Document:

Exhibit 10.01

 

SENECA BIOPHARMA, INC. (F/K/A NEURALSTEM, INC.)

 

January 17, 2020

 

Holder of Series M and Series N Common Stock Purchase Warrant

 

Re:       Inducement
Offer to Exercise Common Stock Purchase Warrants

 

Dear Holder:

 

Seneca Biopharma, Inc. (f/k/a Neuralstem, Inc.)
(the “Company”) is pleased to offer to you the opportunity to exercise all of the Series M Common Stock Purchase
Warrants (“Series M Warrant”) and Series N Warrants Common Stock Purchase Warrants (“Series N Warrant”)
set forth on the signature page hereto (collectively, the “Existing Warrants”) currently held by you (the “Holder”).
The Existing Warrants and the shares underlying the Existing Warrants (“Warrant Shares”) have been registered
pursuant to registration statement Form S-1 (File No. 333-232273) (the “Registration Statement”) in connection
with a public offering (the “Public Offering”) underwritten by H.C. Wainwright & Co., LLC. The Registration
Statement is currently effective and, upon exercise of the Existing Warrants pursuant to this letter agreement, will be effective
for the issuance or sale, as the case may be, of the Warrant Shares. Capitalized terms not otherwise defined herein shall have
the meanings set forth in the Existing Warrant.

 

In consideration for exercising in full all
of the Existing Warrants held by you and set forth on the signature page hereto (the “Warrant Exercise”) at
a reduced exercise price of $1.36, the Company hereby offers to issue you or your designee,

 

		(a)	for the Series M Warrants exercised hereunder, a Series P Common Stock Purchase Warrant (“New
Series P Warrant”) pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (“Securities Act”)
to purchase up to a share of Common Stock equal to 100% of the number of Warrant Shares issued pursuant to the Warrant Exercise
of Series M Warrants hereunder, which New Series P Warrant shall be substantially in the form of the Existing Warrants (except
for customary legends and other language typical for an unregistered warrant), will be exercisable immediately, and have a term
of exercise of 2 years, and an exercise price equal to $1.23; and

 

		(b)	for the Series N Warrants exercised hereunder, a Series Q Common Stock Purchase Warrant (“New
Series Q Warrant” and together with the New Series P Warrant, the “New Warrant” and the shares underlying
the New Warrants, the “New Warrant Shares”) pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended
(“Securities Act”) to purchase up to a share of Common Stock equal to 100% of the number of Warrant Shares
issued pursuant to the Warrant Exercise of Series N Warrants hereunder, which New Series Q Warrant shall be substantially in the
form of the Existing Warrants (except for customary legends and other language typical for an unregistered warrant), will be exercisable
immediately, and have a term of exercise of five years, and an exercise price equal to $1.23.

 

The original New Warrant certificates will be
delivered within two Business Days following the date hereof. Notwithstanding anything herein to the contrary, in the event the
Warrant Exercise would otherwise cause the Holder to exceed the beneficial ownership limitations (“Beneficial Ownership
Limitation”) set forth in Section 1(f) of the Existing Warrants, the Company shall only issue such number of Warrant
Shares to the Holder that would not cause the Holder to exceed the maximum number of Warrant Shares permitted thereunder with the
balance to be held in abeyance until notice from the Holder that the balance (or portion thereof) may be issued in compliance with
such limitations, which abeyance shall be evidenced through the Existing Warrants which shall be deemed prepaid thereafter, and
exercised pursuant to a Notice of Exercise in the Existing Warrant (provided no additional exercise shall be payable).

 

     

    

    

 

Expressly subject to the paragraph immediately
following this paragraph below, Holder may accept this offer by signing this letter below, with such acceptance constituting Holder's
exercise in full of the Existing Warrants for an aggregate exercise price set forth on the Holder’s signature page hereto
(the “Warrants Exercise Price”) on or before 1:00 p.m. Eastern on January 17, 2020.

 

Additionally, the Company agrees to the representations,
warranties and covenants set forth on Annex A attached hereto. Holder represents and warrants that it is an “accredited
investor” as defined in Rule 501 of the Securities Act, and agrees that the New Warrants will contain restrictive legends
when issued, and neither the New Warrants nor the shares of Common Stock issuable upon exercise of the New Warrants will be registered
under the Securities Act, except in the discretion of the Company.

 

The Holder understands that the New Warrants and the shares of Common Stock underlying New Warrants are not, and may never be, registered under the Securities Act, or the securities laws of any state and, accordingly, each certificate, if any, representing such securities shall bear a legend substantially similar to the following:   

 

“THIS SECURITY HAS NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER
OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES
ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.”

 

Certificates evidencing shares of Common Stock underlying the New Warrants shall not contain any legend (including the legend set forth above), (i) while a registration statement covering the resale of such Common Stock is effective under the Securities Act, (ii) following any sale of such Common Stock pursuant to Rule 144 under the Securities Act, (iii) if such Common Stock is eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Common Stock and without volume or manner-of-sale restrictions, (iv) if such Common Stock may be sold under Rule 144 and the Company is then in compliance with the current public information required under Rule 144 as to such Common Stock, or (v) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Securities and Exchange Commission (the “Commission”) and the earliest of clauses (i) through (v), the “Delegend Date”)). The Company shall cause its counsel to issue a legal opinion to the transfer agent promptly after the Delegend Date if required by the Company and/or the transfer agent to effect the removal of the legend hereunder, which opinion shall be in form and substance reasonably acceptable to the Holder. If such Common Stock may be sold under Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule 144 or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Common Stock shall be issued free of all legends. The Company agrees that following the Delegend Date or at such time as such legend is no longer required under this Section 2.3(b), it will, no later than two (2) Trading Days following the delivery by the Holder to the Company or the transfer agent of a certificate representing the Common Stock underlying the New Warrants issued with a restrictive legend (such second Trading Day, the “Legend Removal Date”), deliver or cause to be delivered to the Holder a certificate representing such shares that is free from all restrictive and other legends or, at the request of the Holder shall credit the account of the Holder’s prime broker with the Depository Trust Company System as directed by the Holder.  

 

     

    

    

 

In addition to the Holder’s other available remedies, the Company shall pay to a Holder, in cash, (i) as partial liquidated damages and not as a penalty, for each $1,000 of Shares or Warrant Shares (based on the VWAP of the Common Stock on the date such Warrant Shares are submitted to the Transfer Agent) delivered for removal of the restrictive legend, $10 per Trading Day (increasing to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until such certificate is delivered without a legend and (ii) if the Company fails to (a) issue and deliver (or cause to be delivered) to the Holder by the Legend Removal Date a certificate representing the Securities so delivered to the Company by the Holder that is free from all restrictive and other legends and (b) if after the Legend Removal Date the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock that the Holder anticipated receiving from the Company without any restrictive legend, then, an amount equal to the excess of the Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket expenses, if any) (the “Buy-In Price”) over the product of (A) such number of Warrant Shares that the Company was required to deliver to the Holder by the Legend Removal Date multiplied by (B) the lowest closing sale price of the Common Stock on any Trading Day during the period commencing on the date of the delivery by the Holder to the Company of the applicable Warrant Shares (as the case may be) and ending on the date of such delivery and payment under this clause (ii).     

 

From the date hereof until the end of the 30
Trading Day following the date hereof, neither the Company nor any subsidiary of the Company (the Company acknowledging that it
does not currently have any subsidiaries) shall issue, enter into any agreement to issue or announce the issuance or proposed issuance
of any shares of Common Stock or any securities of the Company or any subsidiaries which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock, other than the offer and issuance of New Warrants to Other Holders (defined below).

 

If this offer is accepted and the transaction
documents are executed on or before 1:00 p.m. ET on January 17, 2020, then on or before 1:30 p.m. ET on the same Trading Day, the
Company shall issue a press release disclosing all material terms of the transactions contemplated hereunder. From and after the
issuance of such press release, the Company represents to you that it shall have publicly disclosed all material, non-public information
delivered to you by the Company, or any of their respective officers, directors, employees or agents in connection with the transactions
contemplated hereunder. In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that
any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its
Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and you and your
Affiliates on the other hand, shall terminate. The Company represents, warrants and covenants that, upon acceptance of this offer,
the shares underlying the Existing Warrants shall be issued free of any legends or restrictions on resale by Holder and all of
the Warrant Shares shall be delivered electronically through the Depository Trust Company within 1 Business Day of the date the
Company receives the Warrants Exercise Price (or, with respect to Warrant Shares that would otherwise be in excess of the Beneficial
Ownership Limitation, within 2 Business Days of the date the Company is notified by Holder that its ownership is less than the
Beneficial Ownership Limitation). The terms of the Existing Warrants, including but not limited to the obligations to deliver the
Warrant Shares, shall otherwise remain in effect as if the acceptance of this offer were a formal Notice of Exercise (including
but not limited to any liquidated damages and compensation in the event of late delivery of the Warrant Shares).

 

     

    

    

 

As soon as practicable (and in any event within
30 calendar days of the date of this letter agreement), the Company shall file a registration statement on Form S-3 (or other appropriate
form if the Company is not then S-3 eligible) providing for the resale by the Purchasers of the New Warrant Shares issued and issuable
upon exercise of the New Warrants.  The Company shall use commercially reasonable efforts to cause such registration to become
effective within 90 days following the Closing Date and to keep such registration statement effective at all times until no Purchaser
owns any New Warrants or New Warrant Shares issuable upon exercise thereof.

 

The Company acknowledges and agrees that the
obligations of the Holders under this letter agreement are several and not joint with the obligations of any other holder or any
other holders of Warrants to Purchase Common Stock of the Company (each, an “Other Holder”) under any other
agreement related to the exercise of such warrants (“Other Warrant Exercise Agreement”), and the Holder shall
not be responsible in any way for the performance of the obligations of any Other Holder or under any such Other Warrant Exercise
Agreement. Nothing contained in this letter agreement, and no action taken by the Holders pursuant hereto, shall be deemed to constitute
the Holder and the Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Holder and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions
contemplated by this letter agreement and the Company acknowledges that the Holder and the Other Holders are not acting in concert
or as a group with respect to such obligations or the transactions contemplated by this letter agreement or any Other Warrant Exercise
Agreement. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions
contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and
enforce its rights, including, without limitation, the rights arising out of this letter agreement, and it shall not be necessary
for any Other Holder to be joined as an additional party in any proceeding for such purpose.

 

The Company hereby represents and warrants as
of the date hereof and covenants and agrees from and after the date hereof until 30 Trading Days after the date hereof, that none
of the terms offered to any Other Holder with respect to any Other Warrant Exercise Agreement (or any amendment, modification or
waiver thereof), is or will be more favorable to such Other Holder than those of the Holder and this letter agreement. If, and
whenever on or after the date hereof until 30 Trading Days after the date hereof, the Company enters into an Other Warrant Exercise
Agreement, then (i) the Company shall provide notice thereof to the Holder promptly following the occurrence thereof and (ii) the
terms and conditions of this letter agreement shall be, without any further action by the Holder or the Company, automatically
amended and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more
favorable terms and/or conditions (as the case may be) set forth in such Other Warrant Exercise Agreement (including the issuance
of additional Warrant Shares), provided that upon written notice to the Company at any time the Holder may elect not to accept
the benefit of any such amended or modified term or condition, in which event the term or condition contained in this letter agreement
shall apply to the Holder as it was in effect immediately prior to such amendment or modification as if such amendment or modification
never occurred with respect to the Holder. The provisions of this paragraph shall apply similarly and equally to each Other Warrant
Exercise Agreement.

 

 

 

***************

 

 

     

    

    

 

Within one business day from the Holder’s
execution of this letter, the Holder shall make available for “Delivery Versus Payment” to the Company immediately
available funds equal to the number of Existing Warrants being exercised multiplied by $1.36 and the Company shall deliver
the Warrant Shares via “Delivery Versus Payment” to the Holder and shall deliver the New Warrants registered in the
name of the Holder.

 

Please do not hesitate to call me if you have
any questions.

 

	 	 	Sincerely yours,
	 	 	 
	 	 	SENECA BIOPHARMA, INC. 

(F/K/A NEURALSTEM, INC.)
	 	 	 
	 	 	By: 	 
	 	 	Name:  	[   ]
	 	 	Title:	[   ]

 

Accepted and Agreed to:

 

	Name of Holder:  	 
	Signature of Authorized Signatory of Holder:	 
	Name of Authorized Signatory: 	 
	Title of Authorized Signatory: 	 
	Existing Series M Warrant Shares: 	 
	Existing Series N Warrant Shares:	 
	Aggregate Exercise Price: 	 
	New Series P Warrants: (100% of total Series M Warrants being exercised):  	 
	New Series Q Warrants: (100% of total Series N Warrants being exercised):	 
	DTC Instructions:	 

 

 

     

    

    

 

Annex A

 

Representations, Warranties and Covenants
of the Company. The Company hereby makes the following representations and warranties to the Holder:

 

(a)               
Affirmation of Prior Representations, Warranties and Covenants. The Company hereby represents and warrants to the Holder
that the Company’s representations and warranties as set forth in Section 3 and the Company’s covenants listed in Section
5 of that certain underwriting agreement, dated July 25, 2019, between the Company and H.C. Wainwright & Co., LLC (the “Underwriting
Agreement”), together with any updates in the Company’s public reports filed with the SEC subsequent to the Underwriting
Agreement, are true and correct as of the date hereof and have been fully performed as of the date hereof.

 

(b)               
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this letter agreement and otherwise to carry out its obligations hereunder and thereunder. The
execution and delivery of this letter agreement by the Company and the consummation by the Company of the transactions contemplated
hereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company,
its board of directors or its stockholders in connection therewith. This letter agreement has been duly executed by the Company
and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and
(iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(c)               
No Conflicts. The execution, delivery and performance of this letter agreement by the Company and the consummation by the
Company of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s
certificate or articles of incorporation, bylaws or other organizational or charter documents; or (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any  liens,
claims, security interests, other encumbrances or defects upon any of the properties or assets of the Company in connection with,
or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of, any material agreement, credit facility, debt or other material instrument (evidencing Company debt or otherwise) or
other material understanding to which such Company is a party or by which any property or asset of the Company is bound or affected;
or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Company is bound or affected, except, in the case of each of clauses (ii) and (iii), such
as could not have or reasonably be expected to result in a material adverse effect upon the business, prospects, properties, operations,
condition (financial or otherwise) or results of operations of the Company, taken as a whole, or in its ability to perform its
obligations under this letter agreement.

 

(d)               
Nasdaq Corporate Governance. The transactions contemplated under this letter agreement, comply with all rules of the Nasdaq
Capital Market.Exhibit 10.02

 

 

 

Execution Version

 

January 17, 2020

 

STRICTLY CONFIDENTIAL

 

Seneca Biopharma, Inc.

20271 Goldenrod Lane, 2nd Floor

Germantown, Maryland 20876

 

Attn: Kenneth Carter, Ph.D., Executive Chairman

 

Dear Mr. Carter:

 

This letter agreement (this “Agreement”)
constitutes the agreement between Seneca Biopharma, Inc. (the “Company”) and H.C. Wainwright & Co.,
LLC (“Wainwright”), that Wainwright shall serve as the exclusive agent, advisor or underwriter in any offering
that is not made to Excluded Investors, as defined below of securities of the Company (the “Securities”), including
but not limited to, restructuring of the Company’s outstanding warrants (each, an “Offering”) during the
Term (as hereinafter defined) of this Agreement. Wainwright acknowledges that the Company is currently in discussion with the investors
contained on Schedule A (“Excluded Investors”) and that any Securities sold to an Excluded Investor will
not be subject to the terms of this Agreement and Wainwright will not be entitled to any compensation associated therewith. The
terms of each Offering and the Securities issued in connection therewith shall be mutually agreed upon by the Company and Wainwright
and nothing herein implies that Wainwright would have the power or authority to bind the Company and nothing herein implies that
the Company shall have an obligation to issue any Securities. It is understood that Wainwright’s assistance in an Offering
will be subject to the satisfactory completion of such investigation and inquiry into the affairs of the Company as Wainwright
deems appropriate under the circumstances and to the receipt of all internal approvals of Wainwright in connection with the transaction.
The Company expressly acknowledges and agrees that Wainwright’s involvement in an Offering is strictly on a reasonable best
efforts basis and that the consummation of an Offering will be subject to, among other things, market conditions. The execution
of this Agreement does not constitute a commitment by Wainwright to purchase the Securities and does not ensure a successful Offering
of the Securities or the success of Wainwright with respect to securing any other financing on behalf of the Company. Wainwright
may retain other brokers, dealers, agents or underwriters on its behalf in connection with an Offering.

 

A.       Compensation;
Reimbursement. At the closing of each Offering (each, a “Closing”), the Company shall compensate Wainwright
as follows:

 

		1.	Cash Fee. The Company shall pay to Wainwright a cash fee, or as to an underwritten Offering
an underwriter discount, equal to 8.0% of the aggregate gross proceeds raised in each Offering from non-Excluded Investors.

 

 

 

430 Park Avenue | New York, New York 10022 | 212.356.0500
| www.hcwco.com

Member: FINRA/SIPC

     

    

    

 

		2.	Warrant Coverage. The Company shall issue to Wainwright or its designees at each Closing,
warrants (the “Wainwright Warrants”) to purchase that number of shares of common stock of the Company equal
to 8.0% of the aggregate number of shares of common stock (or common stock equivalent, if applicable) placed in each Offering to
non-Excluded Investors (and if an Offering includes a “greenshoe” or “additional investment” component,
such number of shares of common stock underlying such “greenshoe” or “additional investment” component,
with the Wainwright Warrants issuable upon the exercise of such component). If the Securities included in an Offering are convertible,
the Wainwright Warrants shall be determined by dividing the gross proceeds raised in such Offering, less any proceeds received
from an Excluded Investor, by the Offering Price (as defined hereunder). Notwithstanding the foregoing, if the Securities issued
consist of units comprised of common stock and warrants, the warrants contained in such units, other than pre-funded warrants,
if any, will be excluded from the calculation of the Wainwright Warrants. The Wainwright Warrants shall be in a customary form
reasonably acceptable to Wainwright, have a term of five (5) years and an exercise price equal to 125% of the offering price per
share (or unit, if applicable) in the applicable Offering (such price, the “Offering Price”). If warrants are
issued to investors in an Offering, the Wainwright Warrants shall have the same terms as the warrants issued to investors in the
applicable Offering, except that such Wainwright Warrants shall have an exercise price equal to 125% of the Offering Price.

 

		3.	Expense Allowance. Out of the proceeds of each Closing, the Company also agrees to pay Wainwright
(a) a management fee equal to 1.0% of the gross proceeds raised in each Closing; (b) $35,000 for non-accountable expenses; (c)
up to $90,000 for fees and expenses of legal counsel and other out-of-pocket expenses; plus the additional amount payable by the
Company pursuant to Paragraph D.3 hereunder and, if applicable, the costs associated with the use of a third-party electronic road
show service (such as NetRoadshow); provided, however, that such amount in no way limits or impairs the indemnification and contribution
provisions of this Agreement.

 

		4.	Tail. Wainwright shall be entitled to compensation under clauses (1) and (2) hereunder,
calculated in the manner set forth therein, with respect to any public or private offering or other financing or capital-raising
transaction of any kind (“Tail Financing”) to the extent that such financing or capital is provided to the Company
by investors whom Wainwright had contacted during the Term or introduced to the Company during the Term, if such Tail Financing
is consummated at any time within the 12-month period following the expiration or termination of this Agreement. Within 30 calendar
days of the expiration or termination of this Agreement, Wainright will provide the Company with a list of investors who are subject
to this Paragraph A.4 (the “Tail Investors”). Wainright will only be entitled to compensation in connection
with a Tail Financing if a Tail Investor is included on such list.

 

		5.	Right of First Refusal. If, from the date hereof until the 10-month anniversary following
each Closing, the Company or any of its subsidiaries (a) decides to finance or refinance any indebtedness using a manager or agent,
Wainwright (or any affiliate designated by Wainwright) shall have the right to act as sole book-runner, sole manager, sole placement
agent or sole agent with respect to such financing or refinancing; or (b) decides to raise funds by means of a public offering
(including at-the-market facility) or a private placement or any other capital-raising financing of equity or equity-linked securities
using an underwriter or placement agent, Wainwright (or any affiliate designated by Wainwright) shall have the right to act as
sole book-running manager, sole underwriter or sole placement agent for such financing. If Wainwright or one of its affiliates
decides to accept any such engagement, the agreement governing such engagement will contain, among other things, provisions for
customary fees for transactions of similar size and nature and the provisions of this Agreement, including indemnification, which
are appropriate to such a transaction. For purposes of clarity, in the event that a Closing does not occur during the Term, Wainwright
will not be entitled to the Right of First Refusal contained in this Paragraph A.5.

 

    	2

    

    

 

B.       Term
and Termination of Engagement; Exclusivity. The term of Wainwright’s exclusive engagement will begin on the date hereof
and end (6) six months thereafter (the “Term”). Notwithstanding anything to the contrary contained herein, the
Company agrees that the provisions relating to the payment of fees, reimbursement of expenses, right of first refusal, tail, indemnification
and contribution, confidentiality, conflicts, independent contractor and waiver of the right to trial by jury will survive any
termination or expiration of this Agreement. Notwithstanding anything to the contrary contained herein, the Company has the right
to terminate the Agreement for cause in compliance with FINRA Rule 5110(f)(2)(D)(ii). The exercise of such right of termination
for cause eliminates the Company’s obligations with respect to the provisions relating to the tail fees and right of first
refusal. Notwithstanding anything to the contrary contained in this Agreement, in the event that an Offering pursuant to this Agreement
shall not be carried out for any reason whatsoever during the Term, the Company shall be obligated to pay to Wainwright up to $45,000
of its actual and accountable out-of-pocket expenses related to an Offering (including the fees and disbursements of Wainwright’s
legal counsel), and, if applicable, for electronic road show service used in connection with an Offering. During Wainwright’s
engagement hereunder, except with regard to Excluded Investors: (i) the Company will not, and will not permit its representatives
to, other than in coordination with Wainwright, contact or solicit institutions, corporations or other entities or individuals
as potential purchasers of the Securities in a transaction primarily for the purpose of raising capital and (ii) the Company will
not pursue any financing transaction which would be in lieu of an Offering, except for any transaction with an Excluded Investor.
Furthermore, the Company agrees that during Wainwright’s engagement hereunder, all inquiries, whether direct or indirect,
from prospective investors will be referred to Wainwright. Additionally, except as set forth hereunder, the Company represents,
warrants and covenants that no brokerage or finder’s fees or commissions are or will be payable by the Company or any subsidiary
of the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other third-party
with respect to any Offering.

 

C.       Information;
Reliance. The Company shall furnish, or cause to be furnished, to Wainwright all information reasonably requested by Wainwright
for the purpose of rendering services hereunder and conducting due diligence (all such information being the “Information”).
In addition, the Company agrees to make available to Wainwright upon reasonable request from time to time the officers, directors,
accountants, counsel and other advisors of the Company. The Company recognizes and confirms that Wainwright (a) will use and rely
on the Information, including any documents provided to investors in each Offering (the “Offering Documents”)
which shall include any Purchase Agreement (as defined hereunder), and on information available from generally recognized public
sources in performing the services contemplated by this Agreement without having independently verified the same; (b) does not
assume responsibility for the accuracy or completeness of the Offering Documents or the Information and such other information,
except for any Information furnished in writing to the Company by Wainwright specifically for inclusion in the Offering Documents
(Wainwright’s Information”); and (c) will not make an appraisal of any of the assets or liabilities of the Company.
Upon reasonable request, the Company will meet with Wainwright or its representatives to discuss all information relevant for disclosure
in the Offering Documents and will cooperate in any investigation undertaken by Wainwright thereof, including any document included
or incorporated by reference therein. At each Offering, at the request of Wainwright, the Company shall deliver such legal letters
(including, without limitation, negative assurance letters), opinions, comfort letters, officers’ and secretary certificates
and good standing certificates, all in form and substance satisfactory to Wainwright and its counsel as is customary for such Offering.
Wainwright shall be a third party beneficiary of any representations, warranties, covenants and closing conditions made by the
Company in any Offering Documents, including representations, warranties, covenants and closing conditions made to any investor
in an Offering.

 

    	3

    

    

 

D.       Related
Agreements. At each Offering, the Company shall enter into the following additional agreements:

 

		1.	Underwritten Offering. If an Offering is an underwritten Offering, the Company and Wainwright
shall enter into a customary underwriting agreement in form and substance satisfactory to Wainwright and its counsel.

 

		2.	Best Efforts Offering. If an Offering is on a best efforts basis, the sale of Securities
to the investors in the Offering will be evidenced by a purchase agreement (“Purchase Agreement”) between the
Company and such investors in a form reasonably satisfactory to the Company and Wainwright. Wainwright shall be a third party beneficiary
with respect to the representations and warranties included in the Purchase Agreement. Prior to the signing of any Purchase Agreement,
officers of the Company with responsibility for financial affairs will be available to answer inquiries from prospective investors.

 

		3.	Escrow, Settlement and Closing. If each Offering is not settled via delivery versus payment
(“DVP”), the Company and Wainwright shall enter into an escrow agreement with a third party escrow agent pursuant
to which Wainwright’s compensation and expenses shall be paid from the gross proceeds of the Securities sold. If the Offering
is settled in whole or in part via DVP, Wainwright shall arrange for its clearing agent to provide the funds to facilitate such
settlement. The Company shall pay Wainwright closing costs, which shall also include the reimbursement of the out-of-pocket cost
of the escrow agent or clearing agent, as applicable, which closing costs shall not exceed $12,900 in the aggregate.

 

    	4

    

    

 

		4.	FINRA Amendments. Notwithstanding anything herein to the contrary, in the event that Wainwright
determines that any of the terms provided for hereunder shall not comply with a FINRA rule, including but not limited to FINRA
Rule 5110, then the Company shall agree to amend this Agreement (or include such revisions in the final underwriting agreement)
in writing upon the request of Wainwright to comply with any such rules; provided that any such amendments shall not provide for
terms that are less favorable to the Company than are reflected in this Agreement.

 

E.       Confidentiality.
In the event of the consummation or public announcement of any Offering, Wainwright shall have the right to disclose its participation
in such Offering, including, without limitation, the Offering at its cost of “tombstone” advertisements in financial
and other newspapers and journals.

 

F.       Indemnity.

 

		1.	In connection with the Company’s engagement of Wainwright hereunder, the Company hereby agrees
to indemnify and hold harmless Wainwright and its affiliates, and the respective controlling persons, directors, officers, members,
shareholders, agents and employees of any of the foregoing (collectively the “Indemnified Persons”), from and
against any and all claims, actions, suits, proceedings (including those of shareholders), damages, liabilities and expenses incurred
by any of them (including the reasonable fees and expenses of counsel), as incurred, whether or not the Company is a party thereto
(collectively a “Claim”), that are (A) related to or arise out of (i) any actions taken or omitted to be taken
(including any untrue statements made or any statements omitted to be made) by the Company, or (ii) any actions taken or omitted
to be taken by any Indemnified Person in connection with the Company’s engagement of Wainwright, or (B) otherwise relate
to or arise out of Wainwright’s activities on the Company’s behalf under Wainwright’s engagement, and the Company
shall reimburse any Indemnified Person for all expenses (including the reasonable fees and expenses of counsel) as incurred by
such Indemnified Person in connection with investigating, preparing or defending any such claim, action, suit or proceeding, whether
or not in connection with pending or threatened litigation in which any Indemnified Person is a party. The Company will not, however,
be responsible for any Claim that is finally judicially determined to have resulted from the gross negligence or willful misconduct
of any person seeking indemnification for such Claim or for any Claims arising from Wainwright’s Information. The Company
further agrees that no Indemnified Person shall have any liability to the Company for or in connection with the Company’s
engagement of Wainwright except for any Claim incurred by the Company as a result of such Indemnified Person’s gross negligence
or willful misconduct.

 

		2.	The Company further agrees that it will not, without the prior written consent of Wainwright, settle,
compromise or consent to the entry of any judgment in any pending or threatened Claim in respect of which indemnification may be
sought hereunder (whether or not any Indemnified Person is an actual or potential party to such Claim), unless such settlement,
compromise or consent includes an unconditional, irrevocable release of each Indemnified Person from any and all liability arising
out of such Claim.

 

    	5

    

    

 

		3.	Promptly upon receipt by an Indemnified Person of notice of any complaint or the assertion or institution
of any Claim with respect to which indemnification is being sought hereunder, such Indemnified Person shall notify the Company
in writing of such complaint or of such assertion or institution but failure to so notify the Company shall not relieve the Company
from any obligation it may have hereunder, except and only to the extent such failure materially prejudices the Company. If the
Company is requested by such Indemnified Person, the Company will assume the defense of such Claim, including the employment of
counsel for such Indemnified Person and the payment of the fees and expenses of such counsel, provided, however, that such counsel
shall be satisfactory to the Indemnified Person and provided further that if the legal counsel to such Indemnified Person reasonably
determines that the use of counsel chosen by the Company to represent the Indemnified Person would present such counsel with a
conflict of interest or if the defendant in, or target of, any such Claim, includes an Indemnified Person and the Company, and
legal counsel to such Indemnified Person reasonably concludes that there may be legal defenses available to it or other Indemnified
Persons different from or in addition to those available to the Company, such Indemnified Person will employ its own separate counsel
(including local counsel, if necessary) to represent or defend him, her or it in any such Claim and the Company shall pay the reasonable
fees and expenses of such counsel. If such Indemnified Person does not request that the Company assume the defense of such Claim,
such Indemnified Person will employ its own separate counsel (including local counsel, if necessary) to represent or defend him,
her or it in any such Claim and the Company shall pay the reasonable fees and expenses of such counsel. Notwithstanding anything
herein to the contrary, if the Company fails timely or diligently to defend, contest, or otherwise protect against any Claim, the
relevant Indemnified Person shall have the right, but not the obligation, to defend, contest, compromise, settle, assert crossclaims,
or counterclaims or otherwise protect against the same, and shall be fully indemnified by the Company therefor, including without
limitation, for the reasonable fees and expenses of its counsel and all amounts paid as a result of such Claim or the compromise
or settlement thereof. In addition, with respect to any Claim in which the Company assumes the defense, the Indemnified Person
shall have the right to participate in such Claim and to retain his, her or its own counsel therefor at his, her or its own expense.

 

		4.	The Company agrees that if any indemnity sought by an Indemnified Person hereunder is held by a
court to be unavailable for any reason then (whether or not Wainwright is the Indemnified Person), the Company and Wainwright shall
contribute to the Claim for which such indemnity is held unavailable in such proportion as is appropriate to reflect the relative
benefits to the Company, on the one hand, and Wainwright on the other, in connection with Wainwright’s engagement referred
to above, subject to the limitation that in no event shall the amount of Wainwright’s contribution to such Claim exceed the
amount of fees actually received by Wainwright from the Company pursuant to Wainwright’s engagement. The Company hereby agrees
that the relative benefits to the Company, on the one hand, and Wainwright on the other, with respect to Wainwright’s engagement
shall be deemed to be in the same proportion as (a) the total value paid or proposed to be paid or received by the Company pursuant
to the applicable Offering (whether or not consummated) for which Wainwright is engaged to render services bears to (b) the fee
paid or proposed to be paid to Wainwright in connection with such engagement.

 

    	6

    

    

 

		5.	The Company’s indemnity, reimbursement and contribution obligations under this Agreement
(a) shall be in addition to, and shall in no way limit or otherwise adversely affect any rights that any Indemnified Person may
have at law or at equity and (b) shall be effective whether or not the Company is at fault in any way.

 

G.       Limitation
of Engagement to the Company. The Company acknowledges that Wainwright has been retained only by the Company, that Wainwright
is providing services hereunder as an independent contractor (and not in any fiduciary or agency capacity) and that the Company’s
engagement of Wainwright is not deemed to be on behalf of, and is not intended to confer rights upon, any shareholder, owner or
partner of the Company or any other person not a party hereto as against Wainwright or any of its affiliates, or any of its or
their respective officers, directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section 20
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), employees or agents. Unless otherwise
expressly agreed in writing by Wainwright, no one other than the Company is authorized to rely upon this Agreement or any other
statements or conduct of Wainwright, and no one other than the Company is intended to be a beneficiary of this Agreement. The Company
acknowledges that any recommendation or advice, written or oral, given by Wainwright to the Company in connection with Wainwright’s
engagement is intended solely for the benefit and use of the Company’s management and directors in considering a possible
Offering, and any such recommendation or advice is not on behalf of, and shall not confer any rights or remedies upon, any other
person or be used or relied upon for any other purpose. Wainwright shall not have the authority to make any commitment binding
on the Company. The Company, in its sole discretion, shall have the right to reject any investor introduced to it by Wainwright.

 

H.       Limitation
of Wainwright’s Liability to the Company. Wainwright and the Company further agree that neither Wainwright nor any of
its affiliates or any of its or their respective officers, directors, controlling persons (within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act), employees or agents shall have any liability to the Company, its security
holders or creditors, or any person asserting claims on behalf of or in the right of the Company (whether direct or indirect, in
contract, tort, for an act of negligence or otherwise) for any losses, fees, damages, liabilities, costs, expenses or equitable
relief arising out of or relating to this Agreement or the services rendered hereunder, except for losses, fees, damages, liabilities,
costs or expenses that arise out of or are based on any action of or failure to act by Wainwright and that are finally judicially
determined to have resulted solely from the gross negligence or willful misconduct of Wainwright.

 

    	7

    

    

 

I.       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements
made and to be fully performed therein. Any disputes that arise under this Agreement, even after the termination of this Agreement,
will be heard only in the state or federal courts located in the City of New York, State of New York. The parties hereto expressly
agree to submit themselves to the jurisdiction of the foregoing courts in the City of New York, State of New York. The parties
hereto expressly waive any rights they may have to contest the jurisdiction, venue or authority of any court sitting in the City
and State of New York. In the event Wainwright or any Indemnified Person is successful in any action, or suit against the Company,
arising out of or relating to this Agreement, the final judgment or award entered shall be entitled to have and recover from the
Company the costs and expenses incurred in connection therewith, including its reasonable attorneys’ fees. Any rights to
trial by jury with respect to any such action, proceeding or suit are hereby waived by Wainwright and the Company.

 

J.       Notices.
All notices hereunder will be in writing and sent by certified mail, hand delivery, overnight delivery, fax or e-mail, if sent
to Wainwright, at the address set forth on the first page hereof, e-mail: notices@hcwco.com, Attention: Head of Investment Banking,
and if sent to the Company, to the address set forth on the first page hereof, e-mail: [___], Attention: Executive Chairman. Notices
sent by certified mail shall be deemed received five days thereafter, notices sent by hand delivery or overnight delivery shall
be deemed received on the date of the relevant written record of receipt, notices delivered by fax shall be deemed received as
of the date and time printed thereon by the fax machine and notices sent by e-mail shall be deemed received as of the date and
time they were sent.

 

K.       Conflicts.
The Company acknowledges that Wainwright and its affiliates may have and may continue to have investment banking and other relationships
with parties other than the Company pursuant to which Wainwright may acquire information of interest to the Company. Wainwright
shall have no obligation to disclose such information to the Company or to use such information in connection with any contemplated
transaction.

 

L.       Anti-Money
Laundering. To help the United States government fight the funding of terrorism and money laundering, the federal laws of the
United States require all financial institutions to obtain, verify and record information that identifies each person with whom
they do business. This means Wainwright must ask the Company for certain identifying information, including a government-issued
identification number (e.g., a U.S. taxpayer identification number) and such other information or documents that Wainwright considers
appropriate to verify the Company’s identity, such as certified articles of incorporation, a government-issued business license,
a partnership agreement or a trust instrument.

 

    	8

    

    

 

M.       Miscellaneous.
The Company represents and warrants that it has all requisite power and authority to enter into and carry out the terms and provisions
of this Agreement and the execution, delivery and performance of this Agreement does not breach or conflict with any agreement,
document or instrument to which it is a party or bound. This Agreement shall not be modified or amended except in writing signed
by Wainwright and the Company. This Agreement shall be binding upon and inure to the benefit of both Wainwright and the Company
and their respective assigns, successors, and legal representatives. This Agreement constitutes the entire agreement of Wainwright
and the Company with respect to the subject matter hereof and supersedes any prior agreements with respect to the subject matter
hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will
not affect such provision in any other respect, and the remainder of the Agreement shall remain in full force and effect. This
Agreement may be executed in counterparts (including facsimile or electronic counterparts), each of which shall be deemed an original
but all of which together shall constitute one and the same instrument.

 

*********************

 

 

 

 

 

 

    	9

    

    

 

In acknowledgment that the foregoing correctly sets forth the understanding
reached by Wainwright and the Company, please sign in the space provided below, whereupon this letter shall constitute a binding
Agreement as of the date indicated above.

 

	 	 	Very truly yours,
	 	 	 
	 	 	H.C. WAINWRIGHT & CO., LLC
	 	 	 
	 	 	By:  	 
	 	 	 	Name:
	 	 	 	Title:
	 	 	 	Date:

 

 

Accepted and Agreed:

 

Seneca Biopharma, Inc.

 

	By:  	 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

 

 

 

 

    	10

    

    

 

 

 

SCHEDULE A

EXCLUDED INVESTORS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

430 Park Avenue | New York, New York 10022 | 212.356.0500 | www.hcwco.com

Member: FINRA/SIPC

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