Document:

Exhibit
10.22

 

“Portions of this exhibit have been redacted in compliance with Regulation
S-K Item 601(b)(10)(iv) because it is both (i) not material and (ii) and the type of information that is confidential.”

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

TIME & MATERIAL SUBCONTRACT

 

NUMBER PO-0018098

 

between

 

Perspecta Engineering Inc.

___________________________ 

________________________

 

AND

 

Corvus Consulting, LLC 

__________________________

________________________

 

    	Perspecta 11/2018	Page 1 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

Modification 13 Change Summary:

 

		►	Modify Article II: SERVICES, SUPPLIES AND TOTAL PRICE

 

		o	Section D- Labor Categories and Rates

		■	Incorporate the Labor Category Cyber Intelligence Analyst III and the associated rate

 

		o	Section F: Funds

		■	Increase Option Year 3 Labor Funding CLIN 401 from $00.00 by $145,508.00 to $145,508.00

		■	Increase Total Subcontract Funding from $18,918,552.45 by $145,508.00 to $18,918,552.45

 

Except as modified herein, all other terms, conditions, and requirements
currently applicable to this subcontract remain in full force and effect.

 

    	Perspecta 11/2018	Page 2 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

CONTENTS

 

	AGREEMENT	 	 
	 	 	 
	ARTICLE I	SCOPE OF WORK AND LIST OF EXHIBITS 	 
	ARTICLE II	SERVICES, SUPPLIES AND TOTAL PRICE	 
	ARTICLE III	PERIOD OF PERFORMANCE, PLACE OF PERFORMANCE AND DELIVERY SCHEDULE	 
	ARTICLE IV	PAYMENTS	 
	ARTICLE V	 F.O.B. POINT, PACKAGING, SHIPMENT AND ROUTING 	 
	ARTICLE VI 	INSPECTION AND ACCEPTANCE	 
	ARTICLE VII	CLOSEOUT	 
	ARTICLE VIII	REPORTS AND DOCUMENTATION	 
	ARTICLE IX	PREDETERMINATION OF RIGHTS IN DATA AND COMPUTER SOFTWARE	 
	ARTICLE X	DPAS RATING	 
	ARTICLE XI	GOVERNMENT AND/OR PERSPECTA FURNISHED PROPERTY 	 
	ARTICLE XII	 COST ACCOUNTING STANDARDS	 
	ARTICLE XIII	SUBCONTRACT AUTHORITY AND NOTIFICATION 	 
	ARTICLE XIV	RECRUITMENT OF TEAM MEMBER EMPLOYEES	 
	ARTICLE XV	 ACCOUNTING, BILLING, PROPERTY AND PURCHASING SYSTEMS 	 
	ARTICLE XVI	ORGANIZATIONAL CONFLICT OF INTEREST (OCI)	 
	ARTICLE XVII	INSURANCE	 

 

TERMS AND CONDITIONS/SPECIAL PROVISIONS/OPTIONAL ARTICLES SIGNATURE
PAGE

 

    	Perspecta 11/2018	Page 3 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

In consideration of the promises hereinafter set forth, the parties agree:

 

AGREEMENT

 

This Time and Material Subcontract Agreement (along with
all exhibits hereto, and any schedules, appendices and attachments attached thereto or otherwise incorporated by reference therein,
the “Agreement”), is entered into with effect June 3, 2019, by and between Perspecta Engineering Inc., a Delaware corporation
with an office at 15050 Conference Center Drive, Chantilly, VA 20151 (hereinafter, “Perspecta” or “Buyer”),
and Corvus Consulting, LLC., a Virginia corporation with an office at 360 Central Ave., Suite 800, Saint Petersburg, FL 33701 (hereinafter,
"Subcontractor" or “Seller”). References herein to a “party” shall mean, as context requires,
Perspecta or Subcontractor, and references to “parties” shall mean both of Perspecta and Subcontractor.

 

Perspecta is the prime contractor under that certain
U.S. Government Prime Contract Number GS00Q14OADU128 (the “Prime Contract”) / Delivery Order 47QFCA19F0033. Perspecta
desires to engage Subcontractor, pursuant to the Prime Contract, to deliver certain products and/or services to Perspecta for the
benefit of the U.S. Government agency that issued the Prime Contract (the “Customer”). Subcontractor desires to provide
such products and/or services.

 

This Subcontract supersedes in its entirety the Letter
Contract PO-0018098 between the parties dated June 4, 2019; as well as subsequent modifications to that Letter Contract. Any action
taken in accordance with the authorization previously contained in that Letter Contract shall be considered as an action taken
in performance of this subcontract. This Subcontract integrates, merges, and supersedes any prior offers, negotiations, and any
other agreements concerning the subject matter hereof and constitutes the entire agreement between the parties.

 

The North American Industry Classification System (NAICS)
code for this acquisition is 541990. The small business size standard is $15M.

 

The Product Service Code (PSC) for this acquisition is
R499.

 

ARTICLE I - SCOPE OF WORK AND LIST OF EXHIBITS

 

The Subcontractor, in the capacity of an independent subcontractor, and not
as an agent of Perspecta, shall provide, in accordance with the terms and conditions set forth herein, the personnel, services,
materials, equipment, and facilities (collectively referred to as “Work”) necessary for the proper accomplishment of
the tasks specified in the Exhibits cited below and other requirements identified elsewhere in this subcontract. All deliverable
“Work” set forth herein shall be delivered in strict accordance with the delivery schedule set forth in Article III
– Period of Performance, place of performance and delivery schedule.

 

Perspecta will comply with the laws and regulations that relate to the receipt
and use of government information. Even if not specifically covered by law or regulation, the Corporation prohibits receipt or
use by its Subcontractors, of government or privately-owned information when such possession or use is not consistent with the
integrity of the U.S. government competitive bidding system or when there is reason to believe that Perspecta or the Subcontractor
should not possess such information. Subcontractors are required to notify the Perspecta Subcontract Administrator if they
are requested by any Perspecta employee to provide Government or third party information.

 

    	Perspecta 11/2018	Page 4 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

No Subcontractor will solicit, accept, use, or possess any:

 

		·	Document bearing a legend indicating that: (a) the document originated with or belongs to another
company; (b) the document is of a competitive nature; and/or (c) receipt, possession and/or use of the information is prohibited

		·	Document (with or without a legend) or information that is part of or relates to the contents of another company's proposal
at any state of competition.

		·	Government document of a source selection or procurement planning nature that bears a legend indicating that release outside
the government is not authorized.

		·	Government document or extracts from a document that contains source selection or procurement planning information not containing
a restrictive legend, if there is reason to believe release has not been approved by the government.

		·	Information of the government or a business organization, whether a competitor or not, where it is clear that release of that
information is unauthorized or in circumstances where there is reason to believe that such information cannot lawfully be in Perspecta's
or the Subcontractor’s possession.

 

At and upon the Effective Date this Agreement consists of the following exhibits
(the “Exhibits”). The parties acknowledge and agree that certain of the Exhibits, and certain appendices and other
attachments to the Exhibits, may be pending completion and/or subject to revision pursuant to the requirements of the Customer
under the Prime Contract. To the extent any Exhibit, or any attachment or appendix thereto, is incomplete on, or otherwise subject
to revision following, the Effective Date, the parties agree to act promptly and in good faith to complete, amend or revise such
Exhibit(s), it being understood that the obligations of the Customer under the Prime Contract shall in all cases determine the
scope and content of such additions, amendments or revisions. For the avoidance of doubt, and subject to the determinative application
of the Prime Contract requirements, in the event Perspecta determines that any such additions or revisions require the execution
of a new or additional exhibit, the parties shall promptly meet to discuss and finalize such exhibit, which shall, upon mutual
written agreement of the parties, be deemed an “Exhibit” for purposes hereof.

 

		EXHIBIT A	Perspecta Engineering Inc. document titled “Subcontractor
Statement of Work for Corvus Consulting, LLC., ARCYBER Cyberspace Operations Support Program”, Revision 01, dated 9/18/19;
except the Base Period start date in Part 3.0 is changed from 4/08/19 to 6/03/19

 

		EXHIBIT B	Perspecta General Provisions and FAR Flowdown Provisions
document CorpDoc 4 T&M (Aug 2019)

 

		EXHIBIT C	Perspecta Nondisclosure Agreement No. 18-NDA-CDG-0242
with Corvus Consulting, LLC., effective 4/19/19. The provisions therein will continue to apply until the end of the term of this
Subcontract.

 

		EXHIBIT D	Oasis Pool 1 Flow Downs, dated 9/16/18

 

		EXHIBIT E	ARCYBER Flow Downs by Reference (Full Text), dated 9/27/19

 

    	Perspecta 11/2018	Page 5 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

		EXHIBIT F	Department of Defense Contract Security Classification
Specification, DD Form 254 Rev. 2, dated 6/20/19

 

		EXHIBIT G	ARMY Cyber (ARCYBER) Cyberspace Operations Support Task
Order Request No.47QFCA19F0033 OCI Mitigation Plan, dated December 9, 2019

 

If this Subcontract is primarily for the purpose of furnishing service, no
subcontract shall be made by the Seller with any other Party for furnishing all or substantially all of the Work or services herein
subcontracted for without the advance written approval of Perspecta, but this provision shall not be construed to require the approval
of contracts of employment between the Seller and Personnel assigned for services hereunder.

 

ARTICLE II - SERVICES, SUPPLIES AND TOTAL PRICE

 

		A.	Seller shall, in accordance with the terms and conditions set forth hereafter, furnish the necessary qualified personnel, services,
travel, facilities, and materials for completion of the contractual effort, subject to the continuing approval of the Buyer. Buyer
reserves the right to change its staffing requirements and to direct the seller to remove, transfer and/or replace any Seller personnel
that are not meeting the requirements for the position.

 

		B.	Subcontractor will be reimbursed for costs for transportation, lodging, meals and incidental expenses
in accordance with FAR 31.205-46, if authorized under the subcontract. Reimbursement shall be made at Subcontractor’s cost,
without profit, and shall be supported by the Seller’s invoice as prescribed by the applicable regulation. All travel must
receive prior authorization from the Perspecta Subcontract Administrator or his/her designee.

 

		C.	The estimated total Subcontract value hereunder is as set forth in Table 1 below.
The values set forth in Table 1 are estimates, only, and subject at all times to the terms of Article II E., and Perspecta’s
right to elect not to exercise an option under the Prime Contract. For the avoidance of doubt, the cost estimates set forth herein
do not establish a commitment on the part of Perspecta, or otherwise require Perspecta to expend the full amounts expressed in
Table 1 during the term of this Agreement, including any option elections, extensions or renewals of this Agreement.

 

 

	Period	 	Period of Performance	 	 	Hours	 	 	Labor Value	 	 	Travel/ODC
 Value
	 	 	Estimated
 Subcontract Value
	 
	Base Period	 	 	6/03/2019-2/11/2020	 	 	 	_______	 	 	 	_______	 	 	 	_______	 	 	$	3,362,495.73	 
	Option Year 1	 	 	2/12/2020-2/11/2021	 	 	 	_______	 	 	 	_______	 	 	 	_______	 	 	$	6,142,925.56	 
	Option Year 2	 	 	2/12/2021-2/11/2022	 	 	 	_______	 	 	 	_______	 	 	 	_______	 	 	$	8,562,561.64	 
	Option Year 3	 	 	2/12/2022-2/11/2023	 	 	 	_______	 	 	 	_______	 	 	 	_______	 	 	$	6,169,124.64	 
	Option Year 4	 	 	2/12/2023-2/11/2024	 	 	 	_______	 	 	 	_______	 	 	 	_______	 	 	$	6,291,907.13	 
	Totals	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	30,529,014.70	 

Table 1

 

		D.	The negotiated labor categories and associated labor hour rates that will pertain to this subcontract are set forth in Table
2 below.

 

    	Perspecta 11/2018	Page 6 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

	 	 	 	 	Hourly Labor Rate Table
		 		 	Base	 	OY1	 	OY2	 	OY3	 	OY4
	Labor Category	 	Location	 	6/03/2019-2/11/2020	 	2/12/2020-2/11/2021	 	2/12/2021-2/11/2022	 	2/12/2022-2/11/2023	 	2/12/2023-2/11/2024
	Cyber Intelligence Analyst III	 	Gordon	 	________	 	________	 	________	 	________	 	________
	Cyber Operational Planner II	 	Arlington	 	________	 	________	 	________	 	________	 	________
	Cyber Operational Planner II	 	Gordon	 	________	 	________	 	________	 	________	 	________
	Cyber Operational Planner III	 	Arlington	 	________	 	________	 	________	 	________	 	________
	Cyber Operational Planner III	 	Gordon	 	________	 	________	 	________	 	________	 	________
	Cyber Operations Research Analyst II	 	Arlington	 	________	 	________	 	________	 	________	 	________
	Subject Matter Expert II (SME II)	 	Fort Gordon (CCOE)	 	________	 	________	 	________	 	________	 	________
	Subject Matter Expert II (SME II)	 	Georgia (remote)	 	________	 	________	 	________	 	________	 	________
	Subject Matter Expert II (SME II)	 	Taylor Bldg	 	________	 	________	 	________	 	________	 	________
	Subject Matter Expert II (SME II)	 	Pentagon	 	________	 	________	 	________	 	________	 	________
	Subject Matter Expert III (SME III)	 	Virginia (remote)	 	________	 	________	 	________	 	________	 	________
	Subject Matter Expert III (SME III)	 	Pentagon	 	________	 	________	 	________	 	________	 	________
	Subject Matter Expert III (SME III)	 	California (remote)	 	________	 	________	 	________	 	________	 	________

Table 2

 

		E.	Perspecta reserves the unilateral right to exercise any part, all, or none of the options under
the Prime Contract identified in Table 3, below. The estimated costs and associated fees for the option years one
are set out in Table 1 above for informational purposes, only. Perspecta may exercise an option by written notice
to Subcontractor at any time up to and including the Latest Exercise Date set out in Table 3. If Perspecta exercises
an option, the Subcontractor shall perform the work specified for such option at the negotiated costs and fee provided under the
option. Subcontractor acknowledges and agrees that Perspecta shall have no obligation or liability to Subcontractor under or with
respect to any option period under the Prime Contract in the event Perspecta determines not to exercise such option or options
under the Prime Contract.

 

	Period	 	Period of Performance	 	Latest Exercise Date	 	Status
	Option Year 1	 	2/12/2020-2/11/2021	 	2/11/2020	 	Exercised
	Option Year 2	 	2/12/2021-2/11/2022	 	2/11/2021	 	Exercised
	Option Year 3	 	2/12/2022-2/11/2023	 	2/11/2022	 	Exercised
	Option Year 4	 	2/12/2023-2/11/2024	 	2/11/2023	 	Not Exercised

Table 3

 

		F.	LIMITATION OF FUNDS (INCREMENTAL FUNDING FOR T&M CONTRACTS)

 

This Subcontract will be incrementally funded by Perspecta.
Of the total price of this Subcontract, the sum of $19,064,060.45 (refer to table below for funding limits by CLIN)
is available for payment for the performance by the Subcontractor under this Agreement. The period of performance estimated to
be covered by the allotted amount specified above is through 05/30/2022.

 

When expenditures reach 85% of the incremental funding
identified above, Seller shall notify the Buyer of the approach of the expenditure limit and provide the Buyer with a future projection
for when the funding will be completely depleted. The notification must be in writing and is recommended to be communicated electronically.

 

Any expenditures or obligations incurred by the Seller
in excess of the funded amount shall be at the Seller’s own risk.

 

    	Perspecta 11/2018	Page 7 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

	Period	 	Period of Performance	 	CLIN	 	Labor Funding	 	Travel/ODC
 Funding
	 	Subcontract
 Funding
	 
	 	 	 	 	0001 (Labor)	 	_______	 	_______	 	$	74,000.00	 
	Base Period	 	6/03/2019-2/11/2020	 	0002 (Labor)	 	_______	 	_______	 	$	3,161,742.53	 
	 	 	 	 	0003 (Travel)	 	_______	 	_______	 	$	30,000.00	 
	 	 	 	 	201 (Labor)	 	_______	 	_______	 	$	438,592.46	 
	Option Year 1	 	2/12/2020-2/11/2021	 	202 (Labor)	 	_______	 	_______	 	$	5,674,333.10	 
	 	 	 	 	203 (Travel)	 	_______	 	_______	 	$	30,000.00	 
	 	 	 	 	301 (Labor)	 	_______	 	_______	 	$	0.00	 
	 	 	 	 	302 (Labor)	 	_______	 	_______	 	$	7,056,514.11	 
	Option Year 2	 	2/12/2021-2/11/2022	 	303 (Travel)	 	_______	 	_______	 	$	29,018.76	 
	 	 	 	 	304 (ODC)	 	_______	 	_______	 	$	450.00	 
	 	 	 	 	401 (Labor)	 	_______	 	_______	 	$	145,508.00	 
	Option Year 3	 	2/12/2022-2/11/2023	 	402 (Labor)	 	_______	 	_______	 	$	2,403,901.49	 
	 	 	 	 	403 (Travel)	 	_______	 	_______	 	$	20,000.00	 
	 	 	 	 	404 (ODC)	 	_______	 	_______	 	$	0.00	 
	Totals	 	 	 	 	 	_________	 	_________	 	$	19,064,060.45	 

 

ARTICLE III – PLACE OF PERFORMANCE, PERIOD OF PERFORMANCE AND
DELIVERY SCHEDULE

 

		A.	All work hereunder shall be performed at Customer facilities, and other locations as mutually may be agreed upon by Perspecta
and Subcontractor. During the life of this Subcontract, all Subcontractor services provided at Fort Belvoir, VA will be relocating
to Fort Gordon, GA.

 

		B.	Subcontractor shall commence performance on or about 6/03/19, and shall complete all performance on or before 2/11/24 (or last
option exercised) in conformance with Exhibit A, Statement of Work.

 

ARTICLE IV – PAYMENTS

 

The work performed on this subcontract will be billed through the
Deltek Time and Expense System (TESS) at https://cpweb.peraton.com

 

Timely invoicing from Seller is expected and
Perspecta reserves the right to disallow untimely invoicing. Untimely invoice is defined as an invoice presented to Perspecta for
payment of work performed greater than 90 days from that performance period. Such definition under this paragraph shall not apply
to DCAA/DCMA rate adjustments.

 

Seller will implement and utilize TESS, which
details the work performed by the appropriate charge number. This is a web-based system that is accessible through the internet.
Perspecta will provide each Seller employee with Deltek TESS access and establish the DeltekTESS role in order to enter billable
time into the system.

 

For services performed under this subcontract,
Perspecta shall pay Seller in accordance with the Article II negotiated rate(s) and all other associated provisions set forth in
this subcontract. Any negotiated changes to hourly rates shall be executed via a subcontract modification.

 

    	Perspecta 11/2018	Page 8 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

Direct labor hours are those productive
hours inclusive of approved overtime expended by Seller personnel performing work under this subcontract that are charged as direct
labor under the Seller’s established accounting policy and procedures. This term does not include sick leave, vacation leave,
or any kind of administrative leave, but does include direct labor hours provided under level-of-effort subcontracts.

 

Payment of Premiums: There is NO overtime-premium
provision under this subcontract.

 

Other Direct Costs (ODC), such as travel
will be submitted by the designated Seller representative utilizing the Deltek TESS system, entering the information in the Expense
portion of TESS. Data in support of each Expense submission shall be provided to the Program Finance representative for the program
upon submission, and prior to approval of said submission. Expenses should be submitted monthly at a minimum (if applicable).

The Seller will notify Perspecta in writing
of changes to billing rates associated with the subcontract within 15 to 30 days PRIOR to the effective date of the rate
change.

 

Every Seller employee who directly charges
this program (or approved data entry designee), regardless of that employee’s location (e.g., Perspecta, Government, or Seller’s
facility), shall submit a weekly labor submission via Deltek TESS.

 

Perspecta will provide each Seller employee
with access to Deltek TESS and create their role so they can enter their billable time into Deltek TESS weekly. Seller shall identify
a point of contact as the primary approver and an alternate approver who will have responsibility for labor submission approvals
and submission to Perspecta.

 

Seller shall submit and approve submissions
by Friday, 9:00 PM EST in order to be processed in the weekly payment run and support Earned Value Management requirements.
Seller may delegate the responsibility to enter Deltek TESS claims to a backup “data entry” employee to ensure claims
are submitted in time for weekly processing as the electronic Deltek TESS invoice used by Perspecta to pay the Seller for services
rendered.

 

In utilizing the Deltek TESS system, the Seller’s
employees (biller, data entry, and approver) attest that, to the best of their knowledge, the hours recorded and the charge number
entered are consistent with the work performed.

 

Seller shall identify a representative to be
granted TESS vendor labor approval role. A cumulative invoice will then be available to the Seller's approver for all approved
claims by Monday of the week following processing of the submission. Any labor submission not processed in the current week will
default to processing with the week it is approved.

 

The Deltek TESS work week runs from Saturday
to Friday.

 

Payment terms are Net 45 days for the
initial payment, and then weekly after the payment. Only submissions approved in Deltek TESS prior to the Friday, 9:00 PM
deadline will be processed for payment. Payment shall be made via ACH/electronic funds transfer.

 

Seller shall reconcile weekly TESS invoice
reports against Seller company timekeeping records to ensure accuracy of the submissions. Seller shall correct any labor submission
errors online within one week of detection. Corrections detected beyond this period will be made in the current reporting period.

 

Perspecta will conduct random quarterly audits
on Seller’s timekeeping records against Deltek TESS invoice reports to ensure accuracy and support Perspecta program requirements.
Seller shall make available any documentation required to support these audits. Perspecta will provide an audit summary to the
Seller when the audit is complete.

 

    	Perspecta 11/2018	Page 9 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

Any problems associated with the application(s)
or system or questions regarding Deltek TESS should be reported immediately to Perspecta Buyer or Subcontract Administrator. All
parties will be notified via email of any changes to this contact information.

 

Data in support of each labor submission shall
be maintained and available for audit by the Government for 3 years.

 

The parties acknowledge that the Seller employees
entering data into Deltek TESS are not authorized to generate invoices under Government contracts pursuant to Perspecta’s
Government approved billing systems. Resultant Deltek payments will constitute Perspecta interim financing for services rendered
subject to final verification by Seller. An exception may be made by Perspecta to allow Seller to designate alternate personnel
to enter labor data. Seller shall submit request for this exception in writing. Labor data may be input by a Seller representative
vs. the Seller employee performing the work.

 

ARTICLE V - F.O.B. POINT, DELIVERY LOCATION AND ROUTING - RESERVED

 

ARTICLE VI - INSPECTION AND ACCEPTANCE - RESERVED

 

ARTICLE VII- CLOSEOUT

 

Seller shall, as requested by the BUYER or within thirty
(30) months from the end of the period of performance (as stated in Article III) or, at final acceptance, complete, sign and return
the Subcontract Closeout Package (FRM-25-01) with final invoice. If a DCAA Assist Audit is required, the final invoice will be
processed for payment upon completion of the audit in accordance with the audit findings. At that time, a revised Subcontract Closeout
Package (FRM-25-01) and final invoice may be required to be submitted in accordance with the DCAA Assist Audit findings.

 

ARTICLE VIII - REPORTS AND DOCUMENTATION

 

		A.	Consistent with this Time and Material Contract, Subcontractor shall provide the following

 

	Item	 	Description	 	Qty.	 	Date Required
	01	 	Monthly Status Report	 	1	 	5th of Each Month
	02	 	Subcontract Closeout Package, FRM-25-01	 	1	 	Concurrent with Final Invoice
	03	 	Documentation as required by Exhibit A Statement of Work	 	As Required	 	Per Exhibit A
	04	 	Insurance Certificate	 	1	 	Annually (if performing on Perspecta or Gov’t property)
	05	 	Billing Account Worksheet	 	As Required	 	
        As employees leave/start

        Program or rate changes

 

    	Perspecta 11/2018	Page 10 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

		B.	All reports and documentation specified hereinabove shall be addressed to the cognizant Subcontract Administrator.

 

ARTICLE IX - PREDETERMINATION OF RIGHTS IN DATA AND COMPUTER SOFTWARE

 

		A.	All technical data and computer software that is deliverable, or subject to delivery, by the Subcontractor
to Perspecta or to the Government under this Subcontract, shall be furnished with unlimited rights to the Government, except as
provided in Paragraph B below.

 

		B.	The following items of technical data and computer software shall be furnished with limited or
restricted rights:

 

	Technical Data or Computer 

Software to be Furnished with 

Restrictions	 	Basis for Assertion	 	Asserted Rights 

Category	 	Name of Person 

Asserting Restrictions
	NONE AT THIS TIME	 	 	 	 	 	 

 

		C.	To the extent that additional technical data or computer software is later discovered to be of
a Limited or Restricted Rights nature, as defined in the “Rights in Technical Data and Computer Software” clause (DFARS
252.227-7013), the foregoing list may be amended upon notification to Perspecta and the U.S. Government.

 

ARTICLE X – DPAS RATING - RESERVED

 

ARTICLE XI -GOVERNMENT AND/OR PERSPECTA FURNISHED PROPERTY - RESERVED

 

ARTICLE XII - COST ACCOUNTING STANDARDS - RESERVED

 

ARTICLE XIII - SUBCONTRACT AUTHORITY AND NOTIFICATION

 

Sole authority to make changes in or amendments to this
Subcontract and to effect deviations from the work herein specified is hereby vested in the authorized representative of Perspecta's
Subcontract Administrator and must be made in writing. Unauthorized changes, alterations or modifications to this Subcontract will
not be considered for equitable adjustment. Changes to the Subcontract or its scope shall not be made without the express written
authorization of the designated Perspecta Subcontract Administrator. Except as otherwise specifically provided herein, any notices
to be furnished by Subcontractor to Perspecta, or by Perspecta to Subcontractor shall be sent by mail or electronic means as follows:

 

    	Perspecta 11/2018	Page 11 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

Perspecta Engineering Inc.

_____________________

_______________________

________________________
________________

______

___________________

 

and

 

Corvus Consulting, LLC

_____________________

_______________________

________________________
________________

______

___________________

 

ARTICLE XIV – RECRUITMENT OF TEAM MEMBER EMPLOYEES

 

		A.	It is expressly agreed and understood by the parties that during the course of this Agreement,
neither party will actively solicit personnel of the other party who are engaged in performance of this Agreement for the purpose
of inducing them to join such other party’s employ. The foregoing shall not prohibit either party from having employment
discussions with, or hiring the employees of the other party who: 1) Have terminated employment with the other party of their own
volition; 2) Respond to or apply for positions offered through the normal process of general public advertisement; or 3) Are hired
as a result of the use of an independent employment agency (so long as the agency was not directed to solicit such person) not
specifically directed to employees of the parties.

 

		B.	Use of Former Program Staff Prohibited - Subcontractor shall not assign to work on the Program
any individual who has performed work on the Program under a different subcontractor, without the advance expressed written consent
of the cognizant subcontract administrator. Any and all associated costs shall be deemed to be unallowable and therefore not billable,
unless and until the cognizant subcontract administrator approves. Such approval, if provided, would be for a billable hourly rate
no greater than the hourly rate billed to the program by the individual’s prior employer.

 

		C.	Second Tier Subcontractor Prohibition - The use of second tier subcontractors is strictly prohibited
and any and all associated costs shall be deemed to be unallowable and therefore not billable without the advance expressed written
consent of the cognizant subcontract administrator.

 

ARTICLE XV – ACCOUNTING, BILLING, PROPERTY AND PURCHASING SYSTEMS

 

Subcontractor agrees to promptly notify Buyer, during
the term of this Agreement, of any changes to its accounting and billing systems and/or related internal control structure that
would adversely affect its ability to report hours delivered and costs incurred accurately and completely or adversely affect its
ability to acquire goods and services, or to control government acquired property without prejudice to the government.

 

    	Perspecta 11/2018	Page 12 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

ARTICLE XVI – ORGANIZATIONAL CONFLICT OF INTEREST (OCI)

 

Seller certifies that they have no knowledge of any OCI
that would ensue during performance of this subcontract. If during performance Seller becomes aware of a potential OCI, Seller
will promptly provide a disclosure statement which describes all relevant information concerning any past, present, or planned
interests bearing on whether it (including Seller's chief executives and directors, or any proposed consultant or lower-tier subcontractor)
may have an existing or potential OCI and will cooperate with Perspecta to mitigate the conflict.

 

ARTICLE XVII – INSURANCE

 

Seller shall obtain and maintain Workers Compensation,
commercial general liability, and automobile liability (third party bodily injury and property damage liability) insurance in accordance
with Part 17 of Buyer’s CorpDoc 4 T&M general provisions document incorporated herein as Exhibit B. A Certificate of
Liability Insurance shall be forwarded to the Subcontract Administrator (upon such request), with evidence of Perspecta being named
as an additional insured.

 

Defense Base Act (DBA), FAR 52.228-3, is applicable to this order. The Seller
shall (a) provide, before commencing performance under this contract, such workers’ compensation insurance or security as
the Defense Base Act (42 U.S.C. 1651, et seq.) requires and (b) continue to maintain it until performance is completed.

 

TERMS AND CONDITIONS/SPECIAL PROVISIONS/OPTIONAL ARTICLES

 

		A.	TERMS AND CONDITIONS

 

		1.	Perspecta General Provisions and FAR Flowdown Provisions document CorpDoC 4 T&M (Aug 2019)

 

		2.	ARCYBER Flow Downs (see Part B below, and EXHIBIT E); as well as EXHIBIT D – Oasis Pool 1 Flow Downs

 

		3.	Additional or different terms or conditions proposed by the Subcontractor shall be void and of no effect unless accepted in
writing and included herein.

 

		B.	SPECIAL SUBCONTRACT PROVISIONS

 

This contract incorporates one or more clauses by reference,
with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text
available. The full text of each clause may also be accessed electronically at http://acquisition.gov/far.
In all the Articles below, where the clause indicates “Government” this shall also mean “Perspecta Engineering
Inc.” and where the clause indicates “Contractor” this shall mean “Subcontractor”. However, the terms
“Government” and “Contracting Officer” do not change; (i) in the terms “Government Property”,
“Government–Owned Property”, “Government Furnished Equipment” or “Government-Owned Equipment”;
(ii) when Perspecta’s customer (“Customer”) or the Customer’s Contracting Officer or his/her access to
proprietary financial information or other proprietary data is required; or (iv) when title to property is to be transferred directly
to the Customer:

 

    	Perspecta 11/2018	Page 13 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

	FAR	TITLE	DATE
	52.203-6	Restrictions on Subcontractor Sales to the Government	SEPT 2006
	52.204-21	
        Basic Safeguarding of Covered Contractor Information

        Systems
	JUN 2016
	52.215-12	Subcontractor Cost or Pricing Data	OCT 2010
	52.215-22	
        Limitations on Pass-Through Charges—Identification of

        Subcontract Effort
	OCT 2009
	52.215-23	Limitations on Pass-Through Charges	OCT 2009
	52.222-2	Payment for Overtime Premiums Fill-in: $0	JUL 1990
	52.222-29	Notification of Visa Denial	APR 2015
	52.222-41	Service Contract Labor Standards	MAY 2014
	52.222-55	Minimum Wages Under Executive Order 13658	DEC 2015
	52.224-3	Privacy Training	JAN 2017
	52.225-19	Contractor Personnel in a Designated Operational Area or Supporting a Diplomatic or Consular Mission Outside the United States	MAR 2008
	52.228-3	Worker’s Compensation Insurance (Defense Base Act)	JUL 2014
	52.232-40	Providing Accelerated Payments to Small Business Subcontractors (Deviation)	DEC 2013
	52.237-3	Continuity of Services	JAN 1991
	52.237-10	Identification of Uncompensated Overtime	MAR 2015
	52.239-1	Privacy or Security Safeguards	AUG 1996
	52.242-5	Payments to Small Business Subcontractors	JAN 2017
	52.244-2	Subcontracts Fill-in: (d) In support of all CLIN’s - Labor	OCT 2010
	52.245-1	Government Property	JAN 2017
	GSAM	TITLE	DATE
	552.204-9	Personal Identity Verification Requirements	OCT 2012
	DFARS	TITLE	DATE
	252.203-7000	
        Requirements Relating to Compensation of Former DoD

        Officials
	SEPT 2011
	252.203-7001	Prohibition On Persons Convicted Of Fraud Or Other Defense-Contract-Related Felonies	DEC 2008
	252.203-7002	Requirement to Inform Employees of Whistleblower Rights	SEP 2013
	252.203-7003	Agency Office of the Inspector General	DEC 2012
	252.203-7004	Display of Hotline Posters	OCT 2016
	252.203-7005	
        Representation Relating to Compensation of Former DoD

        Officials
	NOV 2011
	252.204-7000	Disclosure of Information	OCT 2016
	252.204-7003	Control of Government Personnel Work Product	APR 1992
	
        252.204-7008

        Provision
	Compliance with Safeguarding Covered Defense Information Controls	OCT 2016

 

    	Perspecta 11/2018	Page 14 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

	252.204-7009	
        Limitations on the Use or Disclosure of Third-Party

        Contractor Reported Cyber Incident Information
	OCT 2016
	252.204-7012	
        Safeguarding Covered Defense Information and Cyber

        Incident Reporting
	OCT 2016
	252.209-7004	Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism	OCT 2015
	252.211-7007	Reporting of Government-Furnished Property	AUG 2012
	252.216-7004	
        Award Fee Reduction or Denial for Jeopardizing the Health

        or Safety of Government Personnel
	SEP 2011
	252.222-7002	Compliance with Local Labor Laws (Overseas)	JUN 1997
	252.222-7007	Representation Regarding Combating Trafficking in Persons	JAN 2015
	252.223-7004	Drug-Free Work Force	SEP 1988
	252.225-7040	
        Contractor Personnel Supporting U.S. Armed Forces

        Deployed Outside the United States
	OCT 2015
	252.225-7043	Antiterrorism/Force Protection Policy for Defense Contractors Outside the United States	JUN 2015
	252.225-7048	Export-Controlled Items	JUN 2013
	252.225-7995	
        Contractor Personnel Performing in the United States

        Central Command Area of Responsibility (DEVIATION 2017- O0004)
	SEPT 2017
	252.227-7013	Rights in Technical Data—Noncommercial Items	FEB 2014
	252.227-7014	
        Rights in Noncommercial Computer Software and

        Noncommercial Computer Software Documentation
	FEB 2014
	252.227-7015	Technical Data—Commercial Items	FEB 2014
	252.227-7025	
        Limitations on the Use or Disclosure of Government-

        Furnished Information Marked with Restrictive Legends
	MAY 2013
	252.227-7026	Deferred Delivery of Technical Data or Computer Software	APR 1988
	252.227-7027	Deferred Ordering of Technical Data or Computer Software	APR 1988
	252.227-7028	Technical Data or Computer Software Previously Delivered to the Government	JUN 1995
	252.227-7030	Technical Data—Withholding of Payment	MAR 2000
	252.227-7037	Validation of Restrictive Markings on Technical Data	SEP 2016
	252.229-7002	Customs Exemptions (Germany)	JUN 1997
	252.229-7006	Value Added Tax Exclusion (United Kingdom)	DEC 2011
	252.239-7001	Information Assurance Contractor Training and Certification	JAN 2008
	252.244-7000	Subcontracts for Commercial Items	JUN 2013
	252.246-7001	Warranty of Data—Basic	MAR 2014
	252.246-7007	
        Contractor Counterfeit Electronic Part Detection and

        Avoidance System
	AUG 2016
	252.251-7000	Ordering From Government Supply Sources	AUG 2012

 

    	Perspecta 11/2018	Page 15 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

		C.	OPTIONAL ARTICLES

 

KEY PERSONNEL AND/OR POSITIONS

 

The Subcontractor key personnel and/or positions
listed below are considered to be essential to the Work being performed hereunder. Prior to diverting any of the personnel assigned
to these positions to other programs, the Subcontractor shall notify Perspecta Subcontract Administrator reasonably in advance
(not less than thirty (30) days) and shall submit justification (including proposed substitutions) in sufficient detail to permit
evaluation of the impact on Perspecta program. The key personal and/or positions listed below may, with the consent of the Parties,
be amended from time to time during the course of the Subcontract to either add or delete key personal and/or positions as appropriate.
For any changes requested to be approved by Perspecta, the Subcontractor will be responsible for substituting personnel with equal
or greater qualifications as originally approved and used.

 

The Subcontractor agrees that the Key Personnel
and /or Positions listed below will be utilized in the performance of the Subcontract to the extent necessary for full and satisfactory
performance of this Subcontract.

 

	 	Position	Employee Name
	 	None identified at this time

 

CHANGES - “NOT-TO-EXCEED” SUBMITTAL

 

Prior to the issuance of a change order under
this Subcontract, Perspecta may solicit from the SELLER written agreement as to the maximum (in the case of an increase) adjustments
to be made in the price and/or in the delivery schedule (or time of performance), by reason of the change. Perspecta may also solicit
such agreement on limitations on the adjustments to any other provisions of the Subcontract which may be subject to equitable adjustment
by reason of the change. The SELLER shall promptly submit a "not-to-exceed" amount or maximum schedule adjustment when
so requested by Perspecta. Any such written agreement shall then be cited in the change order and upon its issuance shall be deemed
to become part of the Subcontract. In no event shall the definitive equitable adjustment exceed the maximum price and/or delivery
schedule (or time of performance) adjustments so established, nor otherwise be inconsistent with other adjustment limitations so
established. Except with respect to such limitations, nothing contained herein shall affect the right of the Parties to an equitable
adjustment by reason of the change, pursuant to this clause

 

GSA SCHEDULE CONTRACTS

 

This Subcontract is a delivery order placed against Government
Services Administration’s (GSA) One Acquisition Solution for Integrated Services (OASIS) Unrestricted Pool 1 Multiple Award
Indefinite- Delivery Indefinite Quantity (MA-IDIQ) Contract Number GS00Q14OADU128; and is placed under written authorization from
DCMA Hampton, Divisional Administrative Contracting Officer, Defense Contract Management Command and dated 2018MAR01.

 

    	Perspecta 11/2018	Page 16 of 17 	 

     

    

 

	Subcontract Number:	PO-0018098 	 
	Modification Number: 	Mod 13
	Subcontractor Name:	Corvus Consulting, LLC
	Subcontract Type: 	Time & Material

 

SIGNATURE PAGE

 

When executed by Perspecta, this Subcontract, as
described, shall constitute the entire agreement between the Parties hereto and any Terms or Conditions offered by the Subcontractor
in addition thereto or in any way different from those set forth herein are hereby objected to by Perspecta.

 

Subcontractor/Seller certifies that as of
the date of the signature affixed below:

		·	In accordance with FAR Clause 52.203-12, to the best of its knowledge and belief no Federal appropriated
funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency,
a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on its behalf in connection with
the awarding of this contract.

		·	In accordance with FAR Clause 52.209-6(c), Subcontractor/Seller

xis
not debarred, suspended, or proposed for debarment by the Federal Government

 ̈is
debarred, suspended, or proposed for debarment by the Federal Government.

 

In WITNESS WHEREOF, the Parties hereto have executed
this Contract effective as of the date of the final signature to this agreement.

 

	 	Perspecta Engineering Inc.
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	____________________
	 	 	 
	 	Date:	 

 

	 	Corvus Consulting, LLC
	 	 	 
	 	_____	______________
	 	 	 
	 	By:	_____________
	 	 	 
	 	Title:	________
	 	 	 
	 	Date:	 5/31/2022

 

    	Perspecta 11/2018	Page 17 of 17rmed-ex101_36.htm

Exhibit 10.1

 

Ra Medical Systems, Inc.

Common Stock
(par value $0.0001 per share)

At Market Issuance Sales Agreement

September 2, 2022

Ladenburg Thalmann & Co. Inc.
640 5th Avenue, 4th Floor

New York, NY 10019

 

Ladies and Gentlemen:

 

Ra Medical Systems, Inc., a Delaware corporation (the “Company”), confirms its agreement (this “Agreement”) with Ladenburg Thalmann & Co. Inc. (the “Agent”) as follows:

 

1. Issuance and Sale of Shares. The Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the conditions set forth herein, it may issue and sell through the Agent, shares (the “Placement Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), provided however, that in no event shall the Company issue or sell through the Agent such number of Placement Shares that (a) exceeds the number of shares of Common Stock registered on the effective Registration Statement (as defined below) pursuant to which the offering is being made, or (b) exceeds the number of shares or dollar amount registered on the Prospectus (as defined below), or (c) exceeds the number of authorized but unissued shares of Common Stock (the lesser of (a), (b) and (c), the “Maximum Amount”). Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in this Section 1 on the number of Placement Shares issued and sold under this Agreement shall be the sole responsibility of the Company and that the Agent shall have no obligation in connection with such compliance. The issuance and sale of Placement Shares through the Agent will be effected pursuant to the Registration Statement (as defined below), although nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement to issue any Placement Shares.

 

On the date of this Agreement, the Company has filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations thereunder (the “Securities Act”), with the Securities and Exchange Commission (the “Commission”), a registration statement on Form S-3 (the “Current Registration Statement”), including a prospectus, relating to the Placement Shares to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (the “Exchange Act”). The Company has prepared a prospectus supplement to the prospectus included as part of such registration statement specifically relating to the Placement Shares (the “Prospectus Supplement”). The Company will furnish to the Agent, for use by the Agent, copies of the prospectus relating to the Placement Shares included as part of such registration statement, as supplemented by the Prospectus Supplement, if any. Except where the context otherwise requires, such registration statement, and any post-effective amendment thereto, including all documents filed as part thereof or incorporated by reference therein, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Act or any subsequent registration statement on Form S-3 filed pursuant to Rule 415(a)(6) under the Securities Act by the Company to cover any securities registered pursuant the Current Registration Statement, including any Placement Shares, as a result of the end of the three-year period described in Rule 415(a)(5) of the Securities Act, is herein called the “Registration Statement.” The prospectus specifically relating to the Placement Shares, including all documents incorporated or deemed incorporated therein by reference to the extent such information has not been superseded or modified in accordance with Rule 412 under the Securities Act (as qualified by Rule 430B(g) of the Securities Act), included in the Registration Statement, as it may be supplemented by the Prospectus Supplement, in the form in which such prospectus and/or Prospectus Supplement have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act, is herein called the “Prospectus.” Any reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer to and include the documents incorporated or deemed incorporated by reference therein, and any reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed 

 

 

to refer to and include the filing after the execution hereof of any document with the Commission deemed to be incorporated by reference therein (the “Incorporated Documents”).

 

For purposes of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include the most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval System, or if applicable, the Interactive Data Electronic Application system when used by the Commission (collectively, “EDGAR”).

 

2. Placements. Each time that the Company wishes to issue and sell Placement Shares hereunder (each, a “Placement”), it will notify the Agent by email notice (or other method mutually agreed to in writing by the parties) of the number of Placement Shares, the time period during which sales are requested to be made, any limitation on the number of Placement Shares that may be sold in any one day and any minimum price below which sales may not be made (a “Placement Notice”), the form of which is attached hereto as Schedule 1. The receipt of each such Placement Notice shall be promptly acknowledged by the Agent by email confirmation to the Company. The Placement Notice shall originate from any of the individuals from the Company set forth on Schedule 2 (with a copy to each of the other individuals from the Company listed on such schedule), and shall be addressed to each of the individuals from the Agent set forth on Schedule 2, as such Schedule 2 may be amended from time to time. Provided that the Company is otherwise in compliance with the terms of this Agreement, the Placement Notice shall be effective immediately upon receipt by the Agent unless and until (i) the Agent declines to accept the terms contained therein for any reason, in its sole discretion, (ii) the entire amount of the Placement Shares thereunder has been sold, (iii) the Company suspends or terminates the Placement Notice, or (iv) this Agreement has been terminated under the provisions of Section 13. The amount of any discount, commission or other compensation to be paid by the Company to the Agent in connection with the sale of the Placement Shares shall be calculated in accordance with the terms set forth in Schedule 3. It is expressly acknowledged and agreed that neither the Company nor the Agent will have any obligation whatsoever with respect to a Placement or any Placement Shares unless and until the Company delivers a Placement Notice to the Agent and the Agent does not decline such Placement Notice pursuant to the terms set forth above, and then only upon the terms specified therein and herein. In the event of a conflict between the terms of Sections 2 or 3 of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control.

 

3. Sale of Placement Shares by the Agent.

 

a. Subject to the terms and conditions of this Agreement, for the period specified in a Placement Notice, the Agent will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state and federal laws, rules and regulations and the rules of The NYSE American LLC (the “Exchange”), to sell the Placement Shares up to the amount specified in, and otherwise in accordance with the terms of, such Placement Notice. The Agent will provide written confirmation to the Company no later than the opening of the Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such day, the compensation payable by the Company to the Agent pursuant to Section 2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization of the deductions made by the Agent (as set forth in Section 5(b)) from the gross proceeds that it receives from such sales. Subject to the terms of a Placement Notice, the Agent agrees that all sales of the Placement Shares by the Agent will be made only by methods permitted by law and deemed to be an “at the market offering” as defined in Rule 415 of the Securities Act. Subject to the terms of a Placement Notice, the Agent may also sell Placement Shares by any other method permitted by law, including but not limited to privately negotiated transactions, with the Company’s consent. “Trading Day” means any day on which Common Stock is purchased and sold on the Exchange.

 

b. For such time as the Agent is actively offering Placement Shares pursuant to this Agreement, the Agent shall not for its own account engage in (i) any short sale of any security of the Company, (ii) any sale of any security of the Company that the Agent does not own for the account of the Agent or any sale which is consummated by the delivery of a security of the Company borrowed by, or for the account of, the Agent, or (iii) any market making, bidding, purchasing, stabilization or other trading activity with regard to the Common Stock or related derivative securities, or attempting to induce another person to do any of the foregoing, if such activity would be prohibited under Regulation M or other anti-manipulation rules under the Securities Act. Neither the Agent nor any of its affiliates or subsidiaries shall engage in any proprietary trading or trading for the Agent’s (or its affiliates’ or subsidiaries’) own 

2

 

 

account. For the avoidance of doubt, this restriction shall not apply to transactions by or on behalf of any customer of the Agent or transactions by the Agent to facilitate any such transactions by or on behalf of any customer of the Agent. 

 

4. Suspension of Sales. The Company or the Agent may, upon notice to the other party in writing (including by email correspondence to each of the individuals of the other party set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence to each of the individuals of the other party set forth on Schedule 2), suspend any sale of Placement Shares (a “Suspension”); provided, however, that such suspension shall not affect or impair any party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt of such notice. While a Suspension is in effect, any obligation under Sections 7(l), 7(m), and 7(n) with respect to the delivery of certificates, opinions, or comfort letters to the Agent, shall be waived. Each of the parties agrees that no such notice under this Section 4 shall be effective against any other party unless it is made to one of the individuals named on Schedule 2 hereto and acknowledged in accordance with this Section 4, as such Schedule may be amended from time to time.

 

5. Sale and Delivery to the Agent; Settlement.

 

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

 

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

 

c. Delivery of Placement Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Placement Shares being sold by crediting the Agent’s or its designee’s account (provided that the Agent shall have given the Company written notice of such designee at least one Trading Day prior to the Settlement Date) at The Depository Trust Company through its Deposit and Withdrawal at Custodian System (“DWAC”) or by such other means of delivery as may be mutually agreed upon by the parties hereto which in all cases shall be freely tradable, transferable, registered shares in good deliverable form. On each Settlement Date, the Agent will deliver the related Net Proceeds in same day funds to an account designated by the Company on, or prior to, the Settlement Date. The Agent will be responsible for providing DWAC instructions or instructions for delivery by other means with respect to the transfer of the Placement Shares being sold. The Company agrees that if the Company, or its transfer agent (if applicable), defaults in its obligation to deliver Placement Shares on a Settlement Date through no fault of the Agent, then in addition to and in no way limiting the rights and obligations set forth in Section 11(a) hereto, it will (i) hold the Agent harmless against any loss, claim, damage, or reasonable, documented expense (including reasonable and documented legal fees and expenses), as incurred, arising out of or in connection with such default by the Company or its transfer agent (if applicable) and (ii) pay to the Agent (without duplication) any commission, discount, or other compensation to which it would otherwise have been entitled absent such default.

 

3

 

 

 

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

 

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

 

6. Representations and Warranties of the Company. Except as disclosed in the Registration Statement or Prospectus (including the Incorporated Documents), or except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof (but excluding any disclosures of risks set forth under the heading “Risk Factors”, disclosures of risks set forth in any “forward-looking statements” disclaimer or in any other statements that are similarly cautionary or predictive in nature), the Company represents and warrants to, and agrees with the Agent that as of the date of this Agreement and as of each Applicable Time (as defined below), unless such representation, warranty or agreement specifies a different date or time:

 

a. Registration Statement and Prospectus. The Company and, assuming no act or omission on the part of the Agent that would make such statement untrue, the transactions contemplated by this Agreement, meet the requirements for and comply with the conditions for the use of Form S-3 under the Securities Act. The Registration Statement has been filed with the Commission, and (i) as of the date of this Agreement, the Company has no reason to believe that it shall not be promptly declared effective under the Securities Act, or (ii) as of any Applicable Time after the date of this Agreement, has been declared effective under the Securities Act. The Prospectus Supplement names Ladenburg Thalmann & Co. Inc. as the Agent in the section entitled “Plan of Distribution.” The Company has not received, and has no notice of, any order of the Commission preventing or suspending the use of the Registration Statement, or threatening or instituting proceedings for that purpose. The Registration Statement and the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act, at the time it becomes effective, and as of each Applicable Time, if any, will comply in all material respects with said Rule. Any statutes, regulations, contracts or other documents that are required to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement have been so described or filed. Copies of the Registration Statement, the Prospectus, and any such amendments or supplements and all documents incorporated by reference therein that were filed with the Commission on or prior to the date of this Agreement have been delivered, or are available through EDGAR, to the Agent and its counsel. The Company has not distributed and, prior to the later to occur of each Settlement Date and completion of the distribution of the Placement Shares, will not distribute, any offering material in connection with the offering or sale of the Placement Shares other than the Registration Statement (once effective) and the Prospectus and any Issuer Free Writing Prospectus (as defined below) to which the Agent has consented, any such consent not to be unreasonably withheld, conditioned or delayed. The Common Stock is currently quoted on the Exchange. The Company has not, in the 12 months preceding the date hereof, received notice from the Exchange to the effect that the Company is not in compliance with the listing or maintenance requirements of the Exchange. The Company has no reason to believe that it will not in the foreseeable future continue to be in compliance with all such listing and maintenance requirements.

 

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

 

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

 

d. Subsidiaries. None of the Subsidiaries (as defined in Section 25 below) is a “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X promulgated under the Securities Act. If the Company has no “significant subsidiaries”, all other references, except as set forth in this Section 3.1(a), to the Subsidiaries or any of them in this Agreement shall be disregarded. No Subsidiary owns any material assets or incurs any material liabilities. 

 

e. Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in a Material Adverse Effect (as defined in Section 25 below) and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. 

 

f. Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the board of directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals (as defined below). This Agreement and each other Incorporated Document to which the Company is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

g. No Conflicts. Except as set forth in the SEC Reports (as defined below), the Registration Statement or the Prospectus, the execution, delivery and performance by the Company of this Agreement, the issuance and sale of the Placement Shares and the consummation by it of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an 

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event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien (as defined in Section 25 below) upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect. 

 

h. Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under the Securities Act (each, a “Person”) in connection with the execution, delivery and performance by the Company of this Agreement, other than 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 state securities or blue sky laws, FINRA or the Trading Market (as defined in Section 25 below) (collectively, the “Required Approvals”). 

 

I. Issuance of Placement Shares. The Placement Shares are duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved, from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement. The holders of the Placement Shares will not be subject to personal liability by reason of being such holders. The Placement Shares are not and will not be subject to the preemptive rights of any holders of any security of the Company or similar contractual rights granted by the Company. All corporate action required to be taken for the authorization, issuance and sale of the Placement Shares has been duly and validly taken. The Placement Shares conform in all material respects to all statements with respect thereto contained in the Registration Statement.

 

j. Capitalization. The capitalization of the Company is as set forth in the SEC Reports. The Company has not issued any capital stock since July 22, 2022, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents (as defined in Section 25 below) outstanding as of such date. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement, except for such rights as have been waived. Except as a result of the purchase and sale of the Placement Shares and as set forth in the Registration Statement and the SEC Reports, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. Except as set forth in the Registration Statement and Prospectus, the issuance and sale of the Placement Shares will not obligate the Company to issue shares of Common Stock or other securities to any Person. Except as set forth in the SEC Reports, the Registration Statement or the Prospectus, there are no outstanding securities or instruments of the Company or any Subsidiary with any provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company or any Subsidiary. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. The authorized shares of the Company conform in all material respects to all statements relating thereto contained in the Registration Statement and the Prospectus. The offers and sales of the Company’s securities were at all relevant times either registered under the Securities Act and the applicable state securities or Blue Sky laws or, based in part on the representations and warranties of the purchasers, exempt from such registration requirements. No further approval or authorization of any stockholder, the board of directors or others is required for the issuance and sale of the Placement Shares. Except as set forth in the Registration Statement and the SEC Reports, there are no stockholders agreements, 

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voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

k. SEC Reports; Financial Statements. The Company has filed 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 two years 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, together with the Prospectus and any Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension, except as could not have or reasonably be expected to result in a Material Adverse Effect. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, 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 light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. The agreements and documents described in the Registration Statement, the Prospectus, any Prospectus Supplement and the SEC Reports conform to the descriptions thereof contained therein and there are no agreements or other documents required by the Securities Act and the rules and regulations thereunder to be described in the Registration Statement, the Prospectus, any Prospectus Supplement or the SEC Reports or to be filed with the Commission as exhibits to the Registration Statement, that have not been so described or filed. Each agreement or other instrument (however characterized or described) to which the Company is a party or by which it is or may be bound or affected and (i) that is referred to in the Registration Statement, the Prospectus, or the SEC Reports, or (ii) is material to the Company’s business, has been duly authorized and validly executed by the Company, is in full force and effect in all material respects and is enforceable against the Company and, to the Company’s knowledge, the other parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally, (y) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefore may be brought. None of such agreements or instruments has been assigned by the Company, and neither the Company nor, to the best of the Company’s knowledge, any other party is in default thereunder and, to the best of the Company’s knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder. To the best of the Company’s knowledge, performance by the Company of the material provisions of such agreements or instruments will not result in a violation of any existing applicable law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its assets or businesses, including, without limitation, those relating to environmental laws and regulations.

 

l. Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans and (vi) no officer or director of the Company has resigned from any position 

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with the Company. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Placement Shares contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation is made. Unless otherwise disclosed in an SEC Report filed prior to the date hereof, the Company has not: (i) issued any securities or incurred any liability or obligation, direct or contingent, for borrowed money; or (ii) declared or paid any dividend or made any other distribution on or in respect of its capital stock.

 

m. Litigation. Except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Agreement or the issuance of the Placement Shares or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 

 

n. Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

o. Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

p. Regulatory Permits. The Company and the Subsidiaries possess all licenses, certificates, authorizations, registrations and permits issued by, and have made all declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities that are necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (each, a “Material Permit”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation, suspension, modification, invalidation 

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or termination of any Material Permit. The disclosures in the Registration Statement concerning the effects of Federal, State, local and all foreign regulation on the Company’s business as currently contemplated are correct in all material respects.

 

q. Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to, or have valid and marketable rights to lease or otherwise use, all real property and all personal property that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made in accordance with GAAP, and the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

r. Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports and which the failure to do so could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the date of this Agreement. For clarity and avoidance of doubt, an application that is abandoned in favor of a continuation or divisional application pursuing the same of similar subject matter as the parent application shall not be considered an abandonment or termination of Intellectual Property Rights. Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

s. Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

 

t. Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from, any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company.

 

u. Sarbanes-Oxley; Internal Accounting Controls. Except for the material weaknesses in the Company’s internal control over financial reporting as described in the SEC Reports, the Company and the Subsidiaries are in compliance in all material respects with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The Company and the 

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Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

v. Certain Fees. Except as set forth in the Prospectus, no brokerage or finder’s fees or commissions are or will be payable by the Company, or any Subsidiary or Affiliate of 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 this Agreement. To the Company’s knowledge, there are no other arrangements, agreements or understandings of the Company or, to the Company’s knowledge, any of its stockholders that may affect the Agent’s compensation, as determined by FINRA. The Company has not made any direct or indirect payments (in cash, securities or otherwise) to: (i) any person, as a finder’s fee, consulting fee or otherwise, in consideration of such person raising capital for the Company or introducing to the Company persons who raised or provided capital to the Company; (ii) any FINRA member; or (iii) any person or entity that has any direct or indirect affiliation or association with any FINRA member, within the twelve months prior to the Execution Date. None of the net proceeds of the Offering will be paid by the Company to any participating FINRA member or its affiliates, except as specifically authorized herein.

 

w. Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Placement Shares will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended.

 

x. Registration Rights. Except as set forth in the SEC Reports, the Registration Statement or the Prospectus, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

 

y. Listing and Maintenance Requirements. The Common Stock is 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 Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. Except as set forth in the SEC Reports, the Registration Statement or the Prospectus, the Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. Except as set forth in the SEC Reports, the Registration Statement or the Prospectus, 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 Common Stock is currently eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company is current in payment of the fees of the Depository Trust Company (or such other established clearing corporation) in connection with such electronic transfer.

 

z. Application of Takeover Protections. The Company and the board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison 

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pill (including any distribution under a rights agreement) or other similar anti‐takeover provision under the Company’s certificate of incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable as a result of the Agent and the Company fulfilling their obligations or exercising their rights under this Agreement.

 

aa. Disclosure; 10b-5. The Registration Statement (and any further documents to be filed with the Commission) contains all exhibits and schedules as required by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, if any, at the time it became effective, including any information deemed to be a part thereof at the time of effectiveness pursuant to Rule 430A under the Securities Act, complied in all material respects with the Securities Act and the Exchange Act and the applicable rules and regulations under the Securities Act and did not and, as amended or supplemented, if applicable, will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus, as of its respective date, complies in all material respects with the Securities Act and the Exchange Act and the applicable rules and regulations. The Prospectus, as amended or supplemented, did not and will not contain as of the date thereof any 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. The SEC Reports incorporated by reference in the Prospectus, if any, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and the applicable rules and regulations, and none of such documents, if any, when they were filed with the Commission, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and any further documents so filed and incorporated by reference in the Prospectus, if any, when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act and the applicable rules and regulations, as applicable, and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made not misleading. No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date thereof which represent, individually or in the aggregate, a fundamental change in the information set forth therein is required to be filed with the Commission. There are no documents required to be filed with the Commission in connection with the transaction contemplated hereby that (x) have not been filed as required pursuant to the Securities Act or (y) will not be filed within the requisite time period. There are no contracts or other documents required to be described in the Prospectus, or to be filed as exhibits or schedules to the Registration Statement, which have not been described or filed as required. 

 

bb. No Integrated Offering. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Placement Shares to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

cc. Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Placement Shares hereunder, (i) the fair saleable value of the Company’s assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the date hereof. The SEC Reports sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments.

 

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dd. Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim. The provisions for taxes payable, if any, shown on the financial statements filed with or as part of the Registration Statement are sufficient for all accrued and unpaid taxes, whether or not disputed, and for all periods to and including the dates of such consolidated financial statements. The term “taxes” mean all federal, state, local, foreign, and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, fees, assessments, or charges of any kind whatsoever, together with any interest and any penalties, additions to tax, or additional amounts with respect thereto. The term “returns” means all returns, declarations, reports, statements, and other documents required to be filed in respect to taxes.

 

ee. Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”). The Company has taken reasonable steps to ensure that its accounting controls and procedures are sufficient to cause the Company to comply in all material respects with the FCPA.

 

ff. Accountants. To the knowledge and belief of the Company, the Company Auditor is an independent registered public accounting firm as required by the Exchange Act. The Company Auditor has not, during the periods covered by the financial statements included in the Prospectus, provided to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act.

 

gg. Regulatory Matters. All studies, tests and preclinical or clinical trials conducted by or on behalf of the Company (the “Company Studies and Trials”) were and, if still pending, are being, conducted in all material respects in accordance with experimental protocols and all applicable laws and regulations, except where the failure to be in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the Company’s knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any written notice, warning letter or other communication from the U.S. Food and Drug Administration (“FDA”), the U.K. Medicines and Healthcare Products Regulatory Agency (“MHRA”) or any other governmental or regulatory authority, which (i) requires the termination, suspension or material modification of any Company Studies or Trials, (ii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries, (iii) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or (iv) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect. The properties, business and operations of the Company have been and are being conducted in all material respects in accordance with all applicable laws, rules and regulations, and in using or disclosing patient information received by the Company, if any, in connection with the Company Studies and Trials, the Company and its Subsidiaries have complied in all material respects with all applicable laws and regulatory rules or requirements. To the Company’s knowledge, none of the Company Studies and Trials involved any investigator who has been disqualified as a clinical investigator or has been found by the FDA, the MHRA, or a comparable foreign regulatory authority to have engaged in scientific misconduct or violations of good clinical practices. To the Company’s knowledge, the manufacturing facilities and operations of its suppliers are operated in compliance in all material respects with all applicable statutes, 

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rules, and regulations of the FDA, the MHRA, and comparable foreign governmental or regulatory authorities to which the Company’s products are subject.

 

hh. Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department.

 

ii. U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon the Agent’s request.

 

jj. Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

kk. Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (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 Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

ll. FINRA Affiliation. No officer, director or any beneficial owner of 5% or more of the Company’s unregistered securities has any direct or indirect affiliation or association with any FINRA member (as determined in accordance with the rules and regulations of FINRA) that is participating in the Offering. The Company will advise the Agent and Mintz if it learns that any officer, director or owner of 5% or more of the Company’s outstanding shares of Common Stock or Common Stock Equivalents is or becomes an affiliate or associated person of a FINRA member firm. 

 

mm. Board of Directors. The board of directors is comprised of the persons set forth under the heading of the Prospectus captioned “Management.” The qualifications of the persons serving as board members and the overall composition of the board of directors comply with the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder applicable to the Company and the rules of the Trading Market. At least one member of the board of directors qualifies as a “financial expert” as such term is defined under the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder and the rules of the Trading Market. In addition, at least a majority of the persons serving on the board of directors qualify as “independent” as defined under the rules of the Trading Market.

 

nn. Compliance with Privacy Laws; Cybersecurity. The Company and its Subsidiaries have operated their business in a manner compliant in all material respects with all United States federal, state, local and non-United States privacy, data security and data protection laws and regulations applicable to the Company’s collection, use, transfer, protection, disposal, disclosure, handling, storage and analysis of personal data. The Company and its Subsidiaries have been and are in compliance in all material respects with internal policies and procedures designed to ensure the integrity and security of the data collected, handled or stored in connection with its business; the Company and its subsidiaries have been and are in compliance in all material respects with internal policies and procedures designed to ensure compliance with health care laws that govern privacy and data security and take, and have taken, reasonably appropriate steps designed to assure compliance with such policies and procedures. The Company and its Subsidiaries have taken reasonable steps to maintain the confidentiality of its personally identifiable information, protected health information, consumer information and other confidential information of the Company, its subsidiaries and any third parties in its possession (“Sensitive Company Data”). The tangible or digital information 

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technology systems (including computers, screens, servers, workstations, routers, hubs, switches, networks, data communications lines, technical data and hardware), software, websites, applications and telecommunications systems used or held for use by the Company and its subsidiaries (the “Company IT Assets”) are, in all material respects, adequate and operational for, in accordance with their documentation and functional specifications, the business of the Company and its subsidiaries as now operated and as currently proposed to be conducted as described in the Registration Statement and the Prospectus, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company and its Subsidiaries have used reasonable efforts to establish, and have established, commercially reasonable disaster recovery and security plans, procedures and facilities for the business consistent with industry standards and practices in all material respects, including, without limitation, for the Company IT Assets and data held or used by or for the Company and its Subsidiaries. To the Company’s knowledge, the Company and its Subsidiaries have not suffered or incurred any security breaches, compromises or incidents with respect to any Company IT Asset or Sensitive Company Data, except where such breaches, compromises or incidents would not reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect; and, to the Company’s knowledge, there has been no unauthorized or illegal use of or access to any Company IT Asset or Sensitive Company Data by any unauthorized third party. The Company and its subsidiaries have not been required to notify any individual of any information security breach, compromise or incident involving Sensitive Company Data.

 

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

 

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

 

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

 

rr. No Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus, as of its issue date and as of each Applicable Time (as defined in Section 25 below), did not, does not and will not include any information that conflicted, conflicts or will conflict with the information contained in the Registration Statement or the Prospectus, including any incorporated document deemed to be a part thereof that has not been superseded or modified. The foregoing sentence does not apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity with written information furnished to the Company by the Agent specifically for use therein.

 

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

 

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

 

a. Registration Statement Amendments. After the date of this Agreement and during any period in which a prospectus relating to any Placement Shares is required to be delivered by the Agent under the Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rule 172 under the Securities Act) (the “Prospectus Delivery Period”), (i) the Company will notify the Agent promptly of the time when any subsequent amendment to the Registration Statement, other than documents incorporated by reference or amendments not related to any Placement, has been filed with the Commission and/or has become effective or any subsequent supplement to the Prospectus has been filed and of any request by the Commission for any amendment or supplement to the Registration Statement or Prospectus related to the Placement or for additional information related to the Placement, (ii) the Company will prepare and file with the Commission, promptly upon the Agent’s request, any amendments or supplements to the Registration Statement or Prospectus that, in the Agent’s reasonable opinion, may be necessary or advisable in connection with the distribution of the Placement Shares by the Agent (provided, however, that the failure of the Agent to make such request shall not relieve the Company of any obligation or liability hereunder, or affect the Agent’s right to rely on the representations and warranties made by the Company in this Agreement and provided, 

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further, that the only remedy the Agent shall have with respect to the failure to make such filing shall be to cease making sales under this Agreement until such amendment or supplement is filed); (iii) the Company will not file any amendment or supplement to the Registration Statement or Prospectus relating to the Placement Shares or a security convertible into the Placement Shares (other than an Incorporated Document) unless a copy thereof has been submitted to the Agent within a reasonable period of time before the filing and the Agent has not reasonably objected thereto within two (2) Business Days (as defined below) (provided, however, that (A) the failure of the Agent to make such objection shall not relieve the Company of any obligation or liability hereunder, or affect the Agent’s right to rely on the representations and warranties made by the Company in this Agreement and (B) the Company has no obligation to provide the Agent any advance copy of such filing or to provide the Agent an opportunity to object to such filing if the filing does not name the Agent or does not related to the transaction herein provided; and provided, further, that the only remedy the Agent shall have with respect to the failure by the Company to obtain such consent shall be to cease making sales under this Agreement) and the Company will furnish to the Agent at the time of filing thereof a copy of any document that upon filing is deemed to be incorporated by reference into the Registration Statement or Prospectus, except for those documents available via EDGAR; and (iii) the Company will cause each amendment or supplement to the Prospectus to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or, in the case of any document to be incorporated therein by reference, to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed (the determination to file or not file any amendment or supplement with the Commission under this Section 7(a), based on the Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company).

 

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

 

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

 

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

 

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

 

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

 

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

 

h. Notice of Other Sales. Without the prior written consent of the Agent, the Company will not, directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire, Common Stock during the period beginning on the date on which any Placement Notice is delivered to the Agent hereunder and ending on the third (3rd) Trading Day immediately following the final Settlement Date with respect to Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice has been terminated or suspended prior to the sale of all Placement Shares covered by a Placement Notice, the date of such suspension or termination); and will not directly or indirectly in any other “at the market” or continuous equity transaction offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire, Common Stock prior to the termination of this Agreement; provided, however, that such restrictions will not be required in connection with the Company’s issuance or sale of (i) Common Stock, options to purchase Common Stock or Common Stock issuable upon the exercise of options, pursuant to any employee or director stock option or benefits plan, stock ownership plan or dividend reinvestment plan (but not Common Stock subject to a waiver to exceed plan limits in its dividend reinvestment plan) of the Company whether now in effect or hereafter implemented; and (ii) Common Stock issuable upon conversion of securities or the exercise of warrants, options or other rights in effect or outstanding, and disclosed in filings by the Company available on EDGAR or otherwise in writing to the Agent; (iii) Common Stock, or securities convertible into or exercisable for Common Stock, offered and sold in a privately negotiated transaction to vendors, customers, strategic partners or potential strategic partners or other investors conducted in a manner so as not to be integrated with the offering of Common Stock hereby; and (iv) Common Stock in connection with any acquisition, strategic investment or other similar transaction (including any joint venture, strategic alliance or partnership).

 

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

 

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

 

k. Required Filings Relating to Placement of Placement Shares. To the extent that the filing of a prospectus supplement with the Commission with respect to a placement of Placement Shares becomes required under Rule 424(b) under the Securities Act, the Company agrees that on such dates as the Securities Act shall require, the 

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

 

l. Representation Dates; Certificate. Each time during the term of this Agreement that the Company:

 

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

 

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

 

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

 

(iv) files a current report on Form 8-K containing amended financial information (other than information “furnished” pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) under the Exchange Act;

 

(Each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall be a “Representation Date”), the Company shall furnish the Agent (but in the case of clause (iv) above only if the Agent reasonably determines that the information contained in such Form 8-K is material) with a certificate, in the form attached hereto as Exhibit 7(l). The requirement to provide a certificate under this Section 7(l) shall be waived for any Representation Date occurring at a time at which no Placement Notice is pending, which waiver shall continue until the earlier to occur of the date the Company delivers a Placement Notice hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date on which the Company files its annual report on Form 10-K. Notwithstanding the foregoing, (i) upon the delivery of the first Placement Notice hereunder and (ii) if the Company subsequently decides to sell Placement Shares following a Representation Date when the Company relied on such waiver and did not provide the Agent with a certificate under this Section 7(l), then before the Agent sells any Placement Shares, the Company shall provide the Agent with a certificate, in the form attached hereto as Exhibit 7(l), dated the date of the Placement Notice.

 

m. Legal Opinions. 

 

(i) Company Counsel. On or prior to the date of the first Placement Notice given hereunder, the Company shall cause to be furnished to the Agent a legal opinion and a negative assurance letter of Wilson Sonsini Goodrich & Rosati, P.C. (“Company Counsel”), or other counsel reasonably satisfactory to the Agent, in form and substance reasonably satisfactory to the Agent. Thereafter, within five (5) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate in substantially the form attached hereto as Exhibit 7(l) for which no waiver is applicable, and not more than once per calendar quarter, the Company shall cause to be furnished to the Agent written opinions and a negative assurance letter of Company Counsel in form and substance previously agreed, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided that, in lieu of such opinions and negative assurance for subsequent periodic filings under the Exchange Act, Company Counsel may furnish the Agent with a Reliance Letter to the effect that the Agent may rely on the opinions and negative assurance letter previously delivered under this Section 7(m) to the same extent as if it were dated the date of such letter (except that statements in such prior letter shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented as of the date of the Reliance Letter).

 

(ii) Intellectual Property Counsel. On or prior to the date of the first Placement Notice given hereunder, the Company shall cause to be furnished to the Agent written opinions and a negative assurance letter of Schmeiser, Olsen & Watts LLP (“Intellectual Property Counsel”), or other counsel reasonably satisfactory to 

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the Agent, in form and substance reasonably satisfactory to the Agent. Thereafter, within five (5) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate in substantially the form attached hereto as Exhibit 7(l) for which no waiver is applicable, and not more than once per calendar quarter, the Company shall cause to be furnished to the Agent written opinions and negative assurance letters of Intellectual Property Counsel in form and substance previously agreed, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided that, in lieu of such opinions and negative assurance for subsequent periodic filings under the Exchange Act, Intellectual Property Counsel may furnish the Agent with a Reliance Letter to the effect that the Agent may rely on the opinions and negative assurance letter previously delivered under this Section 7(m) to the same extent as if it were dated the date of such letter (except that statements in such prior letter shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented as of the date of the Reliance Letter).

 

n. Comfort Letter. On or prior to the date of the first Placement Notice given hereunder and within five (5) Trading Days after each subsequent Representation Date, other than pursuant to Section 7(l)(iii), the Company shall cause its independent accountant to furnish the Agent letters (the “Comfort Letters”), dated the date the Comfort Letter is delivered, which shall meet the requirements set forth in this Section 7(n); provided, that if requested by the Agent, the Company shall cause a Comfort Letter to be furnished to the Agent within five (5) Trading Days of such request following the date of occurrence of any restatement of the Company’s financial statements. The Comfort Letter from the Company’s independent accountants shall be in a form and substance reasonably satisfactory to the Agent, (i) confirming that they are an independent public accounting firm within the meaning of the Securities Act and the PCAOB, (ii) stating, as of such date, the conclusions and findings of such firm with respect to the financial information and other matters ordinarily covered by accountant’s “comfort letters” to underwriters in connection with registered public offerings (the first such letter, the “Initial Comfort Letter”) and (iii) updating the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had it been given on such date and modified as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.

 

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

 

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

 

q. No Offer to Sell. Other than an Issuer Free Writing Prospectus approved in advance by the Company and the Agent in their capacity as agent hereunder pursuant to Section 23, neither of the Agent nor the Company (including its agents and representatives, other than the Agent in their capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405), required to be filed with the Commission, that constitutes an offer to sell or solicitation of an offer to buy Placement Shares hereunder.

 

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

18

 

 

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

 

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

 

9. Payment of Expenses. The Company will pay all expenses incident to the performance of its obligations under this Agreement, including (i) the preparation, filing, including any fees required by the Commission, and printing of the Registration Statement (including financial statements and exhibits) as originally filed and of each amendment and supplement thereto and each Free Writing Prospectus, in such number as the Agent shall deem reasonably necessary, (ii) the printing and delivery to the Agent of this Agreement and such other documents as may be reasonably required in connection with the offering, purchase, sale, issuance or delivery of the Placement Shares, (iii) the preparation, issuance and delivery of the certificates, if any, for the Placement Shares to the Agent, including any stock or other transfer taxes and any capital duties, stamp duties or other duties or taxes payable upon the sale, issuance or delivery of the Placement Shares to the Agent, (iv) the fees and disbursements of the counsel, accountants and other advisors to the Company, (v) the fees and disbursements of counsel to the Agent up to $50,000 payable upon execution of this Agreement and up to $2,500 for each calendar quarter for expenses associated with ongoing due diligence; (vi) the fees and expenses of the transfer agent and registrar for the Common Stock, (vii) the filing fees incident to any review by FINRA of the terms of the sale of the Placement Shares, and (viii) the fees and expenses incurred in connection with the listing of the Placement Shares on the Exchange.

 

10. Conditions to the Agent’s Obligations. The obligations of the Agent hereunder with respect to a Placement will be subject to the continuing accuracy and completeness of the representations and warranties made by the Company herein (other than those representations and warranties made as of a specific date or time), to the due performance in all material respects by the Company of its obligations hereunder, to the completion by the Agent of a due diligence review satisfactory to it in its reasonable judgment, and to the continuing reasonable satisfaction (or waiver the Agent in its sole discretion) of the following additional conditions:

 

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

 

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

19

 

 

or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, which changes shall not as of the time of such Placement have been so made.

 

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

 

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

 

e. Legal Opinions. The Agent shall have received the opinions and negative assurances of Company Counsel and Intellectual Property Counsel required to be delivered pursuant to Section 7(m) on or before the date on which such delivery of such opinions are required pursuant to Section 7(m).

 

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

 

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

 

h. Secretary’s Certificate. On or prior to the first Representation Date, the Agent shall have received a certificate, signed on behalf of the Company by its corporate Secretary, in form and substance satisfactory to the Agent and its counsel.

 

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

 

j. Other Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(l), the Company shall have furnished to the Agent such appropriate further information, certificates and documents as the Agent may reasonably request and which are usually and customarily furnished by an issuer of securities in connection with a securities offering of the type contemplated hereby. 

 

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

 

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

 

m. No Termination Event; Insurance. There shall not have occurred any event that would permit the Agent to terminate this Agreement pursuant to Section 13(a). The Company and its Subsidiaries shall maintain, or caused to be maintained, insurance in such amounts and covering such risks as is reasonable and customary for the business in which it is engaged.

 

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n. FINRA. The Agent shall have received a letter from the Corporate Financing Department of FINRA confirming that such department has determined to raise no objection with respect to the fairness or reasonableness of the terms and arrangements related to the sale of the Placement Shares pursuant to this Agreement.

 

11. Indemnification and Contribution.

 

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

 

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

 

(ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 11(d) below) any such settlement is effected with the written consent of the Company, which consent shall not unreasonably be delayed or withheld; and

 

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

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in the Registration Statement (or any amendment thereto) or in any related Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) solely in reliance upon and in conformity with the Agent’s Information.

 

b. Indemnification by the Agent. The Agent agrees to indemnify and hold harmless the Company and its directors and each officer of the Company who signed the Registration Statement, and each person, if any, who (i) controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or (ii) is controlled by or is under common control with the Company against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 11(a), as incurred, but only with respect to untrue statements or omissions, made in the Registration Statement (or any amendments thereto) or in any related Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with the Agent’s Information.

 

c. Procedure. Any party that proposes to assert the right to be indemnified under this Section 11 will, promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section 11, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might have to any indemnified party otherwise than under this Section 11 and (ii) any liability that it may have to any indemnified party under the foregoing provision of this Section 11 unless, and only to the extent that, such omission results in the forfeiture or material impairment of substantive rights or defenses by the indemnifying party. If any such action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly with any other 

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indemnifying party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party for any legal or other expenses except as provided below and except for the reasonable costs of investigation subsequently incurred by the indemnified party in connection with the defense. Each indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict of interest exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable and documented out-of-pocket fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable and documented out-of-pocket fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for an indemnified party. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly after the indemnifying party receives a written invoice relating to fees, disbursements and other charges in reasonable detail. An indemnifying party will not, in any event, be liable for any settlement of any action or claim effected without its written consent. No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 11 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent (1) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (2) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

 

d. Contribution. In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this Section 11 is applicable in accordance with its terms but for any reason is held to be unavailable from the Company or the Agent, the Company and the Agent will contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Agent, such as persons who control the Company within the meaning of the Securities Act or the Exchange Act, officers of the Company who signed the Registration Statement and directors of the Company, who also may be liable for contribution) to which the Company and the Agent may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Agent on the other hand. The relative benefits received by the Company on the one hand and the Agent on the other hand shall be deemed to be in the same proportion as the total Net Proceeds from the sale of the Placement Shares (before deducting expenses) received by the Company bear to the total compensation received by the Agent (before deducting expenses) from the sale of Placement Shares on behalf of the Company. If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand, and the Agent, on the other hand, with respect to the statements or omission that resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering. Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Agent, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Agent agree that it would not be just and equitable if contributions pursuant to this Section 11(d) were to be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense, or damage, or action in respect thereof, referred to above in this Section 11(d) shall be deemed to include, for the purpose of this Section 11(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim to the extent consistent with Section 11(c) hereof. Notwithstanding 

22

 

 

the foregoing provisions of this Section 11(d), the Agent shall not be required to contribute any amount in excess of the commissions received by it under this Agreement and no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 11(d), any person who controls a party to this Agreement within the meaning of the Securities Act or the Exchange Act, and any officers, directors, partners, employees or agents of the Agent, will have the same rights to contribution as that party, and each officer and director of the Company who signed the Registration Statement will have the same rights to contribution as the Company, subject in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution may be made under this Section 11(d), will notify any such party or parties from whom contribution may be sought, but the omission to so notify will not relieve that party or parties from whom contribution may be sought from any other obligation it or they may have under this Section 11(d) except to the extent that the failure to so notify such other party materially prejudiced the substantive rights or defenses of the party from whom contribution is sought. Except for a settlement entered into pursuant to the last sentence of Section 11(c) hereof, no party will be liable for contribution with respect to any action or claim settled without its written consent if such consent is required pursuant to Section 11(c) hereof. 

 

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

 

13. Termination.

 

a. The Agent may terminate this Agreement, by written notice to the Company, as hereinafter specified at any time (1) if there has been, since the time of execution of this Agreement or since the date as of which information is given in the Prospectus, any Material Adverse Effect, or any development that is reasonably likely to have a Material Adverse Effect or, in the reasonable judgment of the Agent, is material and adverse and makes it impractical or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (2) if there has occurred any material adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international political, financial or economic conditions, in each case the effect of which is such as to make it, in the reasonable judgment of the Agent, impracticable or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (3) if trading in the Common Stock has been suspended or limited by the Commission or the Exchange, or if trading generally on the Exchange has been suspended or limited, or minimum prices for trading have been fixed on the Exchange, (4) if any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market shall have occurred and be continuing, (5) if a major disruption of securities settlements or clearance services in the United States shall have occurred and be continuing, or (6) if a banking moratorium has been declared by either U.S. Federal or New York authorities. Any such termination shall be without liability of any party to any other party except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination. If the Agent elects to terminate this Agreement as provided in this Section 13(a), the Agent shall provide the required notice as specified in Section 14 (Notices).

 

b. The Company shall have the right, by giving ten (10) days written notice as hereinafter specified, to terminate this Agreement in its sole discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any other party except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.

 

c. The Agent shall have the right, by giving ten (10) days written notice as hereinafter specified, to terminate this Agreement in its sole discretion at any time after the date of this Agreement. Any such termination shall 

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be without liability of any party to any other party except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.

 

d. Unless earlier terminated pursuant to this Section 13, this Agreement shall automatically terminate upon the issuance and sale of all of the Placement Shares through the Agent on the terms and subject to the conditions set forth herein except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.

 

e. This Agreement shall remain in full force and effect unless terminated pursuant to Sections 13(a), (b), (c), or (d) above or otherwise by mutual agreement of the parties; provided, however, that any such termination by mutual agreement shall in all cases be deemed to provide that Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction) shall remain in full force and effect. Upon termination of this Agreement, the Company shall not have any liability to the Agent for any discount, commission or other compensation with respect to any Placement Shares not otherwise sold by the Agent under this Agreement.

 

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

 

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

 

Ladenburg Thalmann & Co. Inc.

640 5th Avenue, 4th Floor

New York, NY 10019

Attention: General Counsel

 

with a copy to:

 

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

One Financial Center

Boston, MA 02111

Attention: Daniel A. Bagliebter, Esq.

Email: DABagliebter@mintz.com

 

and if to the Company, shall be delivered to:

 

 

2070 Las Palmas Drive

Carlsbad, CA 92011

Attention: Will McGuire

Email: wmcguire@ramed.com

 

with a copy to:

 

Wilson Sonsini Goodrich & Rosati, P.C.

12235 El Camino Real

24

 

 

San Diego, CA 92130

Attention: Martin J. Waters and Eric Hsu

Email: mwaters@wsgr.com and ehsu@wsgr.com

 

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

 

An electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this Section 14 if sent to the electronic mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives confirmation of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”) which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

 

15. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and the Agent and their respective successors and the affiliates, controlling persons, officers and directors referred to in Section 11 hereof. References to any of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party.

 

16. 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 share consolidation, stock split, stock dividend, corporate domestication or similar event effected with respect to the Placement Shares.

 

17. Entire Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Placement Notices issued pursuant hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof; provided that the Engagement Letter between the Company and the Agent dated as of August 26, 2022 remains in effect. Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Agent. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected in this Agreement.

 

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

 

19. CONSENT TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER 

25

 

 

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

 

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

 

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

 

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

 

23. Permitted Free Writing Prospectuses.

 

The Company represents, warrants and agrees that, unless it obtains the prior consent of the Agent, which shall not be unreasonably withheld, conditioned or delayed, and the Agent represents, warrants and agrees that, unless it obtains the prior consent of the Company, which shall not be unreasonably withheld, conditioned or delayed, it has not made and will not make any offer relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be filed with the Commission. Any such free writing prospectus consented to by the Agent or by the Company, as the case may be, is hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company represents and warrants that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely filing with the Commission where required, legending and record keeping. For the purposes of clarity, the parties hereto agree that all free writing prospectuses, if any, listed in Exhibit 23 hereto are Permitted Free Writing Prospectuses.

 

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

 

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

 

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

 

c. No Agent has provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement and it has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;

26

 

 

 

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

 

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

 

25. Definitions.

 

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

 

“Agent’s Information” the parties acknowledge that no information was provided by or on behalf of the Agent.

 

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

 

“Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

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

 

“Lien” means a lien, charge, pledge, securities interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material Adverse Effect” means (i) a material adverse effect on the legality, validity or enforceability of any Incorporated Document or the Agreement, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Incorporated Document or the Agreement. 

 

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

 

“Subsidiary” means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any successors to any of the foregoing).

27

 

 

 

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

 

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

 

[Remainder of the page intentionally left blank]

28

 

 

 

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

	
 
	
Very truly yours,
	
 

	
 
	
 
	
 

	
 
	
RA MEDICAL SYSTEMS, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 /s/ Jonathan Will McGuire
	
 

	
 
	
Name:
	
 Jonathan Will McGuire
	
 

	
 
	
Title:
	
 Chief Executive Officer
	
 

	
 
	
 
	
 
	
 

 

 

 

	
 
	
ACCEPTED as of the date first-above written:
	
 

	
 
	
 
	
 

	
 
	
LADENBURG THALMANN & CO. INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 /s/ Nicholas Stergis
	
 

	
 
	
Name: 
	
 Nicholas Stergis
	
 

	
 
	
Title:
	
 Managing Director Investment Banking
	
 

 

 

29

 

 

 

SCHEDULE 1

__________________________ 

FORM OF PLACEMENT NOTICE

____________________________

	
From: 
	
Ra Medical Systems, Inc.

	
 
	
 

	
To: 
	
[●]

	
 
	
 

	
Attention:
	
[●]

	
 
	
 

	
Subject: 
	
At Market Issuance--Placement Notice

	
 
	
 

	
Date:
	
_____________, 20___

 

Gentlemen:

 

Pursuant to the terms and subject to the conditions contained in the At Market Issuance Sales Agreement between Ra Medical Systems, Inc., a Delaware corporation (the “Company”), Ladenburg Thalmann & Co. Inc. (the “Agent”) dated September 2, 2022, the Company hereby requests that the Agent sell up to [_____] shares of the Company’s Common Stock, $0.0001 par value per share, at a minimum market price of $[____] per share, during the time period beginning [month, day, time] and ending [month, day, time].

 

 

 

 

SCHEDULE 2

_______________________________________

Notice Parties 

_______________________________________

The Company

 

Jonathan Will McGuire

 

Brian Conn

 

The Agent

 

ATM@ladenburg.com

 

 

 

 

 

 

 

SCHEDULE 3

__________________________

Compensation 

__________________________

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

 

 

 

 

EXHIBIT 7(l)

Form of Representation Date Certificate

 

____________, 20__

 

This Representation Date Certificate (this “Certificate”) is executed and delivered in connection with Section 7(l) of the At Market Issuance Sales Agreement (the “Agreement”), dated September 2, 2022 and entered into between Ra Medical Systems, Inc. (the “Company”) and Ladenburg Thalmann & Co. Inc. (the “Agent”). All capitalized terms used but not defined herein shall have the meanings given to such terms in the Agreement.

 

The Company hereby certifies as follows:

 

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

 

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

 

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

 

4. Subsequent to the date of the most recent financial statements in the Prospectus, and except as described in the Prospectus, including the Incorporated Documents, there has been no Material Adverse Effect.

 

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

 

6. No order suspending the qualification or registration of the Placement Shares under the securities or Blue Sky laws of any jurisdiction are in effect and no proceeding for such purpose is pending before, or threatened, to the Company’s knowledge or in writing by, any securities or other governmental authority (including, without limitation, the Commission).

 

 

 

 

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

 

	
 
	
RA MEDICAL SYSTEMS, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name:
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

 

 

 

 

 

EXHIBIT 23

 

Permitted Issuer Free Writing Prospectuses

[None.]

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