Document:

Exhibit

Exhibit 10.17.2

EXTENSION AGREEMENT
This EXTENSION AGREEMENT (this “Agreement”), dated as of April 9, 2019, is entered into among AMERICAN WATER CAPITAL CORP., a Delaware corporation (“AWCC” or the “Borrower”), the Lenders party hereto, and Wells Fargo Bank, National Association, as administrative agent for the Lenders (the “Administrative Agent”).
RECITALS
AWCC, the Lenders and the Administrative Agent are parties to that certain Second Amended and Restated Credit Agreement, dated as of March 21, 2018 (the “Credit Agreement”).  Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Credit Agreement.
AWCC has requested a one-year extension of the Termination Date pursuant to Section 2.06(b) of the Credit Agreement and each Lender executing this Agreement as an “Extending Lender” (each, an “Extending Lender”) has approved such request pursuant to Section 2.06(b) of the Credit Agreement. 
NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Extension.  Pursuant to Section 2.06(b) of the Credit Agreement, the Borrower requested an extension of the Termination Date for a period of one year from March 21, 2023 to March 21, 2024 (the “Extension”).  As of the date hereof, the Extending Lenders constituting the Required Lenders have agreed to extend (such agreement evidenced by their execution of this Agreement) the Termination Date as to the Extending Lenders for a period of one year from March 21, 2023 to March 21, 2024.  Subject to the satisfaction of the conditions in Section 2 hereof, the Termination Date as to the Extending Lenders is hereby extended to March 21, 2024.  The Termination Date as to each Non-Extending Lender remains unchanged, subject to the right of the Borrower pursuant to Section 2.06(e) of the Credit Agreement to require any Non-Extending Lender to assign to one or more Eligible Assignees all of its rights and obligations under the Credit Agreement.
2.Conditions to Effectiveness.  The Extension set forth in Section 1 shall become effective as of the date (the “Effective Date”) on which each of the following conditions precedent shall have been satisfied:
a.    The Administrative Agent shall have received counterparts of this Agreement duly executed by AWCC, the Parent (solely for purposes of acknowledging Section 3), the Administrative Agent and Extending Lenders constituting the Required Lenders.
b.    AWCC shall have paid (i) to Wells Fargo Securities, LLC (“WFS”), for the account of each Extending Lender, an extension fee equal to 0.06% of such Lender’s Commitment as of the Effective Date, (ii) the other fees and reasonable expenses required to be paid on or prior to the Effective Date under that certain fee letter, dated as of March 25, 2019, among AWCC, WFS and Wells Fargo Bank, National Association and (iii) all other fees and reasonable expenses of the Administrative Agent and the Lenders required under the Credit Agreement and any other Loan 

Document to be paid on or prior to the Effective Date (including reasonable fees and expenses of counsel) in connection with this Agreement.
c.    The Administrative Agent shall have received a certificate of a Responsible Officer of AWCC, dated as of the Effective Date, confirming satisfaction of the conditions set forth in Sections 3.02(b) and 3.02(c) of the Credit Agreement (with all references in such Sections to a Borrowing or Swing Line Borrowing being deemed to be references to the extension of the Termination Date).
d.    The Administrative Agent shall have received copies (certified to be true and complete by a Responsible Officer of the Borrower) of all governmental approvals (if any) required for each of the Borrower and the Parent in connection with the Extension.
3.Reaffirmation.  The Parent hereby confirms and agrees that after giving effect to this Agreement and the Extension, the Obligations owing by the Borrower under the Credit Agreement constitute “Debt” under the Support Agreement.  The Parent acknowledges that the Administrative Agent and the Extending Lenders would not enter into this Agreement in the absence of the acknowledgment and confirmation contained herein.
4.Full Force and Effect.  Except as expressly modified hereby, the Credit Agreement shall continue in full force and effect in accordance with the provisions thereof on the date hereof.  As used in the Credit Agreement, “hereinafter,” “hereto,” “hereof,” and words of similar import shall, unless the context otherwise requires, mean the Credit Agreement after giving effect to this Agreement.  Any reference to the Credit Agreement or any of the other Loan Documents herein or in any such documents shall refer to the Credit Agreement and Loan Documents as modified hereby.  This Agreement is limited as specified and shall not constitute or be deemed to constitute an amendment, modification or waiver of any provision of the Credit Agreement except as expressly set forth herein.  This Agreement shall constitute a Loan Document under the terms of the Credit Agreement.
5.Severability of Provisions.  Any provision in this Agreement that is held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction.
6.Successors and Assigns.  The terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto.
7.Expenses.  The Borrower agrees on demand (i) to pay all reasonable fees and expenses of counsel to the Administrative Agent, and (ii) to reimburse the Administrative Agent for all reasonable out-of-pocket costs and expenses, in each case, in connection with the preparation, negotiation, execution and delivery of this Agreement.
8.Applicable Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of New York.

9.Construction.  The headings of the various sections and subsections of this Agreement have been inserted for convenience only and shall not in any way affect the meaning or construction of any of the provisions hereof.
10.Counterparts; Electronic Delivery.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same instrument.  Delivery by any party to this Agreement of its signatures hereon through facsimile or other electronic image file (including .pdf) may be relied upon as if this Agreement were physically delivered with an original hand-written signature of such party and shall be binding on such party for all purposes.
[remainder of page intentionally blank]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers as of the date first above written.

AMERICAN WATER CAPITAL CORP.
		
	By:
	/s/ James Merante    

		
	Name:
	James Merante

		
	Title:
	Vice President and Treasurer

Acknowledged and agreed solely as to Section 3 of this Agreement: 

AMERICAN WATER WORKS COMPANY, INC.

By:    /s/ James Merante            
Name:    James Merante
Title:    Vice President and Treasurer

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, an LC Issuing Bank, a Swing Line Bank and an Extending Lender
By:    /s/ Sheila M. Shaffer        
Name:    Sheila M. Shaffer
		
	Title:
	Director

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

JPMORGAN CHASE BANK, N.A., as an Extending Lender
By:    /s/ Nancy R. Barwig    
Name:    Nancy R. Barwig
		
	Title:
	Executive Director

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

MIZUHO BANK, LTD., as an Extending Lender
By:    /s/ Donna DeMagistris    
Name:    Donna DeMagistris
		
	Title:
	Authorized Signatory

 

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

PNC BANK, NATIONAL ASSOCIATION, as an Extending Lender
By:    /s/ Timothy J. Hornickle    
Name:    Timothy J. Hornickle
		
	Title:
	Senior Vice President

 

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

U.S. BANK NATIONAL ASSOCIATION, as an Extending Lender
By:    /s/ James O’Shaughnessy    
Name:    James O’Shaughnessy
		
	Title:
	Vice President

 

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

BANK OF AMERICA, N.A., as an Extending Lender
By:    /s/ Dilcia Pena Hill    
Name:    Dilcia P. Hill
		
	Title:
	Senior Vice President

 

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

ROYAL BANK OF CANADA, as an Extending Lender
By:    /s/ Justin Painter    
Name:    Justin Painter
		
	Title:
	Authorized Signatory

 

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

TD BANK, N.A., as an Extending Lender
By:    /s/ Jason Siewert    
Name:    Jason Siewert
		
	Title:
	Senior Vice President

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

MUFG BANK, LTD., formerly known as THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as an Extending Lender
By:    /s/ Chi-Cheng Chen    
Name:    Chi-Cheng Chen
		
	Title:
	Director

 

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

BRANCH BANKING AND TRUST COMPANY, as an Extending Lender
By:    /s/ Trevor H. Williams    
Name:    Trevor H. Williams
		
	Title:
	Assistant Vice President

 

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

REGIONS BANK, as an Extending Lender
By:    /s/ Tedrick Tarver    
Name:    Tedrick Tarver
		
	Title:
	Director

 

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

COBANK, ACB, as an Extending Lender
By:    /s/ Bryan Ervin    
Name:    Bryan Ervin
		
	Title:
	Vice President

 

SIGNATURE PAGE TO
EXTENSION AGREEMENT 

THE BANK OF NEW YORK MELLON, as an Extending Lender
By:    /s/ Richard K. Fronapfel, Jr.    
Name:    Richard K. Fronapfel, Jr.
		
	Title:
	Director

SIGNATURE PAGE TO
EXTENSION AGREEMENTExhibit 10.1

 

Execution Copy

 

XBiotech Inc.

 

EQUITY DISTRIBUTION AGREEMENT

 

April 30, 2019

 

PIPER JAFFRAY & CO.

U.S. Bancorp Center

800 Nicollet Mall

Minneapolis, Minnesota 55402

 

Ladies and Gentlemen:

 

As further set forth in this agreement (this
“Agreement”), XBiotech Inc., a company incorporated under the laws of the Province of British Columbia
(the “Company”), proposes to issue and sell from time to time through Piper Jaffray & Co. (the “Agent”),
as sales agent, the Company’s common shares, no par value per share (the “Common Stock”) (such
shares of Common Stock to be sold pursuant to this Agreement, the “Shares”), on terms set forth herein.
Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitation set forth
in Section 2 of this Agreement on the number of Shares issued and sold under this Agreement shall be the sole responsibility
of the Company, and the Agent shall have no obligation in connection with such compliance.

 

The Company hereby confirms its agreement with
the Agent with respect to the sale of the Shares.

 

1.       Representations
and Warranties of the Company.

 

(a)       The
Company represents and warrants to, and agrees with, the Agent that as of the date of this Agreement, each Representation Date,
each date on which a Placement Notice (as defined in Section 2(a)(i) below) is given, and any date on which Shares are sold hereunder
as follows:

 

(i)       Registration
Statement and Prospectus. The Company has filed or will file, in accordance with the provisions of the Securities Act of 1933,
as amended, and the rules and regulations thereunder (collectively, the “Securities Act”), with the Securities
and Exchange Commission (the “Commission”) a registration statement on Form S-3, including a base prospectus,
relating to certain securities, including the Common Stock, to be issued from time to time by the Company, and which incorporates
by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder (collectively, the “Exchange Act”). The
Company has prepared a prospectus supplement to the base prospectus included as part of such registration statement specifically
relating to the Shares (the “Prospectus Supplement”). The Company has furnished or, following the date
that such registration statement is declared effective, will furnish, to the Agent, for use by Agent, copies of the prospectus
included as part of such registration statement, as supplemented by the Prospectus Supplement, relating to the Shares. Except where
the context otherwise requires, such registration statement, as amended when it became or becomes effective (the “Effective
Time”), including all documents filed as part thereof or incorporated by reference therein, and including any information
contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities
Act (a “Rule 424(b) Registration Statement”) or deemed to be a part of such registration statement pursuant
to Rule 430B or 462(b) of the Securities Act, is herein called the “Registration Statement.” The
base prospectus, including all documents incorporated therein by reference, included in the Registration Statement, as it may be
supplemented by the Prospectus Supplement, in the form in which such prospectus and/or Prospectus Supplement have most recently
been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act, together with any “issuer
free writing prospectus,” as defined in Rule 433 under the Securities Act (“Rule 433”), relating
to the Shares, if any, that (i) is required to be filed with the Commission by the Company or (ii) is exempt from filing pursuant
to Rule 433(d)(5)(i), in each case in the form filed or required to be filed with the Commission or, if not required to be filed,
in the form retained in the Company’s records pursuant to Rule 433(g), is herein called the “Prospectus.”
Any reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer
to and include the documents incorporated by reference therein, and any reference herein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include
the filing after the execution hereof of any document with the Commission deemed to be incorporated by reference therein. For purposes
of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall
be deemed to include any copy filed with the Commission pursuant the Electronic Data Gathering Analysis and Retrieval system (“EDGAR”).

 

     

     

    

 

(ii)        Continuing
Effectiveness of Registration Statement. The Registration Statement and any Rule 462(b) Registration Statement have been
declared effective by the Commission under the Securities Act. The Company has complied, to the Commission’s satisfaction,
with all requests of the Commission for additional or supplemental information. No stop order suspending the effectiveness of the
Registration Statement or any Rule 462(b) Registration Statement is in effect and no proceedings for such purpose have been
instituted or are pending or, to the knowledge of the Company, contemplated or threatened by the Commission. The Company meets
the requirements for use of Form S-3 under the Securities Act. The sale of the Shares hereunder meets the requirements of General
Instruction I.B.1./I.B.6 of Form S-3.

 

(iii)       No
Material Misstatements or Omissions. The Prospectus when filed complied, and as amended or supplemented, if applicable, will
comply in all material respects with the Securities Act. Each of the Registration Statement, any Rule 462(b) Registration
Statement, the Prospectus and any post-effective amendments or supplements thereto, at the time it became effective or its date,
as applicable, and as of each Settlement Date (as defined in Section 2(a)(vii) below), complied in all material respects with the
Securities Act, and as of each effective date and each Settlement Date, did not and will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.
The Prospectus, as amended or supplemented, as of its date, did not and, as of each Settlement Date, will not contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. The representations and warranties set forth in the two immediately
preceding sentences do not apply to statements in or omissions from the Registration Statement, any Rule 462(b) Registration
Statement, or any post-effective amendment thereto, or the Prospectus, or any amendments or supplements thereto, made in reliance
upon and in conformity with information relating to the Agent furnished to the Company in writing by the Agent expressly for use
therein.

 

     

     

    

 

(iv)       Eligible
Issuer. The Company is not an “ineligible issuer” (as defined in Rule 405 under the Securities Act) as of the eligibility
determination date for purposes of Rules 164 and 433 under the Securities Act with respect to the offering of the Shares contemplated
by the Registration Statement; the parties hereto agree and understand that the content of any and all “road shows”
(as defined in Rule 433 under the Securities Act) related to the offering of the Shares contemplated hereby is solely the property
of the Company.

 

(v)       Emerging
Growth Company. From the time of initial filing of the Registration Statement to the Commission through the date hereof, the
Company has been and is an “emerging growth company,” as defined in Section 2(a) of the Securities Act.

 

(vi)       Financial
Statements. The historical financial statements (including the related notes and supporting schedules) to be included or incorporated
by reference, in the Registration Statement, and the Prospectus comply as to form in all material respects with the applicable
requirements of Regulation S-X under the Securities Act (“Regulation S-X”) and present fairly in all
material respects the financial condition, results of operations and cash flows of the entities purported to be shown thereby at
the dates and for the periods indicated and have been prepared in conformity with generally accepted accounting principles in the
United States applied on a consistent basis throughout the periods involved. All disclosures contained in the Registration Statement
and Prospectus regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the
Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the Securities Act, to the extent applicable.
There are no financial statements (historical or pro forma) that are required to be included in the Registration Statement or the
Prospectus that are not so included as required. The interactive data in eXtensible Business Reporting Language (“XBRL”)
included or incorporated by reference in the Registration Statement and the Prospectus fairly present the information called for
in all material respects and have been prepared in accordance with the Commission’s rules and guidelines applicable thereto.

 

(vii)No Off-Balance Sheet Transactions.There
are no transactions, arrangements and other relationships between and/or among the Company, and/or, to the knowledge of the Company,
any of its affiliates and any unconsolidated entity, including, but not limited to, any structural finance, special purpose or
limited purpose entity (each, an “Off-Balance Sheet Transaction”) that could reasonably be expected to
affect materially the Company’s liquidity or the availability of or requirements for its capital resources, including those
Off Balance Sheet Transactions described in the Commission’s Statement about Management’s Discussion and Analysis of
Financial Conditions and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), and are required to be described in the
Prospectus, which have not been described as required.

 

     

     

    

 

(viii)       Auditor
Independence. Ernst & Young LLP, who have certified certain financial statements of the Company and its consolidated subsidiaries
(the “Subsidiaries”), and whose report appears in the Registration Statement and the Prospectus, are
independent public accountants as required by the Securities Act and the Public Accounting Oversight Board.

 

(ix)       No
Material Adverse Effect. The Company and each of its Subsidiaries (a complete list of the Subsidiaries is included as Schedule
4 hereto) has been duly organized, is validly existing as a corporation and is in good standing under the laws of its respective
jurisdiction of organization. The Company and each of its Subsidiaries are, and will be, duly licensed or qualified as a foreign
corporation for transaction of business and in good standing under the laws of each other jurisdiction in which their respective
ownership or lease of property or the conduct of their respective businesses requires such license or qualification, and have all
corporate power and authority necessary to own or hold their respective properties and to conduct their respective businesses as
described in the Registration Statement and the Prospectus, except where the failure to be so qualified or in good standing or
have such power or authority would not, individually or in the aggregate, have a material adverse effect or would reasonably be
expected to have a material adverse effect on or affecting the assets, business, operations, earnings, properties, condition (financial
or otherwise), prospects, stockholders’ equity or results of operations of the Company and the Subsidiaries taken as a whole,
or prevent or materially interfere with the performance of this Agreement or the consummation of the transactions contemplated
hereby (a “Material Adverse Effect”). The Company does not own or control, directly or indirectly, any
corporation, association or other entity other than the subsidiaries listed in Exhibit 21.1 to the Company’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2018, as amended by that certain Amendment No. 1 on Form 10-K/A, filed
with the Commission on March 15, 2019, except for subsidiaries that in the aggregate would not constitute a “significant
subsidiary” (as defined in Rule 405 under the Securities Act). None of the Subsidiaries is a “significant subsidiary”
(as defined in Rule 405 under the Securities Act).

 

(x)       Capitalization.
The Company has an authorized capitalization as set forth in each of the Registration Statement and the Prospectus, and all of
the issued shares of the Company have been duly authorized and validly issued, are fully paid and non-assessable, conform in all
material respects to the description thereof contained in the Registration Statement and the Prospectus and were not issued in
violation of any preemptive right, resale right, right of first refusal or similar right. All of the Company’s options, warrants
and other rights to purchase or exchange any securities for shares of the Company’s capital stock have been duly authorized
and validly issued, and conform in all material respects to the description thereof contained in the Registration Statement and
the Prospectus. All of the issued shares of capital stock or other ownership interest of each Subsidiary have been duly authorized
and validly issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of all
liens, encumbrances, equities or claims, except for such liens, encumbrances, equities or claims as would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

     

     

    

 

(xi)       Due
Authorization, Valid Issuance and Non-Assessiblity of Shares. The Shares to be issued and sold by the Company to the Agent
hereunder have been duly authorized and, upon payment and delivery in accordance with this Agreement, will be validly issued, fully
paid and non-assessable, will conform in all material respects to the description thereof contained in the Registration Statement
and the Prospectus, will be issued in compliance with federal and state securities laws and will be free of statutory and contractual
preemptive rights, rights of first refusal and similar rights.

 

(xii)       Authority
to Enter into this Agreement. The Company has all requisite corporate power and authority to execute, deliver and perform its
obligations under this Agreement. This Agreement has been duly and validly authorized, executed and delivered by the Company.

 

(xiii)       Non-Contravention.
The issue and sale of the Shares, the execution, delivery and performance of this Agreement by the Company, the consummation of
the transactions contemplated hereby and the application of the proceeds from the sale of the Shares as described under “Use
of Proceeds” in the Registration Statement and the Prospectus will not (i) conflict with or result in a breach or violation
of any of the terms or provisions of, impose any lien, charge or encumbrance upon any property or assets of the Company and its
Subsidiaries, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement, license, lease or other agreement
or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound or to which any of the property or assets of the Company or any of its Subsidiaries is subject; (ii) result in any violation
of the provisions of the articles of association, charter or by-laws (or similar organizational documents) of the Company or any
of its Subsidiaries; or (iii) result in any violation of any statute or any judgment, order, decree, rule or regulation of
any court or governmental agency or body having jurisdiction over the Company or any of its Subsidiaries or any of their properties
or assets, except, with respect to clauses (i) and (iii), for such conflicts, breaches, violations, liens, charges, encumbrances
or defaults that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(xiv)       No
Consent or Approval Required. No consent, approval, authorization or order of, or filing, registration or qualification with,
any court or governmental agency or body having jurisdiction over the Company or any of its Subsidiaries or any of their respective
properties or assets is required for the issue and sale of the Shares, the execution, delivery and performance of this Agreement
by the Company, the consummation of the transactions contemplated hereby, the application of the proceeds from the sale of the
Shares as described under “Use of Proceeds” in the Registration Statement and the Prospectus, except for (i) the registration
of the Shares under the Securities Act; (ii) such consents, approvals, authorizations, orders, filings, registrations or qualifications
as may be required under the Exchange Act, and applicable state or foreign securities laws and/or the bylaws and rules of the Financial
Industry Regulatory Authority (the “FINRA”) in connection with the sale of the Shares by the Agent; and
(iii) the inclusion of the Shares on the NASDAQ Global Market (the “Exchange”).

 

     

     

    

 

(xv)       Internal
Accounting Controls. The Company and each of its Subsidiaries maintain internal accounting controls designed to provide reasonable
assurances regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles in the United States, including, but not limited to, internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general
or specific authorization, (ii) transactions are recorded as necessary to permit preparation of the Company’s financial statements
in conformity with generally accepted accounting principles in the United States and to maintain accountability for its assets,
(iii) access to the Company’s assets is permitted only in accordance with management’s general or specific authorization,
(iv) the recorded accountability for the Company’s assets is compared with existing assets at reasonable intervals and appropriate
action is taken with respect to any differences, and (v) the interactive data in XBRL included or incorporated by reference in
the Registration Statement and the Prospectus fairly present the information called for in all material respects and are prepared
in accordance with the Commission’s rules and guidelines applicable thereto. Except as disclosed in the Registration Statement
or the Prospectus, as of the date of the most recent balance sheet of the Company and its consolidated Subsidiaries audited by
Ernst & Young LLP, there were no material weaknesses in the Company’s internal controls.

 

(xvi)       Disclosure
Controls. The Company and each of its Subsidiaries maintain disclosure controls and procedures (as such term is defined in
Rule 13a-15(e) under the Exchange Act) designed to ensure that the information required to be disclosed by the Company and its
Subsidiaries in the reports they file or submit under the Exchange Act is accumulated and communicated to management of the Company
and its Subsidiaries, including their respective principal executive officers and principal financial officers, as appropriate,
to allow timely decisions regarding required disclosure to be made, and such disclosure controls and procedures are effective in
all material respects to perform the functions for which they were established.

 

(xvii)       Critical
Accounting Policies. The section entitled “Critical Accounting Policies” incorporated by reference in the Registration
Statement and the Prospectus accurately describes in all material respects (i) the accounting policies that the Company believes
are the most important in the portrayal of the Company’s financial condition and results of operations and that require management’s
most difficult, subjective or complex judgments (“Critical Accounting Policies”); (ii) the judgments
and uncertainties affecting the application of Critical Accounting Policies; and (iii) the likelihood that materially different
amounts would be reported under different conditions or using different assumptions, and an explanation thereof.

 

     

     

    

 

(xviii)       Sarbanes-Oxley
Compliance. There is and has been no failure on the part of the Company or, to the knowledge of the Company, any of the Company’s
directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002 and the rules
and regulations promulgated in connection therewith that are applicable to the Company or its directors or officers in their capacities
as directors or officers of the Company.

 

(xix)       Exceptions.
Except as would not, in the aggregate, reasonably be expected to have a Material Adverse Effect, since the date of the latest audited
financial statements included in the Registration Statement and the Prospectus, and, except as disclosed in the Registration Statement
and the Prospectus, neither the Company nor any of its Subsidiaries has (i) sustained any loss or interference with its business
from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental
action, order or decree, (ii) issued or granted any securities (other than pursuant to employee benefit plans, qualified stock
option plans or other equity compensation plans or arrangements existing on the date hereof and disclosed in the Registration Statement
and the Prospectus (the “Specified Equity Plans”)), (iii) incurred any material liability or obligation,
direct or contingent, other than liabilities and obligations that were incurred in the ordinary course of business, (iv) entered
into any material transaction not in the ordinary course of business, or (v) declared or paid any dividend on its share capital;
and since such date, except as disclosed in the Registration Statement and the Prospectus, there has not been any change in the
share capital, long-term debt, net current assets or short-term debt of the Company or any of its Subsidiaries or any adverse change,
or any development involving a prospective adverse change, in or affecting the condition (financial or otherwise), results of operations,
shareholders’ equity, properties, management, business or prospects of the Company and its subsidiaries taken as a whole.

 

(xx)       Valid
Title. The Company and each of its Subsidiaries have good and marketable title in fee simple to all real property and good
and marketable title to all personal property owned by them, that are material to the business of the Company, in each case free
and clear of all liens, encumbrances and defects, except such liens, encumbrances and defects as do not materially affect the value
of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and
its Subsidiaries. All assets held under lease by the Company and its Subsidiaries, that are material to the business of the Company,
are held by them under valid, subsisting and enforceable leases, with such exceptions as do not materially interfere with the use
made and proposed to be made of such assets by the Company and its Subsidiaries.

 

(xxi)       Compliance
with Healthcare Laws and Regulations. The Company and, to the Company’s knowledge, its directors, officers, employees,
and agents (in their capacities as such) are, and at all times prior hereto have been, in compliance in all material respects with,
all health care laws and regulations applicable to the Company or any of its product candidates or activities, including development
and testing of pharmaceutical products, kickbacks, recordkeeping, documentation requirements, the hiring of employees (to the extent
governed by Health Care Laws), quality, safety, privacy, security, licensure, accreditation or any other aspect of developing and
testing health care or pharmaceutical products (collectively, “Health Care Laws”). The Company has not
received any written notification, correspondence or any other written or, to the Company’s knowledge, oral communication,
including notification of any pending or threatened claim, suit, proceeding, hearing, enforcement, investigation, arbitration or
other action from any governmental authority, including, without limitation, the United States Food and Drug Administration (“FDA”),
the Drug Enforcement Agency (“DEA”), the Centers for Medicare & Medicaid Services, and the U.S. Department
of Health and Human Services Office of Inspector General, of potential or actual non-compliance by, or liability of, the Company
under any Health Care Laws. To the Company’s knowledge, there are no facts or circumstances that would reasonably be expected
to give rise to liability of the Company under any Health Care Laws, except that would not individually or in the aggregate have
a Material Adverse Effect.

 

     

     

    

 

(xxii)       Intellectual
Property. The Company and its Subsidiaries own or possess the valid right to use all (i) patents, patent applications,
trademarks, trademark registrations, service marks, service mark registrations, Internet domain name registrations, copyrights,
copyright registrations, licenses, trade secret rights (“Intellectual Property Rights”) and (ii) inventions,
software, works of authorships, trademarks, service marks, trade names, databases, formulae, know how, Internet domain names and
other intellectual property (including trade secrets and other unpatented and/or unpatentable proprietary confidential information,
systems, or procedures) (collectively, “Intellectual Property Assets”) necessary to conduct their respective
businesses as currently conducted, and as proposed to be conducted and described in the Prospectus. The Company and its Subsidiaries
have not received any opinion from their legal counsel concluding that any activities of their respective businesses infringe,
misappropriate, or otherwise violate, valid and enforceable Intellectual Property Rights of any other person, and have not received
written notice of any challenge, which is still pending, by any other person to the rights of the Company and its Subsidiaries
with respect to any Intellectual Property Rights or Intellectual Property Assets owned or used by the Company or its Subsidiaries.
The Company and its Subsidiaries’ respective businesses as now conducted do not give rise to any material infringement of,
any material misappropriation of, or other material violation of, any valid and enforceable Intellectual Property Rights of any
other person. To the Company’s knowledge, all licenses for the use of the Intellectual Property Rights described in the Prospectus
are valid, binding upon, and enforceable by or against the parties thereto in accordance with their terms. The Company has complied
in all material respects with, and is not in breach nor has received any asserted or threatened claim of material breach of any
Intellectual Property license, and the Company has no knowledge of any material breach or anticipated material breach by any other
person to any Intellectual Property license to which the Company is a party. No claim has been made against the Company alleging
the infringement by the Company of any patent, trademark, service mark, trade name, copyright, trade secret, license in or other
intellectual property right or franchise right of any person. The Company has taken all reasonable steps to protect, maintain and
safeguard its Intellectual Property Rights, including the execution of appropriate nondisclosure and confidentiality agreements.
The consummation of the transactions contemplated by this Agreement will not result in the loss or impairment of or payment of
any additional amounts with respect to, nor require the consent of any other person in respect of, the Company’s right to
own, use, or hold for use any of the Intellectual Property Rights as owned, used or held for use in the conduct of the business
as currently conducted.

 

     

     

    

 

(xxiii)       Permits.
The Company and its Subsidiaries possess such valid and current certificates, authorizations or permits required by state, federal
or foreign regulatory agencies or bodies to conduct their respective businesses as currently conducted and as described the Prospectus
(“Permits”), except as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. Neither the Company nor any of its Subsidiaries is in violation of, or in default under, any of the Permits
or has received any notice of proceedings relating to the revocation or modification of, or non-compliance with, any such certificate,
authorization or permit, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. Neither the Company nor any of its Subsidiaries has received any written notice of proceedings relating to the revocation
or modification of any Permits which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding,
would reasonably be expected to result in a Material Adverse Effect. The Company has not received any written notice denying, revoking
or modifying any “approved enterprise” or “benefited enterprise” or “preferred enterprise”
status with respect to any of the Company’s facilities or operations.

 

(xxiv)       Compliance
with Applicable Laws and Regulations. Except as described in the Registration Statement and the Prospectus, as applicable,
the Company and its Subsidiaries (i) are and at all times prior hereto have been in compliance in all material respects with all
statutes, rules and regulations applicable to the ownership, testing, development, manufacture, packaging, processing, use, distribution,
marketing, advertising, labeling, promotion, sale, offer for sale, storage, import, export or disposal of any product manufactured
or distributed by the Company or any of its Subsidiaries including, without limitation the Federal Food, Drug and Cosmetic Act
(21 U.S.C. §301 et seq.), the federal Anti-Kickback Statute (42 U.S.C. §1320a-7b(b)), the Health Insurance Portability
and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act of 2009, and
the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Affordability Reconciliation
Act of 2010, the regulations promulgated pursuant to such laws, and any successor government programs and comparable state laws,
regulations relating to Good Clinical Practices and Good Laboratory Practices and all other local, state, federal, national, supranational
and foreign laws, manual provisions, policies and administrative guidance relating to the regulation of the Company or any of its
Subsidiaries (collectively, the “Applicable Laws”); (ii) have not received any written notice from any
court or arbitrator or governmental or regulatory authority or third party alleging or asserting material noncompliance with any
Applicable Laws or any licenses, exemptions, certificates, approvals, clearances, authorizations, permits, registrations and supplements
or amendments thereto required by any such Applicable Laws (“Authorizations”); (iii) possess all
material Authorizations and such Authorizations are valid and in full force and effect and are not in violation of any term of
any such Authorizations; (iv) have not received written notice of any claim, action, suit, proceeding, hearing, enforcement, investigation
arbitration or other action from any court or arbitrator or governmental or regulatory authority or third party alleging that any
product operation or activity is in violation of any Applicable Laws or Authorizations nor, to the Company’s knowledge, is
any such claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action threatened; (v) have
not received any written notice that any court or arbitrator or governmental or regulatory authority has taken, is taking or intends
to take, action to limit, suspend, materially modify or revoke any material Authorizations nor, to the Company’s knowledge,
is any such limitation, suspension, modification or revocation threatened; (vi) have filed, obtained, maintained or submitted all
material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required
by any Applicable Laws or Authorizations and that all such reports, documents, forms, notices, applications, records, claims, submissions
and supplements or amendments were complete and accurate in all material respects on the date filed (or were corrected or supplemented
by a subsequent submission); and (vii) are not a party to any corporate integrity agreements, monitoring agreements, consent decrees,
settlement orders, or similar agreements with or imposed by any governmental or regulatory authority.

 

     

     

    

 

(xxv)       Clinical
Trials. The clinical and pre-clinical trials conducted by or on behalf of or sponsored by the Company or in which the Company
has participated, that are described in the Prospectus or the results of which are referred to in the Registration Statement and
the Prospectus, as applicable, and are intended to be submitted to Regulatory Authorities and in certain cases serve as a basis
for product approval, were and, if still pending, are being conducted in all material respects in accordance with standard medical
and scientific research procedures and all applicable statutes, rules and regulations of the FDA and comparable drug regulatory
agencies outside of the United States to which it is subject (collectively, the “Regulatory Authorities”),
including, without limitation, 21 C.F.R. Parts 50, 54, 56, 58, and 312, and current Good Clinical Practices and Good Laboratory
Practices; the descriptions in the Registration Statement or the Prospectus of the results of such studies and trials are accurate
and complete in all material respects and fairly present the data derived from such trials; the Company has no knowledge of any
other trials the results of which are inconsistent with or otherwise reasonably call into question the results described or referred
to in the Registration Statement, and the Prospectus; the Company and its Subsidiaries have each operated and are currently in
compliance in all material respects with all applicable statutes, rules and regulations of the Regulatory Authorities; neither
the Company, nor any of its Subsidiaries, has received any written notices, correspondence or other written communication from
the Regulatory Authorities or any governmental authority which could reasonably be expected to lead to the termination or suspension
of any clinical or pre-clinical trials that are described in the Prospectus or the results of which are referred to in the Prospectus,
and, to the Company’s knowledge, there are no reasonable grounds for same.

 

(xxvi)       Absence
of Settlement Agreements or Undertakings. Except as disclosed in the Registration Statement and the Prospectus, the Company
is not a party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders, or similar agreements
with or imposed by any governmental authority.

 

(xxvii)       Absence
of Legal or Governmental Proceedings. Except as disclosed in the Registration Statement and the Prospectus, there are no legal
or governmental proceedings pending to which the Company or any of its Subsidiaries is a party or of which any property or assets
of the Company or any of its Subsidiaries is the subject that, if determined adversely to the Company, would, in the aggregate,
reasonably be expected to have a Material Adverse Effect; and to the Company’s knowledge, no such proceedings are threatened
or contemplated by governmental authorities or others.

 

     

     

    

 

(xxviii)     Material
Contracts. There are no contracts or other documents required to be described in the Registration Statement or filed as
exhibits to the Registration Statement that are not described and filed as required. The statements made in the Registration
Statement and Prospectus, insofar as they purport to constitute summaries of the terms of the contracts and other documents
described and filed, constitute accurate summaries of the terms of such contracts and documents in all material respects.
Except as disclosed in the Registration Statement and the Prospectus, neither the Company nor any of its Subsidiaries has
knowledge that any other party to any such contract or other document has any intention not to render full performance as
contemplated by the terms thereof.

 

(xxix)       Insurance.
The Company and each of its Subsidiaries maintain insurance from nationally recognized, in the applicable country, insurers in
such amounts and covering such risks as is commercially reasonable in accordance with customary practices for companies engaged
in similar businesses and similar industries for the conduct of their respective businesses and the value of their respective properties
and as is customary for companies engaged in similar businesses in similar industries, except as would not reasonably be expected
to have a Material Adverse Effect. All policies of insurance of the Company and its Subsidiaries are in full force and effect;
the Company and each of its Subsidiaries are in compliance with the terms of such policies in all material respects; and neither
the Company nor any of its Subsidiaries has received written notice from any insurer or agent of such insurer that capital improvements
or other expenditures are required or necessary to be made in order to continue such insurance; there are no material claims by
the Company or any of its Subsidiaries under any such policy or instrument as to which any insurance company is denying liability
or defending under a reservation of rights clause; and neither the Company nor any such Subsidiary has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not reasonably be expected to have a Material
Adverse Effect.

 

(xxx)       Related
Party Disclosure. No relationship, direct or indirect, exists between or among the Company, on the one hand, and the directors,
officers, shareholders, customers or suppliers of the Company, on the other hand, that is required to be described in the Registration
Statement or the Prospectus which is not so described.

 

(xxxi)       No
Labor Dispute. No labor disturbance by or dispute with the employees of the Company or any of its Subsidiaries exists or, to
the knowledge of the Company, is imminent that could reasonably be expected to have a Material Adverse Effect.

 

     

     

    

 

(xxxii)       No
Default. Except as disclosed in the Registration Statement and the Prospectus, neither the Company nor any of its Subsidiaries
(i) is in violation of its articles of association, charter or by-laws (or similar organizational documents), (ii) is in default,
and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance or
observance of any term, covenant, condition or other obligation contained in any indenture, mortgage, deed of trust, loan agreement,
license or other agreement or instrument to which it is a party or by which it is bound or to which any of its properties or assets
is subject, or (iii) is in violation of any statute or any order, rule or regulation of any court or governmental agency or body
having jurisdiction over it or its property or assets or has failed to obtain any license, permit, certificate, franchise or other
governmental authorization or permit necessary to the ownership of its property or to the conduct of its business, except in the
case of clauses (ii) and (iii), to the extent any such conflict, breach, violation or default would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

(xxxiii)       Environmental
Laws. Except as disclosed in the Registration Statement and the Prospectus, the Company and each of its Subsidiaries (i)
are, and at all times prior hereto were, in compliance in all material respects with all laws, regulations, ordinances,
rules, orders, judgments, decrees, permits or other legal requirements of any governmental authority, including without
limitation any international, foreign, national, state, provincial, regional, or local authority, relating to pollution, the
protection of human health or safety, the environment, or natural resources, or to use, handling, storage, manufacturing,
transportation, treatment, discharge, disposal or release of hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental Laws”) applicable to such entity, which compliance includes, without
limitation, obtaining, maintaining and complying with all material permits and authorizations and approvals required by
Environmental Laws to conduct their respective businesses, and (ii) have not received written notice or otherwise have
knowledge of any actual or alleged violation of Environmental Laws, or of any actual or potential liability for or other
obligation concerning the presence, disposal or release of hazardous or toxic substances or wastes, pollutants or
contaminants. Except as described in the Registration Statement and the Prospectus, (x) there are no proceedings that are
pending, or to the Company’s knowledge, threatened, against the Company or any of its Subsidiaries under
Environmental Laws in which a governmental authority is also a party, other than such proceedings regarding which it is
reasonably believed no monetary sanctions of $100,000 or more will be imposed, (y) the Company and its Subsidiaries are not
aware of any issues regarding compliance with Environmental Laws, including any pending or proposed Environmental Laws, or
liabilities or other obligations under Environmental Laws or concerning hazardous or toxic substances or wastes, pollutants
or contaminants, that could reasonably be expected to have a material effect on the capital expenditures, earnings or
competitive position of the Company and its Subsidiaries, and (z) none of the Company and its Subsidiaries anticipates
material capital expenditures relating to Environmental Laws.

 

(xxxiv)       Taxes.
The Company and each of its Subsidiaries have filed all federal, state, local and foreign tax returns required to be filed through
the date hereof, subject to permitted extensions, and have paid all taxes due, except where the failure to file or pay would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, and no tax deficiency has been determined
adversely to the Company or any of its Subsidiaries, nor does the Company have any knowledge of any tax deficiencies that have
been, or would reasonably be expected to be asserted against the Company, that would, in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

     

     

    

 

(xxxv)       ERISA
Compliance. (i) Each “employee benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”)) for which the Company or any member of its “Controlled
Group” (defined as any organization which is a member of a controlled group of corporations within the meaning of Section
414 of the Internal Revenue Code of 1986, as amended (the “Code”)) would have any liability (each a “Plan”)
has been maintained in compliance in all material respects with its terms and with the requirements of all applicable statutes,
rules and regulations including ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA
or Section 4975 of the Code, has occurred with respect to any Plan excluding transactions effected pursuant to a statutory or administrative
exemption; (iii) with respect to each Plan subject to Title IV of ERISA (A) no “reportable event” (within the meaning
of Section 4043(c) of ERISA) has occurred or is reasonably expected to occur that would result in a material loss to the Company,
(B) no “accumulated funding deficiency” (within the meaning of Section 302 of ERISA or Section 412 of the Code), whether
or not waived, has occurred or is reasonably expected to occur, (C) the fair market value of the assets under each Plan that is
required to be funded exceeds the present value of all benefits accrued under such Plan (determined based on those assumptions
used to fund such Plan), and (D) neither the Company or any member of its Controlled Group has incurred, or reasonably expects
to incur, any liability under Title IV of ERISA (other than contributions to the Plan or premiums to the Pension Benefit Guaranty
Corporation in the ordinary course and without default) in respect of a Plan (including a “multiemployer plan”, within
the meaning of Section 4001(c)(3) of ERISA); and (iv) each Plan that is intended to be qualified under Section 401(a) of the Code
is so qualified and nothing has occurred, to the Company’s knowledge, whether by action or by failure to act, which would
cause the loss of such qualification.

 

(xxxvi)       Data
Privacy and Security Laws. The Company and its Subsidiaries are, and at all times prior hereto have been, in compliance in
all material respects with all applicable state, federal, and international data privacy, security and consumer protection laws
and regulations, including, without limitation, applicable requirements of the Health Insurance Portability and Accountability
Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act (collectively, “HIPAA”);
and the Company and its Subsidiaries have taken commercially reasonable actions to comply with, and have been and currently are
in compliance in all material respects with, the European Union General Data Protection Regulation (“GDPR”)
(EU 2016/679) (collectively, the “Privacy Laws”). To facilitate compliance with the Privacy Laws, the
Company and its Subsidiaries have in place and take commercially reasonable steps to comply in all material respects with their
policies and procedures relating to data privacy and security and the collection, storage, use, disclosure, handling, and analysis
of Personal Data (the “Policies”). “Personal Data” means (i) a natural person’s
name, street address, telephone number, e-mail address, photograph, social security number or tax identification number, driver’s
license number, passport number, credit card number, bank information, or customer or account number; (ii) any information which
would qualify as “personally identifiable” information as applied by the Federal Trade Commission; (iii) “Protected
Health Information,” as defined by HIPAA; (iv) “personal data,” as defined by GDPR; and (v) any other information
that allows the identification of such natural person, or his or her family, or permits the collection or analysis of any data
related to an identified person’s health or sexual orientation. The Company and its Subsidiaries have, at all times prior
hereto, made all material disclosures to users or customers required by applicable Privacy Laws, and none of such disclosures made
or contained in any such disclosures have, to the knowledge of the Company, been inaccurate or in violation of any applicable Privacy
Laws in any material respect. Neither the Company nor any subsidiary: (A) has received written notice of any actual or potential
liability, including, but not limited to security or data privacy breaches or other unauthorized or improper access to, use of,
or destruction of Personal Data, under or relating to, or actual or potential violation of, any of the Privacy Laws, and has no
knowledge of any event or condition that would reasonably be expected to result in any such notice; (B) is currently conducting
or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any Privacy Law; or
(C) is a party to any order, decree, or agreement that imposes any obligation or liability under any Privacy Law.

 

     

     

    

 

(xxxvii)       Accuracy
of Statistical and Market Data. The statistical and market-related data included in the Registration Statement and the Prospectus
and the consolidated financial statements of the Company and its Subsidiaries included or incorporated by reference in the Registration
Statement and the Prospectus are based on or derived from sources that the Company believes to be reliable in all material respects.

 

(xxxviii)       Not
an Investment Company. Neither the Company nor any of its Subsidiaries is, and as of the applicable Settlement Date and, after
giving effect to the offer and sale of the Shares and the application of the proceeds therefrom as described under “Use of
Proceeds” in the Registration Statement and the Prospectus, none of them will be, (i) an “investment company”
or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of
1940, as amended (the “Investment Company Act”), and the rules and regulations of the Commission thereunder,
or (ii) a “business development company” (as defined in Section 2(a)(48) of the Investment Company Act).

 

(xxxix)       Accuracy
of Certain Summaries and Statements. The statements set forth or incorporated by reference, as applicable, in each of the Registration
Statement and the Prospectus under the captions “Description of Share Capital, Common Shares and Related Information,”
and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as amended by that certain Amendment
No. 1 on Form 10-K/A, filed with the Commission on March 15, 2019, under the captions “Legal Proceedings” and “Certain
Relationships and Related Transactions and Director Independence”, insofar as they purport to summarize the provisions of
the laws and documents referred to therein, are accurate summaries in all material respects.

 

(xl)       Registration
Rights. Except as disclosed in the Registration Statement and the Prospectus, there are no contracts, agreements or understandings
between the Company and any person granting such person the right to require the Company to file a registration statement under
the Securities Act with respect to any securities of the Company owned or to be owned by such person. There are no contracts, agreements
or understandings to require the Company to include any such securities in the securities proposed to be offered pursuant to this
Agreement.

 

(xli)       No
Other Brokers. Neither the Company nor any of its Subsidiaries is a party to any contract, agreement or understanding with
any person (other than this Agreement) that would give rise to a valid claim against any of them or the Agent for a brokerage commission,
finder’s fee or like payment in connection with the offering and sale of the Shares.

 

     

     

    

 

(xlii)       No
Integration. The Company has not sold or issued any securities that would be integrated with the offering of the Shares contemplated
by this Agreement pursuant to the Securities Act or the interpretations thereof by the Commission.

 

(xliii)       Absence
of Stabilization or Manipulation. The Company and, to the Company’s knowledge, its affiliates have not taken, directly
or indirectly, any action designed to or that has constituted or that could reasonably be expected to cause or result in the stabilization
or manipulation of the price of any security of the Company in connection with the offering of the Shares.

 

(xliv)       Exchange
Act Registration and Listing of the Common Stock. The shares of Common Stock are registered pursuant to Section 12(b)
of the Exchange Act and listed on the Exchange; the Company has taken no action designed to, or reasonably likely to have the effect
of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the Exchange, nor
has the Company received any notification that the Commission or FINRA is contemplating terminating such registration or listing.

 

(xlv)       Offering
Material. The Company has not distributed and prior to any Settlement Date, will not distribute any offering material in connection
with any Placement (as defined in Section 2(a)(i) below), other than the Prospectus and any Permitted Free Writing Prospectus to
which the Agent has consented.

 

(xlvi)       Compliance
with Labor Laws. Neither the Company nor any Subsidiary is in violation of or has received notice of any violation with respect
to any federal or state law relating to discrimination in the hiring, promotion or pay of employees, nor any applicable federal
or state wage and hour laws, nor any state law precluding the denial of credit due to the neighborhood in which a property is situated,
the violation of any of which could reasonably be expected to have a Material Adverse Effect.

 

(xlvii)       No
Unlawful Payments. Neither the Company nor any of its Subsidiaries, nor, to the knowledge of the Company, any director, officer,
agent, employee or other person associated with or acting on behalf of the Company or any of its Subsidiaries, has (i) used any
corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii)
made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii)
violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, the Organization for Economic Co-operation
and Development Convention on Bribery of Foreign Public Officials in International Business Transactions, and the rules and regulations
thereunder and any other similar foreign or domestic law or regulation; or (iv) made any bribe, rebate, payoff, influence payment,
kickback or other unlawful payment. The Company has instituted and maintains policies and procedures designed to ensure continued
compliance with the laws and regulations referenced in clause (iii) of this paragraph.

 

     

     

    

 

(xlviii)       
Anti-Money Laundering Compliance. The operations of the Company and its Subsidiaries are and have been conducted at all
times prior hereto in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations
thereunder and any applicable related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental
agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect
to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(xlix)       Sanctions.
Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or
affiliate of the Company or any of its Subsidiaries is: (i) currently subject to any U.S. sanctions administered or enforced
by the Office of Foreign Assets Control of the U.S. Treasury Department, the United Nations Security Council, the European Union,
Her Majesty’s Treasury, or any other relevant sanctions authority (collectively, “Sanctions”);
or (ii) located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation,
Burma/Myanmar, Cuba, Iran, North Korea, Sudan and Syria). The Company will not directly or indirectly use the proceeds of the offering,
or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other person or entity for
the purpose of financing the activities of any person or entity, or in any country or territory that, at the time of such use of
the proceeds is the subject of Sanctions. Except as detailed in the Registration Statement and the Prospectus, neither the Company
nor any of its Subsidiaries has knowingly engaged in or is now knowingly engaging in, and neither the Company nor any of its Subsidiaries
will engage in, any dealings or transactions with any person or entity, or in any country or territory, that, at the time of the
dealing or transaction, is or was the subject of Sanctions.

 

(l)       Not
a Passive Foreign Investment Company. Subject to the qualifications and assumptions set forth in the Registration Statement,
the Company is not, and upon the sale of the Shares contemplated by this Agreement does not expect to become, a “passive
foreign investment company” (as defined in Section 1297 of the Code, and the regulations promulgated thereunder).

 

(li)       No
Taxes or Fees Due Upon Issuance. No stamp, issue, registration, documentary, transfer or other similar taxes and duties, including
interest and penalties, are payable on or in connection with the issuance and sale of the Shares by the Company or the execution
and delivery of this Agreement.

 

     

     

    

 

(lii)       No
Immunity. Neither the Company nor any Subsidiary, nor any of their respective properties or assets, has any immunity from the
jurisdiction of any court or from any legal process (whether through service or notice, attachment to prior judgment, attachment
in aid of execution or otherwise) under the laws of any jurisdiction in which it is organized, headquartered or doing business.

 

(liii)       Certificate
as Representation and Warranty. Any certificate signed by any officer of the Company and delivered to the Agent or the Agent’s
counsel in connection with the offering of the Shares shall be deemed a representation and warranty by the Company to Agent as
to the matters covered thereby.

 

2.       Purchase,
Sale and Delivery of Shares.

 

(a)       At-the-Market
Sales. On the basis of the representations, warranties and agreements herein contained, but subject to the terms and conditions
herein set forth, the Company agrees to issue and sell through the Agent as sales agent, and the Agent agrees to use its commercially
reasonable efforts to sell for and on behalf of the Company, the Shares on the following terms and conditions; provided,
however, that any obligation of the Agent to use such commercially reasonable efforts shall be subject to the continuing
accuracy of the representations and warranties of the Company herein, the performance by the Company of its covenants and obligations
hereunder and the continuing satisfaction of the additional conditions specified in Section 4 of this Agreement. The Company acknowledges
and agrees that (i) there can be no assurance that the Agent will be successful in selling Shares, and (ii) the Agent
will incur no liability or obligation to the Company or any other person or entity if it does not sell Shares for any reason other
than a failure by the Agent to use its commercially reasonable efforts consistent with its normal trading and sales practices to
sell such Shares as required under this Section 2. 

 

(i)       Each
time that the Company wishes to issue and sell the Shares hereunder (each, a “Placement”), it will notify
the Agent by email notice (or other method mutually agreed to in writing by the parties) (each, a “Placement Notice”)
containing the parameters in accordance with which it desires the Shares to be sold, which shall at a minimum include the number
of Shares to be issued, the time period during which sales are requested to be made, any limitation on the number of Shares that
may be sold in any one Trading Day (as defined below) and any minimum price below which sales may not be made, a form of which
containing such minimum sales parameters necessary is attached hereto as Schedule 1. The Placement Notice shall originate
from any of the individuals from the Company set forth on Schedule 2 (with a copy to each of the other individuals from
the Company listed on such schedule), and shall be addressed to each of the individuals from the Agent set forth on Schedule
2, as such Schedule 2 may be amended from time to time. The Placement Notice shall be effective upon receipt by the
Agent unless and until (i) in accordance with the notice requirements set forth in Section 2(a)(iii) of this Agreement,
the Agent declines to accept the terms contained therein for any reason, in its sole discretion, (ii) the entire amount of
the Shares has been sold, (iii) the Company suspends or terminates the Placement Notice in accordance with the notice requirements
set forth in Section 2(a)(iii) below, (iv) the Company issues a subsequent Placement Notice with parameters superseding those
on the earlier dated Placement Notice, or (v) this Agreement has been terminated under the provisions of Section 7. The amount
of any commission or other compensation to be paid by the Company to the Agent in connection with the sale of the Shares shall
be calculated in accordance with the terms set forth in Section 2(a)(v) below. It is expressly acknowledged and agreed that neither
the Company nor the Agent will have any obligation whatsoever with respect to a Placement or any Shares unless and until the Company
delivers a Placement Notice to the Agent and the Agent does not decline such Placement Notice pursuant to the terms set forth above,
and then only upon the terms specified therein and herein. In the event of a conflict between the terms of this Agreement and the
terms of the Placement Notice, the terms of the Placement Notice will control. For the purposes hereof, “Trading Day”
means any day on which the Company’s Common Stock is purchased and sold on the principal market on which the Common Stock
is listed or quoted.

 

     

     

    

 

(ii)       The
Shares are to be sold by the Agent on a daily basis or otherwise as shall be agreed to by the Company and the Agent on any day
that is a trading day for the Exchange (other than a day on which the Exchange is scheduled to close prior to its regular weekday
closing time). The gross sales price of the Shares sold under this Section 2(a) shall be the market price for the Company’s
Common Stock sold by the Agent under this Section 2(a) at the time of such sale.

 

(iii)       Notwithstanding
the foregoing, the Company may instruct the Agent by telephone (confirmed promptly by email) not to sell the Shares if such sales
cannot be effected at or above the price designated by the Company in any such instruction. Furthermore, the Company shall not
authorize the issuance and sale of, and the Agent shall not be obligated to use its commercially reasonable efforts to sell, any
Shares at a price lower than the minimum price therefor designated from time to time by the Company’s Board of Directors
and notified to the Agent in writing. In addition, the Company or the Agent may, upon notice to the other party hereto by telephone
(confirmed promptly by email), suspend the offering of the Shares, whereupon the Agent shall so suspend the offering of Shares
until further notice is provided to the other party to the contrary; provided, however, that such suspension or termination
shall not affect or impair the parties’ respective obligations with respect to the Shares sold hereunder prior to the giving
of such notice. Notwithstanding any other provision of this Agreement, during any period in which the Company is in possession
of material non-public information, the Company and the Agent agree that (i) no sale of Shares will take place, (ii) the
Company shall not request the sale of any Shares, and (iii) the Agent shall not be obligated to sell or offer to sell any
Shares.

 

(iv)       Subject
to the terms of the Placement Notice, the Agent may sell the Shares by any method permitted by law deemed to be an “at the
market offering” as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on or through the Exchange.
Subject to the terms of any Placement Notice, the Agent may also sell Shares in negotiated transactions at market prices prevailing
at the time of sale or at prices related to such prevailing market prices and/or any other method permitted by law, subject to
the prior written consent of the Company.

 

     

     

    

 

(v)       The
compensation to the Agent for sales of the Shares, as an agent of the Company, shall be 3.0% of the gross sales price of the Shares
sold pursuant to this Section 2(a), payable in cash (the “Commission”); provided that the combined
Commission and reimbursement of the Agent for the out-of-pocket reasonable fees and disbursements of Agent’s counsel pursuant
to Section 3(g), shall not exceed 8.0% of the gross sales price of the Shares. The remaining proceeds, after further deduction
for any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales, and applicable reimbursement
of expenses that the Agent may be entitled to pursuant to Section 3(g) (if any), shall constitute the net proceeds to the Company
for such Shares (the “Net Proceeds”).

 

(vi)       The
Agent will provide written confirmation to the Company (including by email correspondence to each of the individuals of the Company
set forth on Schedule 2), no later than the opening of the Trading Day immediately following the Trading Day on which it
has made sales of Shares hereunder, setting forth the number of Shares sold on such day, the volume-weighted average price of the
Shares sold, the compensation payable to the Agent with respect to such sales and the Net Proceeds payable to the Company.

 

(vii)       All
Shares sold pursuant to this Section 2(a) will be delivered by the Company to the Agent for the account of the Agent, against payment
of the Net Proceeds therefor, by wire transfer of same-day funds payable to the order of the Company at the offices of Piper Jaffray
& Co., U.S. Bancorp Center, 800 Nicollet Mall, Minneapolis, Minnesota, or such other location as may be mutually acceptable,
at 9:00 a.m. Central Time on the second full business day following the date on which such Shares are sold, or at such other
time and date as Agent and the Company determine pursuant to Rule 15c6-1(a) under the Exchange Act, each such time and date of
delivery being herein referred to as a “Settlement Date.” If the Agent so elects, delivery of the Shares
may be made by credit through full fast transfer to an account or accounts at The Depository Trust Company designated by the Agent.
On each Settlement Date, the Agent will deliver the Net Proceeds in same day funds to an account designated by the Company on,
or prior to, such Settlement Date. The Company agrees that if the Company, or its transfer agent (if applicable), defaults in its
obligation to timely deliver duly authorized Shares on a Settlement Date, the Company agrees that in addition to and in no way
limiting the rights and obligations set forth in Section 5 hereto, it will (i) hold the Agent harmless against any loss, claim,
damage, or expense (including reasonable legal fees and expenses), as incurred, arising out of or in connection with such default
by the Company, (iii) reimburse the Agent for any losses incurred by the Agent attributable, directly or indirectly, to such default
and (iii) pay to the Agent any commission or other compensation to which the Agent would otherwise have been entitled absent
such default.

 

     

     

    

 

(b)       Maximum
Amount. Under no circumstances shall the aggregate number or aggregate value of the Shares sold pursuant to this Agreement
exceed: (i) the aggregate number and aggregate dollar amount of shares of Common Stock available for issuance under the Registration
Statement, (ii) the aggregate number of authorized but unissued shares of Common Stock that are available for issuance under the
Company’s certificate of incorporation or similar organizational document, (iii) the aggregate dollar amount of shares of
Common Stock permitted to be sold under the Registration Statement (including any limit set forth in General Instruction I.B.6
thereof, if applicable) or (iv) the aggregate number of aggregate dollar amount of shares of Common Stock for which the Company
has filed any Prospectus Supplement in connection with the Shares (the lesser of (i), (ii), (iii) and (iv) (the “Maximum
Amount”). Notwithstanding anything to the contrary contained in this Agreement, the parties agree that compliance
with the limitations on the aggregate number or aggregate value of the Shares sold pursuant to this Agreement set forth in this
Section 2(b) shall be the sole responsibility of the Company and that the Agent shall have no obligation with respect to such
compliance.

 

(c)       No
Association or Partnership. Nothing herein contained shall constitute the Agent an unincorporated association or partner with
the Company.

 

(d)       Duration.
No Shares shall be sold pursuant to this Agreement after the date which is three years after the Registration Statement is first
declared effective by the Commission. Notwithstanding the foregoing, Shares may be sold pursuant to this Agreement after such date
if, after the date hereof, the Company (i) has filed a registration statement meeting all the requirements of the Securities Act
as of the date thereof, (ii) such registration statement has been declared or deemed effective by the Commission under the Securities
Act and (iii) the Company has filed a prospectus supplement to the base prospectus included as part of such registration statement
specifically relating to the Shares. As of the date on which the conditions described in clauses (i)-(iii) are met, all references
to “Registration Statement” and “Prospectus Supplement” in Section 1(a)(i) hereof shall mean the registration
statement and prospectus supplement described in clauses (i)-(iii), above. In no event shall any Shares be sold pursuant to this
Agreement after the date which is three years after the registration statement described in clauses (i) and (ii), above, is first
declared or deemed effective by the Commission.

 

(e)       Market
Transactions by Agent. The Company acknowledges and agrees that the Agent has informed the Company that the Agent may, to the
extent permitted under the Securities Act, the Exchange Act and this Agreement, purchase and sell shares of Common Stock for its
own account while this Agreement is in effect, provided, that (i) no sale for its own account shall take place while
a Placement Notice is in effect (except to the extent the Agent may engage in sales of Shares purchased or deemed purchased from
the Company as a “riskless principal” or in a similar capacity) and (ii) the Company shall not be deemed to have
authorized or consented to any such purchases or sales by the Agent. The Company consents to the Agent trading in the Common Stock
for the account of any of its clients at the same time as sales of the Shares occur pursuant to this Agreement.

 

     

     

    

 

3.       Covenants
of the Company. The Company covenants and agrees with the Agent as follows:

 

(a)       Amendments
to Registration Statement and Prospectus. After the date of this Agreement and during any period in which a Prospectus relating
to any Shares is required to be delivered by the Agent under the Securities Act (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act), the Company agrees that it will: (i) notify the Agent
promptly of the time when any subsequent amendment to the Registration Statement, other than documents incorporated by reference
or amendments not related to the Shares, has been filed with the Commission and/or has become effective or any subsequent supplement
to the Prospectus related to the Shares has been filed and of any request by the Commission for any amendment or supplement to
the Registration Statement (insofar as it relates to the transactions contemplated hereby) or Prospectus or for additional information;
(ii) prepare and file with the Commission, promptly upon the Agent’s request, any amendments or supplements to the Registration
Statement or Prospectus that, in the Agent’s reasonable opinion, may be necessary or advisable in connection with the sale
of the Shares by the Agent (provided, however, that the failure of the Agent to make such request shall not relieve the
Company of any obligation or liability hereunder, or affect the Agent’s right to rely on the representations and warranties
made by the Company in this Agreement); (iii) not file any amendment or supplement to the Registration Statement or Prospectus,
other than documents incorporated by reference, relating to the Shares or a security convertible into the Shares unless a copy
thereof has been submitted to the Agent within a reasonable period of time before the filing and the Agent has not reasonably objected
thereto (provided, however, that (A) the failure of the Agent to make such objection shall not relieve the Company
of any obligation or liability hereunder, or affect the Agent’s right to rely on the representations and warranties made
by the Company in this Agreement), (B) the Company has no obligation to provide the Agent any advance copy of such filing
or to provide the Agent an opportunity to object to such filing if the filing does not name the Agent or does not relate to a Placement
or other transaction contemplated hereunder, and (C) the only remedy that the Agent shall have with respect to the failure
by the Company to provide the Agent with such copy or the filing of such amendment or supplement despite the Agent’s objection
shall be to cease making sales under this Agreement); (iv) furnish to the Agent at the time of filing thereof a copy of any document
that upon filing is deemed to be incorporated by reference into the Registration Statement or Prospectus, except for those documents
available via EDGAR; and (iv) cause each amendment or supplement to the Prospectus, other than documents incorporated by reference,
to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act.

 

(b)       Stop
Order. The Company will advise the Agent, promptly after it receives notice or obtains knowledge thereof, of the issuance or
threatened issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement, of the suspension
of the qualification of the Shares for offering or sale in any jurisdiction, or of the initiation or threatening of any proceeding
for any such purpose, and it will promptly use its commercially reasonable efforts to prevent the issuance of any stop order or
to obtain its withdrawal if such a stop order should be issued.

 

(c)       Continuing
Amendments. During any period in which a Prospectus relating to the Shares is required to be delivered by the Agent under the
Securities Act with respect to any Placement or pending sale of the Shares, (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act), the Company will comply with all requirements imposed upon it
by the Securities Act, as from time to time in force, and to file on or before their respective due dates all reports (taking into
account any extensions available under the Exchange Act) and any definitive proxy or information statements required to be filed
by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange
Act. If during such period any event occurs as a result of which the Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of
the circumstances then existing, not misleading, or if during such period it is necessary to amend or supplement the Registration
Statement or Prospectus to comply with the Securities Act, the Company will promptly notify the Agent to suspend the offering of
the Shares during such period and the Company will promptly amend or supplement the Registration Statement or Prospectus (at the
expense of the Company) so as to correct such statement or omission or effect such compliance.

 

     

     

    

 

(d)       Qualification
of the Shares. The Company shall take or cause to be taken all necessary action to qualify the Shares for sale under the securities
laws of such jurisdictions as Agent reasonably designates and to continue such qualifications in effect so long as required for
the distribution of the Shares, except that the Company shall not be required in connection therewith to qualify as a foreign corporation
or to execute a general consent to service of process in any state. The Company shall promptly advise the Agent of the receipt
by the Company of any notification with respect to the suspension of the qualification of the Shares for offer or sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose.

 

(e)       Copies
of Registration Statement and Prospectus. The Company will furnish to the Agent and counsel for the Agent copies of the Registration
Statement (which, upon the Agent’s request, will include three complete manually signed copies of the Registration Statement
and all consents and exhibits filed therewith), the Prospectus and all amendments and supplements to such documents, in each case
as soon as available and in such quantities as the Agent may from time to time reasonably request.

 

(f)       Section
11(a). The Company will make generally available to its security holders as soon as practicable an earnings statement (which
need not be audited) covering a 12-month period that shall satisfy the provisions of Section 11(a) of the Securities Act and
Rule 158 promulgated thereunder.

 

(g)       Expenses.
The Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, will pay or
cause to be paid (i) all expenses (including stock or transfer taxes and stamp or similar duties allocated to the respective transferees)
incurred in connection with the registration, issue, sale and delivery of the Shares, (ii) all expenses and fees (including, without
limitation, fees and expenses of the Company’s accountants and counsel) in connection with the preparation, printing, filing,
delivery, and shipping of the Registration Statement (including the financial statements therein and all amendments, schedules,
and exhibits thereto), the Shares, the Prospectus, any Permitted Free Writing Prospectus and any amendment thereof or supplement
thereto, and the producing, word-processing, printing, delivery, and shipping of this Agreement and other underwriting documents
or closing documents, including Blue Sky Memoranda (covering the states and other applicable jurisdictions) and including the cost
to furnish copies of each thereof to the Agent, (iii) all filing fees, (iv) the reasonable and documented fees and disbursements
of the Agent’s counsel incurred in connection with the qualification of the Shares for offering and sale by the Agent or
by dealers under the securities or blue sky laws of the states and other jurisdictions which Agent shall designate, (v) the fees
and expenses of any transfer agent or registrar, (vi) the reasonable and documented filing fees and fees and disbursements of Agent’s
counsel incident to any required review and approval by FINRA of the terms of the sale of the Shares, (vii) listing fees, if any,
(viii) the cost and expenses of the Company relating to investor presentations or any “roadshow” undertaken in connection
with marketing of the Shares, and (ix) all other reasonable costs and expenses incident to the performance of its obligations hereunder
that are not otherwise specifically provided for herein in an amount not to exceed $20,000. In addition to (iv) and (vi) above,
the Company shall reimburse the Agent for the out of pocket reasonable fees and disbursements of the Agent’s counsel actually
incurred in an amount which, taken together with the fees and disbursements of Agent’s counsel, shall not exceed $50,000.

 

     

     

    

 

(h)       Use
of Proceeds. The Company will apply the net proceeds from the sale of the Shares in the manner set forth in the Prospectus.

 

(i)       Restrictions
on Future Sales. During the term of this Agreement, the Company will not, offer for sale, sell, contract to sell, pledge, grant
any option for the sale of, enter into any transaction which is designed to, or might reasonably be expected to, result in the
disposition of Common Stock (whether by actual disposition or effective economic disposition due to cash settlement or otherwise)
by the Company or any affiliate, or otherwise issue or dispose of, directly or indirectly (or publicly disclose the intention to
make any such offer, sale, pledge, grant, issuance or other disposition), any Common Stock or any securities convertible into or
exchangeable for, or any options or rights to purchase or acquire, Common Stock, or permit the registration under the Securities
Act of any Common Stock, such securities, options or rights, except for: (i) the registration of the Shares and the sales through
the Agent pursuant to this Agreement, (ii) sales of shares through any dividend reinvestment and stock purchase plan of the Company,
(iii) sales of shares of restricted stock, restricted stock units and options granted pursuant to the Specified Equity Plans,
and the Common Stock issuable upon the exercise of such outstanding options or vesting of such restricted stock units, and (iv)
the issuance of shares pursuant to the exercise of warrants, in the case of each of (ii), (iii) and (iv), without giving the Agent
at least two business days’ prior written notice specifying the nature of the proposed sale and the date of such proposed
sale, so as to permit the Agent to suspend activity under this Agreement for such period of time as requested by the Company.

 

(j)       No
Stabilization or Manipulation. The Company has not taken and will not take, directly or indirectly, any action designed to,
or which might reasonably be expected to cause or result in, or which constitutes: (i) the stabilization or manipulation of the
price of the Common Stock or any other security of the Company to facilitate the sale or resale of the Shares, (ii) a violation
of Regulation M. The Company shall notify the Agent of any violation of Regulation M by the Company or any of its Subsidiaries
or any of their respective officers or directors promptly after the Company has received notice or obtained knowledge of any such
violation. The Company shall not invest in futures contracts, options on futures contracts or options on commodities, unless the
Company is exempt from the registration requirements of the Commodity Exchange Act, as amended (the “Commodity Act”),
or otherwise complies with the Commodity Act. The Company will not engage in any activities bearing on the Commodity Act, unless
such activities are exempt from the Commodity Act or otherwise comply with the Commodity Act.

 

(k)       No
Other Broker. The Company will not incur any liability for any finder’s or broker’s fee or agent’s commission
in connection with the execution and delivery of this Agreement, or the consummation of the transactions contemplated hereby.

 

     

     

    

 

(l)       Timely
Securities Act and Exchange Act Reports. During any prospectus delivery period, the Company will use its commercially reasonable
efforts to file on a timely basis with the Commission such periodic and special reports as required by the Securities Act and the
Exchange Act.

 

(m)       Internal
Controls. The Company and its Subsidiaries will maintain such controls and other procedures, including without limitation,
those required by Sections 302 and 906 of the Sarbanes-Oxley Act and the applicable regulations thereunder, that are designed to
ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act
is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms, including
without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the
reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including
its principal executive officer and its principal financial officer, or persons performing similar functions, as appropriate to
allow timely decisions regarding required disclosure, to ensure that material information relating to Company, including its Subsidiaries,
is made known to them by others within those entities.

 

(n)       Permitted
Free Writing Prospectus. The Company represents and agrees that, unless it obtains the prior written consent of the Agent,
and the Agent severally represents and agrees that, unless it obtains the prior written consent of the Company, it has not made
and will not make any offer relating to the Shares that would constitute an “issuer free writing prospectus,” as defined
in Rule 433 under the Securities Act, or that would otherwise constitute a “free writing prospectus,” as defined in
Rule 405 under the Securities Act, required to be filed with the Commission. Any such free writing prospectus consented to by the
Company and the Agent is hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company
represents that it has treated or agrees that it will treat each Permitted Free Writing Prospectus as an “issuer free writing
prospectus,” as defined in Rule 433, and has complied and will comply with the requirements of Rule 433 applicable to any
Permitted Free Writing Prospectus, including timely Commission filing where required, legending and record keeping.

 

(o)       Representation
Date and Opinions of Counsel. On or prior to the date of the first Placement Notice, and thereafter during the term of this
Agreement, each time the Company (A) files an amendment to the Registration Statement or Prospectus (other than relating solely
to the offering of securities other than the Shares), (B) files an annual report on Form 10-K under the Exchange Act or files its
quarterly reports on Form 10-Q under the Exchange Act; and (C) files a report on Form 8-K containing amended financial statements
(other than an earnings release) under the Exchange Act, (each of the dates in (A), (B) and (C) are referred to herein as a “Representation
Date”), the Company shall cause:

 

(i)       Bryan
Cave Leighton Paisner LLP, United States counsel for the Company, to furnish to the Agent the opinion and negative assurance letter
of such counsel, dated as of such date and addressed to Agent, in the form attached hereto as Exhibit A; provided,
however, that only a negative assurance letter of such counsel shall be required for each subsequent Representation Date.

 

     

     

    

 

(ii)       Stikeman
Elliott LLP, Canada counsel for the Company, to furnish to the Agent the opinion of such counsel, dated as of such date and addressed
to Agent, in the form attached hereto as Exhibit B; provided, however, that the opinion of such counsel shall
only be required for the first Representation Date.

 

(iii)       Stanley
A. Kim, P.A., intellectual property and patent counsel for the Company, to furnish to the Agent the opinion of such counsel, dated
as of such date and addressed to Agent, in form and substance reasonably satisfactory to the Agent; provided, however,
that the opinion of such counsel shall only be required for the first Representation Date.

 

Notwithstanding the foregoing, the requirement
to provide counsel opinions under this Section 3(o) shall be waived for any Representation Date occurring at a time at
which no Placement Notice is pending, which waiver shall continue until the date the Company delivers a Placement Notice to the
Agent. Notwithstanding the foregoing, if the Company subsequently decides to sell Shares following a Representation Date when the
Company relied on such waiver and did not provide the Agent with opinions under this Section 3(o), then before the Agent sells
any Shares pursuant to Section 2(a), the Company shall cause the opinions (including the opinion pursuant to Section 3(o) if not
delivered on the date of the prior Form 10-K), comfort letter, certificates and documents that would be delivered on a Representation
Date to be delivered.

 

(p)       Representation
Date and Comfort Letter. On or prior to the date of the first Placement Notice and thereafter during the term of this Agreement,
on each Representation Date to which a waiver does not apply, the Company shall cause Ernst & Young LLP, or other independent
accountants satisfactory to the Agent, to deliver to the Agent a letter, dated as of such date and addressed to Agent, confirming
that they are independent public accountants within the meaning of the Securities Act and are in compliance with the applicable
requirements relating to the qualifications of accountants under Rule 2-01 of Regulation S-X of the Commission, and stating
the conclusions and findings of said firm with respect to the financial information and other matters covered by its letter in
form and substance satisfactory to the Agent of the same tenor as the first such letter received hereunder.

 

(q)       Representation
Date and Representation Certificate. On or prior to the date of the First Placement Notice and thereafter during the term of
this Agreement, on each Representation Date to which a waiver does not apply, the Company shall furnish to the Agent a certificate
(the “Representation Certificate”), substantially in the form of Schedule 3 and dated as of such
date, addressed to the Agent and signed by the chief executive officer and by the chief financial officer of the Company.

 

(r)       Disclosure
of Shares Sold. The Company shall disclose in its quarterly reports on Form 10-Q and in its annual report on Form 10-K the
number of the Shares sold through the Agent under this Agreement, the net proceeds to the Company and the compensation paid by
the Company with respect to sales of the Shares pursuant to this Agreement during the relevant quarter.

 

(s)       Continued
Listing of Shares. The Company shall use its commercially reasonable efforts to maintain the listing of the Common Stock on
the Exchange.

 

     

     

    

 

(t)       Notice
of Changes. At any time during the term of this Agreement, as supplemented from time to time, the Company shall advise the
Agent as soon as practicable after it shall have received notice or obtained knowledge thereof, of any information or fact that
would alter or affect any opinion, certificate, letter and other document provided to the Agent pursuant to this Section 3.

 

(u)       Maximum
Amount. The Company will not instruct the Agent to sell or otherwise attempt to sell Shares in excess of the Maximum Amount.

 

4.       Conditions
of Agent’s Obligations. The obligations of the Agent hereunder are subject to (i) the accuracy, as of the Effective
Time, each Representation Date and each Settlement Date (in each case, as if made at such date) of and compliance with all representations,
warranties and agreements of the Company contained herein, (ii) the performance by the Company of its obligations hereunder and
(iii) the following additional conditions:

 

(a)       Continuing
Amendments; No Stop Order. If filing of the Prospectus, or any amendment or supplement thereto, or any Permitted Free Writing
Prospectus, is required under the Securities Act, the Company shall have filed the Prospectus (or such amendment or supplement)
or such Permitted Free Writing Prospectus with the Commission in the manner and within the time period so required (without reliance
on Rule 424(b)(8) or Rule 164(b)); the Registration Statement shall be effective; no stop order suspending the effectiveness of
the Registration Statement or any part thereof, any Rule 462(b) Registration Statement, or any amendment thereof, nor suspending
or preventing the use of the Prospectus shall have been issued; no proceedings for the issuance of such an order shall have been
initiated or threatened; and any request of the Commission for additional information (to be included in the Registration Statement,
the Prospectus or otherwise) shall have been complied with to the Agent’s satisfaction.

 

(b)       Absence
of Certain Events. None of the following events shall have occurred and be continuing: (i) receipt by the Company or any
of its Subsidiaries of any request for additional information from the Commission or any other federal or state governmental authority
during the period of effectiveness of the Registration Statement, the response to which would require any post-effective amendments
or supplements to the Registration Statement or the Prospectus; (ii) the issuance by the Commission or any other federal or
state governmental authority of any stop order suspending the effectiveness of the Registration Statement or the initiation of
any proceedings for that purpose; (iii) receipt by the Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Shares for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose; (iv) the occurrence of any event that makes any material statement made in the Registration Statement or
the Prospectus or any material document incorporated or deemed to be incorporated therein by reference untrue in any material respect
or that requires the making of any changes in the Registration Statement, related Prospectus or such documents so that, in the
case of the Registration Statement, it will not contain any materially untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not misleading and, that in the case of
the Prospectus, it will not contain any materially untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading.

 

     

     

    

 

(c)       No
Material Misstatement or Omission. The Agent shall not have advised the Company that the Registration Statement or the Prospectus,
contains an untrue statement of fact which, in the Agent’s opinion, is material, or omits to state a fact which, in the Agent’s
opinion, is material and is required to be stated therein or necessary to make the statements therein not misleading.

 

(d)       No
Adverse Changes. Except as contemplated in the Prospectus, subsequent to the respective dates as of which information is given
in the Prospectus, neither the Company nor any of its Subsidiaries shall have incurred any material liabilities or obligations,
direct or contingent, or entered into any material transactions, or declared or paid any dividends or made any distribution of
any kind with respect to its capital stock; and there shall not have been any material change in the capital stock (other than
a change in the number of outstanding Common Stock due to the issuance of shares upon the exercise of outstanding options or warrants),
or any material change in the short-term or long-term debt of the Company, or any issuance of options, warrants, convertible securities
or other rights to purchase the capital stock of the Company or any of its Subsidiaries, or any development involving a prospective
Material Adverse Effect (whether or not arising in the ordinary course of business), or any loss by strike, fire, flood, earthquake,
accident or other calamity, whether or not covered by insurance, incurred by the Company or any Subsidiary, the effect of which,
in any such case described above, in the Agent’s judgment, makes it impractical or inadvisable to offer or deliver the Shares
on the terms and in the manner contemplated in the Prospectus.

 

(e)       No
Rating Downgrade. On or after the Effective Time (i) no downgrading shall have occurred in the rating accorded any of
the Company’s securities by any “nationally recognized statistical organization,” as that term is defined by
the Commission for purposes of Rule 436(g)(2) under the Securities Act, and (ii) no such organization shall have publicly
announced that it has under surveillance or review, with possible negative implications, its rating of any of the Company’s
securities.

 

(f)       Compliance
with Certain Obligations. The Company shall have performed each of its obligations under Section 3(o) – 3(q).

 

(g)       Opinion
of Agent Counsel. On each Representation Date to which a waiver does not apply, there shall have been furnished to the Agent
the opinion and negative assurance letter of K&L Gates LLP, counsel for the Agent, dated as of such Representation Date and
addressed to Agent, in a form reasonably satisfactory to the Agent, and such counsel shall have received such papers and information
as they request to enable them to pass upon such matters; provided however, the opinion of K&L Gates LLP shall only be required
prior to the first Placement Notice, and thereafter, only a negative assurance letter of such counsel shall be required for each
subsequent Representation Date.

 

(h)       Representation
Certificate. On or prior to the first Placement Notice, the Agent shall have received the Representation Certificate, substantially
in the form of Schedule 3 and dated as of such date.

 

     

     

    

 

(i)       No
Objection by FINRA. The Financial Industry Regulatory Authority, Inc. shall have raised no objection to the fairness and reasonableness
of the underwriting terms and arrangements.

 

(j)       Timely
Filing of Prospectus and Prospectus Supplement. All filings with the Commission required by Rule 424 under the Securities Act
to have been filed by the Settlement Date, as the case may be, shall have been made within the applicable time period prescribed
for such filing by Rule 424.

 

(k)       Additional
Documents and Certificates. The Company shall have furnished to Agent and the Agent’s counsel such additional documents,
certificates and evidence as they may have reasonably requested.

 

All opinions, certificates, letters and other
documents described in this Section 4 will be in compliance with the provisions hereof only if they are reasonably satisfactory
in form and substance to Agent and the Agent’s counsel. The Company will furnish Agent with such conformed copies of such
opinions, certificates, letters and other documents as Agent shall reasonably request.

 

5.       Indemnification
and Contribution.

 

(a)       Company
Indemnification. The Company agrees to indemnify and hold harmless the Agent, its affiliates, directors, officers and employees,
and each person, if any, who controls the Agent within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act against any losses, claims, damages or liabilities, joint or several, to which the Agent may become subject, under the Securities
Act or otherwise (including in settlement of any litigation), insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon, in whole or in part:

 

(i)       an
untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, including the 430B Information
and at any subsequent time pursuant to Rules 430A and 430B promulgated under the Securities Act, and any other information
deemed to be part of the Registration Statement at the time of effectiveness, and at any subsequent time pursuant to the Securities
Act or the Exchange Act, and the Prospectus, or any amendment or supplement thereto (including any documents filed under the Exchange
Act and deemed to be incorporated by reference into the Prospectus), any Permitted Free Writing Prospectus, or any roadshow as
defined in Rule 433(h) under the Act (a “road show”), or an omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein not misleading;

 

(ii)       any
inaccuracy in the representations and warranties of the Company contained herein;

 

     

     

    

 

(iii)       any
investigation or proceeding by any governmental authority, commenced or threatened (whether or not Agent is a target of or party
to such investigation or proceeding); or

 

(iv)       any
failure of the Company to perform its respective obligations hereunder or under law;

 

and will reimburse the Agent for any legal or
other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability
or action; provided, however, that the Company shall not be liable in any such case of (i) through (iv) to the extent that
any such loss, claim, damage, liability or action arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in the Registration Statement, the Prospectus, or any such amendment or supplement, in reliance
upon and in conformity with written information furnished to the Company by Agent specifically for use in the preparation thereof.
“Rule 430B Information,” as used herein, means information with respect to the Shares and the offering
thereof permitted to be omitted from the Registration Statement when it becomes effective pursuant to Rule 430B.

 

In addition to its other obligations under this
Section 5(a), the Company agrees that, as an interim measure during the pendency of any claim, action, investigation, inquiry or
other proceeding arising out of or based upon any statement or omission, or any alleged statement or omission, described in this
Section 5(a), it will reimburse the Agent on a monthly basis for all reasonable and documented legal fees or other expenses incurred
in connection with investigating or defending any such claim, action, investigation, inquiry or other proceeding, notwithstanding
the absence of a judicial determination as to the propriety and enforceability of the Company’s obligation to reimburse the
Agent for such expenses and the possibility that such payments might later be held to have been improper by a court of competent
jurisdiction. Any such interim reimbursement payments which are not made to the Agent within 30 days of a request for reimbursement
shall bear interest at the WSJ Prime Rate (as published from time to time by the Wall Street Journal).

 

(b)       Agent
Indemnification. The Agent will indemnify and hold harmless the Company, each of its directors and each of its officers who
signs the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities, joint or several, to which such person
may become subject, under the Securities Act or otherwise (including in settlement of any litigation, if such settlement is effected
with the written consent of the Agent), but only insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement, the Prospectus, any amendment or supplement thereto, or any Permitted Free Writing Prospectus, or arise out of or are
based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in conformity with written information furnished to the Company by the
Agent specifically for use in the preparation thereof, it being understood and agreed that the only information furnished by the
Agent for use in the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus consists of the statements
set forth in the sixth paragraph under the caption “Plan of Distribution” in the Prospectus, and will reimburse such
person for any legal or other expenses reasonably incurred by such person in connection with investigating or defending against
any such loss, claim, damage, liability or action (whether or not such person is a party thereto), whether threatened or commenced,
based upon any such untrue statement or omission or any alleged untrue statement or omission as such expenses are incurred.

 

     

     

    

 

(c)       Notice
and Procedures. Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement
of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such
subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying
party shall not relieve the indemnifying party from any liability that it may have to any indemnified party except to the extent
such indemnifying party has been materially prejudiced by such failure. In case any such action shall be brought against any indemnified
party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate
in, and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified
party of the indemnifying party’s election so to assume the defense thereof, the indemnifying party shall not be liable to
such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of investigation; provided, however, that if, in
the sole judgment of the Agent, it is advisable for the Agent to be represented by separate counsel, the Agent shall have the right
to employ a single counsel to represent the Agent, in which event the reasonable fees and expenses of such separate counsel shall
be borne by the indemnifying party or parties and reimbursed to the Agent as incurred (in accordance with the provisions of the
second paragraph in subsection (a) above).

 

The indemnifying party under this Section 5 shall
not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss,
claim, damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any
time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of
counsel as contemplated by this Section 5, the indemnifying party agrees that it shall be liable for any settlement of any proceeding
effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying
party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least
30 days prior to such settlement being entered into, and (iii) such indemnifying party shall not have reimbursed the indemnified
party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened
action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have
been sought hereunder by such indemnified party, unless such settlement, compromise or consent (a) includes an unconditional release
of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding and (b) does
not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

 

     

     

    

 

(d)       Contribution;
Limitations on Liability; Non-Exclusive Remedy. If the indemnification provided for in this Section 5 is unavailable or insufficient
to hold harmless an indemnified party under subsection (a) or (b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities referred to in subsection (a)
or (b) above, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one
hand and the Agent on the other from the offering of the Shares, or (ii) if the allocation provided by clause (i) above
is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to
in clause (i) above but also the relative fault of the Company on the one hand and the Agent on the other in connection with
the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand and the Agent on the other shall be deemed to be
in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to
the total commissions received by the Agent (before deducting expenses) from the sale of the Shares. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission
or alleged omission to state a material fact relates to information supplied by the Company or the Agent, the intent of the parties
and their relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The
Company and the Agent agree that it would not be just and equitable if contributions pursuant to this subsection (d) were
to be determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations
referred to in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims,
damages or liabilities referred to in this subsection (d) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending against any action or claim which is the subject
of this subsection (d). Notwithstanding the provisions of this subsection (d), the Agent shall not be required to contribute
any amount in excess of the commissions received by it under this Agreement. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation.

 

6.       Representations
and Agreements to Survive Delivery. All representations, warranties, and agreements of the Company herein or in certificates
delivered pursuant hereto, including but not limited to the agreements of the Agent and the Company contained in Section 5 hereof,
shall remain operative and in full force and effect regardless of any investigation made by or on behalf of the Agent or any controlling
person thereof, or the Company or any of its officers, directors, or controlling persons, and shall survive delivery of, and payment
for, the Shares to and by the Agent hereunder.

 

7.       Termination
of this Agreement.

 

(a)       The
Company shall have the right, by giving ten (10) days’ written notice as hereinafter specified, to terminate the provisions
of this Agreement relating to the solicitation of offers to purchase the Shares in its sole discretion at any time. Any such termination
shall be without liability of any party to any other party except that (i) with respect to any pending sale, through the Agent
for the Company, the obligations of the Company, including in respect of compensation of the Agent, shall remain in full force
and effect notwithstanding the termination and (ii) the provisions of Section 3(g), Section 5 and Section 6 of this Agreement shall
remain in full force and effect notwithstanding such termination.

 

     

     

    

 

(b)       The
Agent shall have the right, by giving ten (10) days’ written notice as hereinafter specified, to terminate the provisions
of this Agreement relating to the solicitation of offers to purchase the Shares in its sole discretion at any time. Any such termination
shall be without liability of any party to any other party except that the provisions of Section 3(g), Section 5 and Section 6
of this Agreement shall remain in full force and effect notwithstanding such termination.

 

(c)       Unless
earlier terminated pursuant to this Section 7, this Agreement shall automatically terminate upon the earlier to occur of the issuance
and sale of all of the Shares through the Agent on the terms and subject to the conditions set forth herein, except that the provisions
of Section 3(g), Section 5 and Section 6 of this Agreement shall remain in full force and effect notwithstanding such termination.

 

(d)       This
Agreement shall remain in full force and effect unless terminated pursuant to Sections 7(a), (b) or (c) above or otherwise by mutual
agreement of the parties; provided that any such termination by mutual agreement shall in all cases be deemed to provide that Section
3(g), Section 5 and Section 6 shall remain in full force and effect.

 

(e)       Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided that such termination
shall not be effective until the close of business on the date of receipt of such notice by the Agent or the Company, as the case
may be. If such termination shall occur prior to the Settlement Date for any sale of the Shares, such sale shall settle in accordance
with the provisions of Section 2(a)(vii) of this Agreement.

 

8.       Default
by the Company. If the Company shall fail at any Settlement Date to sell and deliver the number of Shares which it is obligated
to sell hereunder, then this Agreement shall terminate without any liability on the part of the Agent or, except as provided in
Section 3(g) hereof, any non-defaulting party. No action taken pursuant to this Section 8 shall relieve the Company from liability,
if any, in respect of such default, and the Company shall (A) hold the Agent harmless against any loss, claim or damage arising
from or as a result of such default by the Company and (B) pay the Agent any commission to which it would otherwise be entitled
absent such default.

 

9.       Notices.
Except as otherwise provided herein, all communications under this Agreement shall be in writing and (a) if to the Agent, shall
be mailed, delivered, faxed or emailed to Piper Jaffray & Co., U.S. Bancorp Center, 800 Nicollet Mall, Minneapolis, MN 55402,
Attention: General Counsel, facsimile: (612) 303-1068, email: LegalCapMarkets@pjc.com; and with a copy to K&L Gates LLP,
1 Park Plaza, Twelfth Floor, Irvine, CA 92614, Attention: Michael A. Hedge; email: Michael.Hedge@klgates.com; and (b) if to the
Company, shall be delivered via overnight delivery services or email to XBiotech Inc., 8201 E. Riverside Drive, Building 4, Suite
100, Austin, TX. 78744, Attention: Queena Han, email: qhan@xbiotech.com; and with a copy to Bryan Cave Leighton Paisner LLP, 120
Broadway, Suite 300, Santa Monica, CA, Attention: David Andersen, email: dgandersen@bclplaw.com or in each case to such other address
as the person to be notified may have requested in writing. Any party to this Agreement may change such address for notices by
sending to the parties to this Agreement written notice of a new address for such purpose.

 

     

     

    

 

10.       Persons
Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective successors and assigns and the controlling persons, officers and directors referred to in Section 6. Nothing in
this Agreement is intended or shall be construed to give to any other person, firm or corporation any legal or equitable remedy
or claim under or in respect of this Agreement or any provision herein contained. The term “successors and assigns”
as herein used shall not include any purchaser, as such purchaser, of any of the Shares from the Agent.

 

11.       Absence
of Fiduciary Relationship. The Company, having been advised by counsel, acknowledges and agrees that: (a) the Agent has
been retained solely to act as a sales agent in connection with the sale of the Shares and that no fiduciary, advisory or agency
relationship between the Company (including any of the Company’s affiliates (including directors), equity holders, creditors,
employees or agents, hereafter, “Company Representatives”), on the one hand, and the Agent on the other,
has been created or will be created in respect of any of the transactions contemplated by this Agreement, irrespective of whether
the Agent has advised or is advising the Company on other matters and irrespective of the use of the defined term “Agent;”
(b) neither the Agent nor any of its affiliates (including directors), equity holders, creditors, employees or agents, hereafter,
“Agent Representatives”) shall have any duty or obligation to the Company or any Company Representative
except as set forth in this Agreement; (c) the price and other terms of any Placement executed pursuant to this Agreement, as well
as the terms of this Agreement, are deemed acceptable to the Company and its counsel, following discussions and arms-length negotiations
with the Agent; (d) the Company is capable of evaluating and understanding, and in fact has evaluated, understands and accepts
the terms, risks and conditions of any Placement to be executed pursuant to this Agreement, and any other transactions contemplated
by this Agreement; (e) neither the Agent nor any Agent Representatives have provided any legal, accounting, regulatory or
tax advice with respect to the transactions contemplated by this Agreement and the Company has consulted its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate; (f) the Company has been advised that the Agent and the Agent
Representatives are engaged in a broad range of transactions which may involve interests that differ from those of the Company
and that the Agent and the Agent Representatives have no obligation to disclose any such interests and transactions to the Company
by virtue of any fiduciary, advisory or agency relationship, or otherwise; (g) the Company has been advised that the Agent is acting,
in respect of any Placement and the transactions contemplated by this Agreement, solely for the benefit of the Agent, and not on
behalf of the Company; and (h) the Company and the Company Representatives waive, to the fullest extent permitted by law, any claims
that they may have against the Agent or any of the Agent Representatives for breach of fiduciary duty or alleged breach of fiduciary
duty in respect of any Placement or any of the transactions contemplated by this Agreement and agree that the Agent and the Agent
Representatives shall have no liability (whether direct or indirect, in contract, tort or otherwise) to the Company or any of the
Company Representatives in respect of any person asserting any claim of breach of any fiduciary duty on behalf of or in right of
the Company or any of the Company Representatives.

 

     

     

    

 

12.       Governing
Law and Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York. The Company (on its own behalf and on behalf of its stockholders and affiliates)
hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

 

13.       Submission
to Jurisdiction, Etc. Each party hereby submits to the exclusive jurisdiction of the U.S. federal and New York state courts
sitting in the Borough of Manhattan, City of New York, in any suit or proceeding arising out of or relating to this Agreement or
the transactions contemplated hereby. The parties hereby irrevocably and unconditionally waive any objection to the laying of venue
of any lawsuit, action or other proceeding in such courts, and hereby further irrevocably and unconditionally waive and agree not
to plead or claim in any such court that any such lawsuit, action or other proceeding brought in any such court has been brought
in an inconvenient forum. The Company irrevocably designates and appoints XBiotech USA, Inc., 5217
Winnebago Lane, Austin, TX 78744, as its authorized agent in the United States upon which process may be served in any such
suit or proceeding, and agrees that service of process upon such authorized agent be certified or registered mail, or by personal
delivery by Federal Express, to such authorized agent shall be deemed in every respect effective service of process upon the Company
in any such suit or proceeding. The Company further agrees to take any and all actions as may be necessary to maintain such designation
and appointment of such agent in full force and effect for a period of five years from the date of this Agreement.

 

14.       Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together
shall constitute one and the same instrument.

 

15.       Construction.
The section and exhibit headings herein are for convenience only and shall not affect the construction hereof. References
herein to any law, statute, ordinance, code, regulation, rule or other requirement of any governmental authority shall be deemed
to refer to such law, statute, ordinance, code, regulation, rule or other requirement of any governmental authority as amended,
reenacted, supplemented or superseded in whole or in part and in effect from time to time and also to all rules and regulations
promulgated thereunder.

 

[Signature Page Follows]

 

 

     

     

    

 

Please sign and return to the Company the enclosed
duplicates of this letter whereupon this letter will become a binding agreement between the Company and the Agent in accordance
with its terms.

 

	 	Very truly yours,	 
	 	 	 
	 	XBiotech Inc.	 
	 	 	 	 
	 	By:	/s/ Queena Han	 
	 	 	Name: Queena Han	 
	 	 	Title: Vice President, Finance and Human
Resources, and Secretary	 
	 	 	 	 

 

Confirmed as of the date first

above mentioned.

 

	 	 
	PIPER JAFFRAY & CO.	 
	 	 
	 	 	 
	By:	/s/ Neil A. Riley	 
	 	Name: Neil A. Riley	 
	 	Title: Managing Director	 
	 	 	 

 

 

 

     

     

    

 

SCHEDULE 1

 

FORM OF PLACEMENT NOTICE

 

No Facsimile and No Voicemail

 

	From:	XBiotech Inc.
	 	 
	To:	
        Piper Jaffray & Co.

         

        Attention:

         

        Neil A. Riley

        Neil.A.Riley@pjc.com

         

        Connor N. Anderson

        Connor.N.Anderson@pjc.com

         

        Tom Wright

        Thomas.E.Wright@pjc.com

         

        Jay A. Hershey

        Jay.A.Hershey@pjc.com

         

	
        Date:

        

        
	
        [●], 20[●]

        

	 	 
	Subject:	Equity Distribution Agreement – Placement Notice
	 	 
	Gentlemen:	 
	 	 

Pursuant to the terms and subject to the conditions contained in
the Equity Distribution Agreement between XBiotech Inc., a company incorporated under the laws of the Province of British Columbia
(the “Company”), and Piper Jaffray & Co. (“Agent”) dated April 30, 2019 (the “Agreement”), the
Company hereby requests that Agent sell up to [●] shares of the Company’s common stock, no par value per share, at
a minimum market price of $[●] per share. Sales should begin on the date of this Placement Notice and shall continue until
[[●], 20[●]/[all shares are sold]].

 

 

 

Schedule 1

     

     

    

 

SCHEDULE 2

 

NOTICE PARTIES 

 

 

XBiotech Inc.

 

John Simard, Chief Executive Officer

jsimard@xbiotech.com

 

Queena Han, Vice President, Finance and Human Resources, and Secretary

qhan@xbiotech.com

 

Piper Jaffray & Co.

 

Neil A. Riley

Neil.A.Riley@pjc.com

 

Connor N. Anderson

Connor.N.Anderson@pjc.com

 

Tom Wright

Thomas.E.Wright@pjc.com

 

Jay A. Hershey

Jay.A.Hershey@pjc.com

 

 

 

Schedule 2

     

     

    

 

SCHEDULE 3

 

FORM OF REPRESENTATION CERTIFICATE

PURSUANT TO SECTION 3(q) OF THE AGREEMENT

 

[●], 20[●]

 

PIPER JAFFRAY & CO.

U.S. Bancorp Center

800 Nicollet Mall

Minneapolis, Minnesota 55402

Ladies and Gentlemen:

 

The undersigned, the duly qualified and elected [●], of XBiotech
Inc., a company incorporated under the laws of the Province of British Columbia (the “Company”), does hereby
certify in such capacity and on behalf of the Company, pursuant to Section 3(q) of the Equity Distribution Agreement, dated
April 30, 2019 (the “Equity Distribution Agreement”), between the Company and Piper Jaffray & Co.,
that to the best of the knowledge of the undersigned:

 

(i)                 
The representations and warranties of the Company in this Agreement are true and correct, in all material respects, as if
made at and as of the date of the certificate, and the Company has complied with all the agreements and satisfied all the conditions
on its part to be performed or satisfied at or prior to the date of the certificate;

 

(ii)               
No stop order or other order suspending the effectiveness of the Registration Statement or any part thereof or any amendment
thereof or the qualification of the Shares for offering or sale or notice that would prevent the use of the Registration Statement,
nor suspending or preventing the use of the Prospectus or any Permitted Free Writing Prospectus, has been issued, and no proceeding
for that purpose has been instituted or, to the best of the Company’s knowledge, is contemplated by the Commission or any
state or regulatory body;

 

(iii)             
The Shares have been duly and validly authorized by the Company and all corporate action required to be taken for the authorization,
issuance and sale of the Shares has been validly and sufficiently taken; and

 

(iv)             
The signers of this certificate have carefully examined the Registration Statement, the Prospectus and any Permitted Free
Writing Prospectus, and any amendments thereof or supplements thereto (including any documents filed under the Exchange Act and
deemed to be incorporated by reference into the Prospectus and any Permitted Free Writing Prospectus),

 

(A)              
each part of the Registration Statement and the Prospectus, and any amendments thereof or supplements thereto (including
any documents filed under the Exchange Act and deemed to be incorporated by reference into the Prospectus) contain, and contained
when such part of the Registration Statement (or such amendment) became effective, all statements and information required to be
included therein, each part of the Registration Statement, or any amendment thereof, does not contain, and did not contain, when
such part of the Registration Statement (or such amendment) became effective, any untrue statement of a material fact or omit to
state, and did not omit to state when such part of the Registration Statement (or such amendment) became effective, any material
fact required to be stated therein or necessary to make the statements therein not misleading,

 

 

Schedule 3

     

     

    

 

(B)              
at no time during the period that begins on the earlier of the date of such Prospectus or Permitted Free Writing Prospectus
and the date such Prospectus or Permitted Free Writing Prospectus was filed with the Commission and ends on the date of this certificate
did such Prospectus or Permitted Free Writing Prospectus, as then amended or supplemented, include an untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading,

 

(C)              
since the date of the Equity Distribution Agreement, there has occurred no event required to be set forth in an amended
or supplemented prospectus which has not been so set forth, and there has been no document required to be filed under the Exchange
Act that upon such filing would be deemed to be incorporated by reference into the Prospectus or any Permitted Free Writing Prospectus
that has not been so filed,

 

(D)             
except as stated in the Prospectus or any Permitted Free Writing Prospectus, the Company has not incurred any material liabilities
or obligations, direct or contingent, or entered into any material transactions, not in the ordinary course of business, or declared
or paid any dividends or made any distribution of any kind with respect to its capital stock, and except as disclosed in the Prospectus
and any Permitted Free Writing Prospectus, there has not been any change in the capital stock (other than a change in the number
of outstanding Common Stock due to sales of Shares pursuant to the Equity Distribution Agreement and the issuance of shares of
Common Stock upon the exercise of equity awards or warrants), or any material change in the short term or long term debt, or any
Material Adverse Effect or any development involving a prospective Material Adverse Effect (whether or not arising in the ordinary
course of business), or any loss by strike, fire, flood, earthquake, accident or other calamity, whether or not covered by insurance,
incurred by the Company, and

 

(E)              
except as stated in the Prospectus and any Permitted Free Writing Prospectus, there is not pending, or, to the knowledge
of the Company, threatened or contemplated, any action, suit or proceeding to which the Company is a party before or by any court
or governmental agency, authority or body, or any arbitrator, which might result in a Material Adverse Effect.

 

Capitalized terms used herein without definition shall have the
meanings given to such terms in the Equity Distribution Agreement.

 

 

Schedule 3

     

     

    

 

	 	XBiotech Inc.	 
	 	 	 	 
	 	By:	/s/ Queena Han	 
	 	 	Name: Queena Han	 
	 	 	Title: Vice President, Finance and Human
Resources, and Secretary	 

 

 

 

 

 

Schedule 3

     

     

    

 

SCHEDULE 4

 

SUBSIDIARIES

 

 

 

	Name	Country
	 	 
	XBiotech USA, Inc.	United States (Delaware)
	XBiotech Switzerland AG	Switzerland
	XBiotech Japan K.K.	Japan
	XBiotech Germany GmbH	Germany

 

 

 

 

 

Schedule 4

     

     

    

 

EXHIBIT A

 

FORM OF UNITED STATES COMPANY COUNSEL OPINION

 

(attached)

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT B

 

FORM OF CANADA COMPANY COUNSEL OPINION

 

(attached)

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