Document:

Law Office Thomas J. Beener

2244 Parady Avenue

Carlsbad, California 92008

Office:  760-603-1238; Cell:  760-715-0726

 

Tom.beener.law@gmail.com 

www.lawofficechomasjbeener.co1n

 

October 10, 2017

 

Magellan Gold Corporation 

Pierce Carson, CEO

2010A Harbison Drive Suite 312

Vacaville, California 95687

 

RE: Bright Star International, Inc. 

 

Mr. Carson:

 

Please accept this letter as confirmation of the understanding between Magellan Gold Corporation (MAGE) and Bright Star International, Inc. (BSI) that the consulting agreement dated on or about May 2017 and the Advertising Agreement dated on or about September 25, 2017 are hereby declared and rendered null and void by agreement of MAGE and BSI.

 

Further the 1,500,000 shares of common stock of MAGE issued to BSI pursuant to the Advertising Agreement shall be returned to MAGE for cancellation or return to treasury at the option of MAGE.

 

In addition, MAGE agrees to file an 8-K to disclose cancellation of the two above mentioned agreements and at the appropriate time will negotiate in good faith a finder agreement regarding compensation to BSI in connection with any fund-raising activities that are completed for the benefit of MAGE.

 

Thank You

 

/s/ Tom Beener

 

Magellan Gold Corporation

 

/s/ Pierce Carson

Pierce Carson, CEO

 

Bright Star International, Inc.

 

/s/ Kevin Dills

Kevin Dills, CEO

.Exhibit 10.1

Execution
Version

 

PURCHASE AGREEMENT

 

PURCHASE AGREEMENT
(the “Agreement”), dated as of October 10, 2017, by and between AURIS MEDICAL HOLDING AG, a company established
in Switzerland (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company
(the “Investor”).

 

WHEREAS:

 

Subject to the terms
and conditions set forth in this Agreement, the Company wishes to issue to the Investor, and the Investor wishes to subscribe for,
1,744,186 of the Company's common shares, nominal value CHF 0.40 per share (the “Common Shares”), for a total
purchase price of One Million Five Hundred Thousand Dollars ($1,500,000). The Common Shares to be issued and sold to the Investor
hereunder are referred to herein as the “Purchase Shares.”

 

The offer, issuance
and sale of the Purchase Shares under this Agreement is being made pursuant to the Company’s effective shelf registration
statement on Form F-3 (Commission File No. 333-217305).

 

NOW THEREFORE, in
consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1.       CERTAIN
DEFINITIONS. 

 

For purposes of this
Agreement, the following terms shall have the following meanings:

 

(a)       “Bankruptcy
Law” means Title 11, U.S. Code, or any similar U.S. federal or state law or Swiss law for the relief of debtors.

 

(b)       “Base
Prospectus” means the Company’s final base prospectus, dated April 24, 2017, a preliminary form of which is included
in the Registration Statement, including the documents incorporated by reference therein.

 

(c)       “Business
Day” means any day on which commercial banks in Berne, Switzerland and Basel, Switzerland are open for regular business
and the Principal Market is open for trading, including any day on which the Principal Market is open for trading for a period
of time less than the customary time.

 

(d)       “Confidential
Information” means any information disclosed by either party to the other party, either directly or indirectly, in writing,
orally or by inspection of tangible objects (including, without limitation, documents, prototypes, samples, plant and equipment),
which is designated as "Confidential," "Proprietary" or some similar designation. Information communicated
orally shall be considered Confidential Information if such information is confirmed in writing as being Confidential Information
within ten (10) Business Days after the initial disclosure. Confidential Information shall not, however, include any information
which (i) was publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing
party; (ii) becomes publicly known and made generally available after disclosure by the disclosing party to the receiving party
through no action or inaction of the receiving party; (iii) is already in the possession of the receiving party at the time of
disclosure by the disclosing party as shown by the receiving party’s files and records immediately prior to the time of disclosure;
(iv) is obtained by the receiving party from a third party without a breach of such

 

     

     

    

third
party’s obligations of confidentiality; (v) is independently developed by the receiving party without use of or reference
to the disclosing party’s Confidential Information, as shown by documents and other competent evidence in the receiving
party’s possession; or (vi) is required by law to be disclosed by the receiving party, provided that the receiving party
gives the disclosing party prompt written notice of such requirement prior to such disclosure and assistance in obtaining an order
protecting the information from public disclosure.

 

(e)       “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(f)        “DTC”
means The Depository Trust Company, or any successor performing substantially the same function for the Company.

 

(g)       “DWAC
Shares” means Common Shares that are (i) issued in electronic form, (ii) freely tradable and transferable and without
restriction on resale (subject to any applicable restrictions set forth in the articles of association of the Company) and (iii)
timely credited by the Company to the Investor’s or its designee’s specified Deposit/Withdrawal at Custodian (DWAC)
account with DTC under its Fast Automated Securities Transfer (FAST) Program or any similar program hereafter adopted by DTC performing
substantially the same function.

 

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

 

(i)       “Exchange
Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Agreement, the
U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation.

 

(j)       “Initial
Prospectus Supplement” means the prospectus supplement of the Company dated October 10, 2017 relating to the Purchase
Shares, including the accompanying Base Prospectus, to be prepared and filed by the Company with the SEC pursuant to Rule 424(b)(5)
under the Securities Act and in accordance with Section 5(a) hereof, together with all documents and information incorporated therein
by reference.

 

(k)       “Material
Adverse Effect” means any material adverse effect on (i) the enforceability of any Transaction Document, (ii) the
condition (financial or other), earnings, business, properties, operations, assets, liabilities or prospects of the Company and
its Subsidiaries, considered as one entity, or (iii) the Company’s ability to perform in any material respect on a timely
basis its obligations under any Transaction Document to be performed as of the date of determination.

 

(l)       “Person”
means an individual or entity including but not limited to any limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization and a government or any department or agency thereof.

 

(m)       “Principal
Market” means The NASDAQ Capital Market (or any nationally recognized successor thereto); provided, however,
that in the event the Common Shares are ever listed or traded on The NASDAQ Global Market, The NASDAQ Global Select Market, the
New York Stock Exchange, the NYSE American, the NYSE Arca or the OTC Bulletin Board (it being understood that as used herein “OTC
Bulletin Board” shall also mean any successor or comparable market quotation system or exchange to the OTC Bulletin Board
such as the OTCQX and OTCQB operated by the OTC Markets Group, Inc.),

 

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then
the “Principal Market” shall mean such other market or exchange on which the Common Shares are then listed or traded
or any successor thereto.

 

(n)       “Prospectus”
means the Base Prospectus, as supplemented by any Prospectus Supplement (including the Initial Prospectus Supplement), including
the documents and information incorporated by reference therein.

 

(o)       “Prospectus
Supplement” means any prospectus supplement to the Base Prospectus (including the Initial Prospectus Supplement) filed
with the SEC pursuant to Rule 424(b) under the Securities Act in connection with the transactions contemplated by this Agreement,
including the documents and information incorporated by reference therein.

 

(p)       “Registration
Statement” means the effective registration statement on Form F-3 (Commission File No. 333-217305) filed by the
Company with the SEC pursuant to the Securities Act for the registration of its Common Shares, including the Purchase Shares, and
certain other securities, as such Registration Statement has been or may be amended and supplemented from time to time, including
all documents and information filed as part thereof or incorporated by reference therein, and including all information deemed
to be a part thereof at the time of effectiveness pursuant to Rule 430B of the Securities Act, including any comparable successor
registration statement filed by the Company with the SEC pursuant to the Securities Act for the registration of its Common Shares,
including the Purchase Shares.

 

(q)       “SEC”
means the U.S. Securities and Exchange Commission.

 

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

 

(s)       “Subsidiary”
means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the voting
stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated
under the Securities Act.

 

(t)       “Transaction
Documents” means, collectively, this Agreement and the schedules and exhibits hereto, and each of the other documents,
certificates and instruments entered into or furnished by the parties hereto in connection with the transactions contemplated hereby.

 

(u) “Transfer Agent”
means American Stock Transfer & Trust Company, LLC, or such other Person who is then serving as the transfer agent for the
Company in respect of the Common Shares.

 

2. SUBSCRIPTION AND ISSUANCE OF PURCHASE
SHARES. 

 

Upon the terms and
subject to the conditions set forth in this Agreement, the Company desires to issue to the Investor, and the Investor desires to
subscribe for, the Purchase Shares, as follows:

 

(a)       Purchase
Shares; Closing Date. On the basis of the representations, warranties and agreements herein contained, and upon the terms but
subject to the conditions herein set forth, the Investor agrees to subscribe for, and the Company agrees to issue to the Investor,
an aggregate of 1,744,186 Purchase Shares. The total aggregate price per Purchase Share (including the Issue Price as defined herein)
to be paid by the Investor to the Company shall be $0.86, and the total aggregate price for

 

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all
1,744,186 Purchase Shares to be paid by the Investor to the Company (including the total aggregate Issue Price for all such Purchase
Shares) shall be $1,500,000 (such total aggregate price, including the total aggregate Issue Price, to be paid by the Investor
to the Company hereunder for all such Purchase Shares is herein referred to as the “Purchase Price”). Delivery
of the Purchase Shares to the Investor hereunder (the “Closing”) shall occur at the offices of Mintz, Levin,
Cohn, Ferris, Glovsky and Popeo, P.C. (or such other place as may be agreed to by the Company and the Investor), at 10:00 a.m.,
Eastern time, on October 16, 2017, or on such other Business Day on or prior to which all of the conditions to the Closing set
forth in this Agreement have been satisfied or, where legally permissible, waived, and as is mutually agreed to by the Company
and the Investor (the date of the Closing, the “Closing Date”).

 

(b)        Payment
for Purchase Shares. On the Closing Date, the Company shall deliver, or cause to be delivered to the Investor, upon the registration
of the Capital Increase in the Commercial Register of the Canton of Zug pursuant to Section 2(f), all of the Purchase Shares as
DWAC Shares. The Purchase Shares shall be registered in such names and denominations as the Investor shall have requested at least
two (2) full Business Days prior to the Closing Date. Time shall be of the essence, and delivery of the Purchase Shares to the
Investor as DWAC Shares at the Closing on the Closing Date is a further condition to the obligations of the Investor. The Company
agrees that if the Company or the Transfer Agent defaults in its obligation to deliver all or any of the Purchase Shares as DWAC
Shares on the Closing Date in accordance with this Section 2 (other than as a result of the Investor or its broker failing to send
an electronic request to the Transfer Agent requesting that the Purchase Shares be delivered to the Investor's or its designee's
specified DWAC account with DTC under its FAST Program or any similar program hereafter adopted by DTC performing substantially
the same function) and if after such date the Investor is required by its broker to purchase or the Investor’s brokerage
firm otherwise purchases Common Shares to deliver in satisfaction of a sale of the Purchase Shares that the Investor anticipated
receiving from the Company on the Closing Date, then the Company shall, within three (3) Business Days after the Investor’s
written request, either (A) pay cash to the Investor in an amount equal to the Investor’s total purchase price (including
brokerage commissions, if any) for the Common Shares so purchased (the “Cover Price”), at which point the Company’s
obligation to deliver such Purchase Shares as DWAC Shares shall terminate, or (B) promptly honor its obligation to deliver to the
Investor such Purchase Shares as DWAC Shares and pay cash to the Investor in an amount equal to the excess (if any) of the Cover
Price over the total amount of the Purchase Price the Investor paid pursuant to this Agreement for such Purchase Shares. All payments
made under this Agreement shall be made by wire transfer of immediately available funds to the account designated by the Company
by written notice to the Investor prior to the date of this Agreement. Whenever any amount expressed to be due by the terms of
this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next succeeding day that is a
Business Day.

 

(c)       Shareholder’s
Resolution on Capital Increase. The Company confirms that:

 

(i)       pursuant
to the articles of association, the Board of Directors of the Company (the “Board”) may, until April 13, 2019,
effect an increase of the Company’s share capital in a maximum amount of CHF 8,860,000.00 by issuing up to 22,150,000 Common
Shares out of the Company’s authorized share capital, such authorization having been granted by resolution of the shareholders
meeting of April 13, 2017 (Ermächtigungsbeschluss); and

 

(ii)       all
statutory pre-emptive rights to which the existing shareholders of the Company are entitled under Swiss law with respect to the
capital increase described in Section 2(c)(i) have been or will be validly set aside or waived.

 

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(d)       Capital
Increase Account. The Company confirms that it has opened with (i) UBS AG, bank clearing no. referenced in Schedule 2(d)
hereto (the “Capital Increase Bank”), a blocked account for the capital increase (Kapitaleinzahlungskonto) set
forth in Schedule 2(d) hereto made out to “AURIS MEDICAL HOLDING AG KAPITALERHÖHUNG” (the “Capital
Increase Account”), and (ii) UBS AG, ABA no. referenced in Schedule 2(d) hereto (the “General Account
Bank”), an account for the capital surplus, account no. set forth in Schedule 2(d) hereto made out to “AURIS
MEDICAL HOLDING AG” (the “General Account”), and each of the Capital Increase Account and General Account
shall remain open until the earlier of (i) the consummation of the transactions contemplated by this Agreement and (ii) the date
on which this Agreement is properly terminated pursuant to and in accordance with Section 11 and the Purchase Price is released
in full to and received by the Investor.

 

(e)       Subscription
of Capital Increase. The Investor agrees, on the basis of the representations, warranties and agreements herein contained,
to:

 

(i)       subscribe,
not later than 12:00 p.m. (CEST) on the third (3rd) Business Day immediately preceding the Closing Date, or such other
time and date as agreed between the Company and the Investor, for all of the Purchase Shares, at the issue price (Ausgabebetrag)
per Purchase Share of CHF 0.40, corresponding to the nominal value for each Purchase Share (such nominal value per Purchase Share,
the “Issue Price”), and to deliver or cause to be delivered to the Company the original duly signed corresponding
subscription form (Zeichnungsschein) in the form of Exhibit A; and

 

(ii)       deposit
or cause to be deposited, not later than 1:30 p.m. (CEST) on the second (2nd) Business Day immediately preceding the
Closing Date, or such other time and date as agreed between the Company and the Investor: (A) same-day funds for value in the aggregate
amount equal to (1) the Issue Price multiplied by (2) the total number of Purchase Shares subscribed for hereunder, corresponding
to the aggregate nominal value of all of the Purchase Shares subscribed for hereunder (such aggregate nominal value of all of the
Purchase Shares subscribed for hereunder, the “Capital Increase Amount”) with the Capital Increase Bank in the
Capital Increase Account, and shall, and the Company shall, take all actions reasonably necessary to cause the Capital Increase
Bank to issue and deliver the original of a written confirmation of deposit of the Capital Increase Amount to the Company (and
a copy thereof to the Investor) not later than 6:00 p.m. (CEST) on the second (2nd) Business Day immediately preceding
the Closing Date (or such other time and date as agreed between the Company and the Investor); and (B) same-day funds for value
in the aggregate amount equal to (1) the total Purchase Price less (2) the U.S. Dollar equivalent of the total Capital Increase
Amount, calculated using the same Exchange Rate used by the Investor to procure such Capital Increase Amount (such aggregate amount,
the “Purchase Price Balance”) with the General Account Bank in the General Account.

 

(f)       Board
Resolution and Registration of Capital Increase. Provided the Company has received written confirmation of the deposit of each
of the Capital Increase Amount and the Purchase Price Balance in accordance with Section (2)(e)(ii), and the original duly signed
subscription form for the Purchase Shares in accordance with Section 2(e)(i), then, no later than 8:30 a.m. (CEST) on the Business
Day immediately preceding the Closing Date, or such other time and date as agreed between the Company and the Investor, the Board
(or a committee or a Board member duly authorized by the Board) will:

 

(i)       pass
a capital increase resolution (Erhöhungsbeschluss) regarding the issuance of the Purchase Shares subscribed for pursuant
to Section 2(e)(i) (the “Capital Increase”);

 

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(ii)       adopt
a report on the Capital Increase (Kapitalerhöhungsbericht) and, after having caused the special auditor to issue the
auditors' report (Prüfungsbestätigung), take note of the auditors’ report (Prüfungsbestätigung),
all in accordance with Swiss statutory law;

 

(iii)       resolve
on the Capital Increase and making all amendments to the articles of association of the Company necessary in connection with the
Capital Increase (Feststellungs- und Statutenänderungsbeschluss); and

 

(iv)       promptly
thereafter, and not later than 10:30 a.m. (CEST) on the Business Day immediately preceding the Closing Date, file the documents
necessary for the registration of the Capital Increase with the Commercial Register of the Canton of Zug;

 

provided, however, that
if this Agreement is properly terminated pursuant to and in accordance with Section 11 prior to the Company filing the relevant
resolutions with the Commercial Register of the Canton of Zug, (A) the Company undertakes not to resolve on the Capital Increase
(if it has not already done so) or not to file the relevant resolutions with the Commercial Register of the Canton of Zug, and
(B) the Company shall (1) cause the Capital Increase Bank to release the Capital Increase Amount in full to the Investor as soon
as practicable, and in no event later than the third (3rd) Business Day immediately following termination of this Agreement
pursuant to and in accordance with Section 11, and the Investor understands that the Capital Increase Bank may require confirmation,
including from the Investor, to release the Capital Increase Amount and the Investor agrees to deliver such confirmation, and (2)
cause the General Account Bank to release the Purchase Price Balance in full to the Investor as soon as practicable, and in no
event later than the third (3rd) Business Day immediately following termination of this Agreement pursuant to and in
accordance with Section 11. Any fees payable to the Capital Increase Bank and/or the General Account Bank for any transfer of the
funds deposited in the Capital Increase Account or General Account, respectively, pursuant to this Section 2 shall be paid by the
Company directly to the Capital Increase Bank or the General Account Bank, as applicable, prior to the time that the applicable
funds deposited therewith are required to be released to the Investor under this Section 2(f).

 

(g)       Issue
of Purchase Shares. Provided the Company has received written confirmation of the deposit of each of the Capital Increase Amount
and the Purchase Price Balance in accordance with Section (2)(e)(ii), and the original duly signed subscription form for the Purchase
Shares in accordance with Section 2(e)(i), then, immediately after the registration of the Capital Increase in the Commercial Register
of the Canton of Zug pursuant to Section 2(f), but in no event later than 7:00 p.m. (CEST) on the Business Day immediately preceding
the Closing Date, the Company will:

 

(i)       deliver
to the Investor and the Capital Increase Bank, (A) a copy of the certified excerpt of the journal entry (Tagebuch) or a
copy of the certified excerpt from the Commercial Register of the Canton of Zug evidencing the Capital Increase, (B) a copy of
the certified updated articles of association of the Company evidencing the Capital Increase, and (C) a copy of the Company's book
of uncertificated securities (Wertrechtebuch) evidencing the Investor as first holder of the Purchase Shares; and

 

(ii)       take
all steps necessary to ensure that the Purchase Shares will be delivered to the Investor as DWAC Shares on the Closing Date.

 

(h)       Use
of Capital Increase Amount. The funds deposited in the Capital Increase Account shall, upon registration of the Capital Increase
pursuant to Section 2(f) and upon written request by the Investor, be transferred to a separate account of the Company, and shall,
in such case, remain so deposited for the account of the Company and shall not be used in any way whatsoever until the delivery
of the

 

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Purchase
Shares to the Investor as DWAC Shares as set forth in Section 2(b) at the Closing on the Closing Date. Any fees payable to the
Capital Increase Bank for any transfer of the funds deposited in the Capital Increase Account pursuant to this Section 2(h) shall
be payable directly to the Capital Increase Bank by the Company.

 

(i)        Compliance
with Registration Statement Eligibility Requirements. The Company hereby confirms that the offer, issuance and sale of the
Purchase Shares to the Investor pursuant to this Agreement shall not result in the offer, issuance or sale of Common Shares that
would exceed the maximum number or dollar amount of Common Shares that the Company may offer, issue and sell pursuant to General
Instruction I.B.5. of Form F-3 (the “Maximum Share Cap”). The Company shall not offer, issue or sell any Common
Shares pursuant to this Agreement if such offer, issuance and sale would reasonably be expected to result in a violation of the
Securities Act (including, without limitation, non-compliance with General Instruction I.B.5. of Form F-3).

 

(j)       Beneficial
Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement, the Company shall not offer,
issue or sell, and the Investor shall not subscribe for, purchase or acquire, any Common Shares under this Agreement which,
when aggregated with all other Common Shares then beneficially owned by the Investor (as calculated pursuant to Section 13(d) of
the Exchange Act and Rule 13d-3 promulgated thereunder) would result in the beneficial ownership by the Investor of more than 9.99%
of the issued and outstanding Common Shares (the “Beneficial Ownership Limitation”). Upon the written or oral
request of the Investor, the Company shall promptly (but not later than 24 hours) confirm orally or in writing to the Investor
the number of Common Shares then outstanding. The Investor and the Company shall each cooperate in good faith in the determinations
required hereby and the application hereof. The Investor’s written certification to the Company of the applicability of the
Beneficial Ownership Limitation, and the resulting effect thereof hereunder at any time, shall be conclusive with respect to the
applicability thereof and such result absent manifest error.

 

3.       INVESTOR'S
REPRESENTATIONS AND WARRANTIES.

 

The Investor represents
and warrants to the Company that as of the date hereof and as of the Closing Date:

 

(a)       Organization;
Accredited Investor Status. The Investor is an entity duly organized, validly existing and in good standing under the laws
of its jurisdiction of organization, with the requisite power and authority to enter into and to consummate the transactions contemplated
by this Agreement and otherwise to carry out its obligations hereunder. The Investor is an “accredited investor” as
that term is defined in Rule 501(a)(3) of Regulation D promulgated under the Securities Act.

 

(b)       Information.
The Investor understands that its investment in the Purchase Shares involves a high degree of risk. The Investor (i) is able to
bear the economic risk of an investment in the Purchase Shares including a total loss thereof, (ii) has such knowledge and experience
in financial and business matters that it is capable of evaluating the merits and risks of the proposed investment in the Purchase
Shares and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning the
financial condition and business of the Company and others matters related to an investment in the Purchase Shares. Neither such
inquiries nor any other due diligence investigations conducted by the Investor or its representatives shall modify, amend or affect
the Investor's right to rely on the Company's representations and warranties contained in Section 4 below. The Investor has sought
such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its
acquisition of the Purchase Shares.

 

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(c)       No
Governmental Review. The Investor understands that no U.S. federal or state agency or any other domestic or foreign government
or governmental agency has passed on or made any recommendation or endorsement of the Purchase Shares or the fairness or suitability
of an investment in the Purchase Shares nor have such authorities passed upon or endorsed the merits of the offering of the Purchase
Shares.

 

(d)       Validity;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and is a
valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability
to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies.

 

(e)       Residency.
The Investor is a resident of the State of Illinois.

 

(f)       No
Short Selling. The Investor represents and warrants to the Company that at no time prior to the date of this Agreement has
the Investor, or any of its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or
indirectly, any (i) "short sale" (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common
Shares or (ii) hedging transaction, which establishes a net short position with respect to the Common Shares.

 

4.       REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The Company represents
and warrants to the Investor that as of the date hereof and as of the Closing Date:

 

(a)       Organization
and Qualification. The Company has been duly incorporated and is validly existing under the laws of Switzerland and has the
corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Registration
Statement and the Prospectus and to enter into and perform its obligations under this Agreement. The Company is duly qualified
as a foreign corporation to transact business in each jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business. Each of the Company’s Subsidiaries has been duly incorporated
or organized, as the case may be, and is validly existing as a corporation, partnership or limited liability company, as applicable,
in good standing (where such concept exists) under the laws of the jurisdiction of its incorporation or organization and has the
power and authority (corporate or other) to own, lease and operate its properties and to conduct its business as described in the
Registration Statement and the Prospectus. Each of the Company’s Subsidiaries is duly qualified as a foreign corporation,
partnership or limited liability company, as applicable, to transact business and is in good standing in each jurisdiction in which
such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where
the failure to be so qualified or in good standing (where such concept exists) would not, individually or in the aggregate, result
in a Material Adverse Effect. All of the issued and outstanding capital stock or other equity or ownership interests of each of
the Company’s Subsidiaries have been duly authorized and validly issued, are fully paid and nonassessable and are owned by
the Company, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or
adverse claim. The Company does not own or control, directly or indirectly, any corporation, association or other entity other
than the Subsidiaries listed in Exhibit 21 incorporated by reference in the Registration Statement. Except as described in
the Registration Statement and the Prospectus, no Subsidiary of the Company is prohibited or restricted, directly or indirectly,
from paying dividends to the Company, or from making any other distribution with respect to such Subsidiary’s equity securities
or

 

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from
repaying to the Company or any other Subsidiary of the Company any amounts that may from time to time become due under any loans
or advances to such Subsidiary from the Company or from transferring any property or assets to the Company or to any other Subsidiary.

 

(b)       Authorization;
Enforcement; Validity. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement and each of the other Transaction Documents to which it is a party, and to issue the Purchase Shares in accordance
with the terms hereof and thereof, (ii) the execution and delivery by the Company of the Transaction Documents to which it is a
party and the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the reservation
for issuance and the issuance of the Purchase Shares issuable under this Agreement, have been duly authorized by the Board and
no further consent or authorization is required by the Company, the Board or the Company’s shareholders, (iii) this Agreement
has been, and each other Transaction Document to which the Company is a party shall be on the Closing Date, duly executed and delivered
by the Company and (iv) this Agreement constitutes, and each other Transaction Document to which the Company is a party upon its
execution on behalf of the Company, shall constitute, the valid and binding obligations of the Company enforceable against the
Company in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of creditors' rights and remedies, and except that such enforceability may be further limited by the Company’s current articles
of association which limit the power of the Board to issue shares based on authorized share capital to 22,150,000 shares until
April 13, 2019. Except as set forth in this Agreement, no other approvals or consents of the Board, any authorized committee thereof,
or shareholders of the Company is necessary under applicable Swiss or other laws, rules or regulations, or under the Company’s
articles of association or similar organizational documents, to authorize the execution and delivery of this Agreement or any of
the other Transaction Documents to which the Company is a party, or any of the transactions contemplated hereby or thereby, including,
but not limited to, the offer, issuance and sale of the Purchase Shares to the Investor.

 

(c)       Capitalization.
The authorized, issued and outstanding share capital of the Company is as set forth in the Registration Statement and the Prospectus
under the caption “Capitalization” (other than for subsequent issuances, if any, pursuant to employee benefit plans,
or upon the exercise of outstanding options or conversion rights, in each case described in the Registration Statement and the
Prospectus). The share capital of the Company, including the Purchase Shares, conforms in all material respects to the description
thereof contained in the Prospectus. All of the issued and outstanding Common Shares have been duly authorized and validly issued,
are fully paid and nonassessable and have been issued in compliance with all applicable securities laws. Except as described in
the Registration Statement and the Prospectus, none of the outstanding Common Shares was issued in violation of any preemptive
rights, rights of first refusal or other similar rights to subscribe for or purchase securities of the Company. The Common Shares
conform to the law of the jurisdiction of the Company’s incorporation and to any requirements of the Company’s organizational
documents. There are no authorized or outstanding options, warrants, preemptive rights, rights of first refusal or other rights
to purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any capital stock of the Company
or any of its Subsidiaries other than those described in the Registration Statement and the Prospectus. The descriptions of the
Company’s stock option, stock bonus and other stock plans or arrangements, and the options or other rights granted thereunder,
set forth in the Registration Statement and the Prospectus accurately and fairly presents the information required to be shown
with respect to such plans, arrangements, options and rights. Except as described in the Registration Statement and the Prospectus,
there are no persons with registration or other similar rights to have any equity or debt securities registered for sale under
the Registration Statement or included in the offering contemplated by this Agreement, except for such rights as have been duly
withdrawn or waived.

 

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(d)       Issuance
of Purchase Shares. The Purchase Shares have been duly authorized for issuance and sale pursuant to this Agreement and, when
issued and delivered by the Company against payment therefor pursuant to this Agreement, will be validly issued, fully paid and
nonassessable, and the issuance and sale of the Purchase Shares is not subject to any preemptive rights, rights of first refusal
or other similar rights to subscribe for or purchase the Purchase Shares which have not been duly withdrawn waived or satisfied.
Upon the sale and delivery to the Investor of the Purchase Shares, and payment therefor, the Investor will acquire good, marketable
and valid title to such Purchase Shares, free and clear of all pledges, liens, security interests, charges, claims or encumbrances.

 

(e)       No
Conflicts. Neither the Company nor any of its Subsidiaries is in violation of its articles of association or operating agreement
or similar organizational documents, as applicable, or is in default (or, with the giving of notice or lapse of time, would be
in default) (“Default”) under any indenture, loan, credit agreement, note, lease, license agreement, contract,
franchise or other instrument (including, without limitation, any pledge agreement, security agreement, mortgage or other instrument
or agreement evidencing, guaranteeing, securing or relating to indebtedness) to which the Company or any of its Subsidiaries is
a party or by which it or any of them may be bound, or to which any of their respective properties or assets are subject (each,
an “Existing Instrument”), except for such Defaults as would not be expected, individually or in the aggregate,
to have a Material Adverse Effect. The Company’s execution, delivery and performance of this Agreement and the other Transaction
Documents to which it is a party, consummation of the transactions contemplated hereby and thereby and by the Registration Statement
and the Prospectus and the issuance and sale of the Purchase Shares pursuant to this Agreement (including the use of proceeds from
the sale of the Purchase Shares as described in the Registration Statement and the Prospectus under the caption “Use of Proceeds”)
(i) have been duly authorized by all necessary corporate action and will not result in any violation of the provisions of
the articles of association or operating agreement or similar organizational documents, as applicable, of the Company or any Subsidiary
(ii) will not conflict with or constitute a breach of, or Default or a Debt Repayment Triggering Event (as defined below)
under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or
any of its Subsidiaries pursuant to, or require the consent of any other party to, any Existing Instrument and (iii) will
not result in any violation of any law, administrative regulation or administrative or court decree applicable to the Company or
any of its Subsidiaries except, as to clauses (ii) and (iii), as would not be expected, individually or in the aggregate, to have
a Material Adverse Effect. No consent, approval, authorization or other order of, or registration or filing with, any court or
other governmental or regulatory authority or agency, is required for the Company’s execution, delivery and performance of
this Agreement or any of the other Transaction Documents to which it is a party and consummation of the transactions contemplated
hereby and thereby and by the Registration Statements and the Prospectus, except such as have been obtained or made by the Company
and are in full force and effect under the Securities Act and such as may be required under applicable U.S. state securities or
“blue sky” laws, or the Principal Market. As used herein, a “Debt Repayment Triggering Event” means
any event or condition which gives, or with the giving of notice or lapse of time would give, the holder of any note, debenture
or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption
or repayment of all or a portion of such indebtedness by the Company or any of its Subsidiaries. The Company and its Subsidiaries
have been and are in compliance with all applicable laws, rules and regulations, except where failure to be so in compliance would
not be expected, individually or in the aggregate, to have a Material Adverse Effect.

 

(f)       SEC
Documents; Financial Statements. The Company has filed with the SEC all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the twelve

 

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months
preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the
foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred
to herein as the “SEC Documents”) on a timely basis or has received a valid extension of such time of filing
and has filed any such SEC Documents prior to the expiration of any such extension.  As of their respective dates, the
SEC Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable.
None of the SEC Documents, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. The financial statements filed with the SEC as a part of or incorporated by reference in the Registration
Statement and the Prospectus present fairly, in all material respects, the consolidated financial position of the Company and
its Subsidiaries as of the dates indicated and the results of their operations, changes in stockholders’ equity and cash
flows for the periods specified. Such financial statements have been prepared in conformity with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”)
applied on a consistent basis throughout the periods involved, except as may be expressly stated in the related notes thereto
or as otherwise disclosed therein, and, in the case of interim financial statements, subject to normal year-end audit adjustments
and the exclusion of certain footnotes. No other financial statements or supporting schedules are required to be included in the
Registration Statement or the Prospectus. The financial data set forth or incorporated by reference in each of the Registration
Statement and the Prospectus under the captions “Selected Financial Data” and “Capitalization” present
fairly, in all material respects, the information set forth therein on a basis consistent with that of the audited financial statements
contained or incorporated by reference in the Registration Statement and the Prospectus. To the Company’s knowledge, no
person who has been suspended or barred from being associated with a registered public accounting firm, or who has failed to comply
with any sanction pursuant to Rule 5300 promulgated by the Public Company Accounting Oversight Board (“PCAOB”),
has participated in or otherwise aided the preparation of, or audited, the financial statements, supporting schedules or other
financial data filed with the SEC as a part of or incorporated by reference in the Registration Statement and the Prospectus.
Except as set forth in the SEC Documents, the Company has received no notices or correspondence from the SEC for the one year
preceding the date hereof. The SEC has not commenced any enforcement proceedings against the Company or any of its Subsidiaries.

 

(g)       Absence
of Certain Changes. Except as otherwise 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: (i) there has been no material adverse
change, or any development that could be expected to result in a material adverse change, in the condition, financial or otherwise,
or in the earnings, business, properties, operations, assets, liabilities or prospects, whether or not arising from transactions
in the ordinary course of business, of the Company and its Subsidiaries, considered as one entity (any such change being referred
to herein as a “Material Adverse Change”); (ii) the Company and its Subsidiaries, considered as one entity,
have not incurred any material liability or obligation, indirect, direct or contingent, including without limitation any losses
or interference with its business from fire, explosion, flood, earthquakes, accident or other calamity, whether or not covered
by insurance, or from any strike, labor dispute or court or governmental action, order or decree, that are material, individually
or in the aggregate, to the Company and its Subsidiaries, considered as one entity, or have entered into any transactions not in
the ordinary course of business; and (iii) there has not been any material decrease in the capital stock or any material increase
in any short-term or long-term indebtedness of the Company or its Subsidiaries and there has been no dividend or distribution of
any kind declared, paid or made by the Company or, except for dividends paid to the Company or other Subsidiaries, by any of the
Company’s Subsidiaries on any class of capital stock, or any repurchase or redemption by the Company or any of its Subsidiaries
of any class of capital stock. The Company has not taken any steps, and does not currently

 

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expect
to take any steps, to seek protection pursuant to any Bankruptcy Law nor does the Company or any of its Subsidiaries have any
knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or insolvency proceedings. The Company
is financially solvent and is generally able to pay its debts as they become due. Except for Auris Medical AG, whose overindebtedness
is covered by subordination of claims of the Company, neither the Company nor its Swiss Subsidiaries are overindebted or suffering
from capital loss within the meaning of article 725 of the Swiss Code of Obligations (the “CO”).

 

(h)       Absence
of Litigation. There is no action, suit, proceeding, inquiry or investigation brought by or before any governmental entity
now pending or, to the knowledge of the Company, threatened, against or affecting the Company or any of its Subsidiaries, which
would be expected, individually or in the aggregate, to have a Material Adverse Effect; and the aggregate of all pending legal
or governmental proceedings to which the Company or any such Subsidiary is a party or of which any of their respective properties
or assets is the subject, including ordinary routine litigation incidental to the business, if determined adversely to the Company,
would not be expected to have a Material Adverse Effect. No material labor dispute with the employees of the Company or any of
its Subsidiaries exists or, to the knowledge of the Company, is threatened or imminent.

 

(i)       Acknowledgment
Regarding Investor's Status. The Company acknowledges and agrees that the Investor is acting solely in the capacity of arm's
length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further
acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Investor
or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and
thereby is merely incidental to the Investor's subscription for the Purchase Shares. The Company further represents to the Investor
that the Company's decision to enter into the Transaction Documents has been based solely on the independent evaluation by the
Company and its representatives and advisors.

 

(j)       No
Integrated Offering. None of the Company, any of its affiliates, or any Person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause this offering of the Purchase Shares to be “integrated” (within the meaning of the Securities Act) with any prior
offering of securities by the Company. The offer, issuance and sale of the Purchase Shares hereunder does not contravene the rules
and regulations of the Principal Market.

 

(k)       Intellectual
Property Rights. Except as described in the Registration Statement and the Prospectus, the Company, to the best of its knowledge,
owns or has valid, binding and enforceable licenses or other enforceable rights under the patents and patent applications, copyrights,
trademarks, trademark registrations, service marks, service mark registrations, trade names, service names and know-how (including
trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures) as described
in the Registration Statement and the Prospectus and used in the conduct, or the proposed conduct, of the business of the Company
in the manner described in the Registration Statement and the Prospectus (collectively, the “Company Intellectual Property”);
except as described in the Registration Statement and the Prospectus, to the knowledge of the Company, the patents, trademarks,
and copyrights included within the Company Intellectual Property are valid, enforceable, and subsisting, and there is no pending
or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others challenging the validity, enforceability
or scope of any Company Intellectual Property; other than as disclosed in the Registration Statement and the Prospectus, (i) the
Company has not received any notice of any claim of infringement, misappropriation or conflict with any

 

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asserted
rights of others with respect to any of the Company’s products, proposed products or processes, (ii) to the knowledge of
the Company, neither the sale nor use of any of products, proposed products or processes of the Company referred to in the Registration
Statement or the Prospectus do or will, to the knowledge of the Company, infringe, any valid patent claim of any third party or
violate any valid right of any third party, and (iii) to the knowledge of the Company, no third party has any ownership right
in or to any Company Intellectual Property that is owned by the Company, other than any co-owner of any patent or pending patent
application constituting Company Intellectual Property who is listed on the records of the U.S. Patent and Trademark Office (the
“USPTO”) , and, to the knowledge of the Company, no third party has any ownership right in or to any Company
Intellectual Property in any field of use that is exclusively licensed to the Company, other than any licensor to the Company
of such Company Intellectual Property; except as described in the Registration Statement and the Prospectus, 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 except as would not be expected, individually or in the aggregate, to have a Material Adverse Effect, or, to the Company’s
knowledge, upon any of its officers, directors or employees; except as described in the Registration Statement and the Prospectus,
to the knowledge of the Company all patents and patent applications owned by and licensed to the Company or under which the Company
has rights have been duly and properly filed and maintained; to the knowledge of the Company, the parties prosecuting such applications
have complied with their duty of candor and disclosure to the USPTO in connection with such applications; and the Company is not
aware of any facts required to be disclosed to the USPTO that were not disclosed to the USPTO and which would preclude the grant
of a patent in connection with any such application or could form the basis of a finding of invalidity with respect to any patents
that have issued with respect to such applications.

 

(l)       Environmental
Laws. Except as described in the Registration Statement and the Prospectus and except as would not be expected, individually
or in the aggregate, to have a Material Adverse Effect: (i) neither the Company nor any of its Subsidiaries is in violation of
any federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial
or administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating
to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or
threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum
products (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”); (ii) the
Company and its Subsidiaries have all permits, authorizations and approvals required under any applicable Environmental Laws and
are each in compliance with their requirements; (iii) there are no pending or, to the Company’s knowledge, threatened administrative,
regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigation
or proceedings relating to any Environmental Law against the Company or any of its Subsidiaries; and (iv) to the Company’s
knowledge there are no events or circumstances that might reasonably be expected to form the basis of an order for clean-up or
remediation, or an action, suit or proceeding by any private party or governmental body or agency, against or affecting the Company
or any of its Subsidiaries relating to Hazardous Materials or any Environmental Laws.

 

(m)       Title.
The Company and its Subsidiaries have good and marketable title to all of the real and personal property and other assets reflected
as owned in the financial statements referred to in Section 4(f) above (or elsewhere in the Registration Statement or the Prospectus),
in each case free and clear of any security interests, mortgages, liens, encumbrances, equities, adverse claims and other defects,
except as otherwise disclosed in the Registration Statement and the Prospectus or as would not reasonably be expected to have a
Material Adverse Effect. The real property, improvements, equipment and personal

 

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property
held under lease by the Company or any of its Subsidiaries are held under valid and enforceable leases, with such exceptions as
are not material and do not materially interfere with the use made or proposed to be made of such real property, improvements,
equipment or personal property by the Company or such Subsidiary.

 

(n)       Insurance.
Except as described in the Registration Statement and the Prospectus, each of the Company and its Subsidiaries are insured with
policies in such amounts and with such deductibles and covering such risks as the Company believes are adequate and customary for
their businesses including, but not limited to, policies covering real and personal property owned or leased by the Company and
its Subsidiaries against theft, damage, destruction, acts of vandalism and earthquakes and policies covering the Company and its
Subsidiaries for product liability claims and clinical trial liability claims. The Company has no reason to believe that it or
any of its Subsidiaries 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 be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries
has been denied any insurance coverage which it has sought or for which it has applied.

 

(o)       Regulatory
Permits. The Company and its Subsidiaries possess such valid and current certificates, authorizations, exemptions, approvals,
clearances or permits required by state, federal or foreign regulatory agencies or bodies to conduct their respective businesses
as currently conducted and as described in the Registration Statement or the Prospectus (“Permits”). Neither
the Company nor any of its Subsidiaries is in violation of, or in default under, any of the Permits or has received any notice
of proceedings relating to the revocation or modification of, or non-compliance with, any such certificate, authorization or permit
except where such revocation or modification would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

(p)       Tax
Status. Except where the failure to do so would not constitute a Material Adverse Effect, (a) all tax returns (including tax
refund requests) required to be filed pursuant to applicable law by or with respect to the Company and any of its Subsidiaries
have been timely filed, or proper request of extension thereof has been filed, and (b) all tax returns filed are complete and correct,
and all taxes, fines or penalties due including any interest and penalties, except tax deficiencies that the Company or any of
its Subsidiaries are contesting in good faith subject to applicable reserves, have been timely paid and fully reserved against
in the applicable financial statements referred to in Section 4(f) above. Except as disclosed in the Registration Statement and
the Prospectus, no stamp or other issuance or transfer taxes or duties and no capital gains, income, withholding, value added,
capital or other taxes (but excluding any income tax, capital gains tax or similar resulting from the sale of the Purchase Shares
by the Investor) are payable by or on behalf of the Investor to any Swiss tax authorities or any political subdivisions or taxing
authority thereof or therein in connection with (i) the issuance of the Purchase Shares, (ii) the execution and delivery of this
Agreement or any other Transaction Document, and (iii) the offer, sale, delivery and resale of the Purchase Shares in the manner
contemplated in the Registration Statement, the Prospectus and this Agreement.

 

(q)       Transactions
With Related Parties.  There are no business relationships or related-party transactions involving the Company or any
of its Subsidiaries or any other Person required to be described in the Registration Statement or the Prospectus that have not
been described as required. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary
course of business) or guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the
Company or any of their respective family members, except as disclosed in the Registration Statement and the Prospectus. All transactions
by the Company with office holders or control

 

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persons
of the Company have been duly approved by the Board, or duly appointed committees or officers thereof, if and to the extent required
under U.S. federal law.

 

(r)       No
Contract Terminations. Neither the Company nor any of its Subsidiaries has sent or received any communication regarding termination
of, or intent not to renew, any of the contracts or agreements referred to or described in the Registration Statement or the Prospectus,
or referred to or described in, or filed as an exhibit to, the Registration Statement, or any document incorporated by reference
therein, and no such termination or non-renewal has been threatened by the Company or any of its Subsidiaries or, to the Company’s
knowledge, any other party to any such contract or agreement, which threat of termination or non-renewal has not been rescinded
as of the date hereof, except where such termination or non-renewal would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

 

(s)        Disclosure.  Except
with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents that will be timely
publicly disclosed by the Company, the Company confirms that neither it nor any other Person acting on its behalf has provided
the Investor or its agents or counsel with any information that it believes constitutes or might constitute material, non-public
information which is not otherwise disclosed in the Registration Statement or any Prospectus Supplements thereto.   The
Company understands and confirms that the Investor will rely on the foregoing representation in effecting purchases and sales of
securities of the Company.  None of the disclosure furnished by or on behalf of the Company to the Investor regarding
the Company, its business and the transactions contemplated hereby, including the disclosure schedules to this Agreement contains
any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during
the twelve months preceding the date of this Agreement taken as a whole do 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, in light of
the circumstances under which they were made and when made, not misleading.  The Company acknowledges and agrees that
the Investor neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby
other than those specifically set forth in Section 3 hereof.

 

(t)       Foreign
Corrupt Practices.  Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any director,
officer, agent, employee, affiliate or other Person acting on behalf of the Company or any of its Subsidiaries has, in the course
of its actions for, or on behalf of, the Company or any of its Subsidiaries (i) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment
to any domestic government official, “foreign official” (as defined in the U.S. Foreign Corrupt Practices Act of 1977,
as amended, and the rules and regulations thereunder (collectively, the “FCPA”) or employee from corporate funds;
(iii) violated or is in violation of any provision of the FCPA or any applicable non-U.S. anti-bribery statute or regulation;
or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any domestic government
official, such foreign official or employee; and the Company and its Subsidiaries and, to the knowledge of the Company, the Company’s
affiliates have conducted their respective businesses in compliance with the FCPA and have instituted policies and procedures designed
to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

 

(u)       No
Unlawful Contributions or Other Payments. Neither the Company nor any of its Subsidiaries nor, to the Company’s knowledge,
any employee or agent of the Company or any Subsidiary, has made any contribution or other payment to any official of, or candidate
for, any federal,

 

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state
or foreign office in violation of any law or of the character required to be disclosed in the Registration Statement or the Prospectus.

 

(v)        Money
Laundering Laws. The operations of the Company and its Subsidiaries are, and have been conducted at all times, in compliance
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related
or similar applicable rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively,
the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws
is pending or, to the best knowledge of the Company, threatened.

 

(w)       OFAC.
Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate
or Person acting on behalf of the Company or any of its Subsidiaries is currently subject to any U.S. sanctions administered by
the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly
or indirectly use the proceeds of this offering, or lend, contribute or otherwise make available such proceeds to any Subsidiary,
or any joint venture partner or other Person, for the purpose of financing the activities of or business with any Person, or impermissibly
in any country or territory, that currently is the subject to any U.S. sanctions administered by OFAC or in any other manner that
will result in a violation by any Person (including any Person participating in the transactions contemplated by the Transaction
Documents, whether as investor or otherwise) of U.S. sanctions administered by OFAC.

 

(x)       Registration
Statement. The Registration Statement was declared effective by order of the SEC on April 24, 2017. The Registration Statement
is effective pursuant to the Securities Act and available for the issuance of the Purchase Shares thereunder, and the Company has
not received any written notice that the SEC has issued or intends to issue a stop order or other similar order with respect to
the Registration Statement or the Prospectus or that the SEC otherwise has (i) suspended or withdrawn the effectiveness of
the Registration Statement or (ii) issued any order preventing or suspending the use of the Prospectus or any Prospectus Supplement,
in either case, either temporarily or permanently or intends or has threatened in writing to do so. The “Plan of Distribution”
section of the Prospectus permits the issuance of the Purchase Shares hereunder. At the time the Registration Statement and any
amendment thereto became effective, at the date of this Agreement and at each deemed effective date thereof pursuant to Rule 430B(f)(2)
of the Securities Act, the Registration Statement and any amendments thereto complied and will comply in all material respects
with the requirements of the Securities Act and did not and will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein not misleading; and the Base
Prospectus and any Prospectus Supplement thereto, at the time such Base Prospectus or such Prospectus Supplement thereto was issued
and on the Closing Date, complied and will comply in all material respects with the requirements of the Securities Act and did
not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading; provided that this representation
and warranty does not apply to statements in or omissions from any Prospectus Supplement made in reliance upon and in conformity
with information relating to the Investor furnished to the Company in writing by or on behalf of the Investor expressly for use
therein. At the time the Registration Statement was originally filed with the SEC, the Company met the then-applicable requirements
for use of Form F-3 under the Securities Act and, as of the date hereof, the Company meets all of the requirements for the use
of a registration statement on Form F-3 pursuant to the Securities Act for the offering and sale of the Purchase Shares contemplated
by this Agreement in reliance on General Instruction I.B.5. of Form F-3.

 

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The SEC has not notified the Company of
any objection to the use of the form of the Registration Statement pursuant to Rule 401(g)(1) of the Securities Act. The Company
hereby confirms that the offer, issuance and sale of the Purchase Shares to the Investor pursuant to this Agreement would not result
in the offer, issuance or sale of Common Shares that would exceed the Maximum Share Cap or any other non-compliance with General
Instruction I.B.5. of Form F-3. The Registration Statement, as of its effective date, met and, as of the date hereof, meets the
requirements set forth in Rule 415(a)(1)(x) under the Securities Act. The documents incorporated or deemed to be incorporated by
reference in the Registration Statement and the Prospectus, at the time they were or hereafter are filed with the SEC, or became
effective under the Exchange Act, as the case may be, complied and will comply in all material respects with the requirements of
the Exchange Act. At the earliest time after the filing of the Registration Statement that the Company or another offering participant
made a bona fide offer (within the meaning of Rule 164(h)(2) of the Securities Act) relating to any of the Purchase Shares, the
Company was not and is not an Ineligible Issuer (as defined in Rule 405 of the Securities Act). The Company has not distributed
any offering material in connection with the offering and sale of any of the Purchase Shares, and, until the Investor does not
hold any of the Purchase Shares, shall not distribute any offering material in connection with the offering and sale of any of
the Purchase Shares, to or by the Investor, in each case, other than the Registration Statement or any amendment thereto, the Prospectus
or any Prospectus Supplement required pursuant to applicable law or the Transaction Documents. The Company has not made, and agrees
that unless it obtains the prior written consent of the Investor it will not make, an offer relating to the Purchase Shares that
would constitute a “free writing prospectus” as defined in Rule 405 under the Securities Act. The Company shall comply
with the requirements of Rules 164 and 433 under the Securities Act applicable to any such free writing prospectus consented to
by the Investor, including in respect of timely filing with the SEC, legending and record keeping.

 

(y)       Market
Capitalization. As of the close of trading on the Principal Market on October 9, 2017, the aggregate market value of the outstanding
voting and non-voting common equity (as defined in Rule 405 under the Securities Act) of the Company held by persons other than
affiliates of the Company (pursuant to Rule 144 of the Securities Act, those that directly, or indirectly through one or more intermediaries,
control, or are controlled by, or are under common control with, the Company) (the “Non-Affiliate Shares”), was approximately
$20.3 million (calculated by multiplying (x) the price at which the common equity of the Company was last sold on the Principal
Market on October 9, 2017 by (y) the number of Non-Affiliate Shares outstanding on October 9, 2017). The Company is not a shell
company (as defined in Rule 405 under the Securities Act) and has not been a shell company for at least 12 calendar months previously
and if it has been a shell company at any time previously, has filed current Form 10 information (as defined in General Instruction
I.B.5. of Form F-3) with the SEC at least 12 calendar months previously reflecting its status as an entity that is not a shell
company.

 

(z)       DTC
Eligibility. The Company, through the Transfer Agent, currently participates in the DTC Fast Automated Securities Transfer
(FAST) Program and the Common Shares, including the Purchase Shares, can be transferred electronically to third parties via the
DTC Fast Automated Securities Transfer (FAST) Program.

 

(aa)        Company’s
Accounting System. The Company and each of its Subsidiaries make and keep accurate books and records and maintain a system
of internal accounting controls designed to provide reasonable assurance that: (i) transactions are executed in accordance
with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with IFRS as issued by IASB and to maintain accountability for assets; (iii) access
to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded
accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect
to any differences.

 

    - 17 -

     

    

(bb)       Disclosure
Controls and Procedures; Deficiencies in or Changes to Internal Control Over Financial Reporting. The Company has established
and maintains disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the Exchange Act), which are
designed to ensure that material information relating to the Company, including its consolidated Subsidiaries, is made known to
the Company’s principal executive officer and its principal financial officer by others within those entities and are effective
in all material respects to perform the functions for which they were established. Since the end of the Company’s most recent
audited fiscal year, there has been no material weakness in the Company’s internal control over financial reporting (whether
or not remediated) and 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. The Company is not
aware of any change in its internal control over financial reporting that has occurred that has materially and adversely affected,
or is reasonably likely to materially and adversely affect, the Company’s internal control over financial reporting.

 

(cc)      Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor
or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by
the Transaction Documents. The Investor shall have no obligation with respect to any fees or with respect to any claims made by
or on behalf of other Persons for fees of a type contemplated in this Section 4(x) that may be due in connection with the transactions
contemplated by the Transaction Documents.

 

(dd)      Investment
Company. The Company is not, and will not be, either after receipt of payment for the Purchase Shares or after the application
of the proceeds therefrom as described under “Use of Proceeds” in the Registration Statement or the Prospectus, required
to register as an “investment company” under the Investment Company Act of 1940, as amended (the “Investment
Company Act”).

 

(ee)      Listing
and Maintenance Requirements. The Common Shares are registered pursuant to Section 12(b) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Shares pursuant to the Exchange Act nor has the Company received any notification that the SEC is currently contemplating
terminating such registration. The Company has not, in the twelve (12) months preceding the date hereof, received any notice from
any Person to the effect that the Company is not in compliance with the listing or maintenance requirements of the Principal Market.
The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all
such listing and maintenance requirements. The Principal Market has not commenced any delisting proceedings against the Company.
The Purchase Shares have been approved for listing on the Principal Market.

 

(ff)      Accountants.
Deloitte AG and KPMG AG, which have expressed their respective opinions with respect to the financial statements (which term as
used in this Agreement includes the related notes thereto) filed with the Commission as a part of the Registration Statement and
the Prospectus, are each (i) an independent registered public accounting firm as required by the Securities Act, the Exchange Act
and the rules of the PCAOB, (ii) in compliance with the applicable requirements relating to the qualification of accountants under
Rule 2-01 of Regulation S-X under the Securities Act, (iii) a registered public accounting firm as defined by the PCAOB whose registration
has not been suspended or revoked and who has not requested such registration to be withdrawn and (iv) an independent qualified
public accountant qualified under the applicable provisions of the CO, the Swiss Audit Supervision Act (Revisionsaufsichtsgesetz)
and any ordinances promulgated thereunder.

 

(gg)No Market
Manipulation. The Company has not, and to its knowledge no Person acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of

 

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any
of the Purchase Shares, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the
Purchase Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other
securities of the Company.

 

(hh)    Statistical
and Market-Related Data. All statistical, demographic and market-related data included in the Registration Statement or the
Prospectus are based on or derived from sources that the Company believes, to be reliable and accurate in all material respects.
To the extent required, the Company has obtained the written consent to the use of such data from such sources.

 

(ii)     Forward-Looking
Statements. Each financial or operational projection or other “forward-looking statement” (as defined by Section
27A of the Securities Act or Section 21E of the Exchange Act) contained in the Registration Statement or the Prospectus (i) was
so included by the Company in good faith and with reasonable basis after due consideration by the Company of the underlying assumptions,
estimates and other applicable facts and circumstances and (ii) is accompanied by meaningful cautionary statements identifying
those factors that could cause actual results to differ materially from those in such forward-looking statement. No such statement
was made with the knowledge of an executive officer or director of the Company that is was false or misleading.

 

(jj)    Foreign
Private Issuer; Emerging Growth Company. The Company is a “foreign private issuer” within the meaning of Rule 405
under the Securities Act. The Company has been and is an “emerging growth company,” as defined in Section 2(a)(19)
of the Securities Act.

 

(kk)    Clinical
Data and Regulatory Compliance. The preclinical tests and clinical trials conducted by the Company, and to the knowledge of
the Company, the preclinical tests and clinical trials conducted on behalf of or sponsored by the Company, that are described in,
or the results of which are referred to in, the Registration Statement or the Prospectus were and, if still pending, are being
conducted in all material respects in accordance with the protocols, procedures and controls designed and approved for such studies
and with standard medical and scientific research procedures and all applicable laws and regulations, including, without limitation,
21 C.F.R. Parts 50, 54, 56, 58, and 312; each description of the results of such studies is accurate and complete in all material
respects and fairly presents the data derived from such studies, and the Company and its Subsidiaries have no knowledge of any
other studies the results of which are inconsistent with, or otherwise call into question, the results described or referred to
in the Registration Statement or the Prospectus; the Company and its Subsidiaries have made all such filings and obtained all such
Permits as may be required by the Food and Drug Administration of the U.S. Department of Health and Human Services or any committee
thereof or from any other U.S. or foreign government or drug or medical device regulatory agency, or health care facility Institutional
Review Board (collectively, the “Regulatory Agencies”) for the operation of the Company’s business as
currently conducted, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;
neither the Company nor any of its Subsidiaries has received any notice of, or correspondence from, any Regulatory Agency requiring
the termination, suspension or modification of any clinical trials that are described or referred to in the Registration Statement
or the Prospectus; and the Company and its Subsidiaries have each operated and currently are in compliance in all material respects
with all applicable rules and regulations of the Regulatory Agencies except as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

(ll)     Compliance
with Health Care Laws. Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect, each of the Company and its Subsidiaries is, and at all times has been, in compliance with all applicable Health Care Laws,
and has not 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 health care program or federal health

 

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care
program. For purposes of this Agreement, “Health Care Laws” means: (i) the Federal Food, Drug, and Cosmetic
Act 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
Anti-Inducement Law (42 U.S.C. § 1320a-7a(a)(5)), 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); and (v) any and all other applicable health care laws and regulations.
Neither the Company nor, to the knowledge of the Company, its Subsidiary has received written 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, to the knowledge of the Company, its 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.

 

(mm)    Suppliers.
Customers, Distributors and Sales Agents. No supplier, customer, distributor or sales agent of the Company has notified
the Company that it intends to discontinue or decrease the rate of business done with the Company, except
where such decrease is not reasonably likely to result in a Material Adverse Effect.

 

(nn)    ERISA Compliance.
The “employee benefit plans” (as defined under the Employee Retirement Income Security Act of 1974, as amended, and
the regulations and published interpretations thereunder (collectively, “ERISA”)) sponsored or maintained by
the Company or its Subsidiaries are operated in compliance in all material respects with ERISA to the extent applicable, except
where the failure to be in compliance would not be expected to have a Material Adverse Effect.  “ERISA Affiliate”
means, with respect to the Company or any of its Subsidiaries, any entity that is treated as a single employer with the Company
or any of its Subsidiaries under Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as amended, and the
regulations and published interpretations thereunder (the “Code”).  Neither the Company, its Subsidiaries
nor any of their ERISA Affiliates has incurred or reasonably expects to incur any liability under (i) Title IV of ERISA with respect
to termination of, or withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the
Code that would reasonably be expected to be a material liability of the Company.  Neither the Company nor any of its
Subsidiaries (i) sponsors or maintains any plan that is subject to Title IV of ERISA or is intended to be qualified
under Section 401(a) of the Code or (ii) reasonably expects to incur any material liability under Title IV of ERISA.

 

    - 20 -

     

    

(oo)       PFIC
Status. As of December 31, 2016, the Company believes that it was a “passive foreign investment company,”
as such term is defined in the Code. Neither the Company nor any Subsidiary of the Company is, and, after giving effect to
the offering, issuance and sale of the Purchase Shares to the Investor and the application of the proceeds thereof as described
in the Prospectus Supplement, none of them will be, a “controlled foreign corporation” as defined by the Code.

 

(oo)       Submission
to Jurisdiction. The Company has the power to submit, and pursuant to Section 12(a) of this Agreement, has legally, validly,
effectively and irrevocably submitted, to the personal jurisdiction of each United States federal court and New York state court
located in the State of New York, Borough of Manhattan, in the City of New York, New York, U.S.A. (each, a “New York Court”),
and the Company has the power to designate, appoint and authorize, and pursuant to Section 12(a) of this Agreement, has legally,
validly, effectively and irrevocably designated, appointed and authorized the an agent for service of process in any action arising
out of or relating to the Purchase Shares, this Agreement or any of the other Transaction Documents or any of the transactions
contemplated hereby or thereby in any New York Court, and service of process effected on such authorized agent will be effective
to confer valid personal jurisdiction over the Company as provided in Section 12(a) hereof.

 

(pp)      No Rights
of Immunity. Except as provided by laws or statutes generally applicable to transactions of the type described in this Agreement,
neither the Company nor any of its respective properties, assets or revenues has any right of immunity under Swiss, Illinois or
United States law, from any legal action, suit or proceeding, from the giving of any relief in any such legal action, suit or proceeding,
from set-off or counterclaim, from the jurisdiction of any Swiss, Illinois or United States federal court, from service of process,
attachment upon or prior judgment, or attachment in aid of execution of judgment, or from execution of a judgment, or other legal
process or proceeding for the giving of any relief or for the enforcement of a judgment, in any such court, with respect to its
obligations, liabilities or any other matter under or arising out of or in connection with this Agreement or any of the other Transaction
Documents. To the extent that the Company or any of its respective properties, assets or revenues may have or may hereafter become
entitled to any such right of immunity in any such court in which proceedings may at any time be commenced, the Company waives
or will waive such right to the extent permitted by law and has consented to such relief and enforcement as provided in Section
12(a) of this Agreement.

 

5.       COVENANTS.

 

(a)       Filing
of Current Report and Initial Prospectus Supplement. The Company agrees that it shall, not later than 9:00 a.m., Eastern Time,
on the Business Day immediately following the date of this Agreement, file with the SEC a report on Form 6-K relating to the transactions
contemplated by, and describing the material terms and conditions of, the Transaction Documents, and attaching a copy of this Agreement
as an Exhibit thereto (the “Current Report”). The Company further agrees that it shall as soon as practicable,
and in any event within the time period required under Rule 424(b) under the Securities Act (without reliance on Rule 424(b)(8)
under the Securities Act), file with the SEC pursuant to Rule 424(b)(5) under the Securities Act the Initial Prospectus Supplement
specifically relating to the Purchase Shares and describing the material terms and conditions of the Transaction Documents and
the transactions contemplated thereby, containing information previously omitted at the time of effectiveness of the Registration
Statement in reliance on Rule 430B under the Securities Act, and disclosing all information relating to the transactions contemplated
hereby required to be disclosed in the Registration Statement and the Prospectus as of the date of the Initial Prospectus Supplement,
including, without limitation, information required to be disclosed in the section captioned “Plan of Distribution”
in the Prospectus. The Company shall permit the Investor to review and comment upon a substantially complete

 

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pre-filing
draft of the Current Report and the Initial Prospectus Supplement at least two (2) Business Days prior to their filing with the
SEC, the Company shall give reasonable consideration to all such comments, and the Company shall not file the Current Report or
the Initial Prospectus Supplement with the SEC in a form to which the Investor reasonably objects. The Investor shall use its
reasonable best efforts to comment upon the Current Report and the Initial Prospectus Supplement within one (1) Business Day from
the date the Investor receives such substantially complete pre-filing draft versions thereof from the Company. The Investor shall
furnish to the Company such information regarding itself, the Common Shares, including any Purchase Shares, beneficially owned
by it and the intended method of distribution of the Purchase Shares, including any arrangement between the Investor and any other
Person relating to the sale or distribution of the Purchase Shares, as shall be reasonably requested by the Company in connection
with the preparation and filing of the Current Report and the Initial Prospectus Supplement, and shall otherwise cooperate with
the Company as reasonably requested by the Company in connection with the preparation and filing of the Current Report and the
Initial Prospectus Supplement with the SEC.

 

(b)       Blue
Sky. The Company shall use its reasonable best efforts to take all such action, if any, as is reasonably necessary in order
to obtain an exemption for or to register or qualify (i) the sale of the Purchase Shares to the Investor under this Agreement and
(ii) any subsequent resale of all Purchase Shares by the Investor, in each case, under applicable securities or “Blue Sky”
laws of the states of the United States in such states as is reasonably requested by the Investor from time to time, and shall
provide evidence of any such action so taken to the Investor.

 

(c)       Listing/DTC.
The Company shall promptly secure the listing of all of the Purchase Shares to be issued to the Investor hereunder on the Principal
Market (subject to official notice of issuance) and upon each other national securities exchange or automated quotation system,
if any, upon which the Common Shares are then listed, and shall maintain, so long as any Common Shares shall be so listed, such
listing of all such Purchase Shares issuable hereunder. The Company shall maintain the listing of the Common Shares, including
the Purchase Shares, on the Principal Market and shall comply in all respects with the Company’s reporting, filing and other
obligations under the bylaws or rules and regulations of the Principal Market. Neither the Company nor any of its Subsidiaries
shall take any action that would reasonably be expected to result in the delisting or suspension of the Common Shares, including
the Purchase Shares, on the Principal Market. For as long as the Investor or any of its affiliates beneficially owns or holds,
directly or indirectly, any Purchase Shares, the Company shall promptly, and in no event later than the following Business Day,
provide to the Investor copies of any notices it receives from the Principal Market regarding the continued eligibility of the
Common Shares for listing on the Principal Market; provided, however, that the Company shall not be required to provide the Investor
copies of any such notice that the Company reasonably believes constitutes material non-public information and the Company and
the Company would not be required to publicly disclose such notice in any report or statement filed with the SEC under the Exchange
Act (including on Form 6-K) or the Securities Act. The Company shall pay all fees and expenses in connection with satisfying its
obligations under this Section 5(c). The Company shall take all action necessary to ensure that its Common Shares, including the
Purchase Shares, can be transferred electronically as DWAC Shares.

 

(d)       Prohibition
of Short Sales and Hedging Transactions. During the term of this Agreement, the Investor and its agents, representatives and
affiliates shall not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as
such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Shares or (ii) hedging transaction, which
establishes a net short position with respect to the Common Shares.

 

(e)       Investment
Company Act. For as long as the Investor or any of its affiliates beneficially owns or holds, directly or indirectly, any Purchase
Shares, the Company will use its reasonable best

 

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efforts
to conduct its affairs in such a manner so as to reasonably ensure that it will not be or become required to register as an “investment
company,” as such term is defined in the Investment Company Act.

 

(f)       Non-Public
Information. Each party hereto agrees not to disclose any Confidential Information of the other party to any third party and
shall not use the Confidential Information for any purpose other than in connection with, or in furtherance of, the transactions
contemplated hereby. Each party hereto acknowledges that the Confidential Information shall remain the property of the disclosing
party and agrees that it shall take all reasonable measures to protect the secrecy of any Confidential Information disclosed by
the other party. The Company confirms that neither it nor any other Person acting on its behalf shall provide the Investor or its
agents or counsel with any information that constitutes or may constitute or be deemed to constitute material, non-public information,
unless a simultaneous public announcement thereof is made by the Company in a manner such that upon such public announcement, such
information shall not constitute or be deemed to constitute material, non-public information. In the event of a breach of the foregoing
covenant by the Company or any Person acting on its behalf (as determined in the reasonable good faith judgment of the Investor
after consulting with U.S. securities counsel), in addition to any other remedy provided herein or in the other Transaction Documents,
if the Investor or any of its affiliates owns or holds, directly or indirectly, any Purchase Shares at the time of the disclosure
of material, non-public information, the Investor shall have the right to make a public disclosure, in the form of a press release,
public advertisement or otherwise, of such material, non-public information without the prior approval by the Company; provided
the Investor shall have first provided notice to the Company that it believes it has received information that constitutes material,
non-public information, the Company shall have at least 24 hours to publicly disclose such material, non-public information prior
to any such disclosure by the Investor, and the Company shall have failed to publicly disclose such material, non-public information
within such time period. Neither the Investor, nor any of its affiliates, shareholders, members, officers, directors, employees
and direct or indirect investors, nor and any of the foregoing Person's agents or other representatives (including, without limitation,
those retained in connection with the transactions contemplated by this Agreement), shall have any liability to the Company, any
of its Subsidiaries, or any of their respective directors, officers, employees, shareholders or agents, for any such public disclosure.
The Company understands and confirms that the Investor shall be relying on the foregoing covenants in effecting transactions in
securities of the Company.

 

(g)        Reserved.

 

(h)       Taxes.
The Company shall pay, and will indemnify and hold harmless the Investor and all of its affiliates, shareholders, members, officers,
directors, employees and direct or indirect investors for, any and all documentary, stamp, issue, transfer or similar tax (but
not, for the avoidance of doubt, any income or value-added or capital gains tax) including interest and penalties, that may be
payable with respect to the execution and delivery of this Agreement or the creation, issue, sale and delivery of the Purchase
Shares to the Investor pursuant to this Agreement.

 

(i)       
Securities Law Compliance. The Company shall use its reasonable best efforts to keep the Registration Statement effective
pursuant to Rule 415 promulgated under the Securities Act, and to keep the Registration Statement and the Prospectus current and
available for the offer, issuance and sale of the Purchase Shares to the Investor, and for the resale of Purchase Shares by the
Investor, at all times until the date on which the Investor shall have sold all the Purchase Shares (the "Registration
Period"). Without limiting the generality of the foregoing, during the Registration Period, the Company shall (a) take
all action necessary to cause the Common Shares to continue to be registered as a class of securities under Sections 12(b) of the
Exchange Act, shall comply with its reporting and filing obligations under the Exchange Act, and shall not take any action or file
any document (whether or not permitted by the

 

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Exchange
Act) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under the Exchange
Act, and (b) prepare and file with the SEC, at the Company’s expense, such amendments (including, without limitation, post-effective
amendments) to the Registration Statement and such Prospectus Supplements pursuant to Rule 424(b) under the Securities Act, in
each case, as may be necessary to keep the Registration Statement effective pursuant to Rule 415 promulgated under the Securities
Act, and to keep the Registration Statement and the Prospectus current and available for the offer, issuance and sale of all of
the Purchase Shares by the Company to the Investor, and for the resale of all of the Purchase Shares by the Investor, at all times
during the Registration Period. The Investor shall furnish to the Company such information regarding itself, the Common Shares,
including any Purchase Shares, beneficially owned by it and the intended method of distribution thereof as shall be reasonably
requested by the Company in connection with the preparation and filing of any such amendment to the Registration Statement or
any such Prospectus Supplement, and shall otherwise cooperate with the Company as reasonably requested by the Company in connection
with the preparation and filing of any such amendment to the Registration Statement or any such Prospectus Supplement. The Company
shall comply with all applicable federal, state and foreign securities laws in connection with the offer, issuance and sale of
the Purchase Shares contemplated by the Transaction Documents. Without limiting the generality of the foregoing, neither the Company
nor any of its officers, directors or affiliates will take, directly or indirectly, any action designed or intended to stabilize
or manipulate the price of any security of the Company, or which would reasonably be expected to cause or result in, stabilization
or manipulation of the price of any security of the Company.

 

(j)       Stop
Orders. During the Registration Period, the Company shall advise the Investor promptly (but in no event later than 24 hours)
and shall confirm such advice in writing: (i) of the Company’s receipt of notice of any request by the SEC for amendment
of or a supplement to the Registration Statement, the Prospectus, any Prospectus Supplement or for any additional information;
(ii) of the Company’s receipt of notice of the issuance by the SEC of any stop order suspending the effectiveness of the
Registration Statement or prohibiting or suspending the use of the Prospectus or any Prospectus Supplement, or of the Company’s
receipt of any notification of the suspension of qualification of the Purchase Shares for offering or sale in any jurisdiction
or the initiation or contemplated initiation of any proceeding for such purpose; and (iii) of the Company becoming aware of the
happening of any event, which makes any statement of a material fact made in the Registration Statement, the Prospectus or any
Prospectus Supplement untrue or which requires the making of any additions to or changes to the statements then made in the Registration
Statement, the Prospectus or any Prospectus Supplement in order to state a material fact required by the Securities Act to be stated
therein or necessary in order to make the statements then made therein (in the case of the Prospectus or any Prospectus Supplement,
in light of the circumstances under which they were made) not misleading, or of the necessity to amend the Registration Statement
or supplement the Prospectus or any Prospectus Supplement to comply with the Securities Act or any other law. The Company shall
not be required to disclose to the Investor the substance or specific reasons of any of the events set forth in clauses (i) through
(iii) of the immediately preceding sentence, but rather, shall only be required to disclose that the event has occurred. If at
any time the SEC shall issue any stop order suspending the effectiveness of the Registration Statement or prohibiting or suspending
the use of the Prospectus or any Prospectus Supplement, the Company shall use its reasonable best efforts to obtain the withdrawal
of such order at the earliest possible time. During the Registration Period, the Company shall furnish to the Investor, without
charge, a copy of any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to the
Registration Statement or the Prospectus, as the case may be.

 

(k)       Amendments
to Registration Statement; Prospectus Supplements. Except as provided in this Agreement and other than periodic and current
reports required to be filed pursuant to the Exchange Act, the Company shall not file with the SEC any amendment to the Registration
Statement or any

 

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supplement
to the Base Prospectus that refers to the Investor, the Purchase Shares, the Transaction Documents or the transactions contemplated
thereby (including, without limitation, any Prospectus Supplement filed in connection with the transactions contemplated by the
Transaction Documents), in each case with respect to which (a) the Investor shall not previously have been advised and afforded
the opportunity to review and comment thereon at least two (2) Business Days prior to filing with the SEC, as the case may be,
(b) the Company shall not have given due consideration to any comments thereon received from the Investor or its counsel, or (c)
the Investor shall reasonably object, unless the Company reasonably has determined that it is necessary to amend the Registration
Statement or make any supplement to the Prospectus to comply with the Securities Act or any other applicable law or regulation,
in which case the Company shall promptly (but in no event later than 24 hours) so inform the Investor, the Investor shall be provided
with a reasonable opportunity to review and comment upon any disclosure referring to the Investor, the Transaction Documents or
the transactions contemplated thereby, as applicable, and the Company shall expeditiously furnish to the Investor a copy thereof.
In addition, for so long as, in the reasonable opinion of counsel for the Investor, a Prospectus is required under the Securities
Act to be delivered by the Company or the Investor in connection with any offer, issuance and sale or resale of Purchase Shares
(the “Prospectus Delivery Period”), the Company shall not file any Prospectus Supplement with respect to the
Purchase Shares without furnishing to the Investor as many copies of such Prospectus Supplement, together with the Prospectus,
as the Investor may reasonably request.

 

(l)       Prospectus
Delivery. The Company consents to the use of the Prospectus (and of each Prospectus Supplement thereto) by the Investor in
accordance with the provisions of the Securities Act and with the securities or “blue sky” laws of the jurisdictions
in which the Purchase Shares may be offered and sold by the Investor, in connection with the offer, sale and resale of the Purchase
Shares during the Prospectus Delivery Period. The Company will make available to the Investor upon request, and thereafter from
time to time will furnish to the Investor, as many copies of the Prospectus (and each Prospectus Supplement thereto) as the Investor
may reasonably request for the purposes contemplated by the Securities Act within the Prospectus Delivery Period. If during the
Prospectus Delivery Period any event shall occur that in the reasonable judgment of the Company and its counsel, or in the reasonable
judgment of the Investor and its counsel, is required to be set forth in the Registration Statement, the Prospectus or any Prospectus
Supplement or should be set forth therein in order to make the statements made therein (in the case of the Prospectus or any Prospectus
Supplement, in light of the circumstances under which they were made) not misleading, or if in the reasonable judgment of the Company
and its counsel, or in the reasonable judgment of the Investor and its counsel, it is otherwise necessary to amend the Registration
Statement or supplement the Prospectus or any Prospectus Supplement to comply with the Securities Act or any other applicable law
or regulation, the Company shall forthwith prepare and, subject to Section 5(k) above, file with the SEC an appropriate amendment
to the Registration Statement or an appropriate Prospectus Supplement and in each case shall expeditiously furnish to the Investor,
at the Company’s expense, such amendment to the Registration Statement or such Prospectus Supplement, as applicable, as may
be necessary to reflect any such change or to effect such compliance. The Company shall have no obligation to separately advise
the Investor of, or deliver copies to the Investor of, the SEC Documents, all of which the Investor shall be deemed to have notice
of.

 

(m)       Integration.
From and after the date of this Agreement, neither the Company, nor or any of its affiliates will, and the Company shall use its
reasonable best efforts to ensure that no Person acting on their behalf will, directly or indirectly, make any offers or sales
of any security or solicit any offers to buy any security, under circumstances that would cause this offering of the Purchase Shares
to be “integrated” (within the meaning of the Securities Act) with any other offering by the Company.

 

(n)       Use
of Proceeds. The Company will use the net proceeds from the issuance and sale of the Purchase Shares to the Investor as described
in the Prospectus.

 

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(o)       Other
Transactions. The Company shall not enter into, announce or recommend to its shareholders any agreement, plan, arrangement
or transaction in or of which the terms thereof would restrict, materially delay, conflict with or impair the ability or right
of the Company to perform its obligations under the Transaction Documents, including, without limitation, the obligation of the
Company to deliver the Purchase Shares to the Investor as DWAC Shares in accordance with the terms of this Agreement.

 

(p)       Emerging
Growth Company Status. For as long as the Investor or any of its affiliates beneficially owns or holds, directly or indirectly,
any Purchase Shares, the Company will promptly notify the Investor if the Company ceases to be an Emerging Growth Company.

 

(q)       Foreign
Private Issuer. For as long as the Investor or any of its affiliates beneficially owns or holds, directly or indirectly, any
Purchase Shares, the Company will provide a written notice to the Investor immediately upon becoming aware that the Company is
no longer a Foreign Private Issuer.

 

(r)       Transfer
Agent. For as long as the Investor or any of its affiliates beneficially owns or holds, directly or indirectly, any Purchase
Shares, the Company agrees to maintain a transfer agent and, if necessary under the jurisdiction of incorporation of the Company,
a registrar for the Common Shares.

 

6.       RESERVED.

 

		7.	CONDITIONS TO THE COMPANY'S OBLIGATIONS.

 

The obligation of the
Company hereunder to issue the Purchase Shares to the Investor on the Closing Date is subject to the satisfaction or, where legally
permissible, the waiver of each of the following conditions:

 

(a)       The
Investor shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company;

 

(b)       No
stop order with respect to the Registration Statement shall be pending or threatened by the SEC; and

 

(c)       The
representations and warranties of the Investor contained in Section 3 hereof shall be true and correct in all material respects
as of the date hereof and as of the Closing Date as though made at that time (except for representations and warranties that speak
as of a specific date, which shall be true and correct in all material respects as of such date).

 

		8.	CONDITIONS TO THE INVESTOR'S OBLIGATIONS.

 

The obligation of the
Investor to subscribe for the Purchase Shares under this Agreement is subject to the satisfaction or, where legally permissible,
the waiver of each of the following conditions:

 

(a)       The
Company shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Investor;

 

(b)       The
Common Shares shall be listed on the Principal Market, trading in the Common Shares shall not have been suspended by the SEC or
the Principal Market, and all Purchase Shares to be issued by the Company to the Investor pursuant to this Agreement shall have
been approved for listing on

 

    - 26 -

     

    

the
Principal Market in accordance with the applicable rules and regulations of the Principal Market, subject only to official notice
of issuance;

 

(c)       The
Investor shall have received the opinions of the Company's U.S. legal counsel and the Company’s Swiss legal counsel, each
dated as of the Closing Date substantially in the form heretofore agreed by the parties hereto;

 

(d)       The
representations and warranties of the Company in Section 4 hereof shall be true and correct in all material respects (except to
the extent that any of such representations and warranties is already qualified as to materiality in Section 4 above, in which
case, such representations and warranties shall be true and correct without further qualification) as of the date hereof and as
of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date, which
shall be true and correct as of such date) and the Company shall have performed, satisfied and complied with the covenants, agreements
and conditions required by this Agreement and the other Transaction Documents to be performed, satisfied or complied with by the
Company at or prior to the Closing Date;

 

(e)       The
Board shall have passed all of the resolutions, duly approved all matters and taken all other actions required by Section 2 to
have been passed, approved or effected by the Board on or prior to the Closing Date, all of which resolutions, approvals and actions
shall be in full force and effect without any amendment or supplement thereto as of the Closing Date;

 

(f)       The
Investor shall have received a certificate, executed by the CEO, President or CFO of the Company, dated as of the Closing Date,
to the effect set forth in Section 8(d) and further to the effect that for the period from and including the date of this Agreement
through and including the Closing Date, there has not occurred any Material Adverse Change;

 

(g)       The
Registration Statement shall be effective and no stop order with respect to the Registration Statement shall be pending or threatened
by the SEC. The Company shall have a maximum number or dollar amount certain of Common Shares registered under the Registration
Statement and available to be offered, issued and sold by the Company thereunder, including, without limitation, in compliance
with the limitations and other requirements under General Instruction I.B.5. of Form F-3, that is sufficient to enable the offer,
issuance and sale by the Company of all of the Purchase Shares to the Investor pursuant to and in accordance with this Agreement.
The Current Report and the Initial Prospectus Supplement each shall have been filed with the SEC, as required pursuant to Section
5(a), and copies of the Prospectus shall have been delivered to the Investor in accordance with Section 5(l) hereof. The Prospectus
shall be current and available for the offer, issuance and sale of all of the Purchase Shares by the Company to the Investor pursuant
to and in accordance with this Agreement, and, if required under the Securities Act, for the resale of all of the Purchase Shares
by the Investor. Any other Prospectus Supplements required to have been filed by the Company with the SEC under the Securities
Act at or prior to the Closing Date shall have been filed with the SEC within the applicable time periods prescribed for such filings
under the Securities Act. All reports, schedules, registrations, forms, statements, information and other documents required to
have been filed by the Company with the SEC at or prior to the Closing Date pursuant to the reporting requirements of the Exchange
Act shall have been filed with the SEC within the applicable time periods prescribed for such filings under the Exchange Act;

 

(h)       The
Company shall be eligible to transfer its Common Shares, including the Purchase Shares, electronically as DWAC Shares;

 

(i)       All
federal, state, local and foreign governmental laws, rules and regulations applicable to the transactions contemplated by the Transaction
Documents and necessary for the execution, delivery

 

    - 27 -

     

    

and
performance of the Transaction Documents and the consummation of the transactions contemplated thereby in accordance with the
terms thereof shall have been complied with, and all consents, authorizations and orders of, and all filings and registrations
with, all federal, state, local and foreign courts or governmental agencies and all federal, state, local and foreign regulatory
or self-regulatory agencies necessary for the execution, delivery and performance of the Transaction Documents and the consummation
of the transactions contemplated thereby in accordance with the terms thereof shall have been obtained or made, including, without
limitation, in each case those required under the Securities Act, the Exchange Act, applicable state securities or “Blue
Sky” laws, applicable foreign laws, rules or regulations, or applicable rules and regulations of the Principal Market, or
otherwise required by the SEC, the Principal Market or any federal, state or foreign securities regulators;

 

(j)       No
statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or endorsed
by any federal, state, local or foreign court or governmental authority of competent jurisdiction which prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by the Transaction Documents;

 

(k)       No
action, suit or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of competent
jurisdiction shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or foreign governmental
authority of competent jurisdiction shall have been commenced or threatened, against the Company, or any of the officers, directors
or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated by the Transaction Documents,
or seeking material damages in connection with such transactions;

 

(l)       No
Person shall have commenced a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law;

 

(m)       The
Company, pursuant to or within the meaning of any Bankruptcy Law, shall not have (i) commenced a voluntary case, (ii) consented
to the entry of an order for relief against it in an involuntary case, (iii) consented to the appointment of a Custodian of it
or for all or substantially all of its property, or (iv) made a general assignment for the benefit of its creditors or is generally
unable to pay its debts as the same become due;

 

(n)       A
court of competent jurisdiction shall not have entered an order or decree under any Bankruptcy Law that (i) is for relief against
the Company in an involuntary case, (ii) appoints a Custodian of the Company or for all or substantially all of its property, or
(iii) orders the liquidation of the Company or any Subsidiary;

 

(o)       The
issuance of the Purchase Shares shall not cause the Company to exceed the Maximum Share Cap or cause the Investor to exceed the
Beneficial Ownership Cap; and

 

(p)       The
Investor and counsel for the Investor shall have received such information, documents and opinions as they may reasonably request
for the purposes of enabling them to pass upon the issuance and sale of the Purchase Shares as contemplated herein, or in order
to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements,
herein contained; and all proceedings taken by the Company in connection with the issuance and sale of the Purchase Shares as contemplated
herein and in connection with the other transactions contemplated by this Agreement shall be reasonably satisfactory in form and
substance to the Investor and counsel for the Investor.

 

    - 28 -

     

    

		9.	INDEMNIFICATION. 

 

In consideration of
the Investor's execution and delivery of the Transaction Documents and acquiring the Purchase Shares hereunder and in addition
to all of the Company's other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold
harmless the Investor and all of its affiliates, shareholders, members, officers, directors, employees and direct or indirect investors
(collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee
is a party to the action for which indemnification hereunder is sought), and including documented and reasonably incurred attorneys'
fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising
out of, or relating to: (a) any misrepresentation or breach of any representation or warranty made by the Company in the Transaction
Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement
or obligation of the Company contained in the Transaction Documents or any other certificate, instrument or document contemplated
hereby or thereby, (c) any cause of action, suit or claim brought or made against such Indemnitee and arising out of or resulting
from the execution, delivery, performance or enforcement of the Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby, (d) any violation of the Securities Act, the Exchange Act, state securities or “Blue Sky”
laws, applicable foreign securities laws, or the rules and regulations of the Principal Market in connection with the transactions
contemplated by the Transaction Documents by the Company or any of its Subsidiaries, affiliates, officers, directors or employees,
(e) any untrue statement or alleged untrue statement of a material fact contained, or incorporated by reference, in the Registration
Statement or any amendment thereto or any omission or alleged omission to state therein, or in any document incorporated by reference
therein, a material fact required to be stated therein or necessary to make the statements therein not misleading, or (f) any untrue
statement or alleged untrue statement of a material fact contained, or incorporated by reference, in the Prospectus, or any omission
or alleged omission to state therein, or in any document incorporated by reference therein, a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;
provided, however, that (I) the indemnity contained in clause (c) of this Section 9 shall not apply to any Indemnified Liabilities
which directly and primarily result from the fraud, gross negligence or willful misconduct of an Indemnitee, (II) the indemnity
contained in clauses (d), (e) and (f) of this Section 9 shall not apply to any Indemnified Liabilities to the extent, but only
to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made
in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Investor expressly
for use in any Prospectus Supplement (it being hereby acknowledged and agreed that the written information set forth on Exhibit
B attached hereto is the only written information furnished to the Company by or on behalf of the Investor expressly for
use in the Initial Prospectus Supplement), if the Prospectus was timely made available by the Company to the Investor pursuant
to Section 5(l), (III) the indemnity contained in clauses (d), (e) and (f) of this Section 9 shall not inure to the benefit of
the Investor to the extent such Indemnified Liabilities are based on a failure of the Investor to deliver or to cause to be delivered
the Prospectus made available by the Company, if such Prospectus was timely made available by the Company pursuant to Section 5(l),
and if delivery of the Prospectus by the Investor was required under the Securities Act with respect to the offer or sale of Purchase
Shares and such delivery by the Investor would have cured the defect giving rise to such Indemnified Liabilities, and (IV) the
indemnity in this Section 9 shall not apply to amounts paid in settlement of any claim if such settlement is effected without the
prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed. To the extent that
the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. Payment under this
indemnification shall be made within

 

    - 29 -

     

    

thirty
(30) days from the date the Investor makes a written request for it. A certificate containing reasonable detail as to the amount
of such indemnification submitted to the Company by the Investor shall be conclusive evidence, absent manifest error, of the amount
due from the Company to the Investor. If any action shall be brought against any Indemnitee in respect of which indemnity may
be sought pursuant to this Agreement, such Indemnitee shall promptly notify the Company in writing, and the Company shall have
the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Indemnitee. Any Indemnitee
shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnitee, except to the extent that (i) the employment thereof has been
specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume
such defense and to employ counsel or (iii) in such action there is, in the reasonable written opinion of such separate counsel,
delivered to the Company, a material conflict on any material issue between the position of the Company and the position of such
Indemnitee, in which case the Company shall be responsible for the documented and reasonably incurred fees and expenses of no
more than one such separate counsel.

 

10.       RESERVED.

 

11.       TERMINATION

 

This Agreement may
be terminated only as follows:

 

(a)       If
pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding
against the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes
a general assignment for the benefit of its creditors, this Agreement shall automatically terminate without any liability or payment
to the Company (except as set forth below) without further action or notice by any Person.

 

(b)       In
the event that the Closing shall not have occurred on or before October 31, 2017, due to the failure to satisfy the conditions
set forth in Sections 7 and 8 above with respect to the Closing, either the Company or the Investor shall have the option to terminate
this Agreement at the close of business on such date or thereafter without liability of any party to any other party (except as
set forth below); provided, however, that the right to terminate this Agreement under this Section 11(b) shall not be available
to any party if such party is then in breach of any covenant or agreement contained in this Agreement or any representation or
warranty of such party contained in this Agreement fails to be true and correct such that the conditions set forth in Section 7(c)
or Section 8(d), as applicable, could not then be satisfied. Any termination of this Agreement pursuant to this Section 11(b) shall
be effected by written notice from the Company to the Investor, or the Investor to the Company, as the case may be, setting forth
the basis for the termination hereof.

 

The representations and warranties and
covenants of the Company and the Investor contained in Sections 3, 4 and 5 hereof, the indemnification provisions set forth in
Section 9 hereof and the agreements and covenants set forth in Sections 11 and 12, shall survive the Closing and any termination
of this Agreement. No termination of this Agreement shall be deemed to release the Company or the Investor from any liability for
intentional misrepresentation or willful breach of any of the Transaction Documents.

 

12.       MISCELLANEOUS.

 

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(a)       Governing
Law Provisions; Currency Provisions. This Agreement shall be governed by and construed in accordance with the internal laws
of the State of New York applicable to agreements made and to be performed in such state, without giving effect to any choice of
law or conflict of law provision or rule. Any legal suit, action or proceeding arising out of or based upon the Purchase Shares,
this Agreement or any of the other Transaction Documents or any of the transactions contemplated hereby or thereby (“Related
Proceedings”) may be instituted in any of the federal courts of the United States of America or any of the courts of
the State of New York, in each case located in the State of New York, Borough of Manhattan, in the City of New York, New York,
U.S.A. (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction
(except for proceedings instituted in regard to the enforcement of a judgment of any such court (a “Related Judgment”),
as to which such jurisdiction is non-exclusive) of any of the Specified Courts in any such suit, action or proceeding. Service
of any process, summons, notice or document by mail to such party’s address set forth above shall be effective service of
process for any suit, action or other proceeding brought in any of the Specified Courts. The parties irrevocably and unconditionally
waive any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and
unconditionally waive and agree not to plead or claim in any of the Specified Courts that any such suit, action or other proceeding
brought in any of the Specified Courts has been brought in an inconvenient forum. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT
IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. The Company has irrevocably appointed Auris Medical Inc.,
which currently maintains an office at 500 North Michigan Avenue, Suite 600, Chicago Illinois 60611, United States of America,
as its agent to receive service of process or other legal summons for purposes of any such suit, action or proceeding that may
be instituted in any of the Specified Courts.

 

With respect to any
Related Proceeding, each party irrevocably waives, to the fullest extent permitted by applicable law, all immunity (whether on
the basis of sovereignty or otherwise) from jurisdiction, service of process, attachment (both before and after judgment) and execution
to which it might otherwise be entitled in the Specified Courts, and with respect to any Related Judgment, each party waives any
such immunity in the Specified Courts or any other court of competent jurisdiction, and will not raise or claim or cause to be
pleaded any such immunity at or in respect of any such Related Proceeding or Related Judgment, including, without limitation, any
immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as amended.

 

The obligations of
the Company pursuant to this Agreement in respect of any sum due to the Investor shall, notwithstanding any judgment in a currency
other than United States dollars, not be discharged until the first business day, following receipt by the Investor of any sum
adjudged to be so due in such other currency, on which the Investor may in accordance with normal banking procedures purchase United
States dollars with such other currency. If the United States dollars so purchased are less than the sum originally due to the
Investor in United States dollars hereunder, the Company agrees as a separate obligation and notwithstanding any such judgment,
to indemnify the Investor against such loss. If the United States dollars so purchased are greater than the sum originally due
to the Investor hereunder, the Investor agrees to pay to the Company an amount equal to the excess of the dollars so purchased
over the sum originally due to the Investor hereunder.

 

All payments made by
the Company under this Agreement, if any, will be made without withholding or deduction for or on account of any present or future
taxes, duties, assessments or governmental charges of whatever nature (other than taxes on net income) imposed or levied by or
on behalf of Switzerland, any other jurisdiction from or through which payment is made, or, in each case, any political subdivision
or any taxing authority thereof or therein unless the Company is or becomes

 

    - 31 -

     

    

required
by law to withhold or deduct such taxes, duties, assessments or other governmental charges. In such event, the Company will pay
such additional amounts as will result, after such withholding or deduction, in the receipt by the Investor and each person controlling
the Investor, as the case may be, of the amounts that would otherwise have been receivable in respect thereof.

 

(b)       Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature or signature delivered by e-mail in a “.pdf” format data file shall be considered due execution and shall
be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

 

(c)       Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

(d)       Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

(e)       Entire
Agreement; Amendment. This Agreement supersedes all other prior oral or written agreements between the Investor, the Company,
their affiliates and Persons acting on their behalf with respect to the subject matter hereof, and this Agreement, the other Transaction
Documents and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered
herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation,
warranty, covenant or undertaking with respect to such matters. The Company acknowledges and agrees that is has not relied on,
in any manner whatsoever, any representations or statements, written or oral, other than as expressly set forth in the Transaction
Documents. No provision of this Agreement may be amended other than by a written instrument signed by both parties hereto.

 

(f)       Notices.
Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile
or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party);
or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses for such communications shall be:

 

If to the Company:

 

Auris Medical Holding AG

Bahnhofstrasse 21 

6300 Zug, Switzerland

Telephone: +41 729 71
94 

Facsimile:

E-mail: 

Attention: 

 

With a copy to (which shall not
constitute notice or service of process):

 

Davis Polk & Wardwell LLP

 

    - 32 -

     

    

	450 Lexington Avenue	 
	New York, New York 10017	 
	Telephone:	(212) 450-4000
	Facsimile:	(212) 701-5800
	E-mail:	sophia.hudson@davispolk.com
	Attention:	Sophia Hudson, Esq.

 

If to the Investor:

 

	Lincoln Park Capital Fund, LLC
	440 North Wells, Suite 410	 
	Chicago, IL 60654	 
	Telephone:	312-822-9300
	Facsimile:	312-822-9301
	E-mail:	jscheinfeld@lpcfunds.com/jcope@lpcfunds.com
	Attention:	Josh Scheinfeld/Jonathan Cope

 

With a copy to (which
shall not constitute notice or service of process):

 

	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
	666 Third Avenue	 
	New York, NY 10017	 
	Telephone:	(212) 692-6267
	Facsimile: 	(212) 983-3115
	E-mail:	ajmarsico@mintz.com
	Attention:	Anthony J. Marsico, Esq.

 

If to the Transfer Agent:

 

	American Stock Transfer & Trust Company, LLC
	6201 15th Avenue	 
	Brooklyn, New York 11219	 
	Telephone:	(718) 921-8200
	Attention: 	Susan Silber

 

or at such other address and/or facsimile
number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other
party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient
of such notice, consent or other communication, (B) mechanically or electronically generated by the sender's facsimile machine
or email account containing the time, date, and recipient facsimile number or email address, as applicable, and an image of the
first page of such transmission or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence
of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with
clause (i), (ii) or (iii) above, respectively.

 

(g)       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and any permitted successors and
assigns of the Company. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Investor, including by merger or consolidation. The Investor may not assign its rights or obligations under this
Agreement.

 

    - 33 -

     

    

(h)       No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and any permitted successors and
assigns of the Company and, except as set forth in Section 9, is not for the benefit of, nor may any provision hereof be enforced
by, any other Person.

 

(i)       Publicity.
The Company shall afford the Investor and its counsel with the opportunity to review and comment upon the form and substance of,
and shall give reasonable consideration to all such comments from the Investor or its counsel on, any press release, SEC filing
or any other public disclosure by or on behalf of the Company relating to the Investor, its purchases hereunder or any aspect of
the Purchase Shares, any of the Transaction Documents or the transactions contemplated thereby, not less than 24 hours prior to
the issuance, filing or public disclosure thereof. The Investor must be provided with a final version of any such press release,
SEC filing or other public disclosure at least 24 hours prior to any release, filing or use by the Company thereof. The Company
agrees and acknowledges that its failure to fully comply with this provision constitutes a material breach of this Agreement by
the Company.

 

(j)       Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

(k)       No
Financial Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Investor that it has not engaged
any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Investor
represents and warrants to the Company that it has not engaged any financial advisor, placement agent, broker or finder in connection
with the transactions contemplated hereby. The Company shall be responsible for the payment of any fees or commissions, if any,
of any financial advisor, placement agent, broker or finder relating to or arising out of the transactions contemplated hereby.
The Company shall pay, and hold the Investor harmless against, any liability, loss or expense (including, without limitation, attorneys'
fees and out of pocket expenses) arising in connection with any such claim.

 

(l)       No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

(m)       Remedies,
Other Obligations, Breaches and Injunctive Relief. The parties’ remedies provided in this Agreement, including, without
limitation, the parties’ remedies provided in Section 9, shall be cumulative and in addition to all other remedies available
to the parties under this Agreement, at law or in equity (including a decree of specific performance and/or other injunctive relief),
no remedy of any party contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and
nothing herein shall limit the parties’ right to pursue actual damages for any failure by either party to comply with the
terms of this Agreement. Each party acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to
the other party and that the remedy at law for any such breach may be inadequate. Each party therefore agrees that, in the event
of any such breach or threatened breach, the other party shall be entitled, in addition to all other available remedies, to an
injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being
required.

 

(n)       Enforcement
Costs. If: (i) this Agreement or any other Transaction Document is placed by the Investor in the hands of an attorney for enforcement
or is enforced by the Investor through any legal proceeding; (ii) an attorney is retained to represent the Investor in any bankruptcy,
reorganization,

 

    - 34 -

     

    

receivership or other proceedings affecting
creditors' rights and involving a claim under this Agreement or any other Transaction Document; or (iii) an attorney is retained
to represent the Investor in any other proceedings whatsoever in connection with this Agreement or any other Transaction Document,
then the Company shall pay to the Investor, as incurred by the Investor, all reasonable costs and expenses including attorneys'
fees incurred in connection therewith, in addition to all other amounts due hereunder. If this Agreement is placed by the Company
in the hands of an attorney for enforcement or is enforced by the Company through any legal proceeding, then the Investor shall
pay to the Company, as incurred by the Company, all reasonable, actual and documented costs and expenses including reasonable attorneys’
fees incurred in connection therewith, in addition to all other amounts due hereunder. It is understood and agreed that any and
all enforcement costs paid by a party to the other party pursuant to this section shall be promptly reimbursed by the receiving
party if a court of competent jurisdiction determines in a final, non-appealable order that the paying party is not in breach of
this Agreement.

 

(o)       Waivers.
No provision of this Agreement may be waived other than in a written instrument signed by the party against whom enforcement of
such waiver is sought. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof
or of any other right, power or privilege.

 

(p)       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 Purchase Shares.

 

* * * * *

 

    - 35 -

     

    

IN WITNESS WHEREOF,
the Investor and the Company have caused this Agreement to be duly executed as of the date first written above.

 

	 	THE COMPANY:
	 	 	 
	 	AURIS MEDICAL HOLDING AG
	 	 	 
	 	By:	/s/ Thomas Meyer
	 	Name:	Thomas Meyer
	 	Title:	Chief Executive Officer

 

 

	 	INVESTOR:
	 	 	 
	 	LINCOLN PARK CAPITAL FUND, LLC
	 	BY: LINCOLN PARK CAPITAL, LLC
	 	BY: ROCKLEDGE CAPITAL CORPORATION
	 	 	 
	 	 	 
	 	By:	/s/ Josh Scheinfeld
	 	Name:	Josh Scheinfeld
	 	Title:	President

    - 36 -

     

    

EXHIBITS

 

	Exhibit A	Subscription Form
	Exhibit B	Information About Investor Furnished to the Company

     

     

    

EXHIBIT A

 

SUBSCRIPTION FORM

 

Zeichnungsschein

 

Subscription Form

 

_____________________________________________________________________

 

Die Unterzeichnende

 

The undersigned 

 

Lincoln Park Capital Fund LLC, 440 N. Wells Street, Suite
410, Chicago, IL 60654, USA,

 

handelnd im eigenen Namen,

acting in its own name,

 

hat Kenntnis genommen:

 

takes note of:

 

(i) von den Statuten von Auris Medical
Holding AG, Zug (die Gesellschaft) vom 13. April 2017, (ii) vom Generalversammlungsbeschluss der Gesellschaft vom 13. April
2017 betreffend die Ermächtigung des Verwaltungsrates der Gesellschaft, das Aktienkapital jederzeit bis zum 13. April
2019 im Maximalbetrag von CHF 8‘860‘000.00 durch Ausgabe von höchstens 22‘150‘000 vollständig
zu liberierenden Namenaktien mit einem Nennwert von je CHF 0.40 zu erhöhen, und (iii) vom Beschluss des Verwaltungsrates
der Gesellschaft vom [Datum] 2017, wonach gestützt auf Artikel 3a der Statuten
über das genehmigte Kapital beschlossen wurde, das Aktienkapital in einem oder mehreren Schritten von CHF 17‘731‘881.60
um maximal CHF 8‘860‘000.00 auf maximal CHF 26‘591‘881.60 durch Ausgabe von maximal 22'150'000

 

neuen Aktien mit einem Nominalwert von
CHF 0.40 pro Aktie zu erhöhen, zu einem Ausgabebetrag von CHF 0.40 bzw. einem Preis (d.h. inkl. Agio) von CHF [Betrag]
pro Aktie, d.h. insgesamt um maximal CHF 8‘860‘000.00 (bzw. einem Gesamtausgabepreis von total CHF [Betrag]);

 

(i) the articles of association of Auris
Medical Holding AG, Zug (the Company) dated April 13, 2017, (ii) the resolution of the general meeting of shareholders of
the Company dated April 13, 2017, authorizing the Board of Directors of the Company to increase, at any time until April 13, 2019,
by a maximum amount of CHF 8,860,000.00 by issuing a maximum of 17,731,881.60 fully paid-up registered shares with a par value
of CHF 0.40 each, and (iii) the resolution of the Board of Directors of the Company dated [date]
2017, pursuant to which the share capital is to be increased, in one or in more steps, from CHF 17‘731‘881.60
by a maximum amount of CHF 8,860,000.00 to a maximum amount of CHF 26,591,881.60 through the issuance of a maximum amount
of 17,731,881.60 new registered shares with a par value of CHF 0.40 each, at the issue amount of CHF 0.40 per share (i.e. at an
price incl. surplus (agio) of CHF [amount] per shares), i.e., for an aggregate issue
amount of up to CHF 8,860,000.00 (and total price of CHF [amount]);

 

     

     

    

und / and

 

		1	zeichnet hiermit [Anzahl] neue Namenaktien zum Nominalwert
von je CHF 0.40; und

 

hereby subscribes for [number] new registered shares with a par value of CHF 0.40
each; and

 

		2	verpflichtet sich hiermit bedingungslos, auf jede gezeichnete Aktie (i) eine Einlage von CHF 0.40,
insgesamt somit CHF [Betrag], zu leisten auf das Kapitaleinzahlungskonto bei
der UBS Switzerland AG, Bärenplatz 8, Postfach, 3011 Bern (Kontonummer [Details];
Konto lautend auf: AURIS MEDICAL HOLDING AG KAPITALERHÖHUNG), sowie (ii) Agio im Gesamtbetrag von CHF [Betrag]
auf das Gesellschafts-Konto bei der UBS Switzerland AG, Bärenplatz 8, Postfach, 3011 Bern (Kontonummer [Details];
Konto lautend auf: [Name]),

 

herewith unconditionally
undertakes to pay-in the (i) contribution of CHF 0.40 for each subscribed share, thus in total CHF [amount],
to the capital increase account with UBS Switzerland AG, Bärenplatz 8, P.O. Box, 3011 Berne (bank account number [number];
account in the name of: AURIS MEDICAL HOLDING AG KAPITALERHÖHUNG), and (ii) the capital surplus (agio) in the total amount
of CHF [amount] to the company account with UBS Switzerland AG, Bärenplatz 8,
P.O. Box, 3011 Berne (bank account number [number]; account in the name of: [name]).

 

Dieser Zeichnungsschein ist gültig bis zum [Datum].

 

This subscription form is valid until
[date]. 

 

[Unterschriften
auf der nächsten Seite]

 

[Signatures
on next page]

 

     

     

    

[Place],
_____________________ 2017

 

Lincoln Park Capital Fund LLC

 

 

	Name:	 	Name:

     

     

    

EXHIBIT B

 

Information About The Investor Furnished
To The Company By The Investor

Expressly For Use In Connection With
The Initial Prospectus Supplement

 

Information With Respect to Lincoln
Park Capital

 

As of October 10, 2017,
Lincoln Park Capital Fund, LLC, beneficially owned 1,744,186 of our common shares. Josh Scheinfeld and Jonathan Cope, the Managing
Members of Lincoln Park Capital, LLC, the manager of Lincoln Park Capital Fund, LLC, are deemed to be beneficial owners of all
of the common shares owned by Lincoln Park Capital Fund, LLC. Messrs. Cope and Scheinfeld have shared voting and investment power
over the common shares being offered under the prospectus supplement filed with the SEC in connection with the transactions contemplated
under the Purchase Agreement. Lincoln Park Capital, LLC is not a licensed broker dealer or an affiliate of a licensed broker dealer.

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