Document:

Exhibit 4.2

 

FIRST SUPPLEMENTAL INDENTURE

 

between

 

CHICKEN SOUP FOR THE SOUL ENTERTAINMENT INC.

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

as Trustee

 

Dated as of July 17, 2020

 

 

FIRST SUPPLEMENTAL INDENTURE

 

THIS FIRST SUPPLEMENTAL INDENTURE (this
 “First Supplemental Indenture”), dated as of July 17, 2020, is between Chicken Soup for the Soul Entertainment Inc.,
a Delaware corporation (the “Company”), and U.S. Bank National Association, as trustee (the “Trustee”).
All capitalized terms used herein shall have the meaning set forth in the Base Indenture (as defined below).

 

RECITALS OF THE COMPANY

 

The Company and the Trustee executed and
delivered an Indenture, dated as of July 17, 2020 (the “Base Indenture” and, as supplemented by this First Supplemental
Indenture, the “Indenture”), to provide for the issuance by the Company from time to time of the Company’s unsecured
debentures, notes or other evidences of indebtedness (the “Securities”), to be issued in one or more series as provided
in the Indenture.

 

The Company desires to issue and sell up
to $21,000,000 aggregate principal amount (or up to $24,150,000 aggregate principal amount if the underwriters’ option to
purchase additional Securities is exercised in full) of the Company’s 9.50% Notes due July 31, 2025 (the “Notes”).

 

Sections 901(4) and 901(6) of
the Base Indenture provide that without the consent of Holders of the Securities of any series issued under the Indenture, the
Company, when authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental to the Base Indenture to (i) change or eliminate any of the provisions of the Base Indenture
when there is no Security Outstanding of any series created prior to the execution of the supplemental indenture that is entitled
to the benefit of such provision and (ii) establish the form or terms of Securities of any series as permitted by Section 201
and Section 301 of the Base Indenture.

 

The Company desires to establish the form
and terms of the Notes and to modify, alter, supplement and change certain provisions of the Base Indenture for the benefit of
the Holders of the Notes (except as may be provided in a future supplemental indenture to the Base Indenture (“Future Supplemental
Indenture”).

 

The Company has duly authorized the execution
and delivery of this First Supplemental Indenture to provide for the issuance of the Notes and all acts and things necessary to
make this First Supplemental Indenture a valid, binding, and legal obligation of the Company and to constitute a valid agreement
of the Company, in accordance with its terms, have been done and performed.

 

    	 	 	

     

    

 

NOW, THEREFORE, for and in consideration
of the premises and the purchase of the Notes by the Holders thereof, it is mutually agreed, for the equal and proportionate benefit
of all Holders of the Notes, as follows:

 

ARTICLE I.

TERMS OF THE NOTES

 

Section 1.01.      Terms
of the Notes. The following terms relating to the Notes are hereby established:

 

(a)       The
Notes shall constitute a series of Senior Securities having the title “9.50% Notes due July 31, 2025.” The Notes
shall bear a CUSIP number of 16842Q 308 and an ISIN of US16842Q3083.

 

(b)       (b) The
aggregate principal amount of the Notes that may be initially authenticated and delivered under the Indenture (except for Notes
authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections
304, 305, 306, 906, 1107 or 1305 of the Base Indenture, and except for any Securities that, pursuant to Section 303 of the
Base Indenture, are deemed never to have been authenticated and delivered under the Indenture) shall be up to $21,000,000 (or up
to $24,150,000 aggregate principal amount if the underwriters’ option to purchase additional Securities is exercised in full).
Under a Board Resolution, Officers’ Certificate pursuant to Board Resolutions or an indenture supplement, the Company may
from time to time, without the consent of the Holders of Notes, issue additional Notes (in any such case “Additional Notes”)
having the same ranking and the same interest rate, maturity and other terms as the Notes. Any Additional Notes and the existing
Notes will constitute a single series under the Indenture and all references to the relevant Notes herein shall include the Additional
Notes unless the context otherwise requires.

 

(c)       The
entire outstanding principal of the Notes shall be payable on July 31, 2025, unless earlier redeemed or repurchased in accordance
with the provisions of the Indenture.

 

(d)       The
rate at which the Notes shall bear interest shall be 9.50% per annum. The Interest Payment Dates for the Notes shall be March 31,
June 30, September 30 and December 31 of each year, commencing September 30, 2020 (if an Interest Payment Date
falls on a day that is not a Business Day, then the applicable interest payment will be made on the next succeeding Business Day
and no additional interest will accrue as a result of such delayed payment). The initial interest period will be the period from
and including July 17, 2020, to, but excluding, September 30, 2020, and the subsequent interest periods will be the periods
from and including an Interest Payment Date to, but excluding, the next Interest Payment Date or the Stated Maturity, as the case
may be; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid to the Person
in whose name the Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be March 15, June 15, September 15, or December 15 (whether or not a Business
Day), as the case may be, immediately preceding such Interest Payment Date. Payment of principal of (and premium, if any, on) and
any such interest on the Notes will be made at the office of the Trustee located at 111 Fillmore Avenue, St. Paul, MN 55107, Attention:
Bondholder Communication (Chicken Soup for the Soul Entertainment Inc., 9.50% Notes Due July 31, 2025) or at such other address
as designated by the Trustee, in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts; provided, however, that at the option of the Company payment of interest may
be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; provided,
further, however, that so long as the Notes are registered to Cede & Co., such payment will be made by wire transfer
in accordance with the procedures established by The Depository Trust Company and the Trustee. Interest on the Notes will be computed
on the basis of a 360-day year of twelve 30-day months.

 

(e)       The
Notes shall be initially issuable in global form (each such Note, a “Global Note”). The Global Notes and the Trustee’s
certificate of authentication thereon shall be substantially in the form of Exhibit A to this First Supplemental
Indenture. Each Global Note shall represent the outstanding Notes as shall be specified therein and each shall provide that it
shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.
Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented
thereby shall be made by the Trustee or the Security Registrar, in accordance with Sections 203 and 305 of the Base Indenture.

 

(f)       The
depositary for such Global Notes (the “Depositary”) shall be The Depository Trust Company, New York, New York. The
Security Registrar with respect to the Global Notes shall be the Trustee.

 

    	 	 	

     

    

 

(g)       The
Notes shall be defeasible pursuant to Section 1402 or Section 1403 of the Base Indenture. Covenant defeasance contained
in Section 1403 of the Base Indenture shall apply to the covenants contained in Sections 1006, 1008 and 1009 of the Indenture.

 

(h)       The
Notes shall be redeemable pursuant to Section 1101 of the Base Indenture and as follows:

 

(i)       The
Notes will be redeemable in whole or in part at any time or from time to time, at the option of the Company, on or after July 31,
2022, at a redemption price equal to 100% of the outstanding principal amount thereof, plus accrued and unpaid interest payments
otherwise payable for the then-current quarterly interest period accrued to, but excluding, the date fixed for redemption. In addition,
in the event of a merger or sale of the Company or substantially all of its assets or a majority of the Company’s equity
(on an after issued basis) in one or a series of related transactions, the company shall have the right to redeem the Notes prior
to July 31, 2022 in connection with the consummation of such transactions on the terms forth herein.

 

(ii)       Notice
of redemption shall be given in writing and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery,
to each Holder of the Notes to be redeemed, not less than thirty (30) nor more than sixty (60) days prior to the Redemption
Date, at the Holder’s address appearing in the Security Register. All notices of redemption shall contain the information
set forth in Section 1104 of the Base Indenture.

 

(iii)       If
the Company elects to redeem only a portion of the Notes, the Trustee will determine the method for selecting the particular Notes
to be redeemed, in accordance with Section 1103 of the Base Indenture and the Investment Company Act and the rules of
any national securities exchange or quotation system on which the Notes are listed, in each case to the extent applicable.

 

(iv)       Unless
the Company defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the
Notes called for redemption.

 

(i)        The
Notes shall not be subject to any sinking fund pursuant to Section 1201 of the Base Indenture.

 

(j)        The
Notes shall be issuable in denominations of $25 and integral multiples of $25 in excess thereof.

 

(k)        Holders
of the Notes will not have the option to have the Notes repaid prior to the Stated Maturity.

 

(l)        The
Notes are hereby designated as “Senior Securities” under the Indenture.

 

ARTICLE II.

COVENANTS

 

Section 2.01.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Article Ten of the Base Indenture shall be amended by
adding the following new Sections 1009, and 1010 thereto, each as set forth below:

 

    	 	 	

     

    

 

“Section 1009. Dividend Payment and Other
Payment Restrictions.

 

The Company hereby agrees that for the period
of time during which Notes are Outstanding, upon (i) the failure to pay interest on any Note when such interest is due and
payable or (ii) the occurrence of an Event of Default and while any such interest payment remains unpaid or such Event of
Default is ongoing, the Company will not, and will not permit any of its Subsidiaries to, directly or indirectly to:

 

(1)         declare
or pay any dividend, make any distribution on or in respect of the Company’s capital stock or make any similar payment to
the direct or indirect holders of the Company’s capital stock in their capacity as such;

 

(2)         purchase,
repurchase, redeem, retire or otherwise acquire (“Purchase”) for value any capital stock of the Company held by any
Person (other than capital stock held by the Company or a Subsidiary) or any capital stock of a Subsidiary held by any Affiliate
of the Company;

 

(3)         purchase
for value, prior to scheduled maturity, any scheduled repayment of any Subordinated Indebtedness; or

 

(4)         make
any investment in any Person.”

 

ARTICLE III.

MEETINGS OF HOLDERS OF SECURITIES

 

Section 3.01.      Except
as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities
under the Indenture, whether now or hereafter issued and Outstanding, Section 1505 of the Base Indenture shall be amended
by replacing clause (c) thereof with the following:

 

“(c) At any meeting of Holders,
each Holder of a Security of such series or proxy shall be entitled to one vote for each $25.00 principal amount of the Outstanding
Securities of such series held or represented by such Holder; provided, however, that no vote shall be
cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting
to be not Outstanding. The chairman of the meeting shall have no right to vote, except as a Holder of a Security of such series
or proxy.”

 

ARTICLE IV.

MISCELLANEOUS

 

Section 4.01.      This
First Supplemental Indenture and the Notes shall be governed by and construed in accordance with the law of the State of New York,
without regard to principles of conflicts of laws. This First Supplemental Indenture is subject to the provisions of the Trust
Indenture Act that are required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions.

 

Section 4.02.      In
case any provision in this First Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 4.03.      This
First Supplemental Indenture may be executed in counterparts, each of which will be an original, but such counterparts will together
constitute but one and the same First Supplemental Indenture. The exchange of copies of this First Supplemental Indenture and of
signature pages by facsimile, .pdf transmission, email or other electronic means shall constitute effective execution and
delivery of this First Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile, .pdf
transmission, email or other electronic means shall be deemed to be their original signatures for all purposes.

 

Section 4.04. The
Base Indenture, as supplemented and amended by this First Supplemental Indenture, is in all respects ratified and confirmed, and
the Base Indenture and this First Supplemental Indenture shall be read, taken and construed as one and the same instrument with
respect to the Notes. All provisions included in this First Supplemental Indenture supersede any conflicting provisions included
in the Base Indenture with respect to the Notes, unless not permitted by law. The Trustee accepts the trusts created by the Base
Indenture, as supplemented by this First Supplemental Indenture, and agrees to perform the same upon the terms and conditions of
the Base Indenture, as supplemented by this First Supplemental Indenture.

 

Section 4.05.      The
provisions of this First Supplemental Indenture shall become effective as of the date hereof.

 

    	 	 	

     

    

 

Section 4.06.      Notwithstanding
anything else to the contrary herein, the terms and provisions of this First Supplemental Indenture shall apply only to the Notes
and shall not apply to any other series of Securities under the Base Indenture and this First Supplemental Indenture shall not
and does not otherwise affect, modify, alter, supplement or change the terms and provisions of any other series of Securities under
the Base Indenture, whether now or hereafter issued and Outstanding.

 

Section 4.07.      The
recitals contained herein and in the Notes shall be taken as the statements of the Company, and the Trustee assumes no responsibility
for their correctness. The Trustee makes no representations as to the validity or sufficiency of this First Supplemental Indenture,
the Notes or any Additional Notes, except that the Trustee represents that it is duly authorized to execute and deliver this First
Supplemental Indenture, authenticate the Notes and any Additional Notes and perform its obligations hereunder. The Trustee shall
not be accountable for the use or application by the Company of the Notes or any Additional Notes or the proceeds thereof. For
the avoidance of doubt, the Trustee shall be entitled to the rights, authority, privileges, and immunities it receives under the
Base Indenture, including, without limitation, its rights to be indemnified, in connection with its entering into and performing
the obligations imposed by this First Supplemental Indenture.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

    	 	 	

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this First Supplemental Indenture to be duly executed as of the date first above written.

 

	 	CHICKEN SOUP FOR THE SOUL ENTERTAINMENT INC.
	 	 	 
	 	By:	/s/ William J. Rouhana,Jr.
	 	Name:	 William J. Rouhana,Jr.
	 	Title:	 Chief Executive Officer
	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 	 
	 	By:	/s/ Karen Beard
	 	Name:	Karen Beard
	 	Title:	Vice President

 

[Signature page to First Supplemental
Indenture]

 

    	 	 	

     

    

 

Exhibit A – Form of
Global Note

 

This Security is a Global Security within
the meaning of the Indenture hereinafter referred to and is registered in the name of The Depository Trust Company or a nominee
thereof. This Security may not be exchanged in whole or in part for a Security registered, and no transfer of this Security in
whole or in part may be registered, in the name of any Person other than The Depository Trust Company or a nominee thereof, except
in the limited circumstances described in the Indenture.

 

Unless this certificate is presented
by an authorized representative of The Depository Trust Company to the issuer or its agent for registration of transfer, exchange
or payment and such certificate issued in exchange for this certificate is registered in the name of Cede & Co., or such
other name as requested by an authorized representative of The Depository Trust Company, any transfer, pledge or other use hereof
for value or otherwise by or to any person is wrongful, as the registered owner hereof, Cede & Co., has an interest herein.

 

Chicken Soup for the Soul Entertainment Inc.

 

	No. 001	 	$21,000,000
	 	 	CUSIP No.: 16842Q 308
	 	 	ISIN:  US16842Q3083

 

9.50% Notes due July 31, 2025

 

Chicken Soup for the Soul Entertainment Inc.,
a corporation duly organized and existing under the laws of Delaware (herein called the “Company”, which term includes
any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of TWENTY-ONE MILLION AND 00/100 Dollars (U.S. $21,000,000) on July 31, 2025
and to pay interest thereon from July 17, 2020 or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, quarterly on March 31, June 30, September 30 and December 31 in each year, commencing
September 30, 2020, at the rate of 9.50% per annum, until the principal hereof is paid or made available for payment. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the Person in whose name this Security is registered at the close of business on the Regular Record Date for such interest,
which shall be March 15, June 15, September 15, or December 15 (whether or not a Business Day), as the case
may be, immediately preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security
is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date,
or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture. This Security may be issued as part of a series.

 

Payment of the principal of (and premium,
if any, on) and any such interest on this Security will be made at the office of the Trustee located at 111 Fillmore Avenue, St.
Paul, MN 55107, Attention: Bondholder Communication (Chicken Soup for the Soul Entertainment Inc., 9.50% Notes Due July 31,
2025) or at such other address as designated by the Trustee, in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register; provided, further, however, that so long as this Security is registered to Cede &
Co., such payment will be made by wire transfer in accordance with the procedures established by The Depository Trust Company and
the Trustee.

 

Reference is hereby made to the further
provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect
as if set forth at this place.

 

Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

 

    	 	 	

     

    

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

Dated:

 

	 	CHICKEN SOUP FOR THE SOUL ENTERTAINMENT INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	Attest	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

[Global Note – First Supplemental
Indenture]

 

    	 	 	

     

    

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

Dated:

 

	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

[Global Note – First Supplemental
Indenture]

 

    	 	 	

     

    

 

Chicken Soup for the Soul Entertainment Inc.

 

9.50% Notes due July 31, 2025

 

This Security is one of a duly authorized
issue of Senior Securities of the Company (herein called the “Securities”), issued and to be issued in one or more
series under an Indenture, dated as of July 17, 2020 (herein called the “Base Indenture”, which term shall have
the meaning assigned to it in such instrument), between the Company and U.S. Bank National Association, as Trustee (herein called
the “Trustee”, which term includes any successor trustee under the Base Indenture), and reference is hereby made to
the Base Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee, and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered, as supplemented by the First Supplemental Indenture relating to the Securities, dated as of July 17, 2020, by and
between the Company and the Trustee (herein called the “First Supplemental Indenture”; the First Supplemental Indenture
and the Base Indenture collectively are herein called the “Indenture”). In the event of any conflict between the Base
Indenture and the First Supplemental Indenture, the First Supplemental Indenture shall govern and control.

 

This Security is one of the series designated
on the face hereof, which series is initially limited in aggregate principal amount to $21,000,000. Under a Board Resolution, Officers’
Certificate pursuant to Board Resolutions or an indenture supplement, the Company may from time to time, without the consent of
the Holders of Securities, issue additional Securities of this series (in any such case “Additional Securities”) having
the same ranking and the same interest rate, maturity and other terms as the Securities. Any Additional Securities and the existing
Securities will constitute a single series under the Indenture and all references to the relevant Securities herein shall include
the Additional Securities unless the context otherwise requires. The aggregate amount of outstanding Securities represented hereby
may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.

 

The Securities of this series are subject
to redemption in whole or in part at any time or from time to time, at the option of the Company, on or after July 31, 2022,
at a redemption price per security equal to 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments
otherwise payable for the then-current quarterly interest period accrued to, but excluding, the date fixed for redemption.

 

Notice of redemption shall be given in writing
and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery, to each Holder of the Securities
to be redeemed, not less than thirty (30) nor more than sixty (60) days prior to the Redemption Date, at the Holder’s
address appearing in the Security Register. All notices of redemption shall contain the information set forth in Section 1104
of the Base Indenture.

 

If the Company elects to redeem only a portion
of the Securities, the Trustee will determine the method for selecting the particular Securities to be redeemed, in accordance
with Section 1.01 of the First Supplemental Indenture and Section 1103 of the Base Indenture. In the event of redemption
of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof.

 

Unless the Company defaults in payment of
the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the Securities called for redemption.

 

Holders of Securities do not have the option
to have the Securities repaid prior to July 31, 2025

 

The Indenture contains provisions for defeasance
at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to
this Security, in each case upon compliance with certain conditions set forth in the Indenture.

 

If an Event of Default with respect to Securities
of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in
the manner and with the effect provided in the Indenture.

 

    	 	 	

     

    

 

The Indenture permits, with certain exceptions
as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of
the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of not less than a majority in principal amount of the Securities at the time Outstanding of each series
to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance
by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders
of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

 

As provided in and subject to the provisions
of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture
or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less
than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee
to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity, security, or both satisfactory
to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request, and the Trustee shall
not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for sixty (60) days after receipt
of such notice, request and offer of indemnity and/or security. The foregoing shall not apply to any suit instituted by the Holder
of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective
due dates expressed herein.

 

No reference herein to the Indenture and
no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

 

As provided in the Indenture and subject
to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender
of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

 

The Securities of this series are issuable
only in registered form without coupons in denominations of $25 and any integral multiples of $25 in excess thereof. As provided
in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

 

No service charge shall be made for any
such registration of transfer or exchange, but the Company, the Trustee, or the Security Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Security
for registration of transfer, the Company, the Trustee, or the Security Registrar and any agent of the Company, the Trustee, or
the Security Registrar may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether
or not this Security be overdue, and none of the Company, the Trustee, the Security Registrar or any agent thereof shall be affected
by notice to the contrary.

 

All terms used in this Security which are
defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

The Indenture and this Security 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.

 

To the extent any provision of this Security
conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.Exhibit 10.1

 

Execution
Version

 

OPEN MARKET SALE AGREEMENTSM

 

July 17, 2020

 

JEFFERIES LLC

520 Madison Avenue

New York, New York 10022

 

Ladies and Gentlemen:

 

Bellerophon Therapeutics, Inc.,
a Delaware corporation (the “Company”), proposes, subject to the terms and conditions stated herein, to issue
and sell from time to time through Jefferies LLC, as sales agent and/or principal (the “Agent”), shares of the
Company’s common stock, par value $0.01 per share (the “Common Shares”), having an aggregate offering
price of up to $40,000,000 on the terms set forth in this agreement (this “Agreement”).

 

Section 1.     DEFINITIONS

 

(a)            Certain
Definitions. For purposes of this Agreement, capitalized terms used herein and not otherwise defined shall have the following
respective meanings:

 

“Affiliate”
of a Person means another Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such first- mentioned Person. The term “control” (including the terms “controlling,”
 “controlled by” and “under common control with”) means the possession, direct or indirect, of the power
to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities,
by contract or otherwise.

 

“Agency Period”
means the period commencing on the date of this Agreement and expiring on the earliest to occur of (x) the date on which the
Agent shall have placed the Maximum Program Amount pursuant to this Agreement and (y) the date this Agreement is terminated
pursuant to ‎Section 7.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

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

 

“Floor Price”
means the minimum price set by the Company in the Issuance Notice below which the Agent shall not sell Shares during the applicable
period set forth in the Issuance Notice, which may be adjusted by the Company at any time during the period set forth in the Issuance
Notice by delivering written notice of such change to the Agent and which in no event shall be less than $1.00 without the prior
written consent of the Agent, which may be withheld in the Agent’s sole discretion.

 

 

SM “Open Market Sale Agreement” is a
service mark of Jefferies LLC

 

     

     

    

 

“Issuance
Amount” means the aggregate Sales Price of the Shares to be sold by the Agent pursuant to any Issuance Notice.

 

“Issuance
Notice” means a written notice delivered to the Agent by the Company in accordance with this Agreement in the form attached
hereto as Exhibit A that is executed by its Chief Executive Officer, President or Chief Financial Officer.

 

“Issuance
Notice Date” means any Trading Day during the Agency Period that an Issuance Notice is delivered pursuant to ‎Section 3(b)(i).

 

“Issuance
Price” means the Sales Price less the Selling Commission.

 

“Maximum Program
Amount” means Common Shares with an aggregate Sales Price of the lesser of (a) the number or dollar amount of Common
Shares registered under the effective Registration Statement (defined below) pursuant to which the offering is being made, (b) the
number of authorized but unissued Common Shares (less Common Shares issuable upon exercise, conversion or exchange of any outstanding
securities of the Company or otherwise reserved from the Company’s authorized capital stock), (c) the number or dollar
amount of Common Shares permitted to be sold under Form S-3 (including General Instruction I.B.6 thereof, if applicable),
or (d) the number or dollar amount of Common Shares for which the Company has filed a Prospectus (defined below).

 

“Person”
means an individual or a corporation, partnership, limited liability company, trust, incorporated or unincorporated association,
joint venture, joint stock company, governmental authority or other entity of any kind.

 

“Principal
Market” means The Nasdaq Capital Market or such other national securities exchange on which the Common Shares, including
any Shares, are then listed.

 

“Sales Price”
means the actual sale execution price of each Share placed by the Agent pursuant to this Agreement.

 

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

 

“Selling Commission”
means three percent (3.0%) of the gross proceeds of Shares sold pursuant to this Agreement, or as otherwise agreed between the
Company and the Agent with respect to any Shares sold pursuant to this Agreement.

 

“Settlement
Date” means the second business day following each Trading Day during the period set forth in the Issuance Notice on
which Shares are sold pursuant to this Agreement, when the Company shall deliver to the Agent the amount of Shares sold on such
Trading Day and the Agent shall deliver to the Company the Issuance Price received on such sales.

 

“Shares”
shall mean the Company’s Common Shares issued or issuable pursuant to this Agreement.

 

“Trading Day”
means any day on which the Principal Market is open for trading.

 

    2

     

    

 

Section 2.     REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

The Company represents
and warrants to, and agrees with, the Agent that as of (1) the date of this Agreement, (2) each Issuance Notice Date,
(3) each Settlement Date, (4) each Triggering Event Date with respect to which the Company is required to deliver a certificate
pursuant to Section 4(o) and (5) as of each Time of Sale (each of the times referenced above is referred
to herein as a “Representation Date”), except as may be disclosed in the Prospectus (including any documents
incorporated by reference therein and any supplements thereto) on or before a Representation Date:

 

(a)            Registration
Statement. The Company has prepared and filed with the Commission a shelf registration statement on Form S-3 (File No. 333-239473)
that contains a base prospectus (the “Base Prospectus”). Such registration statement registers the issuance
and sale by the Company of the Shares under the Securities Act. The Company may file one or more additional registration statements
from time to time that will contain a base prospectus and related prospectus or prospectus supplement, if applicable, with respect
to the Shares. Except where the context otherwise requires, such registration statement(s), including any information deemed to
be a part thereof pursuant to Rule 430B under the Securities Act, including all financial statements, exhibits and schedules
thereto and all documents incorporated or deemed to be incorporated therein by reference pursuant to Item 12 of Form S-3 under
the Securities Act as from time to time amended or supplemented, is herein referred to as the “Registration Statement,”
and the prospectus constituting a part of such registration statement(s), together with any prospectus supplement filed with the
Commission pursuant to Rule 424(b) under the Securities Act relating to a particular issuance of the Shares, including
all documents incorporated or deemed to be incorporated therein by reference pursuant to Item 12 of Form S-3 under the Securities
Act, in each case, as from time to time amended or supplemented, is referred to herein as the “Prospectus,”
except that if any revised prospectus is provided to the Agent by the Company for use in connection with the offering of the Shares
that is not required to be filed by the Company pursuant to Rule 424(b) under the Securities Act, the term “Prospectus”
shall refer to such revised prospectus from and after the time it is first provided to the Agent for such use. The Registration
Statement at the time it originally became effective is herein called the “Original Registration Statement.”
As used in this Agreement, the terms “amendment” or “supplement” when applied to the Registration Statement
or the Prospectus shall be deemed to include the filing by the Company with the Commission of any document under the Exchange Act
after the date hereof that is or is deemed to be incorporated therein by reference.

 

All references in this
Agreement to financial statements and schedules and other information which is “contained,” “included”
 “stated” in or “part of” the Registration Statement or the Prospectus (and all other references of like
import) shall be deemed to mean and include all such financial statements and schedules and other information which is or is deemed
to be incorporated by reference in or otherwise deemed under the Securities Act to be a part of or included in the Registration
Statement or the Prospectus, as the case may be, as of any specified date; and all references in this Agreement to amendments or
supplements to the Registration Statement or the Prospectus shall be deemed to mean and include, without limitation, the filing
of any document under the Exchange Act which is or is deemed to be incorporated by reference in or otherwise deemed under the Securities
Act to be a part of or included in the Registration Statement or the Prospectus, as the case may be, as of any specified date.
The Company’s obligations under this Agreement to furnish, provide or deliver or make available copies of any report or statement
shall be deemed satisfied if the same is filed with the Commission through its Electronic Data Gathering, Analysis and Retrieval
system (“EDGAR”).

 

    3

     

    

 

At the time the Original
Registration Statement was declared effective and at the time the Company’s most recent annual report on Form 10-K was
filed with the Commission, if later, the Company met the then-applicable requirements for use of Form S-3 under the Securities
Act. During the Agency Period, each time the Company files an annual report on Form 10-K the Company will meet the then-applicable
requirements for use of Form S-3 under the Securities Act.

 

(b)            Compliance
with Registration Requirements. The Original Registration Statement and any Rule 462(b) Registration Statement have
been declared effective by the Commission under the Securities Act. The Company has complied to the Commission’s satisfaction
with all requests of the Commission for additional or supplemental information. No stop order suspending the effectiveness of the
Registration Statement or any Rule 462(b) Registration Statement is in effect and no proceedings for such purpose have
been instituted or are pending or, to the best knowledge of the Company, are contemplated or threatened by the Commission.

 

The Prospectus when
filed complied or will comply in all material respects with the Securities Act and, if filed with the Commission through EDGAR
(except as may be permitted by Regulation S T under the Securities Act), was identical to the copy thereof delivered to the Agent
for use in connection with the issuance and sale of the Shares. Each of the Registration Statement, any Rule 462(b) Registration
Statement and any post-effective amendment thereto, at the time it became or becomes effective and at each Representation Date,
complied and will comply in all material respects with the Securities Act and did not and will not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading. As of the date of this Agreement, the Prospectus and any Free Writing Prospectus (as defined below) considered together
(collectively, the “Time of Sale Information”) did not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading. The Prospectus, as amended or supplemented, as of its date and at each Representation Date, did not and will not
contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading. The representations and warranties set forth in the
three immediately preceding sentences do not apply to statements in or omissions from the Registration Statement, any Rule 462(b) Registration
Statement, or any post-effective amendment thereto, or the Prospectus, or any amendments or supplements thereto, made in reliance
upon and in conformity with information relating to the Agent furnished to the Company in writing by the Agent expressly for use
therein, it being understood and agreed that the only such information furnished by the Agent to the Company consists of the information
described in Section 6 below. There are no contracts or other documents required to be described in the Prospectus
or to be filed as exhibits to the Registration Statement which have not been described or filed as required. The Registration Statement
and the offer and sale of the Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act and
comply in all material respects with said rule.

 

    4

     

    

 

(c)            Ineligible
Issuer Status. The Company is not an “ineligible issuer” in connection with the offering of the Shares pursuant
to Rules 164, 405 and 433 under the Securities Act. Any Free Writing Prospectus that the Company is required to file pursuant
to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements
of the Securities Act. Each Free Writing Prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under
the Securities Act or that was prepared by or on behalf of or used or referred to by the Company complies or will comply in all
material respects with the requirements of Rule 433 under the Securities Act including timely filing with the Commission or
retention where required and legending, and each such Free Writing Prospectus, as of its issue date and at all subsequent times
through the completion of the issuance and sale of the Shares did not, does not and will not include any information that conflicted,
conflicts with or will conflict with the information contained in the Registration Statement or the Prospectus, including any document
incorporated by reference therein. Except for the Free Writing Prospectuses, if any, and electronic road shows, if any, furnished
to the Agent before first use, the Company has not prepared, used or referred to, and will not, without the Agent’s prior
consent, which consent shall not be unreasonably withheld or delayed, prepare, use or refer to, any Free Writing Prospectus.

 

(d)            Incorporated
Documents. The documents incorporated or deemed to be incorporated by reference in the Registration Statement and the Prospectus,
at the time they were filed with the Commission, complied in all material respects with the requirements of the Exchange Act, as
applicable, and, when read together with the other information in the Prospectus, do not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

(e)            Exchange
Act Compliance. The documents incorporated or deemed to be incorporated by reference in the Prospectus, at the time they were
or hereafter are filed with the Commission, and any Free Writing Prospectus or amendment or supplement thereto complied and will
comply in all material respects with the requirements of the Exchange Act, and, when read together with the other information in
the Prospectus, at the time the Registration Statement and any amendments thereto become effective and at each Representation Date,
as the case may be, will not contain an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the 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.

 

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

 

    5

     

    

 

(g)            Disclosure
Controls and Procedures; Deficiencies in or Changes to Internal Control Over Financial Reporting. The Company has established
and maintains disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the Exchange Act), which (i) are
designed to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to
the Company’s principal executive officer and its principal financial officer by others within those entities, particularly
during the periods in which the periodic reports required under the Exchange Act are being prepared; (ii) have been evaluated
by management of the Company for effectiveness as of the end of the Company’s most recent fiscal quarter; and (iii) are
effective in all material respects to perform the functions for which they were established. Since the end of the Company’s
most recent audited fiscal year, there have been no significant deficiencies or material weaknesses in the Company’s internal
control over financial reporting (whether or not remediated) and no change in the Company’s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over
financial reporting. The Company is not aware of any change in its internal control over financial reporting that has occurred
during its most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.

 

(h)            This
Agreement. This Agreement has been duly authorized, executed and delivered by the Company.

 

(i)             Authorization
of the Shares. The Shares have been duly authorized for issuance and sale pursuant to this Agreement and, when issued and delivered
by the Company against payment therefor pursuant to this Agreement, will be validly issued, fully paid and nonassessable, and the
issuance and sale of the Shares is not subject to any preemptive rights, rights of first refusal or other similar rights to subscribe
for or purchase the Shares that have not been validly waived in writing.

 

(j)             No
Applicable Registration or Other Similar Rights. There are no persons with registration or other similar rights to have any
equity or debt securities registered for sale under the Registration Statement or included in the offering contemplated by this
Agreement, except for such rights as have been duly waived.

 

(k)            No
Material Adverse Change. Except as otherwise disclosed in the Registration Statement and the Prospectus, subsequent to the
respective dates as of which information is given in the Registration Statement and the Prospectus: (i) there has been no
material adverse change, or any development that would reasonably be expected to result in a material adverse change, in (A) the
condition, financial or otherwise, or in the earnings, business, properties, operations, operating results, assets, liabilities
or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries,
considered as one entity or (B) the ability of the Company to consummate the transactions contemplated by this Agreement or
perform its obligations hereunder (any such change being referred to herein as a “Material Adverse Change”);
(ii) the Company and its subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect,
direct or contingent, including without limitation any losses or interference with their business from fire, explosion, flood,
earthquakes, accident or other calamity, whether or not covered by insurance, or from any strike, labor dispute or court or governmental
action, order or decree, that are material, individually or in the aggregate, to the Company and its subsidiaries, considered as
one entity, and have not entered into any transactions not in the ordinary course of business; and (iii) there has not been
any material decrease in the capital stock or any material increase in any short-term or long-term indebtedness of the Company
or its subsidiaries and there has been no dividend or distribution of any kind declared, paid or made by the Company or, except
for dividends paid to the Company or other subsidiaries, by any of the Company’s subsidiaries on any class of capital stock,
or any repurchase or redemption by the Company or any of its subsidiaries of any class of capital stock.

 

    6

     

    

 

(l)             Independent
Accountants. KPMG LLP, which has expressed its opinion with respect to the financial statements (which term as used in this
Agreement includes the related notes thereto) filed with the Commission as a part of the Registration Statement and the Prospectus,
is (i) an independent registered public accounting firm as required by the Securities Act, the Exchange Act and the rules of
the Public Company Accounting Oversight Board (“PCAOB”), (ii) in compliance with the applicable requirements
relating to the qualification of accountants under Rule 2-01 of Regulation S-X under the Securities Act and (iii) a registered
public accounting firm as defined by the PCAOB whose registration has not been suspended or revoked and who has not requested such
registration to be withdrawn.

 

(m)            Financial
Statements. The financial statements filed with the Commission as a part of the Registration Statement and the Prospectus present
fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of the dates indicated
and the results of their operations, changes in stockholders’ equity and cash flows for the periods specified. Such financial
statements have been prepared in conformity with generally accepted accounting principles applied on a consistent basis throughout
the periods involved, except as may be expressly stated in the related notes thereto and except in the case of unaudited financial
statements, which are subject to normal and recurring year-end adjustments and do not contain all footnotes as permitted by the
applicable rules of the Commission. The interactive data in eXtensible Business Reporting Language included or incorporated
by reference in the Registration Statement fairly presents the information called for in all material respects and has been prepared
in accordance with the Commission’s rules and guidelines applicable thereto. No other financial statements or supporting
schedules are required to be included in the Registration Statement or the Prospectus. The financial data set forth in each of
the Registration Statement and the Prospectus fairly present, in all material respects, the information set forth therein on a
basis consistent with that of the audited financial statements contained in the Registration Statement and the Prospectus. All
disclosures contained in the Registration Statement and the Prospectus that constitute non GAAP financial measures (as defined
by the rules and regulations under the Securities Act and the Exchange Act) comply with Regulation G under the Exchange Act
and Item 10 of Regulation S-K under the Securities Act, as applicable. To the Company’s knowledge, no person who has been
suspended or barred from being associated with a registered public accounting firm, or who has failed to comply with any sanction
pursuant to Rule 5300 promulgated by the PCAOB, has participated in or otherwise aided the preparation of, or audited, the
financial statements, supporting schedules or other financial data filed with the Commission as a part of the Registration Statement
and the Prospectus.

 

(n)            Company’s
Accounting System. The Company and each of its subsidiaries make and keep accurate books and records and maintain a system
of internal accounting controls designed to provide reasonable assurance that: (i) transactions are executed in accordance
with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets;
(iii) access to assets is permitted only in accordance with management’s general or specific authorization; (iv) the
recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with
respect to any differences; and (v) the interactive data in eXtensible Business Reporting Language included or incorporated
by reference in the Registration Statement and the Prospectus fairly presents the information called for in all material respects
and is prepared in accordance with the Commission's rules and guidelines applicable thereto.

 

    7

     

    

 

(o)            Incorporation
and 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 the corporate power and authority to own, lease and operate its properties and
to conduct its business as described in the Registration Statement and the Prospectus and to enter into and perform its obligations
under this Agreement. The Company is duly qualified as a foreign corporation to transact business and is in good standing in the
State of New Jersey and 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 to be so qualified or in good standing, as the case may
be, or to have such power or authority would not, individually or in the aggregate, have a Material Adverse Change.

 

(p)            Subsidiaries.
Each of the Company’s “subsidiaries” (for purposes of this Agreement, as defined in Rule 405 under the Securities
Act) has been duly incorporated or organized, as the case may be, and is validly existing as a corporation, partnership or limited
liability company, as applicable, in good standing under the laws of the jurisdiction of its incorporation or organization and
has the power and authority (corporate or other) to own, lease and operate its properties and to conduct its business as described
in the Registration Statement and the Prospectus. Each of the Company’s subsidiaries is duly qualified as a foreign corporation,
partnership or limited liability company, as applicable, to transact business and is in good standing in each jurisdiction in which
such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where
the failure to be so qualified or in good standing, as the case may be, would not, individually or in the aggregate, have a Material
Adverse Change. All of the issued and outstanding capital stock or other equity or ownership interests of each of the Company’s
subsidiaries have been duly authorized and validly issued, are fully paid and nonassessable and are owned by the Company, directly
or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or adverse claim. None of
the outstanding capital stock or equity interest in any subsidiary was issued in violation of preemptive or similar rights of any
security holder of such subsidiary. The constitutive or organizational documents of each of the subsidiaries comply in all material
respects with the requirements of applicable laws of its jurisdiction of incorporation or organization and are in full force and
effect. The Company does not own or control, directly or indirectly, any corporation, association or other entity other than the
subsidiaries listed in Exhibit 21 to the Company’s most recent Annual Report on Form 10-K.

 

(q)            Capitalization
and Other Capital Stock Matters. The authorized, issued and outstanding capital stock of the Company is as set forth in the
Registration Statement and the Prospectus under the caption “Capitalization” (other than for subsequent issuances,
if any, pursuant to employee benefit plans or upon the exercise of outstanding options or warrants, in each case described in the
Registration Statement and the Prospectus). The Common Shares (including the Shares), when issued pursuant to the terms of this
Agreement, conform in all material respects to the description thereof contained in the Prospectus. All of the issued and outstanding
Common Shares have been duly authorized and validly issued, are fully paid and nonassessable and have been issued in compliance
with all applicable federal and state securities laws. None of the outstanding Common Shares was issued in violation of any preemptive
rights, rights of first refusal or other similar rights to subscribe for or purchase securities of the Company. There are no authorized
or outstanding options, warrants, preemptive rights, rights of first refusal or other rights to purchase, or equity or debt securities
convertible into or exchangeable or exercisable for, any capital stock of the Company or any of its subsidiaries other than those
described in the Registration Statement and the Prospectus. The descriptions of the Company’s stock option, stock bonus and
other stock plans or arrangements, and the options or other rights granted thereunder, set forth in the Registration Statement
and the Prospectus accurately and fairly presents, in all material respects, the information required to be shown with respect
to such plans, arrangements, options and rights.

 

    8

     

    

 

(r)             Stock
Exchange Listing. The Common Shares are registered pursuant to Section 12(b) or 12(g) of the Exchange Act and
are listed on the Principal Market, and the Company has taken no action designed to, or likely to have the effect of, terminating
the registration of the Common Shares under the Exchange Act or delisting the Common Shares from the Principal Market, nor has
the Company received any notification that the Commission or the Principal Market is contemplating terminating such registration
or listing. To the Company’s knowledge, it is in compliance with all applicable listing requirements of the Principal Market.

 

(s)            Non-Contravention
of Existing Instruments; No Further Authorizations or Approvals Required. Neither the Company nor any of its subsidiaries is
in violation of its charter or by laws, partnership agreement or operating agreement or similar organizational documents, as applicable,
or is in default (or, with the giving of notice or lapse of time, would be in default) (“Default”) under any
indenture, loan, credit agreement, note, lease, license agreement, contract, franchise or other instrument (including, without
limitation, any pledge agreement, security agreement, mortgage or other instrument or agreement evidencing, guaranteeing, securing
or relating to indebtedness) to which the Company or any of its subsidiaries is a party or by which it or any of them may be bound,
or to which any of their respective properties or assets are subject (each, an “Existing Instrument”), except
for such Defaults as could not be expected, individually or in the aggregate, to result in a Material Adverse Change. The Company’s
execution, delivery and performance of this Agreement, consummation of the transactions contemplated hereby and by the Registration
Statement and the Prospectus and the issuance and sale of the Shares (including the use of proceeds from the sale of the Shares
as described in the Registration Statement and the Prospectus under the caption “Use of Proceeds”) (i) have been
duly authorized by all necessary corporate action and will not result in any violation of the provisions of the charter or by laws,
partnership agreement or operating agreement or similar organizational documents, as applicable, of the Company or any subsidiary
(ii) will not conflict with or constitute a breach of, or Default or a Debt Repayment Triggering Event (as defined below)
under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or
any of its subsidiaries pursuant to, or require the consent of any other party to, any Existing Instrument, except as could not
be expected, individually or in the aggregate, to result in a Material Adverse Change and (iii) will not result in any violation
of any law, administrative regulation or administrative or court decree applicable to the Company or any of its subsidiaries, except
for such violations as would not be expected, individually or in the aggregate, to have a Material Adverse Change. No consent,
approval, authorization or other order of, or registration or filing with, any court or other governmental or regulatory authority
or agency, is required for the Company’s execution, delivery and performance of this Agreement and consummation of the transactions
contemplated hereby and by the Registration Statement and the Prospectus, except such as have been obtained or made or will be
made by the Company under the Securities Act and such as may be required under applicable state securities or blue sky laws or
the Financial Industry Regulatory Authority, Inc. (“FINRA”). As used herein, a “Debt Repayment
Triggering Event” means any event or condition which gives, or with the giving of notice or lapse of time would give,
the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right
to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of its subsidiaries.

 

    9

     

    

 

(t)             No
Material Actions or Proceedings. Except as otherwise disclosed in the Prospectus, there is no action, suit, proceeding, inquiry
or investigation brought by or before any legal or governmental entity now pending or, to the knowledge of the Company, threatened,
against or affecting the Company or any of its subsidiaries, which, if determined adversely to the Company or any of its subsidiaries,
would reasonably be expected, individually or in the aggregate, to result in a Material Adverse Change. No material labor dispute
with the employees of the Company or any of its subsidiaries, or with the employees of any principal supplier, manufacturer, customer
or contractor of the Company, exists or, to the knowledge of the Company, is threatened or imminent.

 

(u)            Intellectual
Property Rights. Except as otherwise disclosed in the Registration Statement or the Prospectus, the Company and its subsidiaries
own, or have obtained valid and enforceable licenses for, the inventions, patent applications, patents, trademarks, trade names,
service names, copyrights, trade secrets and other intellectual property described in the Registration Statement and the Prospectus
as being owned or licensed by them or which are necessary for the conduct of their respective businesses as currently conducted
or as currently proposed to be conducted (collectively, “Intellectual Property”) and, to the Company’s
knowledge, the conduct of their respective businesses does not and will not infringe, misappropriate or otherwise conflict in any
material respect with any such rights of others. The Intellectual Property of the Company has not been adjudged by a court of competent
jurisdiction to be invalid or unenforceable, in whole or in part, and the Company is unaware of any facts which would form a reasonable
basis for any such adjudication. To the Company’s knowledge: (i) there are no third parties who have rights to any Intellectual
Property, except for customary reversionary rights of third-party licensors with respect to Intellectual Property that is disclosed
in the Registration Statement and the Prospectus as licensed to the Company or one or more of its subsidiaries; and (ii) there
is no infringement by third parties of any Intellectual Property. There is no pending or, to the Company’s knowledge, threatened
action, suit, proceeding or claim by others: (A) challenging the Company’s rights in or to any Intellectual Property,
and the Company is unaware of any facts which would form a reasonable basis for any such action, suit, proceeding or claim; (B) challenging
the validity, enforceability or scope of any Intellectual Property, and the Company is unaware of any facts which would form a
reasonable basis for any such action, suit, proceeding or claim; or (C) asserting that the Company or any of its subsidiaries
infringes or otherwise violates, or would, upon the commercialization of any product or service described in the Registration Statement
or the Prospectus as under development, infringe or violate, any patent, trademark, trade name, service name, copyright, trade
secret or other proprietary rights of others, and the Company is unaware of any facts which would form a reasonable basis for any
such action, suit, proceeding or claim. The Company and its subsidiaries have complied with the terms of each agreement pursuant
to which Intellectual Property has been licensed to the Company or any subsidiary, and all such agreements are in full force and
effect. To the Company’s knowledge, there are no material defects in any of the patents or patent applications included in
the Intellectual Property. The Company and its subsidiaries have taken all reasonable steps to protect, maintain and safeguard
their Intellectual Property, including the execution of appropriate nondisclosure, confidentiality agreements and invention assignment
agreements and invention assignments with their employees, and, to the Company’s knowledge, no employee of the Company is
in or has been in violation of any term of any employment contract, patent disclosure agreement, invention assignment agreement,
non-competition agreement, non-solicitation agreement, nondisclosure agreement, or any restrictive covenant to or with a former
employer where the basis of such violation relates to such employee’s employment with the Company. The duty of candor and
good faith as required by the United States Patent and Trademark Office during the prosecution of the United States patents and
patent applications included in the Intellectual Property have been complied with; and in all foreign offices having similar requirements,
all such requirements have been complied with. None of the Company owned Intellectual Property or technology (including information
technology and outsourced arrangements) employed by the Company or its subsidiaries has been obtained or is being used by the Company
or its subsidiary in violation of any contractual obligation binding on the Company or its subsidiaries or any of their respective
officers, directors or employees or otherwise in violation of the rights of any persons. The product candidates described in the
Registration Statement and the Prospectus as under development by the Company or any subsidiary fall within the scope of the claims
of one or more patents owned by, or exclusively licensed to, the Company or any subsidiary.

 

    10

     

    

 

(v)            All
Necessary Permits, etc. Except as otherwise disclosed in the Prospectus, the Company and its subsidiaries possess such
valid and current certificates, authorizations or permits required by state, federal or foreign regulatory agencies or bodies to
conduct their respective businesses as currently conducted and as described in the Registration Statement or the Prospectus (“Permits”),
except where the failure to possess the same or so qualify would not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Change, and except as described in the Registration Statement or the Prospectus. Neither the Company
nor any of its subsidiaries is in violation of, or in default under, any of the Permits or has received any notice of proceedings
relating to the revocation or modification of, or non compliance with, any such certificate, authorization or permit, except where
such violations, defaults or proceedings, if resolved unfavorably, would not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Change.

 

(w)            Title
to Properties. Except as otherwise disclosed in the Prospectus, the Company and its subsidiaries have good and marketable title
to all of the real and personal property and other assets reflected as owned in the financial statements referred to in ‎Section 2(m) above
(or elsewhere in the Registration Statement or the Prospectus, in each case free and clear of any security interests, mortgages,
liens, encumbrances, equities, adverse claims and other defects, except such as do not materially and adversely affect the value
of such property and do not materially interfere with the use made or proposed to be made of such property by the Company. The
real property, improvements, equipment and personal property held under lease by the Company or any of its subsidiaries are held
under valid and enforceable leases, with such exceptions as are not material and do not materially interfere with the use made
or proposed to be made of such real property, improvements, equipment or personal property by the Company or such subsidiary.

 

    11

     

    

 

(x)             Tax
Law Compliance. Except in any case in which the failure to pay or file, as applicable, would not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Change, and except as otherwise disclosed in the Registration Statement or the
Prospectus, the Company and its subsidiaries have filed all necessary federal, state and foreign income and franchise tax returns
or have properly requested extensions thereof and have paid all taxes required to be paid by any of them and, if due and payable,
any related or similar assessment, fine or penalty levied against any of them except as may be being contested in good faith and
by appropriate proceedings. Except to the extent of any inadequacy that would not, individually or in the aggregate, result in
a Material Adverse Change, the Company has made adequate charges, accruals and reserves in the applicable financial statements
referred to in ‎Section 2(m) above in respect of all federal, state and foreign income and franchise taxes
for all periods as to which the tax liability of the Company or any of its subsidiaries has not been finally determined.

 

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

 

(z)             Insurance.
Except as otherwise disclosed in the Prospectus, each of the Company and its subsidiaries are insured by recognized, financially
sound and reputable institutions with policies in such amounts and with such deductibles and covering such risks as are generally
deemed adequate and customary for their businesses including, but not limited to, policies covering real and personal property
owned or leased by the Company and its subsidiaries against theft, damage, destruction, acts of vandalism and earthquakes and policies
covering the Company and its subsidiaries for product liability claims and clinical trial liability claims. The Company has no
reason to believe that it or any of its subsidiaries will not be able (i) to renew its existing insurance coverage as and
when such policies expire or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate
to conduct its business as now conducted and at a cost that would not reasonably be expected to result in a Material Adverse Change.
Neither the Company nor any of its subsidiaries has been denied any insurance coverage which it has sought or for which it has
applied.

 

(aa)          No
Price Stabilization or Manipulation; Compliance with Regulation M. Neither the Company nor any of its subsidiaries has taken,
directly or indirectly, any action designed to or that might reasonably be expected to cause or result in stabilization or manipulation
of the price of the Common Shares or of any “reference security” (as defined in Rule 100 of Regulation M under
the Exchange Act (“Regulation M”)) with respect to the Common Shares, whether to facilitate the sale or resale
of the Shares or otherwise, and has taken no action which would directly or indirectly violate Regulation M.

 

(bb)          Related
Party Transactions. There are no business relationships or related-party transactions involving the Company or any of its subsidiaries
or any other person required to be described in the Registration Statement or the Prospectus which have not been described as required.

 

    12

     

    

 

(cc)          FINRA
Matters. All of the information provided to the Agent or to counsel for the Agent by the Company, its counsel, its officers
and directors and, to the Company’s knowledge, the holders of any securities (debt or equity) or options to acquire any
securities of the Company in connection with the offering of the Shares is true, complete, correct and compliant with FINRA’s
rules and any letters, filings or other supplemental information provided to FINRA pursuant to FINRA Rules or NASD Conduct
Rules is true, complete and correct. The Company meets the requirements for use of Form S-3 under the Securities Act
specified in FINRA Rule 5110(b)(7)(C)(i).

 

(dd)         No
Unlawful Contributions or Other Payments. Except as otherwise disclosed in the Prospectus, neither the Company nor any of
its subsidiaries nor, to the best of the Company’s knowledge, any employee or agent of the Company or any subsidiary, has
made any contribution or other payment to any official of, or candidate for, any federal, state or foreign office in violation
of any law or of the character required to be disclosed in the Registration Statement and the Prospectus.

 

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

 

(ff)           ERISA
Compliance. Except as could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse
Change, the Company and its subsidiaries and any “employee benefit plan” (as defined under the Employee Retirement
Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”))
established or maintained by the Company, its subsidiaries or their “ERISA Affiliates” (as defined below) are in compliance
in all material respects with ERISA. “ERISA Affiliate” means, with respect to the Company or any of its subsidiaries,
any member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Internal Revenue Code
of 1986, as amended, and the regulations and published interpretations thereunder (the “Code”) of which the
Company or such subsidiary is a member. No “reportable event” (as defined under ERISA), for which notice has not been
waived, has occurred or is reasonably expected to occur with respect to any “employee benefit plan” established or
maintained by the Company, its subsidiaries or any of their ERISA Affiliates. No “employee benefit plan” established
or maintained by the Company, its subsidiaries or any of their ERISA Affiliates, if such “employee benefit plan” were
terminated, would have any “amount of unfunded benefit liabilities” (as defined under ERISA). Neither the Company,
its subsidiaries nor any of their ERISA Affiliates has incurred or reasonably expects to incur any liability under (i) Title
IV of ERISA with respect to termination of, or withdrawal from, any “employee benefit plan” or (ii) Sections
412, 4971, 4975 or 4980B of the Code. Each “employee benefit plan” established or maintained by the Company, its subsidiaries
or any of their ERISA Affiliates that is intended to be qualified under Section 401(a) of the Code is so qualified and,
to the knowledge of the Company, nothing has occurred, whether by action or failure to act, which would cause the loss of such
qualification.

 

    13

     

    

 

(gg)         Brokers.
Except as otherwise disclosed in the Prospectus, there is no broker, finder or other party that is entitled to receive from the
Company any brokerage or finder’s fee or other fee or commission as a result of any transactions contemplated by this Agreement.

 

(hh)         No
Outstanding Loans or Other Extensions of Credit. The Company does not have any outstanding extension of credit, in the form
of a personal loan, to or for any director or executive officer (or equivalent thereof) of the Company except for such extensions
of credit as are expressly permitted by Section 13(k) of the Exchange Act.

 

(ii)            Compliance
with Laws. The Company and its subsidiaries have been and are in compliance with all applicable laws, rules and regulations,
except where failure to be so in compliance could not be expected, individually or in the aggregate, to result in a Material Adverse
Change.

 

(jj)            Dividend
Restrictions. Except as disclosed in the Prospectus, no subsidiary of the Company is prohibited or restricted, directly or
indirectly, from paying dividends to the Company, or from making any other distribution with respect to such subsidiary’s
equity securities or from repaying to the Company or any other subsidiary of the Company any amounts that may from time to time
become due under any loans or advances to such subsidiary from the Company or from transferring any property or assets to the
Company or to any other subsidiary.

 

(kk)          Anti-Corruption
and Anti-Bribery Laws. Neither the Company nor any of its subsidiaries, directors or officers, nor to the knowledge of the
Company, any agent, employee, controlled affiliate or other person acting on behalf of the Company or any of its subsidiaries
has, in the course of its actions for, or on behalf of, the Company or any of its subsidiaries (i) used any corporate funds
for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made,
offered, promised, authorized or taken any act in furtherance of any direct or indirect unlawful payment or benefit to any foreign
or domestic government official or employee, including of any government-owned or controlled entity or public international organization,
or any political party, party official, or candidate for political office; (iii) violated or is in violation of any provision
of the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), the UK Bribery Act 2010, or any
other applicable anti-bribery or anti-corruption law; or (iv) made, offered, authorized, requested or taken an act in furtherance
of any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment or benefit. The Company and its subsidiaries
and, to the knowledge of the Company, the Company’s controlled affiliates have conducted their respective businesses in
compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably
expected to continue to ensure, continued compliance therewith.

 

    14

     

    

 

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

 

(mm)        Clinical
Data and Regulatory Compliance. The preclinical tests and clinical trials, and other studies (collectively, “studies”)
that are described in, or the results of which are referred to in, the Registration Statement or the Prospectus were and, if still
pending, are being conducted in all material respects in accordance with the protocols, procedures and controls designed and approved
for such studies and with standard medical and scientific research procedures; each description of the results of such studies
is accurate and complete in all material respects and fairly presents the data derived from such studies, and the Company and its
subsidiaries have no knowledge of any other studies the results of which are materially inconsistent with, or otherwise call into
question, the results described or referred to in the Registration Statement or the Prospectus; the Company and its subsidiaries
have made all such filings and obtained all such approvals as may be required by the Food and Drug Administration of the U.S. Department
of Health and Human Services or any committee thereof or from any other U.S. or foreign government or drug or medical device regulatory
agency, or health care facility Institutional Review Board (collectively, the “Regulatory Agencies”) for the
conduct of the clinical trials described in, or the results of which are referred to in, the Registration Statement or the Prospectus;
neither the Company nor any of its subsidiaries has received any notice of, or correspondence from, any Regulatory Agency requiring
the termination, suspension or modification of any clinical trials that are described or referred to in the Registration Statement
or the Prospectus; and the Company and its subsidiaries have each operated and currently are in compliance in all material respects
with all applicable rules, regulations and policies of the Regulatory Agencies.

 

(nn)         Sanctions.
Neither the Company nor any of its subsidiaries, directors or officers, nor, to the knowledge of the Company, any employee, agent,
controlled affiliate or other person acting on behalf of the Company or any of its subsidiaries is currently the subject or the
target of any applicable sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury
(“OFAC”), the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s
Treasury of the United Kingdom, 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 or the target
of Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea, and Syria; and the Company will not directly
or indirectly use the proceeds of this offering, or lend, contribute or otherwise make available such proceeds to any subsidiary,
or any joint venture partner or other person or entity, for the purpose of financing the activities of or business with any person,
or in any country or territory, that at the time of such financing, is the subject or the target of Sanctions or in any other
manner that will result in a violation by any person (including any person participating in the transaction whether as underwriter,
advisor, investor or otherwise) of applicable Sanctions. For the past five years, the Company and its subsidiaries have not knowingly
engaged in and are not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or
transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.

 

    15

     

    

 

(oo)          Sarbanes-Oxley
Act. There is, and has been, no failure on the part of the Company or any of the Company’s directors or officers, in
their capacities as such, to comply with any applicable provision of the Sarbanes-Oxley Act of 2002, as amended and the rules and
regulations promulgated in connection therewith, including Section 402 related to loans and Sections 302 and 906 related to
certifications.

 

(pp)         Duties,
Transfer Taxes, Etc. No stamp or other issuance or transfer taxes or duties and no capital gains, income, withholding or other
taxes are payable by the Agent in the United States or any political subdivision or taxing authority thereof or therein in connection
with the execution, delivery or performance of this Agreement by the Company or the sale and delivery by the Company of the Shares.

 

(qq)          Cybersecurity.
The Company’s and its subsidiaries’ information technology assets and equipment, computers, systems, networks, hardware,
software, websites, applications, and databases (collectively, “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, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants.
The Company and its subsidiaries have implemented and maintained commercially reasonable physical, technical and administrative
controls, policies, procedures, and safeguards designed to maintain and protect their material confidential information and the
integrity, continuous operation, redundancy and security of all IT Systems and data, including “Personal Data,” used
in connection with their businesses. “Personal Data” means (i) a natural person’s name, street address,
telephone number, e-mail address, photograph, social security number or tax identification number, driver’s license number,
passport number, credit card number, bank information, or customer or account number; (ii) any information that constitutes
personal data, personal information, personally identifiable information or similar information under Privacy Laws (as hereinafter
defined); and (iii) any other piece of information that allows the identification of such natural person. There have been
no breaches, violations, outages or unauthorized uses of or accesses to same, except for those that have been remedied without
material cost or liability or the duty to notify any other person, nor any incidents under internal review or investigations relating
to the same. The Company and its subsidiaries are presently in material compliance with all applicable Privacy Laws (as hereinafter
defined), internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and
to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.

 

    16

     

    

 

(rr)            Compliance
with Data Privacy Laws. The Company and its subsidiaries are, and at all prior times were, in material compliance with all
applicable data privacy and security laws and regulations of any relevant jurisdiction, including without limitation, to the extent
applicable, the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for
Economic and Clinical Health Act (“HIPAA”), and the Company and its subsidiaries have taken commercially reasonable
actions to prepare to comply with, and since May 25, 2018, have been and currently are in compliance with, the European Union
General Data Protection Regulation (EU 2016/679) (collectively, the “Privacy Laws”). To ensure compliance with
the Privacy Laws, the Company and its subsidiaries have in place, comply with, and take commercially reasonable steps designed
to ensure compliance in all material respects with their policies and procedures relating to data privacy and security and the
collection, storage, use, disclosure, handling, and analysis of Personal Data (the “Policies”). The Company
and its subsidiaries have made all disclosures to users or customers required by the Privacy Laws, and none of such disclosures
made or contained in any Policy have, to the knowledge of the Company, been inaccurate or in violation of the Privacy Laws in any
material respect. The Company further certifies that neither it nor any subsidiary: (i) has received written notice of any
actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws, and has no knowledge
of any event or condition that would reasonably be expected to result in any such notice; (ii) is currently conducting or
paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any Privacy Law; or (iii) is
a party to any order, decree, or agreement from or with a governmental or regulatory authority or agency that imposes any obligation
or liability under any Privacy Law.

 

(ss)          Other
Underwriting Agreements. The Company is not a party to any agreement with an agent or underwriter for any other “at
the market” or continuous equity transaction.

 

(tt)            Compliance
with Health Care Laws. The Company and its subsidiaries are, and at all times have been, in compliance in all material respects
with all applicable Health Care Laws. For purposes of this Agreement, “Health Care Laws” means: (i) the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. Section 301 et seq.), the Public Health Service Act (42 U.S.C. Section 201
et seq.), and the regulations promulgated thereunder; (ii) all applicable federal, state, local and foreign health care fraud
and abuse laws, including, without limitation, the Anti-Kickback Statute (42 U.S.C. Section 1320a-7b(b)), the Civil False
Claims Act (31 U.S.C. Section 3729 et seq.), the criminal false statements law (42 U.S.C. Section 1320a-7b(a)), 18 U.S.C.
Sections 286 and 287, the health care fraud criminal provisions under HIPAA, the Stark Law (42 U.S.C. Section 1395nn), the
civil monetary penalties law (42 U.S.C. Section 1320a-7a), the exclusion law (42 U.S.C. Section 1320a-7), the Physician
Payments Sunshine Act (42 U.S.C. Section 1320-7h), and applicable laws governing government funded or sponsored healthcare
programs; (iii) HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (42 U.S.C. Section 17921
et seq.); (iv) the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation
Act of 2010; (v) licensure, quality, safety and accreditation requirements under applicable federal, state, local or foreign
laws or regulatory bodies; and (vi) all other local, state, federal, national, supranational and foreign laws, relating to
the regulation of the Company or its subsidiaries, and (vii) the directives and regulations promulgated pursuant to such
statutes and any state or non-U.S. counterpart thereof. Neither the Company nor any of its subsidiaries has received written notice
of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any court or arbitrator
or governmental or regulatory authority or third party alleging that any product operation or activity is in violation of any
Health Care Laws nor, to the Company’s knowledge, is any such claim, action, suit, proceeding, hearing, enforcement, investigation,
arbitration or other action threatened. The Company and its subsidiaries have filed, maintained or submitted all material reports,
documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required by any applicable
Health Care Laws, and all such reports, documents, forms, notices, applications, records, claims, submissions and supplements
or amendments were complete and accurate on the date filed in all material respects (or were corrected or supplemented by a subsequent
submission). Neither the Company nor any of its subsidiaries is a party to any corporate integrity agreements, monitoring agreements,
consent decrees, settlement orders, or similar agreements with or imposed by any governmental or regulatory authority. Additionally,
neither the Company, any of its subsidiaries nor, to the knowledge of the Company, any of their respective employees, officers,
directors, or agents has been excluded, suspended or debarred from participation in any U.S. federal health care program or human
clinical research or, to the knowledge of the Company, is subject to a governmental inquiry, investigation, proceeding, or other
similar action that could reasonably be expected to result in debarment, suspension, or exclusion.

 

    17

     

    

 

(uu)          Emerging
Growth Company Status. From the time of initial confidential submission of the Company’s first registration statement
to the Commission through the date hereof, the Company has been and is an “emerging growth company,” as defined in
Section 2(a) of the Securities Act (an “Emerging Growth Company”).

 

Any certificate signed
by any officer or representative of the Company or any of its subsidiaries and delivered to the Agent or counsel for the Agent
in connection with an issuance of Shares shall be deemed a representation and warranty by the Company to the Agent as to the matters
covered thereby on the date of such certificate.

 

The Company acknowledges
that the Agent and, for purposes of the opinions to be delivered pursuant to Section 4(o) hereof, counsel to the
Company and counsel to the Agent, will rely upon the accuracy and truthfulness of the foregoing representations, including any
officer’s certificate representations, and hereby consents to such reliance.

 

Section 3.     ISSUANCE
AND SALE OF COMMON SHARES

 

(a)            Sale
of Securities. On the basis of the representations, warranties and agreements herein contained, but subject to the terms and
conditions herein set forth, the Company and the Agent agree that the Company may from time to time seek to sell Shares through
the Agent, acting as sales agent, or directly to the Agent, acting as principal, as follows, with an aggregate Sales Price of up
to the Maximum Program Amount, based on and in accordance with Issuance Notices as the Company may deliver, during the Agency Period.

 

    18

     

    

 

(b)            Mechanics
of Issuances.

 

(i)                    Issuance
Notice. Upon the terms and subject to the conditions set forth herein, on any Trading Day during the Agency Period on which
the conditions set forth in ‎Section 5(a) and Section 5(b) shall have been satisfied, the
Company may exercise its right to request an issuance of Shares by delivering to the Agent an Issuance Notice; provided, however,
that (A) in no event may the Company deliver an Issuance Notice to the extent that (I) the sum of (x) the aggregate
Sales Price of the requested Issuance Amount, plus (y) the aggregate Sales Price of all Shares issued under all previous
Issuance Notices effected pursuant to this Agreement, would exceed the Maximum Program Amount; and (B) prior to delivery
of any Issuance Notice, the period set forth for any previous Issuance Notice shall have expired or been terminated. An Issuance
Notice shall be considered delivered on the Trading Day that it is received by email to the persons set forth in Schedule A hereto
and confirmed by the Company by telephone (including a voicemail message to the persons so identified), with the understanding
that, with adequate prior written notice, the Agent may modify the list of such persons from time to time.

 

(ii)                   Agent
Efforts. Upon the terms and subject to the conditions set forth in this Agreement, upon the receipt of an Issuance Notice,
the Agent will use its commercially reasonable efforts consistent with its normal sales and trading practices to place the Shares
with respect to which the Agent has agreed to act as sales agent, subject to, and in accordance with the information specified
in, the Issuance Notice, unless the sale of the Shares described therein has been suspended, cancelled or otherwise terminated
in accordance with the terms of this Agreement. For the avoidance of doubt, the parties to this Agreement may modify an Issuance
Notice at any time provided they both agree in writing to any such modification.

 

(iii)                  Method
of Offer and Sale. The Shares may be offered and sold (A) in negotiated transactions with the consent of the Company
or (B) by any other method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) under
the Securities Act, including block transactions, sales made directly on the Principal Market or sales made into any other existing
trading market of the Common Shares. Nothing in this Agreement shall be deemed to require either party to agree to the method
of offer and sale specified in the preceding sentence, and (except as specified in clause (A) above) the method of placement
of any Shares by the Agent shall be at the Agent’s discretion.

 

(iv)                  Confirmation
to the Company. If acting as sales agent hereunder, the Agent will provide written confirmation to the Company no later than
the opening of the Trading Day next following the Trading Day on which it has placed Shares hereunder setting forth the number
of shares sold on such Trading Day, the corresponding Sales Price and the Issuance Price payable to the Company in respect thereof.

 

(v)                   Settlement.
Each issuance of Shares will be settled on the applicable Settlement Date for such issuance of Shares and, subject to the provisions
of ‎Section 5, on or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically
transfer the Shares being sold by crediting the Agent’s or its designee’s account at The Depository Trust Company
through its Deposit/Withdrawal At Custodian (DWAC) System, or by such other means of delivery as may be mutually agreed upon by
the parties hereto and, upon receipt of such Shares, which in all cases shall be freely tradable, transferable, registered shares
in good deliverable form, the Agent will deliver, by wire transfer of immediately available funds, the related Issuance Price
in same day funds delivered to an account designated by the Company prior to the Settlement Date. The Company may sell Shares
to the Agent as principal at a price agreed upon at each relevant time Shares are sold pursuant to this Agreement (each, a “Time
of Sale”).

 

    19

     

    

 

 

(vi)                 Suspension
or Termination of Sales. Consistent with standard market settlement practices, the Company or the Agent may, upon notice to
the other party hereto in writing or by telephone (confirmed immediately by verifiable email), suspend any sale of Shares, and
the period set forth in an Issuance Notice shall immediately terminate; provided, however, that (A) such suspension and termination
shall not affect or impair either party’s obligations with respect to any Shares placed or sold hereunder prior to the receipt
of such notice; (B) if the Company suspends or terminates any sale of Shares after the Agent confirms such sale to the Company,
the Company shall still be obligated to comply with ‎Section 3(b)(v) with respect to such Shares; and (C) if
the Company defaults in its obligation to deliver Shares on a Settlement Date, the Company agrees that it will hold the Agent
harmless against any loss, claim, damage or expense (including, without limitation, penalties, interest and reasonable legal fees
and expenses), as incurred, arising out of or in connection with such default by the Company. The parties hereto acknowledge and
agree that, in performing its obligations under this Agreement, the Agent may borrow Common Shares from stock lenders in the event
that the Company has not delivered Shares to settle sales as required by subsection (v) above, and may use the Shares to
settle or close out such borrowings. The Company agrees that no such notice shall be effective against the Agent unless it is
made to the persons identified in writing by the Agent pursuant to Section 3(b)(i).

 

(vii)                No
Guarantee of Placement, Etc. The Company acknowledges and agrees that (A) there can be no assurance that the Agent will
be successful in placing Shares; (B) the Agent will incur no liability or obligation to the Company or any other Person if
it does not sell Shares; and (C) the Agent shall be under no obligation to purchase Shares on a principal basis pursuant
to this Agreement, except as otherwise specifically agreed by the Agent and the Company.

 

(viii)               Material
Non-Public Information. Notwithstanding any other provision of this Agreement, the Company and the Agent agree that the Company
shall not deliver any Issuance Notice to the Agent, and the Agent shall not be obligated to place any Shares, during any period
in which the Company is in possession of material non-public information.

 

(c)            Fees.
As compensation for services rendered, the Company shall pay to the Agent, on the applicable Settlement Date, the Selling Commission
for the applicable Issuance Amount (including with respect to any suspended or terminated sale pursuant to Section 3(b)(vi))
by the Agent deducting the Selling Commission from the applicable Issuance Amount.

 

    20

     

    

 

(d)             Expenses.
The Company agrees to pay all costs, fees and expenses incurred in connection with the performance of its obligations hereunder
and in connection with the transactions contemplated hereby, including without limitation (i) all expenses incident to the
issuance and delivery of the Shares (including all printing and engraving costs); (ii) all fees and expenses of the registrar
and transfer agent of the Shares; (iii) all necessary issue, transfer and other stamp taxes in connection with the issuance
and sale of the Shares; (iv) all fees and expenses of the Company’s counsel, independent public or certified public
accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation, printing, filing,
shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates
of experts), the Prospectus, any Free Writing Prospectus (as defined below) prepared by or on behalf of, used by, or referred to
by the Company, and all amendments and supplements thereto, and this Agreement; (vi) all filing fees, attorneys’ fees
and expenses incurred by the Company or the Agent in connection with qualifying or registering (or obtaining exemptions from the
qualification or registration of) all or any part of the Shares for offer and sale under the state securities or blue sky laws
or the provincial securities laws of Canada, and, if requested by the Agent, preparing and printing a “Blue Sky Survey”
or memorandum and a “Canadian wrapper”, and any supplements thereto, advising the Agent of such qualifications, registrations,
determinations and exemptions; (vii) the reasonable and documented fees and disbursements of the Agent’s counsel, including
the reasonable and documented fees and expenses of counsel for the Agent in connection with, FINRA review, if any, and approval
of the Agent’s participation in the offering and distribution of the Shares; (viii) the filing fees incident to FINRA
review, if any; (ix) the costs and expenses of the Company relating to investor presentations on any “road show”
undertaken in connection with the marketing of the offering of the Shares, including, without limitation, expenses associated with
the preparation or dissemination of any electronic road show, expenses associated with the production of road show slides and graphics,
fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company,
travel and lodging expenses of the representatives, employees and officers of the Company and of the Agent and any such consultants,
and the cost of any aircraft chartered in connection with the road show; and (x) the fees and expenses associated with listing
the Shares on the Principal Market. The fees and disbursements of Agent’s counsel pursuant to subsections (vi) and (vii) above
shall not exceed (A) $50,000 in connection with execution of this Agreement and (B) $15,000 in connection with each Triggering
Event Date (as defined below) on which the Company is required to provide a certificate pursuant to Section 4(o).

 

Section 4.       ADDITIONAL
COVENANTS

 

The Company covenants
and agrees with the Agent as follows, in addition to any other covenants and agreements made elsewhere in this Agreement:

 

(a)              Exchange
Act Compliance. During the Agency Period, the Company shall (i) file, on a timely basis, with the Commission all reports
and documents required to be filed under Section 13, 14 or 15 of the Exchange Act in the manner and within the time periods
required by the Exchange Act; and (ii) either (A) include in its quarterly reports on Form 10-Q and its annual reports
on Form 10-K, a summary detailing, for the relevant reporting period, (1) the number of Shares sold through the Agent
pursuant to this Agreement and (2) the net proceeds received by the Company from such sales or, in the Company’s sole
discretion, (B) prepare a prospectus supplement containing, or include in such other filing permitted by the Securities Act
or Exchange Act (each an “Interim Prospectus Supplement”), such summary information and, at least once a quarter
and subject to this Section 4, file such Interim Prospectus Supplement pursuant to Rule 424(b) under the
Securities Act (and within the time periods required by Rule 424(b) and Rule 430B under the Securities Act)); provided,
however, that prior notice is given to the Agent of any such filing of an Interim Prospectus Supplement.

 

    21

     

    

 

(b)              Securities
Act Compliance. After the date of this Agreement, the Company shall promptly advise the Agent in writing (i) of the receipt
of any comments of, or requests for additional or supplemental information from, the Commission; (ii) of the time and date
of any filing of any post-effective amendment to the Registration Statement, any Rule 462(b) Registration Statement or
any amendment or supplement to the Prospectus, or any Free Writing Prospectus; (iii) of the time and date that any post-effective
amendment to the Registration Statement or any Rule 462(b) Registration Statement becomes effective; (iv) of the
issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment
thereto, any Rule 462(b) Registration Statement or any amendment or supplement to the Prospectus or of any order preventing
or suspending the use of any Free Writing Prospectus or the Prospectus, or of any proceedings to remove, suspend or terminate from
listing or quotation the Common Shares from any securities exchange upon which they are listed for trading or included or designated
for quotation, or of the threatening or initiation of any proceedings for any of such purposes; and (v) of the Company losing
its status as an Emerging Growth Company as of the time the Company files with the Commission an annual report on Form 10-K.
If the Commission shall enter any such stop order at any time, the Company will use its reasonable best efforts to obtain the lifting
of such order as soon as practicable. Additionally, the Company agrees that it shall comply with the provisions of Rule 424(b) and
Rule 433, as applicable, under the Securities Act and will use its reasonable efforts to confirm that any filings made by
the Company under such Rule 424(b) or Rule 433 were filed in a timely manner with the Commission.

 

(c)             Amendments
and Supplements to the Prospectus and Other Securities Act Matters. If any event shall occur or condition exist as a result
of which it is necessary to amend or supplement the Prospectus so that the Prospectus does not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
when the Prospectus is delivered to a purchaser, not misleading, or if in the opinion of the Agent or counsel for the Agent it
is otherwise necessary to amend or supplement the Prospectus to comply with applicable law, including the Securities Act, the Company
agrees (subject to Section 4(d) and Section 4(f)) to promptly prepare, file with the Commission and
furnish at its own expense to the Agent, such amendments or supplements to the Prospectus so that the statements in the Prospectus
as so amended or supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances when the Prospectus is delivered to a purchaser, be
misleading or so that the Prospectus, as amended or supplemented, will comply with applicable law including the Securities Act.
Neither the Agent’s consent to, or delivery of, any such amendment or supplement shall constitute a waiver of any of the
Company’s obligations under Section 4(d) and Section 4(f). Notwithstanding the foregoing, the
Company shall not be required to file such amendment or supplement if there is no pending Issuance Notice and the Company believes
that it is in its best interests not to file such amendment or supplement.

 

(d)             Agent’s
Review of Proposed Amendments and Supplements. Prior to amending or supplementing the Registration Statement (including any
registration statement filed under Rule 462(b) under the Securities Act) or the Prospectus (excluding any amendment or
supplement through incorporation of any report filed under the Exchange Act), the Company shall furnish to the Agent for review,
a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of each such proposed amendment or supplement,
and the Company shall not file or use any such proposed amendment or supplement without the Agent’s prior consent, and to
file with the Commission within the applicable period specified in Rule 424(b) under the Securities Act any prospectus
required to be filed pursuant to such Rule.

 

    22

     

    

 

(e)              Use
of Free Writing Prospectus. Neither the Company nor the Agent has prepared, used, referred to or distributed, or will prepare,
use, refer to or distribute, without the other party’s prior written consent, any “written communication” that
constitutes a “free writing prospectus” as such terms are defined in Rule 405 under the Securities Act with respect
to the offering contemplated by this Agreement (any such free writing prospectus being referred to herein as a “Free Writing
Prospectus”).

 

(f)              Free
Writing Prospectuses. The Company shall furnish to the Agent for review, a reasonable amount of time prior to the proposed
time of filing or use thereof, a copy of each proposed free writing prospectus or any amendment or supplement thereto to be prepared
by or on behalf of, used by, or referred to by the Company and the Company shall not file, use or refer to any proposed free writing
prospectus or any amendment or supplement thereto without the Agent’s consent. The Company shall furnish to the Agent, without
charge, as many copies of any free writing prospectus prepared by or on behalf of, or used by the Company, as the Agent may reasonably
request. If at any time when a prospectus is required by the Securities Act (including, without limitation, pursuant to Rule 173(d))
to be delivered in connection with sales of the Shares (but in any event if at any time through and including the date of this
Agreement) there occurred or occurs an event or development as a result of which any free writing prospectus prepared by or on
behalf of, used by, or referred to by the Company conflicted or would conflict with the information contained in the Registration
Statement or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading,
the Company shall promptly amend or supplement such free writing prospectus to eliminate or correct such conflict or so that the
statements in such free writing prospectus as so amended or supplemented will not include an untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing
at such subsequent time, not misleading, as the case may be; provided, however, that prior to amending or supplementing any such
free writing prospectus, the Company shall furnish to the Agent for review, a reasonable amount of time prior to the proposed time
of filing or use thereof, a copy of such proposed amended or supplemented free writing prospectus and the Company shall not file,
use or refer to any such amended or supplemented free writing prospectus without the Agent’s consent.

 

(g)              Filing
of Agent Free Writing Prospectuses. The Company shall not take any action that would result in the Agent or the Company being
required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared
by or on behalf of the Agent that the Agent otherwise would not have been required to file thereunder.

 

    23

     

    

 

(h)            Copies
of Registration Statement and Prospectus. After the date of this Agreement through the last time that a prospectus is required
by the Securities Act (including, without limitation, pursuant to Rule 173(d)) to be delivered in connection with sales of
the Shares, the Company agrees to furnish the Agent with copies (which may be electronic copies) of the Registration Statement
and each amendment thereto, and with copies (which may be electronic copies) of the Prospectus and each amendment or supplement
thereto in the form in which it is filed with the Commission pursuant to the Securities Act or Rule 424(b) under the
Securities Act, both in such quantities as the Agent may reasonably request from time to time; and, if the delivery of a prospectus
is required under the Securities Act or under the blue sky or securities laws of any jurisdiction at any time on or prior to the
applicable Settlement Date for any period set forth in an Issuance Notice in connection with the offering or sale of the Shares
and if at such time any event has occurred as a result of which the Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made when such Prospectus is delivered, not misleading, or, if for any other reason
it is necessary during such same period to amend or supplement the Prospectus or to file under the Exchange Act any document incorporated
by reference in the Prospectus in order to comply with the Securities Act or the Exchange Act, to notify the Agent and to request
that the Agent suspend offers to sell Shares (and, if so notified, the Agent shall cease such offers as soon as practicable); and
if the Company decides to amend or supplement the Registration Statement or the Prospectus as then amended or supplemented, to
advise the Agent promptly by telephone (with confirmation in writing) and to prepare and cause to be filed promptly with the Commission
an amendment or supplement to the Registration Statement or the Prospectus as then amended or supplemented that will correct such
statement or omission or effect such compliance; provided, however, that if during such same period the Agent is required to deliver
a prospectus in respect of transactions in the Shares, the Company shall promptly prepare and file with the Commission such an
amendment or supplement.

 

(i)               Blue
Sky Compliance. The Company shall cooperate with the Agent and counsel for the Agent to qualify or register the Shares for
sale under (or obtain exemptions from the application of) the state securities or blue sky laws or Canadian provincial securities
laws of those jurisdictions designated by the Agent, shall comply with such laws and shall continue such qualifications, registrations
and exemptions in effect so long as required for the distribution of the Shares. The Company shall not be required to qualify as
a foreign corporation or to take any action that would subject it to general service of process in any such jurisdiction where
it is not presently qualified or where it would be subject to taxation as a foreign corporation. The Company will advise the Agent
promptly of the suspension of the qualification or registration of (or any such exemption relating to) the Shares for offering,
sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the
issuance of any order suspending such qualification, registration or exemption, the Company shall use its reasonable best efforts
to obtain the withdrawal thereof as soon as practicable.

 

(j)               Earnings
Statement. As soon as practicable, the Company will make generally available to its security holders and to the Agent an earnings
statement (which need not be audited) covering a period of at least twelve months beginning with the first fiscal quarter of the
Company occurring after the date of this Agreement which shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 under the Securities Act.

 

(k)              Listing;
Reservation of Shares. (a)  The Company will use its reasonable best efforts to maintain the listing of the Shares on
the Principal Market; and (b) the Company will reserve and keep available at all times, free of preemptive rights, Shares
for the purpose of enabling the Company to satisfy its obligations under this Agreement.

 

(l)              Transfer
Agent. The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Shares.

 

    24

     

    

 

(m)            Due
Diligence. During the term of this Agreement, the Company will reasonably cooperate with any reasonable due diligence review
conducted by the Agent in connection with the transactions contemplated hereby, including, without limitation, providing information
and making available documents and senior corporate officers, during normal business hours and at the Company’s principal
offices, as the Agent may reasonably request from time to time.

 

(n)             Representations
and Warranties. The Company acknowledges that each delivery of an Issuance Notice and each delivery of Shares on a Settlement
Date shall be deemed to be (i) an affirmation to the Agent that the representations and warranties of the Company contained
in or made pursuant to this Agreement are true and correct as of the date of such Issuance Notice or of such Settlement Date, as
the case may be, as though made at and as of each such date, except as may be disclosed in the Prospectus (including any documents
incorporated by reference therein and any supplements thereto); and (ii) an undertaking that the Company will advise the Agent
if any of such representations and warranties will not be true and correct as of the Settlement Date for the Shares relating to
such Issuance Notice, as though made at and as of each such date (except that such representations and warranties shall be deemed
to relate to the Registration Statement and the Prospectus as amended and supplemented relating to such Shares).

 

(o)             Deliverables
at Triggering Event Dates; Certificates. The Company agrees that on or prior to the date of the first Issuance Notice and,
during the term of this Agreement after the date of the first Issuance Notice, upon:

 

(A)                           the
filing of the Prospectus or the amendment or supplement of any Registration Statement or Prospectus (other than a prospectus supplement
relating solely to an offering of securities other than the Shares or a prospectus filed pursuant to Section 4(a)(ii)(B)),
by means of a post-effective amendment, sticker or supplement, but not by means of incorporation of documents by reference into
the Registration Statement or Prospectus;

 

(B)                           the
filing with the Commission of an annual report on Form 10-K or a quarterly report on Form 10-Q (including any Form 10-K/A
or Form 10-Q/A containing amended financial information or a material amendment to the previously filed annual report on
Form 10-K or quarterly report on Form 10-Q), in each case, of the Company; or

 

(C)                           the
filing with the Commission of a current report on Form 8-K of the Company containing amended financial information (other
than information “furnished” pursuant to Item 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item
8.01 of Form 8-K relating to reclassification of certain properties as discontinued operations in accordance with Statement
of Financial Accounting Standards No. 144) that is material to the offering of securities of the Company in the Agent’s
reasonable discretion;

 

    25

     

    

 

(any such event, a
 “Triggering Event Date”), the Company shall furnish the Agent (but in the case of clause (C) above only
if the Agent reasonably determines that the information contained in such current report on Form 8-K of the Company is material)
with a certificate as of the Triggering Event Date, in the form and substance satisfactory to the Agent and its counsel, substantially
similar to the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement
and the Prospectus as amended or supplemented, (A) confirming that the representations and warranties of the Company contained
in this Agreement are true and correct, (B) confirming that the Company has performed all of its obligations hereunder to
be performed on or prior to the date of such certificate and as to the matters set forth in Section 5(a)(iii) hereof,
and (C) containing any other certification that the Agent shall reasonably request. The requirement to provide a certificate
under this Section 4(o) shall be waived for any Triggering Event Date occurring at a time when no Issuance Notice
is pending or a suspension is in effect, which waiver shall continue until the earlier to occur of the date the Company delivers
instructions for the sale of Shares hereunder (which for such calendar quarter shall be considered a Triggering Event Date) and
the next occurring Triggering Event Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Shares following
a Triggering Event Date when a suspension was in effect and did not provide the Agent with a certificate under this Section 4(o),
then before the Company delivers the instructions for the sale of Shares or the Agent sells any Shares pursuant to such instructions,
the Company shall provide the Agent with a certificate in conformity with this Section 4(o) dated as of the date
that the instructions for the sale of Shares are issued.

 

(p)             Legal
Opinions. On or prior to the date of the first Issuance Notice and on or prior to each Triggering Event Date with respect to
which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable
and excluding the date of this Agreement, a negative assurances letter and the written legal opinion of Mintz Levin, Cohn, Ferris,
Glovsky and Popeo, P.C., counsel to the Company, Cooley LLP, counsel to the Agent, Servilla-Whitney LLC, intellectual property
counsel to the Company, and Morgan, Lewis & Bockius LLP, intellectual property counsel to the Company, each dated the
date of delivery, in form and substance reasonably satisfactory to the Agent and its counsel, substantially similar to the form
previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement and the Prospectus
as then amended or supplemented, shall be furnished to the Agent; provided, however, that the Company shall be required
to furnish no more than one of each such opinion and negative assurance letter hereunder in connection with the filing of each
of its annual reports on Form 10-K; provided further that the negative assurances letter and written legal opinion
of Servilla-Whitney LLC and Morgan, Lewis & Bockius LLP will not be required in connection with the filing of a quarterly
report on Form 10-Q or Form 10-Q/A. In lieu of such opinions for subsequent periodic filings, in the discretion of the
Agent, the Company may furnish a reliance letter from such counsel to the Agent, permitting the Agent to rely on a previously delivered
opinion letter, modified as appropriate for any passage of time or Triggering Event Date (except that statements in such prior
opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented as of such Triggering
Event Date).

 

(q)             Comfort
Letter. On or prior to the date of the first Issuance Notice and on or prior to each Triggering Event Date with respect to
which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable
and excluding the date of this Agreement, the Company shall cause KPMG LLP, the independent registered public accounting firm who
has audited the financial statements included or incorporated by reference in the Registration Statement, to furnish the Agent
a comfort letter, dated the date of delivery, in form and substance reasonably satisfactory to the Agent and its counsel, substantially
similar to the form previously provided to the Agent and its counsel; provided, however, that any such comfort letter will only
be required on the Triggering Event Date specified to the extent that it contains financial statements filed with the Commission
under the Exchange Act and incorporated or deemed to be incorporated by reference into a Prospectus. If requested by the Agent,
the Company shall also cause a comfort letter to be furnished to the Agent within ten (10) Trading Days of the date of occurrence
of any material transaction or event requiring the filing of a current report on Form 8-K containing material amended financial
information of the Company, including the restatement of the Company’s financial statements. The Company shall be required
to furnish no more than one comfort letter hereunder per each filing of an annual report on Form 10-K or a quarterly report
on Form 10-Q.

 

    26

     

    

 

(r)            Secretary’s
Certificate. On or prior to the date of the first Issuance Notice and on or prior to each Triggering Event Date with respect
to which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable
and excluding the date of this Agreement, the Company shall furnish the Agent a certificate executed by the Secretary of the Company,
signing in such capacity, dated the date of delivery (i) certifying that attached thereto are true and complete copies of
the resolutions duly adopted by the Board of Directors of the Company authorizing the execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby (including, without limitation, the issuance of the Shares pursuant
to this Agreement), which authorization shall be in full force and effect on and as of the date of such certificate, (ii) certifying
and attesting to the office, incumbency, due authority and specimen signatures of each Person who executed this Agreement for or
on behalf of the Company, and (iii) containing any other certification that the Agent shall reasonably request.

 

(s)            Agent’s
Own Account; Clients’ Account. The Company consents to the Agent trading, in compliance with applicable law, in the Common
Shares for the Agent’s own account and for the account of its clients at the same time as sales of the Shares occur pursuant
to this Agreement.

 

(t)            Investment
Limitation. The Company shall not invest, or otherwise use the proceeds received by the Company from its sale of the Shares
in such a manner as would require the Company or any of its subsidiaries to register as an investment company under the Investment
Company Act.

 

(u)            Market
Activities. The Company will not take, directly or indirectly, any action designed to or that might be reasonably expected
to cause or result in stabilization or manipulation of the price of the Shares or any other reference security, whether to facilitate
the sale or resale of the Shares or otherwise, and the Company will, and shall use its reasonable best efforts to cause each of
its affiliates to, comply with all applicable provisions of Regulation M. If the limitations of Rule 102 of Regulation M (“Rule 102”)
do not apply with respect to the Shares or any other reference security pursuant to any exception set forth in Section (d) of
Rule 102, then promptly upon notice from the Agent (or, if later, at the time stated in the notice), the Company will, and
shall use its reasonable best efforts to cause each of its affiliates to, comply with Rule 102 as though such exception were
not available but the other provisions of Rule 102 (as interpreted by the Commission) did apply. The Company shall promptly
notify the Agent if it no longer meets the requirements set forth in Section (d) of Rule 102.

 

    27

     

    

 

(v)            Notice
of Other Sale. Without the written consent of the Agent, the Company will not, directly or indirectly, offer to sell, sell,
contract to sell, grant any option to sell or otherwise dispose of any Common Shares or securities convertible into or exchangeable
for Common Shares (other than Shares hereunder), warrants or any rights to purchase or acquire Common Shares, or effect a reverse
stock split, recapitalization, share consolidation, reclassification or similar transaction affecting the outstanding Common Shares,
during the period beginning on the third Trading Day immediately prior to the date on which any Issuance Notice is delivered to
the Agent hereunder and ending on the third Trading Day immediately following the Settlement Date with respect to Shares sold pursuant
to such Issuance Notice; and will not directly or indirectly enter into any other “at the market” or continuous equity
transaction offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Shares (other than
the Shares offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Shares, warrants or any
rights to purchase or acquire, Common Shares prior to the termination of this Agreement; provided, however, that such restrictions
will not be required in connection with the Company’s (i) issuance or sale of Common Shares, options to purchase Common
Shares or Common Shares issuable upon the exercise of options or other equity awards pursuant to any employee or director share
option, incentive or benefit plan, share purchase or ownership plan, long-term incentive plan, dividend reinvestment plan, inducement
award under Nasdaq rules or other compensation plan of the Company or its subsidiaries, as in effect on the date of this Agreement,
(ii) issuance or sale of Common Shares issuable upon exchange, conversion or redemption of securities or the exercise or vesting
of warrants, options or other equity awards outstanding at the date of this Agreement, (iii) issuance or sale of Common Shares
or securities convertible into or exchangeable for Common Shares as consideration for mergers, acquisitions, other business combinations,
joint ventures, collaborations, licensing arrangements or strategic alliances occurring after the date of this Agreement which
are not used for capital raising purposes, provided that the aggregate number of Common Shares issued, or issuable pursuant
to the conversion or exchange of securities convertible into or exchangeable for Common Shares, under this subsection (iii) does
not exceed 10% of the aggregate number of Common Shares outstanding immediately prior to giving effect to such issuance or sale
and (iv) modification of any outstanding options, warrants of any rights to purchase or acquire Common Shares.

 

Section 5.       CONDITIONS
TO DELIVERY OF ISSUANCE NOTICES AND TO SETTLEMENT

 

(a)             Conditions
Precedent to the Right of the Company to Deliver an Issuance Notice and the Obligation of the Agent to Sell Shares.
The right of the Company to deliver an Issuance Notice hereunder is subject to the satisfaction, on the date of delivery of such
Issuance Notice, and the obligation of the Agent to use its commercially reasonable efforts to place Shares during the applicable
period set forth in the Issuance Notice is subject to the satisfaction, on each Trading Day during the applicable period set forth
in the Issuance Notice, of each of the following conditions:

 

(i)                           Accuracy
of the Company’s Representations and Warranties; Performance by the Company. The Company shall have delivered the certificate
required to be delivered pursuant to Section 4(o) on or before the date on which delivery of such certificate
is required pursuant to Section 4(o). The Company shall have performed, satisfied and complied with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to
such date, including, but not limited to, the covenants contained in ‎Section 4(p), Section 4(q) and
Section 4(r).

  

    	 	 28	 

     

    

 

(ii)                           No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby that prohibits or directly and materially adversely affects any of the transactions
contemplated by this Agreement, and no proceeding shall have been commenced that may have the effect of prohibiting or materially
adversely affecting any of the transactions contemplated by this Agreement.

 

(iii)                          Material
Adverse Changes. Except as disclosed in the Prospectus and the Time of Sale Information, (a) in the judgment of the Agent
there shall not have occurred any Material Adverse Change; and (b) there shall not have occurred any downgrading, nor shall
any notice have been received by the Company of any intended or potential downgrading or of any review for a possible change that
does not indicate the direction of the possible change, in the rating accorded any securities of the Company or any of its subsidiaries
by any “nationally recognized statistical rating organization” as such term is defined for purposes of Section 3(a)(62)
of the Exchange Act.

 

(iv)                         No
Suspension of Trading in or Delisting of Common Shares; Other Events. The trading of the Common Shares (including without
limitation the Shares) shall not have been suspended by the Commission, the Principal Market or FINRA and the Common Shares (including
without limitation the Shares) shall have been approved for listing or quotation on and shall not have been delisted from the
Nasdaq Stock Market, the New York Stock Exchange or any of their constituent markets. There shall not have occurred (and be continuing
in the case of occurrences under clauses (i) and (ii) below) any of the following: (i) trading or quotation in
any of the Company’s securities shall have been suspended or limited by the Commission or by the Principal Market or trading
in securities generally on either the Principal Market shall have been suspended or limited, or minimum or maximum prices shall
have been generally established on any of such stock exchanges by the Commission or FINRA; (ii) a general banking moratorium
shall have been declared by any of federal or New York, authorities; or (iii) there shall have occurred any outbreak or escalation
of national or international hostilities or any crisis or calamity, or any change in the United States or international financial
markets, or any substantial change or development involving a prospective substantial change in United States’ or international
political, financial or economic conditions, as in the judgment of the Agent is material and adverse and makes it impracticable
to market the Shares in the manner and on the terms described in the Prospectus or to enforce contracts for the sale of securities.

 

(b)            Documents
Required to be Delivered on each Issuance Notice Date. The Agent’s obligation to use its commercially reasonable efforts
to place Shares hereunder shall additionally be conditioned upon the delivery to the Agent on or before the Issuance Notice Date
of a certificate in form and substance reasonably satisfactory to the Agent, executed by the Chief Executive Officer, President
or Chief Financial Officer of the Company, to the effect that all conditions to the delivery of such Issuance Notice shall have
been satisfied as at the date of such certificate as required to be delivered pursuant to Section 4(o) (which
certificate shall not be required if the foregoing representations shall be set forth in the Issuance Notice).

 

    29

     

    

 

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

 

(d)             Agent
Counsel Legal Opinion. Agent shall have received from Cooley LLP, counsel for Agent, such opinion or opinions, on or before
the date on which the delivery of the Company counsel legal opinion is required pursuant to Section 4(p), with respect
to such matters as Agent may reasonably require, and the Company shall have furnished to such counsel such documents as they reasonably
request for enabling them to pass upon such matters.

 

Section 6.       INDEMNIFICATION
AND CONTRIBUTION

 

(a)              Indemnification
of the Agent. The Company agrees to indemnify and hold harmless the Agent, its officers and employees, and each person, if
any, who controls the Agent within the meaning of the Securities Act or the Exchange Act against any loss, claim, damage, liability
or expense, as incurred, to which the Agent or such officer, employee or controlling person may become subject, under the Securities
Act, the Exchange Act, other federal or state statutory law or regulation, or the laws or regulations of foreign jurisdictions
where Shares have been offered or sold or at common law or otherwise (including in settlement of any litigation), insofar as such
loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based upon
(i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment
thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or the omission
or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not
misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any Free Writing Prospectus
that the Company has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of the Securities Act
or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and to reimburse
the Agent and each such officer, employee and controlling person for any and all expenses (including the fees and disbursements
of counsel chosen by the Agent) as such expenses are reasonably incurred and documented by the Agent or such officer, employee
or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage,
liability, expense or action; provided, however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage,
liability or expense to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company
by the Agent expressly for use in the Registration Statement, any such Free Writing Prospectus or the Prospectus (or any amendment
or supplement thereto), it being understood and agreed that the only such information furnished by the Agent to the Company consists
of the information described in subsection (b) below. The indemnity agreement set forth in this ‎Section 6(a) shall
be in addition to any liabilities that the Company may otherwise have.

 

    30

     

    

 

(b)             Indemnification
of the Company, its Directors and Officers. The Agent agrees to indemnify and hold harmless the Company, each of its directors,
each of its officers who signed the Registration Statement and each person, if any, who controls the Company within the meaning
of the Securities Act or the Exchange Act against any loss, claim, damage, liability or expense, as incurred, to which the Company
or any such director, officer or controlling person may become subject, under the Securities Act, the Exchange Act, or other federal
or state statutory law or regulation, or the laws or regulations of foreign jurisdictions where Shares have been offered or sold
or at common law or otherwise (including in settlement of any litigation), that arises out of or is based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including
any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or the omission or alleged omission
therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any
untrue statement or alleged untrue statement of a material fact contained in any Free Writing Prospectus that the Company has used,
referred to or filed, or is required to file, pursuant to Rule 433(d) of the Securities Act or the Prospectus (or any
amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading; but, for each of (i) and
(ii) above, only to the extent arising out of or based upon any untrue statement or alleged untrue statement or omission or
alleged omission made in reliance upon and in conformity with written information furnished to the Company by the Agent expressly
for use in the Registration Statement, any such Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto),
it being understood and agreed that the only such information furnished by the Agent to the Company consists of the information
set forth in the first sentence of the ninth paragraph under the caption “Plan of Distribution” in the Prospectus,
and to reimburse the Company and each such director, officer and controlling person for any and all expenses (including the fees
and disbursements of one counsel chosen by the Company) as such expenses are reasonably incurred by the Company or such officer,
director or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim,
damage, liability, expense or action. The indemnity agreement set forth in this Section 6(b) shall be in addition
to any liabilities that the Agent or the Company may otherwise have.

 

(c)             Notifications
and Other Indemnification Procedures. Promptly after receipt by an indemnified party under this ‎Section 6
of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an
indemnifying party under this ‎Section 6, notify the indemnifying party in writing of the commencement thereof,
but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified
party for contribution or otherwise than under the indemnity agreement contained in this ‎Section 6 or to the extent
it is not prejudiced as a proximate result of such failure. In case any such action is brought against any indemnified party and
such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to
participate in, and, to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written
notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume
the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any
such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded
that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting the defense of
any such action or that there may be legal defenses available to it and/or other indemnified parties which are different from or
additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate
counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified
party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s
election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will
not be liable to such indemnified party under this Section 6 for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate
counsel in accordance with the proviso to the preceding sentence (it being understood, however, that the indemnifying party shall
not be liable for the fees and expenses of more than one separate counsel (together with local counsel), representing the indemnified
parties who are parties to such action), which counsel (together with any local counsel) for the indemnified parties shall be selected
by the indemnified party (in the case of counsel for the indemnified parties referred to in ‎Section 6(a) and
Section 6(b) above), (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified
party to represent the indemnified party within a reasonable time after notice of commencement of the action or (iii) the
indemnifying party has authorized in writing the employment of counsel for the indemnified party at the expense of the indemnifying
party, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party and shall be paid
as they are incurred.

 

    31

     

    

 

(d)             Settlements.
The indemnifying party under this ‎Section 6 shall not be liable for any settlement of any proceeding effected
without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying
party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement
or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party
to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 6(c) hereof, the
indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if
(i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request; and
(ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the
date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement,
compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which any
indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party,
unless such settlement, compromise or consent includes an unconditional release of such indemnified party from all liability on
claims that are the subject matter of such action, suit or proceeding.

 

(e)             Contribution.
If the indemnification provided for in this ‎Section 6 is for any reason held to be unavailable to or otherwise
insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred
to therein, then each indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified party, as
incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company, on the one hand, and the Agent, on the other hand, from
the offering of the Shares pursuant to this Agreement; or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Company, on the one hand, and the Agent, on the other hand, in connection with
the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations. The relative benefits received by the Company, on the one hand, and the Agent, on the other hand, in
connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions
as the total gross proceeds from the offering of the Shares (before deducting expenses) received by the Company bear to the total
commissions received by the Agent. The relative fault of the Company, on the one hand, and the Agent, on the other hand, shall
be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or the Agent, on
the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

 

    32

     

    

 

The amount paid or
payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include,
subject to the limitations set forth in ‎Section 6(c), any legal or other fees or expenses reasonably incurred
by such party in connection with investigating or defending any action or claim. The provisions set forth in ‎Section 6(c) with
respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this ‎Section 6(e);
provided, however, that no additional notice shall be required with respect to any action for which notice has been given under
 ‎Section 6(c) for purposes of indemnification.

 

The Company and the
Agent agree that it would not be just and equitable if contribution pursuant to this ‎Section 6(e) were determined
by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred
to in this ‎‎Section 6(e).

 

Notwithstanding the
provisions of this ‎‎Section 6(e), the Agent shall not be required to contribute any amount in excess of the
Selling Commission received by the Agent in connection with the offering contemplated hereby. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. For purposes of this ‎‎Section 6(e), each officer and employee
of the Agent and each person, if any, who controls the Agent within the meaning of the Securities Act or the Exchange Act shall
have the same rights to contribution as the Agent, and each director of the Company, each officer of the Company who signed the
Registration Statement, and each person, if any, who controls the Company within the meaning of the Securities Act and the Exchange
Act shall have the same rights to contribution as the Company.

 

Section 7.       TERMINATION &
SURVIVAL

 

(a)              Term.
Subject to the provisions of this ‎Section 7, the term of this Agreement shall continue from the date of this
Agreement until the end of the Agency Period, unless earlier terminated by the parties to this Agreement pursuant to this ‎Section 7.

 

    33

     

    

 

(b)             Termination;
Survival Following Termination.

 

(i)               Either
party may terminate this Agreement prior to the end of the Agency Period, by giving written notice as required by this Agreement,
upon ten (10) Trading Days’ notice to the other party; provided that, (A) if the Company terminates this Agreement
after the Agent confirms to the Company any sale of Shares, the Company shall remain obligated to comply with ‎Section 3(b)(v) with
respect to such Shares and (B) ‎Section 2, ‎Section 3(d), Section 6, Section 7
and Section 8 shall survive termination of this Agreement. If termination shall occur prior to the Settlement
Date for any sale of Shares, such sale shall nevertheless settle in accordance with the terms of this Agreement.

 

(ii)              In
addition to the survival provision of ‎Section 7(b)(i), the respective indemnities, agreements, representations,
warranties and other statements of the Company, of its officers and of the Agent set forth in or made pursuant to this Agreement
will remain in full force and effect, regardless of any investigation made by or on behalf of the Agent or the Company or any
of its or their partners, officers or directors or any controlling person, as the case may be, and, anything herein to the contrary
notwithstanding, will survive delivery of and payment for the Shares sold hereunder and any termination of this Agreement.

 

Section 8.       MISCELLANEOUS

 

(a)              Press
Releases and Disclosure. The Company may issue a press release describing the material terms of the transactions contemplated
hereby as soon as practicable following the date of this Agreement, and may file with the Commission a Current Report on Form 8
K, with this Agreement attached as an exhibit thereto, describing the material terms of the transactions contemplated hereby,
and the Company shall consult with the Agent prior to making such disclosures, and the parties hereto shall use all commercially
reasonable efforts, acting in good faith, to agree upon a text for such disclosures that is reasonably satisfactory to all parties
hereto. No party hereto shall issue thereafter any press release or like public statement (including, without limitation, any
disclosure required in reports filed with the Commission pursuant to the Exchange Act) related to this Agreement or any of the
transactions contemplated hereby without the prior written approval of the other party hereto, except as may be necessary or appropriate
in the reasonable opinion of the party seeking to make disclosure to comply with the requirements of applicable law or stock exchange
rules. If any such press release or like public statement is so required, the party making such disclosure shall consult with
the other party prior to making such disclosure, and the parties shall use all commercially reasonable efforts, acting in good
faith, to agree upon a text for such disclosure that is reasonably satisfactory to all parties hereto.

 

(b)              No
Advisory or Fiduciary Relationship. The Company acknowledges and agrees that (i) the transactions contemplated by this
Agreement, including the determination of any fees, are arm’s-length commercial transactions between the Company and the
Agent, (ii) when acting as a principal under this Agreement, the Agent is and has been acting solely as a principal and is
not the agent or fiduciary of the Company, or its stockholders, creditors, employees or any other party, (iii) the Agent
has not assumed nor will assume an advisory or fiduciary responsibility in favor of the Company with respect to the transactions
contemplated hereby or the process leading thereto (irrespective of whether the Agent has advised or is currently advising the
Company on other matters) and the Agent does not have any obligation to the Company with respect to the transactions contemplated
hereby except the obligations expressly set forth in this Agreement, (iv) the Agent and its affiliates may be engaged in
a broad range of transactions that involve interests that differ from those of the Company, and (v) the Agent has not provided
any legal, accounting, regulatory or tax advice with respect to the transactions contemplated hereby and the Company has consulted
its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.

 

    34

     

    

 

(c)              Research
Analyst Independence. The Company acknowledges that the Agent’s research analysts and research departments are required
to and should be independent from their respective investment banking divisions and are subject to certain regulations and internal
policies, and as such the Agent’s research analysts may hold views and make statements or investment recommendations and/or
publish research reports with respect to the Company or the offering that differ from the views of their respective investment
banking divisions. The Company understands that the Agent is a full service securities firm and as such from time to time, subject
to applicable securities laws, may effect transactions for its own account or the account of its customers and hold long or short
positions in debt or equity securities of the companies that may be the subject of the transactions contemplated by this Agreement.

 

(d)              Notices.
All communications hereunder shall be in writing and shall be mailed, hand delivered or telecopied and confirmed to the parties
hereto as follows:

 

		If to the Agent:	 

 

		Jefferies LLC	 
	 	520 Madison Avenue	 
	 	New York, NY 10022	 
	 	Facsimile: (646) 619-4437	 
	 	Attention: General Counsel	 

 

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

 

	 	Cooley LLP	 
	 	55 Hudson Yards	 
	 	New York, NY 10001	 
	 	Facsimile: (212) 479-6275	 
	 	Attention: Daniel I. Goldberg, Esq.	 

 

	 	If to the Company:	 

 

	 	Bellerophon Therapeutics, Inc.	 
	 	184 Liberty Corner Road, Suite 302	 
	 	Warren, New Jersey 07059	 
	 	Attention: Fabian Tenenbaum, Chief Executive
Officer	 

 

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

 

	 	Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C.	 
	 	666 Third Avenue	 
	 	New York, New York 10017	 
	 	Facsimile: 212-983-3115	 
	 	Attention: Jeffrey Schultz, Esq.	 

 

    35

     

    

 

Any party hereto may change the address
for receipt of communications by giving written notice to the others in accordance with this Section 8(d).

 

(e)              Successors.
This Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of the employees, officers
and directors and controlling persons referred to in Section 6, and in each case their respective successors, and no
other person will have any right or obligation hereunder. The term “successors” shall not include any purchaser of
the Shares as such from the Agent merely by reason of such purchase.

 

(f)              Partial
Unenforceability. The invalidity or unenforceability of any Article, Section, paragraph or provision of this Agreement shall
not affect the validity or enforceability of any other Article, Section, paragraph or provision hereof. If any Article, Section,
paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to
be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

 

(g)              Governing
Law Provisions. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New
York applicable to agreements made and to be performed in such state. Any legal suit, action or proceeding arising out of or based
upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States of America
located in the Borough of Manhattan in the City of New York or the courts of the State of New York in each case located in the
Borough of Manhattan in the City of New York (collectively, the “Specified Courts”), and each party irrevocably
submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such
court, as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process,
summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any
suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to
the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and
agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been
brought in an inconvenient forum.

 

(h)             General
Provisions. This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written
or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument, and may be delivered by facsimile transmission or by electronic delivery of a
portable document format (PDF) file. This Agreement may not be amended or modified unless in writing by all of the parties hereto,
and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to
benefit. The Article and Section headings herein are for the convenience of the parties only and shall not affect the
construction or interpretation of this Agreement.

 

[Signature Page Immediately Follows]

 

    36

     

    

 

If the foregoing is
in accordance with your understanding of our agreement, kindly sign and return to the Company the enclosed copies hereof, whereupon
this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms

 

		Very truly yours,
	 	 	 
	 	Bellerophon
Therapeutics, Inc. 

	 	 	 
	 	By:	 /s/ Fabian Tenenbaum
	 	 	Name:  Fabian Tenenbaum
	 	 	Title: Chief Executive Officer

 

The foregoing Agreement
is hereby confirmed and accepted by the Agent in New York, New York as of the date first above written.

 

	JEFFERIES LLC	 
	 	 	 
	By:	/s/ Matthew Kim	 
	 	Name: Matthew Kim	 
	 	Title: Managing Director

          Joint US Head of Biopharmaceuticals	 

 

[Signature Page to
Open Market Sale AgreementSM]

 

    

     

    

 

EXHIBIT A

 

ISSUANCE NOTICE

 

[Date]

 

Jefferies LLC

 

520 Madison Avenue

 

New York, New York 10022

 

Attn: [__________]

 

Reference is made to the Open Market Sale
AgreementSM between Bellerophon Therapeutics, Inc. (the “Company”) and Jefferies LLC (the “Agent”)
dated as of July 17, 2020. The Company confirms that all conditions to the delivery of this Issuance Notice are satisfied
as of the date hereof.

 

Date of Delivery of Issuance Notice (determined pursuant to
Section 3(b)(i)):

 

_______________________

 

Issuance Amount (equal to the total Sales Price for such Shares):

 

		 	$
	 	 	 
	Number of days in selling period:	 	 
	 	 	 
	First date of selling period:	 	 
	 	 	 
	Last date of selling period:	 	 
	 	 	 
	Settlement Date(s) if other than standard T+2 settlement:	 	 

 

Floor Price Limitation (in no event less than $1.00 without
the prior written consent of the Agent, which consent may be withheld in the Agent’s sole discretion): $ ____ per share

 

	Comments:	 

 

		By:	 
	 	 	Name:
	 	 	Title:

 

    

     

    

 

Schedule A

 

Notice Parties

 

The Company

 

Fabian Tenenbaum

 

Assaf Korner

 

The Agent

 

Michael Magarro

 

Don Lynaugh

 

James O’Hara

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}]]