Document:

EX-10.1

 Exhibit 10.1 

OPEN MARKET SALE AGREEMENTSM 

December 28, 2018 
 JEFFERIES LLC 

520 Madison Avenue 
 New York, New York 10022 

Ladies and Gentlemen: 
 Aldeyra Therapeutics,
Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and conditions stated herein, to issue and sell from time to time through Jefferies LLC, as sales agent and/or principal (the “Agent”),
shares of the Company’s common stock, par value $0.001 per share (the “Common Shares”), on the terms set forth in this agreement (this “Agreement”). 

Section 1. DEFINITIONS 

(a)    Certain Definitions. For purposes of this Agreement, capitalized terms used herein and not otherwise defined
shall have the following respective meanings: 
 “Affiliate” of a Person means another Person that directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is under common control with, such first- mentioned Person. The term “control” (including the terms “controlling,” “controlled by” and “under
common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

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

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

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
promulgated thereunder. 
 “Floor Price” means the minimum price set by the Company in the Issuance Notice below which the
Agent shall not sell Shares during the applicable period set forth in the Issuance Notice, which may be adjusted by the Company at any time during the period set forth in the Issuance Notice by delivering written notice of such change to the Agent
and which in no event shall be less than $1.00 without the prior written consent of the Agent, which may be withheld in the Agent’s sole discretion. 

 

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

 “Issuance Amount” means the aggregate Sales Price of the Shares to be sold
by the Agent pursuant to any Issuance Notice. 
 “Issuance Notice” means a written notice delivered to the Agent by the
Company in accordance with this Agreement in the form attached hereto as Exhibit A that is executed by its Chief Executive Officer, President or Chief Financial Officer. 

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

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

“Person” means an individual or a corporation, partnership, limited liability company, trust, incorporated or unincorporated
association, joint venture, joint stock company, governmental authority or other entity of any kind. 
 “Principal Market”
means The Nasdaq Capital Market or such other national securities exchange on which the Common Shares, including any Shares, are then listed. 

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

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated
thereunder. 
 “Selling Commission” means up to three percent (3.0%) of the gross proceeds of Shares sold pursuant to this
Agreement, or as otherwise agreed between the Company and the Agent with respect to any Shares sold pursuant to this Agreement. 

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

  
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 “Shares” shall mean the Company’s Common Shares issued or issuable
pursuant to this Agreement. 
 “Trading Day” means any day on which the Principal Market is open for trading. 

Section 2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

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

(a)    Registration Statement. The Company has prepared and filed with the Commission a shelf registration
statement on Form S-3 (File No. 333-226266) that contains a base prospectus (the “Base Prospectus”). Such registration statement
registers the issuance and sale by the Company of the Shares under the Securities Act. The Company may file one or more additional registration statements from time to time that will contain a base prospectus and related prospectus or prospectus
supplement, if applicable, with respect to the Shares. Except where the context otherwise requires, such registration statement(s), including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, including all
financial statements, exhibits and schedules thereto and all documents incorporated or deemed to be incorporated therein by reference pursuant to Item 12 of Form S-3 under the Securities Act as from time to
time amended or supplemented, is herein referred to as the “Registration Statement,” and the prospectus constituting a part of such registration statement(s), together with any prospectus supplement filed with the Commission
pursuant to Rule 424(b) under the Securities Act relating to a particular issuance of the Shares, including all documents incorporated or deemed to be incorporated therein by reference pursuant to Item 12 of Form
S-3 under the Securities Act, in each case, as from time to time amended or supplemented, is referred to herein as the “Prospectus,” except that if any revised prospectus is provided to the
Agent by the Company for use in connection with the offering of the Shares that is not required to be filed by the Company pursuant to Rule 424(b) under the Securities Act, the term “Prospectus” shall refer to such revised
prospectus from and after the time it is first provided to the Agent for such use. The Registration Statement at the time it originally became effective is herein called the “Original Registration Statement.” As used in this
Agreement, the terms “amendment” or “supplement” when applied to the Registration Statement or the Prospectus shall be deemed to include the filing by the Company with the Commission of any document under the Exchange Act after
the date hereof that is or is deemed to be incorporated therein by reference. 
 All references in this Agreement to financial statements
and schedules and other information which is “contained,” “included” or “stated” in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to mean and include all such
financial statements and schedules and other information which is or is deemed to be incorporated by reference in or otherwise deemed under the Securities Act to be a part of or included in the Registration Statement or the Prospectus, as the case
may be, as of any specified date; and all references in this Agreement to amendments or supplements to the Registration Statement or the 

  
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Prospectus shall be deemed to mean and include, without limitation, the filing of any document under the Exchange Act which is or is deemed to be incorporated by reference in or otherwise deemed
under the Securities Act to be a part of or included in the Registration Statement or the Prospectus, as the case may be, as of any specified date. The Company’s obligations under this Agreement to furnish, provide, deliver or make available
(and all other references of like import) copies of any report or statement shall be deemed satisfied if the same is filed with the Commission through EDGAR. 

At the time the Original Registration Statement was originally declared effective and at the time the Company’s most recent annual report
on Form 10-K was filed with the Commission, if later, the Company met the then-applicable requirements for use of Form S-3 under the Securities Act. During the
Agency Period, each time the Company files an annual report on Form 10-K the Company will meet the then-applicable requirements for use of Form S-3 under the Securities
Act. 
 (b)    Compliance with Registration Requirements. The Original Registration Statement and any
Rule 462(b) Registration Statement have been or will be declared effective by the Commission under the Securities Act. The Company has complied or will comply with the Commission’s satisfaction with all requests of the Commission for
additional or supplemental information, if any. No stop order suspending the effectiveness of the Registration Statement or any Rule 462(b) Registration Statement is in effect and no proceedings for such purpose have been instituted or are
pending or, to the knowledge of the Company, are contemplated or threatened by the Commission. 
 The Prospectus when filed complied or will
comply in all material respects with the Securities Act and, if filed with the Commission through its Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”) (except as may be permitted by
Regulation S-T under the Securities Act), was identical to the copy thereof delivered to the Agent for use in connection with the issuance and sale of the Shares. Each of the Registration Statement, any
Rule 462(b) Registration Statement and any post-effective amendment thereto, at the time it became or becomes effective and at each Representation Date, complied and will comply in all material respects with the Securities Act and did not and
will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. As of the date of this Agreement, the Prospectus and any Free Writing
Prospectus considered together (collectively, the “Time of Sale Information”) did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The Prospectus, as amended or supplemented, as of its date and at each Representation Date, did not and will not contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The representations and warranties set forth in the three immediately preceding sentences do not apply to
statements in or omissions from the Registration Statement, any Rule 462(b) Registration Statement, or any post-effective amendment thereto, or the Prospectus, or any amendments or supplements thereto, made in reliance upon and in conformity
with information relating to the Agent furnished to the Company in writing by the Agent expressly for use therein, it being understood and agreed that the only such information furnished by the Agent to the Company consists of the information
described in 

  
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Section 6 below. There are no contracts or other documents required to be described in the Prospectus or to be filed as exhibits to the Registration Statement which have
not been described or filed as required. The Registration Statement and the offer and sale of the Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act and comply in all material respects with said rule. 

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

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

 (e)    Exchange Act Compliance. The documents incorporated or deemed to be incorporated by reference in the
Prospectus, at the time they were or hereafter are filed with the Commission, and any Free Writing Prospectus or amendment or supplement thereto complied and will comply in all material respects with the requirements of the Exchange Act, and, when
read together with the other information in the Prospectus, at the time the Registration Statement and any amendments thereto become effective and of each Representation Date, as the case may be, will not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading. 
 (f)    Disclosure of Agreements. The agreements and documents described in the Registration
Statement and the Prospectus conform in all material respects to the descriptions thereof contained therein and there are no agreements or other documents required by the Securities Act to be described in the Registration Statement and the
Prospectus or to be filed with the Commission as exhibits to the Registration Statement, that have not been so described or 

  
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filed. Each agreement or other instrument (however characterized or described) to which the Company is a party or by which it is or may be bound or affected and that is referred to in the
Registration Statement and the Prospectus, has been duly authorized and validly executed by the Company, is in full force and effect in all material respects and is enforceable against the Company and, to the Company’s knowledge, the other
parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally, (y) as enforceability of any
indemnification or contribution provision may be limited under the federal and state securities laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses
and to the discretion of the court before which any proceeding therefor may be brought. None of such agreements or instruments has been assigned by the Company, and neither the Company nor, to the Company’s knowledge, any other party is in
default thereunder and, to the Company’s knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder except for any such defaults that would not have or reasonably be
expected to result in a Material Adverse Change (as defined below). To the Company’s knowledge, performance by the Company of the material provisions of such agreements or instruments will not result in a material violation of any existing
applicable law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its assets or businesses (each, a “Governmental Entity”),
including, without limitation, those relating to environmental laws and regulations. 
 (g)    Prior Securities
Transactions. Since July 18, 2018, no securities of the Company have been sold by the Company or by or on behalf of, or for the benefit of, any person or persons controlling, controlled by or under common control with the Company, except as
disclosed in the Registration Statement and the Prospectus. 
 (h)    Regulations. The disclosures in the
Registration Statement and the Prospectus concerning the effects of federal, state, local and all foreign regulation on the offering and the Company’s business as currently contemplated are correct in all material respects and no other such
regulations are required to be disclosed in the Registration Statement and the Prospectus which are not so disclosed. 

(i)    Emerging Growth Company. From the time of the initial filing of the Company’s registration statement on
Form S-1 (File No. 333-193204) to the Commission through the date hereof, the Company has been and is an “emerging growth company,” as defined in
Section 2(a) of the Securities Act (an “Emerging Growth Company”). 
 (j)    No Material
Adverse Change. Since the respective dates as of which information is given in the Registration Statement and the Prospectus, except as otherwise specifically stated therein: (i) there has been no material adverse change in the financial
position or results of operations of the Company, nor any change or development that, singularly or in the aggregate, would reasonably be expected to result in a material adverse change, in or affecting the condition (financial or otherwise),
results of operations, business, assets or prospects of the Company (a “Material Adverse Change”); (ii) there have been no material transactions entered into by the Company, other than as contemplated pursuant to this Agreement; and
(iii) no officer or director of the Company has resigned from any position with the Company 

  
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 (k)    Recent Securities Transactions, etc. Subsequent to the
respective dates as of which information is given in the Registration Statement and the Prospectus, and except as may otherwise be indicated or contemplated herein or disclosed in the Registration Statement and the Prospectus, the Company has not:
(i) issued any securities (other than equity compensation to service providers in the normal course of business) or incurred any liability or obligation, direct or contingent, for borrowed money; or (ii) declared or paid any dividend or
made any other distribution on or in respect to its capital stock. 
 (l)    Organization and Good Standing. The
Company has been duly organized and is validly existing as a corporation and is in good standing under the laws of the State of Delaware as of the date hereof, and is duly qualified to do business and is in good standing in each other jurisdiction
in which its ownership or lease of property or the conduct of business requires such qualification, except where the failure to so qualify, singularly or in the aggregate, would not have or reasonably be expected to result in a Material Adverse
Change. 
 (m)    Outstanding Securities. All issued and outstanding securities of the Company issued prior to
the transactions contemplated by this Agreement have been duly authorized and validly issued and are fully paid and non-assessable; the holders thereof have no rights of rescission with respect thereto, and
are not subject to personal liability by reason of being such holders; and none of such securities were issued in violation of the preemptive rights of any holders of any security of the Company or similar contractual rights granted by the Company.
The authorized Common Shares conform in all material respects to all statements relating thereto contained in the Registration Statement and the Prospectus. The offers and sales of the outstanding Common Shares were at all relevant times either
registered under the Securities Act and the applicable state securities or “blue sky” laws or, based in part on the representations and warranties of the purchasers of such shares, exempt from such registration requirements. 

(n)    The Shares. The Shares have been duly authorized for issuance and sale and, when issued and paid for, will
be validly issued, fully paid and non-assessable; the holders thereof are not and will not be subject to personal liability by reason of being such holders; the Shares are not and will not be subject to the
preemptive rights or rights of first refusal of any holders of any security of the Company or similar contractual rights granted by the Company; and all corporate action required to be taken for the authorization, issuance and sale of the Shares
have been duly and validly taken. The Shares conform in all material respects to all statements with respect thereto contained in the Registration Statement and the Prospectus. All corporate action required to be taken for the authorization,
issuance and sale of the Shares have been duly and validly taken; the holders thereof are not and will not be subject to personal liability by reason of being such holders; and such Shares are not and will not be subject to the preemptive rights or
rights of first refusal of any holders of any security of the Company or similar contractual rights granted by the Company. 

(o)    Validity and Binding Effect of Agreements. This Agreement has been duly and validly authorized by the
Company, and, when executed and delivered, will constitute, the valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except: (i) as such enforceability may be limited by bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally; (ii) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities laws; and (iii) that the
remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. 

  
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 (p)    Capitalization. The Company had, at the date or dates
indicated in the Registration Statement and the Prospectus, the duly authorized, issued and outstanding capitalization as set forth therein. Based on the assumptions stated in the Registration Statement and the Prospectus. Except as set forth in, or
contemplated by, the Registration Statement and the Prospectus or grants made under any stock compensation plan in the ordinary course after the date hereof, , there are no stock options, warrants, or other rights to purchase or otherwise acquire
any authorized, but unissued Common Shares of the Company or any security convertible or exercisable into Common Shares of the Company, or any contracts or commitments to issue or sell Common Shares or any such options, warrants, rights or
convertible securities 
 (q)    No Conflicts. The execution, delivery and performance by the Company of this
Agreement and all ancillary documents, the consummation by the Company of the transactions herein and therein contemplated and the compliance by the Company with the terms hereof and thereof do not and will not, with or without the giving of notice
or the lapse of time or both: (i) result in a breach of, or conflict with any of the terms and provisions of, or constitute a default under, or result in the creation, modification, termination or imposition of any lien, charge or encumbrance
upon any material property or assets of the Company pursuant to the terms of any material agreement or instrument to which the Company is a party; (ii) result in any violation of the provisions of the Company’s Certificate of Incorporation
(as the same may be amended or restated from time to time, the “Charter”) or the by-laws of the Company (as the same may be amended or restated from time to time); or (iii) violate any
existing applicable law, rule or regulation, or any judgment, order or decree of any Governmental Entity as of the date hereof (including, without limitation, those promulgated by the Food and Drug Administration of the U.S. Department of Health and
Human Services (the “FDA”) or by any foreign, federal, state or local regulatory authority performing functions similar to those performed by the FDA) applicable to the Company or its assets, except, as to clauses (i) and
(iii), where such breach, conflict or violation would not have or reasonably be expected to result in a Material Adverse Change. 

(r)    Transactions Contemplated Herein. The Company has all corporate power and authority to enter into this
Agreement and to carry out the provisions and conditions hereof, and all consents, authorizations, approvals and orders required in connection therewith have been obtained. No consent, authorization or order of, and no filing with, any court,
Governmental Entity or other body is required for the valid issuance, sale and delivery of the Shares and the consummation of the transactions and agreements contemplated by this Agreement and as contemplated by the Registration Statement and the
Prospectus, except with respect to applicable federal and state securities laws and the rules and regulations of the Financial Industry Regulatory Authority, Inc. (“FINRA”). 

(s)    Independent Accountants. To the knowledge of the Company, BDO USA, LLP (the “Auditor”),
whose report is filed with the Commission as part of the Registration Statement and the Prospectus, is an independent registered public accounting firm as required by the 

  
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Securities Act and the Securities Act Regulations and the Public Company Accounting Oversight Board. The Auditor has not, during the periods covered by the financial statements included in
the Registration Statement and the Prospectus, provided to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act. 

(t)    Financial Statements. The financial statements, including the notes thereto and supporting schedules
included in the Registration Statement and the Prospectus, fairly present in all material respects the financial position and the results of operations of the Company at the dates and for the periods to which they apply; and such financial
statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), consistently applied throughout the periods involved (provided that unaudited interim financial statements are subject to year-end audit adjustments that are not expected to be material in the aggregate and do not contain all footnotes required by GAAP); and the supporting schedules included in the Registration Statement present fairly
in all material respects the information required to be stated therein. Except as included therein, no historical or pro forma financial statements are required to be included in the Registration Statement or the Prospectus under the Securities Act.
The pro forma and pro forma as adjusted financial information and the related notes, if any, included in the Registration Statement and the Prospectus have been properly compiled and prepared in all material respects in accordance with the
applicable requirements of the Securities Act and present fairly in all material respects the information shown therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give
effect to the transactions and circumstances referred to therein. All disclosures contained in the Registration Statement or the Prospectus regarding “non-GAAP financial measures” (as such term is
defined by the rules and regulations of the Commission), if any, comply in all material respects with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the Securities Act, to the extent
applicable. Each of the Registration Statement and the Prospectus discloses all material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of
the Company with unconsolidated entities or other persons that may have a material current or are reasonably expected to have a material future effect on the Company’s financial condition, changes in financial condition, results of operations,
liquidity, capital expenditures, capital resources, or significant components of revenues or expenses. Except as disclosed in the Registration Statement and the Prospectus, (a) the Company has not incurred any material liabilities or
obligations, direct or contingent, or entered into any material transactions other than in the ordinary course of business, (b) the Company has not declared or paid any dividends or made any distribution of any kind with respect to its capital
stock, (c) there has not been any change in the capital stock of the Company, or, other than in the ordinary course of business, any grants under any stock compensation plan, and (d) there has not been any Material Adverse Change in the
Company’s long-term or short-term debt. 
 (u)    eXtensible Business Reporting Language. The interactive
data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s
rules and guidelines applicable thereto. 

  
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 (v)    Litigation; Governmental Proceedings. There is no action,
suit, proceeding, inquiry, arbitration, investigation, litigation or governmental proceeding pending or, to the Company’s knowledge, threatened against, or involving the Company or, to the Company’s knowledge, any executive officer or
director which is required to be and has not been disclosed in the Registration Statement and the Prospectus or in connection with the Company’s listing application for the listing of the Shares on the Exchange, except in each case for any such
action, suit, proceeding, inquiry, arbitration, investigation, litigation or governmental proceeding that would not have or reasonably be expected to result in a Material Adverse Change. 

(w)    No Violation or Default. No material default exists in the due performance and observance of any term,
covenant or condition of any material license, contract, indenture, mortgage, deed of trust, note, loan or credit agreement, or any other agreement or instrument evidencing an obligation for borrowed money, or any other material agreement or
instrument to which the Company is a party or by which the Company may be bound or to which any of the material properties or assets of the Company is subject. The Company is not in violation of any term or provision of its Charter or by-laws. The Company is not in violation of any franchise, license, permit, applicable law, rule, regulation, judgment or decree of any of any Governmental Entity applicable to the Company, in each case, except such
as would not reasonably be expected to result in a Material Adverse Change. 
 (x)    Conduct of Business. Except
as described in the Registration Statement and the Prospectus, the Company has all requisite corporate power and authority, and has all necessary material authorizations, approvals, orders, licenses, certificates and permits of and from all
governmental regulatory officials and bodies that it needs as of the date hereof to conduct its business as currently being conducted as described in the Registration Statement and the Prospectus. 

(y)    Regulatory. All preclinical studies and clinical trials conducted by or to the knowledge of the Company, on
behalf of the Company that are material to the Company, are or have been adequately described in the Registration Statement and the Prospectus in all material respects. The clinical trials and preclinical studies conducted by or, to the knowledge of
the Company, on behalf of the Company that are described in the Registration Statement and the Prospectus or the results of which are referred to in the Registration Statement and the Prospectus were and, if still ongoing, are being conducted in
material compliance with all laws and regulations applicable thereto in the jurisdictions in which they are being conducted. The descriptions in the Registration Statement and the Prospectus of the results of such studies and trials are accurate and
complete in all material respects and fairly present the data derived from such studies and trials, and the Company has no knowledge of, any clinical trial or preclinical study the results of which are inconsistent with or otherwise call into
question the results of any clinical trial or preclinical study conducted by or on behalf of the Company that are described in the Registration Statement and the Prospectus or the results of which are referred to in the Registration Statement and
the Prospectus. Except as disclosed in the Registration Statement and the Prospectus, the Company has not received any written notices from the FDA, the European Medicines Agency (“EMA”) or any other Governmental Entity requiring,
requesting or suggesting termination, suspension, imposition of a clinical hold (which has not been remedied) or material modification for or of any clinical trial or preclinical study that is described in the Registration Statement, the and the
Prospectus or the results of which are referred to in the Registration Statement and the Prospectus. Except as disclosed in the Registration Statement and the Prospectus, the Company has not received any written notices from any Governmental Entity,
and otherwise has no knowledge of, or reason to believe that any license, approval, permit or authorization to conduct any clinical trial of any potential product of the Company has been, will be or may be suspended, revoked, modified or limited.

  
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 (z)    Compliance with Laws. Except as disclosed in the Registration
Statement and the Prospectus, the Company: (A) is and at all times has been in compliance with all statutes, rules, or regulations, including the Federal Food Drug and Cosmetic Act, applicable to the ownership, testing, development, use,
marketing, labeling, promotion, offer for sale, or performance of any product being developed by the Company (“Applicable Laws”), except as would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Change; (B) has not received any FDA Form 483, warning letter, or other written correspondence or notice from the FDA or any other Governmental Entity alleging or asserting material noncompliance with any Applicable Laws or any
licenses, certificates, approvals, clearances, authorizations, permits and supplements or amendments thereto required by any such Applicable Laws (“Authorizations”); (C) possesses all material Authorizations and such Authorizations are
valid and in full force and effect and the Company is not in material violation of any term of any such Authorizations; (D) has not received written notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration
or other action from any Governmental Entity alleging that any product or activity is in material violation of any Applicable Laws or Authorizations; (E) has not received written notice that any Governmental Entity has taken, is taking or
intends to take action to limit, suspend, modify or revoke any Authorizations; and (F) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records, claims, submissions and supplements or
amendments as required by any Applicable Laws or Authorizations and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were complete and correct in all material respects on the
date filed (or were corrected or supplemented by a subsequent submission). The Company has not reported or received reports of any serious, unexpected adverse event associated with any investigational product of Company. 

(aa)    Investment Company Act. The Company is not and, after giving effect to the offering and the application of
the proceeds thereof as described in the Registration Statement and the Prospectus, will not be, required to register as an “investment company,” as defined in the Investment Company Act of 1940, as amended. 

(bb)    No Price Stabilization or Manipulation; Compliance with Regulation M. The Company has not taken, directly
or indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of the Common Shares or any other “reference security” (as defined in Rule 100 of Regulation M
under the Exchange Act (“Regulation M”)) whether to facilitate the sale or resale of the Shares or otherwise, and has taken no action which would directly or indirectly violate Regulation M. The Company acknowledges that the Agent
may engage in passive market making transactions in the Shares on the Principal Market in accordance with Regulation M. The Common Shares are “actively traded securities” (as defined in Regulation M). 

(cc)    Intellectual Property. The Company owns or possesses or has valid rights to use or can develop or acquire
on reasonable terms all patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, 

  
 11 

 
licenses, inventions, trade secrets and similar rights necessary for the conduct of the business of the Company as currently carried on and as described in the Registration Statement and the
Prospectus (“Intellectual Property Rights”). To the knowledge of the Company, no action or use by the Company necessary for the conduct of its business as currently carried on and as described in the Registration Statement and the
Prospectus will involve or give rise to any infringement of any Intellectual Property Rights of others. The Company has not received any written notice alleging any such infringement or conflict with asserted Intellectual Property Rights of others.
Except as would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change (A) to the knowledge of the Company, (i) except as may be disclosed in the Registration Statement and the Prospectus,
there are no third parties who have rights to any of the Intellectual Property Rights owned by the Company, except for customary reversionary rights of third-party licensors with respect to Intellectual Property; and (ii) there is no
infringement, misappropriation or violation by third parties of any of the Intellectual Property Rights owned by the Company; (B) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others
challenging the rights of the Company in or to any such Intellectual Property Rights, and the Company is unaware of any facts which would form a reasonable basis for any such claim; (C) the Intellectual Property Rights owned by the Company and,
to the knowledge of the Company, the Intellectual Property Rights licensed to the Company have not been adjudged by a court of competent jurisdiction invalid or unenforceable, in whole or in part, and there is no pending or, to the Company’s
knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property Rights, and the Company is unaware of any facts which would form a reasonable basis for any such claim;
(D) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others that the Company infringes, misappropriates or otherwise violates any Intellectual Property Rights or other proprietary rights
of others, the Company has not received any written notice of such claim and the Company is unaware of any other facts which would form a reasonable basis for any such claim; (E) to the Company’s knowledge, there are no material defects in
any of the patents or patent applications included in the Intellectual Property Rights owned by or licensed to the Company; and (F) to the Company’s knowledge, no employee of the Company is in or has ever been in violation of any term of
any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement or
any restrictive covenant to or with a former employer where the basis of such violation relates to such employee’s employment with the Company, or actions undertaken by the employee while employed with the Company. To the Company’s
knowledge, all material technical information developed by and belonging to the Company which has not been patented has been kept confidential. The Company is not a party to or bound by any options, licenses or agreements with respect to the
Intellectual Property Rights of any other person or entity that are required to be set forth in the Registration Statement and the Prospectus and are not materially described therein. The Registration Statement and the Prospectus contain in all
material respects the same description of the matters set forth in the preceding sentence. The Company has complied in all material respects with the terms of each agreement pursuant to which Intellectual Property Rights have been optioned or
licensed to the Company, and, to the Company’s knowledge, all such agreements are in full force and effect. None of the technology employed by the Company has been obtained or is being used by the Company in violation of any contractual
obligation binding on the Company or, to the Company’s knowledge, any of its officers, directors or employees, or otherwise in violation of the rights of any persons. 

  
 12 

 (dd)    Title to Real and Personal Property. The Company has good
and marketable title in fee simple (in the case of real property) to, or has valid and marketable rights to lease or otherwise use, all items of real or personal property which are material to the business of the Company, in each case free and clear
of all liens, encumbrances, security interests, claims and defects that (i) do not, singularly or in the aggregate, 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 or (ii) would not reasonably be expected, singularly or in the aggregate, to have a Material Adverse Change. 

(ee)    No Labor Dispute. No labor dispute with the employees of the Company exists or, to the knowledge of the
Company, is imminent. 
 (ff)    Compliance with ERISA. The Company 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 or its “ERISA
Affiliates” (as defined below) are in compliance in all material respects with ERISA. “ERISA Affiliate” means, with respect to the Company, 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 is a member. No “reportable event” (as defined under ERISA) has
occurred or is reasonably expected to occur with respect to any “employee benefit plan” established or maintained by the Company or any of its ERISA Affiliates. No “employee benefit plan” established or maintained by the Company
or any of its ERISA Affiliates, if such “employee benefit plan” were terminated, would have any material “amount of unfunded benefit liabilities” (as defined under ERISA). Neither the Company nor any of its ERISA Affiliates has
incurred or reasonably expects to incur any material liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the Code.
Each “employee benefit plan” established or maintained by the Company or any of its ERISA Affiliates that is intended to be qualified under Section 401(a) of the Code is so qualified and, to the knowledge of the Company, nothing has
occurred, whether by action or failure to act, which would cause the loss of such qualification. 

(gg)    Environmental Laws and Hazardous Materials. Except as otherwise described in the Registration Statement,
and the Prospectus, and except as would not, individually or in the aggregate, result in a Material Adverse Change, the Company is in compliance with all foreign, federal, state and local rules, laws and regulations relating to the use, treatment,
storage and disposal of hazardous or toxic substances or waste and protection of health and safety or the environment which are applicable to their businesses (“Environmental Laws”). There has been no storage, generation,
transportation, handling, treatment, disposal, discharge, emission, or other release of any kind of toxic or other wastes or other hazardous substances by, due to, or caused by the Company (or, to the Company’s knowledge, any other entity for
whose acts or omissions the Company is or may otherwise be liable) upon any of the property now or previously owned or leased by the Company, or upon any other property, in violation of any law, statute, ordinance, rule, regulation, order, judgment,
decree or permit or which would, under any law, statute, ordinance, rule (including rule of common law), regulation, order, judgment, decree or permit, give rise to any liability, which would individually or in the aggregate, result in a Material
Adverse Change. 

  
 13 

 (hh)    Taxes. The Company has filed all material returns (as
hereinafter defined) required to be filed with taxing authorities prior to the date hereof or has duly obtained extensions of time for the filing thereof. The Company has paid all taxes (as hereinafter defined) shown as due on such returns that were
filed and has paid all taxes imposed on or assessed against the Company. The provisions for taxes payable, if any, shown on the financial statements filed with or as part of the Registration Statement are sufficient for all accrued and unpaid taxes,
whether or not disputed, and for all periods to and including the dates of such consolidated financial statements. Except as disclosed in writing to the Agent, (i) no issues have been raised (and are currently pending) by any taxing authority
in connection with any of the returns or taxes asserted as due from the Company, and (ii) no waivers of statutes of limitation with respect to the returns or collection of taxes have been given by or requested from the Company. The term
“taxes” mean all federal, state, local, foreign and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, excise,
severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, fees, assessments or charges of any kind whatever, together with any interest and any penalties, additions to tax or additional amounts with respect
thereto. The term “returns” means all returns, declarations, reports, statements and other documents required to be filed in respect to taxes. 

(ii)    Insurance. The Company carries or is entitled to the benefits of insurance, with reputable insurers, and in
such amounts and covering such risks which the Company believes are reasonably adequate, and all such insurance is in full force and effect. The Company has no reason to believe that it will not be able (i) to renew its existing insurance
coverage as and when such policies expire or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse
Change. 
 (jj)    Accounting Controls. The Company maintains a system of “internal control over financial
reporting” (as defined under Rules 13a-15 and 15d-15 under the Exchange Act Regulations) that, if any, have been designed by, or under the supervision of, their
respective principal executive and principal financial officers, or persons performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with GAAP, including, but not limited to, 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. Except as disclosed in the Registration
Statement and the Prospectus, the Company is not aware of any material weaknesses, if any, in its internal controls. The Company’s auditors and the Audit Committee of the Board of Directors of the Company have been advised of: (i) all
significant deficiencies and 

  
 14 

 
material weaknesses in the design or operation of internal controls over financial reporting which are known to the Company’s management and that have adversely affected or are reasonably
likely to adversely affect the Company’ ability to record, process, summarize and report financial information; and (ii) any fraud, if any, known to the Company’s management, whether or not material, that involves management or other
employees who have a significant role in the Company’s internal controls over financial reporting. 

(kk)    Disclosure Controls. The Company has developed and currently maintains disclosure controls and procedures
that will comply with Rule 13a-15 or 15d-15 under the Exchange Act applicable to it, and such controls and procedures are effective to ensure that all material
information concerning the Company will be made known on a timely basis to the individuals responsible for the preparation of the Company’s Exchange Act filings and other public disclosure documents. 

(ll)    Officers’ Certificate. Any certificate signed by any duly authorized officer of the Company and
delivered to you or to counsel for the Agent shall be deemed a representation and warranty by the Company to the Agent as to the matters covered thereby. 

(mm)    Subsidiaries. The Company has no direct or indirect subsidiaries. 

(nn)    Related Party Transactions. There are no business relationships or related party transactions involving the
Company or any other person required to be described in the Registration Statement and the Prospectus that have not been described as required. 

(oo)    Registration Rights of Third Parties. Except as has been previously validly waived or as set forth in the
Registration Statement and the Prospectus, no holders of any securities of the Company or any rights exercisable for or convertible or exchangeable into securities of the Company have the right to require the Company to register any such securities
of the Company under the Securities Act or to include any such securities in a registration statement to be filed by the Company. 

(pp)    Margin Securities. The Company owns no “margin securities” as that term is defined in Regulation
U of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), and none of the proceeds of Offering will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for
the purpose of reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the Common Shares to be considered a “purpose credit” within the
meanings of Regulation T, U or X of the Federal Reserve Board. 
 (qq)    Finder’s Fees. Except as described
in the Registration Statement and the Prospectus, there are no claims, payments, arrangements, agreements or understandings relating to the payment of a finder’s, consulting or origination fee by the Company or, to the Company’s knowledge,
any insider with respect to the sale of the Shares hereunder or any other arrangements, agreements or understandings of the Company or, to the Company’s knowledge, any of its stockholders that may affect the Agent’s compensation, as
determined by FINRA. 

  
 15 

 (rr)    Listing. The Company is subject to and in compliance in
all material respects with the reporting requirements of Section 13 or Section 15(d) of the Exchange Act. The Common Shares are registered pursuant to Section 12(b) or 12(g) of the Exchange and is listed on The Nasdaq Capital Market
(the “Exchange”), and the Company has taken no action designed to, or reasonably likely to have the effect of, terminating the registration of the Common Shares under the Exchange Act or delisting the Common Shares
from the Exchange, nor has the Company received any notification that the Commission or FINRA is contemplating terminating such registration or listing. 

(ss)    Stop Orders, etc. Neither the Commission nor, to the Company’s knowledge, any state regulatory
authority has issued any order preventing or suspending the use of the Registration Statement or the Prospectus, or has instituted or, to the Company’s knowledge, threatened to institute, any proceedings with respect to such an order. The
Company has complied in all material respects with each request (if any) from the Commission for additional information. 

(tt)    Board of Directors. The qualifications of the persons serving as board members and the overall composition
of the board comply with the Exchange Act, the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder (the “Sarbanes-Oxley Act”) applicable to the Company and the listing rules of the Exchange. At least one member of the
Audit Committee of the Board of Directors of the Company qualifies as an “audit committee financial expert,” as such term is defined under Regulation S-K and the listing rules of the Exchange. In
addition, at least a majority of the persons serving on the Board of Directors qualify as “independent,” as defined under the listing rules of the Exchange. 

(uu)    Sarbanes-Oxley Compliance. The Company is in material compliance with the provisions of the Sarbanes-Oxley
Act applicable to it, and has implemented or will implement such programs and taken reasonable steps to ensure the Company’s future compliance (not later than the relevant statutory and regulatory deadlines therefor) with all of the material
provisions of the Sarbanes-Oxley Act 
 (vv)    Payments Within Twelve (12) Months. Except as
described in the Registration Statement and the Prospectus, the Company has not made any direct or indirect payments (in cash, securities or otherwise) to: (i) any person, as a finder’s fee, consulting fee or otherwise, in consideration of
such person raising capital for the Company or introducing to the Company persons who raised or provided capital to the Company; (ii) any FINRA member; or (iii) any person or entity that has any direct or indirect affiliation or
association with any FINRA member, within the twelve (12) months prior to the date hereof, other than the payment to the Agent as provided hereunder in connection with the offering of the Shares. 

(ww)    No Improper Practices. (i) Neither the Company nor, to the Company’s knowledge, any director,
officer, or employee of the Company, agent, affiliate or other person acting on behalf of the Company has, in the past five years, made any unlawful contributions to any candidate for any political office (or failed fully to disclose any
contribution in violation of applicable law) or made any contribution or other payment to any official of, or candidate for, any federal, state, municipal, or foreign office or other person charged with similar public or quasi-public duty in
violation of any applicable law or of the character required to be disclosed in the Prospectus; (ii) no relationship, direct or indirect, exists between or among the Company or, to the Company’s knowledge, any affiliate of the Company, on
the one hand, and the directors, 

  
 16 

 
officers and stockholders of the Company, on the other hand, that is required by the Securities Act to be described in the Registration Statement and the Prospectus that is not so described;
(iii) no relationship, direct or indirect, exists between or among the Company or any affiliate of the Company, on the one hand, and the directors, officers, or stockholders of the Company, on the other hand, that is required by the rules of
FINRA to be described in the Registration Statement the Prospectus that is not so described; (iv) except as described in the Registration Statement and the Prospectus, there are no material outstanding loans or advances or material guarantees
of indebtedness by the Company to or for the benefit of any of their respective officers or directors or any of the members of the families of any of them; and (v) the Company has not offered, or caused any placement agent to offer, Common
Shares to any person with the intent to influence unlawfully (A) a customer or supplier of the Company to alter the customer’s or supplier’s level or type of business with the Company or (B) a trade journalist or publication to
write or publish favorable information about the Company or any of their respective products or services, and, (vi) neither the Company nor, to the Company’s knowledge, any director, officer or employee of the Company, agent, affiliate or
other person acting on behalf of the Company has (A) violated or is in violation of any applicable provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or any other applicable anti-bribery or anti-corruption law
(collectively, “Anti-Corruption Laws”), (B) unlawfully promised, offered, provided, attempted to provide or authorized the provision of anything of value, directly or indirectly, to any person for the purpose of obtaining or
retaining business, influencing any act or decision of the recipient or securing any improper advantage, or (C) made any payment of funds of the Company or received or retained any funds in violation of any Anti-Corruption Laws. 

(xx)    Industry Data. The statistical and market-related data included in each of the Registration Statement and
the Prospectus are based on or derived from sources that the Company reasonably and in good faith believes are reliable and accurate or represent the Company’s good faith estimates that are made on the basis of data derived from such sources.

 (yy)    Operations. The operations of the Company 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, the money laundering statutes of all jurisdictions to which the Company is subject, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the “Money Laundering Laws”); and no action, suit or proceeding by or before any
Governmental Entity involving the Company with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened. 

(zz)    Sanctions. (i) The Company represents that, neither the Company nor, to the Company’s knowledge,
any director, officer, employee, agent, affiliate or representative of the Company, is a government, individual, or entity (in this paragraph (zz), “Person”) that is, or is owned or controlled by a Person that is: 

 

	 	A.	 the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of
Foreign Assets Control (“OFAC”), the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authorities, including, without limitation, designation on OFAC’s Specially
Designated Nationals and Blocked Persons List or OFAC’s Foreign Sanctions Evaders List (as amended, collectively, “Sanctions”), nor 

  
 17 

	 	B.	 located, organized or resident in a country or territory that is the subject of Sanctions that broadly prohibit
dealings with that country or territory (including, without limitation, Cuba, Iran, North Korea, Syria and the Crimea Region of the Ukraine) (the “Sanctioned Countries”). 

(ii) The Company represents and covenants that it will not, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make
available such proceeds to any subsidiary, joint venture partner or other Person: 
  

	 	A.	 to fund or facilitate any activities or business of or with any Person or in any country or territory that, at
the time of such funding or facilitation, is the subject of Sanctions or is a Sanctioned Country; or 

  

	 	B.	 in any other manner that will result in a violation of Sanctions by any Person (including any Person
participating in the offering, whether as underwriter, advisor, investor or otherwise). 

 (iii) The Company represents and covenants
that, for the past 5 years, it has not engaged in, is not now engaging in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of
Sanctions or is or was a Sanctioned Country. 
 (aaa)    Transactions Affecting Disclosure to FINRA. 

 

	 	A.	 Use of Proceeds. None of the net proceeds of the offering will be paid by the Company to any
participating FINRA member or its affiliates, except as specifically authorized herein. 

  

	 	B.	 FINRA Affiliation. Except as set forth in the Registration Statement and the Prospectus, there is no
(i) officer or director of the Company, (ii) beneficial owner of 5% or more of any class of the Company’s securities or (iii) beneficial owner of the Company’s unregistered equity securities which were acquired during the 180-day period immediately preceding the filing of the Registration Statement that is an affiliate or associated person of a FINRA member participating in the Offering (as determined in accordance with the rules and
regulations of FINRA). 

 (bbb)    Cybersecurity. (i) Except as may be included or
incorporated by reference in the Registration Statement and the Prospectus, (x) to the Company’s knowledge, there has been no material security breach or other material compromise of or relating to any of the Company’s information
technology and computer systems, networks, hardware, software, data (including the data of their respective customers, employees, suppliers, vendors and any third party data maintained by or on behalf of them), equipment or technology (collectively,
“IT Systems and Data”) and (y) the Company has not been notified of, and have no knowledge of any event or condition that would reasonably be expected to result in, any material security breach or other material compromise to
their IT Systems and Data; (ii) the Company is presently in compliance 

  
 18 

 
with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual
obligations relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification, except as would not, in the case of this clause (ii),
individually or in the aggregate, result in a Material Adverse Change; and (iii) the Company has implemented backup and disaster recovery technology consistent with industry standards and practices 

(ccc)    Market Capitalization. At the time the Registration Statement was originally declared effective, the
Company met the then applicable requirements for the use of Form S-3 under the Securities Act, including, but not limited to, General Instruction I.B.1 or I.B.6 of Form
S-3. The Company satisfies the pre-1992 eligibility requirements for the use of a registration statement on Form S-3 in
connection with this offering (the pre-1992 eligibility requirements for the use of the registration statement on Form S-3 include (i) having a non-affiliate, public common equity float of at least $150 million or a non-affiliate, public common equity float of at least $100 million and annual trading volume
of at least three million shares and (ii) having been subject to the Exchange Act reporting requirements for a period of 36 months). The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has not been a shell
company for at least 12 calendar months previously. 
 Any certificate signed by any officer or representative of the Company or any of its
subsidiaries and delivered to the Agent or counsel for the Agent in connection with an issuance of Shares shall be deemed a representation and warranty by the Company to the Agent as to the matters covered thereby on the date of such certificate.

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

Section 3. ISSUANCE AND SALE OF COMMON SHARES 

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

(b)    Mechanics of Issuances. 

(i) Issuance Notice. Upon the terms and subject to the conditions set forth herein, on any Trading Day during the Agency Period on
which the conditions set forth in Section 5(a) and Section 5(b) shall have been satisfied, the Company may exercise its right to request an issuance of Shares by delivering to the Agent an Issuance
Notice; provided, however, that (A) in no event may the Company deliver an Issuance Notice to the extent that (I) the sum of (x) the aggregate Sales Price of the requested Issuance Amount, plus (y) the aggregate Sales
Price of all Shares 

  
 19 

 
issued under all previous Issuance Notices effected pursuant to this Agreement, would exceed the Maximum Program Amount; and (B) prior to delivery of any Issuance Notice, the period set
forth for any previous Issuance Notice shall have expired or been terminated. An Issuance Notice shall be considered delivered on the Trading Day that it is received by e-mail to the persons set forth in
Schedule A hereto and confirmed by the Company by telephone (including a voicemail message to the persons so identified), with the understanding that, with adequate prior written notice, the Agent may modify the list of such persons from time to
time. 
 (ii)    Agent Efforts. Upon the terms and subject to the conditions set forth in this Agreement, upon
the receipt of an Issuance Notice, the Agent will use its commercially reasonable efforts consistent with its normal sales and trading practices to place the Shares with respect to which the Agent has agreed to act as sales agent, subject to, and in
accordance with the information specified in, the Issuance Notice, unless the sale of the Shares described therein has been suspended, cancelled or otherwise terminated in accordance with the terms of this Agreement. For the avoidance of doubt, the
parties to this Agreement may modify an Issuance Notice at any time provided they both agree in writing to any such modification. 

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

(iv)    Confirmation to the Company. If acting as sales agent hereunder, the Agent will provide written
confirmation to the Company no later than the opening of the Trading Day next following the Trading Day on which it has placed Shares hereunder setting forth the number of shares sold on such Trading Day, the corresponding Sales Price and the
Issuance Price payable to the Company in respect thereof. 
 (v)    Settlement. Each issuance of Shares will be
settled on the applicable Settlement Date for such issuance of Shares and, subject to the provisions of Section 5, on or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically
transfer the Shares being sold by crediting the Agent or its designee’s account at The Depository Trust Company through its Deposit/Withdrawal At Custodian (DWAC) System, or by such other means of delivery as may be mutually agreed upon by the
parties hereto and, upon receipt of such Shares, which in all cases shall be freely tradable, transferable, registered shares in good deliverable form, the Agent will deliver, by wire transfer of immediately available funds, the related Issuance
Price in same day funds delivered to an account designated by the Company prior to the Settlement Date. The Company may sell Shares to the Agent as principal at a price agreed upon at each relevant time Shares are sold pursuant to this Agreement
(each, a “Time of Sale”). 

  
 20 

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

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

(viii)    Material Non-Public Information. Notwithstanding any other
provision of this Agreement, the Company and the Agent agree that the Company shall not deliver any Issuance Notice to the Agent, and the Agent shall not be obligated to place any Shares, during any period in which the Company is in possession of
material non-public information. 
 (c)    Fees. As compensation for
services rendered, the Company shall pay to the Agent, on the applicable Settlement Date, the Selling Commission for the applicable Issuance Amount (including with respect to any suspended or terminated sale pursuant to
Section 3(b)(vi)) by the Agent deducting the Selling Commission from the applicable Issuance Amount. 

(d)    Expenses. The Company agrees to pay all costs, fees and expenses incurred in connection with the performance
of its obligations hereunder and in connection with the transactions contemplated hereby, including without limitation (i) all expenses incident to the issuance and delivery of the Shares (including all printing and engraving costs);
(ii) all fees and expenses of the registrar and transfer agent of the Shares; (iii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Shares; (iv) all fees and expenses of the
Company’s counsel, independent public or certified public accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Registration Statement
(including financial statements, exhibits, schedules, consents and certificates of experts), the Prospectus, any Free Writing Prospectus (as defined below) prepared by or on behalf of, used by, or referred to by the Company, and all amendments and
supplements thereto, and this Agreement; (vi) all filing fees, attorneys’ fees and 

  
 21 

 
expenses incurred by the Company or the Agent in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Shares for
offer and sale under the state securities or blue sky laws or the provincial securities laws of Canada, and, if requested by the Agent, preparing and printing a “Blue Sky Survey” or memorandum and a “Canadian wrapper,, and any
supplements thereto, advising the Agent of such qualifications, registrations, determinations and exemptions; (vii) the reasonable fees and disbursements of the Agent’s counsel, including the reasonable fees and expenses of counsel
for the Agent in connection with, FINRA review, if any, and approval of the Agent’s participation in the offering and distribution of the Shares; (viii) the filing fees incident to FINRA review, if any; (ix) the costs and expenses of
the Company relating to investor presentations on any “road show” undertaken in connection with the marketing of the offering of the Shares, including, without limitation, expenses associated with the preparation or dissemination of any
electronic road show, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, travel and lodging
expenses of the representatives, employees and officers of the Company and of the Agent and any such consultants, and the cost of any aircraft chartered in connection with the road show; and (x) the fees and expenses associated with listing the
Shares on the Principal Market. The fees and disbursements of Agent’s counsel pursuant to subsections (vi) and (vii) above shall not exceed $50,000 in the aggregate. 

Section 4. ADDITIONAL COVENANTS 
 The
Company covenants and agrees with the Agent as follows, in addition to any other covenants and agreements made elsewhere in this Agreement: 

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

(b)    Securities Act Compliance. After the date of this Agreement, the Company shall promptly advise the Agent in
writing (i) of the receipt of any comments of, or requests for additional or supplemental information from, the Commission; (ii) of the time and date of any filing of any post-effective amendment to the Registration Statement, any Rule
462(b) Registration Statement or any amendment or supplement to the Prospectus, any Free Writing Prospectus; (iii) of the time and date that any post-effective amendment to the Registration Statement or any Rule 462(b) Registration Statement
becomes effective; and (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto, any Rule 462(b) Registration Statement or any

  
 22 

 
amendment or supplement to the Prospectus or of any order preventing or suspending the use of any Free Writing Prospectus or the Prospectus, or of any proceedings to remove, suspend or terminate
from listing or quotation the Common Shares from any securities exchange upon which they are listed for trading or included or designated for quotation, or of the threatening or initiation of any proceedings for any of such purposes. If the
Commission shall enter any such stop order at any time, the Company will use its reasonable best efforts to obtain the lifting of such order as soon as practicable. Additionally, the Company agrees that it shall comply with the provisions of Rule
424(b) and Rule 433, as applicable, under the Securities Act and will use its reasonable efforts to confirm that any filings made by the Company under such Rule 424(b) or Rule 433 were received in a timely manner by the Commission. 

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

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

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

  
 23 

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

(g)    Filing of Agent Free Writing Prospectuses. The Company shall not take any action that would result in the
Agent or the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf of the Agent that the Agent otherwise would not have been required to file
thereunder. 
 (h)    Copies of Registration Statement and Prospectus. After the date of this Agreement through
the last time that a prospectus is required by the Securities Act (including, without limitation, pursuant to Rule 173(d)) to be delivered in connection with sales of the Shares, the Company agrees to furnish the Agent with copies (which may be
electronic copies) of the Registration Statement and each amendment thereto, and with copies of the Prospectus and each amendment or supplement thereto in the form in which it is filed with the Commission pursuant to the Securities Act or
Rule 424(b) under the Securities Act, both in such quantities as the Agent may reasonably request from time to time; and, if the delivery of a prospectus is required under the Securities Act or under the blue sky or securities laws of any
jurisdiction at any time on or prior to the applicable Settlement Date for any period set forth in an Issuance Notice in connection with the offering or sale of the Shares and if at such time any event has occurred as a result of which the
Prospectus as then amended or supplemented would include an 

  
 24 

 
untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such
Prospectus is delivered, not misleading, or, if for any other reason it is necessary during such same period to amend or supplement the Prospectus or to file under the Exchange Act any document incorporated by reference in the Prospectus in order to
comply with the Securities Act or the Exchange Act, to notify the Agent and to request that the Agent suspend offers to sell Shares (and, if so notified, the Agent shall cease such offers as soon as practicable); and if the Company decides to amend
or supplement the Registration Statement or the Prospectus as then amended or supplemented, to advise the Agent promptly by telephone (with confirmation in writing) and to prepare and cause to be filed promptly with the Commission an amendment or
supplement to the Registration Statement or the Prospectus as then amended or supplemented that will correct such statement or omission or effect such compliance; provided, however, that if during such same period the Agent is required to deliver a
prospectus in respect of transactions in the Shares, the Company shall promptly prepare and file with the Commission such an amendment or supplement. 

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

(j)    Earnings Statement. As soon as practicable, the Company will make generally available to its security
holders and to the Agent an earnings statement (which need not be audited) covering a period of at least twelve months beginning with the first fiscal quarter of the Company occurring after the date of this Agreement which shall satisfy the
provisions of Section 11(a) of the Securities Act and Rule 158 under the Securities Act. 
 (k)    Listing;
Reservation of Shares. (a) The Company will use commercially reasonable efforts to maintain the listing of the Shares on the Principal Market; and (b) the Company will reserve and keep available at all times, free of preemptive rights,
Shares for the purpose of enabling the Company to satisfy its obligations under this Agreement. 
 (l)    Transfer
Agent. The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Shares. 

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

  
 25 

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

(o)    Deliverables at Triggering Event Dates; Certificates. The Company agrees that on or prior to the date of the
first Issuance Notice and, during the term of this Agreement after the date of the first Issuance Notice, upon: 
 (A) the filing of the
Prospectus or the amendment or supplement of any Registration Statement or Prospectus (other than a prospectus supplement relating solely to an offering of securities other than the Shares or a prospectus filed pursuant to Section 4(a)(ii)(B)),
by means of a post-effective amendment, sticker or supplement, but not by means of incorporation of documents by reference into the Registration Statement or Prospectus; 

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

(C) the filing with the Commission of a current report on Form 8-K of the Company containing amended
financial information (other than information “furnished” pursuant to Item 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K
relating to reclassification of certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) that is material to the offering of securities of the Company in the Agent’s reasonable
discretion; 
 (any such event, a “Triggering Event Date”), the Company shall furnish the Agent (but in the case of clause (C) above
only if the Agent reasonably determines that the information contained in such current report on Form 8-K of the Company is material) with a certificate as of the Triggering Event Date, in the form and
substance satisfactory to the Agent and its counsel, substantially similar to the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement and the Prospectus as amended or supplemented,
(A) confirming that the representations and warranties of the Company contained in this Agreement are true and correct, (B) that the Company has performed all of its obligations hereunder to be performed on or prior to the date of such
certificate and as to the matters set 

  
 26 

 
forth in Section 5(a)(i) hereof, and (C) containing any other certification that the Agent shall reasonably request. The requirement to provide a certificate under
this Section 4(o) shall be waived for any Triggering Event Date occurring at a time when no Issuance Notice is pending or a suspension is in effect, which waiver shall continue until the earlier to occur of the date the
Company delivers instructions for the sale of Shares hereunder (which for such calendar quarter shall be considered a Triggering Event Date) and the next occurring Triggering Event Date. Notwithstanding the foregoing, if the Company subsequently
decides to sell Shares following a Triggering Event Date when a suspension was in effect and did not provide the Agent with a certificate under this Section 4(o), then before the Company delivers the instructions for the sale of Shares or the
Agent sells any Shares pursuant to such instructions, the Company shall provide the Agent with a certificate in conformity with this Section 4(o) dated as of the date that the instructions for the sale of Shares are issued. 

(p)    Legal Opinions. On or prior to the date of the first Issuance Notice and within five (5) Trading Days
of each Triggering Event Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable and excluding the date of this Agreement, a negative assurances letter and the
written legal opinion of Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP, counsel to the Company, and Dechert LLP, intellectual property counsel to the Company, each dated the date of delivery, in form and substance reasonably
satisfactory to Agent and its counsel, substantially similar to the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided,
however, the Company shall be required to furnish no more than one opinion and negative assurances letter hereunder per calendar quarter. In lieu of such opinions for subsequent periodic filings, in the discretion of the Agent, the Company may
furnish a reliance letter from such counsel to the Agent, permitting the Agent to rely on a previously delivered opinion letter, modified as appropriate for any passage of time or Triggering Event Date (except that statements in such prior opinion
shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented as of such Triggering Event Date). 

(q)    Comfort Letter. On or prior to the date of the first Issuance Notice and within five (5) Trading Days
of each Triggering Event Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable and excluding the date of this Agreement, the Company shall cause BDO USA, LLP, the
independent registered public accounting firm who has audited the financial statements included or incorporated by reference in the Registration Statement, to furnish the Agent a comfort letter, dated the date of delivery, in form and substance
reasonably satisfactory to the Agent and its counsel, substantially similar to the form previously provided to the Agent and its counsel; provided, however, that any such comfort letter will only be required on the Triggering Event Date specified to
the extent that it contains financial statements filed with the Commission under the Exchange Act and incorporated or deemed to be incorporated by reference into a Prospectus. If requested by the Agent, the Company shall also cause a comfort letter
to be furnished to the Agent within ten (10) Trading Days of the date of occurrence of any material transaction or event requiring the filing of a current report on Form 8-K containing material amended
financial information of the Company, including the restatement of the Company’s financial statements. The Company shall be required to furnish no more than one comfort letter hereunder per calendar quarter. 

  
 27 

 (r)    Secretary’s Certificate. On or prior to
the date of the first Issuance Notice and within five (5) Trading Days of each Triggering Event Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable and
excluding the date of this Agreement, the Company shall furnish the Agent a certificate executed by the Secretary of the Company, signing in such capacity, dated the date of delivery (i) certifying that attached thereto are true and complete
copies of the resolutions duly adopted by the Board of Directors of the Company authorizing the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby (including, without limitation, the issuance of the
Shares pursuant to this Agreement), which authorization shall be in full force and effect on and as of the date of such certificate, (ii) certifying and attesting to the office, incumbency, due authority and specimen signatures of each Person
who executed this Agreement for or on behalf of the Company, and (iii) containing any other certification that the Agent shall reasonably request. 

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

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

(u)    Market Activities. The Company will not take, directly or indirectly, any action designed to or that might
be reasonably expected to cause or result in stabilization or manipulation of the price of the Shares or any other reference security, whether to facilitate the sale or resale of the Shares or otherwise, and the Company will, and shall use
commercially reasonable efforts to cause each of its affiliates to, comply with all applicable provisions of Regulation M. If the limitations of Rule 102 of Regulation M (“Rule 102”) do not apply with respect to the Shares or
any other reference security pursuant to any exception set forth in Section (d) of Rule 102, then promptly upon notice from the Agent (or, if later, at the time stated in the notice), the Company will, and shall use commercially
reasonable efforts to cause each of its affiliates to, comply with Rule 102 as though such exception were not available but the other provisions of Rule 102 (as interpreted by the Commission) did apply. The Company shall promptly notify
the Agent if it no longer meets the requirements set forth in Section (d) of Rule 102.  
 (v)    Notice
of Other Sale. Without the written consent of the Agent, the Company will not, directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Shares or securities convertible into or
exchangeable for Common Shares (other than Shares hereunder), warrants or any rights to purchase or acquire Common Shares, during the period beginning on the third Trading Day immediately prior to the date on which any Issuance Notice is delivered
to the Agent hereunder and ending on the third Trading Day immediately following the Settlement Date with respect to Shares sold pursuant to such Issuance Notice; provided, however, that such restriction will not be required in connection with the
Company’s (i) issuance or sale of Common Shares, options to purchase Common Shares or Common Shares issuable upon the exercise of options or other equity awards pursuant to any 

  
 28 

 
employee or director share option, incentive or benefit plan, share purchase or ownership plan, long-term incentive plan, dividend reinvestment plan, inducement award under the Principal Market
rules or other compensation plan of the Company or its subsidiaries, as in effect on the date of this Agreement, (ii) issuance or sale of Common Shares issuable upon exchange, conversion or redemption of securities or the exercise or vesting of
warrants, options or other equity awards outstanding at the date of this Agreement, (iii) issuance or sale of Common Shares or securities convertible into or exchangeable for Common Shares as consideration for mergers, acquisitions, other
similar business combinations, joint ventures or strategic alliances and other business transactions (including, without limitation, collaborations or arrangement involving research and/or development activities) occurring after the date of this
Agreement which are not used for capital raising purposes and (iv) modification of any outstanding options, warrants of any rights to purchase or acquire Common Shares. 

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

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

 

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

  

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

  

	 	(iii)	 Material Adverse Changes. Except as disclosed in the Registration Statement or Prospectus and the Time
of Sale Information, (a) in the judgment of the Agent there shall not have occurred any Material Adverse Change; and (b) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential
downgrading or of any review for a possible change that 

  
 29 

	 	
does not indicate the direction of the possible change, in the rating accorded any securities of the Company or any of its subsidiaries by any “nationally recognized statistical rating
organization” as such term is defined for purposes of Section 3(a)(62) of the Exchange Act. 

  

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

(b)    Documents Required to be Delivered on each Issuance Notice Date. The Agent’s obligation to use its
commercially reasonable efforts to place Shares hereunder shall additionally be conditioned upon the delivery to the Agent on or before the Issuance Notice Date of a certificate in form and substance reasonably satisfactory to the Agent, executed by
the Chief Executive Officer, President or Chief Financial Officer of the Company, to the effect that all conditions to the delivery of such Issuance Notice shall have been satisfied as at the date of such certificate (which certificate shall not be
required if the foregoing representations shall be set forth in the Issuance Notice). 
 (c)    No Misstatement or
Material Omission. Agent shall not have advised the Company that the Registration Statement, the Prospectus or the Times of Sales Information, or any amendment or supplement thereto, contains an untrue statement of fact that in the Agent’s
reasonable opinion is material, or omits to state a fact that in the Agent’s reasonable opinion is material and is required to be stated therein or is necessary to make the statements therein not misleading. 

  
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 Section 6. INDEMNIFICATION AND CONTRIBUTION 

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

(b)    Indemnification of the Company, its Directors and Officers. The Agent agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers who signed the Registration Statement and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act against any loss, claim, damage, liability
or expense, as incurred, to which the Company or any such director, officer or controlling person may become subject, under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or the laws or regulations of
foreign jurisdictions where Shares have been offered or sold or at common law or otherwise (including in settlement of any litigation), arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or the omission or alleged omission therefrom of a material fact required to be
stated therein or 

  
 31 

 
necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any Free Writing Prospectus that the Company
has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of the Securities Act or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading; but, for each of (i) and (ii) above, only to the extent arising out of or based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company by the Agent expressly for use in the Registration Statement, any such Free Writing Prospectus or the Prospectus (or any amendment
or supplement thereto), it being understood and agreed that the only such information furnished by the Agent to the Company consists of the information set forth in the eighth paragraph under the caption “Plan of Distribution” in the
Prospectus, and to reimburse the Company and each such director, officer and controlling person for any and all expenses (including the fees and disbursements of one counsel chosen by the Company) as such expenses are reasonably incurred by the
Company or such officer, director or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action. The indemnity agreement set forth in this
Section 6(b) shall be in addition to any liabilities that the Agent or the Company may otherwise have. 

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

  
 32 

 
liable for the fees and expenses of more than one separate counsel (together with local counsel), representing the indemnified parties who are parties to such action), which counsel (together
with any local counsel) for the indemnified parties shall be selected by the indemnified party (in the case of counsel for the indemnified parties referred to in Sections 6(a) and 6(b) above), (ii) the indemnifying party
shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action or (iii) the indemnifying party has authorized in writing
the employment of counsel for the indemnified party at the expense of the indemnifying party, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party and shall be paid as they are incurred. 

(d)    Settlements. The indemnifying party under this Section 6 shall not be liable for
any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim,
damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of
counsel as contemplated by Section 6(c) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into
more than 30 days after receipt by such indemnifying party of the aforesaid request; and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No
indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified
party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent includes an unconditional release of such indemnified party from all liability on
claims that are the subject matter of such action, suit or proceeding. 
 (e)    Contribution. If the
indemnification provided for in this Section 6 is for any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses
referred to therein, then each indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in
such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and the Agent, on the other hand, from the offering of the Shares pursuant to this Agreement; or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and the Agent,
on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company, on the
one hand, and the Agent, on the other hand, in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total gross proceeds from the offering of the Shares (before
deducting expenses) received by the Company bear to the total commissions received by the Agent. The relative fault of the Company, on the one hand, and the 

  
 33 

 
Agent, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state
a material fact relates to information supplied by the Company, on the one hand, or the Agent, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. 
 The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above
shall be deemed to include, subject to the limitations set forth in Section 6(c), any reasonable and documented legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending
any action or claim. The provisions set forth in Section 6(c) with respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this Section 6(e);
provided, however, that no additional notice shall be required with respect to any action for which notice has been given under Section 6(c) for purposes of indemnification. 

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

Notwithstanding the provisions of this Section 6(e), the Agent shall not be required to contribute any amount in
excess of the agent fees received by the Agent in connection with the offering contemplated hereby. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6(e), each officer and employee of the Agent and each person, if any, who controls the Agent within the meaning of the
Securities Act or the Exchange Act shall have the same rights to contribution as the Agent, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within
the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as the Company. 
 Section 7.
TERMINATION & SURVIVAL 
 (a)    Term. Subject to the provisions of this
Section 7, the term of this Agreement shall continue from the date of this Agreement until the end of the Agency Period, unless earlier terminated by the parties to this Agreement pursuant to this
Section 7. 
 (b)    Termination; Survival Following Termination. 

 

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

  
 34 

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

 Section 8. MISCELLANEOUS 

(a)    Press Releases and Disclosure. The Company may issue a press release describing the material terms of the
transactions contemplated hereby as soon as practicable following the date of this Agreement, and may file with the Commission a Current Report on Form 8-K, with this Agreement attached as an exhibit
thereto, describing the material terms of the transactions contemplated hereby, and the Company shall consult with the Agent prior to making such disclosures, and the parties hereto shall use all commercially reasonable efforts, acting in good
faith, to agree upon a text for such disclosures that is reasonably satisfactory to all parties hereto. No party hereto shall issue thereafter any press release or like public statement (including, without limitation, any disclosure required in
reports filed with the Commission pursuant to the Exchange Act) related to this Agreement or any of the transactions contemplated hereby without the prior written approval of the other party hereto, except as may be necessary or appropriate in the
reasonable opinion of the party seeking to make disclosure to comply with the requirements of applicable law or stock exchange rules and except for the disclosure required pursuant to Section 4(a) of this Agreement in the Company’s
quarterly reports on Form 10-Q or annual reports on Form 10-K. If any such press release or like public statement is so required, the party making such disclosure shall
consult with the other party prior to making such disclosure, and the parties shall use all commercially reasonable efforts, acting in good faith, to agree upon a text for such disclosure that is reasonably satisfactory to all parties hereto. 

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

  
 35 

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

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

Jefferies LLC 
 520 Madison
Avenue 
 New York, NY 10022 

Facsimile: (646) 786-5719 

Attention: General Counsel 
 with
a copy (which shall not constitute notice) to: 
 Cooley LLP 

1114 Avenue of the Americas 
 New
York, NY 10036 
 Facsimile: (212) 479-6275 

Attention: Daniel I. Goldberg, Esq. 

If to the Company: 
 Aldeyra
Therapeutics, Inc. 
 131 Hartwell Avenue, Suite 320 

Lexington, MA 02421 
 Facsimile: 339-674-6495 
 Attention: Chief Financial Officer 

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

Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP 

One Marina Park Drive, Suite 900 

Boston, MA 02210 
 Facsimile: 617-648-9199 
 Attention: Keith J. Scherer 

  
 36 

 Any party hereto may change the address for receipt of communications by giving written notice to the others
in accordance with this Section 8(d). 
 (e)    Successors. This Agreement will inure
to the benefit of and be binding upon the parties hereto, and to the benefit of the employees, officers and directors and controlling persons referred to in Section 6, and in each case their respective successors, and no
other person will have any right or obligation hereunder. The term “successors” shall not include any purchaser of the Shares as such from the Agent merely by reason of such purchase. 

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

(g)    Governing Law Provisions. This Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York applicable to agreements made and to be performed in such state. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby (“Related
Proceedings”) may be instituted in the federal courts of the United States of America located in the Borough of Manhattan in the City of New York or the courts of the State of New York in each case located in the Borough of Manhattan in the
City of New York (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court (a
“Related Judgment”), as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such
party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action
or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient
forum. 
 (h)    General Provisions. This Agreement constitutes the entire agreement of the parties to this
Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. This Agreement may be executed in two or more counterparts, each one of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and may be delivered by facsimile transmission or by electronic delivery of a portable document format (PDF) file. This Agreement may
not be amended or modified unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. The Article and Section headings
herein are for the convenience of the parties only and shall not affect the construction or interpretation of this Agreement. 

[Signature Page Immediately Follows] 

  
 37 

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

 

					
	Very truly yours,
	
	ALDEYRA THERAPEUTICS, INC.
		
	By:	 	/s/ Todd Brady
		 	Name:	 	Todd C. Brady, M.D., Ph.D.
		 	Title:	 	Chief Executive Officer

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

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

 EXHIBIT A 

ISSUANCE NOTICE 
 [Date] 

Jefferies LLC 
 520 Madison Avenue 

New York, New York 10022 
 Attn:
[                        ] 

Reference is made to the Open Market Sale Agreement between Aldeyra Therapeutics, Inc. (the “Company”) and Jefferies LLC (the
“Agent”) dated as of December 28, 2018. The Company confirms that all conditions to the delivery of this Issuance Notice are satisfied as of the date hereof. 

Date of Delivery of Issuance Notice (determined pursuant to Section 3(b)(i)):
                                         
        
 Issuance Amount (equal to the total Sales Price for such Shares): 

 

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

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

Comments:
                                         
                                         
                                         
                                         
                                         
            
  

			
	                                    
                            

			
		
	By:	 	 
		 	Name:
		 	Title:

  
 A-1 

 Schedule A 

Notice Parties 
 The Company 

Joshua Reed 
 Todd Brady, Ph.D., M.D. 

The Agent 
 Matthew Kim 

Michael MagarroExhibit 4.1

 

SUBSCRIPTION AGREEMENT

 

Arcimoto, Inc.

2034 West 2nd Avenue

Eugene, Oregon 97402

Ladies and Gentlemen:

 

The undersigned (the “Investor”) hereby
confirms its agreement with Arcimoto, Inc., an Oregon corporation (the “Company”), as follows:

 

1. This Subscription Agreement, including
the Terms and Conditions for Purchase of Securities attached hereto as Annex A (collectively, this “Subscription
Agreement”) is made as of the date set forth below between the Company and the Investor for the Investor’s
purchase of shares of the Company’s common stock and a note, with warrant coverage, for an aggregate purchase price of $4.5
million (the “Aggregate Purchase Price”) as set forth below.

 

2. Shares – The Company has
authorized the sale and issuance to the Investor of 500,000 authorized and unissued shares (the “Shares”)
of its common stock, no par value per share. The Investor will receive Shares at an offering price equal to $3.00 per share for
an aggregate purchase price of $1.5 million (the “Share Purchase Price”).

 

3. Warrant – The Company has
authorized the sale and issuance to the Investor of a warrant (the “Warrant”) to purchase 942,857 authorized
and unissued Shares. The warrant exercise price shall be equal to $3.50 per share for an aggregate exercise price of $3.3 million
(the “Warrant Exercise Price”). The exercise period for the Warrant shall be three (3) years from the
Closing Date (as defined in Section 3.1 of Annex A) (the “Exercise Period”). The Warrant shall
be in the form attached hereto as Exhibit A.

 

4. Note.

 

(a) The Company authorized the sale and issuance
to the Investor of a note (the “Note”) in the aggregate amount of $3.0 million (the “Note
Purchase Price”). In exchange for the Note Purchase Price paid by the Investor, the Company will sell and issue to
the Investor the Note. Starting on the Closing Date, the Note shall accrue non-compounding interest on its unpaid principal balance
at ten (10%) percent per annum. The Company shall pay to the Investor a minimum of one (1) year of interest. The Company shall
pay the unpaid principal amount and accrued interest under the Note on the earlier of: (a) the Maturity Date; or (b) the Company’s
Prepayment to the Investor, prior to the Maturity Date, of the full amount of principal and accrued interest on the Note.

 

(b) As long as there is no existing Event
of Default, the Company shall have the option to extend the Maturity Date to eighteen (18) months after the Closing Date by providing
Investor with: (i) written notice within twelve (12) months of the Closing Date of Company’s intention to extend the Maturity
Date and (ii) payment of Three Hundred Thousand Dollars ($300,000) as an additional fee (the “Maturity Date Extension
Option”). Other than through the exercise of the Maturity Date Extension Option, the Company and Investor may only
adjust or extend the Maturity Date by written agreement.

 

(c) The Note shall be substantially in the
form attached hereto as Exhibit B, and secured by all of the Company’s assets pursuant to the terms of a security
agreement in the form attached hereto as Exhibit C (the “Security Agreement”), an intellectual
property security agreement in the form attached hereto as Exhibit D (the “IP Security Agreement”),
and a collateral assignment of lease agreement in the form attached hereto as Exhibit E (the “Lease Collateral
Assignment”).

 

5. Seniority – Notwithstanding
any provision in this Subscription Agreement to the contrary, the indebtedness evidenced by the Note shall be senior in all respects
to the liens, terms, covenants and conditions of all existing debt, except for the Permitted Senior Obligations; provided, however,
that the Company shall cause the lien by Bob Dickman Tire Center, Inc., UCC number 91370166 filed on November 7, 2017 (the “Bob
Dickman Tire Lien”) to be terminated within thirty (30) days of the Closing Date (“UCC Termination Date”).
After the UCC Termination Date, the Bob Dickman Tire Lien shall no longer be a Permitted Senior Obligation. To the extent of any
conflict or inconsistency between the other terms of this Subscription Agreement and this Section 5, the provisions of this Section
5 shall control. The Investor’s rights and remedies under this Subscription Agreement, the Note, the Security Agreement,
the IP Security Agreement and the Lease Collateral Assignment shall be senior to the rights and remedies of any other lender except
for the Permitted Senior Obligations.

 

     

     

    

 

6. Use of Proceeds – The proceeds
from the sale and issuance of the Note and the Warrant shall be used: (a) to provide working capital and funds for capital expenditures
and general corporate purposes for the Company; and (b) to pay liabilities, fees, costs and expenses, including those incurred
in the execution and delivery of this Subscription Agreement and the Other Investor Agreements.

 

7. Payment and Prepayment of the Note.

 

(a) Principal and Interest Payments.

 

(i) Prepayment. Principal and interest
on the Note may be prepaid in whole or in part at any time prior to the Maturity Date at the election of the Company (a “Prepayment”)
upon at least two (2) days’ prior written Notice to the Investor. Full or partial Prepayments shall be allowed without any
prepayment fee or penalty provided that by the time that the Note is paid in full, the Company shall have paid to the Investor
a minimum interest payment of one (1) year’s interest.

 

(ii) Principal and interest on the Note
shall be due and payable as follows:

 

A. Outstanding principal shall be due and
payable on the Maturity Date, unless the Company has made a Prepayment of the full amount of principal and accrued interest on
the Note to the Investor.

 

B. Accrued interest (minimum of one (1) year’s
interest) shall be due and payable in arrears on the Maturity Date, unless the Company has made a Prepayment of the full amount
of principal and accrued interest on the Note. Notwithstanding any provision to the contrary in this Subscription Agreement or
any of the Other Investor Agreements, the Company shall not be required to pay, and the Investor shall not be permitted to contract
for, take, reserve, charge or receive, any compensation that constitutes interest under applicable law in excess of the maximum
amount of interest permitted by law.

 

(iii) In the event the Company has made
a partial Prepayment to the Investor, the amount of principal and interest (minimum of one year’s interest) on the Note due
to the Investor on the Maturity Date shall be offset by any Prepayment amount.

 

(b) Direct Payment. The Company will
pay all sums becoming due hereunder on the Note to the Investor by same day wire transfer of immediately available lawful money
of the United States of America to an account designated in writing by the Investor to Company. All payments by the Company shall
be made without offset, counterclaim, or deduction of any kind.

 

(c) Payments Payable on Business Days.
Payments of all amounts due hereunder or under the Note shall be made on a Business Day. Any payment due on a day that is not a
Business Day shall be made on the immediately preceding Business Day, together with all interest (if any) accrued to and including
such preceding Business Day.

 

8. Form of Note; Replacement.

 

(a) Form of Note. The Note will be
substantially in the form attached hereto as Exhibit B, in each case appropriately completed to show the name of the Investor
and the principal amount of the Note.

 

(b) Replacement of Note. Upon receipt
of evidence satisfactory to the Company of the loss, theft, mutilation, or destruction of the Note and, in the case of mutilation,
upon surrender and cancellation of such mutilated Note, the Company, without charge to the Investor, will make and deliver a new
note of like tenor in lieu of such lost, stolen, destroyed or mutilated Note. The affidavit of an authorized officer of the Investor
setting forth the fact of loss, theft or destruction of the Note shall be accepted as satisfactory evidence thereof, and no further
indemnity shall be required as a condition to the execution and delivery of a new Note. In the event the Note is replaced under
this Section 8, any reference in this Subscription Agreement to the “Note” shall apply equally to the replacement note.

 

    2

     

    

 

(c) Withdrawals. Except as provided
in this Subscription Agreement, the Investor may not request redemption of the Note or demand any return of capital from the Company.

 

9. The offering and sale of the Shares and
Warrant (the “Offering”) are being made pursuant to (i) an effective Registration Statement on Form S-3,
File No. 333-227683 (the “Registration Statement”) filed by the Company with the Securities and Exchange
Commission (the “SEC”) (including the prospectus contained therein) and (2) a prospectus supplement dated
December 2018, and any other prospectus supplement we may file with the SEC, containing certain supplemental information regarding
the Shares, Warrant and Note and terms of the Offering that has been or will be filed with the SEC and made available to the Investor;
provided, however, that the Company has no intention to list the Warrant or Note on an exchange or any trading market
and does not expect a trading market to develop for the Warrant or Note. The Note is being issued pursuant to an exemption from
registration under Section 4(a)(2) of the Securities Act of 1933, as amended.

 

10. The Company and the Investor agree that
at the Closing (as defined in Section 3(a)(ii) of Annex A), the Investor will purchase from the Company and the Company
will issue and sell to the Investor the Shares, Warrant and Note for the Aggregate Purchase Price. The Shares, Warrant and Note
shall be purchased pursuant to the Terms and Conditions for Purchase of Securities attached hereto as Annex A and incorporated
herein by this reference as if fully set forth herein. The Investor acknowledges that the Offering is not being underwritten by
any placement agent and that there is no minimum offering amount.

 

11. The Shares purchased by the Investor
and all shares issued pursuant to exercise of the Warrant, if any, will be registered directly on the Company’s records in
book-entry form through the facilities of The Depository Trust Company’s Direct Registration System (DRS) in accordance with
the instructions set forth on the signature page attached hereto.

 

UPON THE CLOSING, THE INVESTOR SHALL REMIT BY WIRE TRANSFER
THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE PRICE TO THE ACCOUNT PREVIOUSLY PROVIDED TO THE INVESTOR BY THE COMPANY.

 

12. The Investor represents that (a) it
has had no position, office or other material relationship within the past three years with the Company or persons known to it
to be affiliates of the Company, (b) it is not a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”)
or an Associated Person (as such term is defined under the FINRA’s NASD Membership and Registration Rules Section 1011) as
of the Closing, and (c) neither the Investor nor any group of Investors (as identified in a public filing made with the SEC) of
which the Investor is a part in connection with the Offering, acquired, or obtained the right to acquire, 20% or more of the Company’s
common stock (or securities convertible into or exercisable for common stock) or the voting power of the Company on a post-transaction
basis.

 

13. The Investor represents that it has
had access to (i) the prospectus, dated October 17, 2018, which is a part of the Company’s Registration Statement, and the
documents incorporated by reference therein, (ii) the prospectus supplement dated December 2018, and the documents incorporated
by reference therein, and (iii) any additional prospectus supplement the Company has filed in connection with the Offering with
the SEC (collectively, the “Disclosure Package”), prior to or in connection with the receipt of this
Subscription Agreement.

 

14. The Investor acknowledges that it has
received such information as it deems necessary in order to make an investment decision with respect to the Shares, Warrant and
Note. The Investor understands that it and its professional advisor(s), if any, have the right to ask questions of and receive
answers from the Company and its officers and directors, and to obtain such information concerning the terms and conditions of
the offering of the Shares, Warrant and Note to the extent that the Company possesses the same or could acquire it without unreasonable
effort or expense, as the Investor, and its professional advisor(s) deem necessary to verify the accuracy of the information referred
to in the Disclosure Package pursuant to which the Shares, Warrant and Note are being offered. The Investor represents and agrees
that it and its professional advisor(s), if any, have asked such questions, received such answers and obtained such information
as the Investor and its professional advisor(s), if any, deem necessary to verify the accuracy (a) of the information referred
to in the Disclosure Package and (b) of any other information that the Investor and its professional advisor(s), if any, deem relevant
to making an investment decision with respect to the Shares, Warrant or Note.

 

    3

     

    

 

15. The Investor acknowledges that ROTH
Capital Partners (“ROTH”) has acted as a financial advisor for the Company and Investor in connection
with the issuance of the Shares, Warrant and Note and consents to ROTH’s actions in this regard and hereby waives any and
all claims, actions, liabilities, damages or demands it may have against ROTH in connection with any alleged conflict of interest
arising from ROTH’s engagement as financial advisor.

 

16. Assignment – Neither party
may assign any of its rights or delegate any of its obligations hereunder without the prior written consent of the other party,
which consent shall not be unreasonably withheld, conditioned, or delayed.

 

17. Definitions – Capitalized
words not otherwise defined in this Subscription Agreement will have the meanings set forth in this Section 17:

 

(a) “Aggregate Purchase Price”
has the meaning ascribed to it in Section 1.

 

(b) “Business Day”
means each day of the week except Saturdays, Sundays, and days on which banking institutions are authorized by law to close in
Oregon.

 

(c) “Closing” has
the meaning ascribed to it in Section 3(a)(ii) of Annex A.

 

(d) “Closing Date”
has the meaning ascribed to it in Section 3(a)(ii) of Annex A.

 

(e) “Closing Fees”
has the meaning ascribed to it in Section 16 of Annex A.

 

(f) “Disclosure Package”
has the meaning ascribed to it in Section 13.

 

(g) “Due Diligence Fees”
has the meaning ascribed to it in Section 16 of Annex A.

 

(h) “Economic Default”
has the meaning ascribed to it in Section 4(a)(i) of Annex A.

 

(i) “Event of Default”
has the meaning ascribed to it in Section 4(a) of Annex A.

 

(j) “Exercise Period”
has the meaning ascribed to it in Section 3.

 

(k) “Governmental Authority”
means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial,
municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government
(including any supra-national bodies such as the European Union or the European Central Bank).

 

(l) “Intellectual Property”
means any and all of the following in any jurisdiction throughout the world: (i) trademarks and service marks, including all applications
and registrations and the goodwill connected with the use of and symbolized by the foregoing; (ii) copyrights, including all applications
and registrations related to the foregoing; (iii) trade secrets and confidential know-how; (iv) patents and patent applications;
(v) internet domain name registrations; and (vi) other intellectual property and related proprietary rights, interests and protections

 

(m) “IP Security Agreement”
has the meaning ascribed to it in Section 4(c).

 

(n) “Lease Collateral Assignment”
has the meaning ascribed to it in Section 4(c).

 

(o) “Legal Fees”
has the meaning ascribed to it in Section 16 of Annex A.

 

(p) “Lower Florida Keys”
has the meaning ascribed to it in Section 6(j) of Annex A.

 

    4

     

    

 

(q) "Material Adverse Effect"
means a material adverse effect on (a) the business, assets, properties, liabilities (actual or contingent), operations, or condition
(financial or otherwise) of the Company, (b) the validity or enforceability of the Subscription Agreement or the Other Investor
Agreements, (c) the perfection or priority of any lien purported to be created by any collateral document, (d) the rights or remedies
of the Investor under the Subscription Agreement or the Other Investor Agreement or (e) the ability of the Company to perform any
of its material obligations under the Subscription Agreement or the Other Investor Agreements.

 

(r) “Maturity Date”
means twelve (12) months from the Closing Date unless the Company elects the Maturity Date Extension Option pursuant to Section
4(b), in which case the Maturity Date shall mean eighteen (18) months from the Closing Date.

 

(s) “Maturity Date Extension Option”
has the meaning attributed to it in Section 4(b).

 

(t) “Non-Economic Default”
has the meaning attributed to it in Section 4(a)(2).

 

(u) “Note” has the
meaning attributed to it in Section 4(a).

 

(v) “Note Purchase Price”
has the meaning ascribed to it in Section 4(a).

 

(w) “Notice” has
the meaning attributed to it in Section 8 of Annex A.

 

(x) “Offering” has
the meaning ascribed to it in Section 9.

 

(y) “Other Investor Agreements”
means the Note, the Security Agreement, the IP Security Agreement, the Warrant, the Lease Collateral Assignment and all other agreements,
instruments and documents (including, without limitation, notes, guarantees, powers of attorney, consents, assignments, contracts,
notices, subordination agreements and all other written matter), and all renewals, modifications and extensions thereof, whether
heretofore, now or hereafter executed by or on behalf of the Company, any guarantor or any other Person and delivered to and for
the benefit of the Investor.

 

(z) “Permitted Senior Obligations”
means : means the obligations of the Company to the companies listed below, as secured by UCC Financing Statements listed below
filed on the dates listed below:

 

	Secured Party	 	UCC Number	 	Date Filed
	Bob Dickman Tire Center, Inc.	 	91370166	 	11/7/2017
	HYG Financial Services, Inc. (Lessor)	 	91396133	 	12/7/2017
	Intech Funding Corp	 	91429051	 	1/11/2018
	Crestmark Equipment Finance, Inc.	 	91457717	 	2/13/2018
	m2 Lease Funds LLC (Seller)	 	91464987	 	2/21/2018
	Midland States Bank (Lessor)	 	91491268	 	3/20/2018
	PNC Equipment Finance, LLC	 	91503323	 	3/30/2018
	International Financial Services Corporation	 	91514613	 	4/11/2018
	International Financial Services Corporation	 	91514620	 	4/11/2018
	Sumitomo Mitsui Finance & Leasing Co., Ltd.	 	91547292	 	5/14/2018
	Bryn Mawr Equipment Finance, INC. (Lessor)	 	91564120	 	5/30/2018
	Sumitimo Mitsui Finance & Leasing CO., Ltd.	 	91580426	 	6/18/2018
	Bank of the West	 	91709514	 	10/29/2018

 

    5

     

    

 

(aa) “Person” means
any individual, sole proprietorship, corporation, business trust, unincorporated organization, association, limited liability company,
partnership, joint venture, governmental authority (whether a national, federal, state, county, municipality or otherwise, and
shall include without limitation any instrumentality, division, agency, body or department thereof), or other entity.

 

(bb) “Prepayment”
has the meaning attributed to it in Section 7(a)(1).

 

(cc) “Registration Statement”
has the meaning ascribed to it in Section 9.

 

(dd) “ROTH” has
the meaning ascribed to it in Section 15.

 

(ee) “Security Agreement”
has the meaning attributed to it in Section 4(c).

 

(ff) “Shares” has
the meaning attributed to it in Section 2.

 

(gg) “Share Purchase Price”
has the meaning ascribed to it in Section 2.

 

(hh) “Share Transfer Date”
has the meaning ascribed to it in Section 3(a)(i) of Annex A.

 

(ii) “Subscription Agreement”
has the meaning ascribed to it in Section 1.

 

(jj) “Transfer Agent”
has the meaning ascribed to it in Section 3(a)(i) of Annex A.

 

(kk) “Warrant” has
the meaning ascribed to it in Section 3.

 

(ll) “Warrant Exercise Price”
has the meaning ascribed to it in Section 3.

 

    6

     

    

 

	Number of Shares:  	500,000	 
	Warrant:  	942,857 shares	 
	Note Amount: 	$3,000,000	 
	Aggregate Purchase Price: 	$4,500,000	 

 

DRS ELECTRONIC BOOK ENTRY CONFIRMATION Delivery Instructions:

 

Name in which Shares should be issued: FOD Capital, LLC

Tax ID Number for the Investor, if applicable: ______________________

DRS Account Number for the Investor, if applicable: ______________________

Address for Shareholder Communications:

Street: 7009 Shrimp Road, Suite #4

City/State/Zip: Key West, FL 33040________________________________

Attention: Michael T. Raymond, Manager

Telephone No.: (248) 433-7273

 

Please confirm that the foregoing correctly
sets forth the agreement between us by signing in the space provided below for that purpose.

 

	 	Dated as of: December 27, 2018 
	 	 	 
	 	INVESTOR: FOD Capital, LLC
	 	 	 
	 	By:	/s/ Michael T. Raymond
	 	Print Name: 	Michael T. Raymond
	 	Title:	Manager

 

Agreed and Accepted

this 27 day of December, 2018:

 

	ARCIMOTO, INC.
	 	 	 
	By:	/s/ Mark Frohnmayer	 
	 	
        Name: Mark Frohnmayer

        Title: CEO
	 

 

Signature Page to Subscription Agreement

 

     

     

    

 

ANNEX A

 

TERMS AND CONDITIONS FOR PURCHASE OF
SECURITIES

 

1. Authorization and Sale of the Shares,
Warrant and Note. Subject to the terms and conditions of this Subscription Agreement, the Company has authorized the sale of
the Shares, Warrant and Note.

 

2. Agreement to Sell and Purchase.
At the Closing (as defined in Section 3(a)(ii)), the Company will sell to the Investor, and the Investor will purchase from
the Company, upon the terms and conditions set forth herein, the Shares as set forth on the last page of the Subscription Agreement
to which these Terms and Conditions for Purchase of Securities are attached as Annex A (the “Signature Page”)
for the Aggregate Purchase Price therefor set forth on the Signature Page. Terms not otherwise defined herein shall have the mean
ascribed to them in the Subscription Agreement.

 

3. Closings and Delivery of the Shares
and Funds.

 

(a) Closing. 

 

(i) The Closing will take place remotely
via the exchange of documents and signatures on the date of and simultaneously with the execution of the Subscription Agreement,
or at such other time and places as mutually agreed upon in writing by the Company and the Investor. At the Closing, the Investor
will deliver the Aggregate Purchase Price to the Company, and the Company will deliver to the Investor an executed Note and Warrant.
The completion of the purchase and sale of the Shares by the Investor shall occur within three trading days of the Closing Date
at a place and time to be specified by the Company (the “Share Transfer Date”). On the Share Transfer
Date, the Company shall cause Computershare Trust Company, N.A., the Company’s “Transfer Agent,”
to register directly on the Company’s records in book-entry form through the facilities of The Depository Trust Company’s
Direct Registration System (DRS) the number of Shares purchased by the Investor as set forth on the Signature Page.

 

(ii) “Closing”
shall mean the consummation of the transactions contemplated by the Subscription Agreement and the Other Investor Agreements and
the payment by the Investor of the Aggregate Purchase Price.

 

(iii) “Closing Date”
means the date on which the Subscription Agreement has been executed by the Company and the Investor and the Aggregate Purchase
Price has been paid by the Investor to the Company.

 

(b) Conditions to the Obligations of
the Parties. 

 

(i) Conditions to the Company’s
Obligations. The Company’s obligation to issue and sell the Note, Warrant and Shares to the Investor shall be subject
to: (A) the receipt by the Company of the Aggregate Purchase Price for the Shares, Warrant and Note together with (1) the Subscription
Agreement, (2) the Note, (3) the Security Agreement, (4) the IP Security Agreement, and (5) the Lease Collateral Assignment, each
duly executed by the Investor, and (B) the accuracy of the representations and warranties made by the Investor and the fulfillment
of those undertakings of the Investor to be fulfilled prior to Closing.

 

(ii) Conditions to the Investor’s
Obligations. The Investor’s obligation to purchase the Note, Warrant and Shares will be subject to : (A) the Company’s
delivery on the Closing Date of: (1) the Subscription Agreement, (2) the Note issued in the name of the Investor, (3) the Security
Agreement, (4) the IP Security Agreement, (5) the Lease Collateral Assignment, and (6) the Warrant, each duly executed by the Company,
and (B) the accuracy of the representations and warranties made by the Company and the fulfillment of those undertakings of the
Company to be fulfilled prior to Closing.

 

(c) Delivery of Funds. The Investor
shall remit by wire transfer the amount of funds equal to the Aggregate Purchase Price on or before the day of Closing to the account
designated by the Company and separately provided to the Investor.

 

(d) Delivery of Shares. No later than
three trading days after the date of Closing, the Shares will be registered directly on the Company’s records in book-entry
form through DRS in accordance with the instructions set forth on the signature page attached hereto.

 

     

     

    

 

4. Non-payment of Interest; Events of
Default.

 

(a) Events of Default. The occurrence
of any one or more of the following events shall constitute an “Event of Default”:

 

(i) The Company shall fail to perform or
observe any material agreement, covenant, term or condition contained in the Subscription Agreement, the Note, or the Warrant,
including, but not limited to, if the Company shall fail to pay, when due, any principal, interest, or other sums payable under
either the Note or the Subscription Agreement and/or the Company fails to provide Investor with franchise rights pursuant to Section
6(j) of this Annex A (an “Economic Default”); or

 

(ii) the Company: (i) becomes insolvent;
(ii) is generally unable to pay, or fails to pay, its debts as they become due; (iii) files, or has filed against it, a petition
for voluntary or involuntary bankruptcy or pursuant to any other insolvency law; (iv) makes or seeks to make a general assignment
for the benefit of its creditors; (v) applies for, or consents to, the appointment of a trustee, receiver or custodian for a substantial
part of its property or business, or (vi) if there is an inaccuracy in or breach of any of the representations, warranties or covenants
of the Company contained in this Subscription Agreement or any of the Other Investor Agreements. Any Event of Default described
under this Section 4, the Note, the Security Agreement, the IP Security Agreement, or the Lease Collateral Assignment, other than
an Economic Default, shall be referred to as a “Non-Economic Default.”

 

(b) Remedies of the Investor upon Occurrence
of Event of Default. If any Event of Default described in Section 4 occurs and continues for a period of ten (10) days, in
the case of an Economic Default, or thirty (30) days, in the case of a Non-Economic Default, after written Notice thereof given
by the Investor to the Company, then the Investor shall elect in writing within three (3) days to either: (a) declare the Note
immediately due and payable; or (b) continue to hold the Note with the rate of interest increased by 8% (from 10% to 18%) for so
long as the Event of Default shall remain uncured.

 

5. Representations, Warranties and Covenants
of the Investor.

 

The Investor acknowledges, represents and warrants to, and agrees
with, the Company that:

 

(a) The Investor (a) is knowledgeable, sophisticated
and experienced in making, and is qualified to make decisions with respect to, investments in securities presenting an investment
decision like that involved in the purchase of the Shares, including investments in securities issued by the Company and investments
in comparable companies, and (b) in connection with its decision to purchase the Shares set forth on the Signature Page, has received
and is relying only upon the Disclosure Package and the documents incorporated by reference therein.

 

(b) No action has been or will be taken in
any jurisdiction outside the United States by the Company that would permit an offering of the Shares, or possession or distribution
of offering materials in connection with the issue of the Shares in any jurisdiction outside the United States where action for
that purpose is required, (b) if the Investor is outside the United States, it will comply with all applicable laws and regulations
in each foreign jurisdiction in which it purchases, offers, sells or delivers Shares or has in its possession or distributes any
offering material, in all cases at its own expense and (c) the Company has not authorized anyone to make and has not made any representation,
disclosure or use of any information in connection with the issue, placement, purchase and sale of the Shares, except as set forth
or incorporated by reference in the base prospectus, the prospectus supplement or any free writing prospectus.

 

    2

     

    

 

(c) If the Investor is an officer or director
of the Company, or more than 10% shareholder in the Company, the Investor acknowledges and agrees that the Shares delivered may
be deemed to be “control securities” under Rule 144 promulgated under the Securities Act and, accordingly, the resale
of the Shares may be restricted under Rule 144 and the Shares may be subject to a restrictive legend under the Securities Act.
Investor shall comply with any insider trading policy adopted by the Company from time to time covering transactions in the Company’s
securities by employees, officers or directors of the Company. The Investor agrees not to sell or otherwise dispose of the Shares
in any manner which would constitute a violation of any applicable federal or state securities laws.

 

(d) The Investor has full right, power, authority
and capacity to enter into this Subscription Agreement and to consummate the transactions contemplated hereby and has taken all
necessary action to authorize the execution, delivery and performance of this Subscription Agreement, and (b) this Subscription
Agreement constitutes a valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and except as to the enforceability
of any rights to indemnification or contribution that may be violative of the public policy underlying any law, rule or regulation
(including any federal or state securities law, rule or regulation).

 

(e) The Investor understands that nothing
in this Subscription Agreement or the Disclosure Package, or any other materials presented to the Investor in connection with the
purchase and sale of the Shares constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment
advisors and made such investigation as it, in its sole discretion, has deemed necessary or appropriate in connection with its
purchase of Shares.

 

6. Representations, Warranties and Covenants
of the Company.

 

The Company acknowledges, represents and warrants to, and agrees
with, the Investors that:

 

(a) The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Oregon and has full corporate power and authority to own and
use its properties and its assets and conduct its business as currently conducted. The Company is not in violation of any of the
provisions of its Second Amended and Restated Articles of Incorporation, as may be amended from time to time (the “Restated
Articles”), or its Amended and Restated By-laws (the “Bylaws”) or other organizational
or charter documents. The Company is duly qualified to conduct business and is in good standing as a foreign corporation in each
jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where
the failure to be so qualified or in good standing, as the case may be, would not result in a direct and/or indirect (i) material
adverse effect on the legality, validity or enforceability of any of the Shares and/or this Subscription Agreement, (ii) material
adverse effect on the results of operations, assets, business or condition (financial and other) of the Company, or (iii) material
adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Subscription
Agreement (any of (i), (ii) or (iii), a “Material Adverse Effect”).

 

(b) The Company has prepared and filed in
conformity with the requirements of the Securities Act of 1933, as amended (the “Securities Act”), and
published rules and regulations thereunder adopted by the SEC, a “shelf” registration statement on Form S-3 (File No.
333-227683), which became effective on October 17, 2018, including a base prospectus relating to the securities registered pursuant
to such registration statement, and such amendments and supplements thereto as may have been required to the date of this Subscription
Agreement, including but not limited to, the prospectus supplement dated December 2018. The Company is not aware of any fact, condition
or circumstance that could reasonably be expected to have a Material Adverse Effect that has not been previously disclosed in the
Disclosure Package. Furthermore, no representation or warranty or other statement made by the Company in this Agreement, the Disclosure
Package or otherwise in connection with the transactions contemplated hereby contains any untrue statement of material fact or
omits to state a material fact necessary to make such statements not misleading.

 

(c) All of the issued and outstanding shares
of capital stock of the Company are validly issued, fully paid and nonassessable. All of such outstanding capital stock has been
issued in compliance with applicable federal and state securities laws. The issuance and sale of the Shares as contemplated hereby
will not obligate the Company to issue shares of common stock or other securities to any other person (other than the Investor)
and will not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding security.

 

    3

     

    

 

(d) The Company has all corporate right, power
and authority to enter into, execute and deliver this Subscription Agreement and each other agreement, document, instrument and
certificate to be executed by the Company in connection with the consummation of the transactions contemplated hereby and to perform
fully its obligations hereunder and thereunder. This Subscription Agreement has been duly executed and delivered by the Company
and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and except as to the enforceability
of any rights to indemnification or contribution that may be violative of the public policy underlying any law, rule or regulation
(including any federal or state securities law, rule or regulation). The Shares are duly authorized and, when issued and paid for
in accordance with the applicable transaction documents, will be duly and validly issued, fully paid and nonassessable, free and
clear of all encumbrances.

 

(e) The execution and delivery by the Company
of this Subscription Agreement and the issuance and sale of the Shares, Warrant and Note do not and will not (i) result in the
violation of any law, statute, rule, regulation, order, writ, injunction, judgment or decree of any court or governmental authority
to or by which the Company is bound including without limitation all foreign, federal, state and local laws applicable to its business
and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material
Adverse Effect, (ii) conflict with or violate any provision of the Company’s Restated Articles or the Company’s Bylaws,
and (iii) conflict with, or result in a material breach or violation of, any of the terms or provisions of, or constitute (with
or without due notice or lapse of time or both) a default or give to others any rights of termination, amendment, acceleration
or cancellation (with or without due notice, lapse of time or both) under any agreement, credit facility, lease, loan agreement,
mortgage, security agreement, trust indenture or other agreement or instrument to which the Company is a party, nor result in the
creation or imposition of any encumbrances upon any of the properties or assets of the Company, except in each case as could not
have or reasonably be expected to result in a Material Adverse Effect.

 

(f) No approval by the holders of the Company’s
common stock or other equity securities of the Company is required to be obtained by the Company in connection with the authorization,
execution, delivery and performance of this Subscription Agreement or in connection with the authorization, issue and sale of the
Shares, Warrant and Note.

 

(g) No consent, approval, authorization or
other order of any governmental authority or any other third party is required to be obtained by the Company in connection with
the authorization, execution, delivery and performance of this Subscription Agreement or in connection with the authorization,
issue and sale of the Shares, Warrant and Note except for such post-sale filings as may be required to be made with the NASDAQ
Capital Market, the SEC and with any state securities regulatory authority, all of which shall be made when required.

 

(h) No action, suit, litigation, investigation
or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Company, threatened
by or against the Company or against any of its property or assets (i) with respect to the Subscription Agreement or any Other
Investor Agreements or any of the transactions contemplated hereby or thereby, or (ii) that could reasonably be expected to have
a Material Adverse Effect.

 

(i) to the Company’s knowledge: (i)
the Company Intellectual Property as currently licensed or used by the Company, and the Company's conduct of its business as currently
conducted, do not infringe, misappropriate or otherwise violate the Intellectual Property of any Person; and (ii) no Person is
infringing, misappropriating or otherwise violating any Company Intellectual Property.

 

(j) Solvency. After giving effect to
the transactions contemplated by the Subscription Agreement and the Other Investor Agreements, the Company will be solvent, able
to pay its debts as they mature, and have capital sufficient to carry on all businesses in which it is engaged.

 

    4

     

    

 

(k) Enforceability. The Subscription
Agreement and the Other Investor Agreements, when delivered, shall constitute legal, valid and binding obligations of the Company
and shall be enforceable against the Company in accordance with their respective terms subject to (a) laws of general application
relating to bankruptcy, insolvency and the relief of debtors; (b) rules of law governing specific performance, injunctive relief
or other equitable remedies.

 

(l) Franchise Rights. The Company shall
provide Investor with franchise rights for the Lower Florida Keys, subject to the terms contained in the Company’s standard
franchise agreement. “Lower Florida Keys” shall mean the Florida Keys south of Marathon, Florida.

 

(m) Publicity and Form 8-K Filing Review.
The Company shall provide the Investor with an advance copy for review of any publicity release or Form 8-K to be filed regarding
this Agreement or the transactions contemplated hereby.

 

(n) Additional Covenants of the Company.
The Company covenants and agrees that, from the Closing Date and until all of the obligations due to the Investor under the Note,
the Warrant, and the Subscription Agreement have been finally and irrevocably paid in full in accordance with the terms hereof
and thereof unless waived in writing by the Investor:

 

(i) Tax Statements. The Company
will furnish to the Investor as soon as available, and in any event within sixty (60) days after December 31 of each year, Internal
Revenue Service Form 1099 and all other reasonably required tax information applicable to the Investor.

 

(ii) Performance of Contractual Obligations.
The Company will duly and punctually pay and/or perform its obligations under this Subscription Agreement and the Other Investor
Agreements.

 

(iii) Preservation of Existence and
Conduct of Business. The Company will preserve and maintain its existence and all of its leases, privileges, franchises, qualifications,
and rights that are necessary or useful in the ordinary conduct of its business, and conduct its business as presently conducted
in an orderly and efficient manner in accordance with good business practices.

 

(iv) Indebtedness. The Company shall
not create, incur, issue, assume, guarantee or otherwise become liable for any indebtedness with a priority higher than the Note.
The outstanding current and any future obligations of the Company to its officers and/or managers and any additional debt instruments
issued by the Company and not referred to in the preceding sentence shall be subordinated to the Note in all material respects.

 

7. Survival of Representations,
Warranties and Agreements; Third Party Beneficiary. Notwithstanding any investigation made by any party to this
Subscription Agreement, all covenants, agreements, representations and warranties made by the Company and the Investor herein
will survive the execution of this Subscription Agreement and the delivery to the Investor of the Shares, Warrant and Note
being purchased and the payment therefor until all obligations of the Company under this Agreement shall have been
satisfied.

 

8. Notices. All notices or other
communications hereunder (each a “Notice”) will be either (i) given in writing and delivered in person,
(ii) sent by facsimile, (iii) sent by electronic mail, (iv) sent by overnight courier or (v) sent by registered or certified mail,
postage prepaid, return receipt requested, to the parties at the following address:

 

	 	(a)	
        if to the Company, to:

         

        Arcimoto, Inc.

2034 West 2nd Avenue

Eugene, Oregon 97402

Attention: Karen Bacon, Controller

Email: investor@arcimoto.com

 

    5

     

    

 

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

 

Nelson Mullins Riley & Scarborough LLP

Glenlake One, Suite 200

4140 Parklake Avenue

Raleigh, NC 27612

Attention: W. David Mannheim

Fax: (919) 329-3804

Email: david.mannheim@nelsonmullins.com

 

(b) if to the Investor, at its address on
the Signature Page hereto, or at such other address or addresses as may have been furnished to the Company in writing.

 

Notice shall be deemed given on (a) the date such notice is
personally delivered, (b) three (3) days after the mailing if sent by certified or registered mail, (c) one (1) business day after
the date of delivery to the overnight courier if sent by overnight courier, or (d) the date such notice is transmitted by facsimile
or electronic mail, if such transmission is prior to 5:00 p.m. Pacific Time on a business day, or the next succeeding business
day if such transmission is later.

 

9. Interpretation. For purposes of
this Subscription Agreement, (a) the words “include,” “includes,” and “including” are deemed
to be followed by the words “without limitation;” (b) the word “or” is not exclusive; (c) the words “herein,”
“hereof,” “hereby,” “hereto,” and “hereunder” refer to this Subscription Agreement
as a whole; and (d) the reference to “dollars” or “$” refers to United States dollars. Unless the context
otherwise requires, references herein: (x) to sections, schedules, and exhibits mean the sections of, and schedules and exhibits
attached to, this Subscription Agreement; (y) to an agreement, instrument, or other document means such agreement, instrument,
or other document as amended, supplemented, and modified from time to time to the extent permitted by the provisions thereof; and
(z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations
promulgated thereunder. This Subscription Agreement shall be construed without regard to any presumption or rule requiring construction
or interpretation against the party drafting an instrument or causing any instrument to be drafted. The schedules and exhibits
referred to herein shall be construed with, and as an integral part of, this Subscription Agreement to the same extent as if they
were set forth verbatim herein.

 

10. Successors and Assigns. Except
as otherwise provided herein, the terms and conditions of this Subscription Agreement will inure to the benefit of, and be binding
upon, the respective successors and assigns of the parties. This Subscription Agreement is for the sole benefit of the parties
hereto and their respective successors and permitted assigns, and nothing herein, express or implied, is intended to or will confer
upon any other Person any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement.

 

11. Changes. This Subscription Agreement
may not be modified or amended except pursuant to an instrument in writing signed by the Company and the Investor.

 

12. Headings. The headings of the
various sections of this Subscription Agreement have been inserted for convenience of reference only and will not be deemed to
be part of this Subscription Agreement.

 

13. Integration and Severability. This
Subscription Agreement and the Other Investor Agreements embody the entire agreement and understanding between the Investor and
the Company, and supersedes all prior agreements and understandings relating to the subject matter hereof. In case any provision
contained in this Subscription Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby.

 

14. Governing Law. This Subscription
Agreement will be governed by, and construed in accordance with, the internal laws of the State of Oregon, without giving effect
to the principles of conflicts of law that would require the application of the laws of any other jurisdiction.

 

    6

     

    

 

15. Waiver. No waiver by any party
of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No
waiver by any party shall operate or be construed as a waiver in respect of any failure, breach, or default not expressly identified
by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure
to exercise, or delay in exercising, any right, remedy, power, or privilege arising from this Subscription Agreement shall operate
or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power, or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.

 

16. Expenses. The Company shall pay
all costs and expenses that it and the Investor incur with respect to the negotiation, execution, or delivery of this Subscription
Agreement, including Three Hundred Thirty Five Thousand $335,000 for due diligence and continued advisory fees (“Due
Diligence Fees”) and up to $50,000 for reimbursement of Investor’s counsel’s legal fees (“Legal
Fees” and together with the Due Diligence Fees, the “Closing Fees”) to be paid at Closing.
The Closing Fees shall be deducted by the Investor from the disbursement of the Aggregate Purchase Price paid to Company at the
Closing.

 

17. Attorneys’ Fees. If any
action at law or in equity is necessary to enforce or interpret the terms of this Subscription Agreement, the prevailing party
will be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

 

18. Counterparts. This Subscription
Agreement may be executed in two or more counterparts, each of which will constitute an original, but all of which, when taken
together, will constitute but one instrument, and will become effective when one or more counterparts have been signed by each
party hereto and delivered to the other parties. The Company and the Investor acknowledge and agree that the Company shall deliver
its counterpart to the Investor.

 

19. Electronic Signatures. The parties
agree that the electronic signatures, whether digital or encrypted, of the parties included in this Subscription Agreement are
intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means any
electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with
the intent to sign such record, including facsimile or email electronic signatures.

 

20. Confirmation of Sale. The Investor
acknowledges and agrees that Investor’s receipt of the Company’s signed counterpart to this Subscription Agreement,
shall constitute written confirmation of the Company’s sale of the Shares, Warrant and Note to Investor.

 

    7

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