Document:

Warrant to Purchase

 Exhibit 4.10 
  
 Execution Copy 
  
 THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR EXEMPTION FROM REGISTRATION UNDER THE FOREGOING LAWS. 
  
 SUBJECT TO THE PROVISIONS OF SECTION 10 HEREOF, THIS WARRANT SHALL BE VOID AFTER 5:00 P.M. EASTERN TIME ON APRIL 19, 2009 (THE “EXPIRATION DATE”).

  
 No. CO-60 
  
 INCARA PHARMACEUTICALS CORPORATION 
  
 WARRANT TO PURCHASE 4,104,000 SHARES OF 
 COMMON STOCK, PAR VALUE $0.001 PER SHARE 
  
 FOR VALUE RECEIVED, SCO Financial Group LLC (“Warrantholder”), is entitled to purchase, subject to the provisions of this Warrant, from Incara Pharmaceuticals Corporation, a Delaware
corporation (“Company”), at any time not later than 5:00 P.M., Eastern time, on the Expiration Date (as defined above), at an exercise price per share equal to $0.25 (the exercise price in effect being herein called the
“Warrant Price”), 4,104,000 shares (“Warrant Shares”) of the Company’s Common Stock, par value $0.001 per share (“Common Stock”). The number of Warrant Shares purchasable
upon exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time as described herein. 
  
 Section 1. Registration. The Company shall maintain books for the transfer and registration of the Warrant. Upon the initial issuance of this
Warrant, the Company shall issue and register the Warrant in the name of the Warrantholder. 
  
 Section 2. Transfers. As provided herein, this Warrant may be transferred only pursuant to a registration statement filed under the Securities Act of 1933, as amended (“Securities Act”),
or an exemption from such registration. Subject to such restrictions, the Company shall transfer this Warrant from time to time upon the books to be maintained by the Company for that purpose, upon surrender thereof for transfer properly endorsed or
accompanied by appropriate instructions for transfer and such other documents as may be reasonably required by the Company, including, if required by the Company, an opinion of its counsel to the effect that such transfer is exempt from the
registration requirements of the Securities Act, to establish that such transfer is being made in accordance with the terms hereof, and a new Warrant shall be issued to the transferee and the surrendered Warrant shall be canceled by the Company.

 Section 3. Exercise of Warrant. 
  
 (a) Subject to the provisions hereof, the Warrantholder may exercise this Warrant in whole or in part at any time prior to
its expiration upon surrender of the Warrant, together with delivery of the duly executed Warrant exercise form attached hereto as Appendix A (the “Exercise Agreement”) and payment by cash, certified check or wire
transfer of funds for the aggregate Warrant Price for that number of Warrant Shares then being purchased, to the Company during normal business hours on any business day at the Company’s principal executive offices (or such other office or
agency of the Company as it may designate by notice to the holder hereof). The Warrant Shares so purchased shall be deemed to be issued to the holder hereof or such holder’s designee, as the record owner of such shares, as of the close of
business on the date on which this Warrant shall have been surrendered (or evidence of loss, theft or destruction thereof and security or indemnity satisfactory to the Company), the Warrant Price shall have been paid and the completed Exercise
Agreement shall have been delivered. Certificates for the Warrant Shares so purchased, representing the aggregate number of shares specified in the Exercise Agreement, shall be delivered to the holder hereof within a reasonable time, not exceeding
three (3) business days, after the Company’s receipt of the applicable Exercise Agreement. The certificates so delivered shall be in such denominations as may be requested by the holder hereof and shall be registered in the name of such holder
or such other name as shall be designated by such holder. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at the time of delivery of such certificates, deliver to the
holder a new Warrant representing the number of shares with respect to which this Warrant shall not then have been exercised. As used in this Agreement, “business day” means a day, other than a Saturday or Sunday, on which banks in New
York City are open for the general transaction of business. 
  
 (b) Notwithstanding anything herein to the contrary, in no event shall the Warrantholder be entitled to exercise any portion of this Warrant in excess of that portion of this Warrant upon exercise of which the sum of (1) the number of
shares of Common Stock beneficially owned by the Warrantholder and its Affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unexercised portion of the Warrant or the unexercised or
unconverted portion of any other security of the Warrantholder subject to a limitation on conversion analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the exercise of the portion of this
Warrant with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Warrantholder and its Affiliates of more than 4.99% of the then outstanding shares of Common Stock. As used herein, the term
“Affiliate” means any person or entity that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a person or entity, as such terms are used in and construed
under Rule 144 under the Securities Act. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulations
13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The Warrantholder may waive the limitations set forth herein by sixty-one (61) days written notice to the Company. 
  

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 Section 4. Compliance with the Securities Act of 1933. The Company may cause the legend set forth
on the first page of this Warrant to be set forth on each Warrant or similar legend on any security issued or issuable upon exercise of this Warrant, unless counsel for the Company is of the opinion as to any such security that such legend is
unnecessary. 
  
 Section 5. Payment of Taxes. The Company
will pay any documentary stamp taxes attributable to the initial issuance of Warrant Shares issuable upon the exercise of the Warrant; provided, however, that the Company shall not be required to pay any tax or taxes which may be payable in respect
of any transfer involved in the issuance or delivery of any certificates for Warrant Shares in a name other than that of the registered holder of this Warrant in respect of which such shares are issued, and in such case, the Company shall not be
required to issue or deliver any certificate for Warrant Shares or any Warrant until the person requesting the same has paid to the Company the amount of such tax or has established to the Company’s reasonable satisfaction that such tax has
been paid. The holder shall be responsible for income taxes due under federal, state or other law, if any such tax is due. 
  
 Section 6. Mutilated or Missing Warrants. In case this Warrant shall be mutilated, lost, stolen, or destroyed, the Company shall issue in exchange
and substitution of and upon cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant lost, stolen or destroyed, a new Warrant of like tenor and for the purchase of a like number of Warrant Shares, but only upon receipt
of evidence reasonably satisfactory to the Company of such loss, theft or destruction of the Warrant, and with respect to a lost, stolen or destroyed Warrant, reasonable indemnity or bond with respect thereto, if requested by the Company.

  
 Section 7. Reservation of Common Stock. The Company
hereby represents and warrants that there have been reserved, and the Company shall at all applicable times keep reserved until issued (if necessary) as contemplated by this Section 7, out of the authorized and unissued shares of Common
Stock, sufficient shares to provide for the exercise of the rights of purchase represented by this Warrant. The Company agrees that all Warrant Shares issued upon due exercise of the Warrant shall be, at the time of delivery of the certificates for
such Warrant Shares, duly authorized, validly issued, fully paid and non-assessable shares of Common Stock of the Company. 
  
 Section 8. Adjustments. Subject and pursuant to the provisions of this Section 8, the Warrant Price and number of Warrant Shares subject to
this Warrant shall be subject to adjustment from time to time as set forth hereinafter. 
  
 (a) If the Company shall, at any time or from time to time while this Warrant is outstanding, pay a dividend or make a distribution on its Common Stock in shares of Common Stock, subdivide its outstanding shares of
Common Stock into a greater number of shares or combine its outstanding shares of Common Stock into a smaller number of shares or issue by reclassification of its outstanding shares of Common Stock any shares of its capital stock (including any such
reclassification in connection with a consolidation or merger in which the Company is the continuing corporation), then the number of Warrant Shares purchasable upon exercise of the Warrant and the Warrant Price in effect immediately prior to the
date upon which such change shall become effective, shall be adjusted by the Company so that the Warrantholder 
  

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 thereafter exercising the Warrant shall be entitled to receive the number of shares of Common Stock or other capital
stock which the Warrantholder would have received if the Warrant had been fully exercised immediately prior to such event upon payment of a Warrant Price that has been adjusted to reflect a fair allocation of the economics of such event to the
Warrantholder. Such adjustments shall be made successively whenever any event listed above shall occur. 
  
 (b) If any capital reorganization, reclassification of the capital stock of the Company, consolidation or merger of the Company with another corporation
in which the Company is not the survivor, or sale, transfer or other disposition of all or substantially all of the Company’s assets to another corporation shall be effected, then, the Company shall use its best efforts to ensure that lawful
and adequate provision shall be made whereby each Warrantholder shall thereafter have the right to purchase and receive upon the basis and upon the terms and conditions herein specified and in lieu of the Warrant Shares immediately theretofore
issuable upon exercise of the Warrant, such shares of stock, securities or assets as would have been issuable or payable with respect to or in exchange for a number of Warrant Shares equal to the number of Warrant Shares immediately theretofore
issuable upon exercise of the Warrant, had such reorganization, reclassification, consolidation, merger, sale, transfer or other disposition not taken place, and in any such case appropriate provision shall be made with respect to the rights and
interests of each Warrantholder to the end that the provisions hereof (including, without limitation, provision for adjustment of the Warrant Price) shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any shares
of stock, securities or assets thereafter deliverable upon the exercise thereof. The Company shall not effect any such consolidation, merger, sale, transfer or other disposition unless prior to or simultaneously with the consummation thereof the
successor corporation (if other than the Company) resulting from such consolidation or merger, or the corporation purchasing or otherwise acquiring such assets or other appropriate corporation or entity shall assume the obligation to deliver to the
holder of the Warrant, at the last address of such holder appearing on the books of the Company, such shares of stock, securities or assets as, in accordance with the foregoing provisions, such holder may be entitled to purchase, and the other
obligations under this Warrant. The provisions of this paragraph (b) shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales, transfers or other dispositions. 
  
 (c) In case the Company shall fix a payment date for the making of a
distribution to all holders of Common Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing corporation) of evidences of indebtedness or assets (other than cash dividends or
cash distributions payable out of consolidated earnings or earned surplus or dividends or distributions referred to in Section 8(a)), or subscription rights or warrants, the Warrant Price to be in effect after such payment date shall be
determined by multiplying the Warrant Price in effect immediately prior to such payment date by a fraction, the numerator of which shall be the total number of shares of Common Stock outstanding multiplied by the Market Price (as defined below) per
share of Common Stock immediately prior to such payment date, less the fair market value (as determined by the Company’s Board of Directors in good faith) of said assets or evidences of indebtedness so distributed, or of such subscription
rights or warrants, and the denominator of which shall be the total number of shares of Common Stock outstanding multiplied by such Market Price per share of Common Stock immediately prior to such payment date. “Market Price”
as of a particular 
  

 -4- 

 date (the “Valuation Date”) shall mean the following: (p) if the Common Stock is then listed on a
national stock exchange, the Market Price shall be the closing sale price of one share of Common Stock on such exchange on the last trading day prior to the Valuation Date, provided that if such stock has not traded in the prior ten (10) trading
sessions, the Market Price shall be the average closing price of one share of Common Stock in the most recent ten (10) trading sessions during which the Common Stock has traded; (q) if the Common Stock is then included in The Nasdaq Stock Market,
Inc. (“Nasdaq”), the Market Price shall be the closing sale price of one share of Common Stock on Nasdaq on the last trading day prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid
and the low ask price quoted on Nasdaq as of the end of the last trading day prior to the Valuation Date, provided that if such stock has not traded in the prior ten (10) trading sessions, the Market Price shall be the average closing price of one
share of Common Stock in the most recent ten (10) trading sessions during which the Common Stock has traded; (r) if the Common Stock is then included in the Over-the-Counter Bulletin Board, the Market Price shall be the closing sale price of one
share of Common Stock on the Over-the-Counter Bulletin Board on the last trading day prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid and the low ask price quoted on the Over-the-Counter
Bulletin Board as of the end of the last trading day prior to the Valuation Date, provided that if such stock has not traded in the prior ten (10) trading sessions, the Market Price shall be the average closing price of one share of Common Stock in
the most recent ten (10) trading sessions during which the Common Stock has traded, (s) if the Common Stock is then included in the “pink sheets,” the Market Price shall be the closing sale price of one share of Common Stock on the
“pink sheets” on the last trading day prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid and the low ask price quoted on the “pink sheets” as of the end of the last trading day
prior to the Valuation Date, provided that if such stock has not traded in the prior ten (10) trading sessions, the Market Price shall be the average closing price of one share of Common Stock in the most recent ten (10) trading sessions during
which the Common Stock has traded. The Board of Directors of the Company shall respond promptly, in writing, to an inquiry by the Warrantholder prior to the exercise hereunder as to the Market Price of a share of Common Stock as determined by the
Board of Directors of the Company. 
  
 (d) For the term of this
Warrant, in addition to the provisions contained above, the Warrant Price shall be subject to adjustment as provided below. An adjustment to the Warrant Price shall become effective immediately after the payment date in the case of each dividend or
distribution and immediately after the effective date of each other event which requires an adjustment. 
  
 (e) In the event that, as a result of an adjustment made pursuant to this Section 8, the holder of this Warrant shall become entitled to receive
any shares of capital stock of the Company other than shares of Common Stock, the number of such other shares so receivable upon exercise of this Warrant shall be subject thereafter to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the Warrant Shares contained in this Warrant. 
  
 Section 9. Fractional Interest. The Company shall not be required to issue fractions of Warrant Shares upon the exercise of this Warrant or pay
cash in lieu of delivering such fractional share. 
  

 -5- 

 Section 10. Extension of Expiration Date. If the Company fails to cause any Registration Statement
covering Registrable Securities (unless otherwise defined herein, capitalized terms are as defined in the Registration Rights Agreement relating to the Warrant Shares (the “Registration Rights Agreement”)) to be declared
effective prior to the applicable dates set forth therein, or if any of the events specified in Section 2(c)(ii) of the Registration Rights Agreement occurs, and the Blackout Period or Allowed Delay (whether alone, or in combination with any other
Blackout Period or Allowed Delay) continues for more than 30 days in any 24 month period, or for more than a total of 90 days, then the Expiration Date of this Warrant shall be extended one day for each day beyond the 30-day or 90-day limits, as the
case may be, that the Blackout Period or Allowed Delay continues. 
  
 Section 11. Benefits. Nothing in this Warrant shall be construed to give any person, firm or corporation (other than the Company and the Warrantholder) any legal or equitable right, remedy or claim, it being agreed that this Warrant
shall be for the sole and exclusive benefit of the Company and the Warrantholder. 
  
 Section 12. Notices to Warrantholder. Upon the happening of any event requiring an adjustment of the Warrant Price, the Company shall promptly give written notice thereof to the Warrantholder at the address
appearing in the records of the Company, stating the adjusted Warrant Price and the adjusted number of Warrant Shares resulting from such event and setting forth in reasonable detail the method of calculation and the facts upon which such
calculation is based. Failure to give such notice to the Warrantholder or any defect therein shall not affect the legality or validity of the subject adjustment. 
  
 Section 13. Identity of Transfer Agent. The Transfer Agent for the Common Stock is the American Stock Transfer and
Trust Company. Upon the appointment of any subsequent transfer agent for the Common Stock or other shares of the Company’s capital stock issuable upon the exercise of the rights of purchase represented by the Warrant, the Company will mail to
the Warrantholder a statement setting forth the name and address of such transfer agent. 
  
 Section 14. Notices. Unless otherwise specifically provided herein, all communications under this Warrant shall be in writing and shall be deemed to have been duly given (a) on the date personally delivered to
the party to whom notice is to be given, (b) on the day of transmission if sent by facsimile (to the number below or such other number specified by the receiving party for the giving of notices) or electronic mail transmission and the sending party
receives confirmation of the completion of such transmission, (c) on the business day after delivery to Federal Express or similar overnight courier which utilizes a written form of receipt, or (d) on the fifth day after mailing, if mailed to the
party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, and properly addressed, return receipt requested. All notices shall be addressed as follows: if to the Warrantholder, at its address as set forth in
the Company’s books and records and, if to the Company, at the address as follows, or at such other address as the Warrantholder or the Company may designate by ten days’ advance written notice to the other: 
  

	
	 If to the Company:

	
	 Incara Pharmaceuticals Corporation

	 P.O. Box 14287

	 79 T.W. Alexander Drive

	 4401 Research Commons, Suite 200

	 Research Triangle Park, North Carolina 27709

	 Attention: Clayton I. Duncan

	 Fax: 919-544-1245

  

 -6- 

	
	
	 With a copy to:

	
	 Wyrick Robbins Yates & Ponton LLP

	 4101 Lake Boone Trail, Suite 300

	 Raleigh, NC 27607

	 Attention: Larry E. Robbins, Esq.

	 Fax: 919-781-4865

  
 Section 15.
Registration Rights. The initial holder of this Warrant is entitled to the benefit of certain registration rights with respect to the shares of Common Stock issuable upon the exercise of this Warrant as provided in the Registration Rights
Agreement, and any subsequent holder hereof shall be entitled to such rights to the extent provided in the Registration Rights Agreement. 
  
 Section 16. Successors. All the covenants and provisions hereof by or for the benefit of the Warrantholder shall bind and inure to the benefit of
its respective successors and permitted assigns hereunder. 
  
 Section 17. Governing Law. This Warrant shall be governed by, and construed in accordance with, the internal laws of the State of New York, without reference to the choice of law provisions thereof. The Company and, by accepting this
Warrant, the Warrantholder, each irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United States District Court for the Southern District of New York for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this Warrant and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the
world by the same methods as are specified for the giving of notices under this Warrant. The Company and, by accepting this Warrant, the Warrantholder, each irrevocably consents to the jurisdiction of any such court in any such suit, action or
proceeding and to the laying of venue in such court. The Company and, by accepting this Warrant, the Warrantholder, each irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and
irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. 
  

 -7- 

 Section 18. No Rights as Shareholder. Prior to the exercise of this Warrant, the Warrantholder
shall not have or exercise any rights as a shareholder of the Company by virtue of its ownership of this Warrant. 
  
 Section 19. Cashless Exercise. Notwithstanding anything to the contrary contained herein, the Warrantholder may elect to receive, without the
payment by the Warrantholder of the aggregate Warrant Price in respect of the shares of Common Stock to be acquired upon exercise hereof, shares of Common Stock equal to the value of this Warrant or any portion hereof being exercised pursuant to
this Section 19 by the surrender of this Warrant (or such portion of this Warrant being so exercised) together with the Net Issue Election Notice annexed hereto as Appendix B duly executed, at the office of the Company. Thereupon, and
in no event later than three business days after the Company’s receipt of the Net Issue Election Notice, the Company shall issue to the Warrantholder certificate(s) for such number of fully paid, validly issued and nonassessable shares of
Common Stock as is computed using the formula immediately below. The certificates so delivered shall be in such denominations as may be requested by the holder hereof and shall be registered in the name of such holder or such other name as shall be
designated by such holder. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at the time of delivery of such certificates, deliver to the holder a new Warrant
representing the number of shares with respect to which this Warrant shall not then have been exercised. 
  

			
	 X =
	 	 Y (A -B)

	 	 	A

  
 where 
  
 X = the number of shares of Common Stock to be issued to the Warrantholder
upon exercise of this Warrant pursuant to this Section 19; 
  
 Y = the total number of shares of Common Stock covered by this Warrant which the Warrantholder has surrendered at such time for cashless exercise (including both shares to be issued to the Warrantholder and shares to be canceled as payment
therefor); 
  
 A = the Market Price of one share of Common Stock
as of the day the net issue election is sent for delivery to the Company in accordance with the notice provisions of Section 14; and 
  
 B = the Warrant Price in effect under this Warrant at the time the net issue election is made. 
  
 The Warrant Shares issued pursuant to this Section 19 shall be deemed
to be issued to the exercising holder or such holder’s designee, as the record owner of such shares, as of the close of business on the date on which the Net Issue Election Notice shall have been surrendered (or evidence of loss, theft or
destruction thereof and security or indemnity satisfactory to the Company) to the Company. 
  

 -8- 

 Section 20. Amendments. This Warrant shall not be amended without the prior written consent of the
Company and the then current Warrantholder. 
  
 Section 21.
Section Headings. The section headings in this Warrant are for the convenience of the Company and the Warrantholder and in no way alter, modify, amend, limit or restrict the provisions hereof. 
  
 [Signature Page Follows] 
  

 -9- 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, as of the 19th day of April, 2004. 
  

			
	INCARA PHARMACEUTICALS CORPORATION
		
	 By:
	 	 /s/ Clayton I. Duncan

	 Name:
	 	 Clayton I. Duncan

	 Title:
	 	 President and Chief Executive Officer

  

 -10- 

 APPENDIX A 
 INCARA PHARMACEUTICALS CORPORATION. 
 WARRANT EXERCISE FORM 
  
 To: Incara Pharmaceuticals Corporation 
  
 The undersigned hereby irrevocably elects to exercise the right of purchase
represented by the within Warrant (“Warrant”) for, and to purchase thereunder by the payment of the Warrant Price and surrender of the Warrant,              shares of
Common Stock (“Warrant Shares”) provided for therein, and requests that certificates for the Warrant Shares be issued as follows: 
  

	
	  

 Name

	  
  

 Address

	  
  

  

 Federal Tax ID
or Social Security No.

  
 and delivered by

  

					
	 q
	  	 certified mail to the above address, or
	  	 
			
	 q
	  	 electronically (provide DWAC Instructions:                             
                       ),
	  	 
			
	 or
	  	 	  	 
			
	 q
	  	 other (specify:                                   
                                        
                         ).
	  	 

  
 and, if the number of Warrant Shares
shall not be all the Warrant Shares purchasable upon exercise of the Warrant, that a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant be registered in the name of the undersigned Warrantholder or the
undersigned’s Assignee as below indicated and delivered to the address stated below. 
  
 The undersigned represents that (i) the aforesaid Warrant Shares are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof
and that the undersigned has no present intention of distributing or reselling such Warrant Shares except in accordance with applicable laws; (ii) the undersigned is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is experienced in making investments of this type and has such knowledge and background
in financial and business matters that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned’s own interests; (iv) the undersigned understands that the Warrant Shares issuable upon
exercise of this Warrant have not, as of the date of issuance of the Warrant, been registered under the Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific 
  

 A-1 

 exemption from the registration provisions of the Securities Act, which exemption depends upon, among other things, the
bona fide nature of the investment intent as expressed herein, and, because such securities have not been registered under the Securities Act, they must be held indefinitely unless subsequently registered under the Securities Act or an exemption
from such registration is available; (v) the undersigned is aware that the Warrant Shares may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the Warrant Shares
for the number of years prescribed by Rule 144; and (vi) the undersigned agrees not to make any disposition of all or any part of the Warrant Shares unless and until there is then in effect a registration statement under the Securities Act governing
such proposed disposition and such disposition is made in accordance with said registration statement, or the undersigned has provided the Company with an opinion of counsel satisfactory to the Company, stating that such registration is not
required. 
  

			
	 Dated:
                                ,
        
	 	 
	 	 	 
	 Note: The signature must correspond with
 the name of the registered holder as written
 on the first page of the Warrant in every
 particular, without alteration or enlargement
 or any change whatever, unless the Warrant
 has been assigned.
	 	 
	 	 Signature:

	 	  

	 	 Name (please print)

	 	  
  

	 	  

	 	 	 Address

	 	 	  
  

 Federal Identification or

	 	 	 Social Security No.

		
	 	 	 Assignee:

	 	 	  

	 	 	  

	 	 	  

  

 A-2 

 APPENDIX B 
 INCARA PHARMACEUTICALS CORPORATION 
 NET ISSUE ELECTION NOTICE 
  
 To: Incara Pharmaceuticals Corporation. 
  
 Date:                                     
                
  
 The undersigned hereby elects under Section 19 of this Warrant to surrender the right to purchase              shares of Common Stock pursuant to this
Warrant and hereby requests the net issuance of the number of shares of Common Stock calculated in accordance with Section 19 of this Warrant. The certificate(s) for the shares issuable upon such net issue election shall be issued in the name of the
undersigned or as otherwise indicated below. 
  

			
	 	 	  

 Signature

	 	 	  
  

 Name for Registration

	 	 	  
  

 Mailing Address

  

 B-1Purchase Agreement

 Exhibit 10.102 
  
 Execution Copy 
  
 PURCHASE AGREEMENT 
  
 THIS PURCHASE AGREEMENT (“Agreement”) is made as of this 19th day of April, 2004 by and among INCARA PHARMACEUTICALS
CORPORATION, a Delaware corporation (the “Company”), and the Investors set forth on Schedule I affixed hereto, as such Schedule may be amended from time to time in accordance with the terms of this Agreement
(each an “Investor” and collectively the “Investors”).  
  
 Recitals: 
  
 A. The Company desires to raise up to $10,260,000 through the issuance and sale of up to 41,040,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), to the
Investors at a per share purchase price of $0.25, together with warrants to acquire up to 16,416,000 shares of Common Stock, at an exercise price of $0.40 per share, in the form of Exhibit A annexed hereto and made a part hereof
(the “Investor Warrants”), for each share of Common Stock purchased by the Investors pursuant to this Agreement (the “Private Placement”); and 
  
 B. The Investors wish to purchase from the Company, and the Company wishes to
sell and issue to the Investors, upon the terms and conditions stated in this Agreement, such number of shares of the Company’s Common Stock as is set forth next to each such Investor’s name on Schedule I affixed hereto; and

  
 C. The Company has agreed that, upon consummation of the
purchase of the Common Stock, the Company will issue to each Investor, or its designee, Investor Warrants to purchase such number of shares of the Company’s Common Stock as is set forth next to each such Investor’s name on Schedule
I affixed hereto; and 
  
 D. The Company also has agreed,
subject to the terms and conditions therein, to draw down the balance of that certain Secured Convertible Debenture, dated as of January 9, 2004, made by the Company payable to the order of Goodnow Capital, LLC, in the original principal amount of
$5,000,000 (the “Goodnow Debenture”), and the conversion of the Goodnow Debenture is a condition to the closing of the Private Placement; and 
  
 E. The Company has engaged SCO Securities LLC as its placement agent (the “Placement Agent”) for the
Private Placement on a “best efforts” basis; and 
  
 F.
Contemporaneous with the sale of the Common Stock, the parties hereto will enter into a Registration Rights Agreement, in the form attached hereto as Exhibit B (the “Registration Rights Agreement”), pursuant to
which, among other things, the Company will agree to provide certain registration rights under the Securities Act of 1933, as amended and the rules and regulations promulgated thereunder, and applicable state securities laws (the “1933
Act”); and 
  
 G. The Company and the Investors are
executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the provisions of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange Commission
(the “SEC”) under the 1933 Act, as amended. 

 NOW, THEREFORE, in consideration of the mutual promises made herein and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
  
 1. Definitions. In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms
shall have the meanings set forth in this Section 1: 
  
 “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. 
  
 “Business Day” means a day, other than a Saturday or
Sunday, on which banks in New York City are open for the general transaction of business. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Common Stock” has the meaning set forth in the Recitals, and also includes any securities into which the Common Stock may be
reclassified. 
  
 “Company’s
Knowledge” means the actual knowledge of the officers of the Company, after due inquiry and investigation. 
  
 “Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies
of a Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Goodnow Debenture” has the meaning set forth in the Recitals. 
  
 “Intellectual
Property” means all of the following: (i) patents, patent applications, patent disclosures and inventions (whether or not patentable and whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names,
corporate names, logos, slogans and Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights and copyrightable works; (iv) registrations, applications and renewals for any of the foregoing; (v) trade
secrets, confidential information and know-how (including but not limited to ideas, formulae, compositions, manufacturing and production processes and techniques, research and development information, drawings, specifications, designs, business and
marketing plans, and customer and supplier lists and related information); and (vi) computer software (including but not limited to data, data bases and documentation). 
  
 “Material Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of
operations, condition (financial or otherwise), business, or prospects of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company to issue and sell the securities contemplated hereby and to perform its obligations under
the Transaction Documents. 
  

 -2- 

 “Material Contract” means any contract of the Company or any Subsidiary that was
filed as an exhibit to the SEC Filings pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K. 
  
 “Net Escrow Amount” means the Escrow Amount (as defined in Section 3.1) less the Cash Placement Agent Fee (as defined in
Section 5.20) and the Placement Agent Fees (as defined in Section 10.5). 
  
 “Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated
organization, governmental authority or any other form of entity not specifically listed herein. 
  
 “Placement Agent Agreement” means that certain letter agreement, dated as of October 1, 2003, by and between the Company and SCO
Financial Group LLC, an Affiliate of the Placement Agent. 
  
 “SEC Filings” has the meaning set forth in Section 5.7. 
  
 “Securities” means the Shares, the Warrants and the Warrant Shares. 
  
 “Shares” means the shares of Common Stock being purchased by the Investors hereunder. 
  
 “Subsidiary” has the meaning set forth in Section
5.1. 
  
 “Transaction Documents” means
this Agreement, the Warrants, and the Registration Rights Agreement. 
  
 “Warrants” means the Investor Warrants and the Placement Agent Warrants (as defined in Section 5.20). 
  
 “Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants. 
  
 “1934 Act” means the Securities Exchange Act of 1934,
as amended, and the rules and regulations promulgated thereunder. 
  
 2. Purchase and Sale of the Shares. Subject to the terms and conditions of this Agreement, at the Closing (as defined in Section 4), the Investors listed on Schedule I attached hereto, which Schedule
I may be amended from time to time to add additional Investors who agree to purchase Common Stock in the Private Placement by executing a counterpart to this Agreement following the date hereof (collectively, the
“Investors”), shall severally, and not jointly, purchase, and the Company shall sell and issue to the Investors, the Shares in the respective amounts set forth opposite their names on Schedule I affixed hereto,
in exchange for 
  

 -3- 

 the cash consideration set forth opposite their respective names on Schedule I affixed hereto. Also at the
Closing, the Company shall issue the Investor Warrants to the Investors, or their respective designees, in such amounts as set forth opposite their respective names on Schedule I affixed hereto. 
  
 3. Escrow of Purchase Price. 
  
 3.1. Simultaneously with the execution and delivery of this Agreement by an
Investor, such Investor shall (i) promptly cause a wire transfer of immediately available funds (U.S. dollars) in an amount representing such Investor’s “Aggregate Purchase Price”, as set forth on such Investor’s
signature page and opposite such Investor’s name on Schedule I affixed hereto, to be paid to the non-interest bearing escrow account of Lowenstein Sandler PC, the Placement Agent’s counsel (“Placement Agent
Counsel”), set forth on Schedule II affixed hereto (the aggregate amounts being held in escrow are referred to herein as the “Escrow Amount”) and (ii) deliver to the Placement Agent a duly executed
counterpart to the Registration Rights Agreement. Placement Agent Counsel shall hold the Escrow Amount in escrow until Placement Agent Counsel receives written instructions from the Company and the Placement Agent authorizing the release of the
Escrow Amount in accordance with Section 4. If Placement Agent Counsel has not released the Escrow Amount pursuant to this Section 3.1, then, on the sooner of (x) June 30, 2004, or (y) receipt of written instructions from the Company
or the Placement Agent to terminate the escrow and return the Escrow Amount to the Investors, Placement Agent Counsel shall return to each Investor the portion of the Escrow Amount such Investor delivered to the Placement Agent Counsel, but only to
the extent of the funds actually received by the Placement Agent Counsel pursuant to this Agreement. 
  
 3.2. The Company and the Investors acknowledge and agree for the benefit of Placement Agent Counsel (which shall be deemed to be a third party beneficiary
of this Section 3) as follows:  
  
 (a) Placement
Agent Counsel (i) is not responsible for the performance by the Company, the Investors or Placement Agent of this Agreement or any of the other Transaction Documents or for determining or compelling compliance therewith, (ii) is only responsible for
(A) holding the Escrow Amount in escrow pending receipt of written instructions from Placement Agent and/or the Company (as provided herein) directing the release of the Escrow Amount and (B) disbursing the Escrow Amount in accordance with the
written instructions from the Company and/or the Placement Agent (as provided herein) (each of the responsibilities of Placement Agent Counsel in clauses (A) and (B) being ministerial in nature, and no implied duties or obligations of any kind shall
be read into this Agreement against or on the part of Placement Agent Counsel) (collectively, the “Placement Agent Counsel Duties”), (iii) shall not be obligated to take any legal or other action hereunder which might in its
judgment involve or cause it to incur any expense or liability unless it shall have been furnished with indemnification acceptable to it, in its sole discretion, (iv) may rely on and shall be protected in acting or refraining from acting upon any
written notice, instruction (including, without limitation, wire transfer instructions, whether incorporated herein or provided in a separate written instruction), instrument, statement, certificate, request or other document furnished to it
hereunder and believed by it to be genuine and to have been signed or presented by the proper Person, and shall have no responsibility for making inquiry as to, or for determining, the genuineness, accuracy or 
  

 -4- 

 validity thereof, or of the authority of the Person signing or presenting the same, (v) may consult counsel satisfactory
to it, and the written opinion or advice of such counsel in any instance shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the opinion or
advice of such counsel, and (vi) shall be authorized to distribute, at the Closing, to Placement Agent Counsel the Placement Agent Counsel Fees. Documents and written materials referred to in this Section 3.2(a) include, without limitation,
e-mail and other electronic transmissions capable of being printed, whether or not they are in fact printed; and any such e-mail or other electronic transmission may be deemed and treated by Placement Agent Counsel as having been signed or presented
by a Person if it bears, as sender, the Person’s e-mail address. 
  
 (b) Placement Agent Counsel shall not be liable to anyone for any action taken or omitted to be taken by it hereunder, except in the case of Placement Agent Counsel’s gross negligence or willful misconduct in breach of the Placement
Agent Counsel Duties. IN NO EVENT SHALL PLACEMENT AGENT BE LIABLE FOR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGE OR LOSS (INCLUDING BUT NOT LIMITED TO LOST PROFITS) WHATSOEVER, EVEN IF PLACEMENT AGENT COUNSEL HAS BEEN INFORMED OF THE
LIKELIHOOD OF SUCH LOSS OR DAMAGE AND REGARDLESS OF THE FORM OF ACTION.  
  
 (c) The Company and the Investors hereby indemnify and hold harmless Placement Agent Counsel from and against, any and all loss, liability, cost, damage and expense, including, without limitation, reasonable
counsel fees and expenses, which Placement Agent Counsel may suffer or incur by reason of any action, claim or proceeding brought against Placement Agent Counsel arising out of or relating to the performance of the Placement Agent Counsel Duties,
unless such action, claim or proceeding is the result of the willful misconduct or gross negligence of Placement Agent Counsel.  
  
 (d) Placement Agent Counsel has acted as legal counsel to the Placement Agent in connection with this Agreement and the other Transaction
Documents, is merely acting as a stakeholder under this Agreement and is, therefore, hereby authorized to continue acting as legal counsel to Placement Agent including, without limitation, with regard to any dispute arising out of this Agreement,
the other Transaction Documents, the Escrow Amount or any other matter. Each of the Company and the Investors hereby expressly consents to permit Placement Agent Counsel to represent the Placement Agent in connection with all matters relating to
this Agreement, including, without limitation, with regard to any dispute arising out of this Agreement, the other Transaction Documents, the Escrow Amount or any other matter, and hereby waives any conflict of interest or appearance of conflict or
impropriety with respect to such representation. Each of the Company and the Investors has consulted with its own counsel specifically about this Section 3 to the extent they deemed necessary, and has entered into this Agreement after being
satisfied with such advice. 
  
 4. Closing. Upon
satisfaction of the conditions to Closing set forth in Section 7 hereof, the Company and the Placement Agent shall jointly instruct Placement Agent Counsel to release (i) the Net Escrow Amount to the Company (the date of receipt of the Net
Escrow Amount by the Company is hereinafter referred to as the “Closing Date”), (ii) the Cash Placement Agent Fee to the Placement Agent and (iii) the Placement Agent Counsel Fees to 
  

 -5- 

 Placement Agent Counsel. Within three (3) Business Days after the Closing Date, the Company shall issue to each Investor
a certificate or certificates, registered in such name or names as each such Investor may designate, representing the number of shares of Common Stock as is set forth opposite such Investor’s name on Schedule I affixed hereto, and
Company shall also issue to each such Investor, or such Investor’s respective designees, the number of Investor Warrants as is set forth opposite such Investor’s name on Schedule I affixed hereto (the
“Closing”). On the Closing Date, the Company shall also issue to the Placement Agent the Placement Agent Warrants (as defined in Section 5.20). The purchase and sale of the Shares and the issuance of the Warrants in
the Closing shall take place at the offices of Placement Agent Counsel, 1330 Avenue of the Americas, 21st Floor, New
York, New York 10019, or at such other location and on such other date as the Company and the Placement Agent shall mutually agree. 
  
 5. Representations and Warranties of the Company. The Company hereby represents and warrants to the Investors and the Placement Agent on and as of
the Closing Date, that, except as set forth in the schedules delivered herewith (collectively, the “Disclosure Schedules”): 
  
 5.1. Organization, Good Standing and Qualification. Each of the Company and its subsidiaries is a corporation duly incorporated, validly existing
and in good standing under the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business as now conducted and own its properties. Each of the Company and its subsidiaries is duly
qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property makes such qualification or licensing necessary unless the failure to so
qualify would not have a Material Adverse Effect. The Company’s subsidiaries are reflected on Schedule 5.1 hereto (“Subsidiaries”). 
  
 5.2. Authorization. The Company has full power and authority and has taken all requisite action on the part of the
Company, its officers and directors necessary for the (i) authorization, execution and delivery of the Transaction Documents to which it is a party, (ii) authorization of the performance of all obligations of the Company hereunder or thereunder, and
(iii) authorization, issuance (or reservation for issuance) and delivery of the Securities. The Transaction Documents to which it is a party constitute the legal, valid and binding obligations of the Company, enforceable against the Company in
accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally. 
  
 5.3. Capitalization. Set forth on Schedule 5.3 hereto is (a)
the authorized capital stock of the Company on the date hereof; (b) the number of shares of capital stock issued and outstanding; (c) the number of shares of capital stock issuable pursuant to the Company’s stock plans; and (d) the number of
shares of capital stock issuable and reserved for issuance pursuant to securities (other than the Securities) exercisable for, or convertible into or exchangeable for, any shares of capital stock of the Company. All of the issued and outstanding
shares of the Company’s capital stock have been duly authorized and validly issued and are fully paid, nonassessable and were issued in full compliance with applicable law. Except as set forth on Schedule 5.3, no Person is entitled to
pre-emptive or similar statutory or contractual rights with respect to any securities of the Company. Except as set forth on Schedule 5.3, there are no 
  

 -6- 

 outstanding warrants, options, convertible securities or other rights, agreements or arrangements of any character under
which the Company or any of the Subsidiaries is or may be obligated to issue any equity securities of any kind and except as contemplated by this Agreement, neither the Company nor any of its Subsidiaries is currently in negotiations for the
issuance of any equity securities of any kind. Except as set forth on Schedule 5.3, there are no voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements of any kind among any of the
securityholders of the Company relating to the securities of the Company held by them. Except as set forth on Schedule 5.3, the Company has not granted any Person the right to require the Company to register any securities of the Company
under the 1933 Act, whether on a demand basis or in connection with the registration of securities of the Company for its own account or for the account of any other Person. 
  
 5.4. Valid Issuance. The Shares have been duly authorized and, when issued and paid for pursuant to this Agreement,
will be validly issued, fully paid and non-assessable, free and clear of all encumbrances and restrictions, except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities laws. The Warrants have been
duly authorized. Upon the due exercise of the Warrants, the Warrant Shares will be validly issued, fully paid and non-assessable, free and clear of all encumbrances and restrictions, except for restrictions on transfer set forth in the Transaction
Documents or imposed by applicable securities laws. The Company has reserved a sufficient number of shares of Common Stock for issuance upon exercise of the Warrants, free and clear of all encumbrances and restrictions, except for restrictions on
transfer set forth in the Transaction Documents or imposed by applicable securities laws. 
  
 5.5. Consents. The execution, delivery and performance by the Company of the Transaction Documents to which it is a party and the offer, issuance and sale of the Securities require no consent of, action by or
in respect of, or filing with, any Person, governmental body, agency, or official or securities association or exchange, other than those consents set forth on Schedule 5.5 and filings that have been made pursuant to applicable state
securities laws and post-sale filings pursuant to applicable state and federal securities laws which the Company undertakes to file within the applicable time periods. The Company has taken all action necessary to exempt (i) the issuance and sale of
the Securities, (ii) the issuance of the Warrant Shares upon due exercise of the Warrants, and (iii) the other transactions contemplated by the Transaction Documents from the provisions of any anti-takeover, business combination or control share law
or statute binding on the Company or to which the Company or any of its assets and properties may be subject or any provision of the Company’s Certificate of Incorporation, Bylaws or any shareholder rights agreement that is or could become
applicable to the Investors as a result of the transactions contemplated hereby, including without limitation, the issuance of the Securities and the ownership, disposition or voting of the Securities by the Investors or the exercise of any right
granted to the Investors pursuant to this Agreement or the other Transaction Documents. 
  
 5.6. No Conflict, Breach, Violation or Default. Except as set forth in the Disclosure Schedules, the execution, delivery and performance by the Company of the Transaction Documents to which it is a party and
the issuance and sale of the Securities will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute 
  

 -7- 

 a default under (i) the Company’s Certificate of Incorporation or Bylaws, both as in effect on the date hereof
(copies of which have been provided to the Investors before the date hereof), or (ii)(a) any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or any of its
properties, or (b) except as set forth on Schedule 5.6, any agreement or instrument to which the Company is a party or by which the Company is bound or to which any of the properties of the Company is subject. 
  
 5.7. Delivery of SEC Filings; Business. The Company has made available
to the Investors copies of the Company’s most recent Annual Report on Form 10-K for the fiscal year ended September 30, 2003 (the “2003 10-K”) and all other schedules and reports filed by the Company pursuant to the 1934
Act since the filing of the 2003 10-K and prior to the date hereof (collectively, the “SEC Filings”). The Company hereby represents and warrants that the SEC Filings are the only filings required of the Company pursuant to
the 1934 Act for such period. The Company is engaged only in the business described in the SEC Filings and the SEC Filings contain a complete and accurate description of the business of the Company. 
  
 5.8. No Material Adverse Change. Since September 30, 2003, except as
identified and described in the SEC Filings or as set forth on Schedule 5.8 hereto, there has not been: 
  
 (a) any change in the consolidated assets, liabilities, financial condition or operating results of the Company from that reflected in the financial
statements included in the Company’s most recent Quarterly Report on Form 10-Q, except changes in the ordinary course of business which have not had, in the aggregate, a Material Adverse Effect; 
  
 (b) any declaration or payment of any dividend, or any authorization or
payment of any distribution, on any of the capital stock of the Company, or any redemption or repurchase of any securities of the Company; 
  
 (c) any material damage, destruction or loss, whether or not covered by insurance to any assets or properties of the Company or its Subsidiaries;

  
 (d) any waiver by the Company or any Subsidiary of a valuable
right or of a material debt owed to it; 
  
 (e) any satisfaction
or discharge of any lien, claim or encumbrance or payment of any obligation by the Company or a Subsidiary, except in the ordinary course of business and which is not material to the assets, properties, financial condition, operating results or
business of the Company and its Subsidiaries taken as a whole; 
  
 (f) any change or amendment to the Company’s Certificate of Incorporation or Bylaws, or material change to any material contract or arrangement by which the Company or any Subsidiary is bound, or to which any of their respective assets
or properties is subject; 
  

 -8- 

 (g) any material labor difficulties or labor union organizing activities with respect to employees of
the Company or any Subsidiary; 
  
 (h) any transaction entered
into by the Company or a Subsidiary other than in the ordinary course of business; 
  
 (i) the loss of the services of any key employee, or material change in the composition or duties of the senior management of the Company or any Subsidiary; 
  
 (j) the loss or threatened loss of any customer which could be material to
the Company’s business; or 
  
 (k) any other event or
condition of any character that might have a Material Adverse Effect. 
  
 5.9. SEC Filings; Material Contracts. 
  
 (a) At
the time of filing thereof, the SEC Filings complied as to form in all material respects with the requirements of the 1934 Act and did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make
the statements made therein, in the light of the circumstances under which they were made, not misleading. The Company is not (with or without the lapse of time or the giving of notice, or both) in breach or default of any Material Contract and, to
the Company’s Knowledge, no other party to any Material Contract is (with or without the lapse of time or the giving of notice, or both) in breach or default of any Material Contract. Neither the Company nor any Subsidiary has received any
notice of the intention of any party to terminate any Material Contract. 
  
 (b) During the preceding two (2) years, except as set forth in Schedule 5.9, each registration statement and any amendment thereto filed by the Company pursuant to the 1933 Act, as of the date such statement or
amendment became effective, complied as to form in all material respects with the 1933 Act and did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not misleading; and each prospectus filed pursuant to Rule 424(b) under the 1933 Act, as of its issue date and as of the closing of any sale of securities pursuant
thereto did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made,
not misleading. 
  
 5.10. Tax Matters. Each of the Company
and each Subsidiary has timely prepared and filed all tax returns required to have been filed by the Company or such Subsidiary with all appropriate governmental agencies and timely paid all taxes owed by it. The charges, accruals and reserves on
the books of the Company in respect of taxes for all fiscal periods are adequate in all material respects, and there are no material unpaid assessments against the Company or any Subsidiary nor, to the Company’s Knowledge, any basis for the
assessment of any additional taxes, penalties or interest for any fiscal period or audits by any federal, state or 
  

 -9- 

 local taxing authority except for any assessment which is not material to the Company and its Subsidiaries, taken as a
whole. All taxes and other assessments and levies that the Company or any Subsidiary is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper governmental entity or third party when due. There
are no tax liens or claims pending or, to the Company’s Knowledge, threatened against the Company or any Subsidiary or any of their respective assets or property. There are no outstanding tax sharing agreements or other such arrangements
between the Company and any Subsidiary or any other corporation or entity. 
  
 5.11. Title to Properties. Except as disclosed in the SEC Filings or Schedule 5.11, the Company and each Subsidiary has good and marketable title to all real properties and all other properties and
assets owned by them, in each case free from liens, encumbrances and defects that would materially affect the value thereof or materially interfere with the use made or currently planned to be made thereof by them; and except as disclosed in the SEC
Filings, the Company and each Subsidiary holds any leased real or personal property under valid and enforceable leases with no exceptions that would materially interfere with the use made or currently planned to be made thereof by them. 

 
 5.12. Certificates, Authorities and Permits. The Company and each
Subsidiary possesses adequate certificates, authorities or permits issued by appropriate governmental agencies or bodies necessary to conduct the business now operated by them and has not received any notice of proceedings relating to the revocation
or modification of any such certificate, authority or permit that, if determined adversely to the Company or any Subsidiary, would individually or in the aggregate have a Material Adverse Effect. 
  
 5.13. No Labor Disputes. No material labor dispute with the employees
of the Company or any Subsidiary exists or, to the Company’s Knowledge, is imminent. 
  
 5.14. Benefit Plans. 
  
 (a) Schedule 5.14 contains a list and brief description of all “employee pension benefit plans” (as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)), maintained or contributed to by the Company for the benefit of any of the Company or the Subsidiaries’ officers or employees (“Pension Plans”) and all “employee welfare benefit
plans” (as defined in Section 3(1) of ERISA), bonus, stock option, stock purchase, deferred compensation plans or arrangements and other employee fringe benefit plans maintained, or contributed to, by the Company or the Subsidiaries for the
benefit of any of the officers or employees of the Company or the Subsidiaries (all the foregoing, including Pension Plans, being herein called “Benefit Plans”). 
  
 (b) Each Benefit Plan has been administered in all material respects in accordance with its terms. The Company and all the
Benefit Plans are in compliance in all material respects with the applicable provisions of ERISA, the Code, all other applicable laws and all applicable collective bargaining agreements. All material reports, returns and similar documents with
respect to the Benefit Plans required to be filed with any governmental entity or distributed to any Benefit Plan participant have been duly and timely filed or distributed. There 
  

 -10- 

 are no actions or proceedings pending, or, to the Company’s Knowledge, threatened against or involving any Benefit
Plan and, to the Company’s Knowledge, there are no investigations by any governmental entity or other claims (except routine claims for benefits payable in the normal operation of the Benefit Plans) pending or threatened against or involving
any Benefit Plan or asserting any rights to benefits under any Benefit Plan. To the Company’s Knowledge, there are no unasserted claims of the type that would be required to be disclosed in Schedule 5.14 if pending or threatened that are
considered probable of assertion and that if asserted would have at least a reasonable possibility of an adverse determination. 
  
 5.15. Intellectual Property. 
  
 (a) All Intellectual Property owned or used by the Company and/or the Subsidiaries is currently in compliance with all legal requirements (including
timely filings, proofs and payments of fees). All Intellectual Property owned or used by the Company and/or the Subsidiaries is valid and enforceable. No Intellectual Property of the Company or the Subsidiaries which is necessary for the conduct of
the Company’s and each of the Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted has been or is now involved in any cancellation, invalidity challenge, dispute or litigation, and, to the
Company’s Knowledge, no such action is threatened. No patent owned or used by the Company and/or the Subsidiaries has been or is now involved in any interference, reissue, re-examination or opposition proceeding. 
  
 (b) All of the licenses, sublicenses, royalty or other agreements concerning
Intellectual Property which are necessary for the conduct of the Company’s and each of the Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted to which the Company or any Subsidiary is a
party or by which any of their assets are bound (other than generally commercially available, non-custom, off-the-shelf software application programs) (collectively, “License Agreements”) are valid and binding obligations of
the Company or the Subsidiaries that are parties thereto and, to the Company’s Knowledge, to the other parties thereto. The License Agreements are enforceable in accordance with their terms, except to the extent that enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally, and there exists no event or condition which will result in a material
violation or breach of, or constitute (with or without due notice or lapse of time or both) a default by the Company or any of the Subsidiaries under any such License Agreement. 
  
 (c) The Company and the Subsidiaries own and/or have the valid right to use pursuant to valid and enforceable License
Agreements the Intellectual Property which is necessary for the conduct of the Company’s and each of the Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted in all jurisdictions in which they
conduct their businesses. Except as set forth in the SEC Filings or on Schedule 5.15, all Intellectual Property of the Company and the Subsidiaries that is owned by any of the foregoing are owned free and clear of all liens, encumbrances,
adverse claims or obligations to license all such owned Intellectual Property, other than licenses entered into in the ordinary course of the Company’s and the Subsidiaries’ businesses. 
  

 -11- 

 (d) The Company and each of the Subsidiaries have taken all reasonable steps to maintain, police and
protect the Intellectual Property which it owns and/or which is necessary for the conduct of the Company’s and each of the Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted, including the
execution of appropriate confidentiality agreements and intellectual property and work product assignments and releases. The conduct of the Company’s and the Subsidiaries’ businesses as currently conducted does not infringe or otherwise
impair or conflict with (collectively, “Infringe”) any Intellectual Property rights of any third party, and, to the Company’s Knowledge, the Intellectual Property rights of the Company and the Subsidiaries which are
necessary for the conduct of the Company’s and each of the Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted are not being Infringed by any third party. There is no litigation or order
pending or outstanding or, to the Company’s Knowledge, threatened or imminent, that seeks to limit or challenge or that concerns the ownership, use, validity or enforceability of any Intellectual Property of the Company and the Subsidiaries and
the Company’s and the Subsidiaries’ use of any Intellectual Property owned by a third party, and, to the Company’s Knowledge, there is no valid basis for the same. 
  
 (e) The consummation of the transactions contemplated hereby will not result in the alteration, loss, impairment of or
restriction on the Company’s or any of the Subsidiaries’ ownership or right to use any of the Intellectual Property which is necessary for the conduct of the Company’s and each of the Subsidiaries’ respective businesses as
currently conducted or as currently proposed to be conducted. 
  
 (f) To the Company’s Knowledge, all software owned by the Company or any of the Subsidiaries, and, to the Company’s Knowledge, all software licensed from third parties by the Company or any of the Subsidiaries, (i) is free from
any material defect, bug, virus, or programming, design or documentation error; and (ii) conforms in all material respects to the specifications and purposes thereof. 
  
 (g) The Company and the Subsidiaries have taken reasonable steps to protect the Company’s and the Subsidiaries’
rights in their confidential information and trade secrets. Each employee, consultant and contractor who has had access to proprietary Intellectual Property which is necessary for the conduct of the Company’s and each of the Subsidiaries’
respective businesses as currently conducted or as currently proposed to be conducted has executed an agreement to maintain the confidentiality of such Intellectual Property and has executed appropriate agreements that are substantially consistent
with the Company’s standard forms thereof. Except under confidentiality obligations, to the Company’s Knowledge, there has been no material disclosure of any of the Company’s or the Subsidiaries’ confidential information or trade
secrets to any third party. 
  
 5.16. Environmental
Matters. Neither the Company nor any Subsidiary (i) is in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous
or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), (ii) owns or operates any 
  

 -12- 

 real property contaminated with any substance that is subject to any Environmental Laws, (iii) is liable for any off-site
disposal or contamination pursuant to any Environmental Laws, or (iv) is subject to any claim relating to any Environmental Laws, which violation, contamination, liability or claim would individually or in the aggregate have a Material Adverse
Effect; and the Company is not aware of any pending investigation that might lead to such a claim. 
  
 5.17. Litigation. Except as disclosed in the SEC Filings or on Schedule 5.17 hereto, there are no pending actions, suits or proceedings
against or affecting the Company, the Subsidiaries or any of its or their properties; and to the Company’s Knowledge, no such actions, suits or proceedings are threatened or contemplated. 
  
 5.18. Financial Statements. The financial statements included in each
SEC Filing fairly present the consolidated financial position of the Company as of the dates shown and its consolidated results of operations and cash flows for the periods shown, and such financial statements have been prepared in conformity with
United States generally accepted accounting principles applied on a consistent basis. Except as set forth in the financial statements of the Company included in the SEC Filings filed prior to the date hereof, the Company has no liabilities,
contingent or otherwise, except those which individually or in the aggregate would not have a Material Adverse Effect. 
  
 5.19. Insurance Coverage. The Company maintains in full force and effect insurance coverage that is customary for comparably situated companies for
the business being conducted and properties owned or leased by the Company, and the Company reasonably believes such insurance coverage to be adequate against all liabilities, claims and risks against which it is customary for comparably situated
companies to insure. 
  
 5.20. Brokers and Finders. Except
as set forth on Schedule 5.20 and for the cash commission to be paid (the “Cash Placement Agent Fee”) and warrants to be issued (the “Placement Agent Warrants”) to the Placement Agent pursuant
to the terms of the Placement Agent Agreement, no Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company, any Subsidiary or any Investor for any commission,
fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company. 
  
 5.21. No Directed Selling Efforts or General Solicitation; Exemption from Registration. Neither the Company nor any Person acting on its behalf has
conducted any general solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer or sale of any of the Securities. Subject to the accuracy and completeness of the representations and warranties of the
respective Investors contained in Section 6 hereof, the offer, sale and issuance by the Company to the Investors of the Securities are exempt from the registration requirements of the 1933 Act. 
  
 5.22. No Integrated Offering. Neither the Company nor any of its
Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would adversely affect reliance by the Company on
Section 4(2) for the exemption from registration for the transactions contemplated hereby or would require registration of the Securities under the 1933 Act. 
  

 -13- 

 5.23. Questionable Payments. Neither the Company nor any of the Subsidiaries nor, to
the Company’s Knowledge, any of their respective current or former stockholders, directors, officers, employees, agents or other Persons acting on behalf of the Company or any Subsidiary, has on behalf of the Company or any Subsidiary or in
connection with their respective businesses: (a) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; (b) made any direct or indirect unlawful payments to any
governmental officials or employees from corporate funds; (c) established or maintained any unlawful or unrecorded fund of corporate monies or other assets; (d) knowingly made any false or fictitious entries on the books and records of the Company;
or (e) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment of any nature. 
  
 5.24. Disclosures. Neither the Transaction Documents (including the Disclosure Schedules, any schedules or exhibits attached hereto or thereto) nor
the SEC Filings contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not misleading in light of the circumstances under which they were made. There is no fact
known to the Company that the Company has not disclosed to the Investors which has had or which could be expected to have a Material Adverse Effect. 
  
 5.25. Use of Proceeds. The proceeds of the sale of the Shares hereunder shall be used by the Company for research and development and general
corporate purposes consistent with its business as conducted or proposed to be conducted as of the Closing Date. 
  
 5.26. Transactions With Affiliates. Except as disclosed in SEC Filings made on or prior to the date hereof, none of the officers or directors of
the Company and, to the Company’s Knowledge, none of the employees of the Company is presently a party to any transaction with the Company or a Subsidiary or to a presently contemplated transaction (other than for services as employees,
officers and directors) that would be required to be disclosed pursuant to Item 404 of Regulation S-K promulgated under the 1933 Act, without regard to the dollar thresholds contained in such Item. 
  
 6. Representations and Warranties of the Investors. Each of the
Investors hereby severally, and not jointly, represents and warrants to the Company and the Placement Agent that: 
  
 6.1. Authorization. The execution, delivery and performance by the Investor of the Transaction Documents to which such Investor is a party have
been duly authorized and will each constitute the valid and legally binding obligation of the Investor, enforceable against the Investor in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally. 
  
 6.2. Purchase Entirely for Own Account. The Securities to be received by the Investor hereunder will be acquired for the Investor’s own
account, not as nominee or agent, and 
  

 -14- 

 not with a view to the resale or distribution of any part thereof in violation of the 1933 Act, and the Investor has no
present intention of selling, granting any participation in, or otherwise distributing the same in violation of the 1933 Act. The Investor is not a registered broker dealer or an entity engaged in the business of being a broker dealer. 

 
 6.3. Investment Experience. The Investor can bear the economic risk
and complete loss of its investment in the Securities and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment contemplated hereby. The Investor is experienced in
making private investments in public equities, similar to the purchase of the Securities hereunder. 
  
 6.4. Disclosure of Information. The Investor has had an opportunity to receive all additional information related to the Company requested by it
and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Securities. The Investor acknowledges receipt of copies of and its satisfactory review of the SEC
Filings. Neither such inquiries nor any other due diligence investigation conducted by the Investor shall modify, amend or affect the Investor’s right to rely on the Company’s representations and warranties contained in this Agreement.

  
 6.5. Restricted Securities. The Investor understands
that the Securities are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under the 1933 Act only in certain limited circumstances. 
  
 6.6. Legends. 
  
 (a) It is understood that, except as provided below, certificates evidencing such Securities may bear the following or any similar legend: 
  
 “The securities represented hereby may not be transferred unless (i)
such securities have been registered for sale pursuant to the Securities Act of 1933, as amended, or (ii) the Company has received an opinion of counsel satisfactory to it that such transfer may lawfully be made without registration under the
Securities Act of 1933 or qualification under applicable state securities laws.” 
  
 (b) If required by the authorities of any state in connection with the issuance of sale of the Securities, the legend required by such state authority. 
  
 (c) From and after the registration of the Shares and the Warrant Shares for resale pursuant to the Registration Rights
Agreement, the Company shall, upon an Investor’s written request, promptly cause certificates evidencing the Securities to be replaced with certificates which do not bear such restrictive legends, and Warrant Shares subsequently issued upon due
exercise of the Investor Warrants shall not bear such restrictive legends.  
  
 6.7. Accredited Investor. The Investor is an “accredited investor” as defined in Rule 501(a) of Regulation D, as amended, under the 1933 Act. 
  

 -15- 

 6.8. No General Solicitation. The Investor did not learn of the investment in the Securities as a
result of any “general advertising” or “general solicitation” as those terms are contemplated in Regulation D, as amended, under the 1933 Act. 
  
 6.9. Brokers and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any
valid right, interest or claim against or upon the Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Investors.

  
 7. Conditions to Closing. 
  
 7.1. Conditions to the Investors’ Obligations. The obligation of
the Investors to purchase the Securities at the Closing is subject to the fulfillment to the Placement Agent’s satisfaction, on or prior to the Closing Date, of the following conditions: 
  
 (a) The representations and warranties made by the Company in Section
5 hereof shall be true and correct in all material respects on the Closing Date, except to the extent any of such representations and warranties are qualified as to materiality, then those representations and warranties which are so qualified
shall be true and correct in all respects on the Closing Date. The Company shall have performed in all material respects all obligations and conditions herein required to be performed or observed by it on the Closing Date. 
  
 (b) The Company shall have obtained in a timely fashion any and all consents,
permits, approvals, registrations and waivers necessary or appropriate for consummation of the purchase and sale of the Securities, and all of which shall be and remain so long as necessary in full force and effect. 
  
 (c) The Company shall have executed and delivered the Registration Rights
Agreement to the Placement Agent. 
  
 (d) No judgment, writ,
order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been
instituted by any governmental authority, or self-regulatory organization enjoining or preventing the consummation of the transactions contemplated hereby or in the other Transaction Documents. 
  
 (e) The Company shall have delivered a Certificate, executed on behalf of the
Company by its Chief Executive Officer or its Chief Financial Officer, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in subsections (a), (b), (d) and (h) of this Section 7.1. 
  
 (f) The Company shall have delivered a Certificate, executed on behalf of the
Company by its Secretary, dated as of the Closing Date, certifying the resolutions adopted by the Board of Directors of the Company approving the transactions contemplated by this Agreement and the other Transaction Documents and the issuance of the
Securities, certifying the current versions of the Certificate of Incorporation and by-laws of the Company and certifying as to the signatures and authority of persons signing the Transaction Documents and related documents on behalf of the Company.

  

 -16- 

 (g) The Investors and the Placement Agent shall have received an opinion from Wyrick Robbins Yates &
Ponton LLP, the Company’s counsel, dated as of the Closing Date, substantially in the form attached hereto as Exhibit C. 
  
 (h) No stop order or suspension of trading shall have been imposed by any Person with respect to public trading in the Common Stock. 
  
 (i) The Company shall have drawn down the balance of the principal under the
Goodnow Debenture in accordance with its terms and conditions, and the Goodnow Debenture (all principal and accrued and unpaid interest thereon) shall have been fully converted into Common Stock. 
  
 7.2. Conditions to Obligations of the Company. The Company’s
obligation to sell and issue the Securities at the Closing is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be waived by the Company: 
  
 (a) The representations and warranties made by the Investors in Section
6 hereof shall be true and correct in all material respects when made, and shall be true and correct in all material respects on the Closing Date with the same force and effect as if they had been made on and as of said date. 
  
 (b) The Investors shall have executed and delivered the Registration Rights
Agreement to the Placement Agent at or prior to Closing; provided, that, this condition shall be satisfied with respect to each Investor who has executed and delivered the Registration Rights Agreement. 
  
 (c) Each of the Investors shall have delivered to Placement Agent Counsel
prior to Closing the “Aggregate Purchase Price” set forth opposite such Investor’s name on Schedule I affixed hereto. 
  

(d) No judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy court or judge,
or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted by any governmental authority, or self-regulatory organization enjoining or preventing the consummation of the
transactions contemplated hereby or in the other Transaction Documents. 
  
 8. Covenants and Agreements of the Company. 
  
 8.1. Reservation of Common Stock. The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of providing for the exercise of the Warrants, such number
of shares of Common Stock as shall from time to time equal the number of shares sufficient to permit the exercise of the Warrants (including the Placement Agent Warrants) issued pursuant to this Agreement in accordance with their respective terms.

  

 -17- 

 8.2. No Conflicting Agreements. The Company will not take any action, enter into any agreement or
make any commitment that would conflict with or interfere in any material respect with the obligations to the Investors under the Transaction Documents. 
  
 8.3. Insurance. The Company shall not materially reduce the product liability and directors and officers insurance coverages described in
Section 5.19; provided, however, the Company may reduce the amount of directors and officers liability insurance if (a) the renewal premium is greater than 300% of the then current premium, and (b) the Board of Directors of the
Company approves the reduction. 
  
 8.4. Compliance with
Laws. The Company will comply in all material respects with all applicable laws, rules, regulations, orders and decrees of all governmental authorities, except to the extent non-compliance would not have a Material Adverse Effect. 
  
 8.5. Termination of Certain Covenants. The provisions of Sections
8.2 through 8.4 shall terminate and be of no further force and effect upon the date on which the Company’s obligations under the Registration Rights Agreement to register and maintain the effectiveness of any registration covering
the Registrable Securities (as such term is defined in the Registration Rights Agreement) shall terminate. 
  
 8.6 Listing of Underlying Shares and Related Matters. If the Company applies to have its Common Stock or other securities traded on the Nasdaq
National Market System or SmallCap Market, or any other principal stock exchange or market, it shall include in such application the Shares and the Warrant Shares and will take such other action as is necessary to cause such Common Stock to be so
listed. If listed, the Company will use commercially reasonable efforts to continue the listing and trading of its Common Stock on the Nasdaq National Market System or SmallCap Market or national securities exchange, as the case may be, and, in
accordance, therewith, will use commercially reasonable efforts to comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of such market or exchange, as applicable. 
  
 8.7 Goodnow Debenture. On or before the Closing Date, the Company
shall, subject to the terms and conditions thereof, draw down the balance of the Goodnow Debenture, and comply with the conversion provisions thereof, including without limitation the issuance of certificates evidencing the certificate of Common
Stock issuable upon conversion thereof. 
  
 9. Survival and
Indemnification. 
  
 9.1. Survival. All
representations, warranties, covenants and agreements contained in this Agreement shall be deemed to be representations, warranties, covenants and agreements as of the date hereof and shall survive the Closing Date for a period of three (3) years;
provided, however, that the provisions contained in Section 8 hereof shall survive in accordance therewith. 
  
 9.2. Indemnification. The Company agrees to indemnify and hold harmless, each Investor and the Placement Agent and their respective Affiliates and
the owners, directors, 
  

 -18- 

 officers, employees and agents of each Investor, the Placement Agent and their respective Affiliates, from and against
any and all losses, claims, damages, liabilities and expenses (including without limitation reasonable attorney fees and disbursements and other reasonable expenses incurred in connection with investigating, preparing or defending any action, claim
or proceeding, pending or threatened and the costs of enforcement hereof) (collectively, “Losses”) to which such Person may become subject as a result of any breach of representation, warranty, covenant or agreement made by,
or to be performed on the part of, the Company under the Transaction Documents, and will reimburse any such Person for all such amounts as they are incurred by such Person. 
  
 9.3. Conduct of Indemnification Proceedings. Promptly after receipt by any Person (the
“Indemnified Person”) of notice of any demand, claim or circumstances which would or might give rise to a claim or the commencement of any action, proceeding or investigation in respect of which indemnity may be sought
pursuant to Section 9.2, such Indemnified Person shall promptly notify the Company in writing and the Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person, and shall
assume the payment of all fees and expenses; provided, however, that the failure of any Indemnified Person so to notify the Company shall not relieve the Company of its obligations hereunder except to the extent that the Company is
actually and materially prejudiced by such failure to notify. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person
unless: (i) the Company and the Indemnified Person shall have mutually agreed to the retention of such counsel; or (ii) in the reasonable judgment of counsel to such Indemnified Person representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. The Company shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or
conditioned, but if settled with such consent, or if there be a final judgment for the plaintiff, the Company shall indemnify and hold harmless such Indemnified Person from and against any Losses by reason of such settlement or judgment. Without the
prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld, delayed or conditioned, the Company shall not effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person
is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Person from all liability arising out of such proceeding.

  
 10. Miscellaneous. 
  
 10.1. Successors and Assigns. This Agreement may not be assigned by a
party hereto without the prior written consent of the Company or the Investors, as applicable; provided, however, that an Investor may assign its rights and delegate its duties hereunder in whole or in part to an Affiliate or to a
third party acquiring some or all of its Securities in a private transaction without the prior written consent of the Company or the other Investors, after notice duly given by such Investor to the Company, provided, that no such assignment or
obligation shall affect the obligations of such Investor hereunder. The provisions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties. Except for Placement Agent and
Placement Agent Counsel, which are 
  

 -19- 

 express intended third party beneficiaries of this Agreement, and except for provisions of this Agreement expressly to
the contrary, nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this
Agreement. References in Section 5 to the Company and any Subsidiaries shall include the Company, such Subsidiary, and all of their respective predecessors-in-interest, including without limitation, Incara Pharmaceuticals Corporation.

  
 10.2. Counterparts; Faxes. This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed via facsimile, which shall be deemed an original. 
  
 10.3. Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 10.4. Notices. Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed
effectively given only upon delivery to each party to be notified by (i) personal delivery, (ii) telex or telecopier, upon receipt of confirmation of complete transmittal, or (iii) a nationally recognized overnight air courier, addressed to the
party to be notified at the address as follows, or at such other address as such party may designate by ten (10) days’ advance written notice to the other party: 
  
 If to the Company: 
  
 P.O. Box 14287 
 79 T.W. Alexander Drive

 4401 Research Commons, Suite 200 
 Research Triangle Park, North Carolina 27709 
 Attn: Clayton I. Duncan 
 Telephone: 919.558.8688 
 Facsimile: 919.544.1245 
  
 With a copy to:

  
 Wyrick Robbins Yates & Ponton LLP 
 4101 Lake Boone Trail, Suite 300 
 Raleigh,
North Carolina 27607 
 Attn: Larry E. Robbins, Esq. 
 Telephone: 919.781.4000 
 Facsimile: 919.781.4865 
  
 If to any of the Investors: 
  
 to the addresses set forth on Schedule I hereto. 

 

 -20- 

 With a copy to: 
  

SCO Securities LLC 
 1285 Avenue
of the Americas 
 35th Floor 
 New York, New York 10019 
 Attn: Jeffrey B. Davis 
 Fax: 212-554-4058 
  
 10.5. Expenses. The Company shall pay the reasonable fees and expenses of Placement Agent Counsel in connection with
the Private Placement (the “Placement Agent Counsel Fees”), which Placement Agent Counsel Fees shall include, without limitation, the fees and expenses associated with the negotiation, preparation and execution and delivery
of this Agreement and the other Transaction Documents and any amendments, modifications or waivers thereto. The Placement Agent Counsel Fees shall be paid to Placement Agent Counsel at the Closing by release to Placement Agent Counsel of the portion
of the Escrow Amount equal to the Placement Agent Counsel Fees. Except as set forth above, the Company and the Investors shall each bear their own expenses in connection with the negotiation, preparation, execution and delivery of this Agreement. In
the event that legal proceedings are commenced by any party to this Agreement against another party to this Agreement in connection with this Agreement or the other Transaction Documents, the party or parties which do not prevail in such proceedings
shall severally, but not jointly, pay their pro rata share of the reasonable attorneys’ fees and other reasonable out-of-pocket costs and expenses incurred by the prevailing party in such proceedings. 
  
 10.6. Amendments and Waivers. Any term of this Agreement may be
amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the prior written consent of the Company and the Placement Agent;
provided, however, that any provision hereof which impairs the rights or increases the obligations of a specific Investor shall not be amended or waived without the prior written consent of the Company, the Placement Agent and that
particular Investor; provided, further, that any provision affecting the rights or obligations of Placement Agent or Placement Agent Counsel, as the case may be, shall not be waived or amended without the prior written consent of the
Placement Agent or Placement Agent Counsel, as applicable. Any amendment or waiver effected in accordance with this Section 10.6 shall be binding upon each holder of any Securities purchased under this Agreement at the time outstanding, each
future holder of all such Securities, and the Company. 
  
 10.7.
Publicity. No public release or announcement concerning the transactions contemplated hereby shall be issued by the Company or the Investors without the prior consent of the Company (in the case of a release or announcement by the Investors)
or the Placement Agent, as representative of the Investors (in the case of a release or announcement by the Company) (which consents shall not be unreasonably withheld), except as such release or announcement may be required by law or the applicable
rules or regulations of any securities exchange or securities market on which the Securities are then listed and trading, in which case the Company or the Placement Agent, as the case may be, shall allow the Investors or the Company, as applicable,
to the extent reasonably practicable in the circumstances, reasonable time to comment on such release or announcement in advance of such issuance. 
  

 -21- 

 10.8. Severability. Any provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as if it were written so as to be enforceable to the
maximum extent permitted by applicable law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law, the
parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect. 
  
 10.9. Entire Agreement. This Agreement, including the Schedules, Exhibits and the Disclosure Schedules, and the other Transaction Documents
constitute the entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter
hereof and thereof. Prior drafts or versions of this Agreement shall not be used to interpret this Agreement. 
  
 10.10. Further Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained. 
  
 10.11. Governing Law; Consent to Jurisdiction. This Agreement and the other Transaction Documents, and all matters arising directly or indirectly
hereunder or thereunder, shall be governed by, and construed in accordance with, the internal laws of the State of New York, without reference to the choice of law principles thereof. Any legal action, suit or proceeding arising out of or relating
to this Agreement, the other Transaction Documents or the transactions contemplated hereby or thereby shall only be instituted, heard and adjudicated (excluding appeals) in a state or federal court located in the Southern District of New York, and
each party hereto knowingly, voluntarily and intentionally waives any objection which such party may now or hereafter have to the laying of the venue of any such action, suit or proceeding, and irrevocably submits to the non-exclusive personal
jurisdiction of any such court in any such action, suit or proceeding. Service of process in connection with any such action, suit or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the
giving of notices under this Agreement. 
  
 10.12 WAIVER OF
JURY TRIAL. THE PARTIES HERETO DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING ALL APPLICABLE LAWS. THEREFORE, THE PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY
DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN OR AMONG THEM ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THE TRANSACTION DOCUMENTS OR THE TRANSACTIONS RELATED
THERETO. 
  

 -22- 

 10.13 Specific Performance. Notwithstanding anything in any of the Transaction Documents to the
contrary, with respect to the issuance of any Securities upon exercise of, conversion of or otherwise pursuant to, any of the Transaction Documents, as the case may be, the Investors, and their successors and assigns, shall be entitled, in addition
to all other rights and remedies that may be available at law or in equity, to the remedy of specific performance in a summary proceeding if the Company or other issuer of such Securities, as applicable, shall fail to timely issue and deliver any
such Securities in accordance with the terms of the applicable Transaction Document. 
  
 [signature page follows] 
  

 -23- 

 [Company Signature Page] 
  
 IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly authorized officers to execute
this Purchase Agreement as of the date first above written. 
  

			
	INCARA PHARMACEUTICALS CORPORATION
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 -24- 

 [Investor Signature Page] 
  
 IN WITNESS WHEREOF, the undersigned has executed this Purchase Agreement or caused its duly authorized officers to execute
this Purchase Agreement as of the date first above written. 
  

									
	 Date:
	 	  

	 	 	 	 	 	 
			
	 IF AN INDIVIDUAL:
	 	 	 	 IF A CORPORATION, PARTNERSHIP, TRUST, ESTATE OR OTHER ENTITY:

	
	 	 	 	 
	 	 	 (Signature)
	 	 	 	  

	 	 	 	 	 	 	 Print name of entity

	  

	 	 	 	 
	 (Printed Name)
	 	 	 	 By:
	 	  

					
	 	 	 	 	 	 	 Name:
	 	  

					
	 	 	 	 	 	 	 Title:
	 	  

			
	 Address:
	 	 	 	 Address:

			
	  
  

	 	 	 	  
  

			
	
	 	 	 	

			
	
	 	 	 	

			
	 	 	 	 	  
  

  
 Aggregate dollar amount for shares of
Common Stock and Investor Warrants committed to be purchased pursuant to the terms of the Agreement: 
  
 [Insert dollar amount] $             (the “Aggregate Purchase Price”). 
 (Shares of Common Stock to be received = the Aggregate Purchase Price divided by $0.25) 
  

 -25-

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