Document:

EX-10.1

   

   

   

  Exhibit 10.1

   

  Amendment No. 3 to Loan Documents

   

  	THIS AMENDMENT NO. 3 TO LOAN DOCUMENTS (this “Amendment”) is made as of December 27, 2021 by and between MEDPACE, INC., an Ohio corporation (the “Borrower”), and PNC BANK, NATIONAL ASSOCIATION (the “Bank”).

   

  BACKGROUND

   

  	A.	The Borrower or another obligor has executed and delivered to the Bank (or a predecessor which is now known by the Bank’s name as set forth above), one or more promissory notes, letter agreements, loan agreements, security agreements, mortgages, pledge agreements, collateral assignments, and other agreements, instruments, certificates and documents, which are more fully described on attached Exhibit A, which is made a part of this Amendment (collectively as amended from time to time, the “Loan Documents”) which evidence or secure the indebtedness and other obligations of the Borrower to the Bank (as used herein, collectively, together with the Obligations, if and as defined in the Loan Documents, the “Obligations”).  Any initially capitalized terms used in this Amendment without definition shall have the meanings assigned to those terms in the Loan Documents.  

   

  	B.	The Borrower and the Bank desire to amend the Loan Documents as provided for in this Amendment. 

   

  	NOW, THEREFORE, in consideration of the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree as follows:

   

  	1.	The Loan Documents are amended as set forth in Exhibit A.  Any and all references to any Loan Document in any other Loan Document shall be deemed to refer to such Loan Document as amended by this Amendment.  This Amendment is deemed incorporated into each of the Loan Documents.  To the extent that any term or provision of this Amendment is or may be inconsistent with any term or provision in any Loan Document, the terms and provisions of this Amendment shall control.

   

  	2.	The Borrower hereby certifies that: (a) all of its representations and warranties in the Loan Documents, as amended by this Amendment, are, except as may otherwise be stated in this Amendment: (i) true and correct as of the date of this Amendment, (ii) ratified and confirmed without condition as if made anew, and (iii) incorporated into this Amendment by reference, (b) no Event of Default or event which, with the passage of time or the giving of notice or both, would constitute an Event of Default, exists under any Loan Document which will not be cured by the execution and effectiveness of this Amendment, (c) no consent, approval, order or authorization of, or registration or filing with, any third party is required in connection with the execution, delivery and carrying out of this Amendment or, if required, has been obtained, and (d) this Amendment has been duly authorized, executed and delivered so that it constitutes the legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms.  The Borrower confirms that the Obligations remain outstanding without defense, set off, counterclaim, discount or charge of any kind as of the date of this Amendment.  

   

  	3.	The Borrower hereby confirms that any collateral for the Obligations, including liens, security interests, mortgages, and pledges granted pursuant to the Loan Documents by the Borrower or third parties (if applicable), shall continue unimpaired and in full force and effect, and shall cover and secure all of the Borrower’s existing and future Obligations to the Bank, as modified by this Amendment.

   

  	4.	As a condition precedent to the effectiveness of this Amendment, the Borrower shall comply with the terms and conditions (if any) specified in Exhibit A.  Borrower will also promptly pay to the Bank all fees and expenses incurred by the Bank in connection with this Amendment, including reasonable attorneys’ fees.

   

  

   

   

  	5.	To induce the Bank to enter into this Amendment, the Borrower waives and releases and forever discharges the Bank and its officers, directors, attorneys, agents, and employees from any liability, damage, claim, loss or expense of any kind that it may have against the Bank or any of them arising out of or relating to the Obligations.  The Borrower further agrees to indemnify and hold the Bank and its officers, directors, attorneys, agents and employees harmless from any loss, damage, judgment, liability or expense (including reasonable attorneys’ fees) suffered by or rendered against the Bank or any of them on account of any claims arising out of or relating to the Obligations.  The Borrower further states that it has carefully read the foregoing release and indemnity, knows the contents thereof and grants the same as its own free act and deed.

   

  	6.	This Amendment may be signed in any number of counterpart copies and by the parties to this Amendment on separate counterparts, but all such copies shall constitute one and the same instrument.   Delivery of an executed counterpart of a signature page to this Amendment by facsimile transmission shall be effective as delivery of a manually executed counterpart.  Upon written request by the other party (which may be made by electronic mail), any party so executing this Amendment by facsimile transmission shall promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by facsimile transmission.  

   

  	7.	Notwithstanding any other provision herein or in the other Loan Documents, the Borrower agrees that this Amendment, the Loan Documents, any other amendments thereto and any other information, notice, signature card, agreement or authorization related thereto (each, a “Communication”) may, at the Bank’s option, be in the form of an electronic record.  Any Communication may, at the Bank’s option, be signed or executed using electronic signatures.  For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Bank of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format) for transmission, delivery and/or retention.  The Borrower and the Bank acknowledge and agree that the methods for delivering Communications, including notices, under the Loan Documents include electronic transmittal to any electronic address provided by either party to the other party from time to time.  

   

  	8.	This Amendment will be binding upon and inure to the benefit of the Borrower and the Bank and their respective successors and assigns.

   

  	9.	This Amendment will be interpreted and the rights and liabilities of the parties hereto determined in accordance with the laws of the State identified in and governing the Loan Documents that are being amended hereby (the “State”), excluding its conflict of laws rules, including without limitation the Electronic Transactions Act (or equivalent) in such State (or, to the extent controlling, the laws of the United States of America, including without limitation the Electronic Signatures in Global and National Commerce Act).  This Amendment has been delivered to and accepted by the Bank and will be deemed to be made in the State.  

   

  	10.	 Except as amended hereby, the terms and provisions of the Loan Documents remain unchanged, are and shall remain in full force and effect unless and until modified or amended in writing in accordance with their terms, and are hereby ratified and confirmed.  Except as expressly provided herein, this Amendment shall not constitute an amendment, waiver, consent or release with respect to any provision of any Loan Document, a waiver of any default or Event of Default under any Loan Document, or a waiver or release of any of the Bank’s rights and remedies (all of which are hereby reserved).  The Borrower expressly ratifies and confirms the confession of judgment (if applicable), waiver of jury trial or arbitration provisions, as applicable, contained in the Loan Documents, all of which are incorporated herein by reference.

   

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  	WITNESS the due execution of this Amendment as of the date first written above.

   

  MEDPACE, INC.

  By: /s/ Kevin Brady                                          	
Name: Kevin Brady
Title: Chief Financial Officer

   

  SIGNATURES CONTINUE ON FOLLOWING PAGE

   

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  Signature Page to Amendment No. 3 to Loan Documents (MEDPACE)

  PNC BANK, NATIONAL ASSOCIATION

  By: /s/ Edward L. McGarry                                	
Name:  Edward L. McGarry
Title:  Senior Vice President   

   

   

   

   

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  EXHIBIT A TO

  AMENDMENT NO. 3 TO LOAN DOCUMENTS

  DATED AS OF DECEMBER 27, 2021

   

   

  A.	Loan Documents.  The “Loan Documents” that are the subject of this Amendment include the following (as each of such documents has been amended, modified or otherwise supplemented previously):

   

  	1.	Loan Agreement between Borrower and the Bank dated as of September 30, 2019

   

  	2.	Revolving Credit Note by Borrower payable to the order of the Bank dated as of September 30, 2019 (the “Note”)

   

  	3.	Guaranty by Medpace Intermediateco, Inc., a Delaware corporation, in favor of the Bank dated as of September 30, 2019

   

  	4.	All other documents, instruments, agreements, and certificates executed and delivered in connection with the Loan Documents listed in this Section A.

   

  B.	Amendments.  The Loan Documents are amended as follows:

   

  1.The second (2nd) sentence of Section 1 of the Note is hereby amended and restated by the following:

   

  “The “Expiration Date” shall mean March 31, 2023, or such later date as may be designated by the Bank by written notice from the Bank to the Borrower.”

   

  2.Borrower hereby irrevocably and permanently waives any option or right in the Note and the other Loan Documents to obtain advances and Letters of Credit in any Alternate Currency or to convert any advances from U.S. Dollars to any Alternate Currency.     

   

  3.The definitions of Alternate Currencies, Alternate Currency Interest Period, Alternate Currency Rate, British Pounds Sterling, and Euro in Section 2 of the Note are hereby deleted.  All other references in the Note and the other Loan Documents to the foregoing are hereby deleted.   

   

  4.Sections 2(a)(iii) and 14 of the Note are hereby deleted.

   

  5.The LIBOR Replacement Rider attached to this Amendment as Exhibit B amends and restates the LIBOR Replacement Rider previously added as a Rider to the Note.   

   

  6.The Alternate Currency Rate Replacement Rider previously added as a Rider to the Note is hereby deleted.   

   

  C.	Conditions to Effectiveness of Amendment. The Bank’s willingness to agree to the amendments set forth in this Amendment is subject to the prior satisfaction of the following conditions:

   

  	1.	Execution by all parties and delivery to the Bank of this Amendment.

   

   

   

   

   

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  CONSENT OF GUARANTOR

   

  	MEDPACE INTERMEDIATECO, INC., a Delaware corporation (the “Guarantor”) consents to the provisions of the foregoing Amendment No. 3 to Loan Documents (the “Amendment”) and all prior amendments (if any) and confirms and agrees that: (a) the Guarantor’s obligations under its Guaranty Agreement dated as of September 30, 2019 (the “Guaranty”), relating to the Obligations referenced in the Amendment, shall be unimpaired by the Amendment; (b) the Guarantor has no defenses, set offs, counterclaims, discounts or charges of any kind against the Bank, its officers, directors, employees, agents or attorneys with respect to the Guaranty; and (c) all of the terms, conditions and covenants in the Guaranty remain unaltered and in full force and effect and are hereby ratified and confirmed and apply to the Obligations, as modified by the Amendment.  The Guarantor certifies that all representations and warranties made in the Guaranty are true and correct. 

   

  	The Guarantor hereby confirms that any collateral for the Obligations, including liens, security interests, mortgages, and pledges granted by the Guarantor or third parties (if applicable), shall continue unimpaired and in full force and effect, shall cover and secure all of the Guarantor’s existing and future Obligations to the Bank, as modified by this Amendment.

   

  By signing below, the Guarantor agrees that this Consent, the Guaranty, the other Loan Documents, any amendments thereto and any other information, notice, signature card, agreement or authorization related thereto (each, a “Communication”) may, at the Bank’s option, be in the form of an electronic record.  Any Communication may, at the Bank’s option, be signed or executed using electronic signatures.  For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Bank of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format) for transmission, delivery and/or retention.  The Guarantor acknowledges and agrees that the methods for delivering Communications, including notices, under the Guaranty and the other Loan Documents include electronic transmittal to any electronic address provided by any party to the other party from time to time.  

   

  	The Guarantor ratifies and confirms the indemnification, confession of judgment (if applicable) and waiver of jury trial or arbitration provisions contained in the Guaranty, all of which are incorporated herein by reference.

   

  	WITNESS the due execution of this Consent as of the date of the Amendment, intending to be legally bound hereby.

   

  MEDPACE INTERMEDIATECO, INC.

  By: /s/ Kevin Brady                                          		
Name: Kevin Brady
Title: Chief Financial Officer

   

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  EXHIBIT B TO

  AMENDMENT TO LOAN DOCUMENTS

   

  LIBOR Replacement Rider

   

  This LIBOR Replacement Rider provides a mechanism for determining an alternative rate of interest in the event that the London interbank offered rate is no longer available or in certain other circumstances.  The Bank does not warrant or accept any responsibility for and shall not have any liability with respect to, the administration, submission or any other matter related to the London interbank offered rate or other rates in the definition of “LIBOR” or with respect to any alternative or successor rate thereto, or replacement rate therefor.  To the extent that any term or provision of this LIBOR Replacement Rider is or may be inconsistent with any term or provision in the remainder of this Note or any other Loan Document, the terms and provisions of this LIBOR Replacement Rider shall control.

   

  (a)Announcements Related to LIBOR.  On March 5, 2021, the ICE Benchmark Administration, the administrator of LIBOR (the “IBA”) and the U.K. Financial Conduct Authority, the regulatory supervisor for the IBA, announced in a public statement the future cessation or loss of representativeness of overnight/Spot Next, 1-week, 1-month, 2-month, 3-month, 6-month and 12- month USD LIBOR tenor settings (collectively, the “Cessation Announcements”).  The parties hereto acknowledge that, as a result of the Cessation Announcements, a Benchmark Transition Event occurred on March 5, 2021 with respect to USD LIBOR under clauses (1) and (2) of the definition of Benchmark Transition Event below; provided however, no related Benchmark Replacement Date occurred as of such date.

   

  (b)	Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then, (x) if the Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of “Benchmark Replacement” on the Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment or further action or consent of any other party hereto or to any other Loan Document; and (y) if a Benchmark Replacement is determined in accordance with clause (3) of the definition of “Benchmark Replacement” on the Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (Eastern time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Borrower without any amendment hereto or to any other Loan Document, or further action or consent of the Borrower. 

   

  (c)	Benchmark Replacement Conforming Changes.  In connection with the implementation of a Benchmark Replacement, the Bank will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of the Borrower. 

   

  (d)	Notices; Standards for Decisions and Determinations.  The Bank will promptly notify the Borrower of (i) any occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to paragraph (e) below and (v) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Bank pursuant to this Rider, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any 

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  action or any selection, will be conclusive and binding absent manifest error and may be made in its sole discretion and without consent from the Borrower. 

   

  (e)	Unavailability of Tenor of Benchmark.  Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or USD LIBOR) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Bank in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Bank may modify the definition of “Interest Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Bank may modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor. 

   

  	(f)	Benchmark Unavailability Period.  Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a loan or advance of, conversion to or continuation of a USD LIBOR loan to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a loan or advance of or conversion to a loan or advance at the Fallback Rate.  During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Fallback Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Fallback Rate. 

   

  (g)	Secondary Term SOFR Conversion.  Notwithstanding anything to the contrary herein or in any other Loan Document and subject to the proviso below in this paragraph, if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (i) the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or under any Loan Document in respect of such Benchmark setting (the “Secondary Term SOFR Conversion Date”) and subsequent Benchmark settings, without any amendment or further action or consent of any other party hereto or to any other Loan Document; and (ii) loans outstanding on the Secondary Term SOFR Conversion Date bearing interest based on the then-current Benchmark shall be deemed to have been converted to loans bearing interest at the Benchmark Replacement with a tenor approximately the same length as the interest payment period of the then-current Benchmark; provided that, (A) this paragraph (g) shall not be effective unless the Bank has delivered to the Borrower a Term SOFR Notice and (B) this paragraph (g) shall not be effective with respect to the Facility if (I) the Borrower has outstanding an interest rate swap with the Bank to hedge, in whole or part, the floating rate risk under the Facility on the Secondary Term SOFR Conversion Date, and (II) such swap incorporates LIBOR fallback provisions with a Daily Simple SOFR rate as the primary alternative fallback rate for USD LIBOR. 

   

  (h)	Certain Defined Terms.  As used in this Rider: 

   

  “Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the then-current Benchmark is a term rate or is based on a term rate, any tenor for such Benchmark that is or may be used for determining such Benchmark or the length of an Interest Period under the terms of the Facility as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to paragraph (e) of this Rider, or (y) if the then-current Benchmark is not a term rate nor based on a term rate, any payment period for interest calculated with reference to such Benchmark under the terms of the Facility as of such date.  For the avoidance of doubt, the Available Tenor for the Daily LIBOR Rate is one month. 

   

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  “Benchmark” means, initially, USD LIBOR; provided that if a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to USD LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to paragraph (b) of this Rider. 

   

  “Benchmark Replacement” means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Bank on the applicable Benchmark Replacement Date; provided, however, if (i) the Borrower has outstanding an interest rate swap with the Bank on the Benchmark Replacement Date to hedge, in whole or part, the floating rate risk under the Facility, and (ii) such swap incorporates LIBOR fallback provisions with a Daily Simple SOFR rate as the primary alternative fallback rate for USD LIBOR, then the Benchmark Replacement alternative set forth in clause (1) below shall not apply to the Facility and the alternative set forth below in clause (2) shall be the first alternative: 

   

  (1)	the sum of: (a) Term SOFR and (b) the related Benchmark Replacement Adjustment;

   

  (2)	the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment; 

   

  (3)	the sum of: (a) the alternate benchmark rate that has been selected by the Bank as the replacement for the then-current Benchmark for the applicable Corresponding Tenor, giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for U.S. dollar-denominated syndicated or bilateral credit facilities at such time, and (b) the related Benchmark Replacement Adjustment; 

   

  provided that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Bank in its reasonable discretion; provided, further, that, with respect to a Term SOFR Transition Event, on the applicable Benchmark Replacement Date, the “Benchmark Replacement” shall revert to and shall be determined as set forth in clause (1) of this definition, all in accordance with paragraph (g) (Secondary Term SOFR Conversion) above.  If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes hereof and of the other Loan Documents. 

   

  “Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any Available Tenor for any setting of such Unadjusted Benchmark Replacement: 

   

  (1)	for purposes of clauses (1) and (2) of the definition of “Benchmark Replacement,” the applicable amount(s) set forth below: 

   

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	Available Tenor
	Benchmark Replacement Adjustment*

	One-Week
	0.03839% (3.839 basis points)

	One-Month
	0.11448% (11.448 basis points)

	Two-Months
	0.18456% (18.456 basis points)

	Three-Months
	0.26161% (26.161 basis points)

	Six-Months
	0.42826% (42.826 basis points)

	 
* These values represent the ARRC/ISDA recommended spread adjustment values available here: https://assets.bbhub.io/professional/sites/10/IBOR-Fallbacks-LIBOR-Cessation_Announcement_20210305.pdf.

   

  (2)	for purposes of clause (3) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Bank for the applicable Corresponding Tenor, giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated or bilateral credit facilities; 

   

  provided that, if the then-current Benchmark is a term rate, more than one tenor of such Benchmark is available as of the applicable Benchmark Replacement Date and the applicable Unadjusted Benchmark Replacement will not be a term rate, the Available Tenor of such Benchmark for purposes of this definition of “Benchmark Replacement Adjustment” shall be deemed to be the Available Tenor that has approximately the same length (disregarding business day adjustments) as the payment period for interest calculated with reference to such Unadjusted Benchmark Replacement. 

   

  “Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions and other technical, administrative or operational matters) that the Bank decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Bank in a manner substantially consistent with market practice (or, if the Bank decides that adoption of any portion of such market practice is not administratively feasible or if the Bank determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Bank decides is reasonably necessary in connection with the administration of the Facility and the Loan Documents). 

   

  “Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark: 

   

  (1)	in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation 

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  thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); 

   

  (2)	in the case of clause (3) of the definition of “Benchmark Transition Event,” the date determined by the Bank, which date shall promptly follow the date of the public statement or publication of information referenced therein; 

   

  (3)	in the case of a Term SOFR Transition Event, the date that is set forth in the Term SOFR Notice provided to the Borrower pursuant to this Rider, which date shall be at least 30 days from the date of the Term SOFR Notice; or

   

  (4)	in the case of an Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the Borrower. 

   

  For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof). 

   

  “Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark: 

   

  (1)	a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); 

   

  (2)	a public statement or publication of information by a Governmental Authority having jurisdiction over the Bank, the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or 

   

  (3)	a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) or a Governmental Authority having jurisdiction over the Bank announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer representative. 

   

  For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof). 

   

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  “Benchmark Unavailability Period” means the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with this Rider, and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with this Rider. 

   

  “Corresponding Tenor” with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor. 

   

  “Daily Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which may include a lookback) being established by the Bank in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for business loans; provided, that if the Bank decides that any such convention is not administratively feasible for the Bank, then the Bank may establish another convention in its reasonable discretion.

   

  “Early Opt-in Election” means, if the then-current Benchmark is USD LIBOR, the occurrence of: 

   

  (1)	a determination by the Bank that at least five (5) currently outstanding U.S. dollar-denominated syndicated or bilateral credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate, and 

   

  (2)	the election by the Bank to trigger a fallback from USD LIBOR and the provision by the Bank of written notice of such election to the Borrower. 

   

  “Fallback Rate” means the alternative rate of interest that would have been applicable under the terms of the Facility (absent this Rider) if the Bank had given notice that USD LIBOR had become unavailable or, if no such alternative rate is specified, the Base Rate.

   

  “Floor” means the minimum rate of interest, if any, provided under the terms of the Facility with respect to USD LIBOR or, if no minimum rate of interest is specified, zero.

   

  “Governmental Authority” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

   

  “ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.  

   

  “Reference Time” with respect to any setting of the then-current Benchmark means (1) if such Benchmark is USD LIBOR (other than the Daily LIBOR Rate), 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) if such Benchmark is not USD LIBOR or is the Daily LIBOR Rate, the time determined by the Bank in its reasonable discretion. 

   

  “Relevant Governmental Body” means the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or any successor thereto. 

   

  - 12 -

  

   

  “SOFR” means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator’s Website on the immediately succeeding Business Day. 

   

  “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). 

   

  “SOFR Administrator’s Website” means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time. 

   

  “Term SOFR” means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body. 

   

  “Term SOFR Notice” means a notification by the Bank to the Borrower of the occurrence of a Term SOFR Transition Event.

   

  “Term SOFR Transition Event” means the determination by the Bank that (1) Term SOFR has been recommended for use by the Relevant Governmental Body, and is determinable for each Available Tenor, (2) the administration of Term SOFR is administratively feasible for the Bank and (3) a Benchmark Transition Event has previously occurred resulting in a Benchmark Replacement in accordance with this Rider that is not Term SOFR.

   

  “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment. 

   

  “USD LIBOR” means, for purposes of this Rider only, any interest rate that is based on the London interbank offered rate for U.S. dollars.

   

   

   

   

   

  - 13 -Exhibit 10.1

 

PROPHASE
LABS, INC.

$100,000,000

Common
Stock

($0.0005
par value per share)

Sales
Agreement

 

December
28, 2021

 

ThinkEquity
LLC

17
State Street, 22nd Floor

New
York, NY 10004

 

Ladies
and Gentlemen:

 

ProPhase
Labs, Inc., a corporation formed under the laws of the State of Delaware (the “Company”), confirms its agreement (this
“Agreement”) with ThinkEquity LLC (“ThinkEquity” or “Agent”), as follows:

 

1.
Issuance and Sale of Shares. The Company agrees
that, from time to time during the term of this Agreement, on the terms and subject to the conditions set forth herein, it may issue
and sell through or to the Agent, on an exclusive basis, shares (the “Placement Shares”) of common stock of the Company,
$0.0005 par value per share (the “Common Stock”) having an aggregate offering price of up to $100,000,000, provided,
however, that in no event shall the Company issue or sell through Agent such number of Placement Shares that (a) exceeds the number
or dollar amount of shares of Common Stock that may be sold pursuant to the Registration Statement (as defined below), or (b) exceeds
the number of authorized but unissued and unreserved shares of Common Stock of the Company (the “Maximum Amount”).
Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in
this Section 1 on the amount of Placement Shares issued and sold under this Agreement shall be the sole responsibility of the Company
and that Agent shall have no obligation in connection with such compliance. The issuance and sale of Placement Shares through or to Agent
will be effected pursuant to the Registration Statement (as defined below) filed by the Company and declared effective by the Securities
and Exchange Commission (the “Commission”), although nothing in this Agreement shall be construed as requiring the
Company to use the Registration Statement to issue any Placement Shares.

 

The
Company has filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations thereunder
(the “Securities Act”), with the Commission a registration statement on Form S-3 (File No. 333-260848), including
a base prospectus, relating to certain securities, including shares of Common Stock, that may be issued from time to time by the Company,
and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder (the “Exchange Act”). The Company has prepared
a prospectus supplement to the base prospectus included as part of the registration statement specifically relating to the Placement
Shares (the “Prospectus Supplement”). The Company will furnish to the Agent, for use by the Agent, copies of the prospectus
included as part of such registration statement, as supplemented by the Prospectus Supplement, relating to the Placement Shares. Except
where the context otherwise requires, such registration statement, and any post-effective amendment thereto, including all documents
filed as part thereof or incorporated by reference therein, and including any information contained in a Prospectus (as defined below)
subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act or deemed to be a part of such registration statement
pursuant to Rule 430B of the Securities Act, or any subsequent registration statement on Form S-3 filed pursuant to Rule 415(a)(6) under
the Securities Act by the Company to cover any Placement Shares, is herein called the “Registration Statement.” The
base prospectus included in the Registration Statement, including all documents incorporated therein by reference, and the Prospectus
Supplement, as it or they may be supplemented by any additional prospectus supplement, in the form in which such prospectus and/or Prospectus
Supplement have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act, together
with any then issued Issuer Free Writing Prospectus (defined below), is herein called the “Prospectus.” Any reference
herein to the Registration Statement, the Prospectus or any amendment or supplement thereto, shall be deemed to refer to and include
the documents incorporated or deemed to be incorporated by reference therein, and any reference herein to the terms “amend,”
“amendment” or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer
to and include the filing after the execution hereof of any document with the Commission deemed to be incorporated by reference therein
(the “Incorporated Documents”). For purposes of this Agreement, all references to the Registration Statement, the
Prospectus or to any amendment or supplement thereto shall be deemed to include any copy filed with the Commission pursuant to its Electronic
Data Gathering Analysis and Retrieval System, or if applicable, the Interactive Data Electronic Application system when used by the Commission
(collectively, “EDGAR”).

 

    	1

     

    

 

2.
Placements. Each time that the Company wishes
to issue and sell Placement Shares hereunder (each, a “Placement”), it will notify the Agent by email notice (or other
method mutually agreed to in writing by the Parties) of the number or dollar value of Placement Shares to be sold, the time period during
which sales are requested to be made, any limitation on the number of Placement Shares that may be sold in any one day and any minimum
price below which sales may not be made (a “Placement Notice”), the form of which is attached hereto as Schedule 1.
The Placement Notice shall originate from any of the individuals from the Company set forth on Schedule 3 (with a copy to each of the
other individuals from the Company listed on such schedule), and shall be addressed to each of the individuals from the Agent set forth
on Schedule 3, as such Schedule 3 may be amended from time to time. The Placement Notice shall be effective unless and until (i) the
Agent declines to accept the terms contained therein for any reason, in its sole discretion by promptly notifying the Company of its
decision to decline acceptance, (ii) the entire amount of the Placement Shares thereunder have been sold, (iii) the Company suspends
or terminates the Placement Notice, or (iv) the Agreement has been terminated under the provisions of Section 12. The amount of any discount,
commission or other compensation to be paid by the Company to the Agent in connection with the sale of the Placement Shares shall be
calculated in accordance with the terms set forth in Schedule 2. It is expressly acknowledged and agreed that neither the Company nor
the Agent will have any obligation whatsoever with respect to a Placement or any Placement Shares unless and until the Company delivers
a Placement Notice to the Agent and the Agent does not decline such Placement Notice pursuant to the terms set forth above, and then
only upon the terms specified therein and herein. In the event of a conflict between the terms of this Agreement and the terms of a Placement
Notice, the terms of the Placement Notice will control.

 

3.
Sale of Placement Shares by Agent. Subject to
the provisions of Section 5(a), the Agent, for the period specified in the Placement Notice, will use its commercially reasonable
efforts consistent with its normal trading and sales practices and applicable state and federal laws, rules and regulations and the rules
of The Nasdaq Stock Market LLC (the “Exchange”), to sell the Placement Shares up to the amount specified, and otherwise
in accordance with the terms of such Placement Notice. The Agent will provide written confirmation to the Company no later than the opening
of the Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares hereunder
setting forth the number of Placement Shares sold on such day, the compensation payable by the Company to the Agent pursuant to Section
2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization of the deductions
made by the Agent (as set forth in Section 5(b)) from the gross proceeds that it receives from such sales. Subject to the terms
of the Placement Notice, the Agent may sell Placement Shares by any method permitted by law deemed to be an “at the market offering”
as defined in Rule 415 of the Securities Act.

 

4.
Suspension of Sales.

 

(a)
The Company or the Agent may, upon notice to the other
party in writing (including by email correspondence to each of the individuals of the other party set forth on Schedule 3, if receipt
of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) or by
telephone (confirmed immediately by verifiable facsimile transmission or email correspondence to each of the individuals of the other
party set forth on Schedule 3), suspend any sale of Placement Shares; provided, however, that such suspension shall not affect or impair
any party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt of such notice. Each party agrees
that no such notice under this Section 4 shall be effective against any other party unless it is made to one of the individuals named
on Schedule 3 hereto, as such Schedule may be amended from time to time.

 

(b)
Notwithstanding any other provision of this Agreement,
during any period in which the Company is in possession of material non-public information, the Company and the Agent agree that (i)
no sale of Placement Shares will take place, (ii) the Company shall not request the sale of any Placement Shares, and (iii) the Agent
shall not be obligated to sell or offer to sell any Placement Shares.

 

    	2

     

    

 

5.
Sale and Delivery to the Agent; Settlement.

 

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

 

(b)
Settlement of Placement Shares. Unless
otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will occur on the second (2nd)
Trading Day (or such earlier day as is industry practice for regular-way trading) following the date on which such sales are made (each,
a “Settlement Date”). The amount of proceeds to be delivered to the Company on a Settlement Date against receipt of
the Placement Shares sold (the “Net Proceeds”) will be equal to the aggregate sales price received by the Agent, after
deduction for (i) the Agent’s commission, discount or other compensation for such sales payable by the Company pursuant to Section
2 hereof, and (ii) any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales or execution
charges of a clearing firm or floor charges or delivery expenses incurred with the Deposit and Withdrawal Custodian System of The Depository
Trust Company as described below.

 

(c)
Delivery of Placement Shares. Upon the acceptance
of a Placement Notice by the Agent, the Company may issue and deliver for deposit in the Company’s brokerage account with the Agent,
a number of Placement Shares equal or greater to the maximum number of Placement Shares referenced in the Placement Notice. On each Settlement
Date, against payment of the Net Proceeds, the Company will, or will cause its transfer agent to, electronically transfer the Placement
Shares being sold not already delivered for deposit in the Company’s brokerage account by crediting the Agent’s or its designee’s
account (provided the Agent shall have given the Company written notice of such designee prior to the Settlement Date) at The Depository
Trust Company through its Deposit and Withdrawal at Custodian System or by such other means of delivery as may be mutually agreed upon
by the parties hereto, which in all cases shall be freely tradable, transferable, registered shares in good deliverable form. On each
Settlement Date, the Agent will deliver the related Net Proceeds in same day funds to an account designated by the Company on, or prior
to, the Settlement Date. The Company agrees that if the Company, or its transfer agent (if applicable), defaults in its obligation to
deliver Placement Shares on a Settlement Date, the Company agrees that in addition to and in no way limiting the rights and obligations
set forth in Section 10(a) hereto, it will (i) hold the Agent harmless against any loss, claim, damage, or expense (including reasonable
legal fees and expenses), as incurred, arising out of or in connection with such default by the Company or its transfer agent (if applicable)
and (ii) pay to the Agent any commission, discount, or other compensation to which it would otherwise have been entitled absent such
default.

 

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

 

    	3

     

    

 

(e)
Sales Through Agent. The Company agrees that
any offer to sell, any solicitation of an offer to buy, or any sales of Placement Shares or any other equity security of the Company
shall only be effected by or through the Agent, on any single given date; provided however that (i) the foregoing limitation shall not
apply to (A) exercise of any option, warrant, right or any conversion privilege set forth in the instruction governing such securities,
or (B) sales solely to employees, directors or security holders of the Company or its subsidiaries, or to a trustee or other person acquiring
such securities for the accounts of such person, and (ii) such limitation shall not apply (A) on any day during which no sales are made
pursuant to this Agreement or (B) during a period in which the Company has notified the Agent that it will not sell Common Stock under
this Agreement and (1) no Placement Notice is pending or (2) after a Placement Notice has been withdrawn.

 

6.
Representations and Warranties of the Company.
Except as disclosed in the Registration Statement or Prospectus (including the Incorporated Documents), the Company represents and warrants
to, and agrees with the Agent that as of the date of this Agreement and as of each Applicable Time (as defined below), unless such representation,
warranty or agreement specifies a different date or time:

 

(a)
Registration Statement and Prospectus. The Registration
Statement has been filed with the Commission and declared effective under the Securities Act. The Prospectus Supplement will name ThinkEquity
as the Agent in the section entitled “Plan of Distribution.” The Company has not received, and has no notice of, any order
of the Commission preventing or suspending the use of the Registration Statement, or threatening or instituting proceedings for that
purpose. The Registration Statement and the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule 415
under the Securities Act and comply in all material respects with said Rule. Any statutes, regulations, contracts or other documents
that are required to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement
have been so described or filed. Copies of the Registration Statement, the Prospectus, and any such amendments or supplements and all
documents incorporated by reference therein that were filed with the Commission on or prior to the date of this Agreement have been delivered,
or are available through EDGAR, to the Agent and its counsel. The Company has not distributed and, prior to the later to occur of each
Settlement Date and completion of the distribution of the Placement Shares, will not distribute any offering material in connection with
the offering or sale of the Placement Shares other than the Registration Statement and the Prospectus and any Issuer Free Writing Prospectus
to which the Agent has consented. The Company has not, in the 12 months preceding the date hereof, received notice from the Exchange
to the effect that the Company is not in compliance with the listing or maintenance requirements. The Company has no reason to believe
that it will not in the foreseeable future continue to be in compliance with all such listing and maintenance requirements.

 

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

 

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

 

    	4

     

    

 

(d)
Disclosure of Agreements. The agreements and documents described in the Registration Statement and the Prospectus conform in all
material respects to the descriptions thereof contained or incorporated by reference therein and there are no agreements or other documents
required by the Securities Act to be described in the Registration Statement and the Prospectus or to be filed with the Commission as
exhibits to the Registration Statement or to be incorporated by reference in the Registration Statement or the Prospectus, that have
not been so described or filed or incorporated by reference. Each agreement or other instrument (however characterized or described)
to which the Company is a party or by which it is or may be bound or affected and (i) that is referred to or incorporated by reference
in the Registration Statement and the Prospectus, or (ii) is material to the Company’s business, has been duly authorized and validly
executed by the Company, is, to the Company’s knowledge, in full force and effect in all material respects and is enforceable against
the Company and, to the Company’s knowledge, the other parties thereto, in accordance with its terms, except (x) as such enforceability
may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally, (y) as enforceability
of any indemnification or contribution provision may be limited under the federal and state securities laws, and (z) that the remedy
of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion
of the court before which any proceeding therefor may be brought. Except as disclosed in the Registration Statement and Prospectus, none
of such agreements or instruments has been assigned by the Company, and neither the Company nor, to the best of the Company’s knowledge,
any other party is in default thereunder and, to the best of the Company’s knowledge, no event has occurred that, with the lapse
of time or the giving of notice, or both, would constitute a default thereunder. To the Company’s knowledge, performance by the
Company of the material provisions of such agreements or instruments will not result in a violation of any existing applicable law, rule,
regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company
or any of its assets or businesses (each, a “Governmental Entity”), including, without limitation, those relating to environmental
laws and regulations.

 

(e)
Regulations. The disclosures in the Registration Statement and the Prospectus concerning the effects of federal, state, local
and all foreign regulation on the offering and the Company’s business as currently contemplated are correct in all material respects
and no other such regulations are required to be disclosed in the Registration Statement and the Prospectus which are not so disclosed.

 

(f)
No Other Distribution of Offering Materials. The Company has not, directly or indirectly, distributed and will not distribute
any offering material in connection with the offering other than the Prospectus and other materials, if any, permitted under the Securities
Act.

 

(g)
Financial Information. The financial statements
of the Company included or incorporated by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses,
if any, together with the related notes and schedules, present fairly, in all material respects, the financial position of the Company
as of the dates indicated and the results of operations, cash flows and changes in stockholders’ equity of the Company for the
periods specified and have been prepared in compliance with the requirements of the Securities Act and Exchange Act and in conformity
with generally accepted accounting principles in the United States (“GAAP”) applied on a consistent basis (except
for (i) such adjustments to accounting standards and practices as are noted therein, (ii) in the case of unaudited interim financial
statements, to the extent such financial statements may not include footnotes required by GAAP or may be condensed or summary statements
and (iii) such adjustments which will not be material, either individually or in the aggregate) during the periods involved; the other
financial and statistical data with respect to the Company contained or incorporated by reference in the Registration Statement, the
Prospectus and the Issuer Free Writing Prospectuses, if any, are accurately and fairly presented and prepared on a basis consistent with
the financial statements and books and records of the Company; there are no financial statements (historical or pro forma) or supporting
schedules that are required to be included or incorporated by reference in the Registration Statement, or the Prospectus that are not
included or incorporated by reference as required; the pro forma financial statements and the related notes, if any, included or incorporated
by reference in the Registration Statement and the Prospectus have been properly compiled and prepared in accordance with the applicable
requirements of the Securities Act or the Exchange Act and present fairly in all material respects the information shown therein, and
the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the
transactions and circumstances referred to therein; all disclosures contained in the Registration Statement or the Prospectus, or incorporated
or deemed incorporated by reference therein, regarding “non-GAAP financial measures” (as such term is defined by the rules
and regulations of the Commission), if any, comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the Securities
Act, to the extent applicable; each of the Registration Statement and the Prospectus discloses all material off-balance sheet transactions,
arrangements, obligations (including contingent obligations), and other relationships of the Company with unconsolidated entities or
other persons that may have a material current or future effect on the Company’s financial condition, changes in financial condition,
results of operations, liquidity, capital expenditures, capital resources, or significant components of revenues or expenses; except
as disclosed in the Registration Statement and the Prospectus, subsequent to the respective dates as of which information is given in
the Registration Statement and the Prospectus, (a) neither the Company nor any of its direct and indirect subsidiaries, including each
entity disclosed or described in the Registration Statement and the Prospectus as being a subsidiary of the Company (each, a “Subsidiary”
and, collectively, the “Subsidiaries”), has incurred any material liabilities or obligations, direct or contingent, or entered
into any material transactions other than in the ordinary course of business, (b) the Company has not declared or paid any dividends
or made any distribution of any kind with respect to its capital stock, (c) there has not been any change in the capital stock of the
Company or any of its Subsidiaries, or, other than in the course of business or any grants under any stock compensation plan, and (d)
there has not been any material adverse change in the Company’s long-term or short-term debt.

 

    	5

     

    

 

(h)
Related Party Transactions.

 

(1)
Business Relationships. There are no business relationships or related party transactions involving the Company or any other person
that are required to be described in the Registration Statement and the Prospectus that have not been so described or incorporated by
reference.

 

(2)
No Relationships with Customers and Suppliers. No relationship, direct or indirect, exists between or among the Company on the
one hand, and the directors, officers, and beneficial owner of more than 5% of any class of the Company’s voting securities, customers
or suppliers of the Company or any of the Company’s affiliates on the other hand, that is required to be described in the Registration
Statement and the Prospectus that has not been so described or incorporated by reference.

 

(3)
No Unconsolidated Entities. There are no transactions, arrangements or other relationships between and/or among the Company, any
of its affiliates (as such term is defined in Rule 405 of the Securities Act) and any unconsolidated entity, including, but not limited
to, any structure finance, special purpose or limited purpose entity that could reasonably be expected to materially affect the Company’s
liquidity or the availability of or requirements for its capital resources that are required to be described in the Registration Statement
and the Prospectus that have not been so described or incorporated by reference.

 

(4)
No Loans or Advances to Affiliates. There are no outstanding loans, advances (except normal advances for business expenses in
the ordinary course of business) or guarantees or indebtedness by the Company to or for the benefit of any of the officers or directors
of the Company, any other affiliates of the Company or any of their respective family members, except as disclosed in the Registration
Statement and the.

 

(i)
Contracts Affecting Capital. There are no transactions, arrangements or other relationships between and/or among the Company,
any of its affiliates (as such term is defined in Rule 405 of the Securities Act Regulations) and any unconsolidated entity, including,
but not limited to, any structured finance, special purpose or limited purpose entity that could reasonably be expected to materially
affect the Company’s or any of its Subsidiaries’ liquidity or the availability of or requirements for their capital resources
that are required to be described or incorporated by reference in the Registration Statement and the Prospectus that have not been so
described or incorporated by reference.

 

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

 

    	6

     

    

 

(k)
Organization. The Company is a corporation duly
incorporated, validly existing under the laws of the State of Delaware. The Company is, and will be, duly licensed or qualified as a
foreign corporation for transaction of business and in good standing under the laws of each other jurisdiction in which its ownership
or lease of property or the conduct of its business requires such license or qualification, and has all corporate power and authority
necessary to own or hold its properties and to conduct its business as described in the Registration Statement and the Prospectus, except
where the failure to be so qualified or in good standing or have such power or authority would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on or affect the assets, business, operations, earnings, properties, condition
(financial or otherwise), prospects, stockholders’ equity or results of operations of the Company or prevent or materially interfere
with consummation of the transactions contemplated hereby (a “Material Adverse Effect”).

 

(l)
D&O Questionnaires. To the Company’s knowledge, all information contained in the questionnaires (the “Questionnaires”)
completed by each of the Company’s directors anl officers in 2021, as supplemented by all information concerning the Company’s
directors, officers and principal stockholders as described in the Registration Statement and the Prospectus, is true and correct in
all material respects and the Company has not become aware of any information which would cause the information disclosed in the Questionnaires
to become materially inaccurate and incorrect.

 

(m)
Board of Directors. The Board of Directors of the Company is comprised of the persons disclosed in the Registration Statement
and the Prospectus. The qualifications of the persons serving as board members and the overall composition of the board comply with the
Exchange Act, the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder (the “Sarbanes-Oxley Act”) applicable to
the Company and the listing rules of the Exchange. At least one member of the Audit Committee of the Board of Directors of the Company
qualifies as an “audit committee financial expert,” as such term is defined under Regulation S-K and the listing rules of
the Exchange. In addition, at least a majority of the persons serving on the Board of Directors qualify as “independent,”
as defined under the listing rules of the Exchange.

 

(n)
Subsidiaries. The Company does not own or control,
directly or indirectly, any corporation, association or other entity other than the subsidiaries listed in Schedule 6(g) of this
Agreement. The Company owns directly or indirectly, all of the equity interests of its subsidiaries free and clear of any lien, charge,
security interest, encumbrance, right of first refusal or other restriction, and all the equity interests of its subsidiaries are validly
issued and are fully paid, non-assessable and free of preemptive and similar rights. All direct and indirect Subsidiaries of the Company
are duly organized and in good standing under the laws of the place of organization or incorporation, and each Subsidiary is in good
standing in each jurisdiction in which its ownership or lease of property or the conduct of business requires such qualification, except
where the failure to qualify would not have a Material Adverse Effect

 

(o)
No Violation or Default. The Company is not (i)
in violation of its charter or by-laws or similar organizational documents; (ii) in default, and no event has occurred that, with notice
or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or condition contained
in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company is a party or by which
the Company is bound or to which any of the property or assets of the Company is subject; or (iii) in violation of any law or statute
or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of
each of clauses (ii) and (iii) above, for any such violation or default that would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. To the Company’s knowledge, no other party under any material contract or other
agreement to which it is a party is in default in any respect thereunder where such default would reasonably be expected to have a Material
Adverse Effect.

 

(p)
No Material Adverse Effect. Subsequent to the
respective dates as of which information is given in the Registration Statement and the Prospectus, there has not been (i) any Material
Adverse Effect, (ii) any transaction which is material to the Company, (iii) any obligation or liability, direct or contingent (including
any off-balance sheet obligations), incurred by the Company which is material to the Company, (iv) any material change in the capital
stock or outstanding long-term indebtedness (other than (A) the grant of additional awards under equity incentive plans, (B) changes
in the number of outstanding Common Stock due to the issuance of shares upon exercise or conversion of securities exercisable for or
convertible into Common Stock outstanding on the date hereof, (C) any repurchase of capital stock of the Company, (D) as a result of
the sale of Placement Shares, or (E) other than as publicly reported or announced, or (v) any dividend or distribution of any kind declared,
paid or made on the capital stock of the Company other than in each case above in the ordinary course of business or as otherwise disclosed
in the Registration Statement or Prospectus (including any document deemed incorporated by reference).

 

    	7

     

    

 

(q)
Capitalization. The issued and outstanding shares
of capital stock of the Company have been validly issued, are fully paid and non-assessable and, other than as disclosed in the Registration
Statement or the Prospectus, are not subject to any preemptive rights, rights of first refusal or similar rights. The Company has an
authorized, issued and outstanding capitalization as set forth in the Registration Statement and the Prospectus as of the dates referred
to therein (other than the grant of additional restricted stock, stock options and restricted stock units under the Company’s existing
equity incentive plans, or changes in the number of outstanding shares of Common Stock of the Company due to the issuance of shares upon
the exercise or conversion of securities exercisable for, or convertible into, Common Stock outstanding on the date hereof, any repurchase
of capital stock of the Company, as a result of the sale of Placement Shares, or due to issuances of shares of Common Stock as otherwise
publicly reported or announced, and such authorized capital stock conforms to the description thereof set forth in the Registration Statement
and the Prospectus. The description of the securities of the Company in the Registration Statement and the Prospectus is complete and
accurate in all material respects. Except as disclosed in or contemplated by the Registration Statement or the Prospectus, as of the
date referred to therein, the Company does not have outstanding any options to purchase, or any rights or warrants to subscribe for,
or any securities or obligations convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares
of capital stock or other securities except for outstanding options under the Company’s existing stock option plans, warrants to
subscribe for shares of Common Stock.

 

(r)
Valid Issuance of Outstanding Securities. All issued and outstanding securities of the Company issued prior to the transactions
contemplated by this Agreement have been duly authorized and validly issued and are fully paid and non-assessable; the holders thereof
have no rights of rescission or similar rights with respect thereto or put rights, and are not subject to personal liability by reason
of being such holders; and none of such securities were issued in violation of the preemptive rights, rights of first refusal or rights
of participation of any holders of any security of the Company or similar contractual rights granted by the Company. The authorized shares
of Common Stock conform in all material respects to all statements relating thereto contained in the Registration Statement and the Prospectus.
The offers and sales of the outstanding shares of Common Stock were at all relevant times either registered under the Securities Act
and the applicable state securities or “blue sky” laws or, based in part on the representations and warranties of the purchasers
of such shares of Common Stock, exempt from such registration requirements.

 

(s)
Authorization; Enforceability. The Company has
full legal right, power and authority to enter into this Agreement and perform the transactions contemplated hereby. This Agreement has
been duly authorized, executed and delivered by the Company and is a legal, valid and binding agreement of the Company enforceable in
accordance with its terms, except (i) to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditors’ rights generally and by general equitable principles and (ii) the indemnification and contribution
provisions of Section 10 hereof may be limited by federal or state securities laws and public policy considered in respect thereof.

 

(t)
Authorization of Placement Shares. The Placement
Shares, when issued and delivered pursuant to the terms approved by the board of directors of the Company or a duly authorized committee
thereof, against payment therefor as provided herein, will be duly and validly authorized and issued and fully paid and non-assessable,
free and clear of any pledge, lien, encumbrance, security interest or other claim, including any statutory or contractual preemptive
rights, resale rights, rights of first refusal or other similar rights, and will be registered pursuant to Section 12 of the Exchange
Act. The Placement Shares, when issued, will conform in all material respects to the description thereof set forth in or incorporated
into the Prospectus.

 

(u)
No Consents Required. No consent, approval, authorization,
order, registration or qualification of or with any court or arbitrator or governmental or regulatory authority is required for the execution,
delivery and performance by the Company this Agreement, the issuance and sale by the Company of the Placement Shares, except for such
consents, approvals, authorizations, orders and registrations or qualifications (i) as may be required under applicable state securities
laws or by the by-laws and rules of the Financial Industry Regulatory Authority (“FINRA”) or the Exchange, including
any notices that may be required by the Exchange, in connection with the sale of the Placement Shares by the Agent, (ii) as may be required
under the Securities Act, and (iii) as have been previously obtained by the Company.

 

    	8

     

    

 

(v)
No Preferential Rights. (i) No person, as such
term is defined in Rule 1-02 of Regulation S-X promulgated under the Securities Act (each, a “Person”), has the right,
contractual or otherwise, to cause the Company to issue or sell to such Person any Common Stock or shares of any other capital stock
or other securities of the Company (other than upon the exercise of options or warrants to purchase Common Stock or upon the exercise
of options that may be granted from time to time under the Company’s equity incentive plans), (ii) no Person has any preemptive
rights, resale rights, rights of first refusal, or any other rights (whether pursuant to a “poison pill” provision or otherwise)
to purchase any Common Stock or shares of any other capital stock or other securities of the Company, (iii) no Person has the right to
act as an underwriter or as a financial advisor to the Company in connection with the offer and sale of Common Stock, and (iv) no Person
has the right, contractual or otherwise, to require the Company to register under the Securities Act any Common Stock or shares of any
other capital stock or other securities of the Company, or to include any such shares or other securities in the Registration Statement
or the offering contemplated thereby, whether as a result of the filing or effectiveness of the Registration Statement or the sale of
the Placement Shares as contemplated thereby or otherwise.

 

(w)
Registration Rights of Third Parties. No holders of any securities of the Company or any rights exercisable for or convertible
or exchangeable into securities of the Company have the right to require the Company to register any such securities of the Company under
the Securities Act or to include any such securities in a registration statement to be filed by the Company.

 

(x)
Independent Public Accountant. The Company’s
accountants (the “Accountants”), whose report or reports on the financial statements of the Company is filed with
the Commission as part of the Company’s most recent Annual Report on Form 10-K filed with the Commission and incorporated into
the Registration Statement and the Prospectus, each are and, during the periods covered by their report, were an independent registered
public accounting firm with respect to the Company within the meaning of the Securities Act and the Public Company Accounting Oversight
Board (United States). To the Company’s knowledge, the Accountants are not in violation of the auditor independence requirements
of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) with respect to the Company. The Accountants did not,
during the periods covered by the financial statements included or incorporated by reference in the Registration Statement and the Prospectus,
provide to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act.

 

(y)
Enforceability of Agreements. All agreements
between the Company and third parties expressly referenced in the Prospectus, other than such agreements that have expired by their terms
or whose termination is disclosed in documents filed by the Company on EDGAR, are legal, valid and binding obligations of the Company
enforceable in accordance with their respective terms, except to the extent that (i) enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally and by general equitable principles and (ii) the
indemnification provisions of certain agreements may be limited be federal or state securities laws or public policy considerations in
respect thereof, and except for any unenforceability that, individually or in the aggregate, would not reasonably be expected to have
a Material Adverse Effect.

 

(z)
No Litigation. There are no legal, governmental
or regulatory actions, suits or proceedings pending, nor, to the Company’s knowledge, any legal, governmental or regulatory investigations,
to which the Company is a party or to which any property of the Company is the subject nor, to the Company’s knowledge, threatened
against, or involving any executive officer or director, which has not been disclosed in the Registration Statement and the Prospectus,
or in connection with the Company’s listing application for the listing of its Common Stock on the Exchange, and which is required
to be disclosed or that, individually or in the aggregate, if determined adversely to the Company would have a Material Adverse Effect
or materially and adversely affect the ability of the Company to perform its obligations under this Agreement; to the Company’s
knowledge, no such actions, suits or proceedings are threatened or contemplated by any governmental or regulatory authority or threatened
by others; and there are no current or pending legal, governmental or regulatory investigations, actions, suits or proceedings that are
required under the Securities Act to be described in the Prospectus that are not so described.

 

    	9

     

    

 

(aa)
Licenses and Permits. The Company possesses or
has obtained, all licenses, certificates, consents, orders, approvals, permits and other authorizations issued by, and have made all
declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities that are necessary
for the ownership or lease of its properties or the conduct of its businesses as described in the Registration Statement and the Prospectus
(the “Permits”), except where the failure to possess, obtain or make the same would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. The Company has not received written notice of any proceeding relating to revocation
or modification of any such Permit or has any reason to believe that such Permit will not be renewed in the ordinary course, except where
the failure to obtain any such renewal would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

(bb)
No Material Defaults. No default exists in the
due performance and observance of any term, covenant or condition of any license, contract, indenture, mortgage, deed of trust, note,
loan or credit agreement, or any other agreement or instrument evidencing an obligation for borrowed money, or any other material agreement
or instrument to which the Company is a party or by which the Company may be bound or to which any of the properties or assets of the
Company is subject, which default, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.
The Company is not in violation of any term or provision of its Charter or by-laws, or in violation of any franchise, license, permit,
applicable law, rule, regulation, judgment or decree of any Governmental Entity. 2

 

(cc)
S-3 Eligibility. (i) At the time of filing the
Registration Statement and (ii) at the time of the most recent amendment thereto for the purposes of complying with Section 10(a)(3)
of the Securities Act (whether such amendment was by post-effective amendment, incorporated report filed pursuant to Section 13 or 15(d)
of the Exchange Act or form of prospectus), the Company and the transactions contemplated by this Agreement met the then applicable requirements
for use of Form S-3 under the Securities Act, including compliance with General Instruction I.B.1 of Form S-3.

 

(dd)
Certain Market Activities. Neither the Company
nor, to the Company’s knowledge, any of its directors, officers or controlling persons has taken, directly or indirectly, any action
designed, or that has constituted or would reasonably be expected to cause or result in, under the Exchange Act or otherwise, the stabilization
or manipulation of the price of any security of the Company to facilitate the sale or resale of the Placement Shares.

 

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

 

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

 

(gg)
Taxes. Each of the Company and its Subsidiaries
has filed all federal, state, local and foreign tax returns which have been required to be filed and paid all taxes shown thereon through
the date hereof, to the extent that such taxes have become due and are not being contested in good faith. Except as otherwise disclosed
in or contemplated by the Registration Statement or the Prospectus, no tax deficiency has been determined adversely to the Company which
has had, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The Company has no knowledge
of any federal, state or other governmental tax deficiency, penalty or assessment which has been or might be asserted or threatened against
it which reasonably would be expected to have a Material Adverse Effect.

 

(hh)
Title to Real and Personal Property. The Company
and each of its Subsidiaries has good, valid and marketable title in fee simple to all items of real property and good and valid title
to all personal property (excluding intellectual property, which is addressed below) described in the Registration Statement or Prospectus
as being owned by it that are material to the business of the Company and its Subsidiaries taken as a whole, in each case free and clear
of all liens, encumbrances and claims, except those that do not, singly or in the aggregate, materially affect the value of such property
and do not interfere with the use made and proposed to be made of such property by the Company. Any real property described in the Registration
Statement or Prospectus as being leased by the Company is held by it under valid, existing and enforceable leases, except those that
do not materially interfere with the use made or proposed to be made of such property by the Company or the Subsidiaries. Neither the
Company nor any Subsidiary has received any notice of any material claim of any sort that has been asserted by anyone adverse to the
rights of the Company or any Subsidiary under any of the leases or subleases mentioned above, or affecting or questioning the rights
of the Company or such Subsidiary to the continued possession of the leased or subleased premises under any such lease or sublease.

 

    	10

     

    

 

(ii)
Intellectual Property. The Company and each of
its Subsidiaries owns or possesses or has valid rights to use all patents, patent applications, trademarks, service marks, trade names,
trademark registrations, service mark registrations, copyrights, licenses, inventions, trade secrets and similar rights (“Intellectual
Property Rights”) necessary for the conduct of the business of the Company and its Subsidiaries as currently carried on and as
described in the Registration Statement and the Prospectus. To the knowledge of the Company, no action or use by the Company or any of
its Subsidiaries necessary for the conduct of its business as currently carried on and as described in the Registration Statement and
the Prospectus will involve or give rise to any infringement of, or license or similar fees (other than license or similar fees described
or contemplated in the Registration Statement and the Prospectus) for, any Intellectual Property Rights of others. Neither the Company
nor any of its Subsidiaries has received any notice alleging any such infringement of, license or similar fees for, or conflict with,
any asserted Intellectual Property Rights of others. Except as would not reasonably be expected to result, individually or in the aggregate,
in a Material Adverse Effect, (i) to the knowledge of the Company, there is no infringement, misappropriation or violation by third parties
of any of the Intellectual Property Rights owned by the Company; (ii) there is no pending or, to the knowledge of the Company, threatened
action, suit, proceeding or claim by others challenging the rights of the Company in or to any such Intellectual Property Rights, and
the Company is unaware of any facts which would form a reasonable basis for any such claim,; (iii) the Intellectual Property Rights owned
by the Company and, to the knowledge of the Company, the Intellectual Property Rights licensed to the Company have not been adjudged
by a court of competent jurisdiction invalid or unenforceable, in whole or in part, and there is no pending or, to the Company’s
knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property
Rights, and the Company is unaware of any facts which would form a reasonable basis for any such claim; (iv) there is no pending or,
to the Company’s knowledge, threatened action, suit, proceeding or claim by others that the Company infringes, misappropriates
or otherwise violates any Intellectual Property Rights or other proprietary rights of others, the Company has not received any written
notice of such claim and the Company is unaware of any other facts which would form a reasonable basis for any such claim; and (v) to
the Company’s knowledge, no employee of the Company is in or has ever been in violation in any material respect of any term of
any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement,
nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee’s
employment with the Company, or actions undertaken by the employee while employed with the Company. To the Company’s knowledge,
all material technical information developed by and belonging to the Company which has not been disclosed in a filed patent application
has been kept confidential. The Company is not a party to or bound by any options, licenses or agreements with respect to the Intellectual
Property Rights of any other person or entity that are required to be set forth in the Registration Statement and the Prospectus and
are not described therein. The Registration Statement and the Prospectus contain in all material respects the same description of the
matters set forth in the preceding sentence. None of the technology employed by the Company has been obtained or is being used by the
Company in violation of any contractual obligation binding on the Company or, to the Company’s knowledge, any of its officers,
directors or employees, or otherwise in violation of the rights of any persons.

 

All
licenses for the use of the Intellectual Property described in the Registration Statement and the Prospectus are in full force and effect
in all material respects and are enforceable against the Company and, to the Company’s knowledge, against the other parties thereto,
in accordance with their terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar
laws affecting creditors’ rights generally, (y) as enforceability of any indemnification or contribution provision may be limited
under the federal and state securities laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable
relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.
Except as disclosed in the Registration Statement and Prospectus, none of such agreements or instruments has been assigned by the Company,
and the Company has not, and to the Company’s knowledge, no other party is in default thereunder and no event has occurred that,
with the lapse of time or the giving of notice, or both, would constitute a default thereunder.

 

    	11

     

    

 

(jj)
Environmental Laws. The Company and its Subsidiaries
are in compliance with all foreign, federal, state and local rules, laws and regulations relating to the use, treatment, storage and
disposal of hazardous or toxic substances or waste and protection of health and safety or the environment which are applicable to their
businesses (“Environmental Laws”), except where the failure to comply would not reasonably be expected to result, singularly
or in the aggregate, in a Material Adverse Effect. There has been no storage, generation, transportation, handling, treatment, disposal,
discharge, emission, or other release of any kind of toxic or other wastes or other hazardous substances by, due to, or caused by the
Company or any of its Subsidiaries (or, to the Company’s knowledge, any other entity for whose acts or omissions the Company or
any of its Subsidiaries is or may otherwise be liable) upon any of the property now or previously owned or leased by the Company or any
of its Subsidiaries, or upon any other property, in violation of any law, statute, ordinance, rule, regulation, order, judgment, decree
or permit or which would, under any law, statute, ordinance, rule (including rule of common law), regulation, order, judgment, decree
or permit, give rise to any liability, which would reasonably be expected to have, singularly or in the aggregate with all such violations
and liabilities, a Material Adverse Effect; and there has been no disposal, discharge, emission or other release of any kind onto such
property or into the environment surrounding such property of any toxic or other wastes or other hazardous substances with respect to
which the Company has knowledge. In the ordinary course of business, the Company and its Subsidiaries conduct periodic reviews of the
effect of Environmental Laws on their business and assets, in the course of which they identify and evaluate associated costs and liabilities
(including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with
Environmental Laws or governmental permits issued thereunder, any related constraints on operating activities and any potential liabilities
to third parties). On the basis of such reviews, the Company and its Subsidiaries have reasonably concluded that such associated costs
and liabilities would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect.

 

(kk)
Internal Controls; Disclosure Controls.
The Company and its Subsidiaries maintain systems of internal accounting controls that comply with the requirements of the Exchange Act
and have been designed by, or under the supervision of, their respective principal executive and principal financial officers, or persons
performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with GAAP, including, but not limited to, internal accounting controls sufficient
to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset
accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and
(iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company’s internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f))
is effective and the Company is not aware of any material weaknesses in its internal control over financial reporting (other than as
set forth in the Prospectus). Since the date of the latest audited financial statements of the Company included in the Prospectus, there
has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely
to materially affect, the Company’s internal control over financial reporting (other than as set forth in the Prospectus). The
Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)) for the Company and designed
such disclosure controls and procedures to ensure that material information relating to the Company is made known to the certifying officers
by others within those entities, particularly during the period in which the Company’s Annual Report on Form 10-K or Quarterly
Report on Form 10-Q, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness
of the Company’s controls and procedures as of a date within 90 days prior to the filing date of the Form 10-K for the fiscal year
most recently ended (such date, the “Evaluation Date”). The Company presented in its Form 10-K for the fiscal year
most recently ended the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes in the Company’s
internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Securities Act) or, to the Company’s knowledge,
in other factors that could significantly affect the Company’s internal controls.

 

(ll)
Sarbanes-Oxley. The Company is not aware of any failure on the part of the Company or any of the Company’s directors or
officers, in their capacities as such, to comply with any applicable provisions of the Sarbanes-Oxley Act and the applicable rules and
regulations promulgated thereunder in all material respects. Each of the principal executive officer and the principal financial officer
of the Company (or each former principal executive officer of the Company and each former principal financial officer of the Company
as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules,
forms, statements and other documents required to be filed by it or furnished by it to the Commission during the past 12 months. For
purposes of the preceding sentence, “principal executive officer” and “principal financial officer” shall have
the meanings given to such terms in the Sarbanes-Oxley Act.

 

    	12

     

    

 

(mm)
Finder’s Fees. The Company has not incurred
any liability for any finder’s fees, brokerage commissions or similar payments in connection with the transactions herein contemplated,
except as may otherwise exist with respect to Agent pursuant to this Agreement and with respect to H.C Wainright & Co. pursuant to
a separate written agreement.

 

(nn)
Payments Within Twelve Months. Except as described in the Registration Statement and the Prospectus, the Company has not made
any direct or indirect payments (in cash, securities or otherwise) to: (i) any person, as a finder’s fee, consulting fee or otherwise,
in consideration of such person raising capital for the Company or introducing to the Company persons who raised or provided capital
to the Company; (ii) any FINRA member; or (iii) any person or entity that has any direct or indirect affiliation or association with
any FINRA member, within the twelve months prior to the date of this Agreement, other than the payment to the Agent as provided hereunder
in connection with the offering, and the Agent in connection with its role as underwriter in the underwritten offering of shares of the
Company’s Common Stock in January 2021.

 

(oo)
Use of Proceeds. None of the net proceeds of the offering will be paid by the Company to any participating FINRA member or its
affiliates, except as specifically authorized herein and to H.C Wainright & Co. pursuant to a separate written agreement.

 

(pp)
FINRA Affiliation. There is no (i) officer or director of the Company, (ii) beneficial owner of 5% or more of any class of the
Company’s securities or (iii) beneficial owner of the Company’s unregistered equity securities which were acquired during
the 180-day period immediately preceding the filing of the Registration Statement that is an affiliate or associated person of a FINRA
member participating in the offering (as determined in accordance with the rules and regulations of FINRA).

 

(qq)
Labor Disputes. No labor disturbance by or dispute
with employees of the Company or any of its Subsidiaries exists or, to the knowledge of the Company, is imminent, and, to the knowledge
of the Company, no labor disturbance by or dispute with the employees of the Company is threatened which would be reasonably likely to
have a Material Adverse Effect.

 

(rr)
Investment Company Act. The Company is not or
after giving effect to the offering and sale of the Placement Shares, will not be an “investment company” or an entity “controlled”
by an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”).

 

(ss)
Operations. The operations of the Company and
its Subsidiaries are and have been conducted at all times in compliance with applicable financial record keeping and reporting requirements
of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions to which
the Company is subject, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered
or enforced by any governmental agency (collectively, the “Money Laundering Laws”), except as would not reasonably
be expected to have a Material Adverse Effect; and no action, suit or proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to the knowledge of the Company,
threatened.

 

(tt)
Off-Balance Sheet Arrangements. There are no
transactions, arrangements and other relationships between and/or among the Company, and/or, to the knowledge of the Company, any of
its affiliates and any unconsolidated entity, including, but not limited to, any structural finance, special purpose or limited purpose
entity (each, an “Off Balance Sheet Transaction”) that could reasonably be expected to affect materially the Company’s
liquidity or the availability of or requirements for its capital resources, including those Off Balance Sheet Transactions described
in the Commission’s Statement about Management’s Discussion and Analysis of Financial Conditions and Results of Operations
(Release Nos. 33-8056; 34-45321; FR-61), required to be described in the Prospectus which have not been described as required.

 

(uu)
Underwriter Agreements. Other than with respect
to this Agreement, the Company is not a party to any agreement with an agent or underwriter for any other “at the market”
or continuous equity transaction.

 

    	13

     

    

 

(vv)
ERISA. To the knowledge of the Company, each
material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), that is maintained, administered or contributed to by the Company or any of its affiliates for employees
or former employees of the Company has been maintained in material compliance with its terms and the requirements of any applicable statutes,
orders, rules and regulations, including but not limited to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”);
no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result in
a material liability to the Company with respect to any such plan excluding transactions effected pursuant to a statutory or administrative
exemption; and for each such plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated
funding deficiency” as defined in Section 412 of the Code has been incurred, whether or not waived, and the fair market value of
the assets of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds the present value of all benefits
accrued under such plan determined using reasonable actuarial assumptions.

 

(ww)
Forward Looking Statements. No forward-looking
statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) (a “Forward Looking
Statement”) contained in the Registration Statement and the Prospectus has been made or reaffirmed without a reasonable basis
or has been disclosed other than in good faith. The Forward Looking Statements incorporated by reference in the Registration Statement
and the Prospectus from the Company’s Annual Report on Form 10-K for the fiscal year most recently ended (i) are within the coverage
of the safe harbor for forward looking statements set forth in Section 27A of the Securities Act, Rule 175(b) under the Securities Act
or Rule 3b-6 under the Exchange Act, as applicable, (ii) were made by the Company with a reasonable basis and in good faith and reflect
the Company’s good faith commercially reasonable best estimate of the matters described therein, and (iii) have been prepared in
accordance with Item 10 of Regulation S-K under the Securities Act.

 

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

 

(yy)
Industry Data. The statistical and market-related data included in each of the Registration Statement and the Prospectus are based
on or derived from sources that the Company reasonably and in good faith believes are reliable and accurate or represent the Company’s
good faith estimates that are made on the basis of data derived from such sources

 

(zz)
Margin Rules. The Company owns no “margin
securities” as that term is defined in Regulation U of the Board of Governors of the Federal Reserve System (the “Federal
Reserve Board”), and neither the issuance, sale and delivery of the Placement Shares nor the application of the proceeds thereof
by the Company as described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors
of the Federal Reserve System or any other regulation of such Board of Governors.

 

(aaa)
Exchange Act Reports. The Company has filed in a timely manner all reports required to be filed pursuant to Sections 13(a), 13(e),
14 and 15(d) of the Exchange Act during the preceding 12 months.

 

(bbb)
Minute Books. The minute books of the Company have been made available to the Agent and counsel for the Agent, and such books
(i) contain a complete summary of all meetings and actions of the board of directors (including each board committee) and stockholders
of the Company (or analogous governing bodies and interest holders, as applicable), and each of its Subsidiaries since the time of its
respective incorporation or organization through the date of the latest meeting and action, and (ii) accurately in all material respects
reflect all transactions referred to in such minutes. There are no material transactions, agreements, dispositions or other actions of
the Company that are not properly approved and/or accurately and fairly recorded in the minute books of the Company, as applicable.

 

    	14

     

    

 

(ccc)
Integration. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has, directly or indirectly,
made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause the offering
to be integrated with prior offerings by the Company for purposes of the Securities Act that would require the registration of any such
securities under the Securities Act.

 

(ddd)
Insurance. The Company carries or is entitled
to the benefits of insurance, with reputable insurers, in such amounts and covering such risks which the Company believes are adequate,
including, but not limited to, directors and officers insurance coverage at least equal to $5,000,000, and all such insurance is in full
force and effect. The Company has no reason to believe that it will not be able (i) to renew its existing insurance coverage as and when
such policies expire or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its
business as now conducted and at a cost that would not reasonably be expected to result in a Material Adverse Effect.

 

(eee)
No Improper Practices. (i) Neither the Company,
nor to the Company’s knowledge, any of its executive officers has, in the past five years, made any unlawful contributions to any
candidate for any political office (or failed fully to disclose any contribution in violation of law) or made any contribution or other
payment to any official of, or candidate for, any federal, state, municipal, or foreign office or other person charged with similar public
or quasi-public duty in violation of any law or of the character required to be disclosed in the Prospectus; (ii) no relationship, direct
or indirect, exists between or among the Company or, to the Company’s knowledge, any affiliate of the Company, on the one hand,
and the directors, officers and stockholders of the Company, that is required by the Securities Act to be described in the Registration
Statement and the Prospectus that is not so described; (iii) no relationship, direct or indirect, exists between or among the Company,
or, to the Company’s knowledge, any affiliate of the Company, on the one hand, and the directors, officers, stockholders or directors
of the Company that is required by the rules of FINRA to be described in the Registration Statement and the Prospectus that is not so
described; (iv) there are no material outstanding loans or advances or material guarantees of indebtedness by the Company to or for the
benefit of any of its officers or directors or any of the members of the families of any of them; (v) the Company has not offered, or
caused any placement agent to offer, Common Stock to any person with the intent to influence unlawfully (A) a customer or supplier of
the Company to alter the customer’s or supplier’s level or type of business with the Company or (B) a trade journalist or
publication to write or publish favorable information about the Company or any of its products or services, and, (vi) neither the Company
nor, to the Company’s knowledge, any employee or agent of the Company has made any payment of funds of the Company or received
or retained any funds in violation of any law, rule or regulation (including, without limitation, the Foreign Corrupt Practices Act of
1977, which payment, receipt or retention of funds is of a character required to be disclosed in the Registration Statement or the Prospectus).

 

(fff)
Compliance with Applicable Laws.

 

(1)
Compliance with Applicable Laws. The Company (A) is and at all times has been in compliance with all statutes, rules and regulations
applicable to the ownership, testing, development, manufacture, packaging, processing, use, distribution, marketing, labeling, promotion,
sale, offer for sale, storage, import, export or disposal of any product under development, manufactured or distributed by the Company
(“Applicable Laws”), (B) has not received any Form 483 from the FDA (except for the Form 483 dated June 21 2018),
notice of adverse finding, warning letter, or other written correspondence or notice from the FDA or any other federal, state, local
or foreign governmental or regulatory authority alleging or asserting material noncompliance with any Applicable Laws or any licenses,
certificates, approvals, clearances, authorizations, permits and supplements or amendments thereto required by any such Applicable Laws
(“Authorizations”); (C) possesses all required Authorizations and such Authorizations are valid and in full force
and effect and the Company is not in material violation of any term of any such Authorizations; (D) has not received written notice of
any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from the FDA or any other federal,
state, local or foreign governmental or regulatory authority or third party alleging that the Company, or any Company product, operation
or activity is in violation of any Applicable Laws or Authorizations and has no knowledge that the FDA or any other federal, state, local
or foreign governmental or regulatory authority or third party is considering any such claim, litigation, arbitration, action, suit,
investigation or proceeding against the Company; (E) has not received notice that the FDA or any other federal, state, local or foreign
governmental or regulatory authority has taken, is taking or intends to take action to limit, suspend, modify or revoke any Authorizations
and has no knowledge that the FDA or any other federal, state, local or foreign governmental or regulatory authority is considering such
action; and (F) to its knowledge, has filed, obtained, maintained or submitted all reports, documents, forms, notices, applications,
records, claims, submissions and supplements or amendments and paid any regulatory “user fees” as required by any Applicable
Laws or Authorizations except where the failure to file such reports, documents, forms, notices, applications, records, claims, submissions
and supplements or amendments would not reasonably be expected to result in a Material Adverse Effect, and that all such reports, documents,
forms, notices, applications, records, claims, submissions and supplements or amendments were materially complete and correct on the
date filed (or were corrected or supplemented by a subsequent submission);

 

    	15

     

    

 

(2)
Permits. The Company and its Subsidiaries have such permits, licenses, clearances, registrations, exemptions, patents, franchises,
certificates of need and other approvals, consents and other authorizations (“Permits”) issued by the appropriate domestic
or foreign regional, federal, state, or local regulatory agencies or bodies necessary to conduct the business of the Company, as required
by FDA (including without limitation, FDA-cleared premarket notification (510(k), FDA-approved Premarket Application (“PMA”),
FDA-approved CLIA Waiver Application, FDA-approved new drug application (“NDA”), FDA-approved Biologics License Application
(“BLA”), and New Dietary Ingredient Notifications with FDA no-objection letter), the Drug Enforcement Administration (the
“DEA”), or any other Permits issued by domestic or foreign regional, federal, state, or local agencies or bodies engaged
in the regulation of pharmaceuticals such as those being developed by the Company and its Subsidiaries (collectively, the “Regulatory
Permits”), except for any of the foregoing that would not reasonably be expected to, individually or in the aggregate, have a Material
Adverse Effect; the Company is in compliance in all material respects with the requirements of the Regulatory Permits, and all of such
Regulatory Permits are valid and in full force and effect; the Company has not received any notice of proceedings relating to the revocation,
termination, modification or impairment of rights of any of the Regulatory Permits that, individually or in the aggregate, if the subject
of an unfavorable decision, ruling or finding, would reasonably be expected to result in a Material Adverse Effect; the Company has not
failed to submit to the FDA any IND, BLA or NDA necessary to conduct the business of the Company, any such filings that were required
to be made were in material compliance with applicable laws when filed, and no material deficiencies have been asserted by the FDA with
respect to any such filings or submissions that were made; and

 

(3)
Compliance with Health Care Laws. Each of the Company and its Subsidiaries is, and at all times has been, in compliance in all
material respects with all applicable Health Care Laws. For purposes of this Agreement, “Health Care Laws” means: (i) the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. §§ 301 et seq.), the Public Health Service Act (42 U.S.C. §§ 201
et seq.), and the regulations promulgated thereunder; (ii) all applicable federal, state, local and all applicable foreign health care
related fraud and abuse laws, including, without limitation, the U.S. Anti-Kickback Statute (42 U.S.C. Section 1320a-7b(b)), the U.S.
Physician Payment Sunshine Act (42 U.S.C. § 1320a-7h), the U.S. Civil False Claims Act (31 U.S.C. Section 3729 et seq.), the criminal
False Claims Law (42 U.S.C. § 1320a-7b(a)), all criminal laws relating to health care fraud and abuse, including but not limited
to 18 U.S.C. Sections 286 and 287, and the health care fraud criminal provisions under the U.S. Health Insurance Portability and Accountability
Act of 1996 (“HIPAA”) (42 U.S.C. Section 1320d et seq.), the exclusion laws (42 U.S.C. § 1320a-7), the civil monetary
penalties law (42 U.S.C. § 1320a-7a), HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act
(42 U.S.C. Section 17921 et seq.), and the regulations promulgated pursuant to such statutes; (iii) Medicare (Title XVIII of the Social
Security Act); (iv) Medicaid (Title XIX of the Social Security Act); (v) the Controlled Substances Act (21 U.S.C. §§ 801 et
seq.) and the regulations promulgated thereunder; (vi) the Dietary Supplement and Nonprescription Drug Consumer Protection Act (Pub.
L. 109-462, 120 Stat. 3469); (vii) The Clinical Laboratory Improvement Amendments of 1988 (CLIA) (42 U.S.C. 263a et seq.); the Federal
Trade Commission Act (15 U.S.C. §§ 41-58), the Lanham Act (at 15 U.S.C. §1051 et seq.), and all similar or analagous federal,
state, and local laws and regulations governing the advertising and promotion of dietary supplements, over-the-counter drugs, medical
devices, diagnostic tests or services, consumer genetic testing products or services, or any other product or service offered by the
Company and its subsidiaries; and (viii) any and all other applicable health care laws and regulations. Neither the Company nor, to the
knowledge of the Company, any subsidiary has received notice of any claim, action, suit, proceeding, hearing, enforcement, investigation,
arbitration or other action from any court or arbitrator or governmental or regulatory authority or third party alleging that any product
operation or activity is in material violation of any Health Care Laws, and, to the Company’s knowledge, no such claim, action,
suit, proceeding, hearing, enforcement, investigation, arbitration or other action is threatened. Neither the Company nor its Subsidiaries
have engaged in activities which are, as applicable, cause for false claims liability, civil penalties, or mandatory or permissive exclusion
from Medicare, Medicaid, or any other state or federal health care program. Neither the Company nor, to the knowledge of the Company,
any subsidiary is a party to or has any ongoing reporting obligations pursuant to any corporate integrity agreements, deferred prosecution
agreements, monitoring agreements, consent decrees, settlement orders, plans of correction or similar agreements with or imposed by any
governmental or regulatory authority. Additionally, neither the Company, its Subsidiaries nor any of its respective employees, officers
or directors has been excluded, suspended or debarred from participation in any U.S. federal health care program or human clinical research
or, to the knowledge of the Company, is subject to a governmental inquiry, investigation, proceeding, or other similar action that could
reasonably be expected to result in debarment, suspension, or exclusion.

 

    	16

     

    

 

(ggg)
Clinical Studies and Product Claims Substantiation.
All claims made by the Company and its subsidiaries in advertising, labeling, or any other public context or forum, respecting the safety,
efficacy, utility, benefits, risks or lack of risks, conditions of use, and performance of Company Products or services are truthful
and not misleading and are supported by data from clinical trials or other competent and reliable scientific evidence, and such evidence
was in the posession of the Company or its subsidiaries at the time such claims were first disseminated. Clinical trials conducted by
the Company or on behalf of the Company were, and, if still pending are, to the Company’s knowledge, being conducted in all material
respects in compliance with all Applicable Laws and in accordance with experimental protocols, procedures and controls generally used
by qualified experts in the clinical trials of new drugs and biologics as applied to comparable products to those being developed by
the Company; the descriptions of the results of such clinical trials contained in the Registration Statement and the Prospectus are accurate
in all material respects, and the Company has no knowledge of any other clinical trials, the results of which reasonably call into question
the clinical trial results described or referred to in the Registration Statement and the Prospectus when viewed in the context in which
such results are described; and the Company has not received any written notices or correspondence from the FDA or any other domestic
or foreign governmental agency requiring the termination or suspension of any clinical trials conducted by or on behalf of the Company
that are described in the Registration Statement and the Prospectus or the results of which are referred to in the Registration Statement
and the Prospectus.

 

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

 

(iii)
No Misstatement or Omission in an Issuer Free Writing
Prospectus. Each Issuer Free Writing Prospectus, as of its issue date and as of each Applicable Time (as defined in Section 26
below), did not, does not and will not include any information that conflicted, conflicts or will conflict with the information contained
in the Registration Statement or the Prospectus, including any incorporated document deemed to be a part thereof that has not been superseded
or modified. The foregoing sentence does not apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and
in conformity with written information furnished to the Company by the Agent specifically for use therein.

 

(jjj)
No Conflicts. Neither the execution, delivery
and performance of this Agreement, nor the issuance, offering or sale of the Placement Shares, nor the consummation of any of the transactions
contemplated herein and therein, nor the compliance by the Company with the terms and provisions hereof and thereof do not and will not,
with or without the giving of notice or the lapse of time or both (i) conflict with, or will result in a material breach of, any of the
terms and provisions of, or has constituted or will constitute a material default under, or has resulted in or will result in the modification,
termination or imposition of any lien, charge, mortgage, pledge, security interest, claim, equity, trust or other encumbrance, preferential
arrangement, defect or restriction of any kind whatsoever or encumbrance upon any property or assets of the Company pursuant to the terms
of any indenture, mortgage, deed of trust, note, lease, loan agreement or any other agreement or instrument, franchise, license or permit
to which the Company is a party or as to which any property of the Company is a party, except (a) such conflicts, breaches or defaults
as may have been waived and (b) such conflicts, breaches and defaults that would not have a Material Adverse Effect, (ii) result in any
violation of the provisions of the Company’s Certificate of Incorporation (as the same may be amended or restated from time to
time, the “Charter”) or the by-laws of the Company (as the same may be amended or restated from time to time); or (iii) result
in a material violation of any existing applicable law, rule, regulation, judgment, order or decree of any Governmental Entity as of
the date hereof (including, without limitation, those promulgated by the Food and Drug Administration of the U.S. Department of Health
and Human Services (the “FDA”) or by any foreign, federal, state or local regulatory authority performing functions similar
to those performed by the FDA). .

 

    	17

     

    

 

(kkk)
OFAC. None of the Company and its Subsidiaries,
nor, to the Company’s knowledge, any director, officer, agent, employee, affiliate or representative of the Company is a government,
individual or entity (in this paragraph (kkk), “Person”) that is, or is owned or controlled by a Person that is, currently
subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”),
the United Nations Security Council (“UNSC”), the European Union (“EU”), Her Majesty’s Treasury
(“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), nor located, organized
or resident in a country or territory that is the subject of Sanctions; provided however, that for the purposes of this paragraph (kkk),
no person shall be an affiliate of the Company solely by reason of owning less than a majority of any class of voting securities of the
Company. The Company will not directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute
or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing
the activities of any person currently subject to any U.S. sanctions administered by OFAC. The Company represents and covenants that,
except as detailed in the Prospectus, for the past 5 years, the Company has not knowingly engaged in, is not now knowingly engaged in,
and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing
or transaction is or was the subject of Sanctions.

 

(lll)
Foreign Corrupt Practices Act. None of the Company and its Subsidiaries or, to the Company’s knowledge, any director, officer,
agent, employee or affiliate of the Company and its Subsidiaries or any other person acting on behalf of the Company and its Subsidiaries,
has, directly or indirectly, given or agreed to give any money, gift or similar benefit (other than legal price concessions to customers
in the ordinary course of business) to any customer, supplier, employee or agent of a customer or supplier, or official or employee of
any governmental agency or instrumentality of any government (domestic or foreign) or any political party or candidate for office (domestic
or foreign) or other person who was, is, or may be in a position to help or hinder the business of the Company (or assist it in connection
with any actual or proposed transaction) that (i) might subject the Company to any damage or penalty in any civil, criminal or governmental
litigation or proceeding, (ii) if not given in the past, might have had a Material Adverse Effect; (iii) if not continued in the future,
might adversely affect the assets, business, operations or prospects of the Company; (iv) violated or is in violation of any provision
of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”) or any applicable
non-U.S. anti-bribery statute or regulation; (v) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment;
or (vi) received notice of any investigation, proceeding or inquiry by any Governmental Entity regarding any of the matters in clauses
(i)-(v) above; and the Company and, to the knowledge of the Company, the Company’s affiliates have conducted their respective businesses
in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected
to continue to ensure, continued compliance therewith.

 

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

 

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

 

(ooo)
Confidentiality and Non-Competition. To the Company’s knowledge, no director, officer, key employee or consultant of the
Company is subject to any confidentiality, non-disclosure, non-competition agreement or non-solicitation agreement with any employer
or prior employer that could reasonably be expected to materially affect his ability to be and act in his respective capacity of the
Company or reasonably be expected to result in a Material Adverse Effect.

 

    	18

     

    

 

(ppp)
Regulation M Compliance. During the term of this Agreement, the Company has not taken and will not take any action to repurchase
(directly or indirectly) any shares of its Common Stock under its Rule 10b-18 share repurchase plan that would be prohibited by Regulation
M, promulgated under the Exchange Act.

 

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

 

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

 

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

 

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

 

    	19

     

    

 

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

 

(d)
Listing of Placement Shares. During the Prospectus
Delivery Period, the Company will use its commercially reasonable efforts to cause the Placement Shares to be listed on the Exchange
and to qualify the Placement Shares for sale under the securities laws of such jurisdictions as the Agent reasonably designates and to
continue such qualifications in effect so long as required for the distribution of the Placement Shares; provided, however, that the
Company shall not be required in connection therewith to qualify as a foreign corporation or dealer in securities or file a general consent
to service of process in any jurisdiction.

 

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

 

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

 

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

 

(h)
Notice of Other Sales. Without the prior written
consent of the Agent, the Company will not, directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or
otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to this Agreement) or securities convertible
into or exchangeable for Common Stock, warrants or any rights to purchase or acquire, Common Stock during the period beginning on the
date on which any Placement Notice is delivered to the Agent hereunder and ending on the second (2nd) Trading Day immediately
following the final Settlement Date with respect to Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice
has been terminated or suspended prior to the sale of all Placement Shares covered by a Placement Notice, the date of such suspension
or termination); and will not directly or indirectly in any other “at the market” or continuous equity transaction offer
to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered
pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire,
Common Stock prior to the termination of this Agreement; provided, however, that such restrictions will not be required in connection
with the Company’s issuance or sale of (i) Common Stock, restricted stock units, options to purchase Common Stock or Common Stock
issuable upon the exercise of options, pursuant to any employee or director stock option or benefits plan, stock ownership plan or dividend
reinvestment plan (but not Common Stock subject to a waiver to exceed plan limits in its dividend reinvestment plan) of the Company whether
now in effect or hereafter implemented, (ii) Common Stock issuable upon conversion of securities or the exercise of warrants, options
or other rights in effect or outstanding, and disclosed in filings by the Company available on EDGAR or otherwise in writing to the Agent,
and (iii) Common Stock, or securities convertible into or exercisable for Common Stock, offered and sold in a negotiated transaction
to vendors, customers, strategic partners or potential strategic partners, or other investors or as consideration for mergers, acquisitions,
sale or purchase of assets or other business combinations conducted in a manner so as not to be integrated with the offering of Common
Stock hereby.

 

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

 

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

 

(k)
Required Filings Relating to Placement of Placement
Shares. The Company agrees that on such dates as the Securities Act shall require, the Company will (i) file a prospectus supplement
with the Commission under the applicable paragraph of Rule 424(b) under the Securities Act (each and every filing under Rule 424(b),
a “Filing Date”), which prospectus supplement will set forth, within the relevant period, the amount of Placement
Shares sold through the Agent, the Net Proceeds to the Company and the compensation payable by the Company to the Agent with respect
to such Placement Shares (provided that the Company may satisfy its obligations under this Section 7(k)(i) by
making a filing in accordance with the Exchange Act including such information), and (ii) deliver such number of copies of each such
prospectus supplement to each exchange or market on which such sales were effected as may be required by the rules or regulations of
such exchange or market.

 

(l)
Representation Dates; Certificate. On the date
of this Agreement and within five (5) trading days of each time the Company:

 

(i)
files the Prospectus Supplement relating to the Placement
Shares or amends or supplements (other than a prospectus supplement relating solely to an offering of securities other than the Placement
Shares), the Registration Statement or the Prospectus relating to the Placement Shares by means of a post-effective amendment, sticker,
or supplement or Form S-3 filed pursuant to Rule 415(a)(6) but not by means of incorporation of documents by reference into the Registration
Statement or the Prospectus relating to the Placement Shares;

 

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

 

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

 

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

 

the
Company shall furnish the Agent (but in the case of clause (iv) above only if any Agent reasonably determines that the information contained
in such Form 8-K is material) with a certificate, in the form attached hereto as Exhibit 7(l) (the “Representation Date Certificate”);
provided however, if no Placement Notice is pending at such Representation Date, then before the Company delivers a Placement Notice
or an Agent sells any Placement Shares, the Company shall provide the Agents with a Representation Date Certificate. The requirement
to provide a Representation Date Certificate shall be waived for any Representation Date occurring at a time at which no Placement Notice
is pending, which waiver shall continue until the earlier to occur of the date the Company delivers a Placement Notice hereunder (which
for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date; provided, however, that
such waiver shall not apply for any Representation Date on which the Company files its annual report on Form 10-K or a Form S-3 filed
pursuant to Rule 415(a)(6). Notwithstanding the foregoing, (i) in the case of the first Placement Notice following the date of this Agreement
but prior to the filing of the Company’s annual report on Form 10-K for the year ended December 31, 2021 (the “First Placement
Notice”), or (ii) if the Company subsequently decides to sell Placement Shares following a Representation Date when the Company
relied on such waiver and did not provide the Agent with a Representation Date Certificate, then before the Company delivers the Placement
Notice or the Agent sells any Placement Shares, the Company shall provide the Agent with a Representation Date Certificate, dated the
date of the Placement Notice.

 

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(m)
Legal Opinion. On the date of this Agreement,
the Company shall cause to be furnished to the Agent a written opinion and negative assurance letter of Reed Smith LLP (“Company
Counsel”), or other counsel satisfactory to the Agent, in form and substance satisfactory to each Agent and its respective
counsel. Thereafter, within five (5) Trading Days of each Representation Date with respect to which the Company is obligated to deliver
a Representation Date Certificate for which no waiver is applicable, the Company shall cause to be furnished to the Agent a negative
assurance letter of Company Counsel in form and substance satisfactory to the Agent and its counsel; provided however, that if no placement
notice is pending at such Representation Date, then before the Company delivers a Placement Notice or an Agent sells any Placement Shares,
the Company shall provide the Agent with such negative assurance letter; provided, further, that in lieu of such negative assurance letter
for subsequent periodic filings under the Exchange Act, counsel may furnish the Agent with a letter (a “Reliance Letter”)
to the effect that the Agent may rely on a prior negative assurance letter delivered under this Section 7(m) to the same extent as if
it were dated the date of such letter (except that statements in such prior negative assurance letter shall be deemed to relate to the
Registration Statement and the Prospectus as amended or supplemented as of the date of the Reliance Letter).

 

(n)
Comfort Letters. (1) On the date of this Agreement
and (2) within five (5) Trading Days of each Representation Date, with respect to which the Company is obligated to deliver a certificate
in the form attached hereto as Exhibit 7(l) for which no waiver is applicable (other than a Representation Date under Section 7(l)(iii)),
the Company shall cause its Accountants to furnish the Agent letters (the “Comfort Letters”), dated the date the Comfort
Letter is delivered, which shall meet the requirements set forth in this Section 7(n); provided however, that if no placement notice
is pending at such Representation Date, then before the Company delivers a Placement Notice or an Agent sells any Placement Shares, the
Company shall provide the Agent with the Comfort Letters; provided, further, that if requested by the Agent, the Company shall cause
the Comfort Letters to be furnished to the Agent within ten (10) Trading Days of the date of occurrence of any material transaction or
event, including the restatement of the Company’s financial statements. The Comfort Letters from the Company’s Accountants
shall be in a form and substance satisfactory to the Agent, (i) confirming that they are an independent public accounting firm within
the meaning of the Securities Act and the Public Company Accounting Oversight Board (the “PCAOB”), (ii) stating, as
of such date, the conclusions and findings of such firm with respect to the financial information and other matters ordinarily covered
by accountants’ “comfort letters” to underwriters in connection with registered public offerings (the first such letters,
the “Initial Comfort Letters”) and (iii) updating the Initial Comfort Letters with any information that would have
been included in the Initial Comfort Letters had they been given on such date and modified as necessary to relate to the Registration
Statement and the Prospectus, as amended and supplemented to the date of such letters.

 

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

 

(p)
Investment Company Act. The Company will conduct
its affairs in such a manner so as to reasonably ensure that it will not become, at any time prior to the termination of this Agreement,
an “investment company,” as such term is defined in the Investment Company Act.

 

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

 

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

 

8.
Payment of Expenses. The Company will be responsible
for and pay all expenses incident to the performance of its obligations under this Agreement upon the filing of the Prospectus Supplement,
including (i) the preparation, filing, including any fees required by the Commission, and printing of the Registration Statement (including
financial statements and exhibits) as originally filed and of each amendment and supplement thereto, in such number as the Agent shall
deem necessary, (ii) the printing and delivery to the Agent of this Agreement and such other documents as may be required in connection
with the offering, purchase, sale, issuance or delivery of the Placement Shares, (iii) the preparation, issuance and delivery of the
certificates, if any, for the Placement Shares to the Agent, including any stock or other transfer taxes and any capital duties, stamp
duties or other duties or taxes payable upon the sale, issuance or delivery of the Placement Shares to the Agent, (iv) the fees and disbursements
of the counsel, accountants and other advisors to the Company, (v) the actual out-of-pocket accountable expenses of the Agent up to $60,000
(of which a $25,000 advance was paid on December 7, 2021), which amount shall include the fees and expenses of legal counsel to the Agent
up to $50,000, (vi) the printing and delivery to the Agent of copies of any Permitted Issuer Free Writing Prospectus (defined below)
and the Prospectus and any amendments or supplements thereto in such number as the Agent shall deem necessary, (vii) the preparation,
printing and delivery to the Agent of copies of the blue sky survey and any Canadian “wrapper” and any supplements thereto,
in such number as the Agent shall deem necessary, (viii) the fees and expenses of the transfer agent and registrar for the Common Stock,
(ix) the fees and expenses incident to any review by FINRA of the terms of the sale of the Placement Shares as referenced in (v) above,
(x) the fees and expenses incurred in connection with the listing of the Placement Shares on the Exchange and (xi) the costs associated
with bound volumes of the public offering materials as well as commemorative mementos and lucite tombstones, each of which the Company
or its designee will provide within a reasonable time after the closing of any Placement in such quantities as ThinkEquity may reasonably
request, in an amount not to exceed $3,000.

 

9.
Conditions to Agent’s Obligations. The
obligations of the Agent hereunder with respect to a Placement will be subject to the continuing accuracy and completeness of the representations
and warranties made by the Company herein, to the due performance by the Company of its obligations hereunder, to the completion by the
Agent of a due diligence review satisfactory in its reasonable judgment, and to the continuing satisfaction (or waiver by the Agent in
their sole discretion) of the following additional conditions:

 

(a)
Registration Statement Effective. The Registration
Statement shall have become effective and shall be available for the sale of all Placement Shares contemplated to be issued by any Placement
Notice.

 

    	23

     

    

 

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

 

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

 

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

 

(e)
Legal Opinion. The Agent shall have received
the opinion and/or negative assurance of Company Counsel required to be delivered pursuant Section 7(m) on or before the date on which
delivery of such opinion and/or negative assurance is required pursuant to Section 7(m).

 

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

 

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

 

(h)
Secretary’s Certificate. On the date of
this Agreement, the Agent shall have received a certificate, signed on behalf of the Company by its corporate Secretary, in form and
substance satisfactory to the Agent and its counsel.

 

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

 

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

 

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

 

(l)
Approval for Listing. The Placement Shares shall
either have been approved for listing quotation on the Exchange, subject only to notice of issuance, or the Company shall have filed
an application for listing quotation of the Placement Shares on the Exchange at, or prior to, the issuance of any Placement Notice.

 

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

 

10.
Indemnification and Contribution.

 

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

 

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

 

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

 

(iii)
against any and all expense whatsoever, as incurred
(including the fees and disbursements of counsel), reasonably incurred in investigating, preparing or defending against any litigation,
or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid
under (i) or (ii) above, provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made solely in
reliance upon and in conformity with written information furnished to the Company by the Agent expressly for use in the Registration
Statement (or any amendment thereto), or in any related Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement
thereto).

 

(b)
Indemnification by the Agent. Agent agrees to
indemnify and hold harmless the Company and its directors and each officer of the Company who signed the Registration Statement, and
each person, if any, who (i) controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act or (ii) is controlled by or is under common control with the Company against any and all loss, liability, claim, damage and expense
described in the indemnity contained in Section 10(a), as incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Registration Statement (or any amendments thereto) or the Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with information relating to such Agent and furnished to the Company in writing
by the Agent expressly for use therein.

 

    	25

     

    

 

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

 

    	26

     

    

 

(d)
Contribution. In order to provide for just and
equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this Section 10 is applicable
in accordance with its terms but for any reason is held to be unavailable from the Company or the Agent, the Company and the Agent will
contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably
incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, but after deducting
any contribution received by the Company from persons other than the Agent, such as persons who control the Company within the meaning
of the Securities Act, officers of the Company who signed the Registration Statement and directors of the Company, who also may be liable
for contribution) to which the Company and the Agent may be subject in such proportion as shall be appropriate to reflect the relative
benefits received by the Company on the one hand and the Agent on the other hand. The relative benefits received by the Company on the
one hand and the Agent on the other hand shall be deemed to be in the same proportion as the total net proceeds from the sale of the
Placement Shares (before deducting expenses) received by the Company bear to the total compensation received by the Agent (before deducting
expenses) from the sale of Placement Shares on behalf of the Company. If, but only if, the allocation provided by the foregoing sentence
is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not
only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand, and such
Agent, on the other hand, with respect to the statements or omission that resulted in such loss, claim, liability, expense or damage,
or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering. Such relative fault
shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by the Company or the Agent, the intent of the parties and
their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the
Agent each agree that it would not be just and equitable if contributions pursuant to this Section 10(d) were to be determined by pro
rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to herein.
The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense, or damage, or action in respect
thereof, referred to above in this Section 10(d) shall be deemed to include, for the purpose of this Section 10(d), any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim to the
extent consistent with Section 10(c) hereof. Notwithstanding the foregoing provisions of this Section 10(d), an Agent shall not be required
to contribute any amount in excess of the commissions received by it under this Agreement and no person found guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 10(d), any person who controls a party to this Agreement within the meaning
of the Securities Act, and any officers, directors, partners, employees or agent of the Agent, will have the same rights to contribution
as that party, and each officer of the Company who signed the Registration Statement will have the same rights to contribution as the
Company, subject in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement
of any action against such party in respect of which a claim for contribution may be made under this Section 10(d), will notify any such
party or parties from whom contribution may be sought, but the omission to so notify will not relieve that party or parties from whom
contribution may be sought from any other obligation it or they may have under this Section 10(d) except to the extent that the failure
to so notify such other party materially prejudiced the substantive rights or defenses of the party from whom contribution is sought.
Except for a settlement entered into pursuant to the last sentence of Section 10(c) hereof, no party will be liable for contribution
with respect to any action or claim settled without its written consent if such consent is required pursuant to Section 10(c) hereof.

 

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11.
Additional Covenants.

 

(a)
Representations and Covenants of Agent. The Agent
represents and warrants that it is duly registered as a broker-dealer under FINRA, the Exchange Act and the applicable statutes and regulations
of each state in which the Placement Shares will be offered and sold, except such states in which the Agent is exempt from registration
or such registration is not otherwise required. The Agent shall continue, for the term of this Agreement, to be duly registered as a
broker-dealer under FINRA, the Exchange Act and the applicable statutes and regulations of each state in which the Placement Shares will
be offered and sold, except such states in which the Agent is exempt from registration or such registration is not otherwise required,
during the term of this Agreement. The Agent shall comply with all applicable law and regulations in connection with the transactions
contemplated by this Agreement, including the issuance and sale through the Agent of the Placement Shares.

 

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

 

(c)
No Public Announcements. None of the parties hereto shall, without the approval of the other parties (which may not be unreasonably
withheld, conditioned, or delayed), make any press release or other public announcement concerning the transactions contemplated by this
Agreement, except as and to the extent that such party shall be so obligated by applicable law or regulation, in which case the other
parties shall be advised and all parties shall use their best efforts to cause a mutually agreeable release or announcement to be issued.

 

12.
Termination.

 

(a)
The Agent may terminate this Agreement with respective
to itself, by notice to the Company, as hereinafter specified at any time (1) if there has been, since the time of execution of this
Agreement or since the date as of which information is given in the Prospectus, any Material Adverse Effect, or any development that
is reasonably likely to have a Material Adverse Effect or, in the sole judgment of such Agent, is material and adverse and makes it impractical
or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (2) if there has occurred
any material adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities
or escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international
political, financial or economic conditions, in each case the effect of which is such as to make it, in the judgment of such Agent, impracticable
or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (3) if trading in the Common
Stock has been suspended or limited by the Commission or the Exchange, or if trading generally on the Exchange has been suspended or
limited, or minimum prices for trading have been fixed on the Exchange, (4) if any suspension of trading of any securities of the Company
on any exchange or in the over-the-counter market shall have occurred and be continuing, (5) if a major disruption of securities settlements
or clearance services in the United States shall have occurred and be continuing, or (6) if a banking moratorium has been declared by
either U.S. Federal or New York authorities. Any such termination shall be without liability of any party to any other party except that
the provisions of Section 8 (Expenses), Section 10 (Indemnification), Section 11 (Survival of Representations), Section 17 (Governing
Law and Time; Waiver of Jury Trial) and Section 18 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding
such termination. If an Agent elects to terminate this Agreement as provided in this Section 12(a), such Agent shall provide the required
notice as specified in Section 13 (Notices).

 

    	28

     

    

 

(b)
The Company shall have the right, by giving five (5)
days’ written notice as hereinafter specified, to terminate this Agreement as to the Agent in its sole discretion at any time after
the date of this Agreement. Any such termination shall be without liability of any party to any other party except that the provisions
of Section 8, Section 10, Section 11, Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.

 

(c)
The Agent shall have the right, by giving five (5) days’
written notice as hereinafter specified, to terminate this Agreement as to itself in its sole discretion at any time after the date of
this Agreement. Any such termination shall be without liability of any party to any other party except that the provisions of Section
8, Section 10, Section 11, Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.

 

(d)
Unless earlier terminated pursuant to this Section 12,
this Agreement shall automatically terminate upon the issuance and sale of all of the Placement Shares through the Agent on the terms
and subject to the conditions set forth herein; provided that the provisions of Section 8, Section 10, Section 11, Section 17 and Section
18 hereof shall remain in full force and effect notwithstanding such termination.

 

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

 

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

 

(g)
Subject to the additional limitations set forth in Section
8 of this Agreement, in the event of termination of this Agreement prior to the sale of any Placement Shares, the Agent shall be entitled
only to reimbursement of their respective out-of-pocket expenses actually incurred.

 

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

 

If
to ThinkEquity to:

 

ThinkEquity
LLC

17
State Street, 22nd Floor

New
York, NY 10004

Attn:
Eric Lord

Email:
notices@think-equity.com

 

    	29

     

    

 

With
a copy to:

 

Loeb & Loeb LLP

345
Park Avenue

New
York, NY 10154

Attn:
Janeane R. Ferrari

E-mail:
jferrari@loeb.com

 

and
if to the Company, shall be delivered to:

 

ProPhase
Labs, Inc.

711
Stewart Ave, Suite200

Garden
City, NY 11530

Attention:
Ted Karkus, CEO

Facsimile:
(215) 345-5920

Email: Karkus@prophaselabs.com

 

With
a copy to:

 

Reed
Smith, LLP

599
Lexington Avenue, 22nd Floor

New
York, New York 10022

Attention:
Herbert F. Kozlov, Esq. and Wendy Grasso, Esq.

Facsimile:
(212) 521-5450

Email:
hkozlov@reedsmith.com and wgrasso@reedsmith.com

 

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

 

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

 

14.
Successors and Assigns. This Agreement shall
inure to the benefit of and be binding upon the Company and the Agent and their respective successors and the affiliates, controlling
persons, officers and directors referred to in Section 10 hereof. References to any of the parties contained in this Agreement shall
be deemed to include the successors and permitted assigns of such party. Nothing in this Agreement, express or implied, is intended to
confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations
or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. Neither the Company nor the Agent
may assign its rights or obligations under this Agreement without the prior written consent of the other party; provided, however, that
the Agent may assign its rights and obligations hereunder to an affiliate thereof without obtaining the Company’s consent.

 

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

 

    	30

     

    

 

16.
Entire Agreement; Amendment; Severability. This
Agreement (including all schedules and exhibits attached hereto and Placement Notices issued pursuant hereto), constitutes the entire
agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto
with regard to the subject matter hereof, except as set forth below. Neither this Agreement nor any term hereof may be amended except
pursuant to a written instrument executed by the Company and each Agent. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent
jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable,
and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision
was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof
shall be in accordance with the intent of the parties as reflected in this Agreement. Notwithstanding this Section 16 or any other provision
contained herein, the provisions of the Engagement Letter dated as of December 7, 2021 between the Company and ThinkEquity, shall not
be modified or superseded, and shall remain effective in all respects as originally agreed to by the parties thereto.

 

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

 

18.
CONSENT TO JURISDICTION. EACH PARTY HEREBY
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN,
FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES,
AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH
COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING
IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT,
ACTION OR PROCEEDING BY MAILING A COPY THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS
IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS
AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY
LAW.

 

19.
Use of Information. The Agent may not use any
information gained in connection with this Agreement and the transactions contemplated by this Agreement, including due diligence, to
advise any party with respect to transactions not expressly approved by the Company.

 

20.
Counterparts. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
Delivery of an executed Agreement by one party to the other may be made by facsimile transmission.

 

21.
Effect of Headings. The section and Exhibit headings
herein are for convenience only and shall not affect the construction hereof.

 

22.
Permitted Free Writing Prospectuses. The Company
represents, warrants and agrees that, unless it obtains the prior consent of the Agent, and the Agent represents, warrants and agrees
that, unless it obtains the prior consent of the Company, it has not made and will not make any offer relating to the Placement Shares
that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus,”
as defined in Rule 405, required to be filed with the Commission. Any such free writing prospectus consented to by the Agent or by the
Company, as the case may be, is hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company represents
and warrants that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer free writing
prospectus,” as defined in Rule 433, and has complied and will comply with the requirements of Rule 433 applicable to any Permitted
Free Writing Prospectus, including timely filing with the Commission where required, legending and record keeping.

 

    	31

     

    

 

23.
Absence of Fiduciary Relationship. The Company
acknowledges and agrees that:

 

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

 

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

 

(c)
the Agent has not provided any legal, accounting, regulatory
or tax advice with respect to the transactions contemplated by this Agreement and it has consulted its own legal, accounting, regulatory
and tax advisors to the extent it has deemed appropriate;

 

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

 

(e)
it waives, to the fullest extent permitted by law, any
claims it may have against the Agent for breach of fiduciary duty or alleged breach of fiduciary duty in connection with the sale of
Placement Shares under this Agreement and agrees that the Agent shall not have any liability (whether direct or indirect, in contract,
tort or otherwise) to it in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on its behalf or
in right of it or the Company, employees or creditors of Company, other than in respect of the Agent’s obligations under this Agreement
and to keep information provided by the Company to each Agent and its respective counsel confidential to the extent not otherwise publicly-available.

 

24.
Press Releases. Commencing on the date hereof and continuing for a period of forty (40) days from the date of this Agreement,
the Company agrees that it will not issue any press release or other communication directly or indirectly or hold any press conference
with respect to this Agreement or the Placement Shares to be sold hereunder, without the prior written consent of the Agent, which consent
shall not be unreasonably withheld, unless in the judgment of the Company and its counsel, and after notification to the Representative,
such press release or communication is required by law.

 

25.
Right of First Refusal. For a period of twelve (12) months from the date this Agreement, the Company hereby grants the Agent an
irrevocable right of first refusal (the “Right of First Refusal”), to act as sole and exclusive investment banker, sole and
exclusive book-runner, sole and exclusive underwriter and/or sole and exclusive placement agent, at the Agent’s sole and exclusive
discretion, for each and every future public and private equity and debt offering, including all equity linked financings (each, a “Subject
Transaction”), during such twelve (12) month period, for the Company, or any successor to or subsidiary of the Company, on terms
and conditions customary to the Agent for such Subject Transactions. For the avoidance of any doubt, the Company shall not retain, engage
or solicit any additional investment banker, book-runner, underwriter and/or placement agent in a Subject Transaction during such twelve
(12) months period without the express written consent of the Agent. The Company shall notify the Agent of its intention to pursue a
Subject Transaction, including the material terms thereof, by providing written notice thereof by registered mail or overnight courier
service addressed to the Agent. If the Agent fails to exercise its Right of First Refusal with respect to any Subject Transaction within
ten (10) Business Days after the mailing of such written notice, then the Agent shall have no further claim or right with respect to
the Subject Transaction. The Agent may elect, in its sole and absolute discretion, not to exercise its Right of First Refusal with respect
to any Subject Transaction; provided that any such election by the Agent shall not adversely affect the Agent’s Right of First
Refusal with respect to any other Subject Transaction during the twelve (12) month period agreed to above.

 

    	32

     

    

 

26.
Definitions. As used in this Agreement, the following
terms have the respective meanings set forth below:

 

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

 

“Business
Day” shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.

 

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

 

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

 

“Trading
Day” means any day on which shares of Common Stock are purchased and sold on the Exchange.

 

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

 

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

 

    	33

     

    

 

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

 

	 	Very
    truly yours,
	 	 	 
	 	PROPHASE
    LABS, INC. 
	 	 	 
	 	By:
    	/s/
    Ted Karkus
	 	Name:
    	Ted
    Karkus
	 	Title:
    	Chief Executive Officer
	 	 	 
	 	ACCEPTED
    as of the date first-above written: 
	 	 	 
	 	THINKEQUITY
    LLC 
	 	 	 
	 	By:	/s/
    Eric Lord
	 	Name:	Eric Lord
	 	Title:	Head
    of Investment Banking

 

    	34

     

    

 

SCHEDULE
1

 

FORM
OF PLACEMENT NOTICE

 

From:
PROPHASE LABS, INC.

 

To:
THINKEQUITY LLC

 

Attention:
_____________________

 

Subject:
Placement Notice

 

Date:

 

Gentlemen:

 

Pursuant
to the terms and subject to the conditions contained in the Sales Agreement between ProPhase Labs, Inc. (the “Company”) and
ThinkEquity LLC (“ThinkEquity”), dated December 28, 2021, the Company hereby requests that ThinkEquity sell
up to ____________ of the Company’s Common Stock, $0.0005 par value per share, at a minimum market price of $_______ per share,
during the time period beginning [month, day, time] and ending [month, day, time] [and with no more than ________ Placement Shares sold
in any one Trading Day].”

 

[The
Company may include such other sale parameters as it deems appropriate.]

 

Capitalized
terms used and not defined herein shall have the respective meanings assigned to them in the Sales Agreement.

 

    	35

     

    

 

SCHEDULE
2

 

Compensation

 

The
Company shall pay to the Agent in cash, upon each sale of Placement Shares pursuant to this Agreement, an amount equal to 2.0% of the
gross proceeds from each sale of Placement Shares through the Agent.

 

    	36

     

    

 

SCHEDULE
3

 

Notice
Parties

 

The
Company

 

Ted
Karkus

 

Monica
Brady

 

ThinkEquity

 

Eric Lord

 

With
a copy to DealTeam@think-equity.com and Notices@think-equity.com]

 

    	37

     

    

 

SCHEDULE
6(G)

 

Pharmaloz
Manufacturing Inc. (Delaware)

Phusion
Labs, Inc. (Delaware)

ProPhase
Diagnostics, Inc. (Delaware)

ProPhase
Diagnostics NJ, Inc. (New York)

ProPhase
Diagnostics NY, Inc. (Delaware)

Quigley
Pharma Inc. (Delaware)

TK
Supplements, Inc. (Delaware)

ProPhase
Bio, Inc. (Delaware)

ProPhase
Precision Medicine (Delaware)

ProPhase
Global Healthcare (Delaware)

 

    	38

     

    

 

EXHIBIT
7(m)

 

Form
of Representation Date Certificate

____________________,
20__

 

This
Representation Date Certificate (this “Certificate”) is executed and delivered in connection with Section 7(l) of the Sales
Agreement (the “Agreement”), dated [•], 2021, and entered into between ProPhase Labs, Inc. (the “Company”)
and ThinkEquity LLC. All capitalized terms used but not defined herein shall have the meanings given to such terms in the Agreement

 

The
undersigned, a duly appointed and authorized officer of the Company, having made all necessary inquiries to establish the accuracy of
the statements below and having been authorized by the Company to execute this certificate, hereby certifies as follows:

 

	 	1.	As
    of the date of this Certificate, (i) the Registration Statement does not contain any untrue statement of a material fact or omit
    to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading and (ii)
    neither the Registration Statement nor the Prospectus contain any untrue statement of a material fact or omit to state a material
    fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
    they were made, not misleading and (iii) no event has occurred as a result of which it is necessary to amend or supplement the Prospectus
    in order to make the statements therein not untrue or misleading.

 

	 	2.	Each
    of the representations and warranties of the Company contained in the Agreement were, when originally made, and are, as of the date
    of this Certificate, true and correct in all material respects.

 

	 	3.	Each
    of the covenants required to be performed by the Company in the Agreement on or prior to the date of the Agreement, this Representation
    Date, and each such other date as set forth in the Agreement, has been duly, timely and fully performed in all material respects
    and each condition required to be complied with by the Company on or prior to the date of the Agreement, this Representation Date,
    and each such other date as set forth in the Agreement or in the Waivers has been duly, timely and fully complied with in all material
    respects.

 

	 	4.	Subsequent
    to the date of the most recent financial statements in the Prospectus, there has been no Material Adverse Effect.

 

	 	5.	No
    stop order suspending the effectiveness of the Registration Statement or of any part thereof has been issued, and no proceedings
    for that purpose have been instituted or are pending or threatened by any securities or other governmental authority (including,
    without limitation, the Commission).

 

    	39

     

    

 

The
undersigned has executed this Representation Date Certificate as of the date first written above.

 

	 	PROPHASE
    LABS, INC.
	 	 
	 	By:	       
	 	Name:
	 	Title:

 

    	40

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