Compliance with Permits	26
	Section 3.11.	Taxes	26
	Section 3.12.	Intellectual Property	27
	Section 3.13.	Brokers	30
	Section 3.14.	Material Contracts; No Defaults	31
	Section 3.15.	Real Property	33
	Section 3.16.	Environmental Matters	33
	Section 3.17.	Labor Matters	34
	Section 3.18.	Employee Benefit Plans	35
	Section 3.19.	Affiliate Transactions	35
	Section 3.20.	Insurance	36
	Section 3.21.	Customers and Suppliers	36
	Section 3.22.	Unlawful Payments	37
	Section 3.23.	Anti-Takeover Laws	37
	Section 3.24.	Information Supplied	37
	Section 3.25.	Disclosure	37
	 	 	 
	ARTICLE 4	REPRESENTATIONS AND WARRANTIES OF BUYER	38
	Section 4.1.	Organization and Qualification	38
	Section 4.2.	Authority	38
	Section 4.3.	Consents and Approvals; No Violations	38

 

    -i-

     

    

 

TABLE OF CONTENTS

(Continued)

  

	 	 	Page
	 	 	 
	Section 4.4.	Litigation	39
	Section 4.5.	Disclosure	39
	Section 4.6.	Brokers	39
	Section 4.7.	Funding	39
	 	 	 
	ARTICLE 5	PRE-CLOSING COVENANTS	39
	Section 5.1.	Conduct of Business	39
	Section 5.2.	Reasonable Best Efforts; Notices and Consents; Proxy Statement	42
	Section 5.3.	Access to Information	43
	Section 5.4.	Notice of Certain Events	43
	Section 5.5.	Exclusive Dealing	44
	Section 5.6.	Employees	46
	Section 5.7.	Termination of Affiliate Agreements	46
	 	 	 
	ARTICLE 6	POST-CLOSING COVENANTS	46
	Section 6.1.	Further Assurances; Additional Agreements	46
	Section 6.2.	General Release	47
	Section 6.3.	Use of Names	48
	Section 6.4.	Payment of Liabilities	48
	Section 6.5.	Non-Competition; Non-Solicitation; Non-Disparagement	49
	Section 6.6.	Post-Closing Confidentiality	50
	Section 6.7.	Tucson Office Equipment	51
	 	 	 
	ARTICLE 7	CONDITIONS TO CLOSING	52
	Section 7.1.	Conditions to Obligations of Buyer	52
	Section 7.2.	Conditions to Obligation of Seller	53
	 	 	 
	ARTICLE 8	SURVIVAL AND INDEMNIFICATION	54
	Section 8.1.	Survival of Representations and Covenants	54
	Section 8.2.	Indemnification by Seller	54
	Section 8.3.	Indemnification by Buyer	55
	Section 8.4.	Limitations	55
	Section 8.5.	No Contribution	57
	Section 8.6.	Defense of Third Party Claims	57
	Section 8.7.	Indemnification Claim Procedure	58
	Section 8.8.	Setoff	60
	Section 8.9.	Exercise of Remedies Other Than by Buyer or Seller	60
	Section 8.10.	Escrow Release	60
	Section 8.11.	Exclusive Remedy	61
	 	 	 
	ARTICLE 9	TAX MATTERS	61
	Section 9.1.	Transfer Taxes	61
	Section 9.2.	Cooperation	61
	 	 	 
	ARTICLE 10	TERMINATION	62
	Section 10.1.	Termination	62
	Section 10.2.	Effect of Termination	63
	 	 	 
	ARTICLE 11	MISCELLANEOUS	64
	Section 11.1.	Publicity	64
	Section 11.2.	Amendment and Waiver	64
	Section 11.3.	Entire Agreement; Third Party Beneficiaries	64
	Section 11.4.	Assignment; Binding Effect; No Third-Party Rights	65

 

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TABLE OF CONTENTS

(Continued)

 

	 	 	Page
	 	 	 
	Section 11.5.	Specific Performance and Other Remedies	65
	Section 11.6.	Severability	65
	Section 11.7.	Notices	66
	Section 11.8.	Governing Law	66
	Section 11.9.	Submission to Jurisdiction	67
	Section 11.10.	Construction	67
	Section 11.11.	“Seller” Joint and Several	68
	Section 11.12.	Expenses	68
	Section 11.13.	Counterparts	68
	Section 11.14.	Waiver of Jury Trial	68
	Section 11.15.	Buyer’s Parent Guaranty	68

 

	Exhibits	 
	 	 
	Exhibit A – Earnout Computation Specifics	A-1
	Exhibit B – Form of Bill of Sale	B-1
	Exhibit C – Form of Assignment and Assumption Agreement	C-1
	Exhibit D – Form of IP Assignment Agreement	D-1
	Exhibit E – Form of Transition Services Agreement	E-1
	Exhibit F – Form of Escrow Agreement	F-1

 

    -iii-

     

    

 

ASSET PURCHASE
AGREEMENT

 

This ASSET PURCHASE
AGREEMENT (this “Agreement”), dated as of February 11, 2020, is made and entered into by and between Icagen,
Inc. (“Parent”), a Delaware corporation, Icagen Corp., a Nevada corporation, XRPro Sciences, Inc., a Delaware
corporation, and Caldera Discovery, Inc., a Delaware corporation, (each, a “Subsidiary”, and the Subsidiaries,
together with Parent, collectively referred to as “Seller”), and Adjacent Acquisition Co., LLC a Delaware limited
liability company (“Buyer”).

 

RECITALS

 

WHEREAS, Seller
is engaged in the business of drug discovery and providing services as a contract research organization, primarily using its ion
channel platform, including its X-ray fluorescence technology referred to as XRpro, operated from Seller’s Durham, North
Carolina location (the “Business”);

 

WHEREAS, Seller desires
to sell to Buyer, and Buyer desires to purchase from Seller, all of Seller’s right, title and interest in and to the Transferred
Assets (as hereinafter defined), and Buyer desires to assume from Seller, all of the Assumed Liabilities (as hereinafter defined),
all upon the terms and subject to the conditions set forth herein; and

 

WHEREAS, the boards
of directors of Parent and each Subsidiary have recommended this Agreement for adoption and approval by their respective stockholders;

 

WHEREAS, on or prior
to the date hereof, Buyer has entered into voting and support agreements with certain stockholders of Parent; and

 

WHEREAS, each of Seller
and Buyer desire to make certain representations, warranties, covenants and agreements in connection with the transactions contemplated
by this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the foregoing and the representations, warranties, covenants and agreements set forth herein, Seller and Buyer,
intending to be legally bound, hereby agree as follows:

 

ARTICLE 1

DEFINITIONS

 

Section 1.1. Certain
Definitions. As used in this Agreement, the following terms have the following meanings:

 

“Accounting Firm” means BDO LLP
or a similar firm of national reputation.

 

“Acquisition
Proposal” means any inquiry, proposal, or offer from any Person (other than Buyer or any of its Affiliates) relating
to the direct or indirect disposition, whether by sale, lease, exclusive license, merger or otherwise, of (a) all or more than
20% of the capital stock, warrants or other ownership interests in Seller (or any individual entity forming Seller), (b) all or
any portion of the Business or the Transferred Assets, or (c) 20% or more of the book value of the assets of Seller taken as a
whole, in each case of clauses (b) and (c), other than the disposition of assets in the Ordinary Course of Business.

 

     

     

    

 

“Affiliate”
means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with the first-mentioned Person. For purposes of this definition, “control”
(including the terms “controls,” “controlled by” and “under common control with”), when used
with respect to any specified Person, means the power to direct or cause the direction of the management and policies of such
Person, directly or indirectly, whether through ownership of voting securities, by contract or otherwise. For the avoidance of
doubt, Perceptive Credit Holdings II, LP (and its Affiliates) (“Perceptive”) shall not be deemed to be an Affiliate
of the Seller.

 

“Ancillary
Agreements” means the Bill of Sale, the Assignment and Assumption Agreement, the IP Assignment Agreement, the Escrow
Agreement, the Transition Services Agreement and the Employment Offer Letters.

 

“Available
Cash” means all cash and cash equivalents held by Seller with respect to the Business (including marketable securities
and short-term investments), in each case measured at the Closing and determined in accordance with GAAP.

 

“Base Consideration” means $15,000,000.

 

“ Books
and Records” means all records, documents, lists, notes and files, including executed originals (or copies of executed
originals when executed originals are not available) of all Tax Returns, Contracts, purchase orders, sales orders, price lists,
lists of accounts, customers, suppliers, employees, contractors, consultants and other personnel, laboratory reports, shipping
records, all product, business and marketing plans, service manuals, sales and product brochures and catalogs and other sales
literature and materials, and historical sales data and all books, ledgers, files, financial statements and other financial and
accounting records (and related work papers and correspondence from accountants), minute books, data bases, computer files, programs
and retrieved programs, access rights for off premises software, environmental studies and plans and business records, whether
in hard copy, electronic form or otherwise.

 

“Business
Consultant” means each individual retained by Seller or any Affiliate of Seller as an independent contractor or consultant
to the Business.

 

“Business
Data ” means all data and personal information accessed, processed, collected, stored or disseminated by Seller in connection
with any of the Business and/or the Transferred Assets, including any Personally Identifiable Information.

 

“Business
Day” means any day other than Saturday, Sunday or any other day on which banks in Los Angeles, California are required
or permitted to be closed.

 

“Business
Employee” means each individual employed by Seller or any Affiliate of Seller who devotes substantially all of his or
her time to the Business.

 

“Buyer Indemnitees”
means Buyer and its Affiliates and its and their respective Representatives, successors and assigns.

 

“Change of
Control Payments” means any amounts (including severance, termination, “golden parachute,” Tax gross-up,
transaction bonus or other similar payments) which become payable as a result of, based upon or in connection with the consummation
of the transactions contemplated by this Agreement (either alone or in connection with any other event, whether contingent or
otherwise) and which are owing to any current or former employees, officers, directors, consultants, independent contractors or
equity holders of Seller pursuant to employment agreements, Contracts or other arrangements, including Seller’s share of
Taxes payable with respect to all such amounts.

 

    2

     

    

 

“Closing
Consideration” means the Base Consideration minus the amount of any Estimated Working Capital Decrease (or plus
the amount of any Estimated Working Capital Increase).

 

“Closing Net Working Capital”
means the Net Working Capital as of the Closing.

 

“Code” means the Internal Revenue
Code of 1986, as amended.

 

“Confidentiality
Agreement” means the confidentiality agreement dated [●], 2019 between Seller and Ligand Pharmaceuticals Incorporated.

 

“Consent”
means any approval, consent, ratification, permission, waiver, Order, Permit or authorization.

 

“Contract”
means any written or oral contract, lease, license, deed, mortgage, indenture, sales order, accepted purchase order, note or other
legally binding agreement, instrument, arrangement, promise, obligation, understanding, undertaking or commitment, whether express
or implied.

 

“Current
Assets ” means all current assets of the Business, determined in accordance with GAAP; provided, however,
that “Current Assets” shall not include Available Cash.

 

“Current
Liabilities” means all current liabilities of the Business, determined in accordance with GAAP; provided, however,
that “Current Liabilities” shall not include any amounts included within Indebtedness, Change of Control Payments,
Hired Employee Obligations or Transaction Expenses.

 

“Damages”
includes any loss, damage, injury, Liability, claim, demand, settlement, judgment, award, fine, penalty, Tax, fee (including reasonable
attorneys’ fees), charge, cost (including costs of investigation) or expense of any nature.

 

“Domain Name
Registrar” means any entity that manages, registers or performs similar or related functions related to the use, reservation
or ownership of domain names.

 

“Earnout”
means the agreement of Buyer to pay future consideration of up to $25,000,000 upon fulfillment of certain conditions, computed
as set forth in Exhibit A attached hereto.

 

“Effect” has the meaning set forth
within the definition of Material Adverse Effect.

 

“Employee
Plan” means each: (a) “employee benefit plan,” as defined in Section 3(3) of ERISA; and (b) all other pension,
retirement, supplemental retirement, deferred compensation, excess benefit, profit sharing, bonus, incentive, stock purchase,
stock ownership, stock option, stock appreciation right, phantom equity or other equity-based compensation, employment, severance,
salary continuation, termination, change-of-control, health, life, disability, group insurance, vacation, holiday and fringe benefit
plan, program, contract, or arrangement maintained, contributed to, or required to be contributed to, by Seller, any Affiliate
of Seller or any ERISA Affiliate thereof for the benefit of any current or former employee, director, officer or independent contractor
of Seller or any Affiliate of Seller or under which Seller, any Affiliate of Seller or any ERISA Affiliate thereof has any Liability.

 

    3

     

    

 

“Estimated
Working Capital Decrease ” means the amount, if any, by which the Target Net Working Capital exceeds the Estimated Closing
Net Working Capital.

 

“Estimated
Working Capital Increase” means the amount, if any, by which the Estimated Closing Net Working Capital exceeds the Target
Net Working Capital.

 

“Environment”
means the indoor and outdoor environment and all media, including ambient air, surface water, groundwater, land surface or subsurface
strata, and natural resources.

 

“Environmental
Law” means any Law or other legal requirement pertaining to pollution, protection of health, safety or the Environment
or exposure of Persons to Hazardous Materials, including the Clean Air Act, as amended, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, the Federal Water Pollution Control Act, as amended, the Resource Conservation
and Recovery Act of 1976, as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the
Oil Pollution Act of 1990, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Hazardous Materials Transportation
Act, as amended, the Emergency Planning and Community Right to Know Act, as amended, the Safe Drinking Water Act, as amended,
the Occupational Safety and Health Act, as amended, and any foreign, state or local Laws analogous to any of the foregoing, as
amended, together with all judicial interpretations thereof.

 

“Environmental
Liabilities” means: (a) any fines, penalties or Liabilities arising out of or related to any violations of, or non-compliance
with, Environmental Laws or Environmental Permits applicable to the Business or any Transferred Asset, including any costs associated
with correcting any such violations or non-compliance, in each case first arising or occurring, whether known or unknown, at or
prior to the Closing; (b) any fines, penalties or Liabilities attributable to violations of, or non-compliance with, Environmental
Laws or Environmental Permits that occur or arise after the Closing, to the extent that such fines, penalties or Liabilities,
or any portion thereof, are attributed to the period prior to the Closing; (c) Liabilities relating to, or resulting or arising
from, the off-site transportation, storage, treatment, recycling of Hazardous Materials generated by, or on behalf of Seller in
connection with the Business or any Transferred Asset prior to the Closing, including claims related to loss of life, injury to
persons or property or remediation; and (d) any Liability or costs arising from or related to any Environmental Release, threatened
Environmental Release, or exposure of any Person to any Hazardous Material, in each case first arising or occurring, whether known
or unknown, at or prior to the Closing at any location attributable or related to the Business or the Transferred Assets.

 

“Environmental
Permit” means any Permit required, issued, held or obtained pursuant to any Environmental Law or pertaining to any Hazardous
Material.

 

“Environmental
Release” means any spilling, leaking, pumping, emitting, emptying, discharging, injecting, escaping, leaching, migrating,
dumping, or disposing of Hazardous Materials into the Environment, including the abandonment or discarding of any containers.

 

“ERISA” means the Employee Retirement
Income Security Act of 1974, as amended.

 

“ERISA
Affiliate” means any corporation or trade or business (whether or not incorporated) which is treated with Seller or
an Affiliate of Seller as a single employer within the meaning of Section 414 of the Code.

 

“Escrow Account”
means the escrow account to be established by the Escrow Agent pursuant to the Escrow Agreement.

 

    4

     

    

 

“Escrow Agent” means Citibank
N.A.

 

“Escrow
Amount” means an amount in cash equal to $1,250,000 to be deposited at the Closing in the Escrow Account with the Escrow
Agent pursuant to the terms and conditions of the Escrow Agreement, including any interest accrued or income otherwise earned
thereon.

 

“GAAP”
means generally accepted accounting principles in the United States as in effect from time to time and applied consistently throughout
the periods involved.

 

“Governmental
Entity” means any federal, provincial, state, municipal, local or foreign court or tribunal, administrative or regulatory
body, agency or commission, or any other governmental authority or instrumentality.

 

“Hazardous
Material” means any substance, material, chemical, odor, heat, sound, vibration, radiation, or waste, or any combination
of any of them that is regulated or defined by, or with respect to which Liability or standards of conduct are imposed under,
any Environmental Law, including any material, substance or waste which is defined as a “hazardous waste,” “hazardous
material,” “hazardous substance,” “extremely hazardous waste,” “restricted hazardous waste,”
“contaminant,” “pollutant,” “toxic waste,” or “toxic substance” under any provision
of applicable Environmental Law, and including petroleum, petroleum products and byproducts, asbestos, presumed asbestos-containing-material
or asbestos-containing-material, toxic molds, mycotoxins, urea formaldehyde, radioactive materials and polychlorinated biphenyls.

 

“HIPAA” means the Health Insurance
Portability and Accountability Act of 1996, as amended.

 

“Hired Employee”
means any Business Employee that becomes an employee of Buyer or an Affiliate of Buyer as of the Closing Date.

 

“Hired Employee
Obligations” means all Liabilities with respect to the Hired Employees’ unpaid wages, cash or equity incentive
compensation, accrued paid time off, accrued payroll, accrued unpaid commissions, accrued bonuses, accrued sick leave or vacation,
accrued bereavement time, accrued floating holidays or other similar accrued paid time off, business expense reimbursements, and
related Taxes accrued in the Ordinary Course of Business; provided, however, that “Hired Employee Obligations”
shall not include Change of Control Payments.

 

“Indebtedness”
of any Person means, as of any time and without duplication, the following obligations (whether or not then due and payable):
(a) all obligations (including the principal amount thereof or, if applicable, the accreted amount thereof and the amount of accrued
and unpaid interest thereon) for the repayment of money borrowed, whether owing to banks, financial institutions, on equipment
leases or otherwise; (b) all obligations (including the principal amount thereof or, if applicable, the accreted amount thereof
and the amount of accrued and unpaid interest thereon) evidenced by notes, bonds, debentures or similar instruments (whether or
not convertible); (c) all obligations to pay the deferred purchase price of assets, property or services (including purchase price
adjustments, “holdback” or similar payments, including the deferred purchase price owed to Pfizer, and the maximum
amount of any potential earn-out payments), other than current trade accounts payable incurred in the Ordinary Course of Business;
(d) all obligations to pay rent or other payment amounts under a lease which is required to be classified as a capital lease or
a liability on the face of a balance sheet prepared in accordance with GAAP or conditional sales Contract or similar title retention
instrument; (e) all negative balances in bank accounts and all overdrafts; (f) all obligations under any interest rate swap agreement,
forward rate agreement, interest rate cap or collar agreement, or other financial agreement or arrangement entered
into for the purpose of limiting or managing interest rate risks; (g) all obligations relative to the maximum amount of any
letter of credit or letter of guaranty (whether drawn or undrawn), bankers’ acceptance or similar instrument issued or
created for the account of such Person; (h) all obligations secured by any Lien (other than Permitted Liens); (i) all
guaranties, sureties, assumptions and other contingent obligations in respect of, or to purchase or to otherwise acquire,
Indebtedness or indebtedness of others; (j) all obligations in respect of prepayment premiums, penalties, breakage costs,
“make whole amounts,” costs, expenses and other payment obligations that would arise if all Indebtedness referred
to in the foregoing clauses (a) through (i) was prepaid (or, in the case of any interest rate swap agreement, forward rate
agreement, interest rate cap or collar agreement, or other financial agreement or arrangement entered into for the purpose of
limiting or managing interest rate risks, unwound and settled) in full at such time; and (k) to the extent any item of
Indebtedness referred to in the foregoing clauses (a) through (i) cannot be repaid at such time (e.g., as a result of
an irrevocable advance notice requirement), all interest on and other accretion of such Indebtedness that occurs between such
time and the earliest time that repayment may occur (e.g., if notice were delivered at such time).

 

    5

     

    

 

“Indemnitees” means the Buyer
Indemnitees or the Seller Indemnitees, as applicable.

 

“Intellectual
Property Rights” shall mean any or all of the following and all rights in, arising out of, or associated therewith:
(i) all United States and foreign patents and utility models and applications therefor and all reissues, divisionals, reexaminations,
renewals, extensions, provisionals, supplementary protection certificates, continuations and continuations in-part thereof, and
equivalent or similar registered rights anywhere in the world (“Patents”); (ii) all trade secrets and other
rights in know-how and confidential or proprietary information, inventions and discoveries, including without limitation invention
disclosures; (iii) all copyrights, works of authorship, copyright registrations and applications therefor and all other rights
corresponding thereto throughout the world (“Copyrights”); (iv) all rights in Uniform Resource Locators, World
Wide Web addresses and domain names and applications and registrations therefor; (v) all trade names, logos, common law trademarks
and service marks, trademark and service mark registrations and applications therefor and all goodwill associated therewith throughout
the world (“Trademarks”); and (vi) any similar, corresponding or equivalent rights to any of the foregoing
anywhere in the world, including, without limitation, moral rights.

 

“IRS” means the United States
Internal Revenue Service.

 

“Knowledge
of Seller ” or “Seller’s Knowledge” or any other similar knowledge qualification, means the
actual knowledge, after reasonable inquiry and investigation, of any officer or director of Seller.

 

“Law”
means any law (including common law), statute, code, ordinance, rule, regulation, Order or charge of any Governmental Entity.

 

“Liabilities”
means all direct or indirect debts, obligations, duties, commitments, responsibilities and liabilities (whether absolute, accrued,
contingent, fixed or otherwise, or whether due or to become due or whether known or unknown, asserted or unasserted, disputed
or undisputed, joint or several, choate or inchoate, liquidated or unliquidated, secured or unsecured, vested or unvested, executory,
determined, determinable or otherwise) of every kind and description, whenever or however arising (including, whether arising
out of contract or tort, based on negligence or strict liability) and whether or not required to be disclosed on a balance sheet
prepared in accordance with GAAP or in the notes thereto.

 

“Licensed
Intellectual Property” means all Intellectual Property licensed to Seller that is used or held for use in connection
with any of the Business and/or the Transferred Asset.

 

    6

     

    

 

“Lien”
means any lien, pledge, mortgage, deed of trust, encumbrance, claim or security interest, hypothecation, deposit, equitable interest,
option, charge, judgment, attachment, right of way, encroachment, easement, servitude, restriction on transfer, restriction on
voting, preferential arrangement or preemptive right, right of first refusal or negotiation or restriction of any kind.

 

“Material
Adverse Effect ” means any change, effect, event, occurrence, development, matter, state of facts, series of events,
or circumstance (any such item, an “Effect”) that, individually or in the aggregate with all other Effects
that occurred prior to the date of determination of the occurrence of an Effect, has, or would reasonably be expected to have
or result in: (a) a material adverse effect on (x) the assets (including intangible assets and rights), properties, liabilities,
business, condition (financial or otherwise), operations, results of operations of Seller or (y) the Business, the Transferred
Assets or the Assumed Liabilities, taken as a whole, or (b) a material adverse effect on Seller’s ability to perform any
of its obligations under this Agreement or to consummate any of the transactions contemplated by this Agreement; provided,
however, that, none of the following shall be deemed, either alone or in combination, to constitute, and none of the following
shall be taken into account in determining whether there has been, or could reasonably be expected to be, a Material Adverse Effect:
(i) any Effect arising out of or relating to (1) United States or global (or any region thereof) (A) economic, credit, financial,
banking or securities market conditions, including prevailing interest rates or currency rates or (B) regulatory or political
conditions, or (2) acts of terrorism or sabotage, the outbreak, escalation or worsening of hostilities (whether or not pursuant
to the declaration of a national emergency or war), man-made disasters, natural disasters (including hurricanes) or acts of god;
(ii) any Effect arising out of or relating to factors, conditions, trends or other circumstances generally affecting any of the
industries or markets in which the Business operates; and (iii) any Effect arising out of or relating to any change in Law, GAAP,
regulatory accounting requirements or interpretations thereof that apply to the Business (including the proposal or adoption of
any new Law, or any change in the interpretation or enforcement of any existing Law), except, in the case of clauses (i), (ii)
and (iii), to the extent that such Effect has a disproportionate adverse effect on the Business, the Transferred Assets or the
Assumed Liabilities, each, taken as a whole, as compared to the adverse impact such Effect has on other Persons operating in the
industries or markets in which the Business is operated, in which case such disproportionate adverse effect may be taken into
account in determining whether there has been, or could reasonably be expected to be, a Material Adverse Effect.

 

“Net Working Capital” means an
amount (which may be a negative or positive number) in U.S. dollars equal to (a) the Current Assets minus (b) the
Current Liabilities.

 

“Order”
means any order, writ, injunction, stipulation, judgment, ruling, assessment, arbitration award, plan or decree.

 

“ Ordinary
Course of Business ” means the ordinary course of business of Seller with respect to the Business and the Transferred
Assets, consistent with past custom and practice (including as to nature, frequency and amount).

 

“Permits”
means all authorizations, licenses, variances, exemptions, orders, permits and approvals granted by or obtained from any Governmental
Entity.

 

    7

     

    

 

“Permitted
Liens” means: (a) Liens of carriers, warehousemen, mechanics, materialmen, and similar Liens arising or incurred in
the Ordinary Course of Business and related to amounts that are not yet delinquent, provided an adequate reserve, determined
in accordance with GAAP, has been established therefor on the Financial Statements; (b) Liens for Taxes or other governmental
charges not yet delinquent or the amount or validity of which is being contested in good faith through appropriate
proceedings, provided an adequate reserve, determined in accordance with GAAP, has been established therefor on the Financial
Statements; (c) pledges or deposits made in the Ordinary Course of Business to secure obligations under workers’
compensation, unemployment insurance, social security or similar programs mandated by applicable legislation; (d) with
respect to real property only, zoning restrictions, building codes and other land use Laws regulating the use or occupancy of
property which are not material in amount or do not, individually or in the aggregate, materially detract from the value of
or materially impair the existing use of the property affected by such Law (to the extent there are no violations of the
same); (e) minor liens that have arisen in the Ordinary Course of Business and do not materially detract from the value of
the Transferred Assets; (f) statutory liens to secure obligations to landlords under leases and landlord liens for demising
costs; and (g) purchase money equipment liens that are not securing Assumed Liabilities.

 

“Person”
shall be construed as broadly as possible and shall include an individual or natural person, a partnership, a corporation, an
association, a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization, any
other business entity and any Governmental Entity.

 

“Personal
Property Lease” means any Contract for Tangible Personal Property leased, subleased, licensed or otherwise conveyed
to or by Seller.

 

“Personally
Identifiable Information” means any specific and unique information relating to an identified or identifiable natural
person (such as name, postal address, email address, telephone number, date of birth, Social Security number (or its equivalent),
driver’s license number, account number, credit or debit card number or identification number).

 

“Proceeding”
means any action, charge, claim, complaint, demand, grievance, arbitration, audit, assessment, hearing, investigation, inquiry,
legal proceeding, administrative enforcement proceeding, litigation, suit or other proceeding (whether civil, criminal, administrative,
judicial or investigative, whether formal or informal, whether public or private) commenced or brought by any Person, or conducted
or heard by or before, or otherwise involving, any court or other Governmental Entity or any arbitrator or arbitration panel.

 

“Proxy Statement”
shall mean the proxy statement filed by Seller with the SEC relating to any required approval by Parent's stockholders of this
Agreement and the transactions contemplated hereby.

 

“Public Official”
means: (a) any director, officer, employee or representative of any regional, federal, state, provincial, county or municipal
government or government department, agency, or other division; (b) any director, officer, employee or representative of any commercial
enterprise that is owned or controlled by a government, including any state-owned or controlled company or organization; (c) any
officer, employee or representative of any public international organization, such as the United Nations or the World Bank; (d)
any person acting in an official capacity for any government or government entity, enterprise, or organization identified above;
and (e) any political party, party official or candidate for political office.

 

“Repaid Indebtedness”
means: (a) the Indebtedness of the Business identified in the Payoff Letters (including Indebtedness to Perceptive) and (b) all
other Indebtedness of the Business that is designated as “Repaid Indebtedness” by Seller and Buyer at least five (5)
Business Days prior to the Closing Date.

 

    8

     

    

 

“Representatives”
means, when used with respect to any Person, such Person’s officers, directors, managers, employees, agents, potential financing
sources, advisors and other representatives (including any investment banker, financial advisor, attorney or accountant retained
by or on behalf of such Person or any of the foregoing).

 

“Required Consents” means the
Consents listed on Schedule 1.1 hereto.

 

“SEC” means the Securities and
Exchange Commission.

 

“Seller Board” or “Parent
Board” means the board of directors of Parent.

 

“Seller Indemnitees”
means Seller and its Affiliates and its and their respective equity holders, Representatives, successors and assigns.

 

“Seller IT
Systems” means all computer systems, programs, networks, hardware, software, software engines, database, operating systems,
websites, website content and links and equipment used to process, store, maintain and operate data, information and functions
owned, used or provided by Seller in the operation of the Business and/or the Transferred Assets.

 

“Specified
Representations” means the representations and warranties set forth in Sections 3.1 (Organization and Qualification),
3.2 (Authority), 3.6 (Assets; Employees), 3.9 (Compliance with Laws); 3.11 (Taxes), 3.12 (Intellectual
Property), 3.13 (Brokers), 3.18 (Employee Benefit Plans), 4.1 (Organization and Qualification), 4.2
(Authority), and 4.4 (Brokers) of this Agreement.

 

“Superior
Proposal” means a bona fide written Acquisition Proposal made by a Person other than Buyer, which is on terms which
the Parent Board in good faith concludes (following consultation with its financial advisors and outside counsel), taking into
account, among other things, all legal, financial, regulatory and other aspects of the proposal and the identity and nature of
the Person making the proposal, (i) would, if consummated, result in a transaction that is more favorable to Parent or Parent’s
stockholders (in their capacities as stockholders), from a financial point of view, than the transactions contemplated by this
Agreement (as the same may be proposed to be amended by Buyer pursuant to Section 5.5(e), (ii) is reasonably likely to
be completed, (iii) for which the Person making the proposal has sufficient financial resources available to it, and (iv) is not
subject to any significant condition or contingency, such as obtaining third party financing, that is not also contained in this
Agreement.

 

“Superior Proposal Notice” is
defined in Section 5.5(d).

 

“Tangible
Personal Property” means all machinery, fixtures, equipment, tools, spare parts, furniture, office equipment, hardware,
supplies, materials, vehicles and other items of tangible personal property of any kind (other than Inventory) owned, leased,
used or held for use by Seller in connection with any of the Business and/or the Transferred Assets.

 

“Target Net Working Capital” means
$0.00.

 

“Taxes”
means: (a) any and all taxes, charges, fees, assessments, levies, unclaimed property and escheat obligations or other assessments,
including all net income, gross income, gross receipts, premium, sales, use, ad valorem, goods and services, net receipts, harmonized
sales, value added, transfer, documentary, franchise, profits, license, withholding, payroll, employment, excise, estimated, severance,
stamp, occupation, property or other taxes, of any kind whatsoever, whether computed on a separate or consolidated, unitary or
combined basis, or in any other manner; (b) any interest, fine, assessment, penalty (including
penalties for failure to file in accordance with applicable information reporting requirements), or addition to the amounts set
forth in clause (a) assessed or levied by any authority, whether federal, state, local, domestic or foreign (whether disputed
or not); and (c) any liability in respect of any of the items described in clauses (a) and (b) payable under a tax sharing, allocation,
indemnity or similar agreement or by reason of successor, transferee, or other liability, by contract, operation of law, or Treasury
Regulation Section 1.1502-6(a) (or any predecessor or successor thereto or any analogous or similar provision of state, local
or foreign Law).

 

    9

     

    

 

“Taxing
Authority” means, with respect to any Tax, the Governmental Entity or political subdivision thereof that imposes such
Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision, including any Governmental
Entity that imposes, or is charged with collecting, social security or similar charges or premiums.

 

“Tax
Return” means any report, return, information return, form, declaration or other document or information filed or required
to be supplied to any authority in connection with Taxes (including any attachment thereto or amendment thereof).

 

“Territory” means worldwide.

 

“Third Party” shall mean any Person
other than Buyer or Seller or their Affiliates.

 

“Transaction
Expenses” means all fees, costs, expenses and other similar obligations of, or amounts incurred or payable by or on
behalf of Seller that have not been paid in full prior to the Closing, in each case in connection with the preparation, negotiation,
execution or performance of this Agreement, the Ancillary Agreements or the consummation of the transactions contemplated hereby
or thereby, including the following: (a) the fees and disbursements of, or other similar amounts charged by, counsel retained
by Seller; (b) the fees and expenses of, or other similar amounts charged by, any accountants, agents, financial advisors, consultants
and experts retained by Seller; and (c) the other out-of-pocket expenses, if any, of Seller.

 

“WARN
Act” means the Worker Adjustment and Retraining Notification Act of 1988, as amended, or any similar state or local
plant closing or mass layoff Law.

 

“Working
Capital Decrease” means the amount, if any, by which the Estimated Closing Net Working Capital exceeds the Closing Net
Working Capital.

 

“Working
Capital Increase” means the amount, if any, by which the Closing Net Working Capital exceeds the Estimated Closing Net
Working Capital.

 

    10

     

    

 

Section
1.2. Certain Other Definitions. The following terms are defined in the respective Sections of this Agreement indicated:
 

 

	Affiliate Agreements 	Section 3.19
	Agreed Amount 	Section 8.7(b)
	Agreement 	Preamble
	Assignment and Assumption Agreement 	Section 2.7(a)(iii)
	Assumed Contracts 	Section 2.1(a)
	Assumed Liabilities 	Section 2.3
	Basket Amount	Section 8.4(a)(i)
	Bill of Sale 	Section 2.7(a)(ii)
	Business	Recitals
	Business Confidential Information	Section 6.6(a)
	Buyer	Preamble
	Buyer Material Adverse Effect	Section 4.1
	Change in Recommendation	Section 5.5(f)
	Claim Dispute Period	Section 8.7(b)
	Claimed Amount	Section 8.7(a)
	Closing	Section 2.6
	Closing Date	Section 2.6
	Competing Confidentiality Agreement	Section 5.5(d)(i)
	Contested Amount	Section 8.7(b)
	Continuing Affiliate Agreements	Section 5.7
	De Minimis Claim Amount	Section 8.4(a)
	Disclosure Schedule	Article 3
	Dispute Notice	Section 2.9(c)(i)
	Dispute Period	Section 2.9(c)(i)
	Employment Offer Letters	Section 2.7(a)(viii)
	Escrow Agreement	Section 2.10(a)
	Escrow Balance	Section 8.10(a)
	Estimated Closing Net Working Capital	Section 2.9(a)
	Estimated Working Capital Statement	Section 2.9(a)
	Excluded Assets	Section 2.2
	Excluded Liabilities	Section 2.4
	FDA	Section 3.9(a)
	Final Actual Net Working Capital	Section 2.9(c)(ii)
	Final Price Allocation	Section 2.11(b)
	Financial Statements	Section 3.4(a)
	Former Superior Proposal	Section 5.5(e)
	General Survival Date	Section 8.1(a)
	Guarantor	Section 11.15
	Indemnitor	Section 8.6(a)
	Insurance Policies	Section 3.20(a)
	Interim Balance Sheet	Section 3.4(a)
	Interim Period	Section 5.1(a)
	Inventory	Section 2.1(b)
	IP Assignment Agreement	Section 2.7(a)(iv)
	Leased Real Property	Section 3.15(b)
	Material Contract	Section 3.14(a)
	Material Customers	Section 3.21(a)
	Material Suppliers	Section 3.21(b)
	Notice of Claim	Section 8.7(a)
	Obligations	Section 11.15
	Outside Date	Section 10.1(b)
	Payoff Amounts	Section 2.8(b)(i)
	Payoff Letters	Section 2.7(a)(vi)
	Pending Claim Amount	Section 8.10(a)
	Potential Acquiror	Section 5.5(d)
	Price Allocation	Section 2.11(a)
	Price Allocation Statement	Section 2.11(b)
	Purchase Price	Section 2.8(a)

 

    11

     

    

 

	Real Property Lease	Section 3.15(b)
	Released Claims	Section 6.2(a)
	Released Parties	Section 6.2(a)
	Releasing Parties	Section 6.2(a)
	Releasing Party	Section 6.2(a)
	Response Notice	Section 8.7(b)
	Restricted Period	Section 6.5(a)
	Rollover Vacation	Section 5.6
	Seller	Preamble
	Seller Board Recommendation	Section 5.2(c)
	Seller Stockholder Approval	Section 5.2(e)
	Seller’s Stockholders’ Meeting	Section 5.2(d)
	Shortfall	Section 6.7(a)
	Stipulated Amount	Section 8.7(e)
	Superior Proposal Notice	Section 5.5(d)
	Third Party Claim	Section 8.6(a)
	Transfer Taxes	Section 9.1
	Transferred Assets	Section 2.1
	Transferred Intellectual Property Rights	Section 2.1(i)
	Transition Services Agreement	Section 2.7(a)(x)
	Unresolved Escrow Claim	Section 8.10(a)
	Working Capital Statement	Section 2.9(b)

 

ARTICLE 2

TRANSFER OF ASSETS

 

Section 2.1. Transfer
of Assets by Seller. Upon the terms and subject to the conditions of this Agreement and in reliance upon the representations,
warranties and agreements herein set forth, at the Closing, Buyer shall purchase from Seller, and Seller shall sell, assign, transfer,
convey and deliver to Buyer, free and clear of all Liens other than Permitted Liens, all of Seller’s right, title and interest
in, to and under all of the properties, rights and assets of every kind and nature, whether real, personal or mixed, tangible
or intangible, wherever located, whether now owned, leased, used or held for use or hereafter owned, leased, used or held for
use (other than the Excluded Assets), which are located at the Durham, North Carolina location of the Seller, (collectively, the
“Transferred Assets”), including the following:

 

(a) 
except for this Agreement, the Ancillary Agreements and the Contracts listed on Section 2.1(a) of the Disclosure Schedule,
all Contracts to which Seller is a party related to the Business or the Transferred Assets (collectively, the “Assumed
Contracts”);

 

(b) 
all inventory and supplies of the Business, including work in process, raw materials, packaging, and all other materials and supplies
to be used or consumed by the Business in the Durham facility (collectively, “Inventory”);

 

(c) 
all Tangible Personal Property, including the equipment listed on Section 2.1(c) of the Disclosure Schedule;

 

 (d)  Leased Real Property in Durham;

 

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(e) 
originals, or where originals are not available copies, of all Books and Records related to the Business and/or the Transferred
Assets;

 

(f) 
all claims, causes of action, rights of recovery, rights of recoupment and rights of set-off of any kind (including rights under
and pursuant to all warranties, representations and guarantees made by suppliers of products, materials or equipment, or components
thereof) of Seller related to the Business and/or the Transferred Assets, including those listed on Section 2.1(f) of the
Disclosure Schedule, but excluding any claims, causes of action, rights of recovery, rights of recoupment and rights of set-off
related solely to any one or more (i) Excluded Assets or (ii) Excluded Liabilities;

 

(g) 
all rights to any Proceedings of any nature available to or being pursued by Seller to the extent related to the Business, the
Transferred Assets or the Assumed Liabilities, whether arising by way of counterclaim or otherwise, excluding any Proceedings
related solely to any one or more (i) Excluded Assets or (ii) Excluded Liabilities;

 

(h) 
all of the intangible rights and property of Seller related to the Business and/or the Transferred Assets, including: (i) all
owned Intellectual Property Rights, (ii) cell lines and plasmid repositories of the Business, and (iii) all goodwill of or pertaining
to the Business and/or the Transferred Assets, but not including Excluded Assets (collectively, the “Transferred Intellectual
Property Rights”);

 

 (i)  the name “Icagen” and related Trademarks;

 

(j) 
all telephone numbers, websites, URLs and e-mail addresses owned, licensed or otherwise used by Seller in connection with, or
otherwise relating to, any of the Business and/or the Transferred Assets;

 

(k) 
all claims under insurance policies covering the Business or the Transferred Assets and all proceeds from claims under such insurance
policies;

 

(l) 
all deposits, prepaid expenses, advance payments and charges paid by Seller or its Affiliates prior to the Closing Date in respect
of the Business or the Transferred Assets, including those listed on Section 2.1(l) of the Disclosure Schedule; and

 

(m) 
to the extent transferable, all Permits, including Environmental Permits, required for the lawful conduct of the Business as currently
conducted or for the ownership and use of the Transferred Assets, and all pending applications therefor or renewals thereof.

 

Section 2.2. Excluded
Assets. Notwithstanding anything herein to the contrary, Seller will retain and will not transfer, convey, assign or deliver
to Buyer, and Buyer will not acquire any right, title or interest in or to any one or more of the following (collectively, the
“Excluded Assets”):

 

 (a)  Available Cash and accounts receivable;

 

(b) 
The assets of Icagen-T located in Tucson, Arizona, as more fully described in Section 2.2(b) of the Disclosure Schedule;

 

 (c)  the equity of Icagen-T owned by Seller;

 

 (d)  all Contracts that are not Assumed Contracts;

 

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(e) 
Seller’s corporate seal, organizational and governing documents, minute books, stock transfer books, and other documents
relating solely to the organization, maintenance and existence of Seller as a corporation;

 

 (f)  Seller’s Tax identification numbers and Tax Returns;

 

(g) 
any rights (including indemnification) and claims and recoveries under any Proceeding of Seller against third parties, solely
to the extent relating to any one or more (i) Excluded Assets or (ii) Excluded Liabilities;

 

(h) 
copies of any personnel records and other business records with respect to the Business that Seller is required by Law to retain
in its possession (with copies of any such records being provided to Buyer at Closing);

 

(i) 
the consideration to be received by Seller, and Seller’s other rights, under this Agreement and the Ancillary Agreements;

 

 (j)  all Employee Plans and assets attributable thereto; and

 

 (k)  those assets listed on Section 2.2(k) of the Disclosure Schedule.

 

Section 2.3. Assumption
of Liabilities. Upon the terms and subject to the conditions of this Agreement and in reliance upon the representations, warranties
and agreements herein set forth, Buyer agrees to assume as of the Closing, and to thereafter perform and discharge only the following
Liabilities of Seller (collectively, the “Assumed Liabilities”):

 

(a) 
all Liabilities arising after the Closing under the Assumed Contracts; provided, however, that Assumed Liabilities
shall not include any Liabilities arising out of any breach, default, misconduct, negligence, failure to comply with any material
applicable Law, or other form of non-compliance by Seller under an Assumed Contract at or prior to the Closing; and

 

 (b)  all Liabilities included in the calculation of Final Actual Net Working Capital;

 

 (c)  other Liabilities detailed on Section 2.3(c) of the Seller Disclosure Schedule; and;

 

 (d)  Rollover Vacation as described in Section 5.6 below.

 

Section 2.4. Excluded
Liabilities. Notwithstanding the provisions of Section 2.3, Buyer does not agree to assume, perform or discharge, indemnify
Seller against, or otherwise have any responsibility for, any Liabilities of Seller other than the Assumed Liabilities, whether
arising prior to, on or after the Closing (which such Liabilities shall be collectively referred to herein as the “Excluded
Liabilities”). Without limiting the generality of the foregoing, Excluded Liabilities shall include:

 

(a) 
except for the Assumed Liabilities, any Liabilities relating to the Business or the Transferred Assets incurred or occurring at
or prior to the Closing, whether currently in existence or arising hereafter;

 

(b) 
except for the Assumed Liabilities, any Liabilities of Seller or any businesses or assets of any Affiliate of Seller;

 

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(c)  any Liability
relating to or arising out of any Excluded Asset, such as the Liabilities of Icagen-T;

 

(d) 
other than Liabilities expressly assumed pursuant to Section 2.3(c), any Liabilities related to, based upon, or in connection
with any current or former officers, directors, employees, consultants or independent contractors of Seller or any Affiliate of
Seller, including: (i) Liabilities with respect to any such Person’s unpaid wages, cash or equity incentive compensation,
paid time off, payroll, unpaid commissions, bonuses, sick leave or vacation, bereavement time, floating holidays or other similar
paid time off, severance, retention, expense reimbursements, unemployment insurance benefits and related penalties, premiums,
and interest arising from any actual or alleged labor and employment claims or wage and hour violations (such as the nonpayment
or untimely payment of any accrued wages or compensation) and Taxes; (ii) Hired Employee Obligations; (iii) Change of Control
Payments; and (iv) Liabilities arising under the WARN Act, ERISA, Employee Plans or applicable Law;

 

(e)  any Liability relating to, based
upon or arising under or in connection with any Employee Plan;

 

 (f)  any Environmental Liabilities incurred prior to Closing;

 

(g) 
any Liabilities in respect of any pending or threatened Proceeding arising out of, relating to or otherwise in respect of the
operation of the Business or the Transferred Assets to the extent such Proceeding relates to such operation at or prior to the
Closing;

 

(h) 
any Liabilities arising out of, in connection with or relating to any violations by Seller or any of its Affiliates of, or the
failure by Seller or any of its Affiliates to comply with, any Law;

 

(i) 
any Indebtedness of Seller and/or the Business other than Assumed Liabilities, with the overdue amounts payable to Nanion treated
as Indebtedness by agreement of the parties;

 

(j) 
except to the extent arising under a Real Property Lease after the Closing, any Liability with respect to real property, whether
owned, leased or otherwise;

 

(k) 
any Liability for: (i) Taxes of Seller or any Affiliate of Seller; (ii) Taxes with respect to the Business or the Transferred
Assets attributable to the period prior to Closing; or (iii) Transfer Taxes;

 

(l) 
except to the extent arising under an Assumed Contract after the Closing, any Liability, whether currently in existence or arising
hereafter, owed by Seller to any of its Affiliates;

 

(m) 
the obligation to pay additional premiums as a result of underpayment of premiums for insurance policies included in the Transferred
Assets, to the extent attributable to any time period ending on or prior to the Closing Date;

 

 (n)  any Transaction Expenses;

 

(o) 
any Liabilities to indemnify, reimburse or advance amounts to any present or former officer, director, employee or agent of Seller
(including with respect to any breach of fiduciary obligations); and

 

(p)  any Liability in respect of any matter
set forth on Section 2.4(p) of the Disclosure Schedule.

 

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Section
2.5. Assignment of Contracts and Rights.

 

(a) 
Nothing in this Agreement shall be construed as an attempt to assign, and Buyer shall not assume any Liabilities with respect
to, any Contract or Permit constituting a Transferred Asset, or any other Transferred Asset, that by Law is nonassignable, or
that by its terms is nonassignable without the Consent of the other party or parties thereto to the extent such party or parties
assert in writing that such assignment is a breach of such Contract or Permit, or as to which all the remedies for the enforcement
thereof enjoyed by Seller would not, as a matter of law, pass to Buyer as an incident of the assignments provided for by this
Agreement. With respect to any Contract, Permit or other Transferred Asset of the type described in the preceding sentence, and
any claim, right or benefit arising thereunder or resulting therefrom, promptly after the date of this Agreement, to the extent
required by the terms of the Contract, Permit or other Transferred Asset, Seller shall, at its sole cost and expense, obtain the
written Consent of the other parties to any such Contract, Permit or other Transferred Asset for the assignment thereof to Buyer
in form and substance satisfactory to Buyer.

 

(b) 
If such Consent is not obtained with respect to any such Contract, Permit or other Transferred Asset prior to the Closing, in
addition to any other remedy available to Buyer at law or in equity, at Seller’s expense, Seller shall, from and after the
Closing take all actions and do or cause to be done all such things as shall in the reasonable judgment of Buyer or its counsel
be necessary: (i) to ensure that the claims, rights and benefits with respect to such Contract, Permit or other Transferred Asset
are preserved for Buyer or for the benefit of Buyer (including by entering into a subcontracting or subleasing arrangement with
Buyer, if permitted); and (ii) to facilitate receipt of, and promptly pay to, Buyer all monies received by Seller under any such
Contract, Permit or other Transferred Asset or any claim, right or benefit arising thereunder not transferred to Buyer pursuant
to this Section 2.5.

 

Section 2.6. Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices
of Stradling Yocca Carlson & Rauth, P.C., 4365 Executive Drive, Suite 1500, San Diego, California 92121, at 10:00 a.m., Pacific
Time, on the date of this Agreement or, if conditions to Closing are not yet fulfilled, on the Business Day following the satisfaction
or, to the extent permitted hereby, waiver of the conditions set forth in Article 7 of this Agreement (other than those
conditions that, by their nature, are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions),
or on such other date or at such other time and place as Buyer and Seller may mutually agree in writing. The date on which the
Closing actually occurs is referenced herein as the “Closing Date”. At the Closing, documents and signature
pages may be exchanged remotely via facsimile or other electronic exchange (with originals to be delivered to the other party
as soon as reasonably practicable after the Closing and requested by such other party). The effective time of the Closing is 12:01
A.M. Eastern Time on the Closing Date.

 

Section
2.7. Closing Deliveries. At the Closing:

 

(a) 
Conditions to Buyer’s Obligation. Buyer's obligation hereunder to purchase and pay for the Transferred Assets is
subject to the satisfaction, on or before the Closing Date, of the following conditions, any of which may be waived, in whole
or in part, by Buyer in its sole discretion, and Seller shall use its reasonable best efforts to cause such conditions to be fulfilled,
which include Seller shall have delivered, or cause to be delivered, to Buyer or any other Person designated by Buyer (unless
the delivery is waived in writing by Buyer), the following documents, in each case duly executed or otherwise in proper form,
and the other items listed below:

 

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(i)  [reserved];

 

(ii) Bill of Sale
. A bill of sale in substantially the form attached hereto as Exhibit B (the “Bill of Sale”), duly
executed by Seller;

 

(iii) Assignment
and Assumption Agreement. An assignment and assumption agreement in substantially the form attached hereto as Exhibit C
(the “Assignment and Assumption Agreement”), duly executed by Seller;

 

(iv) IP Assignment
Agreement. An intellectual property assignment agreement in substantially the form attached hereto as Exhibit D (the
“IP Assignment Agreement”), duly executed by Parent and each Subsidiary owning Transferred Assets that are
Patents, Trademarks and registered Copyrights or Domain Names;

 

(v) Officer’s
Certificate. A certificate signed by an officer of Seller, dated the Closing Date, certifying: (x) Seller’s organizational
and governing documents; (y) resolutions of the Seller Board approving this Agreement, the Ancillary Agreements to which Seller
is a party and the transactions contemplated hereby and thereby; and (z) resolutions of the equity holders of Parent approving
this Agreement and the transactions contemplated hereby;

 

(vi) Payoff
Letters . Payoff letters, in form and substance satisfactory to Buyer, evidencing the discharge or payment in full of the
Repaid Indebtedness and including a release of Buyer, and an agreement to provide for the benefit of Buyer the same confidentiality
restrictions that exist between the holder of such Repaid Indebtedness and Seller (the “ Payoff Letters”),
in each case duly executed by each holder of such Repaid Indebtedness, with an agreement to provide termination statements on
Form UCC-3, or other appropriate releases following any payoff thereof, which when filed will release and satisfy any and all
Liens relating to such Repaid Indebtedness, together with proper authority to file such termination statements or other releases
at and following the Closing;

 

(vii) Employment
Offer Letters. Employment offer letters with each of the individuals listed on Section 2.7(a)(vii) of the Disclosure
Schedule, in the form provided by Buyer, duly executed by the applicable individual party thereto (the “Employment Offer
Letters”)1;

 

(viii) Required
Consents. The Required Consents, duly executed and in full force and effect; and each Required Consent given by a contractual
counterparty must also include an express and irrevocable waiver (for the express benefit of Guarantor, Buyer and their Affiliates)
to the effect that all covenants (if any) of any agreement between Parent or Seller (or an Affiliate of Parent or Seller) and
such counterparty which are stated to apply not just to the Parent/Seller-side party but also to Affiliates and/or Subsidiaries
of such Parent/Seller-side party shall, after the Closing, have no applicability to or binding effect upon Guarantor, Buyer or
any Affiliate of Guarantor or Buyer (except for the Parent/Seller-side party, to the extent it is or becomes an Affiliate or Subsidiary
of Guarantor or Buyer);

 

(ix) FIRPTA Certificate.
An affidavit prepared in accordance with Treasury Regulations Sections 1.1445-2 and dated as of the Closing Date attesting that
Parent and each Subsidiary is not a foreign person, provided, however, that that if Buyer does not receive a properly
executed affidavit, as described above, from Seller then Buyer shall be permitted to withhold from any payments to be made pursuant
to this Agreement to Seller any required withholding tax under Section 1445 of the Code as determined by Buyer, and any
such amounts withheld shall be treated for all purposes of this Agreement as having been paid to Seller;

 

 

1 Note
to Draft: The parties to discuss full employment agreements for certain individuals

 

    17

     

    

 

(x) 
Transition Services Agreement. A transition services agreement in substantially the form attached hereto as Exhibit
E (the “Transition Services Agreement”), duly executed by Seller;

 

(xi)  Escrow Agreement. The Escrow
Agreement, duly executed by Seller and the Escrow Agent; and

 

(xii) 
Other Documents. All other instruments, agreements, certificates and documents required to be delivered by Seller at or
prior to the Closing pursuant to this Agreement and such other certificates of authority and similar instruments as Buyer may
have reasonably requested at least three (3) Business Days prior to the Closing Date in order to give effect to the transactions
contemplated by this Agreement.

 

(b) 
Buyer shall pay, or cause to be paid, the Closing Consideration as provided in Section 2.8 and shall deliver, or cause
to be delivered, to Seller or any other Person designated by Seller (unless the delivery is waived in writing by Seller), the
following documents, in each case duly executed or otherwise in proper form, and the other items listed below:

 

 (i)  [reserved];

 

(ii) 
Assignment and Assumption Agreement. The Assignment and Assumption Agreement, duly executed by Buyer;

 

(iii)  IP
Assignment Agreement. The IP Assignment Agreement, duly executed by Buyer;

 

(iv) 
Good Standing Certificate. A good standing certificate with respect to Buyer issued by the Secretary of State of the State
of Delaware, dated as of a date no more than three (3) Business Days prior to the Closing Date;

 

 (v)  Transition Services Agreement. The Transition Services Agreement,

duly executed by Buyer;

 

(vi)  Escrow
Agreement. The Escrow Agreement, duly executed by Buyer; and

 

(vii) 
Other Documents. All other instruments, agreements, certificates and documents required to be delivered by Buyer at or
prior to the Closing pursuant to this Agreement and such other certificates of authority and similar instruments as Seller may
have reasonably requested at least three (3) Business Days prior to the Closing Date in order to give effect to the transactions
contemplated by this Agreement.

 

Section
2.8. Purchase Price.

 

(a) 
The aggregate consideration for the Transferred Assets and the non-competition obligations set forth in Section 6.5 shall
consist of: (i) an amount in cash equal to the Base Consideration, subject to adjustment pursuant to Section 2.9 below
and payable in accordance with Section 2.8(b) below; (ii)  the Earnout; and (iii) the assumption
by Buyer of the Assumed Liabilities (collectively, the “Purchase Price”).

 

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 (b)  At the Closing:

 

(i)  
Buyer shall pay, or cause to be paid, the Closing Consideration, minus the sum of (A) the Escrow Amount, and (B) the amount
of any funds required to be paid pursuant to the Payoff Letters (the “Payoff Amounts”), to Seller by wire transfer
of immediately available funds to an account or accounts designated by Seller in the Estimated Working Capital Statement;

 

(ii) 
Buyer shall pay, or cause to be paid, the Escrow Amount to the Escrow Agent, by wire transfer of immediately available funds to
the Escrow Account designated by the Escrow Agent pursuant to the Escrow Agreement;

 

(iii) 
Buyer shall pay, or cause to be paid, the Payoff Amounts to the payees specified in the Payoff Letters, by wire transfer of immediately
available funds to the account or accounts designated by such payees therein; and

 

 (iv)  Buyer shall assume the Assumed Liabilities.

 

(c) 
Buyer shall be permitted to deduct and withhold or cause to be deducted and withheld from any amounts payable pursuant to this
Agreement all amounts required to be deducted and withheld under applicable Law. Any amounts so deducted and withheld shall be
treated for all purposes of this Agreement as paid to Seller.

 

Section 2.9. Working
Capital Adjustment.

 

(a) 
Estimated Working Capital Adjustment. At least five (5) Business Days prior to the Closing Date, Seller shall deliver to
Buyer a statement (the “Estimated Working Capital Statement”), reasonably acceptable to Buyer, setting forth
a good faith calculation, together with reasonably detailed supporting documentation, of (i) the estimated Closing Net Working
Capital (the “Estimated Closing Net Working Capital”) and the components thereof, (ii) the Estimated Working
Capital Increase or the Estimated Working Capital Decrease, as the case may be, and (iii) the resulting calculation of the Closing
Consideration. The Estimated Working Capital Statement and the calculations thereunder shall be prepared and calculated by Seller
in good faith and be reasonably acceptable to Buyer.

 

(b) 
Working Capital Statement. Within the one hundred twenty (120) day period after the Closing Date (or such reasonable extension
thereof as approved by Seller, such approval not to be unreasonably withheld, conditioned or delayed), Buyer shall deliver, or
cause to be delivered, to Seller a statement (the “Working Capital Statement”) setting forth Buyer's objections,
if any, to the calculations set forth in the Estimated Working Capital Statement, together with reasonably detailed supporting
documentation to substantiate any such objections, including the calculations of: (i) the Closing Net Working Capital and (ii)
the Working Capital Increase or the Working Capital Decrease, as the case may be. The Working Capital Statement and the calculations
thereunder shall be prepared and calculated by Buyer in good faith.

 

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(c)  Disputes.

 

(i) 
If Seller disputes any of Buyer's objections to the Estimated Working Capital Statement as set forth in the Working Capital Statement
and the amount of the dispute exceeds $100,000, then, within fifteen (15) days
after the delivery to Seller of the Working Capital Statement (the “Dispute Period”), Seller shall deliver to Buyer
a written notice (a “Dispute Notice”) describing in reasonable detail Seller's dispute of any of Buyer's objections
to the Estimated Working Capital Statement set forth in such Working Capital Statement. If Seller does not deliver a Dispute Notice
to Buyer during the Dispute Period, then Buyer's objections set forth in the Working Capital Statement shall be binding and conclusive
on the parties hereto.

 

(ii) 
If Seller delivers a Dispute Notice, and if Seller and Buyer are unable to resolve the objections set forth in the Working Capital
Statement within ten (10) Business Days after such Dispute Notice is delivered to Buyer, the dispute shall be finally settled
by the Accounting Firm. Within ten (10) days after the Accounting Firm is appointed, Buyer shall forward a copy of the Working
Capital Statement to the Accounting Firm, and Seller shall forward a copy of the Dispute Notice to the Accounting Firm, together
with, in each case, all relevant supporting documentation. Each party shall execute any reasonable engagement letter requested
by the Accounting Firm. The Accounting Firm's role shall be limited to resolving such objections and determining the correct calculations
to be used on only the disputed portions of the Working Capital Statement, and the Accounting Firm shall not make any other determination,
including any determination as to whether any other items on the Working Capital Statement are correct or whether the Target Net
Working Capital is correct. The Accounting Firm shall not assign a value to any item greater than the greatest value for such
item claimed by Seller or Buyer or less than the smallest value for such item claimed by Seller or Buyer and shall be limited
to the selection of either Seller's or Buyer's position on a disputed item (or a position in between the positions of Seller or
Buyer) based solely on presentations and supporting material provided by the parties and not pursuant to any independent review.
In resolving such objections, the Accounting Firm shall apply the provisions of this Agreement concerning determination of the
amounts set forth in the Working Capital Statement. Seller and Buyer shall instruct the Accounting Firm to deliver to Seller and
Buyer a written determination (such determination to include a work sheet setting forth all material calculations used in arriving
at such determination and to be based solely on information provided to the Accounting Firm by Seller and Buyer) of the disputed
items submitted to the Accounting Firm within thirty (30) calendar days of receipt of such disputed items. The determination by
the Accounting Firm of the disputed amounts and the Working Capital Increase or Working Capital Decrease shall be conclusive and
binding on the parties hereto, absent manifest error or fraud or willful misconduct as determined by a non-appealable and binding
decision by a court of law having jurisdiction over the parties. Each party (as defined below) in any such proceeding shall pay
a proportion of the total costs and fees related to such determination by the Accounting Firm, including the costs for the Accounting
Firm's services, based on the extent to which it is the non-prevailing party in any Dispute. For example, if the difference between
Buyer’s and Seller’s position as finally submitted to the Accounting Firm for a determination is $50,000, and Buyer
is awarded $10,000, then Buyer shall pay 80% of such costs. The parties agree that the procedure set forth in this Section 2.9
for resolving disputes with respect to the Closing Net Working Capital shall be the sole and exclusive remedy for resolving such
disputes; provided, however, that the parties agree that judgment may be entered upon the determination of the Accounting
Firm in any court having jurisdiction over the party against which such determination is to be enforced. The Closing Net Working
Capital, as finally determined pursuant to this Section 2.9(c), shall be referred to herein as the “Final Actual Net
Working Capital”. The same mechanism, including the dates of a Dispute Notice, and the selection of an Accounting Firm
if needed, shall apply to any dispute regarding payments calculated under Exhibit A.

 

(d) 
Payment of Working Capital Adjustment. If there is a Working Capital Increase, as finally determined in accordance with
this Section 2.9, Buyer shall pay the Working Capital Increase to Seller. If there is a Working Capital Decrease, as finally
determined in accordance with this Section 2.9, then Seller shall pay to Buyer the Working Capital Decrease.

 

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(e)  Timing
of Payments. Any payment required to be made pursuant to Section 2.9(d) shall be made within five (5) Business Days
of the determination of the Final Actual Net Working Capital pursuant to the provisions of this Section 2.9 by wire transfer
of immediately available funds to such account or accounts as may be designated in writing by Seller or Buyer, as applicable,
at least two (2) Business Days prior to such payment date.

 

(f) 
Tax Treatment. Each of Seller and Buyer shall treat any payment that Buyer or Seller receives pursuant to this Section
2.9 as an adjustment to the Purchase Price for Tax purposes.

 

Section 2.10. Escrow
Arrangements.

 

(a) 
At the Closing, Seller and Buyer shall enter into an Escrow Agreement with the Escrow Agent in substantially the form attached
hereto as Exhibit F (the “Escrow Agreement”), pursuant to which, among other things, Buyer shall deposit
an amount in cash equal to the Escrow Amount in the Escrow Account in order to provide Buyer with a source of funds for satisfaction
of any amounts owing from Seller to any Buyer Indemnitee resulting from Damages required to be indemnified by Seller under Article
8.

 

(b) 
Distributions from the Escrow Account to Seller or Buyer, as applicable, shall be made as provided in this Agreement and the Escrow
Agreement.

 

Section 2.11. Purchase
Price Allocation.

 

(a) 
The parties hereto shall allocate the Base Consideration (plus the portion of the Assumed Liabilities and other relevant
items which are treated as purchase price for federal income tax purposes) among the assets transferred by Seller pursuant to
this Agreement in accordance with the applicable provisions of Section 1060 of the Code and the Treasury Regulations promulgated
thereunder (the “Price Allocation”).

 

(b) 
Within ninety (90) days after the Closing, Buyer shall provide Seller with a statement (“Price Allocation Statement”)
containing Buyer’s proposed Price Allocation. If Seller does not notify Buyer of an objection to Buyer’s proposed
Price Allocation as unreasonable within twenty (20) days after delivery thereof, Buyer’s proposed Price Allocation shall
be deemed the “Final Price Allocation”. If within twenty (20) days after the delivery of the Price Allocation
Statement, Seller notifies Buyer in writing that Seller objects to Buyer’s proposed Price Allocation contained in the Price
Allocation Statement as unreasonable, Buyer and Seller shall use commercially reasonable efforts to resolve such dispute within
twenty (20) days of Seller’s written notification, and the Price Allocation agreed to by Buyer and Seller shall be deemed
the Final Price Allocation. In the event that Buyer and Seller are unable to resolve such dispute within that twenty (20) day
period, the dispute shall be referred for final determination to the Accounting Firm or, if such firm is not available, such other
accounting firm selected by the mutual agreement of Buyer and Seller. The fees and disbursements of such third party shall be
borne by the parties hereto in proportion to the amounts by which their proposals differ from the final determination of such
third party. The Final Price Allocation shall be adjusted, as appropriate, to reflect any payments made pursuant to this Agreement
after the Closing Date. Each of Buyer and Seller shall timely file an IRS Form 8594 reflecting the Price Allocation for the taxable
year that includes the Closing Date and make any timely filing required by applicable state or local Laws. Neither Buyer nor Seller
shall take any position or permit any of its Affiliates to take any position inconsistent with the Final Price Allocation in the
preparation of financial statements, the filing of any Tax Returns or in the course of any audit by any Taxing Authority, Tax
review or Tax proceeding relating to any Tax Returns. Any Working Capital Increase or Working Capital
Decrease pursuant to Section 2.9 shall be allocated in a manner consistent with the Final Price Allocation.

 

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ARTICLE
3

REPRESENTATIONS
AND WARRANTIES OF SELLER

 

Except
as set forth in the disclosure schedule delivered by Seller to Buyer simultaneously with the execution and delivery of this Agreement
(the “Disclosure Schedule”), Seller hereby represents and warrants to Buyer as of the date of this Agreement
and as of the Closing Date as follows:

 

Section
3.1. Organization and Qualification. Parent is a Delaware corporation duly incorporated, validly existing and in good standing
under the laws of the State of Delaware. Each Subsidiary is duly incorporated, validly existing and in good standing under the
Laws of the state of its incorporation. Parent and each Subsidiary has the requisite corporate power and authority to own, operate
or lease all of the properties and assets that it purports to own, operate or lease and to carry on the Business as it is now
being conducted and as currently proposed to be conducted. Parent and each Subsidiary is duly licensed or qualified to do business
and is in good standing (with respect to jurisdictions that recognize such concept) in each jurisdiction in which the nature of
the Business or the character or location of the Transferred Assets makes such licensing or qualification necessary. Section
3.1 of the Disclosure Schedule accurately sets forth each jurisdiction where Seller is qualified, licensed or admitted to
do business.

 

Section
3.2. Authority.

 

(a)
Parent and each Subsidiary has all necessary power and authority to execute and deliver this Agreement and the Ancillary
Agreements to which Parent and any Subsidiary is a party, to perform its obligations hereunder and thereunder and to
consummate the transactions contemplated hereby and thereby. The execution and delivery by Seller of this Agreement and the
Ancillary Agreements to which Seller is a party, the performance by Seller of its obligations hereunder and thereunder, and
the consummation by Seller of the transactions contemplated hereby and thereby, have been duly and validly authorized by all
necessary corporate action on the part of Seller, and no other or further action or proceeding on the part of Seller, other
than the approval of Parent’s Stockholders, is necessary to authorize the execution and delivery by Seller of this
Agreement and the Ancillary Agreements to which Seller is a party, the performance by Seller of its obligations hereunder and
thereunder, and the consummation by Seller of the transactions contemplated hereby or thereby. This Agreement and the
Ancillary Agreements to which Seller is a party have been duly executed and delivered by Seller and, assuming the due and
valid authorization, execution and delivery of this Agreement and such Ancillary Agreements by each other party thereto,
constitute a valid and binding obligation of Seller, enforceable against Seller in accordance with their terms, except that
such enforceability: (i) may be limited by bankruptcy, insolvency, moratorium or other similar Laws of general application
affecting or relating to the enforcement of creditors’ rights generally; and (ii) is subject to general principles of
equity.

 

(b)
At a meeting duly called and held, the Seller Board has, by the unanimous vote of the Seller Board, adopted resolutions approving
this Agreement, the Ancillary Agreements to which Parent or any Subsidiary is a party and all of the transactions contemplated
hereby and thereby, which resolutions are in full force and effect and have not been subsequently amended, altered, rescinded,
revoked or modified in any respect.

 

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(c)
The stockholder of each Subsidiary has duly approved the sale of assets contemplated by this Agreement.

 

Section
3.3. Consents and Approvals; No Violations.

 

(a) 
Except for the Consents, filings, declarations, registrations and notices set forth in Section 3.3(a) of the Disclosure
Schedule, no Consent of, or filing, declaration or registration with, or notice to any Governmental Entity or any other Person,
which has not been received or made, is required to be obtained or made by Seller for the execution and delivery by Seller of
this Agreement and the Ancillary Agreements to which Seller is a party or the consummation by Seller of the transactions contemplated
hereby or thereby.

 

(b) 
The execution and delivery by Seller of this Agreement and the Ancillary Agreements to which Seller is a party, the performance
by Seller of its obligations hereunder and thereunder, and the consummation by Seller of the transactions contemplated hereby
and thereby do not and will not: (i) conflict with or violate any provision of Parent or any Subsidiary’s organizational
or governing documents; or (ii) assuming that the Consents listed on Section 3.3(a) of the Disclosure Schedule have been
received or made, as the case may be, prior to the Closing: (x) conflict with or result in a violation or breach of any Law applicable
to Seller, the Business or any of the Transferred Assets; (y) conflict with, result in a violation or breach of, result in the
loss of any material benefit under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute
a default) under, result in the termination, modification or cancellation of or a right of termination, modification or cancellation
under, or accelerate the performance required under, any Contract or Permit to which Seller is a party, by which Seller or the
Business is bound, or to which any of the Transferred Assets is subject; or (z) result in the creation of any Lien upon any of
the Transferred Assets.

 

Section
3.4. Financial Information.

 

(a) 
Delivery of Financial Statements. Seller has delivered to Buyer true, correct and complete copies of the following financial
statements, including any related notes and schedules thereto (collectively, the “Financial Statements”): (i)
the audited balance sheet of the Business as of December 31, 2016, December 31, 2017 and December 31, 2018, and the related unaudited
statements of operations and cash flows for the years then ended; and (ii) the unaudited balance sheet of the Business as of September
30, 2019 (the “Interim Balance Sheet”), and the related unaudited statements of operations and cash flows,
in each case, for the three and nine months ended September 30, 2019.

 

(b) 
Fair Presentation. The Financial Statements have been based upon the information contained in Seller’s Books and
Records, and have been prepared in accordance with GAAP applied on a consistent basis throughout the period involved (except as
indicated in the notes to financial and except that unaudited financial statements may not contain footnotes and are subject to
normal and recurring yearend adjustments). Each of the balance sheets included in the Financial Statements is true, correct and
complete and fairly presents in all material respects the financial position of the Business as of the respective dates thereof,
and each of the statements of operations and cash flows or equivalent statements contained in the Financial Statements (including
any related notes and schedules thereto) is true, correct and complete and fairly presents the results of operations of the Business
for the periods specified in such statement, in each case in accordance with GAAP. Seller maintains a standard system of accounting
for the Business established and administered in accordance with GAAP. With respect to Parent, the financial statements included
in any annual or quarterly reports filed with the SEC were true, complete and correct at the time filed.

 

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(c) 
Financial Statement Preparation. The Business possesses, and will have access, following the Closing, to the information
necessary to prepare balance sheets and statements of operations and cash flows (including footnotes and other disclosures related
thereto) for the Business that conform to the requirements of GAAP. The statements of operations included in the Financial Statements
do not contain any material items of special or non-recurring income or other income not earned in the ordinary course of the
Business except as expressly specified therein. The statements of operations and cash flows included in the Financial Statements
do not reflect the operations of any entity or business other than the Business other than Icagen-T. Seller has not engaged in
any transaction with respect to the Business, maintained any bank account for the Business or used any of its funds in the conduct
of the Business except for transactions, bank accounts and funds which have been and are reflected in its normally maintained
books and records.

 

(d) 
Indebtedness. Section 3.4(d) of the Disclosure Schedule sets forth a complete and correct list of all Indebtedness
of the Business, or by which the Business has become subject to a Lien, as of the date of this Agreement, identifying the creditor
(including name and address), the type of instrument under which such Indebtedness is owed and the amount of such Indebtedness
as of the open of business on the date of this Agreement. No Indebtedness of the Business contains any restriction upon the prepayment
of any such Indebtedness except as set forth on Schedule 3.4(d). With respect to each item of Indebtedness of the Business,
Seller is not in default and no payments are past due except as set forth on Schedule 3.4(d). Seller has not received any
notice of a default, alleged failure to perform or any offset or counterclaim with respect to any item of Indebtedness of the
Business that has not been fully remedied and withdrawn except as set forth on Schedule 3.4(d). The consummation of the
transactions contemplated by this Agreement will not cause a default, breach or an acceleration, automatic or otherwise, of any
conditions, covenants or any other terms of any item of Indebtedness of the Business.

 

(e) 
Solvency. After giving effect to the transactions contemplated hereby, Parent on a consolidated basis, including Icagen-T,
will be solvent.

 

Section
3.5. Absence of Undisclosed Liabilities. Except as set forth on Schedule 3.5, Seller does not have any Liabilities
with respect to the Business or the Transferred Assets except for: (a) Liabilities adequately reflected or reserved against in
the Interim Balance Sheet; (b) Current Liabilities that have been incurred in the Ordinary Course of Business since the date of
the Interim Balance Sheet and that are included in the calculation of Net Working Capital; (c) Liabilities under this Agreement
and the Ancillary Agreements; and (d) Excluded Liabilities.

 

Section
3.6. Assets; Employees.

 

(a) 
Disregarding the effect of Section 2.5, the Transferred Assets, together with the services to be expressly provided under
the Transition Services Agreement: (i) constitute all of the rights, properties and assets, tangible and intangible, of any nature
whatsoever, necessary to operate the Business as currently conducted and as the Business has been conducted since January 1, 2018;
and (ii) include all of the operating assets of the Business and of Seller with respect to the Business.

 

(b) 
Seller has good, valid and marketable title to, or a valid leasehold interest in, all of the Transferred Assets, free and clear
of all Liens (other than Permitted Liens)and except as set forth on Schedule 3.6.

 

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(c) 
All of the Transferred Assets are in good operating condition and repair, subject to normal wear and maintenance, are usable
in the Ordinary Course of Business and conform to applicable Laws and all Permits issued to Seller by any Governmental Entity
relating to their construction, use and operation. No Person other than Seller owns any equipment or other tangible or
intangible assets or properties situated on the premises of the Business or necessary to operate the Business in a manner,
and at levels of activity and productivity, consistent with the manner and levels at which such the Business has been
conducted since January 1, 2018, except for items leased pursuant to Material Contracts.

 

(d)  Section
3.6(d) of the Disclosure Schedule sets forth a list of all Business Employees and Business Consultants and, with respect
to each, sets forth the following information: (i) name; (ii) title or position; (iii) the entity or entities by which such
individual is employed; (iv) hire date; (v) current annual or hourly base compensation rate; (vi) commission,
bonus, incentive compensation, or other similar compensation paid for calendar year 2019; (vii) all accruals or commitments
(whether oral or written) to pay commissions, bonuses, incentive compensation, or other similar compensation for the current
year; (viii) accrued but unused vacation or paid time off; (ix) active or inactive status and, if applicable, the reason for
inactive status; (x) accrued but unused sick days; (xi) full-time or part-time status; (xii) exempt or non-exempt status;
(xiii) employment location; and (xiv) any union affiliation. The Business Employees and Business Consultants comprise all of
the personnel that is necessary for the management and operation of the Business as currently conducted and planned to be
conducted and as it has been conducted since January 1, 2018.

 

Section
3.7. Absence of Certain Changes or Events. Since June 30, 2019 and except as set forth on Schedule 3.7: (a)
Seller has conducted the Business in the Ordinary Course of Business (including the collection of receivables, the payment of
payables and the making of capital expenditures); (b)  there have not occurred any events, series of events, occurrences
or conditions, and there has not been any lack of occurrences, facts, conditions, changes, developments or effects, in each
case that individually or in the aggregate, have had or could reasonably be expected to have or result in a Material Adverse
Effect; and (c) Seller has not taken or authorized any action which, if taken or authorized on or after the date of this
Agreement, would require the consent of Buyer pursuant to Section 5.1.

 

Section
3.8. Litigation.

 

(a)
There is no Proceeding pending or, to the Knowledge of Seller, threatened against or by Seller: (i) relating to or affecting
the Business, the Transferred Assets or the Assumed Liabilities; or (ii) that challenges or seeks to prevent, enjoin or
otherwise delay the transactions contemplated by this Agreement. No event has occurred, and to the Knowledge of the Seller no
circumstance exists, in each case that is reasonably likely to result in the commencement of any such Proceeding.

 

(b)
There is: (i) no outstanding Order of, or settlement agreement with or subject to, any Governmental Entity; and (ii) no
unsatisfied judgment, penalty or award, in each case against, relating to or affecting the Business.

 

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Section
3.9. Compliance with Laws. Except as set forth on Schedule 3.9, Seller is in compliance with all material Laws
applicable to the Business, the Business Employees or the Transferred Assets, and no Proceeding has been filed or commenced
and is continuing against Seller, and Seller has not received any notice or other communication (in writing or otherwise),
alleging that Seller is not in compliance with any such Law. No event has occurred, and no circumstance exists, in each case
that (with or without notice or lapse of time), would reasonably be expected to constitute or result in a material violation
by Seller of, or a material failure on the part of Seller to comply with, any Law applicable to the Business or the
Transferred Assets. In furtherance of the foregoing:

 

In
furtherance of, and not in limitation of, the foregoing:

 

(a) Seller and its Affiliates, if applicable, have conducted all clinical activities related to the Business in accordance with good
clinical practices and good laboratory practices and in material compliance with Law. To the Knowledge of Seller, Seller and its
Affiliates have employed Persons with appropriate education, knowledge and experience to conduct and to oversee the conduct of
the research and activities intended to be filed for Seller’s own behalf or by Seller’s customers with the U.S. Food
and Drug Administration (“FDA”).

 

(b) Neither Seller nor any of the Employees that conducted any activities intended to be filed with the FDA has been disqualified,
debarred or voluntarily excluded by the FDA or any other Governmental Entity for any purpose, or has been charged with or convicted
under United States federal law for conduct relating to the development or approval, or otherwise relating to the regulation,
of any drug product under the Generic Drug Enforcement Act of 1992 or any other Regulation, or directly or indirectly has made
an untrue statement of a material fact to any Governmental Entity (whether in any submission to such Governmental Entity or otherwise),
or failed to disclose a material fact required to be disclosed to any Governmental Entity. None of Seller nor any Employee has
received any notice to such effect.

 

(c) Seller has prepared, maintained and retained all documentation that is required to be maintained or reported pursuant to and
in material compliance with good laboratory and clinical practices and under Law and all such information is true, complete
and correct in all material respects and what it purports to be.

 

(d) Seller has not misappropriated any invention, trade secret or confidential information of any other Person in a manner that could
reasonably be asserted to have violated any Law.

 

Section
3.10. Compliance with Permits. (a) Seller holds all material Permits required for the lawful conduct of the Business as
currently conducted or for the ownership or use of the Transferred Assets; (b) such Permits are valid, unimpaired and in full
force and effect; (c) Seller is not in default under or in material violation of any such Permit; and (d) no Proceeding that seeks
the revocation, cancellation, suspension, limitation, termination or nonrenewal of any such Permit is pending before any Governmental
Entity or, to the Knowledge of Seller, threatened. Seller has timely applied for any renewals of such Permits required by applicable
Law or otherwise necessary for the continued use of the Transferred Assets or the operation of the Business.

 

Section
3.11. Taxes.

 

(a) All Tax Returns required to be filed by Seller in respect of the Business or the Transferred Assets have been duly filed on a
timely basis or within valid and appropriate extensions of time, and all such Tax Returns were when filed, and continue to be,
correct and complete in all material respects. Except as set forth on Schedule 3.11, all Taxes (whether or not shown on
any Tax Return) owed by Seller relating to the Business or the Transferred Assets have been timely paid. There are no Liens with
respect to Taxes imposed on the Business or any of the Transferred Assets.

 

(b) Except as set forth on Schedule 3.11, Seller has complied with all material Laws applicable to the Business and the
Transferred Assets relating to the payment and withholding of Taxes, and has duly and timely withheld and paid over to the
appropriate Taxing Authority all amounts required to be so withheld and paid under all such Laws. Seller has not waived or
requested to waive any statute of limitations in respect of Taxes associated with the Business or the Transferred Assets
which waiver is currently in effect.

 

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(c) There is no Proceeding pending or threatened against Seller in respect of the Business or the Transferred Assets by any Taxing
Authority, including for the assessment or collection of Taxes. No deficiencies for any Taxes have been proposed, asserted, threatened
or assessed against Seller in respect of the Business or the Transferred Assets by any Taxing Authority that have not been paid,
resolved or settled, and Seller has not agreed to any requests for waivers of the time to assess or collect any such Taxes. No
Taxing Authority with which Seller does not file a particular Tax Return or to which Seller does not pay Taxes, in each case in
respect of the Business or the Transferred Assets, has claimed that Seller is or may be subject to taxation by that Taxing Authority.
No issue has been raised by a Taxing Authority in any prior examination of Seller relating to the Business or the Transferred
Assets which, by application of the same or similar principles, could reasonably be expected to result in a material proposed
deficiency for any subsequent taxable period.

 

(d) Section
3.11(d) of the Disclosure Schedule lists: (i) all jurisdictions in which Seller pays Taxes and/or has a duty to file Tax Returns,
in each case in respect of the Business or the Transferred Assets; and (ii) all types of Tax Returns filed by or on behalf of
Seller that relate in whole or in part to the Business or the Transferred Assets.

 

(e) Seller has collected all sales, use, value-added, and similar Taxes in respect of the Business or the Transferred Assets required
to be collected, and has remitted, or will remit, on a timely basis such amounts to the appropriate Taxing Authority. Seller has
properly requested, received and retained all necessary exemption certificates and other documentation supporting any claimed
exemption or waiver of Taxes in respect of the Business or the Transferred Assets on sales or similar transactions as to which
it would otherwise have been obligated to collect or withhold such Taxes.

 

(f) None
of the Transferred Assets or Assumed Liabilities is a debt obligation that: (i)   was issued with “original
issue discount” as that term is defined in Section 1273(a) of the Code in excess of $50,000; (ii) is a
“registration-required obligation” as defined in Section 163(f)(2) of the Code; (iii)  is an
“applicable high yield discount obligation” as defined in Section 163(i)(1) of the Code; or (iv) is a
“disqualified debt instrument” as defined in Section 163(1)(2) of the Code.

 

Section
3.12. Intellectual Property.

 

(a) 
.. Section 3.12 of the Disclosure Schedule sets forth a complete list of the Intellectual Property Rights that are held for use
in the Business. For each listed item, Section 3.12 of the Disclosure Schedule sets forth the (i) legal owner, (ii) the
jurisdiction where issued, registered, legally sanctioned, filed or the equivalent, and (iii) the particulars of any registrations
or issuances including, without limitation, all relevant dates, application numbers and the status thereof; and (in the case of
items both licensed-out and used or held for use in the Business), (iv) the jurisdiction(s) and field of use, if applicable, where
licensed for use and (v) the license agreement, listed by date and earliest expiry, with respect to each such item; and (in the
case of items licensed-in), (vi) each license or other Contract by which Seller has obtained rights thereunder and (vii) the identity
of the licensor, the type of rights licensed, and the Intellectual Property Rights licensed-in.

 

(b) 
To the Knowledge of Seller, the Transferred Intellectual Property Rights include all Intellectual Property Rights necessary or
material to the present conduct of the Business.

 

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(c) All Transferred Intellectual Property Rights are owned by or licensed to Seller free and clear of all Liens (other than the Permitted
Liens or pursuant to Repaid Indebtedness and except as set forth on Schedule 3.12). Seller has not granted ownership to
any Person, or permitted any Person to retain, any ownership rights, or joint ownership of, and Seller will not retain any ownership
or other rights in Transferred Intellectual Property Rights, except the U.S. government, when required to do so by Federal Law.
Subject to the above, following the Closing, all Transferred Intellectual Property Rights will be fully transferable, alienable
or licensable by Buyer without restriction and without payment of any kind to any Third Party. No Transferred Intellectual Property
Rights are jointly owned by Seller, on the one hand, with any Third Party, on the other hand. Seller does not own or control any
Intellectual Property Rights pertaining to the Business that are not included in the Transferred Intellectual Property Rights.

 

(d) Seller has secured valid written assignments from all of Seller’s current and former Business Employees who contributed
to the creation or development of any of the Transferred Intellectual Property Rights of the rights to such contributions that
Seller does not already own by operation of law. Seller has taken commercially reasonable measures necessary to protect its trade
secrets and the trade secrets of any Third Party provided to Seller.

 

(e) All issued Patents within the Transferred Intellectual Property Rights are valid, enforceable, subsisting, and, to the Knowledge
of Seller, have not expired, been cancelled, or abandoned.

 

(f) All issuance, renewal, maintenance and other material payments that are or have become due with respect to the Transferred Intellectual
Property have been timely paid by or on behalf of Seller. All documents, certificates and other materials in connection with the
Transferred Intellectual Property have, for the purposes of maintaining such Transferred Intellectual Property Rights, been filed
in a timely manner with each appropriate Governmental Entity. The Seller has properly filed, prosecuted and maintained all Patents
included in the Transferred Intellectual Property Rights. Section 3.12(f) of the Disclosure Schedule sets forth all actions
that must be taken by Seller within 120 days of the Signature Date, including the payment of any registration, maintenance or
renewal fees, or the filing of any documents, applications or certificates for the purposes of maintaining, perfecting, preserving
or renewing any Seller registered intellectual property.

 

(g) All material items of Transferred Intellectual Property Rights were (i) invented, developed, written and created by Business Employees
acting within the scope of their employment/work-made-for-hire consultancy or (ii) acquired or licensed by Seller from Third Parties
who have validly and irrevocably assigned such item to Seller, or granted Seller a license to use such item of a sufficient scope
to cover Seller’s use or prior use thereof in the Business, which license is fully assignable to Buyer hereunder.

 

(h) To the Knowledge of Seller, the conduct of the Business by Seller before Closing did not, and will not when conducted by Buyer
in substantially the same manner following the Closing, infringe or misappropriate any valid Intellectual Property Rights of any
Person, or constitute unfair competition or trade practices under the laws of any jurisdiction, and Seller has not received written
notice from any Person claiming that such conduct by Seller infringes or misappropriates any Intellectual Property Rights of any
Person or constitutes unfair competition or trade practices under the laws of any jurisdiction.

 

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(i) All
current and former Business Employees of Seller have executed and delivered to the Seller agreements regarding the protection
of proprietary information and the assignment to the Seller of any Intellectual Property Rights arising from services
performed for the Seller by such persons, true and correct copies of which have been made available to the Purchaser. To the
Knowledge of Seller, no current and former Business Employee of Seller is in violation of any term of any such agreement or
of any patent disclosure agreement or employment contract or any other Contract relating to the relationship of any such
Business Employee with Seller. Each current and former Business Employee of Seller has entered into a valid and binding
written agreement with Seller sufficient to vest title in Seller of all Intellectual Property Rights created by such Business
Employee in the scope of his or her services or employment for Seller.

 

(j) Seller has published internal policies and taken other reasonable steps to protect and preserve the confidentiality of all of
Seller’s trade secrets and other proprietary and confidential information related to the Business, and all disclosure of
such information to, and use by, any Third Party (other than (i) competent regulators, accountants and counsel, in each instance
acting in their professional capacities, or (ii) pursuant to an applicable Governmental Order) has been pursuant to the terms
of a written confidentiality agreement between such Third Party and Seller.

 

(k) Except as pursuant to collaboration or license agreements, Seller has not transferred ownership of, nor granted any license of
or right to use, or authorized the retention of any rights to use or joint ownership of, any Transferred Intellectual Property
Rights, to any other Person.

 

(l) No claim or action has been asserted against Seller by, and Seller has not received written notice from any Third Party alleging
that any conduct of the Business infringes or misappropriates the Intellectual Property Rights of any Third Party, violates the
rights of any Person (including any right to privacy or publicity) or constitutes unfair competition or trade practices under
the laws of any jurisdiction.

 

(m) Seller does not believe that any Third Party is or has, and Seller has not notified any Third Party that it may be or is misappropriating,
infringing, diluting or violating any Transferred Intellectual Property Rights. Seller has not brought any Proceeding before any
court, Governmental Entity or arbitral tribunal against any Third Party with respect to any Transferred Intellectual Property
Rights.

 

(n) No Transferred Intellectual Property Rights are subject to any proceeding or outstanding decree, order, judgment or settlement
agreement or stipulation against Seller nor to Seller’s Knowledge against any Third Parties from whom Seller acquired or
licensed Transferred Intellectual Property Rights that restricts in any material way the use, transfer or licensing of such Transferred
Intellectual Property Rights by Seller or may affect the validity, use or enforceability of such Transferred Intellectual Property
Rights.

 

(o) Section
3.12(o) of the Disclosure Schedule contains a complete and accurate list and summary of all royalties, fees, commissions and
other amounts payable by Seller to any other Person (other than sales commissions paid to Seller’s employees according to
Seller’s standard commissions plan) upon or for the use of any owned Intellectual Property Rights.

 

(p) To
the Knowledge of Seller, no trademark or trade name owned, used or applied for by Seller that is also owned Intellectual
Property Rights conflicts or interferes with any trademark or trade name owned, used or applied for by any other Person. For
all trademarks that are also owned Intellectual Property Rights, Seller has taken reasonable steps to police the use of such
trademarks necessary to maintain the validity and enforceability of such trademarks. No interference, opposition, reissue,
reexamination or other Proceeding is or has been pending or, to Seller’s Knowledge, threatened, in which the ownership,
scope, validity or enforceability of any owned Intellectual Property Rights is being, has been, or could reasonably be
expected to be contested or challenged.

 

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(q) None of the execution, delivery or performance of this Agreement or any Ancillary Agreement will, with or without notice or lapse
of time, result in, or give any other Person the right or option to cause or declare: (i) a loss of, or Lien on, any owned Intellectual
Property Rights; (ii) the release, disclosure or delivery of any owned Intellectual Property Rights by or to any escrow agent
or other Person; or (iii) the grant, assignment or transfer to any other Person of any license or other right or interest under,
to or in any of the owned Intellectual Property Rights.

 

(r) Seller owns or has a valid right to access and use all Seller IT Systems. The consummation of the transactions contemplated by
this Agreement will not impair or interrupt in any material respect: (i) Buyer’s access to and use of, or its right to access
and use, the Seller IT Systems or any third party databases or third party data used in connection with the Business as currently
conducted; and (ii) to the extent applicable, access to and use of the Seller IT Systems by customers of the Business. Seller
has taken all steps in accordance with industry standards to secure the Seller IT Systems from unauthorized access or use by any
Person and to ensure the continued, uninterrupted and error-free operation of the Seller IT Systems. There (x) have been no unauthorized
intrusions or breaches of security with respect to any Seller IT System; (y) has not been any material malfunction of any Seller
IT System that has not been remedied or replaced in all respects; and (z) has been no material unplanned downtime or service interruption
with respect to any Seller IT System.

 

(s) The operation of the Business as currently conducted and the use or handling of Business Data in connection therewith does not
violate any applicable Laws. Seller has not received any notice or other communication (in writing or otherwise) that the operation
of the Business is or may be in violation of any data privacy or data security related Laws. Seller has not distributed or displayed
any Business Data in breach of any Contract. At all times, in connection with the conduct of the Business and the ownership and
use of the Transferred Assets: (i) Seller has posted privacy policies governing Seller’s use and collection of personal
information in a manner easily viewable by those who either have personal information handled by Seller or use Seller’s
services, and (ii) all of Seller’s privacy policies completely and accurately described Seller’s use, collection,
display and distribution of any personal information. The operation of the Business is and at all times has been consistent with
and compliant with the then current version of Seller’s privacy policy posted by Seller. In connection with the operation
of the Business, Seller has not entered into any Contract to provide Personally Identifiable Information to any Person. Seller
has taken all steps in accordance with normal industry practices to secure its websites and web-based services used or offered
in connection with the conduct of the Business and all Business Data from unauthorized access or use by any Person. A copy of
all internally or externally prepared reports or audits that describe or evaluate Seller’s information security procedures
taken in connection with the operation of the Business has been provided to Buyer. None of Business Data or Seller’s websites
or web-based services used or offered in connection with the conduct of the Business have been the target of any successful or
attempted unauthorized access, denial-of-service assault or other attack by hackers. Seller has not provided copies of or access
to Business Data to any Person who has not entered into a Contract with Seller to use, receive or view Business Data, copies of
all such Contracts have been provided to Buyer, and no party who is a party to any such Contract is in breach of any such Contract.
The Business is not subject to HIPAA or other Laws related to personally identifiable medical information and to the extent the
Business is party to a Contract that is a business association agreement for purposes of HIPAA, Seller is in compliance therewith.

 

Section
3.13. Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or
commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of
Seller or any of its Affiliates or any of their respective officers or directors.

 

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Section
3.14. Material Contracts; No Defaults.

 

(a) Section
3.14(a) of the Disclosure Schedule contains an accurate and complete list of each of the following types of Contracts (x)
by which any of the Transferred Assets are bound or affected or (y) to which Seller is a party or by which it is bound in connection
with the Business or the Transferred Assets (each a “Material Contract”):

 

(i) any Contract (A) pursuant to which Seller received aggregate payments in excess of $50,000 during the fiscal year ended December
31, 2019 or (B) that Seller reasonably anticipates will, in accordance with its terms, involve aggregate payments to Seller in
excess of $50,000 within the twelve (12) month period from and after the date of this Agreement;

 

(ii) any Contract (A) pursuant to which Seller made aggregate payments in excess of $50,000 during the fiscal year ended December 31,
2019 or (B) that Seller reasonably anticipates will, in accordance with its terms, involve aggregate payments by Seller in excess
of $50,000 within the twelve (12) month period from and after the date of this Agreement;

 

(iii) any
Contract with any Material Customer or Material Supplier;

 

(iv) any
Contract relating to Indebtedness;

 

(v) any Contract (A) for the sale of any of the Transferred Assets or (B) granting to any Person an option, right of first refusal,
right of first offer or similar preferential right to purchase any of the Transferred Assets;

 

(vi) any Contract that requires Seller to purchase or sell a stated portion of the requirements or outputs of the Business or that
contains “take or pay” provisions;

 

(vii) any Contract limiting, restricting or prohibiting Seller from: (A) conducting any business activities; (B) engaging in any line
of business anywhere in the United States or elsewhere in the world; or (C) conducting any business activities with any Person
other than Contracts that limit the right to use intellectual property developed as part of the services performed, including
work product

 

(viii) any Contract that provides for “most favored nations” terms or establishes an exclusive or priority sale or purchase
obligation with respect to any product, service or geographic location;

 

(ix) any Contract containing non-solicitation provisions restricting Seller’s ability to hire or retain any employees, customers,
vendors, suppliers or other service providers;

 

(x) any (A) joint venture, strategic alliance, partnership, licensing, franchise, manufacturer, development, distribution, sales agent
or supply agreement or (B) other Contract that involves a sharing of revenues, profits, losses, costs or Liabilities by Seller
with any other Person;

 

(xi) any Contract providing for capital expenditures or leasehold improvements in excess of $25,000 individually, or in excess of
$100,000 in the aggregate;

 

    31

     

    

 

(xii) any
Contract relating to (A) the acquisition (by merger, consolidation, purchase of stock or assets, or otherwise) by Seller of
any Person, a material portion of the assets of any Person, or any business, division or product line or (B) the divestiture
or disposition by Seller of a material portion of its properties or assets, or any of its equity interests, in each case of
clauses (A) and (B) pursuant to which any of the parties has any remaining obligations or Liabilities;

 

(xiii) any Contract under which Seller has made, or that obligates Seller to make, a loan or capital contribution to, or investment in,
any Person other than advances to employees in the Ordinary Course of Business;

 

(xiv) any
Contract with any Business Employee or Business Consultant;

 

(xv) any Contract providing for (A) Change of Control Payments or (B) the creation, acceleration or vesting of any right or interest
for the benefit of any current or former Business Employee or Business Consultant which becomes payable as a result of or in connection
with the consummation of the Transactions;

 

(xvi) any (A) collective bargaining agreement or (B) Contract with any union, labor organization, works council or other employee
representative of a group of employees;

 

(xvii) any
Personal Property Lease;

 

(xviii) any
Real Property Lease;

 

(xix) any inbound IP Contract (other than with respect to commercially available, off the shelf software or click to accept
subscription services for software);

 

(xx) any
outbound IP license or Contract;

 

(xxi) any
Contract with any Governmental Entity;

 

(xxii) any
power of attorney or similar grant of agency executed by Seller;

 

(xxiii) any
Contract that was otherwise not entered into in the Ordinary Course of Business or that is otherwise material to the
Transferred Assets or the operation of the Business; and (xxiv) any Contract which commits Seller to enter into any of the
foregoing.

 

(b) With
respect to each Material Contract: (i) such Material Contract is in full force and effect, constitutes a legal, valid and
binding obligation of Seller and, to the Knowledge of Seller, each other party thereto, and is enforceable against each of
them in accordance with its terms; (ii) neither Seller nor, to the Knowledge of Seller, any other party to such Material
Contract is in material breach of or default under such Material Contract; (iii) no event has occurred, and no circumstance
exists, in each case that (with or without notice or lapse of time or both) would constitute a breach of or default under,
would cause or permit the termination or cancellation of, would cause any loss of benefit under, or would give rise to any
right to accelerate the maturity or performance of any obligation under, such Material Contract if it would result in a
Material Adverse Effect; (iv) except as set forth in Schedule 3.14(b), Seller has not provided to or received from any
counterparty thereto any notice regarding any actual or alleged breach of or default under (or of any condition which with
the passage of time or the giving of notice or both would cause a breach of or default under) such Material Contract; and (v)
except as set forth in Schedule 3.14(b), Seller has not provided to or received from any counterparty thereto any
notice announcing, contemplating or threatening to, and Seller is not otherwise aware of any intention by any counterparty
thereto to: (A) terminate (other than Material Contracts that are expiring pursuant to their terms) or not renew such
Material Contract, (B) seek the renegotiation of such Material Contract in any material respect, or (C) substitute
performance under such Material Contract in any material respect. Seller has delivered or made available to Buyer true,
correct and complete copies of all written Material Contracts (including all amendments thereto), and written descriptions of
all material terms of all oral Material Contracts.

 

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Section
3.15. Real Property.

 

(a) Seller does not own and has never owned any interest in any real property in connection with the conduct of the Business.

 

(b) Section
3.16(b) of the Disclosure Schedule contains a complete and accurate list of: (i) all real property leased, subleased,
licensed or otherwise used, operated or occupied by Seller (whether as tenant, subtenant or pursuant to other occupancy
arrangements) and used in or necessary for the conduct of the Business (collectively, including the buildings, improvements
and fixtures located thereon, the “Leased Real Property”), including the street address of each Leased
Real Property; and (ii) each Contract pursuant to which Seller holds any Leased Real Property as landlord, sublandlord,
tenant, subtenant, occupant or otherwise (each, a “Real Property Lease”), including all currently
effective amendments and modifications thereto.

 

(c) Seller holds a valid leasehold or subleasehold interest in (or a valid right to use and occupy), and enjoys peaceful and undisturbed
possession of, each Leased Real Property, in each case free and clear of all Liens other than Permitted Liens.

 

(d) Except as set forth on Schedule 3.15(d), all rent (including base rent and additional rent) payable under each Real Property
Lease has been paid to date. No security deposit or portion thereof deposited with respect to any Real Property Lease has been
applied in respect of a breach or default under such Real Property Lease which has not been redeposited in full.

 

(e) Seller has not assigned, subleased, mortgaged, deeded in trust or otherwise transferred or encumbered any Real Property Lease
or Leased Real Property or any interest therein.

 

(f) Each Leased Real Property is adequately served by proper utilities and other building services necessary for its current use,
and all of the buildings and structures located at the Leased Real Property are structurally sound with no material defects and
are in good operating condition.

 

(g) No condemnation, eminent domain or taking proceeding is pending or, to the Knowledge of Seller, threatened that affects any Leased
Real Property. None of the Leased Real Property or any portion thereof is located in a flood hazard area (as defined by the Federal
Emergency Management Agency).

 

Section
3.16. Environmental Matters.

 

(a) There is no Proceeding pending or, to the Knowledge of Seller, threatened against Seller, the Business or any of the Transferred
Assets, and Seller has no Liability, under or pursuant to any Environmental Law applicable to the Business or the Transferred
Assets.

 

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(b) Seller: (i) has been at all times and is in compliance in all material respects with all Environmental Laws applicable to the
Business or the Transferred Assets; (ii) holds all Environmental Permits as are required for the conduct of the Business as currently
conducted; and (iii) is in compliance with such Environmental Permits. Section 3.16(b) of the Disclosure Schedule contains
an accurate and complete list of all Environmental Permits held by Seller or to which Seller is a party or by which it is bound,
in each case in connection with the Business or the Transferred Assets, or to which any of the Transferred Assets are subject,
including in the list (A) the name(s) of the permittee(s); (B) the effective and renewal date(s); (C) the subject matter; (D)
the permit number or other identification code; (E) the issuing agency; and (F) any other relevant identifying information.

 

Section
3.17. Labor Matters.

 

(a) Seller is not, and has not been, party to or bound by a collective bargaining agreement or agreement with any labor union or other
employee representative of a group of employees relating to the Business, and no Business Employee is or has been represented
by any labor organization with respect to their employment by Seller or any Affiliate of Seller. To the Knowledge of the Seller,
there are no current labor union organizing activities in progress with respect to any Business Employees. There are and have
been no actual or, to the Knowledge of Seller, threatened labor disputes, strikes, lockouts or work stoppages against or affecting
the Business Employees.

 

(b) There is no: (i) unfair labor practice charge; (ii) grievance; (iii) arbitration; (iv) charge; (v) lawsuit; (vi) investigation;
or (vii) complaint against Seller pending or, to the Knowledge of Seller, threatened before a Governmental Entity, in each case
with respect to any of the Business Employees. All Business Employees are authorized to work in the United States, and a Form
I-9 has been completed properly and retained with respect to each Business Employee.

 

(c) Seller is in compliance with all, and has at all times been in compliance with all, and Seller has not received any notice or
other communication (in writing or otherwise) of any claim filed with or by any Governmental Entity alleging that Seller has violated
any, Laws or applicable contractual arrangements pertaining to employment and employment practices to the extent they relate to
the Business Employees, Business Consultants or contingent workers, including all Laws relating to wages, hours, compensation,
meal and rest breaks, wage statements, fringe benefits, termination of employment, employment policies or practices, immigration,
terms and conditions of employment, child labor, labor or employee relations, classification of employees, affirmative action,
equal employment opportunity and fair employment practices, disability rights or benefits, workers’ compensation, unemployment
compensation and insurance, health insurance continuation, whistle-blowing, harassment, discrimination, retaliation or employee
safety or health and, to the Knowledge of Seller, no such claim is threatened.

 

(d) Seller has properly classified all Business Employees and Business Consultants as employees, independent contractors or leased
employees and as exempt or non-exempt for all purposes and has made all appropriate filings in connection with services provided
by, and compensation paid to, such Business Employees and Business Consultants.

 

(e) All compensation, including wages, commissions and bonuses, payable to all Business Employees and Business Consultants for services
performed on or prior to the date of this Agreement have been paid in full, and there are no outstanding agreements, understandings
or commitments of Seller with respect to any compensation, commissions or bonuses.

 

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Section
3.18. Employee Benefit Plans.

 

(a) Set forth on Section 3.18 of the Disclosure Schedule is a true and complete list of each Employee Plan. As applicable with
respect to each Employee Plan, Seller has delivered or caused to be delivered to Buyer true and complete copies of each Employee
Plan, including all amendments thereto, and in the case of an unwritten Employee Plan, a written description thereof.

 

(b) No Employee Plan is, and none of Seller, any Affiliate of Seller, or any ERISA Affiliate thereof sponsors, maintains, contributes
to, or has sponsored, maintained, contributed to or incurred any liability (that has not been satisfied in full) to: (i) a multiemployer
plan (within the meaning of Section 3(37) or 4001(a)(3) of ERISA); (ii) a plan subject to Part 3, Subtitle B of Title I of ERISA,
Section 412 of the Code or Title IV of ERISA, (iii) a “multiple employer plan” (as defined in Section 4063 or 4064
of ERISA); or (iv) a plan that provides benefits, including death or medical benefits, beyond termination of service or retirement
other than (A) coverage mandated by Law or (B) death or retirement benefits under an Employee Plan qualified under Section 401(a)
of the Code.

 

(c) No Transferred Asset is subject to any Lien under the Code or ERISA, and neither Seller nor any ERISA Affiliate has incurred any
liability which could subject Buyer or any Transferred Asset to liability under Sections 4062, 4063 or 4064 of ERISA.

 

(d) All Employee Plans (and related trusts and insurance contracts) comply in form and in operation in all material respects with
the applicable requirements of ERISA, the Code, the Family and Medical Leave Act and other applicable Laws and comply in operation
in all material respects with their respective terms and conditions, except for such instances of noncompliance in form or operation
that would not result in any Liability to Buyer. With respect to all Employee Plans, all premiums, contributions and other Liabilities,
whether or not due, for prior plan years and the current plan year for the period ending on the Closing Date have been paid or
accrued on Seller’s Books and Records to the extent required by, and in accordance with, GAAP, except as would not result
in any Liability to Buyer. No statement, either written or oral, has been made by Seller to any Person with regard to any Employee
Plan that was not in accordance with the terms and conditions of such Employee Plan and that would have a material adverse economic
consequence to Buyer.

 

(e) Each Employee Plan that is subject to Section 409A of the Code has been maintained, in form and operation in compliance with Section
409A of the Code. Seller does not have any obligation to gross up, indemnify or otherwise reimburse any Person for any Taxes (or
potential Taxes) imposed (or potentially imposed) pursuant to Section 409A of the Code.

 

(f) Neither Seller nor any ERISA Affiliate is a party to any Contract covering any Business Employee or Business Consultant that,
individually or collectively, could give rise to (or already has resulted in) the payment of any amount or provision of any benefit
(including accelerated vesting) that could constitute an “excess parachute payment” within the meaning of Section
280G of the Code or subject to an excise tax under Section 4999 of the Code. Seller does not have any obligation to gross up,
indemnify or otherwise reimburse any person for any Taxes (or potential Taxes) imposed (or potentially imposed) pursuant to Section
4999 of the Code.

 

Section
3.19. Affiliate Transactions. Except as set forth on Section 3.19 of the Disclosure Schedule (collectively, the
“Affiliate Agreements”), no Affiliate of Seller, no current or former member, stockholder, officer,
director, manager or employee of Seller or any Affiliate of Seller, and no immediate family member of any of the foregoing:
(a) is a party to any Contract or ongoing transaction or business relationship with, or has any claim or right against,
Seller relating to any of the Business, the Transferred Assets or the Assumed Liabilities; (b) has any ownership interest in
any of the Transferred Assets; (c) provides material services to the Business (other than employment by Seller); or (d) has
borrowed money from or loaned money to Seller in connection with the Business that is currently outstanding.

 

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Section
3.20. Insurance.

 

(a) Section
3.20(a) of the Disclosure Schedule sets forth a complete and accurate list of all policies or binders of fire, liability,
product liability, umbrella liability, real and personal property, workers’ compensation, vehicular, fiduciary liability
and other forms of insurance maintained by or on behalf of Seller and relating to the Business, the Business Employees, the Transferred
Assets or the Assumed Liabilities (collectively, the “Insurance Policies”), setting forth, in respect of each
such Insurance Policy: (i) the policy number; (ii) the insurer, (iii) policy limits and deductibles; (iv) the dates of premiums
or payments due thereunder; and (v) the expiration date.

 

(b) The Insurance Policies are of the type and in the amounts customarily carried by Persons conducting a business similar to the
Business and meet all contractual and statutory requirements to which Seller is subject with respect to Business and the Transferred
Assets.

 

(c) With respect to each Insurance Policy: (i) such Insurance Policy is in full force and effect and enforceable in accordance with
its terms; (ii) Seller and, to the Knowledge of Seller, each other party to such Insurance Policy are in compliance with the terms
and provisions of such Insurance Policy in all material respects; (iii) all premiums for such Insurance Policy have been paid
in full; and (iv) no limits of liability or coverage for such Insurance Policy have been exhausted or depleted by more than fifty
percent (50%).

 

(d) Neither Seller nor, to the Knowledge of Seller, any other Person has received any notice or other communication (in writing or
otherwise) regarding any actual or possible cancellation or termination of, premium increase with respect to, or alteration of
coverage under, any such Insurance Policy.

 

(e) Section
3.20(e) of the Disclosure Schedule sets forth: (i) a list of all pending claims (including any workers’ compensation
claim) under any Insurance Policy; and (ii) the claims history for Seller to the extent involving claims in excess of $10,000.
All claims, incidents, wrongful acts or occurrences for which Seller reasonably expects to obtain coverage under any Insurance
Policy have been reported to the applicable underwriter in accordance with the requirements of the applicable Insurance Policy.
There is no claim pending under any Insurance Policy as to which coverage has been questioned, denied or disputed or in respect
of which there is an outstanding reservation of rights.

 

Section
3.21. Customers and Suppliers.

 

(a) Section
3.21(a) of the Disclosure Schedule identifies, with respect to the Business, the revenues received from each of the customers
(based on revenues or potential revenues) of the Business that accounted for ten percent (10%) or greater of Seller’s revenues
during year ended December 31, 2019 (collectively, the “Material Customers”). Except as set forth on Schedule
3.21(a), Seller has not received any notice or other communication (in writing or otherwise) indicating that any Material
Customer: (A) intends or expects to cease dealing with Seller with respect to the Business; (B) will otherwise reduce the volume
of business transacted with Seller with respect to the Business below historical levels; (C) is dissatisfied in any material respect
with any product or service of the Business or with its business relationship with Seller with respect to the Business; or (D)
otherwise intends to change other material terms of its business relationship with Seller with respect to the Business.

 

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(b) Section
3.21(b) of the Disclosure Schedule identifies, with respect to the Business, the ten (10) suppliers (excluding accounting
or legal services) that accounted for the largest dollar volume of purchases during year ended December 31, 2019 (collectively,
the “Material Suppliers”). Except as set forth on Schedule 3.21(b), Seller has not received any notice
or other communication (in writing or otherwise) indicating that any Material Supplier: (A) intends or expects to cease supplying
goods or services to the Business; (B) will otherwise reduce the volume of business transacted with Seller with respect to the
Business below historical levels; (C) intends to discontinue the relevant portion of its business; or (D) otherwise intends to
terminate or materially modify its relationship with the Business.

 

Section
3.22. Unlawful Payments.

 

(a) Neither Seller nor any Affiliate, director, officer or employee of Seller, nor, to the Knowledge of Seller, any agent, representative,
sales intermediary or other third party acting on behalf of Seller, in any way relating to the Business: (i) has taken any action
in violation of any applicable anticorruption Law, including the U.S. Foreign Corrupt Practices Act (15 U.S.C. § 78 dd-1
et seq.); or (ii) has corruptly, offered, paid, given, promised to pay or give or authorized the payment or gift of anything of
value, directly or indirectly through third parties, to any Public Official or other Person, for purposes of: (A) influencing
any act or decision of any Public Official or other Person in his, her or its official capacity; (B) inducing such Public Official
or other Person to do or omit to do any act in violation of his, her or its lawful duty; (C) securing any improper advantage;
or (D) inducing such Public Official or other person or entity to use his, her or its influence with a government, Governmental
Entity, commercial enterprise owned or controlled by any government (including state owned or controlled facilities), or any other
Person in order to assist the Business, or any Person related in any way to the Business, in obtaining or retaining business or
directing any business to any Person.

 

(b) There are no pending or, to the Knowledge of Seller, threatened claims against Seller, in respect of the Business, with respect
to violations of any applicable anticorruption Law, including the U.S. Foreign Corrupt Practices Act (15 U.S.C. § 78 dd-1
et seq.).

 

Section
3.23. Anti-Takeover Laws. Prior to the date of this Agreement, Parent has taken all actions necessary to exempt under
or make not subject to (a) the provisions of Section 203 of the DGCL, (b)  any other state takeover law or state law, or
(c) provisions of Parent's Certificate of Incorporation that purports to limit or restrict business combinations or the
ability to acquire or vote shares: (i) the execution and delivery of this Agreement to be executed concurrently herewith and
(ii) the transactions contemplated hereby. Except as disclosed in Section 3.23 of Seller's Disclosure Schedule, Parent
does not have any stockholder or shareholder rights agreement or any similar type of anti-takeover agreement.

 

Section
3.24. Information Supplied. The Proxy Statement will not, at the time the Proxy Statement is mailed to Parent's stockholders
or, at the time of Parent's Stockholders' Meeting, contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
they are made, not misleading. The Proxy Statement will comply as to form in all material respects with all applicable Legal Requirements,
including the Exchange Act and the rules and regulations thereunder. No representation or warranty is made by Parent with respect
to statements made or incorporated by reference therein based on information supplied by Buyer specifically for inclusion or incorporation
by reference therein.

 

Section
3.25. Disclosure. Seller has disclosed to Buyer all facts material to the relationship of Seller with the customers
and suppliers of the Business and the operations, prospects, results of operations, cash flows and condition (financial or
otherwise) of the Business. No representation or warranty or other statement made by Seller in this Agreement, the Disclosure
Schedule, Seller’s filings with the SEC or any certificate or other document delivered hereunder contains any untrue
statement of a material fact or omits any material fact necessary to make the statements contained herein or therein not
misleading.

 

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ARTICLE
4

REPRESENTATIONS
AND WARRANTIES OF BUYER

 

Buyer
hereby represents and warrants to Seller as of the date of this Agreement and as of the Closing Date as follows:

 

Section
4.1. Organization and Qualification. Buyer is a limited liability company duly formed, validly existing and in good standing
under the Laws of the State of Delaware and has the requisite limited liability company power and authority to own, operate or
lease all of the properties and assets that it purports to own, operate or lease and to carry on its business as it is now being
conducted. Buyer is duly licensed or qualified to do business and is in good standing (with respect to jurisdictions that recognize
such concept) in each jurisdiction in which the nature of the business conducted by it or the character or location of the properties
and assets owned, operated or leased by it makes such licensing or qualification necessary, except where the failure to be so
licensed or qualified or in good standing would not reasonably be expected to have, when aggregated with all other such failures,
a material adverse effect on Buyer’s ability to perform its obligations under this Agreement or prevent the consummation
of the transactions contemplated hereby (a “Buyer Material Adverse Effect”).

 

Section
4.2. Authority. Buyer has all necessary power and authority to execute and deliver this Agreement and the Ancillary Agreements
to which it is a party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby
and thereby. The execution and delivery by Buyer of this Agreement and the Ancillary Agreements to which it is a party, the performance
by Buyer of its obligations hereunder and thereunder, and the consummation by Buyer of the transactions contemplated hereby and
thereby, have been duly and validly authorized by all necessary action on the part of Buyer, and no other or further action or
proceeding on the part of Buyer (or its equity holders) is necessary to authorize the execution and delivery by Buyer of this
Agreement and the Ancillary Agreements to which it is a party, the performance by Buyer of its obligations hereunder and thereunder,
and the consummation by Buyer of the transactions contemplated hereby and thereby. This Agreement and the Ancillary Agreements
to which Buyer is a party have been duly executed and delivered by Buyer and, assuming the due and valid authorization, execution
and delivery of this Agreement and such Ancillary Agreements by each other party thereto, constitute a valid and binding obligation
of Buyer, enforceable against it in accordance with their terms, except that such enforceability: (a) may be limited by bankruptcy,
insolvency, moratorium or other similar Laws affecting or relating to the enforcement of creditors’ rights generally; and
(b) is subject to general principles of equity.

 

Section
4.3. Consents and Approvals; No Violations.

 

(a) No Consent of, or filing, declaration or registration with, or notice to any Governmental Entity, which has not been received
or made, is required to be obtained or made by Buyer for the execution and delivery by Buyer of this Agreement and the Ancillary
Agreements to which Buyer is a party or the consummation by Buyer of the transactions contemplated hereby or thereby, other than
such Consents, filings, declarations, registrations or notices that, if not obtained or made, would not reasonably be expected
to have, individually or in the aggregate, a Buyer Material Adverse Effect.

 

    38

     

    

 

(b) The execution and delivery by Buyer of this Agreement and the Ancillary Agreements to which Buyer is a party, the performance
by Buyer of its obligations hereunder and thereunder, and the consummation by Buyer of the transactions contemplated hereby and
thereby, do not and will not: (i) conflict with or violate any provision of the organizational or governing documents of Buyer;
(ii) conflict with or result in a violation or breach of any Law applicable to Buyer or any of its properties or assets; (iii)
conflict with, result in a violation or breach of, result in the loss of any material benefit under, constitute a default (or
an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination, modification
or cancellation of or a right of termination, modification or cancellation under, or accelerate the performance required under,
any Contract to which Buyer is a party, or by which Buyer or any of its properties or assets is bound; or (iv) result in the creation
of any Lien upon any of the properties or assets of Buyer, except, in the case of clauses (ii), (iii) and (iv) above, for such
conflicts, violations, breaches, losses of benefits, defaults, events, terminations, rights of termination or cancellation, accelerations
or Lien creations as would not reasonably be expected to have, individually or in the aggregate, a Buyer Material Adverse Effect.

 

Section
4.4. Litigation. There is no Proceeding pending or, to the Knowledge of Buyer, threatened against or by Buyer that challenges
or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No event has occurred, and to
the Knowledge of the Buyer no circumstance exists, in each case that is reasonably likely to result in the commencement of any
such Proceeding.

 

Section
4.5. Disclosure. No representation or warranty or other statement made by Buyer in this Agreement, the Disclosure Schedule
or any certificate or other document delivered hereunder contains any untrue statement of a material fact or omits any material
fact necessary to make the statements contained herein or therein not misleading.

 

Section
4.6. Brokers. None of Buyer nor any of its Affiliates, nor any of its officers or directors on behalf of Buyer or any of
its Affiliates, has employed any financial advisor, broker or finder in a manner that would result in any liability for Seller
for any broker’s fees, commissions or finder’s fees in connection with any of the transactions contemplated by this
Agreement if the Closing does not occur.

 

Section
4.7. Funding. Buyer has, or shall have at the Closing, sufficient cash, available lines of credit or other sources of immediately
available funds to permit Buyer to make payment of all amounts required to be paid by it hereunder at the Closing and to pay all
Assumed Liabilities.

 

ARTICLE
5

PRE-CLOSING
COVENANTS

 

Section
5.1. Conduct of Business.

 

(a) During
the period from the date of this Agreement to the earlier of the Closing and the date this Agreement is terminated in
accordance with Article 10 (the “Interim Period”), except: (A)  as set forth in Section
5.1(a) of the Disclosure Schedule; (B) as expressly required by this Agreement; or (C) with the prior written consent of
Buyer, Seller shall:

 

(i) carry
on the Business in the Ordinary Course of Business;

 

(ii)
maintain and preserve intact the Business, Seller’s current organization, and the operations and franchises of the
Business;

 

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(iii) except as set forth on Schedule 5.1, not take action to terminate the services of the present Business Employees and Business
Consultants;

 

(iv) not take action to terminate the rights, franchises and goodwill of the customers, suppliers, lenders, regulators and others
having relationships with the Business;

 

(v) except as set forth on Schedule 5.1, pay or otherwise satisfy in the Ordinary Course of Business (but in any event
when due) all of its Liabilities and Taxes; and

 

(vi) maintain the Transferred Assets in substantially the same condition as they are on the date of this Agreement, subject to ordinary
wear and tear.

 

(b) Without
limiting the generality of Section 5.1(a), during the Interim Period, except: (A) as set forth in Section
5.1(b) of the Disclosure Schedule; (B) as expressly required by this Agreement; or (C) with the prior written consent of
Buyer, Seller (meaning, Parent and each Subsidiary) shall not:

 

(i) amend its organizational or governing documents in any manner which would reasonably be expected to adversely affect the transactions
contemplated hereby other than to increase shares designated as Series C Preferred Stock;

 

(ii) commence or terminate, or make any material change in, any line of business included in the Business;

 

(iii) sell, lease, license, transfer, abandon, encumber, incur, or suffer to exist any Lien (other than Permitted Lien, subordinated
debt holder liens and Perceptive lien), or fail to maintain, or otherwise dispose of, any Transferred Assets, other than the sale
of Inventory in the Ordinary Course of Business or obsolete equipment not needed in the Business;

 

(iv) incur any Liability that would be an Assumed Liability (other than Liabilities incurred in the Ordinary Course of Business);

 

(v) mortgage, pledge or subject to any Lien any portion of the Transferred Assets other than the Perceptive lien, the subordinated
debt holder liens and Permitted Liens;

 

(vi) acquire, by purchase of all or substantially all of the assets, purchase of stock, merger, consolidation or otherwise, any business
that would constitute Transferred Assets;

 

(vii) make any capital expenditures or commitments therefor with respect to the Business, except in the Ordinary Course of Business;

 

(viii) make any loan, advance or capital contribution to, or investment in, any Person in connection with the Business, other than advancement
of expenses to Business Employees in the Ordinary Course of Business;

 

(ix) (A)
create or incur, or offer, place or arrange, any Indebtedness with respect to the Business or the Transferred Assets other
than in the Ordinary Course of Business or for payment of expenses incurred in the Ordinary Course of Business; (B) cancel,
release or assign any Indebtedness owed to Seller with respect to the Business or the Transferred Assets; or (C) assume,
guarantee or endorse, or otherwise become responsible for, the indebtedness of any other Person in connection with the
Business or the Transferred Assets;

 

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(x) except as required by applicable Law or the terms of any Employee Plan in effect as of the date hereof: (A) increase the compensation
payable or to become payable to, or change any of the benefits provided or to be provided to, any Business Employee or Business
Consultant; (B) grant, commit to pay or increase the rate or terms of any retention, severance, change of control or termination
pay to any Business Employee or Business Consultant; (C) amend or accelerate the payment, right to payment, or vesting of any
compensation or benefits of any Business Employee or Business Consultant; (D) terminate, renew, modify or amend any existing,
or adopt, establish or enter into any new, Employee Plan or employment policy relating to vacation pay, sick pay, disability coverage
or severance pay, in each case with, for or in respect of any Business Employee or Business Consultant; or (E) hire any Person
to be an officer or an employee of the Business with a designation of “Vice President” or above;

 

(xi) implement or announce any plant closing, material reduction in labor force or mass lay-off with respect to the Business;

 

(xii) engage in any merger, consolidation, reorganization, recapitalization, complete or partial liquidation, dissolution or similar
transaction or file a petition in bankruptcy under any provision of federal or state bankruptcy Law or consent to the filing of
any bankruptcy petition against it under any similar Law;

 

(xiii) (A) sell, abandon, permit to lapse, fail to maintain, dispose of, license or transfer to any person any right to, or permit the
imposition of any Lien on, any Owned Intellectual Property (other than non-exclusive licenses granted in the Ordinary Course of
Business); (B) make any change to any Owned Intellectual Property, except handling any deadlines in the Ordinary Course of Business;
or (C) enter into any Contract with respect to Owned Intellectual Property;

 

(xiv) except
as required by GAAP or applicable Law, in each case with respect to the Business, the Transferred Assets or the Assumed
Liabilities: (A) make or change any Tax election; (B) change any annual Tax accounting period; (C) adopt or change any method
of Tax accounting; (D) file any amended Tax Return (or similar report filed by Seller); (E) enter into any Tax closing
agreement; (F)   settle or compromise any Tax claim or assessment; (G) surrender any right to claim a Tax refund,
offset or other reduction in liability; or (H) consent to any extension or waiver of the limitations period applicable to any
Tax claim or assessment;

 

(xv) except as required by GAAP, make any change in its accounting methodologies, practices, estimation techniques, assumptions, principles,
policies or procedures in connection with the Business;

 

(xvi) except in the Ordinary Course of Business: (A) modify the cash management activities of the Business (including the extension
of trade credit, the timing of, invoicing and collection of Accounts Receivable and the accrual and payment of payables and other
current Liabilities); or (B) modify the manner in which the Books and Records related to the Business are maintained;

 

(xvii) commence, pay, discharge, settle, release, waive or compromise any pending or threatened Proceeding relating to or affecting the
Business, the Transferred Assets or the Assumed Liabilities;

 

(xviii) (A)
except in the Ordinary Course of Business, enter into any Contract that, if in effect on the date hereof, would constitute a
Material Contract; (B) amend, modify, assign, convey, encumber, cancel or terminate any Assumed Contract (other than
terminations or expirations at the end of the stated term after the date hereof); (C) assign or otherwise transfer any rights
or claims with respect to, or waive any term of or default under, or any Liability owing to Seller under, any Assumed
Contract; or (D) take any action or fail to act, when such action or failure to act will cause a termination of or material
breach of or default under any Assumed Contract;

 

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(xix) enter into any Contract which contains a provision that would require the Consent of, or a payment to, the other party or parties
thereto in connection with the transactions contemplated by this Agreement;

 

(xx) amend,
terminate or fail to renew any of the Insurance Policies; or

 

(xxi) enter into any Contract, or otherwise agree or commit, to take, or authorize, recommend or propose, in writing or otherwise, any
of the actions prohibited by this Section 5.1(b).

 

Section
5.2. Reasonable Best Efforts; Notices and Consents; Proxy Statement.

 

(a) General.
Upon the terms and subject to the conditions set forth in this Agreement, except as otherwise provided in this Agreement, and
without limiting the obligations of Seller and Buyer under Section 5.2(c), Seller and Buyer agree to cooperate with each
other and to use (and to cause its Representatives to use) reasonable best efforts to take, or cause to be taken, all actions
and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective the transactions contemplated
by this Agreement as promptly as practicable after the date of this Agreement.

 

(b) Notices and Consents. Seller shall promptly prepare and file all necessary documentation, to effect all necessary applications,
notices, petitions, filings and other documents, and to obtain, as promptly as practicable after the date of this Agreement, all
Consents of Governmental Entities and other Persons necessary or advisable in connection with the consummation of the transactions
contemplated by this Agreement, including the Required Consents.

 

(c) Seller shall, as promptly as practicable following the date hereof, prepare and file with the SEC the Proxy Statement. Seller,
acting through the Seller Board shall include in the Proxy Statement, the recommendation of the Seller Board that the stockholders
of Seller approve the sale of the Transferred Assets in the Transaction (the “Seller Board Recommendation”).
Subject to Section 5.5(d), the Seller Board shall not change or withdraw such recommendation without the prior written
consent of Buyer. No filing of, or amendment or supplement to, or correspondence to the SEC will be made by Seller without providing
Buyer with an opportunity to review and comment thereon. Seller will advise Buyer, promptly after it receives notice thereof,
of any request by the SEC for the amendment of the Proxy Statement or comments thereon and responses thereto or requests by the
SEC for additional information. If at any time prior to Seller's Stockholders’ Meeting any information relating to Seller
or Buyer, or any of their respective Affiliates, officers or directors, should be discovered by Seller or Buyer which should be
set forth in an amendment or supplement to the Proxy Statement, so that it would not include any misstatement of a material fact
or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading, the party which discovers such information shall promptly notify the other parties hereto and an appropriate
amendment or supplement describing such information shall be promptly filed with the SEC and, to the extent required by law, disseminated
to the stockholders of Seller.

 

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(d) Seller
shall, as promptly as practicable following the execution of this Agreement, duly call, give notice of and after the
requisite notice period, convene and hold a meeting of its stockholders for the purpose of approving the sale of the
Transferred Assets in the Transaction (the “Seller's Stockholders’ Meeting”). Subject to Section
5.5(d), Seller shall (i) use its best efforts to solicit from stockholders of Seller proxies in favor of adoption of this
Agreement and approval of the sale of the Transferred Assets for the Seller's Stockholders’ Meeting and (ii) recommend
to its stockholders the approval of the sale of the Transferred Assets in the Transaction, and not modify or withdraw such
recommendation.

 

(e) Buyer will furnish to Seller such data and information relating to it as Seller may reasonably request for the purpose of including
such data and information in the Proxy Statement and any amendments or supplements thereto used by Seller to obtain the stockholder
approval of holders of at least a majority of the voting securities of the sale of the Transferred Assets (the “Seller
Stockholder Approval”).

 

Section
5.3. Access to Information.

 

(a) During the Interim Period, Seller shall: (i) afford Buyer and its Representatives full and free access, during normal business
hours and upon reasonable notice, to the personnel, offices, properties (including the Leased Real Property), assets, Books and
Records, Contracts and other documents and data of or related to the Business or the Transferred Assets; (ii) furnish Buyer and
its Representatives with such financial, operating and other data and information related to the Business as Buyer or any of its
Representatives may reasonably request; and (iii) instruct their respective Representatives to cooperate with Buyer in its investigation
of the Business; provided, however, that such access shall not unreasonably interfere with the ongoing business
or operations of the Business.

 

(b) Notwithstanding anything to the contrary set forth in Section 5.3(a), during the Interim Period, Buyer and its Representatives
that sign the Seller’s standard confidentiality agreement may at any time enter during normal business hours into and upon
all or any portion of the properties of the Business (including the Leased Real Property) in order to investigate and assess,
as Buyer deems necessary or appropriate in its sole and absolute discretion, the environmental condition of such properties or
any business conducted thereat. Such investigation may include, but need not be limited to, the performance of soil and surface
or ground water sampling, monitoring, borings, or testing and any other tests, investigations, audits, assessments, studies, inspections
or other procedures relating to environmental conditions. Seller shall: (i) cooperate with Buyer and its Representatives in conducting
such investigation; (ii) allow Buyer and its Representatives full access to the properties related to the Business (including
the Leased Real Property), together with full permission to conduct such investigation; and (iii) provide to Buyer and its Representatives
all plans, soil or surface or ground water tests or reports, any environmental investigation results, reports or assessments previously
or contemporaneously conducted or prepared by or on behalf of, or in possession of or reasonably available to, Seller or any of
its Representatives, and all other information relating to environmental matters in respect of the properties related to the Business.

 

(c) Any information provided to or obtained by Buyer or its Representatives pursuant to Section 5.3(a) or Section 5.3(b) shall
be subject to the terms of, and the restrictions contained in, the Confidentiality Agreement.

 

Section
5.4. Notice of Certain Events.

 

(a) During
the Interim Period, Seller shall promptly notify Buyer in writing of: (i) any fact, circumstance, event or action the
existence, occurrence or taking of which has had, or could reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect; (ii) any breach of any representation, warranty, covenant or agreement of Seller contained in this
Agreement which, if not cured, could reasonably be expected to cause any of the conditions to Closing set forth in Article
7 not to be satisfied; (iii) any notice or other communication from any Person alleging that the consent of such Person
is or may be required in connection with the transactions contemplated by this Agreement; (iv) any notice or other
communication from any Governmental Entity in connection with the transactions contemplated by this Agreement; or (v) any
Proceeding commenced or, to the Knowledge of Seller, threatened against, relating to, involving or otherwise affecting the
Business, the Transferred Assets or the Assumed Liabilities that, if pending on the date of this Agreement, would have been
required to have been disclosed pursuant to Section 3.9 of this Agreement or that relates to the consummation of the
transactions contemplated by this Agreement.

 

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(b)
In no event shall the delivery of any notice by Seller pursuant to this Section 5.4: (i)  limit or otherwise
affect the rights, obligations, representations, warranties, covenants or agreements of Buyer or the conditions to the
obligations of Buyer and Seller under this Agreement; or (ii) be deemed to amend or supplement the Disclosure Schedule or
constitute an exception to any representation, warranty, covenant or agreement.

 

Section
5.5. Exclusive Dealing.

 

(a) During the Interim Period, Seller shall not take, and shall not authorize, encourage, permit or instruct any of its Representatives
to take, directly or indirectly, any action to: (a) solicit, initiate or knowingly encourage the making, submission or announcement
of any Acquisition Proposal from any Person (other than Buyer or its Representatives); (b) knowingly encourage, initiate, participate
in or engage in any discussions, negotiations or other communications regarding an Acquisition Proposal; (c) execute, enter into
or become bound by any letter of intent or other Contract with any Person (other than Buyer or its Representatives) relating to
or in connection with an Acquisition Proposal; (d) provide any non-public information to any Person (other than Buyer or its Representatives)
in response to an Acquisition Proposal; or (e) entertain or accept any Acquisition Proposal from, cooperate in any way with, or
facilitate or encourage any effort or attempt by any Person (other than Buyer or its Representatives) relating to an Acquisition
Proposal. Seller shall, and shall instruct its Representatives to, immediately cease and cause to be terminated all existing discussions,
conversations, negotiations and other communications with any Person conducted heretofore with respect to any Acquisition Proposal.
Within two (2) Business Days following the date hereof, Seller shall, or shall cause its Representatives to, instruct any such
Person to return or destroy all nonpublic information provided to such Person in connection with such Person’s consideration
of any Acquisition Proposal in accordance with the confidentiality agreements entered into between Seller and any such Person.

 

(b) Subject to Section 5.5(d) and Section 5.5(f) neither the Seller Board, nor any committee thereof, shall withdraw,
modify or qualify (or propose to withdraw, modify or qualify) the recommendation in favor of the sale of the Transferred Assets
to Buyer in any manner adverse to Buyer, or take any action or make any statement in connection with the Seller's Stockholder
Meeting inconsistent with such recommendation.

 

(c) Seller shall promptly (and in any event within twenty-four (24) hours of receipt thereof) notify Buyer orally and in writing of
any Acquisition Proposal that is received by Seller during the Interim Period, which notice shall include: (i) the identity of
the Person making or submitting such indication of interest, inquiry, proposal, offer or request, and the terms and conditions
thereof; and (ii) an accurate and complete copy of all written materials provided in connection with such Acquisition Proposal.

 

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(d) Notwithstanding the provisions of Section 5.5(a) or 5.5(b), prior to the receipt of Seller Stockholder Approval, Seller
may, in response to an unsolicited, bona fide written Acquisition Proposal from a Person (the “Potential Acquiror”)
which (i) the Seller Board determines in good faith, after consultation with its financial advisor and its outside legal counsel,
constitutes a Superior Proposal (and continues to constitute a Superior Proposal after taking into account any modifications proposed
by Buyer during any seven (7) Business Day period referenced below), or (ii) proposes greater value to Seller in financial terms
and the Seller Board in good faith concludes that such Acquisition Proposal could reasonably be expected to result in a Superior
Proposal, take the following actions (but only if and to the extent that the Seller Board concludes in good faith, following consultation
with its outside legal counsel, that such actions are necessary in order to comply with its fiduciary obligations under applicable
Law); provided, that Seller has first given Buyer written notice (including a copy of such Acquisition Proposal) that states that
Seller has received such Acquisition Proposal and otherwise includes the information required by Section 5.5(c) (the “Superior
Proposal Notice”):

 

(i) furnish nonpublic information to the Potential Acquiror and may enter into discussion or negotiate with the Potential Acquiror;
provided, that, (A) contemporaneously with furnishing any such nonpublic information to the Potential Acquiror, Seller gives Buyer
written notice of its intention to furnish nonpublic information and (2) Seller receives from the Potential Acquiror an executed
confidentiality agreement (in each case, the “Competing Confidentiality Agreement”) containing customary limitations
on the use and disclosure of all nonpublic written and oral information furnished to the Potential Acquiror on its behalf, the
material terms of which are no less favorable to the other party than the terms contained in the Confidentiality Agreement and
(B) contemporaneously with furnishing any such nonpublic information to the Potential Acquiror, Seller furnishes such nonpublic
information to Buyer (to the extent such nonpublic information has not previously been provided to Buyer); and

 

(ii)
engage in negotiations with the Potential Acquiror with respect to the Acquisition Proposal.

 

(e) For a period of not less than seven (7) Business Days after Buyer's receipt of each Superior Proposal Notice, Seller shall, if
requested by Buyer, negotiate in good faith with Buyer to amend this Agreement so that the Acquisition Proposal that constituted
a Superior Proposal no longer constitutes a Superior Proposal (a “Former Superior Proposal”); provided that
in the event the Acquisition Proposal as originally received by Seller indicates that the indicated transaction value is subject
to the Potential Acquiror's review of nonpublic information to be provided by Seller as contemplated by Section 5.5(d)(1), such
seven (7) Business Day negotiation period with Buyer shall not commence until the Potential Acquiror has provided a definitive
proposed purchase price following its review of such nonpublic information. Upon such amendment of this Agreement, the terms and
conditions of this Section 5.5 shall again apply to any inquiry or proposal made by any Person who withdraws a Superior Proposal
or who made a Former Superior Proposal (after withdrawal or after such time as their proposal is a Former Superior Proposal).

 

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(f) In response to the receipt of a Superior Proposal that has not been withdrawn and continues to constitute a Superior Proposal
after Seller’s compliance with Sections 5.5(c), (d) and (e), the Seller Board may withhold or withdraw the Seller
Board Recommendation and, in the case of a Superior Proposal that is a tender or exchange offer made directly to Parent's stockholders,
may recommend that its stockholders accept the tender or exchange offer (any of the foregoing actions, whether by the board of
directors of Seller or a committee thereof, a “Change of Recommendation”), if both of the following conditions
are met:

 

 (i)  the Seller Stockholder Approval shall not have been obtained; and

 

(ii) the Seller Board has concluded in good faith, following consultation with its outside legal counsel, that, in light of such Superior
Proposal, that such action is necessary in order to comply with its fiduciary obligations under applicable Law.

 

(g) Nothing contained in this Agreement shall prohibit Seller from taking and disclosing to its stockholders a position contemplated
by Rule 14d-9 or Rule 14e-2 promulgated under the Securities Exchange Act of 1934, as amended.

 

Section
5.6. Employees. Buyer agrees to make offers of employment to the Business Employees. Buyer’s offer shall provide
each Business Employee an election to receive cash from Buyer upon termination of employment with Seller in an amount equal to
value of the Business Employee’s accrued but unused paid time off or to transfer of up to 80 hours of paid time off to use
as an employee of Buyer (“ Rollover Vacation”). Business Employees will be offered the opportunity to transfer
401(k) balances to Buyer’s plan by distribution and rollover. Any Subsidiary that will no longer have employees upon completion
of the transactions contemplated hereby that intends to adopt resolutions to cease participation in Seller’s ongoing 401(k)
plan shall first provide notice of its intent to Buyer so that notices may be circulated to the Business Employees in a manner
consistent with Law and the terms of Seller’s plans.

 

Section
5.7. Termination of Affiliate Agreements. At or prior to the Closing, Seller shall terminate all Affiliate Agreements,
other than (a) agreements with respect to the issuance of Series C Preferred Stock (b) any Affiliate Agreement the
continuation of which Buyer has requested; and (c) any Affiliate Agreement which Buyer has approved in writing to not be so
terminated (collectively, the “Continuing Affiliate Agreements”).

 

ARTICLE
6

POST-CLOSING
COVENANTS

 

Section
6.1. Further Assurances; Additional Agreements.

 

(a) 
From time to time after the Closing, as and when requested by any party hereto, the other party hereto shall execute and
deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all
such further or other actions, and shall provide, or cause to be provided, all such further or other cooperation, in each
case as the requesting party may reasonably deem necessary or desirable to evidence and effectuate the transactions
contemplated by this Agreement, including, as required, to transfer or obtain Permits or provide regulatory notices. Without
limiting the generality of the foregoing, Seller agrees, from time to time after the Closing, at Buyer’s request, to
execute, acknowledge, and deliver to Buyer such other instruments of conveyance and transfer, and take such other actions and
execute and deliver such other documents, certifications, and further assurances, as Buyer may reasonably require in order to
vest more effectively in Buyer, or to put Buyer more fully in possession of, the Transferred Assets. Each party shall bear
its own costs and expenses incurred in complying with this Section 6.1(a).

  

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(b)
After the Closing, Seller shall promptly transfer or deliver to Buyer cash, checks (which shall be properly endorsed) or other
property that Seller may receive in respect of any deposit, prepaid expense, bill for services or other item that constitutes
part of the Transferred Assets or relates to the Assumed Liabilities. After the Closing, Buyer shall promptly transfer or deliver
to Seller cash, checks (which shall be properly endorsed) or other property that Buyer may receive in respect of any deposit,prepaid
expense, bill for services or other item that constitutes part of the Excluded Assets or relates to the Excluded Liabilities.
The removal of Excluded Assets, if any, by Seller from its facilities and other real property to be occupied by Buyer shall be
done in such manner as to avoid any damage to the facilities and other properties to be occupied by Buyer and any disruption of
the business operations to be conducted by Buyer after the Closing Date. Any damage to the Transferred Assets or to the facilities
resulting from such removal shall be promptly paid by Seller. Seller shall promptly reimburse Buyer for all costs and expenses,
if any, incurred by Buyer in connection with any Excluded Assets not removed by Seller.

 

(c)
After the Closing, Seller will reasonably cooperate with Buyer in its efforts to continue and maintain for the benefit of Buyer
those business relationships of Seller existing prior to the Closing and relating to the business to be operated by Buyer after
the Closing, including relationships with lessors, employees, regulatory authorities, licensors, customers, suppliers and others,
and Seller will work in good faith to attempt to satisfy the Excluded Liabilities in a manner that is not detrimental in any material
way to any of such relationships, but in no event shall Seller be obligated to pay amounts not legally due and owing to such parties.
Seller will refer to Buyer all inquiries relating to such business.

 

Section
6.2. General Release.

 

(a)
Notwithstanding anything contained herein to the contrary, effective as of the Closing, in consideration of the mutual agreements
contained herein, including the Purchase Price to be received by Seller, Seller, on behalf of itself and each of its past, present
and future Affiliates, firms, corporations, limited liability companies, partnerships, trusts, associations, organizations, Representatives,
investors, stockholders, members, partners, trustees, principals, consultants, contractors, family members, heirs, executors,
administrators, predecessors, successors and assigns (each, a “Releasing Party” and, collectively, the “Releasing
Parties”), hereby absolutely, unconditionally and irrevocably releases, acquits and forever discharges Buyer, its former,
present and future Affiliates, parent and subsidiary companies, joint ventures, predecessors, successors and assigns, and their
respective former, present and future Representatives, investors, stockholders, members, partners, insurers and indemnitees (collectively,
the “Released Parties”) and the Business and the Transferred Assets of and from any and all manner of action
or inaction, cause or causes of action, Proceedings, Liens, Contracts, promises, Liabilities, Damages (whether for compensatory,
special, incidental or punitive Damages, equitable relief or otherwise), losses, fees, costs or expenses, of any kind or nature
whatsoever, past, present or future, at law, in equity or otherwise (including with respect to conduct which is negligent, grossly
negligent, willful, intentional, with or without malice, or a breach of any duty, Law or rule), whether known or unknown, whether
fixed or contingent, whether concealed or hidden, whether disclosed or undisclosed, whether liquidated or unliquidated, whether
foreseeable or unforeseeable, whether anticipated or unanticipated, whether suspected or unsuspected, which such Releasing Parties,
or any of them, ever have had or ever in the future may have against the Released Parties, or any of them, the Business or the
Transferred Assets for, upon or by reason of any act, event, omission, matter or cause arising from or related to the Business,
in each case arising at any time at or prior to the Closing (the “Released Claims”); provided, however,
that the foregoing release shall not release, impair or diminish, and the term “Released Claims” shall not include,
in any respect any rights of Seller under this Agreement or any Ancillary Agreement.

 

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(b)
Without limiting the generality of Section 6.2(a), with respect to the Released Claims, Seller, on behalf of itself and
each Releasing Party, hereby expressly waives all rights under any Law or common law principle in any applicable jurisdiction
prohibiting or restricting the waiver of unknown claims. Notwithstanding any such Law or common law principle in any applicable
jurisdiction, and for the purpose of implementing a full and complete release and discharge of the Released Parties, Seller, on
behalf of itself and each Releasing Party, expressly acknowledges that the foregoing release is intended to include in its effect
all claims which Seller or any Releasing Party does not know or suspect to exist in his, her or its favor against any of the Released
Parties (including unknown and contingent claims), and that the foregoing release expressly contemplates the extinguishment of
all such claims (except to the extent expressly set forth herein.

 

(c)
Seller, on behalf of itself and each Releasing Party, acknowledges that it may hereafter discover facts in addition to or different
from those which it now knows or believes to be true with respect to the subject matter of the Released Claims, but Seller, on
behalf of itself and each Releasing Party, intends to and, by operation of this Agreement shall have, fully, finally and forever
settled and released any and all Released Claims without regard to the subsequent discovery of existence of such different or
additional facts.

 

(d)
Seller, on behalf of itself and each Releasing Party, represents, warrants, covenants and agrees that such Releasing Party has
not and will not assign or transfer any Released Claim or possible Released Claim against any Released Party. Seller, on behalf
of itself and each Releasing Party, agrees to indemnify and hold the Released Parties harmless from any Liabilities, Damages,
costs, expenses and attorneys’ fees arising as a result of any such assignment or transfer.

 

(e)
Seller, on behalf of itself and each Releasing Party, covenants and agrees not to, and agrees to cause its Affiliates not to,
whether in his, her or its own capacity, as successor, by reason of assignment or otherwise, assert, commence, institute or join
in, or assist or encourage any third party in asserting, commencing, instituting or joining in, any Proceeding of any kind whatsoever,
in law or equity, in each case against the Released Parties, or any of them, with respect to any Released Claims. Seller acknowledges
that the foregoing release was separately bargained for and is a key element of this Agreement.

 

Section
6.3. Use of Names. From and after the Closing Date, Parent and the relevant Subsidiaries shall not, and shall cause its
Affiliates not to, use any words or terms (in any combination) that are identical or confusingly similar to, or a colorable imitation
or dilutive of “Icagen” and the other words and terms set forth in Section 6.3 of the Disclosure Schedule in
connection with Seller’s or its Affiliates’ offering, marketing or selling of any products or services. The Proxy
Statement shall request any necessary approval to amend the certificate of incorporation to effect the change in Parent’s
name. The Transition Services Agreement shall provide for Seller’s use of materials containing the Icagen name for a limited
period of time following Closing, and any necessary email forwarding.

 

Section
6.4. Payment of Liabilities. From and after the Closing, Seller shall: (a) pay or otherwise satisfy in the Ordinary Course
of Business (but in any event when due) all of its material Liabilities and Taxes; and (b) make payment and/or adequate provision
for the payment and/or establish adequate reserves for the payment, in full, of all of the material and known Excluded Liabilities,
it being understood that this Section 6.4 shall not be construed to cover any of the Assumed Liabilities.

 

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Section
6.5. Non-Competition; Non-Solicitation; Non-Disparagement.

 

(a)
For a period commencing on the Closing Date and ending on (i) with respect to the officers and directors of Seller, the one year
anniversary of the Closing Date and (ii) with respect to of Seller and the Subsidiaries, (x) the five (5) year anniversary of
the Closing Date or (y), if any Revenue Payments have been made under the Earnout before such five (5) year anniversary, then
ending on December 31, 2027 (in each case, as applicable, the “Restricted Period”), Seller (or such officers
and directors, as applicable) shall not, and shall not permit any of its Affiliates (including Icagen-T) to, directly or indirectly:
(i) engage in, or assist others in engaging (whether through employment, consultation, advisory services, representation on a
board of directors or other similar governing body or by any financial or other investment) in the Business in the Territory;
(ii) have an interest in any Person that engages directly or indirectly in the Business in the Territory in any capacity, including
as a partner, stockholder, member, employee, principal, agent, trustee or consultant; or (iii) cause, induce or encourage any
actual or prospective client, customer, supplier, licensee, licensor or distributor of the Business (including any existing or
former client, customer, supplier, licensee, licensor or distributor of Seller and any Person that becomes a client, customer,
supplier, licensee, licensor or distributor of the Business after the Closing), or any other Person who has a material business
relationship with the Business, to terminate or modify any such actual or prospective relationship. Notwithstanding the foregoing,
Seller may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange
if Seller is not a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly,
own five percent (5%) or more of any class of securities of such Person, and conduct the business currently operated by Icagen-T,
Inc.

 

(b)
During the Restricted Period, Seller shall not, and shall not permit any of its Affiliates to, directly or indirectly, solicit
(except pursuant to a general solicitation which is not directed specifically to any Hired Employee) or hire any Hired Employee,
or encourage any Hired Employee to leave such employment or hire any Hired Employee who has left such employment; provided,
however, that nothing in this Section 6.5(b) shall prevent Seller or any Affiliate of Seller from hiring any employee
whose employment has been terminated by Buyer without cause or who responds to a general employment advertisement placed by Seller
or an Affiliate.

 

(c)
During the Restricted Period, Seller shall not, and shall not permit any of its Affiliates to, directly or indirectly, solicit
or entice, or attempt to solicit or entice, any clients, customers, suppliers, vendors, licensees, licensors or distributors of
the Business or potential clients, customers, suppliers, vendors, licensees, licensors or distributors of the Business for purposes
of diverting their business or services from the Business.

 

(d)
Seller agrees that it will not make or publish, verbally or in writing, any statements concerning the Business, Buyer or any of
its Affiliates or any of their respective Representatives which statements are or reasonably may be construed as being injurious
or inimical to the best interests of the Business, Buyer or any of its Affiliates or any of their respective Representatives,
including statements alleging that the Business, Buyer or any of its Affiliates or any of their respective Representatives have
acted improperly, illegally or unethically or have engaged in business practices which are improper, illegal or unethical; provided,
however, that such restrictions shall not apply to any confidential communications with any Governmental Entity (including
communications made in the course of any governmental investigation). Buyer agrees that it will not make or publish, verbally
or in writing, any statements concerning Seller or any of its Affiliates or any of their respective Representatives which statements
are or reasonably may be construed as being injurious or inimical to the best interests of Seller or any of its Affiliates or
any of their respective Representatives, including statements alleging that the Seller or any of its Affiliates or any of their
respective Representatives have acted improperly, illegally or unethically or have engaged in business practices which are improper,
illegal or unethical; provided, however, that such restrictions shall not apply to any confidential communications
with any Governmental Entity (including communications made in the course of any governmental investigation).

 

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(e)
If Seller or Buyer breaches, or threatens to commit a breach of, any of the provisions of this Section 6.5, the non-breaching
Party shall have the following rights and remedies not subject to any limitations under Article 8, each of which rights
and remedies shall be independent of the others and severally enforceable, and each of which is in addition to, and not in lieu
of, any other rights and remedies available to the non-breaching Party under law or in equity:

 

(i)
the right and remedy to have such provision specifically enforced by any court having jurisdiction, it being acknowledged and
agreed that any such breach or threatened breach may cause irreparable injury to the non-breaching Party and that money damages
may not provide an adequate remedy to the non-breaching Party; and

 

(ii)
the right and remedy to recover from the breaching Party all monetary damages suffered by the non-breaching Party, as the case
may be, as the result of any acts or omissions constituting a breach of this Section 6.5.

 

(f)
Seller acknowledges that the restrictions contained in this Section 6.5 (i) are reasonable and necessary to protect the
legitimate interests of Buyer and the goodwill, customer relationships, and Intellectual Property Rights purchased by Buyer and
(ii) constitute a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated hereby.
In the event that any covenant contained in this Section 6.5 should ever be adjudicated to exceed the time, geographic,
product or service, or other limitations permitted by applicable Law in any jurisdiction, then any court is expressly empowered
to reform such covenant, and such covenant shall be deemed reformed, in such jurisdiction to the maximum time, geographic, product
or service, or other limitations permitted by applicable Law. The covenants contained in this Section 6.5 and each provision
hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision
as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

 

Section
6.6. Post-Closing Confidentiality.

 

(a)
From and after the Closing, Seller shall, and shall cause its Affiliates, including Icagen-T, to, and shall instruct its and their
respective Representatives to, hold in confidence any and all confidential, proprietary and non-public information and materials,
whether in written, verbal, graphic or other form, concerning Buyer, its Affiliates, the Business or the Transferred Assets (collectively,
“Business Confidential Information”), except that Seller shall not have any obligation under this Section
6.6 with respect to any Business Confidential Information that (i) after the date of this Agreement becomes generally available
to the public other than through a breach by Seller, any of its Affiliates or any of its or their respective Representatives of
their respective obligations under this Section 6.6, or (ii) is provided to Seller or any of its Affiliates by a third
party that was not known to the receiving party to be bound by any duty of confidentiality to Buyer.

 

(b)
From and after the Closing, Seller shall not, and shall cause its Affiliates not to, and shall instruct its and their respective
Representatives not to, use any Business Confidential Information except as permitted by Section 6.6(a) above or as expressly
authorized in writing by Buyer. Seller shall, and shall cause its Affiliates to, and shall instruct its and their respective Representatives
to, take the same degree of care to protect the Business Confidential Information that such Person uses to protect its own trade
secrets and confidential information of a similar nature, which shall be no less than a reasonable degree of care.

 

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(c)
Notwithstanding the foregoing, Seller shall not be in breach of this Section 6.6 as a result of any disclosure of
Business Confidential Information that is required by applicable Law or that is required by any Governmental Entity or under
any subpoena, civil investigative demand or other similar process by a court of competent jurisdiction having jurisdiction
over Seller; provided, however, that Seller shall, if legally permitted, give advance notice of such compelled
disclosure to Buyer, and shall cooperate with Buyer in connection with any efforts to prevent or limit the scope of such
disclosure; and provided further, that Seller shall disclose only that portion of such Business Confidential
Information which Seller is advised by its counsel is legally required to be disclosed.

 

(d)
Seller agrees to accept responsibility for any breach of this Section 6.6 by any of its Affiliates or any of its or its
Affiliates’ respective Representatives.

 

(e)
From and after the Closing, Buyer shall, and shall cause its Affiliates to, and shall instruct its and their respective Representatives
to, hold in confidence any and all confidential, proprietary and non-public information and materials, whether in written, verbal,
graphic or other form, concerning Seller other than the Business and the Transferred Assets, its Affiliates, its debt obligations
(collectively, “Seller Confidential Information”), except that Buyer shall not have any obligation under this
Section 6.6 with respect to any Seller Confidential Information that (i) after the date of this Agreement becomes generally
available to the public other than through a breach by Buyer, any of its Affiliates or any of its or their respective Representatives
of their respective obligations under this Section 6.6 or (ii) is provided to Buyer or any of its Affiliates by a third
party that was not known to the receiving party to be bound by any duty of confidentiality to Seller.

 

(f)
From and after the Closing, Buyer shall not, and shall cause its Affiliates not to, and shall instruct its and their respective
Representatives not to, use any Seller Confidential Information except as permitted by Section 6.6(e) above or as expressly authorized
in writing by Seller. Buyer shall, and shall cause its Affiliates to, and shall instruct its and their respective Representatives
to, take the same degree of care to protect the Seller Confidential Information that such Person uses to protect its own trade
secrets and confidential information of a similar nature, which shall be no less than a reasonable degree of care.

 

(g)
Notwithstanding the foregoing, Buyer shall not be in breach of this Section 6.6 as a result of any disclosure of Seller
Confidential Information that is required by applicable Law or that is required by any Governmental Entity or under any subpoena,
civil investigative demand or other similar process by a court of competent jurisdiction having jurisdiction over Buyer; provided,
however, that Buyer shall, if legally permitted, give advance notice of such compelled disclosure to Seller, and shall
cooperate with Seller in connection with any efforts to prevent or limit the scope of such disclosure; and provided further,
that Buyer shall disclose only that portion of such Seller Confidential Information which Buyer is advised by its counsel is legally
required to be disclosed.

 

(h)
Buyer agrees to accept responsibility for any breach of this Section 6.6 by any of its Affiliates or any of its or its
Affiliates’ respective Representatives.

 

Section
6.7. Tucson Office Equipment. In the event an employee of Parent or Icagen-T accepts an offer from Buyer to relocate to
North Carolina, any mobile device or computer used by such employee in the performance of the employee’s job and that is
property of Parent or Icagen-T shall be treated as an additional Transferred Asset and may be used by Buyer.

 

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ARTICLE
7

CONDITIONS
TO CLOSING

 

Section
7.1. Conditions to Obligations of Buyer. The obligations of Buyer to consummate the transactions contemplated by this
Agreement shall be subject to the satisfaction, at or prior to the Closing, of each of the following conditions, any or all
of which may be waived, in whole or in part, by Buyer:

 

(a)
Representations and Warranties. Each of the representations and warranties made by Seller in Sections 3.1 (Organization
and Qualification), 3.2 (Authority), 3.6 (Assets; Employees), and 3.13 (Brokers), and each of the representations
and warranties made by Seller in Article 3 of this Agreement that are qualified by materiality (including by a Material
Adverse Effect qualifier) shall be true and correct in all respects, and each of the other representations and warranties made
by Seller in Article 3 of this Agreement shall be true and correct in all material respects, in each case at and as of
the date of this Agreement and at and as of the Closing as though such representation or warranty was made at and as of such time,
except for those representations and warranties that address matters as of a particular date (in which case such representations
and warranties shall be true and correct in the manner set forth in this Section 7.1(a) as of such particular date).

 

(b)
Performance of Covenants. Seller shall have duly performed and complied in all material respects with all covenants, obligations
and agreements required by this Agreement to be performed or complied with by Seller at or prior to the Closing.

 

(c)
No Material Adverse Effect. Since the date of this Agreement, there shall not have occurred any Material Adverse Effect.

 

(d)
Certificate. Buyer shall have received a certificate signed by Seller, dated the Closing Date, to the effect that the conditions
set forth in Sections 7.1(a), (b), (c) and (d) have been satisfied.

 

(e)
Liens. All Liens on the Transferred Assets, other than those associated with Repaid Indebtedness and Permitted Liens, shall
have been released.

 

(f)
Absence of Illegality; No Proceedings.

 

(i)
No Law shall have been issued, enacted or promulgated by any Governmental Entity of competent jurisdiction and remain in effect
that makes consummation of the transactions contemplated by this Agreement illegal or otherwise precludes, restrains, enjoins
or prohibits the consummation of the transactions contemplated by this Agreement.

 

(ii)
No Proceeding shall have been filed in any court of competent jurisdiction seeking to restrain, materially delay or prohibit the
consummation of any of the transactions contemplated by this Agreement nor shall any such Proceeding have been overtly threatened
by any Governmental Entity.

 

(g)
Employees. At least ninety percent (90%) of the Business Employees (but in any event each of the persons listed on Schedule
7.1(g)) who shall have received offers of post-Closing employment by Buyer or an Affiliate of Buyer,: (i) shall have accepted
offers of employment with Buyer or such Affiliate of Buyer, as the case may be, to commence following the Closing and shall have
continued to be employed by Seller until the Closing; and (ii) shall not have (x) rescinded their acceptance of such offers, (y)
given any notice or other indication that they are not willing or otherwise do not intend to be employed by Buyer or such Affiliate
of Buyer, as the case may be, following the Closing, or (z) refused or given any indication that they are not willing or otherwise
do not intend to execute and deliver to Buyer or such Affiliate of Buyer, as the case may be, Buyer’s standard forms of
confidentiality agreement and/or invention assignment agreement and associated schedules and statements without amendment or modification
thereto in any substantive respect.

 

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(h)
Closing Deliveries. Seller shall have made, or stand ready at the Closing to make, the deliveries required to be made by
Seller pursuant to Section 2.7(a).

 

Section
7.2. Conditions to Obligation of Seller. The obligations of Seller to consummate the transactions contemplated by this
Agreement shall be subject to the satisfaction, at or prior to the Closing, of each of the following conditions, any or all of
which may be waived, in whole or in part, by Seller:

 

(a)
Representations and Warranties. Each of the representations and warranties made by Buyer in Sections 4.1 (Organization
and Qualification), 4.2 (Authority), and 4.4 (Brokers), of this Agreement and each of the representations and warranties
made by Buyer in Article 4 of this Agreement that are qualified by materiality shall be true and correct in all respects,
and each of the other representations and warranties made by Buyer in Article 4 of this Agreement shall be true and correct
in all material respects, in each case at and as of the date of this Agreement and at and as of the Closing as though such representation
or warranty was made at and as of such time, except for those representations and warranties that address matters as of a particular
date (in which case such representations and warranties shall be true and correct in the manner set forth in this Section 7.2(a)
as of such particular date).

 

(b)
Performance of Covenants. Buyer shall have duly performed and complied in all material respects with all covenants, obligations
and agreements required by this Agreement to be performed or complied with by Buyer at or prior to the Closing.

 

(c)
Certificate. Seller shall have received a certificate signed by an executive officer of Buyer, dated the Closing Date,
to the effect that the conditions set forth in Sections 7.2(a) and (b) have been satisfied.

 

(d)
Absence of Illegality; No Proceedings.

 

(i)
No Law shall have been issued, enacted or promulgated by any Governmental Entity of competent jurisdiction and remain in effect
that makes consummation of the transactions contemplated by this Agreement illegal or otherwise precludes, restrains, enjoins
or prohibits consummation of the transactions contemplated by this Agreement.

 

(ii)
No Proceeding shall have been filed in any court of competent jurisdiction seeking to restrain, materially delay or prohibit the
consummation of any of the transactions contemplated by this Agreement nor shall any such Proceeding have been overtly threatened
by any Governmental Entity.

 

(e)
Closing Deliveries. Buyer shall have made, or stand ready at the Closing to make, the deliveries required to be made by
Buyer pursuant to Section 2.7(b).

 

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ARTICLE
8

SURVIVAL
AND INDEMNIFICATION

 

Section
8.1. Survival of Representations and Covenants.

 

(a)
General Survival. Subject to Section 8.1(b) and Section 8.1(d), the representations and warranties made by
Seller and Buyer in this Agreement shall survive the Closing until the date that is twelve (12) months from the Closing Date (the
“General Survival Date”); provided, however, that if, at any time on or prior to the General
Survival Date, any Buyer Indemnitee or Seller Indemnitee delivers to the applicable Indemnitor a written notice alleging the existence
of an inaccuracy in or a breach of, or a potential inaccuracy in or a potential breach of, any such representation or warranty
and asserting facts reasonably expected to establish a claim for recovery under Section 8.2 or Section 8.3, as the
case may be, based on such alleged inaccuracy or breach or potential inaccuracy or breach, then the relevant representation and
warranty and claim for recovery shall survive the General Survival Date until such time as such claim is fully and finally resolved.

 

(b)
Specified Representations. Notwithstanding anything to the contrary contained in Section 8.1(a), the Specified Representations
shall survive the Closing for the period in which Seller may receive payments under the Earnout, i.e. until December 31, 2027.

 

(c)
Survival of Covenants. All covenants and agreements of the parties hereto contained herein shall survive the Closing until
fully performed or complied with.

 

(d)
Intentional Misrepresentation; Fraud. The limitations set forth in Section 8.1(a) or (b) shall not apply in the
event of any intentional misrepresentation or fraud, each shall survive the Closing indefinitely.

 

Section
8.2. Indemnification by Seller. From and after the Closing (but subject to Section 8.1 and Section 8.4),
Seller (namely, Parent and each Subsidiary) shall hold harmless and indemnify each of the Buyer Indemnitees from and against,
and shall compensate and reimburse each of the Buyer Indemnitees for, any Damages which are directly or indirectly suffered or
incurred at any time by any of the Buyer Indemnitees or to which any of the Buyer Indemnitees may otherwise directly or indirectly
become subject at any time (regardless of whether or not such Damages relate to any Third Party Claim) and which arise directly
or indirectly from or as a result of, or are directly or indirectly connected with:

 

(a)
any inaccuracy in or breach of any representation or warranty made by Seller in this Agreement, in any Ancillary Agreement or
in any other agreement, document, certificate or instrument entered into or delivered by or on behalf of Seller under or pursuant
to this Agreement or in connection with the transactions contemplated hereby;

 

(b)
any breach or non-fulfillment of any covenant or other obligation of or to be performed by Seller in this Agreement, in any Ancillary
Agreement, or any other agreement, document, certificate or instrument entered into or delivered by or on behalf of Seller under
or pursuant to this Agreement or in connection with the transactions contemplated hereby;

 

(c)
any Excluded Liability;

 

(d)
any Excluded Asset and Seller’s ownership, use and operation of the Excluded Assests after Closing;

Assets
after Closing;

 

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(e)
the conduct of the Business by Seller and/or any of its Affiliates, including the ownership or use of the Transferred Assets,
in each case prior to the Closing; and

 

(f)
any matter referred to in Section 8.2(f) of the Disclosure Schedule.

 

Section
8.3. Indemnification by Buyer. From and after the Closing (but subject to Section 8.1 and Section 8.4), Buyer
shall hold harmless and indemnify each of the Seller Indemnitees from and against, and shall compensate and reimburse each of
the Seller Indemnitees for, any Damages which are directly or indirectly suffered or incurred at any time by any of the Seller
Indemnitees or to which any of the Seller Indemnitees may otherwise directly or indirectly become subject at any time (regardless
of whether or not such Damages relate to any Third Party Claim) and which arise directly or indirectly from or as a result of,
or are directly or indirectly connected with:

 

(a)
any inaccuracy in or breach of any representation or warranty made by Buyer in this Agreement, in any Ancillary Agreement or in
any other agreement, document, certificate or instrument entered into or delivered by or on behalf of Buyer under or pursuant
to this Agreement or in connection with the transactions contemplated hereby;

 

(b)
any breach or non-fulfillment of any covenant or other obligation of or to be performed by Buyer in this Agreement, in any Ancillary
Agreement, or any other agreement, document, certificate or instrument entered into or delivered by or on behalf of Buyer under
or pursuant to this Agreement or in connection with the transactions contemplated hereby; and

 

(c)
the conduct of the Business by Buyer and/or any of its Affiliates, including the ownership or use of the Transferred Assets, in
each case after the Closing.

 

Section
8.4. Limitations.

 

(a)
Basket.

 

(i)
Seller shall not be required to make any indemnification payment pursuant to Section 8.2(a): (A) if the Damages associated
with any individual claim, or series of related claims, are less than $15,000 (the “De Minimis Claim Amount”),
it being understood that any such individual claims for amounts less than the De Minimis Claim Amount shall be taken into account
in determining whether the Basket Amount has been exceeded and thereafter; and (B) until such time as the total amount of all
Damages that have been directly or indirectly suffered or incurred by any one or more of the Buyer Indemnitees, or to which any
one or more of the Buyer Indemnitees has or have otherwise directly or indirectly become subject, exceeds $150,000 plus 1% of
the payments made under the terms of Exhibit A (the sum, the “Basket Amount”) in the aggregate. Once
the total amount of such Damages exceeds the Basket Amount, then the Buyer Indemnitees shall be entitled to be indemnified and
held harmless against and compensated and reimbursed for the entire amount of such Damages, and not merely the portion of such
Damages exceeding the Basket Amount.

 

(ii)
Buyer shall not be required to make any indemnification payment pursuant to Section 8.3(a): (A) if the Damages associated
with any individual claim, or series of related claims, are less than the De Minimis Claim Amount it being understood that any
such individual claims for amounts less than the De Minimis Claim Amount shall be taken into account in determining whether the
Basket Amount has been exceeded and thereafter; and (B) until such time as the total amount of all Damages that have been directly
or indirectly suffered or incurred by any one or more of the Seller Indemnitees, or to which any one or more of the Seller Indemnitees
has or have otherwise directly or indirectly become subject, exceeds the Basket Amount in the aggregate. Once the total amount
of such Damages exceeds the Basket Amount, then the Seller Indemnitees shall be entitled to be indemnified and held harmless against
and compensated and reimbursed for the entire amount of such Damages, and not merely the portion of such Damages exceeding the
Basket Amount.

 

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(iii)
The limitations set forth in Section 8.4(a)(i) and Section 8.4(a)(ii) shall not apply (and shall not limit the indemnification
or other obligations of Seller or Buyer, as the case may be): (A) in the event of intentional misrepresentation or fraud; or (B)
to material inaccuracies in or breaches of any of the Specified Representations.

 

(b)
Liability Cap for Breaches of Representations and Warranties. Recourse by (i) the Buyer Indemnitees under Section 8.2(a)
and (ii) the Seller Indemnitees under Section 8.3(a) shall, in each case, be limited to an aggregate amount equal to
the Escrow Amount; provided, however, that the limitations set forth in this Section 8.4(b) shall not apply
(and shall not limit the indemnification or other obligations of Seller or Buyer, as the case may be): (A) in the event of intentional
misrepresentation or fraud; or (B) to material inaccuracies in or breaches of any of the Specified Representations.

 

(c)
Overall Liability Cap. Except in the event of intentional misrepresentation or which
Buyer may be liable to Seller Indemnitees, under this Article 8 exceed the greater of (A) the Base Consideration and (B)
the amount paid under the terms of Exhibit A.

 

(d)
Qualifications. For purposes of Section 8.2, with respect to each representation, warranty, covenant or agreement
contained in this Agreement that is subject to a “materiality,” “material,” “Material Adverse Effect,”
“in all material respects” or similar qualification (but not including knowledge, Seller’s Knowledge or Knowledge
of Seller), any such qualification shall be disregarded for purposes of determining whether a breach of or inaccuracy in such
representation, warranty, covenant or agreement has occurred and for purposes of calculating the amount of any Damages that is
subject to indemnification hereunder.

 

(e)
Representations Not Limited. Seller agrees that the Buyer Indemnitees’ rights to indemnification, compensation and
reimbursement contained in this Article 8 relating to the representations, warranties, covenants and obligations of Seller
are part of the basis of the bargain contemplated by this Agreement; and such representations, warranties, covenants and obligations,
and the rights and remedies that may be exercised by the Buyer Indemnitees with respect thereto, shall not be waived, limited
or otherwise affected by or as a result of (and the Buyer Indemnitees shall be deemed to have relied upon such representations,
warranties, covenants or obligations notwithstanding) any knowledge on the part of any of the Buyer Indemnitees or any of their
Representatives, regardless of whether obtained through any investigation by any Buyer Indemnitee or any Representative of any
Buyer Indemnitee or through disclosure by Seller or any other Person (other than by specific inclusion in the Disclosure Schedule),
and regardless of whether such knowledge was obtained before or after the execution and delivery of this Agreement.

 

(f)
Insurance. The amount of any Damages subject to indemnification under Section 8.2 and Section 8.3 shall be
calculated net of any insurance proceeds actually recovered by the applicable Indemnitee for such Damages, net of all reasonable
and documented costs of recovery (including any increased insurance premiums directly attributable to any such insurance recovery).
Each Indemnitee shall use, and shall cause its Affiliates to use, commercially reasonable efforts (which the parties agree does
not require any party to commence any litigation or other Proceedings) to seek recovery under all insurance policies covering
such Damages to the same extent as it would if such Damages were not subject to indemnification hereunder. In the event that an
insurance recovery is made by an Indemnitee with respect to any Damages for which such Indemnitee has been indemnified hereunder
and such insurance recovery would result in duplicative recovery by such Indemnitee, then a refund equal to the aggregate amount
of the insurance recovery shall be made promptly by such Indemnitee to the applicable Indemnitor, net of all reasonable and documented
costs of recovery.

 

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Section
8.5. No Contribution. Seller waives, and Seller acknowledges and agrees that Seller shall not have and shall not exercise
or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or advancement of expenses or other
right or remedy against Buyer in connection with any indemnification obligation or any other Liability to which Seller may become
subject under or in connection with this Agreement, any Ancillary Agreement or any other agreement, document, certificate or instrument
entered into or delivered by or on behalf of Seller under or pursuant to this Agreement or in connection with the transactions
contemplated hereby. Effective as of the Closing, Seller expressly waives and releases any and all rights of subrogation, contribution,
advancement, indemnification or other claim against Buyer.

 

Section
8.6. Defense of Third Party Claims.

 

(a)
In the event of the assertion or commencement by any Person, other than a party hereto, of any claim or Proceeding (whether against
Buyer, Seller or any other Person) with respect to which Seller or Buyer, as he case may be (each, an “Indemnitor”),
may become obligated to hold harmless, indemnify, compensate or reimburse any Indemnitee pursuant to Section 8.2 or Section
8.3, as the case may be (a “Third Party Claim”), the Indemnitor shall have the right, at its election,
to proceed with the defense of such Third Party Claim on its own with counsel reasonably satisfactory to the Indemnitee unless:
(A) the Response Notice fails to specify that the Indemnitor desires to assume control of the defense of such Third Party Claim
and does not acknowledge the Indemnitor’s obligation to indemnify the Indemnitee in respect of such Third Party Claim; (B)
the Third Party Claim is in respect of any matter involving criminal liability or asserts fraud of an Indemnitee; (C) the Third
Party Claims seeks Damages in excess of one hundred fifty percent (150%) of the amount for which the Indemnitor may be liable
under this Agreement; (D) the Indemnitor fails to provide reasonable assurance to the Indemnitee of its financial capacity to
defend such Third Party Claim and provide indemnification with respect to such Third Party Claim; (E) the Indemnitee is also a
party to such Third Party Claim and the Indemnitee has been advised in writing by outside counsel that there are one or more legal
defenses available to the Indemnitee that are different from or in addition to those available to the Indemnitor; (F) the Indemnitor
has failed or is failing to reasonably prosecute or defend such Third Party Claim; (G) such Third Party Claim involves any Governmental
Entity as a party thereto; or (H) the Third Party Claim seeks as the primary cause of action the imposition of an equitable or
injunctive remedy against the Indemnitee or any of its Affiliates (other than equitable relief that is ancillary to claim for
monetary damages). If the Indemnitor so proceeds with the defense of any such Third Party Claim:

 

(i)
subject to the other provisions of this Article 8, all reasonable expenses relating to the defense of such Third Party
Claim shall be borne and paid exclusively by the Indemnitor;

 

(ii)
the Indemnitee shall make available to the Indemnitor any documents and materials in his, her or its and in his, her or its Affiliates’
possession or control that may be necessary to the defense of such Third Party Claim; provided, however, that any
confidential or privileged materials shall not be disclosed by the Indemnitee other than as needed for such defense, and the Indemnitor
agrees to enter into a commercially reasonable confidentiality and non-use agreement with the Indemnitee with respect to such
information;

 

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(iii)
the Indemnitee may retain separate co-counsel at its sole cost and expense and participate in the defense of such Third Party
Claim; provided, however, that the Indemnitee will be entitled to participate in any such defense with separate
co-counsel at the expense of the Indemnitor if: (x) so requested by the Indemnitor to participate or (y) based on the advice of
counsel to the Indemnitee, a conflict or potential conflict between the Indemnitee and the Indemnitor exists that would make such
separate representation advisable; provided further, however, that the Indemnitor shall not be required to pay for
more than one (1) such counsel (plus any appropriate local counsel) for all Indemnitees in connection with such Third Party Claim;
and

 

(iv)
the Indemnitor may not settle, adjust or compromise such Third Party Claim without the consent of the Indemnitee (it being understood
that if the Indemnitor requests that the Indemnitee consent to a settlement, adjustment or compromise, the Indemnitee shall not
unreasonably withhold or delay such consent); provided, however, that no such consent shall be required if: (x)
there is no finding or admission of any violation of Law or suggestion of any wrongdoing on behalf of the Indemnitee; (y) each
Indemnitee that is a party to such Third Party Claim is fully and unconditionally released from liability with respect to such
claim, without prejudice; and (z) as a result of such settlement, adjustment or compromise, no injunctive or other equitable relief
will be imposed against the Indemnitee.

 

(b)
If the Indemnitor does not elect or is not entitled to proceed with the defense of any such Third Party Claim, the Indemnitee
shall proceed with the defense of such Third Party Claim with counsel reasonably satisfactory to the Indemnitor; provided,
however, that the Indemnitee may not settle, adjust or compromise any such Third Party Claim without the prior written
consent of the Indemnitor (which consent may not be unreasonably withheld or delayed). An Indemnitee shall give the applicable
Indemnitor prompt notice of the commencement of any such Third Party Claim against the Indemnitee; provided, however,
that any failure on the part of the Indemnitee to so notify the Indemnitor shall not limit any of the obligations of the Indemnitor
under this Article 8 (except to the extent such failure materially prejudices the defense of such Third Party Claim).

 

Section
8.7. Indemnification Claim Procedure.

 

(a)
If any Indemnitee has or claims in good faith to have incurred or suffered, or believes in good faith that it may incur or suffer,
Damages for which it is or may be entitled to be held harmless, indemnified, compensated or reimbursed under this Article 8
or for which it is or may be entitled to a monetary remedy (such as in the case of a claim based on fraud or intentional misrepresentation),
such Indemnitee may deliver a notice of claim (a “Notice of Claim”) to the applicable Indemnitor (and, in the
case the Notice of Claim is delivered by a Buyer Indemnitee, to the Escrow Agent, to the extent funds remain in the Escrow Account).
Each Notice of Claim shall: (i) state that such Indemnitee believes in good faith that such Indemnitee is or may be entitled to
indemnification, compensation or reimbursement under this Article 8 or is or may otherwise be entitled to a monetary remedy;
(ii) contain a brief description of the facts and circumstances supporting the Indemnitee’s claim; and (iii) contain a good
faith, non-binding, preliminary estimate of the aggregate amount of the actual and potential Damages that the Indemnitee believes
have arisen and may arise as a result of such facts and circumstances (the aggregate amount of such estimate, as it may be modified
by such Indemnitee in good faith from time to time, being referred to as the “Claimed Amount”).

 

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(b)
During the twenty (20)-day period commencing upon delivery by an Indemnitee to the applicable Indemnitor of a Notice of Claim
(the “Claim Dispute Period”), the applicable Indemnitor may deliver to the Indemnitee who delivered the Notice
of Claim (and, in the case the Notice of Claim was delivered by a Buyer Indemnitee, to the Escrow Agent, to the extent funds remain
in the Escrow Account) a written response (the “Response Notice”) in which the Indemnitor: (i) agrees that
the full Claimed Amount is owed to the Indemnitee; (ii) agrees that part, but not all, of the Claimed Amount (such agreed portion,
the “Agreed Amount”) is owed to the Indemnitee; or (iii) indicates that no part of the Claimed Amount is owed
to the Indemnitee. If the Notice of Claim relates to a Third Party Claim, the Response Notice shall also specify whether or not
the Indemnitor desires to assume control of the defense of such Third Party Claim. If the Response Notice is delivered in accordance
with clause (ii) or (iii) of the preceding sentence, the Response Notice shall also contain a brief description of the facts and
circumstances supporting the Indemnitor’s claim that only a portion or no part of the Claimed Amount is owed to the Indemnitee,
as the case may be. Any part of the Claimed Amount that is not agreed to be owed to the Indemnitee pursuant to the Response Notice
(or the entire Claimed Amount, if the Indemnitor asserts in the Response Notice that no part of the Claimed Amount is owed to
the Indemnitee) is referred to in this Agreement as the ” Contested Amount” (it being understood that the Contested
Amount shall be modified from time to time to reflect any good faith modifications by the Indemnitee to the Claimed Amount). If
no Response Notice is delivered prior to the expiration of the Claim Dispute Period, then the Indemnitor shall be conclusively
deemed to have agreed that the full Claimed Amount is owed to the Indemnitee.

 

(c)
If: (i) the Indemnitor delivers a Response Notice agreeing that the full Claimed Amount is owed to the Indemnitee; or (ii) the
Indemnitor does not deliver a Response Notice during the Claim Dispute Period, then, within three (3) Business Days following
the receipt of such Response Notice by the Indemnitee (or, in the case the Notice of Claim was delivered by a Buyer Indemnitee,
by the Escrow Agent) or within three (3) Business Days after the expiration of the Claim Dispute Period, as the case may be, the
Indemnitor shall pay to the applicable Indemnitee an amount in cash equal to the full Claimed Amount (or, in the case the Notice
of Claim was delivered by a Buyer Indemnitee and funds remain in the Escrow Account, the Escrow Agent shall release to the applicable
Buyer Indemnitee from the Escrow Account an amount in cash equal to the full Claimed Amount (or such lesser amount as may remain
in the Escrow Account)); provided, however, that, in the case the Notice of Claim was delivered by a Buyer Indemnitee
and to the extent the funds in the Escrow Account are insufficient to cover the Claimed Amount, Seller shall promptly pay to the
applicable Buyer Indemnitee the amount by which the Claimed Amount exceeds the remaining funds in the Escrow Account.

 

(d)
If the Indemnitor delivers a Response Notice during the Claim Dispute Period agreeing that less than the full Claimed Amount is
owed to the Indemnitee, then within three (3) Business Days following the receipt of such Response Notice, the Indemnitor shall
pay to the applicable Indemnitee an amount in cash equal to the Agreed Amount (or, in the case the Notice of Claim was delivered
by a Buyer Indemnitee and funds remain in the Escrow Account, the Escrow Agent shall release to the applicable Buyer Indemnitee
from the Escrow Account an amount in cash equal to the Agreed Amount (or such lesser amount as may remain in the Escrow Account));
provided, however, that, in the case the Notice of Claim was delivered by a Buyer Indemnitee and to the extent the
funds in the Escrow Account are insufficient to cover the Agreed Amount, Seller shall promptly pay to the applicable Buyer Indemnitee
the amount by which the Agreed Amount exceeds the remaining funds in the Escrow Account.

 

(a)
If the Indemnitor delivers a Response Notice during the Claim Dispute Period indicating that there is a Contested Amount, the
Indemnitor and the Indemnitee shall attempt in good faith to resolve the dispute related to the Contested Amount. If the Indemnitee
and the Indemnitor resolve such dispute, a settlement agreement stipulating the amount owed to the Indemnitee (the “Stipulated
Amount”) shall be signed by the Indemnitee and the Indemnitor. Within three (3) Business Days following the execution
of such settlement agreement (or such shorter period of time as may be set forth in the settlement agreement), the Indemnitor
shall pay to the applicable Indemnitee an amount in cash equal to the Stipulated Amount (or, in the case the Notice of Claim was
delivered by a Buyer Indemnitee and funds remain in the Escrow Account, Seller and Buyer shall deliver joint written instructions
to the Escrow Agent instructing the Escrow Agent to release to the applicable Buyer Indemnitee from the Escrow Account an amount
in cash equal to the Stipulated Amount (or such lesser amount as may remain in the Escrow Account)); provided, however,
that, in the case the Notice of Claim was delivered by a Buyer Indemnitee and to the extent the funds in the Escrow Account are
insufficient to cover the Stipulated Amount, Seller shall promptly pay to the applicable Buyer Indemnitee the amount by which
the Stipulated Amount exceeds the remaining funds in the Escrow Account.

 

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(b)
In the event that there is a dispute relating to any Notice of Claim or any Contested Amount (whether it is a matter between any
Indemnitee, on the one hand, and the applicable Indemnitor, on the other hand, or it is a matter that is subject to a Third Party
Claim brought against any Indemnitee), that remains unresolved after application of the terms of this Section 8.6, such
dispute shall be settled in accordance with Section 11.8.

 

Section
8.8. Setoff. In addition to Section 8.6 and any rights of setoff or other similar rights that Buyer or any of the
other Buyer Indemnitees may have at common law or otherwise, Buyer shall have the right to withhold and deduct from any sum that
is or may be owed to Seller hereunder: (a) any amount that is payable by Seller to Buyer under Section 2.9(d) but has not yet
been paid; (b) any amount that is otherwise payable by Seller to any Buyer Indemnitee under this Article 8 but has not
yet been paid; and (c) any amount with respect to which there is a dispute as to whether such amount is payable by Seller to Buyer
or any Buyer Indemnitee under this Agreement upon final determination of such dispute that payment is to be made by Seller by
a court from which no appeal can be made.

 

Section
8.9. Exercise of Remedies Other Than by Buyer or Seller.

 

(a)
No Buyer Indemnitee (other than Buyer or any successor thereto or assign thereof) shall be permitted to assert any indemnification
claim or exercise any other remedy under this Agreement unless Buyer or any successor thereto or assign thereof, as the case may
be, shall have consented to the assertion of such indemnification claim or the exercise of such other remedy.

 

(b)
No Seller Indemnitee (other than Seller or any successor thereto or assign thereof) shall be permitted to assert any indemnification
claim or exercise any other remedy under this Agreement unless Seller or any successor thereto or assign thereof, as the case
may be, shall have consented to the assertion of such indemnification claim or the exercise of such other remedy.

 

Section
8.10. Escrow Release.

 

(a)
If the funds remaining in the Escrow Account, including any interest accrued or income otherwise earned thereon (the “Escrow
Balance”), as of the (1) date that is ninety (90) days after the Closing Date (the “Initial Escrow Release Date”)
exceed the aggregate dollar amount, as of the Initial Escrow Release Date, of Claimed Amounts and Contested Amounts associated
with all indemnification claims contained in any Notice of Claim delivered by a Buyer Indemnitee that have not been finally resolved
and paid prior to the Initial Escrow Release Date in accordance with Section 8.6 (each, an “Unresolved Escrow
Claim” and the aggregate dollar amount of such Claimed Amounts and Contested Amounts as of the Initial Escrow Release
Date being referred to as the “Initial Pending Claim Amount”), then Buyer and Seller shall, within three (3)
Business Days following the Initial Escrow Release Date , deliver joint written instructions to the Escrow Agent instructing the
Escrow Agent to release from the Escrow Account to Seller the lesser of (i) Five Hundred Thousand Dollars ($500,000) and an amount
equal to the Escrow Balance minus the Initial Pending Claim Amount and (2) General Survival Date exceed the aggregate dollar
amount, as of the General Survival Date, of Claimed Amounts and Contested Amounts associated with all indemnification claims contained
in any Notice of Claim delivered by a Buyer Indemnitee that have not been finally resolved and paid prior to the General Survival
Date in accordance with Section 8.6 (each, an “Unresolved Escrow Claim” and the aggregate dollar amount
of such Claimed Amounts and Contested Amounts as of the General Survival Date being referred to as the “Pending Claim
Amount”), then Buyer and Seller shall, within three (3) Business Days following the General Survival Date, deliver joint
written instructions to the Escrow Agent instructing the Escrow Agent to release from the Escrow Account an amount equal to the
Escrow Balance minus the Pending Claim Amount to Seller.

        

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(b)
Following the General Survival Date, if an Unresolved Escrow Claim is finally resolved by a court from which no appeal can be
taken, Buyer and Seller shall, within three (3) Business Days after the final resolution of such Unresolved Escrow Claim, deliver
joint written instructions to the Escrow Agent instructing the Escrow Agent to release from the Escrow Account: (i) to the applicable
Buyer Indemnitee an amount determined in accordance with Section 8.6, and (ii) to Seller an amount equal to the amount
(if any) by which the amount of funds remaining in the Escrow Account, including any interest accrued or income otherwise earned
thereon, as of the date of resolution of such Unresolved Escrow Claim exceeds the aggregate amount of the remaining Pending Claim
Amount.

 

Section
8.11. Exclusive Remedy. Except: (a) for equitable relief, to which any party hereto may be entitled pursuant to this Agreement;
(b) for Damages resulting from or arising out of fraud or intentional misrepresentation; and (c) as otherwise expressly provided
in this Agreement, after the Closing the indemnification provided in this Article 8 shall be the sole and exclusive remedy
of the parties for monetary damages for any breach of any representation, warranty or covenant contained in this Agreement.

 

ARTICLE
9

TAX
MATTERS

 

Section
9.1. Transfer Taxes. Seller shall pay all transfer, documentary, value added sales, use, stamp, registration and other
such Taxes and all conveyance fees, recording charges, and other fees and charges (including any penalties and interest) resulting
from the transactions contemplated by this Agreement (collectively, the “Transfer Taxes”). Seller shall file,
at Seller’s expense, any required Transfer Tax filings, provided that Buyer shall join in any such filing if required
by applicable Law. Each of Buyer and Seller shall also provide the other with any exemption certificate or its equivalent to support
any reasonable exemption from sales taxes claimed in respect of the Transferred Assets.

 

Section
9.2. Cooperation. Buyer and Seller shall reasonably cooperate, and shall cause their respective Affiliates, and their Affiliates’
respective officers, employees, agents, auditors and representatives reasonably to cooperate, in preparing and filing all returns,
reports and forms relating to Taxes, including maintaining and making available to each other all records necessary in connection
with Taxes and in resolving all disputes and audits with respect to all taxable periods relating to Taxes. Each of Buyer and Seller
recognize that the other may need access, from time to time, after the Closing Date, to certain accounting and Tax records and
information held by it, to the extent such records and information pertain to events occurring prior to the Closing Date; therefore,
Buyer and Seller each agree: (a) to properly retain and maintain such records until such time as Buyer and Seller agree in writing
that such retention and maintenance is no longer necessary; and (b) to allow the other party and its respective agents, auditors
and representatives, at times and dates mutually acceptable to the parties hereto, to inspect, review and make copies of such
records as such party or its agents, auditors or representatives may deem necessary or appropriate from time to time, such activities
to be conducted during normal business hours and at the expense of the requesting party.

 

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ARTICLE
10

TERMINATION

 

Section
10.1. Termination. This Agreement may be terminated and the transactions contemplated by this Agreement may be abandoned
at any time prior to the Closing:

 

(a)
by the mutual written consent of Buyer and Seller;

 

(b)
by Seller, by written notice from Seller to Buyer, if the Closing shall not have occurred on or before April 10, 2020 (the “Outside
Date”); provided, however, that the right to terminate this Agreement under this Section 10.1(b)
shall not be available to Seller if the failure of Seller to fulfill any of its obligations under this Agreement shall have been
the principal cause of, or shall have resulted in, the failure of the Closing to occur on or prior to such date and such failure
to act constitutes a breach of the Agreement provided, however that in the event that the SEC has not permitted the filing of
a Definitive Proxy Statement by March 11, 2020 then at the option of Buyer given by notice to Seller on the business day following
such date, this Agreement shall terminate or the Outside Date shall be extended to May 11, 2020;

 

(c)
by Buyer, by written notice from Buyer to Seller, (i) if the Closing shall not have occurred on or before the Outside Date; provided,
however, that the right to terminate this Agreement under this Section 10.1(c) shall not be available to Buyer if
the failure of Buyer to fulfill any of its obligations under this Agreement shall have been the principal cause of, or shall have
resulted in, the failure of the Closing to occur on or prior to such date and such failure to act constitutes a breach of the
Agreement or (ii) in the event that the SEC has not permitted the filing of a Definitive Proxy Statement by March 11, 2020;

 

(d)
by Seller, by written notice from Seller to Buyer, if: (i) there exists a breach of or inaccuracy in any representation or warranty
made by Buyer in this Agreement such that the condition set forth in Section 7.2(a) is not capable of being satisfied;
or (ii) Buyer shall have breached any of the covenants or agreements contained in this Agreement to be complied with by it such
that the condition set forth in Section 7.2(b) is not capable of being satisfied and, in the case of clauses (i) and (ii),
such breach is incapable of being cured or, if capable of being cured, is not cured by Buyer prior to the earlier of: (x) twenty
(20) days after receipt of written notice thereof from Seller or (y) the Outside Date;

 

(e)
by Buyer, by written notice from Buyer to Seller, if: (i) there exists a breach of or inaccuracy in any representation or warranty
made by Seller in this Agreement such that the condition set forth in Section 7.1(a) is not capable of being satisfied;
or (ii) Seller shall have breached any of the covenants or agreements contained in this Agreement to be complied with by it such
that the condition set forth in Section 7.1(b) is not capable of being satisfied and, in the case of clauses (i) and (ii),
such breach is incapable of being cured or, if capable of being cured, is not cured by Seller prior to the earlier of: (x) twenty
(20) days after receipt of written notice thereof from Buyer or (y) the Outside Date;

 

(f)
by Buyer, by written notice from Buyer to Seller, if, after the date of this Agreement, there shall have occurred a Material Adverse
Effect;

 

(g)
by Buyer, by written notice from Buyer to Seller, or Seller, by written notice from Seller to Buyer, if: (i) any Governmental
Entity shall have issued an Order or taken any other action permanently restraining, enjoining or otherwise prohibiting the transactions
contemplated by this Agreement and such Order or other action shall have become final and non-appealable; or (ii) any Governmental
Entity shall have enacted, issued or promulgated any Law which has the effect of making consummation of the transactions contemplated
by this Agreement illegal or otherwise prohibits the consummation of the transactions contemplated by this Agreement; or

        

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(h)
by either Buyer or Seller, if at the Seller’s Stockholder Meeting (including any adjournment or postponement), the requisite stockholder
approval shall not have been obtained (provided, that the right to terminate this Agreement under this Section 10.1(h)
shall not be available to any party seeking termination who at the time is in breach of or has failed to fulfill any of its obligations
under this Agreement); or

 

(i)
by Seller, if Seller Board determines to accept a Superior Proposal.

 

Section
10.2. Effect of Termination.

 

(a)
If this Agreement is terminated pursuant to Section 10.1, other than under Section 10.1(h) or Section 10.1(i),
this Agreement shall forthwith become null and void and have no further effect, and there shall be no Liability or obligation
on the part of Buyer, Seller, any of their respective Affiliates, or any of their respective officers, directors, equityholders,
managers or partners, and all rights and obligations of the parties hereunder shall cease; provided, however, that
notwithstanding the foregoing: (a) the provisions of (i) the Confidentiality Agreement and (ii) this Section 10.2 and Article
11 (except for Section 11.5) shall survive the termination of this Agreement and shall continue in full force and effect
in accordance with their terms; and (b) nothing herein shall relieve any party hereto from liability for Damages incurred or suffered
by the other party hereto as a result of any knowing and willful breach by such party of any of its covenants or other agreements
set forth in this Agreement prior to the time of such termination.

 

(b)
If this Agreement is terminated pursuant to Section 10.1(h), and there is not then an Acquisition Proposal that has been
publicly disclosed, in order to compensate Buyer for the effort and expense incurred in pursuing a Transaction and to induce Buyer
to enter into this Agreement, Seller agrees to pay Buyer $500,000 and, effective upon receipt of such payment, Seller shall be
released from any claim for breach of this Agreement related to the failure to obtain stockholder approval.

 

(c)
If this Agreement is terminated pursuant to Section 10.1(i), or, if an Acquisition Proposal has been publicly disclosed,
this Agreement is terminated pursuant to Section 10.1(h), in order to compensate Buyer for the effort and expense incurred
in pursuing a Transaction and to induce Buyer to enter into this Agreement, Seller agrees to pay Buyer $1,000,000 and, effective
upon receipt of such payment, Seller shall be released from any claim for breach of this Agreement related to Seller’s acceptance
of the Superior Proposal to the extent it was unsolicited under the terms of Section 5.5 hereof. The Parties agree that
payment of the $1,000,000 shall, in the circumstances in which it is owed in accordance with the terms of this Agreement, provided
it has been validly terminated under Section 10.1(h) or (i), constitute the sole and exclusive remedy of the Buyer following the
termination of this Agreement, it being understood that in no event shall Seller be required to pay the amounts payable pursuant
to this Section 10.2 on more than one occasion and following payment of the fee (x) Seller shall have no further liability
to Buyer in connection with or arising out of this Agreement or the termination thereof, any breach of this Agreement by Seller
giving rise to such termination, or the failure of the contemplated transactions to be consummated, (y) neither Buyer nor any
of its Affiliates shall be entitled to bring or maintain any other claim, action or proceeding against Seller or seek to obtain
any recovery, judgment or damages of any kind against Seller (or any partner, member, stockholder, director, officer, employee,
Subsidiary, Affiliate, agent or other Representative of such Parties) in connection with or arising out of this Agreement or the
termination thereof, any breach by any such Parties giving rise to such termination or the failure of the contemplated transactions
to be consummated and (z) the Buyer shall be precluded from any other remedy against Seller and their respective Affiliates, at
law or in equity or otherwise, in connection with or arising out of this Agreement or the termination thereof, any breach by such
Party giving rise to such termination or the failure of the contemplated transactions to be consummated

 

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ARTICLE
11

MISCELLANEOUS

 

Section
11.1. Publicity.

 

(a)
None of the parties will make, issue or release (and none of the parties will cause or permit any of its Representatives, to make,
issue or release) any public or industry announcement, statement or acknowledgment with respect to this Agreement, any Ancillary
Agreement or any of the transactions contemplated hereby or thereby, the Purchase Price or any other material terms of this Agreement
or any of the transactions contemplated hereby, except by mutual consent of Buyer and Seller and except as required by any Law
(it being understood that prior to making any such announcement, statement or acknowledgment as required by any Law, Buyer and
Seller will consult with each other with respect to the content thereof).

 

(b)
Seller shall, and shall cause its Affiliates to, and shall instruct its and their respective Representatives to, hold in
confidence the existence of this Agreement, the Ancillary Agreements, and the terms hereof and thereof, and each such Person
shall not disclose any such information to any other Person; provided, however, that such Person may disclose
any such information: (i) that after the date of this Agreement becomes generally available to the public
other than through a breach by Seller, any of its Affiliates or any of its or their respective Representatives of their
respective obligations under this Section 11.1(b); (ii) to its tax, accounting or legal Representatives who have a
need to know such information and are informed of the confidential nature of such information; (iii) as required by
applicable Law, by any Governmental Entity or under any subpoena, civil investigative demand or other similar process by a
court of competent jurisdiction having jurisdiction over such Person; or (iv) with Buyer’s prior written consent.

 

Section
11.2. Amendment and Waiver. Any provision in this Agreement to the contrary notwithstanding, changes in or additions to
this Agreement may be made only by a written instrument signed by the parties hereto, and compliance with any covenant or provision
set forth herein may be omitted or waived only by a written instrument signed by the party against whom enforcement of such omission
or waiver is sought. Any waiver or consent may be given subject to satisfaction of conditions stated therein and any waiver or
consent shall be effective only in the specific instance and for the specific purpose for which given. No failure or delay on
the part of any party in exercising any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single
or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other
right, power or remedy hereunder.

 

Section
11.3. Entire Agreement; Third Party Beneficiaries. This Agreement (including the Disclosure Schedule and the other documents
and instruments referred to herein) and the Ancillary Agreements: (a) constitute the entire agreement between the parties hereto
with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, both written and
oral, between the parties hereto with respect to the subject matter hereof and thereof; provided, however, that
the Confidentiality Agreement is not superseded and is expressly understood and agreed to apply to all parties hereto as well
as all parties thereto and is further expressly understood and agreed to apply for all purposes of this Agreement as well as for
evaluation and consideration of this Agreement; and (b) except as expressly provided herein, are not intended to confer upon any
Person other than the parties hereto and their respective successors and permitted assigns any rights, benefits or remedies whatsoever.
In the event of any inconsistency between the statements in the body of this Agreement and those in the Disclosure Schedule and
the other documents and instruments referred to herein (other than an exception expressly set forth as such in the Disclosure
Schedule with respect to a representation or warranty), the statements in the body of this Agreement will control.

 

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Section
11.4. Assignment; Binding Effect; No Third-Party Rights. Neither this Agreement nor any of the rights, interests or obligations
hereunder may be assigned by any party hereto, in whole or in part (whether by operation of law or otherwise), without the prior
written consent of the other party hereto; provided, however, that without such prior written consent: (a) Buyer
may assign its rights and/or delegate its obligations under this Agreement or any Ancillary Agreement (in whole but not in part)
to any Affiliate of Buyer; and (b) any or all of the rights and interests and/or obligations of Buyer under this Agreement or
any Ancillary Agreement: (i) may be assigned and/or delegated to any purchaser of all or substantially all of the assets of Buyer
related to the Transferred Assets (whereupon, subject to compliance with Section 2.4 of Exhibit A hereto, Buyer shall cease
to have any further liabilities or obligations hereunder and thereunder); and (ii) may be assigned as a matter of law to the surviving
entity in any merger, consolidation, share exchange or reorganization involving Buyer or any of its Affiliates. Subject to the
preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties and their
respective successors and permitted assigns. Any purported assignment in violation of the provisions of this Agreement shall be
null and void ab initio.

 

Section
11.5. Specific Performance and Other Remedies. The parties hereto agree that if any of the provisions of this Agreement
were not to be performed as required by their specific terms or were to be otherwise breached, irreparable damage will occur to
the other party, no adequate remedy at law would exist and damages would be difficult to determine. Accordingly, the parties hereto
acknowledge that the parties hereto shall be entitled to an injunction or injunctions to prevent breaches or threatened breaches
of this Agreement by the other party or to specific performance of the terms hereof, without posting any bond and without proving
that monetary damages would be inadequate, in addition to any other remedy at law or equity. Neither party shall oppose, argue,
contend or otherwise be permitted to raise as a defense that an adequate remedy at law exists or that specific performance or
equitable or injunctive relief is inappropriate or unavailable with respect to any breach of this Agreement.

 

Section
11.6. Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
or other authority to be invalid, void, unenforceable or against its regulatory policy, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall nevertheless remain in full force and effect and shall in no way be affected,
impaired or invalidated. Upon such determination that any term, provision, covenant or restriction is invalid, illegal, void,
unenforceable or against regulatory policy, the parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties hereto as closely as possible in an acceptable manner in order that the transactions
contemplated by this Agreement are consummated as originally contemplated to the greatest extent possible.

        

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Section
11.7. Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed to have been duly given and effective: (a) on the date of transmission, if such notice
or communication is sent via facsimile or electronic mail and receipt is confirmed, at the facsimile number or email address specified
in this Section 11.7, prior to 5:00 p.m., Pacific Time, on a Business Day; (b) on the first Business Day after the date
of transmission, if such notice or communication is sent via facsimile or electronic mail and receipt is confirmed, at the facsimile
number or email address specified in this Section 11.7 (i) at or after 5:00 p.m., Pacific Time, on a Business Day or (ii)
on a day that is not a Business Day; (c) when received, if sent by nationally recognized overnight courier service; or (d) upon
actual receipt by the party to whom such notice is required or permitted to be given. The address for such notices and communications
(unless changed by the applicable party by like notice) shall be as follows:

 

(A)
if to Seller, to:

 

	 	Icagen-T Inc.
	 	2090 E. Innovation Park Drive
	 	Oro Valley, AZ 85755
	 	Attention: Richie Cunningham
	 	 
	 	Email: rcunningham@icagen.com
	 	 
	 	With a copy to:
	 	 
	 	Leslie Marlow
	 	Gracin & Marlow, LLP
	 	The Chrysler Building
	 	405 Lexington Avenue, 26th Floor
	 	New York, New York 10174
	 	 
	 	Email: lmarlow@gracinmarlow.com

 

(B)
if to Buyer, to:

 

	 	Ligand Pharmaceuticals Incorporated
	 	3911 Sorrento Valley Blvd., Suite 110
	 	San Diego, CA 92121
	 	Attn: Chief Financial Officer
	 	 
	 	[By intention, no facsimile number is provided]
	 	Email: mkorenberg@ligand.com
	 	 
	 	With a copy to:
	 	Ligand Pharmaceuticals Incorporated
	 	3911 Sorrento Valley Blvd., Suite 110
	 	San Diego, CA 92121
	 	Attn: General Counsel
	 	[By intention, no facsimile number is provided]
	 	 
	 	Email: cberkman@ligand.com

 

Section
11.8. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware
(without regard to its conflicts of law doctrines).

 

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Section
11.9. Submission to Jurisdiction. Each party hereto, for itself and its successors and assigns, irrevocably agrees that
any Proceeding arising out of or relating to this Agreement or any of the transactions contemplated hereby shall be brought and
determined in the Court of Chancery of the State of Delaware or, to the extent such court does not have subject matter jurisdiction,
the United States District Court for the District of Delaware or, to the extent that neither of the foregoing courts has jurisdiction,
the Superior Court of the State of Delaware; (and each such party shall not bring any Proceeding arising out of or relating to
this Agreement or any of the transactions contemplated hereby in any court other than the aforesaid courts), and each party hereto,
for itself and its successors and assigns and in respect to its property, hereby irrevocably submits with regard to any such Proceeding,
generally and unconditionally, to the exclusive jurisdiction of the aforesaid courts. Each party, for itself and its successors
and assigns, hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in
any such Proceeding: (a) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason
other than the failure to lawfully serve process; (b) that it or its property is exempt or immune from jurisdiction of such court
or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment
in aid of execution of judgment, execution of judgment or otherwise); and (c) that (i) such Proceeding in any such court is brought
in an inconvenient forum; (ii) the venue of such Proceeding is improper; and (iii) this Agreement, any of the transactions contemplated
hereby or the subject matter hereof or thereof, may not be enforced in or by such courts.

 

Section
11.10. Construction. The parties hereto have jointly participated in the negotiation and drafting of this Agreement. In
the event of an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties hereto and no presumptions or burdens of proof shall arise favoring any party hereto by virtue of the authorship
of any of the provisions of this Agreement. Each defined term used in this Agreement has a comparable meaning when used in its
plural or singular form. Each gender-specific term used herein has a comparable meaning whether used in a masculine, feminine
or gender-neutral form. As used in this Agreement, the word “including” and its derivatives means “without limitation”
and its derivatives, the word “or” is not exclusive and the words “herein,” “hereof,” “hereby,”
“hereto” and “hereunder” refer to this Agreement as a whole. References to Sections or Articles are to
the Sections and Articles of this Agreement, unless otherwise specified. As used in this Agreement, the term “commercially
reasonable efforts” shall not include any obligation of Buyer to expend money (other than nominal amounts), commence or
participate in any judicial or administrative action, proceeding or investigation or grant any material accommodation (financial
or otherwise) to any Person. No investigation or knowledge of Buyer in any way affects the representations, warranties, covenants
and obligations of the Seller in this Agreement or the rights and remedies that may be exercised by the Buyer Indemnitees with
respect thereto. The section headings contained in this Agreement are inserted for convenience of reference only and shall not
affect in any way the meaning or interpretation of this Agreement. Reference in this Agreement to any legal term for any Law,
action, remedy, method of judicial proceeding, legal document, legal status, court, official or any other legal concept or thing
shall in respect of any jurisdiction other than the United States be deemed to include that legal concept or thing in that other
jurisdiction which most nearly approximates that United States legal term (in addition to any other analogous legal concept or
term specified). Any capitalized terms used in any schedule (including the Disclosure Schedule) or exhibit attached hereto and
not otherwise defined therein shall have the meanings set forth in this Agreement (or, in the absence of any ascribed meaning,
the meaning customarily ascribed to any such term in Seller’s industry or in general commercial usage). Where any provision
in this Agreement refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall
be applicable whether the action in question is taken directly or indirectly by such Person. All references to dollars (or the
symbol “$”) contained herein shall be deemed to refer to United States dollars. Time is of the essence in the performance
of the parties’ respective obligations under this Agreement. Any item disclosed in any particular section or subsection
of the Disclosure Schedule shall be deemed to be disclosed in any other section or subsection of the Disclosure Schedule if the
relevance of such item to the other section or subsection is readily apparent on the face of such disclosure.

 

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Section
11.11. “Seller” Joint and Several. The representations, warranties, covenants and agreements of Parent and
each Subsidiary, the entities defined as the singular “Seller”, are given, made or entered into, as applicable, jointly
and severally.

 

Section
11.12. Expenses. Each of the parties hereto will bear all legal, accounting, and other fees and expenses incurred by it
or on its behalf in connection with the transactions contemplated by this Agreement, whether or not such transactions are consummated.

 

Section
11.13. Counterparts. This Agreement may be executed in any number of counterparts, and by the different parties hereto
in separate counterparts, each of which when executed shall be deemed an original, but all of which shall be considered one and
the same agreement, and shall become effective when each party has received counterparts signed by each of the other parties,
it being understood and agreed that delivery of a signed counterpart signature page to this Agreement by facsimile transmission,
by electronic mail in portable document format (“.pdf”) form, or by any other electronic means intended to preserve
the original graphic and pictorial appearance of a document shall constitute valid and sufficient delivery thereof.

 

Section
11.14. Waiver of Jury Trial. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS. EACH PARTY HERETO
CERTIFIES AND ACKNOWLEDGES THAT: (I) NO REPRESENTATIVE OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF ANY SUCH PROCEEDING; (II) SUCH PARTY HAS
CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (III) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY; AND (IV) SUCH PARTY HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
11.14.

 

Section
11.15. Buyer’s Parent Guaranty. Ligand Pharmaceuticals Incorporated (“Guarantor”) agrees
with Seller as follows:

 

(a)
The Guarantor hereby unconditionally and irrevocably guarantees to each Selling Stockholder the payment and performance when due
of all covenants, obligations and liabilities of Buyer arising under this Agreement at or after the Closing (collectively, the
“Obligations”). Seller will have recourse against the Guarantor for payment of the Obligations at any time
after the Obligations, or any part thereof, have not been paid in full when due or performed when required by this Agreement,
as if the Obligations were directly those of the Guarantor.

 

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(b)
The Obligations shall survive any termination of this Agreement and cannot be transferred or assigned by the Guarantor. The Guarantor
acknowledges and agrees that the Obligations are continuing, absolute and unconditional and, without limiting the generality of
the foregoing, shall not be released, discharged, diminished, limited or otherwise affected by (and the Guarantor hereby consents
to or waives, as applicable, to the fullest extent permitted by applicable Law):

 

(i)
any change in the existence, structure, constitution, name, objects, powers, organization, share capital, constituent
documents, business, shareholders, directors or management of the Buyer or the Guarantor;

 

(ii)
any amalgamation, merger or consolidation of either the Buyer or the Guarantor into or with any other Person, or any sale, lease
or transfer of all or any of the assets of either the Buyer or the Guarantor to any other Person;

 

(iii)
any lack or limitation of power, incapacity or disability on the part of either Buyer or Guarantor or any of their respective
directors, officers, shareholders, employees or agents, or any other irregularity, defect or informality, or any fraud, on the
part of any of either Buyer or Guarantor or any of their respective directors, officers, shareholders, employees or agents with
respect to any or all of the Obligations;

 

(iv)
the insolvency, bankruptcy, reorganization, winding-up or financial condition of either Buyer or Guarantor at any time;

 

(v)
any defense based upon or arising out of any bankruptcy, insolvency, reorganization, moratorium, arrangement, liquidation, dissolution
or other proceeding commenced by either Buyer or Guarantor or any other Person;

 

(vi)
any loss or impairment of any right of either Buyer or Guarantor to subrogation, reimbursement or contribution; or

 

(vii)
any other act or omission of any kind by either Buyer or Guarantor, whether similar or dissimilar to the foregoing, which would,
but for the provisions of this Section 11.15 constitute a legal or equitable discharge, limitation or reduction of the Guarantor’s
obligations under this guarantee (other than performance in full of the Obligations).

 

[Signature
Page Follows]

 

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IN WITNESS WHEREOF,
Seller and Buyer have caused this Agreement to be executed on the date first set forth above.

	 	
        ICAGEN, INC.:

         

         

        By: /s/ Richard Cunningham               

        Name:Richard Cunningham

        Title: Chief Executive Officer

         

         

	 	
        ICAGEN CORP:

         

         

        By: /s/ Richard Cunningham               

        Name:Richard Cunningham

        Title: Chief Executive Officer

         

	 	
        XR PRO SCIENCES, INC.:

         

         

        By: /s/ Richard Cunningham               

        Name:Richard Cunningham

        Title: Chief Executive Officer

         

	 	
        CALDERA DISCOVERY, INC.:

         

         

        By: /s/ Richard Cunningham               

        Name:Richard Cunningham

        Title: Chief Executive Officer

         

 

[Signature
Page to Asset Purchase Agreement]

 

     

     

    

 

		ADJACENT ACQUISITION CO., LLC:
	 	 
	 	By:	/s/ Charles Berkman
	 		Name:	Charles Berkman
	 		Title:	Manager
	 	 
	 	Solely for purposes of Section 11.15:
	 	 
	 	LIGAND PHARMACEUTICALS INCORPORATED
	 	 
	 	By:	/s/ Charles Berkman
	 		Name:	Charles Berkman
	 	 	Title:	SVP, GC & Secretary

 

[Signature
Page to Asset Purchase Agreement]

 

     

     

    

 

EXHIBIT A

 

EARNOUT COMPUTATION SPECIFICS

 

The contingent earnout payments to which
Seller shall be entitled shall be equal to the sum of 15% of any and all Third-Party Revenue actually received on or before December
31, 2027 by Buyer or its Affiliates and 1% of any and all Direct Revenue actually received on or before December 31, 2027 by Buyer
or its Affiliates, up to a maximum combined cumulative aggregate earnout payment of $25,000,000, all as determined and defined
as follows:

 

 1. Financial Terms.

 

1.1
Percentage of Revenue. Buyer shall pay Seller the sum of 15% of any and all Third-Party Revenue actually received on or
before December 31, 2027 by Buyer or its Affiliates and 1% of any and all Direct Revenue actually received on or before
December 31, 2027 by Buyer or its Affiliates, up to a maximum combined cumulative aggregate earnout payment of $25,000,000.
Seller shall have no entitlement to receive any earnout payments (a) other than as a percentage of Revenue, or (b) in respect
of any Revenue to the extent any earnout payment in excess of a cumulative aggregate earnout payment of $25,000,000 would be
indicated, or (c) in respect of any Revenue to the extent any Revenue actually received by Buyer or its Affiliates on or
after January 1, 2028 would be indicated. Neither Buyer nor any of its Affiliates shall structure the consideration or
compensation that it receives or is entitled to receive, in such a way as to avoid, reduce, or delay in an unreasonably
contrived way any payment that would otherwise be due to Seller under the Asset Purchase Agreement.

 

1.2 Quarterly Revenue Payments Reports.
Buyer agrees to, within 45 calendar days after the conclusion of the calendar quarter in which any Revenue is first received and
after the conclusion of each successive calendar quarter until the fourth quarter of 2027 deliver to Seller a Revenue Payments
report. Each Revenue Payments report shall be accompanied by the Revenue Payments due. (It is understood that even if Buyer fails
to provide a written Revenue Payments report as to a calendar quarter, the Revenue Payment is nonetheless due 45 calendar days
following the conclusion of the calendar quarter.)

 

1.3 Taxes. Amounts paid hereunder
shall be treated for tax purposes as consideration for the assets acquired under the Asset Purchase Agreement. Section 9.1 of the
Asset Purchase Agreement shall apply to any transfer taxes imposed on the payments.

 

1.4 Setoff. If at the time a Revenue
Payment is due, either (i) a liquidated amount arising under the Asset Purchase Agreement or another ancillary agreement is due
from Seller to Buyer, or (ii) Buyer has incurred and paid expenses or judgments arising from the failure of Section 3.12(h) of
the Asset Purchase Agreement to be true and correct (disregarding the words “to the Knowledge of Seller” in such Section
3.12(h) and without regard to the date of a third party claim), then Buyer may apply the Revenue Payment to the amounts due from
Seller, or the amount of expenses or judgments paid, up to the maximum of the amount due.

 

 2. Other Provisions.

 

2.1
Records.

 

(a)
Maintenance. Buyer agrees to keep (and Buyer agrees to cause its Affiliates to keep) complete and accurate books and
records pertaining to such Person’s Revenue (in sufficient detail to confirm the accuracy of Revenue Payment
calculations made hereunder for a period of at least three years after the relevant payment is owed to Seller pursuant to this
Agreement.

 

    

     

    

 

CONFIDENTIAL

 

(b) Records
Examination (“Audit”). Buyer agrees to (and agrees to cause each Affiliate of Buyer to) upon written request
of Seller permit its relevant books and records to be examined no more than once per calendar year by an independent
certified public accountant from a nationally or regionally recognized accounting firm selected by Seller (and reasonably
acceptable to Buyer) to verify the accuracy of the Revenue Payments, upon written notice given at least 10 days in advance.
Any such auditor shall enter into a reasonable and customary confidentiality agreement before commencing any such audit,
including restrictions on dissemination of material non-public information, and shall not disclose Buyer’s confidential
information to Seller. Such examination is to be made during normal business hours and may cover the relevant books and
records for Revenue in any calendar year ending not more than three years before the date of such request, but only for those
periods that have not been subject to a prior examination. Such examination shall be at the expense of Seller, except in the
event that the results of the examination reveal an underpayment of Revenue Payments by Buyer of 5% or more over the period
being examined, in which case the reasonable costs and expenses of such examination shall be paid (or reimbursed to Seller,
if such amounts have already been paid) by Buyer. If the examination establishes that Buyer underpaid any amounts due
hereunder, then Buyer agrees to pay to Seller such deficiency within 20 days after Buyer’s receipt of a written report
thereof, including interest thereon at a rate of 6.00% per annum simple interest from the date payment was due, and, if
applicable pursuant to the previous sentence, the costs and expenses of the examination. The results of any such examination
shall be Buyer’s confidential information.

 

2.2 Buyer’s Objection. If
Buyer objects to the report of Seller’s auditor, it shall notify Seller promptly, and then the dispute shall be resolved
under Section 2.9(c)(ii) of the Asset Purchase Agreement.

 

2.3 No Duty; No Guaranteed Payments.
Buyer shall use Commercially Reasonable Efforts to develop and commercialize Products and/or to enter into out-licenses for the
counterparty’s development/commercialization of Products or of technology that could be developed toward Products. “Commercially
Reasonable Efforts” means efforts normally used by Buyer with respect to a product or technology owned by Buyer which is
of similar market potential at a similar stage in the development or life of such product or technology, taking into account issues
of safety, efficacy, product profile, the competitiveness of the marketplace, the proprietary position of the product or technology,
the regulatory structure involved, actual or potential profitability of the product or technology and other relevant commercial
factors. Commercially Reasonable Efforts shall be determined on a market-by-market and indication-by-indication basis for a particular
Product or technology, and it is anticipated that the level of effort may be different for different markets and may change over
time, reflecting changes in the status of the Product or technology and the indications and/or market(s) involved.

 

2.4
Acquisitions.

 

(a) Buyer
shall not assign this Agreement or effect a consolidation with or merger into any other Person that includes the assets that
are subject to this Agreement or transfer all or substantially all of its assets (if such transfer includes the assets that
are subject to this Agreement) to any Person, unless the Person formed by such consolidation or into which Buyer is merged,
or the Person that acquires all or substantially all of Buyer’s assets (the “Surviving Person”)
shall expressly assume all Revenue Payment and other obligations under this Exhibit A.

 

(b) The
proceeds received by Buyer or its Affiliates from a Section 2.4(a) consolidation, merger or transfer of substantially all
assets shall not be considered Revenue.

 

    A-2

     

    

 

CONFIDENTIAL

 

(c) Buyer and its Affiliates shall be relieved of all obligations
for Revenue Payments upon any such Section 2.4(a) consolidation, merger or transfer of substantially all assets, and Seller shall
thereafter look only to the Surviving Person, and the Surviving Person shall succeed to, and be substituted for, and may exercise
every right and power of, Buyer under this Exhibit A with the same effect as if the Surviving Person had been named as Buyer herein.

 

2.5 US Dollars. Revenue amounts
shall be determined from the books and records of Buyer and its Affiliates, maintained in accordance with GAAP. With respect to
Revenue amounts (including constituents thereof, such as the deductions used in the computation of Net Sales) not denominated in
United States Dollars, Buyer shall convert the Revenue amounts (including constituents thereof) from the applicable foreign currency
into United States Dollars at the exchange rate reported in The Wall Street Journal, Eastern United States Edition, for the last
trading day of the applicable calendar quarter. Based on the resulting Revenue in United States Dollars, the then applicable Revenue
Payments shall be calculated.

 

2.6 Affiliates. Buyer is responsible
and liable to Seller for all actions and omissions of Buyer’s Affiliates that would be a breach of any of Buyer’s obligations
under this Exhibit A if such action were done or omitted by Buyer hereunder.

 

2.7
Public Announcements.

 

(a) Any
public or nonconfidential private disclosure of Revenue Payments shall be made only with the prior consent of Buyer, which may
be withheld in its sole discretion, unless a public announcement is required by Law.

 

(b)
Notwithstanding the above, once a public disclosure has been made without violation of this Section, Seller shall be free to
disclose to Third Parties any information contained in said public disclosure, without further consent, so long as such
disclosure does not indicate that such information remains true and correct if in fact it is no longer true and correct.

 

3. Definitions.
Defined terms not otherwise defined in this Exhibit A (e.g., Affiliate, Buyer, GAAP, Law, Person, Seller, Third Party) shall
have the meanings ascribed to them in the Asset Purchase Agreement. In addition:

 

3.1 “Combination Product”
means an indivisible Product containing or consisting of one or more Mono Products, together with one or more Other Active Ingredients.

 

3.2 “Direct Revenue”
means all gross cash amounts and the cash fair market value (determined by independent appraisal) at the time of receipt of all
non-cash considerations which are actually received on or before December 31, 2027 by Buyer or any Affiliate of Buyer for Net Sales.

 

For avoidance of doubt: consideration received
by Buyer or any Affiliate of Buyer in good faith for services (whether or not formally designated as being for services) shall
not be within the definition of “Direct Revenue.”

 

“Non-cash considerations” does
not mean future contingent or liquidated obligations to pay cash (e.g., the estimated present value of future royalties, or a promissory
note); it means consideration in a form such as capital stock or a cross-license received.

 

     A-3

     

    

 

CONFIDENTIAL

 

3.3 “Mono Product” means
a Product consisting solely of an active pharmaceutical ingredient, moiety or technology that could not practically have been developed
or produced but for use of Seller IP, and no Other Active Ingredient.

 

3.4 “Net Sales” means
the gross amount invoiced by Buyer or an Affiliate, or received by Buyer or its Affiliate despite the absence of an invoice, for
the sale or license or other disposition of a particular Product to a Person who is not an Affiliate of Buyer, less the following
deductions:

 

(a)
Trade, cash and quantity discounts;

 

(b)
Discounts, refunds, rebates actually taken, chargebacks, retroactive price adjustments, and any other allowances which
effectively reduce the net selling price (other than such which have already diminished the gross amount invoiced),
including, without limitation, Medicaid, institutional and governmental rebates (other than such which have already
diminished the gross amount invoiced);

 

(c)
Credits or allowances granted on returns or rejections of Product actually sold;

 

(d)
Amounts invoiced for Product sales but actually written off in good faith as uncollectible (net of any recoveries on
written-off debt);

 

(e)
Shipping, handling, freight, postage, insurance and transportation charges, but all only to the extent included as a separate
line item in the gross amount invoiced;

 

(f) Any
tax imposed on the production, sale, delivery or use of the Product, including, without limitation, import, export, sales, use,
excise or value added taxes and customs and duties, but all only to the extent included as a separate line item (e.g., “taxes”)
in the gross amount invoiced; and

 

(g) Any
credits or allowances given or made with respect to wastage replacement.

 

The Net Sales for Mono Products shall be calculated as aforesaid.

 

The Net Sales for Combination Products shall be calculated as
follows:

 

(i) if
Buyer or its Affiliate separately sells in such country or other jurisdiction, (a) a Mono Product containing as its sole active
ingredient(s) the active pharmaceutical ingredient, moiety or technology (that could not practically have been developed or produced
but for use of Seller IP) which is contained in such Combination Product; and (b) products containing as their sole active ingredient(s)
the Other Active Ingredient(s) in such Combination Product, then the Net Sales attributable to such Combination Product shall be
calculated on a Product-by-Product basis and country-by-country basis by multiplying actual Net Sales of such Combination Product
by the fraction A/(A+B) where: “A” is Buyer’s (or its Affiliate’s) average Net Sales price during the period to which
the Net Sales calculation applies for the Mono Product in such country or other jurisdiction and “B” is Buyer’s (or its
Affiliate’s) average Net Sales price during the period to which the Net Sales calculation applies in such country or other jurisdiction,
for products that contain as their sole active ingredient(s) the Other Active Ingredient(s) with the equivalent dosage as in such
Combination Product;

 

     A-4

     

    

 

CONFIDENTIAL

 

(ii) if
Buyer or its Affiliate separately sells in such country or other jurisdiction such Mono Product but does not separately sell in
such country or other jurisdiction products containing as their sole active ingredient(s) the Other Active Ingredient(s) in such
Combination Product, the Net Sales attributable to such Combination Product shall be calculated by multiplying the Net Sales of
such Combination Product by the fraction A/C where: “A” is Buyer’s (or its Affiliate’s) average Net Sales price during
the period to which the Net Sales calculation applies for such Mono Product in such country or other jurisdiction, and “C”
is Buyer’s (or its Affiliate’s) average Net Sales price in such country or other jurisdiction during the period to which the Net
Sales calculation applies for such Combination Product;

 

(iii) if
Buyer or its Affiliates do not separately sell in such country or other jurisdiction such a Mono Product but do separately sell
products containing as their sole active ingredient(s) the Other Active Ingredient(s) contained in such Combination Product, the
Net Sales attributable to such Combination Product shall be calculated by multiplying the Net Sales of such Combination Product
by the fraction (D-E)/D where: “D” is the average Net Sales price during the period to which the Net Sales calculation
applies for such Combination Product in such country or other jurisdiction and “E” is the average Net Sales price during
the period to which the Net Sales calculation applies for products that contain as their sole active ingredient(s) the Other Active
Ingredient(s) with the equivalent dosage as in such Combination Product; and

 

(iv) if
Buyer or its Affiliates do not separately sell in such country or other jurisdiction either such a Mono Product or products containing
as their sole active ingredient(s) the Other Active Ingredient(s) in such Combination Product, the Net Sales attributable to such
Combination Product shall be determined by the parties in good faith based on the relative fair market value (whether or not hypothetical)
of such a Mono Product and of a product containing as its sole active ingredient(s) such Other Active Ingredient(s). If the parties
cannot agree on such relative value, such disagreement shall be referred to an independent accountant in accordance with the provisions
of the Asset Purchase Agreement.

 

In the event a Product is sold as the Product
component of a bundled combination of products and/or devices, the Net Sales for such Product shall be calculated in good faith
by analogy to the most closely applicable of items (i)-(iv) above.

 

Dispositions of Products between Buyer
and its Affiliates shall not be included in the calculation for Net Sales where the Products in question will be resold to an independent
Third Party distributor or agent or end user by the Affiliate where such revenue received by the Affiliate from such resale is
included in Net Sales. Revenue received by Buyer (or any of its Affiliates) from transactions with an Affiliate, where the Product
in question is used by the Affiliate solely for such Affiliate’s internal purposes shall be included in Net Sales at a price
equal to the fair market value of such transfer(s). .

 

3.5 “Other Active Ingredient”
means, with respect to a (Combination) Product, an active pharmaceutical ingredient, moiety or technology that an independent Third
Party with sufficient experience and expertise in similar medical products would reasonably determine has pharmacological activity
in the cure, treatment or prevention of disease that is separate from the effect of the active pharmaceutical ingredient, moiety
or technology that could not practically have been developed or produced but for use of Seller IP. Drug delivery vehicles, stabilizers,
solvents, adjuvants and excipients shall not be deemed to be active pharmaceutical ingredients and their presence shall not be
deemed to create a Combination Product.

 

3.6 “Product” means
a pharmaceutical product that could not in whole or in part have been identified, selected or determined to have biologic activity
or utility and/or have been developed or produced but for use of Seller IP.

 

     A-5

     

    

 

CONFIDENTIAL

 

3.7“Revenue”
means all Third-Party Revenue and all Direct Revenue.

 

3.8 “Revenue Payment”
and “Revenue Payments,” as used herein, mean the prescribed-herein periodic payments to Seller, calculated as
a percentage of Third-Party Revenue and/or as a percentage of Direct Revenue, as the case may be.

 

3.9 “Seller Employees” mean
any employee of Seller or any of its subsidiaries that are hired by Buyer or its Affiliates

 

3.10 “Seller IP” is
the Intellectual Property Rights of the Seller acquired under the Asset Purchase Agreement, as described on Section 3.12(a)
of the Seller Disclosure Schedule to the Asset Purchase Agreement.

 

3.11 “Seller Portfolio” means
the Seller’s unpartnered programs for the targets BCAT2, 3HIB, GYS1,cGAS, TRPML1, Nav1.9, ApoL1, any chemical library of
Seller or its subsidiaries which is transferred to Buyer pursuant to the Asset Purchase Agreement (other than compounds currently
commercially available or currently possessed by Buyer, as evidenced by written documentation) and any improvements, optimizations,
derivatives and modifications thereto.

 

3.12 “Third-Party Revenue” means all
gross cash amounts and the cash fair market value (determined by independent appraisal) at the time of receipt of all non-cash
considerations which are actually received on or before December 31, 2027 by Buyer or any Affiliate of Buyer for:

 

(a)
upfront payments in respect of out-licenses of, collaborations, partnerships, co-development or other similar transactions
(herein “Transactions”) (i) in respect to the Seller Portfolio, (ii) in respect to Products, (iii) in respect to
Seller IP or (iv) for which the Seller Employees are utilized in performing more than a de minimis amount of services;

 

(b)
milestone payments in respect of any Transactions (i) in respect to the Seller Portfolio, (ii) in respect to Products, (iii)
in respect to Seller IP or (iv) for which the Seller Employees are utilized in performing more than a de minimis amount of
services;

 

(c)
running royalties in respect of any Transactions (i) in respect to the Seller Portfolio, (ii) in respect to Products, (iii)
in respect to Seller IP or (iv) for which the Seller Employees are utilized in performing more than a de minimis amount of
services;

 

(d)
payments in the nature of royalties in respect of any Transactions (i) in respect to the Seller Portfolio, (ii) in respect to
Products, (iii) in respect to Seller IP or (iv)for which the Seller Employees are utilized in performing more than a de
minimis amount of services;

 

(e) With
the exception of Section 2.4 transactions, the assignment of Seller Portfolio, Product programs or of Seller IP or a significant
portion of the assets acquired by Buyer from Seller and its subsidiaries; or

 

(f) the
grant of any option for any of the foregoing.

 

     A-6

     

    

 

CONFIDENTIAL

 

By way of non-limiting example, if any
Seller Employee is named in any contract or agreement related to a Transaction, is named as an inventor or is a signatory for any
intellectual property utilized or developed with respect to a Transaction, any Seller Employee signs any report required to be
delivered as part of the terms of a Transaction, or is appointed to any committees established for the purposes of a Transaction
then the “more than a de minimis amount of services” standard of this Section 3.12 is satisfied with respect to such
Transaction. In addition, by way of non-limiting example, if the Buyer is the signatory to any agreement related to a Transaction
then the “more than a de minimis amount of services” standard of this Section 3.12 is satisfied with respect to such
Transaction.

 

For avoidance of doubt: consideration received
by Buyer or any Affiliate of Buyer in good faith for services shall not be within the definition of “Third-Party Revenue”;
provided that upfront payments in connection with a Transaction (i) in respect to the Seller Portfolio, (ii) in respect to Products,
(iii) in respect to Seller IP or (iv) for which the Seller Employees are utilized in performing more than a de minimis amount of
services shall be within the definition of “Third-Party Revenue.”

 

“Non-cash considerations” does
not mean future contingent or liquidated obligations to pay cash (e.g., the estimated present value of future royalties, or a promissory
note); it means consideration in a form such as capital stock or a cross-license received. Future contingent or liquidated obligations
to pay cash shall be treated as cash consideration if and when (if prior to December 31, 2027) actually paid.

 

    A-7

     

    

 

EXHIBIT B

 

BILL OF SALE

 

[________] [__], 2020

 

This Bill of Sale (this
“Bill of Sale”) is entered into by and between Icagen, Inc., a Delaware corporation (“Parent”),
Icagen Corp., a Nevada corporation, XRPro Sciences, Inc., a Delaware corporation, and Caldera Discovery, Inc., a Delaware corporation
(each, a “Subsidiary”, and the Subsidiaries, together with Parent, collectively referred to as “Seller”),
on the one hand, and Adjacent Acquisition Co., LLC, a Delaware limited liability company (“Buyer”), on the other
hand.

 

WITNESSETH:

 

WHEREAS, Seller and
Buyer are parties to that certain Asset Purchase Agreement, dated as of even date herewith (the “Purchase Agreement”),
pursuant to which, among other things, Seller agreed to sell, assign, transfer, convey and deliver to Buyer, and Buyer agreed to
purchase from Seller, all of Seller’s right, title and interest in and to the Transferred Assets.

 

NOW, THEREFORE, pursuant
to the terms and conditions of the Purchase Agreement, and for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Seller and Buyer hereby agree as follows:

 

1. 
Defined Terms. Capitalized terms used but not defined herein shall have the respective meanings assigned to such terms in
the Purchase Agreement.

 

2. 
Sale of Assets. Effective as of the Closing, Seller hereby sells, assigns, transfers, conveys and delivers to Buyer, free
and clear of any Liens, all of Seller’s right, title and interest in, to and under the Transferred Assets (except for the
Assumed Contracts which are being conveyed to Buyer pursuant that certain Assignment and Assumption Agreement of even date herewith
and for any Transferred Assets which are being conveyed to Buyer pursuant to that certain IP Assignment Agreement of even date
herewith).

 

3. 
Third-Party Consents. The terms of Section 2.5 of the Purchase Agreement are hereby incorporated by reference.

 

4. 
Further Assurances. At any time or from time to time hereafter, Seller shall, at the reasonable request of Buyer, take all
action as may be necessary to put Buyer in actual possession and operating control of the Transferred Assets, and shall execute,
acknowledge and deliver such further instruments of conveyance, power of attorney, sale, transfer or assignment, and take such
other actions as Buyer may reasonably request in order to more effectively consummate the transactions contemplated by this Bill
of Sale.

 

5. 
Effect of Agreement. This Bill of Sale is intended to evidence the consummation of the transactions contemplated by the
Purchase Agreement and is subject to the terms and conditions set forth in the Purchase Agreement. This Bill of Sale is made without
representation or warranty, except as provided in the Purchase Agreement. Nothing contained in this Bill of Sale shall be construed
to supersede, limit or qualify any provision of the Purchase Agreement. To the extent there is a conflict between the terms and
provisions of this Bill of Sale and the terms and provisions of the Purchase Agreement, the terms and provisions of the Purchase
Agreement shall govern.

 

 

     

     

    

 

6. 
Counterparts. This Bill of Sale may be executed in multiple counterparts, and by the different parties hereto in separate
counterparts, each of which shall for all purposes be deemed to be an original, and all of which taken together shall constitute
one and the same instrument. A signature delivered on any counterpart by facsimile or other electronic means shall for all purposes
be deemed to be an original signature to this Bill of Sale.

 

7. 
Amendment. This Bill of Sale may not be amended or modified except by an instrument in writing signed by each of Seller
and Buyer.

 

8. 
Governing Law. This Bill of Sale shall in all respects be construed in accordance with and governed by the substantive laws
of the State of Delaware, without reference to its choice of law rules.

 

9. 
Successors and Assigns. This Bill of Sale and the various rights and obligations arising hereunder shall inure to the benefit
of and be binding upon Buyer and Seller, and their respective successors and permitted assigns.

 

10. 
Assignment. Neither this Bill of Sale nor any of the rights, interests or obligations hereunder may be assigned by any party
hereto, in whole or in part (whether by operation of law or otherwise), without the prior written consent of the other party hereto;
provided, however, that without such prior written consent: (a) Buyer may assign its rights and/or delegate its obligations
under this Bill of Sale (in whole but not in part) to any of its Affiliates; (b) any or all of the rights and interests and/or
obligations of Buyer under this Bill of Sale: (i) may be assigned and/or delegated to any purchaser of a substantial portion of
the assets of Buyer or any of its Affiliates (whereupon Buyer shall cease to have any further liabilities or obligations hereunder);
and (ii) may be assigned as a matter of law to the surviving entity in any merger, consolidation, share exchange or reorganization
involving Buyer or any of its Affiliates; and (c) Buyer and its Affiliates shall be permitted to collaterally assign, at any time
and in their sole discretion, their respective rights hereunder to any lender or lenders providing financing to Buyer or any of
its Affiliates (including any agent for any such lender or lenders) or to any assignee or assignees of such lender, lenders or
agent.

 

[Signature Page Follows]

 

    B-2

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Bill of Sale to be duly executed as of the date first set forth above.

 

	 	SELLER:
	 	 
	 	ICAGEN, INC.:
	 	 
	 	By:	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 
	 	ICAGEN CORP:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	XR PRO SCIENCES, INC.:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	CALDERA DISCOVERY, INC.:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	BUYER:
	 	 
	 	ADJACENT ACQUISITION CO., LLC:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    B-3

     

    

 

EXHIBIT
C

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

[________] [__], 2020

 

This Assignment and
Assumption Agreement (this “Assignment and Assumption”) is entered into by and between Icagen, Inc., a Delaware
corporation (“Parent”), Icagen Corp., a Nevada corporation, XRPro Sciences, Inc., a Delaware corporation, and
Caldera Discovery, Inc., a Delaware corporation (each, a “Subsidiary”, and the Subsidiaries, together with Parent,
collectively referred to as “Seller”), on the one hand, and Adjacent Acquisition Co., LLC, a Delaware limited
liability company (“Buyer”), on the other hand.

 

WITNESSETH:

 

WHEREAS, Seller and
Buyer are parties to that certain Asset Purchase Agreement, dated as of even date herewith (the “Purchase Agreement”),
pursuant to which, among other things, Seller agreed to sell, assign, transfer, convey and deliver to Buyer, and Buyer agreed to
purchase from Seller, all of Seller’s right, title and interest in and to the Assumed Contracts, and Buyer agreed to assume,
perform and discharge all of the Assumed Liabilities.

 

NOW, THEREFORE, pursuant
to the terms and conditions of the Purchase Agreement, and for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Seller and Buyer hereby agree as follows:

 

1. 
Defined Terms. Capitalized terms used but not defined herein shall have the respective meanings assigned to such terms in
the Purchase Agreement.

 

2. 
Assignment of Assumed Contracts. Effective as of the Closing, Seller hereby sells, assigns, transfers, conveys and delivers
to Buyer all of Seller’s right, title and interest in, to and under the Assumed Contracts. Effective as of the Closing, Buyer
hereby accepts the foregoing assignment.

 

3. 
Assumption of Liabilities. Effective as of the Closing, Buyer hereby assumes and agrees to pay, perform and discharge when
due only the Assumed Liabilities. This Assignment and Assumption does not release Seller from any, and Seller shall remain liable
for all, Excluded Liabilities.

 

4. 
Third-Party Consents. The terms of Section 2.5 of the Purchase Agreement are hereby incorporated by reference.

 

5. 
Further Assurances. At any time or from time to time hereafter, Seller shall, at the reasonable request of Buyer, execute,
acknowledge and deliver such further instruments of conveyance, power of attorney, sale, transfer or assignment, and take such
other actions as Buyer may reasonably request in order to more effectively consummate the transactions contemplated by this Assignment
and Assumption.

 

6. 
Effect of Agreement. This Assignment and Assumption is intended to evidence the consummation of the transactions contemplated
by the Purchase Agreement and is subject to the terms and conditions set forth in the Purchase Agreement. This Assignment and Assumption
is made without representation or warranty, except as provided in the Purchase Agreement. Nothing contained in this Assignment
and Assumption shall be construed to supersede, limit or qualify any provision of the Purchase Agreement. To the extent there is
a conflict between the terms and provisions of this Assignment and Assumption and the terms and
provisions of the Purchase Agreement, the terms and provisions of the Purchase Agreement shall govern.

 

     

     

    

 

7. Counterparts.
This Assignment and Assumption may be executed in multiple counterparts, and by the different parties hereto in separate counterparts,
each of which shall for all purposes be deemed to be an original, and all of which taken together shall constitute one and the
same instrument. A signature delivered on any counterpart by facsimile or other electronic means shall for all purposes be deemed
to be an original signature to this Assignment and Assumption.

 

8. Amendment.
This Assignment and Assumption may not be amended or modified except by an instrument in writing signed by each of Seller and Buyer.

 

9. Governing
Law. This Assignment and Assumption shall in all respects be construed in accordance with and governed by the substantive laws
of the State of Delaware, without reference to its choice of law rules.

 

10. Successors
and Assigns. This Assignment and Assumption and the various rights and obligations arising hereunder shall inure to the benefit
of and be binding upon Buyer and Seller, and their respective successors and permitted assigns.

 

11. Assignment.
Neither this Assignment and Assumption nor any of the rights, interests or obligations hereunder may be assigned by any party hereto,
in whole or in part (whether by operation of law or otherwise), without the prior written consent of the other party hereto; provided,
however, that without such prior written consent: (a) Buyer may assign its rights and/or delegate its obligations under
this Assignment and Assumption (in whole but not in part), at any time and in their sole discretion, to any of its Affiliates;
(b) any or all of the rights and interests and/or obligations of Buyer under this Assignment and Assumption: (i) may be assigned
and/or delegated to any purchaser of a substantial portion of the assets of Buyer or any of its Affiliates (whereupon Buyer shall
cease to have any further liabilities or obligations hereunder); and (ii) may be assigned as a matter of law to the surviving entity
in any merger, consolidation, share exchange or reorganization involving Buyer or any of its Affiliates; and (c) Buyer and its
Affiliates shall be permitted to collaterally assign their respective rights hereunder to any lender or lenders providing financing
to Buyer or any of its Affiliates (including any agent for any such lender or lenders) or to any assignee or assignees of such
lender, lenders or agent.

 

[Signature Page Follows]

 

    C-2

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Assignment and Assumption to be duly executed as of the date first set forth above.

 

	 	SELLER:
	 	 
	 	ICAGEN, INC.:
	 	 
	 	By:	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 
	 	ICAGEN CORP:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	XR PRO SCIENCES, INC.:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	CALDERA DISCOVERY, INC.:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	BUYER:
	 	 
	 	ADJACENT ACQUISITION CO., LLC:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

     

     

    

 

EXHIBIT D

 

IP ASSIGNMENT AGREEMENT

 

[________] [__], 2020

 

This IP Assignment
Agreement (this “IP Assignment”) is entered into by and between Icagen, Inc., a Delaware corporation (“Parent”),
Icagen Corp., a Nevada corporation, XRPro Sciences, Inc., a Delaware corporation, and Caldera Discovery, Inc., a Delaware corporation
(each, a “Subsidiary”, and the Subsidiaries, together with Parent, collectively referred to as “Assignor”),
on the one hand, and Adjacent Acquisition Co., LLC, a Delaware limited liability company (“Buyer”), on the other
hand.

 

WITNESSETH:

 

WHEREAS, pursuant to
the terms of the Asset Purchase Agreement, dated as of even date herewith (the “Purchase Agreement”), by and
between Assignor and Buyer, the Assignor agreed to assign to Buyer all of its rights to the Transferred Assets that are Patents,
Trademarks and registered Copyrights or Domain Names (the “Assigned IP”).

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth below, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties acknowledge and agree as
follows:

 

1. 
Assignment. Assignor hereby irrevocably and unconditionally conveys, transfers, assigns, and delivers to Buyer all of its
right, title, and interest in and to the Assigned IP, free and clear of all Liens (other than Permitted Liens).

 

2. 
Unassignable IP. If any of the Assigned IP cannot be assigned as a matter of law (the “Unassignable IP Rights”),
Assignor hereby grants to Buyer an exclusive (without reservation), irrevocable, perpetual, worldwide, transferable, fully-paid
and royalty-free license, with the right to sublicense through multiple tiers, under the Unassignable IP Rights, to fully utilize
the Assigned IP in any manner without any restriction.

 

3. 
Assistance. Assignor agrees to perform all acts that are reasonably necessary to permit and assist Buyer or its successor
or assignee in perfecting and enforcing its rights in the Assigned IP.

 

4. 
License. Assignor hereby confirms that, to the extent the Assigned IP uses or incorporates any ideas, concepts, techniques,
inventions, processes, works of authorship or other intellectual property of Assignor not assigned to Buyer, (the “Background
Technology”), Assignor has granted Buyer a license to such Background Technology. The scope of such license is perpetual,
irrevocable, worldwide, fully-paid, royalty-free, transferable, and sublicenseable, and includes the right to use, reproduce, create
derivative works of, distribute, display, and perform the Background Technology. Notwithstanding the foregoing, to the extent such
prior license grant is deemed ineffective for any reason, Assignor hereby irrevocably and unconditionally grants to Buyer such
license to the Background Technology.

 

5. 
Representations and Warranties. Assignor represents and warrants that it has the full right and authority to enter into
this IP Assignment and to grant the rights granted and perform its obligations hereunder, and that Assignor has not granted to
any third party any security interest, option, Lien, license, or encumbrance of any nature, on the Assigned IP.

 

     

     

    

 

6. No
Royalty Obligations. Assignor acknowledges and agrees that Buyer or its successors or assignees shall not owe Assignor any
royalties or other monetary obligations with respect to any of the Assigned IP, Unassignable IP Rights, Background Technology,
or any other proprietary rights related to the Business.

 

 7. General.

 

(a) Governing
Law. This IP Assignment shall be governed by and construed in accordance with the Laws of the State of Delaware that apply
to agreements made and performed entirely within the State of Delaware, without regard to the conflicts of law provisions thereof
or of any other jurisdiction.

 

(b) Waiver;
Amendment. Any agreement on the part of a party to any extension or waiver of any provision hereof shall be valid only if set
forth in an instrument in writing signed on behalf of such party. A waiver by a party of the performance of any covenant, agreement,
obligation, condition, representation or warranty shall not be construed as a waiver of any other covenant, agreement, obligation,
condition, representation or warranty. A waiver by any party of the performance of any act shall not constitute a waiver of the
performance of any other act or an identical act required to be performed at a later time. This IP Assignment may not be amended,
modified or supplemented except by written agreement of the parties.

 

(c) Severability.
If any provision of this IP Assignment is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this IP Assignment will remain in full force and effect. Any provision of this IP Assignment held invalid or unenforceable only
in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

(d) Construction.
This IP Assignment was negotiated by the parties with the benefit of legal representation and any rule of construction or interpretation
otherwise requiring this IP Assignment to be construed or interpreted against any party shall not apply to any construction or
interpretation hereof.

 

(e) Entire
Agreement. This IP Assignment constitutes the entire agreement among the parties to this IP Assignment and supersedes all other
prior agreements and understandings, both written and oral, among or between any of the parties with respect to the subject matter
hereof and thereof.

 

(f) Defined
Terms. Capitalized terms used but not defined herein will have the respective meanings assigned to such terms in the Purchase
Agreement.

 

(g) Counterparts.
This IP Assignment may be executed in any number of counterparts, and by the different parties hereto in separate counterparts,
each of which when executed shall be deemed an original, but all of which shall be considered one and the same agreement, and shall
become effective when each party has received counterparts signed by each of the other parties, it being understood and agreed
that delivery of a signed counterpart signature page to this IP Assignment by facsimile transmission, by electronic mail in portable
document format (“.pdf”) form, or by any other electronic means intended to preserve the original graphic and pictorial
appearance of a document shall constitute valid and sufficient delivery thereof.

 

[Signature Page Follows]

 

    D-2

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this IP Assignment to be duly executed as of the date first set forth above.

 

	 	ASSIGNOR:
	 	 
	 	ICAGEN, INC.:
	 	 
	 	By:	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 
	 	ICAGEN CORP:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	XR PRO SCIENCES, INC.:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	CALDERA DISCOVERY, INC.:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	BUYER:
	 	 
	 	ADJACENT ACQUISITION CO., LLC:
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

     

     

    

 

EXHIBIT E

 

TRANSITION SERVICES AGREEMENT

 

This TRANSITION
SERVICES AGREEMENT (this “Agreement”) is dated as of ________ _, 2020, by and between Icagen, Inc., a Delaware corporation
(“Seller”), to be renamed _______ and Adjacent Acquisition Co., LLC, a Delaware limited liability company (the
“Company”). Capitalized terms used herein shall have the meanings given thereto in the Asset Purchase Agreement
(as defined below).

 

WITNESSETH:

 

WHEREAS,
Seller and the Company are parties to an Asset Purchase Agreement dated as of February 10, 2020 (the “Asset Purchase Agreement”)
which requires the parties to enter into this Agreement;

 

NOW, THEREFORE,
subject to the terms, conditions, covenants and provisions of this Agreement, each of Seller and the Company mutually covenant
and agree as follows:

 

ARTICLE I

 

SERVICES PROVIDED

 

1.1 Transition
Services. Upon the terms and subject to the conditions set forth in this Agreement, Seller will provide each of those services
(hereinafter referred to individually as a “Seller Transition Service”, and collectively as the “Seller
Transition Services “) set forth in Schedule A hereto to the Company during the time period specified for each
such Seller Transition Service in such Schedule (hereinafter referred to collectively as the “Time Periods” for
all of the Transition Services, and individually a “Time Period” for a Transition Service).

 

1.2 Personnel.
In providing the Transition Services, the party providing such services (the “Provider”) may, as it deems necessary
or appropriate, (i) use the personnel of the Provider or its affiliates, and (ii) employ the services of third parties to the extent
that, and subject to the condition that, such third party services are routinely utilized to provide similar services to other
businesses of the Provider or are reasonably necessary for the efficient performance of such Transition Services.

 

1.3 Representatives.
Each of the Provider and the party receiving such services (the “Recipient”) shall nominate a representative to
act as its primary contact person to coordinate the provision of all of such party’s Transition Services (collectively, the “Primary
Coordinators”). Each Primary Coordinator may designate one or more service coordinators for each specific Transition Service
(the “Service Coordinators”). Each party may treat an act of a Primary Coordinator or Service Coordinator of another
party as being authorized by such other party without inquiring behind such act or ascertaining whether such Primary Coordinator
or Service Coordinator had authority to so act, provided, however, that no such Primary Coordinator or Service Coordinator
has authority to amend this Agreement. Seller and the Company shall advise each other promptly (in any case no more than five (5)
business days) in writing of any change in the Primary Coordinators and any Service Coordinator for a particular Transition Service,
setting forth the name of the Primary Coordinator or Service Coordinator to be replaced and the name of the replacement, and certifying
that the replacement Primary Coordinator or Service Coordinator is authorized to act for such party in all matters relating to
this Agreement, in the case of a Primary Coordinator or, in the case of a Service Coordinator, with respect to the Transition Service
for which such Service Coordinator has been designated. Seller and the Company each agree that all communications relating to the
provision of the Transition Services shall be directed to the Service Coordinators for such Transition Service with copies to the
Primary Coordinators. Seller’s initial Primary Coordinator shall be ___________. The Company’s initial Primary Coordinator
shall be Matthew Korenberg. For each Transition Service the Provider’s and Recipient’s initial Service Coordinator
is set forth on the Schedules.

 

    

     

    

 

1.4 Level
of Transition Services.

 

(a) The
Transition Services shall be of substantially the same type, quality and utilization levels, and shall be provided with substantially
the same degree of care and diligence, as such services had been provided prior to the closing under the Asset Purchase Agreement.

 

(b) A
Provider shall not be required to provide a Recipient with extraordinary levels of Transition Services, special studies, training,
or the like or the advantage of systems, equipment, facilities, training, or improvements procured, obtained or made after the
Closing Date by such Provider.

 

(c) In
addition to being subject to the terms and conditions of this Agreement for the provision of the Transition Services, Seller and
the Company each agree that the Transition Services provided by third parties shall be subject to the terms and conditions of any
agreements between the Provider and such third parties, which agreements shall be on substantially the same conditions as the Provider
would enter into with such third parties for its own account, and no such agreements shall be binding on the Recipient after the
term hereof without the Recipient’s express written consent. The Provider shall consult with the Recipient concerning the
terms and conditions of any such agreements to be entered into, or proposed to be entered into, or amended, with third parties
after the date hereof.

 

1.5 Limitation
of Liability.

 

The parties
hereto acknowledge and agree that the Transition Services are provided by the Provider: (i) at the request of the Recipient in
order to accommodate it following the Closing, (ii) at the costs set forth on the applicable Schedule hereto and with no expectation
of profit being made by the Provider thereon and (iii) with the expectation that the Provider is not assuming any financial or
operational risks, including those usually assumed by a service provider, except for those risks explicitly set forth herein. Accordingly,
each party agrees that, absent gross negligence or willful misconduct, the other party, its subsidiaries and affiliates and their
directors, officers, employees, representatives, consultants and agents shall not be liable for any direct, indirect, special,
incidental or consequential damages, including lost profits or savings, whether or not such damages are foreseeable, or for any
third party claims relating to the Transition Services or each party’s performance under this Agreement. Notwithstanding
anything to the contrary contained herein, in the event any Provider commits an error with respect to or incorrectly performs or
fails to perform any Transition Service, at the Recipient’s request, the Provider shall use reasonable efforts and in good
faith attempt to correct such error, re-perform or perform such Transition Service at no additional cost to such Recipient; provided
that, absent gross negligence or willful misconduct, and assuming that the Provider uses commercially reasonable data backup processes,
the Provider shall have no obligation to recreate any lost or destroyed data to the extent the same cannot be cured by the re-performance
of the Transition Service in question.

 

    E-2

     

    

 

1.6 Indemnity.

 

(a) The respective Recipient
agrees to indemnify and hold the respective Provider and its subsidiaries and affiliates and persons serving as officers, directors,
partners or employees thereof harmless from and against any damages, liabilities, losses, taxes, fines, penalties, costs and expenses
(each, a “Damage” and, collectively, the “Damages”) (including, without limitation, reasonable
fees of counsel) of any kind or nature whatsoever (whether or not arising out of third-party claims and including all amounts
paid in investigation, defense or settlement of the foregoing) which may be sustained or suffered by any of them arising out of
or based on any (i) gross negligence or willful misconduct on the part of the Recipient or (ii) the use, manufacture, sale and/or
other commercialization of any work product derived from the Transition Services, provided that the indemnity in clause (ii) shall
not prevent the Company from exercising any rights it may have under the Asset Purchase Agreement.

 

(b) The
respective Provider agrees to indemnify and hold the respective Recipient and its subsidiaries and affiliates and persons serving
as officers, directors, partners or employees thereof harmless from and against any Damages (including, without limitation, reasonable
fees of counsel) of any kind or nature whatsoever (whether or not arising out of third-party claims and including all amounts paid
in investigation, defense or settlement of the foregoing) which may be sustained or suffered by any of them arising out of or based
upon any gross negligence or willful misconduct on the part of the Provider.

 

1.7 Force
Majeure. Any failure or omission by a party in the performance of any obligation under this Agreement shall not be deemed a
breach of this Agreement or create any liability, if the same arises from any cause or causes beyond the control of such party,
including but not limited to, the following, which, for purposes of this Agreement shall be regarded as beyond the control of each
of the parties hereto: acts of God, fire, storm, flood, earthquake, governmental regulation or direction, acts of the public enemy,
war, rebellion, insurrection riot, invasion, strike or lockout; provided however that such party shall resume the performance whenever
such causes are removed.

 

1.8 Modification
of Procedures.

 

(a) Subject
to the procedure set forth in this Section 1.8 to the extent applicable, the Provider may make changes from time to time in its
standards and procedures for performing the Transition Services, provided that any such change shall be made with respect to all
or a significant portion of such Provider’s business and that such change shall not interfere in any material respect with the
continued provision of Transition Services. Notwithstanding the foregoing sentence, unless required by law, the Provider shall
not implement any substantial changes affecting the Recipient unless the Provider gives the Recipient 10 business days (x) to accept,
and adapt its operations to accommodate, such changes or (y) to reject the proposed changes. In the event the Recipient rejects
a proposed change then the service shall be provided consistent with prior practice through the duration of the Term.

 

    E-3

     

    

 

(b) During
the term of this Agreement, the Recipient shall, within 10 business days after such plans are available, provide the Provider with
a plan identifying any changes in the Recipient’s business that may affect the provision of the Transition Services in order for
the Provider to provide the Transition Services to the Recipient; provided, however, that the Provider shall not
be required to alter the method in which it provides the Transition Services or increase the level of such Services in any material
manner except as expressly provided herein; provided, further, however, that the failure of the Recipient
to provide such notice shall not alter or diminish the Provider’s obligations to provide the Transition Services on the terms set
forth herein except where the failure to provide notice has materially increased the Provider’s cost or burden to provide such
Transition Service.

 

1.9 No
Obligation to Continue to Use Services; Provider to Assist in Transitioning.

 

(a) The
Recipient shall not have any obligation to continue to use any of the Transition Services and may terminate any Transition Service
by giving the Provider of such Transition Service ten (10) days prior notice thereof in accordance with the notice provisions herein.

 

(b) Provider
shall assist the Recipient in the Recipient’s efforts in undertaking to provide for itself any Transition Services by giving
the Recipient actual possession of the various documents, data and other records used or useful in the delivery of such Transition
Services.

 

(c) The
Company in its sole and absolute discretion may make offers of employment to persons providing Transition Services.

 

1.10 Provider
Access. To the extent reasonably required for personnel of the Provider to perform the Transition Services, the Recipient shall
provide personnel of the Provider with reasonable access during normal business hours (to the extent practicable) to its equipment,
office space, laboratories, telecommunications and computer equipment and systems, and any other areas and equipment.

 

1.11 Recipient
Obligations. During the term of this Agreement, the Recipient shall (i) comply with any reasonable instructions provided by
the Provider that are necessary for the Provider to adequately provide the Transition Services; (ii) comply with all applicable
standards and procedures applicable to such Transition Service which are in the manner generally applied by the Provider in its
business; and (iii) promptly report any operational or system problem affecting, the provision of any Transition Services to the
Provider. Notwithstanding the foregoing, any failure by the Recipient to perform any of the foregoing shall not alter or diminish
the Provider’s obligations to provide the Transition Services on the terms set forth herein except where the failure to so perform
has materially increased the Provider’s cost or burden to provide such Transition Service, or where such failure prevents the provision
of the Transition Service in substantially the same manner as previously provided.

 

    E-4

     

    

 

1.12 DISCLAIMER.
EXCEPT AS EXPRESSLY SET FORTH HEREIN, THE PROVIDER MAKES NO REPRESENTATIONS OR WARRANTIES IN RESPECT OF THE TRANSITION SERVICES,
EXPRESS OR IMPLIED.

 

ARTICLE II

 

COMPENSATION

 

2.1 Consideration.
As consideration for the Transition Services, the Recipient shall pay to the Provider the amount specified for each such Transition
Service as set forth in the Schedules.

 

2.2 Invoices.
After the end of each month, the Provider, together with its affiliates or subsidiaries providing Transition Services, will submit
a single itemized invoice to the Recipient for all Transition Services provided to the Recipient during such month that are to
be paid monthly. All invoices shall be sent to the attention of the Primary Coordinator at the address set forth in Section 5.3
hereof or to such other address as the Recipient shall have specified by notice in writing to the Provider.

 

2.3 Payment
of Invoices.

 

(a) Payment
of all invoices in respect of a Transition Service shall be made by check or electronic funds transmission in U.S. Dollars, without
any offset or deduction of any nature whatsoever (except that offset or deduction may be made in regard to other invoiced amounts
due under this Agreement or to the extent of a dispute in good faith concerning amounts due under this Agreement), within thirty
(30) days of the invoice date unless otherwise specified in the Schedule relating to such Transition Service. All payments shall
be made to the account designated by the Provider to the Recipient.

 

(b) If any payment is
not paid when due (except to the extent disputed in good faith) and the Recipient does not make such payment within thirty (30)
days of receiving notice from the Provider, the Provider of the Transition Service or Transition Services that have not been timely
paid for shall have the right, without any liability to the Recipient, or anyone claiming by or through the Recipient, to, following
an additional ten (10) days prior written notice, immediately cease providing any or all of the Transition Services provided by
the Provider to the Recipient and/or to terminate this Agreement, which right may be exercised by the Provider in its sole and
absolute discretion. Notwithstanding the above, the Provider shall not cease providing any Transition Service or terminate this
Agreement if such lack of payment is due to a good faith dispute, the details of which the Recipient has indicated to the Provider
in writing.

 

    E-5

     

    

 

ARTICLE III

 

CONFIDENTIALITY

 

3.1 Obligation.
Except if compelled by a court of proper jurisdiction or as required by applicable law or stock exchange regulation, each party
and its subsidiaries shall not use or permit the use of (without the prior written consent of the other party) and shall keep,
and shall cause its consultants and advisors to keep, confidential all information (other than information that is in the public
domain, is independently developed as evidenced by written documentation or is rightly received from a third party who is not known
after reasonable inquiry by the disclosing party to be subject to a confidentiality obligation with respect to the disclosed information)
concerning the other party and its subsidiaries and affiliates received pursuant to or in connection with this Agreement.

 

3.2 Care
and Inadvertent Disclosure. With respect to any confidential information each party agrees as follows:

 

(a) it
shall use the same degree of care in safeguarding said information as it uses to safeguard its own information which must be held
in confidence; and

 

(b) upon
the discovery of any inadvertent disclosure or unauthorized use of said information, or upon obtaining notice of such a disclosure
or use from any other party, it shall take reasonable actions to prevent any other inadvertent disclosure or unauthorized use.

 

ARTICLE IV

 

TERM

 

4.1 Term.
This Agreement shall become effective on the Closing Date and shall remain in force until the expiration of the longest Time Period
specified in any Schedule hereto (the “Expiration Date”), unless all of the Transition Services are terminated
by the Recipient in accordance with Section 1.9 above, or this Agreement is terminated under Section 2.3(b) prior to the Expiration
Date. Notwithstanding the above, the Provider and the Recipient agree to use commercially reasonable efforts in expediting the
transition of each of the Transition Services from the Provider to the Recipient.

 

4.2 Termination
of Obligations. The Recipient specifically agrees and acknowledges that all obligations of the Provider to provide each Transition
Service shall immediately cease upon the expiration of the Time Period for such Transition Service, and the Provider’s obligations
to provide all of the Transition Services hereunder shall immediately cease upon the termination of this Agreement. The Recipient
shall bear sole responsibility for instituting permanent services, or obtaining replacement services, in respect of any Transition
Service terminated in accordance with the provisions hereof, and the Provider shall bear no liability for the Recipient’s failure
to implement or obtain such service or for any difficulties in transitioning from the Transition Service to such permanent or replacement
service. Notwithstanding the foregoing, in connection with the transition to one or more permanent service providers (a “Transition”),
the Provider shall cooperate with all reasonable requests of the Recipient in order to effect such Transition in a timely and cost-effective
manner.

 

    E-6

     

    

 

4.3 Survival
of Certain Obligations. Without prejudice to the survival of the other agreements of the parties, the following obligations
shall survive the termination of this Agreement: (a) the obligations of each party under Sections 1.5, 1.6 and 1.12 and Article
III and (b) the Provider’s right to receive the compensation for the Transition Services provided by it hereunder provided in Section
2.1 above incurred prior to the effective date of termination.

 

ARTICLE V

 

MISCELLANEOUS

 

5.1 Complete
Agreement: Construction. This Agreement, including the Schedules hereto, shall constitute the entire agreement between the
parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with
respect to such subject matter. In the event of any inconsistency between this Agreement and any Schedule hereto, the Schedule
shall prevail.

 

5.2 Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall
become effective when one or more such counterparts have been signed by each of the parties and delivered to the other parties.

 

5.3 Notices.
All notices and other communications hereunder shall be in writing and hand delivered or mailed by registered or certified mail
(return receipt requested) or sent by any means of electronic message transmission with delivery confirmed (by read receipt, voice
or otherwise) to the parties at the following addresses (or at such other addresses for a party as shall be specified by like notice)
and will be deemed given on the date on which such notice is received:

 

To the Company:

 

Ligand Pharmaceuticals Incorporated

3911 Sorrento Valley Blvd., Suite
110

San Diego, CA 92121

Attn: Chief Financial Officer

Email: mkorenberg@ligand.com

 

With a copy to:

Ligand Pharmaceuticals Incorporated

3911 Sorrento Valley Blvd., Suite
110

San Diego, CA 92121

Attn: General Counsel

Email: cberkman@ligand.com

 

    E-7

     

    

 

To Seller:

 

 

 

 

With a copy to:

 

5.4 Waivers.
The failure of any party to require strict performance by any other party of any provision in this Agreement will not waive or
diminish that party’s right to demand strict performance thereafter of that or any other provision hereof.

 

5.5 Amendments.
This Agreement may not be modified or amended except by an agreement in writing signed by each of the parties hereto.

 

5.6 Assignment
.. This Agreement shall not be assignable, in whole or in part, directly or indirectly; provided, however, that (i) either party
may assign this Agreement without the other’s consent to any of its direct or indirect subsidiaries and (ii) any party may
assign this Agreement to any successor to its business, whether by merger, reorganization or otherwise; provided, further, that
any such assignment shall not relieve the assignor of its obligations under this Agreement. Any attempt to assign any rights or
obligations arising under this Agreement in contravention with this paragraph shall be null and void ab initio.

 

5.7 Successors
and Assigns. The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties
and their respective successors and permitted assigns.

 

5.8 Third
Party Beneficiaries . This Agreement is solely for the benefit of the parties hereto and should not be deemed to confer upon
third parties any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference
to this Agreement.

 

5.9 Title
and Headings. Titles and headings to sections herein are inserted for the convenience of reference only and are not intended
to be a part of or to affect the meaning or interpretation of this Agreement.

 

5.10 Schedules.
The Schedules to this Agreement shall be construed with and as an integral part of this Agreement to the same extent as if the
same had been set forth verbatim herein.

 

5.11 Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California (without regard
to its conflicts of law doctrines). Each of the parties hereto irrevocably and unconditionally consents to the exclusive jurisdiction
of the United States District Court for the Southern District of California or, if such court does not have jurisdiction or will
not accept jurisdiction, in any court of general jurisdiction in the County of San Diego, California and irrevocably waives any
right to a trial by jury or any objection based upon lack of personal jurisdiction or venue.

 

    E-8

     

    

 

5.12 Severability.
In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any
way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

 

5.13 Relationship
of Parties. Nothing in this Agreement shall be deemed or construed by the parties or any third party as creating a partnership
or the relationship of principal and agent or joint venturer between the parties, it being understood and agreed that no provision
contained herein, and no act of the parties, shall be deemed to create any relationship between the parties other than the relationship
of buyer and seller of services nor be deemed to vest any rights, interests or claims in any third parties.

 

5.14 Audit.
Recipient may request a certified audit of the Provider’s records pertaining to the Transition Services from the date of
commencement of the Transition Services to be performed by an independent certified public accountant which (a) shall be reasonably
acceptable to the Provider and (b) may not be compensated on a contingency basis or otherwise have any financial interest in the
outcome of such audit. Any such audit shall be at the expense of the Recipient. Recipient may not request such an audit more than
one (1) time within any twelve (12) month period with respect to any particular Transition Service. The accountant shall be required
to execute a confidentiality and non-disclosure agreement if requested by Provider and shall hold all information confidential.
The accountant may reveal to Recipient only the amounts of any underpayment or under reimbursement, or overbilling, as applicable.
The accountant shall provide to Provider a final report of its work, including both overbilling and underpayment information. The
audit shall take place during normal business hours and upon reasonable notice. In the event that the audit reveals that Provider
overbilled Recipient, as the case may be, Provider shall promptly pay to Recipient the amount of such overbilling (to the extent
actually paid) plus 10% interest and, in the event the audit reveals an error of 10% or more compared to the aggregate amount of
Transition Services billed by Provider for the applicable 12-month period, the reasonable cost of the audit (not to exceed $15,000).

 

(Signature Page Follows)

 

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

 

	 	ADJACENT ACQUISITION CO., LLC
	 	 	 
	 	By:	               
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	ICAGEN, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    E-10

     

    

 

Schedule A

Seller Transition Services

 

Part I – North Carolina
transition

 

[Items to be discussed:

 

IT/Email transition; telecom;
cell phones

Finance

HR/Benefits

Legal support and relationships
with external IP counsel; FDA matters in process if applicable]

Immaterial contract consents
not obtained for close Others TBD]

 

Part II – Support for
Contract Fulfillment

 

	Service	 	Time Period	 	Fee
	Fulfill remaining obligations to Roche and CF that are not fulfilled from NC.  Detail of the resources allocated and deliverables are described on Schedule A, Part II(a) attached.	 	Through December 31, 2020	 	$87,500 per month, prorated for any partial month
	 	 	 	 	 
	Purchase of materials and supplies necessary for contract fulfillment described in the above row	 	Through the same period as contract fulfillment	 	Reimbursement of costs and taxes incurred, as shown by invoice

 

    E-11

     

    

 

Schedule A

 

Part II(a)

 

Resources and Deliverables
for services to Roche and CF

 

    E-12

     

    

 

EXHIBIT F

 

	Private Bank	
        

         

        Confidential

 

Citi Preferred Custody Services

 

Escrow Agreement

 

among

 

Citibank, N. A.

as “Escrow Agent”

 

and

 

Adjacent Acquisition
Co, LLC

 

(“Buyer”)

 

and

 

Icagen, Inc.

 

(the “Seller”)

 

[●]

 

(Account Number –Escrow Account)

 

Citi
Escrow Agent Custody Account

 

     

     

    

 

ESCROW
AGREEMENT

 

THIS ESCROW AGREEMENT (the “Escrow
Agreement” herein) is made this [●] day of [●], 2020 among Adjacent Acquisition Co, LLC, a Delaware limited
liability company (“Buyer” herein), Icagen, Inc., a Delaware corporation (“Seller” herein),
Icagen Corp., a Nevada corporation, XRPro Sciences, Inc., a Delaware corporation, and Caldera Discovery, Inc., a Delaware corporation,
(each, a “Subsidiary”, and the Subsidiaries, together with Seller, collectively referred to as “Seller”
herein), and CITIBANK, N.A. (the “Escrow Agent” herein). Buyer and the Seller are sometimes referred to, individually,
as a “Party” and, collectively, as the “Parties” herein.

 

The Parties hereby appoint the Escrow Agent,
and the Escrow Agent hereby accepts such appointment, with the duties and responsibilities and upon the terms and conditions provided
in this Escrow Agreement and in Schedule A annexed hereto (the terms of which are incorporated herein by reference and made
a part hereof as if fully set forth herein).

 

ARTICLE FIRST: The Parties hereby
agree that the following provisions shall control with respect to the rights, duties, responsibilities, liabilities, privileges
and immunities of the Escrow Agent:

 

		a)	The Escrow Agent shall neither be responsible for or under,
nor chargeable with knowledge of, the terms and conditions of any other agreement, instrument or document executed between the
Parties, except as may be specifically provided in Schedule A annexed hereto. This Escrow Agreement, including Schedule
A annexed hereto, sets forth all of the obligations of the Escrow Agent, and no additional obligations shall be implied from
the terms of this Escrow Agreement, including Schedule A annexed hereto, or any other agreement, instrument or document.
Nothing in this Escrow Agreement, including Schedule A annexed hereto, shall create a fiduciary or partnership relationship
between the Escrow Agent and any of the Parties.

 

		b)	The Escrow Agent, in acting pursuant to the terms
and conditions of this Escrow Agreement, may rely upon any written instructions, notice, certification, demand, consent, authorization,
receipt, power of attorney or other writing delivered to it by any of the Parties, executed and confirmed by both Parties, and
reasonably believed by it to be genuine without being required to determine the authenticity or validity thereof, or the correctness
of any fact stated therein, the propriety or validity of the service thereof, or the jurisdiction of the court issuing any judgment
or order. The Escrow Agent, in acting pursuant to the terms and conditions of this Escrow Agreement, may rely upon any signature
of an authorized representative of any of the Parties designated in (i) the Authorized Representative Certificate delivered by
Buyer to the Escrow Agent annexed hereto as Schedule C-1 and (ii) the Authorized Representative Certificate delivered by
the Seller to the Escrow Agent annexed hereto as Schedule C-2 (each, a “Designee”) to the extent such
signature is reasonably believed by it to be genuine, and may assume that such Designee has been properly authorized to do so.

 

		c)	The Parties jointly and severally, agree to reimburse
the Escrow Agent on demand for, and to indemnify and hold the Escrow Agent harmless against and with respect to, any and all loss,
liability, damage or expense (including reasonable and documented attorneys’ fees, disbursements and expenses) that the Escrow
Agent may suffer or incur in connection with this Escrow Agreement and its performance hereunder, except to the extent such loss,
liability, damage or expense arises from the Escrow Agent’s own fraud, willful misconduct or gross negligence as adjudicated
by a court of competent jurisdiction through a final order. Notwithstanding anything to the contrary set forth herein, Buyer,
on the one hand, and the Seller on the other hand, agree, solely as between themselves, that any obligation for indemnification
under this subsection (c) of Article FIRST (or for reasonable and documented fees, disbursements and expenses of the Escrow Agent
described in subsection (d) of Article FIRST) shall be borne by the Party or Parties determined by a court of competent jurisdiction
through a final order to be responsible for causing the loss, liability, damage or expense for which the Escrow Agent is entitled
to indemnification; provided, however, that if no such determination is made, then Buyer, on the one hand, and the Seller,
on the other hand, shall each be responsible for
fifty percent (50%) of any such losses, liabilities, damages or expenses (it being agreed and understood that, in the event that
either the Seller, on the one hand, or Buyer, on the other hand, are obligated to make any payment in excess of fifty percent
(50%) of any such losses, liabilities, damages or expenses, the paying Party shall be entitled to reimbursement from the non-paying
Party for the amount of such excess). In no event shall the Escrow Agent be responsible for special, indirect, or consequential
losses or damages of any kind whatsoever related to its performance of the services hereunder even if the Escrow Agent has been
advised of the likelihood of such losses or damages and regardless of the form of action.

 

    	Citi Preferred Custody Services – Escrow Agent Agreement	F-2	 

     

    

 

		d)	The Escrow Agent may consult with legal counsel of
its selection in the event of any Escrow Agreement Dispute (as hereinafter defined) or any question as to the meaning or construction
of any of the provisions hereof or its duties hereunder. If such counsel is outside legal counsel and has been selected in good
faith by the Escrow Agent, then the Escrow Agent shall incur no liability to the Parties and shall be fully protected therefrom
in acting in good faith in accordance with the written opinion and written instructions of such outside legal counsel that any
action, or omission to take any action, by the Escrow Agent is either required by law or does not constitute a breach of this
Escrow Agreement. The Parties, jointly and severally, agree to reimburse the Escrow Agent on demand for the reasonable and documented
fees, disbursements and expenses of such counsel incurred by the Escrow Agent, except to the extent any such fees, disbursements
and expenses shall have been finally adjudicated by a court of competent jurisdiction to have arisen from the Escrow Agent’s
own fraud, gross negligence or willful misconduct.

 

		e)	The Escrow Agent shall be under no duty to give the
Escrowed Funds (as defined in Schedule A annexed hereto) any greater degree of care than it gives its own similar property,
but in any event the Escrow Agent shall give the Escrowed Funds not less than reasonable care and not less than the care it gives
its own similar property.

 

		f)	The Escrow Agent shall invest and reinvest the Escrowed
Funds in such a manner as directed in Schedule A annexed hereto, which may include deposits in Citibank and mutual funds
advised, serviced or made available by Citibank or any of its affiliates even though Citibank or its affiliates may receive a
benefit or profit therefrom. The Escrow Agent and any of its affiliates are authorized to act as counterparty, principal, agent,
broker or dealer while purchasing or selling investments as specified herein. The Escrow Agent and its affiliates are authorized
to receive, directly or indirectly, fees or other profits or benefits for each service, task or function performed, in addition
to any fees as specified in Schedule B annexed hereto, without any requirement for special accounting related thereto.

 

The Parties acknowledge that
non-deposit investment products are not obligations of, or guaranteed by, Citibank/Citigroup or any of its affiliates; are not
FDIC insured; and are subject to investment risks, including the possible loss of principal amount invested. Only deposits in the
United States are subject to FDIC insurance.

 

		g)	The Escrow Agent shall have no obligation to invest
or reinvest the Escrowed Funds on the day of deposit with the Escrow Agent, if all or a portion of such Escrowed Funds is deposited
with the Escrow Agent after 11:00 AM Eastern Time. Instructions to invest or reinvest that are received after 11:00 AM Eastern
Time will be treated as if received on the following business day in New York. The Escrow Agent shall have the power to sell or
liquidate the foregoing investments whenever the Escrow Agent shall be required to distribute amounts from the Escrowed Funds
pursuant to the terms of this Escrow Agreement. Requests or instructions received after 11:00 AM Eastern Time by the Escrow Agent
to liquidate all or any portion of the Escrowed Funds will be treated as if received on the following business day in New York.
The Escrow Agent shall have no responsibility for any investment losses resulting from the investment, reinvestment or liquidation
of the Escrowed Funds, as applicable, provided that the Escrow Agent has made such investment, reinvestment or liquidation
of the Escrowed Funds in accordance with the terms, and subject to the conditions of this Escrow Agreement and Schedule A
annexed hereto.

 

    	Citi Preferred Custody Services – Escrow Agent Agreement	F-3	 

     

    

 

		h)	In
the event of any disagreement between the Parties, or between them or either or any of them and any other person, resulting in
adverse claims or demands being made in connection with the subject matter of this Escrow Agreement, or in the event that the
Escrow Agent, in good faith, is in doubt as to what action it should take hereunder, the Escrow Agent may, at its option, refrain
from complying with any claims or demands on it, or refrain from taking any other action hereunder, so long as such disagreement
continues or such doubt exists, and in any such event, the Escrow Agent shall not become liable in any way or to any person for
its failure or refusal to act, and the Escrow Agent shall be entitled to continue so to refrain from acting until (i) the rights
of all Parties shall have been fully and finally adjudicated by a court of competent jurisdiction, or (ii) all differences shall
have been adjusted and all doubt resolved by agreement between/among all of the interested persons, and the Escrow Agent shall
have been notified thereof in writing signed by a Designee of each of the Parties. The Escrow Agent shall have the option, after
thirty (30) calendar days’ notice to the Parties of its intention to do so, to file an action in interpleader requiring
the Parties to answer and litigate any claims and rights between themselves. The rights of the Escrow Agent under this paragraph
are cumulative of all other rights which it may have by law or otherwise.

 

		i)	Any court order presented under this Article FIRST
shall be accompanied by a legal opinion by counsel for the presenting Party reasonably satisfactory to the Escrow Agent to the
effect that said court order is final and non-appealable. The Escrow Agent shall act on such court order without further question
or delay.

 

		j)	Notice to the Escrow Agent and the Parties shall be
given as provided in Schedule A annexed hereto.

 

		k)	The Escrowed Funds shall not be subject to any lien,
attachment, trustee process or any other judicial process of any creditor of the Escrow Agent or any of the Parties.

 

		l)	The Escrow Agent shall not have the right to set off
or deduct from the Escrowed Funds any unpaid fees, non-reimbursed expenses or unsatisfied indemnification rights, and such Escrowed
Funds shall not be used by the Escrow Agent to set off any other obligations of any of the Parties owing to the Escrow Agent.

 

		m)	The provisions of this Article FIRST shall survive
the termination or expiration of this Escrow Agreement and the removal or resignation of the Escrow Agent.

 

ARTICLE SECOND: The Escrow Agent
shall make payments of income earned on the Escrowed Funds as provided in Schedule A annexed hereto. Each such payee shall
provide to the Escrow Agent an appropriate W-9 form for tax identification number certification or a W-8 form for non-resident
alien certification. Any investment income earned (or proceeds received) prior to the disbursement of the Escrowed Funds, during
a calendar year period from the investment of any Escrowed Funds, shall be treated as the income of Buyer and shall be reported
on an annual basis by the Escrow Agent on the appropriate Form 1099 (or Form 1042-S), as required pursuant to the Internal Revenue
Code and the regulations thereunder.

 

		a)	The Parties acknowledge that they are solely responsible
for, and that neither the Escrow Agent nor any of its affiliates has any responsibility for, any Party’s compliance with
any laws, regulations or rules applicable to the use of the services provided by the Escrow Agent under this Escrow Agreement,
including any laws, regulations or rules in such Party’s jurisdiction or any other jurisdiction, relating to tax, foreign
exchange and capital control, and for reporting or filing requirements that may apply as a result of such Party’s country
of citizenship, domicile, residence or taxpaying status.

 

		b)	The Escrow Agent, its affiliates and its employees
are not in the business of providing tax or legal advice to any taxpayer outside of the Escrow Agent and its affiliates. Neither
this Escrow Agreement (including Schedule A annexed hereto) nor any amendments or attachments to this Escrow
Agreement are intended or written to be used, and neither can be used or relied upon, by any such taxpayer or for the purpose
of avoiding tax penalties. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances
from an independent tax advisor.

 

    	Citi Preferred Custody Services – Escrow Agent Agreement	F-4	 

     

    

 

ARTICLE THIRD:

 

		a)	The Parties may remove the Escrow Agent at any time
by giving to the Escrow Agent thirty (30) calendar days’ prior written notice of removal signed by an authorized person
of each of the Parties designated in Schedule A annexed hereto. The Escrow Agent may, in its sole discretion, resign and
terminate its position hereunder at any time by giving to each of the Parties thirty (30) calendar days’ prior written notice
of resignation given as provided in Schedule A annexed hereto.

 

		b)	Within thirty (30) calendar days after giving the
foregoing notice of removal to the Escrow Agent or within thirty (30) calendar days after receiving the foregoing notice of resignation
from the Escrow Agent, the Parties shall appoint a successor escrow agent and give notice of such successor escrow agent to the
Escrow Agent. If a successor escrow agent has not accepted such appointment by the end of such thirty (30)-calendar day period
(in the case of each of the Escrow Agent’s removal or the Escrow Agent’s resignation), the Escrow Agent may either
(i) safe keep the Escrowed Funds for the benefit of the Parties until a successor escrow agent is appointed, without any obligation
to invest the same or continue to perform under this Escrow Agreement, or (ii) petition any court of competent jurisdiction for
the appointment of a successor escrow agent, or for other appropriate relief, and any appointment of a successor escrow agent
resulting from such petition shall be binding upon the Escrow Agent and each of the Parties.

 

		c)	Upon receipt of notice of the identity of the successor
escrow agent, the Escrow Agent shall deliver this Escrow Agreement, including Schedule A annexed hereto, together with
any and all related instruments and documents, and the Escrowed Funds then held hereunder, less the Escrow Agent’s fees,
costs and expenses due to the Escrow Agent pursuant to the terms and subject to the conditions of this Escrow Agreement, to the
successor escrow agent.

 

		d)	Upon delivery of this Escrow Agreement, including
Schedule A annexed hereto, together with any and all related instruments and documents, and the Escrowed Funds to the successor
escrow agent, the Escrow Agent shall have no further duties, responsibilities or obligations hereunder, but shall not be discharged
from any liability for actions taken as Escrow Agent under this Escrow Agreement prior to such removal or resignation.

 

ARTICLE FOURTH: The Escrow Agent
shall receive the fees provided in Schedule B annexed hereto. . The provisions of this Article FOURTH shall survive the
termination or expiration of this Escrow Agreement and the removal or resignation of the Escrow Agent.

 

ARTICLE FIFTH: Any modification
of this Escrow Agreement or any additional obligations assumed by any party hereto shall be binding only if evidenced by a writing
signed by the Escrow Agent and each of the Parties.

 

ARTICLE SIXTH: In the event
funds transfer instructions are given (other than in writing at the time of execution of this Escrow Agreement), whether in
writing, by facsimile, e-mail, telecopier or otherwise, the Escrow Agent is authorized to seek confirmation of such
instructions by telephone call back to the person or persons designated in Schedule A annexed hereto, and the Escrow
Agent may rely upon the confirmations of anyone purporting to be the person or persons so designated. To assure accuracy of
the instructions it receives, the Escrow Agent may record such call backs. If the Escrow Agent is unable to verify the
instructions, or is not reasonably satisfied with the verification it receives, it will not execute the instruction until all
issues have been resolved. The persons and telephone numbers for call backs may be changed only in writing that is (a) signed
by the Party changing its notice designation and (b) actually received and acknowledged by the Escrow Agent. The Parties
agree to notify the Escrow Agent of any errors, delays or other problems within thirty (30) calendar days after receiving
notification that a transaction has been executed.
If it is determined that the transaction was delayed or erroneously executed as a result of the Escrow Agent’s error,
the Escrow Agent’s sole obligation is to pay or refund such amounts as may be required by applicable law. Any claim for
interest payable will be at the Escrow Agent’s published savings account rate in effect in New York, New
York.

 

    	Citi Preferred Custody Services – Escrow Agent Agreement	F-5	 

     

    

 

ARTICLE SEVENTH:

 

		a)	This Escrow Agreement shall be governed by the law
of the State of New York in all respects, without regard to the conflicts of law principles of such state. The Escrow Agent and
each of the Parties irrevocably and unconditionally submit to the jurisdiction of a federal or state court located in the Borough
of Manhattan, City, County and State of New York, in connection with any proceedings commenced regarding this Escrow Agreement
(including Schedule A annexed hereto) (an “Escrow Agreement Dispute”), including any interpleader proceeding
or proceeding for the appointment of a successor escrow agent the Escrow Agent may commence pursuant to this Escrow Agreement,
and the Escrow Agent and each of the Parties irrevocably submit to the jurisdiction of such courts for the determination of all
Escrow Agreement Disputes in such proceedings, without regard to any principles of conflict of laws, and irrevocably waive any
objection to venue of inconvenient forum; provided, however, that no controversy, dispute or proceeding that is solely
between the Parties shall constitute an Escrow Agreement Dispute, regardless of whether it is under, in connection with, or in
relation to this Escrow Agreement.

 

		b)	THE ESCROW AGENT AND THE PARTIES FURTHER HEREBY WAIVE
ANY RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY ESCROW AGREEMENT DISPUTE.

 

		c)	In the event of any conflict between this Article
SEVENTH and the Purchase Agreement, other than in respect of any Escrow Agreement Dispute, as between the Parties, the terms of
the Purchase Agreement shall govern and control.

 

ARTICLE EIGHTH: This Escrow Agreement
may be executed in one or more counterparts, each of which counterparts shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Escrow Agreement. Facsimile signatures or signatures delivered by other electronic
means (including as a pdf attachment to electronic mail) of counterparts of this Escrow Agreement shall be deemed original signatures
with all rights accruing thereto.

 

ARTICLE NINTH: Neither the Escrow
Agent nor any of the Parties shall incur any liability for not performing any act or fulfilling any obligation hereunder by reason
of any occurrence beyond its control (including any provision of any present or future law or regulation or any act of any governmental
authority, any act of God or war or terrorism, or the unavailability of the Federal Reserve Bank wire services or any electronic
communication facility); provided, however, that the Escrow Agent shall use commercially reasonable efforts to resume such
performance or fulfillment as soon as reasonably practicable.

 

ARTICLE TENTH: To help the U.S.
Government fight the funding of terrorism and money laundering activities and to comply with Federal law requiring financial institutions
to obtain, verify and record information on the source of funds deposited to an account, the Parties agree to provide the Escrow
Agent with the name, address, taxpayer identification number, and remitting bank for all Parties depositing funds with the Escrow
Agent pursuant to the terms and conditions of this Escrow Agreement. For a non-individual person such as a business entity, a charity,
a trust or other legal entity, the Escrow Agent will ask for documentation to verify its formation and existence as a legal entity.
The Escrow Agent may also ask to see financial statements, licenses, identification and authorization documents from individuals
claiming authority to represent the entity or other relevant documentation.

 

ARTICLE ELEVENTH: Notwithstanding
anything to the contrary herein, any and all e-mail communications (both text and attachments) by or from the Escrow Agent
that the Escrow Agent deems to contain confidential, proprietary, and/or sensitive information shall be encrypted. The
recipient (the “E-Mail Recipient”) of the encrypted email communication will be required to complete a
registration process. Instructions on how to
register and/or retrieve an encrypted message will be included in the first secure email sent by the Escrow Agent to the
E-Mail Recipient. Additional information and assistance on using the encryption technology can be found at the Escrow
Agent’s Secure Email website at:

 

https://securemailserver.citigroup.com/index_en_us.html

 

or by calling (866) 535-2504 (in the United States) or (904) 954-6181 (collect calls accepted).

 

    	Citi Preferred Custody Services – Escrow Agent Agreement	F-6	 

     

    

 

ARTICLE TWELFTH: No printed or other
material in any language, including prospectuses, notices, reports, and promotional material which mentions “Citibank”
by name or the rights, powers, or duties of the Escrow Agent under this Escrow Agreement shall be issued by any of the Parties,
or on behalf of any of the Parties, without the prior written consent of the Escrow Agent.

 

ARTICLE THIRTEENTH: Any corporation
or entity into which the Escrow Agent may be merged or converted or with which it may be consolidated, or any corporation or entity
resulting from any merger, conversion or consolidation to which the Escrow Agent is a party, or any corporation or entity succeeding
to the business of the Escrow Agent will be the successor of the Escrow Agent hereunder without the execution or filing of any
paper with any party hereto or any further act on the part of any of the parties hereto except where an instrument of transfer
or assignment is required by law to effect such succession, anything herein to the contrary notwithstanding.

 

ARTICLE FOURTEENTH: If any provision
of this Escrow Agreement, including Schedule A annexed hereto, is determined to be prohibited or unenforceable by reason
of any applicable law in any jurisdiction, then such provision shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions thereof, and any such prohibition or unenforceability
in such jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

ARTICLE FIFTEENTH: No waiver by
any party to this Escrow Agreement of any condition or of any breach of any provision of this Escrow Agreement will be effective
unless in writing. No waiver by any party of any such condition or breach, in any one instance, will be deemed to be a further
or continuing waiver of any such condition or breach or a waiver of any other condition or breach of any other provision contained
in this Escrow Agreement.

 

ARTICLE SIXTEENTH: This Escrow Agreement,
including Schedule A annexed hereto (and solely with respect to the Parties, the documents referenced in this Escrow Agreement
and the exhibits to such documents), constitute the entire understanding and agreement of the Parties and the Escrow Agent with
respect to the subject matter of this Escrow Agreement and of such documents and exhibits and supersede all prior and contemporaneous
agreements or understandings, inducements or conditions, express or implied, written or oral, among the Parties and the Escrow
Agent with respect to such subject matter. The express terms of this Escrow Agreement control and supersede any course of performance
or usage of the trade inconsistent with any of the terms of this Escrow Agreement.

 

ARTICLE SEVENTEENTH:

 

		a)	For purposes of this Escrow Agreement, a “business
day” shall mean any day (other than a Saturday, a Sunday or other statutory holiday) on which commercial banks are open
for general business in New York City, New York.

 

		b)	For purposes of this Escrow Agreement, whenever the
context requires: (i) the singular number shall include the plural, and vice versa; (ii) the masculine gender shall include the
feminine and neuter genders; (iii) the feminine gender shall include the masculine and neuter genders; and (iv) the neuter gender
shall include the masculine and feminine genders.

 

		c)	As
used in this Escrow Agreement: (i) the words “include” and “including,” and variations thereof, shall
not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation”;
and (ii) the use of the word “or” shall not be exclusive.

 

		d)	Except as otherwise indicated, all references in this
Escrow Agreement to “Articles” and “Schedules” are intended to refer to the Articles of this Escrow Agreement
and Schedules annexed to this Escrow Agreement.

 

[Signature Page Follows]

 

    	Citi Preferred Custody Services – Escrow Agent Agreement	F-7	 

     

    

 

In witness whereof, the Escrow Agent and the Parties
have executed this Escrow Agreement as of the date first above written. If a date is not referenced in the opening paragraph, the
date of this Escrow Agreement shall be the date this Escrow Agreement is accepted by the Escrow Agent as set forth below.

 

	CITIBANK, N.A.	 
	as the Escrow Agent	 
	 	 	 
	By:	 	 
	 	(Signature)	 
	Title:	 	 
	Date:	 	 

 

	Adjacent Acquisition Co, LLC 

as Buyer	 
	 	 	 
	By:	 	 
	 	(Signature)	 
	Title:	 	 
	Date:	 	 
	 	 	 
	Icagen, Inc. 

as Seller	 
	 	 	 
	By:	 	 
	 	(Signature)	 
	Title:	 	 
	Date:	 	 

 

 

 

[Signature Page to Escrow Agreement]

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