Document:

Exhibit 10.1

 

TERMINATION AGREEMENT

 

THIS TERMINATION
AGREEMENT, dated as of April 6, 2016 (this “Agreement”), among ZAIS FINANCIAL CORP., a Maryland corporation
that has elected to be treated as a real estate investment trust for federal income tax purposes (“Company”),
ZAIS FINANCIAL PARTNERS, L.P., a Delaware limited partnership and the operating partnership of Company (“Company Operating
Partnership”), each of the subsidiaries of Company as set forth on the signature page hereto (“Company Subsidiaries”),
ZAIS REIT MANAGEMENT, LLC, a Delaware limited liability company and the investment advisor to Company (“Advisor”),
and SUTHERLAND ASSET MANAGEMENT CORPORATION, a Maryland corporation that has elected to be treated as a real estate investment
trust for federal income tax purposes (“Sutherland”). Each of Company, Company Operating Partnership, Company
Subsidiaries, Advisor and Sutherland is sometimes referred to herein as a “Party” and collectively as the “Parties.”

 

WHEREAS, Company, Company
Operating Partnership, ZAIS Merger Sub, LLC, Sutherland and Sutherland Partners, L.P. have entered into that certain Agreement
and Plan of Merger dated as of the date hereof (as may be amended, the “Merger Agreement”), which sets forth
certain rights and obligations of the parties thereto; and

 

WHEREAS, upon the consummation
of the Mergers (as defined in the Merger Agreement), the Parties desire to terminate the Third Amended and Restated Investment
Advisory Agreement, dated as of August 11, 2014, among Company, Company Operating Partnership, Company Subsidiaries and Advisor
(the “Company Advisory Agreement”), upon the terms and subject to the conditions set forth herein.

 

NOW THEREFORE, in consideration
of the foregoing and the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

 

Article
I

TERMINATION

 

Section
1.1           
Definitions. Capitalized terms used and not defined in this Agreement shall have the respective meanings ascribed
to such terms in the Merger Agreement.

 

Section 1.2           
Termination of Company Advisory Agreement.

 

(a)               
Advisor, Company, Company Operating Partnership and Company Subsidiaries hereby agree that the Company Advisory Agreement
shall be terminated, without any further liability or obligation on the part of any party thereto, effective as of the Closing
and upon receipt of the Advisor Termination Payment; provided, that each of Section 6 (Records; Confidentiality), Section
9 (Expenses of the Company), Section 10 (Calculations of Expenses), Section 11 (Limits of Advisor Responsibility; Indemnification),
Section 16 (Actions Upon Termination) and Section 20 (Governing Law) of the Company Advisory Agreement shall survive such termination
until they are satisfied in full or by their nature expire in accordance with its terms, subject to Section 1.3. If the
Merger Agreement is terminated, this Agreement shall automatically be deemed revoked and void ab initio.

 

     

     

    

 

(b)              
The Advisor Termination Payment shall be paid by Company on the Closing Date to the account of Advisor as set forth
in Schedule I. For the avoidance of doubt, no Termination Fee (as defined in the Company Advisory Agreement) shall be payable
in connection with the termination of the Company Advisory Agreement.

 

Section
1.3           
Waiver of Notice; Calculation of Fees. Each Party waives any notice of termination requirement, whether set
forth in the Company Advisory Agreement, any other contract between Company and Advisor or its Affiliate or otherwise. All fees
due and payable for the period up to the Closing under the Company Advisory Agreement shall be calculated in accordance with the
term of the Company Advisory Agreement; provided, that Advisor shall deliver the statement contemplated by Section 10 of
the Company Advisory Agreement documenting the Expenses (as defined in the Company Advisory Agreement) of Company, Company Operating
Partnership and Company Subsidiaries and Expenses incurred by Advisor, within 30 days after the Closing Date.

 

Article
II

REPRESENTATIONS AND WARRANTIES OF ADVISOR

 

Advisor hereby represents
and warrants to Company, Company Operating Partnership, Company Subsidiaries and Sutherland as follows:

 

Section
2.1           
Organization. Advisor is a limited liability company duly organized, validly existing and in good standing
under the laws of Delaware and has all limited liability company power required to carry on its business as now conducted.

 

Section
2.2           
Authority. Advisor has full limited liability company power and authority to execute, deliver and perform
its obligations under this Agreement. This Agreement has been duly executed and delivered by Advisor and is legal, valid, binding
and enforceable upon and against Advisor.

 

Section
2.3           
No Conflict; Required Filings and Consents. The execution, delivery and performance by Advisor of this Agreement
and the consummation by Advisor of the transactions contemplated hereby do not and will not (a) violate any provision of the
organizational documents of Advisor; (b) violate any federal, state or local statute, law, regulation, order, injunction or
decree (“Law”); or (c) require any consent or approval of any person, including any registration or filing
with, or notice to any federal, state or local governmental authority or any agency or instrumentality thereof.

 

Section
2.4           
Claims by Advisor. Advisor has not made any claims against Company, Company Operating Partnership and Company
Subsidiaries (“Company Parties”) and, to Advisor’s knowledge, there are no pending or threatened claims
or facts or circumstances which are reasonably likely to give rise to any claim by Advisor against any Company Party.

 

Section
2.5           
Claims by Company Parties. None of the Company Parties has made any claims against Advisor and, to Advisor’s
knowledge, there are no pending or threatened claims or facts or circumstances which are reasonably likely to give rise to any
claim by any Company Party against Advisor.

 

    2

     

    

 

Section
2.6           
Brokers. Except as previously disclosed to Sutherland pursuant to the Company Disclosure Letter, no broker,
finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions
contemplated hereby based upon arrangements made by or on behalf of Advisor or its Affiliates.

 

Article
III

COVENANTS

 

Section
3.1           
Public Announcements. So long as this Agreement is in effect, the Parties shall consult with each other before
issuing any press release or otherwise making any public statements or filings with respect to this Agreement or any of the transactions
contemplated by this Agreement, and none of the Parties shall issue any such press release or make any such public statement or
filing prior to obtaining the other Parties’ consent (which consent shall not be unreasonably withheld, conditioned or delayed);
provided, that a Party may, without obtaining the other Parties’ consent, issue such press release or make such public
statement or filing as may be required by Law, order or the applicable rules of any stock exchange if it is not possible to consult
with the other Party before making any public statement with respect to this Agreement or any of the transactions contemplated
by this Agreement.

 

Section
3.2           
Post-Closing Cooperation. (a) Advisor and Company shall cooperate with each other, and shall cause their Representatives
to cooperate with each other, for a period of 180 days after the Closing Date to facilitate the orderly transition of management
of Company and Company Subsidiaries from Advisor to Waterfall and to minimize any disruption to Company and the Company Subsidiaries
that might result from the transactions contemplated by the Merger Agreement. After the Closing, upon reasonable written notice,
each of Advisor and Company shall furnish or cause to be furnished to each other and their respective Representatives access, during
normal business hours, to such information and assistance relating to Company and Company Subsidiaries (to the extent within the
control of such Party) as is reasonably necessary for the conduct of business in the ordinary course, including but not limited
to financial reporting, accounting and regulatory purposes.

 

(b)              
For the avoidance of doubt, the delivery to the Board of Directors of all property and documents of the Company or
any Company Subsidiary then in the custody of the Advisor required under Section 16(iii) of the Company Advisory Agreement shall
include all imaged, electronic or physical Collateral Files to the extent in the possession or the control of Advisor or its Affiliates
(other than Company or any Company Subsidiary). Any such documents shall be delivered by Advisor to a location in the United States,
as designated by Company. To the extent any such documents have not been delivered as of the Closing Date, Advisor shall cause
such documents to be delivered to Company or Company’s designee as promptly as reasonably practicable following the Closing
Date and shall be held by Advisor in trust for the benefit of Company until delivery to Company or Company’s designee. Notwithstanding
anything to the contrary in this Agreement or the Merger Agreement, Advisor (i) shall be permitted to retain such copies of the
Collateral Files and other property and documents as are necessary solely for the purpose of demonstrating compliance with applicable
Laws and for defending or maintaining any Action, and (ii) shall not be required to deliver such copies of the Collateral Files
and other property and documents as are maintained on any back-up or archival electronic storage system maintained by Advisor in
the ordinary course of business.

 

    3

     

    

 

(c)               
Each Party shall reimburse the other for reasonable, documented out-of-pocket costs and expenses incurred in assisting
the other pursuant to this Section 3.2. Neither Party shall be required by this Section 3.2 to take any action that
would unreasonably interfere with the conduct of the business of such Party or its Affiliates or unreasonably disrupt the normal
operations of such Party or its Affiliates. For the avoidance of doubt, any information relating to Company and the Company Subsidiaries
received or retained by Advisor pursuant to this Section 3.2 shall be subject to Section 6 (Records; Confidentiality) of
the Company Advisory Agreement.

 

(d)              
As of the date that is ten (10) Business Days following the Merger Effective Time, Company will cease all use, and
will cause each Company Subsidiary to cease all use, of the “ZAIS” name, any derivative thereof or any terms confusingly
similar thereto, and none of Surviving Entity or any of its subsidiaries will ever use the “ZAIS” name, any derivative
thereof or any terms confusingly similar thereto; provided, that nothing in this Section 3.2(d) shall (i) require
any amendment to any financing statement, deed or other similar public filing or recorded instrument made in the name of Company
or any Company Subsidiary as a secured party, or (ii) prevent the Surviving Entity or its subsidiaries from (A) informing third
parties of the change in name, (B) using written materials marked with such names prior to the Closing Date, or (C) using the “ZAIS”
name as reasonably necessary or advisable for historical purposes to describe the former legal name of Company or any Company Subsidiary
or the former advisor to Company or any Company Subsidiary for the period prior to the Closing Date

 

Article
IV

GENERAL PROVISIONS

 

Section
4.1           
Fees and Expenses. Each Party shall bear the costs of its own legal, financial, strategic, accounting and
tax advisors.

 

Section
4.2           
Amendment and Modification. This Agreement may not be amended, modified or supplemented in any manner, whether
by course of conduct or otherwise, except by an instrument in writing specifically designated as an amendment hereto, signed on
behalf of each Party.

 

Section
4.3           
Waiver. No failure or delay of any Party in exercising any right or remedy hereunder shall operate as a waiver
thereof. Any such waiver by a Party shall be valid only if set forth in writing by such Party.

 

Section
4.4           
Notices. All notices, requests, claims, consents, demands and other communications under this Agreement shall
be in writing and shall be deemed given if delivered personally, sent by overnight courier (providing proof of delivery) to the
Parties or sent by facsimile or e-mail of a pdf attachment (providing confirmation of transmission) at the following addresses
or facsimile numbers (or at such other address or facsimile number for a Party as shall be specified by like notice):

 

    4

     

    

 

		(a)	if to Advisor or, prior to Closing, a Company
Party, to:

 

ZAIS REIT Management, LLC

c/o ZAIS Group, LLC

Two Bridge Avenue, Suite 322

Red Bank, NJ 07701

Attn: General Counsel

Fax: (732) 978-7507

 

		(b)	if to Sutherland or, following Closing, a Company Party,
to:

 

Sutherland Asset Management Corporation

1140 Avenue of the Americas, 7th Floor

New York, NY 10036

Attn: Kenneth Nick

email: knick@waterfallam.com

Fax: (212) 843-8909

Telephone: (212) 257-4606

 

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

 

Sidley Austin LLP

787 Seventh Avenue

New York, NY 10019

Attention: Scott Freeman

Facsimile: (212) 839-5599

 

Section
4.5           
Entire Agreement. This Agreement and any other agreement among the Parties entered into simultaneous to this
Agreement (a) constitute the entire agreement and supersede all prior agreements and understandings, both written and oral, between
the Parties with respect to the subject matter of this Agreement and (b) are not intended to confer upon any Person other than
the Parties hereto any rights or remedies.

 

Section
4.6           
Governing Law; Venue.

 

(a)               
This Agreement, and all claims or causes of actions (whether at Law, in contract or in tort) that may be based upon,
arise out of or related to this Agreement or the negotiation, execution or performance of this Agreement, shall be governed by,
and construed in accordance with, the laws of the State of Maryland without giving effect to its conflicts of laws principles (whether
the State of Maryland or any other jurisdiction that would cause the application of the Laws of any jurisdiction other than the
State of Maryland).

 

    5

     

    

 

(b)              
All disputes arising out of or relating to this Agreement shall be heard and determined exclusively in any Maryland
state or federal court. Each of the Parties hereby irrevocably and unconditionally (i) submits to the exclusive jurisdiction of
any such Maryland state or federal court, for the purpose of any dispute arising out of or relating to this Agreement brought by
any Party, (ii) agrees not to commence any such dispute except in such courts, (iii) agrees that any claim in respect of any such
dispute may be heard and determined in any such Maryland state or federal court, (iv) waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the laying of venue of any such dispute, and (v) waives,
to the fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance of such dispute. Each of the Parties
agrees that a final judgment in any such dispute shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by Law. Each Party irrevocably consents to service of process in the manner provided for
notices in Section 4.4. Nothing in this Agreement will affect the right of any Party to serve process in any other manner
permitted by Law.

 

Section
4.7           
Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall
be assigned or delegated, in whole or in part, by operation of Law or otherwise by any of the Parties without the prior written
consent of the other Parties. This Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties
and their respective successors and assigns.

 

Section
4.8           
Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
under any present or future Law, or public policy, (a) such term or other provision shall be fully separable, (b) this Agreement
shall be construed and enforced as if such invalid, illegal or unenforceable provision had never comprised a part hereof, and (c)
all other conditions and provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable term or other provision or by its severance herefrom so long as the economic or legal substance of the
transactions contemplated by this Agreement is not affected in any manner materially adverse to any party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner
in order that transactions contemplated by this Agreement be consummated as originally contemplated to the fullest extent possible.

 

Section
4.9           
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and
all of which together shall be deemed one and the same agreement, and shall become effective when one or more counterparts have
been signed by each of the Parties and delivered (by telecopy, electronic delivery or otherwise) to the other Parties. Signatures
to this Agreement transmitted by facsimile transmission, by electronic mail in “portable document form” (“pdf”),
or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the
same effect as physical delivery of the paper document bearing the original signature.

 

    6

     

    

 

Section
4.10        Waiver
of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD
NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS
SECTION 4.10.

 

Section
4.11        Further
Assurances. The Parties undertake generally to execute all such agreements, documents and other instruments and to do all such
acts as are necessary to give full effect to, evidence and confirm the terms of this Agreement.

 

[The
remainder of this page is intentionally left blank.]

 

 

 

    7

     

    

 

IN WITNESS WHEREOF, the Parties hereto have
caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

	 	ZAIS REIT MANAGEMENT, LLC
	 	 
	 	 
	 	By:	/s/ Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title: President
	 	 	 
	 	 	 
	 	ZAIS FINANCIAL CORP.
	 	 
	 	 
	 	By:	/s/ Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title:  President and Chief Executive Officer
	 	 	 
	 	 	 
	 	ZAIS FINANCIAL PARTNERS, L.P.
	 	 
	 	By: ZAIS Financial Corp., its General Partner
	 	 
	 	 
	 	By:	/s/ Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title:  President and Chief Executive Officer
	 	 	 
	 	 	 
	 	ZAIS ASSET I, LLC
	 	 
	 	By: ZAIS Financial Partners, L.P., its Managing Member
	 	 
	 	By:  ZAIS Financial Corp., its General Partner
	 	 
	 	 
	 	By:	/s/ Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title:  President and Chief Executive Officer

 

 

 

    

[Signature Page to Termination Agreement]

     

    

 

 

	 	ZAIS ASSET II, LLC
	 	 
	 	By: ZAIS Financial Partners, L.P., its Managing Member
	 	 
	 	By:  ZAIS Financial Corp., its General Partner
	 	 
	 	 
	 	By: 	/s/ Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title:  President and Chief Executive Officer
	 	 	 
	 	 	 
	 	ZAIS ASSET III, LLC
	 	 
	 	By: ZAIS Financial Partners, L.P., its Managing Member
	 	 
	 	By:  ZAIS Financial Corp., its General Partner
	 	 
	 	 
	 	By: 	/s/ Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title:  President and Chief Executive Officer
	 	 	 
	 	 	 
	 	ZAIS ASSET IV, LLC
	 	 
	 	By: ZAIS Financial Partners, L.P., its Managing Member
	 	 
	 	By:  ZAIS Financial Corp., its General Partner
	 	 
	 	 
	 	By: 	/s/ Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title:  President and Chief Executive Officer

 

    [Signature Page to Termination Agreement]

     

    

 

	 	ZFC FUNDING, INC.
	 	 
	 	 
	 	By: 	/s/
    Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title: President and Chief Executive Officer
	 	 	 
	 	 	 
	 	ZFC TRUST
	 	 
	 	 
	 	By: 	/s/
    Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title:  Trustee
	 	 	 
	 	 	 
	 	ZFC TRUST TRS I, LLC
	 	 
	 	By:  ZFC Trust, its Managing Member
	 	 
	 	 
	 	By: 	/s/
    Michael Szymanski
	 	 	Name: Michael Szymanski
	 		Title:  Trustee

 

 

    [Signature Page to Termination Agreement]

     

    

 

	 	SUTHERLAND ASSET MANAGEMENT CORPORATION
	 	 
	 	 
	 	By:
	/s/ Frederick C. Herbst
	 		Name: Frederick C. Herbst
	 		Title:  Chief Financial Officer

 

 

 

    [Signature Page to Termination Agreement]

     

    

 Schedule
I

 

 

Advisor Wire Transfer Instructions

 

[to be delivered prior to Closing]Exhibit 4.1

AMPLIPHI
BIOSCIENCES CORPORATION

 

COMMON
STOCK ISSUANCE AGREEMENT

 

This
Common Stock Issuance Agreement (this “Agreement”) is made as of April 8, 2016, by and
among AmpliPhi Biosciences Corporation, a Washington corporation (the “Company”), and the persons and
entities listed on Exhibit A hereto (each, a “Holder”
and collectively, the “Holders”).

 

Recitals

 

Whereas,
the Holders have delivered to the Company the Automatic Conversion Election attached hereto
as Exhibit B, and as a result all shares of Series B Convertible Preferred Stock of the Company (“Series
B Preferred”) that were outstanding as of immediately prior to the delivery of the Automatic Conversion Election
were automatically converted (the “Automatic Conversion”) into shares of Common Stock of the Company
( “Common Stock”) pursuant to Section 4.4.4(b)(ii) of the Company’s Amended and Restated Articles
of Incorporation, as amended from time to time (the “Articles of Incorporation”);

 

Whereas,
as a result of the Automatic Conversion and pursuant to Section 4.4.4(d) of the Articles of Incorporation, each Holder is entitled
to receive, to the extent permitted by law, a cash payment in an amount equal to all dividends accrued and unpaid
on such Holder’s shares of Series B Preferred converted pursuant to the Automatic Conversion (each, a “Cash Payment”
and collectively, the “Cash Payments”); and

 

Whereas,
the Company and the Holders desire for the Company to issue Common Stock and provide certain other consideration to the Holders
as set forth herein and, in exchange, the Holders desire to waive their respective rights to receive the Cash Payments and to agree
to the waivers, covenants and other terms of this Agreement. 

 

Agreement

 

Now,
Therefore, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Holders, severally and not jointly, hereby agree as follows:

 

1.          Waiver
of Cash Dividends; Certain Accommodations Provided by Holders; Issuance of Common Stock; Amendment of Warrants. 

 

(a)          Acknowledgement.
Each Holder acknowledges that all shares of Series B Preferred previously held by such Holder have been converted
pursuant to the Automatic Conversion and are no longer outstanding. Each Holder further acknowledges that all rights with respect
to such shares of Series B Preferred terminated immediately upon the effectiveness of the Automatic Conversion Election (notwithstanding
any failure of such Holder to surrender any certificate(s) evidencing such Series B Preferred), other than the right of such Holder
to receive (i) the shares of Common Stock set forth opposite such Holder’s name on Annex 1 of the Automatic Conversion Election
(the “Conversion Shares”) and (ii) to the extent permitted by law, a Cash Payment pursuant
to Section 4.4.4(d) of the Articles of Incorporation. Each Holder hereby waives and releases the Company from any and all
rights such Holder may have or may become entitled to in the future to claim or to receive any additional shares of Common Stock
or other additional consideration in connection with the conversion of the Series B Preferred pursuant to the Automatic Conversion,
and agrees that under no circumstances will the Company be liable to such Holder for any additional shares of Common Stock or other
additional consideration in connection with such conversion of the Series B Preferred.

 

    	1.

     

    

 

(b)          Waiver
of Cash Payments. Subject to the terms and conditions of this Agreement, each Holder hereby waives any and all rights
such Holder has to receive the Cash Payment to which such Holder is otherwise entitled to receive pursuant to Section 4.4.4(d)
of the Articles of Incorporation

 

(c)          Waiver
of Registration Rights.  Each Holder hereby waives any Notice Rights and Registration Rights (each as defined below) to which
such Holder is entitled (i) in connection with the filing by the Company on or before December 31, 2016 of a registration statement
on Form S-1 or Form S-3 relating to any proposed offer and sale by the Company of its securities, and any amendment to the same,
and (ii) in connection with the first underwritten public offering of Common Stock by the Company that is consummated following
the Closing Date (as defined below) and in which the aggregate gross proceeds to the Company are not less than $7,000,000 (the
“Offering”), and the filing of any registration statement in connection therewith, and any amendment
to the same. For the purposes of this Section 1(c), “Notice Rights” means any rights of the Holder to
receive written notice from the Company pursuant to Section 7.3 of the Subscription Agreement (as defined below). For the purposes
of this Section 1(c), “Registration Rights” means any rights of the Holder pursuant to Section 7.3 of
the Subscription Agreement to include certain shares of Common Stock on certain registration statements under the Securities Act
of 1933, as amended (the “Act”).

 

(d)          Issuance
of Common Stock. Subject to the terms and conditions of this Agreement, at the Closing (as defined below), the Company
shall issue to each Holder the number of shares of Common Stock set forth opposite such Holder’s name on Exhibit
A hereto (the “Shares”). For clarity, the Shares are not inclusive of the Conversion Shares.

 

(e)          Amendment
to Warrants. Contingent and effective upon the Closing, each then outstanding warrant to purchase shares of Common Stock
held by a Holder who is a party to this Agreement and issued pursuant to that certain Subscription Agreement, dated June 25, 2013,
by and among the Company and the purchasers listed on Exhibit A thereto (the “Subscription Agreement”)
shall be amended such that (i) the Purchase Price (as defined in such warrant) per share of Common Stock exercisable thereunder
shall be changed to $4.05 (subject to future adjustment pursuant to the terms of such warrant) and (ii) the Expiration Date (as
defined in such warrant) will be March 31, 2021.

 

    	2.

     

    

 

2.          Closing. 
The closing of the transactions contemplated by this Agreement (the “Closing”) will
take place remotely via the exchange of documents and signatures on the date of this Agreement (the “Closing
Date”), or at such other time and place as shall be agreed upon by the Company and each of the Holders. Promptly
following the Closing, each Holder will surrender the certificate or certificates representing the shares of Series B Preferred,
duly endorsed, to the office of the Company or its transfer agent (or, if such Holder notifies the Company that any such certificate
has been lost, stolen or destroyed, such Holder agrees to execute an agreement to indemnify the Company from any loss incurred
by it in connection with any such certificate). Thereafter, the Company will instruct its transfer agent to deliver to such
Holder the Shares set forth opposite such Holder’s name on Exhibit
A hereto either through electronic book entry credit or the issuance of a physical stock certificate as specified for
such Holder pursuant to the Delivery Instructions on such Holder’s signature page to this Agreement. Notwithstanding anything
to the contrary set forth herein, the issuance of the Shares pursuant to this Section 2 shall occur on the Closing Date (and, for
purposes of clarity, to the extent the Closing Date occurs on the same date as the Automatic Conversion, the issuance of the Shares
shall occur following the effectiveness of the Automatic Conversion).

 

3.          Right
to Receive Additional Shares Upon Certain Dilutive Financings.

 

(a)          If,
at any time or from time to time after the Closing Date and prior to the Price Protection Expiration Date (defined below), the
Company sells and issues shares of its Common Stock or Preferred Stock to investors in an Equity Financing (as defined below) at
a price per share that is less than the Conversion Price (as defined below) (a “Diluting Issuance”),
then, in such event, unless the Holders of at least ninety-five percent (95%) of the then-outstanding Shares issued to the Holders
at the Closing (the “Requisite Holders”) affirmatively elect in writing to waive the treatment of such
Diluting Issuance as a Diluting Issuance within 10 business days after the Diluting Issuance, the Company shall issue to each Holder
at a closing (each, an “Additional Closing”) within 15 business days after the date of such Diluting
Issuance an additional number of shares of Common Stock (which shares will be deemed “Shares” for all purposes under
this Agreement as of, and will be deemed issued upon, the date of such issuance) equal to the lesser of (i) (A) the product, rounded
down to the nearest whole share, of (x) such Holder’s Price Protection Share Number (as defined below) multiplied by
(y) a fraction, the numerator of which is the Conversion Price and the denominator of which is the Effective Price (as defined
below) less (B) such Holder’s Price Protection Share Number and all additional Shares issued previously to such Holder pursuant
to this Section 3 (for clarity, in the event the subtraction of any such previously issued shares would result in a negative number,
then no shares will be issued in connection with such Diluting Issuance), and (ii) the product, rounded down to the nearest whole
share, of (x) the applicable NYSE Maximum Number (as defined below) multiplied by (y) a fraction, the numerator of which
is the number of Shares issued to such Holder at the Closing and the denominator of which is the aggregate number of Shares issued
to all Holders at the Closing. For the avoidance of doubt, in no event will the Company be obligated to issue, nor will it issue,
any shares of Common Stock pursuant to any Diluting Issuance in excess of the applicable NYSE Maximum Number. The Company agrees
to use its commercially reasonable efforts to obtain the approval of the Company’s shareholders at the Company’s 2016
Annual Meeting of Shareholders of the Company’s issuance to the Holders pursuant to this Section 3 of up to, in the aggregate,
the aggregate number of Conversion Shares issued to the Holders pursuant to the Automatic Conversion (as set forth on Schedule
1 to the Automatic Conversion Election), and such commercially reasonable efforts will include (I) a recommendation by the Company’s
board of directors that the Company’s shareholders approve such proposal and (II) the Company’s retention of a third-party
proxy solicitation firm, on commercially reasonable and market terms, to assist the Company in obtaining approval of the Company’s
shareholders of such proposal, the related costs and expenses for which shall be borne by the Company. If the Company’s shareholders
fail to approve such proposal at the 2016 Annual Meeting of Shareholders, then, in such event, in lieu of issuing any shares of
Common Stock that would have been required to be issued to a Holder pursuant to the operation of this Section 3 but for the limitations
imposed by the NYSE Maximum Number (the “Excess Shares”), the Company will, to the extent legally permitted,
pay to such Holder (1) for the first Diluting Issuance (other than any Diluting Issuance for which treatment as such is waived
by the Requisite Holders) a cash amount per Excess Share equal to the difference between the Conversion Price and the Effective
Price for such Diluting Issuance and (2) for each subsequent Diluting Issuance (other than any Diluting Issuance for which treatment
as such is waived by the Requisite Holders), a cash amount per Excess Share equal to the difference between the Conversion Price
and the Effective Price for such Diluting Issuance, less any cash payment per share previously made to such Holder pursuant to
this Section 3 (for clarity, in the event the subtraction of any such previously made per share cash payment would result in a
negative number, then no cash payment will be due by the Company in connection with such Diluting Issuance).

 

    	3.

     

    

 

(b)          For
purposes of this Section 3, the following definitions shall apply:

 

(i)          “Conversion
Price” means $4.05, subject to proportionate adjustment for any stock splits or combinations, dividends,
distributions, reclassifications, exchanges, substitutions or similar events that are effectuated after the Closing Date.

 

(ii)         “Effective
Price” means the lowest price per share paid by investors purchasing shares of Common Stock or Preferred Stock of
the Company in the Equity Financing in which the Diluting Issuance occurs.

 

(iii)        “Equity
Financing” means a bona fide equity financing transaction for the principal purpose of raising capital in which investors
purchase shares of Common Stock or Preferred Stock of the Company. For clarity, the issuance of Common Stock and/or Preferred Stock
in connection with any of the following transactions or arrangements will not constitute an Equity Financing: (1) a merger, consolidation,
acquisition, strategic alliance or similar business combination involving the Company; (2) any equipment loan or leasing arrangement,
real property leasing arrangement or debt financing from a bank or similar financial or lending institution; (3) strategic transactions
(e.g., joint ventures, manufacturing, marketing, distribution, technology transfer or development arrangements) involving the Company
and any other entity approved by the Company’s Board of Directors; or (4) equity incentive arrangements with employees or
directors of or consultants to the Company.

 

(iv)        “NYSE
Limited Shares” means any shares of Common Stock (or securities convertible into Common Stock) sold by the Company
or its officers, directors or principal shareholders in a transaction that is not a public offering (under the rules of the NYSE
MKT or NYSE MKT staff interpretations thereof) at a price less than the greater of the Company’s book value per share or
the market value per share (i.e., the most recently reported closing price of the Common Stock reported on the NYSE MKT, or other
exchange on which the Common Stock is then listed, prior to entering into the definitive agreement to issue such securities).

 

    	4.

     

    

 

(v)         “NYSE
Maximum Number” means with respect to any Diluting Issuance (i) the maximum number of shares of Common Stock issuable
to the Holders pursuant to this Section 3 in connection with such Diluting Issuance without exceeding 19.99% of the outstanding
shares of Common Stock as of immediately prior to such Diluting Issuance, reduced by any other NYSE Limited Shares issued or potentially
issuable in connection with such Diluting Issuance or (ii) such greater number of shares as may be approved for issuance by the
requisite shareholders of the Company, in accordance with applicable NYSE MKT rules and regulations, pursuant to the provisions
of this Section 3 without further shareholder approval less the number of shares of Common Stock issued from time to time to the
Holders pursuant to this Section 3.

 

(vi)        “Price
Protection Expiration Date” means the earlier of (a) the date on which the Company has raised at least $10,000,000
in gross proceeds from the sale of its Common Stock and/or Preferred Stock in a bona fide financing or financings conducted after
the Closing Date and (b) June 30, 2018.

 

(vii)       “Price
Protection Share Number” for each Holder is equal to the number of Conversion Shares issued to such Holder pursuant
to the Automatic Conversion (as set forth opposite such Holder’s name on Schedule 1 of the Automatic Conversion Election).
The Price Protection Share Number will be subject to proportionate adjustment for any stock splits or combinations, dividends,
distributions, reclassifications, exchanges, substitutions or similar events that are effectuated after the Closing Date.

 

4.          Legends.

 

(a)          All
book entry credits or certificates representing the Shares shall have endorsed thereon legends in substantially the following form
(and a stop-transfer order may be placed against transfer of the certificates for such Shares):

 

“THE SHARES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES. THE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SHARES UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

(b)          Any
Holder who is not an affiliate of the Company may request that the Company remove, and the Company agrees to authorize the removal
of, any legend from the Shares held by Holder (i) following any sale of such Shares pursuant to Rule 144 under the Act (“Rule
144”), or (ii) if such Shares are eligible for sale under Rule 144 following the expiration of the one-year holding
requirement under subparagraphs (b)(1)(i) and (d) thereof. Following the time a legend is no longer required for the Shares under
this Section 4(b), the Company will, no later than three business days following the delivery by a Holder to the Company or the
Company’s transfer agent of a legended certificate representing such securities, deliver or cause to be delivered to such
Holder a certificate or book entry credit representing such securities that is free from all restrictive and other legends.

 

    	5.

     

    

 

5.          Representations
and Warranties of Holders. 

 

Each Holder, severally
and not jointly, hereby represents and warrants to the Company on the date hereof, at the Closing and at each Additional Closing
as follows:

 

(a)          Requisite
Power and Authority. Such Holder has the requisite power and authority to enter into this Agreement and to consummate
the transactions contemplated hereby. Such Holder has taken all necessary action to authorize the execution, delivery and performance
of this Agreement. Upon the execution and delivery of this Agreement, this Agreement shall constitute a valid and binding obligation
of such Holder enforceable in accordance with its terms, except that such enforcement may be subject to (i) bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’
rights generally, and (ii) general principles of equity, whether such enforceability is considered in a proceeding at law
or in equity (the “Enforceability Exceptions”). 

 

(b)          Investment
Representations. Such Holder is an “accredited investor” as such term is defined in Rule 501 of Regulation D under
the Act. Such Holder is acquiring the Shares for its own account and not with a present view
toward the public sale or distribution thereof and has no intention of selling or distributing any of such Shares or any arrangement
or understanding with any other persons or entities regarding the sale or distribution of such Shares except as would not result
in a violation of the Act. Such Holder will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of
(or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Shares except pursuant to and in accordance
with the Act. 

 

(c)          Information.
Such Holder has been furnished with all relevant materials relating to the business, finances
and operations of the Company necessary to make an investment decision, and materials relating to the acquisition of the Shares,
that have been requested by such Holder, including, without limitation, all reports, schedules, forms, statements and other documents
filed by it with the Securities and Exchange Commission (“SEC”), including all exhibits thereto, financial
statements and schedules therein and other information incorporated therein, as applicable (the “SEC Filings”).
Such Holder has had the opportunity to review the SEC Filings and has been afforded the opportunity to ask questions of the Company.
Neither such inquiries nor any other investigation conducted by or on behalf of such Holder or its representatives or counsel shall
modify, amend or affect such Holder’s right to rely on the truth, accuracy and completeness of the SEC Filings. Such
Holder acknowledges that the Company makes no representation to such Holder in connection with any of the transactions contemplated
by this Agreement other than as specifically stated in this Agreement.

 

    	6.

     

    

 

(d)          Acknowledgement
of Risk. 

 

(i)          Such
Holder acknowledges and understands that the acquisition of the Shares involves a significant degree of risk, including, without
limitation, (i) the Company remains a development stage business with limited operating history and requires substantial additional
funding; (ii) an acquisition of the Company’s shares is speculative, and only Holders who can afford the loss of their
entire value of their consideration should consider acquiring such Shares; (iii) such Holder may not be able to liquidate the Shares;
(iv) transferability of the Shares is extremely limited; (v) in the event of a disposition of the Shares, such Holder could
sustain the loss of the entire value of its consideration; and (vi) the Company does not anticipate the payment of dividends
in the foreseeable future. Such risks are more fully set forth in the SEC Filings.

 

(ii)         Such
Holder is able to bear the economic risk of holding the Shares for an indefinite period, and has knowledge and experience in financial
and business matters such that it is capable of evaluating the risks of the acquiring the Shares.

 

(iii)        Such
Holder has, in connection with such Holder’s decision to acquire the Shares, not relied upon any representations or other
information (whether oral or written) other than as set forth in the information disclosed in the SEC Filings, and such Holder
has, with respect to all matters relating to this Agreement and the acquisition of the Shares, relied solely upon the advice of
such Holder’s own counsel and has not relied upon or consulted any counsel to the Company. 

 

(iv)        Such
Holder specifically understands and acknowledges that, on the date of this Agreement, the Closing Date and the date of any Additional
Closing, the Company may have in its possession non-public information that could be material to the market price of the Common
Stock that it has not disclosed to such Holder. Such Holder hereby represents and warrants that, in entering into this Agreement
and consummating the transactions contemplated hereby, it does not require the disclosure of such non-public information to it
by the Company in order to make an investment in the Common Stock, and hereby waives all present or future claims arising out of
or relating to the Company’s failure to disclose such non-public information to such Holder. Such Holder also specifically
acknowledges that the Company would not enter into this Agreement or any related documents in the absence of such Holder’s
representations and acknowledgments set out in this Agreement, and that this Agreement, including such representations and acknowledgments,
are a fundamental inducement to the Company, and a substantial portion of the consideration provided by such Holder, in this transaction,
and that the Company would not enter into this transaction but for this inducement.

 

(e)          Government
Review. Such Holder understands that no United States federal or state agency or any other government or governmental
agency has passed upon or made any recommendation or endorsement of the Shares or an acquisition thereof. 

 

(f)          Transfer
or Resale. 

 

(i)          Such
Holder understands that the Shares have not been and are not being registered under the Act or any applicable state securities
laws and, consequently, such Holder may have to bear the risk of owning the Shares for an indefinite period of time because the
Shares may not be transferred unless (i) the resale of the Shares is registered pursuant to an effective registration statement
under the Act; (ii) such Holder has delivered to the Company an opinion of counsel (in form, substance and scope customary
for opinions of counsel in comparable transactions) to the effect that the Shares to be sold or transferred may be sold or transferred
pursuant to an exemption from such registration; or (iii) the Shares are sold or transferred pursuant to Rule 144, or any
successor rule. 

 

    	7.

     

    

 

(ii)         Such
Holder understands that any sale of the Shares made in reliance on Rule 144 may be made only in accordance with the terms of Rule
144 and, if Rule 144 is not applicable, any resale of the Shares under circumstances in which the seller (or the person or entity
through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Act) may require compliance with
some other exemption under the Act or the rules and regulations of the SEC thereunder. 

 

(iii)        Such
Holder acknowledges that neither the Company nor any other person or entity is under any obligation to register the resale of the
Shares under the Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

(g)          Residency.
Unless such Holder has otherwise notified the Company in writing, such Holder is a resident of the jurisdiction set
forth immediately below such Holder’s name on Exhibit A
hereto.

 

(h)          Broker’s
Fees. No person or entity will have, as a result of the transactions contemplated by this Agreement, any valid right,
interest or claim against or upon the Company or any Holder for any commission, fee or other compensation pursuant to any transaction
contemplated by this Agreement entered into by or on behalf of such Holder.

 

(i)          Insider
Information.  Such Holder hereby acknowledges and agrees that (i) such Holder
has been advised by the Company that it may have in its possession information that may be material (as such term is used in Sections
11 and 12 of the Act, and in Rule 10b-5 of the Securities Exchange Act of 1934, as amended), non-public information relating to
the Company and the Common Stock as of the date of this Agreement and may continue to have in its possession such information prior
to the filing of the Form 8-K (as defined below) (such material non-public information, if any, being referred to as the “Material
Non-Public Information”); (ii) prior to the filing of the Form 8-K, while such Holder is in possession of Material
Non-Public Information, such Holder is prohibited from purchasing or selling, directly or indirectly, any securities of the Company
(including entering into hedge transactions involving such securities), or from communicating such Material Non-Public Information
to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell any
securities of the Company; (iii) such Holder has not used and will not use nor permit any third party to use, and has used and
will use its reasonable best efforts to assure that no representative, agent or affiliate of such Holder has used or will use or
permit any third party to use, any of the Material Non-Public Information of the Company provided in connection with the transactions
contemplated by this Agreement in contravention of U.S. securities laws; (iv) such Holder has used and will use such Material Non-Public
Information only in connection with Holder’s evaluation of the transactions contemplated by this Agreement and not for any
other purpose or in any manner that would constitute a violation of any laws or regulations; (v) all such Material Non-Public Information
has been and will continue to be held in confidence by such Holder and its officers, directors, partners, employees, agents and
financial and legal advisors and has not been and shall not be disclosed to any other person without the Company’s prior
written consent or except as may be required by law, regulation or legal process, until such Material Non-Public Information becomes
publicly available upon the filing of the Form 8-K; and (vi) such Holder will be liable and responsible for any breach of this
Section 5(i) by such Holder or any of its officers, directors, partners, employees, agents and financial and legal advisors and
for any other action or conduct on the part of such representatives that is inconsistent with any provision of this Section 5(i).

 

    	8.

     

    

 

6.          Covenants,
Representations and Warranties of the Company.

 

(a)          Power
and Authorization. The Company is duly incorporated, validly existing and in good standing under the laws of its state of incorporation,
and has the power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate
the issuance of the Shares contemplated hereby.

 

(b)          Valid
and Enforceable Agreement; No Violations. This Agreement has been duly executed and delivered by the Company and constitutes
a legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms, except that such enforcement
may be subject to the Enforceability Exceptions. Subject to the terms and conditions of this Agreement, the issuance of the Shares
at the Closing and any Additional Closing will not violate, conflict with or result in a breach of or default under (i) the
Articles of Incorporation or the Company’s bylaws, (ii) any agreement or instrument to which the Company is a party
or by which the Company or any of its assets are bound, or (iii) any laws, regulations or governmental or judicial decrees,
injunctions or orders applicable to the Company.

 

(c)          Valid
Issuance of the Common Stock. The Shares to be issued to the Holders at the Closing and any Additional Closing (a) are
duly authorized and, upon their issuance at the Closing or such Additional Closing, will be validly issued, fully paid and non-assessable,
(b) will not, at the Closing or Additional Closing at which such Shares are issued, be subject to any preemptive, participation,
rights of first refusal or other similar rights, and (c) assuming the accuracy of each Holder’s representations and
warranties hereunder, will be issued in a private placement transaction exempt from the registration requirements of the Act pursuant
to Section 4(a)(2) of the Act.

 

(d)          Listing.
Upon issuance the Shares issued hereunder shall be listed on each national securities exchange upon which the Common Stock
is then listed.

 

(e)          Disclosure.
 The Company shall file a Current Report on Form 8-K (the “Form 8-K”) with the SEC within
four business days following the date of this Agreement describing the terms of the transactions contemplated hereby. 

 

7.          Miscellaneous.

 

(a)          Fees
and Expenses. The Company and each Holder 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.

 

    	9.

     

    

 

(b)          Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively
given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed email, telex or facsimile if
sent during normal business hours of the recipient, and if sent at a time other than the normal business hours of the recipient,
on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (d) one business day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. The addresses for such communications are:

 

	If to the Company:	 	AmpliPhi Biosciences Corporation
	 	 	3579 Valley Centre Drive
	 	 	San Diego, CA 92130
	 	 	Attn: Chief Financial Officer
	 	 	 
	If to a Holder:	 	To the address set forth immediately below such Holder’s name on Exhibit A
hereto.

 

Each party shall provide
10 days’ advance written notice to the other parties of any change in its address.

 

(c)          Successors
and Assigns. This Agreement is binding upon and inures to the benefit of the parties
and their successors and assigns. The Company will not assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Holders and no Holder may
assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company. This Agreement
will terminate upon the consummation of a merger, consolidation or similar transaction involving (directly or indirectly) the Company
if, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately
prior thereto do not own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the
combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) more
than 50% of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar
transaction, in each case in substantially the same proportions as their ownership of the outstanding voting securities of the
Company immediately prior to such transaction.

 

(d)          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard
to principles of conflicts of laws.

 

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

 

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

 

    	10.

     

    

 

(g)          Entire
Agreement; Amendment. This Agreement (including all schedules and exhibits hereto) constitutes
the entire agreement among the parties hereto with respect to the subject matter hereof. There are no restrictions, promises, warranties
or undertakings, other than those set forth or referred to herein or therein. Except as otherwise specified herein, no provision
of this Agreement may be waived or amended other than by an instrument in writing signed by the party to be charged with enforcement.
Any amendment or waiver by a party effected in accordance with this Section 7(g) shall be binding upon such party, including
with respect to any Shares acquired under this Agreement at the time outstanding and held by such party and each future holder
of all such Shares.

 

(h)          Headings. 
The headings of this Agreement are for convenience of reference only, are not part of this Agreement and do not affect its interpretation.

 

(i)          Severability.
If any provision of this Agreement is invalid or unenforceable under any applicable statute
or rule of law, then such provision will be deemed modified in order to conform with such statute or rule of law. Any provision
hereof that may prove invalid or unenforceable under any law will not affect the validity or enforceability of any other provision
hereof.

 

(j)          Counterparts.
This Agreement may be executed in counterparts, all of which are considered one and the same
agreement and will become effective when counterparts have been signed by each party and delivered to the other parties. This Agreement,
once executed by a party, may be delivered to the other parties hereto by facsimile or e-mail transmission of a copy of this Agreement
bearing the signature of the party so delivering this Agreement.

 

[Signature
Pages Follow] 

 

    	11.

     

    

 

In
Witness Whereof, the parties hereto have executed this Common Stock Issuance Agreement as of the day and year first
above written.

 

	 	Company:
	 	 
	 	AmpliPhi Biosciences Corporation
	 	 
	 	By:	/s/ Michael Scott Salka
	 	 	 
	 	Name:	 Michael Scott Salka
	 	 
	 	Title:	Chief Executive Officer

 

     

     

    

 

In
Witness Whereof, the parties hereto have executed this Common Stock Issuance Agreement as of the day and year first
above written.

 

	 	Holder:
	 	 
	 	Pendinas Limited
	 	 
	 	By:	/s/ Gwynn R. Williams
	 	 
	 	Name:	Gwynn R. Wiliiams
	 	 
	 	Title:	Chairman

 

Delivery Instructions

 

Please issue the Shares in the following name
and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

 

Please reflect the issuance of the Shares in the
following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit 	 ̈

 

	Authorization:	 	 	 
	 	 	By:	 	 	 
	 	 	Title:	 	 	 
	 	 	 
	Dated:	 	 	 

 

     

     

    

 

In
Witness Whereof, the parties hereto have executed this Common Stock Issuance Agreement as of the day and year first
above written.

 

Trustee limitation of liability

The parties acknowledge and agree that:

		(a)	the Trustee enters into this document in the capacity as trustee of the Trust and in no other capacity;

		(b)	except in the case of any liability of the Trustee under or in respect of this document resulting
from the Trustee's fraud, negligence or wilful default, the recourse for any person to the Trustee in respect of any obligations
and liabilities of the Trustee under or in respect of this document is limited to the extent to which the Trustee is entitled to
be and is in fact indemnified from the Assets of the Trust. This limitation of the Trustee’s liability applies despite any
other provisions of this document and extends to all liabilities and obligations of the Trustee in any way connected with any representation,
warranty, past and future conduct, omission, agreement or transaction related to this document; and

		(c)	if any party (other than the Trustee) does not recover the full amount of any money owing to it arising
from non-performance by the Trustee of any of its obligations, or non-payment by the Trustee of any of its liabilities, under or
in respect of this document by enforcing the rights referred to in clause 1.1(b) above that party may not (except in the case of
fraud, negligence or wilful default by the Trustee) seek to recover the shortfall by:

		(i)	bringing proceedings against the Trustee in its personal capacity;

		(ii)	seeking to appoint a liquidator, an administrator, a receiver or any similar person to the Trustee
(except in relation to the Assets of the Trust); or

		(iii)	applying to have the Trustee wound up.

 

	 	Holder:
	 	 
	 	One Funds Management Limited ATF Asia

 Pacific Healthcare Fund II
	 	 
	 	By:	/s/ Frank John Tearle
	 	 
	 	Name:	Frank John Tearle
	 	 
	 	Title:	Director

 

Delivery Instructions

 

Please issue the Shares in the following name
and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

  

Please reflect the issuance of the Shares in the
following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit	 ̈

 

	Authorization:	 	 	 
	 	 	By:	 	 	 
	 	 	Title:	 	 	 
	 	 	 
	Dated:	 	 	 

 

     

     

    

 

In
Witness Whereof, the parties hereto have executed this Common Stock Issuance Agreement as of the day and year first
above written.

 

	 	Holder:
	 	 
	 	David S. Nagelberg 2003 Revocable

 Trust Dtd. 7/2/03
	 	 
	 	By:	/s/ David S. Nagelberg
	 	 
	 	Name:	David S. Nagelberg
	 	 
	 	Title:	Trustee

 

Delivery Instructions

 

Please issue the Shares in the following name
and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

   

Please reflect the issuance of the Shares in the
following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

     

     

    

 

In
Witness Whereof, the parties hereto have executed this Common Stock Issuance Agreement as of the day and year first
above written.

 

	 	Holder:
	 	 
	 	Delphi Derivatives
	 	 
	 	By:	/s/ Mark William
	 	 
	 	Name:	Mark William
	 	 
	 	Title:	Managing Director

 

Delivery Instructions

 

Please issue the Shares in the following name
and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

   

Please reflect the issuance of the Shares in the
following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

     

     

    

 

In
Witness Whereof, the parties hereto have executed this Common Stock Issuance Agreement as of the day and year first
above written.

 

	 	Holder:
	 	 
	 	Penelope Langran
	 	 
	 	Signed :	/s/ Penelope Langran

 

Delivery Instructions

 

Please issue the Shares in the following name
and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

   

Please reflect the issuance of the Shares in the
following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

     

     

    

 

In
Witness Whereof, the parties hereto have executed this Common Stock Issuance Agreement as of the day and year first
above written.

 

	 	Holder:
	 	 
	 	Isabelle Harper
	 	 
	 	Signed:  	/s/ Isabelle Harper

 

Delivery Instructions

 

Please issue the Shares in the following name
and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

  

Please reflect the issuance of the Shares in the
following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

     

     

    

 

Exhibit A

 

	Name
    And Address	 	Shares	 
	Pendinas Limited	 	 	584,556	 
	 	 	 	 	 
	One Funds Management Limited Atf Asia
    Pacific Healthcare Fund II	 	 	171,298	 
	 	 	 	 	 
	David S. Nagelberg 2003 Revocable Trust
    Dtd. 7/2/03	 	 	60,960	 
	 	 	 	 	 
	Delphi Derivatives	 	 	25,440	 
	 	 	 	 	 
	Penelope Langran	 	 	6,424	 
	 	 	 	 	 
	Isabelle Harper	 	 	4,787	 
	 	 	 	 	 
	Total:	 	 	853,465	 

 

     

     

    

 

Exhibit B

 

[Attached]

 

     

     

    

 

AUTOMATIC CONVERSION
ELECTION

 

Election to Effectuate Automatic Conversion
of All Shares of Series B Convertible Preferred Stock of AmpliPhi Biosciences Corporation 

 

To: AmpliPhi Biosciences
Corporation

 

The undersigned holders
(each a “Holder” and collectively, the “Holders”) of Series B Convertible Preferred
Stock (“Series B Preferred”) of AmpliPhi Biosciences Corporation, a Washington corporation (the “Company”),
constituting at least two-thirds of the currently outstanding shares of Series B Preferred,
hereby irrevocably elect to have all outstanding shares of Series B Preferred automatically
converted into fully paid and non-assessable shares of Common Stock of the Company (“Common Stock”) in
accordance with Section 4.4.4(b)(ii) of the Company’s Amended and Restated Articles of Incorporation, as amended from time
to time and in effect as of the date hereof (the “Articles of Incorporation”), effective immediately
(the “Automatic Conversion”). With respect to each undersigned Holder, the shares of Common Stock
issuable to such Holder pursuant to the Automatic Conversion (the “Conversion Shares”) shall be issued
in accordance with the instructions set forth on such Holder’s signature page hereto.

 

This
Automatic Conversion Election will be effective upon the Company’s receipt of signature pages hereto signed by the Holders
of at least two-thirds of the outstanding shares of Series B Preferred as of immediately prior to the effectiveness of this Automatic
Conversion Election. Each Holder acknowledges that all outstanding shares of Series B Preferred shall be converted automatically
and immediately pursuant to the Automatic Conversion upon the effectiveness of this Automatic Conversion Election, without any
further action by the Holders or any other holders of Series B Preferred and whether or not the certificates representing (or formerly
representing) shares of Series B Preferred are surrendered to the Company or its transfer agent.
Each Holder also acknowledges that all shares of Series B Preferred converted pursuant to the Automatic Conversion will
no longer be deemed to be outstanding and all rights with respect to such shares of Series B Preferred will immediately cease and
terminate other than the right of such Holder to receive (i) the number of Conversion Shares set forth opposite such Holder’s
name on Schedule 1 hereto and (ii) to the extent permitted by law, an accompanying cash payment in an amount equal to all dividends
accrued and unpaid on such Holder’s shares of Series B Preferred converted pursuant
to the Automatic Conversion.

 

Each Holder agrees to surrender
the certificate or certificates representing the shares of Series B Preferred held by such Holder as of immediately prior to the
Automatic Conversion, duly endorsed, to the office of the Company or its transfer agent (or, if such Holder notifies the Company
that such certificate or certificates have been lost, stolen or destroyed, such Holder agrees to execute an agreement to indemnify
the Company from any loss incurred by it in connection with any such certificate).

 

This
Automatic Conversion Election may be executed in counterparts, all of which will be considered one and the same instrument. Executed
signature pages to this Automatic Conversion Election delivered to the Company by facsimile, .PDF or other format constituting
a reliable reproduction thereof will be as effective as the delivery of the corresponding original executed signature pages. 

 

[Signature Pages Follow]

 

    	2

     

    

 

In
Witness Whereof, the undersigned Holder has executed this Automatic Conversion
Election as of the 8th day of April, 2016.

  

	 	Pendinas
Limited
	 	 	 
	 	By:	/s/ Gwynn R. Williams
	 	 
	 	Name:	Gwynn R. Wiliiams
	 	 
	 	Title:	Chairman

 

Delivery Instructions

 

Please issue the Conversion Shares in the following
name and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

  

Please reflect the issuance of the Conversion
Shares in the following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

	DTC Participant Number and Name (if electronic book entry transfer):	 

	Account Number (if electronic book entry transfer):	 

 

     

     

    

 

In
Witness Whereof, the undersigned Holder has executed this Automatic
Conversion Election as of the 8th day of April, 2016.

 

	 	One Funds Management Limited ATF Asia

 Pacific Healthcare Fund II
	 	 
	 	By:  	/s/ Frank John Tearle
	 	 
	 	Name: 	Frank John Tearle
	 	 
	 	Title: 	Director

 

Delivery Instructions

 

Please issue the Conversion Shares in the following
name and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

  

Please reflect the issuance of the Conversion
Shares in the following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

	DTC Participant Number and Name (if electronic book entry transfer):	 

	Account Number (if electronic book entry transfer):	 

 

     

     

    

 

In
Witness Whereof, the undersigned Holder has executed this Automatic
Conversion Election as of the 8th day of April, 2016.

 

	 	David S. Nagelberg 2003 Revocable

 Trust Dtd. 7/2/03
	 	 
	 	By:	/s/ David S. Nagelberg
	 	 
	 	Name:	David S. Nagelberg
	 	 
	 	Title:	Trustee

 

Delivery Instructions

 

Please issue the Conversion Shares in the following
name and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

  

Please reflect the issuance of the Conversion
Shares in the following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit 	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

	DTC Participant Number and Name (if electronic book entry transfer):	 

	Account Number (if electronic book entry transfer):	 

 

     

     

    

 

In
Witness Whereof, the undersigned Holder has executed this Automatic
Conversion Election as of the 8th day of April, 2016.

 

	 	Delphi Derivatives
	 	 
	 	By:	/s/ Mark William
	 	 
	 	Name:	Mark William
	 	 
	 	Title:	Managing Director

 

Delivery Instructions

 

Please issue the Conversion Shares in the following
name and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

  

Please reflect the issuance of the Conversion
Shares in the following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit 	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

	DTC Participant Number and Name (if electronic book entry transfer):	 

	Account Number (if electronic book entry transfer):	 

 

     

     

    

 

In
Witness Whereof, the undersigned Holder has executed this Automatic
Conversion Election as of the 8th day of April, 2016.

 

	 	Penelope Langran
	 	 
	 	Signed:	/s/ Penelope Langran

 

Delivery Instructions

 

Please issue the Conversion Shares in the following
name and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

   

Please reflect the issuance of the Conversion
Shares in the following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

	DTC Participant Number and Name (if electronic book entry transfer):	 

	Account Number (if electronic book entry transfer):	 

 

     

     

    

 

In
Witness Whereof, the undersigned Holder has executed this Automatic
Conversion Election as of the 8th day of April, 2016.

 

	 	Isabelle Harper
	 	 
	 	Signed:	/s/ Isabelle Harper

 

Delivery Instructions

 

Please issue the Conversion Shares in the following
name and to the following address:

 

	Name:	 	 

	Address:	 	 

	Facsimile Number:	 	 

	Email Address:	 	 

  

Please reflect the issuance of the Conversion
Shares in the following (check one):

 

	Common Stock Certificate	 ̈
	 	 
	Electronic Book Entry Credit	 ̈

 

	Authorization:	 	
	 
	 	 	By:	 	
	 
	 	 	Title:	 	
	 
	 	 	 
	Dated:	 	
	 

 

	DTC Participant Number and Name (if electronic book entry transfer):	 

	Account Number (if electronic book entry transfer):	 

 

     

     

    

 

SCHEDULE
1 

TO

AUTOMATIC CONVERSION ELECTION

 

	Name of Holder	 	Number of shares of 
 Series B Preferred

 Held	 	 	Number of 
 Conversion

 Shares	 
	Pendinas Limited	 	 	3,551,529	 	 	 	710,305	 
	 	 	 	 	 	 	 	 	 
	One Funds Management Limited ATF Asia Pacific Healthcare Fund II	 	 	1,040,753	 	 	 	208,150	 
	 	 	 	 	 	 	 	 	 
	David S. Nagelberg 2003 Revocable Trust Dtd. 7/2/03	 	 	370,321	 	 	 	74,064	 
	 	 	 	 	 	 	 	 	 
	Delphi Derivatives	 	 	154,564	 	 	 	30,912	 
	 	 	 	 	 	 	 	 	 
	Penelope Langran	 	 	39,026	 	 	 	7,805	 
	 	 	 	 	 	 	 	 	 
	Isabelle Harper	 	 	29,086	 	 	 	5,817

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]