Document:

Exhibit 10.1

 

EXECUTION

 

 

 

SECURITIES PURCHASE AGREEMENT

 

BY AND BETWEEN

 

ENTASIS
THERAPEUTICS HOLDINGS INC.

 

AND

 

INNOVIVA STRATEGIC OPPORTUNITIES LLC

 

Dated as of May 3, 2021

 

 

 

    

     

    

 

TABLE OF CONTENTS

 

	Article I DEFINITIONS	1
	Section 1.1	Definitions	1
	Section 1.2	Construction	9
	 	 	 
	Article II PURCHASE AND SALE	10
	Section 2.1	The Purchase and Sale	10
	Section 2.2	First Closing	11
	Section 2.3	Second Closing	12
	 	 
	Article III REPRESENTATIONS AND WARRANTIES OF THE COMPANY	12
	Section 3.1	Organization and Qualification	13
	Section 3.2	Authorization; Enforcement; Validity	13
	Section 3.3	Issuance of Securities	13
	Section 3.4	No Conflicts	14
	Section 3.5	Consents	14
	Section 3.6	No General Solicitation; Agents’ Fees	14
	Section 3.7	Application of Takeover Protections; Rights Agreement	15
	Section 3.8	SEC Documents; Financial Statements	15
	Section 3.9	Absence of Certain Changes	17
	Section 3.10	Conduct of Business; Regulatory Permits	17
	Section 3.11	Certain Regulatory Matters	18
	Section 3.12	Sarbanes-Oxley Act	19
	Section 3.13	Transactions With Affiliates	19
	Section 3.14	Capitalization	19
	Section 3.15	Indebtedness	20
	Section 3.16	Material Contracts	20
	Section 3.17	Litigation	20
	Section 3.18	Insurance	21
	Section 3.19	Employee Relations	21
	Section 3.20	Title	22
	Section 3.21	Intellectual Property Rights	22
	Section 3.22	Environmental Laws	24
	Section 3.23	Tax Status	24
	Section 3.24	Investment Company Status	25
	Section 3.25	U.S. Real Property Holding Corporation	25
	Section 3.26	Registration Eligibility	25
	Section 3.27	Transfer Taxes	25
	Section 3.28	Shell Company Status	25
	Section 3.29	ERISA Compliance	25
	Section 3.30	Management	25
	Section 3.31	FDA	26
	Section 3.32	Stock Option Plans	27
	Section 3.33	No Disqualification Events	27
	Section 3.34	No Integrated Offering	27
	Section 3.35	Regulation M Compliance	27

 

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	Section 3.36	Proxy Statement	27
	Section 3.37	Specified Contract	28
	 	 	 
	Article IV REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	28
	Section 4.1	Organization	28
	Section 4.2	Organizational Power and Authority	28
	Section 4.3	Execution and Delivery	28
	Section 4.4	No Conflict	28
	Section 4.5	Consents and Approvals	28
	Section 4.6	No Registration	29
	Section 4.7	Purchasing Intent	29
	Section 4.8	Sophistication; Investigation	29
	Section 4.9	Sufficient Funds	29
	Section 4.10	Bad Actor	29
	Section 4.11	Disclaimer of Other Representations and Warranties	30
	 	 	 
	Article V ADDITIONAL COVENANTS	30
	Section 5.1	Covenants of the Company	30
	Section 5.2	Pre-Closing Exclusivity	31
	Section 5.3	[Reserved]	31
	Section 5.4	Stockholder Approval	31
	Section 5.5	Registration Rights Agreement	32
	Section 5.6	Integration	32
	Section 5.7	Required Minimum	32
	Section 5.8	Acknowledgment of Dilution	33
	Section 5.9	Expense Reimbursement	33
	Section 5.10	Blue Sky Filings	33
	 	 	 
	Article VI CONDITIONS TO THE OBLIGATIONS OF THE PARTIES	33
	Section 6.1	Conditions to the Obligations of the Purchaser at the First Closing	33
	Section 6.2	Conditions to the Obligations of the Company at the First Closing	35
	Section 6.3	Conditions to the Obligations of the Purchaser at the Second Closing	35
	Section 6.4	Conditions to the Obligations of the Company at the Second Closing	36
	 	 	 
	Article VII INTENTIONALLY OMITTED	37
	 	 
	Article VIII TERMINATION	37
	Section 8.1	Termination	37
	Section 8.2	Effect of Termination	38
	Section 8.3	Termination Fee	39
	Section 8.4	Second Closing Abandonment	39
	 	 	 
	Article IX
GENERAL PROVISIONS	39
	Section 9.1	Notices	39
	Section 9.2	Assignment; Third-Party Beneficiaries	40
	Section 9.3	Prior Negotiations; Entire Agreement	40
	Section 9.4	Governing Law; Venue: Forum	41

 

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	Section 9.5	Waiver of Jury Trial	41
	Section 9.6	Counterparts	41
	Section 9.7	Waivers and Amendments; Rights Cumulative; Consent; Severability	41
	Section 9.8	Headings	42
	Section 9.9	Specific Performance	42
	Section 9.10	Publicity	42
	Section 9.11	No Recourse	42
	Section 9.12	Limitation of Liability	43
	Section 9.13	Further Assurances	43
	Section 9.14	Survival	43

 

	EXHIBITS
	Exhibit A	Warrant Certificate	 
	Exhibit B	Registration Rights Agreement	 

 

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SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE AGREEMENT
(together with all Exhibits and Schedules hereto, as each may be amended, restated, amended and restated, supplemented or otherwise modified
from time to time in accordance with the terms hereof, this “Agreement”), dated as of May 3, 2021, is made by
and between (i) Entasis Therapeutics Holdings Inc., a Delaware corporation (the “Company”), and (ii) Innoviva
Strategic Opportunities LLC (the “Purchaser”). The Company and the Purchaser are referred to herein individually as
a “Party,” and, collectively as the “Parties.” Capitalized terms used herein and not otherwise defined
herein are defined in Article I hereof.

 

RECITALS

 

WHEREAS, subject to the terms
and conditions contained in this Agreement, at the Closing, the Company intends to issue and sell to the Purchaser (a) 10,000,000
shares of fully paid and non-assessable Common Stock (the “Purchased Common Stock”) and (b) Warrants to purchase
10,000,000 shares of Common Stock (as may be adjusted pursuant to Section 2.1(a)) (the “Purchased Warrants”),
and the Purchaser desires to purchase such Purchased Common Stock and Purchased Warrants from the Company

 

WHEREAS, each share of Purchased
Common Stock and each Purchased Warrant will be issued and sold to the Purchaser as a unit at the First Closing and the Second Closing,
as applicable, for a per unit price of $2.00 (the “Per Unit Purchase Price”) payable in accordance with the terms hereof;
and

 

WHEREAS, the Board has unanimously
determined that this Agreement and the transactions contemplated hereby are advisable, fair and in the best interests of the Company and
its stockholders.

 

NOW, THEREFORE, in consideration
of the mutual promises, agreements, representations, warranties and covenants contained herein, the Company (on behalf of itself and
each of its direct and indirect Subsidiaries) and the Purchaser agree as follows:

 

Article I

 

DEFINITIONS

 

Section 1.1    Definitions.
Except as otherwise expressly provided in this Agreement, whenever used in this Agreement (including any Exhibits and Schedules hereto),
the following terms shall have the respective meanings specified therefor below:

 

“Acquisition Proposal”
has the meaning set forth in Section 5.2.

 

“Action”
means, any action, suit, claim, arbitration, mediation, litigation, hearing, or other proceeding by or before any court, tribunal or arbitrator
or any Governmental Entity.

 

    1

     

    

 

“Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly, Controls or is Controlled by or is under common Control
with such Person; provided, however, that neither Purchaser nor any of its Affiliates shall be deemed to be an Affiliate
of the Company or any of its direct and indirect Subsidiaries for purposes of this Agreement. “Affiliates” and “Affiliated”
have correlative meanings.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Board” means
the Board of Directors of the Company.

 

“Business Day”
means any day that is not a Saturday, Sunday or other day on which commercial banks are required or permitted to be closed in the State
of California.

 

“Bylaws”
means the Company’s bylaws, as amended through the date hereof.

 

“Capital Stock”
means (a) any shares, interests, participations or other equivalents (however designated) of capital stock of a corporation; (b) any
ownership interests in a Person other than a corporation, including membership interests, partnership interests, joint venture interests
and beneficial interests; and (c) any warrants, options, convertible or exchangeable securities, subscriptions, rights (including
any preemptive or similar rights), calls or other rights to purchase or acquire any of the foregoing.

 

“Certificate of Incorporation”
means the certificate of incorporation of the Company, as amended through the date hereof.

 

“Closing”
means the First Closing and the Second Closing, collectively.

 

“Common Stock”
means the common stock, par value $0.001 per share, of the Company, and any Capital Stock into which such Common Stock shall have been
converted, exchanged or reclassified following the date hereof.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company’s Knowledge,”
 “Knowledge of the Company” or “Knowledge” means the actual knowledge of Manoussos Perros, Ph.D.
and Michael Gutch, Ph.D and, solely with respect to the representations in Section 3.21, the actual knowledge of David Altarac,
MD, John Mueller, PhD and Ruben Tommasi, PhD.

 

“Company Organizational
Documents” mean the Certificate of Incorporation and the Bylaws.

 

“Consolidated Group”
means the Company and its wholly owned subsidiary, Entasis Therapeutics Inc.

 

“Contract”
means any agreement, contract or instrument, including any loan, note, bond, mortgage, indenture, guarantee, deed of trust, license, franchise,
commitment, lease, franchise agreement, letter of intent, memorandum of understanding or other obligation, and any amendments thereto,
whether written or oral.

 

    2

     

    

 

“Control”
means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities or by contract or agency or otherwise. “Controlled”
has a correlative meaning.

 

“Definitive Documents”
means this Agreement, the Registration Rights Agreement, the Warrant Certificate and each of the other agreements and instruments entered
into and delivered by the Parties hereto in connection with the transactions contemplated hereby.

 

“Environmental Laws”
means all applicable federal, state, local or foreign Laws relating to pollution or protection of human health or the environment (including
ambient air, surface water, groundwater, land surface or subsurface strata), including Laws relating to emissions, discharges, releases
or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous
Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, demands or demand letters, licenses, notices
or notice letters, Orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations thereunder.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that together with the Company or any of its Subsidiaries is treated as a single
employer within the meaning of Section 414 of the Code or Section 4001 of ERISA.

 

“ERISA Event”
means (1) a Reportable Event with respect to a Pension Plan; (2) a withdrawal by the Company, any of its Subsidiaries or any
of their respective ERISA Affiliates from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as a termination under Section 4062(e) of
ERISA; (3) a complete or partial withdrawal by the Company, any of its Subsidiaries or any of their respective ERISA Affiliates from
a Multiemployer Plan, written notification of any member of the Consolidated Group or any of their respective ERISA Affiliates concerning
the imposition of Withdrawal Liability or written notification that a Multiemployer Plan is in reorganization within the meaning of Title
IV of ERISA or that a Multiemployer Plan has been determined to be in “endangered” or critical status (within the meaning
of Section 432 of the Code or Section 305 of ERISA); (4) the filing under Section 4041(c) of ERISA of a notice
of intent to terminate a Pension Plan, the treatment of a Pension Plan or Multiemployer Plan amendment as a termination under Sections
4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (5) the
imposition of any liability under Title IV of ERISA, other than for the payment of plan contributions or PBGC premiums due but not delinquent
under Section 4007 of ERISA, upon the Company, any of its Subsidiaries or any of their respective ERISA Affiliates, (6) the
failure to satisfy the minimum funding standards (within the meaning of Section 412 of the Code or Section 302 of ERISA) with
respect to any Pension Plan, (7) the application for a minimum funding waiver under Section 302(c) of ERISA with respect
to a Pension Plan, (8) the imposition of a Lien under Section 303(k) of ERISA with respect to any Pension Plan, (9) a
determination that any Pension Plan is in “at risk” status (within the meaning of Section 303 of ERISA), or (10) the
Company, any of its Subsidiaries or any of their respective ERISA Affiliates has engaged in a transaction that is subject to Sections
4069 or 4212(c) of ERISA.

 

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“Expense Reimbursement”
means the reimbursement obligation contemplated by Section 5.9.

 

“FDA” means
the United States Food and Drug Administration.

 

“First Closing”
has the meaning set forth in Section 2.2(a).

 

“First Closing Date”
has the meaning set forth in Section 2.2(a).

 

“First Common Stock”
means the maximum number of shares of Common Stock issuable at the First Closing to Purchaser in compliance with any and all Laws and
without the requirement for the prior receipt of the Stockholder Approval under the listing requirements of the Nasdaq Global Market,
assuming that Warrants to purchase an equal number of shares of Common Stock are also issued to Purchaser at the First Closing.

 

“First Purchase Price”
means an amount in cash equal to the product of (i) the number of shares of First Common Stock multiplied by (ii) the Per Unit
Purchase Price.

 

“First Warrants”
means Warrants to purchase a number of shares of Common Stock equal to the number of shares of First Common Stock.

 

“Fundamental Representations”
has the meaning set forth in Section 9.14.

 

“GAAP” means
United States generally accepted accounting principles, consistently applied, as in effect from time to time.

 

“Governmental Entity”
means any applicable nation, state, county, city, town, village, district or other political jurisdiction of any nature, federal, state,
local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official, or entity and any court or other tribunal), stock exchange, multi-national organization or body,
or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or Taxing authority
or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government
or a public international organization or any of the foregoing.

 

“Indebtedness”
means (a) any indebtedness or other obligation for borrowed money, whether current, short-term or long-term and whether secured or
unsecured; (b) any indebtedness evidenced by any note, bond, debenture or other security or similar instrument; (c) any liabilities
with respect to interest rate or currency swaps, collars, caps and similar hedging obligations; (d) any liabilities in respect of
any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which liabilities
are required to be classified and accounted for under GAAP as capital leases; (e) any liabilities under any performance bond or letter
of credit or any bank overdrafts and similar charges; (f) any accrued interest, premiums, penalties and other obligations relating
to the foregoing items in clauses (a) through (e); and (g) any indebtedness referred to in clauses (a) through (f) above
of any Person that is either guaranteed (including under any “keep well” or similar arrangement) by, or secured (including
under any letter of credit, banker’s acceptance or similar credit transaction) by any Lien upon any property or asset owned by,
the Company or any of its Subsidiaries.

 

    4

     

    

 

“Insolvent”
means, (i) with respect to the Company and its Subsidiaries, on a consolidated basis, (A) the present fair saleable value of
the Company’s and its Subsidiaries’ assets is less than the amount required to pay the Company’s and its Subsidiaries’
total Indebtedness, (B) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent
or otherwise, as such debts and liabilities become absolute and matured or (C) the Company and its Subsidiaries intend to incur or
believe that they will incur debts that would be beyond their ability to pay as such debts mature; and (ii) with respect to the Company
and each Subsidiary, individually, (A) the present fair saleable value of the Company’s or such Subsidiary’s (as the
case may be) assets is less than the amount required to pay its respective total Indebtedness, (B) the Company or such Subsidiary
(as the case may be) is unable to pay its respective debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities
become absolute and matured or (C) the Company or such Subsidiary (as the case may be) intends to incur or believes that it will
incur debts that would be beyond its respective ability to pay as such debts mature.

 

“Law” means
any law, statute, code, ordinance, regulation or rule of any Governmental Entity.

 

“Lien” means
any lien, adverse claim, charge, option, right of first refusal, preemptive right, servitude, security interest, mortgage, pledge, deed
of trust, easement, encumbrance, restriction on transfer, Taxes, conditional sale or other title retention agreement, defect in title
or other restrictions of any kind; provided that restrictions on transfer arising under applicable securities Laws shall not be
Liens.

 

“Material Adverse Effect”
means any effect, change, event, development, condition or occurrence (each, an “Effect”) that, individually or together
with all other Effects, (i) has had or would be reasonably expected to have or result in a material adverse effect or material adverse
change on the business, assets, liabilities, properties, financial condition or operating results of the Company and its Subsidiaries,
taken as a whole, or (ii) to the ability of the Company to consummate timely the transactions contemplated by this Agreement, provided,
however, that, none of the following Effects, by itself or when aggregated with any one or more other Effects, shall be deemed
to be or constitute a Material Adverse Effect and none of the following Effects, by itself or when aggregated with any one or more other
Effects, shall be taken into account when determining whether a Material Adverse Effect has occurred or is reasonably likely to occur
for purposes of clause (i) above: (A) (1) general market, economic or political conditions in the United States or worldwide
or (2) conditions (or any changes therein) generally affecting the industries in which the Company conducts business, in each case,
including any acts of terrorism or war, in the case of each of clauses (1) and (2), solely to the extent that such Effects do not
have and are not reasonably likely to have a disproportionate impact on the Company, relative to other companies operating in the same
industries in which the Company conducts business; or (B) the announcement or the existence of this Agreement and the transactions
contemplated hereby.

 

    5

     

    

 

“Material Contract”
means any Contract that would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(10) of
Regulation S-K under the Securities Act.

 

“Multiemployer Plan”
means any multiemployer plan as defined in Section 4001(a)(3) of ERISA and subject to Title IV of ERISA, to which any member
of the Consolidated Group or any of their respective ERISA Affiliates makes or is obligated to make contributions, or, during the preceding
five (5) plan years, has made or has been obligated to make contributions.

 

“Nasdaq Global Market”
means the Nasdaq Global Market tier maintained by The Nasdaq Stock Market LLC (Nasdaq).

 

“Order” means
any judgment, order, award, injunction, writ, permit, license, settlement or decree issued, promulgated, made, rendered or entered into
by or with any Governmental Entity or arbitrator of applicable jurisdiction (in each case, whether temporary, preliminary or permanent).

 

“Party” or
 “Parties” has the meaning set forth in the Preamble.

 

“PBGC” means
the Pension Benefit Guaranty Corporation.

 

“Pension Plan”
means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer
Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Company, any of its Subsidiaries or any of their respective
ERISA Affiliates or to which the Company, any of its Subsidiaries or any of their respective ERISA Affiliates contributes or has an obligation
to contribute or has made or has had an obligation to make contributions at any time in the preceding five plan years.

 

“Person”
means an individual, firm, corporation (including any non-profit corporation), partnership, limited liability company, joint venture,
association, trust, Governmental Entity or other entity or organization.

 

“Pharmaceutical Product”
means any product, compound, medicine or therapeutic which is subject to regulation as a drug, medicine or
controlled substance by the United States Food and Drug Administration or any regulatory authority outside the United States.

 

“Plan” means
any material “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Company
or any of its Subsidiaries, or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any
of their respective ERISA Affiliates.

 

“Registration Rights
Agreement” shall have the meaning set forth in Section 5.5.

 

“Related Party”
means, with respect to any Person, (a) any former, current or future director, officer, agent, Affiliate, employee, general or limited
partner, member, manager or stockholder of such Person and (b) any former, current or future director, officer, agent, Affiliate,
employee, general or limited partner, member, manager or stockholder of any of the foregoing.

 

    6

     

    

 

“Reportable Event”
means, with respect to any Pension Plan, any of the events set forth in Section 4043(c) of ERISA or the regulations issued thereunder,
other than events for which the thirty (30) day notice period has been waived.

 

“Representatives”
means, with respect to any Person, such Person’s directors, officers, members, partners, managers, employees, agents, investment
bankers, attorneys, accountants, advisors and other representatives.

 

“Required Minimum”
means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future pursuant
to this Agreement, including the shares of Common Stock issuable upon exercise in full of all Purchased Warrants.

 

“Sanctioned Country”
means any country or region that is subject or target of a comprehensive trade embargo under Sanctions.

 

“Sanctioned Person”
means any individual or entity that is the subject or target of Sanctions, including (i) any individual or entity listed on any Sanctions-related
restricted party list, including the U.S. Department of Treasury, Office of Foreign Asset Control’s (“OFAC”)
Specially Designated Nationals and Blocked Persons List and the EU Consolidated List, (ii) any entity that is owned, directly or
indirectly, or otherwise controlled by a Person or Persons described in clause (i) above, (iii) any national, resident, government,
agency, or instrumentality of a Sanctioned Country or (iv) any individual or entity otherwise the subject or target of Sanctions.

 

“Sanctions”
means all applicable Laws relating to economic, financial or trade sanctions, including any such Laws administered or enforced by the
U.S. government (including by OFAC or the U.S. Department of State), the United Nations Security Council, the European Union, the United
Kingdom (include by Her Majesty’s Treasury) or any other relevant Governmental Entity that administers or enforces economic, financial
or trade sanctions.

 

“SEC” means
the United States Securities and Exchange Commission.

 

“Second Closing”
has the meaning set forth in Section 2.2(a).

 

“Second Closing Abandonment”
has the meaning set forth in Section 8.3.

 

“Second Closing Date”
has the meaning set forth in Section 2.2(a).

 

“Second Common Stock”
means an amount equal to (i) the aggregate number of shares of Purchased Common Stock minus (ii) the number of shares
of First Common Stock.

 

“Second Purchase Price”
means an amount in cash equal to the product of (i) the number of shares of Second Common Stock multiplied by (ii) the
Per Unit Purchase Price.

 

“Second Warrants”
means Warrants to purchase a number of shares of Common Stock equal to the number of shares of Second Common Stock.

 

    7

     

    

 

“Securities”
means the Purchased Common Stock and the Purchased Warrants (including the shares of Common Stock issuable upon exercise of the Purchased
Warrants), in each case, that will be delivered to Purchaser pursuant to this Agreement.

 

“Securities Act”
means the Securities Act of 1933, and the rules and regulations promulgated thereunder.

 

“Stockholder Approval”
means such approval as may be required by the applicable rules and regulations of the Nasdaq Global Market (or any successor entity)
from the stockholders of the Company with respect to the transactions contemplated by this Agreement and the other Definitive Documents.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, joint venture or other legal entity as to which such Person (either alone
or through or together with any other subsidiary), (a) owns, directly or indirectly, more than fifty percent (50%) of the stock or
other equity interests, (b) has the power to elect a majority of the board of directors or similar governing body, or (c) has
the power to direct the business and policies.

 

“Tax Contest”
means any audit, suit, conference, action, assessment, investigation, claim, administrative or judicial proceeding, or other similar interaction
with a Governmental Entity with respect to any Tax.

 

“Tax Returns”
means any and all reports, returns, declarations, claims for refund, elections, disclosures, estimates, information reports or returns
or statements supplied or required to be supplied to a Governmental Entity in connection with Taxes, including any schedule or attachment
thereto or amendment thereof.

 

“Taxes” means
(i) all taxes, assessments, duties, levies or other similar governmental charges paid or payable to a Governmental Entity, including
all federal, state, local, foreign and other income, franchise, profits, gross receipts, capital gains, capital stock, transfer, property,
sales, use, value-added, occupation, excise, severance, windfall profits, stamp, payroll, social security, withholding and other taxes,
assessments, duties, levies (whether payable directly or by withholding and whether or not requiring the filing of a return), all estimated
taxes, deficiency assessments, additions to tax, penalties and interest thereon, (ii) any liability for such amounts described in
clause (i) as a result of being a member of a combined, consolidated, unitary, or affiliated group and (iii) any and all
liability for the payment of any amounts described above in clauses (i) and (ii) as a result of any express or implied obligation
to indemnify any other person, or any successor or transferee liability. “Taxing” and “Taxation” each have a correlative
meaning.

 

“Termination
Date” has the meaning set forth in Section 8.1(b).

 

“Warrant Certificate”
means the certificate in substantially the form attached hereto as Exhibit A.

 

“Warrants”
means warrants to purchase shares of Common Stock, at an exercise price of $2.00 per share, represented by and on the terms set forth
herein and in the Warrant Certificate.

 

    8

     

    

 

“Withdrawal Liability”
means the liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such term
is defined in Part I of Subtitle E of Title IV of ERISA.

 

Section 1.2      Construction.
In this Agreement, unless the context otherwise requires:

 

(a)          references
to Articles, Sections, Exhibits and Schedules are references to the articles and sections or subsections of, and the exhibits and
schedules attached to, this Agreement;

 

(b)          references
in this Agreement to “writing” or comparable expressions include a reference to a written document transmitted by means of
electronic mail in portable document format (pdf), facsimile transmission or comparable means of communication;

 

(c)          words
expressed in the singular number shall include the plural and vice versa; words expressed in the masculine shall include the feminine
and neuter gender and vice versa;

 

(d)          the
words “hereof,” “herein,” “hereto” and “hereunder,” and words of similar import, when
used in this Agreement, shall refer to this Agreement as a whole, including all Exhibits and Schedules attached to this Agreement, and
not to any provision of this Agreement;

 

(e)          the
term “this Agreement” shall be construed as a reference to this Agreement as the same may have been, or may from time to time
be, amended, modified, varied, novated or supplemented;

 

(f)          “include,”
 “includes” and “including” are deemed to be followed by “without limitation” whether or not they are
in fact followed by such words;

 

(g)          references
to “day” or “days” are to calendar days;

 

(h)          if
the last day for the giving of any notice or the performance of any act required or permitted under this Agreement is a day that is not
a Business Day, then the time for the giving of such notice or the performance of such action shall be extended to the next succeeding
Business Day;

 

(i)           references
to “the date hereof” or “the date of the Agreement” means the date of this Agreement;

 

(j)           references
to “ordinary course of business” means the ordinary and usual course of normal day-to-day operations of the Company, consistent
with past practices

 

(k)          the
word “or” is disjunctive but not necessarily exclusive;

 

(l)           unless
otherwise specified, references to any Law means such Law as amended from time to time and includes any successor Law thereto and any
rules or regulations promulgated thereunder in effect from time to time; and

 

(m)         references
to “dollars” or “$” refer to currency of the United States of America, unless otherwise expressly provided.

 

    9

     

    

 

Article II

 

PURCHASE AND SALE

 

Section 2.1    The
Purchase and Sale.

 

(a)          On
the terms and subject to the conditions set forth herein, at the First Closing, the Purchaser hereby agrees to purchase (or cause certain
of its Subsidiaries to purchase), and the Company shall sell to Purchaser (or such Subsidiaries) in exchange for the First Purchase Price,
(i) the First Common Stock, free and clear of all Liens and (ii) the First Warrants, free and clear of all Liens; provided,
that, if during the period from the date hereof until and including the First Closing, the Company issues to any Person any shares of
Common Stock or Capital Stock or similar securities convertible into, exchangeable for or having the right to subscribe for shares of
Common Stock at a price per share less than the Per Unit Purchase Price (other than shares of Common Stock issued upon the exercise of
options, warrants or similar securities outstanding as of the date hereof), the number of First Common Stock and First Warrants issued
to the Purchaser at the First Closing will be proportionally and ratably increased such that the First Common Stock and First Warrants
issued to Purchaser will not be affected by any such dilution. Notwithstanding anything in this Agreement to the contrary, the total
number of First Common Stock that may be issued under this Agreement at the First Closing, including the First Warrants, shall be limited
to 3,731,025 shares of Common Stock (the “Exchange Cap”), which equals 19.99% of the Company’s outstanding shares
of Common Stock as of the date hereof. The Exchange Cap shall be appropriately adjusted for any reorganization, recapitalization, non-cash
dividend, stock split, reverse stock split or other similar transaction.

 

(b)          On
the terms and subject to the conditions set forth herein, at the Second Closing, the Purchaser hereby agrees to purchase (or cause certain
of its Subsidiaries to purchase), and the Company shall sell to Purchaser (or such Subsidiaries) in exchange for the Second Purchase Price,
(i) the Second Common Stock, free and clear of all Liens and (ii) the Second Warrants, free and clear of all Liens; provided,
that, if during the period from the date hereof until and including the Second Closing, the Company issues to any Person any shares of
Common Stock or Capital Stock or similar securities convertible into, exchangeable for or having the right to subscribe for shares of
Common Stock at a price per share less than the Per Unit Purchase Price (other than shares of Common Stock issued upon the exercise of
options, warrants or similar securities outstanding as of the date hereof), the number of Second Common Stock and Second Warrants issued
to the Purchaser at the Second Closing will be proportionally and ratably increased such that the Second Common Stock and Second Warrants
issued to Purchaser will not be affected by any such dilution.

 

(c)          The
Parties agree that the Common Stock and Warrants to be purchased by Purchaser hereunder shall be issued in reliance upon the exemption
from registration set forth in Section 4(a)(2) of the Securities Act.

 

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Section 2.2      First
Closing.

 

(a)           The
closing of the purchase of the First Common Stock and First Warrants (the “First Closing”) shall take place remotely
via the electronic exchange of documents and signatures, or at such other time and place as the Parties may agree in writing, on the first
(1st) Business Day after satisfaction or waiver of the conditions set forth in Section 6.1 and Section 6.2
(other than those conditions that by their terms are to be satisfied at the First Closing, but subject to the satisfaction or waiver of
those conditions). The date on which the First Closing actually occurs shall be referred to herein as the “First Closing Date.”
At the First Closing, the Company shall issue the First Common Stock and First Warrants to the Purchaser free and clear of all Liens against
payment by the Purchaser of the First Purchase Price.

 

(b)           At
the First Closing, the Company shall:

 

(i)            deliver
or cause to be delivered to the Purchaser:

 

(A)          a
certificate of good standing of the Company as of a date no earlier than two (2) Business Days prior to the First Closing Date;

 

(B)          the
certificate contemplated by Section 6.1(f);

 

(C)          counterparts
to Warrant Certificates representing the full number of First Warrants (as may be adjusted pursuant to Section 2.1(a));

 

(D)          an
opinion from the Company’s outside legal counsel, dated as of the First Closing Date, in a customary form reasonably acceptable
to Purchaser;

 

(E)           copies
of the resolutions or written consents duly adopted by the Board and certified by the Company’s secretary authorizing the execution,
delivery and performance of this Agreement and the transactions contemplated hereby, including the Charter Amendment or minutes from a
duly convened meeting of the Board at which such matters were authorized; and

 

(F)           counterparts
to the Registration Rights Agreement, duly executed by the Company;

 

(ii)           deliver
or cause to be delivered any other customary documents or certificates reasonably requested by Purchaser which are reasonably necessary
to give effect to the Closing; and

 

(iii)          pay,
or cause to be paid to Purchaser (which may be set off against the First Purchase Price), any portion of the Expense Reimbursement then
accrued and unpaid.

 

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Section
2.3      Second Closing.

 

(a)            The
closing of the purchase of the Second Common Stock and Second Warrants (the “Second Closing”) shall take place remotely
via the electronic exchange of documents and signatures, or at such other time and place as the Parties may agree in writing, on the
first (1st) Business Day after satisfaction or waiver of the conditions set forth in Section 6.3 and Section 6.4
(other than those conditions that by their terms are to be satisfied at the Second Closing, but subject to the satisfaction or waiver
of those conditions). The date on which the Second Closing actually occurs shall be referred to herein as the “Second Closing
Date.” At the Second Closing, the Company shall issue the Second Common Stock and Second Warrants to the Purchaser free and
clear of all Liens against payment by the Purchaser of the Second Purchase Price.

 

(b)           At
the Second Closing, the Company shall:

 

(i)            deliver
or cause to be delivered to the Purchaser:

 

(A)            a
bring down certificate of good standing of the Company as of a date no earlier than two (2) Business Days prior to the Second Closing
Date;

 

(B)             the
certificate contemplated by Section 6.1(f); and

 

(C)             counterparts
to Warrant Certificates representing the full number of Second Warrants (as may be adjusted pursuant to Section 2.1(a));

 

(ii)            pay,
or cause to be paid to Purchaser (which may be set off against the Second Purchase Price), any portion of the Expense Reimbursement then
accrued and unpaid; and

 

(iii)          deliver
or cause to be delivered any other customary documents or certificates reasonably requested by Purchaser which are reasonably necessary
to give effect to the Closing.

 

Article III

 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except as set forth in the SEC
Documents filed with the SEC prior to the date hereof and publicly available on the SEC’s Electronic Data Gathering Analysis and
Retrieval system (but excluding any forward-looking disclosures set forth in any “risk factors” section, any disclosures in
any “forward-looking statements” section and any other disclosures included therein to the extent they are predictive or forward-looking
in nature), the Company hereby represents and warrants to the Purchaser as of the date hereof, as of the First Closing, and as of the
Second Closing, as follows:

 

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Section 3.1      Organization
and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized, validly existing and in good standing
under the Laws of the jurisdiction in which they are formed, and each has the requisite power and authority to own its properties and
to carry on its business as now being conducted and as presently proposed to be conducted. Each of the Company and each of its Subsidiaries
is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property
or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified
or be in good standing would not, individually or in the aggregate, have a Material Adverse Effect. Other than the Persons set forth
on Exhibit 21.1 to the Company’s Annual Report on Form 10-K, filed with the SEC on March 23, 2021, the Company has
no Subsidiaries and does not own Capital Stock in any other Person.

 

Section 3.2      Authorization;
Enforcement; Validity. Subject to the Stockholder Approval, the Company has the requisite power and authority to enter into and perform
its obligations under the Agreement and the other Definitive Documents, to consummate the transaction contemplated hereby and thereby
and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery of the Agreement and the other
Definitive Documents by the Company, and the consummation by the Company of the transactions contemplated hereby and thereby (including
the issuance of the Securities and the reservation for issuance and issuance of Common Stock issuable upon the exercise of the Warrants
in accordance with, and pursuant to, the Warrant Certificate) have been duly authorized by the Company, and such authorization has not
been, and as of the Closing will not have been, subsequently rescinded or modified in any way, and, no further filing, consent or authorization
is or will be required to be made by or on behalf of the Company, its Subsidiaries and their respective boards of directors, stockholders
or other governing bodies in connection with the transactions contemplated by the Definitive Documents. The Agreement has been, and the
other Definitive Documents to which the Company is a party will be, prior to the First Closing or Second Closing, as applicable, duly
executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable against
the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited by applicable
federal or state securities Law (the “General Enforceability Exceptions”).

 

Section 3.3      Issuance
of Securities. The issuance of the Securities is duly authorized, and upon issuance in accordance with the terms of the Definitive Documents
will be validly issued, fully paid and non-assessable (to the extent such concepts are applicable) and free and clear of all Liens. The
issuances of the Securities in connection with the transactions contemplated by the Definitive Documents are in compliance, in all respects,
with all applicable Laws, and the Securities are not subject to, and will not be issued in violation of, any purchase options, call options,
rights of first refusal, preemptive rights, subscription rights or any similar rights under applicable Law, the Company Organizational
Documents or any Contract to which the Company or any of its Subsidiaries is a party or by which it is bound. Subject to the accuracy
of the representations and warranties of the Purchaser set forth in Article IV, the offer and issuance by the Company of the Securities
is exempt from registration under the Securities Act. As of the First Closing, the Company will have reserved from its duly authorized
Capital Stock the maximum number of shares of Common Stock authorized under its Certificate of Incorporation that are available after
giving effect to shares of Common Stock reserved for issuance or issuable upon the exercise of the Purchased Warrants. Upon the issuance
of Common Stock following an exercise of the Purchased Warrants in accordance with the Warrant Certificate, such Common Stock, when issued,
will be validly issued, fully paid and non-assessable and free and clear of all Liens, with the holders thereof being entitled to all
rights accorded to a holder of Common Stock.

 

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Section 3.4      No
Conflicts. The execution, delivery and performance of this Agreement and the other Definitive Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including the issuance of the Securities and the reservation for
issuance and issuance of Common Stock issuable upon the exercise of the Purchased Warrants in accordance with the Warrant Certificate)
will not (i) result in a violation of the Certificate of Incorporation, Bylaws, certificate of formation, memorandum of association,
articles of association or other organizational documents of the Company or any of its Subsidiaries (collectively, the “Group
Companies Organizational Documents”), (ii)  conflict with, or constitute a default (or an event which with notice or lapse
of time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any Material Contract, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result
in a material violation of any Law (including, for the avoidance of doubt, foreign, federal and state securities Laws and the rules and
regulations of the Nasdaq Global Market) or Order that would be material to the business of the Company and its Subsidiaries taken as
a whole.

 

Section 3.5      Consents.
Except as set forth in Section 5.7(c), neither the Company nor any of its Subsidiaries is required to obtain any consent
from, authorization or order of, or make any filing or registration with any Governmental Entity or any regulatory or self-regulatory
agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by
this Agreement or the other Definitive Documents, in each case, in accordance with the terms hereof and thereof. To the Company’s
Knowledge, no facts or circumstances exist which might prevent the Company or any of its Subsidiaries from obtaining or effecting any
of the registrations, applications or filings contemplated by the Definitive Documents.

 

Section 3.6      No
General Solicitation; Agents’ Fees. Neither the Company, nor any of its Subsidiaries, Affiliates, Representatives or any other
Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation
D) in connection with the offer or sale of the Securities. No placement agent’s fees, financial advisory fees, or brokers’
commissions or fees or any similar fees are or will be owed or payable to any Person in connection with transactions contemplated by
the Definitive Documents. Neither the Company nor any of its Subsidiaries has engaged any placement agent or other agent in connection
with the offer or sale of the Securities. The Company further acknowledges that Purchaser is not acting as a financial advisor or fiduciary
of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Definitive Documents and the transactions
contemplated thereby and that the Company’s decision to enter into the Definitive Documents to which it is a party has been based
solely on the independent evaluation by the Company and its Representatives.

 

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Section 3.7      Application
of Takeover Protections; Rights Agreement. Prior to the First Closing, the Company and its board of directors will have taken all necessary
actions, if any, in order to comply with or obtain waivers in connection with any control share acquisition, interested stockholder,
business combination, poison pill (including any distribution under a rights agreement), stockholder rights plan or other similar anti-takeover
provision under any of the Group Companies Organizational Documents or the Laws of the jurisdiction of its incorporation or otherwise
which is or could become applicable to Purchaser as a result of the transactions contemplated by the Definitive Documents, including
the Company’s issuance of the Securities and ownership by the Purchaser of the Securities. The Company and the Board have taken
all necessary action, if any, in order to render inapplicable any stockholder rights plan or similar arrangement relating to accumulations
of beneficial ownership of shares of Common Stock or a change in control of the Company or any of its Subsidiaries.

 

Section 3.8      SEC
Documents; Financial Statements.

 

(a)            The
Company (including its predecessors) has timely filed all reports, schedules, forms, proxy statements, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act or the Securities Act (all of the foregoing
filed since January 1, 2019, and all exhibits and appendices included therein and financial statements, notes and schedules thereto
and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”). The Company
has delivered or has made available to Purchaser true, correct and complete copies of each of the SEC Documents not available on the EDGAR
system. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act, the rules and
regulations of the SEC promulgated thereunder and the rules and regulations of the Nasdaq Global Market, in each case, applicable
to the SEC Documents, and none of the SEC Documents contains any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. None of the Company’s Subsidiaries is subject to the periodic reporting requirements of the 1934 Act.
There are no outstanding or unresolved comments in comment letters from the SEC staff with respect to any of the SEC Documents. To the
Company’s Knowledge, no SEC Document is the subject of ongoing SEC review or outstanding SEC investigation.

 

(b)            As
of their respective dates, the audited and unaudited financial statements of the Company and its predecessors included in the SEC Documents
(including, in each case, the notes thereto, the “Financial Statements”), complied in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing.
The Financial Statements have been prepared in accordance with GAAP (except (i) as may be otherwise indicated in such Financial Statements
or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed
or summary statements), and fairly present in all material respects the financial position of the Company as of the dates thereof and
the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end
audit adjustments which will not be material, either individually or in the aggregate). The Company is not currently contemplating to
amend or restate any of the Financial Statements (including any notes or any letter of the independent accountants of the Company with
respect thereto), nor, to the Company’s Knowledge, do there exist any facts or circumstances which would require the Company to
amend or restate any of the Financial Statements, in each case, in order for any of the Financials Statements to be in compliance with
GAAP and the rules and regulations of the SEC. The Company has not been informed by its independent accountants that they recommend
that the Company amend or restate any of the Financial Statements or that there is any need for the Company to amend or restate any of
the Financial Statements.

 

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(c)            The
Company maintains internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the 1934 Act) that
are effective to provide reasonable assurances regarding the reliability of the financial reporting and the preparation of financial statements
of the Company and its Subsidiaries for external purposes in accordance with GAAP, and includes those policies and procedures that (i) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of the Company, (ii) transactions are recorded as necessary to permit preparation of financial statements and (iii) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP,
and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of
the Company. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the 1934
Act) that are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under
the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC,
including controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files
or submits under the 1934 Act is accumulated and communicated to the Company’s management, including its principal executive officer
or officers and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure.
Neither the Company nor any of its Subsidiaries has received any notice or correspondence from any accountants, Governmental Entities
or other Person relating to (x) any potential material weakness or significant deficiency in any part of the internal controls over
financial reporting of the Company or any of its Subsidiaries or (y) any fraud, whether or not material, that involves (or involved)
the management or other employees of the Company or its Subsidiaries who have (or had) a significant role in the Company’s or its
Subsidiaries’ internal controls.

 

(d)            There
is no transaction, arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated or other off
balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed or that otherwise
would have a Material Adverse Effect.

 

(e)            There
are no material disagreements of any kind presently existing or, to the Company’s Knowledge, reasonably anticipated to arise between
the Company and any of its Subsidiaries, on the one hand, and the accountants and lawyers formerly or presently engaged by the Company
(including its predecessors) and any of Subsidiaries thereof, on the other hand, and the Company and each of its Subsidiaries is current
with respect to any fees owed to its respective accountants and lawyers which, the failure to pay could affect the Company’s ability
to perform any of its obligations under any of the Definitive Documents.

 

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Section 3.9      Absence
of Certain Changes. Since December 31, 2020 (the “10-K Date”), no Material Adverse Effect has occurred, and there
has not been, and there does not exist, any Effect that would reasonably be expected to have a Material Adverse Effect. Since the 10-K
Date, neither the Company nor any of its Subsidiaries has taken any action that if taken after the date hereof would require the consent
of the Purchaser pursuant to Section 5.1(b). Neither the Company nor any of its Subsidiaries has taken any steps to seek
protection pursuant to any applicable Law relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up,
nor does the Company or any Subsidiary have any Knowledge or reason to believe that any of their respective creditors intend to initiate
involuntary bankruptcy proceedings or any Knowledge of any fact which would reasonably lead a creditor to do so. The Company and its
Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and, after giving effect to the transactions contemplated
by the Definitive Documents, will not be, Insolvent. Neither the Company nor any of its Subsidiaries has engaged in any business
or in any transaction, and does not plan to engage in any business or in any transaction, for which the Company’s or such Subsidiary’s
remaining assets constitute unreasonably small capital with which to conduct the business in which it is engaged as such business is
now conducted and is proposed to be conducted.

 

Section 3.10      Conduct
of Business; Regulatory Permits.

 

(a)            Neither
the Company nor any of its Subsidiaries is in violation of any term of or in default under the Group Companies Organizational Documents.
Neither the Company (including its predecessors) nor any Subsidiaries thereof (i) is, or has been since January 1, 2018, in
violation of any applicable Law or Order applicable thereto or (ii) has received since January 1, 2018 a notification or communication
from any Governmental Entity asserting that it is not or has not been in compliance with any applicable Law or Order, except which could
not reasonably be expected to result in a Material Adverse Effect. Without limiting the generality of the foregoing, the Company is not
in material violation of any of the rules, regulations or requirements of the Nasdaq Global Market, and has no Knowledge of any facts
or circumstances that could reasonably lead to delisting or suspension of trading the Common Stock by the Nasdaq Global Market. Since
January 1, 2018, (i) the Common Stock has been listed or designated for quotation on the Nasdaq Global Market, (ii) trading
in the Common Stock has not been suspended by the SEC or the Nasdaq Global Market and (iii) the Company has received no communication,
written or oral, from the SEC or the Nasdaq Global Market regarding the suspension or delisting of the Common Stock from the Nasdaq Global
Market. The Company and each of its Subsidiaries possess all licenses, certificates, authorizations and permits issued by the appropriate
Governmental Entity necessary to conduct their respective businesses, and neither the Company nor any such Subsidiary has received any
notice of proceedings relating to the revocation or modification of any such license, certificate, authorization or permit, except to
the extent that the failure to possess all such licenses, certificates, authorizations and permits would not, individually or in the
aggregate, have a Material Adverse Effect. There is no Contract or Order binding upon the Company or any of its Subsidiaries or to which
the Company or any of its Subsidiaries is a party which, individually or together with any other Contract or Order, has had or would
reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company or any of its Subsidiaries,
any acquisition of property by the Company or any of its Subsidiaries.

 

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(b)            The
Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action
designed to, or which to its Knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange
Act nor has the Company received any notification that the SEC is contemplating terminating such registration. The Company has not, since
January 1, 2021, received notice from the Nasdaq Global Market to the effect that the Company is not in compliance with the listing
or maintenance requirements of the Nasdaq Global Market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently eligible for electronic
transfer through the Depository Trust Company or another established clearing corporation and the Company is current in payment of the
fees to the Depository Trust Company (or such other established clearing corporation) in connection with such electronic transfer.

 

Section 3.11      Certain
Regulatory Matters.

 

(a)            None
of the Company (including its predecessors), any Subsidiaries thereof or any of their respective directors, officers, or other Representatives
(individually and collectively, a “Company Affiliate”) have violated the U.S. Foreign Corrupt Practices Act (the “FCPA”)
or any other applicable anti-bribery or anti-corruption Law, nor has any Company Affiliate offered, paid, promised to pay, or authorized
the payment of, any money, or offered, given, promised to give, or authorized the giving of, anything of value, to any officer, employee
or any other person acting in an official capacity for any Governmental Entity or any political party or official thereof or to any candidate
for political office (individually and collectively, a “Government Official”) or to any Person under circumstances
in which such Company Affiliate knew or was aware of a high probability that all or a portion of such money or thing of value would be
offered, given or promised, directly or indirectly, to any Government Official, for the purpose of: (i) (A) influencing any
act or decision of such Government Official in his/her official capacity, (B) inducing such Government Official to do or omit to
do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government Official
to influence or affect any act or decision of any Governmental Entity; or (ii) assisting the Company or its Subsidiaries in obtaining
or retaining business for or with, or directing business to, the Company or its Subsidiaries.

 

(b)            The
Company has in place policies, procedures and controls that ensure compliance with the (i) FCPA and (ii) other applicable anti-bribery
or anti-corruption laundering Laws in each foreign jurisdiction in which the Company does business.

 

(c)            No
Company Affiliate or any other business entity or enterprise with which the Company or any Subsidiary is or has been Affiliated or associated,
has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services, whether or not in contravention
of applicable Law, (i) as a kickback, bribe gratuity, lobbying expenditure, political contribution or contingent fee payment to any
Person or (ii) to any political organization, or to the holder of or any aspirant to any elective or appointive public office except
for personal political contributions not involving the direct or indirect use of funds of the Company or any of its Subsidiaries.

 

(d)            The
Company and its Subsidiaries are in compliance with, and have not previously violated, the USA Patriot Act of 2001 and all other applicable
U.S. and non-U.S. anti-money laundering Laws and regulations and Sanctions, including the Laws, executive orders and sanctions programs
administered by OFAC. No Company Affiliate (x) is a Sanctioned Person or has any reason to believe that it is acting on behalf of,
or for the benefit of, any Sanctioned Person or (y) has engaged in any dealings with or the benefit of any Sanctioned Person, or
in or involving any Sanctioned Country.

 

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(e)            Since
January 1, 2018, no allegations of sexual harassment have been made to the Company (including its predecessors) or any Subsidiaries
thereof against any individual in his or her capacity as director or a managerial employee, or to the Company’s Knowledge, any other
employee, of the Company (including its predecessors) or any Subsidiaries thereof.

 

Section 3.12      Sarbanes-Oxley
Act. The Company and each of its Subsidiaries is in material compliance with any and all applicable requirements of the Sarbanes-Oxley
Act of 2002, as amended, and any and all applicable rules and regulations promulgated by the SEC thereunder.

 

Section 3.13      Transactions
With Affiliates. There have not been any transactions or Contracts or series of related transactions or Contracts required to be disclosed
under Item 404 of Regulation S-K under the 1934 Act.

 

Section 3.14      Capitalization

 

(a)            As
of the date hereof, the authorized Capital Stock of the Company consists of 125,000,000 shares of Common Stock, of which 37,310,254 are
issued and outstanding, and 10,000,000 share of preferred stock, of which none are issued and outstanding. No shares of Common Stock are
held in the treasury of the Company. Except for the foregoing Capital Stock, the Company has no other Capital Stock authorized, reserved
for issuance or outstanding.

 

(b)            All
of the Company’s outstanding Capital Stock is duly authorized and validly issued, fully paid and non-assessable (as such concepts
are applicable). All the outstanding shares of Capital Stock of each Subsidiary of the Company have been validly issued and are fully
paid and non-assessable (to the extent such concepts are applicable) and are owned, directly or indirectly, by the Company free and clear
of all Liens.

 

(c)            (A) None
of the Company’s or any of its Subsidiaries’ Capital Stock is subject to preemptive rights or any other similar rights or
restrictions or Liens suffered or permitted by the Company or any Subsidiary; (B) there are no outstanding options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable
or exchangeable for, any Capital Stock of the Company or any of its Subsidiaries, or Contracts by which the Company or any of its Subsidiaries
is or may become bound to issue additional Capital Stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable
or exchangeable for, any Capital Stock of the Company or any of its Subsidiaries; (C) there are no Contracts under which the Company
or any of its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act; (D) there are no
outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and
there are no Contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound
to redeem a security of the Company or any of its Subsidiaries; (E) there are no securities or instruments or Capital Stock containing
anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (F) neither the Company nor any Subsidiary
has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (G) there
are no stockholder agreements, voting trusts or other agreements to which the Company or any of its Subsidiaries is a party or by they
are bound relating to the voting of any shares, interests or Capital Stock of the Company or any of its Subsidiaries.

 

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(d)            True,
correct and complete copies of the Company Organizational Documents, and the terms of all convertible securities and the material rights
of the holders thereof in respect thereto, are set forth in, or filed as exhibits to the SEC Documents.

 

Section 3.15      Indebtedness.
Neither the Company nor any of its Subsidiaries has any outstanding Indebtedness.

 

Section 3.16      Material
Contracts. Neither the Company nor any of its Subsidiaries is party to, and none of their respective properties or assets are bound by,
a Material Contract. Each Material Contract set forth in the SEC Documents is in full force and effect, and is a legal, valid and binding
agreement of the Company or its Subsidiaries, as applicable, and, to the Company’s Knowledge, the other parties thereto, subject
only to the General Enforceability Exceptions. There is no material default or breach by the Company or any of its Subsidiaries, as applicable,
with respect to any such Material Contract or, to the Company’s Knowledge, any other party thereto, and no event has occurred which,
with notice or lapse of time or both, would constitute a material breach or default or would permit termination, material modification
or acceleration thereof by any party to such Material Contract. Neither the Company nor any of its Subsidiaries has waived any material
rights under any such Material Contract. Neither the Company nor any of its Subsidiaries has received written notice of the intention
of any third party under any such Material Contract to cancel, terminate or materially modify the terms of any such Material Contract,
or accelerate the obligations of the Company or any of its Subsidiaries, as applicable, thereunder. There are no current or pending financing
arrangements or assignments of proceeds with respect to any such Material Contract.

 

Section 3.17      Litigation.
Except as would not, individually or in the aggregate, have a Material Adverse Effect, there is no, and since January 1, 2018 there
has not been, any Action before or by the Nasdaq Global Market, any court, public board, other Governmental Entity, self-regulatory organization
or body pending or, to the Knowledge of the Company, threatened against or affecting the Company (including its predecessors) or any
of Subsidiaries thereof, the Capital Stock thereof or any current or former officers, directors, managers or employees thereof, whether
of a civil or criminal nature or otherwise, in their capacities as such. To the Knowledge of the Company, no current or former director,
officer, manager or employee of the Company (including its predecessors) or any of its Subsidiaries has willfully violated 18 U.S.C.
 §1519 or engaged in spoliation in reasonable anticipation of litigation. Without limitation of the foregoing, there has not been,
and to the Knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company (including
its predecessors), any Subsidiaries thereof or any current or former director, officer, manager of employee of the Company or any of
its Subsidiaries. The SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed
by the Company under the Securities Act or the 1934 Act. To the Company’s Knowledge, no fact exists which might result in or form
the basis for any such Action. Neither the Company nor any of its Subsidiaries is subject to any Order.

 

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Section 3.18      Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts, in each case, as is customary in the businesses in which the Company and its Subsidiaries are engaged. All premiums
due and payable in respect of such insurance policies maintained by the Company and its Subsidiaries have been paid in full. Neither
the Company nor any of its Subsidiaries have been refused any insurance coverage sought or applied for, and neither the Company nor any
such Subsidiary has any reason to believe that it will be unable to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to continue its business on substantially the same terms as now
in effect. Excluding insurance policies that have expired and been replaced in the ordinary course of business, no such insurance policy
of the Company or any of its Subsidiaries has been, or has been threatened to be, cancelled by the applicable insurer since January 1,
2018, and neither the Company nor any of its Subsidiaries has received any written notice of cancellation or non-renewal of any such
insurance policy.

 

Section 3.19      Employee
Relations. The Company and each of its Subsidiaries maintains good relationships with their respective employees. No executive officer
(as defined in Rule 501(f) promulgated under the Securities Act) or other key employee of the Company or any of its Subsidiaries
has notified the Company or the applicable Subsidiary that such executive officer or key employee intends to terminate, or materially
amend the terms of, its employment with the Company or the applicable Subsidiary. To the Company’s Knowledge, no executive officer
or other key employee of the Company or any of its Subsidiaries is or will be (with or without the passage of time, or both), in violation
of any material term of any employment Contract, confidentiality, disclosure or proprietary information Contract, non-competition Contract
or any other Contract, or any restrictive covenant, and the continued employment of each such executive officer or other key employee
(as the case may be) does not subject the Company or any of its Subsidiaries to any material liability with respect to any of the foregoing
matters. The Company and its Subsidiaries are in compliance with all applicable federal, state, local and foreign Laws respecting labor,
employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be
in compliance would not, either individually or in the aggregate, result in a Material Adverse Effect. There are no strikes or other
labor disputes against the Company or any of its Subsidiaries, and, to the Knowledge of the Company, there are no strikes or other labor
disputes threatened against the Company or any of its Subsidiaries.

 

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Section 3.20      Title.

 

(a)            The
Company and each of its Subsidiaries holds good title to all real property, leases in real property, facilities or other interests in
real property owned or held by the Company or any of its Subsidiaries, as applicable (the “Real Property”). The Real
Property is free and clear of all Liens and is not subject to any rights of way, building use restrictions, exceptions, variances, reservations,
or limitations of any nature except for (a) Liens for current Taxes not yet due for which adequate reserves (as determined in accordance
with the GAAP) have been established on the Financial Statements, (b) zoning Laws and other land use restrictions that do not, and
will not (with or without the passage of time, or both) impair the present or anticipated use of the Real Property subject thereto, and
(c) mechanics’, carriers’, workmen’s, warehousemen’s, repairmen’s or other statutory liens arising
in the ordinary course of business that would not reasonably be expected to have a Material Adverse Effect. Each Real Property held under
lease by the Company or any of its Subsidiaries is held by the Company or its applicable Subsidiary under a valid, subsisting and enforceable
leases with such exceptions as are not material and do not interfere with the current and anticipated use made and proposed to be made
of such Real Property and buildings by the Company or any of its Subsidiaries, as applicable.

 

(b)            Each
of the Company and its Subsidiaries (as applicable) has good title to, or a valid leasehold interest in, the tangible personal property,
equipment, improvements, fixtures, and other personal property and appurtenances that are used by the Company or its Subsidiary in connection
with the conduct of its business (the “Fixtures and Equipment”). The Fixtures and Equipment are structurally sound,
are in good operating condition and repair, are adequate for the uses to which they are being put, are not in need of maintenance or repairs,
except for routine maintenance and repairs in the ordinary course of business, and are sufficient, in all material respects, for the conduct
of the Company’s and its Subsidiaries’ businesses as currently conducted. The Company and its Subsidiaries collective own
all of the Fixtures and Equipment free and clear of all Liens except for (a) Liens for current Taxes not yet due for which adequate
reserves (as determined in accordance with GAAP) have been established on the Financial Statements, (b) zoning Laws and other land
use restrictions that do not impair the present or anticipated use of the Fixtures and Equipment subject thereto, (c) mechanics’,
carriers’, workmen’s, warehousemen’s, repairmen’s or other statutory liens arising in the ordinary course of business
that would not reasonably be expected to have a Material Adverse Effect and (d) minor liens that have arisen in the ordinary course
of business and that do not, individually or in the aggregate, materially detract from the value of the assets or properties subject thereto
or materially impair the operations of the Company or its any of Subsidiaries.

 

Section 3.21      Intellectual
Property Rights.

 

(a)            The
Company and its Subsidiaries collectively own or possess good and marketable title to, or valid licenses to use, all trademarks, trade
names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights, inventions,
licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and registrations
therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as now conducted and presently
proposed to be conducted in all material respects. None of the Company’s material Intellectual Property Rights have expired or have
been terminated or abandoned, or are expected to expire, or to be terminated or abandoned, in each case, within three (3) years from
the date of the Agreement, except any such Intellectual Property Rights that would not, individually or in the aggregate, have a Material
Adverse Effect. The Company does not have any Knowledge of any infringement, misappropriate or violation by the Company or its Subsidiaries
of Intellectual Property Rights of others.

 

(b)            Subject
to the license and collaboration agreement with Zai Lab (Shanghai) Co., Ltd., the Company is the exclusive owner of the entire right,
title and interest in and to durlobactam (formerly ETX2514), sulbactam-durlobactam (SUL-DUR, formerly ETX2514SUL) and ETX0282CPDP (collectively,
the “Products”), and is the exclusive owner of the entire right, title and interest in and to, or has licensed or has
the right to license all Intellectual Property Rights in the Products, all data associated therewith, and all Intellectual Property Rights
covering or relating to the Products, free and clear of all liens. To the Company’s Knowledge, all patents owned or controlled by
the Company that have been issued or granted by the appropriate patent office are valid and enforceable.

 

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(c)            Subject
to the terms of the July 2017 collaboration agreement between the Company and the Global Antibiotic Research and Development Partnership
(“GARDP”), the Company is the exclusive owner of the entire right, title and interest in and to zoliflodacin, and is the exclusive
owner of the entire right, title and interest in and to, or has licensed or has the right to license all Intellectual Property Rights
in zoliflodacin, all data associated therewith, and all Intellectual Property Rights covering or relating to zoliflodacin, free and clear
of all liens. To the Company’s Knowledge, all patents owned or controlled by the Company that have been issued or granted by the
appropriate patent office are valid and enforceable.

 

(d)            There
is no action which has been brought, or to the Knowledge of the Company, being threatened, against the Company or any of its Subsidiaries
regarding its Intellectual Property Rights, except such as would not, if determined adversely to the Company or any of its Subsidiaries,
individually or in the aggregate, have a Material Adverse Effect. To the Knowledge of the Company, there are no facts or circumstances
which might give rise to any actions regarding the Company’s Intellectual Property Rights.

 

(e)            To
the Company’s Knowledge, the manufacture, use, offer for sale, sale and/or importation of any of the Products or zoliflodacin will
not infringe any patent or other Intellectual Property Rights of any third party. Neither Company nor any of its Subsidiaries has received
written or oral notice of any action, suit or proceeding that claims, that the development, manufacture, use, marketing, sale, offer for
sale, importation or distribution of any Product or zoliflodacin would infringe on Intellectual Property Rights of any third party.

 

(f)            The
Company is in material compliance with all terms of and obligations under its March 2017 and October 2017 funding agreements
with the Trustees of Boston University, as amended in September 2019 (“the CARB-X Agreements”) to utilize funds
from the U.S. government through the Combating Antibiotic Resistant Bacteria Biopharmaceutical Accelerator (CARB-X) program, and has not
breached and is not in default under any provision of the CARB-X Agreements.

 

(g)            To
the Knowledge of the Company, no event has occurred that would give the Trustees of Boston University or CARB-X the right to unilaterally
terminate the CARB-X Agreements. The Company has not received any notice of an intention by the Trustees of Boston University or CARB-X
to terminate the CARB-X Agreements, and the Company has not agreed with the Trustees of Boston University or CARB-X to terminate the CARB-X
agreements in whole or in part.

 

(h)            The
Company is in material compliance with all terms of and obligations under its April 2018 license and collaboration agreement with
Zai Lab (Shanghai) Co., Ltd. (“the Zai Lab Agreement”) regarding durlobactam and sulbactam-durlobactam, and has not breached
and is not in default under any provision of the Zai Lab Agreement.

 

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(i)            To
the Knowledge of the Company, no event has occurred that would give Zai Lab the right to unilaterally terminate the Zai Lab Agreement.
The Company has not received any notice of an intention by Zai Lab to terminate the Zai Lab Agreement, and the Company has not agreed
with Zai Lab to terminate the Zai Lab Agreement in whole or in part.

 

(j)            The
Company is in material compliance with all healthcare laws and regulations.

 

(k)            The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their
Intellectual Property Rights. In the past five years, the Company and its Subsidiaries have not: (i) experienced any actual, alleged
or suspected data breach or other security incident or (ii) been subject to or received any notice of any audit, investigation, complaint,
or other claim concerning the violation of any data protection laws.

 

Section 3.22      Environmental
Laws.

 

(a)            The
Company (including its predecessors) and Subsidiaries thereof (A) are, and since January 1, 2018 have been, in compliance with
any and all Environmental Laws (as defined below), and neither the Company nor any of its Subsidiaries has received any written communication
alleging that the Company is in violation of, or has any liability under, any Environmental Law, (B) have received all permits, licenses
or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (C) are in compliance
with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (A), (B) and (C), the
failure to so comply would not have, individually or in the aggregate, a Material Adverse Effect.

 

(b)            No
Hazardous Materials (i) have been disposed of or otherwise released from any currently or formerly owned Real Property of the Company
(including its predecessors) or any Subsidiaries thereof in violation of any Environmental Laws; and (ii) are, to the Company’s
Knowledge, present on, over, beneath, in or upon any Real Property or any portion thereof in quantities that would constitute a violation
of any Environmental Laws.

 

Section 3.23      Tax
Status. The Company and each of its Subsidiaries (i) has filed all Tax Returns required by any jurisdiction to which it is subject,
(ii) has paid all Taxes and other governmental assessments and charges (including satisfying its withholding tax obligations) levied
or imposed on their properties, income or assets or otherwise due and payable, except those being contested in good faith for which adequate
reserves (as determined in accordance with the GAAP) have been established on the Financial Statements and (iii) has set aside on
its books provision reasonably adequate for the payment of all Taxes for periods subsequent to the periods to which such Tax Returns
apply, except in case of (i) and (ii), where the failure to file or pay would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect. There are no unpaid Taxes claimed to be due and payable by the Taxing authority of any
jurisdiction, and, to Knowledge of the Company, no facts or circumstances exist of that would be the basis for any such claim. The Company
is not operated in such a manner as to qualify as a passive foreign investment company, as defined in Section 1297 of the Internal
Revenue Code of 1986, as amended (the “Code”).

 

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Section 3.24      Investment
Company Status. The Company is not, and upon consummation of the sale of the Securities will not be, an “investment company,”
an affiliate of an “investment company,” a company controlled by an “investment company” or an “affiliated
person” of, or “promoter” or “principal underwriter” for, an “investment company” as such terms
are defined in the Investment Company Act of 1940, as amended.

 

Section 3.25      U.S.
Real Property Holding Corporation. The Company (including its predecessors) and all Subsidiaries thereof is not, has not ever been, and,
for so long as any of the Securities are held by the Purchaser, shall not become, a U.S. real property holding corporation within the
meaning of Section 897 of the Code.

 

Section 3.26      Registration
Eligibility. The Company is, and from and after the First Closing will be, eligible to register the Registrable Securities (as defined
in the Registration Rights Agreement) for resale by the Purchaser using Form S-3 promulgated under the 1933 Act.

 

Section 3.27      Transfer
Taxes. On the Second Closing Date, all stock transfer or other Taxes (other than income or similar Taxes) which are required to be paid
in connection with the issuance, sale and transfer of the Securities to be sold to Purchaser pursuant to this Agreement will be, or will
have been, fully paid or provided for by the Company, and all Laws imposing such Taxes will be or will have been complied with in all
material respects.

 

Section 3.28      Shell
Company Status. The Company is not an issuer identified in, and subject to, Rule 144(i).

 

Section 3.29      ERISA
Compliance.

 

(a)            Each
Plan is in material compliance with the applicable provisions of ERISA, the Code and other applicable federal or state Laws.

 

(b)            (i) No
ERISA Event has occurred for which the Company, any of its Subsidiaries or any of their respective ERISA Affiliates has any residual liability;
and (ii) no ERISA Event is expected to occur, except as would not reasonably be expected, individually or in the aggregate, to result
in a Material Adverse Effect.

 

(c)            At
no time since April 1, 2017 or otherwise, to the Company’s Knowledge during the past six (6) years, has the Company (including
its predecessors) or any member of the “Controlled Group” thereof (defined as any organization which is a member of a controlled
group of organizations within the meaning of Code Sections 414(b), (c), (m) or (o)) maintained, sponsored or contributed to, or been
obligated to contribute to (i) any retirement plan which is subject to Title IV of ERISA or Section 412 of the Code or (ii) any
Multiemployer Plan.

 

Section 3.30      Management.
Since January 1, 2018, no current or former officer or director or, to the Knowledge of the Company, no current ten percent (10%)
or greater stockholder of the Company (including its predecessors) or any Subsidiaries thereof has been the subject of:

 

(a)            a
petition under applicable bankruptcy Laws or any other applicable insolvency or moratorium Law or the appointment by a court of a receiver,
fiscal agent or similar officer for such Person, or any partnership in which such person was a general partner, or any corporation or
business association of which such person was an executive officer;

 

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(b)            a
conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations that do not relate
to driving while intoxicated or driving under the influence);

 

(c)            any
Order that has not subsequently reversed, suspended or vacated, permanently or temporarily enjoining any such person from, or otherwise
limiting, the following activities:

 

(i)            engaging
in any particular type of business practice; or

 

(ii)            engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of securities
Laws or commodities Laws;

 

(d)            any
Order that has not been subsequently reversed, suspended or vacated, barring, suspending or otherwise limiting for more than sixty (60)
days the right of any such person to engage in any activity described in the preceding sub paragraph, or to be associated with persons
engaged in any such activity;

 

(e)            a
finding by a Governmental Entity in a civil Action or by the SEC or other authority to have violated any securities Laws or decrees, and
the judgment in such civil Action or finding by the SEC or any other authority has not been subsequently reversed, suspended or vacated;
or

 

(f)            a
finding by a Governmental Entity in a civil Action or by the Commodity Futures Trading Commission to have violated any federal commodities
Laws, and the judgment in such civil Action or finding has not been subsequently reversed, suspended or vacated.

 

Section 3.31      FDA.
There is no pending, completed or, to the Company's Knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative
or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries, and none of the Company
or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other Governmental Entity,
which (i) contests the premarket clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing
or packaging of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval
of, requests the recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials
relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its
Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to
enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation
of any laws, rules or regulations by the Company or any of its Subsidiaries. The properties, business and operations of the Company
have been and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the
FDA.

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Section 3.32          Stock
Option Plans. Each stock option granted by the Company was granted (i) in accordance with the terms of the applicable stock option
plan of the Company and (ii) with an exercise price at least equal to the fair market value of the Common Stock on the date such
stock option would be considered granted under GAAP and applicable Law. No stock option granted under the Company’s stock option
plan has been backdated. The Company has not granted, and there is no and has not been any policy or practice of the Company to knowingly
grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement
of material information regarding the Company or its Subsidiaries or their financial results or prospects.

 

Section 3.33          No
Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the Securities
Act, none of the Company, any of its predecessors, any Affiliated issuer, any director, executive officer, other officer of the Company
participating in the offering of the Securities contemplated by this Agreement, or to the Company’s Knowledge, any beneficial owner
of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter
(as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each,
an “Issuer Covered Person” and, together, “Issuer Covered Persons”) is subject to any of the “Bad
Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable
care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable,
with its disclosure obligations under Rule 506(e), and has furnished to Purchaser a copy of any disclosures provided thereunder.
The Company is not aware of any Person that has been or will be paid (directly or indirectly) remuneration for solicitation of Purchaser
or other potential purchasers in connection with the sale of the Securities contemplated by this Agreement.

 

Section 3.34          No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in this Agreement, neither
the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities
to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require the registration
of any such securities under the Securities Act or (ii) any applicable stockholder approval provisions of the Nasdaq Global Market.

 

Section 3.35          Regulation
M Compliance. The Company has not, and to its Knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any
action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of,
any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other
securities of the Company.

 

Section 3.36          Proxy
Statement. None of the information in the Proxy Statement will, on the date it is filed, on the date it is first mailed to the stockholders
of the Company and at the time of the Special Meeting, contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which
they are made, not misleading. The Proxy Statement will, at the time of the Special Meeting, comply as to form in all material respects
with the requirements of the Exchange Act and the rules and regulations promulgated thereunder.

 

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Section 3.37          Specified
Contract. The Contract set forth on Schedule 3.37 has been terminated and is of no further force and effect, with no ongoing liabilities
or obligations of the Company, other than customary indemnification and expense reimbursement obligations.

 

Article IV

 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

Purchaser hereby represents
and warrants as of the date hereof, as of the First Closing, and as of the Second Closing, as follows:

 

Section 4.1            Organization.
Purchaser is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Delaware.

 

Section 4.2            Organizational
Power and Authority. Purchaser has the requisite corporate power and authority to enter into, execute and deliver this Agreement and
to perform its obligations hereunder and has taken or will take all necessary corporate action required for the due authorization, execution,
delivery and performance by it of this Agreement and the transactions contemplated hereby.

 

Section 4.3            Execution
and Delivery. This Agreement has been validly executed and delivered by Purchaser, and, assuming due and valid execution and delivery
hereof by the Company, will constitute valid and legally binding obligations of Purchaser, enforceable against Purchaser in accordance
with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar Laws limiting creditors’
rights generally or by equitable remedies (regardless of whether enforceability is considered in a proceeding at law or in equity).

 

Section 4.4            No
Conflict. The execution and delivery by Purchaser of this Agreement and the consummation of the transactions contemplated hereby (a) will
not conflict with, or result in a breach, modification, termination or violation of, any of the terms or provisions of, or constitute
a default under (with or without notice or lapse of time or both), or result in the acceleration of, or the creation of any Lien under,
any Contract to which Purchaser is party or is bound or to which any of the property or assets of Purchaser are subject, (b) will
not result in any violation of the provisions of the certificate of incorporation or bylaws of Purchaser, and (c) will not result
in any material violation of any Law or Order applicable to Purchaser or any of its properties, except in each of the cases described
in clauses (a) through (c), for any conflict, breach, modification, termination, violation, default, acceleration or Lien which
would not reasonably be expected, individually or in the aggregate, to prohibit or materially and adversely impact Purchaser’s
performance of its obligations under this Agreement.

 

Section 4.5            Consents
and Approvals. No consent, approval, authorization, Order, registration or qualification of or with any Governmental Entity having jurisdiction
over Purchaser or any of its properties is required for the execution and delivery by Purchaser of this Agreement, the compliance by
Purchaser with the provisions hereof and the consummation of the transactions contemplated hereby, except any consent, approval, authorization,
Order, registration or qualification which, if not made or obtained, would not reasonably be expected, individually or in the aggregate,
to prohibit or materially and adversely impact Purchaser’s performance of its obligations under this Agreement.

 

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Section 4.6            No
Registration. Purchaser understands that (a) the Purchased Common Stock and Purchased Warrants (including any shares of Common Stock
issuable upon exercise thereof) have not been registered under the Securities Act by reason of a specific exemption or exclusion from
the registration provisions of the Securities Act, the availability of which depends on, among other things, the bona fide nature of
the investment intent and the accuracy of Purchaser’s representations as expressed herein or otherwise made pursuant hereto and
(b) the foregoing securities cannot be sold unless subsequently registered under the Securities Act or an exemption or exclusion
from registration is available.

 

Section 4.7            Purchasing
Intent. Purchaser is acquiring the Purchased Common Stock and Purchased Warrants (including any shares of Common Stock issuable upon
exercise thereof) for its own account or accounts or funds over which it or its Affiliates hold voting or investment discretion, not
otherwise as a nominee or agent, and not otherwise with the view to, or for resale in connection with, any distribution thereof not in
compliance with applicable securities Laws, and Purchaser has no present intention of selling, granting any other participation in, or
otherwise distributing the same, except in compliance with applicable securities Laws.

 

Section 4.8            Sophistication;
Investigation. Purchaser has such knowledge and experience in financial and business matters such that it is capable of evaluating the
merits and risks of its investment in the Purchased Common Stock and Purchased Warrants (including any shares of Common Stock issuable
upon exercise thereof). Purchaser is an “accredited investor” within the meaning of Rule 501(a) of the Securities
Act and an “institutional account” within the meaning of Rule 4512 of the Financial Industry Regulatory Authority or
a “qualified institutional buyer” within the meaning of Rule 144A of the Securities Act. Purchaser understands and is
able to bear any economic risks associated with such investment (including the necessity of holding such shares for an indefinite period
of time). Except for the representations and warranties expressly set forth in this Agreement, Purchaser has independently evaluated
the merits and risks of its decision to enter into this Agreement and consummate the transactions contemplated hereby.

 

Section 4.9            Sufficient
Funds. Purchaser has, or at the applicable Closing will have, sufficient assets and the financial capacity to perform all of its obligations
under this Agreement.

 

Section 4.10          Bad
Actor. Neither the Purchaser nor any person or entity with whom the Purchaser will share beneficial ownership of the Purchased Common
Stock is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under
the Securities Act.

 

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Section 4.11          Disclaimer
of Other Representations and Warranties. Except as expressly set forth in Article III (as qualified by the SEC Documents) or in
any other Definitive Document, Purchaser acknowledges that neither the Company nor any other Person has made or is making any representation
or warranty of any kind, express or implied, at law or in equity, including with respect to it or any of its Subsidiaries or any of their
respective businesses, assets, liabilities, condition (financial or otherwise), prospects or operations, or otherwise, and any such other
representations and warranties are hereby expressly disclaimed by the Company. Without limiting the foregoing, Purchaser has received
and may continue to receive from the Company certain estimates, projections, forecasts and other forward-looking information, as well
as certain business plans and cost-related plan information, regarding the Company, its Subsidiaries and their respective businesses
and operations, and Purchaser is making its own evaluation of the adequacy and accuracy of all such estimates, projections, forecasts
and other forward-looking information, as well as such business plans and cost-related plan information, and Purchaser has not relied
upon and will not have any claim against the Company or any of its Subsidiaries, or any of their respective stockholders, directors,
officers, employees, Affiliates, advisors, agents or representatives, or any other Person, with respect thereto.

 

Article V

 

ADDITIONAL COVENANTS

 

Section 5.1            Covenants
of the Company. During the period from the date hereof until the earlier of the Second Closing and the termination of this Agreement
in accordance with Article VIII, except (x) as otherwise expressly required by this Agreement, (y) as required
by applicable Law or (z) as consented to in writing by the Purchaser, during the period from the date hereof until the earliest
of (i) the Second Closing, (ii) the Second Closing Abandonment and (iii) the termination of this Agreement in accordance
with Article VIII, the Company shall, and shall cause each of its direct and indirect Subsidiaries to:

 

(a)            use
commercially reasonable efforts to preserve, in all material respects, its business operations, organization and goodwill and its relationships
with suppliers, customers, lenders and others having business dealings with the Company and its Subsidiaries;

 

(b)            to
the extent any legal or structural impediment arises that would prevent, hinder, or delay the consummation of the transactions contemplated
by this Agreement, support and take all steps reasonably necessary and desirable to address and resolve any such impediment;

 

(c)            use
good faith and commercially reasonable efforts to obtain all required Governmental Entity and third-party approvals for the consummation
of the transactions contemplated by this Agreement;

 

(d)            inform
counsel to the Purchaser as soon as reasonably practicable after becoming aware of: (A) any Material Adverse Effect; (B) any
notice of any commencement of any involuntary insolvency proceedings, legal suit for payment of debt or securement of security from or
by any person in respect of the Company or any of its Subsidiaries; (C) a breach of this Agreement; and (D) any representation
or statement made or deemed to be made by the Company or any of its Subsidiaries under this Agreement, which is or proves to have been
materially incorrect or misleading in any respect when made or deemed to be made;

 

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(e)            maintain
the good standing of the Company and any Subsidiaries of the Company under the Laws of the state or other jurisdiction in which they
are incorporated or organized;

 

(f)             make
all necessary registrations, declarations and filings with, and notices to, Governmental Entities (including under the Securities Exchange
Act of 1934 (the “Exchange Act”)) (a) in the ordinary course of business and (b) with respect to the transactions
contemplated by this Agreement; and

 

(g)            use
commercially reasonable efforts to operate their business in the ordinary course of business.

 

Section 5.2            [Reserved]

 

Section 5.3            [Reserved].

 

Section 5.4            Stockholder
Approval.

 

(a)            As
promptly as reasonably practicable following the date hereof, the Company shall take all action necessary under applicable Law to call,
give notice of, convene and hold a meeting of the stockholders of the Company for the purpose of obtaining the Stockholder Approval (the
 “Special Meeting”). The Company will convene and hold the Special Meeting no later than the thirtieth (30th) day following
the mailing of the Proxy Statement to the Company’s stockholders. The Company shall take all action necessary under applicable
Law to obtain the Stockholder Approval at the Special Meeting, such meeting in no event to be held later than June 30, 2021. The
Company shall take reasonable measures to ensure that all proxies solicited in connection with the Stockholder Approval are solicited
in compliance with all applicable Law.

 

(b)            As
promptly as reasonably practicable after the date hereof, the Company shall prepare and file with the SEC a preliminary proxy statement
(as amended and supplemented, the “Proxy Statement”), relating to the Special Meeting, which shall include the recommendation
of the Board that the stockholders of the Company vote in favor of the adoption and approval of this Agreement and the transactions contemplated
herein and in the other Definitive Documents. The Company shall use its reasonable best efforts to obtain the Stockholder Approval, including
using reasonable best efforts to solicit proxies from the Company’s stockholders. The Company will cause the Proxy Statement to
comply as to form in all material respects with the applicable requirements of the Exchange Act and the rules of the SEC and Nasdaq
Global Market. The Company shall not file the Proxy Statement without providing Purchaser a reasonable opportunity to review and comment
thereon (which comments shall be reasonably considered by the Company). The Company shall resolve all SEC comments with respect to the
Proxy Statement as promptly as practicable after receipt thereof and cause the Proxy Statement in definitive form to be cleared by the
SEC and mailed (if required by applicable Law) to the Company’s stockholders as promptly as reasonably practicable following filing
with the SEC. The Company, prior to responding to SEC comments with respect to the Proxy Statement, will first provide Purchaser and
its Representatives a reasonable opportunity to review and comment thereon, and the Company will give due consideration to all reasonable
additions, deletions or changes suggested thereto by Purchaser or its Representatives.

 

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(c)            Nothing
contained in this Agreement shall prohibit the Company or the Board from (i) complying with Rules 14d-9 and 14e-2(a) promulgated
under the Exchange Act, or (ii) issuing a “stop, look and listen” communication or similar communication of the type
contemplated by Section 14d-9(f) under the Exchange Act or (iii) otherwise making any disclosure to the Company stockholders;
provided, however, that in the case of the foregoing clause (iii) the Board determines in good faith, after consultation
with its outside legal counsel, that failure to make such disclosure would be inconsistent with its fiduciary duties under applicable
Law.

 

Section 5.5            Registration
Rights Agreement. Simultaneously with the First Closing, the Company and the Purchaser shall enter into the registration rights agreement
attached hereto as Exhibit B (the “Registration Rights Agreement”), whereby the Purchaser will be entitled
to be named as a “Holder” thereunder (with all attendant rights), to include the Purchased Common Stock, the Purchased Warrants
and the Common Stock underlying the Purchased Warrants as “Registrable Securities” thereunder and to provide for the filing
and continuous effectiveness of a Shelf Registration Statement (as defined in the Registration Rights Agreement) covering the
Purchased Common Stock, the Purchased Warrants and the Common Stock underlying the Purchased Warrants, with such filing to be made no
later than 90 days following the First Closing.

 

Section 5.6            Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require
the registration under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of the Securities
for purposes of the rules and regulations of the Nasdaq Global Market such that it would require stockholder approval prior to the
closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.

 

Section 5.7            Required
Minimum.

 

(a)            The
Company shall maintain a reserve of the Required Minimum from its duly authorized shares of Common Stock for issuance pursuant to this
Agreement in such amount as may then be required to fulfill its obligations in full under this Agreement, without regard to any conversion
or exercise limits therein.

 

(b)            If,
on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 130% of (i) the
Required Minimum on such date, minus (ii) the number of shares of Common Stock previously issued pursuant to this Agreement, then
the Board of Directors shall use reasonable best efforts to amend the Certificate of Incorporation to increase the number of authorized
but unissued shares of Common Stock to at least the Required Minimum at such time (minus the number of shares of Common Stock previously
issued pursuant to the Transaction Documents), as soon as reasonably practicable and in any event not later than the 30th day after such
date, provided that the Company will not be required at any time to authorize a number of shares of Common Stock greater than the maximum
remaining number of shares of Common Stock that could possibly be issued after such time pursuant to this Agreement.

 

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(c)            Prior
to the date hereof, the Company has filed with the Nasdaq Global Market a Listing of Additional Shares Notification under Listing Rule 5250(e)(2) (an
 “LAS Notification”) covering a number of shares of Common Stock at least equal to the Required Minimum. Promptly following
the date hereof, the Company shall take all steps necessary to cause such shares of Common Stock to be approved for listing or quotation
on Nasdaq Global Market as soon as possible thereafter, and shall maintain the listing or quotation of a numbers of shares of Common
Stock on any date equal to the Required Minimum on such date on the Nasdaq Global Market. The Company agrees to maintain the eligibility
of the Common Stock for electronic transfer through the Depository Trust Company or another established clearing corporation, including,
without limitation, by timely payment of fees to the Depository Trust Company or such other established clearing corporation in connection
with such electronic transfer. Following the First Closing, the Company shall, from time to time as required, within the time period
required by the Nasdaq Global Market, prepare and file with the Nasdaq Global Market a Change in Shares Outstanding.

 

Section 5.8            Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding shares of Common
Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations under
the Definitive Documents, including, without limitation, its obligation to issue the Securities pursuant to this Agreement, are unconditional
and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution
or any claim the Company may have against Purchaser and regardless of the dilutive effect that such issuance may have on the ownership
of the other stockholders of the Company.

 

Section 5.9            Expense
Reimbursement. Upon either or both of the First Closing or the Second Closing, the Company shall promptly, upon written request of the
Purchaser, reimburse the Purchaser for all reasonable and documented fees and expenses of the Purchaser and its Affiliates and Representatives
(including the fees and expenses of counsel) incurred prior to, on or after the date hereof in connection with the examination, review,
due diligence investigation, documentation, negotiation, closing and funding of the transactions contemplated by this Agreement. Notwithstanding
anything to the contrary herein, this Section 5.9 shall survive the termination of this Agreement.

 

Section 5.10          Blue
Sky Filings. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption
for, or to qualify the Securities for, sale to the Purchaser at the First Closing or Second Closing, as applicable, under applicable
securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon
request of any Purchaser.

 

Article VI

 

CONDITIONS TO THE OBLIGATIONS OF THE PARTIES

 

Section 6.1            Conditions
to the Obligations of the Purchaser at the First Closing. The obligations of Purchaser to consummate the First Closing shall be subject
to (unless waived in writing by the Purchaser) the satisfaction of the following conditions prior to or at the First Closing:

 

(a)            Material
Adverse Effect. Since the date of this Agreement, there shall not have occurred a Material Adverse Effect.

 

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(b)            Governmental
Approvals. All authorizations, approvals, consents or clearances under applicable Law required in connection with the transactions
contemplated by this Agreement shall have been obtained or filed.

 

(c)            No
Legal Impediment to Issuance. No applicable Law will have been enacted or made effective and no Order will have been issued, promulgated,
enforced or made that serves to restrain, enjoin, make illegal or prohibit the timely consummation of the transactions contemplated by
this Agreement, and no action by a Governmental Entity will have been commenced and be continuing that seeks to restrain, enjoin, make
illegal or prohibit the timely consummation of the transactions contemplated by this Agreement.

 

(d)            Accuracy
of the Representations and Warranties. (i) The Fundamental Representations shall be true and correct in all material respects
as of the date hereof and as of the First Closing as though made at and as of the First Closing (other than such representations and
warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date) and (ii) the other representations
and warranties of the Company shall be true and correct as of the date hereof and as of the First Closing as though made at and as of
the First Closing (other than such representations and warranties as are made as of an earlier date, which shall be so true and correct
as of such earlier date), except in each case for such failure to be true and correct that, individually or in the aggregate, has not
resulted in a Material Adverse Effect, in all cases disregarding all materiality qualifiers in such representations and warranties.

 

(e)            Compliance
with Covenants. The Company shall have performed and complied, in all material respects, with all of its covenants and agreements
contained in this Agreement that contemplate, by their terms, performance or compliance prior to the First Closing.

 

(f)             Delivery
of the Closing Certificate. The Company shall have delivered to Purchaser a certificate duly executed by the Chief Executive Officer
of the Company certifying that the conditions set forth in clauses (a), (d) and (e) of this Section 6.1 have been
fully satisfied.

 

(g)            Suspension.
Since the date hereof, trading in the Common Stock shall not have been suspended.

 

(h)            Nasdaq
Global Market Filing. The Company shall have filed the LAS notification with the Nasdaq Global Market.

 

(i)             Other
Deliverables and Actions. The Company shall have delivered or caused to be delivered and shall have taken each of the actions contemplated
by Section 2.2(b).

 

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Section 6.2            Conditions
to the Obligations of the Company at the First Closing. The obligations of the Company to consummate the First Closing shall be subject
to (unless waived in writing by the Company) the satisfaction of each of the following conditions prior to or at the First Closing:

 

(a)            Governmental
Approvals. All authorizations, approvals, consents or clearances under applicable Law required in connection with the transactions
contemplated by this Agreement shall have been obtained or filed.

 

(b)            No
Legal Impediment to Issuance. No applicable Law will have been enacted or made effective and no Order will have been issued, promulgated,
enforced or made that serves to restrain, enjoin, make illegal or prohibit the consummation of the transactions contemplated by this
Agreement, and no action by a Governmental Entity will have been commenced and be continuing that seeks to restrain, enjoin, make illegal
or prohibit the consummation of the transactions contemplated by this Agreement.

 

(c)            Accuracy
of the Representations and Warranties. The representations and warranties of the Purchaser shall be true and correct in all respects
as of the date hereof and as of the First Closing as though made at and as of the First Closing (other than such representations and
warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date) except, in each case, as would
not reasonably be expected, individually or in the aggregate, to prohibit or materially and adversely impact Purchaser’s performance
of its obligations under this Agreement.

 

(d)            Compliance
with Covenants. The Purchaser shall have performed and complied, in all material respects, with all of its covenants and agreements
contained in this Agreement that contemplate, by their terms, performance or compliance prior to the First Closing.

 

Section 6.3            Conditions
to the Obligations of the Purchaser at the Second Closing. The obligations of Purchaser to consummate the Second Closing shall be subject
to (unless waived in writing by the Purchaser) the satisfaction of the following conditions prior to or at the Second Closing:

 

(a)            Material
Adverse Effect. Since the date of this Agreement, there shall not have occurred a Material Adverse Effect.

 

(b)            Governmental
Approvals. All authorizations, approvals, consents or clearances under applicable Law required in connection with the transactions
contemplated by this Agreement shall have been obtained or filed.

 

(c)            No
Legal Impediment to Issuance. No applicable Law will have been enacted or made effective and no Order will have been issued, promulgated,
enforced or made that serves to restrain, enjoin, make illegal or prohibit the timely consummation of the transactions contemplated by
this Agreement, and no action by a Governmental Entity will have been commenced and be continuing that seeks to restrain, enjoin, make
illegal or prohibit the timely consummation of the transactions contemplated by this Agreement.

 

(d)            Accuracy
of the Representations and Warranties. (i) The Fundamental Representations shall be true and correct in all material respects
as of the date hereof and as of the Second Closing as though made at and as of the Second Closing (other than such representations and
warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date) and (ii) the other representations
and warranties of the Company shall be true and correct as of the date hereof and as of the Second Closing as though made at and as of
the Second Closing (other than such representations and warranties as are made as of an earlier date, which shall be so true and correct
as of such earlier date), except in each case for such failure to be true and correct that, individually or in the aggregate, has not
resulted in a Material Adverse Effect, in all cases disregarding all materiality qualifiers in such representations and warranties.

 

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(e)            Compliance
with Covenants. The Company shall have performed and complied, in all material respects, with all of its covenants and agreements
contained in this Agreement that contemplate, by their terms, performance or compliance prior to the Second Closing.

 

(f)            Delivery
of the Closing Certificate. The Company shall have delivered to Purchaser a certificate duly executed by the Chief Executive Officer
of the Company certifying that the conditions set forth in clauses (a), (d) and (e) of this Section 6.1 have been
fully satisfied.

 

(g)            Suspension.
Since the date hereof, trading in the Common Stock shall not have been suspended.

 

(h)            Stockholder
Approval. The Stockholder Approval shall have been duly received.

 

(i)            Other
Deliverables and Actions. The Company shall have delivered or caused to be delivered and shall have taken each of the actions contemplated
by Section 2.3(b).

 

Section 6.4            Conditions
to the Obligations of the Company at the Second Closing. The obligations of the Company to consummate the Second Closing shall be subject
to (unless waived in writing by the Company) the satisfaction of each of the following conditions prior to or at the Second Closing:

 

(a)            Governmental
Approvals. All authorizations, approvals, consents or clearances under applicable Law required in connection with the transactions
contemplated by this Agreement shall have been obtained or filed.

 

(b)            No
Legal Impediment to Issuance. No applicable Law will have been enacted or made effective and no Order will have been issued, promulgated,
enforced or made that serves to restrain, enjoin, make illegal or prohibit the consummation of the transactions contemplated by this
Agreement, and no action by a Governmental Entity will have been commenced and be continuing that seeks to restrain, enjoin, make illegal
or prohibit the consummation of the transactions contemplated by this Agreement.

 

(c)            Accuracy
of the Representations and Warranties. The representations and warranties of the Purchaser shall be true and correct in all respects
as of the date hereof and as of the Second Closing as though made at and as of the Second Closing (other than such representations and
warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date) except, in each case, as would
not reasonably be expected, individually or in the aggregate, to prohibit or materially and adversely impact Purchaser’s performance
of its obligations under this Agreement.

 

    36

     

    

 

(d)            Compliance
with Covenants. The Purchaser shall have performed and complied, in all material respects, with all of its covenants and agreements
contained in this Agreement that contemplate, by their terms, performance or compliance prior to the Second Closing.

 

(e)            Stockholder
Approval. The Stockholder Approval shall have been duly received.

 

Article VII

 

INTENTIONALLY OMITTED

 

Article VIII

 

TERMINATION

 

Section 8.1            Termination.
This Agreement may be terminated, and the transactions contemplated hereby may be abandoned, at any time prior to the First Closing:

 

(a)            by
mutual written consent of the Company and the Purchaser;

 

(b)            by
the Purchaser, upon written notice to the Company, if the First Closing shall not have been consummated on or prior to 5:00 pm New York
Time on May 30, 2021 or such later date, if any, as the Company and the Purchaser may mutually agree upon in writing (such date,
the “Termination Date”); provided, however, that the right to terminate this Agreement pursuant to this
Section 8.1(b) shall not available to the Purchaser if Purchaser’s breach of any representation, warranty, covenant
or other agreement contained in this Agreement is the primary cause of the failure of the First Closing to occur on or prior to the Termination
Date;

 

(c)            by
the Company or the Purchaser, upon written notice to the other Party, if a Governmental Entity of competent jurisdiction has issued an
Order or has taken any other action permanently enjoining or otherwise prohibiting the consummation of the transactions contemplated
by this Agreement, and such Order or action has become final and non-appealable; provided, however, that the right to terminate
this Agreement pursuant to this Section 8.1(c) shall not be available to any Party whose breach of any representation,
warranty, covenant or other agreement contained in this Agreement is the primary cause of the failure to avoid such Order or other action;
or

 

(d)            by
Purchaser, upon written notice to the Company, if:

 

 (i)           (A) the
Company has breached any representation, warranty, covenant or other agreement made by the Company in this Agreement or such representation
or warranty shall have become inaccurate and such breach or inaccuracy would, individually or in the aggregate, cause a condition to
the First Closing or Second Closing to not be able to be satisfied, (B) the Purchaser shall have delivered written notice of such
breach or inaccuracy to the Company and (C) such breach or inaccuracy is not cured by the Company before the earlier of (x) the
10th day following the delivery of such notice, and (y) the Termination Date; or

 

    37

     

    

 

 (ii)          the
Company or any of its direct or indirect Subsidiaries (A) voluntarily commences any case or files any petition seeking bankruptcy,
winding up, dissolution, liquidation, administration, moratorium, reorganization or other relief under any federal, state or foreign
bankruptcy, insolvency, administrative receivership or similar law now or hereafter in effect; (B) consents to the institution of,
or fails to contest in a timely and appropriate manner, any involuntary proceeding or petition described in the preceding subsection
(A); (C) applies for or consents to the appointment of a receiver, administrator, administrative receiver, trustee, custodian, sequestrator,
conservator or similar official with respect to the Company or any Affiliate or for a substantial part of the Company’s assets;
(D) makes a general assignment or arrangement for the benefit of creditors; or (E) takes any corporate action for the purpose
of authorizing any of the foregoing.

 

(e)            by
the Company, upon written notice to the Purchaser, if:

 

 (i)           (A) the
Purchaser has breached any representation, warranty, covenant or other agreement made by Purchaser in this Agreement or such representation
or warranty shall have become inaccurate and such breach or inaccuracy would, individually or in the aggregate, cause a condition to
the First Closing or Second Closing to not be able to be satisfied, (B) the Company shall have delivered written notice of such
breach or inaccuracy to the Purchaser and (C) such breach or inaccuracy is not cured by the Purchaser before the earlier of (x) the
10th day following the delivery of such notice, and (y) the Termination Date; or

 

 (ii)          the
Purchaser or any of its direct or indirect Subsidiaries (A) voluntarily commences any case or files any petition seeking bankruptcy,
winding up, dissolution, liquidation, administration, moratorium, reorganization or other relief under any federal, state or foreign
bankruptcy, insolvency, administrative receivership or similar law now or hereafter in effect; (B) consents to the institution of,
or fails to contest in a timely and appropriate manner, any involuntary proceeding or petition described in the preceding subsection
(A); (C) applies for or consents to the appointment of a receiver, administrator, administrative receiver, trustee, custodian, sequestrator,
conservator or similar official with respect to the Purchaser or any Affiliate or for a substantial part of the Purchaser’s assets;
(D) makes a general assignment or arrangement for the benefit of creditors; or (E) takes any corporate action for the purpose
of authorizing any of the foregoing.

 

Section 8.2            Effect
of Termination. Upon termination of this Agreement pursuant to this Article VIII, this Agreement shall forthwith become void
and there shall be no further obligations or liabilities on the part of the Parties; provided, that, Section 2.3(b)(ii),
Section 5.9, Article VIII, Section 9.1, Section 9.3 through Section 9.11
(except as otherwise set forth therein) and Section 9.13 shall survive the termination of this Agreement; provided further
that nothing set forth in this Agreement shall relieve any Party from liability for any breach of this Agreement occurring prior
to such termination.

 

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Section 8.3            Second
Closing Abandonment. In the event that the Second Closing shall not have been consummated on or prior to 5:00 pm New York Time on July 30,
2021 or such later date, if any, as the Company and the Purchaser may mutually agree (the “Abandonment Date”), either
the Purchaser or the Company shall be entitled to deliver written notice (a “Second Closing Abandonment Notice”) to
the other specifying that the noticing party has elected not to proceed with the consummation of the Second Closing; provided,
however, that the right to deliver a Second Closing Abandonment Notice pursuant to this Section 8.3 shall not be available
to any Party whose breach of this Agreement is the primary cause of the failure of the Second Closing to occur on or prior to the Abandonment
Date. Upon delivery of a Second Closing Abandonment Notice, the obligation of each party to consummate the Second Closing shall terminate
and no party shall thereafter be required to take any action contemplated herein necessary to cause the Second Closing to occur (the
 “Second Closing Abandonment”). For the avoidance of doubt, (i) the occurrence of the Second Closing Abandonment
shall not limit any liability for a breach of this Agreement occurring prior to the Second Closing Abandonment and (ii) following
the Second Closing Abandonment, all other terms, conditions and indemnities set forth herein shall continue in full effect in accordance
with their terms.

 

Article IX

GENERAL PROVISIONS

 

Section 9.1            Notices.
All notices and other communications in connection with this Agreement shall be in writing and shall be deemed given if delivered personally,
sent via electronic mail (with confirmation), mailed by registered or certified mail (return receipt requested) or delivered by an express
courier (with confirmation) to the Parties at the following addresses (or at such other address for a Party as may be specified by like
notice):

 

(a)            If
to the Company:

 

Entasis Therapeutics Holdings Inc.

35 Gatehouse Drive

Waltham, MA 02451

Attn:        Elizabeth
Keiley

Tel:           (781)
870-0120

Email:       betzy.keiley@entasistx.com

 

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

 

Covington & Burling LLP

The New York Times Building 

620 Eighth Avenue New York, NY 10018

Attn:        Jack S. Bodner

                 Matthew
C. Franker

Tel:           (212) 841-1079

                 (202) 662-5895

Fax:          (646) 441-9079

                 (202) 778-5895

Email:       jbodner@cov.com

  mfranker@cov.com 

 

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(b)            If
to the Purchaser:

 

c/o Innoviva, Inc.

1350 Old Bayshore Highway Suite 400

Burlingame, CA 94010

Attention: Marianne Zhen

Email: Marianne.zhen@inva.com

 

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

 

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Attn: Russell Leaf

  Jared Fertman

Tel: (212) 728-8593

(212) 728-8670

Email: rleaf@willkie.com

     jfertman@willkie.com

 

Section 9.2            Assignment;
Third-Party Beneficiaries. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned
or transferred (in whole or in part) by any Party (whether by operation of law or otherwise) without the prior written consent of the
other Party; provided, that Purchaser shall be entitled to assign this Agreement in whole or in part to any of its Subsidiaries
or Affiliates. Any purported assignment or transfer in violation of this Section 9.2 shall be null and void ab initio.
This Agreement (including the documents and instruments referred to in this Agreement) is not intended to and does not confer upon
any Person any rights or remedies under this Agreement other than the Parties.

 

Section 9.3            Prior
Negotiations; Entire Agreement. This Agreement (including the agreements attached as Schedules and Exhibits to and the documents
and instruments referred to in this Agreement, including the Definitive Documents) constitute the entire agreement of the Parties and
supersede all prior agreements, arrangements or understandings, whether written or oral, among the Parties with respect to the subject
matter of this Agreement.

 

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Section 9.4            Governing
Law; Venue: Forum. THIS AGREEMENT (AND ANY CLAIMS OR CAUSE OF ACTION ARISING UNDER, OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER
IN CONTRACT, TORT OR STATUTE) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS
MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. Each of the Parties irrevocably
and unconditionally agrees that, subject to the immediately following sentence of this Section 9.4, any legal action, suit
or proceeding against it with respect to any matter arising under, out of or in connection with this Agreement or for recognition or
enforcement of any judgment rendered in any such action, suit or proceeding, may be brought in the Delaware Chancery Court (or, if the
Delaware Chancery Court shall be unavailable, then any federal court of the United States of America sitting in the State of Delaware),
and by execution and delivery of this Agreement, each of the Parties: (a) irrevocably submits itself to the nonexclusive jurisdiction
of such court, (b) waives any objection to laying venue in any such action, suit or proceeding and (c) waives any objection
that such court is an inconvenient forum or does not have jurisdiction over such Party.

 

Section 9.5            Waiver
of Jury Trial. EACH PARTY IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING UNDER, OUT OF OR IN CONNECTION
WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER IN CONTRACT, TORT OR STATUTE).

 

Section 9.6            Counterparts.
This Agreement may be executed in any number of counterparts, all of which will be considered one and the same agreement and will become
effective when counterparts have been signed by each of the Parties and delivered to each other Party (including via facsimile or other
electronic transmission), it being understood that each Party need not sign the same counterpart.

 

Section 9.7            Waivers
and Amendments; Rights Cumulative; Consent; Severability.

 

(a)            This
Agreement may be amended, restated, modified or changed only by a written instrument signed by the Company and the Purchaser.

 

(b)            Unless
otherwise expressly set forth herein, the terms and conditions of this Agreement may be waived (i) by the Company only by a written
instrument executed by the Company and (ii) by the Purchaser only by a written instrument executed by the Purchaser. No delay on
the part of any Party in exercising any right, power or privilege pursuant to this Agreement will operate as a waiver thereof, nor will
any waiver on the part of any Party of any right, power or privilege pursuant to this Agreement, nor will any single or partial exercise
of any right, power or privilege pursuant to this Agreement, preclude any other or further exercise thereof or the exercise of any other
right, power or privilege pursuant to this Agreement.

 

(c)            In
the event that any provision hereof would be invalid or unenforceable in any respect under applicable Law, such provision shall be construed
by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable Law.
The provisions hereof are severable, and in the event any provision hereof should be held invalid or unenforceable in any respect, it
shall not invalidate, render unenforceable or otherwise affect any other provision hereof.

 

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Section 9.8            Headings;
Interpretation. The headings in this Agreement are for reference purposes only and will not in any way affect the meaning or interpretation
of this Agreement. Each Party participated in the drafting of this Agreement and this Agreement shall be construed without regard to
any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument
to be drafted.

 

Section 9.9            Specific
Performance. It is understood and agreed by the Parties that irreparable damage would occur if any provision of this Agreement were not
performed in accordance with the terms hereof and that the Parties shall be entitled to an injunction or injunctions without the necessity
of posting a bond to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof,
in addition to any other remedy to which they are entitled at law or in equity. Unless otherwise expressly stated in this Agreement,
no right or remedy described or provided in this Agreement is intended to be exclusive or to preclude a Party from pursuing other rights
and remedies to the extent available under this Agreement, at law or in equity.

 

Section 9.10          Publicity.
The Company shall file a Current Report on Form 8-K with the SEC within the time required by the Exchange Act in form and substance
reasonably satisfactory to Purchaser. Within twenty-four (24) hours of the Closing Date, the Company shall issue a press release in a
form approved by Purchaser disclosing the material terms of the transactions contemplated hereby and by the other Definitive Documents.
The Company shall consult with the Purchaser in issuing any other press releases with respect to the transactions contemplated hereby,
and the Company shall not issue any such press release or otherwise make any such public statement without the prior consent of the Purchaser,
except if such disclosure is required by Law, in which case the Company shall promptly provide Purchaser with prior notice of such public
statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of Purchaser or include the
name of Purchaser in any filing with the SEC or any Governmental Entity, without the prior written consent of Purchaser, except to the
extent such disclosure is required by Law, in which case the Company shall provide the Purchaser with prior notice of such disclosure.

 

Section 9.11          No
Recourse. Notwithstanding anything that may be expressed or implied in this Agreement, each Party covenants, agrees and acknowledges
that no recourse under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against
any Party’s Affiliates, Related Parties or Representatives or any of such Party’s Affiliates’ or Related Parties’
Affiliates or Representatives in each case other than the Parties to this Agreement and each of their respective successors and permitted
assigns under this Agreement, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any
applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise
be incurred by any of the Related Parties or Representatives, as such, for any obligation or liability of any Party under this Agreement
or any documents or instruments delivered in connection herewith for any claim based on, in respect of or by reason of such obligations
or liabilities or their creation; provided, however, that nothing in this Section 9.11 shall relieve or otherwise
limit the liability of any Party hereto or any of their respective successors or permitted assigns for any breach or violation of its
obligations under this Agreement or such other documents or instruments, except as provided in Section 8.3(b) and Section 9.12.
For the avoidance of doubt, none of the Parties will have any recourse, be entitled to commence any proceeding or make any claim under
this Agreement or in connection with the transactions contemplated hereby except against any of the Parties or their respective successors
and permitted assigns, as applicable.

 

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Section 9.12          Limitation
of Liability. IN NO EVENT WILL EITHER PARTY, ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR AFFILIATES BE LIABLE TO THE OTHER PARTY
FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH, ARISING OUT OF, OR RELATED
TO, THIS AGREEMENT, EXCEPT TO THE EXTENT REASONABLY FORESEEABLE OR ACTUALLY PAID TO A THIRD PARTY.

 

Section 9.13          Further
Assurances. From and after the First Closing Date, upon the reasonable request of any Party hereto, any other Party hereto shall execute,
acknowledge, file and/or deliver all such additional instruments, agreements and other documents, and shall do (or cause to be done)
all such additional acts and things, that are necessary, proper, advisable or desirable to carry out, consummate and make effective any
of the transactions contemplated by this Agreement.

 

Section 9.14          Survival.
All covenants and other agreements contained in this Agreement which by their terms are to be performed following the Second Closing
shall survive the Second Closing until fully performed. The representations and warranties made in this Agreement shall survive as follows:
(a) the representations and warranties set forth in Section 3.1 (Organization and Qualification), Section 3.2
(Authorization; Enforcement Validity), Section 3.3 (Issuance of Securities), Section 3.6 (No
General Solicitation; Agents’ Fees), Section 3.13 (Transactions with Affiliates), Section 3.14
(Capitalization) and Section 3.37 (Specified Contract) (collectively, the “Fundamental Representations”)
shall survive indefinitely; (b) the representations and warranties in Section 3.19 (Employee Relations), Section 3.23
(Tax Status) and Section 3.29 (ERISA Compliance) shall survive until the expiration of the statute of limitations
plus thirty (30) days; and (c) all other representations and warranties shall survive until the twelve (12)-month anniversary of
the Second Closing. For the avoidance of doubt, in event of any breach of the representations and warranties or covenants contained herein,
the amount of any damages recoverable by Buyer shall include a gross-up to take into account Buyer’s and its Affiliates’
equity ownership in the Company such that, after payment of the grossed-up amount, Buyer will not have suffered any damages.

 

[Remainder of Page Intentionally Left
Blank]

 

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IN WITNESS WHEREOF, the undersigned
Parties have duly executed this Agreement as of the date first above written.

 

	 	Entasis Therapeutics Holdings Inc.

 

	 	By:	/s/ Michael Gutch, Ph.D.
	 	 	Name: Michael Gutch, Ph.D.
	 	 	Title:   Chief Financial and Business Officer

 

	 	INNOVIVA STRATEGIC OPPORTUNITIES LLC

 

	 	By:	Innoviva, Inc. (its managing member)

 

	 	By:	/s/
    Pavel Raifeld
	 	 	Name: Pavel Raifeld
	 	 	Title:   Chief Executive Officer

 

[Signature Page to Securities Purchase
Agreement]Exhibit 10.2

 

EXECUTION

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”)
is made and entered into as of May 3, 2021, by and between Entasis Therapeutics Holdings Inc., a Delaware corporation (the “Company”),
and Innoviva Strategic Opportunities LLC (the “Holder”). The Company and the Holder are referred to each as a “Party”
and collectively herein as the “Parties.” Capitalized terms used herein and not otherwise defined herein shall have
the respective meanings set forth in the Securities Purchase Agreement.

 

In consideration of the mutual covenants and agreements
set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each Party, the
Parties agree as follows:

 

1.            Definitions.
As used in this Agreement, the following terms shall have the respective meanings set forth in this Section 1:

 

“Affiliate” means, with respect
to any Person, any other Person, that directly or indirectly, Controls or is Controlled by or is under common Control with, such Person;
provided, however, that for purposes of this Agreement, the Holder shall not be deemed an Affiliate of the Company or any
of its Subsidiaries. “Affiliates” has a correlative meaning.

 

“Board” means the board of directors
of the Company.

 

“Business Day” means any day
that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to remain closed for the entirety of such
day in New York, New York.

 

“Chosen Courts” has the meaning
set forth in Section 7(d).

 

“Close of Business” means 5:00
p.m. Eastern Time.

 

“Commission” means the U.S.
Securities and Exchange Commission or any other federal agency then administering the Securities Act or Exchange Act.

 

“Company Common Stock” means
the shares of common stock, par value $0.001 per share, of the Company.

 

“Company Indemnified Persons”
has the meaning set forth in Section 5(a).

 

“Control” means, with respect
to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of such
Person, whether through the ownership of voting securities, by contract or otherwise. “Controlled” has a correlative meaning.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

“FINRA” means the Financial
Industry Regulatory Authority.

 

    

     

    

 

“Form S-1 Shelf” has the
meaning set forth in Section 2(a).

 

“Form S-3 Shelf” has the
meaning set forth in Section 2(a).

 

“Holder” has the meaning set
forth in the preamble.

 

“Holder Indemnified Persons”
has the meaning set forth in Section 5(b).

 

“Indemnified Persons” has the
meaning set forth in Section 5(b).

 

“Losses” has the meaning set
forth in Section 5(a).

 

“Parties” has the meaning set
forth in the preamble.

 

“Person” means any individual,
partnership, corporation, company, association, trust, limited liability company, organization, entity or division, or any government,
governmental department or agency or political subdivision thereof.

 

“Proceeding” means any action,
claim, suit, proceeding or investigation (including a preliminary investigation or partial proceeding, such as a deposition) pending or
known to the Company to be threatened.

 

“Prospectus” means the prospectus
included in a Registration Statement (including a prospectus that includes any information previously omitted from a prospectus filed
as part of an effective Registration Statement in reliance upon Rule 430A), all amendments and supplements to the Prospectus, including
post-effective amendments, all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Registrable Securities” means
(a) any Company Common Stock issued to the Holder pursuant to the Securities Purchase Agreement, (b) any Company Common Stock
issuable to the Holder upon exercise of warrants issued to the Holder pursuant to the Securities Purchase Agreement, (c) any securities
issued or issuable with respect to, on account of or in exchange for Company Common Stock described in clauses (a) and (b), whether
by stock split, stock dividend, recapitalization, merger, consolidation or other reorganization, charter amendment or otherwise, (d) any
warrants issued to the Holder pursuant to the Securities Purchase Agreement and (e) any options, warrants or other rights to acquire,
and any securities received as a dividend or distribution in respect of, any of the securities described in clauses (a), (b), (c) and
(d) above, in each case that are held by the Holder and its Affiliates or any transferee or assignee of the Holder or its Affiliates,
all of which securities are subject to the rights provided herein until such rights terminate pursuant to the provisions of this Agreement.
As to any particular Registrable Securities, such securities shall not be Registrable Securities when (i) a Registration Statement
registering such Registrable Securities under the Securities Act has been declared effective and such Registrable Securities have been
sold, transferred or otherwise disposed of by the Holder thereof pursuant to such effective Registration Statement, (ii) such Registrable
Securities are sold, transferred or otherwise disposed of pursuant to Rule 144, (iii) such securities cease to be outstanding
or (iv) such securities have become eligible for sale by the Holder pursuant to Rule 144 without any restriction on the volume
or manner of such sale and all restrictive legends and stop transfer instructions have been removed with respect to all book entries representing
the applicable Registrable Securities.

 

    2

     

    

 

“Registration Expenses” means
all expenses incurred by the Company in complying with this Agreement, including, without limitation, all registration, qualification
and filing fees, printing expenses, escrow fees, fees and expenses of counsel for the Company and one counsel for the Holder, blue sky
fees and expenses and the expense of any special audits incident to or required by any such registration.

 

“Registration Statement” means
a registration statement of the Company filed with or to be filed with the Commission under the Securities Act that covers the resale
of any of the Registrable Securities pursuant to the provisions of this Agreement, and including any Prospectus, amendments and supplements
to each such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

“Related Person” has the meaning
set forth in Section 7(m).

 

“Representatives” of the Holder
means its partners, shareholders, members, directors, officers, employees, agents, counsel, accountants, consultants, investment advisers
or other professionals or representatives, or its affiliates or wholly owned subsidiaries.

 

“Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same effect as such Rule.

 

“Rule 405” means Rule 405
promulgated by the Commission pursuant to the Securities Act, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same effect as such Rule.

 

“Rule 415” means Rule 415
promulgated by the Commission pursuant to the Securities Act, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same effect as such Rule.

 

“Rule 424” means Rule 424
promulgated by the Commission pursuant to the Securities Act, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same effect as such Rule.

 

“Rule 430A” means Rule 430A
promulgated by the Commission pursuant to the Securities Act, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same effect as such Rule.

 

“Seasoned Issuer” means an issuer
eligible to use Form S-3 under the Securities Act and who is not an “ineligible issuer” as defined in Rule 405.

 

“Securities Act” means the Securities
Act of 1933, as amended.

 

“Selling Expenses” means all
underwriting fees, discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and related
legal and other fees of the Holder not included within the definition of Registration Expenses.

 

    3

     

    

 

“Securities Purchase Agreement”
means that certain Securities Purchase Agreement, dated May 3, 2021, by and between the Company and the Holder, as may be amended,
restated, supplemented or otherwise modified from time to time.

 

“Shelf Period” has the meaning
set forth in Section 2(a).

 

“Shelf Registration” means the
registration of an offering of Registrable Securities on a Form S-1 Shelf or a Form S-3 Shelf, as applicable, on a delayed or
continuous basis under Rule 415, pursuant to Section 2(a).

 

“Shelf Registration Statement”
has the meaning set forth in Section 2(a).

 

“Subsidiary” means, when used
with respect to any Person, any corporation or other entity, whether incorporated or unincorporated, (a) of which such Person or
any other Subsidiary of such Person is a general partner (excluding partnerships, the general partnership interests of which held by such
Person or any Subsidiary of such Person do not have a majority of the voting interests in such partnership) or (b) at least a majority
of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the board of directors
or others performing similar functions with respect to such corporation or other entity is directly or indirectly owned or controlled
by such Person or by any one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries.

 

“Suspension Period” has the
meaning set forth in Section 2(b).

 

“Trading Market” means the principal
national securities exchange in the United States on which Registrable Securities are (or are to be) listed.

 

Unless the context requires otherwise: (a) any
pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms; (b) references to Sections, paragraphs
and clauses refer to Sections, paragraphs and clauses of this Agreement; (c) the terms “include,” “includes,”
 “including” or words of like import shall be deemed to be followed by the words “without limitation”; (d) the
terms “hereof,” “herein” or “hereunder” refer to this Agreement as a whole and not to any particular
provision of this Agreement; (e) unless the context otherwise requires, the term “or” is not exclusive and shall have
the inclusive meaning of “and/or”; (f) defined terms herein will apply equally to both the singular and plural forms
and derivative forms of defined terms will have correlative meanings; (g) references to any law or statute shall be deemed to refer
to such law or statute as amended or supplemented from time to time and shall include all rules and regulations and forms promulgated
thereunder, and references to any law, rule, form or statute shall be construed as including any legal and statutory provisions, rules or
forms consolidating, amending, succeeding or replacing the applicable law, rule, form or statute; (h) references to any Person include
such Person’s successors and permitted assigns; and (i) references to “days” are to calendar days unless otherwise
indicated. Each of the Parties hereto acknowledges that each Party was actively involved in the negotiation and drafting of this Agreement
and that no law or rule of construction shall be raised or used in which the provisions of this Agreement shall be construed in favor
or against any Party hereto because one is deemed to be the author thereof.

 

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2.            Registration.

 

(a)           Shelf
Registration. No later than ninety (90) days after the date hereof, the Company shall file a Registration Statement for a Shelf Registration
covering the resale of the Registrable Securities with the SEC for an offering to be made on a continuous basis pursuant to Rule 415,
or if Rule 415 is not available for offers and sales of the Registrable Securities, by such other means of distribution of Registrable
Securities as the Holder may reasonably specify (the “Initial Registration Statement”). The Initial Registration Statement
shall be on Form S-3 (or any successor to Form S-3) covering the resale of all of the Registrable Securities held by the Holder
(the “Form S-3 Shelf”), or if the Company is not a Seasoned Issuer at the time of filing, the Company shall file
a Registration Statement for a Shelf Registration on Form S-1 (or any successor to Form S-1) (the “Form S-1 Shelf”
and, together with the Form S-3 Shelf, the “Shelf Registration Statement”). Subject to the terms of this Agreement,
including any applicable Suspension Period, the Company shall cause the Shelf Registration Statement to be declared effective under the
Securities Act as promptly as possible after the filing thereof, but in any event (x) no later than the fifteenth (15th) day following
the filing of the Shelf Registration Statement in the event of no “review” by the Commission, (y) no later than the sixtieth
(60th) day following the filing of the Shelf Registration Statement in the event of “limited review” by the Commission, or
(z) in the event of a “full review” by the Commission, the one hundred and twentieth (120th) day following the filing
of the Shelf Registration Statement (the number of days in (x), (y) and (z) each being a “Review Period,”
depending on the nature of the Commission’s review, and provided, for any days during the period following the initial filing
of the Shelf Registration Statement and prior to the effectiveness of the Shelf Registration Statement that the Commission is unable to
review or declare effective registration statements filed with the Commission due to a shutdown or partial shutdown of the U.S. government
(such days, “Tolled Days”), the applicable number of days in such Review Period shall be extended by the number of
Tolled Days), and shall use its reasonable best efforts to keep such Shelf Registration Statement continuously effective under the Securities
Act until the date that all Registrable Securities covered by such Registration Statement are no longer Registrable Securities, including
(the period during which the Company shall use its reasonable best efforts to keep the Shelf Registration Statement continuously effective
under the Securities Act in accordance with this clause (i), the “Shelf Period”). The Company shall notify the Holder
by e-mail with electronic confirmation of the effectiveness of the Shelf Registration Statement as promptly as practicable, and in any
event within twenty-four (24) hours, after the Company telephonically or otherwise confirms effectiveness with the Commission. The Company
shall file a final Prospectus with the Commission to the extent required by Rule 424. The “Plan of Distribution” section
of such Shelf Registration Statement shall provide for all permitted means of disposition of Registrable Securities, including firm-commitment
underwritten public offerings, agented transactions, sales directly into the market, purchases or sales by brokers and sales not involving
a public offering. Notwithstanding anything to the contrary contained herein, in the event the Commission informs the Company that all
of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering
on a single registration statement, the Company agrees to promptly (A) inform the Holder, (B) file amendments to the Initial
Registration Statement as required by the Commission and/or (C) withdraw the Initial Registration Statement and file a new Registration
Statement (a “New Registration Statement”), in either case covering the maximum number of Registrable Securities permitted
to be registered by the Commission, on Form S-3 or, if the Company is ineligible to register for resale the Registrable Securities
on Form S-3, such other form available to register for resale the Registrable Securities as a secondary offering; provided,
however, that prior to filing such amendment or New Registration Statement, the Company shall be obligated to use its reasonable
efforts to advocate with the Commission for the registration of all of the Registrable Securities. In the event the Company amends the
Initial Registration Statement or files a New Registration Statement, as the case may be, under clauses (B) or (C) above, the
Company will use its reasonable efforts to file with the Commission, as promptly as allowed by the Commission, one or more Registration
Statements on Form S-3 or, if the Company is ineligible to register for resale the Registrable Securities on Form S-3, such
other form available to register for resale those Registrable Securities that were not registered for resale on the Initial Registration
Statement, as amended, or the New Registration Statement (the “Remainder Registration Statements”).

 

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(b)            Suspension
Period. Notwithstanding any other provision of this Section 2, the Company shall have the right, but not the obligation,
to defer the filing of (but not the preparation of), or suspend the use by the Holder of, any Registration Statement for the shortest
period possible, in no event to exceed thirty (30) days (i) upon issuance by the Commission of a stop order suspending the effectiveness
of such Registration Statement with respect to Registrable Securities or the initiation of proceedings with respect to such Registration
Statement under Section 9(d) or 8(e) of the Securities Act; or (ii) if the Company believes in good faith that any
such registration or offering would require the Company (after consultation with external legal counsel), under applicable securities
laws and other laws, to make disclosure of material nonpublic information that would not otherwise be required to be disclosed at that
time that would be materially adverse to the Company (any such period, a “Suspension Period”); provided, that
in no event shall the Company declare Suspension Periods lasting more than 60 days in the aggregate in any twelve (12) month period. The
Company shall (i) give prompt written notice to the Holder of its declaration of a Suspension Period and of the expiration or termination
of the relevant Suspension Period and (ii) promptly resume the process of filing or requesting for effectiveness, or update the suspended
Registration Statement, as the case may be, as may be necessary to permit the Holder to offer and sell its Registrable Securities in accordance
with applicable law.

 

(c)            Required
Information. The Company may require the Holder of Registrable Securities as to which any Registration Statement is being filed or
sale is being effected to furnish to the Company such information regarding the intended method of distribution of such securities and
such other information relating to the Holder and its ownership of Registrable Securities as the Company may from time to time reasonably
request in writing (provided that such information shall be used only in connection with such registration). The Holder agrees
to furnish such information to the Company and to cooperate with the Company as reasonably necessary to enable the Company to comply with
the provisions of this Agreement.

 

(d)            Cessation
of Registration Rights. All registration rights granted under this Section 2 shall continue to be applicable with respect
to the Holder until the Holder no longer holds any Registrable Securities.

 

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3.            Registration
Procedures. The procedures to be followed by the Company and the Holder to register the sale
of Registrable Securities pursuant to a Registration Statement in accordance with this Agreement, and the respective rights and obligations
of the Company and the Holder with respect to the preparation, filing and effectiveness of such Registration Statement, are as follows:

 

(a)           The
Company shall (i) prepare and file a Registration Statement with the Commission (within the time period specified in Section 2(a))
which Registration Statement (A) shall be on a form required by this Agreement (or if not so required, selected by the Company) for
which the Company qualifies, (B) shall be available for the sale of the Registrable Securities in accordance with the intended method
or methods of distribution, and (C) shall comply as to form in all material respects with the requirements of the applicable form
and include and/or incorporate by reference all financial statements required by the Commission to be filed therewith, (ii) use its
reasonable best efforts to cause such Registration Statement to become effective and remain effective for the period provided under Section 2(a),
(iii) use its reasonable best efforts to prevent the occurrence of any event that would cause a Registration Statement to contain
a material misstatement or omission or to be not effective and usable for resale of the Registrable Securities registered pursuant thereto
(during the period that such Registration Statement is required to be effective as provided under Section 2(a)), and (iv) cause
each Registration Statement and the related Prospectus and any amendment or supplement thereto, as of the effective date of such Registration
Statement, amendment or supplement, (x) to comply in all material respects with any requirements of the Securities Act and the rules and
regulations of the Commission and (y) not to contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading (provided, however, the Company shall have
no liability for any information furnished in writing by or on behalf of the Holder to the Company specifically for inclusion in (including
by incorporation by reference) any such Registration Statement that has not been corrected in a subsequent writing to the Company prior
to the filing or other disclosure of such information). The Company will, (1) at least three (3) Business Days prior to the
anticipated filing of a Registration Statement or any related Prospectus or any amendment or supplement thereto (including any documents
incorporated by reference therein), furnish to the Holder and its counsel copies of all such documents proposed to be filed and make such
representatives of the Company as shall be reasonably requested by the Holder available for discussion of such documents, (2) use
its reasonable best efforts to address in each such document prior to being so filed with the Commission such comments as the Holder or
its counsel reasonably shall propose within two (2) Business Days of receipt of such copies by the Holder and (3) not file any
Registration Statement or any related Prospectus or any amendment or supplement thereto containing information regarding the Holder to
which the Holder objects, unless such information is required to comply with any applicable law or regulation.

 

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(b)            The
Company will as promptly as reasonably practicable (i) prepare and file with the Commission such amendments, including post-effective
amendments, and supplements to each Registration Statement and the Prospectus used in connection therewith as (A) may be reasonably
requested by the Holder of Registrable Securities covered by such Registration Statement necessary to permit the Holder to sell in accordance
with its intended method of distribution, including as may be required in connection with any underwritten distribution of Registrable
Securities or (B) may be necessary under applicable law to keep such Registration Statement continuously effective with respect to
the disposition of all Registrable Securities covered thereby for the period provided under Section 2(a) in accordance
with the intended method of distribution and, subject to the limitations contained in this Agreement, prepare and file with the Commission
such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities held
by the Holder, (ii) cause the related Prospectus to be amended or supplemented by any required prospectus supplement, and as so supplemented
or amended, to be filed pursuant to Rule 424, (iii) respond to any comments received from the Commission with respect to each
Registration Statement or Prospectus or any amendment thereto, (iv) as promptly as reasonably practicable, provide the Holder true
and complete copies of all correspondence from and to the Commission relating to such Registration Statement or Prospectus other than
any comments that the Company determines in good faith would result in the disclosure to the Holder of material non-public information
concerning the Company that is not already in the possession of the Holder and (v) enter into such customary agreements (including,
as applicable, underwriting agreements in customary form) and take all such other actions as the Holder the underwriters, if any, reasonably
request in order to expedite or facilitate the disposition of Registrable Securities under such Registration Statement or Prospectus and
otherwise to facilitate, cooperate with and participate in each proposed offering contemplated herein and customary selling efforts related
thereto. The Company will comply in all material respects with the provisions of the Securities Act and the Exchange Act (including Regulation
M under the Exchange Act) with respect to each Registration Statement and the disposition of all Registrable Securities covered by each
Registration Statement.

 

(c)            The
Company will notify the Holder as promptly as practicable: (i)(A) when a Registration Statement, any pre-effective amendment, any
Prospectus or any prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed; (B) when
the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission
comments on such Registration Statement (in which case the Company shall provide true and complete copies thereof and all written responses
thereto to the Holder and its counsel, other than information which the Company determines in good faith would constitute material non-public
information that is not already in the possession of the Holder); and (C) with respect to each Registration Statement or any post-effective
amendment thereto, when the same has been declared effective; (ii) of any request by the Commission or any other federal or state
governmental or regulatory authority for amendments or supplements to a Registration Statement or Prospectus or for additional information
(whether before or after the effective date of the Registration Statement) or any other correspondence with the Commission or any such
authority relating to, or which may affect, the Registration Statement; (iii) of the issuance by the Commission or any other governmental
or regulatory authority of any stop order, injunction or other order or requirement suspending the effectiveness of a Registration Statement
covering any or all of the Registrable Securities or preventing or suspending the use of any Prospectus or the initiation or threatening
of any Proceedings for such purpose; (iv) of 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 Securities for sale in any jurisdiction, or the initiation or
threatening of any Proceeding for such purpose; or (v) of the occurrence of any event that makes any statement made in such Registration
Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect
or if, as a result of such event or the passage of time, such Registration Statement, Prospectus or other documents requires revisions
so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein (in the case
of the Prospectus, in light of the circumstances under which they were made) not misleading, or if, for any other reason, it shall be
necessary during such time period to amend or supplement such Registration Statement or Prospectus in order to comply with the Securities
Act, which shall correct such misstatement or omission or effect such compliance.

 

    8

     

    

 

(d)            The
Company will use its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any stop order
or other order suspending the effectiveness of a Registration Statement, or preventing or suspending the use of any Prospectus, or (ii) any
suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, as
promptly as practicable, or if any such order or suspension is made effective during any Suspension Period, as promptly as practicable
after the Suspension Period is over.

 

(e)            During
the Shelf Period, upon request of the Holder and without charge, the Company shall furnish to the Holder and its counsel, (i) promptly
after the same is prepared and filed with the SEC, at least one copy of the Registration Statement and any amendment(s) thereto,
including all documents incorporated therein by reference and all exhibits to the extent requested by the Holder or its counsel, (ii) upon
the effectiveness of any amendment(s) to a Registration Statement, a copy of the prospectus included in such Registration Statement
and all amendments and supplements thereto (or such other number of copies as the Holder may reasonably request) and (iii) such other
documents, including copies of any preliminary or final prospectus, as the Holder may reasonably request from time to time in order to
facilitate the disposition of the Registrable Securities owned by the Holder.

 

(f)            The
Company will promptly deliver to the Holder and its counsel as many copies of each Prospectus or Prospectuses (including each form of
prospectus) and each amendment or supplement thereto as the Holder or its counsel may reasonably request in order to facilitate the disposition
of the Registrable Securities by the Holder. The Company hereby consents to the use of such Prospectus and each amendment or supplement
thereto by the Holder in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment
or supplement thereto, so long as the same are used in compliance with the Securities Act and all other applicable laws and regulations.

 

(g)            To
the extent that the Company has certificated shares of Company Common Stock, the Company will cooperate with the Holder to facilitate
the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to a
Registration Statement, which certificates shall be free of all restrictive legends indicating that the Registrable Securities are unregistered
or unqualified for resale under the Securities Act, Exchange Act or other applicable securities laws, and to enable such Registrable Securities
to be in such denominations and registered in such names as the Holder may request in writing. In connection therewith, if required by
the Company’s transfer agent, the Company will promptly, after the effective date of the Registration Statement, cause an opinion
of counsel as to the effectiveness of the Registration Statement to be delivered to and maintained with such transfer agent, together
with any other authorizations, certificates and directions required by the transfer agent which authorize and direct the transfer agent
to issue such Registrable Securities without any such legend upon sale by the Holder of such Registrable Securities pursuant to the Registration
Statement.

 

    9

     

    

 

(h)           Upon
the occurrence of any event contemplated by Section 3(d)(v), as promptly as practicable, the Company will prepare a supplement
or amendment, including a post-effective amendment, if required by applicable law, to the affected Registration Statement or a supplement
to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus,
in light of the circumstances under which they were made) not misleading, such that the Holder can resume disposition of such Registrable
Securities covered by such Registration Statement or Prospectus.

 

(i)            The
Company will comply with all applicable rules and regulations of the Commission, the Trading Market and FINRA.

 

(j)            The
Holder agrees by its acquisition of Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event
of the kind described in clauses (ii) through (v) of Section 3(d) or the occurrence of a Suspension Period,
the Holder will forthwith discontinue disposition of such Registrable Securities under the applicable Registration Statement until the
Holder’s receipt of the copies of the supplemental Prospectus or amended Registration Statement or until it is advised in writing
by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. In
the event the Company shall give any such notice, the period during which the applicable Registration Statement is required to be maintained
effective shall be extended by the number of days during the period from and including the date of the giving of such notice to and including
the date when the Holder either receives the copies of the supplemented Prospectus or amended Registration Statement or is advised in
writing by the Company that the use of the Prospectus may be resumed.

 

(k)           If
such Registrable Securities are to be sold by any method or in any transaction other than on a national securities exchange or in the
over-the-counter market, in privately negotiated transactions, or in a combination of such methods, the Holder shall notify the Company
at least five (5) Business Days prior to the date on which the Holder first offers to sell any such Registrable Securities.

 

4.            Registration
Expenses. All Registration Expenses incurred in connection with any registration, qualification,
exemption or compliance pursuant to Section 2.1(a) hereof shall be borne by the Company.

 

    10

     

    

 

5.            Indemnification.

 

(a)          To
the fullest extent permitted by law, the Company shall indemnify and hold harmless the Holder, its partners, stockholders, equity holders,
general partners, managers, members and Affiliates and each of their respective officers and directors and any Person who controls the
Holder (within the meaning of the Securities Act or the Exchange Act) and any employee or Representative thereof (each, a “Company
Indemnified Person” and collectively, “Company Indemnified Persons”), from and against any and all losses,
claims, damages, liabilities, joint or several, costs (including reasonable costs of preparation and reasonable attorneys’, accountants’
and experts’ fees) and expenses, judgments, fines, penalties, interest, settlements or other amounts arising from any claims, demands,
actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which any Company Indemnified Person may be
involved, or is threatened to be involved, as a party or otherwise, under the Securities Act, the Exchange Act or otherwise (collectively,
 “Losses”), as incurred, arising out of, based upon, resulting from or relating to (i) any untrue or alleged untrue
statement of a material fact contained in any Registration Statement under which any Registrable Securities were registered, Prospectus
(including in any preliminary prospectus (if used prior to the effective date of such Registration Statement)), or in any summary or final
prospectus or in any amendment or supplement thereto or in any documents incorporated or deemed incorporated by reference in any of the
foregoing or (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements made therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading,
or (iii) any violation or alleged violation by the Company or any of its Subsidiaries of the Securities Act, the Exchange Act, any
state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any federal, state, foreign
or common law rule or regulation in connection with such Registration Statement, disclosure document or related document or report
or any offering covered by such Registration Statement, and the Company shall reimburse such Company Indemnified Person for any reasonable
legal or other expenses reasonably incurred by it in connection with investigating or defending any such Loss, claim, damage, liability,
demand, action, suit or proceeding (the matters in the foregoing clauses (i) through (iii) being, collectively, “Company
Violations”). Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 5(a):
(A) shall not apply to a Loss by a Company Indemnified Person arising out of or based upon a Company Violation which occurs in reliance
upon and in conformity with information furnished in writing to the Company by the Holder or such Company Indemnified Person expressly
for use in connection with the preparation of such Registration Statement, such preliminary, summary or final prospectus or such amendment
or supplement, or other disclosure document; (B) with respect to any superseded prospectus, shall not inure to the benefit of any
such person from whom the person asserting any such Loss purchased the Registrable Securities that are the subject thereof (or to the
benefit of any other Company Indemnified Person) if the untrue statement or omission of material fact contained in the superseded prospectus
was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available by the
Company pursuant to Section 3(f), and the Company Indemnified Person was promptly advised in writing not to use the incorrect prospectus
prior to the use giving rise to a violation; (C) shall not be available to the extent such Loss is based on a failure of the Holder
to deliver, or to cause to be delivered, the prospectus made available by the Company, if such prospectus was theretofore made available
by the Company pursuant to Section 3(f); and (D) shall not apply to amounts paid in settlement of any Loss if such settlement
is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed.

 

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(b)            In
connection with any Registration Statement filed by the Company pursuant to Section 2(a) hereof in which the Holder has
registered for sale its Registrable Securities, the Holder agrees to indemnify and hold harmless, to the fullest extent permitted by law,
the Company, its directors and officers, employees, agents and each Person who controls the Company (within the meaning of the Securities
Act or the Exchange Act) (collectively, “Holder Indemnified Persons,” and together with the Company Indemnified Persons,
each an “Indemnified Person,” and collectively, the “Indemnified Persons”) from and against any
Losses resulting from (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement under
which such Registrable Securities were registered or sold under the Securities Act, Prospectus (including in any preliminary prospectus
(if used prior to the effective date of such Registration Statement)), or in any summary or final prospectus or in any amendment or supplement
thereto or in any documents incorporated by reference in any of the foregoing, (ii) any omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in light of
the circumstances under which they were made) not misleading, or (iii) any violation or alleged violation by the Holder of any federal,
state or common law rule or regulation relating to action or inaction in connection with any information provided by the Holder in
such registration, disclosure document or related document or report in the case of clauses (i) and (ii) to the extent, but
only to the extent, that such untrue statement or omission occurs in reliance upon and in conformity with any information furnished in
writing by or on behalf of the Holder specifically for inclusion in such registration, disclosure document or related document or report
and has not been corrected in a subsequent writing prior to the sale of the Registrable Securities thereunder, and the Holder will reimburse
the Company for any legal or other expenses reasonably incurred by it in connection with investigating or defending such Losses. In no
event shall the liability of the Holder hereunder be greater in amount than the dollar amount of the net proceeds (after deducting the
underwriters’ discounts and commissions) received by the Holder under the sale of Registrable Securities giving rise to such indemnification
obligation.

 

(c)            Any
Indemnified Person under paragraph (a) or (b) of this Section 5 shall (i) give prompt written notice to the
indemnifying person under paragraph (a) or (b) of this Section 5 of any claim with respect to which it seeks indemnification
(provided that any delay or failure to so notify the indemnifying person shall not relieve the indemnifying party of its obligations
hereunder except to the extent, if at all, that the indemnifying person’s ability to defend such claim (through the forfeiture of
substantive rights or defenses) is actually and materially prejudiced by reason of such delay or failure) and (ii) permit such indemnifying
person to assume the defense of such claim with counsel reasonably satisfactory to the Indemnified Person; provided, however,
that any Indemnified Person shall have the right to select and employ separate counsel and to participate in the defense of such claim,
but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (A) the indemnifying person has
agreed in writing to pay such fees or expenses, (B) the Indemnified Person has reasonably concluded (based upon advice of its counsel)
that there may be legal defenses available to it or other Indemnified Persons that are different from or in addition to those available
to the indemnifying person, or (C) in the reasonable judgment of any such Indemnified Person (based upon advice of its counsel) a
conflict of interest may exist between such Indemnified Person and the indemnifying person with respect to such claims (in which case,
if the Indemnified Person notifies the indemnifying person in writing that such Indemnified Person elects to employ separate counsel at
the expense of the indemnifying person, the indemnifying person shall not have the right to assume the defense of such claim on behalf
of such Indemnified Person). If any action is settled or if there be a final judgment for the plaintiff, the indemnifying person agrees
to indemnify each Indemnified Person from and against any Losses by reason of such settlement or judgment. No action may be settled without
the written consent of the Indemnified Person, provided that the consent of the Indemnified Person shall not be required if (x) such
settlement includes an unconditional release of such Indemnified Person in form and substance satisfactory to such Indemnified Person
from all liability on the claims that are the subject matter of such settlement; (y) such settlement provides solely for the payment
by the indemnifying person of money as the sole relief for such action and (z) such settlement does not include any statement as
to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person. It is understood that the indemnifying
person or persons shall not, except as specifically set forth in this Section 5(c), in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements or other charges of more than one separate firm
(in addition to any local counsel that is required to effectively defend against any such proceeding) for all Indemnified Persons and
that all such fees and expenses shall be paid or reimbursed promptly.

 

    12

     

    

 

(d)            If
the indemnification provided for in this Section 5 is held by a court of a competent jurisdiction to be unavailable to an
Indemnified Person with respect to any loss, damage, claim or liability, the indemnifying party, in lieu of indemnifying such Indemnified
Person thereunder, shall to the extent permitted by law, contribute to the amount paid or payable by such Indemnified Person as a result
of such loss, damage, claim or liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party
on the one hand and of the Indemnified Person on the other in connection with the actions that resulted in such loss, claim, damage or
liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying person and of the Indemnified
Person shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission to state a material fact relates to information supplied by the indemnifying person or Indemnified Person
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
The Parties agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined
by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in
the immediately preceding sentences. Notwithstanding the provisions of this Section 5(d), the Holder shall not be required
to contribute any amount in excess of the net proceeds (after deducting the underwriters’ discounts and commissions) received by
the Holder under the sale of Registrable Securities giving rise to such indemnification obligation. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty
of such fraudulent misrepresentation.

 

(e)            The
remedies provided for in this Section 5 are not exclusive and shall not limit any rights or remedies which may otherwise be
available to any Indemnified Person at law or in equity. The obligations of the Company and the Holder under this Section 5
shall survive completion of any offering of Registrable Securities pursuant to a Registration Statement and the termination of this Agreement.

 

    13

     

    

 

6.            Facilitation
of Sales Pursuant to Rule 144. The Company shall timely file the reports required to
be filed by it under the Exchange Act or the Securities Act and the rules adopted by the Commission thereunder (including the reports
under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144), all to the extent required
from time to time to enable the Holder to sell Registrable Securities without registration under the Securities Act within the limitations
of the exemption provided by Rule 144. Upon the written request of the Holder in connection with that Holder’s sale pursuant
to Rule 144, the Company shall deliver to the Holder a written statement as to whether it has complied with such requirements.

 

7.            Registration
Rights Covenant. The Company covenants that it will not, and it will cause its Subsidiaries
not to, grant any right of registration under the Securities Act to any Person other than pursuant to this Agreement, unless the rights
so granted to another Person do not limit or restrict the rights of the Holder hereunder.

 

8.            Miscellaneous.

 

(a)           Remedies.
In the event of a breach by the Company or the Holder of any of its obligations under this Agreement, any Party, in addition to being
entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance
of its rights under this Agreement. The Parties agree that monetary damages would not provide adequate compensation for any losses incurred
by reason of a breach by the Company of any of the provisions of this Agreement and further agree that, in the event of any action for
specific performance in respect of such breach, the Company shall waive the defense that a remedy at law would be adequate and shall waive
any requirement for the posting of a bond. No failure or delay by any Person in exercising any right, power or privilege hereunder shall
operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

 

(b)           Amendment;
Modification; Waivers. This Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed
by the Company and the Holder, which writing shall specifically reference this Agreement, specify the provision(s) hereof that it
is intended to amend or waive and further specify that it is intended to amend or waive such provision(s).

 

(c)           Notices.
All notices and other communications in connection with this Agreement shall be in writing and shall be deemed given if delivered personally,
sent via electronic mail (with confirmation), mailed by registered or certified mail (return receipt requested) or delivered by an express
courier (with confirmation) to the Parties at the following addresses (or at such other address for a Party as may be specified by like
notice):

 

    14

     

    

 

If to the Company:

 

Entasis Therapeutics Holdings Inc.

35 Gatehouse Drive

Waltham, MA 02451

Attn:     Elizabeth
Keiley

Tel:       (781)
870-0120

Email:    betzy.keiley@entasistx.com

 

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

 

Covington & Burling LLP

The New York Times Building

620 Eighth Avenue

New York, NY 10018

Attn:    Jack
S. Bodner

                Matthew C. Franker

Tel:      (212)
841-1079

               (202) 662-5895

Fax:     (646)
441-9079

      (202) 778-5895

Email:  jbodner@cov.com

               mfranker@cov.com

 

If to the Holder:

 

c/o Innoviva, Inc.

1350
Old Bayshore Highway Suite 400

Burlingame, CA 94010

Attention: Marianne Zhen

Email: Marianne.zhen@inva.com

 

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

 

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Attn: Russell Leaf

  Jared Fertman

Tel: (212) 728-8593

(212) 728-8670

Email: rleaf@willkie.com

    jfertman@willkie.com

 

(d)            Governing
Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with, the laws of the State
of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws. In any action or proceeding
between any of the parties arising out of or relating to this Agreement, each of the parties: (a) irrevocably and unconditionally
consents and submits to the exclusive jurisdiction and venue of the Delaware Chancery Court or, to the extent such court does not have
subject matter jurisdiction, the United States District Court sitting in the State of Delaware; (b) agrees that all claims in respect
of such action or proceeding shall be heard and determined exclusively in accordance with clause (a) of this Section 7(d);
(c) waives any objection to laying venue in any such action or proceeding in such courts; (d) waives any objection that such
courts are an inconvenient forum or do not have jurisdiction over any party hereto; and (e) irrevocably and unconditionally waives
the right to trial by jury.

 

    15

     

    

 

(e)            Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, executors,
administrators, successors, legal representatives and permitted assigns. The Holder may not assign its rights under this Agreement without
the prior written consent of the Company.

 

(f)            Waiver
of Venue. The Parties irrevocably and unconditionally waive, to the fullest extent permitted by applicable law, (i) any objection
that they may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement in
any court referred to in Section 7(d) and (ii) the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court.

 

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

 

(h)            Severability.
The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision hereof shall not affect
the validity or enforceability of any other provision. Whenever possible, each provision or portion of any provision of this Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement, or the
application thereof to any Person or any circumstance, is invalid or unenforceable, (i) a suitable and equitable provision shall
be substituted therefor to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable
provision and (ii) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall
not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability
of such provision, or the application thereof, in any other jurisdiction; provided, that, if any one or more of the provisions
contained in this Agreement shall be determined to be excessively broad as to activity, subject, duration or geographic scope, it shall
be reformed by limiting and reducing it to the minimum extent necessary, so as to be enforceable under applicable law.

 

    16

     

    

 

(i)            Business
Days. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be
a day other than a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

(j)            Entire
Agreement. This Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes
all prior contracts or agreements with respect to the subject matter hereof and supersedes any and all prior or contemporaneous discussions,
agreements and understandings, whether oral or written, that may have been made or entered into by or among any of the Parties or any
of their respective Affiliates relating to the transactions contemplated hereby.

 

(k)           Execution
of Agreement. This Agreement may be executed and delivered (by facsimile, by electronic mail in Adobe Portable Document Format (.pdf)
or otherwise) in any number of counterparts, each of which, when executed and delivered, shall be deemed an original, and all of which
together shall constitute the same agreement.

 

(l)           Determination
of Ownership. In determining ownership of Company Common Stock hereunder for any purpose, the Company may rely solely on the records
of the transfer agent for the Company Common Stock from time to time, or, if no such transfer agent exists, the Company’s stock
ledger.

 

(m)          No
Recourse. Notwithstanding anything that may be expressed or implied in this Agreement, each Party covenants, agrees and acknowledges
that no recourse under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against
any of the Company’s or the Holder’s former, current or future direct or indirect equity holders, controlling persons, stockholders,
directors, officers, employees, agents, Affiliates, members, financing sources, managers, general or limited partners or assignees (each,
a “Related Person” and collectively, the “Related Persons”), in each case other than the Company,
the Holder or any of their respective permitted assigns under this Agreement, whether by the enforcement of any assessment or by any legal
or equitable proceeding, or by virtue of any applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever
shall attach to, be imposed on or otherwise be incurred by any of the Related Persons, as such, for any obligation or liability of the
Company or the Holder under this Agreement or any documents or instruments delivered in connection herewith for any claim based on, in
respect of or by reason of such obligations or liabilities or their creation; provided, however, nothing in this Section 7(m) shall
relieve or otherwise limit the liability of the Company or the Holder, as such, for any breach or violation of its obligations under this
Agreement or such agreements, documents or instruments. For the avoidance of doubt, none of the Parties will have any recourse, be entitled
to commence any proceeding or make any claim under this Agreement or in connection with the transactions contemplated hereby except against
any of the Parties or their respective successors and permitted assigns, as applicable.

 

(n)            Third-Party
Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer upon any Person other than a Party and its successors
and permitted assigns any rights, benefits or remedies of any nature whatsoever.

 

    17

     

    

 

(o)            Headings;
Section References; Signatories. All heading references contained in this Agreement are for convenience purposes only and shall
not be deemed to limit or affect any of the provisions of this Agreement.

 

[Signature Pages Follow]

 

    18

     

    

 

IN WITNESS WHEREOF, the undersigned Parties have
executed this Agreement as of the date first written above.

 

	 	ENTASIS THERAPEUTICS HOLDINGS INC.
	 	 
	 	 
	 	By:	/s/ Michael Gutch, Ph.D.
	 	Name: 	Michael Gutch, Ph.D.
	 	Title: 	Chief Financial and Business Officer

 

	 	
    INNOVIVA STRATEGIC OPPORTUNITIES LLC

    

    

	 	 
	 	By: Innoviva, Inc. (its managing member)
	 	 
	 	 
	 	By:	/s/ Pavel Raifeld
	 	Name: 	Pavel Raifeld
	 	Title: 	Chief Executive Officer

 

[Signature Page to Registration Rights
Agreement]

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