Document:

Exhibit 10.4

 

 

 

NOTE

 

	Date	4/13/2020	 
	Note Amount	$176,585.00	 
	Borrower	Hepion
    Pharmaceuticals, Inc.	 
	Lender	JPMorgan
    Chase Bank, N.A.	 

 

	1.	PROMISE TO PAY.

 

Borrower promises to pay to the order of Lender
the Note Amount, plus interest on the unpaid principal balance at the Note Rate, and all other amounts required by this Note.

 

	2.	DEFINITIONS.

 

"CARES Act" means the Coronavirus Aid,
Relief, and Economic Security Act.

 

"Deferral Period" means the six month period
beginning on the date of this Note.

 

"Loan" means the loan evidenced by this
Note.

 

"Maturity Date" means twenty-four (24)
months from the date of this Note.

 

"Note Rate" means an interest rate
of 0.98% Per Annum and interest shall accrue on the unpaid principal balance computed on the basis of the actual number of days
elapsed in a year of 360 days.

 

"Per Annum" means for a year deemed to
be comprised of 360 days.

 

"SBA" means the Small Business Administration,
an Agency of the United States of America.

 

	3.	CONDITIONS PRECEDENT TO FUNDING OF LOAN.

 

Before the funding of the Loan, the following conditions
must be satisfied:

 

A.    Lender has
approved the request for the Loan.

 

B.    Lender has
received approval from SBA to fund the Loan.

 

	4.	PAYMENT TERMS.

 

Borrower will pay this Note as follows:

 

	 	A.	No Payments During Deferral Period. There shall be no payments due by Borrower during the Deferral Period.

 

     

     

    

 

		B.	Principal and Interest Payments. Commencing one month after the expiration of the Deferral Period, and continuing on the same
day of each month thereafter until the Maturity Date, Borrower shall pay to Lender monthly payments of principal and interest,
each in such equal amount required to fully amortize the principal amount outstanding on the Note on the last day of the Deferral
Period by the Maturity Date.
	 	 	 
		C.	Maturity Date. On the Maturity Date, Borrower shall pay to Lender any and all unpaid principal
plus accrued and unpaid interest plus interest accrued during the Deferral Period. This Note will mature on the Maturity Date.
	 	 	 
		D.	If any payment is due on a date for which there is no numerical equivalent in a particular calendar
month then it shall be due on the last day of such month. If any payment is due on a day that is not a Business Day, the payment
will be made on the next Business Day. The term "Business Day" means a day other than a Saturday, Sunday or any other
day on which national banking associations are authorized to be closed.
	 	 	 
		E.	Payments shall be allocated among principal and interest at the discretion of Lender unless otherwise
agreed or required by applicable law. Notwithstanding, in the event the Loan, or any portion thereof, is forgiven pursuant to the
Paycheck Protection Program under the federal CARES Act, the amount so forgiven shall be applied to principal.
	 	 	 
		F.	Borrower may prepay this Note at any time without payment of any premium.

 

	5.	CERTIFICATIONS.

 

Borrower certifies as follows:

 

		A.	Current economic uncertainty makes this Loan necessary to support the ongoing operations of Borrower.
	 	 	 
		B.	Loan funds will be used to retain workers and maintain payroll or make mortgage payments, lease
payments, and utility payments.
	 	 	 
		C.	During the period beginning on February 15, 2020 and ending on December 31, 2020, Borrower has
not and will not receive another loan under this program.
	 	 	 
		D.	Borrower was in operation on February 15, 2020 and (i) had employees for whom it paid salaries
and payroll taxes, or (ii) paid independent contractors as reported on a 1099-Misc.

 

	6.	AGREEMENTS.

 

Borrower understands and agrees, and waives and releases
Lender, as follows:

 

		A.	The Loan would be made under the SBA's Paycheck Protection Program. Accordingly, it must be submitted
to and approved by the SBA. There is limited funding available under the Paycheck Protection Program and so all applications submitted
will not be approved by the SBA.

 

     

     

    

 

	 	B.	Lender is participating in the Payroll Protection Program to help businesses impacted by the economic impact from COVID-19. However,
Lender anticipates high volume and there may be processing delays and system failures along with other issues that interfere with
submission of your application to SBA. Lender does not represent or guarantee that it will submit the application before SBA funding
is no longer available or at all. You agree that Lender is not responsible or liable to you (i) if the application is not submitted
to the SBA until after SBA stops approving applications, for any reason or (ii) if the application is not processed. You forever
release and waive any claims against Lender concerning failure to obtain the Loan. This release and waiver applies to but is not
limited to any claims concerning Lender's (i) pace, manner or systems for processing or prioritizing applications, or (ii) representations
by Lender regarding the application process, the Paycheck Protection Program, or availability of funding. This agreed to release
and waiver supersedes any prior communications, understandings, agreements or communications on the issues set forth herein.
	 	 	 
		C.	Forgiveness of the Loan is only available for principal that is used for the limited purposes
that qualify for forgiveness under SBA requirements, and that to obtain forgiveness, Borrower must request it and must provide
documentation in accordance with the SBA requirements, and certify that the amounts Borrower is requesting to be forgiven qualify
under those requirements. Borrower also understand that Borrower shall remain responsible under the Loan for any amounts not forgiven,
and that interest payable under the Loan will not be forgiven but that the SBA may pay the Loan interest on forgiven amounts.
	 	 	 
		D.	Forgiveness is not automatic and Borrower must request it. Borrower is not relying on Lender
for its understanding of the requirements for forgiveness such as eligible expenditures, necessary records/documentation, or possible
reductions due to changes in number of employees or compensation. Rather Borrower will consult the SBA's program materials.
	 	 	 
		E.	The application for this Loan is subject to review and that Borrower may not receive the Loan.
The Loan also remains subject to availability of funds under the SBA's Payment Protection Program, and to the SBA issuing an SBA
loan number.

 

	7.	DEFAULT.

 

Borrower is in default under this Note if Borrower:

 

		A.	Fails to make a payment when due under the Note or otherwise fails to comply with any provision
of this Note.
	 	 	 
		B.	Does not disclose, or anyone acting on its behalf does not disclose, any material fact to Lender
or SBA.
	 	 	 
		C.	Makes, or anyone acting on its behalf makes, a materially false or misleading representation,
attestation or certification to Lender or SBA in connection with Borrower's request for this Loan under the CARES Act, or makes
a false certification under paragraph 5 of this Note.
	 	 	 
		D.	Fails to comply with all of the provisions of this Note.
	 	 	 
		E.	Becomes the subject of a proceeding under any bankruptcy or insolvency law, has a receiver or
liquidator appointed for any part of its business or property, or makes an assignment for the benefit of creditors.
	 	 	 
		F.	Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without
Lender's prior written consent.
	 	 	 
		G.	Becomes the subject of a civil or criminal action that Lender believes may materially affect
Borrower's ability to pay this Note.

 

	8.	LENDER'S RIGHTS IF THERE IS A DEFAULT.

 

Without notice or demand and without giving up any
of its rights, Lender may:

 

A. Require immediate payment of all amounts owing
under this Note.

 

     

     

    

 

B.  Collect all amounts owing
from Borrower.

 

C.  File suit and obtain judgment.

 

	9.	LENDER'S GENERAL POWERS.

 

Without notice or Borrower's consent, Lender may
incur expenses to collect amounts due under this Note and enforce the terms of this Note. Among other things, the expenses may
include reasonable attorney's fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or
add the expenses to the principal balance;

 

	10.	GOVERNING LAW AND VENUE; WHEN FEDERAL LAW APPLIES.

 

When SBA is the holder, this Note shall be interpreted
and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording
documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity
from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local
or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

 

If the SBA is not the holder, this Note shall be
governed by and construed in accordance with the laws of the State of Ohio where the main office of Lender is located. MATTERS
REGARDING INTEREST TO BE CHARGED BY LENDER AND THE EXPORTATION OF INTEREST SHALL BE GOVERNED BY FEDERAL LAW (INCLUDING WITHOUT
LIMITATION 12 U.S.C. SECTIONS 85 AND 1831u) AND THE LAW OF THE STATE OF OHIO. Borrower agrees that any legal action or proceeding
with respect to any of its obligations under this Note may be brought by Lender in any state or federal court located in the State
of Ohio, as Lender in its sole discretion may elect. Borrower submits to and accepts in respect of its property, generally and
unconditionally, the non-exclusive jurisdiction of those courts. Borrower waives any claim that the State of Ohio is not a convenient
forum or the proper venue for any such suit, action or proceeding. The extension of credit that is the subject of this Note is
being made by Lender in Ohio.

 

	11.	SUCCESSORS AND ASSIGNS.

 

Under this Note, Borrower includes its successors,
and Lender includes its successors and assigns.

 

	12.	GENERAL PROVISIONS.

 

		A.	Borrower must sign all documents necessary at any time to comply with the Loan.
	 	 	 
		B.	Borrower's execution of this Note has been duly authorized by all necessary actions of its governing
body. The person signing this Note is duly authorized to do so on behalf of Borrower.
	 	 	 
		C.	This Note shall not be governed by any existing or future credit agreement or loan agreement with Lender. The liabilities guaranteed
pursuant to any existing or future guaranty in favor of Lender shall not include this Note. The liabilities secured by any existing
or future security instrument in favor Lender shall not include this Note.
	 	 	 
		D.	Lender may exercise any of its rights separately or together, as many times and in any order
it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them.
	 	 	 
		E.	Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms
of this Note.
	 	 	 
		F.	If any part of this Note is unenforceable, all other parts remain in effect.
	 	 	 
		G.	To the extent allowed by law, Borrower waives all demands and notices in connection with this
Note, including presentment, demand, protest, and notice of dishonor.

  

     

     

    

 

		H.	Borrower's liability under this Note will continue with respect to any amounts
SBA may pay Bank based on an SBA guarantee of this Note. Any agreement with Bank under which SBA may guarantee this Note does not
create any third party rights or benefits for Borrower and, if SBA pays Bank under such an agreement, SBA or Bank may then seek
recovery from Borrower of amounts paid by SBA.
	 	 	 
		I.	Lender reserves the right to modify the Note Amount based on documentation received from Borrower.

 

	13.	ELECTRONIC SIGNATURES.

 

Borrower's electronic signature shall have the
same force and effect as an original signature and shall be deemed (i) to be "written" or "in writing" or an
 "electronic record", (ii) to have been signed and (iii) to constitute a record established and maintained in the ordinary
course of business and an original written record when printed from electronic files. Such paper copies or "printouts,"
if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the
parties to the same extent and under the same conditions as other original business records created and maintained in documentary
form.

 

	14. 	BORROWER'S NAME AND SIGNATURE

 

Borrower:

 

Hepion Pharmaceuticals, Inc.

 

	By:	/s/
    John Cavan	 
	 	 	 
	Printed
    Name:	John
    Cavan	 
	 	 	 
	Title:	Chief
    Financial Officer	 
	 	 	 
	Date
    Signed:	4/13/2020Exhibit 10.5

 

AGREEMENT AND PLAN OF MERGER

 

BY AND AMONG

 

CONTRAVIR PHARMACEUTICALS, INC.,

 

CICLOFILIN ACQUISITION CORP.,

 

CICLOFILIN PHARMACEUTICALS, INC.

 

AND

 

ROBERT FOSTER, PHARM.D., PH.D., AS STOCKHOLDER
REPRESENTATIVE

 

Dated as of May 26, 2016

  

     

     

    

 

AGREEMENT OF PLAN AND MERGER

 

TABLE OF CONTENTS

 

	 	 	Page
	ARTICLE I      THE MERGER 	 
	 	 	 
	Section 1.1	The Merger	1
	Section 1.2 	Closing and Effective Time 	2
	Section 1.3 	Conversion of Securities  	2
	Section 1.4	Payments at Closing; Surrender of Certificates	3
	Section 1.5	Earnouts	4
	Section 1.6	Dissenting Shares	5
	Section 1.7 	Withholding Rights	6
	 	 	 
	ARTICLE II      REPRESENTATIONS AND WARRANTIES OF Company 	 
	 	 	 
	Section 2.1 	Organization, Standing and Power 	6
	Section 2.2	Certificate of Incorporation and Bylaws 	6
	Section 2.3 	Capital Structure 	7
	Section 2.4 	Authority 	7
	Section 2.5 	Consents and Approvals; No Violation	7
	Section 2.6 	Regulatory Compliance	8
	Section 2.7 	Undisclosed Liabilities	9
	Section 2.8 	Litigation	9
	Section 2.9	Taxes	9
	Section 2.10 	Environmental Matters	10
	Section 2.11 	Intellectual Property	11
	Section 2.12 	Contracts	11
	Section 2.13	Labor and Other Employment Matters	11
	Section 2.14 	Employee Benefits; ERISA	12

 

     

     

    

 

	Section 2.15	Brokers 	13
	Section 2.16 	Certain Business Practices; Compliance with Laws 	13
	Section 2.17 	Related Party Transactions	13
	Section 2.18	Company Financial Statements  	13
	Section 2.19 	Title to Assets  	14
	Section 2.20 	Representations Complete 	14
	 	 	 
	ARTICLE III      REPRESENTATIONS AND WARRANTIES OF BUYER AND MERGER SUB	 
	 	 	 
	Section 3.1 	Organization, Standing and Power 	14
	Section 3.2 	Authority 	15
	Section 3.3	SEC Documents and Other Reports	15
	Section 3.4 	Consents and Approvals; No Violation 	15
	Section 3.5	Regulatory Compliance 	16
	Section 3.6 	Intellectual Property	16
	Section 3.7 	Brokers 	17
	Section 3.8 	Operations of Merger Sub	17
	Section 3.9 	Buyer Financial Statements 	17
	Section 3.10	Taxes 	18
	Section 3.11 	Contracts 	18
	Section 3.12	Environmental Matters	19
	Section 3.10 	Insurance 	19
	Section 3.14 	Labor and Other Employment Matters 	19
	Section 3.15 	Employee Benefits; ERISA 	19
	Section 3.16 	Absence of Certain Changes or Events	20
	Section 3.17	Related Party Transactions 	20
	Section 3.18 	Representations Complete 	20
	 	 	 
	ARTICLE IV      ADDITIONAL AGREEMENTS	 
	 	 	 
	Section 4.1	Reasonable Best Efforts 	20

 

     

     

    

 

	Section 4.2 	Public Announcements 	20
	Section 4.3 	Notification of Certain Matters 	20
	Section 4.4	Stockholder Litigation 	21
	Section 4.5	Certain Tax Matters	21
	Section 4.6	Development	21
	Section 4.7	Operation of the Company’s Business	22 
	Section 4.8	Notification by Company; Updates to Company Disclosure Schedule	23
	Section 4.9	Notification by Buyer 	23
	Section 4.10	No Negotiation 	24
	 	 	 
	ARTICLE V      CONDITIONS PRECEDENT TO THE MERGER 	 
	 	 	 
	Section 5.1 	Conditions to Each Party's Obligation to Effect the Merger 	24
	Section 5.2 	Conditions to Obligation of Buyer to Effect the Merger 	24
	Section 5.3 	Conditions to Obligations of Company to Effect the Merger	25
	 	 	 
	ARTICLE VI      TERMINATION 	 
	 	 	 
	Section 6.1 	Termination	26
	Section 6.2	Effect of Termination	26
	 	 	 
	  ARTICLE VII      INDEMNIFICATION 	 
	 	 	 
	Section 7.1 	Survival of Representations and Warranties	27
	Section 7.2 	Indemnification 	27
	Section 7.3 	Limitations on Indemnification 	27
	Section 7.4	Tax Treatment of Indemnity Payments	28
	Section 7.5	Notice of Claim; Third Party Claims	28

 

     

     

    

 

	Section 7.6 	Subrogation 	29
	Section 7.7	Limitation on Damages	30
	 	 	 
	ARTICLE VIII      GENERAL PROVISIONS	 
	 	 	 
	Section 8.1 	Notices	30
	Section 8.2 	Interpretation	31
	Section 8.3 	Counterparts	31
	Section 8.4 	Entire Agreement; No Third-Party Beneficiaries	31
	Section 8.5 	Governing Law	31
	Section 8.6	Amendment	31
	Section 8.7 	Waiver	31
	Section 8.8 	Specific Performance; Submission to Jurisdiction	32
	Section 8.9 	Waiver of Jury Trial	32
	Section 8.10 	Assignment	32
	Section 8.11 	Stockholder Representative	32
	Section 8.12	Severability	33
	Section 8.13 	Legal Representation	33
	Section 8.14 	Definitions	33

 

	Company Disclosure Schedules
	 
	Section 1.5(d)  	Milestone Payments to Aurinia Pharmaceuticals, Inc.
	Section 2.1  	Organization, Standing and Power
	Section 2.3  	Capital Structure
	Section 2.7  	Undisclosed Liabilities
	Section 2.8  	Litigation

 

     

     

    

  

	Section 2.9  	Taxes
	Section 2.11  	Intellectual Property
	Section 2.12	Contracts
	Section 2.13  	Labor and Other Employment Matters
	Section 2.15  	Brokers
	Section 2.18(c)  	Company Financial Statements
	Section 8.14(hh)  	Transaction Expenses

 

	Buyer Disclosure Schedules  
	 
	Section 3.1  	Buyer Operating Subs
	Section 3.10  	Taxes
	Section 3.11(b) and (g)  	Contracts
	Section 3.14  	Labor and Other Employment Matters  

 

     

     

    

 

AGREEMENT AND PLAN OF MERGER

 

This AGREEMENT AND
PLAN OF MERGER, dated as of May 26, 2016 (this "Agreement"), is entered into by and among CONTRAVIR PHARMACEUTICALS, INC.,
a Delaware corporation ("Buyer"), CICLOFILIN ACQUISITION CORP., a Delaware corporation and a wholly-owned subsidiary
of Buyer ("Merger Sub"), CICLOFILIN PHARMACEUTICALS, INC., a Delaware corporation ("Company"),
and Robert Foster, Pharm.D., Ph.D., solely in his capacity as the representative of the Stockholders (the “Stockholder
Representative”).

 

W I T N E S S E T H:

 

WHEREAS, Buyer desires
to acquire 100% of the issued and outstanding shares of common stock, par value $0.001 per share (the "Company Common Stock")
of the Company in a merger transaction (the “Merger”) on the terms, and subject to the conditions, set forth
in this Agreement and in accordance with the applicable provisions of the Delaware General Corporation Law (the "DGCL");

 

WHEREAS, the Company’s
outstanding Convertible Subordinated Promissory Notes with an aggregate principal amount of $1,044,570.53 (the “Notes”)
will convert into shares of Company Common Stock immediately before the Closing (as defined below);

 

WHEREAS, the board
of directors of Company (the “Company Board”) has, upon the terms and subject to the conditions set forth herein,
(i) determined that the transactions contemplated by this Agreement, including the Merger, are fair to and in the best interests
of Company and the Stockholders, (ii) approved, adopted and declared advisable this Agreement and the transactions contemplated
hereby, including the Merger and (iii) recommended that the Stockholders approve this Agreement and the Merger;

 

WHEREAS, the board
of directors of Buyer (the “Buyer Board”) and board of directors of Merger Sub (the “Merger Sub Board”)
have, upon the terms and subject to the conditions set forth herein, (i) determined that the transactions contemplated by
this Agreement, including the Merger, are fair to and in the best interests of Buyer and Merger Sub and their respective stockholders
and (ii) approved, adopted and declared advisable this Agreement and the transactions contemplated hereby, including the Merger;

 

WHEREAS, the sole shareholder
of Merger Sub has, upon the terms and subject to the conditions set forth herein, approved this Agreement and the transactions
contemplated hereby, including the Merger; and

 

WHEREAS, prior to the
Closing, Stockholders holding a majority of outstanding Common Stock shall approve by written consent or otherwise the Merger,
the execution by Company of this Agreement and the consummation of the transactions contemplated herein, in accordance with Sections
228 and 251 of the DGCL (the “Company Stockholder Approval”).

 

NOW, THEREFORE, in
consideration of the premises, representations, warranties and agreements herein contained, the parties to this Agreement agree
as follows:

 

ARTICLE I

 

THE MERGER

 

Section 1.1 The
Merger.

 

(a) Upon the terms
and subject to the conditions set forth in this Agreement, and in accordance with the DGCL, at the Effective Time (as defined below)
Merger Sub shall be merged with and into the Company. As a result of the Merger, the separate corporate existence of Merger Sub
shall cease, and the Company shall continue as the surviving corporation of the Merger (the “Surviving Corporation”).
The Merger shall have the effects set forth in the applicable provisions of the DGCL. Without limiting the generality of the foregoing,
at the Effective Time, all of the property, rights, privileges, immunities, powers and franchises of the Company and Merger Sub
shall vest in the Surviving Corporation, and all of the debts, expenses, liabilities and duties of the Company and Merger Sub shall
become the debts, expenses, liabilities and duties of the Surviving Corporation.

 

    1

     

    

  

(b) At the Effective
Time, the certificate of incorporation of the Company shall be amended and restated in its entirety to read identically to the
certificate of incorporation of Merger Sub as in effect immediately prior to the Effective Time, except that the name of the Surviving
Corporation shall be “ContraVir Research, Inc.” (and excluding any provisions with respect to the incorporator)
and, as so amended, shall be the certificate of incorporation of the Surviving Corporation until thereafter changed or amended
as provided therein or by applicable Law. In addition, at the Effective Time, the bylaws of the Company shall be amended and restated
in their entirety to read identically to the bylaws of Merger Sub as in effect immediately prior to the Effective Time, except
that the name of the Surviving Corporation as used therein shall be “ContraVir Research, Inc.” and, as so amended,
shall be the bylaws of the Surviving Corporation until thereafter changed or amended as provided therein or by applicable law.

 

(c) The parties
shall take all actions necessary so that the directors of Merger Sub immediately prior to the Effective Time shall, from and after
the Effective Time, be the directors of the Surviving Corporation, each to hold office in accordance with the certificate of incorporation
and bylaws of the Surviving Corporation until their respective successors shall have been duly elected or appointed and qualified,
or until their earlier death, resignation or removal in accordance with the certificate of incorporation and bylaws of the Surviving
Corporation. The officers of the Company immediately prior to the Effective Time shall, from and after the Effective Time, be the
officers of the Surviving Corporation, each to hold office in accordance with the certificate of incorporation and bylaws of the
Surviving Corporation until their respective successors shall have been duly elected or appointed and qualified, or until their
earlier death, resignation or removal in accordance with the certificate of incorporation and bylaws of the Surviving Corporation.

 

(d) After the Effective
Time, if the Surviving Corporation shall determine or shall be advised that any deeds, bills of sale, instruments of conveyance,
assignments, assurances or any other actions or things are necessary or desirable to vest, perfect or confirm of record or otherwise
in the Surviving Corporation its right, title or interest in, to or under any of the rights, properties or assets of either of
the Company or Merger Sub acquired or to be acquired by the Surviving Corporation as a result of, or in connection with, the Merger
or otherwise to carry out this Agreement, then the officers and directors of the Surviving Corporation shall be authorized to execute
and deliver, in the name and on behalf of either the Company or Merger Sub, all such deeds, bills of sale, instruments of conveyance,
assignments and assurances and to take and do, in the name and on behalf of each of such corporations or otherwise, all such other
actions and things as may be necessary or desirable to vest, perfect or confirm any and all right, title or interest in, to and
under such rights, properties or assets in the Surviving Corporation or otherwise to carry out this Agreement.

 

1.2 Closing and
Effective Time. The closing of the Merger (the “Closing”) will take place at 10:00 a.m., local time, on
the fifth (5th) Business Day following the satisfaction or waiver of all of the conditions set forth in Article 5
(other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver
of those conditions at the Closing), at the offices of Sichenzia Ross Friedman Ference LLP, 61 Broadway, 32nd Floor,
New York, New York 10006, unless another time, date or place is agreed to in writing by the parties hereto. The date on which the
Closing actually occurs is referred to herein as the “Closing Date”. At the Closing, the Company shall cause
an appropriate certificate of merger or other appropriate documents (the “Certificate of Merger”) to be executed,
acknowledged and filed with the Secretary of State of the State of Delaware as provided in Section 251 of the DGCL and shall
take all such reasonable further actions and make all other filings or recordings required under the DGCL. The Merger shall become
effective at the time the Certificate of Merger shall have been duly filed with the Secretary of State of the State of Delaware
or such other date and time as is agreed upon by the parties and specified in the Certificate of Merger, such date and time hereinafter
referred to as the “Effective Time”.

 

1.3 Conversion
of Securities. At the Effective Time, by virtue of the Merger and without any action on the part of Buyer, Merger Sub, the
Company or the holders of any of the following securities:

 

(a) Conversion
of Company Common Stock. Each share of Company Common Stock (a “Share” or collectively, the “Shares”)
issued and outstanding immediately prior to the Effective Time, other than Shares to be cancelled in accordance with Section 1.3(b) and
other than Dissenting Shares (as defined below), shall be converted into the right to receive the Milestone Payments pursuant to
Section 1.5.

 

    2

     

    

 

(b) Cancellation
of Treasury Stock and Buyer-Owned Stock. All Shares that are held in the treasury of the Company or owned of record by any
of the Subsidiaries of the Company, and all Shares owned of record by Buyer, Merger Sub or any of their respective wholly-owned
Subsidiaries shall be cancelled and shall cease to exist, with no payment being made with respect thereto.

 

(c) Merger Sub
Common Stock. Each share of common stock, par value $0.0001 per share, of Merger Sub issued and outstanding immediately prior
to the Effective Time shall be converted into and become one newly and validly issued, fully paid and nonassessable share of common
stock of the Surviving Corporation.

 

The Milestone Payments,
if any, to be paid following the conversion of Shares pursuant to Section 1.3(a) are referred to herein as the
 “Merger Consideration”. At the Effective Time, all of the Shares shall cease to be outstanding, shall be
cancelled and shall cease to exist, and each certificate (a “Certificate”) formerly representing any of the
Shares (other than Shares to be cancelled in accordance with Section 1.3(b) and other than Dissenting Shares)
shall thereafter represent only the right to receive the Merger Consideration, in each case without interest, subject to compliance
with the procedures for surrender of such Shares as set forth in Section 1.4(b). Notwithstanding anything in this Agreement
to the contrary, if, from the date of this Agreement until the Effective Time, the outstanding shares of Company Common Stock or
the securities convertible into or exercisable for shares of Company Common Stock shall have been changed into a different number
of shares or a different class by reason of any reclassification, stock split (including a reverse stock split), recapitalization,
split-up, combination, exchange of shares, readjustment, or other similar transaction, or a stock dividend or stock distribution
thereon shall be declared with a record date within said period, the Merger Consideration and any other similarly dependent items,
as the case may be, shall be appropriately adjusted to provide the holders of Shares the same economic effect as contemplated by
this Agreement prior to such event.

 

1.4 Payments at
Closing; Surrender of Certificates.

 

(a) Closing Statement.
On or prior to the third business day prior to the Closing Date, Company shall prepare and deliver to Buyer the Closing Statement.

 

(b) Payments.
At or immediately following the Effective Time, Buyer shall deposit or pay, or shall cause to be deposited or paid, the following
amounts in immediately available funds: (i) an amount in cash equal to the unpaid Transaction Expenses to be paid according
to the instructions in the Closing Statement and (ii) $200,000 to be deposited with the Company to fund an animal study in
combination with CPI-431-32 in an animal model reasonably acceptable to the Company.

 

(b) Certificates.
As promptly as practicable after the Effective Time, Buyer shall mail to each holder of record of a Certificate whose Shares were
converted into the right to receive the Merger Consideration at the Effective Time pursuant to this Agreement: (i) a letter
of transmittal, which shall specify that delivery shall be effected, and risk of loss and title to the Certificates shall pass,
only upon delivery of the Certificates to Buyer, and shall otherwise be in such form and have such other provisions as Buyer may
reasonably specify and as reasonably approved by the Company prior to the Effective Time, and (ii) instructions for effecting
the surrender of the Certificates in exchange for the right to receive the Merger Consideration. Upon surrender of Certificates
for cancellation to Buyer or to such agent or agents as may be appointed by Buyer, and upon delivery of a letter of transmittal,
duly executed and in proper form, with respect to such Certificates, and such other documents as may reasonably be required by
Buyer, the holder of such Certificates shall be entitled to receive in exchange therefor the Merger Consideration into which each
Share formerly represented by such Certificates was converted pursuant to Section 1.3(a), and the Certificates so surrendered
shall forthwith be cancelled. In the event of a transfer of ownership of Company Common Stock that is not registered in the
transfer records of the Company, payment of the Merger Consideration may be made to a Person other than the Person in whose name
the Certificate so surrendered is registered, if such Certificate shall be properly endorsed or shall otherwise be in proper form
for transfer and the Person requesting such payment shall pay any transfer and other similar Taxes required by reason of the payment
of the Merger Consideration to a Person other than the registered holder of the Certificate so surrendered or shall establish to
the satisfaction of Buyer that such Taxes either have been paid or are not required to be paid.

 

    3

     

    

 

(c) Book-Entry
Shares. Any holder of non-certificated Shares represented by book-entry (“Book-Entry Shares” and each individually
a “Book-Entry Share”), in each case whose Shares were converted into the right to receive the Merger Consideration
at the Effective Time pursuant to this Agreement, shall not be required to deliver a Certificate or an executed letter of transmittal
to Buyer to receive the Merger Consideration that such holder is entitled to receive pursuant to this Agreement. In lieu thereof,
each holder of record of one or more Book-Entry Shares whose Shares were converted into the right to receive the Merger Consideration
at the Effective Time pursuant to this Agreement shall, upon receipt by Buyer of an “agent’s message” (or such
other evidence, if any, of surrender as Buyer may reasonably request) be entitled to receive in exchange therefor the amount of
cash into which each Share formerly represented by such Book-Entry Share was converted pursuant to Section 1.3(a).
Payment of the Merger Consideration with respect to Book-Entry Shares shall only be made to the Person in whose name such Book-Entry
Shares are registered.

 

(d) Rights Prior
to Surrender. Until surrendered as contemplated by this Section 1.4, each Certificate and each Book-Entry Share
shall be deemed at any time after the Effective Time to represent only the right to receive the Merger Consideration into which
the Shares formerly represented by such Certificate or Book-Entry Share has been converted pursuant to Section 1.3(a). No
interest shall be paid or accrue on any cash payable upon surrender of any Certificate or Book-Entry Share.

 

(e) Transfer
Books; No Further Ownership Rights in Shares. As of the close of business on the date of the Effective Time, the stock transfer
books of the Company shall be closed and thereafter there shall be no further registration of transfers of Shares on the records
of the Company. The Merger Consideration paid in accordance with the terms of Section 1.3 and Section 1.4
upon conversion of any Shares shall be deemed to have been paid in full satisfaction of all rights pertaining to such Shares. From
and after the Effective Time, the holders of Shares outstanding immediately prior to the Effective Time shall cease to have any
rights with respect to such Shares except as otherwise provided for herein or by applicable law. If, after the Effective Time,
Certificates are presented to the Surviving Corporation for any reason, they shall be cancelled and exchanged as provided in this
Agreement.

 

(d) Termination
of Fund; Abandoned Property; No Liability. Stockholders shall be entitled to look only to the Surviving Corporation (subject
to abandoned property, escheat or other similar laws) as general creditors thereof with respect to the Merger Consideration payable
upon due surrender of their Shares and compliance with the procedures set forth in Section 1.4(b) or Section 1.4(c),
as applicable, without interest. Notwithstanding the foregoing, the Surviving Corporation shall not be liable to any Stockholder
for Merger Consideration delivered to a public official pursuant to any applicable abandoned property, escheat or similar law.

 

(e) Lost, Stolen
or Destroyed Certificates. In the event that any Certificate shall have been lost, stolen or destroyed, Buyer shall issue in
exchange for such lost, stolen or destroyed Certificate, upon the making of an affidavit of that fact by the holder thereof, the
Merger Consideration payable or deliverable in respect thereof pursuant to this Agreement; provided, however, that
Buyer may, in its reasonable discretion and as a condition precedent to the payment of any such Merger Consideration, require the
owner of such lost, stolen or destroyed Certificate to deliver a bond in such sum as Buyer may reasonably direct as indemnity against
any claim that may be made against Buyer, Merger Sub or the Surviving Corporation with respect to the Certificate alleged to have
been lost, stolen or destroyed.

 

1.5 Earnouts.

 

(a)            Milestone
Payments. Subject to Section 1.5(d) and Buyer’s Right of Setoff pursuant to Article VII,
upon the achievement by or on behalf of Buyer or the Surviving Corporation of the following events (each, a "Milestone
Event"), Buyer shall pay to the Stockholders as specified in the Closing Statement the following additional amounts
(each a "Milestone Payment"):

 

		(i)	upon receipt of Phase I Positive Data from the Phase I trial of CPI-431-32 in humans: (1) such
number of validly issued, fully paid and non-assessable shares of common stock, par value $0.0001 per share, of Buyer (the “Buyer
Common Stock”) equal to 2.5% of the issued and outstanding Buyer Common Stock on the Closing Date and (2) $1,000,000
by wire transfer of immediately available funds;

 

		(ii)	upon receipt of Phase II Positive Data from a proof of concept clinical trial (whether an HBV-positive
Phase I clinical trial or a separate Phase II clinical trial, or otherwise) of CPI-431-32 in humans: (1) such number of validly
issued, fully paid and non-assessable shares of Buyer Common Stock equal to 7.5% of the issued and outstanding Buyer Common Stock
on the Closing Date and (2) $3,000,000 by wire transfer of immediately available funds;

 

    4

     

    

  

		(iii)	upon initiation of a Phase III trial of CPI-431-32: $5,000,000 by wire transfer of immediately
available funds; and

 

		(iv)	upon the acceptance by the U.S. Food and Drug Administration of a new drug application for CPI-431-32:
$8,000,000 by wire transfer of immediately available funds.

 

(b)            Adjustments
to Merger Consideration.

 

		(i)	Cash Amounts. The aggregate cash amount payable to any Stockholder pursuant to this Article I
shall be rounded to the nearest whole cent ($0.01).

 

		(ii)	No Fractional Shares. No fractional shares of Buyer Common Stock will be issued to the Stockholders
under this Agreement. In lieu of fractional shares of Buyer Common Stock, each Stockholder shall receive an amount of cash (rounded
to the nearest whole cent) equal to the product of (a) the fraction of a share of Buyer Common Stock to which such Stockholder
would otherwise be entitled (after aggregating all fractional shares of Buyer Common Stock issuable to such stockholder), multiplied
by (b) the volume weighted average price over the five (5) trading-day period ending on the trading day prior to the
applicable Date of Achievement.

 

		(iii)	Stock Splits. Notwithstanding anything in this Agreement to the contrary, if, following
the Closing Date, the Buyer Common Stock or the securities convertible into or exercisable for shares of Buyer Common Stock shall
have been changed into a different number of shares or a different class by reason of any reclassification, stock split (including
a reverse stock split), recapitalization, split-up, combination, exchange of shares, readjustment, or other similar transaction,
or a stock dividend or stock distribution thereon shall be declared with a record date following the Closing Date, the Milestone
Payments contemplated in Sections 1.5(a)(i)(1) and 1.5(a)(ii)(1) and any other similarly dependent items,
as the case may be, shall be appropriately adjusted to provide the Stockholders the same economic effect as contemplated by this
Agreement prior to such event.

 

(c)            Notification
and Payment by Buyer. Buyer shall promptly notify Stockholder Representative after the date a Milestone Event has been achieved,
as determined by the majority of directors of the Buyer Board (the “Date of Achievement”). Within 30 days of
notification by Buyer to Stockholder Representative of the realization of a Milestone, Buyer shall pay the corresponding Milestone
Payment to the Stockholders according to the Closing Statement, in shares of Buyer Common Stock or in cash by wire transfer of
immediately available funds, as applicable, and each as directed by the Stockholder Representative. Buyer shall consult with the
Stockholder Representative prior to finalizing payment amounts to individual Stockholders.

 

(d)            Milestone
Payments to Aurinia Pharmaceuticals Inc. The Milestone Payments to be made to the Stockholders shall be offset, in accordance
with Section 1.5(d) of the Company Disclosure Schedule, by the milestone payments to be made by Buyer to Aurinia
Pharmaceuticals, Inc. pursuant to Sections 4.1, 4.3 and 4.6 of that certain NICAMs Purchase and Sale Agreement, dated February 14,
2014, by and between Ciclofilin Pharmaceuticals Corp. and Aurinia Pharmaceuticals, Inc., as modified by that certain letter
agreement, dated May 26, 2016.

 

1.6 Dissenting
Shares. Notwithstanding anything in this Agreement to the contrary, Shares outstanding immediately prior to the Effective Time
and held by a holder who is entitled to demand and has properly demanded appraisal for such Shares in accordance with, and who
otherwise complies with, Section 262 of the DGCL (such Shares, “Dissenting Shares”) shall not be converted
into the right to receive the Merger Consideration as provided in Section 1.3(a), and shall instead represent the right
to receive only the payment provided by Section 262 of the DGCL. If any such holder fails to perfect or otherwise waives,
withdraws or loses his right to appraisal under Section 262 of the DGCL or other applicable law, then such Dissenting Shares
shall be deemed to be Shares that have been converted as of the Effective Time into, and to have become exchangeable solely for,
the right to receive the Merger Consideration as provided in Section 1.3(a), without interest. The Company shall give
Buyer (i) prompt notice of any written demands for appraisal, attempted withdrawals of such demands, and any other instruments
served pursuant to applicable law that are received by the Company relating to the Stockholders’ rights of appraisal, and
(ii) the opportunity to participate in and control all negotiations and proceedings with respect to demands for appraisal
under the DGCL. The Company shall not, except with the prior written consent of Buyer, voluntarily make any payment with respect
to any demands for appraisal, offer to settle or settle any such demands.

 

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1.7 Withholding
Rights. Buyer, Merger Sub and the Surviving Corporation, as the case may be, shall be entitled to deduct and withhold or cause
to be deducted or withheld from any amount otherwise payable pursuant to this Agreement to any Person such amounts as Buyer, Merger
Sub or the Surviving Corporation are required to deduct and withhold with respect to the making of such payment under the Internal
Revenue Code of 1986, as amended (the “Code”) or any other provision of applicable law; provided, however, that
before any such deduction or withholding is made, Buyer shall provide to the Stockholder Representative written notice of any applicable
payor’s intention to make such deduction or withholding, which notice shall set forth, in reasonable detail, the authority,
basis and method of calculation for such deduction or withholding, so as to provide the Stockholder Representative with a reasonable
opportunity to obtain reduction of or relief from such deduction or withholding from the applicable Governmental Entity, and Buyer
shall reasonably cooperate with the Stockholder Representative to obtain such reduction of or relief from such deduction or withholding.
Buyer, Merger Sub and the Surviving Corporation, as applicable, shall timely remit to the appropriate Governmental Entity any and
all amounts so deducted or withheld. To the extent that amounts are so withheld and remitted to the appropriate Governmental Entity
by Buyer, Merger Sub or the Surviving Corporation or their respective Affiliates, such amounts shall be treated for all purposes
of this Agreement as having been paid to the Person in respect of whom such deduction and withholding was made by Buyer, Merger
Sub or the Surviving Corporation or their respective Affiliates.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES OF COMPANY

 

Company hereby represents
and warrants to Buyer and Merger Sub, as qualified by the disclosure schedule delivered by Company to Buyer and Merger Sub concurrently
herewith (the "Company Disclosure Schedule") (which Company Disclosure Schedule shall be arranged in sections
corresponding to the numbered and lettered sections of this Article II, and any information disclosed in any such section
of the Company Disclosure Schedule, if it is readily apparent that the disclosure contained in such section would clearly apply
to other representations and warranties contained in this Article II, would also apply to such other representations
and warranties), as follows:

 

Section 2.1 Organization,
Standing and Power. The entities set forth in Section 2.1 of the Company Disclosure Schedule (the "Subsidiaries")
are all of the Subsidiaries of Company. Company and each Subsidiary thereof is a corporation duly organized, validly existing and
in good standing or active status under the laws of the jurisdiction in which it is incorporated and has all requisite corporate
power and authority to own, lease and operate its properties and to carry on its business as it is now being conducted, except
where any failure to be so organized, existing or in good standing or active status or to have such power or authority would not,
or would not reasonably be expected to, individually or in the aggregate, have a Company Material Adverse Effect. Company is duly
qualified or licensed to do business, and is in good standing, in each jurisdiction where the character of the properties owned,
leased or operated by it or the nature of its activities makes such qualification or licensing necessary, except for any failure
to be so qualified or licensed or in good standing which would not, or would not reasonably be expected to, individually or in
the aggregate, have a Company Material Adverse Effect.

 

Section 2.2 Certificate
of Incorporation and Bylaws. Company has heretofore furnished or otherwise made available to Buyer and Merger Sub a complete
and correct copy of the certificate of incorporation (the "Company Certificate of Incorporation") and bylaws (the
 "Company Bylaws") of Company, as amended and in effect on the date hereof. The Company Certificate of Incorporation
and Company Bylaws are in full force and effect. Company is not in violation of any provisions of the Company Certificate of Incorporation
or Company Bylaws in any material respect.

 

    6

     

    

 

Section 2.3 Capital
Structure.

  

(a) The authorized
capital stock of Company consists of 4,000,000 shares of Company Common Stock. Except as set forth in Section 2.3(a) of
the Company Disclosure Schedule, as of the date of this Agreement, Company does not have any outstanding shares of capital stock
or options, warrants, calls, rights, puts or Contracts to which Company is a party or by which Company is bound obligating Company
to issue, deliver, sell, redeem or otherwise acquire, or cause to be issued, delivered, sold, redeemed or otherwise acquired, any
additional shares of capital stock (or other voting securities or equity equivalents) of Company or obligating Company to grant,
extend or enter into any such option, warrant, call, right, put or Contract. All of the outstanding Company Shares are validly
issued, fully paid, non-assessable and free of preemptive rights. Except as set forth in Section 2.3(a) of the
Company Disclosure Schedule, as of the date of this Agreement, Company does not have any outstanding bonds, debentures, notes or
other obligations, the holders of which have the right to vote (or convertible into or exercisable for securities having the right
to vote) with the Stockholders on any matter. There are no Contracts to which Company or its respective officers or directors are
a party concerning the voting of any capital stock of Company.

 

(b) There are no
registration rights and there are no voting trusts, proxies or other agreements or understandings with respect to any equity security
of Company. There is no stockholder rights plan that will be applicable or triggered by the entry into this Agreement or the consummation
of the other transactions contemplated hereunder.

 

(c) Each outstanding
share of capital stock (or other voting security or equity equivalent, as the case may be) of the Subsidiaries of Company is duly
authorized, validly issued, fully paid and non-assessable and each such share (or other voting security or equity equivalent, as
the case may be) is owned by Company, free and clear of all security interests, liens, claims, pledges, options, rights of first
refusal, limitations on voting rights, charges and other Encumbrances of any nature whatsoever.

 

Section 2.4 Authority.

 

(a) (i) On
or prior to the date of this Agreement, the Company Board has (x) determined that this Agreement and the transactions contemplated
hereby (including the Merger) are advisable and in the best interests of Company and the Stockholders, and (y) approved and
adopted this Agreement, and the transactions contemplated hereby (including the Merger), and (ii) prior to the Closing, the
Company has obtained the Company Stockholder Approval.

 

(b) Company has
all requisite corporate power and authority to enter into this Agreement and, subject to obtaining the Company Stockholder Approval,
to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this
Agreement by Company and the consummation by it of the transactions contemplated hereby has been duly and validly authorized by
all necessary corporate action on the part of Company and, except for obtaining the Company Stockholder Approval, no other corporate
proceedings on the part of Company (other than the filing of appropriate Merger documents as required by the DGCL) and no other
Stockholder votes are necessary to authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement
has been duly executed and delivered by Company and (assuming the valid authorization, execution and delivery of this Agreement
by Buyer and Merger Sub and the validity and binding effect of this Agreement on Buyer and Merger Sub) constitutes the legal, valid
and binding obligation of Company, enforceable against Company in accordance with its terms, except to the extent enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors'
rights generally and by the effect of general principles of equity (regardless of whether enforcement is considered in a proceeding
in equity or at law) (the "Bankruptcy and Equity Exception").

 

Section 2.5 Consents
and Approvals; No Violation.

 

(a) The execution
and delivery of this Agreement by Company does not, and the performance of this Agreement by Company (including the consummation
of the Merger) will not, (i) conflict with or violate any provision of the Company Certificate of Incorporation or Company
Bylaws or any equivalent organizational documents of Company, (ii) conflict with or violate any law applicable to Company,
or (iii) require any consent or approval under, or constitute a default (or an event which with notice or lapse of time or
both would become a default) under, any Contract, Company permit or other instrument or obligation, except in each of the foregoing
clauses (ii) and (iii) as would not have a Company Material Adverse Effect.

 

    7

     

    

 

(b) The execution
and delivery of this Agreement by Company does not, and the performance of this Agreement by Company will not, require any consent,
approval, authorization or Permit of, or filing with or notification to, any Governmental Entity or any other Person, except the
filing and recordation of the Certificate of Merger as required by the DGCL.

 

Section 2.6 Regulatory
Compliance.

 

(a) To the Knowledge
of Company, (i) there is no civil, criminal or administrative action, suit, demand, claim, complaint, hearing, investigation,
demand letter, warning letter, proceeding or request for information pending against Company, and (ii) Company has no liability
(whether actual or contingent) for failure to comply with the Federal Food, Drug, and Cosmetic Act (the "FDCA"),
21 U.S.C. §301 et. seq., and all applicable regulations promulgated by the United States Food and Drug Administration ("FDA")
(collectively, "FDA Law and Regulation") or any law or regulation of a comparable foreign regulatory or Governmental
Entity. There has not been any material violation of any FDA Law and Regulation or any law or regulation of a comparable foreign
regulatory or Governmental Entity by Company in its product development efforts, submissions, record keeping and reports to FDA
or a comparable Governmental Entity that could reasonably be expected to require or lead to investigation, corrective action or
enforcement, or regulatory or administrative action; provided that, to the extent the foregoing activities have been performed
on Company's behalf by any third party contractors, the representation and warranty made in this sentence shall only be made to
the extent of Company's Knowledge after exercise of reasonable diligence in requiring such contractors to comply with applicable
FDA Law and Regulation or any law or regulation of a comparable foreign regulatory or Governmental Entity.

 

(b) To the Knowledge
of Company, each of the product candidates of Company is being, and at all times has been, developed, tested, manufactured, labeled,
promoted and stored, as applicable, in material compliance with FDA Law and Regulation and requirements of comparable foreign regulatory
and Governmental Entities and, to the extent the foregoing activities have been performed on Company's behalf by any third party
contractors, Company has exercised reasonable diligence in requiring such contractors to comply with applicable FDA Law and Regulation
or any law or regulation of a comparable foreign regulatory or Governmental Entity, other than Taxes that are not yet due and payable.

 

(c) To the Knowledge
of Company, the clinical trials, studies and other preclinical tests conducted by Company were, and if still pending, are, being
conducted in all material respects in accordance with all experimental protocols, informed consents, procedures and controls of
Company and applicable FDA and foreign requirements including, but not limited to, good clinical practices, good laboratory practices,
and FDA Law and Regulation including the protection of human subjects and, to the extent the foregoing activities have been performed
on Company's behalf by any third party contractors, Company has exercised reasonable diligence in requiring such contractors to
comply with applicable FDA Law and Regulation or any law or regulation of a comparable foreign regulatory or Governmental Entity.
Company has not received any written notice from the FDA or any other regulatory or Governmental Entity requiring the termination
or suspension or material modification of any animal study, preclinical study or clinical trial conducted by or on behalf of Company
and, to the Knowledge of Company, there is no reasonable basis for any termination, suspension, or material modification, for,
in each case, purposes of the protection of subject health or safety, of any ongoing human clinical trial being conducted by or
on behalf of Company.

 

(d) With respect
to all third party manufacturers and suppliers of key raw materials (each a "Third Party Manufacturer") used by
Company, (i) to the Knowledge of Company, each such Third Party Manufacturer (A) has complied and is complying, in each
case in all material respects, with all applicable laws, rules, and regulations, including the FDA Law and Regulation and any similar
state or foreign laws and (B) has all material Permits to perform its obligations as a Third Party Manufacturer and all such
Permits are in full force and effect and (ii) Company has exercised reasonable diligence in requiring Third Party Manufacturers
to comply with applicable FDA Law and Regulation or any law or regulation of a comparable foreign regulatory or Governmental Entity.

 

    8

     

    

 

(e) To the Knowledge
of the Company, in connection with Company's business, no director, officer, employee or agent of Company has (x) made any
untrue statement of material fact or fraudulent statement to the FDA or any other Governmental Entity, (y) failed to disclose
a material fact required to be disclosed to the FDA or any other Governmental Entity or (z) committed an act, made a statement,
or failed to make a statement that would reasonably be expected to provide the basis for the FDA or any other Governmental Entity
to invoke its policy respecting "Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities," as set
forth in CPG. Section 120.100.

  

(f) Company has
complied in all material respects with all applicable security and privacy standards regarding protected health information pursuant
to the Health Insurance Portability and Accountability Act ("HIPAA") or any foreign equivalent and applicable
privacy laws.

 

(g) To the extent
applicable, Company has applied to the FDA and all comparable foreign regulatory or Governmental Entities for and received approval
of all material registrations, applications, licenses, requests for exemptions, Permits and other regulatory authorizations (the
 "FDCA Permits") necessary to conduct the business of Company as currently conducted. Company is in material compliance
with all such FDCA Permits. To the Knowledge of Company, no suspension, revocation, cancellation or withdrawal of the FDCA Permits
is threatened and there is no basis for believing that such FDCA Permits will not be renewable upon expiration or will be suspended,
revoked, cancelled, modified or withdrawn.

 

Section 2.7 Undisclosed
Liabilities. Company has no material liabilities (absolute, accrued, contingent or otherwise) of a nature required to be disclosed
on a balance sheet or in the related notes to financial statements prepared in accordance with United States generally accepted
accounting principles ("GAAP"), except liabilities (a) reflected or reserved against in Company's financial
statements and (b) set forth in Section 2.7 of the Company Disclosure Schedule.

 

Section 2.8 Litigation.
Except as set forth in Section 2.8 of the Company Disclosure Schedule, there is no Action by or before any Governmental
Entity or other Person pending or, to the Knowledge of Company, threatened against Company, and it is not subject to any Order
that could prevent the consummation of the transactions contemplated by this Agreement.

 

Section 2.9 Taxes.
Except as and to the extent disclosed in Section 2.9 of the Company Disclosure Schedule:

 

(a) All federal
income Tax Returns and all other material Tax Returns required to be filed by or on behalf of Company have been properly filed
with the appropriate taxing authorities in all jurisdictions in which such Tax Returns are required to be filed, and all such Tax
Returns, as amended, are accurate and complete in all material respects; provided, however, that regardless of what
may be reported on such Tax Returns, Company makes no representation regarding the amount of any net operating losses that are
available to it or have been reported by Company for any federal, state or other Tax purposes, and Company makes no representation
regarding any limitation on use of its net operating losses that might apply either before or after the Closing Date under Section 382
of the Code or any other applicable limitations under any Tax laws, rules or regulations. All material Taxes payable by or
on behalf of Company (whether or not shown in a Tax Return) have been fully paid or adequately provided for in accordance with
GAAP, and adequate reserves or accruals for Taxes have been provided in accordance with GAAP with respect to any period for which
Tax Returns have not yet been filed or for which Taxes are not yet due and owing or for which Taxes are being contested in good
faith. Company has not executed or filed with the IRS or any other taxing authority any agreement, waiver or other document or
arrangement extending or having the effect of extending the period for assessment or collection of Taxes (including, but not limited
to, any applicable statute of limitation), and no power of attorney with respect to any Tax matter is currently in force (other
than powers of attorney authorizing employees of the Company to act on behalf of the Company) and no request for any such waiver
or extension is currently pending. Section 2.9 of the Company Disclosure Schedule contains a list of all jurisdictions
(whether foreign or domestic) to which any Tax is payable by or on behalf of Company and with whom Tax Returns are required to
be filed by or on its behalf, and a list of any jurisdictions (whether foreign or domestic) in which Company is not in good standing
as a result of Tax obligations.

 

    9

     

    

 

 

(b) To the Knowledge
of Company, no audit or other proceeding by any taxing authority is ongoing or pending with respect to any Taxes due from or with
respect to Company, and there is no dispute with respect to any liability for Taxes of Company either claimed, raised, or threatened
in writing. There are no liens for Taxes on any of the assets of Company.

 

(c) Company (i) has
complied in all material respects with all applicable laws, rules and regulations relating to the payment and withholding
of Taxes; and (ii) has duly and timely withheld from any compensation payable and from distributions to any stockholder or
payments to any creditor and has paid over to the appropriate taxing authorities all material amounts required to be withheld and
paid over on or prior to the due date thereof under all applicable laws.

 

(d) Company has
not received written notice from any taxing authority in a jurisdiction in which Company does not file a Tax Return stating that
Company is or may be subject to taxation by that jurisdiction.

 

(e) Company (i) is
not a party to any Tax sharing, Tax indemnity or similar agreement or arrangement, other than any agreement or arrangement between
Company and any of its respective Subsidiaries, pursuant to which it will have any obligation to make any payments after the Closing
and (ii) does not have any liability for the Taxes of any Person other than Company and its Subsidiaries (x) under Treasury
Regulation §1.1502-6 (or similar provision of state, local or foreign law), (y) as transferee or successor or (z) by
contract (except for customary Tax indemnification provisions in commercial contracts not primarily relating to Taxes).

 

(f) Within the past
two (2) years, Company has not distributed stock of another Person in a transaction intended to be governed by Section 355
of the Code, nor has the stock of Company been distributed in a transaction intended to be governed by Section 355 of the
Code.

 

(g) Company has
not engaged in a "reportable transaction" as defined in Treasury Regulation Section 1.6011-4, or any transaction
that is the same as, or substantially similar to, any "listed transactions" as defined in Treasury Regulation Section 1.6011-4(b)(2).

 

(h) Company has
not been at any time a United States Real Property Holding

 

Corporation within the
meaning of Section 897(c)(2) of the Code.

 

(i) Company (i) has
not elected to change, nor is Company required to change, a method of accounting for Tax purposes pursuant to Section 481
of the Code or otherwise that will have a continuing effect following the Closing or (ii) is not the subject of any closing
agreement with respect to Taxes that will have a continuing effect following the Closing.

 

(j) Company has
not made any payments and is not obligated to make any payments, nor is Company a party to any agreement that under certain circumstances
could obligate it to make any payments, that will not be deductible under either Sections 280G or 162(m) of the Code.

 

(k) To the Knowledge
of Company, there are no excess loss accounts, deferred intercompany transactions, or other items of income, gain, loss, deduction
or credit of Company under the federal consolidated return regulations or other comparable or similar provisions of state law that
must be recognized or may be triggered as a result of the consummation of the transactions contemplated by this Agreement.

 

Section 2.10 Environmental
Matters. Company is in compliance in all material respects with (a) all Environmental Laws and (b) the requirements
of all Permits issued under such Environmental Laws with respect to Company. There are no pending or, to the Knowledge of Company,
threatened Actions relating to Environmental Laws against Company.

 

    10

     

    

 

Section 2.11 Intellectual
Property.

 

(a) To the Knowledge
of Company, (i) Company's use of (and practice of any technology claimed by) all patents, patent rights (including patent
applications and licenses), know-how, trade secrets, trademarks (including trademark applications), trademark rights, trade names,
trade name rights, service marks, service mark rights, copyrights and other proprietary intellectual property rights utilized in,
or reasonably necessary to conduct, Company's business as currently conducted (collectively, the "Company Intellectual
Property") does not infringe on, misappropriate, or otherwise violate the intellectual property rights of any third party,
and is in accordance in all material respects with any applicable licenses or other agreements pursuant to which Company acquired
the right to use such Company Intellectual Property and (ii) Company owns sufficient rights and/or interest in the Company
Intellectual Property to conduct its business as currently conducted without infringement, misappropriation, or violation of any
third party's intellectual property rights. The Company Intellectual Property is listed Section 2.11(a) of the Company
Disclosure Schedule.

 

(b) Company has
not received any notice, written or otherwise, and has no Knowledge of, (i) any claim that is pending or threatened, Order,
or proceeding with respect to any Company Intellectual Property or Company's practice of any third party's intellectual property
rights, (ii) any allegation by any third party that Company has infringed, misappropriated, or violated any intellectual property
rights of any third party, or (iii) any notice of any alleged or actual breach of any license or other agreement pursuant
to which Company acquired the right to use any Company Intellectual Property. To the Knowledge of Company, there is no reasonable
basis for any third party to claim of intellectual property right infringement, misappropriation, or violation against Company
with respect to the conduct of Company's business.

 

(c) Company has
maintained commercially reasonable practices to protect the confidentiality of its confidential information and trade secrets and
has required all employees, consultants, and other Persons or entities to whom it provided access to its confidential information
(other than attorneys, accountants, and others with professional duties of confidentiality, to whom this requirement shall not
apply) to execute written agreements requiring them to maintain the confidentiality of such information and to limit his, her or
its use of such information on commercially reasonable terms

 

Section 2.12 Contracts.

 

(a)  Section 2.12(a) of
the Company Disclosure Schedule set forth all Contracts, understandings or proposed transactions to which the Company is a party
or by which it is bound that involve (i) obligations (contingent or otherwise) of, or payments to, the Company in excess of
$10,000, (ii) the license of any patent, copyright, trademark, trade secret or other proprietary right to or from the Company,
(iii) the grant of rights to manufacture, produce, assemble, license, market, or sell its products to any other Person that
limit the Company’s exclusive right to develop, manufacture, assemble, distribute, market or sell its products, or (iv) indemnification
by the Company with respect to infringements of proprietary right (each, a “Material Company Contract”).

 

(b) Each Material
Company Contract is valid and binding on the Company in accordance with its terms and is in full force and effect. None of the
Company or, to the Company's Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach
of or default under), or has provided or received any notice of any intention to terminate, any Material Company Contract. No event
or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any Material
Company Contract or result in a termination thereof or would cause or permit the acceleration or other changes of any right or
obligation or the loss of any benefit thereunder. Complete and correct copies of each Material Company Contract (including all
modifications, amendments and supplements thereto and waivers thereunder) have been made available to Buyer.

 

(c) Except as set
forth in Section 2.12(c) of the Company Disclosure Schedule, neither the execution of this Agreement nor the consummation
of the transactions contemplated hereunder shall constitute a default under, give rise to cancellation rights under, or otherwise
adversely affect any of the material rights of Company under any Material Company Contract.

 

Section 2.13 Labor
and Other Employment Matters.

 

(a) No labor dispute
exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which could reasonably
be expected to result in a Company Material Adverse Effect. Company is in material compliance with all applicable laws respecting
labor, employment, fair employment practices, terms and conditions of employment, workers' compensation, occupational safety, plant
closings, and wages and hours.

 

    11

     

    

 

(b) Except as disclosed
in Section 2.13(b) of the Company Disclosure Schedule, neither the execution and delivery of this Agreement nor
the consummation of the transactions contemplated hereby will (either alone or in conjunction with any other event, such as termination
of employment) (i) result in any payment (including, without limitation, severance, parachute or otherwise) becoming due to
any director or any employee of Company or its Affiliates from Company or its Affiliates under any Company Plan (as hereinafter
defined) or otherwise, (ii) significantly increase any benefits otherwise payable under any Company Plan or (iii) result
in any acceleration of the time of payment or vesting of any material benefits.

 

(c) Except as disclosed
in Section 2.13(c) of the Company Disclosure Schedule, Company is not (i) subject to any obligation to pay
health insurance premiums or make any other payments under any health insurance plan, (ii) obligated to make any payments
to or provide any benefits under COBRA to any former employee, or (iii) to the Knowledge of Company, subject to any outstanding
worker's compensation claims.

 

Section 2.14 Employee
Benefits; ERISA.

 

(a) (i) Each
plan, program, policy, practice, Contract, agreement or other arrangement providing for employment, compensation, retirement, pension,
deferred compensation, loans, severance, separation, relocation, repatriation, expatriation, visas, work permits, termination pay,
performance awards, bonus, incentive, stock option, stock purchase, stock bonus, phantom stock, stock appreciation right, supplemental
retirement, profit sharing, fringe benefits, cafeteria benefits, medical benefits, life insurance, disability benefits, accident
benefits, salary continuation, accrued leave, vacation, sabbatical, sick pay, sick leave, unemployment benefits or other benefits,
whether written or unwritten, including each "voluntary employees' beneficiary association" under Section 501(c)(9) of
the Code and each "employee benefit plan" within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), in each case, for active, retired or former employees, directors or
consultants, which is currently sponsored, maintained, contributed to, or required to be contributed to or with respect to which
any potential liability is borne by Company or any trade or business (whether or not incorporated) that is or at any relevant time
was treated as a single employer with Company within the meaning of Section 414 of the Code (an "ERISA Affiliate")
(collectively, the "Company Plans") complies in all material respects with its terms, the terms of each applicable
collective bargaining agreement, ERISA, the Code and all other applicable statutes and governmental rules and regulations,
(ii) no Company Plan, nor any trust created thereunder, has failed to satisfy the minimum funding standard as described in
Section 302 of ERISA, whether or not waived, (iii) neither Company nor any ERISA Affiliate has withdrawn, and neither
has knowledge of any facts or conditions that could result in a withdrawal, from any "multiemployer plan" (as defined
in Section 3(37) of ERISA), and (iv) no liability under Title IV of ERISA has occurred or is reasonably expected to occur.

 

(b) No Company Plan
provides, or reflects or represents any liability of Company to provide, retiree life insurance, retiree health benefits or other
retiree employee welfare benefits to any Person for any reason, except as may be required by COBRA or other applicable laws. Company
has not represented, promised or contracted (whether in oral or written form) to any employee of Company or any other Person that
such employee or other Person would be provided with retiree life insurance, retiree health benefit or other retiree employee welfare
benefits, except to the extent required by applicable law.

 

(c) For each Company
Plan, Company has furnished to Buyer a copy of such plan (i) if the Company Plan has been reduced to writing, the current
plan document together with all amendments thereto, (ii) if the Company Plan has not been reduced to writing, a written summary
of all material plan terms, (iii) each trust or other funding arrangement (if applicable), (iv) each summary plan description,
or other summary of the Company Plan that describes which employees of Company are covered by the Company Plan, what benefits are
provided, and who pays for such benefits, (v) the most recently filed IRS Form 5500 (if applicable), (vi) the most
recently received IRS determination letter or IRS notification letter for each such Company Plan that is an employee pension benefit
plan (other than a plan that is unfunded and covers only employees who are among the select group of management or highly compensated
employees of Company) ("Company Qualified Plan"), and (vii) if applicable, the most recently prepared actuarial
report and/or financial statement.

 

    12

     

    

 

(d) Each employee
welfare benefit plan is in compliance in all respects with the Patient Protection and Affordable Care Act and its companion bill,
the Health Care and Education Reconciliation Act of 2010 (collectively, the "ACA"), and the rules and regulations
promulgated there under and no federal income Taxes or penalties have been imposed or could be imposed or are due for noncompliance
with ACA or for failure to provide minimum coverage to Employees.

 

(e) Company has
made all contributions, premiums or payments required to be made with respect to any Company Plan on or before their due dates.
No Action is pending, threatened or to the Knowledge of the Company, contemplated with respect to any LBM Plan (other than claims
for benefits in the ordinary course). No event has occurred regarding any Company Qualified Plan that is reasonably likely to result
in the loss of the qualification of such plan under Section 401(a) of the Code or the exempt status of any trust under
Section 501(a) of the Code. With respect to each Company Plan, all required payments, premiums, contributions, distributions,
reimbursements or accruals for all periods (or partial periods) ending prior to or as of the Closing Date shall have been timely
made or properly accrued with the provisions of each of Company Plans, applicable law and GAAP.

 

Section 2.15 Brokers.
Except as set forth in Section 2.15 of the Company Disclosure Schedule, no broker, investment banker or other Person,
is entitled to any broker's, finder's or other similar fee or commission in connection with the transactions contemplated by this
Agreement based upon arrangements made by or on behalf of Company.

 

Section 2.16 Certain
Business Practices; Compliance with Laws. Neither Company nor, to the Knowledge of Company, any directors or officers, agents
or employees of Company, has offered, paid or agreed to pay to any person or entity (including any governmental official) or solicited,
received or agreed to receive from any such person or entity, directly or indirectly, any money or anything of value for the purpose
or with the intent of (a) obtaining or maintaining business for Company, (b) facilitating the purchase or sale of any
product or service, or (c) avoiding the imposition of any fine or penalty, in any manner which is in violation of any applicable
law. To the Knowledge of Company, (a) Company has conducted and continues to conduct business in accordance with all laws
applicable to Company and Company is not in violation of any such law, and (b) Company is not under any investigation, been
charged by a court of competent jurisdiction with or given written notice of any violation with respect to any violation of any
applicable law.

 

Section 2.17 Related
Party Transactions. No executive officer or director of Company or any person owning 5% or more of the shares of Company Common
Stock (or any of such person's immediate family members or Affiliates or associates) is a party to any Contract with or binding
upon Company or any of its respective assets, rights or properties or has any interest in any property owned by Buyer or any Buyer
Operating Sub or has engaged in any transaction with any of the foregoing within the last twelve (12) months.

 

Section 2.18 Company
Financial Statements.

 

(a) The Company
has made available to Buyer correct and complete copies of (i) the unaudited consolidated balance sheet of the Company and
its Subsidiaries as of each of the fiscal years ended December 31, 2015 and 2014 and the related unaudited consolidated statements
of income, stockholders’ equity and cash flows for each of the fiscal years ended December 31, 2015 and 2014 (including
the notes or other supplementary information thereto), and (ii) the unaudited consolidated balance sheet of the Company and
its Subsidiaries as of March 31, 2016 and the unaudited consolidated statements of income, stockholders’ equity and
cash flows for the three months ended March 31, 2016 (all of the foregoing financial statements are collectively referred
to as the “Company Financial Statements”).

 

(b) The Company
Financial Statements (i) have been prepared in conformity with GAAP applied consistently through the periods covered thereby
without material modification of the accounting principles used therein, and (ii) fairly present in all material respects
the financial condition of the Company and its Subsidiaries as of the respective dates thereof and the consolidated results of
the operations and cash flows of the Company and its Subsidiaries for the respective fiscal periods covered thereby, in each case
in accordance with GAAP, except (A) as indicated in any notes or other supplementary information thereto, and (B) that
the unaudited Company Financial Statements do not contain footnotes and are subject to normal year-end audit adjustments (which
shall not be material individually or in the aggregate).

 

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(c) Section 2.18(c) of
the Company Disclosure Schedule sets forth the total amount of outstanding Indebtedness as of the date hereof and the breakdown
of such amount between the different categories of Indebtedness set forth in the definition thereof, and the applicable lender,
counterparty or other party or parties thereof. As of immediately prior to the Closing, the only Indebtedness will be the Bridge
Loan.

 

(d) The Company
does not maintain any “off-balance sheet arrangement” within the meaning of Item 303 of Regulation S-K.

 

(e) There are no
significant deficiencies or material weaknesses in the design or operations of the internal controls over financial reporting relating
to the Company. The Company has implemented disclosure controls and procedures designed to ensure that material information relating
to such entity is made known to the management of such entity by others within such entity. The Company has not have received any
written complaint, allegation or assertion or claim that such entity has engaged in questionable financial reporting, accounting
or auditing practices. To the Knowledge of the Company, there has not been any fraud, whether or not material, that involves the
officers or other employees and former employees of such entity who have a significant role in the internal controls over financial
reporting or written allegations of any such fraud.

 

Section 2.19 Title
to Assets. The Company and its Subsidiaries have good and marketable title in fee simple to, or have valid and marketable rights
to lease or otherwise use, all real property and all personal property that is described in the Company Financial Reports or acquired
after December 31, 2015, in each case free and clear of all Encumbrances, except for (i) Encumbrances that do not materially
affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by
the Company and its Subsidiaries and (ii) liens for the payment of federal, state or other taxes, for which appropriate reserves
have been made in accordance with GAAP, and the payment of which is neither delinquent nor subject to penalties. Any real property
and facilities held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases
with which the Company and the Subsidiaries are in compliance in all material respects.

 

Section 2.20 Representations
Complete. Neither the representations and warranties of Company set forth herein nor the related Company Disclosure Schedule
contain any misstatement of a material fact or omit to state a material fact necessary to prevent the statements made therein from
being misleading.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF BUYER
AND MERGER SUB

 

Buyer and Merger Sub
hereby, jointly and severally, represent and warrant to Company, as qualified by the disclosure schedule delivered by Buyer and
Merger Sub concurrently herewith (the "Buyer Disclosure Schedule") (which Buyer Disclosure Schedule shall be arranged
in sections corresponding to the numbered and lettered sections of this Article III, and any information disclosed
in any such section of the Buyer Disclosure Schedule, if it is readily apparent that the disclosure contained in such section would
clearly apply to other representations and warranties contained in this Article III, would also apply to such other
representations and warranties), as follows:

 

Section 3.1 Organization,
Standing and Power.

 

(a) Buyer is a corporation
duly organized, validly existing and in good standing under the laws of the State of Delaware and has the requisite corporate or
other power and authority to own, lease and operate its properties and assets and to carry on its business as it is now being conducted.

 

(b) As of the Closing,
the entities set forth in Section 3.1 of the Buyer Disclosure Schedule attached hereto (including the Merger Sub) (collectively,
the "Buyer Operating Subs") will be all of the Subsidiaries of Buyer, and each of which is duly organized and
validly existing under the laws of the jurisdiction of its organization and has the requisite corporate power and authority to
own, lease and operate its properties and assets and to carry on its business as it is now being conducted. Other than the Buyer
Operating Subs (as of the Closing Date), Buyer does not, directly or indirectly, own any capital stock, ownership, equity, profits
or voting interest or similar interest in, or any interest convertible into or exchangeable or exercisable for any equity or similar
interest in, any corporation, partnership, limited liability company, joint venture or other business association or entity, and,
except as contemplated in this Agreement, Buyer has not agreed and is not obligated to make nor is bound by any written or oral
agreement, contract, binding understanding, instrument, note, option, warranty, commitment or undertaking of any nature, as of
the date hereof or as may hereafter be in effect under which it may become obligated to make, any future investment in or capital
contribution to any other entity.

 

    14

     

    

 

(c) Prior to the
Closing, Buyer will deliver or make available to Company complete and correct copies, as amended, of its Certificate of Incorporation
(the "Buyer Certificate of Incorporation") and Bylaws (the "Buyer Bylaws") that shall be the
Certificate of Incorporation and Bylaws of Buyer at the Effective Time. The Buyer Certificate of Incorporation and Buyer Bylaws
are in full force and effect. Buyer is not in violation of any of the provisions of such Certificate of Incorporation and Bylaws.

 

Section 3.2 Authority.

 

(a) On or prior
to the date of this Agreement, the Merger Sub Board as well as the Buyer Board and the stockholder of Merger Sub have approved
this Agreement and the transactions contemplated hereby, including the Merger. No additional approvals are required from the Merger
Sub Board, the Buyer Board or the Buyer’s stockholders in connection with the Merger or the other transactions contemplated
hereby.

 

(b) Each of Buyer
and Merger Sub has all requisite corporate power and authority to enter into this Agreement, to perform its obligations hereunder,
and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by Buyer and Merger Sub and
the consummation by Buyer and Merger Sub of the transactions contemplated hereby have been duly and validly authorized by all necessary
corporate action on the part of Buyer and Merger Sub (other than the filing of the Certificate of Merger as required by the DGCL)
and no other corporate proceedings on the part of Buyer and Merger Sub are necessary to authorize this Agreement or to consummate
the transactions contemplated hereby. This Agreement has been duly executed and delivered by each of Buyer and Merger Sub and (assuming
the valid authorization, execution and delivery of this Agreement by Company and the validity and binding effect of this Agreement
on Company) constitutes the legal, valid and binding obligation of each of Buyer and Merger Sub, enforceable against each of Buyer
and Merger Sub in accordance with its terms, except to the extent enforceability may be limited by the Bankruptcy and Equity Exception.

 

Section 3.3 SEC
Documents and Other Reports. Buyer has timely filed with the Securities and Exchange Commission (the “SEC”)
all reports, schedules, forms, statements, prospectuses, registration statements and other documents, as such documents may be
amended or supplemented, required to be filed with or furnished to the SEC by it since January 1, 2015 (collectively, together
with any exhibits and schedules thereto and other information incorporated therein, the "Buyer SEC Documents").
As of their respective filing dates, or, if amended, as of the date of the last amendment prior to the date of this Agreement,
the Buyer SEC Documents complied in all material respects with the requirements of applicable laws and, at the respective times
they were filed, none of the Buyer SEC Documents contained any untrue statement of a material fact or omitted 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.

 

Section 3.4 Consents
and Approvals; No Violation.

 

(a) The execution
and delivery of this Agreement by each of Buyer and Merger Sub do not, and the performance of this Agreement by each of Buyer and
Merger Sub will not, (i) conflict with or violate any provision of the Buyer Certificate of Incorporation or Buyer Bylaws
or any equivalent organizational documents of any Buyer Operating Sub (including Merger Sub), (ii) conflict with or violate
any law applicable to Buyer or any Buyer Operating Sub, or (iii) except for those already obtained, require any consent or
approval under, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
any Contract or other instrument or obligation.

 

(b) The execution
and delivery of this Agreement by Buyer do not, and the performance of the Agreement by Buyer will not, require any consent, approval,
authorization or Permit of, or filing with or notification to, any Governmental Entity or any other Person, except for those already
obtained or under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Securities Act and
the filing and recordation of the Certificate of Merger as required by the DGCL.

 

    15

     

    

 

Section 3.5 Regulatory
Compliance.

 

(a) Except as disclosed
in the Buyer SEC Documents, there is no civil, criminal or administrative action, suit, demand, claim, complaint, hearing, investigation,
demand letter, warning letter, proceeding or request for information pending against Buyer or any Buyer Operating Sub, and, to
the Knowledge of Buyer, Buyer has no liability (whether actual or contingent) for failure to comply with FDA Law and Regulation
or any law or regulation of a comparable foreign regulatory or Governmental Entity.

 

(b) Except as disclosed
in the Buyer SEC Documents, to the Knowledge of Buyer, each of the product candidates of Buyer and Buyer Operating Subs are being,
and at all times have been, developed, tested, manufactured, labeled, promoted and stored, as applicable, in material compliance
with FDA Law and Regulation and requirements of comparable foreign regulatory and Governmental Entities and, to the extent the
foregoing activities have been performed on Buyer's behalf by any third party contractors, Buyer has exercised reasonable diligence
in requiring such contractors to comply with applicable FDA Law and Regulation or any law or regulation of a comparable foreign
regulatory or Governmental Entity.

 

(c) Except as disclosed
in the Buyer SEC Documents, to the Knowledge of Buyer, the clinical trials, studies and other preclinical tests conducted by Buyer
and any Buyer Operating Sub were, and if still pending, are, being conducted in all material respects in accordance with all experimental
protocols, informed consents, procedures and controls of Buyer and applicable FDA and foreign requirements including, but not limited
to, good clinical practices, good laboratory practices, and FDA Law and Regulation including the protection of human subjects and,
to the extent the foregoing activities have been performed on Buyer' behalf by any third party contractors, Buyer has exercised
reasonable diligence in requiring such contractors to comply with applicable FDA Law and Regulation or any law or regulation of
a comparable foreign regulatory or Governmental Entity.

 

(d) Except as disclosed
in the Buyer SEC Documents, with respect to all Third Party Manufacturers used by Buyer or any Buyer Operating Sub, (i) to
the Knowledge of Buyer, each such Third Party Manufacturer (A) has complied and is complying, in each case in all material
respects, with all laws, including FDA Law and Regulation and any similar state or foreign laws and (B) has all material Permits
to perform its obligations as a Third Party Manufacturer and all such Permits are in full force and effect and (ii) Buyer
and all Buyer Operating Subs have exercised reasonable diligence in requiring all Third Party Manufacturers to comply with applicable
FDA Law and Regulation or any law or regulation of a comparable foreign regulatory or Governmental Entity.

 

(e) Except as disclosed
in the Buyer SEC Documents, in connection with Buyer' and Buyer Operating Subs' businesses, no director, officer, employee or agent
of Buyer or any Buyer Operating Sub has (x) made any untrue statement of material fact or fraudulent statement to the FDA
or any other Governmental Entity, (y) failed to disclose a material fact required to be disclosed to the FDA or any other
Governmental Entity or (z) committed an act, made a statement, or failed to make a statement that would reasonably be expected
to provide the basis for the FDA or any other Governmental Entity to invoke its policy respecting "Fraud, Untrue Statements
of Material Facts, Bribery, and Illegal Gratuities," as set forth in CPG. Section 120.100.

 

(f) Except as disclosed
in the Buyer SEC Documents, Buyer and all Buyer Operating Subs have complied with all applicable security and privacy standards
regarding protected health information pursuant to HIPAA or any foreign equivalent and applicable privacy laws.

 

(g) Except as disclosed
in the Buyer SEC Documents, to the extent applicable, Buyer and all Buyer Operating Subs have applied to the FDA and all comparable
foreign regulatory or Governmental Entities for and received all FDCA Permits necessary to conduct the business of Buyer and all
Buyer Operating Subs as currently conducted. Buyer and all Buyer Operating Subs are in material compliance with all such FDCA Permits.
To the Knowledge of Buyer, no suspension, revocation, cancellation or withdrawal of the FDCA Permits is threatened and there is
no basis for believing that such FDCA Permits will not be renewable upon expiration or will be suspended, revoked, cancelled, modified
or withdrawn.

 

Section 3.6 Intellectual
Property. Except as disclosed in the Buyer SEC Documents:

 

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(a) to the Knowledge
of Buyer, (i) the use of (and practice of any technology claimed by) all patents, patent rights (including patent applications
and licenses), know-how, trade secrets, trademarks (including trademark applications), trademark rights, trade names, trade name
rights, service marks, service mark rights, copyrights and other proprietary intellectual property rights utilized in, or reasonably
necessary to conduct, Buyer' and Buyer Operating Subs' businesses as currently conducted (collectively, the "Buyer Intellectual
Property") by Buyer and the Buyer Operating Subs does not infringe on, misappropriate, or otherwise violate the intellectual
property rights of any third party, and is in accordance in all material respects with any applicable licenses or other agreements
pursuant to which Buyer or the Buyer Operating Subs acquired the right to use such Buyer Intellectual Property and (ii) Buyer
and the Buyer Operating Subs own sufficient rights and/or interest in the Buyer Intellectual Property to conduct their businesses
as currently conducted without infringement, misappropriation, or violation of any third party's intellectual property rights;

 

(b) neither Buyer
nor any Buyer Operating Sub has received any notice, written or otherwise, nor has any Knowledge of, (i) any claim that is
pending or has been threatened in writing, Order or proceeding with respect to any Buyer Intellectual Property or Buyer' or any
Buyer Operating Sub's practice of any third party's intellectual property rights, (ii) any allegation by any third party that
Buyer or any Buyer Operating Sub has infringed, misappropriated, or violated any intellectual property rights of any third party,
or (iii) any notice of any alleged or actual breach of any license or other agreement pursuant to which Buyer or any Buyer
Operating Sub acquired the right to use Buyer Intellectual Property; and

 

(c) Buyer and all
Buyer Operating Subs have maintained commercially reasonable practices to protect the confidentiality of their confidential information
and trade secrets and have required all employees, consultants, and other persons or entities to whom they provided access to their
confidential information (other than attorneys, accountants, and others with professional duties of confidentiality, to whom this
requirement shall not apply) to execute written agreements requiring them to maintain the confidentiality of such information and
to limit his, her or its use of such information on commercially reasonable terms.

 

Section 3.7 Brokers.
No broker, investment banker or other Person, is entitled to any broker's, finder's or other similar fee or commission in connection
with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer.

 

Section 3.8 Operations
of Merger Sub. Merger Sub is a direct, wholly-owned Subsidiary of Buyer, was formed solely for the purpose of engaging in the
transactions contemplated hereby, has engaged in no other business activities and has conducted its operations only as contemplated
hereby.

 

Section 3.9 Buyer
Financial Statements.

 

(a) The Buyer has
made available to Company correct and complete copies of (i) the audited consolidated balance sheet of the Buyer and its Subsidiaries
as of each of the fiscal years ended June 30, 2015 and 2014 and the related audited consolidated statements of income, stockholders’
equity and cash flows for each of the fiscal years ended June 30, 2015 and 2014 (including the notes or other supplementary
information thereto), and (ii) the unaudited consolidated balance sheet of the Buyer and its Subsidiaries as of December 31,
2015 and the unaudited consolidated statements of income, stockholders’ equity and cash flows for the six months ended December 31,
2015 (all of the foregoing financial statements are collectively referred to as the “Buyer Financial Statements”).

 

(b) The Buyer Financial
Statements (i) have been prepared in conformity with GAAP applied consistently through the periods covered thereby without
material modification of the accounting principles used therein, and (ii) fairly present in all material respects the financial
condition of the Buyer and its Subsidiaries as of the respective dates thereof and the consolidated results of the operations and
cash flows of the Buyer and its Subsidiaries for the respective fiscal periods covered thereby, in each case in accordance with
GAAP, except (A) as indicated in any notes or other supplementary information thereto, and (B) that the unaudited
Buyer Financial Statements do not contain footnotes and are subject to normal year-end audit adjustments (which shall not be material
individually or in the aggregate).

 

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(c) The Buyer does
not maintain any “off-balance sheet arrangement” within the meaning of Item 303 of Regulation S-K.

 

(e) There are no
significant deficiencies or material weaknesses in the design or operations of the internal controls over financial reporting relating
to the Buyer. The Buyer has implemented disclosure controls and procedures designed to ensure that material information relating
to such entity is made known to the management of such entity by others within such entity. The Buyer has not have received any
written complaint, allegation or assertion or claim that such entity has engaged in questionable financial reporting, accounting
or auditing practices. To the Knowledge of the Buyer, there has not been any fraud, whether or not material, that involves the
officers or other employees and former employees of such entity who have a significant role in the internal controls over financial
reporting or written allegations of any such fraud.

 

Section 3.10 Taxes.
Except as and to the extent disclosed in Section 3.10 of the Buyer Disclosure Schedule:

 

(a) Unless otherwise
disclosed in the Buyer SEC Documents, Buyer and the Buyer Operating Subs (i) have complied with all applicable Tax laws, (ii) have
filed all necessary Tax Returns required to be filed by them, and such Tax Returns are accurate and complete in all material respects,
and (iii) have paid all due and owing amounts of Tax, whether or not set forth on a Tax Return. For any Taxes not yet due
and owing, Buyer and the Buyer Operating Subs have made adequate provision for such Taxes in the Buyer Financial Statements, in
accordance with GAAP.

 

(b) The most recent
Buyer Financial Statements of Buyer and the Buyer Operating Subs reflect adequate reserves (in accordance with GAAP) for all material
Taxes payable through the date of such Buyer Financial Statements. Since the date of the most recent Buyer Financial Statements,
neither Buyer nor any of the Buyer Operating Subs has incurred any material liability for Taxes arising outside the ordinary course
of business consistent with past custom and practice.

 

(c) Unless otherwise
disclosed in the Buyer SEC Documents, all deficiencies asserted or assessed by a taxing authority against the Buyer and the Buyer
Operating Subs have been paid in full or are adequately reserved in the Buyer Financial Statements, in accordance with GAAP.

 

(d) Unless otherwise
disclosed in the Buyer SEC Documents, there are no liens for Taxes on any of the assets of Buyer and the Buyer Operating Subs.

 

Section 3.11 Contracts.

 

(a) Neither Buyer
nor any Buyer Operating Sub is a party to or bound by any Contract that would prohibit or materially delay the consummation of
the Merger or any of the other transactions contemplated by this Agreement.

 

(b) Except as set
forth in Section 3.11(b) of the Buyer Disclosure Schedule, neither Buyer nor any Buyer Operating Sub has received
any claim of default, notice of termination, notice of violation of covenant or other notice of third party dissatisfaction under
any Contract or agreement that extends beyond one year in duration and involves consideration of more than Ten Million Dollars
($10,000,000) in the aggregate over the remaining term of such Contract or agreement (each a "Material Buyer Contract").

 

(c) Neither Buyer
nor any Buyer Operating Sub is in breach or violation of, or default under, any Material Buyer Contract, which breach, violation
or default would have a Buyer Material Adverse Effect.

 

(d) Each Material
Buyer Contract is a legal, valid and binding agreement of Buyer or the Buyer Operating Sub party thereto, subject to the Bankruptcy
and Equity Exception.

 

(e) Neither Buyer
nor any Buyer Operating Sub has received any notice, written or otherwise, with respect to a claim of default, notice of termination,
notice of violation of covenant or other notice of third party dissatisfaction under any Material Buyer Contract, and neither Buyer
nor any Buyer Operating Sub is in breach or violation of, or default under, any Material Buyer Contract.

 

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(f) To the Knowledge
of Buyer, no other party is in breach or violation of, or default under, any Material Buyer Contract.

 

(g) Except as set
forth in Section 3.11(g) of the Buyer Disclosure Schedule, neither the execution of this Agreement nor the consummation
of the transactions contemplated hereunder shall constitute a default under, give rise to cancellation rights under, or otherwise
adversely affect any of the material rights of Buyer or any Buyer Operating Sub under any Material Buyer Contract.

 

Section 3.12 Environmental
Matters. Except as disclosed in the Buyer SEC Documents, Buyer and the Buyer Operating Subs are in compliance in all material
respects with (a) all Environmental Laws and (b) the requirements of all Permits issued under such Environmental Laws
with respect to Buyer and the Buyer Operating Subs. There are no pending or, to the Knowledge of Buyer, threatened Actions relating
to Environmental Laws against Buyer or any Buyer Operating Sub.

 

Section 3.13 Insurance.
Except as disclosed in the Buyer SEC Documents, Buyer and the Buyer Operating Subs maintain insurance coverage with reputable insurers
in such amounts and covering such risks as are in accordance with normal industry practice for companies engaged in businesses
similar to that of Buyer (taking into account the cost and availability of such insurance).

 

Section 3.14 Labor
and Other Employment Matters. Except as disclosed in the Buyer SEC Documents, Buyer and each Buyer Operating Sub is in material
compliance with all applicable laws respecting labor, employment, fair employment practices, terms and conditions of employment,
workers' compensation, occupational safety, wages and hours. Furthermore, none of the execution and delivery of this Agreement
or the consummation of the transactions contemplated hereby will (either alone or in conjunction with any other event, such as
termination of employment) (i) result in any payment (including, without limitation, severance, parachute or otherwise) becoming
due to any director or any employee of Buyer, any Buyer Operating Sub or their Affiliates from Buyer, any Buyer Operating Subs
or their Affiliates, or (ii) result in any acceleration of the time of payment or vesting of any material benefits. Except
as disclosed in Section 3.14 of the Buyer Disclosure Schedule and Buyer SEC Documents, Buyer is not (i) subject
to any obligation to pay health insurance premiums or make any other payments under any health insurance plan, (ii) obligated
to make any payments to or provide any benefits under COBRA to any former employee, nor (iii) to the Knowledge of Buyer, subject
to any outstanding worker's compensation claims.

 

Section 3.15 Employee
Benefits; ERISA. Except as disclosed in the Buyer SEC Documents:

 

(a) (i) Each
plan, program, policy, practice, Contract, agreement or other arrangement providing for employment, compensation, retirement, pension,
deferred compensation, loans, severance, separation, relocation, repatriation, expatriation, visas, work permits, termination pay,
performance awards, bonus, incentive, stock option, stock purchase, stock bonus, phantom stock, stock appreciation right, supplemental
retirement, profit sharing, fringe benefits, cafeteria benefits, medical benefits, life insurance, disability benefits, accident
benefits, salary continuation, accrued leave, vacation, sabbatical, sick pay, sick leave, unemployment benefits or other benefits,
whether written or unwritten, including each "voluntary employees' beneficiary association" under Section 501(c)(9) of
the Code and each "employee benefit plan" within the meaning of Section 3(3) ERISA, in each case, for active,
retired or former employees, directors or consultants, which is currently sponsored, maintained, contributed to, or required to
be contributed to or with respect to which any potential liability is borne by Buyer or any trade or business (whether or not incorporated)
that is or at any relevant time was treated as an ERISA Affiliate (collectively, the "Buyer Plans") complies in
all material respects with its terms, the terms of each applicable collective bargaining agreement, ERISA, the Code and all other
applicable statutes and governmental rules and regulations, (ii) no Buyer Plan, nor any trust created thereunder, has
failed to satisfy the minimum funding standard as described in Section 302 of ERISA, whether or not waived, (iii) neither
Buyer nor any ERISA Affiliate has withdrawn, and neither has knowledge of any facts or conditions that could result in a withdrawal,
from any "multiemployer plan" (as defined in Section 3(37) of ERISA), and (iv) no liability under Title IV
of ERISA has occurred or is reasonably expected to occur.

 

(b) Buyer has made
all contributions, premiums or payments required to be made with respect to any Buyer Plan on or before their due dates. No Action
is pending or threatened with respect to any Buyer Plan (other than claims for benefits in the ordinary course). No event has occurred
regarding any Buyer Qualified Plan that is reasonably likely to result in the loss of the qualification of such plan under Section 401(a) of
the Code or the exempt status of any trust under Section 501(a) of the Code. With respect to each Buyer Plan, all required
payments, premiums, contributions, distributions, reimbursements or accruals for all periods (or partial periods) ending prior
to or as of the Closing Date shall have been timely made or properly accrued with the provisions of each of Buyer Plans, applicable
law and GAAP.

 

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Section 3.16 Absence
of Certain Changes or Events. Since December 31, 2015, except in connection with the execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby, the business of Buyer and the Buyer Operating Sub has been conducted
in the ordinary course of business and there has not been or occurred any event that could reasonably be expected to have, individually
or in the aggregate, a Buyer Material Adverse Effect.

 

Section 3.17 Related
Party Transactions. Except as disclosed in the Buyer SEC Documents, no executive officer or director of Buyer or any Buyer
Operating Sub or any person owning 5% or more of the shares of Buyer Common Stock (or any of such person's immediate family members
or Affiliates or associates) is a party to any Contract with or binding upon Buyer or any Buyer Operating Sub or any of their respective
assets, rights or properties or has any interest in any property owned by Buyer or any Buyer Operating Sub or has engaged in any
transaction with any of the foregoing within the last twelve (12) months.

 

Section 3.18 Representations
Complete. Neither the representations and warranties of Buyer set forth herein nor the related Buyer Disclosure Schedule contain
any misstatement of a material fact or omit to state a material fact necessary to prevent the statements made therein from being
misleading.

 

ARTICLE IV

 

ADDITIONAL AGREEMENTS

 

Section 4.1 Reasonable
Best Efforts. Subject to the terms and conditions of this Agreement, each party will use its reasonable best efforts to take,
or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable law
to consummate the transactions contemplated by this Agreement, including preparing and filing as promptly as practicable all documentation
to effect all necessary filings, notices, petitions, statements, submissions of information, applications and other documents,
and to obtain all Permits which are material to Company or Buyer, taken as a whole, with respect to the transactions contemplated
by this Agreement.

 

Section 4.2 Public
Announcements. Buyer and Company will not issue any press release with respect to the transactions contemplated by this Agreement
or otherwise issue any written public statements with respect to such transactions without prior consultation with the other party,
except as may be required by applicable law (but then shall still provide a copy of the disclosure to the other party), and agreeing
on the content thereof.

 

Section 4.3 Notification
of Certain Matters. Buyer shall use its reasonable best efforts to give prompt notice to Company, and Company shall use its
reasonable best efforts to give prompt notice to Buyer, of (a) the occurrence, or non-occurrence, of any event the occurrence,
or non- occurrence, of which it is aware and which would be reasonably likely to cause (i) any representation or warranty
of the notifying party contained in this Agreement to be untrue or inaccurate at the Effective Time such that the applicable condition
to closing set forth in Article V would, or would reasonably be expected to, fail to be satisfied or (ii) any
covenant, condition or agreement of the notifying party contained in this Agreement not to be complied with or satisfied such that
the applicable condition to closing set forth in Article V would, or would reasonably be expected to, fail to be satisfied,
or (b) any failure of the notifying party to comply in a timely manner with or satisfy any covenant, condition or agreement
to be complied with or satisfied by it hereunder; provided, however, that the delivery of any notice pursuant to
this Section 4.3 shall not limit or otherwise affect the remedies available hereunder to the party receiving such notice.

 

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Section 4.4 Stockholder
Litigation. Subject to the agreement of Company's insurance carrier, Company shall give Buyer the opportunity to participate
in the defense or settlement of any stockholder litigation against Company and/or their respective directors or officers relating
to the transactions contemplated by this Agreement by providing written notice of such litigation to Buyer within a reasonable
time after Company learns of the litigation. Company agrees that it shall not settle or offer to settle any litigation against
Company or any of its respective directors or officers by any Stockholder relating to this Agreement, the Merger, any other transaction
contemplated by this Agreement or otherwise, for an amount greater than covered by its insurance carrier, without the prior written
consent of Buyer (such consent not to be unreasonably withheld, conditioned or delayed).

 

Section 4.5 Certain
Tax Matters.

 

(a) Buyer shall
prepare and timely file, or cause to be prepared and timely filed, all Tax Returns in respect of Company that relate to (i) taxable
periods ending on or before the Closing Date but are required to be filed after the Closing Date, or (ii) taxable periods
beginning on or before and ending after the Closing Date. At least fifteen (15) Business Days prior to the due date (taking into
account any extension) for the filing of any Tax Return described in the preceding sentence, Buyer shall deliver a copy of such
Tax Return to the Stockholder Representative for the Stockholder Representative’s review and shall incorporate any reasonable
comment that the Stockholder Representative submits to Buyer no less than five (5) Business Days prior to the due date for
such Tax Return.

 

(b) If, subsequent
to the Closing, Buyer or the Surviving Corporation receives notice of any audit, claim, inquiry, assessment or similar proceeding
with respect to Taxes of Company for a taxable period (or portion thereof) ending on or before the Closing Date (a “Tax Contest”),
then within fifteen (15) days after receipt of such notice, Buyer shall notify the Stockholder Representative of such notice. The
Stockholder Representative shall have the right to control the conduct and resolution of any Tax Contest for which the Indemnifying
Parties could reasonably be expected to be required to indemnify any Indemnified Party pursuant to Section 7.2; provided,
however, that the Stockholder Representative shall keep Buyer reasonably informed of the progress of such Tax Contest and shall
not effect any settlement or compromise of such Tax Contest without obtaining Buyer’s prior written consent thereto, which
consent shall not be unreasonably withheld. Buyer shall have the right to control the conduct and resolution of all other Tax Contests
(including Tax Contests described in the preceding sentence that the Stockholder Representative elects not to control); provided,
however, that Buyer shall keep the Stockholder Representative reasonably informed of the progress of any such Tax Contest and shall
not effect any settlement or compromise of such Tax Contest without obtaining the Stockholder Representative’s prior written
consent thereto, which consent shall not be unreasonably withheld. In the event of any conflict between the provisions of this
Section 4.5(b) and Section 7.5 with respect to Tax Contests, the provisions of this Section 4.5(b) shall
control.

 

(c) Buyer shall
bear any transfer, stamp, documentary, sales, use, registration, value added and other similar Taxes incurred in connection with
this Agreement and the transactions contemplated hereby.

 

(d) Company shall
deliver to Buyer by the Closing Date a certification by Company that meets the requirements of Treasury Regulations Section 1.1445-2(c)(3),
dated within 30 days prior to the Closing Date and in form and substance reasonably acceptable to Buyer.

 

Section 4.6 Development.
Following the Closing, Buyer shall act in good faith and shall use Milestone Diligence Efforts to cause each of the Milestone
Events to be achieved as promptly as reasonably practicable following the Closing. Buyer shall not enter into an agreement
after the Closing (i) with respect to a Buyer Liquidation Event or (ii) whereby Buyer or the Surviving Corporation
directly or indirectly sells, licenses, conveys, assigns or otherwise transfers all or any significant portion of Buyer
Intellectual Property rights or other interests (“Buyer Intellectual Property Conveyance”) in and to CPI- 431-32
to a third party unless, in each case such third party that succeeds to the rights of Buyer or the Surviving Corporation to
develop CPI-431-32 (collectively, a “Successor Entity”) assumes the obligations of Buyer and the Surviving
Corporation, as applicable, contained in this Agreement with respect to the development of CPI-431-32, including the
Milestone Diligence Efforts and other agreements set forth in this Section 4.6 and the payment of the Milestone
Payments; provided that for purposes of the definition of Milestone Diligence Efforts with respect to such Successor Entity,
the reference to “Buyer” in such definition shall still be deemed to refer to Buyer, and not to the Successor
Entity, as Buyer existed prior to any transactions related to the acquisition of any rights or obligations by the Successor
Entity.

 

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Section 4.7 Operation
of the Company’s Business.

 

(a)            Ordinary
Course. From the date of this Agreement until the earlier of the termination of this Agreement pursuant to its terms or the
Closing (the ”Pre-Closing Period”), the Company shall, except as otherwise expressly contemplated by this Agreement
or to the extent that Buyer shall otherwise consent in writing (which consent shall not be unreasonably withheld, delayed or conditioned),
(i) conduct its business and operations in the ordinary course and in substantially the same manner as such business and operations
have been conducted prior to the date of this Agreement, and (ii) use commercially reasonable efforts to preserve intact its
current business organization, keep available the services of its current officers and employees and maintain its relations and
good will with all suppliers, customers, landlords, creditors, employees and other Persons having business relationships with the
Company.

 

(b)            Required
Consent. In addition, without limiting the generality of Section 4.7(a), except as permitted or contemplated by
the terms of this Agreement without the prior written consent of Buyer (which consent shall not be unreasonably withheld, delayed
or conditioned), during the Pre-Closing Period, the Company shall not directly or indirectly do any of the following:

 

		(i)	declare, accrue, set aside or pay any dividend or make any other distribution in respect of any
shares of capital stock, nor repurchase, redeem or otherwise reacquire any shares of capital stock or other securities;

 

		(ii)	sell, issue or authorize the issuance of (i) any capital stock or other security, (ii) any
option or right to acquire any capital stock or other security, or (iii) any instrument
convertible into or exchangeable for any capital stock or other security;

 

		(iii)	amend or permit the adoption of any amendment to the certificate
of incorporation or bylaws of the Company, or effect the Company to become a party to any recapitalization, reclassification of
shares, stock split, reverse stock split or similar transaction;

 

		(iv)	form any subsidiary or acquire any equity interest or other
interest in any other Person;

 

		(v)	make any capital expenditure, except for capital expenditures that, when added to all other capital
expenditures made on behalf of the Company from the date of this Agreement until the Closing, do not exceed $5,000 per month;

 

		(vi)	enter into, or permit any of the assets owned or used by it to become bound by, any Material Company
Contract, or amend or prematurely terminate, or waive any material right or remedy under, any Material Company Contract;

 

		(vii)	lend money or pay any bonuses to any Person (except that the Company may make routine travel advances
to employees or consultants in the ordinary course of business and consistent with past practices), or incur or guarantee any indebtedness
for borrowed money;

 

		(viii)	establish, adopt or amend any Company Plan, pay any bonus or make any profit-sharing payment, cash
incentive payment or similar payment to, or increase the amount of the wages, salary, commissions, fringe benefits or other compensation
or remuneration payable to, any of its directors, officers or employees, or hire any new employees;

 

		(ix)	change any of its methods of accounting or accounting practices
in any material respect;

 

		(x)	make any Tax election other than Tax elections within the ordinary course of business, consistent
with past practice;

 

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		(xi)	commence or settle any Actions; and

 

		(xii)	agree or commit to take any of the actions described in clauses “(i)”
through “(xii)” above.

 

Section 4.8 Notification
by Company; Updates to Company Disclosure Schedule.

 

(a) During
the Pre-Closing Period, the Company shall promptly notify Buyer in writing of:

 

(i) the
discovery by the Company of any event, condition, fact or circumstance that occurred or existed on or prior to the date of this
Agreement and that caused or constitutes in any material respect an inaccuracy in or breach of any representation or warranty made
by the Company in this Agreement (as modified by the Company Disclosure Schedule);

 

(ii) any
event, condition, fact or circumstance that occurs, arises or exists after the date of this Agreement and that would cause or constitute
in any material respect an inaccuracy in or breach of any representation or warranty made by the Company in this Agreement if (A) such
representation or warranty had been made as of the time of the occurrence, existence or discovery of such event, condition, fact
or circumstance, or (B) such event, condition, fact or circumstance had occurred, arisen or existed on or prior to the date
of this Agreement;

 

(iii) any
material breach of any covenant or obligation of the Company; and

 

(iv) any
event, condition, fact or circumstance that would make the satisfaction of any of the conditions set forth in Article V impossible
or unlikely.

 

(b) If
any event, condition, fact or circumstance that is required to be disclosed pursuant to Section 4.9 (a) requires any
change in the Company Disclosure Schedule, or if any such event, condition, fact or circumstance would require such a change assuming
the Company Disclosure Schedule were dated as of the date of the occurrence, existence or discovery of such event, condition, fact
or circumstance, then the Company shall promptly deliver to Buyer an update to the Company Disclosure Schedule specifying such
change. No such update shall be deemed to supplement or amend the Company Disclosure Schedule for the purpose of (i) determining
the accuracy of any of the representations and warranties made by the Company in this Agreement (including for purposes of indemnification
pursuant to Article VII), or (ii) determining whether any of the conditions of Article V has been satisfied.

 

Section 4.9 Notification
by Buyer.

 

(a) During
the Pre-Closing Period, the Buyer shall promptly notify the Company in writing of:

 

(i) the
discovery by the Buyer of any event, condition, fact or circumstance that occurred or existed on or prior to the date of this Agreement
and that caused or constitutes in any material respect an inaccuracy in or breach of any representation or warranty made by Buyer
in this Agreement;

 

(ii) any
event, condition, fact or circumstance that occurs, arises or exists after the date of this Agreement and that would cause or constitute
in any material respect an inaccuracy in or breach of any representation or warranty made by the Buyer in this Agreement if (A) such
representation or warranty had been made as of the time of the occurrence, existence or discovery of such event, condition, fact
or circumstance, or (B) such event, condition, fact or circumstance had occurred, arisen or existed on or prior to the date
of this Agreement;

 

(iii) any
material breach of any covenant or obligation of Parent; and

 

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(iv) any
event, condition, fact or circumstance that would make the satisfaction of any of the conditions set forth in Article V impossible
or unlikely.

 

Section 4.10 No
Negotiation. During the Pre-Closing Period, the Company shall not, directly or indirectly:

 

(a) solicit
or encourage the initiation of any inquiry, proposal or offer from any Person (other than Buyer relating to a possible Acquisition
Transaction;

 

(b) participate
in any discussions or negotiations or enter into any agreement with, or provide any non-public information to, any Person (other
than Parent) relating to or in connection with a possible Acquisition Transaction; or

 

(c) consider,
entertain or accept any proposal or offer from any Person (other than Buyer) relating to a possible Acquisition Transaction.

 

The Company shall promptly
notify Buyer in writing of any inquiry, proposal or offer relating to a possible Acquisition Transaction that is received by the
Company or any of its respective affiliates during the Pre-Closing Period.

 

ARTICLE V

 

CONDITIONS PRECEDENT TO THE MERGER

 

Section 5.1 Conditions
to Each Party's Obligation to Effect the Merger. The respective obligations of each party to effect the Merger shall be subject
to the fulfillment or waiver by Buyer and Company at or prior to the Closing Date of the following conditions:

 

(a) No Injunctions
or Restraints. No temporary restraining order, preliminary or permanent injunction or other judgment, Order or decree issued
by a court or agency of competent jurisdiction preventing the consummation of the Merger shall have been issued and remain in effect,
and no law shall have been enacted, issued, enforced, entered, or promulgated that prohibits or makes illegal the consummation
of the Merger.

 

(b) No Litigation.
There shall not be pending any Action by any Governmental Entity seeking to prohibit the consummation of the Merger or any other
material transactions contemplated by this Agreement that is reasonably likely to succeed.

 

(c) Employment
Agreements. Buyer and each of Robert Foster, Daren Ure and Dan Trepanier shall have entered into and delivered to Buyer employment
agreements in the forms attached hereto as Exhibits A-1, A-2 and A-3, respectively.

 

(d) Consulting
Agreement. Buyer and Michael Kamdar shall have entered into and delivered to Buyer a consulting agreement in the form attached
hereto as Exhibit B.

 

Section 5.2 Conditions
to Obligation of Buyer to Effect the Merger. The obligation of Buyer to effect the Merger shall be subject to the fulfillment,
or waiver by Buyer, at or prior to the Effective Time of the following additional conditions:

 

(a) Performance
of Obligations. Company shall have performed its agreements contained in this Agreement required to be performed on or prior
to the Closing Date and shall have complied with all covenants and conditions required to be performed or complied with by it under
this Agreement at or prior to the Closing Date.

 

(b) Representations
and Warranties. The representations and warranties of Company contained in this Agreement shall be true and correct in all
material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality
or Company Material Adverse Effect, which representations and warranties as so qualified will be true in all respects) as of the
date of this Agreement and as of the Closing Date as if made on and as of the Closing Date (except to the extent expressly made
as of an earlier date, in which case as of such earlier date).

 

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(c) Consents
and Approvals. Company shall have received all necessary consents and approvals from all relevant Governmental Entities, and
Company shall have made all necessary filings or notices to Governmental Entities. Company shall have obtained all consents and
approvals of each Person that is not a Governmental Entity that is required to have been obtained by Company in connection with
the transactions contemplated hereby.

 

(d) Officer's
Certificate. Buyer shall have received from Company a certificate of an executive officer of Company (i) as to the satisfaction
of the conditions set forth in this Section 5.2, (ii) attaching a certified copy of resolutions duly adopted by
the Company Board approving this Agreement and consummation of the Merger and the transactions contemplated hereby, and (iii) attaching
a certified copy of the Company Stockholder Approval.

 

(e) Closing Statement.
Buyer shall have received from Company the Closing Statement.

 

Section 5.3 Conditions
to Obligations of Company to Effect the Merger. The obligations of Company to effect the Merger shall be subject to the fulfillment,
or waiver by Company, at or prior to the Effective Time of the following additional conditions:

 

(a) Performance
of Obligations. Each of Buyer and Merger Sub shall have performed each of its agreements contained in this Agreement required
to be performed on or prior to the Closing Date and shall have complied with all covenants and conditions required to be performed
or complied with by it under this Agreement at or prior to the Closing Date.

 

(b) Representations
and Warranties. The representations and warranties of Buyer and Merger Sub contained in this Agreement shall be true and correct
in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality
or Buyer Material Adverse Effect, which representations and warranties as so qualified will be true in all respects)as of the date
of this Agreement and as of the Closing Date as if made on and as of the Closing Date (except to the extent expressly made as of
an earlier date, in which case as of such earlier date).

 

(c) Consents
and Approvals. Buyer and Merger Sub shall have received all necessary consents and approvals from all relevant Governmental
Entities, and Buyer and Merger Sub shall have made all necessary filings or notices to Governmental Entities. Buyer and Merger
Sub shall have obtained all consents and approvals of each Person that is not a Governmental Entity that is required to have been
obtained by Buyer and Merger Sub in connection with the transactions contemplated hereby.

 

(d) SEC Reports.
Buyer shall have timely filed with the SEC all reports, forms, schedules, statements and other documents required to be filed or
furnished by Buyer with the SEC, or distributed or otherwise disseminated to Buyer' stockholders in connection with the transactions
contemplated herein, and any amendments or supplements thereto, when filed, furnished, distributed or disseminated, as applicable,
and such reports, forms, schedules, statements and other documents shall have complied in all material respects as to form and
with the requirements of applicable law as of the Closing Date.

 

(e) Officer's
Certificate. Company shall have received from Buyer a certificate of an executive officer of Buyer (i) as to the satisfaction
of the conditions set forth in this Section 5.3, and (ii) attaching a certified copy of resolutions duly adopted
by the Buyer Board and the Merger Sub Board approving this Agreement and consummation of the Merger and the transactions contemplated
hereby.

 

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ARTICLE VI

 

TERMINATION

 

Section 6.1 Termination.
This Agreement may be terminated and the Merger may be abandoned at any time prior to the Effective Time:

 

(a) by mutual written
consent of Buyer and Company, duly authorized, or by mutual action of their respective Boards of Directors;

 

(b) by either Buyer
or Company:

 

(i) if the Merger
shall not have been consummated on or before July 31, 2016 (as mutually extended until the Outside Date); provided,
however, that the right to terminate this Agreement under this Section 6.1(b)(i) shall not be available
to any party whose material breach of a representation, warranty or covenant in this Agreement has been a principal cause of the
failure of the Merger to be consummated on or before the Outside Date; or

 

(ii) if any Governmental
Entity of competent jurisdiction shall have issued an Order or taken any other action permanently restraining, enjoining or otherwise
prohibiting the Merger, and, in each case, such Order or action shall have become final and non- appealable; provided, however,
that the right to terminate under this Section 6.1(b)(ii) shall not be available to any party whose material breach
of a representation, warranty or covenant in this Agreement has been the principal cause of such action;

 

(c) by Buyer (provided
it is not then in material breach of any of its obligations under this Agreement) (i) upon a material breach of any representation,
warranty, covenant or agreement on the part of Company as set forth in this Agreement, or if any representation or warranty of
Company shall have become untrue, in either case such that the applicable conditions set forth in Article V would not
be satisfied as of the time of such breach or as of the time such representation or warranty shall have become untrue; provided,
however, if such breach is curable by Company, Buyer may not terminate this Agreement under this Section 6.1(c) for
so long as Company continues to exercise its best efforts to cure such breach, unless such breach is not cured within thirty (30)
days after notice of such breach is provided by Buyer to Company, or (ii) if the Company Board (or any subgroup or committee
thereof) withdraws, modifies or changes its recommendation of this Agreement or the Merger in a manner adverse to Buyer or shall
have resolved to do any of the foregoing; or

 

(d) by Company (provided
that it is not then in material breach of any of its obligations under this Agreement) (i) upon a material breach of any representation,
warranty, covenant or agreement on the part of Buyer or Merger Sub as set forth in this Agreement, or (ii) if any representation
or warranty of Buyer or Merger Sub shall have become untrue, in either case such that the applicable conditions set forth in Article V
would not be satisfied as of the time of such breach or as of the time such representation or warranty shall have become untrue;
provided, however, if such breach is curable by Buyer or Merger Sub, Company may not terminate this Agreement under
this Section 6.1(d) for so long as Buyer continues to exercise its best efforts to cure such breach, unless such
breach is not cured within thirty (30) days after notice of such breach is provided by Company to Buyer.

 

The right of any party hereto to terminate
this Agreement pursuant to this Section 6.1 shall remain operative and in full force and effect regardless of any investigation
made by or on behalf of any party hereto, any Person controlling any such party or any of their respective officers or directors,
whether prior to or after the execution of this Agreement.

 

Section 6.2 Effect
of Termination. In the event of termination of this Agreement by either Buyer or Company, as provided in Section 6.1,
this Agreement shall forthwith become void, and there shall be no liability hereunder on the part of Company, Buyer or Merger Sub,
or their respective officers or directors (except for confidentiality agreements, Section 4.2, this Section 6.2
and the entirety of Article VII and Article VIII, all of which shall survive the termination). Nothing
contained in this Section 6.2 shall relieve any party hereto from any liability for any breach of a representation
or warranty contained in this Agreement or the breach of any covenant contained in this Agreement or prevent a party from exercising
its rights under Section 8.8.

 

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ARTICLE VII

 

INDEMNIFICATION

 

Section 7.1 Survival
of Representations and Warranties.

 

(a) The representations
and warranties of Company contained in this Agreement shall survive the Closing Date until the twenty-four (24) month anniversary
of the Closing Date; provided, however, that (i) the representations and warranties made pursuant to Sections
2.1, 2.3, 2.4 and 2.15 ("Fundamental Representations") shall survive indefinitely, and
(ii) the representations and warranties made pursuant to Sections 2.9, 2.10, 2.13 and 2.14 shall
survive until the expiration of the relevant statute of limitations plus 60 days. If written notice of a claim has been given prior
to the expiration of the applicable representations and warranties by a Buyer Indemnified Party to Company, then the relevant representations
and warranties shall survive as to such claim, until such claim has been finally resolved.

 

Section 7.2 Indemnification.
Subject to the terms and conditions of this Article VII: Stockholders, severally and not jointly (in accordance with
the Closing Statement) (each, an “Indemnifying Party” and collectively, the “Indemnifying Parties”),
shall indemnify and defend each of Buyer and its Affiliates (including the Company) and their respective Representatives (each,
an “Indemnified Party” and collectively, the "Indemnified Parties") against, and shall hold
each of them harmless from and against, and shall pay and reimburse each of them for, any and all Damages or amounts that are paid
in settlement (collectively, the "Indemnification Liabilities") incurred or sustained by, or imposed upon, the
Indemnified Parties based upon, arising out of, with respect to or by reason of:

 

(a) any inaccuracy in
or breach of any of the representations or warranties of the Company contained in this Agreement or in any certificate or instrument
delivered by or on behalf of the Company pursuant to this Agreement), as of the date such representation or warranty was made or
as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties that expressly
relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date);

 

(b) any breach or non-fulfillment
of any covenant, agreement or obligation to be performed by the Company pursuant to this Agreement;

 

(c) any claim made by
any Stockholder relating to such Person's rights with respect to the Merger Consideration or Milestone Payments;

 

(d) any amounts paid to
the holders of Dissenting Shares, including any interest required to be paid thereon, that are in excess of what such holders would
have received hereunder had such holders not been holders of Dissenting Shares;

 

(e) Transaction
Expenses to the extent not paid at closing from by Buyer pursuant to Section 1.4(b) or any Indebtedness outstanding
at closing; or

 

(f) all Actions,
claims or demands incident to any of the foregoing or initiated to enforce the indemnification provisions in this Agreement.

 

Section 7.3 Limitations on Indemnification.

 

(a) In no event
shall Company or the Stockholders be liable for claims of Damages pursuant to Section 7.2 or otherwise in an amount in excess
of 10% of the aggregate of any remaining Milestone Payments which may be paid subsequent to the time of such claim (the “Liability
Cap”). Notwithstanding the foregoing, the Liability Cap shall not be applicable to Damages related to claims for breach of
any Fundamental Representation.

 

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(b) If an amount
has been claimed by an Indemnified Party pursuant to Section 7.2 of this Agreement (whether or not finally determined to be
owed by the Stockholders), Buyer may setoff (the “Right of Setoff”) such amounts claimed against subsequent Milestone
Payments payable by Buyer after such claim (if required to be paid pursuant to Section 1.5(a)), on a dollar for dollar basis.
In the event a claim for indemnification under this Article VII shall have been finally determined, the amount of the related
Damages (after taking into account the limitations of Section 7.3(a)) shall be paid solely through the Right of Setoff to
the extent not previously setoff. Once a claim is finally determined in accordance with this Agreement, if the Damages relating
to such claim are determined to be less than the amount setoff against the Milestone Payment, Parent shall notify the Stockholder
Representative. Thereafter, the Stockholder Representative shall prepare a payment allocation schedule showing the portion of such
amount to be paid to each Stockholder and deliver such payment allocation schedule to Buyer. Within five (5) Business Days
following Buyer’s receipt of such payment allocation schedule, Buyer shall pay, or cause to be paid, to each Stockholder
the portion of such amount set forth opposite such Stockholder’s name on such payment allocation schedule in immediately
available funds by check or by wire transfer to such bank account or accounts as may be specified on such payment allocation schedule.
For avoidance of doubt, Buyer shall not be permitted under this Section 7.3(b) to seek a setoff for Damages against any
Milestone Payments if such amounts have been previously paid to the Stockholders.

 

(c) From and after
the Effective Time, the Right of Setoff shall be the sole and exclusive remedy with respect to any breach of any representation,
warranty, covenant or agreement, of Company contained in, or any other claims based upon, arising out of, or otherwise in respect
of, this Agreement. No current or former stockholder, director, officer, employee, agent, consultant, Affiliate or advisor of Company
shall have any liability of any nature to an Indemnified Party with respect to any breach of any representation, warranty, covenant
or agreement contained in, or any other claims based upon, arising out of, or otherwise in respect of, this Agreement.

 

(d) Without limiting
the effect of any other limitation contained in this Article VII, the indemnification provided for in Section 7.2 shall
not apply except to the extent that the aggregate Damages against which an Indemnified Party would otherwise be entitled to be
indemnified under this Article VII exceeds $25,000 (the “Basket”), in which event the Indemnified Party shall,
subject to the other limitations contained herein, be entitled to be indemnified only against the portion of such Damages in excess
of the Basket; provided, however, the Basket shall not apply to any claims related to a breach of any Fundamental Representation.

 

(e) For purposes
of computing the amount of any Damages incurred by an Indemnified Party under Section 7.2, there shall be deducted an amount
equal to the amount of (i) any insurance proceeds actually received or reasonably expected to be received by the Indemnified
Party or any of its Affiliates in connection with such Damages or any of the circumstances giving rise thereto (it being understood
that the Indemnified Party and any of its Affiliates shall use commercially reasonable efforts to obtain such proceeds) and (ii) any
Tax benefit realized by the Indemnified Party or any of its Affiliates in connection with such Damages.

 

(f) Nothing in this
Section 7.3 shall limit, and neither the Liability Cap nor the Basket nor the limitations on the Right of Setoff set forth
in Section 7.3(b) shall apply to, any remedy Buyer may have against any Person for actual fraud involving a knowing and
intentional misrepresentation of a fact material to the transactions contemplated by this Agreement made with the intent of inducing
any other party hereto to enter into this Agreement and upon which such other party has relied (as opposed to any fraud claim based
on constructive knowledge, negligent misrepresentation or a similar theory) under applicable tort laws.

 

Section 7.4 Tax
Treatment of Indemnity Payments. Any payments made to any party pursuant to this Article VII shall constitute a purchase
price adjustment for Tax purposes and shall be treated as such by Buyer and Stockholders on their Tax Returns to the extent permitted
by law.

 

Section 7.5 Notice
of Claim; Third Party Claims.

 

(a) An Indemnified
Party shall give the Indemnifying Party notice of any matter that an Indemnified Party has determined has given or could give rise
to a right of indemnification under this Agreement, within five (5) Business Days of such determination, stating the amount
of the Indemnification Liabilities, if known, and method of computation thereof, and containing a reference to the provisions of
this Agreement in respect of which such right of indemnification is claimed or arises. Within ten (10) Business Days after
receiving notice of a claim for indemnification, the Indemnifying Party shall, by written notice to the Indemnified Party, either
concede or deny liability for the claim in whole or in part. Any payment shall be made in immediately available funds equal to
the amount of such claim so payable. If the Indemnifying Party denies liability in whole or in part or advises that the matters
set forth in the notice are, or will be, subject to contest or legal proceedings not yet finally resolved, then the Indemnifying
Party shall make no payment (except for the amount of any conceded liability payable as set forth above) until the matter is resolved
in accordance with this Agreement.

 

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(b) If an Indemnified
Party shall receive notice of any Action, audit, demand or assessment by a third party (each, a "Third Party Claim")
against it or which may give rise to a claim for Indemnification Liabilities under this Article VII, within five (5) Business
Days after receipt of such claim, the Indemnified Party shall give the Indemnifying Party notice of such Third Party Claim; provided,
however, that the failure to provide such notice shall not release the Indemnifying Party from any of its obligations under
this Article VII, except to the extent that the Indemnifying Party is materially prejudiced by such failure, and shall
not relieve the Indemnifying Party from any other obligation or liability that it may have to any Indemnified Party otherwise than
under this Article VII. If within ten (10) Business Days after receiving the notice of the Third Party Claim,
the Indemnifying Party (i) gives written notice to the Indemnified Party stating that the Indemnifying Party disputes and
intends to defend against such claim, liability or expense at the Indemnifying Party's own cost and expense and (ii) provides
assurance reasonably acceptable to such Indemnified Party that such indemnification will be paid fully and promptly if required
and such Indemnified Party will not incur cost or expense during the proceeding, then counsel for the defense shall be selected
by the Indemnifying Party (subject to the consent of such Indemnified Party, which consent shall not be unreasonably withheld or
delayed) and such Indemnifying Party shall not be required to make any payment to the Indemnified Party with respect to such claim,
liability or expense as long as the Indemnifying Party is conducting a good faith and diligent defense at its own expense; provided,
however, that the assumption of defense of any such matters by the Indemnifying Party shall relate solely to the claim,
liability or expense that is subject or potentially subject to indemnification under this Article VII. If the Indemnifying
Party assumes such defense in accordance with the preceding sentence, it shall have the right, with the consent of such Indemnified
Party, which consent shall not be unreasonably withheld, conditioned or delayed, to settle all indemnifiable matters related to
claims by third parties which are susceptible to being settled, provided the Indemnifying Party's obligation to indemnify
such Indemnified Party therefor will be fully satisfied only by payment of money by the Indemnifying Party pursuant to a settlement
which includes a complete release of such Indemnified Party. The Indemnifying Party shall keep such Indemnified Party reasonably
apprised of the status of the claim, liability or expense and any resulting suit, proceeding or enforcement Action, shall furnish
such Indemnified Party with all documents and information that such Indemnified Party shall reasonably request and shall consult
with such Indemnified Party prior to acting on major matters, including settlement discussions. Notwithstanding anything herein
stated, such Indemnified Party shall at all times have the right to fully participate in such defense at its own expense directly
or through counsel; provided, however, if the named parties to the Action or proceeding include both the Indemnifying
Party and the Indemnified Party and counsel for the Indemnified Party reasonably determines that representation of both parties
by the same counsel would be inappropriate under applicable standards of professional conduct, then the reasonable expense of separate
counsel for such Indemnified Party shall be paid by the Indemnifying Party, provided that such Indemnifying Party shall
be obligated to pay for only one counsel for the Indemnified Party in any jurisdiction. If no such notice of intent to dispute
and defend is given by the Indemnifying Party, or if such diligent good faith defense is not being or ceases to be conducted, such
Indemnified Party may undertake the defense of (with counsel selected by such Indemnified Party), and shall have the right to compromise
or settle such claim, liability or expense (exercising reasonable business judgment) with the consent of the Indemnifying Party.
If such claim, liability or expense is one that by its nature cannot be defended solely by the Indemnifying Party, then such Indemnified
Party shall make available all information and assistance that the Indemnifying Party may reasonably request and shall cooperate
with the Indemnifying Party in such defense.

 

Section 7.6 Subrogation.
To the extent that an Indemnified Party is entitled to and receives indemnification pursuant to this Article VII, the Indemnifying
Party shall be entitled to exercise, and shall be subrogated (on a non-recourse basis and without any representation or warranty
by the Indemnified Party) to, any rights and remedies (including rights of indemnity, rights of contribution and other rights of
recovery) that the Indemnified Party or any of the Indemnified Party’s subsidiaries or other Affiliates may have against
any other person with respect to any damages, circumstances or matter to which such indemnification is directly related. The Indemnified
Party shall take such actions as the Indemnifying Party may reasonably request for the purpose of enabling the Indemnifying Party
to perfect or exercise the right of subrogation of the Indemnifying Party under this Section 7.5. Any payment received in
respect of such rights and remedies shall be distributed, first, to the Indemnifying Party in an amount equal to the aggregate
payments made by the Indemnifying Party to the Indemnified Party in respect of such indemnification and, second, the balance, if
any, to the Indemnified Party.

 

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Section 7.7 Limitation
on Damages. Notwithstanding anything to the contrary elsewhere in this Agreement or provided for under any applicable law,
(a) no party nor the Stockholders’ Representative, nor any current or former Stockholder or director, officer, employee,
consultant, affiliate or advisor of any of the foregoing, shall, in any event, be liable to any other person, either in contract,
tort or otherwise, for any special, indirect, consequential, exemplary or punitive damages or any damages associated with any lost
profits or lost opportunities of such other person (including loss of future revenue, income or profits, diminution of value or
loss of business reputation) relating to the breach or alleged breach hereof, whether or not the possibility of such damages has
been disclosed to the other party in advance or could have been reasonably foreseen by such other party; and (b) the Milestone
Payment amounts payable by Buyer shall be considered direct damages, and not otherwise special, indirect, or consequential in nature.

 

ARTICLE VIII

 

GENERAL PROVISIONS

 

Section 8.1 Notices.
All notices and other communications hereunder shall be in writing and shall be deemed given when delivered personally, one day
after being delivered to a nationally recognized overnight courier or on the Business Day received (or the next Business Day if
received after 5:00 p.m. local time or on a weekend or day on which banks are closed) or when sent by electronic mail (with
a confirmatory copy sent by overnight courier) to the parties at the following addresses (or at such other address for a party
as shall be specified by like notice):

 

	 	(a) 	if to Buyer or Merger Sub, to:
	 	 	 
	 	 	
        ContraVir Pharmaceuticals, Inc.

        399 Thornall Street, First Floor

        Edison, New Jersey 08837

        Email: jcavan@contravir.com

         

        with a copy to:

         

        Sichenzia Ross Friedman Ference LLP

        61 Broadway, 32nd Floor

        New York, New York 10006

        Attention: Jeffrey Fessler, Esq.

        Email: jfessler@srff.com

	 	 	 
	 	(b)	if to Company, to:
	 	 	 
	 	 	
        Ciclofilin Pharmaceuticals, Inc.

        12707 High Bluff Drive, Suite 201

        San Diego, CA 92130

        Email:

         

        with a copy to:

         

        Latham & Watkins LLP

        12670 High Bluff Drive

        San Diego, CA 92130

        Attention: Cheston J. Larson, Esq.

        Email: cheston.larson@lw.com

 

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Section 8.2 Interpretation.
When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement unless otherwise
indicated. The table of contents, table of defined terms and headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words "include," "includes"
or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation."
The words "hereof," "herein" and "hereunder" and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All terms defined in this Agreement
shall have the defined meanings when used in any certificate or other document made or delivered pursuant thereto unless otherwise
defined therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such
terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement, instrument or statute defined
or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute
as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent
and, in the case of statutes, by succession of comparable successor statutes and references to all attachments thereto and instruments
incorporated therein. Each of the parties has participated in the drafting and negotiation of this Agreement. If an ambiguity or
question of intent or interpretation arises, this Agreement must be construed as if it is drafted by all the parties, and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of authorship of any of the provisions of this Agreement.

 

Section 8.3 Counterparts.
This Agreement may be executed in counterparts, all of which shall be considered one and the same agreement, and shall become effective
when one or more counterparts have been signed by each of the parties and delivered to the other parties. In the event that any
signature is delivered by facsimile transmission or email attachment, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or email-attached
signature page were an original thereof.

 

Section 8.4 Entire
Agreement; No Third-Party Beneficiaries. This Agreement constitutes the entire agreement and supersedes all prior agreements
and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement. This Agreement
is not intended to confer upon any Person other than the parties hereto (and the Indemnified Parties) any rights or remedies hereunder;
provided, however, that following the Effective Time, each Stockholder shall be entitled to enforce the provisions
of Article I to the extent necessary to receive the Merger Consideration to which such holder is entitled pursuant
to Article I.

 

Section 8.5 Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving
effect to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction
other than the State of New York.

 

Section 8.6 Amendment.
This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto.

 

Section 8.7 Waiver.
At any time prior to the Effective Time, the parties hereto may, to the extent legally allowed: (i) extend the time for the
performance of any of the obligations or other acts of the other parties hereto, (ii) waive any inaccuracies in the representations
and warranties contained herein or in any document delivered pursuant hereto, and (iii) waive compliance with any of the covenants,
agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be
valid only if set forth in an instrument in writing signed on behalf of such party.

 

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Section 8.8 Specific
Performance; Submission to Jurisdiction. The parties agree that irreparable damage would occur if any of the provisions of
this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that each of the parties shall be entitled (in addition to any other remedy that may be available to it, including monetary damages)
to seek an injunction or injunctions to prevent breaches of this Agreement and to seek to enforce specifically the terms and provisions
of this Agreement exclusively in the Supreme Court of the State of New York, New York County, and any state appellate court therefrom
within the State of New York, New York County, or in the United States District Court for the Southern District of New York. In
addition, each of the parties irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights
and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights
and obligations arising hereunder brought by any other party hereto or its successors or assigns, shall be brought and determined
exclusively in the Supreme Court of the State of New York, New York County, and any state appellate court therefrom within the
State of New York, New York County, or in the United States District Court for the Southern District of New York. Each of the parties
hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and
unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to
this Agreement or any of the transactions contemplated by this Agreement in any court other than the aforesaid courts. Each of
the parties hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in
any action or proceeding with respect to this Agreement, (a) any claim that it is not personally subject to the jurisdiction
of the above named courts for any reason other than the failure to serve, (b) any claim that it or its property is exempt
or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice,
attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the
fullest extent permitted by the applicable law, any claim that (i) the suit, action or proceeding in such court is brought
in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper, or (iii) this Agreement, or
the subject matter of this Agreement, may not be enforced in or by such courts. Buyer, Merger Sub and Company hereby consent to
service being made through the notice procedures set forth in Section 8.1 and agree that service of any process, summons,
notice or document by registered mail (return receipt requested and first-class postage prepaid) to the respective addresses set
forth in Section 8.1 shall be effective service of process for any suit or proceeding in connection with this Agreement
or the transactions contemplated by this Agreement.

 

Section 8.9 Waiver
of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT
SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (a) NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (b) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS
WAIVER, (c) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (d) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.9.

 

Section 8.10 Assignment.
Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto
(whether by operation of law or otherwise) without the prior written consent of the other parties.

 

Section 8.11 Stockholder
Representative.

 

(a) Appointment.
(i) By voting or executing a written consent in favor of the adoption of this Agreement, the approval of the principal terms
of the Merger, and the consummation of the Merger or participating in the Merger and receiving the benefits thereof, including
the right to receive the Merger Consideration, each Stockholder shall be deemed to have approved the designation of, and hereby
designates, Robert Foster, Pharm.D., Ph.D. (and by execution of this Agreement Dr. Foster hereby accepts such appointment)
as exclusive agent and attorney-in-fact for and on behalf of the Stockholders (in their capacity as such), with full power of substitution,
to act in the name, place and stead of each Stockholder with respect to this Agreement. Following the Effective Time, the Stockholder
Representative may take any and all actions and make any decisions that he believes are necessary or appropriate under this Agreement
for and on behalf of the Stockholders as if the Stockholders were acting on their own behalf, including, giving and receiving any
notice or instruction permitted or required under this Agreement by the Stockholder Representative or any Stockholder, interpreting
all of the terms and provisions of this Agreement, authorizing payments to be made with respect hereto, dealing with the Buyer
under this Agreement with respect to all matters arising under this Agreement, taking any and all other actions specified in or
contemplated by this Agreement and engaging counsel, accountants or other agents in connection with the foregoing matters. Notwithstanding
the foregoing, the Stockholder Representative shall have no obligation to act on behalf of the Stockholder, except as expressly
provided herein. Without limiting the generality of the foregoing, following the Effective Time, the Stockholder Representative
shall have full power and authority to interpret all the terms and provisions of this Agreement on behalf of all of the Stockholders
and to consent to any amendment hereof or thereof on behalf of all of the Stockholders. Each Stockholder hereby agrees to receive
correspondence from the Stockholder Representative, including in electronic form.

 

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(ii)            The
powers, immunities and rights granted to the Stockholder Representative in this Section 8.11: (i) are coupled
with an interest and shall be irrevocable, (ii) may be delegated by the Stockholder Representative, and (iii) shall survive
the death, incompetence, bankruptcy, liquidation or incapacity of each Stockholder and shall be binding on any successor thereto.
The Stockholder Representative may resign at any time and such Person may be changed by the holders of a majority in interest of,
collectively, (i) the shares of Company Common Stock, and any such successor shall succeed the Stockholder Representative
as Stockholder Representative hereunder; provided that Buyer is provided with at least ten (10) Business Days prior written
notice of such upcoming change to the Stockholder Representative. The immunities and rights set forth herein shall survive the
resignation or removal of the Stockholder Representative and the Closing and/or any termination of this Agreement. No bond shall
be required of the Stockholder Representative, and the Stockholder Representative shall receive no compensation for its services
in his capacity as Stockholder Representative.

 

(b)  Actions
of the Stockholder Representative. From and after the Effective Time, a decision, act, consent or instruction of the Stockholder
Representative shall constitute a decision of all Stockholders and shall be final, binding and conclusive upon each Stockholder
and such Stockholder’s successors as if expressly confirmed and ratified in writing by such Stockholder, and Buyer and the
Surviving Corporation shall be entitled to deal exclusively with the Stockholder Representative on all matters set forth in this
Agreement and may rely upon any decision, act, consent or instruction of the Stockholder Representative as being the decision,
act, consent or instruction of each Stockholder. The Stockholder Representative shall be entitled to: (i) rely upon the Closing
Equity Payment Allocation Schedule, (ii) rely upon any signature believed by it to be genuine, and (iii) reasonably assume
that a signatory has proper authorization to sign on behalf of the applicable Stockholder or other party. Further, all defenses
which may be available to any Stockholder to contest, negate or disaffirm the action of the Stockholder Representative taken in
good faith under this Agreement are waived.

 

Section 8.12 Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or
public policy, all other terms, conditions and provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic and legal substance of the transactions contemplated hereby are not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the
parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as
possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement may be consummated as originally
contemplated to the fullest extent possible.

 

Section 8.13 Legal
Representation. Each party hereto acknowledges that it has been given the opportunity to be represented by independent legal
counsel in the preparation of this Agreement and hereby waives any allegations that it has not been represented by its own counsel.
The language used in this Agreement will be deemed to be the language chosen by the parties with the advice of counsel to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

Section 8.14 Definitions.
In this Agreement, the following terms have the meanings specified or referred to in this Section 8.14 and shall be
equally applicable to both the singular and plural forms.

 

(a) "$"
means United States dollars.

 

(b) “Acquisition
Transaction” shall mean any transaction or series of transactions involving:

 

(i) the
sale, license or disposition of all or a material portion of any of the Company’s business or assets;

 

(ii) the
issuance, disposition or acquisition of: (i) any capital stock or other equity security of the Company (other than Company
Common Stock issued to employees of the Company upon exercise of Company Options); (ii) any option, call, warrant or right
(whether or not immediately exercisable) to acquire any capital stock, unit or other equity security of any of the Company; or
(iii) any security, instrument or obligation that is or may become convertible into or exchangeable for any capital stock,
unit or other equity security of the Company; or

 

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(iii) any
merger, consolidation, business combination, reorganization or similar transaction involving the Company.

 

(c) "Action"
means any claim, action, suit, proceeding, arbitration, mediation or investigation.

 

(d) "Affiliate"
means, with respect to any Person, any other Person which directly or indirectly controls, is controlled by or is under common
control with such Person. The term "control" means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract
or otherwise, and the terms "controlled" and "controlling" have meanings correlative thereto.

 

(e) “Bridge
Loan” means that certain 1% Convertible Note due October 12, 2016 issued by the Company to Buyer on April 12,
2016 in the amount of $200,000.

 

(f) “Buyer
Liquidation Event” means and shall be deemed to be occasioned by, or to include, (i) the merger or consolidation
of Buyer by means of any transaction or series of related transactions with or into another entity, provided that the applicable
transaction shall not be deemed a Buyer Liquidation Event unless Buyer’s stockholders constituted immediately prior to such
transaction do not hold more than fifty percent (50%) of the voting power of the surviving or acquiring entity immediately following
such transaction; (ii) any transaction or series of related transactions to which Buyer is a party in which in excess of fifty
percent (50%) of Buyer’s voting power is transferred; provided that a Buyer Liquidation Event shall not include any transaction
or series of related transactions principally for bona fide equity financing purposes in which cash is received by Buyer or indebtedness
of Buyer is cancelled or converted or a combination thereof occurs; or (iii) a sale, pledge, exclusive license or other disposition
of all or substantially all of the assets of Buyer to a Person that Buyer does not hold at least fifty percent (50%) of the voting
power of or to a Person in which the stockholders of Buyer immediately prior to such transaction do not hold at least fifty percent
(50%) of the voting power immediately following such transaction.

 

(g) "Business
Day" means any day other than a Saturday, Sunday or a day on which the banks in New York are authorized by law or executive
order to be closed.

 

(h) "Buyer
Material Adverse Effect" means a Material Adverse Effect with respect to Buyer.

 

(i) “Closing
Statement” means the statement prepared by the Company (in accordance with the same accounting principles and methodologies
used to prepare the Company Financial Statements) setting forth (1) the unpaid Transaction Expenses and (2) the names,
addresses, and other contact information for the Stockholders, including the payment instructions for the unpaid Transaction Expenses.

 

(j) "Contract"
means any contract, agreement, instrument, guarantee, indenture, note, bond, mortgage, Permit, franchise, concession, commitment,
lease, license, arrangement, obligation or understanding, whether written or oral.

 

(k) "Damages"
means any and all damages, liabilities, obligations, penalties, fines, judgments, claims, deficiencies, losses, costs, expenses
and assessments (including, without limitation, income and other taxes, interest, penalties and reasonable attorneys' and accountants'
fees and disbursements).

 

(l) "Encumbrance"
means, with respect to any asset, any mortgage, deed of trust, lien, pledge, charge, security interest, title retention device,
collateral assignment, adverse claim, restriction or other encumbrance of any kind in respect of such asset (including any restriction
on the voting of any security, any restriction on the transfer of any security or other asset, any restriction on the receipt of
any income derived from any asset, any restriction on the use of any asset and any restriction on the possession, exercise or transfer
of any other attribute of ownership of any asset).

 

    34

     

    

 

(m) "Environmental
Laws" means any national, federal, provincial, state or local law, statute, ordinance, rule, regulation, license, Permit,
authorization, approval, consent, court order, judgment, decree, injunction, code requirement or agreement with any Governmental
Entity (x) relating to pollution (or the cleanup thereof or the filing of information with respect thereto), human health
or the protection of air, surface water, ground water, drinking water supply, land (including land surface or subsurface), plant
and animal life or Damages for injury or loss of natural resources, or (y) concerning exposure to, or the use, storage, recycling,
treatment, generation, transportation, processing, handling, labeling, production or disposal of Regulated Substances, in each
case as amended and as now or hereafter in effect. The term "Environmental Laws" includes, without limitation, any common
law or equitable doctrine (including, without limitation, injunctive relief and tort doctrines such as negligence, nuisance, trespass
and strict liability) that may impose liability or obligations for injuries or Damages due to or threatened as a result of the
presence of, exposure to, or ingestion of, any Regulated Substance.

 

(n) "Governmental
Entity" means any domestic or foreign governmental, administrative, judicial or regulatory authority.

 

(o) “Indebtedness”
shall mean, with respect to the Company or any subsidiary, without duplication: (1) any indebtedness for borrowed money, whether
current, short-term or long-term, secured or unsecured, including the principal, interest and fees owing under the Notes; (2) any
obligations evidenced by bonds, notes, debentures, letters of credit or similar instruments; (3) any obligations under conditional
sale, title retention or similar agreements or agreements creating an obligation with respect to the deferred purchase price of
property, securities or other assets (including “earn-out” payments); (4) any capital lease obligations (other
than capital lease obligations in respect of office equipment); (5) any net obligations in respect of interest rate and currency
swaps, collars, caps, hedges or similar arrangements; (6) any accrued interest, premiums, penalties and other obligations
relating to the foregoing payable in connection with the repayment thereof on or prior to the Closing Date; and (7) any obligations
to guarantee any of the foregoing types of obligations on behalf of any Person other than the Company.

 

(p) "IRS"
means the Internal Revenue Service.

 

(q) "Knowledge
of Company" means the actual knowledge of the directors, officers and key employees of Company.

 

(r) "Knowledge
of Buyer" means the actual knowledge of the directors, officers and key employees of Buyer and Buyer Operating Subs.

 

(s) "Legal
Requirement" means any and all laws (statutory, judicial or otherwise), ordinances, regulations, judgments, Orders, directives,
injunctions, writs, decrees or awards of, and any Contracts with, any Governmental Entity, in each case as and to the extent applicable
to a Person or such Person's business, operations or properties.

 

(t) "Company
Material Adverse Effect" means a Material Adverse Effect with respect to Company.

 

(u) "Material
Adverse Effect" means any change, effect, event or occurrence that has a material adverse effect on the assets, business,
financial condition or results of operations of a Person taken as a whole or that would reasonably be expected to prevent or materially
delay a party hereto from performing its obligations under this Agreement in any material respect or materially delay consummating
the transactions contemplated hereby provided, however, that "Material Adverse Effect" shall not
include any change, effect, event or occurrence, directly or indirectly, arising out of or attributable to: (i) general economic
or political conditions; (ii) conditions generally affecting the industries in which Company or Buyer operates; (iii) any
changes in financial, banking or securities markets in general, including any disruption thereof and any decline in the price of
any security or any market index or any change in prevailing interest rates; (iv) acts of war (whether or not declared), armed
hostilities or terrorism, or the escalation or worsening thereof; (v) any action required or permitted by this Agreement or
any action taken (or omitted to be taken) with the written consent of or at the written request of the other parties hereto; (vi) any
matter of which Company or Buyer is aware on the date hereof; (vii) any changes in applicable laws or accounting rules; (viii) the
announcement, pendency or completion of the transactions contemplated by this Agreement, including losses or threatened losses
of employees, customers, suppliers, distributors or others; (ix) any natural or man-made disaster or acts of God; or (x) any
failure to meet any internal or published projections, forecasts or revenue or earnings predictions (provided that the underlying
causes of such failures (subject to the other provisions of this definition) shall not be excluded).

 

    35

     

    

 

(v) “Milestone
Diligence Efforts” means the performance of commercially reasonable efforts and obligations in a sustained manner consistent
with the efforts and resources a pharmaceutical company of similar resources as Buyer typically devotes in pursuing, in a reasonably
timely manner, the development and approval of its own product candidates of similar market potential, profit potential or strategic
value at a similar stage in its lifecycle.

 

(w) "Order"
means any order, injunction, judgment, decree or ruling enacted, adopted, promulgated or applied by a Governmental Entity or arbitrator.

 

(x) "Outside
Date" means September 30, 2016.

 

(y) "Permits"
means any and all permits, rights, approvals, licenses, authorizations, legal status, orders or Contracts under any Legal Requirement
or otherwise granted by any Governmental Entity.

 

(z) "Person"
means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, estate,
Governmental Entity, trust or unincorporated organization.

 

(aa) “Phase
I Positive Data” means that CPI-431-32 shall have demonstrated sufficient safety and tolerability in healthy subjects
to support a Phase II clinical trial.

 

(bb) “Phase
II Positive Data” means that CPI-431-32 shall have demonstrated that it shows good efficacy versus Hepatitis B virus
either alone or in combination with CMX-157. Good efficacy is defined as a 2 log drop in HBV DNA.

 

(cc) "Regulated
Substances" means pollutants, contaminants, hazardous or toxic substances, compounds or related materials or chemicals, hazardous
materials, hazardous waste, flammable explosives, radon, radioactive materials, asbestos, urea formaldehyde foam insulation, polychlorinated
biphenyls, petroleum and petroleum products (including, but not limited to, waste petroleum and petroleum products) as regulated
under applicable Environmental Laws.

 

(dd) "Stockholder"
means a holder of Company Common Stock.

 

(ee) "Subsidiary"
means any corporation, partnership, limited liability company, joint venture, trust, association or other entity of which Buyer
or Company, as the case may be (either alone or through or together with any other Subsidiary), owns, directly or indirectly, (i) 50%
or more of the stock or other equity interests the holders of which are generally entitled to elect at least a majority of the
board of directors or other governing body of such corporation, partnership, limited liability company, joint venture, trust, association
or other entity or (ii) if there are no such voting interests, 50% or more of the equity interests in such corporation, partnership,
limited liability company, joint venture, trust, association or other entity.

 

(ff) "Tax"
or "Taxes" means any federal, state, local or foreign income, gross receipts, property, sales, use, license, excise,
franchise, employment, payroll, withholding, alternative or added minimum, ad valorem, value-added, transfer or excise, tax, or
other tax, custom, duty, governmental fee or other like assessment or charge of any kind whatsoever, together with any additions
to tax, interest or penalty imposed by any Governmental Entity.

 

(gg) "Tax Return"
means any return, report or similar statement (including the attached schedules) required to be filed with respect to any Tax,
including any information return, claim for refund, amended return or declaration of estimated Tax.

 

    36

     

    

 

(hh) "Transaction
Expenses" means, as set forth in Section 8.14(hh) of the Company Disclosure Schedule, all fees and expenses
incurred by the Company and any Affiliate at or prior to the Closing in connection with the preparation, negotiation and execution
of this Agreement and any related documents, and the performance and consummation of the Merger and the other transactions contemplated
hereby and thereby in an amount not to exceed $300,000.

 

(ii) "Treasury
Regulations" means the temporary and final regulations promulgated by the United States Department of the Treasury pursuant
to and in respect of provisions of the Code, as such regulations may be amended from time to time (including corresponding provisions
of succeeding regulations).

 

[Remainder of Page Intentionally
Left Blank.]

 

    37

     

    

 

IN WITNESS WHEREOF, Buyer, Merger Sub and
Company have caused this Agreement to be signed by their respective officers thereunto duly authorized all as of the date first
written above.

 

	 	CONTRAVIR PHARMACEUTICALS, INC.
	 	 	 
	 	By:	/s/ James Sapirstein
	 	Name:	James Sapirstein
	 	Title:	Chief Executive Officer
	 	 	 
	 	CICLOFILIN ACQUISITION CORP.
	 	 	 
	 	By:	/s/ James Sapirstein
	 	Name:	James Sapirstein
	 	Title:	Chief Executive Officer
	 	 	 
	 	CICLOFILIN PHARMACEUTICALS, INC.
	 	 	 
	 	By:	/s/ Robert Foster
	 	Name:	Robert Foster, Pharm.D., Ph.D.
	 	Title:	Chief Executive Officer
	 	 	 
	 	ROBERT FOSTER, PHARM.D., PH.D., AS 

STOCKHOLDER REPRESENTATIVE
	 	 	 
	 	By:	/s/ Robert Foster
	 	Name:	Robert Foster, Pharm.D., Ph.D.

 

[Signature
Page to Agreement and Plan of Merger]

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