Document:

Securities Purchase Agreement, dated as of April 13, 2004.

 Exhibit 10.54 
  
 APPLIED IMAGING CORP. 
 SECURITIES PURCHASE AGREEMENT 
  
 This Securities Purchase Agreement (this “Agreement”) is made and entered into as of April 13, 2004, by and among APPLIED IMAGING CORP., a Delaware corporation (the
“Company”), and each of the purchasers listed on Exhibit A attached hereto (collectively, the “Purchasers” and individually, a “Purchaser”). 
  
 RECITALS 
  
 WHEREAS, the Company desires to issue and sell to the Purchasers, and the Purchasers desire to purchase from the Company, up to three
million one hundred thousand (3,100,000) units (each, a “Unit”), each unit consisting of one share of common stock, par value $0.001 per share, of the Company (the “Common Stock”) and a five-year
warrant to purchase one fifth (1/5) of one share of Common Stock, on the terms and conditions set forth in this Agreement; and 
  
 WHEREAS, the Company and each Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the provisions
of Regulation D (“Regulation D”), as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Securities
Act”). 
  
 NOW, THEREFORE, in consideration of the foregoing, the
mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. AGREEMENT TO PURCHASE AND SELL STOCK. 
  
 (a) Authorization. On the basis of the representations, warranties and agreements herein contained, and subject to
the terms and conditions herein set forth, the Company agrees to issue to the Purchasers, and the Purchasers severally agree to purchase from the Company up to 3,100,000 Units, aggregating up to 3,100,000 shares of Common Stock (the
“Purchased Shares”) and five-year warrants to purchase 620,000 shares of Common Stock, substantially in the form attached hereto as Exhibit B. Each whole warrant included in the Units shall be exercisable to purchase
one share of Common Stock at $1.70 per share (the “Purchased Warrants” and together with the Purchased Shares, the “Purchased Securities”). 
  
 (b) Agreement to Purchase and Sell Securities. Subject to the terms and conditions of this Agreement, each Purchaser
severally agrees to purchase, and the Company agrees to sell and issue to each Purchaser, at the Closing (as defined below), that number of Units set forth opposite such Purchaser’s name on Exhibit A attached hereto. 
  
 (c) Use of Proceeds. The Company intends to apply the net proceeds
from the sale of the Purchased Securities for working capital and general corporate purposes, the expansion and acceleration of the development of its product offerings, as well as for strategic purposes in connection with selected acquisitions that
may be considered in the future. 

 (d) Obligations Several Not Joint. The obligations of each Purchaser under this Agreement are
several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement. Nothing contained herein, and no action taken by
any Purchaser pursuant hereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by this Agreement. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. 
  
 2. CLOSING. The purchase and sale of the Purchased Securities shall take place at the offices of Wilson Sonsini Goodrich & Rosati, at
5:00 p.m. pacific time, on April 13, 2004, or at such other time and place as the Company and Purchasers representing a majority of the Units to be purchased, mutually agree upon, which time shall in no event be later than April 18, 2004 (which time
and place are referred to in this Agreement as the “Closing”). At the Closing, the Company shall, against delivery of payment for the Purchased Securities by wire transfer of immediate available funds in accordance with the
Company’s instructions, (i) authorize its transfer agent to issue to each Purchaser one or more stock certificates (the “Certificates”) registered in the name of each Purchaser (or in such nominee name(s) as designated
by such Purchaser in the Stock Certificate Questionnaire (attached hereto as Appendix I) (the “Stock Certificate Questionnaire”), representing the number of Purchased Shares set forth opposite the appropriate Purchaser’s
name on Exhibit A hereto, and bearing the legend set forth in Section 4(j) herein and (ii) issue the number of Purchased Warrants set forth across such Purchaser’s name on Exhibit A hereto. Closing documents may be delivered by
facsimile with original signature pages sent by overnight courier. The date of the Closing is referred to herein as the Closing Date. 
  
 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby represents and warrants to each Purchaser that the statements in this
Section 3 are true and correct, except as set forth in the SEC Documents (as defined below) or as described in the section of the Disclosure Letter (attached hereto as Exhibit C) that corresponds to the relevant paragraph of this Section
3: 
  
 (a) Organization Good Standing and
Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all corporate power and authority required to (i) carry on its business as presently conducted and
(ii) enter into this Agreement, the schedules and exhibits attached hereto, and the Warrants (collectively, the “Transaction Documents”), and to perform its obligations contemplated hereby and thereby. The Company is
qualified to do business and is in good standing in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means a material adverse
effect on, or a material adverse change in, or a group of such effects on or changes in, (i) the business, operations, financial condition, results of operations, assets or liabilities of the Company and its subsidiaries, taken as a whole or (ii) on
the transactions contemplated by this Agreement and the Transaction Documents or on the authority or ability of the Company to perform its obligations hereunder or thereunder. 
  

 -2- 

 (b) Capitalization. The capitalization of the Company is as follows: 
  
 (i) The authorized capital stock of the Company consists of 50,0000,000
shares of Common Stock and 6,000,000 shares of Preferred Stock, $0.001 par value per share (“Preferred Stock”), of which 20,000 shares of Preferred Stock have been designated Series A Participating Preferred Stock.

  
 (ii) As of March 31, 2004, the issued and outstanding capital
stock of the Company, without including the Purchased Securities, consisted of 15,962,173 shares of Common Stock. The shares of issued and outstanding capital stock of the Company have been duly authorized and validly issued, are fully paid and
nonassessable and have not been issued in violation of or are not otherwise subject to any preemptive or other similar rights. 
  
 (iii) As of March 31, 2004, there were no issued and outstanding shares of Preferred Stock. 
  
 (iv) As of December 31, 2003, the Company had (a) 2,438,250 shares of Common Stock reserved for issuance upon exercise of
outstanding options granted under the Company’s Amended 1998 Stock Incentive Plan (the “Option Plan”) and (b) 799,590 shares of Common Stock reserved for issuance upon exercise of outstanding warrants. 
  
 (v) As of December 31, 2003, the Company had 166,038 shares of Common Stock
available for future grant under the Option Plan. 
  
 (vi) As of
December 31, 2003, the Company had 110,000 shares of Common Stock reserved for issuance upon exercise of outstanding options granted under the Company’s Directors Option Plan (the “Directors Plan”), and 3,438 shares of
Common Stock available for future grant under the Directors Plan. 
  
 (vii) As of December 31, 2003, the Company had 200,000 shares of Common Stock reserved for issuance upon exercise of an outstanding Stand-alone Option Agreement. 
  
 (viii) As of December 31, 2003, the Company had 565,506 shares of Common Stock reserved for issuance upon exercise of
outstanding options granted under the Company’s 1988 Amended and Restated Incentive Stock Option Plan (“1988 Stock Plan”). There were no shares of Common Stock available for future grant under the 1988 Stock Plan. 
  
 (ix) As of December 31, 2003, the Company had 205,560 shares of Common Stock
reserved for future purchase by employees of the Company under the Company’s Employee Stock Purchase Plan. 
  
 With the exception of the foregoing in this Section 3(b), there are no outstanding subscriptions, options, warrants, convertible or exchangeable securities or other
rights granted to or by the 
  

 -3- 

 Company to purchase shares of Common Stock or other securities of the Company and there are no commitments, plans or
arrangements to issue any shares of Common Stock or any security convertible into or exchangeable for Common Stock. 
  
 (c) Subsidiaries. Except as set forth in the SEC Documents or the Disclosure Letter, the Company does not have any subsidiaries (collectively, the
“Subsidiaries,” which, for purposes hereof, shall include any entity in which the Company, directly or indirectly, owns 10% or more of the equity or similar interest), nor does the Company own any capital stock of,
assets comprising the business of, obligations of, or any other interest (including any equity or partnership interest) in, any person or entity. 
  
 (d) Due Authorization. All corporate actions required to be taken on the part of the Company, its stockholders or directors for the authorization,
execution, and delivery of this Agreement and the performance of all obligations of the Company under this Agreement and the authorization, issuance, reservation for issuance and delivery of all of the Purchased Securities being sold under this
Agreement have been taken, no further consent or authorization of the Company or the Board of Directors or its stockholders is required (including with respect to NASD Marketplace Rule 4350(i)(1)(D)), and this Agreement constitutes the legal, valid
and binding obligation of the Company, enforceable against the Company in accordance with its terms, except (i) as may be limited by (1) applicable bankruptcy, insolvency, reorganization or others laws of general application relating to or affecting
the enforcement of creditors’ rights generally and (2) the effect of rules of law governing the availability of equitable remedies and (ii) as rights to indemnity or contribution may be limited under federal or state securities laws or by
principles of public policy thereunder. 
  
 (e) Valid Issuance
of Purchased Securities. 
  
 (i) Purchased Shares.
The Purchased Shares will be, upon payment therefor by the Purchasers in accordance with this Agreement, duly authorized, validly issued, fully paid and non-assessable, free from all taxes, liens, claims, and encumbrances and will not be subject to
any pre-emptive or similar rights. 
  
 (ii) Purchased
Warrants. The warrants to be issued pursuant to this Agreement will be, upon payment therefor by the Purchasers in accordance with this Agreement, duly authorized and validly issued, free from all taxes, liens, claims, and encumbrances and will
not be subject to any pre-emptive or similar rights. 
  
 (iii)
Underlying Shares of Common Stock. The issuance of the shares of Common Stock issued or issuable from time to time upon the exercise of the Purchased Warrants (the “Underlying Shares”) will be, and at all times prior
to such exercise, will have been duly authorized and reserved for issuance upon such exercise and payment of the exercise price of the Purchased Warrants, and will be, upon such exercise and payment, validly issued, fully-paid and non-assessable
free from all taxes, liens, claim, encumbrances and will not be subject to any pre-emptive rights or similar rights that have not otherwise been waived, when issued and delivered in accordance with the terms of this Agreement. 
  

 -4- 

 (iv) Compliance with Securities Laws. Subject to the accuracy of the representations and
warranties made by the Purchasers in Section 4 hereof and their compliance with the agreements set forth therein, the Purchased Securities (assuming no change in applicable law and no unlawful distribution of the Purchased Securities by the
Purchasers or other parties) will be issued to the Purchasers in compliance with applicable exemptions from (1) the registration and prospectus delivery requirements of the Securities Act and (2) the registration and qualification requirements of
all applicable securities laws of the states of the United States. 
  
 (f) Governmental Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, or notice to, any federal, state or local governmental authority or self regulatory
agency on the part of the Company is required in connection with the issuance of the Purchased Securities to the Purchasers, or the consummation of the other transactions contemplated by this Agreement, except (i) such filings as have been made
prior to the date hereof, (ii) the filing of a notification form with The Nasdaq National Market or the Nasdaq SmallCap Market, as applicable (collectively, “Nasdaq”) and (iii) such additional post-Closing filings as may be
required to comply with applicable state and federal securities laws and the listing requirements of Nasdaq. 
  
 (g) Non-Contravention. Except as would not be reasonably likely to have a Material Adverse Effect, the execution, delivery and performance of this
Agreement by the Company, and the consummation by the Company of the transactions contemplated hereby (including issuance of the Purchased Securities), do not (i) contravene or conflict with the Certificate of Incorporation (the
“Certificate of Incorporation”) or Bylaws (the “Bylaws”) of the Company; (ii) constitute a violation of any provision of any federal, state, local or foreign law, rule, regulation, order or decree
applicable to the Company; or (iii) constitute a default or require any consent under, give rise to any right of termination, cancellation or acceleration of, or to a loss of any material benefit to which the Company is entitled under, or result in
the creation or imposition of any lien, claim or encumbrance on any assets of the Company under, any material contract to which the Company is a party or any material permit, license or similar right relating to the Company or by which the Company
may be bound or affected. 
  
 (h) Litigation. There is no
action, suit, proceeding, claim, arbitration, inquiry or investigation (“Action”) pending before any court, public board, government agency, self-regulatory organization or, to the Company’s knowledge, threatened in
writing: (i) against the Company, its activities, properties or assets, or any officer, director or employee of the Company in connection with such officer’s, director’s or employee’s relationship with, or actions taken on behalf of,
the Company, that is reasonably likely to have a Material Adverse Effect on the Company, or (ii) that seeks to prevent, enjoin, alter, challenge or delay the transactions contemplated by this Agreement (including the issuance of the Purchased
Securities). The Company is not a party to or subject to the provision of, any order, writ, injunction, judgment or decree of any court or government agency or instrumentality. The Company does not intend to initiate any Action that is reasonably
likely to have a Material Adverse Effect on the Company. 
  
 (i)
Compliance with Law and Charter Documents; No Defaults. The Company is not in violation or default of any provisions of the Certificate of Incorporation or the Bylaws. To the Company’s knowledge, it has complied and is currently in
compliance with all applicable statutes, 
  

 -5- 

 laws, rules, regulations and orders of the United States of America and all states thereof, foreign countries and other
governmental bodies and agencies having jurisdiction over the Company’s business or properties, except for any instance of non-compliance that has not had, and would not reasonably be expected to have, a Material Adverse Effect. The Company is
not, and has not received notice that it is, in default under or in violation of any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (and no event has
occurred which has not been waived which, with notice or lapse of time or both, would result in a default), except as could not individually or in the aggregate have or result in a Material Adverse Effect. 
  
 (j) Material Non-Public Information. The Company has not provided to
the Purchasers any material non-public information other than information related to the transactions contemplated by this Agreement, all of which information related to the transactions contemplated hereby shall be disclosed by the Company pursuant
to Section 9(m) hereof. 
  
 (k) SEC Documents. 

 
 (1) Reports. The Company has filed in a timely manner all
reports, schedules, forms, statements and other documents required to be filed by it for the twelve months preceding the date hereof with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and the rules and regulations promulgated thereunder. The Company has made available to the Purchasers prior to the date hereof copies of its Annual Report on Form 10-K for the fiscal year ended December 31,
2003 (the “Form 10-K”), its quarterly report on Form 10-Q for the fiscal quarters ended March 31, 2003, June 30, 2003 and September 30, 2003 (the “Form 10-Q”), its Proxy Statement for its Annual
Meeting of Stockholders held on May 16, 2003 (the “Proxy Statement”), and any Current Report on Form 8-K for events occurring since December 31, 2003 (“Form 8-Ks”) filed by the Company with the SEC
(the Form 10-K, the Form 10-Q, the Proxy Statement and the Form 8-Ks are collectively referred to herein as the “SEC Documents”). Each of the SEC Documents, as of the respective dates thereof (or, if amended or superseded by
a filing prior to the Closing Date, then on the date of such filing), did not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading. Each SEC Document, as it may have been subsequently amended by filings made by the Company with the SEC prior to the date hereof, complies in all material respects with the requirements of the Exchange Act
and the rules and regulations of the SEC promulgated thereunder applicable to such SEC Document. 
  
 (2) Sarbanes-Oxley. The Chief Executive Officer and the Chief Financial Officer of the Company have signed, and the Company has furnished to the
SEC, all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. Such certifications contain no qualifications or exceptions to the matters certified therein and have not been modified or withdrawn; and neither the Company
nor any of its officers has received notice from any governmental entity questioning or challenging the accuracy, completeness, form or manner of filing or submission of such certifications. The Company is otherwise in compliance in all material
respects with all applicable effective provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations issued thereunder by the SEC. 
  

 -6- 

 (3) Financial Statements. The financial statements of the Company in the SEC Documents present
fairly, in accordance with United States generally accepted accounting principles (“GAAP”), consistently applied, the financial position of the Company as of the dates indicated, and the results of its operations and cash
flows for the periods therein specified, except as may be otherwise specified in the financial statements or in the notes thereto and subject, in the case of unaudited financial statements for interim periods, to normal year-end audit adjustments.

  
 (l) Absence of Certain Changes Since the Balance Sheet
Date. Since December 31, 2003, the business and operations of the Company have been conducted in the ordinary course consistent with past practice, and there has not been: 
  
 (i) any declaration, setting aside or payment of any dividend or other distribution of the assets of the Company with
respect to any shares of capital stock of the Company or any repurchase, redemption or other acquisition by the Company or any subsidiary of the Company of any outstanding shares of the Company’s capital stock; 
  
 (ii) any damage, destruction or loss, whether or not covered by insurance,
except for such occurrences, individually and collectively, that have not had, and would not reasonably be expected to have, a Material Adverse Effect; 
  
 (iii) any waiver by the Company of a valuable right or of a material debt owed to it, except for such waivers, individually and collectively, that have
not had, and would not reasonably be expected to have, a Material Adverse Effect; 
  
 (iv) any material change or amendment to, or any waiver of any material right under a material contract or arrangement by which the Company or any of its assets or properties is bound or subject; 
  
 (v) any change by the Company in its accounting principles, methods or
practices or in the manner in which it keeps its accounting books and records, except any such change required by a change in GAAP or by the SEC; or 
  
 (vi) any other event or condition of any character, except for such events and conditions that have not resulted, and are not expected to result, either
individually or collectively, in a Material Adverse Effect. 
  
 (m) Intellectual Property. The Company owns, possesses, licenses or has other rights sufficient to use (or could acquire such upon commercially reasonable terms) all patents, patent rights, inventions, trade secrets, know-how,
trademarks, service marks, trade names, copyrights or other information (collectively, “Intellectual Property”), which are necessary to conduct its businesses as currently conducted, except where the failure to currently own or
possess would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. The Company has not received any written notice of, and has no actual knowledge of, any infringement of or conflict with
asserted rights of others with respect to any Intellectual Property which, either individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have a Material Adverse Effect, and to
the Company’s knowledge, none of the patent rights owned or licensed by the Company are unenforceable or invalid. 
  

 -7- 

 (n) Registration Rights. Except as provided in Section 5 herein, effective upon the Closing, the
Company is not currently subject to any agreement providing any person or entity any rights (including piggyback registration rights) to have any securities of the Company registered with the SEC or registered or qualified with any other
governmental authority. 
  
 (o) Title to Property and
Assets. The owned properties and assets of the Company are owned by the Company free and clear of all mortgages, deeds of trust, liens, charges, encumbrances and security interests except for (i) statutory liens for the payment of current taxes
that are not yet delinquent and (ii) liens, encumbrances and security interests that arise in conjunction with arrangements with financial institutions or in the ordinary course of business, and (iii) liens that do not in any material respect affect
the properties and assets of the Company. With respect to the property and assets it leases, the Company is in compliance with such leases in all material respects. 
  
 (p) Taxes. The Company has filed or has valid extensions of the time to file all necessary federal, state, and
foreign income and franchise tax returns due prior to the date hereof and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of any material tax deficiency which has been or might be asserted or threatened against
it. 
  
 (q) Insurance. The Company maintains insurance of
the types and in the amounts that the Company reasonably believes is prudent and adequate for its business, all of which insurance is in full force and effect. 
  

(r) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company. 
  
 (s) Internal Accounting Controls. The
Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles 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. 
  
 (t) Transactions With Officers and Directors. None of the officers or
directors of the Company has entered into any transaction with the Company or any Subsidiary that would be required to be disclosed pursuant to Item 404(a), (b) or (c) of Regulation S-K of the SEC that have not been so disclosed. 
  
 (u) General Solicitation. Neither the Company nor any other person or
entity authorized by the Company to act on its behalf has engaged in a general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) of investors with respect to offers or sales of the Purchased Securities.

  

 -8- 

 (v) Registration Statement Matters. The Company meets the eligibility requirements for use of a
registration statement on Form S-3 for the resale of the Purchased Shares by the Purchasers. Assuming the completion and timely delivery of the Registration Statement Questionnaire (attached hereto as Appendix II) (the “Registration
Statement Questionnaire”) by each Purchaser to the Company, the Company is not aware of any facts or circumstances that would prohibit or delay the preparation and filing of a registration statement with respect to the Registrable
Shares (as defined below). 
  
 (w) No Integrated Offering.
Neither the Company, nor any Affiliate (as hereafter defined) of the Company, nor any person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under
circumstances that would cause this offering of the Purchased Securities to be integrated with prior offerings by the Company for purposes of the Securities Act, any applicable state securities laws or any applicable stockholder approval provisions,
including, without limitation, under the rules and regulations of any national securities exchange or automated quotation system on which any of the securities of the Company are listed or designated, nor will the Company take any action or steps
that would cause the offering in a manner that would require registration of the Purchased Securities to be integrated with other offerings. 
  
 (x) Nasdaq Listing Matters. The Common Stock of the Company is registered and listed on Nasdaq under the ticker symbol “AICX.” The
Company has not received any notice that it is not in compliance with the listing or maintenance requirements of Nasdaq. The issuance and sale of the Purchased Securities under this Agreement does not contravene the rules and regulations of Nasdaq.

  
 4. REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF
THE PURCHASERS. Each Purchaser hereby represents and warrants to the Company, severally and not jointly, and agrees that: 
  
 (a) Organization Good Standing and Qualification. The Purchaser has all corporate, membership or partnership power and authority required to enter
into this Agreement and the Transaction Documents, and to consummate the transactions contemplated hereby and thereby. 
  
 (b) Authorization. The execution of this Agreement has been duly authorized by all necessary corporate, membership or partnership action on the
part of the Purchaser. This Agreement constitutes the Purchaser’s legal, valid and binding obligation, enforceable in accordance with its terms, except (i) as may be limited by (1) applicable bankruptcy, insolvency, reorganization or other laws
of general application relating to or affecting the enforcement of creditors’ rights generally and (2) the effect of rules of law governing the availability of equitable remedies and (ii) as rights to indemnity or contribution may be limited
under federal or state securities laws or by principles of public policy thereunder. 
  

 -9- 

 (c) Litigation. There is no Action pending to which such Purchaser is a party, or, to such
Purchaser’s knowledge, threatened, that is reasonably likely to prevent, enjoin, alter or delay the transactions contemplated by this Agreement. 
  
 (d) Purchase for Own Account. The Purchased Securities are being acquired for investment for the Purchaser’s own account, not as a nominee or
agent, and not with a view to the public resale or distribution thereof within the meaning of the Securities Act, without prejudice, however, to such Purchaser’s right at all times to sell or otherwise dispose of all or any part of such
securities in compliance with applicable federal and state securities laws. The Purchaser also represents that it has not been formed for the specific purpose of acquiring the Purchased Securities and it does not have a present arrangement to effect
a distribution of the Securities to or through any person or entity. 
  
 (e) Investment Experience. The Purchaser understands that the purchase of the Purchased Securities involves substantial risk. The Purchaser has experience as an investor in securities of companies and acknowledges that it can bear
the economic risk of its investment in the Purchased Securities and is presently able to afford a complete loss of such investment. The Purchaser has such knowledge and experience in financial or business matters that it is capable of evaluating the
merits and risks of this investment in the Purchased Securities, and has so evaluated the merits and a risks of such investment and protecting its own interests in connection with this investment. 
  
 (f) Accredited Purchaser Status. At the time the Purchaser was offered
the Purchased Securities, the Purchaser was, and at the date hereof the Purchasers is, an “accredited investor” under the Securities Act. 
  
 (g) Reliance Upon Purchaser’s Representations. The Purchaser understands that the issuance and sale of the Purchased Securities to it will not
be registered under the Securities Act on the ground that such issuance and sale will be exempt from registration under the Securities Act pursuant to Section 4(2) thereof, and that the Company’s reliance on such exemption is based on each
Purchaser’s representations set forth herein. 
  
 (h)
Receipt of Information. The Purchaser has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the issuance and sale of the Purchased Securities and the business, properties, prospects
and financial condition of the Company and to obtain any additional information requested and has received and considered all information it deems relevant to make an informed decision to purchase the Purchased Securities. Neither such inquiries nor
any other investigation conducted by or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right to rely on the truth, accuracy and completeness of such information and the
Company’s representations and warranties contained in this Agreement. 
  
 (i) Restricted Securities. The Purchaser understands that the Purchased Securities have not been registered under the Securities Act and will not sell, offer to sell, assign, pledge, hypothecate or otherwise
transfer any of the Purchased Securities unless (i) pursuant to an effective registration statement under the Securities Act, (ii) such holder provides the Company with 
  

 -10- 

 an opinion of counsel, in a generally acceptable form, to the effect that a sale, assignment or transfer of the Purchased
Securities may be made without registration under the Securities Act and the transferee agrees to be bound by the terms and conditions of this Agreement, (iii) such holder provides the Company with reasonable assurances (in the form of seller and
broker representation letters) that the Purchased Shares or the Underlying Shares, as the case may be, can be sold pursuant to Rule 144 promulgated under the Securities Act (“Rule 144”) or (iv) pursuant to Rule 144(k)
promulgated under the Securities Act following the applicable holding period. Notwithstanding anything to the contrary contained in this Agreement, including but not limited to in Section 5(c)(i) below, the Purchaser may transfer (without
restriction and without the need for an opinion of counsel) the Purchased Shares or the Underlying Shares to its Affiliates (as defined below) provided that each such Affiliate is an “accredited investor” under Regulation D, and such
Affiliate agrees to be bound by the terms and conditions of this Agreement. 
  
 For the purposes of this Agreement, an “Affiliate” of any specified Purchaser means any other person or entity directly or indirectly controlling, controlled by or under direct or indirect common control with such
specified Purchaser. For purposes of this definition, “control” means the power to direct the management and policies of such person or firm, directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise. 
  
 (j) Legends. 
  
 (i) Purchased Shares and Underlying Shares. The Purchaser agrees that
the certificates for the Purchased Shares and the Underlying Shares shall bear the following legend: 
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR WITH ANY STATE SECURITIES COMMISSION, AND MAY NOT BE TRANSFERRED OR DISPOSED OF BY THE HOLDER IN THE ABSENCE OF A REGISTRATION STATEMENT WHICH IS EFFECTIVE UNDER THE SECURITIES ACT AND APPLICABLE STATE LAWS AND RULES, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS. NOTWITHSTANDING THE FOREGOING, THIS LEGEND DOES NOT RESTRICT
THE SECURITIES FROM BEING PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.” 
  
 In addition, the Purchaser agrees that the Company may place stop transfer orders with its transfer agent with respect to such certificates in order to implement the
restrictions on transfer set forth in this Agreement. The appropriate portion of the legend and the stop transfer orders will be removed promptly upon delivery to the Company of such satisfactory evidence as reasonably may be required by the Company
that such legend or stop orders are not required to ensure compliance with the Securities Act. 
  

 -11- 

 (ii) Warrant. The Purchase agrees that Warrants shall bear the following legend: 
  
 “THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR WITH ANY STATE SECURITIES COMMISSION, AND MAY NOT BE TRANSFERRED OR DISPOSED OF BY THE HOLDER IN THE ABSENCE OF A REGISTRATION STATEMENT WHICH IS EFFECTIVE UNDER
THE SECURITIES ACT AND APPLICABLE STATE LAWS AND RULES, OR, PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR
BLUE SKY LAWS. NOTWITHSTANDING THE FOREGOING, THIS LEGEND DOES NOT RESTRICT THE SECURITIES FROM BEING PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.” 
  
 (k) Questionnaires. The Purchaser has completed or caused to be
completed the Stock Certificate Questionnaire and the Registration Statement Questionnaire for use in preparation of the Registration Statement (as defined in Section 5(a)(ii) below), and the answers to such questionnaires are true and correct as of
the date of this Agreement; provided, that the Purchasers shall be entitled to update such information by providing written notice thereof to the Company before the effective date of the Registration Statement. 
  
 (l) Restrictions on Short Sales. The Purchaser represents, warrants
and covenants neither the Purchaser nor any Affiliate of such Purchaser which (x) had knowledge of the transactions contemplated hereby, (y) has or shares discretion relating to such Purchaser’s investments or trading or information concerning
such Purchaser’s investments, including in respect of the Purchased Securities, or (z) is subject to such Purchaser’s review or input concerning such Affiliate’s investments or trading, has engaged in, or will, directly or indirectly,
during the period beginning on the date on which C.E. Unterberg, Towbin, a financial advisor to the Company, first contacted such Purchaser regarding the transactions contemplated by this Agreement (and involving the Company) and ending on the
Closing Date, engage in (i) any “short sales” (as such term is defined in Rule 3b-3 promulgated under the Exchange Act) of the Common Stock, including, without limitation, the maintaining of any short position with respect to, establishing
or maintaining a “put equivalent position” (within the meaning of Rule 16a-1(h) under the Exchange Act) with respect to, entering into any swap, derivative transaction or other arrangement (whether any such transaction is to be settled by
delivery of Common Stock, other securities, cash or other consideration) that transfers to another, in whole or in part, any economic consequences or ownership, or otherwise dispose of, any of the Purchased Securities by the Purchaser or (ii) any
hedging transaction which establishes a net short position with respect to the Purchased Securities 
  

 -12- 

 (clauses (i) and (ii) together, a “Short Sale”); except for (1) Short Sales by the Purchaser or
Affiliate of such Purchaser which was, prior to the date on which such Purchaser was first contacted by C.E. Unterberg, Towbin regarding the transactions contemplated by this Agreement, a market maker for the Common Stock, provided that such Short
Sales are in the ordinary course of business of such Purchaser or Affiliate of such Purchaser and are in compliance with the Securities Act, the rules and regulations of the Securities Act and such other securities laws as may be applicable, (2)
Short Sales by the Purchaser or an Affiliate of such Purchaser which by virtue of the procedures of such Purchaser are made without knowledge of the transactions contemplated by this Agreement or (3) Short Sales by the Purchaser or an Affiliate of
such Purchaser to the extent that such Purchaser or Affiliate of such Purchaser is acting in the capacity of a broker-dealer executing unsolicited third-party transactions. 
  
 (m) Confidentiality. The Purchaser agrees to use any information it receives in the course of and in connection with
this transaction for the sole purpose of evaluating a possible investment in the Purchased Securities and the Purchaser hereby acknowledges that it is prohibited from reproducing or distributing any such information, this Agreement, or any other
offering materials provided by the Company in connection with the Purchaser’s consideration of its investment in the Company, in whole or in part, or divulging or discussing any of their contents except to its advisors and representatives for
the purpose of evaluating such investment. The foregoing agreements shall not apply to any information that is or becomes publicly available through no fault of the Purchaser, or that the Purchaser is legally required to disclose; provided,
however, that if the Purchaser is requested or ordered to disclose any such information pursuant to any court or other governmental order or any other applicable legal procedure, it shall (to the extent permitted by law) provide the Company with
reasonably prompt notice of any such request or order to enable the Company to seek an appropriate protective order and shall provide the Company with reasonable assistance in obtaining such protective order at the Company’s sole expense.
Notwithstanding anything herein to the contrary, any party to this Agreement (and any employee, representative, or other agent of any party to this Agreement) may disclose to any and all persons, without limitation of any kind, the tax treatment and
tax structure of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure. However, any such information
relating to the tax treatment or tax structure is required to be kept confidential to the extent necessary to comply with any applicable federal or state securities laws. 
  
 5. FORM D FILING; REGISTRATION; COMPLIANCE WITH THE SECURITIES ACT. 
  
 (a) Form D Filing; Registration of the Purchased Shares and the
Underlying Shares. The Company hereby agrees that it shall: 
  
 (i) file in a timely manner a Form D relating to the sale of the Purchased Securities under this Agreement, pursuant to Regulation D promulgated under the Securities Act; 
  
 (ii) prepare and file with the SEC as soon as practicable and in no event later than thirty (30) days following the
Closing, a registration statement on Form S-3 (the “Registration Statement”), to enable the resale of the Purchased Shares and the sale of the 
  

 -13- 

 Underlying Shares (together with any shares of Common Stock issued as a dividend or other distribution with respect to,
or in exchange for, or in replacement of, the Purchased Shares or the Underlying Shares, the “Registrable Shares”) by the Purchasers from time to time on Nasdaq and use all commercially reasonable efforts to cause such
Registration Statement to be declared effective as promptly as possible after filing, but in any event, within ninety (90) days following the Closing Date or, in the event of a review of the Registration Statement by the SEC, within one hundred
twenty (120) days following the Closing Date, and to remain continuously effective until the earlier of (1) the second anniversary of the Closing Date, (2) the date on which all Registrable Shares purchased by the Purchasers pursuant to this
Agreement have been sold thereunder or (3) the date on which the Registrable Shares can be sold by nonaffiliates of the Company pursuant to Rule 144(k) promulgated under the Securities Act (the “Registration Period”). In the
event that the Company does not meet the requirements for the use of Form S-3, the Company shall use such other form as is available for such a registration, and shall convert such other form to Form S-3, or file a replacement registration statement
on Form S-3, promptly after the first date on which it meets such requirements; 
  
 (iii) prepare and file with the SEC such amendments (including post-effective amendments) and supplements to the Registration Statement and the Prospectus (as defined below) used in connection therewith as may be
necessary to keep the Registration Statement effective at all times until the end of the Registration Period; 
  
 (iv) furnish to the Purchasers with respect to the Registrable Shares registered under the Registration Statement such reasonable number of copies of any
Prospectus in conformity with the requirements of the Securities Act and such other documents as the Purchaser may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Registrable Shares by the
Purchasers; 
  
 (v) use its commercially reasonable efforts to
file documents required of the Company for normal blue sky clearance in states specified in writing by the Purchasers; provided, however, that the Company shall not be required to qualify to do business or consent to service of process in any
jurisdiction in which it is not now so qualified or has not so consented; 
  
 (vi) take all such action as is required of it to cause the Registrable Shares to be listed on Nasdaq on the Closing Date; 
  
 (vii) promptly notify the Purchasers in writing when the Registration Statement has been declared effective; 
  
 (viii) promptly notify the Purchasers in writing of the existence of any
fact or the happening of any event, during the Registration Period (but not as to the substance of any such fact or event), that makes any statement of a material fact made in the Registration Statement, the Prospectus, any amendment or supplement
thereto, or any document incorporated by reference therein untrue, or that requires the making of any additions to or changes in the Registration Statement or the Prospectus in order to make the statements therein not misleading (provided,
however, that no notice by the Company shall be required pursuant to this subsection (viii) in the event that the Company either contemporaneously files a prospectus supplement to update the 
  

 -14- 

 Prospectus or a Form 8-K or other appropriate Exchange Act report that is incorporated by reference into the Registration
Statement, which, in either case, contains the requisite information with respect to such material event that results in such Registration Statement no longer containing any such untrue or misleading statements); 
  
 (ix) furnish to each Purchaser upon written request, from the date of this
Agreement until the end of the Registration Period, one copy of its periodic reports filed with the SEC pursuant to the Exchange Act and the rules and regulations promulgated thereunder; and 
  
 (x) bear all expenses in connection with the procedures described in
paragraphs (i) through (ix) of this Section 5(a) and the registration of the Registrable Shares pursuant to the Registration Statement other than fees and expenses, if any, of legal counsel or other advisers to the Purchasers or underwriting
discounts, brokerage fees and commissions incurred by the Purchasers, if any. 
  
 It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 5(a) with respect to Registrable Shares held by a Purchaser that such Purchaser shall timely furnish to the Company a completed
Registration Statement Questionnaire on or before the Closing Date and such other written information regarding itself, the Registrable Shares to be sold by such Purchaser, and the intended method of disposition of the Registrable Shares as shall be
required to effect the registration of the Registrable Shares. The Purchasers shall update such information as and when necessary by written notice to the Company. 
  
 (b) Liquidated Damages. 
  
 (i) Delay in Filing or Effectiveness of Registration Statement. In the event that the Registration Statement is not: 
  
 A. filed with the SEC within thirty (30) days following the Closing Date or

  
 B. declared effective within ninety (90) days following the
Closing Date or, in the event of a review of the Registration Statement by the SEC, within one hundred twenty (120) days following the Closing Date, 
  
 in either case (each being an “Event”) the Company shall pay to each Purchaser liquidated damages (in addition to the rights and remedies available to each
Purchaser under applicable law and this Agreement) at a rate equal to one percent (1%) per month (prorated for the actual number of days elapsed) that the Event remains ongoing of the total purchase price of the Purchased Securities purchased by
such Purchaser pursuant to this Agreement. Such liquidated damages shall be payable monthly in cash. 
  
 (ii) Lapse in Effectiveness of Registration Statement. In the event that the Registration Statement is filed and declared effective but, during
the Registration Period, shall thereafter cease to be effective or useable or the prospectus included in the Registration Statement (the “Prospectus,” as amended or supplemented by any prospectus supplement and by all other

  

 -15- 

 amendments thereto and all material incorporated by reference in such Prospectus) ceases to be usable, in either case, in
connection with resales of Registrable Shares, other than a lapse (A) resulting from events covered in Section 5(c)(ii) below that is cured within the Grace Period (as defined in Section 5(c)(ii)), or (B) resulting from events covered in Section
5(c)(iii) below that is cured within fifteen (15) business days (the “Cure Period”) by a post-effective amendment to the Registration Statement, a supplement to the Prospectus or a report filed with the SEC pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, then the Company shall pay to each Purchaser, liquidated damages (in addition to the rights and remedies available to each Purchaser under applicable law and this Agreement), for the period from
and including the first day following the expiration of the Grace Period or Cure Period, as applicable, until, but excluding, the earlier of (1) the date on which such failure is cured and (2) the date on which the Registration Period expires, at a
rate equal to one percent (1%) per month (prorated for the actual number of days elapsed) of the number of Purchased Securities then held by such Purchaser multiplied by the purchase price paid by the Purchaser for such shares. Such liquidated
damages shall be payable monthly in cash. 
  
 (c) Transfer of
Registrable Shares After Registration; Suspension. 
  
 (i)
The Purchasers agree that they will not offer to sell or make any sale, assignment, pledge, hypothecation or other transfer with respect to the Registrable Shares that would constitute a sale within the meaning of the Securities Act except pursuant
to either (1) the Registration Statement, (2) Rule 144 of the Securities Act or (3) any other exemption from registration under the Securities Act, and that they will promptly notify the Company of any changes in the information set forth in the
Registration Statement after it is prepared regarding the Purchaser or its plan of distribution to the extent required by applicable law. 
  
 (ii) In addition to any suspension rights under paragraph (iii) below, upon the happening of any pending corporate development, public filing with the
SEC or other similar event that, in the judgment of Company’s Board of Directors, renders it advisable to suspend use of the Prospectus or upon the request by an underwriter in connection with an underwritten public offering of the
Company’s securities, the Company may, on not more than two (2) occasions per 365 day period, with all suspensions during any such 365 day period not exceeding sixty (60) days in the aggregate (the “Grace Period”),
suspend use of the Prospectus, on written notice to each Purchaser (which notice will not disclose the content of any material non-public information and will indicate the date of the beginning and end of the intended or anticipated period of
suspension, if known), in which case each Purchaser shall discontinue disposition of Registrable Shares covered by the Registration Statement or Prospectus until copies of a supplemented or amended Prospectus are distributed to the Purchasers or
until the Purchasers are advised in writing by the Company that sales of Registrable Shares under the applicable Prospectus may be resumed and have received copies of any additional or supplemental filings that are incorporated or deemed
incorporated by reference in any such Prospectus. The suspension and notice thereof described in this Section 5(c)(ii) shall be held in strictest confidence and shall not be disclosed by the Purchasers. 
  
 (iii) Subject to paragraph (iv) below, in the event of: (1) any request by
the SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to a Registration Statement or related prospectus or for additional information, (2) the
issuance by the SEC or any other federal or state 
  

 -16- 

 governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of
any proceedings for that purpose, or (3) the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Shares for sale in any jurisdiction or the
initiation of any proceeding for such purpose, then the Company shall deliver a certificate in writing to the Purchasers (the “Suspension Notice”) to the effect of the foregoing (which notice will not disclose the content of
any material non-public information and will indicate the date of the beginning and end of the intended period of suspension, if known), and, upon receipt of such Suspension Notice, the Purchasers will discontinue disposition of Registrable Shares
covered by to the Registration Statement or Prospectus (a “Suspension”) until the Purchasers’ receipt of copies of a supplemented or amended Prospectus prepared and filed by the Company, or until the Purchasers are
advised in writing by the Company that the current Prospectus may be used, and have received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in any such prospectus. In the event of any
Suspension, the Company will use its commercially reasonable efforts to cause the use of the Prospectus so suspended to be resumed as soon as possible after delivery of a Suspension Notice to the Purchasers. The Suspension and Suspension Notice
described in this Section 5(c)(iii) shall be held in strictest confidence and shall not be disclosed by the Purchasers. 
  
 (iv) Provided that a Suspension is not then in effect, the Purchasers may sell Registrable Shares under the Registration Statement, provided that the
selling Purchaser arranges for delivery of a current Prospectus to the transferee of such Registrable Shares to the extent such delivery is required by applicable law. 
  
 (v) In the event of a sale of Registrable Shares by a Purchaser, such Purchaser must also deliver to the Company’s
transfer agent, with a copy to the Company, a certificate of subsequent sale or other documentation reasonably satisfactory to the Company, so that ownership of the Registrable Shares may be properly transferred. The Company will cooperate to
facilitate the timely preparation and delivery of certificates (unless otherwise required by applicable law) representing Registrable Shares sold. 
  
 (d) Indemnification. For the purpose of this Section 5(d), the term “Registration Statement” shall include any preliminary
or final Prospectus, exhibit, supplement or amendment included in or relating to the Registration Statement referred to in Section 5(a). 
  
 (i) Indemnification by the Company. The Company agrees to indemnify and hold harmless each of the Purchasers and each person, if any, who controls
any Purchaser within the meaning of the Securities Act, to the fullest extent permitted by law, against any and all losses, claims, damages, liabilities or expenses, joint or several, to which such Purchasers or such controlling person may become
subject, under the Securities Act, the Exchange Act or any other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of the
Company, which consent shall not be unreasonably withheld), insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof as contemplated below) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Registration Statement, the Prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state in any of them a material fact required to be
stated 
  

 -17- 

 therein or necessary to make the statements in any of them, in light of the circumstances under which they were made, not
misleading, and will reimburse each Purchaser and each such controlling person for any reasonable legal expenses incurred by one law firm representing all indemnified parties and other expenses as such reasonable expenses are incurred by such
Purchaser or such controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the Company will not be liable in any such
case to the extent that any such loss, claim, damage, liability, expense or action arises out of or is based upon (1) an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the Prospectus
or any amendment to or supplement of the Registration Statement or Prospectus made in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Purchaser expressly for use in the Registration Statement
or the Prospectus, (2) the failure of such Purchaser to comply with the covenants and agreements contained in this Agreement respecting resale of the Purchased Shares or the sale of the Underlying Shares, (3) any untrue statement or omission of a
material fact required to make such statement not misleading in any Prospectus that is corrected in any subsequent Prospectus that was delivered to the Purchaser before the pertinent sale or sales by the Purchaser, or (4) an act of gross negligence
or willful misconduct by the Purchaser. 
  
 (ii)
Indemnification by the Purchaser. Each Purchaser will severally and not jointly 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, against any losses, claims, damages, liabilities or expenses to which the Company, its directors, its officers who signed the Registration Statement and any controlling persons may become
subject, under the Securities Act, the Exchange Act, or any other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of such
Purchaser, which consent shall not be unreasonably withheld) insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof as contemplated below) arise out of or are based upon any untrue or alleged untrue statement
of any material fact contained in the Registration Statement, the Prospectus, or any amendment or supplement to the Registration Statement or Prospectus, or arise out of or are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the
Registration Statement, the Prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Purchaser expressly for use therein, and the Purchaser will
reimburse the Company, each of its directors, each of its officers who signed the Registration Statement, and any controlling persons for any reasonable legal expenses incurred by one law firm representing all indemnified parties and other expense
incurred by the Company, its directors, its officers who signed the Registration Statement, and any controlling persons, in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense
or action; provided, however, that the Purchaser shall not be liable for any such untrue or alleged untrue statement or omission or alleged omission with respect to which the Purchaser has delivered to the Company in writing a correction
before the occurrence of the event from which such loss was incurred. Notwithstanding the provisions of this Section 5(d), the Purchaser shall not be liable for any indemnification obligation under this Agreement in excess of the aggregate amount of
net proceeds received by the Purchaser from the sale of the Registrable Shares pursuant to the Registration Statement. 
  

 -18- 

 (iii) Indemnification Procedure. 
  
 (1) Promptly after receipt by an indemnified party under this Section 5(d) of notice of the threat or 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 5(d), promptly notify the indemnifying party in writing of the claim; 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 under the indemnity agreement contained in this Section 5(d) or otherwise, to the extent it is not prejudiced as a result of such
failure. 
  
 (2) 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 may wish, jointly with all other indemnifying parties
similarly notified, 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 there may be a conflict 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
or other indemnified parties that 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 its 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 5(d) for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless:

  
 a) the indemnified party shall have employed such counsel in
connection with the assumption of legal defenses in accordance with the proviso to the preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel, approved by
such indemnifying party, representing all of the indemnified parties who are parties to such action); or 
  
 b) 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 against the indemnified party, 
  
 in each of which cases the reasonable fees and expenses of counsel for the indemnified party shall be at the expense of the indemnifying party. 
  
 (iv) Contribution. If the indemnification provided for in this Section 5(d) is required by its terms but is for any
reason held to be unavailable to, or is otherwise insufficient to hold harmless, an indemnified party under this Section 5(d) with respect to any losses, claims, 
  

 -19- 

 damages, liabilities or expenses referred to in this Agreement, then each indemnifying party shall contribute to the
amount paid or payable by such indemnified party as a result of any losses, claims, damages, liabilities or expenses referred to in this Agreement: 
  
 (1) in such proportion as is appropriate to reflect the relative faults of the Company and the Purchaser in connection with the statements or omissions
or inaccuracies in the representations and warranties in this Agreement that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations, or 
  
 (2) if the allocation provided by clause (1) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative faults referred to in clause (1) above but the relative benefits received by the Company and the Purchaser from the sale of the Purchased Securities. 

 
 The respective relative benefits received by the Company on the one hand and each
Purchaser on the other shall be deemed to be in the same proportion as the amount to which the consideration paid by such Purchaser to the Company pursuant to this Agreement for the Purchased Securities purchased by such Purchaser that were sold
pursuant to the Registration Statement bears to the difference (the “Difference”) between the amount such Purchaser paid for the Purchased Securities that were sold pursuant to the Registration Statement and the amount
received by such Purchaser from such sale. The relative fault of the Company and each Purchaser shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact or the inaccurate or the alleged inaccurate material fact relates to information supplied by the Company or by such Purchaser 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 5(d)(iii), any reasonable legal or other fees or expenses incurred by such party in connection with investigating or defending any such action or claim. The provisions set forth in Section 5(d)(iii) with respect to the notice of the threat
or commencement of any threat or action shall apply if a claim for contribution is to be made under this Section 5(d)(iv); provided, however, that no additional notice shall be required with respect to any threat or action for which notice has been
given under Section 5(d)(iii) for purposes of indemnification. The Company and each Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 5(d)(iv) were determined solely by pro rata allocation (even if the
Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this paragraph. Notwithstanding the provisions of this Section 5(d)(iv), no
Purchaser shall be required to contribute any amount in excess of the amount by which the Difference exceeds the amount of any damages that such Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. 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 is not guilty of such fraudulent misrepresentation. The
Purchasers’ obligations to contribute pursuant to this Section 5(d)(iv) are several and not joint. 
  

 -20- 

 (e) Rule 144 Information. For two years after the date of this Agreement, the Company shall file
in a timely manner all reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations promulgated thereunder and shall take such further action to the extent required to enable the Purchasers to sell
the Purchased Shares and the Underlying Shares pursuant to Rule 144 under the Securities Act (as such rule may be amended from time to time). 
  
 6. ADVISORY FEE. The Purchasers acknowledge that the Company intends to pay to C.E. Unterberg, Towbin, as financial advisor, a fee in
respect of the sale of the Purchased Securities. Each of the parties to this Agreement hereby represents that, on the basis of any actions and agreements by it, there are no other brokers or finders entitled to compensation in connection with the
sale of the Purchased Securities to the Purchasers. The Company shall indemnify and hold harmless the Purchasers from and against all fees, commissions or other payments owing by the Company to C.E. Unterberg, Towbin or any other person or firm
acting on behalf of the Company hereunder. 
  
 7. CONDITIONS
TO THE PURCHASER’S OBLIGATIONS AT CLOSING. The obligations of the Purchasers under Section 1(b) of this Agreement are subject to the fulfillment or waiver, on or before the Closing, of each of the following conditions: 
  
 (a) Representations and Warranties True. Each of the representations
and warranties of the Company contained in Section 3 shall be true and correct in all material respects on and as of the date hereof (provided, however, that such qualification shall only apply to representations or warranties not otherwise
qualified by materiality) and on and as of the date of the Closing with the same effect as though such representations and warranties had been made as of the Closing. 
  
 (b) Performance. The Company shall have performed and complied in all material respects with all agreements,
obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing and shall have obtained, unless otherwise waived by the Purchasers, all approvals, consents and qualifications
necessary to complete the purchase and sale described herein; provided, however, that the Company may furnish to each Purchaser a facsimile copy of the warrant representing the Purchased Warrants and of the stock certificate representing the
Purchased Shares, with the original warrant and original stock certificate held in trust by counsel for the Company until delivery thereof by the second business day following the Closing. 
  
 (c) Compliance Certificate. The Company will have delivered to the
Purchasers a certificate signed on its behalf by its Chief Executive Officer or Chief Financial Officer certifying that the conditions specified in Sections 7(a) and 7(b) hereof have been fulfilled. 
  
 (d) Agreement. The Company shall have executed and delivered to the
Purchasers this Agreement. 
  
 (e) Securities Exemptions.
The offer and sale of the Purchased Securities to the Purchasers pursuant to this Agreement shall be exempt from the registration requirements of the Securities Act and the registration and/or qualification requirements of all applicable state
securities laws. 
  

 -21- 

 (f) No Suspension of Trading or Listing of Common Stock. The Common Stock of the Company (i) shall
be designated for quotation or listed on Nasdaq and (ii) shall not have been suspended from trading on Nasdaq. 
  
 (g) Good Standing Certificates. The Company shall have delivered to the Purchasers a certificate of the Secretary of State of the State of
Delaware, dated as of a date within five days of the date of the Closing, with respect to the good standing of the Company. 
  
 (h) Secretary’s Certificate. The Company shall have delivered to the Purchasers a certificate of the Company executed by the Company’s
Secretary attaching and certifying to the truth and correctness of (1) the Certificate of Incorporation, (2) the Bylaws and (3) the resolutions adopted by the Company’s Board of Directors in connection with the transactions contemplated by this
Agreement. 
  
 (i) Opinion of Company Counsel. The
Purchasers will have received an opinion on behalf of the Company, dated as of the date of the Closing, from Wilson Sonsini Goodrich & Rosati, counsel to the Company, in the form attached as Exhibit C. 
  
 (j) No Statute or Rule Challenging Transaction. No statute, rule,
regulation, executive order, decree, ruling, injunction, action, proceeding or interpretation shall have been enacted, entered, promulgated, endorsed or adopted by any court or governmental authority of competent jurisdiction or any self-regulatory
organization or the staff of any of the foregoing, having authority over the matters contemplated hereby which questions the validity of, or challenges or prohibits the consummation of, any of the transactions contemplated by this Agreement.

  
 (k) Minimum Investment. A minimum of 3,000,000 Units
shall be subscribed for, to be issued and sold in connection with the Closing. 
  
 (l) No Material Adverse Effect. No Material Adverse Effect shall have occurred. 
  
 (m) Other Actions. The Company shall have executed such certificates, agreements, instruments and other documents, and taken such other actions as
shall be customary or reasonably requested by the Purchasers in connection with the transactions contemplated hereby. 
  
 8. CONDITIONS TO THE COMPANY’S OBLIGATIONS AT CLOSING. The obligations of the Company to the Purchasers under this Agreement are
subject to the fulfillment or waiver, on or before the Closing, of each of the following conditions: 
  
 (a) Representations and Warranties True. The representations and warranties of the Purchasers contained in Section 4 shall be true and correct in
all material respects on and as of the date hereof (provided, however, that such qualification shall only apply to representations and warranties not otherwise qualified by materiality) and on and as of the date of the Closing with the same
effect as though such representations and warranties had been made as of the Closing. 
  

 -22- 

 (b) Performance. The Purchasers shall have performed and complied in all material respects with
all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing and shall have obtained, unless otherwise waived by the Company, all approvals, consents and
qualifications necessary to complete the purchase and sale described herein. 
  
 (c) Agreement. The Purchasers shall have executed and delivered to the Company this Agreement (and Appendix I and Appendix II hereto). 
  
 (d) Securities Exemptions. The offer and sale of the Purchased Securities to the Purchasers pursuant to this
Agreement shall be exempt from the registration requirements of the Securities Act and the registration and/or qualification requirements of all applicable state securities laws. 
  
 (e) Payment of Purchase Price. The Purchasers shall have delivered to the Company by wire transfer of immediately
available funds, full payment of the purchase price for the Purchased Securities as specified in Section 1(b). 
  
 (f) Other Actions. The Purchasers shall have executed such certificates, agreements, instruments and other documents, and taken such other actions
as shall be customary or reasonably requested by the Company in connection with the transactions contemplated hereby. 
  
 (g) No Statute or Rule Challenging Transaction. No statute, rule, regulation, executive order, decree, ruling, injunction, action, proceeding or
interpretation shall have been enacted, entered, promulgated, endorsed or adopted by any court or governmental authority of competent jurisdiction or any self-regulatory organization or the staff of any of the foregoing, having authority over the
matters contemplated hereby which questions the validity of, or challenges or prohibits the consummation of, any of the transactions contemplated by this Agreement. 
  
 9. MISCELLANEOUS. 
  
 (a) Successors and Assigns. The terms and conditions of this Agreement will inure to the benefit of and be binding upon the respective successors
and permitted assigns of the parties. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchasers holding at least a majority of the total aggregate number of Purchased
Shares and Underlying Shares then outstanding (excluding any shares sold to the public pursuant to Rule 144 or otherwise). Any Purchaser may assign its rights under this Agreement to any person to whom the Purchaser assigns or transfers any
Purchased Securities, provided that such transferee agrees in writing to be bound by the terms and provisions of this Agreement, and such transfer is in compliance with the terms and provisions of this Agreement and permitted by federal and state
securities laws. 
  
 (b) Governing Law. This Agreement will
be governed by and construed and enforced under the internal laws of the State of New York, without reference to principles of conflict of laws or choice of laws. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 
  

 -23- 

 (c) Survival. The representations and warranties of the Company and the Purchasers contained in
Sections 3 and 4 of this Agreement shall survive until the first (1st) anniversary of the Closing Date. 
  
 (d) Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which together
will constitute one and the same instrument. 
  
 (e)
Headings. The headings and captions used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs, exhibits and
schedules will, unless otherwise provided, refer to sections and paragraphs hereof and exhibits and schedules attached hereto, all of which exhibits and schedules are incorporated herein by reference. 
  
 (f) Notices. Any notices and other communications required or
permitted under this Agreement shall be in writing and shall be delivered (i) personally by hand or by courier, (ii) mailed by United States first-class mail, postage prepaid or (iii) sent by facsimile directed (1) if to the Purchaser, at the
Purchaser’s address or facsimile number set forth on Exhibit A to this Agreement, or at such address or facsimile number as the Purchaser may designate by giving at least ten (10) days’ advance written notice to the Company or (2) if to
the Company, to its address or facsimile number set forth below, or at such other address or facsimile number as the Company may designate by giving at least ten (10) days’ advance written notice to the Purchaser. All such notices and other
communications shall be deemed given upon (i) receipt or refusal of receipt, if delivered personally, (ii) three days after being placed in the mail, if mailed, or (iii) confirmation of facsimile transfer, if faxed. 
  
 The address of the Company for the purpose of this Section 9(f) is as follows: 
  
 Applied Imaging Corp. 
 2380 Walsh Avenue, Building B 
 Santa Clara, California, 95051 
 Tel: (408) 562-0250 
 Fax: (408) 562-0264 
 Attention: Barry Hotchkies, CFO 
  
 with
a copy to: 
  
 Wilson Sonsini Goodrich &
Rosati 
 650 Page Mill Road 
 Palo Alto, California, 94304 
 Tel: (650) 320-4872 
 Fax: (650) 493-6811 
 Attention: David J. Saul 
  

 -24- 

 (g) Amendments and Waivers. This Agreement may be amended and the observance of any term of this
Agreement may be waived only with the written consent of the Company and the Purchasers holding at least a majority of the total aggregate number of Purchased Shares and Underlying Shares then outstanding (excluding any shares sold to the public
pursuant to Rule 144 or otherwise). Any amendment effected in accordance with this Section 9(g) will be binding upon the Purchasers, the Company and their respective successors and assigns. 
  
 (h) Severability. If any provision of this Agreement is held to be
unenforceable under applicable law, such provision will be excluded from this Agreement and the balance of the Agreement will be interpreted as if such provision were so excluded and will be enforceable in accordance with its terms. 
  
 (i) Entire Agreement. This Agreement, together with all exhibits and
schedules hereto and thereto constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings, duties or obligations
between the parties with respect to the subject matter hereof. 
  
 (j) Further Assurances. From and after the date of this Agreement, upon the request of the Company or the Purchasers, the Company and the Purchasers will execute and deliver such instruments, documents or other writings, and take
such other actions, as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement. 
  
 (k) Meaning of Include and Including. Whenever in this Agreement the word “include” or “including” is used, it shall be deemed
to mean “include, without limitation” or “including, without limitation,” as the case may be, and the language following “include” or “including” shall not be deemed to set forth an exhaustive list.

  
 (l) Fees, Costs and Expenses. Except as otherwise
provided for in this Agreement, all fees, costs and expenses (including attorneys’ fees and expenses) incurred by any party hereto in connection with the preparation, negotiation and execution of this Agreement and the exhibits and schedules
hereto and the consummation of the transactions contemplated hereby and thereby (including the costs associated with any filings with, or compliance with any of the requirements of any governmental authorities), shall be the sole and exclusive
responsibility of such party. 
  
 (m) 8-K Filing and
Publicity. The Company shall, before 8:30 a.m., New York time, on the first business day following the Closing Date, issue a press release disclosing all material terms of the transactions contemplated by this Agreement. Within one (1) business
day after the Closing Date, the Company shall file a Current Report on Form 8-K with the SEC describing the terms of the transactions contemplated by this Agreement and attaching this Agreement and the press release referred to below as exhibits to
such filing (the “8-K Filing” including all attachments) in accordance with applicable law. Neither the Company nor any Purchaser shall issue any press releases or any other public statements with respect to the transactions
contemplated by this Agreement; provided, however, that the Company shall be entitled, 
  

 -25- 

 without the prior approval of any Purchaser, to issue any press release or make any other public disclosure (including a
press release (concerning the offering of the Purchased Securities) pursuant to Rule 135(c) under the Securities Act) with respect to such transactions (i) in substantial conformity with the 8-K Filing and (ii) as is required by applicable law,
regulations, and Nasdaq rules; and, provided further, that no such release may identify a Purchaser unless such Purchaser has consented thereto in writing, or as required by law. 
  
 (n) Stock Splits, Dividends and other Similar Events. The provisions of this Agreement shall be appropriately
adjusted to reflect any stock split, stock dividend, reorganization or other similar event that may occur with respect to the Company after the date hereof. 
  
 (o) Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each Purchaser
and the Company will be entitled to specific performance under this Agreement. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence
and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be adequate. 
  
 [Remainder of page intentionally left blank.] 
  
 * * * 
  

 -26- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above
written. 
  

			
	APPLIED IMAGING CORP.
		
	 By:
	 	 /s/    Carl Hull

		
	 Name:
	 	 Carl Hull

		
	 Title:
	 	 CEO

  
 [PURCHASER
SIGNATURE PAGES TO FOLLOW] 

 SIGNATURE PAGE TO 
  
 SECURITIES PURCHASE AGREEMENT 
  
 DATED AS OF APRIL 13, 2004 
  

BY AND AMONG 
  
 APPLIED IMAGING CORP. 
  
 AND EACH PURCHASER NAMED THEREIN 
  
 The undersigned hereby executes and delivers to Applied Imaging Corp., the Purchase Agreement (the “Agreement”) to which this
signature page is attached effective as of the date of the Agreement, which Agreement and signature page, together with all counterparts of such Agreement and signature pages of the other Purchasers named in such Agreement, shall constitute one and
the same document in accordance with the terms of such Agreement. 
  

			
	 Number of Units:
	 	  

		
	 Purchaser:
	 	  

		
	 Signature:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  

		
	 Address:
	 	  

		
	 	 	  

		
	 	 	  

		
	 Telephone:
	 	  

		
	 Fax:
	 	  

		
	 Tax ID Number:
	 	  

 Exhibit A 
  
 Schedule of Purchasers 
  

								
	 Name and Address

	  	 Number of
 Purchased Shares

	  	 Number of
 Warrants

	  	Purchase Price

	 Bluegrass Growth Fund LP
 115 East 57th Street, Suite 1111
 New York, NY 10022
	  	325,000	  	65,000	  	$	445,250
				
	 Deephaven Small Cap Growth Fund LLC
 130 Cheshire Lane
 Minnetonka, MN 55305
	  	325,000	  	65,000	  	$	445,250
				
	 Diker Micro Value Fund, LP
 c/o Diker Management, LLC
 745 Fifth Avenue, Suite 1409
 New York, NY 10151
	  	350,000	  	70,000	  	$	479,500
				
	 Laurence W. Lytton
     address until April 30, 2004
 308 West 90th St., 5th Floor
 New York, NY 10024
	  	50,000	  	10,000	  	$	68,500
				
	     address after April 30, 2004
 467 CPW #17A
 New York, NY 10025
	  	 	  	 	  	 	 
				
	 Maig Partners L.P.
 200 E. 57th St. Suite 12N
 New York, NY 10022
	  	25,000	  	5,000	  	$	34,250
				
	 MedCap Partners L.P.
 500 Third Street, Suite 535
 San Francisco, CA 94107
	  	325,000	  	65,000	  	$	445,250
				
	 SF Capital Partners Ltd
 c/o Staro Asset Management, L.L.C.
 3600 South Lake Drive
 St. Francis, WI 53235
	  	1,700,000	  	340,000	  	$	2,329,000
				
	 Total:
	  	3,100,000	  	620,000	  	$	4,247,000

 Exhibit B 
  
 Form of Warrant 

 Exhibit C 
  
 Disclosure Letter 
 to the 
 Securities Purchase Agreement 
 of 

Applied Imaging Corp. 
 Dated April 13, 2004

  
 The section numbers referenced in this Disclosure Letter refer
to the sections of that certain Securities Purchase Agreement dated as of April 13, 2004 (the “Agreement”) by and among Applied Imaging Corp., a Delaware corporation (the “Company”) and those investors set forth on Exhibit A
thereto. 
  
 Unless otherwise stated, all statements made herein
are made as of the date of the execution of the Agreement. The information and disclosures contained in each section of this Disclosure Letter shall be deemed to qualify and limit all representations, warranties and covenants of the Company
contained in the Agreement, to the extent such information and disclosures shall reasonably appear to be applicable to such representations, warranties and covenants. 
  
 Section 3(k) SEC Documents. 
  
 On March 31, 2004, the Company filed a Form 12b-25, Notification of Late Filing with regard to its 2003 Form 10-K. The
Company filed its 2003 Form 10-K on April 5, 2004. 
  
 Section 3(h) Litigation. 
  
 On April 8, 2004,
ChromaVision Medical Systems, Inc. (“ChromaVision”) issued a press release stating that ChromaVision had been issued Patent #6,718,053 from the United States PTO and that ChromaVision had amended its previously filed complaint for patent
infringement against the Company to include this issued patent. 
  
 Section 3(n) Registration Rights 
  
 On March 27, 2002, the Company filed an S-3 Registration Statement, which was amended on September 23, 2002 and October 3, 2002, covering the sale of up to 4,930,625 shares of Common Stock issued in connection with a
private placement financing effective October 8, 2002. The Registration Statement remains effective as of the date hereof. 

 Section 3(p) Taxes 
  
 The Company has not yet filed its 2002 statutory accounts and tax returns in the United Kingdom for its subsidiary, Applied
Imaging International Ltd., which were due in January 2004. The Company believes that no taxes will be due nor will any material penalties be incurred. The Company anticipates that it will file these applicable tax returns in the second quarter of
2004.First Supp. Indenture - Mar. 18, 2004 - FleetBoston/ Bank of America/ Citibank

 Exhibit 4.49 
  
 BANK OF AMERICA CORPORATION 
  

  
 FIRST SUPPLEMENTAL INDENTURE

  
 Dated as of March 18, 2004 
  
 Supplementing the Indenture, dated 
 as of May 15, 1991, between 
 FleetBoston
Financial Corporation 
 (formerly Fleet/Norstar Financial Group, Inc.) 
 and Citibank, N.A., as Trustee 

 THIS FIRST SUPPLEMENTAL INDENTURE, dated as of March 18, 2004 (the “First Supplemental
Indenture”), is made by and among BANK OF AMERICA CORPORATION, a Delaware corporation (the “Corporation”), FLEETBOSTON FINANCIAL CORPORATION, a Rhode Island corporation (“FBFC”) (formerly Fleet/Norstar
Financial Group, Inc. (“Fleet/Norstar”)) and CITIBANK, N.A., a national banking association, as Trustee (the “Trustee”), under the Indenture referred to herein. 
  
 W I T N E S S E T H: 
  

WHEREAS, FBFC, as successor to Fleet/Norstar, and the Trustee are parties to an Indenture, dated as of May 15, 1991 (the “Indenture”),
providing for the issuance of Subordinated Debt Securities; 
  
 WHEREAS, there is outstanding under the terms of the Indenture one or more series of notes as Subordinated Debt Securities (the “Securities”); 
  
 WHEREAS, FBFC and the Corporation have entered into an Agreement and Plan of Merger (the “Merger
Agreement”), dated as of October 27, 2003, pursuant to which FBFC will merge with and into the Corporation (the “Merger”), with the Corporation as the surviving corporation in the Merger; 
  
 WHEREAS, the Merger is expected to be consummated on April 1, 2004;

  
 WHEREAS, Section 10.01(i) of the Indenture provides
that in the case of a merger, the surviving corporation shall expressly assume by supplemental indenture all the obligations and covenants under the Securities and the Indenture to be performed and observed by FBFC; 
  
 WHEREAS, Section 9.01(i) of the Indenture provides that FBFC, with the
authorization of its Board of Directors, and the Trustee may amend the Indenture without notice to or consent of any holders of the Securities to evidence the succession of another corporation to FBFC by merger and the assumption by the successor
corporation of the obligations and covenants of FBFC under the Indenture; 
  
 WHEREAS, Section 9.01(iv) of the Indenture provides that FBFC, with the authorization of its Board of Directors, and the Trustee may amend the Indenture without notice to or consent of the holders of the
Securities in order to supplement any provision contained in the Indenture; 
  
 WHEREAS, this First Supplemental Indenture has been duly authorized by all necessary corporate action on the part of each of FBFC and the Corporation; and 
  
 WHEREAS, the Trustee has determined that this First Supplemental
Indenture is satisfactory in form. 

 NOW, THEREFORE, in consideration of the premises, FBFC, the Corporation and the Trustee agree as
follows for the equal and ratable benefit of the holders of the Securities: 
  
 ARTICLE I 
 ASSUMPTION BY SUCCESSOR CORPORATION 
 AND SUPPLEMENTAL PROVISIONS 
  
 SECTION 1.1 Assumption of the Securities. 
  
 (a) The Corporation hereby represents and warrants that 
  
 (i) it is a corporation organized and existing under the laws of the State of Delaware and the surviving corporation in the Merger; and

  
 (ii) the execution, delivery and performance
of this First Supplemental Indenture has been duly authorized by the Board of Directors of the Corporation. 
  
 (b) The Corporation hereby expressly assumes the due and punctual payment of the principal of, premium, if any, and any interest on all the Securities and
the performance of every covenant of the Indenture on the part of FBFC to be performed or observed. 
  
 SECTION 1.2 The Company. Effective April 1, 2004, the name of the Company, as the successor corporation under the Indenture, shall be “Bank of
America Corporation.” 
  
 SECTION 1.3 Supplemental
Provisions. In connection with the issuance of Securities under this Indenture: 
  
 (a) Definitions in the present Section 1.01 are hereby amended as follows: 
  
 (i) The present definition of “Board Resolution” is hereby deleted and replaced with the following: 
  
 “‘Board Resolution’ means a resolution
certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or a committee acting under the authority of, or appointment by, the Board of Directors and to be in full force and effect on the date
of such certification.” 
  
 (ii) The present definitions of
“Company Request” and “Company Order” are hereby deleted and replaced with the following: 
  
 “‘Company Request’ or ‘Company Order’ mean, respectively, a written request or order signed in the name of the
Company by its Chairman of the Board, Chief Executive Officer, President, Chief 

  

 2 

 
Financial Officer, Vice President, General Counsel, Deputy or Associate General Counsel or Treasurer and delivered to the Trustee.” 
  
 (iii) The present definition of “Officers’ Certificate” is
hereby deleted and replaced with the following: 
  
 “‘Officers’ Certificate’ means a certificate signed by the Chairman of the Board, the Chief Executive Officer, President, Chief Financial Officer, Vice President, General Counsel, Deputy or Associate General Counsel or
Treasurer of the Company and delivered to the Trustee.” 
  
 (b) The present Section 3.01(xix) is hereby amended by deleting present Section 3.01(xix) and replacing it with the following: 
  
 “(xix) any other terms of the Securities or provisions relating to the payment of principal, premium (if any) or interest thereon,
including, but not limited to, whether such Securities are issuable at a discount or premium, as amortizable Securities, and if payable in, convertible or exchangeable for commodities or for the securities of the Company or any third party.”

  
 SECTION 1.4 Trustee’s Acceptance. The Trustee
hereby accepts this First Supplemental Indenture and agrees to perform the same under the terms and conditions set forth in the Indenture. 
  
 ARTICLE II 
 MISCELLANEOUS

  
 SECTION 2.1 Effect of Supplemental Indenture. Upon
the later to occur of (i) the execution and delivery of this First Supplemental Indenture by the Corporation, FBFC and the Trustee and (ii) the effective time of the Merger, the Indenture shall be supplemented in accordance herewith, and this First
Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Securities heretofore or hereafter authenticated and delivered under the Indenture shall be bound thereby. 
  
 SECTION 2.2 Indenture Remains in Full Force and Effect. Except as
supplemented hereby, all provisions in the Indenture shall remain in full force and effect. 
  
 SECTION 2.3 Indenture and Supplemental Indentures Construed Together. This First Supplemental Indenture is an indenture supplemental to and in implementation of the Indenture, and the Indenture and this First
Supplemental Indenture shall henceforth be read and construed together. 
  
 SECTION 2.4 Confirmation and Preservation of Indenture. The Indenture as supplemented by this First Supplemental Indenture is in all respects confirmed and preserved. 
  

 3 

 SECTION 2.5 Conflict with Trust Indenture Act. If any provision of this First Supplemental
Indenture limits, qualifies or conflicts with any provision of the Trust Indenture Act (the “TIA”) that is required under the TIA to be part of and govern any provision of this First Supplemental Indenture, the provision of the TIA shall
control. If any provision of this First Supplemental Indenture modifies or excludes any provision of the TIA that may be so modified or excluded, the provision of the TIA shall be deemed to apply to the Indenture as so modified or to be excluded by
this First Supplemental Indenture, as the case may be. 
  
 SECTION 2.6 Severability. In case any provision in this First Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby. 
  
 SECTION 2.7 Terms Defined in the
Indenture. All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Indenture. 
  
 SECTION 2.8 Addresses for Notice, etc., to the Corporation and Trustee. Any notice or demand which by any provisions of this First Supplemental
Indenture or the Indenture is required or permitted to be given or served by the Trustee or by the holders of Securities to or on the Corporation may be given or served by postage prepaid first class mail addressed (until another address is filed by
the Corporation with the Trustee) as follows: 
  
 Bank of America
Corporation 
 Corporate Treasury Division, NC1-007-07-06 
 100 North Tryon Street 
 Charlotte, North Carolina 28255-0001 
 Attention: Karen A. Gosnell, Senior Vice President 
  
 With a copy to: 
 Bank of America Corporation

 Legal Department, NC1-002-29-01 
 101 South Tryon Street 
 Charlotte, North Carolina 28255-0065 
 Attention: Teresa M. Brenner, Associate General Counsel 
  
 Any notice, direction, request or demand by any holder of Securities to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if
given or made in writing at the principal office of the Trustee, which shall be as follows: 
  
 Citibank, N.A. 
 Corporate Trust Department 
 111 Wall Street 
 14th Floor 
 New York,
New York 10043. 
  

 4 

 SECTION 2.8 Headings. The Article and Section headings of this First Supplemental Indenture have
been inserted for convenience of reference only, are not to be considered part of this First Supplemental Indenture and shall in no way modify or restrict any of the terms or provisions hereof. 
  
 SECTION 2.9 Benefits of First Supplemental Indenture, etc. Nothing in
this First Supplemental Indenture or the Securities, express or implied, shall give to any Person, other than the parties hereto and thereto and their successors hereunder and thereunder and the holders of the Securities, any benefit of any legal or
equitable right, remedy or claim under the Indenture, this First Supplemental Indenture or the Securities. 
  
 SECTION 2.10 Certain Duties and Responsibilities of the Trustees. In entering into this First Supplemental Indenture, the Trustee shall be entitled
to the benefit of every provision of the Indenture relating to the conduct or affecting the liability or affording protection to the Trustee, whether or not elsewhere herein so provided. 
  
 SECTION 2.11 Counterparts. The parties may sign any number of copies of this First Supplemental Indenture. Each
signed copy shall be an original, but all of them together represent the same agreement. 
  
 SECTION 2.12 Governing Law. This First Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York but without giving effect to applicable principles of
conflicts of law to the extent that the application of the laws of another jurisdiction would be required thereby. 
  
 [Signature Page Follows] 
  

 5 

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

			
	 THE CORPORATION:
  
 Bank of America Corporation

		
	By:	 	/s/    KAREN A. GOSNELL
	 	 	

	 Name: Karen A. Gosnell
 Title: Senior Vice President

  

			
	 FBFC:
  
 FleetBoston Financial Corporation

		
	By:	 	/s/    JANICE B. LIVA
	 	 	

	 Name: Janice B. Liva
 Title: Assistant Secretary

  

			
	 THE TRUSTEE:
  
 Citibank, N.A.

		
	By:	 	/s/    NANCY FORTE
	 	 	

	 Name: Nancy Forte
 Title: Assistant Vice President

  

 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}]]