Document:

Exhibit 10.4

 

PLACEMENT AGENCY AGREEMENT

 

June 24, 2020

 

Aegis Capital Corp.

 

810 Seventh Ave, 18th Floor

New York, NY 10019

 

Re: DelMar Pharmaceuticals,
Inc.

 

Ladies and Gentlemen:

 

This Placement Agency
Agreement (“Agreement”) sets forth the terms upon which Aegis Capital Corp., a New York corporation (“Aegis”
or “Placement Agent”), a registered broker-dealer and member of the Financial Industry Regulatory Authority
(“FINRA”), shall be engaged by DelMar Pharmaceuticals, Inc., a Nevada corporation (the “Company”)
to act as exclusive Placement Agent in connection with the private placement (the “Offering”) of shares (the
“Shares”) of Series C Convertible Preferred Stock, par value $0.001 per share (the “Series C Preferred
Stock”). The Offering will consist of a minimum of 10,000 Shares ($10 million) (“Minimum Offering Amount”)
and up to a maximum of 20,000 Shares ($20 million) (“Maximum Offering Amount”) which shall be offered on a “reasonable
efforts, all or none” basis as to the Minimum Offering Amount and a “reasonable efforts” basis for all amounts
in excess of the Minimum Offering Amount. In the event the Offering is oversubscribed, the Company and Placement Agent may, in
their mutual discretion, have Company sell up to 10,000 additional Shares for an additional aggregate purchase price of $10 million
(the “Overallotment”). For purposes hereof, the term “Shares” or “Series C Preferred Stock”
shall refer to and include potentially one or more series of Series C Preferred Stock (i.e., Series C-1 Preferred Stock, Series
C-2 Preferred Stock, etc.) that may be sold in the Offering, each of which shall contain identical terms except for the conversion
price which may vary from series to series.

 

The purchase price
for the Shares will be $1,000 per Share (the “Offering Price”), with a minimum investment of $100,000; provided,
however, that subscriptions for lesser amounts may be accepted in the Company’s and Placement Agent’s
joint discretion. The Placement Agent shall accept subscriptions only from persons or entities who qualify as “accredited
investors,” as such term is defined in Rule 501 of Regulation D (“Regulation D”) as promulgated by the
United States Securities and Exchange Commission (the “SEC”) under Section 4(a)(2) of the Securities Act of
1933, as amended (the “Securities Act”). The Shares will be offered until the earlier of (i) the termination
of the Offering as provided herein, (ii) the time that all Shares offered in the Offering are sold or (iii) August 31, 2020 (“Initial
Offering Period”), which date may be extended by the Placement Agent and the Company in their joint discretion until
September 30, 2020 (this additional period and the Initial Offering Period shall be referred to as the “Offering Period”).
The date on which the Offering expires or is terminated shall be referred to as the “Termination Date.”

 

With respect to
the Offering, the Company shall provide the Placement Agent, on terms set forth herein, the right to offer and sell all of
the Shares being offered. Purchases of Shares may be made by officers, directors, employees and affiliates of the Placement
Agent. All such purchases, together with purchases by officers, directors, employees and affiliates of the Company, shall be
included in calculations as to whether the Minimum Offering Amount, Maximum Offering Amount or Overallotment has been sold in
the Offering. The Company, in its sole discretion, may accept or reject, in whole or in part, any prospective investment in
the Shares. Notwithstanding anything to the contrary set forth herein, it is understood that no sale shall be regarded as
effective unless and until accepted by the Company. The Company and the Placement Agent shall mutually agree with respect to
allotting any prospective subscriber less than the number of Shares that such subscriber desires to purchase.

 

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The Offering will
be made by the Company solely pursuant to the Memorandum (as defined below), which at all times will be in form and substance
reasonably acceptable to the Company, the Placement Agent and their respective counsel and contain such legends and other information
as Company, the Placement Agent and their respective counsel, may, from time to time, deem necessary or desirable to be set forth
therein. “Memorandum” as used in this Agreement means Company’s Confidential Private Placement Memorandum dated
on or about June 24, 2020, inclusive of all annexes, and all amendments, supplements and appendices thereto.

 

1. Appointment
of Placement Agent. On the basis of the representations and warranties provided herein, and subject to the terms and conditions
set forth herein, the Placement Agent is appointed as exclusive placement agent for the Company during the Offering Period to assist
the Company in finding qualified subscribers for the Offering. The Placement Agent may sell Shares through other broker-dealers
who are FINRA members, as well as through foreign finders pursuant to applicable FINRA rules, and may reallow all or a portion
of the Agent Compensation (as defined in Section 3(b) below) it receives to such other broker-dealers or foreign finders. On the
basis of such representations and warranties and subject to such terms and conditions, the Placement Agent hereby accepts such
appointment and agrees to perform its services hereunder diligently and in good faith and in a professional and businesslike manner
and to use its reasonable efforts to assist the Company in (A) finding subscribers of Shares who qualify as “accredited investors,”
as such term is defined in Rule 501 of Regulation D, and (B) completing the Offering. The Placement Agent has no obligation to
purchase any of the Shares. Unless sooner terminated in accordance with this Agreement, the engagement of the Placement Agent hereunder
shall continue until the later of the Termination Date or the Final Closing (as defined below).

 

2. Representations,
Warranties and Covenants of the Company. Except as set forth in the Memorandum, the SEC Reports (as defined herein) or in the
schedule of exceptions delivered to the Placement Agent on the date hereof (the “Schedule of Exceptions”), the
representations and warranties of the Company contained in this Section 2 are true and correct as of the date of this Agreement.

 

(a) The
Memorandum has been prepared by the Company in compliance in all material respects with Regulation D and Section 4(a)(2) of
the Act and the requirements of all other rules and regulations (the “Regulations”) relating to offerings
of the type contemplated by the Offering, and the applicable securities laws and the rules and regulations of those
jurisdictions wherein the Placement Agent notifies the Company that the Shares are to be offered and sold excluding any
foreign jurisdictions. The Shares will be offered and sold pursuant to the registration exemptions provided by Regulation D
and Section 4(a)(2) of the Act as a transaction not involving a public offering and the requirements of any other applicable
state securities laws and the respective rules and regulations thereunder in those United States jurisdictions in which the
Placement Agent notifies the Company that the Shares are being offered for sale. To the extent that Shares are offered in
jurisdictions outside of the United States, such Shares will be offered and sold in compliance with all applicable laws that
govern private securities offerings in the applicable country and in all local jurisdictions in which such Shares are
offered. None of the Company, its affiliates, or any person acting on its or their behalf (other than the Placement Agent,
its affiliates or any person acting on its behalf, in respect of which no representation is made) has taken nor will it take
any action that conflicts with the conditions and requirements of, or that would make unavailable with respect to the
Offering, the exemption(s) from registration available pursuant to Rule 506(b) of Regulation D or Section 4(a)(2) of the Act,
or knows of any reason why any such exemption would be otherwise unavailable to it. None of the Company, its predecessors or
affiliates has been subject to any order, judgment or decree of any court of competent jurisdiction temporarily,
preliminarily or permanently enjoining such person for failing to comply with Section 503 of Regulation D. The Company has
not, for a period of six months prior to the commencement of the offering of Shares, sold, offered for sale or solicited any
offer to buy any of its securities in a manner that would be integrated with the offer and sale of the Shares pursuant to
this Agreement and would cause the exemption from registration set forth in Rule 506(b) of Regulation D to become unavailable
with respect to the offer and sale of the Shares pursuant to this Agreement in the United States. For purposes of this
Agreement, “to the Company’s Knowledge” or similar phrases means (a) the actual knowledge of any of
Saiid Zarrabian and Scott Praill of a fact or matter after making reasonable inquiry.

 

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(b) The
Memorandum does not include any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided,
however, the foregoing does not apply to any statements or omissions made solely in reliance on and in conformity with written
information furnished to the Company by the Placement Agent specifically for use in the preparation thereof. None of the statements,
documents, certificates or other items made, prepared or supplied by the Company with respect to the transactions contemplated
hereby contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements contained
therein not misleading in light of the circumstances in which they were made. There are no facts, circumstances or conditions which
the Company has not disclosed in the Memorandum and of which the Company is aware that has had or that could reasonably be expected
to have a Company Group Material Adverse Effect (as defined in Section 2(c) below). Notwithstanding anything to the contrary herein,
the Company makes no representation or warranty with respect to any estimates, projections and other forecasts and plans (including
the reasonableness of the assumptions underlying such estimates, projections and other forecasts and plans) that may have been
delivered to the Placement Agent or its representatives or that are contained in the Memorandum, except that such estimates, projections
and other forecasts and plans have been prepared in good faith on the basis of assumptions stated therein, which assumptions were
believed to be reasonable at the time of such preparation. Any statistical and market-related data included in the Memorandum are
based on or derived from sources that the Company believes, after reasonable inquiry, to be reliable and accurate in all material
respects and, to the extent required, the Company has obtained the written consent to the use of such data from such sources.

 

(c) The
Company is a corporation duly incorporated and validly existing in good standing under the laws of the State of Nevada and
has the requisite power and authority to own its properties and to carry on its business as described in the Memorandum. Del
Mar Pharmaceuticals (BC) Ltd., 0959454 B.C. Ltd. and 0959456 B.C. Ltd. are the only entities owned or controlled, by the
Company (each a “Subsidiary” and collectively, the “Subsidiaries”), each of which is
duly incorporated, validly existing and in good standing under the laws of British Columbia, Canada. Except as described in
the Memorandum, neither the Company nor its Subsidiaries (i) owns or controls, directly or indirectly, any interest in any
other corporation, association or other business entity or (ii) participates in any joint venture, partnership or similar
arrangement. Each of the Company and the Subsidiaries (collectively referred to herein as the “Company Group) is
qualified or licensed to do business in all jurisdictions in which the character of the properties owned or held under
lease by it or the nature of its business makes qualification necessary, except where the failure to be so qualified or
licensed would not reasonably be expected to result in a Company Group Material Adverse Effect. No member of the Company
Group is in violation of any provision of any of its organizational documents. As used in this Agreement, “Company
Group Material Adverse Effect” means any event, circumstance, change or effect that, individually or in the
aggregate with all other events, circumstances, changes and effects, is or is reasonably likely to be materially adverse to
(i) the business, condition (financial or otherwise), assets, liabilities or results of operations of the Company and its
Subsidiaries taken as a whole or (ii) the ability of the Company to consummate the transactions contemplated by this
Agreement and to perform its obligations under the Transaction Documents; provided, however, that clause (i) shall not
include any event, circumstance, change or effect resulting from (y) changes in general economic conditions or changes in
securities markets in general that do not have a materially disproportionate effect (relative to other industry participants)
on the Company or its Subsidiaries or (z) general changes in the industries in which the Company and the Company Subsidiaries
operate, except those events, circumstances, changes or effects that adversely affect the Company and its Subsidiaries to a
materially greater extent than they affect other entities operating in such industries.

 

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(d) The
Company has all requisite corporate power and authority to enter into and perform its obligations under this Agreement, the Registration
Rights Agreement substantially in the form of Exhibit B to the Memorandum (the “Registration Rights Agreement”),
the Subscription Agreement substantially in the form of Exhibit A to the Memorandum (the “Subscription Agreement”),
the Escrow Agreement (as hereinafter defined) and the other agreements contemplated hereby (this Agreement, the Subscription Agreement,
the Registration Rights Agreement and the other agreements contemplated hereby that the Company is executing and delivering hereunder
are collectively referred to herein as the “Transaction Documents”).

 

(e) The
Shares to be purchased by investors pursuant to the Memorandum and the Agent Warrants (as defined in Section 3(b)) to be issued
to the Placement Agent pursuant to the terms of this Agreement have been duly authorized for issuance and sale pursuant to this
Agreement and, when issued and delivered by the Company pursuant to this Agreement against payment of the consideration set forth
herein, will be duly and validly issued, fully paid and non-assessable and will have the rights, preferences and priorities set
forth in the Company’s Certificate of Incorporation (including the Certificate of Designation, as defined below). The shares
of common stock, par value $0.001 of the Company (“Common Stock”) issuable upon conversion of the Shares and
Agent Warrant Shares (as defined in Section 3(b)) (collectively, the “Conversion Shares”) have been duly authorized
and reserved for issuance and when issued by the Company upon valid conversion of the Shares and Agent Warrant Shares, will be
duly and validly issued, fully paid and nonassessable. The shares of Common Stock which will be issued as dividends on the Shares
(collectively, the “Dividend Shares”) have been duly authorized and reserved for issuance, and when issued by
the Company in payment of dividends on the Shares, will be duly and validly issued, fully paid and nonassessable. The Agent Warrant
Shares have been duly authorized and reserved for issuance and when issued by the Company pursuant to the terms of the Agent Warrants,
will be duly and validly issued, fully paid and nonassessable. The issuance of the Shares, Conversion Shares, Dividend Shares,
Agent Warrants and Agent Warrant Shares are not subject to any preemptive or other similar rights of any securityholder of the
Company. The capital stock of the Company conforms in all material respects to all statements relating thereto contained in the
Memorandum. No holder of Shares or Agent Warrants will be subject to personal liability solely by reason of being such a holder.

 

(f) Prior
to the First Closing, each of the Transaction Documents (other than this Agreement, which has already been authorized) will have
been duly authorized. This Agreement has been duly authorized, executed and delivered and constitutes, and each of the other Transaction
Documents, upon due execution and delivery, will constitute, valid and binding obligations of the Company, enforceable against
the Company in accordance with their respective terms (i) except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect related to laws affecting creditors’ rights generally,
including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers, and except that no
representation is made herein regarding the enforceability of the Company’s obligations to provide indemnification and contribution
remedies under the securities laws and (ii) subject to the limitations imposed by general equitable principles (regardless of whether
such enforceability is considered in a proceeding at law or in equity).

 

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(g) Neither
the execution and the delivery of this Agreement or any Transaction Document, nor the consummation of the transactions contemplated
hereby, will (with or without the passage of time or giving of notice): (i) violate any injunction, judgment, order, decree, ruling,
charge or other restriction, or any Law (as defined below) applicable to any member of the Company Group, (ii) violate any provisions
of any of the charter documents of any member of the Company Group, (iii) violate or constitute a default (or any event which,
with or without due notice or lapse of time, or both, would constitute a violation or default) under, result in the termination
of, accelerate the performance required by any of the terms, conditions or provisions of any Material Contract (as defined in Section
2(n) below) of any member of the Company Group, or by which any member of the Company Group, or any of its respective operating
assets, is bound or (iv) result in the creation of any lien, charge or other encumbrance on the assets or properties of any member
of the Company Group. “Law” means any applicable federal, national, regional, state, municipal or local law,
statute, treaty, rule, regulation, ordinance, order, code, judgment, decree, directive, injunction, writ or similar action or decision.

 

(h) Except
as set forth on Schedule 2(h) of the Schedule of Exceptions, the Company has filed all reports, schedules, forms, statements
and other documents required to be filed by the Company under the Securities Act and the Securities and Exchange Act of 1934, as
amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding
the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing
materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein
as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed
any such SEC Reports prior to the expiration of any such extension. The SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any
untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading. Except as set forth
on Schedule 2(h) of the Schedule of Exceptions, the financial statements of the Company included in the SEC Reports comply
in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto
as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted
accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise
specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all
footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i) Except as
disclosed on Schedule 2(i) of the Schedule of Exceptions, since the date of the latest audited financial statements
included within the SEC Reports, (i) there has been no event, occurrence or development that has had or that could reasonably
be expected to result in a Company Group Material Adverse Effect, (ii) the Company has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements
pursuant to GAAP or disclosed in filings made with the SEC, (iii) the Company has not altered its method of accounting, (iv)
the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any
equity securities to any officer, director or Affiliate (as defined below), except pursuant to existing Company stock option
plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except
for the issuance of the Shares contemplated by the Memorandum and this Agreement or as set forth in the SEC Reports, no
event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or
exist with respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations,
assets or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the
time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date
that this representation is made. For purpose hereof, ” Affiliate” means any person that, directly or
indirectly through one or more intermediaries, controls or is controlled by or is under common control with a person, as such
terms are used in and construed under Rule 405 under the Securities Act.

 

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(j) The
capitalization of the Company as of the date hereof is as set forth in the SEC Reports. The Company has not issued any capital
stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock
options under the Company’s stock option plans, the issuance of shares of Common Stock to employees or consultants pursuant
to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents
(as defined below) outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has
any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated
by the Transaction Documents. Except as a result of the purchase and sale of the Shares and, as disclosed in the Company’s
SEC Reports and Schedule 2(j) of the Schedule of Exceptions, there are no outstanding options, warrants, scrip rights to
subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into
or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock or the
capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary
is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary.
Except as set forth on Schedule 2(i) of the Schedule of Exceptions, the issuance and sale of the Shares will not obligate
the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person. Except as disclosed in the SEC
Reports, there are no outstanding securities or instruments of the Company or any Subsidiary with any provision that adjusts the
exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company or any
Subsidiary. There are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or
similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary
is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation
rights or “phantom stock” plans or agreements or any similar plan or agreement. All of the outstanding shares of capital
stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all
federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors
or others is required for the issuance and sale of the Securities, except for shareholder approval to increase the number of authorized
shares of Common Stock. There are no stockholders agreements, voting agreements or other similar agreements with respect to the
Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the
Company’s stockholders. “Common Stock Equivalents” means any securities of the Company or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred
stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise
entitles the holder thereof to receive, Common Stock.

 

(k) The
Certificate of Designation on the Series C Preferred Stock, the proposed form of which is attached to the Memorandum as Exhibit
C (the “Certificate of Designation”), has been duly authorized by the Company and will have been duly
executed and delivered by the Company and duly filed with the Secretary of State of the State of Nevada before the First
Closing. The holders of the Series C Preferred Stock will have the rights set forth in the Certificate of Designation upon
filing of the Certificate of Designation with the Secretary of State of the State of Nevada.

 

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(l) The
conduct of business by members of the Company Group as presently and proposed to be conducted is not subject to continuing oversight,
supervision, regulation or examination by any governmental official or body of the United States, or any other jurisdiction wherein
any such members currently conduct such business, except as described in the SEC Reports or the Memorandum. Neither the Company,
nor any other member of the Company Group has received any notice of any violation of, or noncompliance with, any Law applicable
to its business, the violation of, or noncompliance with, which would have or would reasonably be expected to have a Company Group
Material Adverse Effect, and the Company knows of no facts or set of circumstances which could give rise to such a notice.

 

(m) The
Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local
or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where
the failure to possess such permits could not reasonably be expected to result in a Company Group Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(n) Except
as disclosed in the Memorandum or in the SEC Reports, no breach or default by any member of the Company Group or, to the Company’s
Knowledge, any other party, exists in the due performance under any of the terms of any note, bond, indenture, mortgage, deed of
trust, lease, rental agreement, material contract, material purchase or sales order or other material agreement or instrument to
which any member of the Company Group is a party or by which it or its property is bound or affected (each of the foregoing, a
“Material Contract”), and there exists no condition, event or act which constitutes, nor which after notice,
the lapse of time or both, could constitute a default under any of the foregoing, except as would not, individually or in the aggregate,
has had or is reasonably be expected to have an Company Group Material Adverse Effect. The Material Contracts disclosed in the
Memorandum are accurately described in the Memorandum and are in full force and effect in accordance with their respective terms,
subject to any applicable bankruptcy, insolvency or other laws affecting the rights of creditors generally and to general equitable
principles and the availability of specific performance.

 

(o) Except as
set forth on Schedule 2(o) of the Schedule of Exceptions, the Company and the Subsidiaries have, or have rights to
use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets,
inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or required for use in
connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a
Company Group Material Adverse Effect (collectively, the “Intellectual Property Rights”). None of, and
neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property
Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years
from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest audited
financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the
Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be
expected to not have a Material Adverse Effect. To the Knowledge of the Company, all such Intellectual Property Rights are
enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company
and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of
their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be
expected to have a Company Group Material Adverse Effect. The Company and/or its Subsidiaries has secured, by valid written
assignments from all of Company Group’s current and former consultants, independent contractors and employees who were
involved in, or who contributed to, the creation or development of any Intellectual Property Rights, unencumbered and
unrestricted exclusive ownership of each such third party’s Intangibles in their respective contributions. No current
or former employee, officer, director, consultant or independent contractor of any member of the Company Group has any right,
license, claim or interest whatsoever in or with respect to any Intellectual Property Rights.

 

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(p) Except
as set forth in the Memorandum or the SEC Reports, no member of the Company Group is a party to any collective bargaining agreement
nor does it employ any member of a union. No executive officer of any member of the Company Group has provided written notice that
such officer intends to leave the Company Group or otherwise terminate such officer’s employment with the Company Group. No executive
officer of any member of the Company Group, to the Company’s Knowledge, is in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or
agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company
Group to any material liability with respect to any of the foregoing matters. Each member of the Company Group is in compliance
with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits,
terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually
or in the aggregate, reasonably be expected to result in a Company Group Material Adverse Effect. No labor dispute with the employees
of the Company or any of its subsidiaries exists or, to the Company’s Knowledge, is threatened, and the Company has no knowledge
of any existing or imminent labor dispute by the employees of any of its principal suppliers, manufacturers, customers or contractors.

 

(q) Except
(i) as set forth in the Memorandum, (ii) may be required under state securities or Blue Sky laws, (iii) as may be required under
the Securities Act, the rules and regulations of the Commission under the Securities Act (the “Securities Act Regulations”),
the Exchange Act, the rules and regulations of the SEC under the Exchange Act (the “Exchange Act Regulations”),
the rules of Nasdaq (the “Exchange”) or (iv) will have been obtained or made on or prior to the First Closing,
no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with any court
or governmental authority or other Person on the part of any member of the Company Group is required in connection with the issuance
or sale of the Shares or the consummation of the transactions contemplated herein or in the other Transaction Documents.

 

(r) Subsequent
to the respective dates as of which information is given in the Memorandum, each of the members of the Company Group has operated
their respective businesses in the ordinary course and, except as may otherwise be set forth in the Memorandum or in the SEC Reports,
there has been no: (i) Company Group Material Adverse Effect; (ii) transaction otherwise than in the ordinary course of business
consistent with past practice; (iii) issuance of any securities (debt or equity) or any rights to acquire any such securities other
than pursuant to equity incentive plans approved by its board of directors; (iv) damage, loss or destruction, whether or not covered
by insurance, with respect to any asset or property of any members of the Company Group or (v) agreement to permit any of the foregoing.

 

(s) There is
no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the Knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court,
arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or
enforceability of any of the Transaction Documents or the Shares or (ii) could, if there were an unfavorable decision, have
or reasonably be expected to result in a Company Group Material Adverse Effect. Neither the Company nor any Subsidiary, nor
any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability
under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of
the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current
or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the
effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities
Act.

 

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(t) No
member of the Company Group is: (i) in violation of its charter documents, (ii) in violation of any statute, rule or regulation
applicable to such member, the violation of which would have or would reasonably be expected to have a Company Group Material Adverse
Effect; or (iii) in violation of any judgment, decree or order of any court or governmental body having jurisdiction over such
member of the Company Group, which violation or violations individually, or in the aggregate, could reasonably be expected to have
a Company Group Material Adverse Effect.

 

(u) Except
as set forth in the SEC Reports and Schedule 2(u) of the Schedule of Exceptions, none of the officers or directors of the
Company or any Subsidiary and, to the Company’s Knowledge, none of the employees of the Company or any Subsidiary is presently
a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from providing for the borrowing of money from or lending of money to, or otherwise requiring payments
to or from any officer, director or such employee or, to the Knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan
of the Company.

 

(v) Except
as disclosed in the Memorandum, no director, officer or manager of the Company or any Subsidiary (i) owns, directly or indirectly,
any interest in any Person which is a competitor, supplier or customer of any member of the Company Group (unless such person is
a publicly traded company), (ii) owns, directly or indirectly, in whole or in part, any property, asset or right, real, personal
or mixed, tangible or intangible (including any of the Intangibles) which is utilized by or in connection with the business of
any member of the Company Group, (iii) is a customer of, or supplier to, any member of the Company Group or (iv) directly or indirectly
has an interest in or is a party to any Material Contract pertaining or relating to any member of the Company Group. In addition,
no director, officer or employee of the Company or any Shareholder, nor, to the Company’s Knowledge, any Affiliate of any
such person is presently, directly or indirectly through his/her affiliation with any other person or entity, a party to any loan
from any member of the Company Group.

 

(w) Each of
the Company and the Subsidiaries has filed, on a timely basis, each federal, state, local and foreign tax return, report and
declarations that were required to be filed, or has requested an extension therefor and has paid all taxes and all related
assessments, charges, penalties and interest to the extent that the same have become due. There are no unpaid taxes in any
material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no
basis for any such claim. Neither the Company nor any Subsidiary has executed any waiver with respect to the statute of
limitations relating to the assessment or collection of any foreign, federal, state or local tax. To the Company’s
Knowledge, none of the Company Group’s tax returns is presently being audited by any taxing authority. No liens have
been filed and no claims are being asserted by or against any member of the Company Group with respect to any taxes (other
than liens for taxes not yet due and payable). The Company has received no notice of assessment or proposed assessment of any
taxes claimed to be owed by it or any other Person on its behalf. Neither the Company nor any Subsidiary is a party to any
tax sharing or tax indemnity agreement or any other agreement of a similar nature that remains in effect. The Company and the
Subsidiaries have complied in all material respects with all applicable legal requirements relating to the payment and
withholding of taxes and, within the time and in the manner prescribed by law, has withheld from wages, fees and other
payments and paid over to the proper governmental or regulatory authorities all amounts required.

 

    9

    

    

 

(x) The
Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in
such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but
not limited to, directors and officers insurance coverage in amounts prudent for their public company status. Neither the Company
nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant
increase in cost.

 

(y) The
Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to pollution or protection
of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including
laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous
substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well
as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice letters,
orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental Laws”);
(ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their
respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval where
in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate,
a Company Group Material Adverse Effect.

 

(z) The
Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and marketable
title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case
free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens for the
payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the
payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company
and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries
are in compliance.

 

(aa) Each
stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance with the terms of
the Company’s stock option plan and (ii) with an exercise price at least equal to the fair market value of the Common Stock
on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the Company’s
stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or
practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release
or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

 

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(bb) Each
member of the Company Group and any “employee benefit plan” (as defined under the Employee Retirement Income Security
Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”))
established or maintained by the Company, the Subsidiaries or their “ERISA Affiliates” (as defined below) are in compliance
in all material respects with ERISA. “ERISA Affiliate” means, with respect to the Company or a Subsidiary, any
member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as amended,
and the regulations and published interpretations thereunder (the “Code”) of which the Company or such Subsidiary
is a member. Each “employee benefit plan” established or maintained by the Company, its Subsidiaries or any of their
ERISA Affiliates that is intended to be qualified under Section 401(a) of the Code is so qualified and nothing has occurred, whether
by action or failure to act, which would cause the loss of such qualification.

 

(cc) Neither
the Company, any Subsidiary, nor, to the Company’s Knowledge, any director, officer, agent, employee or other Person acting
on behalf of any of such entities has, in the course of its actions for, or on behalf of, the Company or any Subsidiary has taken
any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977,
as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making use
of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay
or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything
of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA and the Company, its Subsidiaries and, to the
Company’s Knowledge, its and their respective Affiliates have conducted their businesses in compliance with the FCPA and
have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure,
continued compliance therewith.

 

(dd) The
operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial
record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable
money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”),
and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving
the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary,
threatened.

 

(ee) Neither
the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer, agent, employee or Affiliate of the Company
or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury
Department (“OFAC”).

 

(ff) Except as disclosed
to the Placement Agent in writing, no member of the Company Group is obligated to pay, and has not obligated the Placement Agent
to pay, a finder’s or origination fee in connection with the Offering (other than to the Placement Agent), and the Company
hereby agrees to indemnify the Placement Agent from any such claim made by any other person, as more fully set forth in Section
8 hereof. Except as disclosed to the Placement Agent, the Company has not offered for sale or solicited offers to purchase the
Shares except for negotiations with the Placement Agent.

 

    11

    

    

 

(gg) Except
as disclosed in the Memorandum or the SEC Reports, the Company and the Subsidiaries are in compliance with any and all
applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all
applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof and as of each
Closing. Except as disclosed in the SEC Reports, the Company and the Subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements
in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and
the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that
information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The
Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company
and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act
(such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under
the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures
based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal
control over financial reporting (as such term is defined in the Exchange Act) that have materially affected, or is
reasonably likely to materially affect, the internal control over financial reporting of the Company and its
Subsidiaries.

 

(hh) Each
of the Company and the Subsidiaries is insured by recognized, financially sound and reputable institutions with policies in such
amounts and with such deductibles and covering such risks as are prudent and customary in the business in which it is engaged,
including directors and officers liability.

 

(ii) The
Company’s Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is listed on the Exchange; the Company
has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange
Act or delisting the Common Stock from the Exchange; except as set forth in the Memorandum or the SEC Reports, the Company has
not received any notice that it is out of compliance with the listing or maintenance requirements of the Exchange and the Company
is, and will continue to be, in material compliance with all such listing and maintenance requirements; and the Company has not
received any notification that the SEC or the Exchange is contemplating terminating the registration of the Common Stock under
the Exchange Act or delisting the Common Stock from the Exchange.

 

(jj) The
Company, as well as all Company Related Persons (as defined below) are not subject to any of the disqualifications set forth in
Rule 506(d) of Regulation D (each a “Disqualification Event”). The Company has exercised reasonable care to
determine whether any Company Related Person is subject to a Disqualification Event. The Memorandum contains a true and complete
description of the matters required to be disclosed with respect to the Company and the Company Related Persons pursuant to the
disclosure requirements of Rule 506(e) of Regulation D, to the extent applicable. As used herein, “Company Related Persons”
means any predecessor of the Company, any affiliated Company, any director, executive officer, other officer of the Company participating
in the Offering, any general partner or managing member of the Company, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, and any “promoter” (as defined in Rule
405 under the Act) connected with the Company in any capacity. The Company agrees to promptly notify the Placement Agent in writing
of (i) any Disqualification Event relating to any Company Related Person and (ii) any event that would, with the passage of time,
become a Disqualification Event relating to any Company Related Person.

 

(kk) No
representation or warranty by the Company contained in Section 2 of this Agreement and no statement by the Company contained in
the Schedule of Exceptions to this Agreement contains any untrue statement of a material fact, or omits to state a material fact
necessary to make the statements contained therein, in the light of the circumstances in which they are made, not misleading.

 

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(ll) Until
the earlier of (i) the Termination Date and (ii) the Final Closing, the Company will not issue any press release, grant any interview,
or otherwise communicate with the media in any manner whatsoever with respect to the Offering without the Placement Agent’s
prior consent, which consent will not unreasonably be withheld, delayed or conditioned.

 

2A. Representations,
Warranties and Covenants of Placement Agent. The Placement Agent represents and warrants to Company that the following representations
and warranties are true and correct as of the date of this Agreement:

 

(a) Aegis
is a corporation duly organized, validly existing and in good standing under the laws of the State of New York and has all requisite
corporate power and authority to enter into this Agreement and to carry out and perform its obligations under the terms of this
Agreement.

 

(b) This
Agreement has been duly authorized, executed and delivered by the Placement Agent, and upon due execution and delivery by the Company,
this Agreement will be a valid and binding agreement of the Placement Agent enforceable against it in accordance with its terms,
except as may be limited by principles of public policy and, as to enforceability, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws relating to or affecting creditor’s rights from time to time in effect and subject
to general equity principles.

 

(c) The
Placement Agent is a member in good standing of FINRA and is registered as a broker-dealer under the Exchange Act, and under the
securities acts of each state into which it is making offers or sales of the Shares. The Placement Agent is in compliance with
all applicable rules and regulations of the SEC and FINRA, except to the extent that such noncompliance would not have a material
adverse effect on the transactions contemplated hereby. None of the Placement Agent or its affiliates, or any person acting on
behalf of the foregoing (other than Company or its affiliates or any person acting on its or their behalf, in respect of which
no representation is made) has taken nor will it take any action that conflicts with the conditions and requirements of, or that
would make unavailable with respect to the Offering, the exemption(s) from registration available pursuant to Rule 506 of Regulation
D or Section 4(a)(2) of the Act, or knows of any reason why any such exemption would be otherwise unavailable to it.

 

(d) None
of the execution and delivery of or performance by the Placement Agent under this Agreement or any other agreement or document
entered into by the Placement Agent in connection herewith or the consummation of the transactions herein or therein contemplated
conflicts with or violates, any agreement or other instrument to which the Placement Agent is a party or by which its assets may
be bound, or any term of its certificate of incorporation or by-laws, or any license, permit, judgment, decree, order, statute,
rule or regulation applicable to Placement Agent or any of its assets, except in each case as would not have a material adverse
effect on the transactions contemplated hereby.

 

(e) Neither
Placement Agent nor any Placement Agent Related Persons (as defined below) are subject to any Disqualification Event.
Placement Agent has exercised reasonable care to determine whether any Placement Agent Related Person is subject to a
Disqualification Event. The Memorandum contains a true and complete description of the matters required to be disclosed with
respect to Placement Agent and Placement Agent Related Persons pursuant to the disclosure requirements of Rule 506(e) of
Regulation D, to the extent applicable. As used herein, “Placement Agent Related Persons” means any
director, general partner, managing member, executive officer, or other officer of Placement Agent participating in the
Offering. Placement Agent agrees to promptly notify the Company in writing of (i) any Disqualification Event relating to
any Placement Agent Related Person and (ii) any event that would, with the passage of time, become a Disqualification Event
relating to any Placement Agent Related Person.

 

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3.
Placement Agent Compensation.

 

(a) In
connection with the Offering, the Company will pay at each Closing (as defined in Section 4(e) below) a cash fee (the “Agent
Cash Fee”) to the Placement Agent equal to 10% of the gross proceeds from the sale of the Shares consummated at such
Closing.

 

(b) As
additional compensation, at or within ten (10) business days following the Final Closing, the Company will issue to the Placement
Agent (or its designee(s)) for nominal consideration, five-year warrants (the “Agent Warrants”) to purchase
such number of shares of the Company’s Series C Preferred Stock as is equal to 10% of the shares of Series C Preferred Stock
sold in the Offering (and in the particular series sold at each Closing) at an exercise price equal to $1,000 per share (the Agent
Cash Fee and Agent Warrants are sometimes referred to herein collectively as “Agent Compensation”). The Agent
Warrants will be exercisable on a “cashless” basis and for the five year period following issuance. The dividends on
the Series C Preferred shall commence to accrue to the holder upon issuance of the Agent Warrants and shall continue to accrue
as long as such warrants or underlying Series C Preferred is held, and subject to payment upon conversion events as set forth in
the Series C Preferred. The Agent Warrants will be in such authorized denominations and will be registered in such names as the
Placement Agent shall request in an instruction letter (the “Agent Warrant Instruction Letter”) to be delivered
to the Company promptly following the Final Closing and the Company shall deliver such Agent Warrants to the Placement Agent within
ten (10) business days following the delivery of the Agent Warrant Instruction Letter.

 

(c) At
each Closing, the Company will pay Aegis a non-accountable expense allowance equal to 3% of the aggregate purchase price of the
Shares sold at such Closing (the “Agent Expense Allowance”). The Agent Expense Allowance payable at the First
Closing shall be reduced by the $25,000 advance paid to Aegis previously (the “Legal Advance”). The Placement
Agent will not bear any of Company’s legal, accounting, printing or other expenses in connection with any transaction contemplated
hereby. Aegis will pay for its own expenses, including all of its legal fees and expenses, from the Agent Expense Allowance.

 

(d) The
Company shall also pay and issue to the Placement Agent the Agent Compensation calculated according to the percentages set
forth in Sections 3(a) and (b) of this Agreement, if any person or entity contacted by the Placement Agent and provided with
a Memorandum during the Offering Period and with whom the Placement Agent has discussions regarding a potential investment in
the Offering, invests in the Company (other than through open or public market purchases or securities purchased in any
underwritten public offering) and irrespective of whether such potential investor purchased Shares in the Offering (the
“Tail Investors”) at any time prior to the earlier of the date that is six (6) months after the
Termination Date or the Final Closing (“Tail Period”), whichever is applicable. The names of Tail
Investors shall be provided in writing by the Placement Agent to the Company upon written request following the Termination
Date or the Final Closing, as the case may be (the “Tail Investor List”). The Company acknowledges and
agrees that the Tail Investor List is proprietary to the Placement Agent, shall be maintained in strict confidence by the
Company and those persons/entities on such list shall not be contacted by the Company without the Placement Agent’s
prior written consent; provided, however, that such restrictions shall not apply to ordinary
course shareholder communications by the Company to its shareholders, including those Tail Investors that are shareholders of
the Company. In the event the Placement Agent exercises its right of first refusal with respect to an offering pursuant to
the provisions of Section 3(e) below, the specific compensation terms to the Placement Agent that are negotiated in such
offering shall govern and the provisions of this Section 3(d) will not be operative with respect to such offering.

 

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(e) Effective
upon the First Closing, the Company hereby grants to Aegis, for a period of six (6) months following the Final Closing (the “ROFR
Term”), the irrevocable preferential right of first refusal to act as lead or co-placement agent for any proposed private
placement of the Company’s securities (equity or debt) that is proposed to be consummated with the assistance of a registered
broker dealer. In that regard, it is understood that if the Company determines to pursue such a financing during the ROFR Term
and wishes to engage a placement agent to assist in connection with such offering, the Company shall promptly provide the Placement
Agent with a written notice of such intention and statement of terms (the “Notice”). If, within ten (10) business
days of the receipt of the Notice, the Placement Agent does not accept in writing such offer to act as lead or co-placement agent
with respect to such offering upon the terms proposed, then the Company shall be entitled to engage a placement agent other than
Aegis; provided that the terms of the compensation to be paid to such other placement agent or underwriter are not materially less
favorable to the Company than the terms included in the Notice. The Placement Agent’s failure to exercise these preferential
rights in any situation shall not affect its preferential rights to any subsequent offering during the ROFR Term. The Company represents
and warrants that no other person has any right to participate in any offer, sale or distribution of the Company’s securities
to which Aegis’ preferential rights shall apply.

 

(f) Upon
the First Closing, the Company will enter into a two-year non-exclusive financial advisory agreement with Placement Agent (“FA
Agreement”) for the purpose of providing advice and making introductions related to mergers, acquisitions, joint ventures,
licensing agreements, and business development opportunities from potential corporate strategic partners (any of the foregoing
, a “Transaction”). Pursuant to this FA Agreement, if the Company enters into any of such Transactions with
a party (or affiliate of such party) that was introduced to it by Placement Agent during the term of such agreement or within six
(6) months thereafter, the Company will pay or cause to be paid to Aegis a fee payable at the closing of a Transaction not to exceed
5% of the consideration paid in a Transaction to be specified in the FA Agreement.

 

(g) For
introductory and other services provided by SternAegis in connection with the Merger described in the S-4 Registration Statement
(as defined below), the Company shall issue to SternAegis and its designees, at the closing of the Merger, the Success Fee Shares
as defined in the S-4 Registration Statement.

 

4.
Subscription and Closing Procedures.

 

(a) The
Company shall cause to be delivered to the Placement Agent copies of the Memorandum, consents to the use of such copies for the
purposes permitted by the Act and applicable securities laws and in accordance with the terms and conditions of this Agreement,
and hereby authorizes Placement Agent and its agents and employees to use the Memorandum in connection with the offering of the
Shares until the earlier of (i) the Termination Date or (ii) the Final Closing. No person or entity is or will be authorized to
give any information or make any representations other than those contained in the Memorandum or to use any offering materials
other than those contained in the Memorandum in connection with the sale of the Shares.

 

(b) During
the Offering Period, the Company shall make available to the Placement Agent and its representatives such information as may be
reasonably requested in making a reasonable investigation of the Company Group and their respective affairs and shall provide access
to such employees during normal business hours as shall be reasonably requested by the Placement Agent.

 

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(c) Each prospective
purchaser will be required to complete and execute signature pages to the Subscription Agreement (the “Subscription Documents”),
which will be forwarded or delivered to the Placement Agent at the Placement Agent’s offices at the address set forth in
Section 12 hereof, together with the subscriber’s wire transfer in the full amount of the purchase price for the number of
Shares desired to be purchased, subject to the Escrow Agent’s (as defined below) right to accept a check in lieu of a wire
transfer.

 

(d) All funds for
subscriptions received by the Placement Agent from the Offering (not otherwise wired directly to the Escrow Agent) will be promptly
forwarded by the Placement Agent and deposited into a non-interest bearing escrow account (the “Escrow Account”)
established for such purpose with Signature Bank, New York, New York (the “Escrow Agent”). All such funds for
subscriptions will be held in the Escrow Account pursuant to the terms of an escrow agreement among the Company, the Placement
Agent and the Escrow Agent (the “Escrow Agreement”). The Company will pay all fees related to the establishment
and maintenance of the Escrow Account and comply with procedures required by the Escrow Agent. The Company will either accept or
reject, for any or no reason, the Subscription Documents in a timely fashion and at each Closing, the Company will countersign
the Subscription Documents and provide duplicate copies of such documents to the Placement Agent for distribution to the subscribers.
The Placement Agent, on the Company’s behalf, will promptly return to subscribers incomplete, improperly completed, improperly
executed and rejected subscriptions.

 

(e) If subscriptions
for at least the Minimum Offering Amount have been accepted prior to the Termination Date, the funds therefor have been collected
by the Escrow Agent and all of the conditions set forth elsewhere in this Agreement are fulfilled, the First Closing shall be held
promptly with respect to Shares sold. Thereafter remaining Shares will continue to be offered and sold until the Termination Date
and additional closings (each a “Closing”) may from time to time be conducted at times mutually agreed to by
the Placement Agent and the Company with respect to additional Shares sold, with the final closing (“Final Closing”)
to occur within ten (10) days after the earlier of the Termination Date and the date on which the all Shares has been fully subscribed
for. Delivery of payment for the accepted subscriptions for Shares from funds held in the Escrow Account will be made at each Closing
against delivery of the Shares by the Company. The Shares will be issued to the investors in the Offering in book entry format
at each Closing.

 

(f) If Subscription
Documents for at least the Minimum Offering Amount have not been received and accepted by the Company on or before the Termination
Date for any reason, the Offering will be terminated, no Shares will be sold, and pursuant to the terms of the Escrow Agreement,
the Escrow Agent will, at the Company’s and the Placement Agent’s written direction, cause all monies received from
subscribers for the Shares to be promptly returned to such subscribers without interest, penalty, expense or deduction and the
Placement Agent and Company will promptly cooperate to accomplish the foregoing, including providing Escrow Agent with any requested
written instructions in such regard.

 

5. Further Covenants.
The Company hereby covenants and agrees that:

 

(a) Except upon
prior written notice to the Placement Agent, the Company shall not, at any time prior to the Final Closing, knowingly take any
action which would cause any of the representations and warranties made by it in this Agreement not to be complete and correct
in all material respects on and as of each Closing Date with the same force and effect as if such representations and warranties
had been made on and as of each such date (except to the extent any representation or warranty relates to an earlier date).

 

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(b) If, at any time
prior to the Final Closing, any event shall occur that causes a Company Group Material Adverse Effect or otherwise which as a result
it becomes necessary to amend or supplement the Memorandum so that the representations and warranties herein remain true and correct
in all material respects, or in case it shall be necessary to amend or supplement the Memorandum to comply with Regulation D or
any other applicable securities laws or regulations, the Company will promptly notify the Placement Agent and shall, at its sole
cost, prepare and furnish to the Placement Agent copies of appropriate amendments and/or supplements in such quantities as the
Placement Agent may reasonably request for delivery by the Placement Agent to potential subscribers. The Company will not at any
time before the Final Closing prepare or use any amendment or supplement to the Memorandum of which the Placement Agent will not
previously have been advised and furnished with a copy, or which is not in compliance in all material respects with the Act and
other applicable securities laws. As soon as the Company is advised thereof, the Company will advise the Placement Agent and its
counsel, and confirm the advice in writing, of any order preventing or suspending the use of the Memorandum, or the suspension
of any exemption for such qualification or registration thereof for offering in any jurisdiction, or of the institution or threatened
institution of any proceedings for any of such purposes, and the Company will use its reasonable best efforts to prevent the issuance
of any such order and, if issued, to obtain as soon as reasonably possible the lifting thereof.

 

(c) The Company
shall comply with the Act, the Exchange Act and the rules and regulations thereunder, all applicable state securities laws and
the rules and regulations thereunder in the states in which the Company’s blue sky counsel has advised the Placement Agent
that the Shares are qualified or registered for sale or exempt from such qualification or registration, so as to permit the continuance
of the sales of the Shares, and will file or cause to be filed with the SEC, and shall promptly thereafter forward or cause to
be forwarded to the Placement Agent, any and all reports on Form D as are required.

 

(d) The Company
shall forward to the Placement Agent all correspondence from and to Nasdaq regarding the implementation of the reverse stock split
and other matters with respect to regaining compliance with the minimum bid requirement and other criteria mandated for continued
listing of its Common Stock on the Exchange.

 

(e) The Company
shall use its best efforts to qualify the Shares for sale under the securities laws of such jurisdictions in the United States
as may be mutually agreed to by the Company and the Placement Agent, and Company will make or cause to be made such applications
and furnish information as may be required for such purposes, provided that Company will not be required to qualify as a foreign
corporation in any jurisdiction or execute a general consent to service of process. The Company will, from time to time, prepare
and file such statements and reports as are or may be required to continue such qualifications in effect for so long a period as
the Placement Agent may reasonably request with respect to the Offering.

 

(f) The Company
shall place a legend on the certificates representing the Shares and the Agent Warrants that the securities evidenced thereby have
not been registered under the Act or applicable state securities laws, setting forth or referring to the applicable restrictions
on transferability and sale of such securities under the Act and applicable state laws.

 

(g) The Company
shall apply the net proceeds from the sale of the Shares for the purposes substantially as described in the Memorandum. Except
as set forth in the Memorandum, the Company shall not use any of the net proceeds of the Offering to repay indebtedness to officers
(other than accrued salaries incurred in the ordinary course of business), directors or shareholders of the Company without the
prior written consent of the Placement Agent.

 

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(h) During the Offering
Period, the Company shall afford each prospective purchaser of Shares the opportunity to ask questions of and receive answers from
an officer of the Company concerning the terms and conditions of the Offering and the opportunity to obtain such other additional
information necessary to verify the accuracy of the Memorandum to the extent the Company possesses such information or can acquire
it without unreasonable expense. In addition, to the extent that any purchaser of Shares has inquiries concerning any of the business
or operations of any member of the Company Group, the Company shall use reasonable best efforts to ensure that officers of such
members are made available to respond to such inquiries.

 

(i) Except upon
obtaining the prior written consent of Aegis, which consent shall not be unreasonably withheld, the Company shall not, at any time
prior to the earlier of the Final Closing or the Termination Date, except as contemplated by the Memorandum (i) engage in or commit
to engage in any transaction outside the ordinary course of business, (ii) issue, agree to issue or set aside for issuance any
securities (debt or equity) or any rights to acquire any such securities; provided, that the Company shall be permitted
to issue stock options and/or restricted stock to officers, advisors, directors and employees of the Company pursuant to its existing
equity incentive plan as described in the SEC Reports, (ii) incur, outside of the ordinary course of business, any material indebtedness,
(iii) dispose of any material assets, (iv) make any acquisition (except to the extent specifically referenced in the Memorandum)
or (v) change its business or operations.

 

(j) The Company
shall pay all reasonable expenses incurred in connection with the preparation and printing of all necessary offering documents
and instruments related to the Offering and the issuance of the Shares and the Agent Warrants and will also pay its own expenses
for accounting fees, legal fees and other costs involved with the Offering. All blue sky filings related to this Offering and Federal
Form D filing shall be prepared by the Company’s counsel, at the Company’s expense, with copies of all filings to be
promptly forwarded to the Placement Agent. Further, as promptly as practicable after the Final Closing, the Company shall prepare,
at its own expense, velobound “closing binders” relating to the Offering and will distribute one such binder to each
of the Placement Agent and its counsel.

 

(k) Until the earlier
of the Termination Date or the Final Closing, the Company will not, nor will any person or entity acting on Company’s behalf,
negotiate with any other placement agent or underwriter with respect to a private or public offering of such entity’s debt
or equity securities. Neither the Company nor anyone acting on the Company’s behalf will, until the earlier of the Termination
Date or the Final Closing, without the prior written consent of the Placement Agent, offer for sale to, or solicit offers to subscribe
for any securities of the Company from, or otherwise approach or negotiate in respect thereof with, any other person.

 

5A. Placement Agent
Further Covenants. The Placement Agent shall not, at any time during the Offering Period, knowingly take any action which would
cause any of the representations and warranties made by it in this Agreement not to be complete and correct in all material respects
on and as of each Closing Date with the same force and effect as if such representations and warranties had been made on and as
of each such date (except to the extent any representation or warranty relates to an earlier date). Offers and sales of the Shares
by the Placement Agent will be made in accordance with this Agreement and in compliance with the provisions of Regulation D, Regulation
S, if applicable, and the Securities Act.

 

6. Conditions
of Placement Agent’s Obligations. The obligations of the Placement Agent hereunder to effect a Closing are subject to
the fulfillment, at or before each Closing, of the following additional conditions:

 

(a) Each
of the representations and warranties made in this Agreement by the Company qualified as to materiality shall be true and correct
at all times prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates
to an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and the representations
and warranties made by the Company not qualified as to materiality shall be true and correct in all material respects at all times
prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates to an earlier date,
in which case such representation or warranty shall be true and correct in all material respects as of such earlier date.

 

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(b) The Company
shall have performed and complied in all material respects with all agreements, covenants and conditions required to be performed
and complied with by the Company at or before the Closing.

 

(c) The Memorandum
shall not, and as of the date of any amendment or supplement thereto will not, include any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

 

(d) The Company
shall have obtained all consents, waivers and approvals required to be obtained by such parties in connection with the consummation
of the transactions contemplated hereby.

 

(e) No order suspending
the use of the Memorandum or enjoining the Offering or sale of the Shares shall have been issued, and no proceedings for that purpose
or a similar purpose shall have been initiated or pending, or, to Company’s knowledge, threatened.

 

(f) The Placement
Agent shall have received a certificate of an officer of the Company, dated as of the date of such Closing, certifying, as to the
fulfillment of the conditions set forth in subparagraphs (a), (b), (c), (d) and (e) above.

 

(g) Prior to the
First Closing, the Company shall have delivered to the Placement Agent: (i) a certified charter document and good standing certificate
for the Company and each Subsidiary, each dated as of a date within ten (10) days prior to the First Closing from the secretary
of state of its jurisdiction of incorporation or formation, as applicable, (ii) resolutions of the Company’s board of directors
approving the Merger, the reverse stock split, this Agreement and the transactions and agreements contemplated by this Agreement,
certified by the Chief Executive Officer of the Company and (iii) resolutions of the Company’s stockholders approving the
proposals set forth in the S-4 Registration Statement (as defined below), certified by the Chief Executive Officer of the Company..

 

(h) At each Closing, the Company shall
pay and/or issue to the Placement Agent the Agent Cash Fee and Agent Expense Allowance earned in such Closing.

 

(i) At each Closing,
the Company shall deliver to the Placement Agent signed opinions of Lowenstein Sandler LLP and/or Fennemore Craig, P.C., counsels
to the Company, dated as of each such Closing Date, in the forms reasonably acceptable to the Placement Agent. Such opinions shall
contain, among other items, opinions on matters relating to organization and good standing, corporate power and authority and exemption
of the Offering from the registration requirements of the Securities Act.

 

(j) Prior to the
First Closing, the Company shall receive requisite shareholder approval for the proposals set forth in the Company’s Registration
Statement on Form S-4 which was filed with the SEC on June 16, 2020 (the “S-4 Registration Statement”) and the
merger transaction with Adgero Biopharmaceuticals described therein (the “Merger”) shall have been consummated.

 

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(k) Concurrent with the First Closing,
the Success Fee Shares as defined in the S-4 Registration Statement shall be issued and delivered to SternAegis Ventures (or its
designees).

 

(l) Prior to the
First Closing, the Company shall receive Nasdaq approval with respect to the reverse stock split contemplated in the S-4 Registration
Statement and such reverse split shall be effectuated by all necessary corporate action. With respect to said reverse stock split,
the Company shall consult with the Placement Agent on the specific reverse stock split ratio prior to the time said reverse stock
split is effectuated.

 

(m) Prior to the
First Closing, the Company shall provide evidence of the filing of the Certificate of Designation on the Series C Preferred Stock
with the State of Nevada. Prior to each subsequent Closing, the Company shall provide evidence of the filing of the Certificate
of Designation on the Series C Preferred Stock with the State of Nevada to the extent required.

 

(n) All proceedings
taken at or prior to any Closing in connection with the authorization, issuance and sale of the Shares will be reasonably satisfactory
in form and substance to the Placement Agent and its counsel, and such counsel shall have been furnished with all such documents
and certificates as it may reasonably request upon reasonable prior notice in connection with the transactions contemplated hereby.

 

(o) At each Closing,
the Company shall provide irrevocable instructions to its transfer agent to issue into treasury shares, and reserve for future
and automatic issuance upon the requested conversion of the Shares by any holder, such number of shares of Common Stock issuable
upon the conversion of the Shares sold in such Closing.

 

7. Conditions
of Company’s Obligations. The obligations of the Company hereunder to effect a Closing are subject to the fulfillment,
at or before such Closing, of the following additional conditions or subject to the waiver of such condition or conditions by the
Company:

 

(a) Each of the
representations and warranties made in this Agreement by the Placement Agent qualified as to materiality shall be true and correct
at all times prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates to an
earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and the representations
and warranties made by the Placement Agent not qualified as to materiality shall be true and correct in all material respects at
all times prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates to an earlier
date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date.

 

(b) The Placement
Agent shall have performed and complied in all material respects with all agreements, covenants and conditions required to be performed
and complied with by it at or before the Closing.

 

(c) The Company
shall have received a certificate of an officer of the Placement Agent, dated as of the Closing Date, certifying, as to the fulfillment
of the conditions set forth in subparagraphs (a) and (b) above.

 

(d) No order suspending
the use of the Memorandum or enjoining the Offering or sale of the Shares shall have been issued, and no proceedings for that purpose
or a similar purpose shall have been initiated or pending, or, to the Company’s knowledge, be contemplated or threatened.

 

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8. Indemnification.

 

(a) The Company
will: (i) indemnify and hold harmless the Placement Agent, its officers, directors, partners, employees, agents (including subagents
and selected dealers) and each person, if any, who controls the Placement Agent within the meaning of the Section 15 of the Act
or Section 20(a) of the Exchange Act (each an “Indemnitee”) against, and pay or reimburse each Indemnitee for,
any and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedings or investigations in respect
thereof), joint or several (which will, for all purposes of this Agreement, include, but not be limited to, all reasonable costs
of defense and investigation and all reasonable attorneys’ fees, including appeals), to which any Indemnitee may become subject
under the Act or otherwise, in connection with the offer and sale of the Shares, insofar as such losses, claims, damages, liabilities
or expenses arise out of or relate to a breach of any representation, warranty or covenant made by the Company herein, regardless
of whether such losses, claims, damages, liabilities or expenses shall result from any claim by any Indemnitee or by any third
party; and (ii) reimburse each Indemnitee for any legal or other expenses reasonably incurred in connection with investigating
or defending against any such loss, claim, action, proceeding or investigation; provided, however,
that the Company will not be liable in any such case to the extent that any such claim, damage or liability is finally judicially
determined to have resulted primarily and directly from (A) an untrue statement or alleged untrue statement of a material fact
made in the Memorandum, or an omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading, made solely in reliance
upon and in conformity with written information furnished to the Company by the Placement Agent specifically for use in the Memorandum,
(B) any violations by the Placement Agent of the Act, state securities laws or any rules or regulations of FINRA, which does not
result from a violation thereof by the Company or any of its affiliates, or (C) the Placement Agent’s willful misconduct
or gross negligence. In addition to the foregoing agreement to indemnify and reimburse, the Company will indemnify and hold harmless
each Indemnitee against any and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedings or investigations
in respect thereof), joint or several (which shall, for all purposes of this Agreement, include, but not be limited to, all reasonable
costs of defense and investigation and all reasonable attorneys’ fees, including appeals) to which any Indemnitee may become
subject insofar as such costs, expenses, losses, claims, damages or liabilities arise out of or are based upon the claim of any
person or entity that he or it is entitled to broker’s or finder’s fees from any Indemnitee in connection with the
Offering, other than fees due to the Placement Agent. The foregoing indemnity agreements will be in addition to any liability the
Company may otherwise have.

 

(b) Aegis
will indemnify and hold harmless the Company and its officers, directors, and each person, if any, who controls such entity within
the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act against, and pay or reimburse any such person for, any
and all losses, claims, damages, liabilities or expenses whatsoever (or actions, proceedings or investigations in respect thereof)
to which the Company or any such person may become subject under the Act or otherwise, whether such losses, claims, damages, liabilities
or expenses shall result from any claim of the Company or by any third party, but only to the extent that such losses, claims,
damages or liabilities are finally judicially determined to have resulted primarily from or as a result of (i) any untrue statement
or alleged untrue statement of any material fact contained in the Memorandum made in reliance upon and in conformity with information
contained in the Memorandum relating to the Placement Agent, or an omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading, in either case, if made or omitted in reliance upon and in conformity with written information furnished
to the Company by the Placement Agent, specifically for use in the Memorandum or (ii) any violations by the Placement Agent of
the Act or state securities laws which does not result from a violation thereof by the Issuer, the Operating Company or any of
their respective affiliates, the Placement Agent’s willful misconduct or gross negligence. The Placement Agent will reimburse
the Company, the Company and any such person for any legal or other expenses reasonably incurred in connection with investigating
or defending against any such loss, claim, damage, liability or action, proceeding or investigation to which such indemnity obligation
applies. The foregoing indemnity agreements are in addition to any liability which the Placement Agent may otherwise have. Notwithstanding
the foregoing, in no event shall the Placement Agent’s indemnification obligation hereunder exceed the aggregate amount of
the Agent Cash Fee actually received by the Placement Agent hereunder.

 

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(c) Promptly after
receipt by an indemnified party under this Section 8 of notice of the commencement of any action, claim, proceeding or investigation
(the “Action”), such indemnified party, if a claim in respect thereof is to be made against the indemnifying
party under this Section 8, will notify the indemnifying party of the commencement thereof, but the omission to so notify the indemnifying
party will not relieve it from any liability that it may have to any indemnified party under this Section 8 unless the indemnifying
party has been substantially prejudiced by such omission. The indemnifying party will be entitled to participate in and, to the
extent that it may wish, jointly with any other indemnifying party, to assume the defense thereof subject to the provisions herein
stated, with counsel reasonably satisfactory to such indemnified party. The indemnified party will have the right to employ separate
counsel in any such Action and to participate in the defense thereof, but the fees and expenses of such counsel will not be at
the expense of the indemnifying party if the indemnifying party has assumed the defense of the Action with counsel reasonably satisfactory
to the indemnified party, provided, however, that if the indemnified party shall be requested by the
indemnifying party to participate in the defense thereof or shall have concluded in good faith and specifically notified the indemnifying
party either that there may be specific defenses available to it that are different from or additional to those available to the
indemnifying party or that such Action involves or could have a material adverse effect upon it with respect to matters beyond
the scope of the indemnity agreements contained in this Agreement, then the counsel representing it, to the extent made necessary
by such defenses, shall have the right to direct such defenses of such Action on its behalf and in such case the reasonable fees
and expenses of such counsel in connection with any such participation or defenses shall be paid by the indemnifying party. No
settlement of any Action against an indemnified party will be made without the consent of the indemnifying party and the indemnified
party, which consent shall not be unreasonably withheld, delayed or conditioned in light of all factors of importance to such party,
and no indemnifying party shall be liable to indemnify any person for any settlement of any such claim effected without such indemnifying
party’s consent.

 

9. Contribution.
To provide for just and equitable contribution, if: (i) an indemnified party makes a claim for indemnification pursuant to Section
8 hereof and it is finally determined, by a judgment, order or decree not subject to further appeal that such claims for indemnification
may not be enforced, even though this Agreement expressly provides for indemnification in such case; or (ii) any indemnified or
indemnifying party seeks contribution under the Act, the Exchange Act, or otherwise, then each indemnifying party shall contribute
to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative
benefits but also the relative fault of the Company on the one hand and the Placement Agent on the other in connection with the
statements or omissions which resulted in such losses, claims, damages, liabilities or expenses (or actions in respect thereof),
as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Placement
Agent on the other shall be deemed to be in the same proportion as the total net proceeds from the Offering (before deducting expenses)
received by the Company bear to the total Agent Cash Fees received by the Placement Agent. The relative fault, in the case of an
untrue statement, alleged untrue statement, omission or alleged omission will be determined by, among other things, whether such
statement, alleged statement, omission or alleged omission relates to information supplied by the Company or by the Placement Agent,
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement,
alleged statement, omission or alleged omission. The Company and the Placement Agent agree that it would be unjust and inequitable
if the respective obligations of the Company and the Placement Agent for contribution were determined by prorata
allocation of the aggregate losses, liabilities, claims, damages and expenses or by any other method or allocation that does
not reflect the equitable considerations referred to in this Section 9. No person guilty of a fraudulent misrepresentation (within
the meaning of Section 10(f) of the Act) will be entitled to contribution from any person who is not guilty of such fraudulent
misrepresentation. For purposes of this Section 9, each person, if any, who controls the Placement Agent within the meaning of
the Act will have the same rights to contribution as the Placement Agent, and each person, if any, who controls the Company within
the meaning of the Act will have the same rights to contribution as the Company, subject in each case to the provisions of this
Section 9. Anything in this Section 9 to the contrary notwithstanding, no party will be liable for contribution with respect to
the settlement of any claim or action effected without its written consent. This Section 9 is intended to supersede, to the extent
permitted by law, any right to contribution under the Act, the Exchange Act or otherwise available.

 

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10. Termination.

 

(a) The Offering
may be terminated by the Placement Agent at any time prior to the expiration of the Offering Period in the event that: (i) any
of the representations, warranties or covenants of the Company contained herein or in the Memorandum shall prove to have been false
or misleading in any material respect when actually made; (ii) the Company shall have failed to perform any of its material obligations
hereunder or under any other Transaction Documents; (iii) there shall occur any event that could reasonably be expected to result
in a Company Material Adverse Effect or (iv) the Placement Agent determines that it is reasonably likely that any of the conditions
to Closing set forth herein will not, or cannot, be satisfied, including without limitation, the Company’s inability to close
the Merger, due to its failure to obtain the requisite shareholder approval or any other reason. In the event of any such termination
by the Placement Agent pursuant to the above, the Placement Agent shall be entitled to retain any Agent Compensation and Agent
Expense Allowance already earned (if any, at such point in time) and receive from the Company, within five (5) business days of
the Termination Date, in addition to other rights and remedies it may have hereunder, at law or otherwise, an amount equal to (x
) the sum of $75,000 (but only if such termination occurs prior to the First Closing (the “PA Termination Amount”)
and the Placement Agent shall retain the Legal Advance previously paid and shall not be entitled to any further reimbursement of
its actual out-of-pocket expenses related to the Offering. The provisions of Sections 3(d) and 3(e) shall survive in full force
and effect upon any termination under this Section 10(a).

 

(b) This Offering
may be terminated by the Company at any time prior to the expiration of the Offering Period on account of the Placement Agent’s
fraud, willful misconduct or gross negligence. In the event of any such termination pursuant to this Section 10(b), the Placement
Agent shall not be entitled to any further compensation pursuant to these termination provisions.

 

(c) In
the event the Company unilaterally decides for any reason (other than pursuant to Section 10(b) above or Section 10(d) below) to
terminate the Offering at any time prior to the earlier of the First Closing or the Termination Date (the “Company Unilateral
Termination”), the Placement Agent shall be entitled to receive from the Company within five (5) business days of such
termination an amount equal to (x ) the sum of $200,000 (but only if such termination occurs prior to the First Closing (the “Company
Unilateral Termination Amount”), plus upon presentation of a written accounting in reasonable detail, reimbursement of
Placement Agent’s reasonable and actual out-of-pocket expenses related to the Offering which have not been previously paid,
including but not limited to fees and expenses of its legal counsel and due diligence related expenditures (not to exceed $100,000
in the aggregate. less the Legal Advance) (the “Company Unilateral Termination PA Expense Reimbursement”) In
addition, if within twelve (12) months after the Company Unilateral Termination, the Company conducts a public or private offering
of its securities, then upon the closing of any such transaction, the Company shall pay the Placement Agent in cash, within five
(5) business days of the closing of any such transaction an amount equal to 2% of the gross proceeds from such private or public
offering, provided that such percentage shall be the applicable percentages set forth in section 3(d) hereto with respect
to any gross proceeds from Tail Investors.

 

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(d) This Offering
may be terminated upon mutual agreement of the Company and the Placement Agent, at any time prior to the expiration of the Offering
Period. In addition, upon the expiration of the Offering Period, the Offering shall terminate without any further action of the
parties hereto. If the Offering is terminated pursuant to this Section 10(d), then in cases in which no Closing had been theretofore
consummated, the Company’s sole obligation to the Placement Agent shall be to reimburse the Placement Agent’s reasonable
and actual out-of-pocket expenses related to the Offering which have not been previously paid, including but not limited to fees
and expenses of its legal counsel and due diligence related expenditures (not to exceed $75,000 in the aggregate. less the Legal
Advance) which shall be paid within five (5) business days of such termination.

 

(e) Before any termination
by the Placement Agent under Section 10(a) or by the Company under Section 10(b) shall become effective, the terminating party
shall give written notice to the other party of its intention to terminate the Offering, which shall set forth the specific grounds
for the proposed termination (the “Termination Notice”). If the specified grounds for termination, or their
resulting adverse effect on the transactions contemplated hereby, are curable, then the other party shall have ten (10) days from
the Termination Notice within which to remove such grounds or to eliminate all of their material adverse effects on the transactions
contemplated hereby; otherwise, the Offering shall terminate.

 

(f) Upon any termination
pursuant to this Section 10, the parties to this Agreement will promptly instruct Escrow Agent to cause all monies received with
respect to the subscriptions for Shares not closed upon to be promptly returned to such subscribers without interest, penalty or
deduction.

 

11. Survival.

 

(a) The obligations
of the parties to pay any costs and expenses hereunder and to provide indemnification and contribution as provided herein shall
survive any termination hereunder. In addition, the provisions of 8 through 16 shall survive the sale of the Shares or any termination
of the Offering hereunder, and the provisions of Sections 3(d) and 3(e) shall survive the sale of the Shares or any termination
of the Offering (other than a termination under Section 10(b).

 

(b) The respective
indemnities, covenants, representations, warranties and other statements of Company and the Placement Agent set forth in or made
pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of, and regardless
of any access to information by, the Company or the Placement Agent, or any of their respective officers or directors or any controlling
person thereof, and will survive the sale of the Shares or any termination of the Offering hereunder for a period of two (2) years
from the earlier to occur of the Final Closing or the termination of the Offering.

 

12. Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly
given or made as of the date delivered personally, or the date mailed if mailed by registered or certified mail (postage
prepaid, return receipt requested) to the parties at the following addresses (or at such other address for a party as shall
be specified by like changes of address which shall be effective upon receipt) or sent by facsimile transmission, with
confirmation received. If sent to the Placement Agent, such notice will be mailed, delivered or telefaxed and confirmed to
Aegis Capital Corp., 810 Seventh Ave, 11th Floor, New York, New York 10019, Attention: Adam K. Stern, telefax number (646)
390-9122 , with a copy (which shall not constitute notice) to: Littman Krooks LLP, 655 Third Avenue, 20th Floor,
New York, NY 10017 Attention: Steven Uslaner, Esq., telefax number (212) 490-2990, if sent to Company, such notice will be
mailed, delivered or telefaxed and confirmed to DelMar Pharmaceuticals, Inc., 12707 High Bluff Dr., Suite 200, San Diego, CA
92130, Attention: Saiid Zarrabian, CEO, Email: saiid@delmarpharma.com, with a copy (which shall not constitute notice) to:
Lowenstein Sandler LLP, 1251 Avenue of the Americas, New York, New York 10020, Attention: Steven M. Skolnick,
Esq., Email: sskolnick@lowenstein.com.

 

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13. Governing
Law, Jurisdiction. This Agreement shall be deemed to have been made and delivered in New York City and shall be governed
as to validity, interpretation, construction, affect and in all other respects by the internal laws of the State of New York. THE
PARTIES AGREE THAT ANY DISPUTE, CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY RELATING TO OR ARISING OUT OF THIS AGREEMENT, THE
TERMINATION OR VALIDITY HEREOF, ANY ALLEGED BREACH OF THIS AGREEMENT OR THE ENGAGEMENT CONTEMPLATED HEREBY (ANY OF THE
FOREGOING, A “CLAIM”) SHALL BE SUBMITTED TO THE JUDICIAL ARBITRATION AND MEDIATION SERVICES, INC.
(“JAMS”), OR ITS SUCCESSOR, IN NEW YORK, FOR FINAL AND BINDING ARBITRATION IN FRONT OF A PANEL OF THREE
ARBITRATORS WITH JAMS IN NEW YORK, NEW YORK UNDER THE JAMS COMPREHENSIVE ARBITRATION RULES AND PROCEDURES (WITH EACH OF THE
PLACEMENT AGENT AND THE COMPANY CHOOSING ONE ARBITRATOR, AND THE CHOSEN ARBITRATORS CHOOSING THE THIRD ARBITRATOR). THE
ARBITRATORS SHALL, IN THEIR AWARD, ALLOCATE ALL OF THE COSTS OF THE ARBITRATION, INCLUDING THE FEES OF THE ARBITRATORS AND
THE REASONABLE ATTORNEYS’ FEES OF THE PREVAILING PARTY, AGAINST THE PARTY WHO DID NOT PREVAIL. THE AWARD IN THE
ARBITRATION SHALL BE FINAL AND BINDING. THE ARBITRATION SHALL BE GOVERNED BY THE FEDERAL ARBITRATION ACT, 9 U.S.C. SEC. 1-16,
AND THE JUDGMENT UPON THE AWARD RENDERED BY THE ARBITRATORS MAY BE ENTERED BY ANY COURT HAVING JURISDICTION THEREOF. THE
COMPANY AND THE PLACEMENT AGENT AGREE AND CONSENT TO PERSONAL JURISDICTION, SERVICE OF PROCESS AND VENUE IN ANY FEDERAL OR
STATE COURT WITHIN THE STATE AND COUNTY OF NEW YORK IN CONNECTION WITH ANY ACTION BROUGHT TO ENFORCE AN AWARD IN
ARBITRATION.

 

14. Miscellaneous.
No provision of this Agreement may be changed or terminated except by a writing signed by the party or parties to be charged therewith.
Unless expressly so provided, no party to this Agreement will be liable for the performance of any other party’s obligations
hereunder. Either party hereto may waive compliance by the other with any of the terms, provisions and conditions set forth herein;
provided, however, that any such waiver shall be in writing specifically setting forth those provisions
waived thereby. No such waiver shall be deemed to constitute or imply waiver of any other term, provision or condition of this
Agreement. Neither party may assign its rights or obligations under this Agreement to any other person or entity without the prior
written consent of the other party.

 

15. Entire
Agreement; Severability. This Agreement together with any other agreement referred to herein supersedes all prior understandings
and written or oral agreements between the parties with respect to the Offering and the subject matter hereof. If any portion of
this Agreement shall be held invalid or unenforceable, then so far as is reasonable and possible (i) the remainder of this Agreement
shall be considered valid and enforceable and (ii) effect shall be given to the intent manifested by the portion held invalid or
unenforceable.

 

16. Counterparts.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

[Signatures on following page.]

 

    25

    

    

 

If the foregoing is
in accordance with your understanding of the agreement between the Company and the Placement Agent, kindly sign and return this
Agreement, whereupon it will become a binding agreement between the Company and the Placement Agent in accordance with its terms.

 

	DELMAR PHARMACEUTICALS, INC.	 
	 	 	 
	By:	/s/ Saiid Zarrabian	 
	 	Saiid Zarrabian	 
	 	Chief Executive Officer	 
	 	 	 
	Accepted and agreed to this	 
	24th day of June 2020:	 
	 	 
	AEGIS CAPITAL CORP.	 
	 	 	 
	By: 	/s/ Adam K. Stern	 
	 	Adam K. Stern	 
	 	Head of Private Equity Banking	 

 

    

     

    

 

SCHEDULE OF EXCEPTIONS

 

NONEExhibit 10.5

 

SUBSCRIPTION
AGREEMENT

 

DelMar
Pharmaceuticals, Inc.

12707
High Bluff Drive, Suite 200

San
Diego, CA 92130

 

Ladies
and Gentlemen:

 

1.
Subscription. The undersigned (the “Purchaser”), intending to be legally bound, hereby irrevocably agrees to
purchase from DelMar Pharmaceuticals, Inc., a Nevada corporation (the “Company”),
the number of shares of Series C Convertible Preferred Stock, par value $0.001 (the “Shares”) set forth on the signature
page hereof at a purchase price of $1,000 per Share (“Share Price”), with a minimum investment amount of $100,000
which minimum investment may be waived at the discretion of the Company and the Placement Agent. The Shares are being sold in
the Offering (as defined below), the initial closing of which, will close contemporaneously with the merger of Adgero Biopharmaceuticals
Holdings, Inc., a Delaware corporation (“Adgero”), into a wholly-owned subsidiary of the Company (the “Merger”)
as more fully described in the Memorandum (as defined below). The terms of the Shares are set forth in the Certificate of Designations
of Preferences, Rights and Limitations of Series C Convertible Preferred Stock (the “Certificate of Designations”),
which is annexed to the Memorandum (as defined below) as Exhibit C. This Subscription Agreement (this “Subscription Agreement”)
is one in a series of similar subscription agreements (collectively, the “Subscription Agreements”) entered into pursuant
to the Offering. Adgero, along with the Company’s existing subsidiaries, DelMar Pharmaceuticals (BC) Ltd., 0959454 B.C.
Ltd. and 0959456 B.C. Ltd, are sometimes collectively referred to herein as the “Subsidiaries.”

 

2.
The Offering.

 

(a)
This subscription is submitted to you in accordance with and subject to the terms and conditions described in this Subscription
Agreement and the Confidential Private Placement Memorandum of the Company dated June 24, 2020, as amended or supplemented from
time to time, including all attachments, schedules and exhibits thereto (the “Memorandum”), relating to the offering
(the “Offering”) by the Company of a minimum of 10,000 Shares ($10,000,000) (the “Minimum Offering Amount”),
and up to a maximum of 20,000 Shares ($20,000,000) (the “Maximum Offering Amount”). In the event that the Maximum
Offering Amount is sold, the Placement Agent (as defined below) and the Company shall have the right to sell up to an additional
10,000 Shares ($10,000,000) to cover over-allotments.

 

(b)
Aegis Capital Corp. (“Aegis”) has been engaged as exclusive placement agent in connection with the Offering (sometimes
referred to as the “Placement Agent”). The terms of the Offering are more completely described in the Memorandum and
such terms are incorporated herein in their entirety.

 

    1

     

    

 

3.
Deliveries and Payment; Escrow of Funds. Simultaneously with the execution hereof, the Purchaser shall: (a) deliver to
Aegis in accordance with the Subscription Instructions attached hereto, (i) one (1) completed and executed Omnibus Signature Page
to this Subscription Agreement and the Registration Rights Agreement (page 14), (ii) a completed Accredited Investor Certification
(pages 15-16), (iii) a completed Investor Profile (pages 17 & 18) and (iv) one (1) completed and executed Tax Certification
for U.S. Persons or Non-U.S. Persons, as applicable (beginning on page 20); and (b) make a wire transfer payment to, “Signature
Bank, Escrow Agent for DelMar Pharmaceuticals, Inc.” in an amount equal to the
product of (i) the number of Shares being subscribed for by the Purchaser in the Offering as set forth on the signature page hereof,
multiplied by (ii) the Share Price. Wire transfer instructions are set forth on page 12 hereof under the heading “To subscribe
for Shares in the private offering of DelMar Pharmaceuticals, Inc. Such funds will be
held for the Purchaser's benefit in a non-interest-bearing escrow account (the “Escrow Account”) until the earliest
to occur of (a) a closing of the sale of the Minimum Offering Amount or more (the “First Closing”), (b) the rejection
of such subscription, or (c) the termination of the Offering by the Company or the Placement Agent. The Company and the Placement
Agent may continue to offer and sell the Shares and conduct additional closings for the sale of additional Shares after the First
Closing and until the termination of the Offering.

 

4.
Acceptance of Subscription. The Purchaser understands and agrees that the Company, in its sole discretion, reserves the
right to accept or reject this or any other subscription for Shares, in whole or in part, notwithstanding prior receipt by the
Purchaser of notice of acceptance of this subscription. In furtherance of the foregoing, the Company shall have the right to require
potential subscribers to supply additional information and execute additional documents in a satisfactory manner, which determination
shall be at the sole discretion of the Company, prior to the acceptance of this Subscription Agreement. The Company shall have
no obligation hereunder until the Company shall execute and deliver to the Purchaser an executed copy of this Subscription Agreement.
If this subscription is rejected in whole, the Offering of Shares is terminated or the Minimum Offering Amount is not raised,
all funds received from the Purchaser will be returned without interest or offset, and this Subscription Agreement shall thereafter
be of no further force or effect. If this subscription is rejected in part, the funds for the rejected portion of this subscription
will be returned without interest or offset, and this Subscription Agreement will continue in full force and effect to the extent
this subscription was accepted.

 

5.
Representations and Warranties.

 

The
Purchaser hereby acknowledges, represents, warrants, and agrees as follows:

 

(a)
None of the Shares or the shares of common stock of the Company issuable upon conversion of the Shares (the “Conversion
Securities) or payable as dividends on the Shares (the “Dividend Securities”) offered pursuant to the Memorandum are
registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. The
Purchaser understands that the offering and sale of the Shares is intended to be exempt from registration under the Securities
Act, by virtue of Section 4(a)(2) thereof and the provisions of Regulation D (“Regulation D”) as promulgated by the
United States Securities and Exchange Commission (the “SEC”) thereunder, based, in part, upon the representations,
warranties and agreements of the Purchaser contained in this Subscription Agreement.

 

    2

     

    

 

(b)
The Purchaser understands that, as further described in the Memorandum, the Series C Preferred Stock being offered may be sold
at one or more closings and the applicable Conversion Price of the Series C Preferred being sold at each closing may vary from
closing to closing since such Conversion Price will be measured at the time of each Closing. Accordingly, the Purchaser acknowledges
the risk that the Conversion Price of the particular series of Series C Preferred Stock that it purchases may be higher than the
Conversion Price paid by other investors who participate in a different closing.

 

(c)
Prior to the execution of this Subscription Agreement, the Purchaser and the Purchaser’s attorney, accountant, purchaser
representative and/or tax adviser, if any (collectively, the “Advisers”), have received the Memorandum and all other
documents requested by the Purchaser, have carefully reviewed them and understand the information contained therein.

 

(d)
Neither the SEC nor any state securities commission or other regulatory authority has approved the Shares, the Conversion Securities
or the Dividend Securities or passed upon or endorsed the merits of the Offering or confirmed the accuracy or determined the adequacy
of the Memorandum. The Memorandum has not been reviewed by any federal, state or other regulatory authority.

 

(e)
All documents, records, and books pertaining to the investment in the Shares (including, without limitation, the Memorandum) have
been made available for inspection by such Purchaser and its Advisers, if any.

 

(f)
The Purchaser and its Advisers, if any, have had a reasonable opportunity to ask questions of and receive answers from a person
or persons acting on behalf of the Company and the Subsidiaries concerning the offering of the Shares and the business, financial
condition and results of operations of the Company and the Subsidiaries, and all such questions have been answered to the full
satisfaction of the Purchaser and its Advisers, if any.

 

(g)
In evaluating the suitability of an investment in the Company and the Shares, the Purchaser has not relied upon any representation
or information (oral or written) other than as stated in the Memorandum and the Purchaser and its Advisors have had access, through
the Memorandum and/or the EDGAR system, to true and complete copies of the Company’s most recent Annual Report on Form 10-K
for the fiscal year ended June 30, 2019 (the “10-K”) and all other reports filed by the Company pursuant to the Securities
Exchange Act of 1934, as amended, since the filing of the 10-K and prior to the date hereof and has reviewed such filings, including
the Company’s Registration Statement on Form S-4 relating to the Merger (the “S-4 Registration Statement” and
together with the Company’s other filings with the SEC, the “SEC Reports”).

 

(h)
The Purchaser is unaware of, is in no way relying on, and did not become aware of the Offering through or as a result of, any
form of general solicitation or general advertising including, without limitation, through the S-4 Registration Statement or any
article, notice, advertisement or other communication published in any newspaper, magazine or similar media or broadcast over
television, radio or the Internet (including, without limitation, internet “blogs,” bulletin boards, discussion groups
and social networking sites) in connection with the Offering and is not subscribing for the Shares and did not become aware of
the Offering through or as a result of any seminar or meeting to which the Purchaser was invited by, or any solicitation of a
subscription by, a person not previously known to the Purchaser in connection with investments in securities generally.

 

    3

     

    

 

(i)
The Purchaser has taken no action that would give rise to any claim by any person for brokerage commissions, finders’ fees
or the like relating to this Subscription Agreement or the transactions contemplated hereby (other than commissions to be paid
by the Company to the Placement Agent or as otherwise described in the Memorandum).

 

(j)
The Purchaser, together with its Advisers, if any, has such knowledge and experience in financial, tax, and business matters,
and, in particular, investments in securities, so as to enable it to utilize the information made available to it in connection
with the Offering to evaluate the merits and risks of an investment in the Shares and the Company and to make an informed investment
decision with respect thereto.

 

(k)
The Purchaser is not relying on the Company, the Subsidiaries, the Placement Agent or any of their respective employees or agents
with respect to the legal, tax, economic and related considerations of an investment in the Company and the Shares, and the Purchaser
has relied on the advice of, or has consulted with, only its own Advisers.

 

(l)
The Purchaser is acquiring the Shares solely for such Purchaser’s own account for investment purposes only and not with
a view to or intent of resale or distribution thereof, in whole or in part. The Purchaser has no agreement or arrangement, formal
or informal, with any person to sell or transfer all or any part of the Shares or the Conversion Securities, and the Purchaser
has no plans to enter into any such agreement or arrangement.

 

(m)
The Purchaser must bear the substantial economic risks of the investment in the Shares indefinitely because none of the Shares,
Conversion Securities or Dividend may be sold, hypothecated or otherwise disposed of unless subsequently registered under the
Securities Act and applicable state securities laws or an exemption from such registration is available. Legends shall be placed
on the securities included in the to the effect that they have not been registered under the Securities Act or applicable state
securities laws and appropriate notations thereof will be made in the Company’s stock books. Stop transfer instructions
will be placed with the transfer agent of the Shares, if any. The Company has agreed that purchasers of the Shares will have,
with respect to the Conversion Securities and Dividend Securities, the registration rights described in the Registration Rights
Agreement. Notwithstanding such registration rights, there can be no assurance that there will be any market for resale of the
Shares, the Conversion Securities or the Dividend Securities, nor can there be any assurance that such securities will be freely
transferable at any time in the foreseeable future.

 

(n)
The Purchaser has adequate means of providing for such Purchaser’s current financial needs and foreseeable contingencies
and has no need for liquidity from its investment in the Shares for an indefinite period of time.

 

(o)
The Purchaser is aware that an investment in the Shares is high risk, involving a number of very significant risks and has carefully
read and considered the matters set forth under the caption “Risk Factors” in the Memorandum and in the SEC Reports,
and, in particular, acknowledges that the Company and the Subsidiaries each has a limited operating history, significant operating
losses since inception, no revenues from operations to date, limited assets and are engaged in a highly competitive business.

 

    4

     

    

 

(p)
The Purchaser meets the requirements of at least one of the suitability standards for an “accredited investor” as
that term is defined in Regulation D and as set forth on the Accredited Investor Certification contained herein.

 

(q)
The Purchaser (i) if a natural person, represents that the Purchaser has reached the age of 21 and has full power and authority
to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions
hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock
company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose
of acquiring the Shares, such entity is duly organized, validly existing and in good standing under the laws of the state of its
organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of
state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this
Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and
to purchase and hold the Shares, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary
action, this Subscription Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding
obligation of such entity; or (iii) if executing this Subscription Agreement in a representative or fiduciary capacity, represents
that it has full power and authority to execute and deliver this Subscription Agreement in such capacity and on behalf of the
subscribing individual, ward, partnership, trust, estate, corporation, or limited liability company or partnership, or other entity
for whom the Purchaser is executing this Subscription Agreement, and such individual, partnership, ward, trust, estate, corporation,
or limited liability company or partnership, or other entity has full right and power to perform pursuant to this Subscription
Agreement and make an investment in the Company, and represents that this Subscription Agreement constitutes a legal, valid and
binding obligation of such entity. The execution and delivery of this Subscription Agreement will not violate or be in conflict
with any order, judgment, injunction, agreement or controlling document to which the Purchaser is a party or by which it is bound.

 

(r)
The Purchaser and the Advisers, if any, have had the opportunity to obtain any additional information, to the extent the Company
and/or the Subsidiaries have such information in their possession or could acquire it without unreasonable effort or expense,
necessary to verify the accuracy of the information contained in the Memorandum and all documents received or reviewed in connection
with the purchase of the Shares and have had the opportunity to have representatives of the Company and the Subsidiaries provide
them with such additional information regarding the terms and conditions of this particular investment and the financial condition,
results of operations, and business of the Company and the Subsidiaries deemed relevant by the Purchaser or the Advisers, if any,
and all such requested information, to the extent the Company and the Subsidiaries had such information in their possession or
could acquire it without unreasonable effort or expense, has been provided to the full satisfaction of the Purchaser and the Advisers,
if any.

 

(s)
Any information which the Purchaser has heretofore furnished or is furnishing herewith to the Company, the Subsidiaries or the
Placement Agent is complete and accurate and may be relied upon by the Company, the Subsidiaries and the Placement Agent in determining
the availability of an exemption from registration under federal and state securities laws in connection with the offering of
securities as described in the Memorandum. The Purchaser further represents and warrants that it will notify and supply corrective
information to the Company, the Subsidiaries and the Placement Agent immediately upon the occurrence of any change therein occurring
prior to the Company's issuance of the Shares.

 

    5

     

    

 

(t)
The Purchaser has significant prior investment experience, including investment in non-listed and non-registered securities. The
Purchaser is knowledgeable about investment considerations in development-stage companies with limited operating histories. The
Purchaser has a sufficient net worth to sustain a loss of its entire investment in the Company and the Shares in the event such
a loss should occur. The Purchaser's overall commitment to investments which are not readily marketable is not excessive in view
of the Purchaser’s net worth and financial circumstances and the purchase of the Shares will not cause such commitment to
become excessive. Investment in the Company and the Shares as contemplated by this Subscription Agreement is suitable for the
Purchaser.

 

(u)
The Purchaser is satisfied that the Purchaser has received adequate information with respect to all matters which it or the Advisers,
if any, consider material to its decision to make an investment in the Company and the Shares as contemplated by this Subscription
Agreement.

 

(v)
The Purchaser acknowledges that it has been provided with, and has reviewed, Aegis’ Regulation Best Interest Supplement
in the form of Exhibit A hereto (the “BI Supplement”) and has had a reasonable opportunity to ask questions of
and receive answers from a person or persons acting on behalf of Aegis concerning the BI Supplement.

 

(w)
The Purchaser acknowledges that any estimates or forward-looking statements or projections included in the Memorandum were prepared
by the Company and the Subsidiaries in good faith but that the attainment of any such projections, estimates or forward-looking
statements cannot be guaranteed by the Company or the Subsidiaries and should not be relied upon.

 

(x)
No oral or written representations have been made, or oral or written information furnished, to the Purchaser or the Advisers,
if any, in connection with the Offering which are in any way inconsistent with the information contained in the Memorandum.

 

(y)
Within five (5) days after receipt of a request from the Company, the Subsidiaries or the Placement Agent, the Purchaser will
provide such information and deliver such documents as may reasonably be necessary to comply with any and all laws and ordinances
to which the Company, the Subsidiaries or the Placement Agent is subject.

 

(z)
The Purchaser's substantive relationship with either the Company, the Placement Agent or subagent through which the Purchaser
is subscribing for Shares predates such Placement Agent's or such subagent's contact with the Purchaser regarding an investment
in the Shares.

 

    6

     

    

 

(aa)
THE SHARES OFFERED HEREBY (INCLUDING THE CONVERSION SECURITIES AND DIVIDEND SECURITIES) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS OF SAID ACT AND SUCH LAWS. SUCH SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT
BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. SUCH
SECURITIES HAVE NOT BEEN RECOMMENDED, APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES
COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF
THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE MEMORANDUM OR THIS SUBSCRIPTION AGREEMENT. ANY REPRESENTATION TO THE CONTRARY
IS UNLAWFUL.

 

(bb)
In making an investment decision in the Company and the Shares investors must rely on their own examination of the Company, the
Subsidiaries and the terms of the Offering, including the merits and risks involved. The Purchaser should be aware that it will
be required to bear the financial risks of investment in the Company and the Shares for an indefinite period of time.

 

(cc)
(For ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents that such fiduciary has been
informed of and understands the Company’s investment objectives, policies and strategies, and that the decision to invest
“plan assets” (as such term is defined in ERISA) in the Company is consistent with the provisions of ERISA that require
diversification of plan assets and impose other fiduciary responsibilities. The Purchaser fiduciary or Plan (a) is responsible
for the decision to invest in the Company; (b) is independent of the Company or any of its affiliates; (c) is qualified to make
such investment decision; and (d) in making such decision, the Purchaser fiduciary or Plan has not relied primarily on any advice
or recommendation of the Company or any of its affiliates.

 

(dd)
The Purchaser should check the Office of Foreign Assets Control (“OFAC”) website at <http://www.treas.gov/ofac>
before making the following representations. The Purchaser represents that the amounts invested by it in the Company in the
Offering were not and are not directly or indirectly derived from activities that contravene federal, state or international laws
and regulations, including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by
OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries,
territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found
on the OFAC website at <http://www.treas.gov/ofac>. In addition, the programs administered by OFAC (the “OFAC Programs”)
prohibit dealing with individuals1 or entities in certain countries regardless
of whether such individuals or entities appear on the OFAC lists.

 

 

		1	These
                                         individuals include specially designated nationals, specially designated narcotics traffickers
                                         and other parties subject to OFAC sanctions and embargo programs.

 

    7

     

    

 

(ee)
To the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any person controlling or controlled by the Purchaser;
(3) if the Purchaser is a privately-held entity, any person having a beneficial interest in the Purchaser; or (4) any person for
whom the Purchaser is acting as agent or nominee in connection with this investment is a country, territory, individual or entity
named on an OFAC list, or a person or entity prohibited under the OFAC Programs. Please be advised that the Company may not accept
any amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding
paragraph. The Purchaser agrees to promptly notify the Company, the Subsidiaries and the Placement Agent should the Purchaser
become aware of any change in the information set forth in these representations. The Purchaser understands and acknowledges that,
by law, the Company may be obligated to “freeze the account” of the Purchaser, either by prohibiting additional subscriptions
from the Purchaser, declining any redemption requests and/or segregating the assets in the account in compliance with governmental
regulations, and the Placement Agent may also be required to report such action and to disclose the Purchaser’s identity
to OFAC. The Purchaser further acknowledges that the Company may, by written notice to the Purchaser, suspend the redemption rights,
if any, of the Purchaser if the Company reasonably deems it necessary to do so to comply with anti-money laundering regulations
applicable to the Company and the Placement Agent or any of the Company’s other service providers. These individuals include
specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo
programs.

 

(ff)
To the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any person controlling or controlled by the Purchaser;
(3) if the Purchaser is a privately-held entity, any person having a beneficial interest in the Purchaser; or (4) any person for
whom the Purchaser is acting as agent or nominee in connection with this investment is a senior foreign political figure,2
or any immediate family3 member or close associate4
of a senior foreign political figure, as such terms are defined in the footnotes below.

 

(gg)
If the Purchaser is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Purchaser receives
deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Purchaser represents
and warrants to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country
in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related
to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank
to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does
not have a physical presence in any country and that is not a regulated affiliate.

 

 

		2	A
                                         “senior foreign political figure” is defined as a senior official in the
                                         executive, legislative, administrative, military or judicial branches of a foreign government
                                         (whether elected or not), a senior official of a major foreign political party, or a
                                         senior executive of a foreign government-owned corporation. In addition, a “senior
                                         foreign political figure” includes any corporation, business or other entity that
                                         has been formed by, or for the benefit of, a senior foreign political figure.

 

		3	“Immediate
                                         family” of a senior foreign political figure typically includes the figure’s
                                         parents, siblings, spouse, children and in-laws.

 

		4	A
                                         “close associate” of a senior foreign political figure is a person who is
                                         widely and publicly known to maintain an unusually close relationship with the senior
                                         foreign political figure, and includes a person who is in a position to conduct substantial
                                         domestic and international financial transactions on behalf of the senior foreign political
                                         figure.

 

    8

     

    

 

6.
Indemnification. The Purchaser agrees to indemnify and hold harmless the Company, and the Subsidiaries, the Placement Agent
(including its selected dealers, if any), and their respective officers, directors, employees, agents, control persons and affiliates
from and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever (including, but not limited to,
any and all expenses incurred in investigating, preparing or defending against any litigation commenced or threatened) based upon
or arising out of any actual or alleged false acknowledgment, representation or warranty, or misrepresentation or omission to
state a material fact, or breach by the Purchaser of any covenant or agreement made by the Purchaser herein or in any other document
delivered in connection with this Subscription Agreement.

 

7.
Irrevocability; Binding Effect. The Purchaser hereby acknowledges and agrees that the subscription hereunder is irrevocable
by the Purchaser, except as required by applicable law, and that this Subscription Agreement shall survive the death or disability
of the Purchaser and shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators,
successors, legal representatives, and permitted assigns. If the Purchaser is more than one person, the obligations of the Purchaser
hereunder shall be joint and several and the agreements, representations, warranties, and acknowledgments herein shall be deemed
to be made by and be binding upon each such person and such person's heirs, executors, administrators, successors, legal representatives,
and permitted assigns.

 

8.
Modification. This Subscription Agreement shall not be modified or waived except by an instrument in writing signed by
the party against whom any such modification or waiver is sought.

 

9.
Immaterial Modifications to the Registration Rights Agreement. The Company may, at any time prior to the First Closing,
modify the Registration Rights Agreement if necessary to clarify any provision therein, without first providing notice or obtaining
prior consent of the Purchaser, if, and only if, such modification is not material in any respect.

 

10.
Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be
deemed effectively given: (a) upon personal delivery to the party notified, (b) when sent by confirmed email or facsimile if sent
during normal business hours of the recipient, if not confirmed, then on the next business day, (c) five days after having been
sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt. The Company and the Purchaser
hereby consent to the delivery of communications and notices to such parties at their respective address, email or facsimile number
set forth on the signature page hereto, or to such other address as such party shall have furnished in writing in accordance with
the provisions of this Section 10.

 

11.
Assignability. This Subscription Agreement and the rights, interests and obligations hereunder are not transferable or
assignable by the Purchaser and the transfer or assignment of the Shares, the Conversion Securities or the Dividend Securities
shall be made only in accordance with all applicable laws.

 

12.
Applicable Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the State
of New York applicable to contracts to be wholly-performed within said State.

 

    9

     

    

 

13.
Arbitration. The parties agree to submit all controversies to arbitration in accordance with the provisions set forth below
and understand that:

 

(a)
Arbitration is final and binding on the parties.

 

(b)
The parties are waiving their right to seek remedies in court, including the right to a jury trial.

 

(c)
Pre-arbitration discovery is generally more limited and different from court proceedings.

 

(d)
The arbitrator’s award is not required to include factual findings or legal reasoning and any party’s right to appeal
or to seek modification of rulings by arbitrators is strictly limited.

 

(e)
The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.

 

(f)
All controversies which may arise between the parties concerning this Subscription Agreement shall be determined by arbitration
pursuant to the rules then pertaining to the Financial Industry Regulatory Authority, Inc. (“FINRA”) in New York City,
New York. Judgment on any award of any such arbitration may be entered in the Supreme Court of the State of New York or in any
other court having jurisdiction of the person or persons against whom such award is rendered. Any notice of such arbitration
or for the confirmation of any award in any arbitration shall be sufficient if given in accordance with the provisions of this
Agreement. The parties agree that the determination of the arbitrators shall be binding and conclusive upon them.

 

14.
Blue Sky Qualification. The purchase of Shares under this Subscription Agreement is expressly conditioned upon the exemption
from qualification of the offer and sale of the Shares from applicable federal and state securities laws. The Company shall not
be required to qualify this transaction under the securities laws of any jurisdiction and, should qualification be necessary,
the Company shall be released from any and all obligations to maintain its offer, and may rescind any sale contracted, in the
jurisdiction.

 

15.
Use of Pronouns. All pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the person or persons referred to may require.

 

16.
Confidentiality. The Purchaser acknowledges and agrees that any information or data the Purchaser has acquired from or
about the Company or the Subsidiaries, not otherwise properly in the public domain, was received in confidence. The Purchaser
agrees not to divulge, communicate or disclose, except as may be required by law or for the performance of this Agreement, or
use to the detriment of the Company or the Subsidiaries or for the benefit of any other person or persons, or misuse in any way,
any confidential information of the Company or the Subsidiaries, including any scientific, technical, trade or business secrets
of the Company or the Subsidiaries and any scientific, technical, trade or business materials that are treated by the Company
or the Subsidiaries as confidential or proprietary, including, but not limited to, ideas, discoveries, inventions, developments
and improvements belonging to the Company or the Subsidiaries and confidential information obtained by or given to the Company
or the Subsidiaries about or belonging to third parties.

 

    10

     

    

 

17.
Miscellaneous.

 

(a)
This Subscription Agreement, together with the Registration Rights Agreement, constitutes the entire agreement between the Purchaser
and the Company with respect to the subject matter hereof and supersede all prior oral or written agreements and understandings,
if any, relating to the subject matter hereof. The terms and provisions of this Subscription Agreement may be waived, or consent
for the departure therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or
provisions.

 

(b)
The representations and warranties of the Purchaser made in this Subscription Agreement shall survive the execution and delivery
hereof and delivery of the Shares.

 

(c)
Each of the parties hereto shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or
others engaged by such party) in connection with this Subscription Agreement and the transactions contemplated hereby whether
or not the transactions contemplated hereby are consummated.

 

(d)
This Subscription Agreement may be executed in one or more counterparts each of which shall be deemed an original, but all of
which shall together constitute one and the same instrument.

 

(e)
Each provision of this Subscription Agreement shall be considered separable and, if for any reason any provision or provisions
hereof are determined to be invalid or contrary to applicable law, such invalidity or illegality shall not impair the operation
of or affect the remaining portions of this Subscription Agreement.

 

(f)
Paragraph titles are for descriptive purposes only and shall not control or alter the meaning of this Subscription Agreement as
set forth in the text.

 

18.
Omnibus Signature Page. This Subscription Agreement is intended to be read and construed in conjunction with the Registration
Rights Agreement pertaining to the issuance by the Company of the Shares to subscribers pursuant to the Memorandum. Accordingly,
pursuant to the terms and conditions of this Subscription Agreement and such related agreements it is hereby agreed that the execution
by the Purchaser of this Subscription Agreement, in the place set forth herein, shall constitute agreement to be bound by the
terms and conditions hereof and the terms and conditions of the Registration Rights Agreement, with the same effect as if each
of such separate but related agreement were separately signed.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    11

     

    

 

DelMar
Pharmaceuticals, Inc.

OMNIBUS
SIGNATURE PAGE TO THE

SUBSCRIPTION
AGREEMENT AND REGISTRATION RIGHTS AGREEMENT

 

Subscriber
hereby elects to subscribe under the Subscription Agreement for a total of $_______ of Shares at a price of $1,000.00 per Share
(NOTE: to be completed by subscriber) and, by execution and delivery hereof, Subscriber hereby executes the Subscription Agreement
and agrees to be bound by the terms and conditions of the Subscription Agreement and the Registration Rights Agreement.

 

If
the Purchaser is an INDIVIDUAL, and if purchased as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY PROPERTY:

 

	 	 	 
	Print Name(s)	 	Social Security
    Number(s)
	 	 	 
	 	 	 
	Signature(s)
    of Subscriber(s)	 	Signature
	 	 	 
	 	 	 
	Date	 	Address

 

If
the Purchaser is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY or TRUST:

 

	 	 	 
	Name of Entity	 	Federal Taxpayer
	 	 	Identification
    Number

 

	By:	 	 	 
	 	Name:	 	State of Organization
	 	Title:	 	 

 

	 	 	 
	Date	 	Address
	 	 	 
	 	 	 
	Fax Number	 	Email Address

 

	DelMar
    Pharmaceuticals, Inc.	 	AEGIS
    CAPITAL CORP.
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	By:	 
	 	Authorized Officer	 	 	Authorized Officer

 

 12

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