Document:

Exhibit 10.1

 

 

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE AGREEMENT
(together with all Exhibits and Schedules hereto, as each may be amended, restated, amended and restated, supplemented or otherwise modified
from time to time in accordance with the terms hereof, this “Agreement”), dated as of October 28, 2021, is made by
and among (i) Armata Pharmaceuticals, Inc., a Washington corporation (the “Company”), (ii) Cystic Fibrosis Foundation,
a Delaware corporation (“CFF”) and (iii) Innoviva Strategic Opportunities LLC, a Delaware limited liability company
(“Innoviva” and together with CFF, each a “Purchaser” and collectively, the “Purchasers”).
The Company and the Purchasers are referred to herein individually as a “Party”, and, collectively as the “Parties.”

 

RECITALS

 

WHEREAS, subject to the terms
and conditions contained in this Agreement, at the Closing (as defined below), the Company intends to issue and sell to Innoviva 1,212,122
shares of fully paid and non-assessable Common Stock (“Innoviva Purchased Common Stock”) and to CFF 909,091 shares
of fully paid and non-assessable Common Stock (“CFF Purchased Common Stock” and together with the Innoviva Purchased
Common Stock, the “Purchased Common Stock”), and each Purchaser desires to purchase such Common Stock from the Company

 

WHEREAS, each share of Purchased
Common Stock will be issued and sold to the Purchasers at the Closing, for a per unit price of $3.30 (the “Per Share Purchase
Price”) payable in accordance with the terms hereof; and

 

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

 

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

 

ARTICLE I

DEFINITIONS

 

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

 

“2020 Warrants”
means the warrants purchased by Innoviva, Inc. pursuant to the 2020 Purchase Agreement.

 

“2020 Purchase Agreement”
means that certain Securities Purchase Agreement, dated as of January 27, 2020, by and between the Company and Innoviva, Inc.

 

“2021 Warrants”
means the warrants purchased by Innoviva pursuant to the 2021 Purchase Agreement.

 

“2021 Purchase Agreement”
means that certain Securities Purchase Agreement, dated as of January 26, 2021, by and between the Company and Innoviva.

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Common Stock”
means the common stock, par value $0.01 per share, of the Company, and any Capital Stock into which such Common Stock shall have been
converted, exchanged or reclassified following the date hereof.

 

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

 

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

 

“Company’s
Knowledge,” “Knowledge of the Company” or “Knowledge” means the actual knowledge of Brian
Varnum and Steve R. Martin.

 

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

 

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

 

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

 

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

 

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

 

    	 	2	 

     

    

 

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

 

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

 

“Existing Voting
Agreements” means both that certain voting agreement by and among the Company, Innoviva and Innoviva, Inc. dated January 26,
2021 and that certain voting agreement by and between the Company and Innoviva, Inc. dated January 27, 2020.

 

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

 

“Fundamental Representations”
has the meaning set forth in Section 9.13.

 

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

 

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

 

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

 

    	 	3	 

     

    

 

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

 

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

 

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

 

“Material Adverse
Effect” means any effect, change, event, development, condition or occurrence that, individually or together with one or more
effects, changes, events, developments, conditions or occurrences, has had or would be reasonably expected to have or result in a material
adverse effect or material adverse change on the business, assets, liabilities, properties, financial condition or operating results of
the Company and its Subsidiaries, taken as a whole, or to the ability of the Company to consummate timely the transactions contemplated
by this Agreement.

 

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

 

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

 

“NYSE American”
means the NYSE American stock exchange maintained by the New York Stock Exchange (NYSE).

 

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

 

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

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

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

 

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

 

    	 	4	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

“Required Minimum”
means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future pursuant
to this Agreement, the 2020 Purchase Agreement or the 2021 Purchase Agreement, including the shares of Common Stock issuable upon exercise
in full of all of the 2020 Warrants and the 2021 Warrants.

 

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

 

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

 

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

 

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

 

“SEC Documents”
has the meaning set forth in Section 3.8(a).

 

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

 

“Stockholders”
means, collectively, the Purchasers and Innoviva, Inc.

 

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

 

    	 	5	 

     

    

 

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

 

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

 

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

 

“Voting Agreement”
means the voting agreement to be entered into by Innoviva and certain of its Affiliates and the Company, in substantially the form set
forth on Exhibit A hereto.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	6	 

     

    

 

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

 

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

 

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

 

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

 

ARTICLE II

PURCHASE AND SALE

 

Section 2.1   The Purchase and Sale.

 

(a)  On the terms and subject to the conditions set forth herein, at the Closing, CFF hereby agrees to purchase the CFF Purchased Common
Stock, Innoviva hereby agrees to purchase the Innoviva Purchased Common Stock, and the Company shall sell to CFF in exchange for the applicable
Purchase Price, the CFF Purchased Common Stock and the Company shall sell to Innoviva in exchange for the applicable Purchase Price, the
Innoviva Purchased Common Stock, in each case, free and clear of all Liens.

 

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

 

Section 2.2    Closing.

 

(a)   The closing of the purchase of the Purchased Common Stock (the “Closing”) shall take place remotely via the
electronic exchange of documents and signatures on the first business day after the satisfaction or waiver of the conditions set forth
in Article VI. The date on which the Closing actually occurs shall be referred to herein as the “Closing Date”. At
the Closing, the Company shall issue the Common Stock to the Purchasers free and clear of all Liens against payment by the Purchasers
of the Purchase Price.

 

(b)   At the Closing, the Company shall:

 

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

 

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

 

(B)    copies of the resolutions or written consents duly adopted by the Board and certified by the Company’s secretary authorizing
the execution, delivery and performance of this Agreement and the transactions contemplated hereby (including authorization of the transactions
contemplated hereunder pursuant to Section 23B.19.040 of Washington Business Corporation Act); and

 

(C)    a counterpart to the Registration Rights Agreement, duly executed by the Company; and

 

(D)    a counterpart to the Voting Agreement, duly executed by the Company;

 

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

 

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

 

(c)    At the Closing, Innoviva shall deliver or cause to be delivered to the Company a counterpart to the Voting Agreement, duly executed
by Innoviva and its Affiliates party thereto.

 

    	 	7	 

     

    

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

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

 

Section 3.1 Organization and Qualification. The Company and each of its Subsidiaries are entities duly organized, validly existing and in good
standing under the Laws of the jurisdiction in which they are formed, and each has the requisite power and authority to own its properties
and to carry on its business as now being conducted and as presently proposed to be conducted. The Company and each of its Subsidiaries
is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property
or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified
or be in good standing would not, individually or in the aggregate, have a Material Adverse Effect. Other than the Persons set forth on
Exhibit 21.1 to the Company’s Annual Report on Form 10-K, filed with the SEC on March 18, 2021, the Company has no Subsidiaries
and does not own Capital Stock in any other Person.

 

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

 

Section 3.3  Issuance of Common Stock. The issuance of the Purchased Common Stock is duly authorized, and upon issuance in accordance with the
terms of the Definitive Documents will be validly issued, fully paid and non-assessable (to the extent such concepts are applicable) and
free and clear of all Liens. The issuances of the Purchased Common Stock in connection with the transactions contemplated by the Definitive
Documents are in compliance, in all respects, with all applicable Laws, and the Purchased Common Stock is not subject to, and will not
be issued in violation of, any purchase options, call options, rights of first refusal, preemptive rights, subscription rights or any
similar rights under applicable Law, the Company Organizational Documents or any Contract to which the Company or any of its Subsidiaries
is a party or by which it is bound. Subject to the accuracy of the representations and warranties of the Purchasers set forth in Article
IV, the offer and issuance by the Company of the Purchased Common Stock is exempt from registration under the Securities Act.

 

Section 3.4  No Conflicts. The execution, delivery and performance of this Agreement and the other Definitive Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby (including the issuance of the Purchased Common Stock)
will not (i) result in a violation of the Certificate of Incorporation, Bylaws, certificate of formation, memorandum of association, articles
of association, bylaws or other organizational documents of the Company or any of its Subsidiaries (collectively, the “Group
Companies Organizational Documents”), (ii) conflict with, or constitute a default (or an event which with notice or lapse of
time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any Contract that would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(10) of
Regulation S-K under the Securities Act or other agreement, indenture or instrument to which the Company or any of its Subsidiaries is
a party, other than (a) the acceleration of vesting of restricted stock awards set forth in the SEC Documents and (b) the deemed exercise
of warrants to purchase Common Stock set forth in the SEC Documents, or (iii) result in a material violation of any Law (including, for
the avoidance of doubt, foreign, federal and state securities Laws and the rules and regulations of the NYSE American) or Order that would
be material to the business of the Company and its Subsidiaries taken as a whole.

 

    	 	8	 

     

    

 

Section 3.5  Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any
filing or registration with any Governmental Entity or any regulatory or self-regulatory agency or any other Person in order for it to
execute, deliver or perform any of its respective obligations under or contemplated by this Agreement or the other Definitive Documents,
in each case, in accordance with the terms hereof and thereof. To the Company’s Knowledge, no facts or circumstances exist which
might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registrations, applications or filings contemplated
by the Definitive Documents. The Company is not in violation of the requirements of the NYSE American and has no Knowledge of any facts
or circumstances which could reasonably lead to delisting or suspension of the Common Stock.

 

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

 

Section 3.7  Application of Takeover Protections; Rights Agreement; Other Approvals. The Company and the Board have taken all necessary actions,
if any, in order to comply with or obtain waivers in connection with any control share acquisition, interested stockholder, business combination,
poison pill (including any distribution under a rights agreement), stockholder rights plan or other similar anti-takeover provision under
any of the Group Companies Organizational Documents or the Laws of the jurisdiction of its incorporation or otherwise which is or could
become applicable to Stockholders as a result of the transactions contemplated by the Definitive Documents, including the Company’s
issuance of the Purchased Common Stock and ownership by the Purchasers of the Purchased Common Stock, or as a result of Innoviva or Innoviva,
Inc. acquiring the Common Stock and/or 2020 Warrants (and the stock issuable upon exercise thereof) issued under the 2020 Purchase Agreement
or Common Stock and/or 2021 Warrants (and the stock issuable upon exercise thereof) issued under the 2021 Purchase Agreement. The Company
and the Board have taken all necessary action, if any, in order to render inapplicable any stockholder rights plan or similar arrangement
relating to accumulations of beneficial ownership of shares of Common Stock or a change in control of the Company or any of its Subsidiaries.
The Company and the Board have taken all necessary action in order to exempt the acquisition of the Purchased Common Stock, the Common
Stock Purchased pursuant to the 2020 Purchase Agreement, the 2020 Warrants (and the Common Stock issuable upon exercise thereof), the
Common Stock Purchased pursuant to the 2021 Purchase Agreement, the 2021 Warrants (and the Common Stock issuable upon exercise thereof)
from Section 16(b) of the Exchange Act, including pursuant to Rule 16b-3(d).

 

Section 3.8   SEC Documents; Financial Statements.

 

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

 

    	 	9	 

     

    

 

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

 

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

 

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

 

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

 

    	 	10	 

     

    

 

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

 

Section 3.10   Conduct of Business; Regulatory Permits.

 

(a)   Neither the Company nor any of its Subsidiaries is in violation of any term of or in default under the Group Companies Organizational
Documents. Neither the Company (including its predecessors) nor any Subsidiaries thereof (i) is, or has been since January 1, 2019, in
violation of any applicable Law or Order applicable thereto or (ii) has received since January 1, 2019 a notification or communication
from any Governmental Entity asserting that it is not or has not been in compliance with any applicable Law or Order. Without limiting
the generality of the foregoing, the Company is not in material violation of any of the rules, regulations or requirements of the NYSE
American, and has no Knowledge of any facts or circumstances that could reasonably lead to delisting or suspension of trading the Common
Stock by the NYSE American. Since January 1, 2019, (i) the Common Stock has been listed or designated for quotation on the NYSE American,
(ii) trading in the Common Stock has not been suspended by the SEC or the NYSE American and (iii) the Company has received no communication,
written or oral, from the SEC or the NYSE American regarding the suspension or delisting of the Common Stock from the NYSE American. The
Company and each of its Subsidiaries possess all licenses, certificates, authorizations and permits issued by the appropriate Governmental
Entity necessary to conduct their respective businesses, and neither the Company nor any such Subsidiary has received any notice of proceedings
relating to the revocation or modification of any such license, certificate, authorization or permit. There is no Contract or Order binding
upon the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party which, individually or together
with any other Contract or Order, has had or would reasonably be expected to have the effect of prohibiting or materially impairing any
business practice of the Company or any of its Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries.

 

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

 

Section 3.11  Certain Regulatory Matters.

 

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

 

    	 	11	 

     

    

 

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

 

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

 

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

 

(e)   Since January 1, 2019, no allegations of sexual harassment have been made to the Company (including its predecessors) or any Subsidiaries
thereof against any individual in his or her capacity as director or a managerial employee, or to the Company’s Knowledge, any other
employee, of the Company (including its predecessors) or any Subsidiaries thereof.

 

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

 

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

 

Section 3.14  Capitalization

 

(a)   As of the date hereof, the authorized capital stock of the Company consists of 217,000,000 shares of Common Stock, of which 24,965,086
are issued and outstanding. No shares of Common Stock are held in the treasury of the Company. Except for the foregoing Capital Stock,
the Company has no other Capital Stock authorized. The Company also has reserved for issuance 2,469,651 shares of Common Stock issuable
upon exercise of outstanding stock options and restricted stock units, and 16,647,219 shares of Common Stock issuable upon exercise of
outstanding warrants.

 

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

 

    	 	12	 

     

    

 

(c)  (A) None of the Company’s or any of its Subsidiaries’ Capital Stock is subject to preemptive rights or any other similar
rights or restrictions or Liens suffered or permitted by the Company or any Subsidiary; (B) other than the 2020 Warrants and the 2021
Warrants, and as of the Closing, there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any Capital Stock of the
Company or any of its Subsidiaries, or Contracts by which the Company or any of its Subsidiaries is or may become bound to issue additional
Capital Stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any Capital Stock of the
Company or any of its Subsidiaries; (C) other than Registration Rights Agreement, there are no Contracts under which the Company or any
of its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act; (D) there are no outstanding
securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are
no Contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem
a security of the Company or any of its Subsidiaries; (E) there are no securities or instruments or Capital Stock containing anti-dilution
or similar provisions that will be triggered by the issuance of the Securities; (F) neither the Company nor any Subsidiary has any stock
appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (G) other than the Voting
Agreement and the Existing Voting Agreements, there are no stockholder agreements, voting trusts or other agreements to which the Company
or any of its Subsidiaries is a party or by they are bound relating to the voting of any shares, interests or capital stock of the Company
or any of its Subsidiaries.

 

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

 

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

 

Section 3.16  Material Contracts. Each Material Contract set forth in the SEC Documents is in full force and effect, and is a legal, valid and
binding agreement of the Company or its Subsidiaries, as applicable, and, to the Company’s Knowledge, the other parties thereto,
subject only to the General Enforceability Exceptions. There is no material default or breach by the Company or any of its Subsidiaries,
as applicable, with respect to any such Material Contract or, to the Company’s Knowledge, any other party thereto, and no event
has occurred which, with notice or lapse of time or both, would constitute a material breach or default or would permit termination, material
modification or acceleration thereof by any party to such Material Contract. Neither the Company nor any of its Subsidiaries has waived
any material rights under any such Material Contract. Neither the Company nor any of its Subsidiaries has received written notice of the
intention of any third party under any such Material Contract to cancel, terminate or materially modify the terms of any such Material
Contract, or accelerate the obligations of the Company or any of its Subsidiaries, as applicable, thereunder. There are no current or
pending financing arrangements or assignments of proceeds with respect to any such Material Contract.

 

Section 3.17  Litigation. Except as would not, individually or in the aggregate, have a Material Adverse Effect, there is no, and since January
1, 2019 there has not been, any Action before or by the NYSE American, any court, public board, other Governmental Entity, self-regulatory
organization or body pending or, to the Knowledge of the Company, threatened against or affecting the Company (including its predecessors)
or any of Subsidiaries thereof, the Capital Stock thereof or any current or former officers, directors, managers or employees thereof,
whether of a civil or criminal nature or otherwise, in their capacities as such. To the Knowledge of the Company, no current or former
director, officer, manager or employee of the Company (including its predecessors) or any of its Subsidiaries has willfully violated 18
U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation. Without limitation of the foregoing, there has not
been, and to the Knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company (including
its predecessors), any Subsidiaries thereof or any current or former director, officer, manager of employee of the Company or any of its
Subsidiaries. The SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed by
the Company under the Securities Act or the 1934 Act. To the Company’s Knowledge, no fact exists which might result in or form the
basis for any such Action. Neither the Company nor any of its Subsidiaries is subject to any Order.

 

    	 	13	 

     

    

 

Section 3.18  Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts, in each case, as is customary in the businesses in which the Company and its Subsidiaries are engaged.
All premiums due and payable in respect of such insurance policies maintained by the Company and its Subsidiaries have been paid in full.
Neither the Company nor any of its Subsidiaries have been refused any insurance coverage sought or applied for, and neither the Company
nor any such Subsidiary has any reason to believe that it will be unable to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its business on substantially the same terms
as now in effect. Excluding insurance policies that have expired and been replaced in the ordinary course of business, no such insurance
policy of the Company or any of its Subsidiaries has been, or has been threatened to be, cancelled by the applicable insurer since January
1, 2019, and neither the Company nor any of its Subsidiaries has received any written notice of cancellation or non-renewal of any such
insurance policy.

 

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

 

Section 3.20   Title.

 

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

 

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

 

    	 	14	 

     

    

 

Section 3.21  Intellectual Property Rights.

 

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

 

(b)   The Company is the exclusive owner of the entire right, title and interest in and to, or has licensed or has the right to license
all Intellectual Property rights in, AP-SA02, AP-PA02 and AP-PA03 (collectively, the “Products”), all data associated
therewith, and all Intellectual Property Rights covering or relating to the Products, free and clear of all liens. To the Company’s
Knowledge, all patents owned or controlled by the Company that have been issued or granted by the appropriate Patent Office are valid
and enforceable.

 

(c)   There is no Action which has been brought, or to the Knowledge of the Company, being threatened, against the Company or any of
its Subsidiaries regarding its Intellectual Property Rights. To the Knowledge of the Company, there are no facts or circumstances which
might give rise to any Actions regarding the Company’s Intellectual Property Rights.

 

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

 

(e)   The Company is in material compliance with all terms of and obligations under its collaboration agreement with Merck and its grant
agreements with the National Institute of Health and the National Institute of Allergy and Infectious Diseases, and has not breached and
is not in default under any provision of those agreements.

 

(f)    No event has occurred that would give Merck the right to unilaterally terminate the collaboration agreement. The Company has not
received any notice of an intention by Merck to terminate the collaboration agreement, and the Company has not agreed with Merck to terminate
the collaboration agreement in whole or in part.

 

(g)   The Company is in material compliance with all healthcare laws and regulations, and with the codes of conduct published by the
Pharmaceutical Research and Manufacturers of America.

 

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

 

    	 	15	 

     

    

 

Section 3.22    Environmental Laws.

 

(a)     The Company (including its predecessors) and Subsidiaries thereof (A) are, and since January 1, 2019 have been, in compliance with
any and all Environmental Laws (as defined below), and neither the Company nor any of its Subsidiaries has received any written communication
alleging that the Company is in violation of, or has any liability under, any Environmental Law, (B) have received all permits, licenses
or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (C) are in compliance
with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (A), (B) and (C), the failure
to so comply would not have, individually or in the aggregate, a Material Adverse Effect.

 

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

 

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

 

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

 

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

 

Section 3.26    Registration Eligibility. The Company is, and from and after the date hereof will be, eligible to register the Registrable Securities
(as defined in the Registration Rights Agreement) for resale by the Purchaser using Form S-1 or Form S-3 promulgated under the 1933 Act.

 

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

 

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

 

Section 3.29    ERISA Compliance.

 

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

 

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

 

    	 	16	 

     

    

 

(c)    At no time during the past six (6) years has the Company (including its predecessors) or any member of the “Controlled Group”
thereof (defined as any organization which is a member of a controlled group of organizations within the meaning of Code Sections 414(b),
(c), (m) or (o)) maintained, sponsored or contributed to, or been obligated to contribute to (i) any retirement plan which is subject
to Title IV of ERISA or Section 412 of the Code or (ii) any “multiemployer plan” as defined in Section 4001(a)(3) of ERISA

 

Section 3.30   Management. Since January 1, 2019, no current or former officer or director or, to the Knowledge of the Company, no current ten
percent (10%) or greater stockholder of the Company (including its predecessors) or any Subsidiaries thereof has been the subject of:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 3.31  FDA. There is no pending, completed or, to the Company’s Knowledge, threatened, Action or investigation against the Company
or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication
from the U.S. Food and Drug Administration (“FDA”) or any other governmental entity, which (i) contests the premarket
clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of,
the sale of, or the labeling and promotion of any Product, (ii) withdraws its approval of, requests the recall, suspension, or seizure
of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Product, (iii) imposes a clinical
hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production at any facility of the Company or
any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its
Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries. The
properties, business and operations of the Company have been and are being conducted in all material respects in accordance with all applicable
laws, rules and regulations of the FDA. The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license
or use in the United States of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any
concern as to approving or clearing for marketing any product being developed or proposed to be developed by the Company.

 

    	 	17	 

     

    

 

Section 3.32  Stock Option Plans. Each stock option granted by the Company was granted (i) in accordance with the terms of the applicable stock
option plan of the Company and (ii) with an exercise price at least equal to the fair market value of the Common Stock on the date such
stock option would be considered granted under GAAP and applicable Law. No stock option granted under the Company’s stock option
plan has been backdated. The Company has not granted, nor has there been any policy or practice of the Company to knowingly grant, stock
options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement of material
information regarding the Company or its Subsidiaries or their financial results or prospects.

 

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

 

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

 

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

 

Section 3.36 Disclosure. The Company understands and confirms that Purchasers will and is entitled to rely on the foregoing representations
in effecting transactions in securities of the Company. All disclosure provided to Purchasers regarding the Company and its Subsidiaries,
their businesses and the transactions contemplated by the Definitive Documents furnished by or on behalf of the Company or any of its
Subsidiaries 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 the light of the circumstances under which they were made, misleading. No event or circumstance has occurred
and no information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects,
operations (including results thereof) or conditions (financial or otherwise), which, under applicable Law, requires public disclosure
at or before the date hereof or announcement by the Company but which has not been so publicly disclosed. All financial projections and
forecasts that have been prepared by or on behalf of the Company or any of its Subsidiaries and made available to Purchasers have been
prepared in good faith based upon reasonable assumptions and represented, at the time each such financial projection or forecast was delivered
to Purchaser, the Company’s best estimate of future financial performance (it being recognized that such financial projections or
forecasts are not to be viewed as facts and that the actual results during the period or periods covered by any such financial projections
or forecasts may differ from the projected or forecasted results).

 

Section 3.37 Disclaimer of Other Representations and Warranties. Except as expressly set forth in this Article III or in any other Definitive
Document, the Company makes no representation or warranty, express or implied, at law or in equity, including with respect to it or any
of its Subsidiaries or any of their respective assets, liabilities or operations, and any such other representations and warranties are
hereby expressly disclaimed.

 

    	 	18	 

     

    

 

Section 3.38  CFF-Specific Representations. The Company hereby acknowledges that the CFF is a non-profit organization whose charitable mission
is to cure cystic fibrosis and to provide all people with cystic fibrosis the opportunity to lead long, fulfilling lives. The Company
and the CFF agree and acknowledge that the CFF’s purchase of Purchased Common Stock hereunder is in furtherance of the CFF’s
mission, and that such investment can substantially accelerate the development of the Company’s efforts in the field of cystic fibrosis.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

 

Each Purchaser hereby, severally,
and not jointly, represents and warrants as of the date hereof, as of the Closing, as follows:

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	19	 

     

    

 

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

 

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

 

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

 

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

 

ARTICLE V

ADDITIONAL COVENANTS

 

Section 5.1   Covenants of the Company

 

(a)   Affirmative Covenants: Except (x) as otherwise expressly required by this Agreement, (y) as required by applicable Law or
(z) as consented to in writing by the Purchasers, during the period from the date hereof until the earliest of (i) the Closing, (ii) the
Closing Abandonment and (iii) the termination of this Agreement in accordance with Article VII, the Company shall, and shall cause
each of its direct and indirect Subsidiaries to:

 

(i)    preserve, in all material respects, its business operations, organization and goodwill and its relationships with suppliers, customers,
lenders and others having business dealings with the Company and its Subsidiaries;

 

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

 

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

 

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

 

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

 

    	 	20	 

     

    

 

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

 

(vii)  operate their business in the ordinary course of business; and

 

(viii)   provide, and direct its Representatives to provide, to the Purchasers and its Representatives (A) reasonable access to the Company
and its Subsidiaries’ books and records during normal business hours on reasonable advance notice to the Company and its Subsidiaries’
Representatives, (B) reasonable access to the Representatives of the Company and its Subsidiaries on reasonable advance notice to such
persons, and (C) such other information as reasonably requested by the Purchasers and its Representatives.

 

(b)   Negative Covenants: Except (x) as otherwise expressly required by this Agreement, (y) as required by applicable Law or (z)
as consented to by the Purchasers in writing, during the period from the date hereof until the earliest of (i) the Closing, (ii) the Closing
Abandonment and (iii) the termination of this Agreement in accordance with Article VII, the Company shall not, and shall cause each of
its direct and indirect Subsidiaries not to:

 

(i)    transfer any material property, asset or right of the Company or its Subsidiaries or any material property, asset or right used
in the business of the Company and its Subsidiaries to any person or entity outside of the ordinary course of business;

 

(ii)   engage in any material disposition, acquisition, leasing, investment or other similar transaction (whether by merger, consolidation
or otherwise) outside of the ordinary course of business;

 

(iii)   incur, create, assume, guarantee or otherwise become liable for any Indebtedness, other than trade indebtedness or contingent liabilities
under surety bonds, in each case, in the ordinary course of business;

 

(iv)   amend the Company’s or any of its Subsidiaries’ organizational documents (whether by merger, consolidation or otherwise);

 

(v)    split, combine, reclassify, redeem, repurchase, acquire, issue or deliver or amend the terms of any Capital Stock of the Company
or any of its Subsidiaries (whether by merger, consolidation or otherwise), other than the transactions expressly contemplated by this
Agreement;

 

    	 	21	 

     

    

 

(vi)    enter into any transactions with a Related Party;

 

(vii)   create or incur any Lien on any capital stock, assets or properties of the Company or any of its Subsidiaries, other than (a) Liens
related to capital leases in place as of the date hereof or entered into after the date hereof in the ordinary course of business or (b)
immaterial Liens created or incurred in the ordinary course of business;

 

(viii)  adopt, establish, enter into, amend, terminate or increase the benefits under any of the Company’s or its Subsidiaries’
benefit plans, except for approval and adoption of annual compensation programs in the ordinary course of business;

 

(ix)     declare, set aside, make or pay any dividend or other distribution (whether in stock, cash, other property or any combination thereof)
with respect to any Capital Stock of the Company and its Subsidiaries;

 

(x)      amend or terminate any Material Contracts of the Company or its Subsidiaries, other than renewals, amendments, change orders and
expirations of such Material Contracts in the ordinary course of business;

 

(xi)     waive, release, assign, settle or compromise any material action, suit, claim, cause of action, investigation, complaint, legal
proceeding, administrative enforcement proceeding, arbitration proceeding or other proceeding or adjudicative matter by or before any
Governmental Entity (other than actions in the ordinary course of business);

 

(xii)    settle or compromise any material Tax Contest, consent to any extension or waiver of any limitation period with respect to any
material claim or assessment for Taxes, make, change or revoke any material Tax election or materially change any of the Company’s
or its Subsidiaries’ accounting principles and methodologies (other than as required by GAAP); or

 

(xiii)   agree, commit or offer to do any of the foregoing.

 

Section 5.2    Pre-Closing Exclusivity. From the date hereof until the earliest of (i) the Closing, (ii) the Closing Abandonment and (iii) the
termination of this Agreement in accordance with Article VII (provided, that, with respect to any termination of this Agreement or the
Closing Abandonment, the primary cause of which is the material breach by the Company of any of its covenants or other agreements contained
in this Agreement, the obligations under this Section 5.2 shall extend until 90 days following the earlier of termination of this
Agreement or the Closing Abandonment), (i) the Company shall not, and shall instruct its Affiliates and Representatives not to, directly
or indirectly, initiate, solicit, facilitate, encourage, discuss, negotiate, endorse, engage in, enter into or accept any discussions,
negotiations, proposals, inquiries, offers or agreements with any Person (other than the Purchasers and their Representatives pursuant
to this Agreement) relating to the acquisition of the Company or its Subsidiaries, or greater than 20% of their businesses (whether by
merger, stock sale, asset sale, tender offer, exchange offer or otherwise), or relating to the issuance of equity (other than Common Stock
as incentive compensation), (collectively, the matters described in this Section 5.2(i), an “Acquisition Proposal”
(ii) the Company shall, and shall instruct its Affiliates and Representatives to, immediately cease and cause to be terminated all existing
discussions or negotiations with any third party (other than the Purchasers and their Representatives relating to this Agreement) conducted
by or on behalf of the Company or any of its Subsidiaries on or prior to the date hereof in connection with any other transaction relating
to an Acquisition Proposal and (iii) the Company shall promptly inform the Purchasers in the event that the Company or any of its Affiliates
or Representatives receives any inquiry, proposal or offer that could reasonably be expected to lead to an Acquisition Proposal.

 

Section 5.3    [Reserved].

 

Section 5.4    Registration Rights Agreement. Simultaneously with the Closing, the Company shall enter into a Registration Rights Agreement, in
substantially the form attached hereto as Exhibit B (the “Registration Rights Agreement”).

 

Section 5.5   Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security
(as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Purchased Common Stock in a manner
that would require the registration under the Securities Act of the sale of the Purchased Common Stock or that would be integrated with
the offer or sale of the Purchased Common Stock for purposes of the rules and regulations of the NYSE American such that it would require
stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such
subsequent transaction.

 

Section 5.6   Required Minimum. The Company shall (i) in the time and manner required by the NYSE American, prepare and file with the NYSE American
a Supplemental Listing Application covering a number of shares of Common Stock at least equal to the Required Minimum on the date of such
application, (ii) take all steps necessary to cause such shares of Common Stock to be approved for listing or quotation on NYSE American
as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing or quotation and (iv) maintain the listing or
quotation of such Common Stock on any date at least equal to the Required Minimum on such date on NYSE American. The Company agrees to
maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company or another established clearing
corporation, including, without limitation, by timely payment of fees to the Depository Trust Company or such other established clearing
corporation in connection with such electronic transfer.

 

    	 	22	 

     

    

 

Section 5.7   Acknowledgment of Dilution. The Company acknowledges that the issuance of the Purchased Common Stock may result in dilution of
the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges
that its obligations under the Definitive Documents, including, without limitation, its obligation to issue the Purchased Common Stock
pursuant to this Agreement, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction,
regardless of the effect of any such dilution or any claim the Company may have against Purchasers and regardless of the dilutive effect
that such issuance may have on the ownership of the other stockholders of the Company.

 

Section 5.8   Expense Reimbursement. Upon the Closing, the Company shall promptly, upon written request of Innoviva, reimburse Innoviva for all
reasonable and documented fees and expenses of Innoviva and its Affiliates and Representatives (including the fees and expenses of counsel)
incurred prior to, on or after the date hereof in connection with the examination, review, due diligence investigation, documentation,
negotiation, closing and funding of the transactions contemplated by this Agreement. For the avoidance of doubt, CFF shall be responsible
for its fees and expenses (including those fees expenses of its Affiliates and Representatives) incurred in connection with the examination,
review, due diligence investigation, documentation, negotiation, closing and funding of the transactions contemplated by this Agreement.
Notwithstanding anything to the contrary herein, this Section 5.8 shall survive the termination of this Agreement.

 

Section 5.9   Blue Sky Filings. The Company has taken or shall take, as applicable, such action as the Company shall reasonably determine is
necessary in order to obtain an exemption for, or to qualify the Purchased Common Stock for, sale to the Purchasers at the Closing, under
applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly
upon request of any Purchasers.

 

ARTICLE VI

CONDITIONS TO THE OBLIGATIONS OF THE PARTIES

 

Section 6.1   Conditions to the Obligations of the Purchasers at the Closing. The obligations of Purchasers to consummate the Closing (which,
for the avoidance of doubt, are several and not joint) shall be subject to (unless waived in writing by the Purchasers) the satisfaction
of the following conditions prior to or at the Closing:

 

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

 

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

 

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

 

(d)    Accuracy of the Representations and Warranties. (i) The Fundamental Representations shall be true and correct in all respects
as of the date hereof and as of the Closing as though made at and as of the Closing (other than such representations and warranties as
are made as of an earlier date, which shall be so true and correct as of such earlier date) and (ii) the other representations and warranties
of the Company (A) that are qualified by “materiality”, “Material Adverse Effect” or similar qualifier shall be
true and correct in all respects as of the date hereof and as of the Closing as though made at and as of the Closing (other than such
representations and warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date) and (B)
that are not qualified by “materiality”, “Material Adverse Effect” or similar qualifier shall be true and correct
in all material respects as of the date hereof and as of the Closing as though made at and as of the Closing (other than such representations
and warranties as are made as of an earlier date, which shall be so true and correct as of such earlier date).

 

    	 	23	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE VII

TERMINATION

 

Section 7.1     Termination. This Agreement may be terminated, and the transactions contemplated hereby may be abandoned, at any time prior to
the Closing:

 

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

 

(b)    by the Company or the Purchasers, upon written notice to the other Party, if a Governmental Entity of competent jurisdiction has
issued an Order or has taken any other action permanently enjoining or otherwise prohibiting the consummation of the transactions contemplated
by this Agreement, and such Order or action has become final and non-appealable; provided, however, that the right to terminate this Agreement
pursuant to this Section 7.1(b) shall not be available to any Party whose breach of any representation, warranty, covenant or other
agreement contained in this Agreement is the primary cause of the failure to avoid such Order or other action; or

 

(c)   by Purchasers, upon written notice to the Company, if:

 

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

 

    	 	24	 

     

    

 

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

 

Section 7.2  Effect of Termination. Upon termination of this Agreement pursuant to this Article VII, this Agreement shall forthwith become
void and there shall be no further obligations or liabilities on the part of the Parties; provided, that, Section 2.2(b)(iii),
Section 2.3(b)(ii), Section 5.9, Section 8.1, Section 8.3 through Section 8.9, Section 8.11
and Section 8.13 shall survive the termination of this Agreement; provided further that nothing set forth in this Agreement
shall relieve any Party from liability for any breach of this Agreement occurring prior to such termination.

 

Section 7.3  [Reserved].

 

Section 7.4  Closing Abandonment. In the event that the Closing shall not have been consummated on or prior to 5:00 pm New York Time on November
12, 2021 or such later date, if any, as the Company and the Purchasers may mutually agree (the “Abandonment Date”),
either the Purchasers or the Company shall be entitled to deliver written notice (a “Closing Abandonment Notice”) to
the other specifying that the noticing party has elected not to proceed with the consummation of the Closing; provided, however, that
the right to deliver a Closing Abandonment Notice pursuant to this Section 7.4 shall not be available to any Party whose breach
of any representation, warranty, covenant or other agreement contained in this Agreement is the primary cause of the failure of the Closing
to occur on or prior to the Abandonment Date. Upon delivery of a Closing Abandonment Notice, the obligation of each party to consummate
the Closing shall terminate and no party shall thereafter be required to take any action contemplated herein necessary to cause the Closing
to occur (the “Closing Abandonment”). For the avoidance of doubt, (i) the occurrence of the Closing Abandonment shall
not limit any liability for a breach of this Agreement occurring prior to the Closing Abandonment and (ii) following the Closing Abandonment,
all other terms, conditions and indemnities set forth herein shall continue in full effect in accordance with their terms.

 

ARTICLE VIII

GENERAL PROVISIONS

 

Section 8.1  Notices. All notices and other communications in connection with this Agreement shall be in writing and shall be deemed given if
delivered personally, sent via electronic mail (with confirmation), mailed by registered or certified mail (return receipt requested)
or delivered by an express courier (with confirmation) to the Parties at the following addresses (or at such other address for a Party
as may be specified by like notice):

 

		(a)	If to the Company:

 

Armata Pharmaceuticals, Inc.

4503 Glencoe Avenue

Marina del Rey, CA

Attn: Chief Executive Officer

Email: info@armatapharma.com

 

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

 

    	 	25	 

     

    

 

Thompson Hine LLP

335 Madison Avenue

12th Floor

New York, New York 10017-4611

Attn: Faith L. Charles

Email: faith.charles@thompsonhine.com

 

		(b)	If to Innoviva:

 

c/o Innoviva

1350 Old Bayshore Highway

Suite 400

Burlingame, CA 94010

Attention: Chief Executive Officer

Email: pavel.raifeld@inva.com

 

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

 

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Attention: Jared Fertman

Email: jfertman@willkie.com

 

		(c)	If to CFF:

 

c/o Cystic Fibrosis Foundation

4550 Montgomery Ave., Suite 1100N

Bethesda, MD 20814

Attention: Michael Boyle, Chief Executive Officer

Email: mboyle@cff.org

 

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

 

c/o Cystic Fibrosis Foundation

4550 Montgomery Ave., Suite 1100N

Bethesda, MD 20814

Attention: Stephanie Singer, Esq.

Email: ssinger@cff.org

 

Section 8.2  Assignment; Third Party Beneficiaries. Neither this Agreement nor any of the rights, interests or obligations under this Agreement
shall be assigned or transferred (in whole or in part) by any Party (whether by operation of law or otherwise) without the prior written
consent of the other Party; provided that Purchasers shall be entitled to assign this Agreement in whole or in part to any of its Subsidiaries
or Affiliates. Any purported assignment or transfer in violation of this Section 8.2 shall be null and void ab initio. This
Agreement (including the documents and instruments referred to in this Agreement) is not intended to and does not confer upon any Person
any rights or remedies under this Agreement other than the Parties.

 

Section 8.3  Prior Negotiations; Entire Agreement. This Agreement (including the agreements attached as Schedules and Exhibits to and the documents
and instruments referred to in this Agreement, including the Definitive Documents) constitute the entire agreement of the Parties and
supersede all prior agreements, arrangements or understandings, whether written or oral, among the Parties with respect to the subject
matter of this Agreement.

 

Section 8.4  Governing Law; Venue: Forum. THIS AGREEMENT (AND ANY CLAIMS OR CAUSE OF ACTION ARISING UNDER, OUT OF OR IN CONNECTION WITH THIS
AGREEMENT, WHETHER IN CONTRACT, TORT OR STATUTE) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. Each
of the Parties irrevocably and unconditionally agrees that, subject to the immediately following sentence of this Section 8.4,
any legal action, suit or proceeding against it with respect to any matter arising under, out of or in connection with this Agreement
or for recognition or enforcement of any judgment rendered in any such action, suit or proceeding, may be brought in the Delaware Chancery
Court (or, if the Delaware Chancery Court shall be unavailable, then any federal court of the United States of America sitting in the
State of Delaware), and by execution and delivery of this Agreement, each of the Parties: (a) irrevocably submits itself to the nonexclusive
jurisdiction of such court, (b) waives any objection to laying venue in any such action, suit or proceeding and (c) waives any objection
that such court is an inconvenient forum or does not have jurisdiction over such Party.

 

    	 	26	 

     

    

 

Section 8.5   Waiver of Jury Trial. EACH PARTY IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING UNDER, OUT OF OR
IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER IN CONTRACT, TORT OR STATUTE).

 

Section 8.6   Counterparts. This Agreement may be executed in any number of counterparts, all of which will be considered one and the same agreement
and will become effective when counterparts have been signed by each of the Parties and delivered to each other Party (including via facsimile
or other electronic transmission), it being understood that each Party need not sign the same counterpart.

 

Section 8.7    Waivers and Amendments; Rights Cumulative; Consent; Severability.

 

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

 

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

 

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

 

Section 8.8   Headings; Interpretation. The headings in this Agreement are for reference purposes only and will not in any way affect the meaning
or interpretation of this Agreement. Each Party participated in the drafting of this Agreement and this Agreement shall be construed without
regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument
to be drafted.

 

Section 8.9  Specific Performance. It is understood and agreed by the Parties that irreparable damage would occur if any provision of this Agreement
were not performed in accordance with the terms hereof and that the Parties shall be entitled to an injunction or injunctions without
the necessity of posting a bond to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions
hereof, in addition to any other remedy to which they are entitled at law or in equity. Unless otherwise expressly stated in this Agreement,
no right or remedy described or provided in this Agreement is intended to be exclusive or to preclude a Party from pursuing other rights
and remedies to the extent available under this Agreement, at law or in equity.

 

Section 8.10 Publicity. The Parties shall jointly issue a press release disclosing the material terms of the transactions contemplated by this
Agreement and the other Definitive Documents in form and substance reasonably satisfactory to each Party by 9:30 a.m. New York time on
the Business Day immediately following the date hereof. The Company shall file a Current Report on Form 8-K with the SEC within the time
required by the Exchange Act in form and substance reasonably satisfactory to Purchasers. The Company shall consult with the Purchasers
in issuing any other press releases with respect to the transactions contemplated hereby, and the Company shall not issue any such press
release or otherwise make any such public statement without the prior consent of the Purchasers, except if such disclosure is required
by Law, in which case the Company shall promptly provide Purchasers with prior notice of such public statement or communication. Notwithstanding
the foregoing, the Company shall not publicly disclose the name of Purchasers, or include the name of Purchasers in any filing with the
SEC or any Governmental Entity, without the prior written consent of Purchasers, except to the extent such disclosure is required by Law
or NYSE American regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure.

 

    	 	27	 

     

    

 

Section 8.11   No Recourse. Notwithstanding anything that may be expressed or implied in this Agreement, each Party covenants, agrees and acknowledges
that no recourse under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against
any Party’s Affiliates, Related Parties or Representatives or any of such Party’s Affiliates’ or Related Parties’
Affiliates or Representatives in each case other than the Parties to this Agreement and each of their respective successors and permitted
assigns under this Agreement, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any
applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise
be incurred by any of the Related Parties or Representatives, as such, for any obligation or liability of any Party under this Agreement
or any documents or instruments delivered in connection herewith for any claim based on, in respect of or by reason of such obligations
or liabilities or their creation; provided, however, that nothing in this Section 8.11 shall relieve or otherwise
limit the liability of any Party hereto or any of their respective successors or permitted assigns for any breach or violation of its
obligations under this Agreement or such other documents or instruments. For the avoidance of doubt, none of the Parties will have any
recourse, be entitled to commence any proceeding or make any claim under this Agreement or in connection with the transactions contemplated
hereby except against any of the Parties or their respective successors and permitted assigns, as applicable.

 

Section 8.12   Further Assurances. From and after the Closing Date, upon the reasonable request of any Party hereto, any other Party hereto shall
execute, acknowledge, file and/or deliver all such additional instruments, agreements and other documents, and shall do (or cause to be
done) all such additional acts and things, that are necessary, proper, advisable or desirable to carry out, consummate and make effective
any of the transactions contemplated by this Agreement.

 

Section 8.13  Survival. All covenants and other agreements contained in this Agreement which by their terms are to be performed following the
Closing shall survive the Closing until fully performed. The representations and warranties made in this Agreement shall survive as follows:
(a) the representations and warranties set forth in Section 3.1 (Organization and Qualification), Section 3.2 (Authorization;
Enforcement Validity), Section 3.3 (Issuance of Securities), Section 3.13 (Transactions with Affiliates),
Section 3.14 (Capitalization) and Section 3.36 (Disclosure) (collectively, the “Fundamental Representations”)
shall survive indefinitely, (b) the representations and warranties in Section 3.19, (Employee Relations), Section 3.23
(Tax Status) and Section 3.29 (ERISA Compliance) shall survive until the expiration of the statute of limitations
plus sixty (60) days and (c) all other representations and warranties shall survive until the twelve (12)-month anniversary of the Closing.

 

Section 8.14  Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser hereunder are several and not
joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations
of any other Purchaser. The decision of each Purchaser to purchase Purchased Common Stock has been made by such Purchaser independently
of any other Purchaser. Nothing contained herein, and no action taken by any Purchaser pursuant hereto, shall be deemed to constitute
the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated hereby. Each Purchaser
acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its investment hereunder and that
no Purchaser will be acting as agent of such Purchaser in connection with monitoring its investment in the Purchased Common Stock or enforcing
its rights hereunder. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation,
the rights arising out of this Agreement or any other agreement, and it shall not be necessary for any other Purchaser to be joined as
an additional party in any proceeding for such purpose.

 

[Remainder of Page Intentionally Left Blank]

 

 

    	 	28	 

     

    

 

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

 

	 	Armata Pharmaceuticals, Inc. 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

 

    [Signature Page to Securities Purchase Agreement]

     

    

 

	 	INNOVIVA STRATEGIC OPPORTUNITIES LLC
	 	 	 
	 	By: 	Innoviva, Inc. (its manager)
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

	 	cystic fibrosis foundation
	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 

 

    [Signature Page to Securities Purchase Agreement]

     

    

 

Exhibit A

Voting Agreement

(See attached.)

 

     

     

    

 

 

Exhibit B

Registration Rights Agreement

(See attached.)Exhibit 10.2

 

ARMATA PHARMACEUTICALS, INC.

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement
(this “Agreement”) is made and entered into as of October 28, 2021, by and between Armata Pharmaceuticals, Inc., a
Washington corporation (the “Company”), Innoviva Strategic Opportunities LLC (“Innoviva”) and Cystic
Fibrosis Foundation, a Delaware corporation (“CFF” and together with Innoviva, each a “Holder” or
collectively, the “Holders”). The Company and the Holders are referred to each as a “Party” and
collectively herein as the “Parties.”

 

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

 

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

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such
Person as of the date on which, or at any time during the period for which, the determination of affiliation is being made; provided,
that for purposes of this Agreement, a Holder shall not be deemed an Affiliate of the Company or any of its Subsidiaries. For purposes
of this definition, the term “control” (including the correlative meanings of the terms “controlled by” and “under
common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct
or cause the direction of the management policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 

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

 

“Approved Transferee”
means any Affiliate of a Holder who acquires Registrable Securities from the Holder.

 

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

 

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

 

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

 

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

 

“Company Common Stock”
means the shares of common stock, par value $0.01 per share, of the Company.

 

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

 

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

 

“FINRA”
means the Financial Industry Regulatory Authority.

 

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

 

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

 

“Holder(s)”
has the meaning set forth in the preamble.

 

    1

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    2

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

“Securities Purchase
Agreement” means that certain Securities Purchase Agreement, dated October 28, 2021, by and among the Company and the Holders.

 

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

 

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

 

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

 

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

 

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

 

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

 

    3

     

    

 

2.                  
Registration.

 

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

 

    4

     

    

 

(b)               
Suspension Period. Notwithstanding any other provision of this Section 2, the Company shall have the right, but not
the obligation, to defer the filing of (but not the preparation of), or suspend the use by the Holders of, any Registration Statement
for a period of up to sixty (60) days (unless a longer period is consented to by the Holders) (i) upon issuance by the Commission of a
stop order suspending the effectiveness of such Registration Statement with respect to Registrable Securities or the initiation of proceedings
with respect to such Registration Statement under Section 9(d) or 8(e) of the Securities Act; (ii) if the Company believes in good faith
that any such registration or offering would require the Company (after consultation with external legal counsel), under applicable securities
laws and other laws, to make disclosure of material nonpublic information that would not otherwise be required to be disclosed at that
time and the Company believes in good faith that such disclosures at that time would not be in the Company’s best interests; provided
that this exception (ii) shall continue to apply only during the time that such material nonpublic information has not been disclosed
and remains material; (iii) if the Company elects at such time to offer Company Common Stock or other equity securities of the Company
to (x) fund a merger, third-party tender offer or other business combination, acquisition of assets or similar transaction or (y) meet
rating agency and other capital funding requirements; or (iv) if the Company is pursuing a primary underwritten offering of Company Common
Stock pursuant to a registration statement (any such period, a “Suspension Period”); provided, that in no event
shall the Company declare a Suspension Period more than three times in any twelve (12) month period. The Company shall (i) give prompt
written notice to the Holders of its declaration of a Suspension Period and of the expiration or termination of the relevant Suspension
Period and (ii) promptly resume the process of filing or requesting for effectiveness, or update the suspended Registration Statement,
as the case may be, as may be necessary to permit the Holders to offer and sell its Registrable Securities in accordance with applicable
law.

 

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

 

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

 

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

 

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

 

    5

     

    

 

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

 

(c)                
The Company will comply in all material respects with the provisions of the Securities Act and the Exchange Act (including Regulation
M under the Exchange Act) with respect to each Registration Statement and the disposition of all Registrable Securities covered by each
Registration Statement.

 

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

 

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

 

    6

     

    

 

(f)                 
During the Shelf Period, the Company will furnish to the Holders and their counsel upon their request, without charge, at least
one conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by the Holders or
their counsel (including those incorporated by reference) promptly after the filing of such documents with the Commission.

 

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

 

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

 

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

 

(j)                 
The Company will use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission,
the Trading Market and FINRA.

 

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

 

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

 

    7

     

    

 

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

 

5.                  
Indemnification.

 

(a)                
The Company shall indemnify and hold harmless each Holder, its partners, stockholders, equity holders, general partners, managers,
members, and Affiliates and each of their respective officers and directors and any Person who controls such Holder (within the meaning
of the Securities Act or the Exchange Act) and any employee or Representative thereof (collectively, each, an “Company Indemnified
Person” and collectively, “Company Indemnified Persons”), to the fullest extent permitted by law, from and
against any and all losses, claims, damages, liabilities, joint or several, costs (including reasonable costs of preparation and reasonable
attorneys’, accountants’ and experts’ fees) and expenses, judgments, fines, penalties, interest, settlements or other
amounts arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal, administrative or investigative,
in which any Company Indemnified Person may be involved, or is threatened to be involved, as a party or otherwise, under the Securities
Act, the Exchange Act or otherwise (collectively, “Losses”), as incurred, arising out of, based upon, resulting from
or relating to (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement under which any Registrable
Securities were registered, Prospectus (including in any preliminary prospectus (if used prior to the effective date of such Registration
Statement)), or in any summary or final prospectus or in any amendment or supplement thereto or in any documents incorporated or deemed
incorporated by reference in any of the foregoing or (ii) any omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements made therein (in the case of the Prospectus, in light of the circumstances under
which they were made) not misleading, or (iii) any violation or alleged violation by the Company or any of its Subsidiaries of the Securities
Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any
federal, state, foreign or common law rule or regulation in connection with such Registration Statement, disclosure document or related
document or report or any offering covered by such Registration Statement, and the Company shall reimburse such Company Indemnified Person
for any reasonable legal or other expenses reasonably incurred by it in connection with investigating or defending any such Loss, claim,
damage, liability, demand, action, suit or proceeding; provided, however, that the Company shall not be liable to any Company Indemnified
Person to the extent that any such Losses arise out of, are based upon or results from an untrue or alleged untrue statement or omission
or alleged omission made in such Registration Statement, such preliminary, summary or final prospectus or such amendment or supplement,
or other disclosure document, in reliance upon and in conformity with written information furnished to the Company by or on behalf of
such Company Indemnified Person specifically for use therein.

 

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

 

    8

     

    

 

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

 

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

 

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

 

    9

     

    

 

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

 

7.                  
Miscellaneous.

 

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

 

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

 

(c)                
Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly given (a) upon delivery,
if served by personal delivery upon the Person for whom it is intended, (b) on the third Business Day after the date mailed if delivered
by registered or certified mail, return receipt requested, postage prepaid, (c) on the following Business Day if delivered by a nationally-recognized,
overnight courier or (d) when delivered or, if sent after the Close of Business, on the following Business Day if sent by email with electronic
confirmation, in each case, to the address set forth on the signature page of this Agreement or to such other address as may be designated
in writing, in the same manner, by such Person.

 

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

 

(e)                
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective
heirs, executors, administrators, successors, legal representatives, and permitted assigns. The holder may assign its rights under this
Agreement to the Approved Transferees or any third party who acquires all or a portion of the Registrable Securities.

 

    10

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    11

     

    

 

(m)              
No Recourse. Notwithstanding anything that may be expressed or implied in this Agreement, each Party covenants, agrees and
acknowledges that no recourse under this Agreement or any documents or instruments delivered in connection with this Agreement shall be
had against any of the Company’s or any Holder’s former, current or future direct or indirect equity holders, controlling
persons, stockholders, directors, officers, employees, agents, Affiliates, members, financing sources, managers, general or limited partners
or assignees (each, a “Related Person” and collectively, the “Related Persons”), in each case other than the Company,
any Holder or any of their respective permitted assigns under this Agreement, whether by the enforcement of any assessment or by any legal
or equitable proceeding, or by virtue of any applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever
shall attach to, be imposed on or otherwise be incurred by any of the Related Persons, as such, for any obligation or liability of the
Company or any Holder under this Agreement or any documents or instruments delivered in connection herewith for any claim based on, in
respect of or by reason of such obligations or liabilities or their creation; provided, however, nothing in this Section
7(m) shall relieve or otherwise limit the liability of the Company or any Holder, as such, for any breach or violation of its obligations
under this Agreement or such agreements, documents or instruments.

 

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

 

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

 

[Signature Pages Follow]

  

 

 

    12

     

    

 

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

 

	 	ARMATA PHARMACEUTICALS, INC.
	 	 	 
	 	 	 
	 	By:	                              
	 	Name:	 
	 	Title:	 

 

 

 

 

    [Signature Page to Registration Rights Agreement]

     

    

 

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

 

	 	INNOVIVA STRATEGIC OPPORTUNITIES LLC
	 	By: Innoviva, Inc. (its managing member)
	 	 	 
	 	 	 
	 	By:	                              
	 	Name:	 
	 	Title:	 

 

 

 

	 	CYSTIC FIBROSIS FOUNDATION
	 	 	 
	 	 	 
	 	By:	                              
	 	Name:	 
	 	Title:	 

 

 

 

 

    [Signature Page to Registration Rights Agreement]

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