Document:

Exhibit

EXHIBIT 10.1

FIRST AMENDMENT, WAIVER AND COMMITMENT INCREASE AGREEMENT
THIS FIRST AMENDMENT, WAIVER AND COMMITMENT INCREASE AGREEMENT, effective as of August 3, 2017 (this “Amendment”), is by and among GRIFFIN-AMERICAN HEALTHCARE REIT III HOLDINGS, LP, a Delaware limited partnership (the “Borrower”), GRIFFIN-AMERICAN HEALTHCARE REIT III, INC., a Maryland corporation (the “Parent”), the Subsidiary Guarantors identified on the signature pages hereto, the lenders identified on the signature pages hereto  as Existing Lenders (the “Existing Lenders”), the Person identified on the signature pages hereto as a New Lender (individually a “New Lender” and, together with the Existing Lenders, the “Lenders”), BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and KEYBANK, NATIONAL ASSOCIATION, as a Swing Line Lender and a L/C Issuer.
W I T N E S E T H
WHEREAS, a $500,000,000 (which amount may be increased to the amount of $1,000,000,000) credit facility consisting of (a) a revolving credit facility in an amount of Three Hundred Million Dollars ($300,000,000) (the “Revolving Credit Facility”) and (b) a term loan facility in the amount of Two Hundred Million Dollars ($200,000,000) (the “Term Loan Facility” and together with the Revolving Credit Facility, the “Credit Facilities”) was established pursuant to that Credit Agreement dated as of February 3, 2016 (as amended and modified, the “Existing Credit Agreement”) among the Borrower, the Parent, certain subsidiaries of the Parent identified therein as Guarantors, the Lenders identified therein, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and KeyBank, National Association, as a Swing Line Lender and a L/C Issuer;
WHEREAS, the Borrower has requested an increase in the Term Loan Facility in an aggregate amount equal to $50,000,000 pursuant to the provisions of Section 2.01(e) of the Credit Agreement (the “Incremental Term Loan”) and the New Lender has agreed to provide such Incremental Term Loan;
WHEREAS, the Required Lenders have agreed to amend the Existing Credit Agreement and waive certain provisions thereof, on the terms and conditions provided herein;
NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

PART 1 
DEFINITIONS

SUBPART 1.1    Certain Definitions.  The following terms used in this Amendment, including its preamble and recitals, have the following meanings:

“Amended Credit Agreement” means the Existing Credit Agreement as amended hereby.  

“First Amendment Effective Date” is defined in Subpart 3.1.

SUBPART 1.2    Other Definitions.  Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Existing Credit Agreement.

PART 2 
AMENDMENTS TO 
EXISTING CREDIT AGREEMENT

SUBPART 2.1    The following definitions are hereby added to Section 1.01 of the Existing Credit Agreement in appropriate alphabetical order to read as follows:

“Incremental Term Loan” has the meaning set forth in Section 2.01(d).

“Incremental Term Loan Commitment” means, as to each Lender, its obligation to make its portion of the Incremental Term Loan to the Borrower pursuant to Section 2.01(d) and the other terms and conditions of this Agreement, in the principal amount set forth opposite such Lender’s name on Schedule 2.01, as such amounts may be adjusted from time to time in accordance with this Agreement.  

“Initial Term Loan” has the meaning set forth in Section 2.01(d).

“Initial Term Loan Commitment” means, as to each Lender, its obligation to make its portion of the Initial Term Loan to the Borrower pursuant to Section 2.01(d) and the other terms and conditions of this Agreement, in the principal amount set forth opposite such Lender’s name on Schedule 2.01, as such amounts may be adjusted from time to time in accordance with this Agreement.  The aggregate amount of the Initial Term Loan Commitment was $200,000,000.

“Integrated Facilities” means any Real Property Asset with mixed uses consisting of both (i) assisted living and independent living properties and (ii) skilled nursing facilities, but specifically excluding medical office buildings and life science buildings.
SUBPART 2.2    The definition of “Capitalization Rate” set forth in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Capitalization Rate” means for (i) medical office buildings and life science buildings, 7.5%; (ii) assisted living and independent living properties, 7.75%; (iii) skilled nursing facilities and hospitals, 10.25% and (iv) Integrated Facilities, 8.75%.
SUBPART 2.3    The definition of “Term Loan Commitment” set forth in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

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“Term Loan Commitment” means, with respect to each Term Loan Lender, the commitment of such Term Loan Lender to make its portion of the Term Loan to the Borrower pursuant to Section 2.01(d), in the principal amount set forth opposite such Term Loan Lender’s name on Schedule 2.01; provided that, at any time after funding of a Term Loan, the determination of “Required Lender” shall also be based on the Outstanding Amount of such Term Loan.  The aggregate principal amount of the Term Loan Commitments of all of the Term Loan Lenders as in effect on the Closing Date was Two Hundred Million Dollars ($200,000,000) and the aggregate principal amount of the Term Loan Commitments of all of the Term Loan Lenders as in effect on the First Amendment Effective Date is Two Hundred Fifty Million Dollars ($250,000,000).
SUBPART 2.4    Section 2.01(d) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

(d)    Term Loan.  Subject to the terms and conditions hereof and in reliance upon the representations and warranties set forth herein, each Term Loan Lender severally, but not jointly, agrees to fund (a) its pro rata share of a term loan to the Borrower (the “Initial Term Loan”) on the Closing Date in an aggregate amount not to exceed such Term Loan Lender’s Initial Term Loan Commitment and (b) its pro rata share of an incremental term loan to the Borrower (the “Incremental Term Loan”) on the First Amendment Effective Date in an aggregate amount not to exceed such Term Loan Lender’s Incremental Term Loan Commitment; provided, that after giving effect to any Borrowing under the Term Loan, the outstanding amount of the Term Loan shall not exceed the total Term Loan Commitment.  Term Loans may consist of Base Rate Loans, Eurodollar Loans, or a combination thereof, as provided herein.  Term Loans may be repaid in whole or in part at any time but amounts repaid on the Term Loan may not be reborrowed.  The Incremental Term Loan shall be made in the form of an additional Term Loan.  The Incremental Term Loan shall be made subject to the same terms and conditions as the Initial Term Loans, including, without limitation, the Term Loan Maturity Date.
    
SUBPART 2.5    Section 4.02(b) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 (b)    No Default or Event of Default shall have occurred and be continuing immediately before the making of such Extension of Credit and no Default shall exist immediately thereafter;
SUBPART 2.6    Section 6.12(b) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

(b)    Consolidated Secured Leverage Ratio.  The Credit Parties shall cause the Consolidated Secured Leverage Ratio, as of the end of any fiscal quarter, to be equal to or less than forty percent (40%).
SUBPART 2.7    Schedule 2.01 of the Existing Credit Agreement is hereby amended and restated in its entirety in the form attached hereto as Annex I.

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PART 3 
CONDITIONS TO EFFECTIVENESS

SUBPART 3.1    First Amendment Effective Date.  This Amendment shall be and become effective as of the date hereof (the “First Amendment Effective Date”) when all of the conditions set forth in this Part 3 shall have been satisfied, and thereafter this Amendment shall be known, and may be referred to, as the “First Amendment”.

SUBPART 3.2    Execution of Counterparts of Amendment.  The Administrative Agent shall have received counterparts (or other evidence of execution, including telephonic message or other electronic imaging means, satisfactory to the Administrative Agent) of this Amendment, which collectively shall have been duly executed on behalf of the Borrower, the Parent, the Subsidiary Guarantors, Lenders constituting Required Lenders (as defined in the Existing Credit Agreement), the New Lender and the Administrative Agent.  

SUBPART 3.3    Execution of Notes.  The Administrative Agent shall have received new or amended and restated Notes (to the extent requested by the Lenders) duly executed by the Borrower to reflect the Incremental Term Loan hereunder.
SUBPART 3.4    Opinions of Counsel.  The Administrative Agent shall have received opinions of counsel, in form and substance reasonably satisfactory to the Administrative Agent, of (i) Cox, Castle & Nicholson LLP, special New York and Delaware counsel for the Credit Parties and (ii) Venable LLP, special local counsel for the Credit Parties for the state of Maryland, in each case addressed to the Administrative Agent and the Lenders.
SUBPART 3.5    Officer’s Certificates.  The Administrative Agent shall have received certificates of responsible officers or directors (as appropriate based on the applicable jurisdiction of organization) of the Credit Parties (i) attaching copies of the resolutions of its board of directors or managers (or analogous governing body) approving and adopting the transactions contemplated by this Amendment, and authorizing the execution and delivery thereof (which in each case may be included in the resolutions approving the Credit Agreement and the transactions contemplated thereby), certified by a secretary or assistant secretary to be true and correct as of the date hereof; (ii) certifying that, before and after giving effect to such Incremental Term Loan, no Default or Event of Default shall exist immediately before or immediately after giving effect to this Amendment and the establishment of the Incremental Term Loan hereunder and (iii) certifying that, before and after giving effect to such Incremental Term Loan, the representations and warranties of each Credit Party contained in Article V of the Existing Credit Agreement or any other Credit Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects on and as of the date of such increase, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date.
SUBPART 3.6      Amendment to Fee Letter.  Receipt by the Administrative Agent of an amendment to that certain Fee Letter dated as of October 21, 2015, duly executed by MLPFS, Bank of America and the Borrower.

4

SUBPART 3.7    Fees and Expenses.  Payment by the Credit Parties to the Administrative Agent of (i) all fees and expenses relating to the preparation, execution and delivery of this Amendment which are due and payable on the First Amendment Effective Date and (ii) all fees, including but not limited to arrangement and upfront fees required under any engagement letter or fee letter due in connection with the syndication of the commitments to fund such Incremental Term Loan. 

PART 4
WAIVER

Subject to the occurrence of the First Amendment Effective Date, the Lenders hereby waive, effective as of the date and time the NC Entities Default (as defined below) is deemed to have occurred, the Event of Default caused by the Borrower failure to comply with Section 7.08(c) of the Existing Credit Agreement by providing ten (10) days prior written notice to the Administrative Agent of (a) the change in name of:  (i) GAHC3 Mooresville NC ALF, LLC to GAHC3 Mooresville NC ALF, LP, (ii) GAHC3 North Raleigh NC ALF, LLC to GAHC3 North Raleigh NC ALF, LP, (iii) GAHC3 Wake Forest NC ALF, LLC to GAHC3 Wake Forest NC ALF, LP and (iv) GAHC3 Clemmons NC ALF, LLC to GAHC3 Clemmons NC ALF, LP and (b) the change in form of organization from Delaware limited liability companies to Delaware limited partnerships with respect to each of the foregoing entities (collectively, the “NC Entities Default”).  The waiver of the NC Entities Default is a one-time waiver and shall be effective only in the specific circumstance provided for above and only for the purpose for which given.  Except as waived pursuant to the terms of this Part 4 or amended pursuant to Part 2, the Existing Credit Agreement and all other Credit Documents shall continue in full force and effect.

PART 5
LENDER JOINDER

From and after the First Amendment Effective Date, by execution of this Amendment, the New Lender hereby acknowledges, agrees and confirms that, by its execution of this Amendment, such Person will be deemed to be a party to the Existing Credit Agreement (as amended hereby) and a “Term Loan Lender” and a “Lender” for all purposes of the Existing Credit Agreement (as amended hereby), and shall have all of the rights and obligations of a Lender thereunder as if it had executed the Existing Credit Agreement (as amended hereby).  Such Person hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions applicable to the Lenders contained in the Existing Credit Agreement (as amended hereby).

PART 6
MISCELLANEOUS

SUBPART 5.1    Construction.  This Amendment is a Credit Document executed pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of the Amended Credit Agreement.

5

SUBPART 5.2    Representations and Warranties.  Each Credit Party hereby represents and warrants that it:  (a) has the requisite corporate power and authority to execute, deliver and perform this Amendment, and (b) is duly authorized to, and has been authorized by all necessary corporate action, to execute, deliver and perform this Amendment, (c) after giving effect to this Amendment, the representations and warranties contained in Article V of the Amended Credit Agreement are true and correct in all material respects on and as of the date hereof upon giving effect to this Amendment as though made on and as of such date (except for those which expressly relate to an earlier date) and (d) no Default or Event of Default exists under the Existing Credit Agreement on and as of the date hereof upon giving effect to this Amendment.

SUBPART 5.3    Counterparts.  This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic means shall be effective as delivery of a manually executed original counterpart of this Amendment.

SUBPART 5.4    Binding Effect.  This Amendment, the Amended Credit Agreement and the other Credit Documents embody the entire agreement between the parties and supersede all prior agreements and understandings, if any, relating to the subject matter hereof.  These Credit Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.  Except as expressly modified and amended in this Amendment, all the terms, provisions and conditions of the Credit Documents shall remain unchanged and shall continue in full force and effect.

SUBPART 5.5    GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

SUBPART 5.6    Severability.  If any provision of this Amendment is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions. 

SUBPART 5.7     Affirmation.  Except as specifically amended above, the Credit Documents (and all covenants, terms, conditions and agreements therein), shall remain in full force and effect, and are hereby ratified and confirmed in all respects by the Credit Parties.  Each Credit Party covenants and agrees to comply with all of the terms, covenants and conditions of the Existing Credit Agreement, as otherwise waived, consented to and amended hereby, notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on Lenders’ part which might otherwise constitute or be construed as a waiver of or amendment to such terms, covenants and conditions. 

SUBPART 5.8    No Waiver.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided in this Amendment, operate as a waiver of any right, power or remedy of Lenders, nor constitute a waiver of any provision of any Credit 

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Document or any other documents, instruments and agreements executed or delivered in connection with any of the foregoing.  Except as otherwise provided for in this Amendment, nothing herein is intended or shall be construed as a waiver of any existing Defaults or Events of Default under the Credit Documents or any of Lenders’ rights and remedies in respect of such Defaults or Events of Default.

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.
		
	BORROWER:
	GRIFFIN-AMERICAN HEALTHCARE REIT III HOLDINGS, LP, a Delaware limited partnership

	
				
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 

	 
	By:
	/s/ Brian S. Peay

	 
	 
	Name:
	Brian Peay

	 
	 
	Title:
	CFO

		
	PARENT:
	GRIFFIN-AMERICAN HEALTHCARE REIT III, INC., 

a Maryland corporation

	
			
	By:
	/s/ Brian S. Peay

	 
	Name:
	Brian Peay

	 
	Title:
	CFO

SUBSIDIARY
		
	GUARANTORS:
	GAHC3 LITHONIA GA MOB, LLC, 

a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings,

	 
	LP, a Delaware limited partnership,

	 
	its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

S-1

GAHC3 STOCKBRIDGE GA MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 STOCKBRIDGE GA MOB II, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 STOCKBRIDGE GA MOB III, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

S-2

GAHC3 ACWORTH GA MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 LEE’S SUMMIT MO MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings,

	 
	LP, a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 WICHITA KS MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

S-3

GAHC3 DELTA VALLEY ALF PORTFOLIO, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 MOUNT DORA FL MOB II, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 MT. JULIET TN MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

S-4

GAHC3 HOMEWOOD AL MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 GLEN BURNIE MD MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 MARIETTA GA MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

S-5

GAHC3 MARIETTA GA MOB II, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 NAPA MEDICAL CENTER, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 CHESTERFIELD CORPORATE PLAZA, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

S-6

GAHC3 BATESVILLE MS ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Delta Valley ALF Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT

	 
	 
	 
	III, Inc., a Maryland corporation, 

	 
	 
	 
	its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 CLEVELAND MS ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Delta Valley ALF Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-7

GAHC3 LONGVIEW TX MEDICAL PLAZA, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 East Texas MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	Chief Financial Officer

GAHC3 LONGVIEW TX INSTITUTE MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 East Texas MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	Chief Financial Officer

S-8

GAHC3 LONGVIEW TX CSC MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 East Texas MOB Portfolio, LLC,

	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 LONGVIEW TX OCCUPATIONAL MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 East Texas MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-9

GAHC3 LONGVIEW TX OUTPATIENT MOB I, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 East Texas MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 LONGVIEW TX OUTPATIENT MOB II, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 East Texas MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-10

GAHC3 MARSHALL TX MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 East Texas MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 SOUTHGATE KY MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Independence MOB Portfolio, LLC,

	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-11

GAHC3 SOMERVILLE MA MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Independence MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 MORRISTOWN NJ MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Independence MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-12

GAHC3 VERONA NJ MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Independence MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 BRONX NY MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Independence MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-13

GAHC3 SPRINGDALE AR ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Delta Valley ALF Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 OLYMPIA FIELDS IL MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Mount Olympia MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-14

GAHC3 COLUMBUS OH MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Mount Olympia MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 MOUNT DORA FL MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Mount Olympia MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-15

GAHC3 MOORESVILLE NC ALF, LP,
a Delaware limited partnership
	
						
	By:
	GAHC3 North Carolina ALF Portfolio GP, LLC,

	 
	a Delaware limited liability company, its General Partner

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 NORTH RALEIGH NC ALF, LP, 
a Delaware limited partnership
	
						
	By:
	GAHC3 North Carolina ALF Portfolio GP, LLC,

	 
	a Delaware limited liability company, its General Partner

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-16

GAHC3 WAKE FOREST NC ALF, LP,
a Delaware limited partnership
	
						
	By:
	GAHC3 North Carolina ALF Portfolio GP, LLC,

	 
	a Delaware limited liability company, its General Partner

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 DURANGO CO MEDICAL CENTER, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Orange Star Medical Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-17

GAHC3 KELLER TX MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Orange Star Medical Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 WHARTON TX MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Orange Star Medical Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-18

GAHC3 FRIENDSWOOD TX MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Orange Star Medical Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 KINGWOOD TX MOB I, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Kingwood MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-19

GAHC3 KINGWOOD TX MOB II, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Kingwood MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 WATERLOO IL MOB & IMAGING CENTER, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Southern Illinois MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-20

GAHC3 WATERLOO IL SURGERY CENTER, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Southern Illinois MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 WATERLOO IL DIALYSIS CENTER, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Southern Illinois MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-21

GAHC3 95TH NAPERVILLE IL MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Naperville MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 OGDEN NAPERVILLE IL MOB, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Naperville MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-22

GAHC3 SOUTHLAKE TX HOSPITAL, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 VOORHEES NJ MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 OMAHA NE ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Nebraska Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-23

GAHC3 BENNINGTON NE ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Nebraska Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 BRAINTREE MA SNF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Fox Grape SNF Portfolio, LLC,

	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-24

GAHC3 BRIGHTON MA SNF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Fox Grape SNF Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 DUXBURY MA SNF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Fox Grape SNF Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-25

GAHC3 HINGHAM MA SNF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Fox Grape SNF Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 WEYMOUTH MA SNF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Fox Grape SNF Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-26

GAHC3 NORWICH CT MOB I, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Norwich CT MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 NORWICH CT MOB II, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Norwich CT MOB Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-27

GAHC3 PREMIER NOVI MI MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 HOBART IN ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Mountain Crest Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-28

GAHC3 EKHART IN ILF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Mountain Crest Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 EKHART IN ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Mountain Crest Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-29

GAHC3 NILES MI ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Mountain Crest Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 BOYERTOWN PA ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Pennsylvania Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-30

GAHC3 YORK PA ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Pennsylvania Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 WASHINGTON DC SNF, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 PALMYRA PA ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Pennsylvania Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

S-31

GAHC3 JOPLIN MO MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 AUSTELL GA MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 MIDDLETOWN OH MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

S-32

GAHC3 CLEMMONS NC ALF, LP, 
a Delaware limited partnership
	
						
	By:
	GAHC3 North Carolina ALF Portfolio GP, LLC,

	 
	a Delaware limited liability company, its General Partner

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 LAPORTE IN ALF, LLC, 
a Delaware limited liability company
	
						
	By:
	GAHC3 Mountain Crest Senior Housing Portfolio, LLC,

	 
	a Delaware limited liability company, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	 
	Title:
	CFO

GAHC3 WESTBROOK CT MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

S-33

GAHC3 SNELLVILLE GA MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

GAHC3 NEW LONDON CT MOB, LLC, 
a Delaware limited liability company
	
					
	By:
	Griffin-American Healthcare REIT III Holdings, LP,

	 
	a Delaware limited partnership, its Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT III, Inc.,

	 
	 
	a Maryland corporation, its General Partner

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian S. Peay

	 
	 
	 
	Name:
	Brian Peay

	 
	 
	 
	Title:
	CFO

S-34

ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A., as Administrative Agent

	
		
	By:
	/s/ Keegan Koch

	Name:
	Keegan Koch

	Its:
	SVP

S-2

EXISTING LENDERS:

BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender

	
		
	By:
	/s/ Keegan Koch

	Name:
	Keegan Koch

	Its:
	SVP

S-3

KEYBANK, NATIONAL ASSOCIATION, as a Lender 
and a L/C Issuer

	
		
	By:
	/s/ Joe Schober

	Name:
	Joe Schober

	Its:
	Vice President

S-4

FIRST BANK, a Missouri state chartered bank, as a Lender
 
	
		
	By:
	 

	Name:
	 

	Its:
	 

CITIZENS BANK, NATIONAL ASSOCIATION, as a Lender 

	
		
	By:
	/s/ Nan E. Delahunt

	Name:
	Nan E. Delahunt

	Its:
	Vice President

FIFTH THIRD BANK, an Ohio Banking Corporation, as a Lender 

	
		
	By:
	/s/ John Kong

	Name:
	John Kong

	Its:
	Officer

THE HUNTINGTON NATIONAL BANK, as a Lender 

	
		
	By:
	/s/ Michael Shiferaw

	Name:
	Michael Shiferaw

	Its:
	Senior Vice President

S-5

NEW LENDER:

BANK OF THE WEST, A CALIFORNIA BANKING CORPORATION, as a Lender

	
		
	By:
	/s/ Benjamin Arroyo

	Name:
	Benjamin Arroyo

	Its:
	Vice President

	
		
	By:
	/s/ Cris Galvez

	Name:
	Cris Galvez

	Its:
	Vice President

S-6EX-10.1

 Exhibit 10.1 

PURCHASE AGREEMENT 

PURCHASE AGREEMENT (the “Agreement”), dated as of August 8, 2017, by and between RXi PHARMACEUTICALS
CORPORATION, a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company (the “Investor”). 

WHEREAS: 
 Subject to the
terms and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to buy from the Company, up to Fifteen Million Dollars ($15,000,000) of the Company’s common stock, $0.0001 par value per
share (the “Common Stock”). The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase Shares.” 

NOW THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Company and the Investor hereby agree as follows: 
  

	 	1.	CERTAIN DEFINITIONS. 

 For purposes of this Agreement, the following terms shall have the
following meanings: 
 (a) “Accelerated Purchase Share Amount” means, with respect to any Accelerated Purchase made pursuant
to Section 2(b) hereof, the number of Purchase Shares directed by the Company to be purchased by the Investor on an Accelerated Purchase Notice, which number of Purchase Shares shall not exceed the lesser of (i) 300% of the
number of Purchase Shares directed by the Company to be purchased by the Investor pursuant to the corresponding Regular Purchase Notice for the corresponding Regular Purchase referred to in Section 2(b) hereof (subject to
the Purchase Share limitations contained in Section 2(a) hereof) and (ii) the Accelerated Purchase Share Percentage multiplied by the trading volume of the Common Stock on the Principal Market during normal trading
hours on the Accelerated Purchase Date. 
 (b) “Accelerated Purchase Date” means, with respect to any Accelerated Purchase
made pursuant to Section 2(b) hereof, the Business Day immediately following the applicable Purchase Date with respect to the corresponding Regular Purchase referred to in Section 2(b) hereof. 

(c) “Accelerated Purchase Notice” means, with respect to any Accelerated Purchase made pursuant to
Section 2(b) hereof, an irrevocable written notice from the Company to the Investor directing the Investor to buy a specified Accelerated Purchase Share Amount on the applicable Accelerated Purchase Date pursuant to
Section 2(b) hereof at the applicable Accelerated Purchase Price. 
 (d) “Accelerated Purchase Share
Percentage” means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, thirty percent (30%). 

(e) “Accelerated Purchase Price” means, with respect to any particular Accelerated Purchase made pursuant to Section 2(b)
hereof, the lower of (i) ninety-seven percent (97%) of the VWAP during (A) the entire trading day on the Accelerated Purchase Date, if the volume of shares of Common Stock traded on the Principal Market on the Accelerated Purchase Date has
not exceeded the Accelerated Purchase Share Volume Maximum, or (B) the portion of the trading day of the Accelerated Purchase Date (calculated starting at the beginning of normal trading hours) until such time at which the volume of shares of
Common Stock traded on the Principal Market has exceeded the Accelerated Purchase Share Volume Maximum and (ii) the Closing Sale Price on the Accelerated Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction). 

 (f) “Accelerated Purchase Share Volume Maximum” means the number of shares of
Common Stock traded on the Principal Market during normal trading hours on the Accelerated Purchase Date equal to (i) the amount of shares of Common Stock properly directed by the Company to be purchased on the Accelerated Purchase Notice,
divided by (ii) the Accelerated Purchase Share Percentage (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar
transaction). 
 (g) “Additional Purchase Notice” means, with respect to any Additional Purchase pursuant to
Section 2(c) hereof, an irrevocable written notice from the Company to the Investor directing the Investor to buy such applicable amount of Purchase Shares at the applicable Additional Purchase Price as specified by the
Company therein on the Purchase Date. 
 (h) “Additional Purchase Price” means, with respect to any Additional Purchase made
pursuant to Section 2(c) hereof, the lower of: (i) $2.00 per share and (ii) ninety-five percent (95%) of the Purchase Price (as defined below) (in each case, to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement). 

(i) “Available Amount” means, initially, Fifteen Million Dollars ($15,000,000) in the aggregate, which amount shall be reduced
by the Purchase Amount each time the Investor purchases shares of Common Stock pursuant to Section 2 hereof. 
 (j)
“Average Price” means a price per Purchase Share (rounded to the nearest tenth of a cent) equal to the quotient obtained by dividing (i) the aggregate gross purchase price paid by the Investor for all Purchase Shares purchased
pursuant to this Agreement, by (ii) the aggregate number of Purchase Shares issued pursuant to this Agreement. 
 (k)
“Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors. 
 (l)
“Base Price” means a price per Purchase Share equal to the sum of (i) the Signing Market Price and (ii) $0.0622 (subject to adjustment for any reorganization, recapitalization, non-cash
dividend, stock split, reverse stock split or other similar transaction that occurs on or after the date of this Agreement). 
 (m)
“Business Day” means any day on which the Principal Market is open for trading, including any day on which the Principal Market is open for trading for a period of time less than the customary time. 

(n) “Closing Sale Price” means, for any security as of any date, the last closing sale price for such security on the
Principal Market as reported by the Principal Market. 
 (o) “Confidential Information” means any information disclosed by
either party to the other party, either directly or indirectly, in writing, orally or by inspection of tangible objects (including, without limitation, documents, prototypes, samples, plant and equipment), which is designated as
“Confidential,” “Proprietary” or some similar designation. Information communicated orally shall be considered Confidential Information if such information is confirmed in writing as being Confidential Information within ten
(10) Business Days after the initial disclosure. Confidential Information may also include information disclosed to a disclosing party by third parties. Confidential Information shall not, however,

  
 -2- 

 
include any information which (i) was publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing party; (ii) becomes publicly
known and made generally available after disclosure by the disclosing party to the receiving party through no action or inaction of the receiving party; (iii) is already in the possession of the receiving party without confidential restriction
at the time of disclosure by the disclosing party as shown by the receiving party’s files and records immediately prior to the time of disclosure; (iv) is obtained by the receiving party from a third party without a breach of such third
party’s obligations of confidentiality; (v) is independently developed by the receiving party without use of or reference to the disclosing party’s Confidential Information, as shown by documents and other competent evidence in the
receiving party’s possession; or (vi) is required by law to be disclosed by the receiving party, provided that the receiving party gives the disclosing party prompt written notice of such requirement prior to such disclosure and assistance
in obtaining an order protecting the information from public disclosure. 
 (p) “Custodian” means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law. 
 (q) “DTC” means The Depository Trust Company, or any
successor performing substantially the same function for the Company. 
 (r) “DWAC Shares” means shares of Common Stock that
are (i) issued in electronic form, (ii) freely tradable and transferable and without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified Deposit/Withdrawal at
Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program, or any similar program hereafter adopted by DTC performing substantially the same function. 

(s) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder. 
 (t) “Material Adverse Effect” means any material adverse effect on (i) the enforceability of any
Transaction Document, (ii) the results of operations, assets, business or financial condition of the Company and its Subsidiaries, taken as a whole, other than any material adverse effect that resulted exclusively from (A) any change in
the United States or foreign economies or securities or financial markets in general that does not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole, (B) any change that generally affects the industry in which
the Company and its Subsidiaries operate that does not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole, (C) any change arising in connection with earthquakes, other acts of God, hostilities, acts of war,
sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of war, sabotage or terrorism or military actions existing as of the date hereof, (D) any action taken by the Investor, its
affiliates or its or their successors and assigns with respect to the transactions contemplated by this Agreement, (E) the effect of any change in applicable laws or accounting rules that does not have a disproportionate effect on the Company
and its Subsidiaries, taken as a whole, or (F) any change resulting from compliance with terms of this Agreement or the consummation of the transactions contemplated by this Agreement, or (iii) the Company’s ability to perform in any
material respect on a timely basis its obligations under any Transaction Document to be performed as of the date of determination. 
 (u)
“Maturity Date” means the first day of the month immediately following the thirty (30) month anniversary of the Commencement Date. 

  
 -3- 

 (v) “PEA Period” means the period commencing at 9:30 a.m., Eastern time, on the
fifth (5th) Business Day immediately prior to the filing of any post-effective amendment to the Registration Statement (as defined herein) or New Registration Statement (as such term is defined in
the Registration Rights Agreement), and ending at 9:30 a.m., Eastern time, on the Business Day immediately following, the effective date of any post-effective amendment to the Registration Statement (as defined herein) or New Registration Statement
(as such term is defined in the Registration Rights Agreement). 
 (w) “Person” means an individual or entity including but
not limited to any limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 

(x) “Principal Market” means The NASDAQ Capital Market (or any nationally recognized successor thereto); provided, however,
that in the event the Company’s Common Stock is ever listed or traded on The NASDAQ Global Market, The NASDAQ Global Select Market, the New York Stock Exchange, the NYSE MKT, the NYSE Arca, the OTC Bulletin Board, or the OTCQX or OTCQB operated
by the OTC Markets Group, Inc. (or any nationally recognized successor to any of the foregoing), then the “Principal Market” shall mean such other market or exchange on which the Company’s Common Stock is then listed or traded. 

(y) “Purchase Amount” means, with respect to any Regular Purchase, any Accelerated Purchase or any Additional Purchase made
hereunder, as applicable, the portion of the Available Amount to be purchased by the Investor pursuant to Section 2 hereof. 

(z) “Purchase Date” means, (i) with respect to any Regular Purchase made pursuant to
Section 2(a) hereof, the Business Day on which the Investor receives after 4:00 p.m., Eastern time, but prior to 5:00 p.m., Eastern time, of such Business Day a valid Regular Purchase Notice that the Investor is to buy
Purchase Shares pursuant to Section 2(a) hereof, or (ii) with respect to any Additional Purchase made pursuant to Section 2(c) hereof, the Business Day on which the Investor receives after
4:00 p.m., Eastern time, but prior to 5:00 p.m., Eastern time, of such Business Day a valid Additional Purchase Notice that the Investor is to buy Purchase Shares pursuant to Section 2(c) hereof, as applicable. 

(aa) “Purchase Price” means, with respect to any Regular Purchase made pursuant to Section 2(a)
hereof or any Additional Purchase made pursuant to Section 2(c) hereof (as applicable), the lower of: (i) the lowest Sale Price on the applicable Purchase Date and (ii) the arithmetic average of the three
(3) lowest Closing Sale Prices for the Common Stock during the ten (10) consecutive Business Days ending on the Business Day immediately preceding such Purchase Date (in each case, to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement). 

(bb) “Regular Purchase Notice” means, with respect to any Regular Purchase pursuant to Section 2(a)
hereof, an irrevocable written notice from the Company to the Investor directing the Investor to buy such applicable amount of Purchase Shares at the applicable Purchase Price as specified by the Company therein on the Purchase Date. 

(cc) “Sale Price” means any trade price for the shares of Common Stock on the Principal Market as reported by the Principal
Market. 
 (dd) “SEC” means the U.S. Securities and Exchange Commission. 

(ee) “Securities” means, collectively, the Purchase Shares and the Commitment Shares. 

  
 -4- 

 (ff) “Securities Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder. 
 (gg) “Signing Market Price” means $0.58, representing the consolidated
closing bid price of the Common Stock on The NASDAQ Capital Market on the date of this Agreement. 
 (hh) “Subsidiary” means
any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the voting stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated under the Securities Act. 
 (ii) “Transaction Documents” means,
collectively, this Agreement and the schedules and exhibits hereto, the Registration Rights Agreement and the schedules and exhibits thereto, and each of the other agreements, documents, certificates and instruments entered into or furnished by the
parties hereto in connection with the transactions contemplated hereby and thereby. 
 (jj) “Transfer Agent” means
Computershare, Inc., or such other Person who is then serving as the transfer agent for the Company in respect of the Common Stock. 
 (kk)
“VWAP” means in respect of an applicable Accelerated Purchase Date, the volume weighted average price of the Common Stock on the Principal Market, as reported on the Principal Market. 

 

	 	2.	PURCHASE OF COMMON STOCK. 

 Subject to the terms and conditions set forth in this
Agreement, the Company has the right to sell to the Investor, and the Investor has the obligation to purchase from the Company, Purchase Shares as follows: 

(a) Commencement of Regular Sales of Common Stock. Upon the satisfaction of all of the conditions set forth in Sections 7 and
8 hereof (the “Commencement” and the date of satisfaction of such conditions the “Commencement Date”) and thereafter, the Company shall have the right, but not the obligation, to direct the Investor, by its
delivery to the Investor of a Regular Purchase Notice from time to time, to purchase up to One Hundred Fifty Thousand (150,000) Purchase Shares (each such purchase a “Regular Purchase”), at the Purchase Price on the Purchase Date;
provided, however, that (i) the Regular Purchase may be increased to up to Two Hundred Thousand (200,000) Purchase Shares, provided that the Closing Sale Price of the Common Stock is not below $0.65 on the Purchase Date,
(ii) the Regular Purchase may be increased to up to Two Hundred Fifty Thousand (250,000) Purchase Shares, provided that the Closing Sale Price of the Common Stock is not below $0.75 on the Purchase Date, (iii) the Regular Purchase may be
increased to up to Three Hundred Thousand (300,000) Purchase Shares, provided that the Closing Sale Price of the Common Stock is not below $0.80 on the Purchase Date, (iv) the Regular Purchase may be increased to up to Three Hundred Fifty
Thousand (350,000) Purchase Shares, provided that the Closing Sale Price of the Common Stock is not below $0.90 on the Purchase Date, and (v) the Regular Purchase may be increased to up to Five Hundred Thousand (500,000) Purchase Shares,
provided that the Closing Sale Price of the Common Stock is not below $1.00 on the Purchase Date (all of which share and dollar amounts shall be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction); and provided, further, however, that the Investor’s committed obligation under any single Regular Purchase shall not
exceed One Million Dollars ($1,000,000). If the Company delivers any Regular Purchase Notice for a Purchase Amount in excess of the limitations contained in the immediately preceding sentence, such Regular Purchase Notice shall be void ab
initio to the extent of the amount by which the number of Purchase Shares set forth in such Regular Purchase Notice exceeds the 

  
 -5- 

 
number of Purchase Shares which the Company is permitted to include in such Purchase Notice in accordance herewith, and the Investor shall have no obligation to purchase such excess Purchase
Shares in respect of such Regular Purchase Notice; provided that the Investor shall remain obligated to purchase the number of Purchase Shares which the Company is permitted to include in such Regular Purchase Notice. The Company may deliver
multiple Regular Purchase Notices to the Investor so long as at least one (1) Business Day has passed since the most recent Regular Purchase was completed. Notwithstanding the foregoing, the Company shall not deliver any Regular Purchase
Notices during the PEA Period. 
 (b) Accelerated Purchases. Subject to the terms and conditions of this Agreement, in addition to
purchases of Purchase Shares as described in Section 2(a) above, the Company shall also have the right, but not the obligation, to direct the Investor by the Company’s delivery to the Investor of an Accelerated
Purchase Notice from time to time, and the Investor thereupon shall have the obligation, to buy Purchase Shares at the Accelerated Purchase Price on the Accelerated Purchase Date in an amount equal to the Accelerated Purchase Share Amount (each such
purchase, an “Accelerated Purchase”). The Company may deliver an Accelerated Purchase Notice to the Investor only on a Purchase Date on which the Company also properly submitted a Regular Purchase Notice for a Regular Purchase and
the Closing Sale Price is not below $0.60 (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction and, effective upon the
consummation of any such reorganization, recapitalization, non-cash dividend, stock split or other similar transaction, the Closing Sale Price is not below the lower of (i) the adjusted price and (ii)
$0.60). If the Company delivers any Accelerated Purchase Notice for an Accelerated Purchase Share Amount in excess of the limitations contained in the definition of Accelerated Purchase Share Amount, such Accelerated Purchase Notice shall be void
ab initio to the extent of the amount by which the number of Purchase Shares set forth in such Accelerated Purchase Notice exceeds the Accelerated Purchase Share Amount which the Company is permitted to include in such Accelerated Purchase
Notice in accordance herewith (which shall be confirmed in an Accelerated Purchase Confirmation (defined below)), and the Investor shall have no obligation to purchase such excess Purchase Shares in respect of such Accelerated Purchase Notice;
provided that the Investor shall remain obligated to purchase the Accelerated Purchase Share Amount which the Company is permitted to include in such Accelerated Purchase Notice. Upon completion of each Accelerated Purchase Date, the Accelerated
Purchase Share Amount and the applicable Accelerated Purchase Price shall be set forth on a confirmation of the Accelerated Purchase to be provided to the Company by the Investor (an “Accelerated Purchase Confirmation”). 

(c) Additional Purchases. Subject to the terms and conditions of this Agreement, from and after the Commencement Date, in addition to
purchases of Purchase Shares as described in Section 2(a) and Section 2(b) above, the Company shall also have the right, but not the obligation, to direct the Investor by the Company’s
delivery to the Investor of an Additional Purchase Notice from time to time, and the Investor thereupon shall have the obligation, to buy Purchase Shares at the Additional Purchase Price on the Purchase Date (each such purchase, an
“Additional Purchase”); provided, however, that (i) the Company may deliver an Additional Purchase Notice to the Investor only if at least twenty (20) Business Days have passed since the most recent
Additional Purchase was completed, (ii) the Investor’s committed obligation under any single Additional Purchase shall not exceed Five Hundred Thousand Dollars ($500,000), and (iii) the Investor’s committed obligation under all
Additional Purchases shall not exceed Three Million Dollars ($3,000,000) in the aggregate. The Company may deliver an Additional Purchase Notice to the Investor only on a Purchase Date on which the Closing Sale Price is not below $0.75 (to be
appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction). If the Company delivers any Additional Purchase Notice for a Purchase Amount in
excess of the limitations contained in this Section 2(c), such Additional Purchase Notice shall be void ab initio to the extent of the amount by which the number of Purchase Shares set forth in such Additional
Purchase Notice exceeds the number of Purchase Shares which the Company is permitted to include in such Additional Purchase Notice 

  
 -6- 

 
in accordance herewith, and the Investor shall have no obligation to purchase such excess Purchase Shares in respect of such Additional Purchase Notice; provided that the Investor shall remain
obligated to purchase the number of Purchase Shares which the Company is permitted to include in such Additional Purchase Notice. Notwithstanding the foregoing, the Company shall not deliver any Additional Purchase Notice during the PEA Period. 

(d) Payment for Purchase Shares. For each Regular Purchase, the Investor shall pay to the Company an amount equal to the Purchase Amount
with respect to such Regular Purchase as full payment for such Purchase Shares via wire transfer of immediately available funds on the same Business Day that the Investor receives such Purchase Shares, if such Purchase Shares are received by the
Investor before 1:00 p.m., Eastern time, or, if such Purchase Shares are received by the Investor after 1:00 p.m., Eastern time, the next Business Day. For each Additional Purchase, the Investor shall pay to the Company an amount equal to the
Purchase Amount with respect to such Additional Purchase as full payment for such Purchase Shares via wire transfer of immediately available funds on the third Business Day following the date that the Investor receives such Purchase Shares. For each
Accelerated Purchase, the Investor shall pay to the Company an amount equal to the Purchase Amount with respect to such Accelerated Purchase as full payment for such Purchase Shares via wire transfer of immediately available funds on the third
Business Day following the date that the Investor receives such Purchase Shares. If the Company or the Transfer Agent shall fail for any reason or for no reason to electronically transfer any Purchase Shares as DWAC Shares in respect of a Regular
Purchase, Additional Purchase or Accelerated Purchase (as applicable) within three (3) Business Days following the receipt by the Company of the Purchase Price, Additional Purchase Price or Accelerated Purchase Price, respectively, therefor in
compliance with this Section 2(d), and if on or after such Business Day the Investor purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Investor of such
Purchase Shares that the Investor anticipated receiving from the Company in respect of such Regular Purchase, Additional Purchase or Accelerated Purchase (as applicable), then the Company shall, within three (3) Business Days after the
Investor’s request, either (i) pay cash to the Investor in an amount equal to the Investor’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Cover
Price”), at which point the Company’s obligation to deliver such Purchase Shares as DWAC Shares shall terminate, or (ii) promptly honor its obligation to deliver to the Investor such Purchase Shares as DWAC Shares and pay cash to
the Investor in an amount equal to the excess (if any) of the Cover Price over the total (A) Purchase Price for such Regular Purchase plus the total Accelerated Purchase Price for such Accelerated Purchase (as applicable) and
(B) Additional Purchase Price for such Additional Purchase (as applicable). The Company shall not issue any fraction of a share of Common Stock upon any Regular Purchase, Additional Purchase or Accelerated Purchase. If the issuance would result
in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up or down to the nearest whole share. All payments made under this Agreement shall be made in lawful money of the United
States of America or wire transfer of immediately available funds to such account as the Company may from time to time designate by written notice in accordance with the provisions of this Agreement. Whenever any amount expressed to be due by the
terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next succeeding day that is a Business Day. 

(e) Compliance with Rules of Principal Market. 

(i) Exchange Cap. Subject to Section 2(e)(ii) below, the Company shall not issue or sell any shares of Common
Stock pursuant to this Agreement, and the Investor shall not purchase or acquire any shares of Common Stock pursuant to this Agreement, to the extent that after giving effect thereto, the aggregate number of shares of Common Stock that would be
issued pursuant to this Agreement would exceed the maximum number of shares of Common Stock that the Company may issue pursuant to this Agreement and the transactions contemplated hereby (taking into account all shares of Common Stock

  
 -7- 

 
issued or issuable pursuant to any transaction or series of transactions that may be aggregated with the transactions contemplated by this Agreement under applicable rules of The NASDAQ Stock
Market) without (1) breaching the Company’s obligations under the applicable rules of The NASDAQ Stock Market or (2) obtaining stockholder approval under the applicable rules of The NASDAQ Stock Market (the “Exchange
Cap”), unless and until the Company elects to solicit stockholder approval of the issuance of Common Stock as contemplated by this Agreement and the stockholders of the Company have in fact approved the issuance of Common Stock as
contemplated by this Agreement in accordance with the applicable rules and regulations of The NASDAQ Stock Market, and the Certificate of Incorporation and Bylaws of the Company. For the avoidance of doubt, the Company may, but shall be under no
obligation to, request its stockholders to approve the issuance of Common Stock as contemplated by this Agreement; provided, that if stockholder approval is not obtained in accordance with this Section 2(e)(i), the Exchange
Cap shall be applicable for all purposes of this Agreement and the transactions contemplated hereby at all times during the term of this Agreement (except as set forth in Section 2(e)(ii) below). 

(ii) At-Market Transaction. Notwithstanding Section 2(e)(i) above, the
Exchange Cap shall not be applicable for any purposes of this Agreement and the transactions contemplated hereby, solely to the extent that (and only for so long as) the Average Price shall equal or exceed the Base Price (it being hereby
acknowledged and agreed that the Exchange Cap shall be applicable for all purposes of this Agreement and the transactions contemplated hereby at all other times during the term of this Agreement, unless the stockholder approval referred to in
Section 2(e)(i) is obtained). 
 (iii) General. The Company shall not issue any shares of Common Stock
pursuant to this Agreement if such issuance would reasonably be expected to result in (A) a violation of the Securities Act or (B) a breach of the rules and regulations of The NASDAQ Stock Market. The provisions of this
Section 2(e) shall be implemented in a manner otherwise than in strict conformity with the terms hereof only if necessary to ensure compliance with the Securities Act and the rules and regulations of The NASDAQ Stock
Market. 
 (f) Beneficial Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement, the Company
shall not issue or sell, and the Investor shall not purchase or acquire, any shares of Common Stock under this Agreement which, when aggregated with all other shares of Common Stock then beneficially owned by the Investor and its affiliates (as
calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Investor and its affiliates of more than 9.99% of the then
issued and outstanding shares of Common Stock (the “Beneficial Ownership Limitation”). Upon the written or oral request of the Investor, the Company shall promptly (but not later than 24 hours) confirm orally or in writing to the
Investor the number of shares of Common Stock then outstanding. The Investor and the Company shall each cooperate in good faith in the determinations required hereby and the application hereof. The Investor’s written certification to the
Company of the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof hereunder at any time, shall be conclusive with respect to the applicability thereof and such result absent manifest error. 

 

	 	3.	INVESTOR’S REPRESENTATIONS AND WARRANTIES. 

 The Investor represents and warrants to
the Company that as of the date hereof and as of the Commencement Date: 
 (a) Investment Purpose. The Investor is acquiring the
Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of
distributing any of 

  
 -8- 

 
such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other Persons to distribute or
regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting the Investor’s right to sell the Securities at any time pursuant to the
Registration Statement described herein or otherwise in compliance with applicable federal and state securities laws). The Investor is acquiring the Securities hereunder in the ordinary course of its business. 

(b) Accredited Investor Status. The Investor is an “accredited investor” as that term is defined in Rule 501(a)(3) of
Regulation D promulgated under the Securities Act. 
 (c) Reliance on Exemptions. The Investor understands that the Securities are
being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and the Investor’s
compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility of the Investor to acquire the
Securities. 
 (d) Information. The Investor understands that its investment in the Securities involves a high degree of risk. The
Investor (i) is able to bear the economic risk of an investment in the Securities including a total loss thereof, (ii) has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and
risks of the proposed investment in the Securities and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning the financial condition and business of the Company and other matters
related to an investment in the Securities. Neither such inquiries nor any other due diligence investigations conducted by the Investor or its representatives shall modify, amend or affect the Investor’s right to rely on the Company’s
representations and warranties contained in Section 4 below. The Investor has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

 (e) No Governmental Review. The Investor understands that no U.S. federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of an investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities. 

(f) Transfer or Sale. The Investor understands that (i) the Securities may not be offered for sale, sold, assigned or transferred
unless (A) registered pursuant to the Securities Act or (B) an exemption exists permitting such Securities to be sold, assigned or transferred without such registration; (ii) any sale of the Securities made in reliance on Rule 144 may
be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter
(as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC thereunder. 

(g) Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and is
a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

(h) Residency. The Investor is a resident of the State of Illinois. 

  
 -9- 

 (i) No Short Selling. The Investor represents and warrants to the Company that at no time
prior to the date of this Agreement has any of the Investor, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any (i) “short sale” (as such term is defined in Rule 200 of
Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock. 
  

	 	4.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

 The Company represents and warrants to
the Investor that, except as set forth in the disclosure schedules attached hereto, which exceptions shall be deemed to be a part of the representations and warranties made hereunder, as of the date hereof and as of the Commencement Date: 

(a) Organization and Qualification. The Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently
conducted. Neither the Company nor any of its Subsidiaries is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and
its Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in a Material Adverse Effect and no proceeding has been instituted in any such jurisdiction revoking, limiting or
curtailing or seeking to revoke, limit or curtail such power and authority or qualification. The Company has no Subsidiaries except as set forth on Exhibit 21.1 to the Company’s Annual Report on Form 10-K
for the year ended December 31, 2016. 
 (b) Authorization; Enforcement; Validity. (i) The Company has the requisite
corporate power and authority to enter into and perform its obligations under this Agreement and each of the other Transaction Documents, and to issue the Securities in accordance with the terms hereof and thereof, (ii) the execution and
delivery of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the issuance of the Commitment Shares (as defined below in
Section 5(e)) and the reservation for issuance and the issuance of the Purchase Shares issuable under this Agreement, have been duly authorized by the Company’s Board of Directors and no further consent or
authorization is required by the Company, its Board of Directors or its stockholders, (iii) this Agreement has been, and each other Transaction Document shall be on the Commencement Date, duly executed and delivered by the Company and
(iv) this Agreement constitutes, and each other Transaction Document upon its execution on behalf of the Company, shall constitute, the valid and binding obligations of the Company enforceable against the Company in accordance with their terms,
except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights
and remedies. The Board of Directors of the Company has approved resolutions substantially in the form as set forth in Exhibit B attached hereto (the “Signing Resolutions”) to authorize this Agreement and the
transactions contemplated hereby. The Signing Resolutions are valid, in full force and effect and have not been modified or supplemented in any respect. The Company has delivered to the Investor a true and correct copy of the Signing Resolutions
adopted by the Board of Directors of the Company. Except as set forth in this Agreement, no other approvals or consents of the Company’s Board of Directors, any authorized committee thereof, and/or stockholders is necessary under applicable
laws and the Company’s Certificate of Incorporation and/or Bylaws to authorize the execution and delivery of this Agreement or any of the transactions contemplated hereby, including, but not limited to, the issuance of the Commitment Shares and
the issuance of the Purchase Shares. 

  
 -10- 

 (c) Capitalization. As of the date hereof, the authorized capital stock of the Company is
set forth in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. Except as disclosed in the SEC Documents (as defined below), (i) no shares of the Company’s capital
stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company, (ii) there are no outstanding debt securities, (iii) there are no outstanding options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or
arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of
any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, (iv) there are no agreements or arrangements under which the Company or any of its
Subsidiaries is obligated to register the sale of any of their securities under the Securities Act (except the Registration Rights Agreement), (v) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which
contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its
Subsidiaries, (vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement and (vii) the Company does not have any stock
appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. The Company has furnished to the Investor true and correct copies of the Company’s Certificate of Incorporation, as amended and as in effect
on the date hereof (the “Certificate of Incorporation”), and the Company’s Bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and summaries of the terms of all securities convertible into or
exercisable for Common Stock, if any, and copies of any documents containing the material rights of the holders thereof in respect thereto. 

(d) Issuance of Securities. Upon issuance and payment therefor in accordance with the terms and conditions of this Agreement, the
Purchase Shares shall be validly issued, fully paid and nonassessable and free from all taxes, liens, charges, restrictions, rights of first refusal and preemptive rights with respect to the issue thereof, with the holders being entitled to all
rights accorded to a holder of Common Stock. Upon issuance in accordance with the terms and conditions of this Agreement, the Commitment Shares (as defined below in Section 5(e)) shall be validly issued, fully paid and
nonassessable and free from all taxes, liens, charges, restrictions, rights of first refusal and preemptive rights with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. 23,357,749
shares of Common Stock have been duly authorized and reserved for issuance upon purchase under this Agreement as Purchase Shares. 
 (e)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation for
issuance and issuance of the Purchase Shares and the Commitment Shares) will not (i) result in a violation of the Certificate of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock
of the Company or the Bylaws or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and
regulations and the rules and regulations of the Principal Market applicable to the 

  
 -11- 

 
Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except in the case of conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations under clause (ii), which would not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor its Subsidiaries is in violation of any term of or in default under its
Certificate of Incorporation, any Certificate of Designation, Preferences and Rights of any outstanding series of preferred stock of the Company or Bylaws or their organizational charter or bylaws, respectively. Neither the Company nor any of its
Subsidiaries is in violation of any term of or is in default under any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company or its
Subsidiaries, except for possible conflicts, defaults, terminations or amendments that would not reasonably be expected to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be
conducted, in violation of any law, ordinance, or regulation of any governmental entity, except for possible violations, the sanctions for which either individually or in the aggregate would not reasonably be expected to have a Material Adverse
Effect. Except as specifically contemplated by this Agreement and as required under the Securities Act or applicable state securities laws and the rules and regulations of the Principal Market, the Company is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory agency in order for it to execute, deliver or perform any of its obligations under or contemplated by the
Transaction Documents in accordance with the terms hereof or thereof. Except as set forth elsewhere in this Agreement, all consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding
sentence shall be obtained or effected on or prior to the Commencement Date. Since one year prior to the date hereof and except as disclosed in the SEC Documents, the Company has not received nor delivered any notices or correspondence from or to
the Principal Market. The Principal Market has not commenced any delisting proceedings against the Company. 
 (f) SEC Documents;
Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the twelve months preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Documents”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Documents prior to the expiration of any such extension. As
of their respective dates, the SEC Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable. None of the SEC Documents, when filed, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in
the SEC Documents comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that
unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of
operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. Except as set forth in the SEC Documents, the Company has
received no notices or correspondence from the SEC relating to the SEC Documents for the one year preceding the date hereof. The SEC has not commenced any enforcement proceedings against the Company or any of its Subsidiaries. 

  
 -12- 

 (g) Absence of Certain Changes. Except as disclosed in the SEC Documents, since
December 31, 2016, there has been no material adverse change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries. The Company has not taken any steps, and does not currently
expect to take any steps, to seek protection pursuant to any Bankruptcy Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or insolvency
proceedings. The Company is financially solvent and is generally able to pay its debts as they become due. 
 (h) Absence of
Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against or affecting the Company, the Common Stock or any of the Company’s or its Subsidiaries’ officers or directors in their capacities as such, which could reasonably be expected to have a Material Adverse Effect. 

(i) Acknowledgment Regarding Investor’s Status. The Company acknowledges and agrees that the Investor is acting solely in the
capacity of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Investor or any of its representatives or agents in connection with the Transaction
Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Securities. The Company further represents to the Investor that the Company’s decision to enter into the Transaction
Documents has been based solely on the independent evaluation by the Company and its representatives and advisors. 
 (j) No General
Solicitation; No Integrated Offering. Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under
the Securities Act) in connection with the offer or sale of the Securities. Neither the Company, nor or any of its affiliates, nor any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security, under circumstances that would require registration of the offer and sale of any of the Securities under the Securities Act, whether through integration with prior offerings or otherwise, or cause this offering of the
Securities to be integrated with prior offerings by the Company in a manner that would require stockholder approval pursuant to the rules of the Principal Market on which any of the securities of the Company are listed or designated. The issuance
and sale of the Securities hereunder does not contravene the rules and regulations of the Principal Market. 
 (k) Intellectual Property
Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. None of the Company’s material trademarks, trade names, service marks, service mark registrations, service
names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other intellectual property rights have expired or terminated, or, by the terms and conditions thereof, could expire or terminate
within two years from the date of this Agreement. The Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of any material trademark, trade name rights, patents, patent rights, copyrights,
inventions, licenses, service names, service marks, service mark registrations, trade secret or other similar rights of others, or of any such development of similar or identical trade secrets or technical information by others, and there is no
claim, action or proceeding being made or brought against, or to the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention, copyright, license, service
names, service marks, service mark registrations, trade secret or other infringement, which could reasonably be expected to have a Material Adverse Effect. 

  
 -13- 

 (l) Environmental Laws. The Company and its Subsidiaries (i) are in compliance with
any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental
Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such
permit, license or approval, except where, in each of the three foregoing clauses, the failure to so comply could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

(m) Title. The Company and its Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and
marketable title in all personal property owned by them that is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects (“Liens”) and, except for Liens 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 and Liens for the payment of federal, state or other taxes, the payment
of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and its
Subsidiaries are in compliance with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries. 

(n) Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any
insurance coverage sought or applied for and neither the Company nor any such Subsidiary has any reason to believe that it will 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 materially and adversely affect the condition, financial or otherwise, or the earnings, business or operations of the Company and its Subsidiaries, taken as a
whole. 
 (o) Regulatory Permits. The Company and its Subsidiaries possess all material certificates, authorizations and permits
issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or
modification of any such certificate, authorization or permit. 
 (p) Tax Status. The Company and each of its Subsidiaries has made or
filed all federal and state income and all other material tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its
books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and has set aside on its books a provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. 

  
 -14- 

 (q) Transactions With Affiliates. Except as set forth in the SEC Documents, none of the
officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or
such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than for
(i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the
Company. 
 (r) Application of Takeover Protections. The Company and its board of directors have taken or will take prior to the
Commencement Date all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the
Certificate of Incorporation or the laws of the state of its incorporation which is or could become applicable to the Investor as a result of the transactions contemplated by this Agreement, including, without limitation, the Company’s issuance
of the Securities and the Investor’s ownership of the Securities. 
 (s) Disclosure. Except with respect to the material terms
and conditions of the transactions contemplated by the Transaction Documents that will be timely publicly disclosed by the Company, the Company confirms that neither it nor any other Person acting on its behalf has provided the Investor or its
agents or counsel with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the Registration Statement or the SEC Documents. The
Company understands and confirms that the Investor will rely on the foregoing representation in effecting purchases and sales of securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Investor regarding the
Company, its business and the transactions contemplated hereby, including the disclosure schedules to this Agreement, is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date of this
Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they
were made and when made, not misleading. The Company acknowledges and agrees that the Investor neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth
in Section 3 hereof. 
 (t) Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or
other Person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any
unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any
Person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 

  
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 (u) DTC Eligibility. The Company, through the Transfer Agent, currently participates in
the DTC Fast Automated Securities Transfer (FAST) Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities Transfer (FAST) Program. 

(v) Sarbanes-Oxley. The Company is in compliance with all provisions of the Sarbanes-Oxley Act of 2002, as amended, which are applicable
to it as of the date hereof. 
 (w) Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the
Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Investor shall have no obligation with respect
to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section 4(w) that may be due in connection with the transactions contemplated by the Transaction
Documents. 
 (x) Investment Company. The Company is not, and immediately after receipt of payment for the Securities will not be, an
“investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 (y) Listing and Maintenance
Requirements. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the
Common Stock pursuant to the Exchange Act nor has the Company received any notification that the SEC is currently contemplating terminating such registration. Except as set forth in the SEC Documents, the Company has not, in the twelve
(12) months preceding the date hereof, received notice from the Principal Market to the effect that the Company is not in compliance with the listing or maintenance requirements of the Principal Market. Although, as of the date of this
Agreement, the Company is not in compliance with NASDAQ Listing Rule 5550(a)(2) for continued listing on The NASDAQ Capital Market, the Company has no reason to believe that it will not in the foreseeable future continue to be in compliance with all
applicable listing and maintenance requirements of the Principal Market, including, without limitation, NASDAQ Listing Rule 5550(a)(2), as applicable. 

(z) Accountants. The Company’s accountants are set forth in the SEC Documents and, to the knowledge of the Company, such
accountants are an independent registered public accounting firm as required by the Securities Act. 
 (aa) No Market Manipulation.
The Company has not, and to its knowledge no Person acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for
soliciting another to purchase any other securities of the Company. 
 (bb) Shell Company Status. The Company is not currently, and
has never been, an issuer identified in Rule 144(i)(1) under the Securities Act. 
 (cc) No Disqualification Events. None of the
Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering contemplated hereby, any beneficial owner of 20% or more of the Company’s outstanding voting
equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer 

  
 -16- 

 
Covered Person”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. 

 

	 	5.	COVENANTS. 

 (a) Filing of Current Report and Registration Statement. The Company
agrees that it shall, within the time required under the Exchange Act, file with the SEC a report on Form 8-K relating to the transactions contemplated by, and describing the material terms and conditions of,
the Transaction Documents (the “Current Report”). The Company shall also file with the SEC, within ten (10) Business Days from the date hereof, a new registration statement (the “Registration Statement”)
covering only the resale of the Purchase Shares and all of the Commitment Shares, in accordance with the terms of the Registration Rights Agreement between the Company and the Investor, dated as of the date hereof (the “Registration Rights
Agreement”). The Company shall permit the Investor to review and comment upon the final pre-filing draft version of the Current Report at least two (2) Business Days prior to its filing with the
SEC, and the Company shall give due consideration to all such comments. The Investor shall use its reasonable best efforts to comment upon the final pre-filing draft version of the Current Report within one
(1) Business Day from the date the Investor receives it from the Company. 
 (b) Blue Sky. The Company shall take all such
action, if any, as is reasonably necessary in order to obtain an exemption for or to register or qualify (i) the issuance of the Commitment Shares and the sale of the Purchase Shares to the Investor under this Agreement and (ii) any
subsequent resale of all Commitment Shares and all Purchase Shares by the Investor, in each case, under applicable securities or “Blue Sky” laws of the states of the United States in such states as is reasonably requested by the Investor
from time to time, and shall provide evidence of any such action so taken to the Investor. 
 (c) Listing/DTC. The Company shall
promptly secure the listing of all of the Purchase Shares and Commitment Shares to be issued to the Investor hereunder on the Principal Market (subject to official notice of issuance) and upon each other national securities exchange or automated
quotation system, if any, upon which the Common Stock is then listed, and shall use commercially reasonable best efforts to maintain, so long as any shares of Common Stock shall be so listed, such listing of all such Securities from time to time
issuable hereunder. The Company shall use commercially reasonable best efforts to maintain the listing of the Common Stock on the Principal Market and shall comply in all respects with the Company’s reporting, filing and other obligations under
the bylaws or rules and regulations of the Principal Market. Neither the Company nor any of its Subsidiaries shall take any action that would reasonably be expected to result in the delisting or suspension of the Common Stock on the Principal
Market. The Company shall promptly, and in no event later than the following Business Day, provide to the Investor copies of any notices it receives from any Person regarding the continued eligibility of the Common Stock for listing on the Principal
Market; provided, however, that the Company shall not be required to provide the Investor copies of any such notice that the Company reasonably believes constitutes material non-public information and the
Company would not be required to publicly disclose such notice in any report or statement filed with the SEC and under the Exchange Act or the Securities Act. The Company shall pay all fees and expenses in connection with satisfying its obligations
under this Section 5(c). The Company shall take all action necessary to ensure that its Common Stock can be transferred electronically as DWAC Shares. 

(d) Prohibition of Short Sales and Hedging Transactions. The Investor agrees that beginning on the date of this Agreement and ending on
the date of termination of this Agreement as provided in Section 11, the Investor and its agents, representatives and affiliates shall not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as
such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock. 

  
 -17- 

 (e) Issuance of Commitment Shares. In consideration for the Investor’s execution and
delivery of this Agreement, the Company shall cause to be issued to the Investor a total of 450,000 shares of Common Stock (the “Commitment Shares”) immediately upon the execution of this Agreement and shall deliver to the Transfer
Agent the Irrevocable Transfer Agent Instructions with respect to the issuance of such Commitment Shares. For the avoidance of doubt, all of the Commitment Shares shall be fully earned as of the date of this Agreement, whether or not the
Commencement shall occur or any Purchase Shares are purchased by the Investor under this Agreement and irrespective of any subsequent termination of this Agreement. 

(f) Due Diligence; Non-Public Information. The Investor shall have the right, from time to time
as the Investor may reasonably deem appropriate, and upon providing reasonable advanced notice, to perform reasonable due diligence on the Company during normal business hours. The Company and its officers and employees shall provide information and
reasonably cooperate with the Investor in connection with any reasonable request by the Investor related to the Investor’s due diligence of the Company. Each party hereto agrees not to disclose any Confidential Information of the other party to
any third party and shall not use the Confidential Information for any purpose other than in connection with, or in furtherance of, the transactions contemplated hereby. Each party hereto acknowledges that the Confidential Information shall remain
the property of the disclosing party and agrees that it shall take all reasonable measures to protect the secrecy of any Confidential Information disclosed by the other party. The Company confirms that neither it nor any other Person acting on its
behalf shall provide the Investor or its agents or counsel with any information that constitutes or might constitute material, non-public information, unless a simultaneous public announcement thereof is made
by the Company in the manner contemplated by Regulation FD. In the event of a breach of the foregoing covenant by the Company or any Person acting on its behalf (as determined in the reasonable good faith judgment of the Investor), in addition to
any other remedy provided herein or in the other Transaction Documents, if the Investor is holding any Securities at the time of the disclosure of material, non-public information, the Investor shall have the
right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such material, non-public information without the prior approval by the Company; provided the Investor
shall have first provided notice to the Company that it believes it has received information that constitutes material, non-public information, the Company shall have at least 48 hours to publicly disclose
such material, non-public information prior to any such disclosure by the Investor or demonstrate to the Investor in writing why such information does not constitute material,
non-public information, and (assuming the Investor and Investor’s counsel disagree with the Company’s determination) the Company shall have failed to publicly disclose such material, non-public information within such time period. The Investor shall not have any liability to the Company, any of its Subsidiaries, or any of their respective directors, officers, employees, stockholders or agents,
for any such disclosure. The Company understands and confirms that the Investor shall be relying on the foregoing covenants in effecting transactions in securities of the Company. 

(g) Purchase Records. The Investor and the Company shall each maintain records showing the remaining Available Amount at any given time
and the dates and Purchase Amounts for each Regular Purchase, Accelerated Purchase and Additional Purchase or shall use such other method, reasonably satisfactory to the Investor and the Company. 

(h) Taxes. The Company shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the issuance and
delivery of any shares of Common Stock to the Investor made under this Agreement.  

  
 -18- 

 (i) Use of Proceeds. The Company will use the net proceeds from the offering as described
in the Registration Statement or the SEC Documents. 
 (j) Other Transactions. The Company shall not enter into, announce or recommend
to its stockholders any agreement, plan, arrangement or transaction in or of which the terms thereof would restrict, materially delay, conflict with or impair the ability or right of the Company to perform its obligations under the Transaction
Documents, including, without limitation, the obligation of the Company to deliver the Purchase Shares and the Commitment Shares to the Investor in accordance with the terms of the Transaction Documents. 

(k) Integration. From and after the date of this Agreement, neither the Company, nor or any of its affiliates will, and the Company
shall use its reasonable best efforts to ensure that no Person acting on their behalf will, directly or indirectly, make any offers or sales of any security or solicit any offers to buy any security, under circumstances that would (i) require
registration of the offer and sale by the Company to the Investor of any of the Securities under the Securities Act, or (ii) cause this offering of the Securities by the Company to the Investor to be integrated with other offerings by the
Company in a manner that would require stockholder approval pursuant to the rules of the Principal Market on which any of the securities of the Company are listed or designated, unless in the case of this clause (ii), stockholder approval is
obtained before the closing of such subsequent transaction in accordance with the rules of such Principal Market. 
 (l) Limitation on
Variable Rate Transactions. From and after the date of this Agreement until the earlier of (i) the 30-month anniversary of the date of this Agreement and (ii) the date on which the Investor has
purchased the full Available Amount of Purchase Shares pursuant to this Agreement, in either case irrespective of any earlier termination of this Agreement, the Company shall be prohibited from effecting or entering into an agreement to effect any
issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction, other than in connection with an Exempt Issuance. The Investor shall be
entitled to seek injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages, without the necessity of showing economic loss and without any bond or
other security being required. “Common Stock Equivalents” means any securities of the Company or its Subsidiaries which entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt,
preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. “Variable Rate Transaction”
means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a
conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities, or
(B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly
related to the business of the Company or the market for the Common Stock, or (ii) enters into any agreement, including, but not limited to, an “equity line of credit”,
“at-the-market offering” or other continuous offering or similar offering of Common Stock or Common Stock Equivalents, whereby the Company may sell Common
Stock or Common Stock Equivalents at a future determined price. For the avoidance of doubt, the offering and sale by the Company of a convertible security (e.g., a warrant) with either (i) a customary “cashless exercise” term, or
(ii) a customary anti-dilution adjustment (e.g., weighted-average price or full-ratchet price) that is triggered by the Company’s subsequent sale of equity securities at a price that is lower than the applicable conversion price shall not
be deemed to be a prohibited Variable Rate Transaction. “Exempt Issuance” means the issuance of (a) Common Stock or options to employees, 

  
 -19- 

 
officers, directors or vendors of the Company pursuant to any stock or option plan duly adopted for such purpose, by the Board of Directors or a majority of the members of a committee of
directors established for such purpose, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or Common Stock Equivalents issued and outstanding on the date of this Agreement, provided that such
securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities, or (c) securities issued pursuant to
acquisitions or strategic transactions approved by the Board of Directors or a majority of the members of a committee of directors established for such purpose, which acquisitions or strategic transactions can have a Variable Rate Transaction
component, provided that any such issuance shall only be to a Person (or to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company or an asset in a business synergistic with the business of the Company and
shall provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary
business is investing in securities. 
  

	 	6.	TRANSFER AGENT INSTRUCTIONS. 

 (a) On the date of this Agreement, the Company shall issue
irrevocable instructions to the Transfer Agent substantially in the form attached hereto as Exhibit D to issue the Commitment Shares in accordance with the terms of this Agreement (the “Irrevocable Transfer Agent
Instructions”). The certificate(s) or book-entry statement(s) representing the Commitment Shares, except as set forth below, shall bear the following restrictive legend (the “Restrictive Legend”): 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. 
 (b) On the earlier of (i) the Commencement Date and (ii) such time that
the Investor shall request, provided all conditions of Rule 144 under the Securities Act are met, the Company shall, no later than one (1) Business Day following the delivery by the Investor to the Company or the Transfer Agent of one or more
legended certificates or book-entry statements representing the Commitment Shares (which certificates or book-entry statements the Investor shall promptly deliver on or prior to the first to occur of the events described in clauses (i) and (ii)
of this sentence), as directed by the Investor, issue and deliver (or cause to be issued and delivered) to the Investor, as requested by the Investor, either: (A) a certificate or book-entry statement representing such Commitment Shares that is
free from all restrictive and other legends or (B) a number of shares of Common Stock equal to the number of Commitment Shares represented by the certificate(s) or book-entry statement(s) so delivered by the Investor as DWAC Shares. The Company
shall take all actions to carry out the intent and accomplish the purposes of the immediately preceding sentence, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Transfer
Agent, and any successor transfer agent of the Company, as may be requested from time to time by the Investor or necessary or desirable to carry out the intent and 

  
 -20- 

 
accomplish the purposes of the immediately preceding sentence. On the Commencement Date, the Company shall issue to the Transfer Agent, and any subsequent transfer agent, (i) irrevocable
instructions in the form substantially similar to those used by the Investor in substantially similar transactions (the “Commencement Irrevocable Transfer Agent Instructions”) and (ii) the notice of effectiveness of the
Registration Statement in the form attached as an exhibit to the Registration Rights Agreement (the “Notice of Effectiveness of Registration Statement”), in each case to issue the Purchase Shares in accordance with the terms of this
Agreement and the Registration Rights Agreement. All Purchase Shares to be issued from and after Commencement to or for the benefit of the Investor pursuant to this Agreement shall be issued only as DWAC Shares. The Company represents and warrants
to the Investor that, while this Agreement is effective, no instruction other than the Commencement Irrevocable Transfer Agent Instructions and the Notice of Effectiveness of Registration Statement referred to in this
Section 6(b) will be given by the Company to the Transfer Agent with respect to the Purchase Shares or the Commitment Shares from and after Commencement, and the Purchase Shares and the Commitment Shares covered by the
Registration Statement shall otherwise be freely transferable on the books and records of the Company. The Company agrees that if the Company fails to fully comply with the provisions of this Section 6(b) within five
(5) Business Days of the Investor providing the deliveries referred to above, the Company shall, at the Investor’s written instruction, purchase such shares of Common Stock containing the Restrictive Legend from the Investor at the greater
of the (i) purchase price paid for such shares of Common Stock (as applicable) and (ii) the Closing Sale Price of the Common Stock on the date of the Investor’s written instruction. 

 

	 	7.	CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK. 

 The
right of the Company hereunder to commence sales of the Purchase Shares on the Commencement Date is subject to the satisfaction of each of the following conditions: 

(a) The Investor shall have executed each of the Transaction Documents and delivered the same to the Company; 

(b) The Registration Statement covering the resale of the Purchase Shares and all of the Commitment Shares shall have been declared effective
under the Securities Act by the SEC, and no stop order with respect to the Registration Statement shall be pending or threatened by the SEC; and 

(c) The representations and warranties of the Investor shall be true and correct in all material respects as of the date hereof and as of the
Commencement Date as though made at that time. 
  

	 	8.	CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE SHARES OF COMMON STOCK. 

 The
obligation of the Investor to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following conditions on or prior to the Commencement Date and, once such conditions have been initially satisfied, there shall not
be any ongoing obligation to satisfy such conditions after the Commencement has occurred: 
 (a) The Company shall have executed each of the
Transaction Documents and delivered the same to the Investor; 
 (b) The Company shall have issued or caused to be issued to the Investor
(i) one or more certificates or book-entry statements representing the Commitment Shares free from all restrictive and other legends or (ii) a number of shares of Common Stock equal to the number of Commitment Shares as DWAC Shares, in
each case in accordance with Section 6(b); 

  
 -21- 

 (c) The Common Stock shall be listed or quoted on the Principal Market, trading in the Common
Stock shall not have been within the last 365 days suspended by the SEC or the Principal Market, and all Securities to be issued by the Company to the Investor pursuant to this Agreement shall have been approved for listing or quotation on the
Principal Market in accordance with the applicable rules and regulations of the Principal Market, subject only to official notice of issuance; 

(d) The Investor shall have received the opinions of the Company’s legal counsel dated as of the Commencement Date substantially in the
form heretofore agreed by the parties hereto; 
 (e) The representations and warranties of the Company shall be true and correct in all
material respects (except to the extent that any of such representations and warranties is already qualified as to materiality in Section 4 above, in which case, the portion of such representations and warranties so qualified shall be true and
correct without further qualification) as of the date hereof and as of the Commencement Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such date)
and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date. The
Investor shall have received a certificate, executed by the CEO, President or CFO of the Company, dated as of the Commencement Date, to the foregoing effect in the form attached hereto as Exhibit A; 

(f) The Board of Directors of the Company shall have adopted resolutions in substantially the form attached hereto as Exhibit B
which shall be in full force and effect without any amendment or supplement thereto as of the Commencement Date; 
 (g) As of the
Commencement Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose of effecting purchases of Purchase Shares hereunder, 23,357,749 shares of Common Stock; 

(h) The Commencement Irrevocable Transfer Agent Instructions and the Notice of Effectiveness of Registration Statement each shall have been
delivered to and acknowledged in writing by the Company and the Company’s Transfer Agent (or any successor transfer agent); 
 (i) The
Company shall have delivered to the Investor a certificate evidencing the incorporation and good standing of the Company in the State of Delaware issued by the Secretary of State of the State of Delaware as of a date within ten (10) Business
Days of the Commencement Date; 
 (j) The Company shall have delivered to the Investor a certified copy of the Certificate of Incorporation
as certified by the Secretary of State of the State of Delaware within ten (10) Business Days of the Commencement Date; 
 (k) The
Company shall have delivered to the Investor a secretary’s certificate executed by the Secretary of the Company, dated as of the Commencement Date, in the form attached hereto as Exhibit C; 

(l) The Registration Statement covering the resale of the Purchase Shares and all of the Commitment Shares shall have been declared effective
under the Securities Act by the SEC, and no stop order with respect to the Registration Statement shall be pending or threatened by the SEC. The Company shall have prepared and filed with the SEC, not later than one (1) Business Day after the
effective date of 

  
 -22- 

 
the Registration Statement, a final and complete prospectus (the preliminary form of which shall be included in the Registration Statement) and shall have delivered to the Investor a true and
complete copy thereof. Such prospectus shall be current and available for the resale by the Investor of all of the Securities covered thereby. The Current Report shall have been filed with the SEC, as required pursuant to
Section 5(a). All reports, schedules, registrations, forms, statements, information and other documents required to have been filed by the Company with the SEC at or prior to the Commencement Date pursuant to the reporting
requirements of the Exchange Act shall have been filed with the SEC within the applicable time periods prescribed for such filings under the Exchange Act; 

(m) No Event of Default has occurred, or any event which, after notice and/or lapse of time, would become an Event of Default has occurred;

 (n) All federal, state and local governmental laws, rules and regulations applicable to the transactions contemplated by the Transaction
Documents and necessary for the execution, delivery and performance of the Transaction Documents and the consummation of the transactions contemplated thereby in accordance with the terms thereof shall have been complied with, and all consents,
authorizations and orders of, and all filings and registrations with, all federal, state and local courts or governmental agencies and all federal, state and local regulatory or self-regulatory agencies necessary for the execution, delivery and
performance of the Transaction Documents and the consummation of the transactions contemplated thereby in accordance with the terms thereof shall have been obtained or made, including, without limitation, in each case those required under the
Securities Act, the Exchange Act, applicable state securities or “Blue Sky” laws or applicable rules and regulations of the Principal Market, or otherwise required by the SEC, the Principal Market or any state securities regulators; 

(o) No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or endorsed by
any federal, state, local or foreign court or governmental authority of competent jurisdiction which prohibits the consummation of or which would materially modify or delay any of the transactions contemplated by the Transaction Documents; and 

(p) No action, suit or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of competent
jurisdiction shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or foreign governmental authority of competent jurisdiction shall have been commenced or threatened, against the Company, or any of
the officers, directors or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated by the Transaction Documents, or seeking material damages in connection with such transactions. 

 

	 	9.	INDEMNIFICATION. 

 In consideration of the Investor’s execution and delivery of the
Transaction Documents and acquiring the Securities hereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless the Investor and all of its
affiliates, stockholders, officers, directors, employees and direct or indirect investors and any of the foregoing Person’s agents or other representatives (including, without limitation, those retained in connection with the transactions
contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any
Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in the Transaction Documents or any other certificate, instrument or document contemplated
hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in the 

  
 -23- 

 
Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or made against such Indemnitee and
arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, other than, in the case of clause (c), with respect to
Indemnified Liabilities which directly and primarily result from the fraud, gross negligence or willful misconduct of an Indemnitee. The indemnity in this Section 9 shall not apply to amounts paid in settlement of any claim if such settlement
is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company
shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. Payment under this indemnification shall be made within thirty (30) days from the date
Investor makes written request for it. A certificate containing reasonable detail as to the amount of such indemnification submitted to the Company by Investor shall be conclusive evidence, absent manifest error, of the amount due from the Company
to Investor. If any action shall be brought against any Indemnitee in respect of which indemnity may be sought pursuant to this Agreement, such Indemnitee shall promptly notify the Company in writing, and the Company shall have the right to assume
the defense thereof with counsel of its own choosing reasonably acceptable to the Indemnitee. Any Indemnitee shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnitee, except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume
such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the position of such Indemnitee, in which
case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. 
  

	 	10.	EVENTS OF DEFAULT. 

 An “Event of Default” shall be deemed to have
occurred at any time as any of the following events occurs: 
 (a) the effectiveness of a registration statement registering the resale of
the Securities lapses for any reason (including, without limitation, the issuance of a stop order or similar order) or such registration statement (or the prospectus forming a part thereof) is unavailable to the Investor for resale of any or all of
the Securities to be issued to the Investor under the Transaction Documents, and such lapse or unavailability continues for a period of ten (10) consecutive Business Days or for more than an aggregate of thirty (30) Business Days in any 365-day period, but excluding a lapse or unavailability where (i) the Company terminates a registration statement after the Investor has confirmed in writing that all of the Securities covered thereby have been
resold or (ii) the Company supersedes one registration statement with another registration statement, including (without limitation) by terminating a prior registration statement when it is effectively replaced with a new registration statement
covering the Securities (provided in the case of this clause (ii) that all of the Securities covered by the superseded (or terminated) registration statement that have not theretofore been resold are included in the superseding (or new)
registration statement); 
 (b) the suspension of the Common Stock from trading on the Principal Market for a period of one (1) Business
Day, provided that the Company may not direct the Investor to purchase any shares of Common Stock during any such suspension; 

  
 -24- 

 (c) the delisting of the Common Stock from The NASDAQ Capital Market, provided, however, that the
Common Stock is not immediately thereafter trading on the New York Stock Exchange, The NASDAQ Global Market, The NASDAQ Global Select Market, the NYSE MKT, the NYSE Arca, the OTC Bulletin Board, or the OTCQX or OTCQB operated by the OTC Markets
Group, Inc. (or any nationally recognized successor to any of the foregoing); 
 (d) the failure for any reason by the Transfer Agent to
issue Purchase Shares to the Investor within three (3) Business Days after the applicable Purchase Date or Accelerated Purchase Date (as applicable) on which the Investor is entitled to receive such Purchase Shares; 

(e) the Company breaches any representation, warranty, covenant or other term or condition under any Transaction Document if such breach would
reasonably be expected to have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably curable, only if such breach continues for a period of at least five (5) Business Days; 

(f) if any Person commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law; 

(g) if the Company, pursuant to or within the meaning of any Bankruptcy Law, (i) commences a voluntary case, (ii) consents to the
entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property, or (iv) makes a general assignment for the benefit of its creditors or
is generally unable to pay its debts as the same become due; 
 (h) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that (i) is for relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders the liquidation of the Company or any
Subsidiary; 
 (i) if at any time the Company is not eligible to transfer its Common Stock electronically as DWAC Shares; or 

(j) if at any time after the Commencement Date, the Exchange Cap is reached (to the extent such Exchange Cap is applicable pursuant to
Section 2(e) hereof). 
 In addition to any other rights and remedies under applicable law and this Agreement, so long as an Event
of Default has occurred and is continuing, or if any event which, after notice and/or lapse of time, would become an Event of Default, has occurred and is continuing, the Company shall not deliver to the Investor any Regular Purchase Notice,
Accelerated Purchase Notice or Additional Purchase Notice. 
  

	 	11.	TERMINATION 

 This Agreement may be terminated only as follows: 

(a) If pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding
against the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors (any of which would be an Event of Default as described in
Sections 10(f), 10(g) and 10(h) hereof), this Agreement shall automatically terminate without any liability or payment to the Company (except as set forth below) without further action or notice by any Person. 

(b) In the event that (i) the Company fails to file the Registration Statement with the SEC within the period specified in
Section 5(a) hereof in accordance with the terms of the Registration Rights Agreement or (ii) the Commencement shall not have occurred on or before October 30, 2017, due to the

  
 -25- 

 
failure to satisfy the conditions set forth in Sections 7 and 8 above with respect to the Commencement, then, in the case of clause (i) above, this Agreement may be terminated
by the Investor at any time prior to the filing of the Registration Statement and, in the case of clause (ii) above, this Agreement may be terminated by either party at the close of business on October 30, 2017 or thereafter, in each case
without liability of such party to the other party (except as set forth below); provided, however, that the right to terminate this Agreement under this Section 11(b) shall not be available to any party if such party is
then in breach of any covenant or agreement contained in this Agreement or any representation or warranty of such party contained in this Agreement fails to be true and correct such that the conditions set forth in
Section 7(c) or Section 8(e), as applicable, could not then be satisfied. 
 (c) At any
time after the Commencement Date, the Company shall have the option to terminate this Agreement for any reason or for no reason by delivering notice (a “Company Termination Notice”) to the Investor electing to terminate this
Agreement without any liability whatsoever of any party to any other party under this Agreement (except as set forth below). The Company Termination Notice shall not be effective until one (1) Business Day after it has been received by the
Investor. 
 (d) This Agreement shall automatically terminate on the date that the Company sells and the Investor purchases the full
Available Amount as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party to any other party under this Agreement (except as set forth below). 

(e) If, for any reason or for no reason, the full Available Amount has not been purchased in accordance with
Section 2 of this Agreement by the Maturity Date, this Agreement shall automatically terminate on the Maturity Date, without any action or notice on the part of any party and without any liability whatsoever of any party to
any other party under this Agreement (except as set forth below). 
 Except as set forth in Sections 11(a) (in respect of an Event of Default under
Sections 10(f), 10(g) and 10(h)), 11(d) and 11(e), any termination of this Agreement pursuant to this Section 11 shall be effected by written notice from the Company to the Investor, or the
Investor to the Company, as the case may be, setting forth the basis for the termination hereof. The representations and warranties and covenants of the Company and the Investor contained in Sections 3, 4, 5, and 6
hereof, the indemnification provisions set forth in Section 9 hereof and the agreements and covenants set forth in Sections 10, 11 and 12 shall survive the execution and delivery of
this Agreement and any termination of this Agreement. No termination of this Agreement shall (i) affect the Company’s or the Investor’s rights or obligations under (A) this Agreement with respect to pending Regular Purchases,
Accelerated Purchases or Additional Purchases and the Company and the Investor shall complete their respective obligations with respect to any pending Regular Purchases, Accelerated Purchases and Additional Purchases under this Agreement and
(B) the Registration Rights Agreement, which shall survive any such termination, or (ii) be deemed to release the Company or the Investor from any liability for intentional misrepresentation or willful breach of any of the Transaction
Documents. 
  

	 	12.	MISCELLANEOUS. 

 (a) Governing Law; Jurisdiction; Jury Trial. The corporate laws
of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders. All other questions concerning the construction, validity, enforcement and interpretation of this Agreement and the other
Transaction Documents shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in 

  
 -26- 

 the State of Illinois, County of Cook, for the adjudication of any dispute hereunder or under the other
Transaction Documents or in connection herewith or therewith, or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 

(b) Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the
same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature or signature delivered by e-mail in a
“.pdf” format data file shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature. 

(c) Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. 
 (d) Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. 

(e) Entire Agreement. The Transaction Documents supersede all other prior oral or written agreements between the Investor, the Company,
their affiliates and Persons acting on their behalf with respect to the subject matter thereof, and this Agreement, the other Transaction Documents and the instruments referenced herein contain the entire understanding of the parties with respect to
the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to such matters. The Company acknowledges
and agrees that is has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than as expressly set forth in the Transaction Documents. 

(f) Notices. Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile or email (provided confirmation of transmission is mechanically or electronically generated and kept
on file by the sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses for such communications shall be:
 

  
 -27- 

 If to the Company: 

 

			
	 RXi Pharmaceuticals Corporation
 257
Simarano Drive, Suite 101

	Marlborough, MA 01752
	Telephone:	 	(508) 767-3861
	Facsimile:	 	(508) 303-3400
	E-mail:	 	gcauwenbergh@rxipharma.com
	Attention:	 	Geert Cauwenbergh, Dr. Med. Sc.

 With a copy to (which shall not constitute notice or service of process): 

 

			
	 Gibson, Dunn & Crutcher LLP

555 Mission Street, Suite 3000

	San Francisco, CA 94105
	Telephone:	 	(415) 393-8373
	Facsimile:	 	(415) 374-8430
	E-mail:	 	rmurr@gibsondunn.com
	Attention:	 	Ryan A. Murr, Esq.

 If to the Investor: 

 

			
	 Lincoln Park Capital Fund, LLC
 440
North Wells, Suite 410

	Chicago, IL 60654
	Telephone:	 	312-822-9300
	Facsimile:	 	312-822-9301
	E-mail:	 	jscheinfeld@lpcfunds.com/jcope@lpcfunds.com
	Attention:	 	Josh Scheinfeld/Jonathan Cope

 With a copy to (which shall not constitute notice or service of process): 

 

			
	 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

666 Third Avenue

	New York, NY 10017
	Telephone:	 	(212) 692-6267
	Facsimile:	 	(212) 983-3115
	E-mail:	 	ajmarsico@mintz.com
	Attention:	 	Anthony J. Marsico, Esq.

 If to the Transfer Agent: 

 

			
	 Computershare, Inc.
 250 Royall
Street

	Canton, MA 02021
	Telephone:	 	(800) 942-5909

 or at such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has
specified by written notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine or email account containing the time, date, and recipient facsimile number or email address, as applicable, and an image of the first page of such transmission
or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii)
or (iii) above, respectively. 

  
 -28- 

 (g) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor, including by merger or consolidation. The Investor may
not assign its rights or obligations under this Agreement. 
 (h) No Third Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

(i) Publicity. The Company shall afford the Investor and its counsel with the opportunity to review and comment upon the form and
substance of, and shall give reasonable consideration to all such comments from the Investor or its counsel on, any press release, SEC filing or any other public disclosure by or on behalf of the Company relating to the Investor, its purchases
hereunder or any aspect of the Transaction Documents or the transactions contemplated thereby, not less than 24 hours prior to the issuance, filing or public disclosure thereof. The Investor must be provided with a final version of any such press
release, SEC filing or other public disclosure at least 24 hours prior to any release, filing or use by the Company thereof. The Company agrees and acknowledges that its failure to fully comply with this provision constitutes a Material Adverse
Effect. 
 (j) Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to consummate and make effective, as soon as reasonably possible, the Commencement, and to
carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 
 (k) No
Financial Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Investor that it has not engaged any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby.
The Investor represents and warrants to the Company that it has not engaged any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Company shall be responsible for the payment of any
fees or commissions, if any, of any financial advisor, placement agent, broker or finder relating to or arising out of the transactions contemplated hereby. The Company shall pay, and hold the Investor harmless against, any liability, loss or
expense (including, without limitation, attorneys’ fees and out of pocket expenses) arising in connection with any such claim. 
 (l)
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 

(m) Remedies, Other Obligations, Breaches and Injunctive Relief. The Investor’s remedies provided in this Agreement, including,
without limitation, the Investor’s remedies provided in Section 9, shall be cumulative and in addition to all other remedies available to the Investor under this Agreement, at law or in equity (including a decree of specific performance
and/or other injunctive relief), no remedy of the Investor contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit the Investor’s right to pursue actual damages for
any failure by the Company to comply with the terms of this Agreement. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Investor and that the remedy at law for any

  
 -29- 

 
such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Investor shall be entitled, in addition to all other available
remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. 

(n) Enforcement Costs. If: (i) this Agreement is placed by the Investor in the hands of an attorney for enforcement or is enforced
by the Investor through any legal proceeding; (ii) an attorney is retained to represent the Investor in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’ rights and involving a claim under this
Agreement; or (iii) an attorney is retained to represent the Investor in any other proceedings whatsoever in connection with this Agreement, then the Company shall pay to the Investor, as incurred by the Investor, all reasonable costs and
expenses including attorneys’ fees incurred in connection therewith, in addition to all other amounts due hereunder. If this Agreement is placed by the Company in the hands of an attorney for enforcement or is enforced by the Company through
any legal proceeding, then the Investor shall pay to the Company, as incurred by the Company, all reasonable costs and expenses, including attorneys’ fees incurred in connection therewith, in addition to all other amounts due hereunder. 

(o) Amendment and Waiver; Failure or Indulgence Not Waiver. No provision of this Agreement may be amended or waived by the parties from
and after the date that is one (1) Business Day immediately preceding the initial filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, (i) no provision of this Agreement may be amended other
than by a written instrument signed by both parties hereto and (ii) no provision of this Agreement may be waived other than in a written instrument signed by the party against whom enforcement of such waiver is sought. No failure or delay in
the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or
privilege. 
 *    *    *    *    * 

  
 -30- 

 IN WITNESS WHEREOF, the Investor and the Company have caused this Agreement to be duly
executed as of the date first written above. 
  

			
	 THE COMPANY:
  

RXi PHARMACEUTICALS CORPORATION

		
	By:	 	/s/ Geert Cauwenbergh
	 Name: Geert Cauwenbergh, Dr. Med. Sc.

Title:   President

	
	 INVESTOR:
  

LINCOLN PARK CAPITAL FUND, LLC
 BY: LINCOLN PARK
CAPITAL, LLC
 BY: ROCKLEDGE CAPITAL CORPORATION

		
	By:	 	/s/ Josh Scheinfeld
	 Name: Josh Scheinfeld

Title:   President

  
 -31- 

 EXHIBITS 
  

			
	Exhibit A	  	Form of Officer’s Certificate
	Exhibit B	  	Form of Company Resolutions of Board of Directors For Signing Purchase Agreement
	Exhibit C	  	Form of Secretary’s Certificate
	Exhibit D	  	Form of Letter to Transfer Agent

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