Document:

Exhibit 10.9

 

SUBSCRIPTION AGREEMENT

 

This Subscription Agreement (this “Agreement”)
is made and entered into as of September 23, 2019 (the “Effective Date”) by and among Proteon Therapeutics, Inc.,
a Delaware corporation (the “Company”), and the purchasers listed on the signature pages hereto
(each a “Purchaser” and together the “Purchasers”). Certain terms used and
not otherwise defined in the text of this Agreement are defined in Section 11 hereof.

 

RECITALS

 

WHEREAS, the Company and the Purchasers
are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of
the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506 of Regulation D promulgated
by the United States Securities and Exchange Commission (the “Commission”) under the 1933 Act;

 

WHEREAS, the Company desires to sell to
the Purchasers, and the Purchasers desire to purchase from the Company, (i) up to $27,200,000.00 of shares of Series 1
Convertible Non-Voting Preferred Stock, par value $0.001 per share (the “Series 1 Preferred Stock”),
having the relative rights, preferences, limitations and powers set forth in the Certificate of Designation of Preferences, Rights
and Limitations of Series 1 Convertible Non-Voting Preferred Stock, in the form attached hereto as Exhibit A (the
 “Certificate of Designation”) at a purchase price equal to the Series 1 Preferred Stock Purchase
Price (defined below), and (ii) up to $15,300,000.00 (the “Common Maximum Amount”) of shares of
Common Stock, par value $0.001 (the “Common Stock”) at a purchase price equal to the Common Stock Purchase
Price (defined below), each in accordance with the terms and provisions of this Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing and the mutual representations, warranties and covenants herein contained, the parties hereto hereby agree as follows:

 

SECTION 1.     Authorization of Securities.

 

1.01       The
Company has authorized the sale and issuance of shares of Series 1 Preferred Stock and Common Stock on the terms and subject
to the conditions set forth in this Agreement. The shares of Series 1 Preferred Stock and Common Stock sold hereunder at the
Closing (as defined below) shall be referred to as the “Securities.”

 

SECTION 2.     Sale and Purchase
of the Securities.

 

2.01     Closing
Securities. Upon the terms and subject to the conditions herein contained, the Company agrees to sell to each Purchaser,
and each Purchaser agrees to purchase from the Company, at a closing (the “Closing” and the date of
the Closing, the “Closing Date”) to occur immediately following the Effective Time (as such term is
defined in that certain Agreement and Plan of Merger and Reorganization by and among the Company, REM 1
Acquisition, Inc. and ArTara Therapeutics, Inc., dated as of the date hereof (the “Merger
Agreement”)), that number of Securities set forth opposite such Purchaser’s name on the Schedule
of Purchasers under the heading “Closing Shares” (the “Closing Shares”) for the
purchase price to be paid by each Purchaser set forth opposite such Purchaser’s name on the Schedule of Purchasers.

 

    1

     

    

 

2.02         At
or prior to the Closing, each Purchaser will pay the applicable purchase price set forth opposite such Purchaser’s name on
the Schedule of Purchasers by wire transfer of immediately available funds in accordance with wire instructions provided by the
Company to the Purchasers prior to the Closing.

 

SECTION 3.     Additional Purchasers.
During the period between the date hereof and the Closing Date, additional purchasers who are existing stockholders of the Company
may agree to purchase up to an aggregate of $2,500,000 in shares of Common Stock of the Company pursuant to this Agreement, by
executing a joinder agreement with the Company, pursuant to which such additional purchaser(s) shall become party(ies) hereto
and to the Registration Rights Agreement (defined below). From and after execution of such joinder agreement, such additional purchaser(s) shall
be deemed to be “Purchaser(s)” hereunder and the Company shall be entitled to unilaterally amend the Schedule of Purchasers
for such additional purchasers. For the avoidance of doubt, in no event will the Company issue more than the Common Maximum Amount
of shares of Common Stock (excluding the Series 1 Preferred Conversion Shares) pursuant to this Agreement.

 

SECTION 4.     Representations
and Warranties of the Purchasers. Each Purchaser, severally and not jointly, represents and warrants to the Company that the
statements contained in this Section 4 are true and correct as of the Effective Date, and will be true and correct
as of the Closing Date:

 

4.01         Validity.
The execution, delivery and performance of this Agreement and the consummation by the Purchaser of the transactions contemplated
hereby have been duly authorized by all necessary corporate, partnership, limited liability or similar actions, as applicable,
on the part of such Purchaser. This Agreement has been duly executed and delivered by the Purchaser and constitutes a valid and
binding obligation of the Purchaser, enforceable against it in accordance with its terms, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement
of creditors’ rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief,
or other equitable remedies.

 

4.02         Brokers.
There is no broker, investment banker, financial advisor, finder or other person which has been retained by or is authorized to
act on behalf of the Purchaser who might be entitled to any fee or commission for which the Company will be liable in connection
with the execution of this Agreement and the consummation of the transactions contemplated hereby.

 

4.03         Investment
Representations and Warranties. The Purchaser understands and agrees that the offering and sale of the Securities has
not been registered under the 1933 Act or any applicable state securities laws and is being made in reliance upon federal and
state exemptions for transactions not involving a public offering which depend upon, among other things, the bona fide nature
of the investment intent and the accuracy of the Purchaser’s representations as expressed herein.

 

 

    2

     

    

 

4.04         Acquisition
for Own Account; No Control Intent. The Purchaser is acquiring the Securities for its own account for investment and not with
a view towards distribution in a manner which would violate the 1933 Act or any applicable state or other securities laws. The
Purchaser is not party to any agreement providing for or contemplating the distribution of any of the Securities. The Purchaser
has no present intent to effect a “change of control” of the Company as such term is understood under the rules promulgated
pursuant to Section 13(d) of the 1934 Act.

 

4.05         No
General Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other
communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television, radio
or the internet or presented at any seminar or any other general solicitation or general advertisement. The purchase of the Securities
has not been solicited by or through anyone other than the Company.

 

4.06         Ability
to Protect Its Own Interests and Bear Economic Risks. The Purchaser has the capacity to protect its own interests in connection
with the transactions contemplated by this Agreement and is capable of evaluating the merits and risks of the investment in the
Securities. The Purchaser is able to bear the economic risk of an investment in the Securities and is able to sustain a loss of
all of its investment in the Securities without economic hardship, if such a loss should occur.

 

4.07         Accredited
Investor; No Bad Actor. The Purchaser is an “accredited investor” as that term is defined in Rule 501(a) under
the 1933 Act. Such Purchaser has not taken any of the actions set forth in, and is not subject to, the disqualification provisions
of Rule 506(d)(1) of the 1933 Act.

 

4.08         Access
to Information. The Purchaser has been given access to Company documents, records, and other information, and has had adequate
opportunity to ask questions of, and receive answers from, the Company’s officers, employees, agents, accountants and representatives
concerning the Company’s business, operations, financial condition, assets, liabilities and all other matters relevant to
its investment in the Securities. Purchaser understands that an investment in the Securities bears significant risk and represents
that it has reviewed the SEC Reports, which serve to qualify certain of the Company representations set forth below.

 

4.09         Restricted
Securities. The Purchaser understands that the Securities will be characterized as “restricted securities” under
the federal securities laws inasmuch as they are being acquired from the Company in a private placement under Section 4(a)(2) of
the 1933 Act and that under such laws and applicable regulations such Securities may be resold without registration under the 1933
Act only in certain limited circumstances.

 

4.11         Short
Sales. Between the time the Purchaser learned about the offering contemplated by this Agreement and the public
announcement of the offering, the Purchaser has not engaged in any short sales (as defined in Rule 200 of Regulation SHO
under the 1934 Act (“Short Sales”)) or similar transactions with respect to the Common Stock or any
securities exchangeable or convertible for Common Stock, nor has the Purchaser, directly or indirectly, caused any person to
engage in any Short Sales or similar transactions with respect to the Common Stock.

 

    3

     

    

 

4.12         Tax
Advisors. The Purchaser has had the opportunity to review with the Purchaser’s own tax advisors the federal, state and
local tax consequences of its purchase of the Securities set forth opposite such Purchaser’s name on the Schedule of Purchasers,
where applicable, and the transactions contemplated by this Agreement. The Purchaser is relying solely on the Purchaser’s
own determination as to tax consequences or the advice of such tax advisors and not on any statements or representations of the
Company or any of its agents and understands that the Purchaser (and not the Company) shall be responsible for the Purchaser’s
own tax liability that may arise as a result of the transactions contemplated by this Agreement.

 

SECTION 5.     Representations and
Warranties by the Company. Assuming the accuracy of the representations and warranties of the Purchasers set forth in Section 4
and except as set forth in the reports, schedules, forms, statements and other documents filed by the Company with the United States
Securities and Exchange Commission (the “Commission”) pursuant to the 1934 Act (collectively, the “SEC
Reports”), which disclosures serve to qualify these representations and warranties in their entirety, the Company
represents and warrants to the Purchasers that the statements contained in this Section 5 are true and correct as of
the Effective Date, and will be true and correct as the Closing Date:

 

5.01         SEC
Reports. The Company has timely filed all of the reports, schedules, forms, statements and other documents required to be filed
by the Company with the Commission pursuant to the reporting requirements of the 1934 Act. The SEC Reports, at the time they were
filed with the Commission, (i) complied as to form in all material respects with the requirements of the 1934 Act and the
1934 Act Regulations and (ii) did not include 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, in the light of the circumstances under which they were made,
not misleading.

 

5.02         Independent
Accountants. The accountants who certified the audited consolidated financial statements of the Company included in the SEC
Reports are independent public accountants as required by the 1933 Act, the 1933 Act Regulations, the 1934 Act and the 1934 Act
Regulations, and the Public Company Accounting Oversight Board.

 

5.03         Financial
Statements; Non-GAAP Financial Measures. The consolidated financial statements included or incorporated by reference in the
SEC Reports, together with the related notes, present fairly, in all material respects, the financial position of the Company and
its consolidated subsidiaries at the dates indicated and the statement of operations, stockholders’ equity and cash flows
of the Company and its consolidated subsidiaries for the periods specified; said financial statements have been prepared in conformity
with U.S. generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout
the periods involved, except in the case of unaudited, interim financial statements, subject to normal year-end audit adjustments
and the exclusion of certain footnotes.

 

    4

     

    

   

5.04         No
Material Adverse Change in Business. Except as otherwise stated or disclosed in the SEC Reports, since March 31, 2019,
(i) there has been no material adverse change in the condition, financial or otherwise, or in the earnings, business affairs
or business prospects of the Company and its subsidiaries considered as one enterprise, whether or not arising in the ordinary
course of business (a “Material Adverse Effect”), other than any such change arising from steps taken
by the Company after March 31, 2019 to terminate personnel, to amend or terminate contracts, and to discontinue or wind-down
certain business activities, (ii) there have been no transactions entered into by the Company or any of its subsidiaries,
other than those in the ordinary course of business and except as contemplated in this Agreement and the Merger Agreement, which
are material with respect to the Company and its subsidiaries considered as one enterprise, and (iii) there has been no dividend
or distribution of any kind declared, paid or made by the Company on any class of its capital stock.

 

5.05         Good
Standing of the Company. The Company has been duly incorporated and is validly existing as a corporation in good standing under
the laws of the State of Delaware and has corporate power and authority to own, lease and operate its properties and to conduct
its business as disclosed in the SEC Reports and to enter into and perform its obligations under this Agreement; and the Company
is duly qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the
failure so to qualify or to be in good standing would not result in a Material Adverse Effect.

 

5.06         Good
Standing of Subsidiaries. Each subsidiary of the Company has been duly incorporated or organized and is validly existing in
good standing under the laws of the jurisdiction of its incorporation or organization, has corporate or similar power and authority
to own, lease and operate its properties and to conduct its business as described in the SEC Reports and is duly qualified to transact
business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership
or leasing of property or the conduct of business, except where the failure to so qualify or to be in good standing would not result
in a Material Adverse Effect. All of the issued and outstanding capital stock of each subsidiary has been duly authorized and validly
issued, is fully paid and non-assessable and is owned by the Company, directly or through subsidiaries, free and clear of any security
interest, mortgage, pledge, lien, encumbrance, claim or equity. None of the outstanding shares of capital stock of any subsidiary
were issued in violation of the preemptive or similar rights of any securityholder of such subsidiary. For the avoidance of doubt,
the term “subsidiary” and “subsidiaries” shall include the ArTara Therapeutics, Inc. from and after
the effective time of the Merger (as defined in the Merger Agreement).

 

5.07         Capitalization.
As of the date hereof, the Company has an authorized capitalization as set forth in the SEC Reports and, as of immediately
prior to the Closing, the Company will have an authorized capitalization as disclosed in the registration statement on
Form S-4 to be filed with the Commission registering the shares of the Company’s capital stock to be issued
pursuant to the Merger Agreement (the “S-4 Registration Statement”). The outstanding shares of
capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable. None of the
outstanding shares of capital stock of the Company were issued in violation of the preemptive or other similar rights of any
securityholder of the Company which have not been waived.

 

    5

     

    

 

5.08         Validity.
This Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and binding obligation of
the Company, enforceable against it in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors’ rights generally,
and as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

5.09         Authorization
and Description of Securities. Upon the filing of the Certificate of Designation with the Secretary of State of the State of
Delaware, the Series 1 Preferred Stock will have been duly and validly authorized and, when issued and paid for pursuant to
this Agreement, will be validly issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions,
except for restrictions on transfer set forth in this Agreement or imposed by applicable securities laws, and shall not be subject
to preemptive or similar rights of stockholders. Upon the due conversion of the Series 1 Preferred Stock the Series 1
Preferred Conversion Shares will be validly issued, fully paid and non-assessable free and clear of all encumbrances and restrictions,
except for restrictions on transfer set forth in this Agreement or imposed by applicable securities laws, and shall not be subject
to preemptive or similar rights of stockholders.

 

5.10         Absence
of Violations, Defaults and Conflicts. Subject to obtaining the Required Parent Stockholder Vote (as defined in the
Merger Agreement), neither the Company nor any of its subsidiaries is (A) in violation of its charter, bylaws or similar
organizational document, except, for such violations that would not, singly or in the aggregate, result in a Material Adverse
Effect, (B) in default in the performance or observance of any obligation, agreement, covenant or condition contained in
any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to
which the Company or any of its subsidiaries is a party or by which it or any of them may be bound or to which any of the
properties or assets of the Company or any subsidiary is subject (collectively, “Agreements and
Instruments”), except for such defaults that would not, singly or in the aggregate, result in a Material
Adverse Effect, or (C) in violation of any law, statute, rule, regulation, judgment, order, writ or decree of any
arbitrator, court, governmental body, regulatory body, administrative agency or other authority, body or agency having
jurisdiction over the Company or any of its subsidiaries or any of their respective properties, assets or operations (each, a
 “Governmental Entity”), except for such violations that would not, singly or in the aggregate,
result in a Material Adverse Effect. The execution, delivery and, subject to obtaining the Required Parent Stockholder Vote
(as defined in the Merger Agreement), the performance of this Agreement and the consummation of the transactions contemplated
herein (including the issuance and sale of the Securities and the Series 1 Preferred Conversion Shares) and compliance
by the Company with its obligations hereunder do not and will not, whether with or without the giving of notice or passage of
time or both, conflict with or constitute a breach of, or default or Repayment Event (as defined below) under, or result in
the creation or imposition of any lien, charge or encumbrance upon any properties or assets of the Company or any
subsidiary pursuant to, the Agreements and Instruments (except for such conflicts, breaches, defaults or Repayment Events or
liens, charges or encumbrances that would not, singly or in the aggregate, result in a Material Adverse Effect), nor will
such action result in any violation of (i) the provisions of the certificate of incorporation, by-laws or similar
organizational document of the Company or any of its subsidiaries or (ii) any applicable law, statute, rule, regulation,
judgment, order, writ or decree of any Governmental Entity, except in the case of clause (ii) for such violations as
would not, singly or in the aggregate, result in a Material Adverse Effect. As used herein, a “Repayment
Event” means any event or condition which gives the holder of any note, debenture or other evidence of
indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or
repayment of all or a portion of such indebtedness by the Company or any of its subsidiaries.

 

    6

     

    

 

5.11        Absence
of Proceedings. Except as disclosed in the SEC Reports, there is no action, suit, proceeding, inquiry or investigation before
or brought by any Governmental Entity now pending or, to the knowledge of the Company, threatened, against or affecting the Company
or any of its subsidiaries, which would reasonably be expected to result in a Material Adverse Effect, or which would reasonably
be expected to materially and adversely affect the consummation of the transactions contemplated in this Agreement or the Merger
Agreement or the performance by the Company of its obligations hereunder and thereunder.

 

5.12         Absence
of Further Requirements. No filing with, or authorization, approval, consent, license, order, registration, qualification or
decree of, any Governmental Entity is necessary or required for the performance by the Company of its obligations hereunder, in
connection with the offering, issuance, or sale of the Securities hereunder or the consummation of the transactions contemplated
by this Agreement, except such as have been already obtained or as may be required to list the Company’s common stock on
any National Exchange (as defined in the Certificate of Designation), as may be required under state securities laws or the filings
required pursuant to Section 6.03 of this Agreement.

 

5.13         Possession
of Licenses and Permits. The Company and its subsidiaries possess such permits, licenses, approvals, consents and other authorizations
(collectively, “Governmental Licenses”) issued by the appropriate Governmental Entities necessary to
conduct the business now operated by them, except where the failure so to possess would not, singly or in the aggregate, result
in a Material Adverse Effect. The Company and its subsidiaries are in compliance with the terms and conditions of all Governmental
Licenses, except where the failure so to comply would not, singly or in the aggregate, result in a Material Adverse Effect. All
of the Governmental Licenses are valid and in full force and effect, except when the invalidity of such Governmental Licenses or
the failure of such Governmental Licenses to be in full force and effect would not, singly or in the aggregate, result in a Material
Adverse Effect. Neither the Company nor any of its subsidiaries has received any notice of proceedings relating to the revocation
or modification of any Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable decision, ruling
or finding, would result in a Material Adverse Effect.

 

5.14         Title
to Property. Except as disclosed in the SEC Reports, the Company and its subsidiaries do not own any real property. The
Company and its subsidiaries have title to all tangible personal property owned by them, in each case, free and clear of all
mortgages, pledges, liens, security interests, claims, restrictions or encumbrances of any kind except such as (A) are
described in the SEC Reports or (B) do not, singly or in the aggregate, 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 or any of its
subsidiaries; and all of the leases and subleases material to the business of the Company and its subsidiaries, considered as
one enterprise, and under which the Company or any of its subsidiaries holds properties described in the SEC Reports, are in
full force and effect, and neither the Company nor any such subsidiary has any notice of any material claim of any sort that
has been asserted by anyone adverse to the rights of the Company or any subsidiary under any of the leases or subleases
mentioned above, or affecting or questioning the rights of the Company or such subsidiary to the continued possession of the
leased or subleased premises under any such lease or sublease.

 

    7

     

    

 

5.15         Intellectual
Property. The Company and its subsidiaries own or possess the right to use all patents, patent applications, inventions,
licenses, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information
or procedures), trademarks, service marks, trade names, domain names, copyrights, and other intellectual property, and
registrations and applications for registration of any of the foregoing (collectively, “Intellectual
Property”) necessary to conduct their business as presently conducted and currently contemplated to be
conducted in the future as described in the SEC Reports and S-4 Registration Statement and, to the knowledge of the Company,
neither the Company nor any of its subsidiaries, whether through their respective products and services or the conduct of
their respective businesses, has infringed, misappropriated, conflicted with or otherwise violated, or is currently
infringing, misappropriating, conflicting with or otherwise violating, and none of the Company or its subsidiaries have
received any heretofore unresolved communication or notice of infringement of, misappropriation of, conflict with or
violation of, any Intellectual Property of any other person or entity, other than as described in the SEC Reports or S-4
Registration Statement. Neither the Company nor any of its subsidiaries has received any communication or notice (in each
case that has not been resolved) alleging that by conducting their business as described in the SEC Reports or S-4
Registration Statement, such parties would infringe, misappropriate, conflict with, or violate, any of the
Intellectual Property of any other person or entity. The Company knows of no infringement, misappropriation or violation by
others of Intellectual Property owned by or licensed to the Company or its subsidiaries which would reasonably be expected to
result in a Material Adverse Effect. The Company and its subsidiaries have taken all reasonable steps necessary to secure
their interests in such Intellectual Property from their employees and contractors and to protect the confidentiality of all
of their confidential information and trade secrets. None of the Intellectual Property employed by the Company or its
subsidiaries has been obtained or is being used by the Company or its subsidiaries in violation of any contractual obligation
binding on the Company or any of its subsidiaries or, to the knowledge of the Company, any of their respective officers,
directors or employees, except as would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect. All Intellectual Property owned or exclusively licensed by the Company or its subsidiaries is free and clear
of all liens, encumbrances, defects or other restrictions (other than non-exclusive licenses granted in the ordinary course
of business), except those that would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect. The Company and its subsidiaries are not subject to any judgment, order, writ, injunction or decree of any
court or any Governmental Entity, nor has the Company or any of its subsidiaries entered into or become a party to any
agreement made in settlement of any pending or threatened litigation, which materially restricts or impairs their use of any
Intellectual Property.

 

    8

     

    

 

5.16         Company
IT Systems. The Company and its subsidiaries own or have a valid right to access and use all computer systems, networks, hardware,
software, databases, websites, and equipment used to process, store, maintain and operate data, information, and functions used
in connection with the business of the Company and its subsidiaries (the “Company IT Systems”), except
as would not, individually or in the aggregate, have a Material Adverse Effect. The Company IT Systems are adequate for, and operate
and perform in all material respects as required in connection with, the operation of the business of the Company and its subsidiaries
as currently conducted, except as would not, individually or in the aggregate, have a Material Adverse Effect. The Company and
its subsidiaries have implemented commercially reasonable backup, security and disaster recovery technology consistent in all material
respects with applicable regulatory standards and customary industry practices.

 

5.17         Cybersecurity.
Except as would not reasonably be expected to have a Material Adverse Effect, (A) there has been no security breach or other
compromise of or relating to the Company IT Systems; (B) the Company has not been notified of, and has no knowledge of any
event or condition that would reasonably be expected to result in, any such security breach or other compromise of the Company
IT Systems; (C) the Company and its subsidiaries have implemented policies and procedures with respect to the Company IT Systems
that are reasonably consistent with industry standards and practices, or as required by applicable regulatory standards; and (D) the
Company and its subsidiaries are presently in material compliance with all applicable laws or statutes, judgments, orders, rules and
regulations of any court or arbitrator or governmental or regulatory authority and contractual obligations relating to the privacy
and security of the Company IT Systems and to the protection of the Company IT Systems from unauthorized use, access, misappropriation
or modification.

 

5.18         Environmental
Laws. The Company and each of its subsidiaries are in compliance with and since January 1, 2017 have complied with all
applicable Environmental Laws, which compliance includes the possession by the Company of all permits and other Governmental Authorizations
required under applicable Environmental Laws and compliance with the terms and conditions thereof, except for any failure to be
in such compliance that, either individually or in the aggregate, would not reasonably be expected to have a Company Material
Adverse Effect. Neither the Company nor any of its subsidiaries has received since January 1, 2017 (or prior to that time,
which is pending and unresolved), any written notice or other communication (in writing or otherwise), whether from a Governmental
Entity or other Person, that alleges that the Company or any of its subsidiaries is not in compliance with or has liability pursuant
to any Environmental Law and, to the knowledge of the Company, there are no circumstances that would reasonably be expected to
prevent or interfere with the Company’s or any of its subsidiaries’ compliance in any material respects with any Environmental
Law, except where such failure to comply or such liability would not reasonably be expected to have a Material Adverse Effect.
No current or (during the time a prior property was leased or controlled by the Company or any of its subsidiaries) prior property
leased or controlled by the Company or any of its subsidiaries has had a release of or exposure to Hazardous Materials in violation
of Environmental Law, except as would not reasonably be expected to have a Material Adverse Effect.

 

    9

     

    

  

5.19          Accounting
Controls and Disclosure Controls. The Company and its subsidiaries maintain effective internal control over financial reporting
(as defined under Rule 13a-15 and 15d-15 under the 1934 Act Regulations) and a system of internal accounting controls sufficient
to provide reasonable assurances that (A) transactions are executed in accordance with management’s general or specific
authorization; (B) transactions are recorded as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s
general or specific authorization; and (D) the recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any differences. Since the end of the Company’s most
recent audited fiscal year, there has been (1) no material weakness in the Company’s internal control over financial
reporting (whether or not remediated) and (2) no change in the Company’s internal control over financial reporting
that has materially adversely affected, or is reasonably likely to materially adversely affect, the Company’s internal control
over financial reporting.

 

5.20         Compliance
with the Sarbanes-Oxley Act. The Company is in compliance in all material respects with all provisions of the Sarbanes-Oxley
Act of 2002 and all rules and regulations promulgated thereunder or implementing the provisions thereof that are in effect
and with which the Company is required to comply.

 

5.21          Payment
of Taxes. All United States federal income tax returns of the Company and its subsidiaries required by law to be filed have
been filed and all taxes shown by such returns or otherwise assessed, which are due and payable, have been paid, except assessments
against which appeals have been or will be promptly taken and as to which adequate reserves have been provided. No assessment in
connection with United States federal tax returns has been made against the Company. The Company and its subsidiaries have filed
all other tax returns that are required to have been filed by them through the date hereof or have timely requested extensions
thereof pursuant to applicable foreign state, local or other law except insofar as the failure to file such returns would not result
in a Material Adverse Effect and has paid all taxes due pursuant to such returns or all taxes due and payable pursuant to any assessment
received by the Company and its subsidiaries, except for such taxes, if any, as are being contested in good faith and as to which
adequate reserves have been established by the Company or its subsidiaries and except where the failure to pay such taxes would
not result in a Material Adverse Effect. The charges, accruals and reserves on the books of the Company in respect of any income
and corporation tax liability for any years not finally determined are adequate to meet any assessments or reassessments for additional
income tax for any years not finally determined, except to the extent of any inadequacy that would not result in a Material Adverse
Effect.

 

    10

     

    

 

5.22         ERISA.
Except as would not reasonably be expected to have a Material Adverse Effect: (i) at no time in the past six years has
the Company or any ERISA Affiliate maintained, sponsored, participated in, contributed to or had any liability or obligation
in respect of any Employee Benefit Plan subject to Title IV of ERISA or Section 412 of the Code, any
 “multiemployer plan” as defined in Section 3(37) of ERISA or any multiple employer plan for which the
Company or any ERISA Affiliate has incurred or could incur material liability under Section 4063 or 4064 of ERISA,
(ii) no “welfare benefit plan” as defined in Section 3(1) of ERISA provides or promises, or at any
time provided or promised, retiree health, or other post-termination benefits except to the extent such benefit is fully
insured or as may be required by the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or similar state law
and (iii) each Employee Benefit Plan is and has been operated in compliance with its terms and all applicable laws,
including but not limited to ERISA and the Code. Each Employee Benefit Plan intended to be qualified under Code
Section 401(a) has a favorable determination or opinion letter from the Internal Revenue Service (the
 “IRS”) upon which it can rely, and any such determination or opinion letter remains in effect and
has not been revoked and no event has occurred and no facts or circumstances exist that could reasonably be expected to
result in the loss of qualification or tax exemption of any such Employee Benefit Plan. With respect to each Foreign Benefit
Plan, such Foreign Benefit Plan (1) if intended to qualify for special tax treatment, meets, in all material
respects, the requirements for such treatment, and (2) if required to be funded, is funded to the extent required by
applicable law. The Company does not have any obligations under any collective bargaining agreement with any union. As used
in this Section 5.23, “Code” means the Internal Revenue Code of 1986, as amended;
 “Employee Benefit Plan” means any “employee benefit plan” within the meaning of
Section 3(3) of ERISA, including, without limitation, all equity and equity-based, severance, employment,
change-in-control, medical, disability, fringe benefit, bonus, incentive, deferred compensation, employee loan and all other
employee benefit plans, agreements, programs, policies or other arrangements, whether or not subject to ERISA, under which
(x) any current or former employee, director, independent contractor or other service provider of the Company or its
subsidiaries has any present or future right to benefits and which are contributed to, sponsored by or maintained by the
Company or any of the subsidiaries or (y) the Company or any of the subsidiaries has had or has any present or future
direct or contingent obligation or liability; “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended; “ERISA Affiliate” means any member of the company’s controlled group
as determined pursuant to Code Section 414(b), (c), (m) or (o), with respect to any Person, each business or entity
under “common control” with such Person within the meaning of Section 4001(a)(14) of ERISA; and
 “Foreign Benefit Plan” means any Employee Benefit Plan established, maintained or contributed to
outside of the United States of America and which is not subject to United States law.

 

5.23         Insurance.
The Company and the subsidiaries carry or are entitled to the benefits of insurance, with what the Company reasonably believes
to be financially sound and reputable insurers, in such amounts and covering such risks as is adequate for the conduct of their
respective businesses and the value of their respective properties and assets, and all such insurance is in full force and effect.
The Company has no reason to believe that it or any of the subsidiaries will not be able (A) to renew its existing insurance
coverage as and when such policies expire or (B) to obtain comparable coverage from similar institutions as may be necessary
or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse Effect.

 

    11

     

    

 

5.24         Investment
Company Act. The Company is not required, and upon the issuance and sale of the Securities will not be required, to register
as an “investment company” under the Investment Company Act of 1940, as amended (the “1940 Act”).

 

5.25         No
Unlawful Payments. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer,
agent, employee, Affiliate or other person acting on behalf of the Company or any of its subsidiaries has taken any action, directly
or indirectly, that would result in a violation by such persons of any applicable anti-corruption laws, including, without limitation,
making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise
to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of
anything of value to any “government official” (including any officer or employee of a government or government-owned
or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of
any of the foregoing, or any political party or party official or candidate for political office) in violation of any applicable
anti-corruption laws, and the Company and its subsidiaries have conducted their businesses in compliance with applicable anti-corruption
laws and have instituted and maintain policies and procedures designed to ensure continued compliance therewith.

 

5.26         Compliance
with Anti-Money Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times
in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and
regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental
Entity (collectively, the “Anti-Money Laundering Laws”); and no action, suit or proceeding by or before
any Governmental Entity involving the Company or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending
or, to the knowledge of the Company, threatened.

 

5.27         No
Conflicts with Sanctions Laws. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director,
officer, agent, employee, Affiliate or other person acting on behalf of the Company or any of its subsidiaries is an individual
or entity (“Person”) currently the subject or target of any sanctions administered or enforced by the
United States Government, including, without limitation, the U.S. Department of the Treasury’s Office of Foreign Assets Control
(“OFAC”), the United Nations Security Council (“UNSC”), the European Union,
Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”),
nor is the Company or any of its subsidiaries located, organized or resident in a country or territory that is the subject of Sanctions;
and the Company will not knowingly directly or indirectly use the proceeds of the sale of the Securities, or lend, contribute or
otherwise make available such proceeds to any subsidiaries, joint venture partners or other Person, to fund any activities of or
the business with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions or
in any other manner that will result in violation by any Person of Sanctions.

 

    12

     

    

 

5.28         Regulatory
Matters. Except as would not, singly or in the aggregate, result in a Material Adverse Effect: (i) neither the
Company nor any of its subsidiaries has received any FDA Form 483, notice of adverse finding, warning letter or other
correspondence or notice from the U.S. Food and Drug Administration (“FDA”) or any other
Governmental Entity alleging or asserting noncompliance with any Applicable Laws (as defined in clause (ii) below) or
Authorizations (as defined in clause (iii) below); (ii) the Company and each of its subsidiaries is and has been in
compliance with statutes, laws, ordinances, rules and regulations applicable to the Company and its subsidiaries for the
ownership, testing, development, manufacture, packaging, processing, use, distribution, marketing, labeling, promotion, sale,
offer for sale, storage, import, export or disposal of any product manufactured or distributed by the Company, including
without limitation, the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301, et seq., similar laws of other
Governmental Entities and the regulations promulgated pursuant to such laws (collectively, “Applicable
Laws”); (iii) the Company and each of its subsidiaries possesses all licenses, certificates, approvals,
clearances, authorizations, permits and supplements or amendments thereto required by any such Applicable Laws and/or to
carry on its businesses as now conducted (“Authorizations”) and such Authorizations are valid and
in full force and effect and the Company is not in violation of any term of any such Authorizations; (iv) neither the
Company nor any of its subsidiaries has received notice of any ongoing claim, action, suit, proceeding, hearing, enforcement,
investigation, arbitration or other action from any Governmental Entity or third party alleging that any product, operation
or activity is in violation of any Applicable Laws or Authorizations or has any knowledge that any such Governmental Entity
or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding, nor, to the
Company’s knowledge, has there been any noncompliance with or violation of any Applicable Laws by the Company or any of
its subsidiaries that could reasonably be expected to require the issuance of any such communication or result in an
investigation, corrective action, or enforcement action by FDA or similar Governmental Entity; (v) neither the Company
nor any of its subsidiaries has received notice that any Governmental Entity has taken, is taking or intends to take action
to limit, suspend, modify or revoke any Authorizations or has any knowledge that any such Governmental Entity is threatening
or is considering such action; and (vi) the Company and each of its subsidiaries has filed, obtained, maintained or
submitted all reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as
required by any Applicable Laws or Authorizations and that all such reports, documents, forms, notices, applications,
records, claims, submissions and supplements or amendments were complete, correct and not misleading on the date filed (or
were corrected or supplemented by a subsequent submission). Neither the Company, any subsidiary nor, to the Company’s
knowledge, any of their respective directors, officers, employees or agents has been convicted of any crime under any
Applicable Laws or has been the subject of an FDA debarment proceeding. Neither the Company nor any subsidiary has been nor
is now subject to FDA’s Application Integrity Policy. To the Company’s knowledge, neither the Company, any
subsidiary nor any of its directors, officers, employees or agents, has made, or caused the making of, any false
statements on, or material omissions from, any other records or documentation prepared or maintained to comply with the
requirements of the FDA or any other Governmental Entity. Neither the Company, any subsidiary nor, to the Company’s
knowledge, any of their respective directors, officers, employees or agents, have with respect to each of the following
statutes, or regulations promulgated thereto, as applicable: (i) engaged in activities under 42 U.S.C. §§
1320a-7b or 1395nn; (ii) knowingly engaged in any activities under 42 U.S.C. § 1320a-7b or the Federal False Claims
Act, 31 U.S.C. § 3729; or (iii) knowingly and willfully engaged in any activities under 42 U. S.C.§ 1320a-7b,
which are prohibited, cause for civil penalties, or constitute a mandatory or permissive exclusion from Medicare, Medicaid,
or any other State Health Care Program or Federal Health Care Program.

 

    13

     

    

 

5.29         Research,
Studies and Tests. The research, nonclinical and clinical studies and tests conducted by, or to the knowledge of the Company,
or on behalf of the Company and its subsidiaries have been and, if still pending, are being conducted with reasonable care and
in all material respects in accordance with experimental protocols, procedures and controls pursuant to all Applicable Laws and
Authorizations; the descriptions of the results of such research, nonclinical and clinical studies and tests contained in the SEC
Reports are accurate and complete in all material respects and fairly present in all material respects the data derived from such
research, nonclinical and clinical studies, and tests; the Company is not aware of any research, nonclinical or clinical studies
or tests, the results of which the Company believes reasonably call into question the research, nonclinical or clinical study or
test results described or referred to in the SEC Reports when viewed in the context in which such results are described; and neither
the Company nor, to the knowledge of the Company, any of its subsidiaries has received any notices or correspondence from any Governmental
Entity that will require the termination, suspension or material modification of any research, nonclinical or clinical study or
test conducted by or on behalf of the Company or its subsidiaries, as applicable.

 

5.30         Private
Placement. Neither the Company nor its subsidiaries, 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 any circumstances that would require
registration under the 1933 Act of the Securities being sold pursuant to this Agreement. Assuming the accuracy of the representations
and warranties of the Purchasers contained in Section 4 hereof, the issuance of the Securities, including the issuance
of the Series 1 Preferred Conversion Shares, is exempt from registration under the 1933 Act.

 

5.31         Registration
Rights. Except as required pursuant to Section 8 of this Agreement, pursuant to the Registration Rights Agreement
or as disclosed in the SEC Reports or S-4 Registration Statement, the Company is presently not under any obligation, and has not
granted any rights, to register under the 1933 Act any of the Company’s presently outstanding securities or any of its securities
that may hereafter be issued that have not expired or been satisfied.

 

SECTION 6.    
Covenants.

 

6.01         Reasonable
Best Efforts. Each party shall use its reasonable best efforts to timely satisfy each of the conditions to be satisfied by
it as provided in Section 7 of this Agreement.

 

6.02         Disclosure
of Transactions and Other Material Information. Within the applicable period of time required by the 1934 Act, the
Company shall file a Current Report on Form 8-K describing the terms and conditions of the transactions contemplated by
this Agreement in the form required by the 1934 Act and attaching the Agreement as an exhibit to such filing (including all
attachments, the “8-K Filing”). The Company shall provide the Purchasers with a reasonable
opportunity to review and provide comments on the draft of such 8-K Filing. Subject to the foregoing, and other than the S-4
Registration Statement, the SEC Reports, any other filings required under the 1934 Act and any press releases issued in
connection with the transactions contemplated hereby or by the Merger Agreement, neither the Company nor any Purchaser shall
issue any press releases or any other public statements with respect to the transactions contemplated hereby. Notwithstanding
the foregoing, and unless otherwise agreed to in writing by the Company and the Purchasers, the Company shall not publicly
disclose the name of any Purchaser or an Affiliate of any Purchaser, or include the name of any Purchaser or an Affiliate of
any Purchaser in any press release or, unless otherwise required by applicable law, any filing with the Commission or any
regulatory agency or the National Exchange, without the prior written consent of such Purchaser.

 

    14

     

    

 

6.03         Pledge
of Securities. The Company acknowledges and agrees that the Securities may be pledged by a Purchaser in connection with a bona
fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall
not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Purchaser effecting a pledge of Securities
shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this
Agreement, including, without limitation, Section 9.01 of this Agreement; provided that a Purchaser
and its pledgee shall be required to comply with the provisions of Section 9.01 of this Agreement in order to effect
a sale, transfer or assignment of Securities to such pledgee. The Company hereby agrees to execute and deliver such documentation
as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by a Purchaser; provided
that any and all costs to effect the pledge of the Securities are borne by the pledgor and/or pledgee and not the Company.

 

6.04         Expenses.
The Company and each Purchaser is liable for, and will pay, its own expenses incurred in connection with the negotiation, preparation,
execution and delivery of this Agreement, including, without limitation, attorneys’ and consultants’ fees and expenses,
except that the Company has agreed to reimburse the BBA Purchasers in an amount of up to $150,000 for BBA Purchasers’ reasonable
legal fees at the time of the Closing to the extent that ArTara Therapeutics, Inc. has not reimbursed the BBA Purchasers for
such amount at the time of the execution of this Agreement.

 

6.05        Listing.
The Company shall use its best efforts to take all steps necessary to maintain the listing of its Common Stock on a National Exchange.

 

6.06       Reservation
of Common Stock. Following the Company’s receipt of the Required Parent Stockholder Vote, the Company shall take all
action necessary to at all times have authorized, and reserved for the purpose of issuance from and after the Closing Date, the
number of Series 1 Preferred Conversion Shares (without taking into account any limitations on conversion of the Series 1
Preferred Stock set forth in the Certificate of Designation).

 

    15

     

    

 

6.07       Participation
in Future Financings.

 

(a)         From
the Effective Date and until the consummation of the Company’s second Qualified Subsequent Financing (as defined below),
each Purchaser that purchases Series 1 Preferred Stock hereunder (the “Preferred Stock Purchasers”)
shall have the right to participate in any Subsequent Financing up to its pro rata amount, calculated as its percentage equity
ownership of the Company’s outstanding equity (without taking into account any beneficial ownership limitations on conversion
or exercise of any Common Stock Equivalents held by such Preferred Stock Purchaser), on the same terms, conditions and price provided
for in the Subsequent Financing, unless the Subsequent Financing is an underwritten public offering (an “Underwritten
Subsequent Financing”), in which case the Company shall offer the Preferred Stock Purchasers the right to participate
in such public offering when it is lawful for the Company to do so, including with respect to any limitations necessary to preserve
the validity of the private placement exemption under the 1933 Act for the offer and sale of the Securities hereunder, but the
Preferred Stock Purchasers shall not be entitled to purchase any particular amount of such public offering. For purposes of this
Agreement, the term “Subsequent Financing” shall mean a financing in which the Company or any of the
subsidiaries proposes to issue Common Stock, or Common Stock Equivalents, for cash consideration, indebtedness or a combination
thereof, other than (i) a rights offering to all holders of Common Stock and Preferred Stock (which may include extending
such rights to holders of Common Stock Equivalents) or (ii) an Exempt Issuance, and the term “Qualified Subsequent
Financing” shall mean a Subsequent Financing (other than an Underwritten Subsequent Financing)_in which the Company
receives at least $10,000,000 in gross proceeds.

 

(b)       At
least 10 Business Days prior to the closing of the Subsequent Financing, the Company shall deliver to the Preferred Stock Purchasers
a written notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall
ask each Preferred Stock Purchaser if it wants to review the details of such financing in order to confirm whether such Preferred
Stock Purchaser wishes to participate in such financing (such additional notice, a “Subsequent Financing Notice”).
Upon the request of a Preferred Stock Purchaser, and only upon a request by such Preferred Stock Purchaser, for a Subsequent Financing
Notice, the Company shall promptly, but no later than one Business Day after such request, deliver a Subsequent Financing Notice
to the Preferred Stock Purchaser. The requesting Preferred Stock Purchaser hereby acknowledges and agrees that the Subsequent Financing
Notice may constitute and may contain material non-public information. The Subsequent Financing Notice shall describe in reasonable
detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder and the person
or persons through or with whom such Subsequent Financing is proposed to be effected and shall include a term sheet or similar
document relating thereto as an attachment.

 

(c)       If
the Preferred Stock Purchaser wishes to participate in such Subsequent Financing it must provide written notice to the
Company by not later than 5:30 p.m. (New York City time) on the fifth Business Day after the Preferred Stock Purchaser
has received the Subsequent Financing Notice that the Preferred Stock Purchaser is willing to participate in the Subsequent
Financing, the amount of the Preferred Stock Purchaser’s participation, and representing and warranting that the
Preferred Stock Purchaser has such funds ready, willing, and available for investment on the terms set forth in the
Subsequent Financing Notice. If the Company receives no such notice from the Preferred Stock Purchaser as of such fifth
Business Day, the Preferred Stock Purchaser shall be deemed to have notified the Company that it does not elect to
participate and the Company may effect the Subsequent Financing on the terms and with the persons set forth in the Subsequent
Financing Notice.

 

    16

     

    

 

(d)       If
by 5:30 p.m. (New York City time) on the fifth Business Day after the Preferred Stock Purchaser has received the Subsequent
Financing Notice, the Company has received written notification by the Preferred Stock Purchaser of its willingness to participate
in the Subsequent Financing (or to cause its designees to participate), then the Company shall effect the Subsequent Financing
with the Preferred Stock Purchaser (in the amount indicated in its notification) and, with respect to the remaining portion of
such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing Notice.

 

(e)       The
Company must provide the Preferred Stock Purchaser with a second Subsequent Financing Notice, and the Preferred Stock Purchaser
will again have the right of participation set forth above in this Section 6.07, if the Subsequent Financing subject
to the initial Subsequent Financing Notice is amended in any material respect or is not consummated for any reason on the terms
set forth in such Subsequent Financing Notice within 30 Business Days after the date of the initial Subsequent Financing Notice.

 

(f)       Notwithstanding
anything to the contrary in this Section 6.07 and unless otherwise agreed to by the Preferred Stock Purchaser, the
Company shall either confirm in writing to the Preferred Stock Purchaser that the transaction with respect to the Subsequent Financing
has been abandoned or shall publicly disclose its intention to issue the securities in the Subsequent Financing, in either case
in such a manner such that the Preferred Stock Purchaser will not be in possession of any material, non-public information, by
the 30th Business Day following delivery of the Subsequent Financing Notice. If by such 30th Business Day, no public disclosure
regarding a transaction with respect to the Subsequent Financing has been made, and no notice regarding the abandonment of such
transaction has been received by the Preferred Stock Purchaser, such transaction shall be deemed to have been abandoned and the
Preferred Stock Purchaser shall not be deemed to be in possession of any material, non-public information with respect to the Company
or any of its subsidiaries.

 

6.08      Board
Rights.

 

(a)       Effective
upon the Closing Date, the BBA Purchasers, acting together, shall have the right (but not the obligation) to designate
(i) one member of the board of directors of the Company (the “Board”) for so long as the BBA
Purchasers collectively hold at least 2.50% of the Company’s outstanding Common Stock and at least 50% of the
securities purchased (including shares of Common Stock issued upon conversion or exchange of such securities purchased) by
them pursuant to this Agreement or (ii) two (2) members of the Board (each such designated Board member being
referred to herein as a “BBA Purchaser Board Designee”) for so long as the BBA Purchasers
collectively hold at least that percentage of the Company’s outstanding Common Stock as is equal to two
(2) divided by the total number of members of the Board (including the BBA Purchaser Board Designee(s)) (such percentage
may be rounded up to two (2) whole members of the Board in accordance with the Nasdaq Listing Rules) and at least 50% of
the securities purchased (including shares of Common Stock issued upon conversion or exchange of such securities purchased)
by them pursuant to this Agreement (the “BBA Purchaser Board Designation Right”); provided, that
each such designee must qualify as an “independent” director as defined under Nasdaq Listing
Rule 5605(a)(2), and each such designee shall have provided the Nominating and Governance Committee of the Board (the
 “Nominating Committee”) such information as the Nominating Committee customarily requests pursuant
to its charter then in effect or pursuant to the Company’s bylaws, to determine that such BBA Purchaser Board Designee
meets the independence requirements under Nasdaq Listing Rule 5605(a)(2), and is not otherwise disqualified by
applicable Nasdaq Stock Market or Commission rules or regulations from service on the Board. The Company agrees to take
all necessary corporate and other actions, including increasing the size of the Board, if necessary, and filling the
resulting vacancy by vote of the Board and/or to request a vote of the stockholders of the Company, to permit each BBA
Purchaser Board Designee to be appointed or elected by the members of the Board and/or shareholders, as applicable,
pursuant to the Company’s Certificate of Incorporation and Bylaws.

 

    17

     

    

 

(b)       Effective
upon the Closing Date, Boxer shall have the right (but not the obligation) to designate one member of the Board (the “Boxer
Board Designee”) for so long as Boxer holds at least 2.50% of the Company’s outstanding Common Stock and at
least 50% of the securities purchased (including shares of Common Stock issued upon conversion or exchange of such securities purchased)
by it pursuant to this Agreement (the “Boxer Board Designation Right”); provided, that such designee
must qualify as an “independent” director as defined under Nasdaq Listing Rule 5605(a)(2), and such designee shall
have provided the Nominating Committee such information as the Nominating Committee customarily requests pursuant to its charter
then in effect or pursuant to the Company’s bylaws, to determine that such Boxer Board Designee meets the independence requirements
under Nasdaq Listing Rule 5605(a)(2), and is not otherwise disqualified by applicable Nasdaq Stock Market or Commission rules or
regulations from service on the Board. The Company agrees to take all necessary corporate and other actions, including increasing
the size of the Board, if necessary, and filling the resulting vacancy by vote of the Board and/or to request a vote of the stockholders
of the Company, to permit the Boxer Board Designee to be appointed or elected by the members of the Board and/or shareholders,
as applicable, pursuant to the Company’s Certificate of Incorporation and Bylaws.

 

(c)       In
addition, (i) at any time after the Closing Date when (x) the BBA Purchasers own at least 2.5% of the
Company’s outstanding Common Stock and at least 33% of the securities purchased (including shares of Common Stock
issued upon conversion or exchange of such securities purchased) by them pursuant to this Agreement, and (y) the BBA
Purchasers do not then have two BBA Purchaser Board Designees serving on the Board, the BBA Purchasers shall have the right
to designate one individual to be present and participate in a non-voting capacity at all meetings of the Board or any
committee thereof, including any telephonic meetings (such individual, the “BBA Purchaser Board
Observer”) and (ii) at any time after the Closing Date when (x) Boxer owns at least 2.5% of the
Company’s outstanding Common Stock and at least 33% of the securities purchased (including shares of Common Stock
issued upon conversion or exchange of such securities purchased) by it pursuant to this Agreement, and (y) Boxer does
not then have a Boxer Board Designee serving on the Board, Boxer shall have the right to designate one individual to be
present and participate in a non-voting capacity at all meetings of the Board or any committee thereof, including any
telephonic meetings (such individual, the “Boxer Board Observer”). Any materials that are sent by
the Company to the members of the Board in their capacity as such shall be sent to the BBA Purchaser Board Observer and Boxer
Board Observer simultaneously by means reasonably designed to ensure timely receipt by the BBA Purchaser Board Observer and
Boxer Board Observer, and the Company will give the BBA Purchaser Board Observer and Boxer Board Observer notice of such
meetings, by the same means as such notices are delivered to the members of the Board and at the same time as notice is
provided or delivered to the Board; provided, that each of the BBA Purchaser Board Observer and Boxer Board Observer agrees
to hold in confidence and trust, to act in a fiduciary manner with respect to and not to disclose any information provided to
or learned by the BBA Purchaser Board Observer and/or Boxer Board Observer acting in such capacity, whether in connection
with such individual’s attendance at meetings of the Board, in connection with the receipt of materials delivered to
the Board or otherwise. Notwithstanding the provisions of this Section 6.08(c), the Company reserves the right to
exclude the BBA Purchaser Board Observer and/or the Boxer Board Observer from any meeting of a committee of the Board for any
reason whatsoever, to exclude the BBA Purchaser Board Observer and/or Boxer Board Observer from any meeting of the Board, or
a portion thereof, and to redact portions of any materials delivered to the BBA Purchaser Board Observer and/or Boxer Board
Observer where and to the extent that the Company reasonably believes that withholding such information or excluding such
individual from attending such meeting of the Board, or a portion thereof, is reasonably necessary: (i) to preserve
attorney-client, work product or similar privilege between the Company and its counsel with respect to any matter;
(ii) to comply with the terms and conditions of confidentiality agreements between the Company and any third parties; or
(iii) because the Board has determined that there exists, with respect to the subject of such deliberation or such
information, an actual or potential conflict of interest between the BBA Purchasers or Boxer, as the case may be, and the
Company. Further, the members of the Board shall be entitled to hold executive sessions which the BBA Purchaser Board
Observer and Boxer Board Observer may not be invited to attend. The BBA Purchaser Board Observer and the Boxer Board Observer
shall use the same degree of care to protect the Company’s confidential and proprietary information as the BBA
Purchasers or Boxer, as applicable, use to protect their confidential and proprietary information of like nature, but in
no circumstances with less than reasonable care.

 

(d)       For
purposes of this Section 6.08, ownership shall be calculated in accordance with applicable guidance published by the
Nasdaq Stock Market and shall exclude any shares underlying Common Stock Equivalents requiring additional payments to receive the
underlying Common Stock upon such exercise or conversion.

 

    18

     

    

 

6.09       Negative
Covenants. For so long as at least 50% of the Series 1 Preferred Stock issued under this Agreement remains outstanding,
in addition to any other vote or approval required under the Bylaws or Certificate of Incorporation of the Company, the Company
shall not, directly or indirectly, do any of the following without the prior written approval of the BBA Purchasers:

 

(a)       liquidate,
dissolve or wind-up the affairs of the Company, or effect any merger or consolidation or other Fundamental Transaction (as defined
in the Certificate of Designation);

 

(b)       alter
or amend the Company’s Certificate of Incorporation, the Bylaws, or the Certificate of Designation in a manner that adversely
effects the powers, preferences or rights given to the Series 1 Preferred Stock in the Certificate of Designation and that
is disproportionate to the effect of such alteration or amendment on any other class or series of the Company’s capital stock;

 

(c)       materially
change the principal business of the Company, enter into new lines of business, or exit the Company’s current line of business;

 

(d)       purchase
or redeem or pay any dividend on any capital stock of the Company other than the repurchase of shares from former employees or
consultants in connection with the cessation of their employment or services with the Company, at a repurchase price no greater
than cost or a repurchase price approved by the Board;

 

(e)       sell,
assign, license or pledge TAR-002, (a/k/a OK-432 or picibanil), other than licenses granted in the ordinary course of business;
or

 

(f)       enter
into any in-license, asset transfer, merger or acquisition (or similar corporate strategic relationship) involving assets of the
Company with an aggregate value of more than $2,500,000.

 

provided
that if the Company seeks approval from the BBA Purchasers for any of the foregoing and the BBA Purchasers do not respond
to such request within seven Business Days or the BBA Purchasers elect not to receive the information required to consider such
requested approvals, the requirement for the BBA Purchasers’ approval shall be deemed waived by the parties solely with respect
to the applicable approval being sought.

 

SECTION 7.     Conditions
of Purchasers’ Obligations.

 

7.01         Conditions
of the Purchasers’ Obligations at the Closing. The obligations of the Purchasers under Section 2 hereof are
subject to the fulfillment, at or prior to the applicable Closing, of all of the following conditions, any of which may be waived
in whole or in part by the Purchasers in their absolute discretion.

 

(a)        Representations
and Warranties. The representations and warranties of the Company contained in this Agreement shall be true and correct on
and as of the Closing Date with the same effect as though such representations and warranties had been made on and as of the Closing
Date (except to the extent expressly made as of an earlier date in which case as of such earlier date).

 

    19

     

    

 

 

(b)       Performance.
The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or prior to the Closing Date.

 

(c)       Opinion
of Company Counsel. The Company shall have delivered to the Purchasers the opinion of Morgan, Lewis & Bockius LLP,
dated as of the Closing Date in form and substance reasonably satisfactory to the Purchasers.

 

(d)       Compliance
Certificate. The Chief Executive Officer of the Company shall have delivered to the Purchasers at the Closing Date a certificate
certifying that the conditions specified in Sections 7.01(a) and 7.01(b) of this Agreement have been fulfilled.

 

(e)       Secretary’s
Certificate. The Secretary of the Company shall have delivered to the Purchasers at the Closing Date a certificate certifying
(i) the Certificate of Incorporation, as amended, including the Certificate of Designation, of the Company; (ii) the
Bylaws of the Company; and (iii) resolutions of the Board of Directors (or an authorized committee thereof) approving this
Agreement and the transactions contemplated by this Agreement.

 

(f)       Listing
Requirements. The Company’s Common Stock (i) shall be listed on a National Exchange and (ii) shall not have
been suspended, as of the Closing Date, by the Commission or the National Exchange from trading thereon nor shall suspension by
the Commission or the National Exchange have been threatened, as of the Closing Date, either (A) in writing by the Commission
or the National Exchange or (B) by falling below the minimum listing maintenance requirements of the National Exchange, unless,
in the case of any such threatened suspension by the Commission or the National Exchange, the consummation of the Merger and the
transactions contemplated under the Merger Agreement and this Agreement would reasonably be expected to cause the Company to comply
with the minimum listing maintenance requirements of the National Exchange and thereby address any such written suspension threat
by the Commission or the National Exchange.

 

(g)       Qualification
under State Securities Laws. All registrations, qualifications, permits and approvals, if any, required under applicable state
securities laws shall have been obtained for the lawful execution, delivery and performance of this Agreement.

 

(h)       Closing
of Merger. The Merger (as defined in the Merger Agreement) shall have become effective.

 

(i)       Minimum
Investment. The Purchasers shall purchase at least $40,000,000.00 in Securities at the Closing; provided, however,
that if any Purchaser’s failure, inability or unwillingness to purchase at the Closing the Securities that such Purchaser
has agreed pursuant to this Agreement to purchase at the Closing is the reason that this condition is not satisfied at the Closing,
such Purchaser may not rely on this condition to excuse such failure, inability or unwillingness.

 

 

 

    20

     

    

 

(j)       Registration
Rights Agreement. The Company shall have delivered the Registration Rights Agreement in the form attached hereto as Exhibit C
(the “Registration Rights Agreement”), executed by the parties thereto, to the Purchasers.

 

(k)       Lock-Up
Agreements. The officers and directors of the Company who are continuing in such roles following the Closing Date shall have
executed a Parent Lock-Up Agreement (defined in the Merger Agreement).

 

(l)       Board
Composition; CEO Appointment. As of the Closing, (i) the Board shall be comprised of no less than five (5) members
and no more than seven (7) members, (ii) a majority of the members of the Board shall be “independent” within
the meaning of the Nasdaq Stock Market rules, and (iii) Jesse Shefferman shall be appointed as the Chief Executive Officer
of the Company.

 

7.02         Conditions
of the Company’s Obligations. The obligations of the Company under Section 2 hereof are subject to the fulfillment,
at or prior to the applicable Closing, of all of the following conditions, any of which may be waived in whole or in part by the
Company in its absolute discretion.

 

(a)       Representations
and Warranties. The representations and warranties of the Purchasers contained in this Agreement shall be true and correct
on and as of the Closing Date with the same effect as though such representations and warranties had been made on and as of the
Closing Date (except to the extent expressly made as of an earlier date in which case as of such earlier date).

 

(b)       Performance.
Each Purchaser shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or prior to the Closing Date.

 

(c)       Qualification
under State Securities Laws. All registrations, qualifications, permits and approvals, if any, required under applicable state
securities laws shall have been obtained for the lawful execution, delivery and performance of this Agreement.

 

(d)       Closing
of Merger.The Merger shall have become effective.

 

(e)       Minimum
Investment. The Purchasers shall purchase at least $40,000,000.00 in Securities at the Closing

 

SECTION 8.     Registration
Rights. If at any time after 180 days following the Closing Date, the BBA Purchasers or Boxer determine, based on the totality
of the circumstances, that they may be deemed to be “affiliates” of the Company within the meaning of Rule 144
of the 1933 Act, whether through the exercise of their respective board designation rights as provided in Section 6.08
or otherwise, the Company shall enter into the registration rights agreement with the BBA Purchasers or Boxer (as applicable)
in the form attached hereto as Exhibit B (the “BBA Registration Rights Agreement”).

 

    21

     

    

  

SECTION 9.     Transfer Restrictions;
Restrictive Legend.

 

9.01         Transfer
Restrictions. The Purchasers understand that the Company may, as a condition to the transfer of any of the Securities or the
Series 1 Preferred Conversion Shares, require that the request for transfer be accompanied by a certificate and/or an opinion
of counsel reasonably satisfactory to the Company, to the effect that the proposed transfer does not result in a violation of the
1933 Act, unless such transfer is covered by an effective registration statement or by Rule 144 or Rule 144A under the
1933 Act. It is understood that the certificates evidencing the Securities and Series 1 Preferred Conversion Shares may bear
substantially the following legend:

 

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR APPLICABLE STATE SECURITIES
LAWS OR A CERTIFICATE AND/OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

SECTION 10.         Registration,
Transfer and Substitution of Certificates for Securities.

 

10.01       Stock
Register; Ownership of Securities. The Company will keep at its principal office, or will cause its transfer agent to keep,
a register in which the Company will provide for the registration of transfers of the Securities. The Company may treat the person
in whose name any of the Securities are registered on such register as the owner thereof and the Company shall not be affected
by any notice to the contrary. All references in this Agreement to a “holder” of any Securities shall mean the person
in whose name such Securities are at the time registered on such register.

 

10.02       Replacement
of Certificates. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of any certificate representing any of the Securities, and, in the case of any such loss, theft or destruction, upon delivery of
an indemnity agreement and surety bond reasonably satisfactory to the Company or, in the case of any such mutilation, upon surrender
of such certificate for cancellation at the office of the Company maintained pursuant to Section 10.01 hereof, the
Company at its expense will execute and deliver, in lieu thereof, a new certificate representing such Securities, of like tenor.

 

SECTION 11.     Definitions. 
Unless the context otherwise requires, the terms defined in this Section 11 shall have the meanings specified for all
purposes of this Agreement. All accounting terms used in this Agreement, whether or not defined in this Section 11,
shall be construed in accordance with GAAP and such accounting terms shall be determined on a consolidated basis for the Company
and each of its subsidiaries.

 

“1933
Act Regulations” means the rules and regulations promulgated under the 1933 Act.

 

    22

     

    

 

“1934 Act” means
the Securities Exchange Act of 1934, as amended.

 

“1934
Act Regulations” means the rules and regulations promulgated under the 1934 Act.

 

“Affiliate” shall
have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the 1934 Act.

 

“BBA Purchasers” means
the investment partnerships advised by Baker Bros. Advisors LP set forth on the Schedule of Purchasers.

 

“Boxer” means
Boxer Capital, LLC and MVA Investors, LLC.

 

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

 

“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.

 

“Common Stock Purchase Price”
means the price per share of Common Stock that is equal to (x) Aggregate Valuation (as defined in the Merger Agreement), divided
by (y) the Post-Closing Parent Shares (as defined in the Merger Agreement), rounded to six decimal points.

 

“Environmental Law”
means any federal, state, local or foreign Law relating to pollution or protection of human health or the environment (including
ambient air, surface water, ground water, land surface or subsurface strata), including any law or regulation relating to emissions,
discharges, releases or threatened releases of Hazardous Materials, or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous Materials.

 

“Exempt Issuance”
means the issuance of (a) shares of Common Stock and options to officers, directors, employees or service providers of the
Company, prior to and after the Closing Date, (b) securities issuable pursuant to this Agreement or upon conversion or exercise
of such securities, (c) securities issued pursuant to the Merger Agreement or upon conversion or exercise of such securities,
(d) other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on
the date of this Agreement, provided that such securities and any term thereof have not been amended since the date of this Agreement
to increase the number of such securities or to decrease the issue price, exercise price, exchange price or conversion price of
such securities, (e) securities issued to banks, equipment lessors or other financial institutions, or to real property lessors,
pursuant to a debt financing, equipment leasing or real property leasing transaction, and/or (f) securities issued in connection
with sponsored research, collaboration, technology license, development, OEM, marketing or other similar agreements or strategic
partnerships.

 

    23

     

    

 

“Governmental Authorization”
means any: (a) permit, license, certificate, certification, franchise, permission, approval, exemption, variance, exception,
order, clearance, registration, qualification or authorization issued, granted, given or otherwise made available by or under the
authority of any Governmental Entity or pursuant to any law; or (b) right under any contract with any Governmental Entity.

 

“Hazardous Materials”
means any pollutant, chemical, substance and any toxic, infectious, carcinogenic, reactive, corrosive, ignitable or flammable chemical,
or chemical compound, or hazardous substance, material or waste, whether solid, liquid or gas, that is subject to regulation, control
or remediation under any Environmental Law, including without limitation, crude oil or any fraction thereof, and petroleum products
or by-products.

 

“Person” means
any individual, entity or Governmental Entity.

 

“Preferred Stock”
means the Company’s preferred stock, par value $0.001 per share.

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the 1933 Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Series 1 Preferred Conversion
Shares” means the shares of Common Stock issuable upon conversion of the Series 1 Preferred Stock.

 

“Series 1 Preferred Stock
Purchase Price” means the price per share of Series 1 Preferred Stock as is equal to one thousand (1,000) times
the Common Stock Purchase Price.

 

SECTION 12.    Miscellaneous.

 

12.01       Waivers
and Amendments. Upon the approval of the Company and the written consent of the Purchasers, the obligations of the
Company and the rights of the Purchasers under this Agreement may be waived (either generally or in a particular instance,
either retroactively or prospectively and either for a specified period of time or indefinitely). Neither this Agreement, nor
any provision hereof, may be changed, waived, discharged or terminated orally or by course of dealing, but only by an
instrument in writing executed by the Company and the Purchasers holding, or having the right to purchase at the Closing, a
majority of the Securities purchased or to be purchased hereunder (calculated on an as-converted to Common Stock basis); provided
that (i) prior to the Closing Date, the Schedule of Purchasers shall only be amended by the Company in accordance
with Section 3 and as necessary to insert share numbers once the Common Stock Purchase Price and Series 1 Preferred
Stock Purchaser Price are finally determined pursuant to the Merger Agreement; (ii) any change, waiver, discharge or
termination of Section 6.04, Section 6.08(a), Section 6.08(c) (with respect to the BBA Purchasers’
rights therein), Section 6.09, Section 8 and this clause (ii) of Section 12.01 shall require the consent
of the BBA Purchasers; and (iii) any change, waiver, discharge or termination of 6.08(b),
Section 6.08(c) (with respect to Boxer’s rights therein), Section 8 (with respect to Boxer’s
rights therein) and this clause (iii) of Section 12.01 shall require the consent of Boxer. Notwithstanding the
foregoing, Section 6.09 may be amended or waived with the consent of the Company and the BBA Purchasers any time
after the date on which the Company has completed one or more Subsequent Financings resulting in aggregate gross proceeds to
the Company of at least $50,000,000.

 

    24

     

    

 

12.02       Notices.
All notices, requests, consents, and other communications under this Agreement shall be in writing and shall be deemed delivered:
(a) when delivered, if delivered personally, (b) four Business Days after being sent by registered or certified mail,
return receipt requested, postage prepaid, (c) one Business Day after being sent via a reputable nationwide overnight courier
service guaranteeing next Business Day delivery, or (d) when receipt is acknowledged, in the case of email, in each case to
the intended recipient as set forth below, with respect to the Company, and to the addresses set forth on the Schedule of Purchasers
with respect to the Purchasers.

 

If to the Company (on or prior to the Closing Date):

 

Proteon Therapeutics, Inc.

200 West Street

Waltham, Massachusetts 02451

Attention: Chief Executive Officer

Email: ceo@proteontx.com

 

with a copy (which shall not constitute
notice) to:

 

Morgan, Lewis & Bockius LLP

One Federal Street

Boston, Massachusetts 02210

Attention: Julio E. Vega

Email: julio.vega@morganlewis.com

 

If to the Company (following the Closing Date):

ArTara Therapeutics

1 Little W 12th Street

New York, NY 10014

Attention: Jesse Shefferman

Email: jesse.shefferman@artaratx.com

 

with a copy (which shall not constitute
notice) to:

 

Cooley LLP

4401 Eastgate Mall

San Diego, CA 92121

Attn: Karen E. Deschaine, Esq.

Email: KDeschaine@cooley.com

 

or at such other address as the Company or each Purchaser may
specify by written notice to the other parties hereto in accordance with this Section 12.02.

 

    25

     

    

 

12.03       Cumulative
Remedies. None of the rights, powers or remedies conferred upon the Purchasers on the one hand or the Company on the other
hand shall be mutually exclusive, and each such right, power or remedy shall be cumulative and in addition to every other right,
power or remedy, whether conferred by this Agreement or now or hereafter available at law, in equity, by statute or otherwise.

 

12.04       Successors
and Assigns. All the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective parties hereto, the successors and permitted assigns of each Purchaser and the successors of the Company, whether
so expressed or not. None of the parties hereto may assign its rights or obligations hereof without the prior written consent of
the Company, except that a Purchaser may, without the prior consent of the Company, assign its rights to purchase the Securities
hereunder to any of its Affiliates (provided each such Affiliate agrees to be bound by the terms of this Agreement and makes the
same representations and warranties set forth in Section 4 hereof). This Agreement shall not inure to the benefit of
or be enforceable by any other person.

 

12.05       Headings.
The headings of the Sections and paragraphs of this Agreement have been inserted for convenience of reference only and do not constitute
a part of this Agreement.

 

12.06       Governing
Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without
regard to its conflict of law principles. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter
arising out of or in connection with, this Agreement or the transactions contemplated hereby may be brought in any federal or state
court located in the City of New York and State of New York, and each of the parties hereby consents to the jurisdiction of such
courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the
fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been
brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world,
whether within or without the jurisdiction of any such court.

 

12.07       Survival.
The representations and warranties of the Company and the Purchasers contained in Sections 4 and 5, and the agreements
and covenants set forth in Sections 6, 8 and 12 shall survive the Closing in accordance with their respective
terms. Each Purchaser shall be responsible only for its own representations, warranties, agreements and covenants hereunder.

 

12.08       Counterparts;
Effectiveness. This Agreement may be executed in any number of counterparts and by different parties hereto in separate
counterparts, with the same effect as if all parties had signed the same document. All such counterparts (including
counterparts delivered by facsimile or other electronic format) shall be deemed an original, shall be construed together and
shall constitute one and the same instrument. This Agreement shall become effective when each party hereto shall have
received counterparts hereof signed by all of the other parties hereto.

 

    26

     

    

 

12.09       Entire
Agreement. This Agreement contains the entire agreement among the parties hereto with respect to the subject matter hereof
and, except as set forth below, this agreement supersedes and replaces all other prior agreements, written or oral, among the parties
hereto with respect to the subject matter hereof. Notwithstanding the foregoing or anything to the contrary in this Agreement,
this Agreement shall not supersede any confidentiality or other non-disclosure agreements that may be in place between the Company
and any Purchaser.

 

12.10       Severability.
If any provision of this Agreement shall be found by any court of competent jurisdiction to be invalid or unenforceable, the parties
hereby waive such provision to the extent that it is found to be invalid or unenforceable. Such provision shall, to the maximum
extent allowable by law, be modified by such court so that it becomes enforceable, and, as modified, shall be enforced as any other
provision hereof, all the other provisions hereof continuing in full force and effect.

 

12.11       Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under this Agreement are several and
not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of
the obligations of any other Purchaser under this Agreement. Nothing contained herein, and no action taken by any Purchaser pursuant
hereto or thereto, shall be deemed to constitute the Purchasers as, and the Company acknowledges that the Purchasers do not so
constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group, and the Company will not assert any such claim with respect to such obligations
or the transactions contemplated by this Agreement and the Company acknowledges that the Purchasers are not acting in concert or
as a group with respect to such obligations or the transactions contemplated by this Agreement. The Company acknowledges and each
Purchaser confirms that it has independently participated in the negotiation of the transaction contemplated hereby with the advice
of its own counsel and advisors. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without
limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.

 

12.12       Termination.
In the event that the Merger Agreement is terminated in accordance with its terms at any time prior to the consummation of the
Closing, the Company shall have the right to terminate this Agreement by giving written notice of termination to the Purchasers,
and the Purchasers shall have the right to terminate this Agreement by giving written notice of termination to the Company. In
the event of the termination of this Agreement as provided in the foregoing provisions of this Section 12.12, this
Agreement shall be of no further force or effect; provided, however, that (a) this Section 12.12 and the
other provisions of Section 12 of this Agreement shall survive the termination of this Agreement and shall remain in full
force and effect, and (b) the termination of this Agreement shall not relieve any party to this Agreement of any liability
for common law fraud or for any Willful Breach of any representation, warranty, covenant, obligation or other provision contained
in this Agreement.

 

    27

     

    

 

“Willful Breach” means a deliberate
act or deliberate failure to act, taken with the actual knowledge that such act or failure to act would result in or constitute
a material breach of this Agreement.

 

[Signature page follows]

 

    28

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Subscription Agreement to be duly executed as of the Effective Date.

 

	 	PROTEON THERAPEUTICS, INC.
	 	 
	 	By:	/s/ Timothy P. Noyes
	 	Name:	Timothy P. Noyes
	 	Title:	President and CEO

 

[Signature page to Subscription
Agreement]

 

    29

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Subscription Agreement to be duly executed as of the Effective Date.

 

	 	667, L.P.
	 	 
	 	By: BAKER BROS. ADVISORS LP,
	 	management company and investment adviser to 667, L.P., pursuant to authority granted to it by Baker Biotech Capital, L.P., general partner to 667, L.P., and not as the general partner
	 	 
	 	By:	/s/ Scott L. Lessing
	 	Name:	Scott L. Lessing
	 	Title:	President
	 	 
	 	BAKER BROTHERS LIFE SCIENCES, L.P.
	 	 
	 	By: BAKER BROS. ADVISORS LP,
	 	management company and investment adviser to BAKER BROTHERS LIFE SCIENCES, L.P., pursuant to authority granted to it by Baker Brothers Life Sciences Capital, L.P., general partner to BAKER BROTHERS LIFE SCIENCES, L.P., and not as the general partner
	 	 
	 	By:	/s/ Scott L. Lessing
	 	Name:	Scott L. Lessing
	 	Title:	President

 

[Signature page to Subscription
Agreement]

 

    30

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Subscription Agreement to be duly executed as of the Effective Date.

 

	 	BOXER CAPITAL, LLC
	 	 
	 	By:	/s/ Aaron Davis
	 	Name: Aaron Davis
	 	Title: Chief Executive Officer
	 	 
	 	MVA INVESTORS, LLC
	 	 
	 	By:	/s/ Aaron Davis
	 	Name: Aaron Davis
	 	Title: Chief Executive Officer

 

[Signature page to Subscription
Agreement]

 

    31

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Subscription Agreement to be duly executed as of the Effective Date.

 

	 	OPALEYE LP
	 	 
	 	By:	/s/ James Silverman
	 	Name:	James Silverman
	 	Title:	Founder / General Partner

 

[Signature page to Subscription
Agreement]

 

    32

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Subscription Agreement to be duly executed as of the Effective Date.

 

	 	DRW VENTURE CAPITAL, LLC
	 	 
	 	By:	/s/ David B. Nelson
	 	Name:	 David B. Nelson
	 	Title: 	Vice President

 

[Signature page to Subscription
Agreement]

 

    33

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Subscription Agreement to be duly executed as of the Effective Date.

 

	 	IKARIAN CAPITAL
	 	 
	 	By:	/s/ Chart Westcott
	 	Name: 	Chart Westcott
	 	Title: 	COO

 

[Signature page to Subscription
Agreement]

 

    34

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Subscription Agreement to be duly executed as of the Effective Date.

 

	 	JAMES F. REDDOCH
	 	 
	 	By:	/s/ James F. Reddoch

 

[Signature page to Subscription
Agreement]

 

    35

     

    

 

Schedule I

 

SCHEDULE OF PURCHASERS

 

CLOSING:

 

    36

     

    

 

Exhibit A

 

CERTIFICATE OF DESIGNATION

 

PROTEON THERAPEUTICS, INC.

 

CERTIFICATE OF DESIGNATION OF PREFERENCES,

RIGHTS AND LIMITATIONS

OF

SERIES 1 CONVERTIBLE NON-VOTING PREFERRED STOCK

 

PURSUANT TO SECTION 151(G) OF
THE

DELAWARE GENERAL CORPORATION LAW

 

PROTEON
THERAPEUTICS, INC., a Delaware corporation (the “Corporation”), in accordance with the
provisions of Section 103 of the Delaware General Corporation Law (the “DGCL”), does hereby certify
that, in accordance with Section 151 of the DGCL, the following resolution was duly adopted by the Board of Directors of the
Corporation as of [date], 2019:

 

RESOLVED,
that the Board of Directors of the Corporation, pursuant to authority expressly vested in it by the provisions of the Certificate
of Incorporation of the Corporation, hereby authorizes the issuance of a series of Preferred Stock designated as the Series 1
Convertible Non-Voting Preferred Stock, par value $0.001 per share, of the Corporation, with a stated value of $[1000 x conversion
price] per share, and hereby fixes the designation, number of shares, powers, preferences, rights, qualifications, limitations
and restrictions thereof (in addition to any provisions set forth in the Certificate of Incorporation of the Corporation which
are applicable to the Preferred Stock of all classes and series) as follows:

 

SERIES 1 CONVERTIBLE NON-VOTING PREFERRED
STOCK

 

Section 1.       Definitions.
For the purposes hereof, the following terms shall have the following meanings:

 

“Affiliate” means any Person
(as hereinafter defined) that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under
common control with such Person, as such terms are used in and construed under Rule 144 under the Securities Act (“Rule 144”).
With respect to a Holder, any investment fund or managed account that is managed on a discretionary basis by the same investment
manager as such Holder will be deemed to be an Affiliate of such Holder. As used in this definition of “Affiliate,”
the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities or partnership or other ownership interest,
by contract, or otherwise.

 

“Attribution Parties”
means, with respect to any Holder, collectively, any of such Holder’s Affiliates, any Persons acting as a “group”
together with such Holder with respect to the Common Stock for purposes of Section 13(d) of the Exchange Act, and any
other Persons whose beneficial ownership of the Common Stock would be aggregated with such Holder’s for purposes of Section 13(d) of
the Exchange Act.

 

The “Beneficial Ownership Limitation”
shall be 9.99%; provided that, by written notice to the Corporation, the Holder may from time to time increase or decrease
the Beneficial Ownership Limitation to any other percentage not in excess of 19.99% specified in such notice; provided that (i) any
increase from a limit set pursuant to this sentence or pursuant to a previous notice will not be effective until the sixty-first
(61st) day after such notice (or subsequent notice) is delivered to the Corporation, and (ii) any such increase or decrease
will apply only to the Holder and not to any other Holder of Series 1 Preferred Stock.

 

“Board of Directors” means
the Board of Directors of the Corporation.

 

“Business Day” means any
day except Saturday, Sunday, any day which shall be a federal legal holiday in the United States or any day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.

 

    1

     

    

 

“Buy-In Shares” shall have
the meaning set forth in Section 7(f)(i).

 

“Bylaws” means the Amended
and Restated Bylaws of the Corporation, as they may be amended, restated modified or supplemented and in effect from time to time.

 

“Certificate” means this
Certificate of Designation of Preferences, Rights and Limitations of Series 1 Convertible Non-Voting Preferred Stock.

 

“Commission” means the Securities
and Exchange Commission.

 

“Common Stock” means the
Corporation’s common stock, par value $0.001 per share, and stock of any other class of securities into which such securities
may hereafter be reclassified or changed.

 

“Conversion Date” shall
have the meaning set forth in Section 7(a).

 

“Conversion Notice” shall
have the meaning set forth in Section 7(d)(i).

 

“Conversion Price” shall
mean, on a per share basis, as of any Conversion Date or other date of determination, $[common stock purchase price], subject to
adjustment as provided herein.

 

“Conversion Rate” shall
have the meaning set forth in Section 7(c).

 

“Conversion Shares” shall
have the meaning set forth in Section 7(b).

 

“Converting Holder” shall
have the meaning set forth in Section 7(d)(i).

 

“Corporation” shall have
the meaning set forth in the preamble.

 

“DGCL” shall have the meaning
set forth in the preamble.

 

“Distribution” shall have
the meaning set forth in Section 3.

 

“DTC” shall have the meaning
set forth in Section 7(d)(ii).

 

“DWAC” shall have the meaning
set forth in Section 7(d)(ii).

 

“Effective Date” means [date].

 

“Excess Shares” shall have
the meaning set forth in Section 7(g).

 

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

 

“Fundamental Transaction”
shall have the meaning set forth in Section 8(b)(i).

 

“Holder” shall mean each
holder of record of shares of Series 1 Preferred Stock.

 

“Junior Securities” shall
have the meaning set forth in Section 6(a).

 

“National Exchange” means
each of the following, together with any successor thereto: the NYSE American, The New York Stock Exchange, the NASDAQ Global Market,
the NASDAQ Global Select Market and the NASDAQ Capital Market.

 

“Parity Securities” shall
have the meaning set forth in Section 6(a).

 

    2

     

    

 

“Person” shall mean an individual,
a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization or a government
or any department or agency thereof or any other legal entity.

 

“Principal Market” means
the NASDAQ Global Market; however, if the Common Stock becomes listed on another National Exchange after the Effective Date, then,
from and after such date, the “Principal Market” shall mean such National Exchange.

 

“Registration Rights Agreement”
means the Registration Rights Agreement, dated as of September 23, 2019, by and among the Corporation and the investors party
thereto, as the same may be amended, restated, modified or supplemented and in effect from time to time.

 

“Registration Statement Effective Date”
shall have the meaning set forth in Section 7(d)(iv).

 

“Requisite Holders” means,
as of any date, the Holders of at least 66.6% of the then-outstanding shares of Series 1 Preferred Stock.

 

“Securities” means, collectively,
the shares of Series 1 Preferred Stock and the Conversion Shares.

 

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

 

“Securities Purchase Agreement”
means that certain Subscription Agreement, dated as of September 23, 2019, between the Corporation and the investors party
thereto.

 

“Senior Securities” shall
have the meaning set forth in Section 6(a).

 

“Series 1 Liquidation Preference”
means, with respect to each share of Series 1 Preferred Stock, an amount equal to $10.00.

 

“Series 1 Preferred Director”
has the meaning set forth in Section 4(b).

 

“Series 1 Preferred Stock”
has the meaning set forth in Section 2(a).

 

“Series 1 Preferred Stock Register”
has the meaning set forth in Section 2(b).

 

“Share Delivery Date” shall
have the meaning set forth in Section 7(d)(ii).

 

“Stated Value” shall mean
$[1000x conversion price].

 

“Stock Event” means any
stock split, stock combination, reclassification, stock dividend, recapitalization or other similar transaction of such character
that shares of Common Stock shall be changed into or become exchangeable for a larger or small number of shares.

 

“Taxes” means all taxes,
charges, fees, levies or other like assessments, including United States federal, state, local, foreign and other net income, gross
income, gross receipts, social security, estimated, sales, use, ad valorem, franchise, profits, net worth, alternative or add-on
minimum, capital gains, license, withholding, payroll, employment, unemployment, social security, excise, property, transfer taxes
and any and all other taxes, assessments, fees or other governmental charges, whether computed on a separate, consolidated, unitary,
combined or any other basis together with any interest and any penalties, additions to tax, estimated taxes or additional amounts
with respect thereto, and including any liability for taxes as a result of being a member of a consolidated, combined, unitary
or affiliated group or any other obligation to indemnify or otherwise succeed to the tax liability of any other Person.

 

    3

     

    

 

“Trading Day” means
any day on which the Common Stock is traded on the Principal Market; provided that “Trading Day” shall not include
any day on which the Common Stock is scheduled to trade, or actually trades, on the Principal Market for less than 4.5 hours.

 

“Transfer Agent” shall have
the meaning set forth in Section 7(d)(ii).

 

“Volume Weighted Average Price”
means, for any security as of any date, the U.S. dollar volume-weighted average price for such security on its Principal Market
during the period beginning at 9:30 a.m., New York City time (or such other time as the Principal Market publicly announces
is the official open of trading), and ending at 4:00 p.m., New York City time (or such other time as the Principal Market
publicly announces is the official close of trading), as reported by Bloomberg Markets (or any successor thereto) “Bloomberg”)
through its “Volume at Price” functions, or, if the foregoing does not apply, the dollar volume-weighted average price
of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning
at 9:30 a.m., New York City time (or such other time as such over-the-counter market publicly announces is the official open
of trading), and ending at 4:00 p.m., New York City time (or such other time as such over-the-counter market publicly announces
is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such
security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the
market makers for such security as reported by OTC Markets Group, Inc. (or any successor thereto). If the Volume Weighted
Average Price cannot be calculated for such security on such date on any of the foregoing bases, the Volume Weighted Average Price
of such security on such date shall be the fair market value as mutually determined by the Corporation and the Holders of a majority
of the outstanding shares of Series 1 Preferred Stock as to which the determination is being made. If the Principal Market
is located in a country other than the United States, the Volume Weighted Average Price shall be calculated in U.S. dollars using
the spot rate for the purchase of the applicable foreign currency at the close of business on the immediately preceding Business
Day in New York, New York published in the Wall Street Journal. All such determinations shall be appropriately adjusted for any
Stock Event during any period during which the Volume Weighted Average Price is being determined. Volume Weighted Average Price
will be determined without regard to after-hours trading or any other trading outside of the regular trading hours.

 

“Unrestricted Conditions”
shall have the meaning set forth in Section 7(d)(iv).

 

Section 2.     Designation,
Amount and Par Value; Assignment.

 

(a)       The
series of preferred stock designated by this Certificate shall be designated as the Corporation’s Series 1 Convertible
Non-Voting Preferred Stock (the “Series 1 Preferred Stock”), and the number of shares so designated
shall be [      ] (which shall not be subject to increase without the written consent of the Requisite
Holders ) and shall be designated from the 10,000,000 shares of Preferred Stock authorized to be issued by the Certificate of Incorporation.
Each share of Series 1 Preferred Stock shall have a par value of $0.001 per share.

 

(b)       The
Corporation shall register, or cause to be registered, shares of the Series 1 Preferred Stock, upon records to be
maintained by the Corporation (or the Corporation’s designated transfer agent for the Series 1 Preferred Stock)
for that purpose (the “Series 1 Preferred Stock Register”), in the respective names of the
Holders thereof from time to time. The Corporation may deem and treat the registered Holder of shares of Series 1
Preferred Stock as the absolute owner thereof for the purpose of any conversion thereof and for all other purposes. The
Corporation shall register, or cause to be registered, the transfer of any shares of Series 1 Preferred Stock in the
Series 1 Preferred Stock Register, upon surrender of the certificates evidencing such shares to be transferred, duly
endorsed by the Holder thereof (or accompanied by stock powers or other instruments of transfer duly completed and executed
by the Holder thereof), to the Corporation at its address specified herein. Upon any such registration or transfer, a new
certificate evidencing the shares of Series 1 Preferred Stock so transferred shall be issued to the transferee or
transferees and a new certificate evidencing the remaining portion of the shares not so transferred, if any, shall be issued
to the transferring Holder, in each case, within three Business Days. The shares of Series 1 Preferred Stock and the
rights evidenced hereby and thereby shall inure to the benefit of and be binding upon the successors and assigns of the
Holder. The provisions of this Certificate are intended to be for the benefit of all Holders from time to time and shall be
enforceable by any such Holder.

 

    4

     

    

 

(c)       Neither
the shares of Series 1 Preferred Stock nor the Conversion Shares may be pledged, transferred, sold or assigned except pursuant
to an effective registration statement or an exemption to the registration requirements of the Securities Act and applicable state
laws, including Section 4(a)(7) of the Securities Act, Rule 144 or a so-called “4[(a)](1) and a half”
transaction. For avoidance of doubt, in the event a holder notifies the Corporation that such sale or transfer is pursuant to an
exemption to the registration requirements of the Securities Act other than pursuant to Rule 144, the parties agree that a
legal opinion from outside counsel for such holder delivered to counsel for the Corporation substantially in the form attached
hereto as Exhibit A shall be the only requirement that such holder needs to satisfy to establish the availability of
such an exemption from registration under the Securities Act to effectuate such transaction. Additionally, notwithstanding anything
to the contrary contained herein, no shares of Series 1 Preferred Stock may be sold, transferred or assigned if a Conversion
Notice has been delivered to the Corporation with respect to such shares and such Conversion Notice has not been voided or withdrawn
by the applicable Holder.

 

Section 3.     Dividends.
If the Corporation shall declare or make any dividend or other distribution of assets (or rights to acquire assets) to holders
of Common Stock by way of return of capital or otherwise (including any dividend or other distribution of cash, stock or other
securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement or other similar transaction)
(a “Distribution”) at any time after the Effective Date, then, in each such case, each Holder of Series 1
Preferred Stock on the applicable record date with respect to such Distribution (or, if there is no record date for such Distribution,
each Holder of Series 1 Preferred Stock immediately prior to the effective date of such Distribution) shall be entitled to
receive such Distribution, and the Corporation shall make such Distribution to such Holder, exactly as if such Holder had converted
such Holder’s shares of Series 1 Preferred Stock in full (and, as a result, had held all of the Conversion Shares that
such Holder would have received upon such conversion, without regard to any limitations or restrictions on conversion) immediately
prior to the record date for such Distribution, or if there is no record date therefor, immediately prior to the effective date
of such Distribution (but without the Holder’s actually having to so convert such Holder’s shares of Series 1
Preferred Stock). For the avoidance of doubt, payments under the preceding sentence shall be made concurrently with the Distribution
to the holders of Common Stock.

 

Section 4.     Voting
Rights.Except as otherwise provided herein (including with respect to the matters
set forth in Section 5 hereof) or as otherwise required by the DGCL, the Series 1 Preferred Stock shall have no voting
rights. The Corporation shall not, however, as long as any shares of Series 1 Preferred Stock are outstanding, either directly
or indirectly (whether by amendment, corporate action, by contract, by merger or otherwise), without the written consent of the
Requisite Holders, and any such act or transaction entered into without such consent shall be null and void ab initio,
and of no force or effect: (i) increase the number of authorized shares of Series 1 Preferred Stock, (ii) consummate
or consent to any Fundamental Transaction if such Fundamental Transaction will not be effected in compliance with Section 8(b);
or (iii) enter into any agreement with respect to any of the foregoing.

 

Section 5.     Amendments
to this Certificate. Any amendment to this Certificate that alters or changes the powers, preferences, rights or other terms
of the Series 1 Preferred Stock shall require the approval of the Requisite Holders. In accordance with Article Four,
Section 2(b) of the Certificate of Incorporation of the Corporation, except as otherwise required by law, holders of
Common Stock, as such, shall not be entitled to vote on any amendment to this Certificate.

 

Section 6.     Rank;
Liquidation.

 

(a)       The
Series 1 Preferred Stock shall rank (i) senior to all of the Common Stock; (ii) senior to any class or series
of capital stock of the Corporation hereafter created specifically ranking by its terms junior to any Series 1 Preferred
Stock (“Junior Securities”); (iii) on parity with any class or series of capital stock of the
Corporation created specifically ranking by its terms on parity with the Series 1 Preferred Stock (“Parity
Securities”); and (iv) junior to any class or series of capital stock of the Corporation hereafter created
specifically ranking by its terms senior to any Series 1 Preferred Stock (“Senior
Securities”), in each case, as to distributions of assets upon liquidation, dissolution or winding up of the
Corporation, whether voluntarily or involuntarily.

 

    5

     

    

 

(b)       Subject
to any superior liquidation rights of the holders of any Senior Securities of the Corporation, upon the liquidation, dissolution
or winding up of the Corporation (other than in connection with a Fundamental Transaction), whether voluntary or involuntary, each
Holder shall be entitled to receive for each share of Series 1 Preferred Stock, in preference to any distributions of any
of the assets or surplus funds of the Corporation to the holders of the Common Stock and Junior Securities and pari passu
with any distribution to the holders of Parity Securities, an amount equal to the Series 1 Liquidation Preference, plus an
amount equal to any dividends declared but unpaid thereon, before any payments shall be made or any assets distributed to holders
of any class of Common Stock or Junior Securities. After such payment shall have been made in full to the holders of the Series 1
Preferred Stock and Parity Securities, or funds necessary for such payment shall have been set aside by the Corporation in trust
for the account of holders of the Series 1 Preferred Stock and Parity Securities, so as to be available for such payment,
the remaining assets available for distribution shall be distributed ratably among the holders of the Junior Securities, if applicable
in accordance with the terms of such securities, and the Common Stock.

 

Section 7.     Conversion.

 

(a)       Conversion
Right. Each Holder shall have the right, at such Holder’s option, to convert the shares of Series 1 Preferred Stock
held by such Holder into shares of Common Stock on any date (such date, the “Conversion Date”) subject
to and upon the terms, conditions and limitations set forth in this Section 7.

 

(b)       Conversion
at Option of the Holder. Each Holder shall be entitled to convert some or all of its shares of Series 1 Preferred Stock
into fully paid and nonassessable shares of Common Stock (“Conversion Shares”) subject to, and in accordance
with, this Section 7 at the Conversion Rate. The Corporation shall not issue any fraction of a share of Common Stock upon
any conversion. If the issuance would result in the issuance of a fraction of a share, then the Corporation shall round such fraction
of a share up or down to the nearest whole share (with 0.5 rounded up). Whether or not fractional shares would be issuable upon
such conversion shall be determined on the basis of the total number of shares of Series 1 Preferred Stock the Holder is at
the time converting into Common Stock and the aggregate number of shares of Common Stock issuable upon such conversion.

 

(c)       Conversion
Rate. The number of Conversion Shares issuable upon conversion of each share of Series 1 Preferred Stock being converted
pursuant to this Section 7 shall be determined according to the following formula (the “Conversion Rate”):

 

Stated
Value

Conversion Price

 

(d)       Mechanics
of Conversion. The conversion of Series 1 Preferred Stock shall be conducted in the following manner:

 

(i)       Holder’s
Delivery Requirements. To convert shares of Series 1 Preferred Stock into Conversion Shares pursuant to this
Section 7 on any date, a Holder seeking to effect such conversion (a “Converting Holder”)
shall (A) transmit by facsimile or electronic mail (or otherwise deliver), for receipt on or prior to
5:00 p.m. New York City time on such date, a copy of an executed conversion notice in the form attached hereto as Annex A
(the “Conversion Notice”) to the Corporation (Attention: President and CEO, Email:
Series1@Proteontx.com), which Conversion Notice may specify that such conversion is conditioned upon consummation of a
Fundamental Transaction or any other transaction (such Fundamental Transaction or other transaction, a
 “Conversion Triggering Transaction”), and (B) if required pursuant to subparagraph
(iii) below, surrender to a common carrier for delivery to the Corporation, no later than three (3) Business
Days after the Conversion Date, the original stock certificates representing the shares of Series 1 Preferred Stock
being converted (or an indemnification undertaking in customary form with respect to such shares in the case of the loss,
theft or destruction of any stock certificate representing such shares) (or, if the conversion is conditioned upon
the consummation of a Conversion Triggering Transaction, on the date of (and immediately prior to) the consummation of such
Conversion Triggering Transaction). For purposes of determining the maximum number of Conversion Shares that the Corporation
may issue to a Holder pursuant to this Section 7 upon conversion of shares of Series 1 Preferred Stock on a
particular Conversion Date, such Holder’s delivery of a Conversion Notice with respect to such conversion shall
constitute a representation by such Holder (on which the Corporation shall rely) that, upon the issuance of the Conversion
Shares to be issued to it on such Conversion Date, the shares of Common Stock beneficially owned by such Holder and its
Attribution Parties (including shares held by any “group” of which such Holder is a member) will not exceed the
Beneficial Ownership Limitation for such Holder.

 

    6

     

    

 

(ii)      Corporation’s
Response. Upon receipt or deemed receipt by the Corporation of a copy of a Conversion Notice, the Corporation (A) shall
as promptly as possible send, via email, a confirmation of receipt of such Conversion Notice to the Converting Holder and the Corporation’s
designated transfer agent (the “Transfer Agent”), which confirmation (i) shall be sent to the Converting
Holder at the email address specified by the Converting Holder pursuant to such Conversion Notice and to the Transfer Agent at
the email address previously specified by the Transfer Agent for this purpose and (ii) shall include an instruction to the
Transfer Agent to process such Conversion Notice in accordance with the terms herein, and (B) on or before the third (3rd)
Business Day following the date of receipt or deemed receipt by the Corporation of such Conversion Notice (or, if earlier, the
end of the standard settlement period for U.S. broker-dealer securities transactions, or, if the conversion is conditioned upon
the consummation of a Conversion Triggering Transaction, immediately prior to the consummation of such Conversion Triggering Transaction)
(the “Share Delivery Date”), (x) credit, or cause to be credited, such aggregate number of Conversion
Shares to which the Converting Holder shall be entitled to the Converting Holder’s or its designee’s balance account
with The Depository Trust Company (“DTC”) through its Deposit/Withdrawal at Custodian (“DWAC”)
system, or (y) if none of the Unrestricted Conditions is then satisfied, deliver, or cause to be delivered, a stock certificate
to the address designated by the Converting Holder, in each case, for the number of Conversion Shares to which the Converting Holder
shall be entitled. If the number of shares of Series 1 Preferred Stock represented by any stock certificate surrendered by
the Converting Holder is greater than the number of shares of Series 1 Preferred Stock being converted, then the Corporation
shall, as soon as practicable and in no event later than three (3) Business Days after receipt of such stock certificates
and at its own expense, issue and deliver to the Converting Holder a new certificate representing shares of the Series 1 Preferred
Stock not so converted.

 

(iii)     Book-Entry.
Notwithstanding anything to the contrary set forth herein, upon conversion of shares of Series 1 Preferred Stock in accordance
with the terms hereof, no Holder shall be required to physically surrender the certificate representing the shares of Series 1
Preferred Stock, if any, to the Corporation unless the full number of shares of Series 1 Preferred Stock represented by the
certificate are being converted. Each Holder and the Corporation shall maintain records showing the number of shares of Series 1
Preferred Stock so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to such
Holder and the Corporation, so as not to require physical surrender of the certificate representing the shares of Series 1
Preferred Stock, if any, upon each such conversion. In the event of any dispute or discrepancy, such records of the Corporation
shall be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if shares of Series 1
Preferred Stock represented by a certificate are converted as aforesaid, such Holder may not transfer the certificate representing
the shares of Series 1 Preferred Stock unless such Holder first physically surrenders the certificate representing the shares
of Series 1 Preferred Stock to the Corporation, whereupon the Corporation will forthwith issue and deliver upon the order
of such Holder a new certificate of like tenor, registered as such Holder may request, representing in the aggregate the remaining
number of shares of Series 1 Preferred Stock represented by such certificate. Each Holder and any assignee, by acceptance
of a certificate, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of any shares
of Series 1 Preferred Stock, the number of shares of Series 1 Preferred Stock represented by any such certificate may
be less than the number of shares of Series 1 Preferred Stock stated of the face thereof.

 

    7

     

    

 

(iv)     Restrictive
Legends. Until such time as shares of Series 1 Preferred Stock or Conversion Shares have been registered under the
Securities Act as contemplated by the Registration Rights Agreement or otherwise may be sold pursuant to Rule 144 or an
exemption from registration under the Securities Act without any restriction as to the number of securities as of a
particular date that can then be immediately sold, such Securities may bear the Securities Act Legend (as defined in
Securities Purchase Agreement). The certificates (or electronic book entries, if applicable) evidencing any Securities shall
not contain or be subject to any legend restricting the transfer thereof (including the Securities Act Legend) or be subject
to any stop-transfer instructions: (A) while a registration statement (including a Registration Statement (as such term
is defined in the Registration Rights Agreement)) covering the sale or resale of such Security is effective under the
Securities Act, (B) if the holder of Securities provides the Corporation customary seller and, as applicable, broker
paperwork or other reasonable assurances to the effect that such Securities have been or are being sold pursuant to
Rule 144, (C) if such Securities are eligible for sale under Rule 144(b)(1) and the Holder thereof is
not, and has not been during the preceding three months, an Affiliate of the Corporation (subject to the Holder’s
delivery to the Corporation of a customary non-affiliate representation letter), or (D) if such legend is not required
under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the
staff of the Commission) (collectively, the “Unrestricted Conditions”). Promptly following
the Registration Statement Effective Date or such other time as any of the Unrestricted Conditions have been satisfied, the
Corporation shall cause its counsel to issue a legal opinion or other instruction to the Transfer Agent (if required by the
Transfer Agent) to effect the issuance of the applicable shares of Series 1 Preferred Stock or Conversion Shares without
a restrictive legend or, in the case of shares of Series 1 Preferred Stock or Conversion Shares that have previously
been issued, the removal of the legend thereunder. If any of the Unrestricted Conditions are met with respect to any
shares of Series 1 Preferred Stock or Conversion Shares at the time of issuance of such Security, then such Security
shall be issued free of all legends.  The Corporation agrees that, following the Registration Statement Effective Date
in the case of Conversion Shares, or at such time as any of the other Unrestricted Conditions are met or such legend is
otherwise no longer required under this Section 7(d)(iv), it will, no later than three (3) Trading Days (or if
earlier, the number of Trading Days comprising the standard settlement period for U.S. broker-dealer securities transactions)
following the delivery by the holder thereof to the Corporation or the Transfer Agent of any certificate representing shares
of Series 1 Preferred Stock or Conversion Shares, as applicable, issued with a restrictive legend, deliver or cause to
be delivered to such holder a certificate (or electronic transfer) representing such Securities that is free from all
restrictive and other legends.  For purposes hereof, “Registration Statement Effective Date”
shall mean the date that the first Registration Statement that the Corporation is required to file pursuant to the
Registration Rights Agreement has been declared effective by the Commission. Notwithstanding the foregoing, the certificates
(or electronic book entries, if applicable) evidencing any Series 1 Preferred Stock shall at all times (whether before
or after that satisfaction of any Unrestricted Condition or the Registration Statement Effective Date) bear a legend
indicating that no shares of Series 1 Preferred Stock may be sold, transferred or assigned if a Conversion Notice has
been delivered to the Corporation with respect to such shares and such Conversion Notice has not been voided or
withdrawn.

 

(e)       Record
Holder. The Person or Persons entitled to receive the Conversion Shares issuable upon a conversion of Series 1 Preferred
Stock shall be treated for all purposes as the legal and record holder or holders of such Conversion Shares upon delivery by a
Converting Holder of the Conversion Notice.

 

(f)        Corporation’s
Failure to Timely Convert.

 

(i)       Cash
Damages. If by the Share Delivery Date, the Corporation shall fail to issue and deliver a certificate to a Converting
Holder for, or credit such Converting Holder’s or its designee’s balance account with DTC with, the number of
Conversion Shares to which such Converting Holder is entitled pursuant to this Section 7 (provided any Unrestricted
Condition is satisfied, free of any restrictive legend), then, such Converting Holder shall reasonably promptly provide
written notice to the Corporation that such Converting Holder was not issued the number of Conversion Shares to which such
Converting Holder is entitled pursuant to this Section 7, and, in addition to all other available remedies that such
Converting Holder may pursue hereunder, the Corporation shall pay additional damages to such Converting Holder for each day
after the date such written notice is delivered that such conversion is not timely effected in an amount equal to
one percent (1%) of the product of (I) the number of Conversion Shares not issued to the Converting Holder or
its designee on or prior to the Share Delivery Date and to which the Converting Holder is entitled and (II) the Volume
Weighted Average Price of the Common Stock on the Share Delivery Date. Alternatively, in lieu of the foregoing damages, if
applicable, at the written election of the applicable Converting Holder made in such Converting Holder’s sole
discretion, if, on or after the applicable Share Delivery Date, such Converting Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Converting Holder of Conversion
Shares that such Converting Holder anticipated receiving from the Corporation (such purchased shares,
 “Buy-In Shares”), the Corporation shall be obligated to promptly pay to such Converting Holder (in
addition to all other available remedies that the Converting Holder may otherwise have), 105% of the amount by which
(A) such Converting Holder’s total purchase price (including brokerage commissions, if any) for such Buy-In Shares
exceeds (B) the net proceeds received by such Converting Holder from the sale of the number of shares equal to up to the
number of Conversion Shares such Converting Holder was entitled to receive but had not received on the Share Delivery Date.
If the Corporation fails to pay the additional damages set forth in this Section 7(f)(i) within
five (5) Business Days of the date incurred, then the Converting Holder entitled to such payments shall have the
right at any time, so long as the Corporation continues to fail to make such payments, to require the Corporation, upon
written notice, to immediately issue, in lieu of such cash damages, the number of shares of Common Stock equal to the
quotient of (X) the aggregate amount of the damages payments described herein divided by (Y) the Conversion
Price.

 

    8

     

    

 

(ii)      Void
Conversion Notice. If for any reason a Converting Holder has not received all of the Conversion Shares prior to the tenth (10th)
Business Day after the Share Delivery Date with respect to a conversion of Series 1 Preferred Stock, then such Converting
Holder, upon written notice to the Corporation, may void its conversion with respect to, and retain or have returned, as the case
may be, any shares of Series 1 Preferred Stock that have not been converted pursuant to such Converting Holder’s Conversion
Notice; provided, that the voiding of such Converting Holder’s Conversion Notice shall not affect the Corporation’s
obligations to make any payments that have accrued prior to the date of such notice pursuant to Section 7(f)(i) or otherwise.

 

(iii)     Obligation
Absolute. Subject to Section 7(g)) hereof and subject to a Holder’s right to void a conversion pursuant to Section 7(f)(ii) above,
the Corporation’s obligation to issue and deliver the Conversion Shares upon conversion of Series 1 Preferred Stock
in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by a Holder to enforce
the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action
to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such
Holder or any other Person of any obligation to the Corporation or any violation or alleged violation of law by such Holder or
any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the Corporation to
such Holder in connection with the issuance of such Conversion Shares. Subject to Section 7(g) hereof and subject to
a Holder’s right to void a conversion pursuant to Section 7(f)(ii) above, in the event a Holder shall elect to
convert any or all of its Series 1 Preferred Stock, the Corporation may not refuse conversion based on any claim that such
Holder or anyone associated or affiliated with such Holder has been engaged in any violation of law, agreement or for any other
reason, unless an injunction from a court, on notice to Holder, restraining and/or enjoining conversion of all or part of the Series 1
Preferred Stock of such Holder shall have been sought and obtained, and the Corporation posts a surety bond for the benefit of
such Holder in the amount of 125% of the value of the Conversion Shares into which would be converted the Series 1 Preferred
Stock which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the
underlying dispute and the proceeds of which shall be payable to such Holder to the extent it obtains judgment.

 

(g)       Limitations
on Share Issuances. Notwithstanding anything herein to the contrary, the Corporation shall not issue to any Holder, and
no Holder may acquire, a number of shares of Common Stock hereunder (pursuant to this Section 7(g) or otherwise) to
the extent that, upon such issuance, the aggregate number of shares of Common Stock then beneficially owned by such Holder
together with any Attribution Parties (including shares held by any “group” of which such Holder is a member)
would exceed the then-applicable Beneficial Ownership Limitation for such Holder. For purposes of the foregoing sentence, the
aggregate number of shares of Common Stock beneficially owned by such Holder and its Attribution Parties shall include the
number of shares of Common Stock held by the Holder and all of its Attribution Parties plus the number of shares of Common
Stock issuable upon conversion of such shares of Series 1 Preferred Stock with respect to which the determination of
such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (i) conversion of the
remaining, unconverted portion of the shares of Series 1 Preferred Stock beneficially owned by such Holder or any of its
Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of
the Corporation beneficially owned by such Holder or any of its Attribution Parties subject to a limitation on conversion or
exercise analogous to the limitation contained in this Section 7(g). For purposes hereof, “group” has the
meaning set forth in Section 13(d) of the Exchange Act and applicable regulations of the Commission, and the
percentage held by each Holder shall be determined in a manner consistent with the provisions of Section 13(d) of
the Exchange Act.

 

For purposes of the Beneficial Ownership Limitation,
in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares as reflected
in (1) the Corporation’s most recent quarterly report on Form 10-Q or annual report on Form 10-K, as the case
may be, (2) a more recent public announcement by the Corporation or (3) any other notice by the Corporation or the transfer
agent for the Common Stock setting forth the number of shares outstanding. Upon written request of any Holder at any time, the
Corporation shall, within one (1) Business Day, confirm orally and in writing to such Holder the number of shares of Common
Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to
the conversion or exercise of securities of the Corporation by such Holder and its Attribution Parties since the date as of which
the number of outstanding shares of Common Stock was reported.

 

    9

     

    

 

In the event that the issuance of shares of Common
Stock to any Holder upon the conversion of any of such Holder’s shares of Series 1 Preferred Stock results in such Holder
and its Attribution Parties being deemed to beneficially own, in the aggregate, a number of shares of Common Stock that exceeds
the then-applicable Beneficial Ownership Limitation for such Holder, the issuance of that number of shares so issued in excess
of the Beneficial Ownership Limitation (the “Excess Shares”), and the conversion of shares of Series 1
Preferred Stock resulting in such issuance, shall be deemed null and void and shall be cancelled ab initio, such Holder shall not
have the power to vote or to transfer the Excess Shares, and the shares of Series 1 Preferred Stock as to which the conversion
was voided shall remain outstanding and continue to be held by such Holder. As soon as reasonably practicable after such issuance
and conversion have been deemed null and void, the Corporation shall return to such Holder certificates representing the number
of shares of Series 1 Preferred Stock corresponding to the voided issuance and conversion (to the extent such shares of Series 1
Preferred Stock were surrendered to the Corporation).

 

For purposes of clarity, the shares of Common Stock
underlying any Holder’s shares of Series 1 Preferred Stock in excess of the Beneficial Ownership Limitation shall not
be deemed to be beneficially owned by such Holder for any purpose, including for purposes of Section 13(d) or Rule 16a-1(a)(1) of
the Exchange Act. The provisions of this Section 7(g) shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 7(g) to the extent necessary to correct this paragraph or any portion
of this paragraph which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 7(g) or
to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained in this
Section 7(g) may not be waived and shall apply to any successor Holder of shares of Series 1 Preferred Stock.

 

(h)       [reserved].

 

(i)        Taxes.
The Corporation shall be responsible for any liability with respect to any transfer, stamp, documentary, intangible,
recording or similar non-income Taxes that may be payable in connection with the execution, delivery and performance of this
Certificate, including any such Taxes with respect to the issuance or transfer of shares of Series 1 Preferred Stock or
the Conversion Shares. Notwithstanding any provision herein to the contrary, the Corporation shall (A) be entitled to
deduct and withhold from any payments (which shall include, for purposes of this Section 7(i), Conversion Shares
issued upon conversion of Series 1 Preferred Stock to the extent attributable to declared but unpaid dividends, if any)
made to a holder of any Securities, such amounts that the Corporation may be required to withhold under applicable U.S.
federal withholding Tax requirements (including without limitation under Sections 1471 through 1474 of the Internal Revenue
Code of 1986, as amended) and (B) not be responsible for or liable for any Taxes imposed on, or measured by, net income
(however denominated), franchise Taxes, and branch profits Taxes, in each case,  imposed as a result of a payee (or
  beneficial owner of a payment) being organized under the laws of, or having its principal office in, the jurisdiction
imposing such Tax (or any political subdivision thereof). The Corporation shall provide the applicable payee with five
(5) Business Days’ advance notice of any such required withholding and shall reasonably cooperate with such holder
to mitigate or reduce such withholding.  Any amounts withheld pursuant to clause (A) above shall be treated for
purposes hereof as if paid to the relevant payee.

 

    10

     

    

 

Section 8.     Certain
Adjustments; Calculations; Notices.

 

(a)       Stock
Dividends and Stock Splits. If the Corporation shall at any time effect a Stock Event, then, upon the effective date of such
Stock Event, the Conversion Price shall be, in the case of an increase in the number of shares of Common Stock, proportionally
decreased and, in the case of a decrease in the number of shares of Common Stock, proportionally increased. The Corporation shall
give each Holder the same notice it provides to holders of Common Stock of any transaction described in this Section 8(a).

 

(b)       Fundamental
Transaction.

 

(i)       The
term “Fundamental Transaction” shall mean the occurrence of any of the following at any time while any
shares of Series 1 Preferred Stock are outstanding: (A) the Corporation, directly or indirectly, in one or more related
transactions, effects any merger or consolidation of the Corporation with or into another Person, (B) the Corporation, directly
or indirectly, in one transaction or a series of related transactions, effects any sale of all or substantially all of its assets
(including, for the avoidance of doubt, all or substantially all of the assets of the Corporation and its subsidiaries in the aggregate),
and distributes the proceeds therefrom to the holders of capital stock of the Corporation, (C) any tender offer or exchange
offer (whether by the Corporation or another Person) approved by the Board of Directors is completed pursuant to which holders
of Common Stock are permitted to tender or exchange their shares for other securities, cash and/or other property or (D) the
Corporation, directly or indirectly, in one transaction or a series of related transactions, effects any reclassification of the
Common Stock or any compulsory share exchange (other than as a result of a Stock Event covered by Section 8(a) above)
pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash and/or other property.
Upon or following the occurrence of any Fundamental Transaction, each share of Series 1 Preferred Stock outstanding shall
thereafter be convertible (or, to the extent a Conversion Notice contingent upon consummation of such Fundamental Transaction has
been previously delivered (and has not been voided or otherwise withdrawn) with respect to such share, shall automatically convert)
into the kind and amount of securities, cash and/or other property which a Holder of the number of shares of Common Stock of the
Corporation issuable upon conversion of one share of Series 1 Preferred Stock immediately prior to such Fundamental Transaction
would have been entitled to receive pursuant to such Fundamental Transaction (without regard to any limitation on the conversion
of Series 1 Preferred Stock (including the Beneficial Ownership Limitation)); provided, that, if the value of the aggregate
of such securities, cash and/or other property to which the Holder of one share of Series 1 Preferred Stock would be entitled
upon conversion thereof would be less than the Stated Value, then each outstanding share of Series 1 Preferred Stock shall
instead thereafter be convertible (or, to the extent a Conversion Notice contingent upon consummation of such Fundamental Transaction
has been previously delivered (and has not been voided or otherwise withdrawn) with respect to such share, shall automatically
convert) into such kind of securities, cash and/or other property (in the same proportions as would be applicable but for this
proviso) with an aggregate value equal to the Stated Value. The Corporation shall make an appropriate adjustment to the Conversion
Price following a Fundamental Transaction based on a determination in accordance with Section 8(b)(ii) of the amount
and relative value of the securities, cash and/or other property issuable in respect of one share of Common Stock in such Fundamental
Transaction. If holders of Common Stock are given any choice as to the securities, cash and/or other property to be received in
a Fundamental Transaction, then the Holder shall be given the same choice as to the securities, cash and/or other property it receives
upon any conversion of the Series 1 Preferred Stock following such Fundamental Transaction. The Corporation shall cause any
successor entity (as well as its parent) in a Fundamental Transaction in which the Corporation is not the survivor to assume in
writing all of the obligations of the Corporation under this Certificate in accordance with the provisions of this Section 8(b) pursuant
to written agreements in form and substance approved by the Requisite Holders prior to such Fundamental Transaction.

 

(ii)      For
purposes of determining the value of any securities and/or other property to which a holder of shares of Common Stock would be
entitled pursuant to a Fundamental Transaction: (A) the value of any such security that is traded on a National Exchange at
the effective time of the Fundamental Transaction shall be equal to the Volume Weighted Average Price per share of such securities
for the five (5) Trading Days immediately prior to such effective time; and (B) the value of any other property (including
a security that is not traded on a National Exchange at the effective time of the Fundamental Transaction) shall be equal to the
fair market value thereof as determined by the mutual agreement of the Corporation and the Requisite Holders.

 

    11

     

    

 

(c)       Certain
Events. If any event occurs of the type contemplated by the provisions of Section 8(a) or Section 8(b) but
not expressly provided for by such provisions, then the Board of Directors will make an appropriate adjustment in the Conversion
Price so as to protect the rights of the Holders; provided, however, that no such adjustment will increase the Conversion Price
as otherwise determined pursuant to this Section 8.

 

(d)       Calculations.
All calculations under this Section 8 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may
be. For purposes of this Section 8, the number of shares of Common Stock deemed to be issued and outstanding as of a given
date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued and outstanding.

 

(e)       Adjustment
Notices.

 

(i)       Promptly
following, but in no event later than one (1) Business Day after, any adjustment of the Conversion Price pursuant to Section 8(a),
the Corporation will give written notice thereof to each Holder, setting forth in reasonable detail and certifying the calculation
of such adjustment.

 

(ii)      The
Corporation will give written notice to each Holder at least ten (10) days prior to the date on which the Corporation closes
its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect
to any pro rata subscription offer to holders of Common Stock, or (C) for determining rights to vote with respect to any Fundamental
Transaction or winding-up, dissolution or liquidation of the Corporation; provided, however, that in no event shall such notice
be provided to any Holder prior to such information being made known to the public.

 

(iii)     The
Corporation will give written notice to each Holder at least ten (10) days prior to the date on which any Fundamental Transaction,
dissolution or liquidation will take place, and in no event shall such notice be provided to any Holder prior to such information
being made known to the public.

 

Section 9.     Dispute
Resolution. In the case of a dispute between the Corporation and any Holder (i) as to the value of any asset or other
property pursuant to Section 6, in connection with any liquidation, dissolution or winding up of the Corporation, or Section 8(b),
in connection with any Fundamental Transaction, or (ii) as to the determination of any adjustment to the Conversion Price
following a Fundamental Transaction pursuant to Section 8(b), the Corporation shall promptly (and in any event within two
(2) Business Days of notice of any such dispute from such Holder) submit via facsimile the disputed value of such asset or
other property, or the disputed determination of such adjustment to the Conversion Price, as applicable, to an independent, reputable
investment banking firm agreed to by the Corporation and the Requisite Holders. The Corporation shall direct the investment bank
to determine the value of such asset or other property, or the adjustment to the Conversion Price, as applicable, and notify the
Corporation and such Holder of the results no later than two (2) Business Days from the time the investment bank receives
the disputed value or disputed determination, as applicable. Such investment bank’s determination of the value of any such
asset or other property, or of the adjustment to the Conversion Price, as applicable, shall be binding upon all parties absent
manifest error.

 

Section 10.   Reservation
of Shares. The Corporation shall, so long as any of the shares of Series 1 Preferred Stock are outstanding, reserve
and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of the
shares of Series 1 Preferred Stock, such number of shares of Common Stock as shall, from time to time, be sufficient to
effect the conversion of all of the shares of Series 1 Preferred Stock then outstanding (without regard to any
limitations on conversions (including the Beneficial Ownership Limitation)). The number of shares of Common Stock reserved
for conversions of the shares of Series 1 Preferred Stock shall be allocated pro rata among the Holders based on the
number of shares of Series 1 Preferred Stock held by each Holder. In the event a Holder shall sell or otherwise transfer
any of such Holder’s shares of Series 1 Preferred Stock, each transferee shall be allocated a pro rata portion of
the number of reserved shares of Common Stock reserved for such transferor. Any shares of Common Stock reserved and which
remain allocated to any Person which does not hold any shares of Series 1 Preferred Stock shall be allocated to the
remaining Holders, pro rata based on the number of shares of Series 1 Preferred Stock then held by each such Holder.

 

    12

     

    

 

Section 11.   Miscellaneous.

 

(a)       Notices.
Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation,
any Conversion Notice, shall be in writing and delivered personally, by electronic mail to Series1@Proteontx.com, or sent by a
nationally recognized overnight courier service, addressed to the Corporation, at its principal place of business, to the attention
of the President and Chief Executive Officer of the Corporation, with a copy to the Legal Department, or such other electronic
mail address or address as the Corporation may specify for such purposes by notice to the Holders delivered in accordance with
this Section 11(a). Any and all notices or other communications or deliveries to be provided by the Corporation hereunder
shall be in writing and delivered personally, by confirmed electronic mail or facsimile, or sent by a nationally recognized overnight
courier service addressed to each Holder at the electronic mail address, facsimile number or address of such Holder appearing on
the books of the Corporation, or if no such facsimile number or address appears on the books of the Corporation, at the principal
place of business of such Holder. Except as otherwise expressly provided herein, any notice or other communication or deliveries
hereunder shall be deemed given and effective on the earliest of (i) the time and date of transmission, if such notice or
communication is delivered via electronic mail at the e-mail address specified in this Section 11(a) prior to 4:00 p.m. (New
York City time) on any date, (ii) the date immediately following the date of transmission, if such notice or communication
is delivered via email at the email address specified in this Section 11(a) between 4:00 p.m. and 11:59 p.m. (New
York City time) on any date, (iii) the second Business Day following the date of mailing, if sent by nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

(b)       Absolute
Obligation. Except as expressly provided herein, no provision of this Certificate shall alter or impair the obligation of the
Corporation, which is absolute and unconditional, to pay liquidated damages on the shares of Series 1 Preferred Stock at the
time, place, and rate, and in the coin or currency, herein prescribed.

 

(c)       Lost
or Mutilated Series 1 Preferred Stock Certificate. If a Holder’s Series 1 Preferred Stock certificate shall
be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver, in exchange and substitution for and upon cancellation
of a mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for
the shares of Series 1 Preferred Stock so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such
loss, theft or destruction of such certificate, and of the ownership thereof reasonably satisfactory to the Corporation and, in
each case, customary and reasonable indemnity, if requested. Applicants for a new certificate under such circumstances shall also
comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Corporation
may prescribe.

 

    13

     

    

 

(d)       Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate shall be cumulative
and in addition to all other remedies available under this Certificate, at law or in equity (including a decree of specific performance
and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance with the provisions giving
rise to such remedy and nothing herein shall limit a Holder’s right to pursue actual damages for any failure by the Corporation
to comply with the terms of this Certificate. The Corporation covenants to each Holder that there shall be no characterization
concerning this instrument other than as expressly described herein. Amounts set forth or provided for herein with respect to
payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the holder thereof and
shall not, except as expressly provided herein, be subject to any other obligation of the Corporation (or the performance thereof).
The Corporation acknowledges that a breach by it of its obligations hereunder may cause irreparable harm to the Holders by vitiating
the intent and purpose of the transactions contemplated by this Certificate and that the remedy at law for any such breach may
be inadequate. The Corporation therefore agrees that, in the event of any such breach or threatened breach by the Corporation
of the provisions of this Certificate, the Holders shall be entitled, in addition to all other available remedies, to an injunctive
order and/or injunction restraining any breach and requiring immediate compliance, without the necessity of showing economic loss
and without any bond or other security being required.

 

(e)       Waiver.
Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate shall not operate as or be construed
to be a waiver of any other breach of such provision or of any breach of any other provision of this Certificate or a waiver by
any other Holders. The failure of the Corporation or a Holder to insist upon strict adherence to any term of this Certificate on
one or more occasions shall not be considered a waiver or deprive that party (or any other Holder) of the right thereafter to insist
upon strict adherence to that term or any other term of this Certificate. Any waiver by the Corporation or a Holder must be in
writing.

 

(f)       Severability.
If any provision of this Certificate is invalid, illegal or unenforceable, the balance of this Certificate shall remain in effect,
and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons
and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable
law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of
interest permitted under applicable law. Notwithstanding any provision in this Certificate to the contrary, any provision contained
herein (other than Section 7(c) which cannot be waived by the Holders) and any right of the Holders of Series 1
Preferred Stock granted hereunder may be waived as to all shares of Series 1 Preferred Stock (and the Holders thereof) upon
the written consent of the Requisite Holders, unless a higher percentage is required by the DGCL, in which case the written consent
of the holders of not less than such higher percentage shall be required.

 

(g)       Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

(h)       Headings.
The headings contained herein are for convenience only, do not constitute a part of this Certificate and shall not be deemed to
limit or affect any of the provisions hereof.

 

(i)       Status
of Converted Series 1 Preferred Stock. If any shares of Series 1 Preferred Stock shall be converted or reacquired
by the Corporation, such shares of Series 1 Preferred Stock shall resume the status of authorized but unissued shares of preferred
stock and shall no longer be designated as Series 1 Preferred Stock.

 

(j)       Benefit
of Holders. The provisions of this Certificate are intended to be for the benefit of all Holders from time to time and shall
be enforceable by any such Holder.

 

*********************

 

    14

     

    

 

RESOLVED,
FURTHER, that the Chairperson, the president or any vice-president, and the secretary or any assistant secretary, of
the Corporation be, and they hereby are, authorized and directed to prepare and file a Certificate of Designation of Preferences,
Rights and Limitations in accordance with the foregoing resolution and the provisions of Delaware law.

 

IN
WITNESS WHEREOF, the undersigned has executed this Certificate of Designation this day of                , 2019.

 

	 	 
	Name:	 
	Title:	 

 

    15

     

    

 

ANNEX A

 

CONVERSION NOTICE

 

(TO BE EXECUTED BY THE REGISTERED HOLDER
IN ORDER TO CONVERT SHARES OF SERIES 1 PREFERRED STOCK)

 

Reference is made to the Certificate of Designation of Preferences,
Rights and Limitations of Series 1 Convertible Non-Voting Preferred Stock (the “Certificate of Designation”).
In accordance with and pursuant to the Certificate of Designation, the undersigned hereby elects to convert the number of shares
of Series 1 Convertible Non-Voting Preferred Stock, par value $0.001 per share and with a stated value of $[1000 x conversion
price] per share (the “Series 1 Preferred Stock”), of Proteon Therapeutics, Inc., a Delaware corporation
(the “Corporation”), indicated below into shares of common stock, par value $0.001 per share (the “Common Stock”),
of the Corporation, by tendering the stock certificate(s) representing the shares of Series 1 Preferred Stock specified
below as of the date specified below.

 

	 	Date of Conversion:
	 	 
	 	Number of shares of Series 1 Preferred Stock to be converted:
	 	 
	 	Stock certificate no(s). of shares of Series 1 Preferred Stock to be converted:
	 	 
	 	This Conversion is conditioned upon the consummation of the following Conversion Triggering Transaction:                                                             [1]
	 	 	 
	Please confirm the following information:
	 	 	 
	 	Conversion Price:
	 	 
	 	Number of shares of Common Stock to be issued:
	 	 
	Please issue the shares of Common Stock in accordance with the terms of the Certificate of Designation as follows:
	 	 	 
	 	 	 ̈  Deposit/Withdrawal At Custodian (“DWAC”) system; or
	 	 	 
	 	 	 ̈  Physical Certificate
	 	 	 
	 	Issue to:
	 	 
	 	Address (for delivery of physical certificate):
	 	 
	 	E-mail:
	 	 	 
	DTC Participant Number and Name (if through DWAC):
	 
	Account Number (if through DWAC):
	 	 	 	 

 

[1] No such condition applies if left blank.

 

    16

     

    

 

ACKNOWLEDGMENT

 

The Corporation hereby acknowledges
this Conversion Notice and hereby directs              to issue the above indicated number of shares of Common Stock in accordance with
the Transfer Agent Instructions dated                 , 20 from
the Corporation and acknowledged and agreed to by                 .

 

	 	PROTEON THERAPEUTICS, INC.
	 	 
	 	By:	                        
	 	Name:	 
	 	Title:	 

 

    17

     

    

 

EXHIBIT A

 

FORM OF OPINION

 

      , 20     

 

[           ]

 

Re: [      ]
(the “Company”)

 

Dear [      ]:

 

[           ]
(“[          ]”) intends to transfer                      [shares of Series 1 Convertible Non-Voting Preferred Stock] [Conversion Shares] (the “Securities”) of the Company
to                  (“        “)
without registration under the Securities Act of 1933, as amended (the “Securities Act”). In connection therewith,
we have examined and relied upon the truth of representations contained in an Investor Representation Letter attached hereto and
have examined such other documents and issues of law as we have deemed relevant.

 

Based on and subject to the foregoing, we are of the opinion
that the transfer of the Securities by                to                  may be
effected without registration under the Securities Act, provided, however, that the Securities to be transferred to        
contain a legend restricting its transferability pursuant to the Securities Act and that transfer of the Securities is subject
to a stop order.

 

The foregoing opinion is furnished only to                  and may not be used, circulated, quoted or otherwise referred to or relied upon by you for any purposes other than the purpose
for which furnished or by any other person for any purpose, without our prior written consent.

 

Very truly yours,

 

    18

     

    

 

Exhibit B

 

BBA REGISTRATION RIGHTS AGREEMENT

 

    19

     

    

 

Exhibit C

 

REGISTRATION RIGHTS AGREEMENT

 

    20

     

    

  

PROTEON THERAPEUTICS, INC.

FIRST AMENDMENT TO SUBSCRIPTION AGREEMENT

 

This FIRST AMENDMENT TO SUBSCRIPTION
AGREEMENT (this “Amendment”), amending the Subscription Agreement by and between PROTEON THERAPEUTICS, INC.,
a Delaware corporation (the “Company”), and the persons and entities listed on Schedule I attached
thereto (“Purchasers”) dated as of September 23, 2019 (the “Purchase Agreement”),
is entered into as of November 19, 2019 by and among the Company, ArTara Therapeutics, Inc. and the undersigned Purchasers.
Capitalized terms used herein which are not defined herein shall have the definition ascribed to them in the Purchase Agreement.

 

RECITALS

 

WHEREAS,
the Company and the Purchasers have previously entered into the Purchase Agreement;

 

WHEREAS,
in order for the combined company to comply with the listing requirements of the Nasdaq Capital Market following the consummation
of the transactions contemplated by the Merger Agreement, the parties desire for certain Securities to be issued and sold by ArTara
Therapeutics, Inc. immediately prior to the Effective Time in lieu of being issued and sold pursuant to the Purchase Agreement
immediately following the Effective time;

 

WHEREAS,
Section 12.01 of the Purchase Agreement provides that the Purchase Agreement may be amended with the written consent
of (i) the Company and (ii) the Purchasers holding, or having the right to purchase at the Closing, a majority of the
Securities purchased or to be purchased thereunder (calculated on an as-converted to Common Stock basis) (the “Requisite
Purchasers”); and

 

WHEREAS,
the undersigned constitute the Company and the Requisite Purchasers.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing and the promises and covenants contained herein and in the Purchase Agreement,
and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.       Addition
of ArTara Therapeutics, Inc. as Party; Joinder. In connection with this Amendment, ArTara Therapeutics, Inc. (“ArTara”
or “Joining Party”), a Delaware corporation shall become a party to the Purchase Agreement. With effect
from the date hereof, the Joining Party acknowledges and agrees to be bound by all provisions of the Purchase Agreement in so far
as they impose obligations on ArTara or give rights or benefits to the Purchaser of the ArTara Common Stock (defined below) and
shall be and become a party to the Purchase Agreement with respect to the sale and issuance of the ArTara Common Stock in accordance
with the Purchase Agreement, as amended by this Amendment.

 

    1

     

    

 

2.       Amendment
to Recital Language. The recitals in the Purchase Agreement are hereby amended and restated in their entirety as follows:

 

“WHEREAS, the Company,
ArTara Therapeutics, Inc. and the Purchasers are executing and delivering this Agreement in reliance upon the exemption from
securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933
Act”), and Rule 506 of Regulation D promulgated by the United States Securities and Exchange Commission (the
 “Commission”) under the 1933 Act;

 

WHEREAS,
(i) the Company desires to sell to certain of the Purchasers, and such Purchasers desire to purchase from the Company, (x) up
to $27,200,000.00 of shares of Series 1 Convertible Non-Voting Preferred Stock of the Company, par value $0.001 per share
(the “Series 1 Preferred Stock”), having the relative rights, preferences, limitations and powers
set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series 1 Convertible Non-Voting Preferred
Stock, in the form attached hereto as Exhibit A (the “Certificate of Designation”) at a purchase
price equal to the Series 1 Preferred Stock Purchase Price (defined below); and (y) up to $13,300,000.00 (the “Common
Maximum Amount”) of shares of Common Stock of the Company, par value $0.001 (the “Common Stock”)
at a purchase price equal to the Common Stock Purchase Price (defined below), and (ii) ArTara desires to sell to certain of
the Purchasers and such Purchaser desires to purchase from ArTara $2,000,000 of shares of Common Stock of ArTara, par value $0.0001
(the “ArTara Common Stock”) at a purchase price equal to the ArTara Common Stock Purchase Price (defined
below), each in accordance with the terms and provisions of this Agreement.”

 

3.       Restatement
of Section 1.01 of the Purchase Agreement. Section 1.01 of the Purchase Agreement is hereby amended and restated
in its entirety as follows:

 

“1.01The Company has
authorized the sale and issuance of shares of Series 1 Preferred Stock and Common Stock on the terms and subject to the conditions
set forth in this Agreement. ArTara has authorized the sale and issuance of the shares of ArTara Common Stock on the terms and
subject to the conditions set forth in this Agreement. The shares of Series 1 Preferred Stock, Common Stock and ArTara Common
Stock sold hereunder at the Closing (as defined below) shall be referred to as the “Securities.””

 

4.       Restatement
of Section 2.01 of the Purchase Agreement. Section 2.01 of the Purchase Agreement is hereby amended and restated
in its entirety as follows:

 

“2.01     Closing
Securities. Upon the terms and subject to the conditions herein contained, (x) the Company agrees to sell to each Purchaser,
and each Purchaser agrees to purchase from the Company, at a closing to occur immediately following the Effective
Time (as such term is defined in that certain Agreement and Plan of Merger and Reorganization by and among the Company, REM 1

 

    2

     

    

 

Acquisition, Inc. and ArTara Therapeutics, Inc.,
dated as of the date hereof (the “Merger Agreement”)), that number of Securities set forth opposite such
Purchaser’s name on the Schedule of Purchasers under the heading “Company Closing Shares”
for the purchase price to be paid by each Purchaser set forth opposite such Purchaser’s name on the Schedule of Purchasers,
and (y) ArTara agrees to sell to each Purchaser, and each Purchaser agrees to purchase from ArTara, at a closing to occur
immediately prior to the Effective Time, that number of Securities set forth opposite such Purchaser’s name
on the Schedule of Purchasers under the heading “ArTara Closing Shares” for the purchase price to be
paid by each Purchaser set forth opposite such Purchaser’s name on the Schedule of Purchasers (the “ArTara Closing”).
The closings referred to in clauses (x) and (y) of the first sentence of this Section 2.01 shall be referred to
together herein as the “Closing” and the date of the Closing shall be referred to herein as the “Closing
Date.””

 

5.       Amendment
of Section 7.01 of the Purchase Agreement. The first paragraph of Section 7.01 is amended by adding the following
second sentence:

 

“Notwithstanding the foregoing, the conditions
set forth in Section 7.01(h), (i), (j) and (l) shall not be applicable with respect to any Purchaser in the ArTara
Closing.”

 

6.       Amendment
of Section 7.02 of the Purchase Agreement. The first paragraph of Section 7.02 is amended by adding the following
second sentence:

 

“Notwithstanding the foregoing, the conditions
set forth in Section 7.02(d) and (e) shall not be applicable with respect to the ArTara Closing.”

 

7.       Additional
Definition in Section 11 of the Purchase Agreement. The following defined term is hereby added to Section 11 of the
Purchase Agreement:

 

“ArTara Common Stock
Purchase Price” shall mean the Common Stock Purchase Price multiplied by the Exchange Ratio.

 

8.       Replacement
of Schedule I. The Schedule of Purchasers attached as Schedule I to the Purchase Agreement is hereby replaced, in its entirety,
with the Schedule of Purchasers attached as Schedule II to this Amendment.

 

9.       Effect
of Amendment. Except as expressly modified by this Amendment, the Purchase Agreement shall remain unmodified and in full force
and effect.

 

10.       Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York without regard
to its conflict of law principles.

 

11.       Counterparts.
This Amendment may be executed in any number of counterparts and signatures delivered by facsimile, each of which shall be deemed
an original, but all of which together shall constitute one instrument.

 

    3

     

    

 

[Signature Page Follows]

 

    4

     

    

 

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

 

	COMPANY:	 	PURCHASERS:
	 	 	 
	PROTEON THERAPEUTICS, INC.	 	667, L.P.
	 	 	 
	 	 	By: BAKER BROS. ADVISORS LP,
	/s/ Timothy P. Noyes	 	management company and investment adviser to 667, L.P., pursuant to authority granted to it by Baker Biotech Capital, L.P., general partner to 667, L.P., and not as the general partner
	Name: Timothy P. Noyes	 
	Title: President and Chief Executive Officer	 
	 	 	 
	 	 	By:	/s/ Scott Lessing
	 	 	Name: Scott Lessing
	 	 	Title: President
	 	 	 
	JOINING PARTY:	 	BAKER BROTHERS LIFE SCIENCES, L.P.
	 	 	 
	ARTARA THERAPEUTICS, INC.	 	By: BAKER BROS. ADVISORS LP,
	 	 	management company and investment adviser to BAKER BROTHERS LIFE SCIENCES, L.P., pursuant to authority granted to it by Baker Brothers Life Sciences Capital, L.P., general partner to BAKER BROTHERS LIFE SCIENCES, L.P., and not as the general partner
	 	 
	/s/ Jesse Shefferman	 
	Name: Jesse Shefferman

Title: CEO	 
	 	 	 
	 	 	By:	/s/ Scott Lessing
	 	 	Name: Scott Lessing
	 	 	Title: President
	 	 	 
	 	 	DRW VENTURE CAPITAL, LLC
	 	 	 
	 	 	 
	 	 	By:	/s/ David B. Nelson
	 	 	Name: David B. Nelson
	 	 	Title: Vice President

 

    5

     

    

 

Schedule II

 

SCHEDULE OF PURCHASERS

 

    1Exhibit 10.10

 

ArTara
Therapeutics, Inc.

 

Non-Employee
Director Compensation Policy

 

Each member of the Board of Directors (the
 “Board”) who is not also serving as an employee of or consultant to ArTara Therapeutics, Inc. (the “Company”)
or any of its subsidiaries (each such member, an “Eligible Director”) will receive the compensation described
in this Non-Employee Director Compensation Policy for his or her Board service. An Eligible Director may decline all or any portion
of his or her compensation by giving notice to the Company prior to the date cash may be paid or equity awards are to be granted,
as the case may be. This policy is effective as of January 9, 2020 (the “Effective Date”) and may be
amended at any time in the sole discretion of the Board or the Compensation Committee of the Board. This policy supersedes any
prior agreement that provides for compensation terms as of the Effective Date.

 

Cash Compensation

 

The annual cash compensation amount set
forth below is payable to Eligible Directors in equal quarterly installments, payable in arrears on the last day of each fiscal
quarter in which the service occurred. If an Eligible Director joins the Board or a committee of the Board at a time other than
effective as of the first day of a fiscal quarter, each annual retainer set forth below will be pro-rated based on days served
in the applicable fiscal year, with the pro-rated amount paid for the first fiscal quarter in which the Eligible Director provides
the service and regular full quarterly payments thereafter. All annual cash fees are vested upon payment.

 

For Eligible Directors who are serving
on the Board as of the Effective Date the annual cash compensation shall be deemed effective as of the later of (i) October 1,
2019 or (ii) the date such member of the Board was appointed or elected to the Board or to the board of directors of a wholly-owned
subsidiary of the Company.

 

		1.	Annual Board Service Retainer:

	 	a.	All
Eligible Directors: $35,000
		b.	Chairman of the Board Service Retainer (in addition to Eligible Director Service Retainer): $115,000

 

		2.	Annual Committee Chair Service Retainer:

		a.	Chairman of the Audit Committee: $15,000

		b.	Chairman of the Compensation Committee: $10,000

		c.	Chairman of the Nominating and Corporate Governance Committee:
$7,500

 

		3.	Annual Committee Member Service Retainer (not applicable to Committee Chairs):

		a.	Member of the Audit Committee: $7,500

		b.	Member of the Compensation Committee: $5,000

		c.	Member of the Nominating and Corporate Governance Committee:
$5,000

 

    1.

     

    

  

Equity Compensation

 

The equity compensation set forth below
will be granted under the Company’s Amended and Restated 2014 Equity Incentive Plan (as amended from time to time, the “Plan”).
All stock options granted under this policy will be nonstatutory stock options, with an exercise price per share equal to 100%
of the Market Value (as defined in the Plan) of the underlying Common Stock on the date of grant, and a term of ten years from
the date of grant (subject to earlier termination in connection with a termination of service as provided in the Plan, provided
that upon a termination of service other than for death, disability or cause, the post-termination exercise period will be 12 months
from the date of termination).

 

1.       Initial
Grant: On the date of the Eligible Director’s initial election to the Board, for each Eligible Director who is first
elected to the Board following the Effective Date (or, if such date is not a market trading day, the first market trading day thereafter),
the Eligible Director will be automatically, and without further action by the Board or Compensation Committee of the Board, granted
a stock option for 13,800 shares (the “Initial Grant”). The shares subject to each Initial Grant will
vest in equal monthly installments over a three year period such that the option is fully vested on the third anniversary of the
date of grant, subject to the Eligible Director’s continuous service as a member of the Board through each such vesting date
and will vest in full upon a Change of Control (as defined in the Plan).

 

2.       Annual
Grant: On the date of each Company annual stockholder meeting held after the Effective Date, for each Eligible Director who
continues to serve as a non-employee member of the Board (or who is first elected to the Board at such annual stockholder meeting),
the Eligible Director will be automatically, and without further action by the Board or Compensation Committee of the Board, granted
a stock option for 9,200 shares (the “Annual Grant”). In addition, each Eligible Director who is first
elected to the Board following the Effective Date and other than at an annual stockholder meeting will be automatically, and without
further action by the Board or Compensation Committee of the Board, granted an Annual Grant, pro rated for the number of months
remaining until the next annual stockholder meeting. The shares subject to the Annual Grant will vest in equal monthly installments
over the 12 months following the date of grant, provided that the Annual Grant will in any case be fully vested on the date of
the Company’s next annual stockholder meeting, subject to the Eligible Director’s continuous service as a member of
the Board through such vesting date and will vest in full upon a Change of Control.

 

    2.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]