Document:

Exhibit 4.4

		
			Exhibit 4.4
		

		
			﻿
		

		
			Description of Common Stock
		

		
			General.    Lake Shore Bancorp, Inc. is authorized to issue 25,000,000 shares of common stock having a par value of $0.01 per share.  Each share of Lake Shore Bancorp, Inc.’s common stock has the same relative rights as, and is identical in all respects with, each other share of common stock. As of December 31, 2019, Lake Shore Bancorp, Inc. had 5,924,339 shares of common stock outstanding.  Presented below is a description of the features of Lake Shore Bancorp, Inc.’s common stock.
		

		
			Dividends.  Lake Shore Bancorp, Inc. can pay dividends if, as and when declared by its board of directors, subject to compliance with limitations which are imposed by law.  The holders of common stock of Lake Shore Bancorp, Inc. will be entitled to receive and share equally in such dividends as may be declared by the board of directors of Lake Shore Bancorp, Inc. out of funds legally available therefor.  The Federal Reserve Board has issued a policy statement regarding the payment of dividends by holding companies.  In general, the policy provides that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the holding company appears consistent with the organization’s capital needs, asset quality and overall supervisory financial condition.  Separate regulatory guidance provides for prior consultation with Federal Reserve Bank staff concerning dividends in certain circumstances such as where the company’s net income for the past four quarters, net of dividends previously paid over that period, is insufficient to fully fund the dividend or the company’s overall rate or earnings retention is inconsistent with the company’s capital needs and overall financial condition.  The ability of a savings and loan holding company to pay dividends may be restricted if a subsidiary savings association becomes undercapitalized.  
		

		
			The Dodd-Frank Act requires federally-chartered mutual holding companies to give the Federal Reserve Board notice before waiving the receipt of dividends, and provides that in the case of “grandfathered” mutual holding companies, like Lake Shore, MHC, the Federal Reserve Board “may not object” to a dividend waiver if the board of directors of the mutual holding company waiving dividends determines that the waiver: (i) would not be detrimental to the safe and sound operation of the subsidiary savings bank; and (ii) is consistent with the board’s fiduciary duties to members of the mutual holding company.  To qualify as a grandfathered mutual holding company, a mutual holding company must have been formed, issued stock and waived dividends prior to December 1, 2009.  Lake Shore, MHC qualifies as a grandfathered mutual holding company.  The Dodd-Frank Act further provides that the Federal Reserve Board may not consider waived dividends in determining an appropriate exchange ratio upon the conversion of a grandfathered mutual holding company to stock form.  The Federal Reserve Board has issued an interim final rule that also requires, as a condition to waiving dividends, that each mutual holding company obtain the approval of a majority of the eligible votes of its members within 12 months prior to the declaration of the dividend being waived.  Lake Shore, MHC solicits its members (depositors of Lake Shore Savings Bank) each year to vote on the proposal to waive the MHC’s receipt of quarterly cash dividends to be declared by Lake Shore Bancorp, Inc. for the following four quarters and requests the Federal Reserve Board’s non-objection. It is expected that Lake Shore, MHC will continue to waive future dividends, except to the extent dividends are needed to fund Lake Shore, MHC’s continuing operations, subject to the ability of Lake Shore, MHC to obtain regulatory approval of its requests to waive dividends and its ability to obtain future member approval of dividend waivers. 
		

		
			Pursuant to our charter, Lake Shore Bancorp, Inc. is authorized to issue preferred stock.  If Lake Shore Bancorp, Inc. issues preferred stock, the holders thereof may have a priority over the holders of the common stock with respect to dividends.
		

		

		

		 

		

			

		

 

		Voting Rights.    The holders of common stock of Lake Shore Bancorp, Inc. possess exclusive voting rights in Lake Shore Bancorp, Inc. Each holder of common stock is entitled to one vote per share and does not have any right to cumulate votes in the election of directors.  If Lake Shore Bancorp, Inc. issues preferred stock, holders of the preferred stock may also possess voting rights.
		

		
			Liquidation.  In the event of any liquidation, dissolution or winding up of Lake Shore Savings Bank,  Lake Shore Bancorp, Inc., as holder of Lake Shore Savings Bank’s capital stock, would be entitled to receive, after payment or provision for payment of all debts and liabilities of Lake Shore Savings Bank, including all deposit accounts and accrued interest thereon, all assets of Lake Shore Savings Bank available for distribution.  In the event of liquidation, dissolution or winding up of Lake Shore Bancorp, Inc., the holders of its common stock would be entitled to receive, after payment or provision for payment of all its debts and liabilities, all of the assets of Lake Shore Bancorp, Inc. available for distribution. If preferred stock is issued, the holders thereof may have a priority over the holders of the common stock in the event of liquidation or dissolution.
		

		
			Rights to Buy Additional Shares.  Holders of the common stock of Lake Shore Bancorp, Inc. are not entitled to preemptive rights.  Preemptive rights are the priority right to buy additional shares if Lake Shore Bancorp, Inc. issues more shares in the future.  The common stock is not subject to redemption.
		

		
			Restrictions on the Acquisition of Lake Shore Bancorp, Inc.
		

		
			The principal federal regulatory restrictions which affect the ability of any person, firm or entity to acquire Lake Shore Bancorp, Inc.,  Lake Shore Savings Bank or their respective capital stock are described below.  Also discussed are certain provisions in Lake Shore Bancorp, Inc.’s charter and bylaws that may be deemed to affect the ability of a person, firm or entity to acquire Lake Shore Bancorp, Inc.
		

		
			Mutual Holding Company Structure
		

		
			Lake Shore, MHC owns a majority of the outstanding common stock of Lake Shore Bancorp, Inc. and, through its board of directors, is able to exercise voting control over virtually all matters put to a vote of stockholders.  For example, Lake Shore, MHC may exercise its voting control to prevent a sale or merger transaction or to defeat a stockholder nominee for election to the board of directors of Lake Shore Bancorp, Inc.  It will not be possible for another entity to acquire Lake Shore Bancorp, Inc. without the consent of Lake Shore, MHC.    Lake Shore, MHC, as long as it remains in the mutual form of organization, will control a majority of the voting stock of Lake Shore Bancorp, Inc.
		

		
			Federal Law
		

		
			Under the Change in Bank Control Act, no person may acquire control of a savings and loan holding company unless the Federal Reserve Board has been given 60 days’ prior written notice and has not issued a notice disapproving the proposed acquisition. 
		

		
			Control, as defined under federal law, means ownership, control, or holding with power to vote, of 25% or more of any class of voting stock.  Federal regulations establish a rebuttable presumption of control upon ownership, control, or holding with power to vote, of 10% or more of a class of voting stock where (i) the company has registered securities under Section 12 of the Securities Exchange Act of 1934 or (ii) no other person will own control or hold the power to vote a greater percentage of that class of voting securities.
		

		
			The Federal Reserve Board may deny an acquisition of control if it finds, among other things, that:
		

		 

		

			

		

 

			
	
			
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			the acquisition would result in a monopoly or substantially lessen competition;

			
	
			
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			the financial condition of the acquiring person might jeopardize the financial stability of the institution;

			
	
			
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			the competence, experience or integrity of the acquiring person indicates that it would not be in the interest of the depositors or the public to permit the acquisition of control by such person; or

			
	
			
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			the acquisition would have an adverse effect on the Deposit Insurance Fund.

		
			Charters and Bylaws of Lake Shore Bancorp, Inc. 
		

		
			The following discussion is a summary of provisions of the charter and bylaws of Lake Shore Bancorp, Inc. that may be deemed to affect the ability of a person, firm or entity to acquire Lake Shore Bancorp, Inc.  The description is necessarily general and qualified by reference to the charter and bylaws.
		

		
			Classified Board of Directors.  The board of directors of Lake Shore Bancorp, Inc. is required by the charter and bylaws to be divided into three staggered classes that are as equal in size as is possible.  Each year one class will be elected by stockholders of Lake Shore Bancorp, Inc. for a three-year term.  A classified board promotes continuity and stability of management of Lake Shore Bancorp, Inc., but makes it more difficult for stockholders to change a majority of the directors because it generally takes at least two annual elections of directors for this to occur.
		

		
			Authorized but Unissued Shares of Capital Stock.    Lake Shore Bancorp, Inc. has authorized but unissued shares of preferred stock and common stock.  Although these shares could be used by the board of directors of Lake Shore Bancorp, Inc. to make it more difficult or to discourage an attempt to obtain control of Lake Shore Bancorp, Inc. through a merger, tender offer, proxy contest or otherwise, it is unlikely that we would use or need to use shares for these purposes since Lake Shore, MHC will own a majority of the common stock for so long as we remain in the mutual holding company structure.
		

		
			How Shares are Voted.    Lake Shore Bancorp, Inc.’s charter provides that there will not be cumulative voting by stockholders for the election of Lake Shore Bancorp, Inc.’s directors.  No cumulative voting rights means that Lake Shore, MHC, as the holder of a majority of the shares eligible to be voted at a meeting of stockholders, may elect all directors of Lake Shore Bancorp, Inc. to be elected at that meeting.  This could prevent minority stockholder representation on Lake Shore Bancorp, Inc.’s board of directors.
		

		
			Procedures for Stockholder Nominations and Proposals for New Business.    Lake Shore Bancorp, Inc.’s bylaws provide that any stockholder wanting to make a nomination for the election of directors or a proposal for new business at a meeting of stockholders must send written notice to the Secretary of Lake Shore Bancorp, Inc. at least 30 days before the date of the annual meeting provided, however, that in the event less than 40 days notice of the annual meeting is given, a written proposal may be accepted from a stockholder not later than the close of business on the 10th day following notice of the annual meeting.  Management believes that it is in the best interests of Lake Shore Bancorp, Inc. and its stockholders to provide enough time for management to disclose to stockholders information about a dissident slate of nominations for directors.  This advance notice requirement may also give management time to solicit its own proxies in an attempt to defeat any dissident slate of nominations if management thinks it is in the best interest of stockholders generally.  Similarly, adequate advance notice of stockholder proposals will give management time to study such proposals and to determine whether to recommend to the stockholders that such proposals be adopted.
		

		

		

		 

		

			

		

 

		Limitations on Calling Special Meetings of Stockholders.  Lake Shore Bancorp, Inc.’s charter provides that special meetings of our stockholders may be called by the chairman of the board, the president, or a majority of the board of directors, and shall be called by the chairman of the board, the president, or the secretary upon the written request of the holders of not less than one-tenth of all of our outstanding shares of voting stock.
		

		
			Qualifications. The bylaws of Lake Shore Bancorp, Inc. provide that no person will be eligible to serve on the board of directors who has in the past 10 years been subject to a supervisory action by a financial regulatory agency that involved dishonesty or breach of trust or other bad actions, has been convicted of a crime involving dishonesty or breach of trust that is punishable by a year or more in prison, or is currently charged with such a crime, or has been found by a regulatory agent or a court to have breached a fiduciary duty involving personal profit or committed a willful violation of any law governing banking securities or insurance. These provisions may prevent stockholders from nominating themselves or persons of their choosing for election to the board of directors.
		

		
			﻿Exhibit 10.1

 

STOCK PURCHASE AGREEMENT

 

This STOCK PURCHASE
AGREEMENT (the “Agreement”) is dated as of [___________], 2020, by and among NEXGEL, Inc., a Delaware
corporation (the “Company”), and each of the purchasers identified on the signature pages hereto and
such purchasers’ respective successors and assigns (individually, a “Purchaser” and collectively,
the “Purchasers”).

 

The parties hereto
agree as follows:

 

Article
I.

Purchase and Sale of COMMON Stock

 

Section
1.01          Purchase and Sale of Stock. Upon the following terms and subject to the conditions set forth herein, the Company
shall issue and sell to each Purchaser, and each Purchaser shall purchase from the Company, that number of shares of the Company’s
common stock, par value $0.001 per share (the “Common Stock”), as is set forth on each such Purchaser’s
signature page hereto (collectively, the “Shares”), at a price per share equal to $0.04 (the “Per
Share Purchase Price,” and such amounts in the aggregate, the “Purchase Price”). In the
event that this Agreement is amended between Initial Closing Date (as defined below) and a Subsequent Closing Date (as defined
below) to reduce the Per Share Purchase Price, then the Purchasers in the Initial Closing Date shall be entitled to receive from
the Company additional shares of Common Stock, for no additional consideration, in an amount sufficient that the pro rata portion
of the Purchase Price paid by such Purchaser hereunder for the Shares then held, when divided by the total number of Shares then
held by such Purchaser plus such additional shares of Common Stock issued will equal the reduced Purchase Price. The Company and
the Purchasers are executing and delivering this Agreement in accordance with and in reliance upon the exemption from securities
registration afforded by Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States
Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the
 “Securities Act”).

 

Section 1.02           
Closing.

 

(a)               
On the initial closing date (the “Initial Closing Date”), upon the terms and subject to the conditions
set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company
agrees to sell at the initial closing (the “Initial Closing”), and the Purchasers, severally and not
jointly, agree to purchase at the Initial Closing, an aggregate of up to $175,000 of Common Stock. Thereafter, on a subsequent
closing date (the “Subsequent Closing Date”, and the Initial Closing Date and any Subsequent Closing
Date, each a “Closing Date”), upon the terms and subject to the conditions set forth herein, substantially
concurrent with the execution and delivery of this Agreement by the Purchasers purchasing shares of Common Stock on such Subsequent
Closing Date, the Company agrees to sell, and the Purchasers purchasing shares of Common Stock at such subsequent closing, severally
and not jointly, agree to purchase, an aggregate of up to $575,000 of Common Stock. Each Purchaser purchasing shares of Common
Stock on a Closing Date shall deliver to the Company such Purchaser’s Purchase Price by wire transfer of immediately available
funds in accordance with the Company’s written wire instructions, and the Company shall irrevocably instruct the Company’s
transfer agent to deliver to each Purchaser a stock certificate representing such Purchaser’s respective shares of Common
Stock. Notwithstanding anything herein to the contrary, each Closing Date shall occur on or before February 28, 2020; provided,
however, that such date may be extended by the Company, without notice, for up to 30-days (the “Termination Date”).

 

     

     

    

 

(b)              
If a Closing is not held on or before the Termination Date, the Company shall cause all subscription documents and funds
to be returned, without interest or deduction, to each prospective Purchaser. The Company shall also cause any subscription documents
or funds received following the final Closing to be returned, without interest or deduction, to each applicable prospective Purchaser.
Notwithstanding the foregoing, the Company in its sole discretion may elect not to sell to any Person any or all of the shares
of Common Stock requested to be purchased hereunder, provided that the Company causes all corresponding subscription documents
and funds received from such person to be promptly returned.

 

Article
II.

Representations and Warranties

 

Section 2.01           
Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchasers, as of
the date hereof, as follows:

 

(a)               
Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware and has full corporate power and authority to own and use its properties
and its assets and conduct its business as currently conducted. The Company has no subsidiary. The Company is not in violation
of any of the provisions of its organizational or charter documents, including, but not limited to the Charter Documents (as defined
below). The Company is duly qualified to conduct business and is in good standing as a foreign corporation in each jurisdiction
in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure
to be so qualified or in good standing, as the case may be, would not result in a direct and/or indirect (i) material adverse
effect on the legality, validity or enforceability of any of the Shares and/or this Agreement, (ii) material adverse effect
on the results of operations, assets, business, condition (financial and other) or prospects of the Company, taken as a whole,
or (iii) material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations
under the Transaction Documents (as defined below) (any of (i), (ii) or (iii), a “Material Adverse Effect”).

 

(b)              
Capitalization and Voting Rights. The authorized capital stock of the Company is as set forth in the SEC Reports
(as defined below) and, as of the date hereof, the Company has 57,505,208 shares of Common Stock issued and outstanding and no
shares of preferred stock, par value $0.001 per shares, issued and outstanding. All of the issued and outstanding shares of capital
stock of the Company are validly issued, fully paid and nonassessable. There are no outstanding securities of the Company which
contain any preemptive, redemption or similar provisions, nor is any holder of securities of the Company entitled to preemptive
or similar rights arising out of any agreement or understanding with the Company by virtue of any of the Transaction Documents,
and there are no contracts, commitments, understandings or arrangements by which the Company is or may become bound to redeem a
security of the Company. The Company does not have any stock appreciation rights or "phantom stock" plans or agreements
or any similar plan or agreement. Except grants made pursuant to the NEXGEL, Inc. 2019 Long-Term Incentive Plan, there are no outstanding
options, warrants, agreements, convertible securities, preemptive rights or other rights to subscribe for or to purchase or acquire,
any shares of capital stock of the Company or contracts, commitments, understandings, or arrangements by which the Company is or
may become bound to issue any shares of capital stock of the Company, or securities or rights convertible or exchangeable into
shares of capital stock of the Company. Except as otherwise required by law, there are no restrictions upon the voting or transfer
of any of the shares of capital stock of the Company pursuant to the Company’s Charter Documents or other governing documents
or any agreement or other instruments to which the Company is a party or by which the Company is bound. All of such outstanding
capital stock has been issued in compliance in all material respects with applicable federal and state securities laws. The issuance
and sale of the Shares and, upon issuance, the Shares, as contemplated hereby will not obligate the Company to issue shares of
Common Stock or other securities to any other person (other than the Purchasers) and will not result in the adjustment of the exercise,
conversion, exchange or reset price of any outstanding security. The Company does not have outstanding shareholder purchase rights
or “poison pill” or any similar arrangement in effect giving any person the right to purchase any equity interest in
the Company upon the occurrence of certain events.

 

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(c)               
Authorization; Enforceability. The Company has the requisite corporate right, power and authority to enter into,
execute and deliver this Agreement and each other agreement, document, instrument and certificate to be executed by the Company
in connection with the consummation of the transactions contemplated hereby (collectively referred to as the “Transaction
Documents”), and to perform fully its obligations hereunder and thereunder. All necessary corporate action on the
part of the Company, its directors and shareholders necessary for the (a) authorization execution, delivery and performance of
this Agreement and the other Transaction Documents by the Company; and (b) authorization, sale, issuance and delivery of the Shares
contemplated hereby and the performance of the Company’s obligations under this Agreement and the other Transaction Documents
has been taken. This Agreement and the other Transaction Documents have been duly executed and delivered by the Company and each
constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its respective
terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing
specific performance, injunctive relief or other equitable remedies, and to limitations of public policy. The Shares are duly authorized
and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid
and nonassessable, free and clear of all mortgages, pledges, liens, claims, charges, encumbrances or other restrictions (collectively,
 “Encumbrances”) imposed by the Company other than restrictions on transfer pursuant to applicable law
or otherwise provided for in the Transaction Documents.

 

(d)              
No Conflict; Governmental Consents.

 

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

 

(ii)              
No vote, approval or consent of any holder of capital stock of the Company or any other third parties is required to be
obtained by the Company in connection with the authorization, execution, delivery and performance of this Agreement and the other
Transaction Documents or in connection with the authorization, issue and sale of the Shares, except as has been previously obtained.

 

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(iii)            
No consent, approval, authorization or other order of any governmental authority or any other person is required to be obtained
by the Company in connection with the authorization, execution, delivery and performance of this Agreement and the other Transaction
Documents or in connection with the authorization, issue and sale of the Shares, except such post-sale filings as may be required
to be made with the Commission, FINRA and with any state or foreign blue sky or securities regulatory authority, all of which shall
be made when required.

 

(e)               
Shell Company Status; SEC Reports; Financial Statements. The Company has never been an issuer subject to Rule 144(i)
under the Securities Act. Except for the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30,
2019, the Company has filed all reports required to be filed by it under the Securities Act and Securities Exchange Act of 1934,
as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d) thereof, for the twenty-four
(24) months preceding the date hereof (or such shorter period as the Company was required by law to file such reports) (the foregoing
materials, together with the Company’s Registration Statement on Form S-1 (File No. 333-229173), originally filed with the
Commission on January 9, 2019, as amended, being collectively referred to herein as the "SEC Reports")
on a timely basis or has timely filed a valid extension of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements
of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of
the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”)
applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or
the footnotes thereto, and fairly present in all material respects the financial position of the Company as of and for the dates
thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements,
to normal, immaterial, year-end audit adjustments.

 

(f)                
Reserved.

 

(g)               
Litigation. The Company knows of no pending or threatened legal or governmental proceedings against the Company which
could reasonably be expected to have a Material Adverse Effect and thereunder. The Company is not a party or subject to the provisions
of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality which could reasonably
be expected to have a Material Adverse Effect. There is no action, suit, proceeding or investigation by the Company currently pending
in any court or before any arbitrator or that the Company intends to initiate. Neither the Company, nor any director or officer
thereof, is subject of any action involving (i) a claim of violation of or liability under federal or state securities laws or
(ii) a claim of breach of fiduciary duty. To the Company’s knowledge, there is no pending or contemplated investigation by
the Commission involving the Company or any current or former director or officer of the Company. For purposes of this Agreement,
the term “knowledge” when used with respect to the Company will mean the present, conscious awareness of a particular
fact or matter by the Company’s chief executive officer or interim chief financial officer.

 

(h)              
Compliance. The Company: (i) is not in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company), or has not received notice of a claim
that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument
to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived),
(ii) is not in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is
not or has not been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety,
product quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to
result in a Material Adverse Effect.

 

    	 	 	- 4 -

     

    

 

(i)               
Regulatory Permits. The Company possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess
such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”),
and the Company has not received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

(j)               
Brokers. Except for Alere Financial Partners, A Division of Cova Capital Partners, LLC, the Company nor any of the
Company's officers, directors, employees or shareholders has employed or engaged any broker or finder in connection with the transactions
contemplated by this Agreement and no fee or other compensation is or will be due and owing to any broker, finder, underwriter,
placement agent or similar person in connection with the transactions contemplated by this Agreement. The Company is not party
to any agreement, arrangement or understanding whereby any person has an exclusive right to raise funds and/or place or purchase
any debt or equity securities for or on behalf of the Company.

 

(k)              
No General Solicitation. None of the Company, any of their affiliates, and any person acting on the Company’s
behalf and its direction, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D
under the Securities Act) in connection with the offer or sale of the Shares.

 

(l)               
Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section
2.02, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchaser
as contemplated hereby.

 

(y)               Bad
Actor. No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification
Event”) is applicable to the Company or, to the Company’s knowledge, any Person listed in the first paragraph
of Rule 506(d)(1) with respect to the Company as an “issuer” for purposes of Rule 506 promulgated under the Securities
Act, except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv) or (d)(3), is applicable.

 

Section 2.02           
Representations and Warranties of the Purchasers. Each of the Purchasers hereby makes the following representations
and warranties to the Company with respect solely to itself and not with respect to any other Purchaser:

 

(a)               
Organization and Standing of the Purchasers. If the Purchaser is an entity, such Purchaser is a corporation, limited
liability company or partnership duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or organization.

 

(b)              
Authorization and Power. Each Purchaser has the requisite power and authority to enter into and perform this Agreement
and to purchase the Shares being sold to such Purchaser hereunder. This Agreement has been duly authorized, executed and delivered
by such Purchaser and constitutes, or shall constitute when executed and delivered, a valid and binding obligation of such Purchaser
enforceable against such Purchaser in accordance with the terms thereof, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.

 

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(c)               
Purchase For Own Account. Each Purchaser is acquiring the Shares solely for its own account and not with a view to
or for sale in connection with distribution. Each Purchaser does not have a present intention to sell the Shares, nor a present
arrangement (whether or not legally binding) or intention to effect any distribution of the Shares to or through any person or
entity. Each Purchaser acknowledges that it is able to bear the financial risks associated with an investment in the Shares and
that it has been given full access to such records of the Company and to the officers of the Company and received such information
as it has deemed necessary or appropriate to conduct its due diligence investigation and has sufficient knowledge and experience
in investing in companies similar to the Company in terms of the Company’s stage of development so as to be able to evaluate
the risks and merits of its investment in the Company.

 

(d)              
Status of Purchasers. Such Purchaser is an “accredited investor” as defined in Regulation D promulgated
under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act
and such Purchaser is not a broker-dealer.

 

(e)               
Opportunities for Additional Information. Each Purchaser acknowledges that such Purchaser has had the opportunity
to ask questions of and receive answers from, or obtain additional information from, the executive officers of the Company concerning
the financial and other affairs of the Company, and to the extent deemed necessary in light of such Purchaser’s personal
knowledge of the Company’s affairs, such Purchaser has asked such questions and received answers to the full satisfaction
of such Purchaser, and such Purchaser desires to invest in the Company. Neither such inquiries nor any other investigation conducted
by or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right
to rely on the truth, accuracy and completeness of the Company’s representations and warranties contained in the Transaction
Documents.

 

(f)                
No General Solicitation. Each Purchaser acknowledges that the Shares were not offered to such Purchaser by means
of any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature,
including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media,
or broadcast over television or radio or (ii) any seminar or meeting to which such Purchaser was invited by any of the foregoing
means of communications.

 

(g)               
Rule 144. Such Purchaser understands that the Shares must be held indefinitely unless they are registered under the
Securities Act or an exemption from registration is available. Such Purchaser acknowledges that such Purchaser is familiar with
Rule 144 of the rules and regulations of the Commission, as amended, promulgated pursuant to the Securities Act (“Rule
144”), and that such person has been advised that Rule 144 permits resales only under certain circumstances. Such
Purchaser understands that to the extent that Rule 144 is not available, such Purchaser will be unable to sell any Shares without
either registration under the Securities Act or the existence of another exemption from such registration requirement.

 

(h)              
General. Such Purchaser understands that the Shares are being offered and sold in reliance on a transactional exemption
from the registration requirement of federal and state securities laws and the Company is relying upon the truth and accuracy of
the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to
determine the applicability of such exemptions and the suitability of such Purchaser to acquire the Shares.

 

    	 	 	- 6 -

     

    

 

(i)                
Independent Investment. Except as may be disclosed in any filings with the Commission by the Purchasers under Section
13 and/or Section 16 of the Exchange Act, no Purchaser has agreed to act with any other Purchaser for the purpose of acquiring,
holding, voting or disposing of the Shares purchased hereunder for purposes of Section 13(d) under the Exchange Act, and each Purchaser
is acting independently with respect to its investment in the Shares.

 

Article
III.

OTHER AGREEMENTS OF THE PARTIES

 

Section 3.01           
Transfer Restrictions.

 

(a)               
The Purchasers covenant that the Shares will only be disposed of pursuant to an effective registration statement under,
and in compliance with the requirements of, the Securities Act or pursuant to an available exemption from the registration requirements
of the Securities Act, and in compliance with any applicable state securities laws. In connection with any transfer of Shares other
than pursuant to an effective registration statement or to the Company, or pursuant to Rule 144 at such time that the Company is
not required to be in compliance with Rule 144(c) and any other limitations or requirements set forth in Rule 144, the Company
may require the transferor to provide the Company with an opinion of counsel selected by the transferor, the form and substance
of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration
under the Securities Act.

 

(b)              
The Purchasers agree to the imprinting of the following legend on any certificate evidencing any of the Shares (in addition
to any legend required by applicable state securities or “blue sky” laws):

 

THESE SECURITIES REPRESENTED BY THIS
CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION
OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

 

Section 3.02           
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 Shares in
a manner that would require the registration under the Securities Act of the sale of the Shares to the Purchasers.

 

Section 3.03           
Securities Laws Disclosure; Publicity. The Company shall, at or before 5:30 p.m., New York time, on the fourth business
day following execution of this Agreement, file a Current Report on Form 8-K with the Commission describing the terms of the transactions
contemplated by the Transaction Documents and including as exhibits to such Current Report on Form 8-K the Transaction Documents,
in the form required by the Exchange Act. Thereafter, the Company shall timely file any filings and notices required by the Commission
or applicable state law with respect to the transactions contemplated hereby and provide copies thereof to the Purchasers upon
request.

 

Section 3.04           
Use of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder for working capital
purposes.

 

    	 	 	- 7 -

     

    

 

Section 3.05           
Equal Treatment of Purchasers. No consideration shall be offered or paid to any Person to amend or consent to a waiver
or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the
parties to the Transaction Documents. For clarification purposes, this provision constitutes a separate right granted to each Purchaser
by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class
and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition
or voting of the Shares or otherwise.

 

Section 3.06           
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Shares as required under
Regulation D. 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 Shares for, sale to the Purchasers at the Closing under applicable securities or “Blue Sky”
laws of the states of the United States, and shall provide evidence of such actions upon request of any Purchaser.

 

Article
IV.

Miscellaneous

 

Section 4.01           
Fees and Expenses. Except as otherwise set forth in this Agreement and the other Transaction Documents, each party
shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses, incurred
by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall
pay all stamp or other similar taxes and duties levied in connection with issuance of the Shares pursuant hereto.

 

Section 4.02           
Specific Enforcement, Consent to Jurisdiction.

 

(a)               
The Company and the Purchasers acknowledge and agree that irreparable damage would occur in the event that any of the provisions
of this Agreement or the other Transaction Documents were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches
of the provisions of this Agreement and to enforce specifically the terms and provisions hereof or thereof, this being in addition
to any other remedy to which any of them may be entitled by law or equity.

 

(b)              
Each of the Company and the Purchasers (i) hereby irrevocably submits to the jurisdiction of the United States District
Court sitting in the Southern District of New York and the courts of the State of New York located in New York County for the purposes
of any suit, action or proceeding arising out of or relating to this Agreement or any of the other Transaction Documents or the
transactions contemplated hereby or thereby and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in
an inconvenient forum or that the venue of the suit, action or proceeding is improper. Each of the Company and the Purchasers consents
to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing in this Section 4.02 shall affect or limit any right to serve process in any other manner permitted by
law.

 

Section
4.03         
Entire Agreement; Amendment. This Agreement (including all exhibits and schedules hereto) and the Transaction Documents
contain the entire understanding and agreement of the parties with respect to the matters covered hereby and, except as specifically
set forth herein or in the Transaction Documents, neither the Company nor any of the Purchasers makes any representations, warranty,
covenant or undertaking with respect to such matters and they supersede all prior understandings and agreements with respect to
said subject matter, all of which are merged herein. No provision of this Agreement may be waived or amended other than by a written
instrument signed by the Company and the Purchasers holding a majority of the Shares then outstanding and held by Purchasers.

 

    	 	 	- 8 -

     

    

 

Section 4.04         
Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder
shall be in writing and shall be effective (a) upon hand delivery by telex (with correct answer back received), telecopy, e-mail
or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such
notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be:

 

(a)               
If to the Company:

 

NEXGEL, Inc.

2150 Cabot Boulevard, West 

Suite B 

Langhorne, PA 19067

Attention: Chief Executive Officer

Fax No.: ([ ]) [ ]

 

(b)              
If to any Purchaser at the address of such Purchaser set forth on the signature pages hereto.

 

Any party hereto may
from time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the
other party hereto.

 

Section
4.05            Waivers. No waiver by either party of any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provisions, condition or requirement
hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such
right accruing to it thereafter.

 

Section
4.06            Headings. The article, section and subsection headings in this Agreement are for convenience only and shall not constitute
a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.

 

Section
4.07            Successors and Assigns; Restrictions on Transfer. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and assigns. The Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Purchasers.

 

Section
4.08            No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

Section
4.09            Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State
of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive
law of another jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing
this Agreement to be drafted. Each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any and
all rights to a trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby.

 

    	 	 	- 9 -

     

    

 

Section
4.10            Survival. The representations and warranties of the Company and the Purchasers shall survive the execution and delivery
hereof and the Closing hereunder for the applicable statute of limitations period.

 

Section
4.11            Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall
be deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective
when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties
need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same
force and effect as if such facsimile signature were the original thereof.

 

Section
4.12            Severability. The provisions of this Agreement and the other Transaction Documents are severable and, in the event
that any court of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained
in this Agreement or the other Transaction Documents shall, for any reason, be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this
Agreement or the other Transaction Documents and such provision shall be reformed and construed as if such invalid or illegal or
unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal
and enforceable to the maximum extent possible.

 

Section
4.13            Further Assurances. From and after the date of this Agreement, upon the request of any Purchaser or the Company,
each of the Company and the Purchasers shall execute and deliver such instrument, documents and other writings as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement and the other
Transaction Documents.

 

Section
4.14            Like Treatment of Purchasers. No consideration shall be offered or paid to any Purchaser to amend or consent to a
waiver or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all
of the Purchasers then holding Shares. Further, the Company shall not make any payments or issue any securities to the Purchasers
in amounts which are disproportionate to the respective numbers of outstanding Shares held by any Purchasers at any applicable
time. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated
separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed
as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of the Shares or otherwise.

 

[SIGNATURE PAGES FOLLOWS]

 

    	 	 	- 10 -

     

    

 

Company Signature Page

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be duly executed by an authorized signatory as of the date first above written.

 

	 	NEXGEL, INC.
	 	 	 
	 	By:  	          
	 	Name: Adam Levy
	 	Title: Chief Executive Officer

 

     

     

    

 

Purchaser Signature Page

 

By its execution and
delivery of this signature page, the undersigned Purchaser hereby joins in and agrees to be bound by the terms and conditions of
the Stock Purchase Agreement dated as of January __, 2020 (the “Purchase Agreement”) by and among NEXGEL, Inc.
and the Purchasers (as defined therein), as to the number of shares of Common Stock set forth below, and authorizes this signature
page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Purchaser:

 

____________________________________       

 

By:_________________________________

Name:

Title:

 

Address: _____________________________

 

____________________________________

 

____________________________________       

 

Telephone No.: __________________________

 

Facsimile No.: ________________________

 

Email Address: __________________________

 

Number of Shares: _____________________

 

Aggregate Purchase Price: $_______________

Tax ID No.___________________________

 

Delivery Instructions (if different than above):

 

c/o: ____________________________________________________________

 

Address: ________________________________________________________

 

______________________________________________________________

 

Telephone No.: ___________________________________________________

 

Facsimile No. : ___________________________________________________

 

Other Special Instructions: ___________________________________________

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