Document:

Exhibit 10.1

 

EXECUTION VERSION

 

 

Development,
option and STOCK PURCHASE AGREEMENT

 

BY AND AMONG

 

alexion
Pharmaceuticals, INC.,

 

caelum
biosciences, Inc.,

 

The
Sellers, 

 

And
fortress biotech, inc., as the representative

 

DATED AS OF January
30, 2019

 

  

     

     

    

  

	Article 1. DEFINITIONS	2
	 	 
	Article 2. DEVELOPMENT PLAN AND OPTION TO PURCHASE	19
	 	 	 
	Section 2.1	Company Development and Efforts; Joint Steering Committee	19
	 	 	 
	Section 2.2	Development Funding	20
	 	 	 
	Section 2.3	Option to Purchase	20
	 	 	 
	Article 3. STOCK PURCHASE INVESTMENT	21
	 	 	 
	Section 3.1	Sale and Purchase of Investment Shares	21
	 	 	 
	Section 3.2	Investment Closing	22
	 	 	 
	Section 3.3	Investment Closing Deliverables	22
	 	 	 
	Article 4. THE ACQUISITION	22
	 	 	 
	Section 4.1	Sale and Purchase of Acquisition Shares	22
	 	 	 
	Section 4.2	Exercise and Conversion of Company Securities	23
	 	 	 
	Section 4.3	Acquisition Closing Purchase Price	23
	 	 	 
	Section 4.4	Acquisition Closing	23
	 	 	 
	Section 4.5	Escrow Amount	24
	 	 	 
	Section 4.6	Earn-Out Payments	24
	 	 	 
	Section 4.7	Withholding; Tax Documentation	27
	 	 	 
	Article 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY	27
	 	 	 
	Section 5.1	Organization of the Company; Due Authorization.	27
	 	 	 
	Section 5.2	No Conflicts, Consents or Approvals.	28
	 	 	 
	Section 5.3	Capital Stock of the Company.	28
	 	 	 
	Section 5.4	Financial Statements; Other Liabilities.	30
	 	 	 
	Section 5.5	Agreements.	31
	 	 	 
	Section 5.6	Insurance.	33
	 	 	 
	Section 5.7	Real Property; Title, Condition and Sufficiency of Assets.	34
	 	 	 
	Section 5.8	Taxes.	34
	 	 	 
	Section 5.9	Litigation and Other Proceedings; Orders.	37
	 	 	 
	Section 5.10	No Material Adverse Effect.	37

 

    	 	i	 

     

    

  

	Section 5.11	Licenses and Permits.	38
	 	 	 
	Section 5.12	Environmental Matters.	38
	 	 	 
	Section 5.13	Governmental Consents and Approvals.	38
	 	 	 
	Section 5.14	Intellectual Property.	38
	 	 	 
	Section 5.15	Employee Plans and Personnel Matters.	41
	 	 	 
	Section 5.16	Compliance with Legal Requirements.	44
	 	 	 
	Section 5.17	Regulatory and GxP Compliance.	44
	 	 	 
	Section 5.18	Brokers.	45
	 	 	 
	Section 5.19	No Restrictions on the Transactions.	45
	 	 	 
	Section 5.20	Investigation.	45
	 	 	 
	Article 6. REPRESENTATIONS AND WARRANTIES OF THE BUYER	46
	 	 	 
	Section 6.1	Organization of the Buyer; Due Authorization.	46
	 	 	 
	Section 6.2	No Conflict.	47
	 	 	 
	Section 6.3	Governmental Consents.	47
	 	 	 
	Section 6.4	Financing of the Transactions.	47
	 	 	 
	Section 6.5	Litigation and Other Proceedings; Orders.	47
	 	 	 
	Section 6.6	Brokers.	47
	 	 	 
	Section 6.7	Investigation.	47
	 	 	 
	Article 7. REPRESENTATIONS AND WARRANTIES OF THE SELLERS	48
	 	 	 
	Section 7.1	Organization of Seller.	48
	 	 	 
	Section 7.2	No Conflict.	48
	 	 	 
	Section 7.3	Governmental Consents.	49
	 	 	 
	Section 7.4	Title to Stock.	49
	 	 	 
	Section 7.5	Litigation and Other Proceedings; Orders.	49
	 	 	 
	Section 7.6	Brokers.	49
	 	 	 
	Article 8. ADDITIONAL AGREEMENTS	49
	 	 	 
	Section 8.1	Completion of the Acquisition as a Merger.	49
	 	 	 
	Section 8.2	Completion of the Acquisition as an Asset Sale.	50

 

    	 	ii	 

     

    

  

	Article 9. COVENANTS OF THE PARTIES	50
	 	 	 
	Section 9.1	Conduct of Business of the Company.	50
	 	 	 
	Section 9.2	Access to Information Prior to the Acquisition Closing.	52
	 	 	 
	Section 9.3	No Solicitation.	53
	 	 	 
	Section 9.4	Further Action.	53
	 	 	 
	Section 9.5	Regulatory and Other Authorizations.	54
	 	 	 
	Section 9.6	Notifications.	55
	 	 	 
	Section 9.7	Limitation on Purchases and Sales of Common Shares.	55
	 	 	 
	Section 9.8	Directors’ and Officers’ Indemnification and Insurance.	56
	 	 	 
	Section 9.9	Anti-Dilution.	58
	 	 	 
	Section 9.10	Tax Matters.	58
	 	 	 
	Section 9.11	Payoff Letters.	60
	 	 	 
	Section 9.12	Additional Investor Rights.	60
	 	 	 
	Section 9.13	Patent Application Prosecutions.	60
	 	 	 
	Section 9.14	Key License Agreement.	61
	 	 	 
	Section 9.15	Information Rights.	61
	 	 	 
	Article 10. CONDITIONS PRECEDENT, WAIVER, AND TERMINATION PROVISIONS  OF THE ACQUISITION	61
	 	 	 
	Section 10.1	Conditions Precedent to Performance of the Parties.	61
	 	 	 
	Section 10.2	Conditions Precedent to Performance of the Sellers and the Company.	61
	 	 	 
	Section 10.3	Conditions Precedent to Performance of Buyer.	62
	 	 	 
	Section 10.4	Waiver; Determination of Satisfaction of Conditions.	63
	 	 	 
	Section 10.5	Termination of the Acquisition.	63
	 	 	 
	Article 11. INDEMNIFICATION	64
	 	 	 
	Section 11.1	Indemnification of Buyer Indemnified Parties.	64
	 	 	 
	Section 11.2	Indemnification of Seller Indemnified Parties.	65
	 	 	 
	Section 11.3	Indemnification Procedures.	65
	 	 	 
	Section 11.4	Limitations on Indemnification.	67

 

    	 	iii	 

     

    

  

	Section 11.5	Survival of Representations, Warranties and Covenants.	69
	 	 	 
	Section 11.6	Effect of Investigation.	69
	 	 	 
	Section 11.7	Tax Treatment of Indemnification Payments.	69
	 	 	 
	Article 12. MISCELLANEOUS	69
	 	 	 
	Section 12.1	Entire Agreement.	69
	 	 	 
	Section 12.2	Transaction Costs.	69
	 	 	 
	Section 12.3	Modifications.	70
	 	 	 
	Section 12.4	Notices.	70
	 	 	 
	Section 12.5	Public Announcements.	71
	 	 	 
	Section 12.6	Severability.	71
	 	 	 
	Section 12.7	Assignment.	71
	 	 	 
	Section 12.8	Confidentiality Agreement.	71
	 	 	 
	Section 12.9	Governing Law.	72
	 	 	 
	Section 12.10	Specific Performance.	72
	 	 	 
	Section 12.11	Submission to Jurisdiction.	72
	 	 	 
	Section 12.12	Waiver of Jury Trial.	73
	 	 	 
	Section 12.13	Waiver	73
	 	 	 
	Section 12.14	Counterparts; Facsimile Signature.	73
	 	 	 
	Section 12.15	Rights Cumulative.	73
	 	 	 
	Section 12.16	Interpretation.	74
	 	 	 
	Section 12.17	Representative.	74

 

    	 	iv	 

     

    

  

	EXHIBIT A SECURITY HOLDERS	 
	 	 
	EXHIBIT STOCKHOLDERS AGREEMENT	 
	 	 
	EXHIBIT C WAIVER AND TERMINATION AGREEMENT	 
	 	 
	EXHIBIT D FORTRESS RESTRICTIVE COVENANT AGREEMENT	 
	 	 
	EXHIBIT E BUDGET 	 
	 	 
	EXHIBIT F DEVELOPMENT PLAN	 
	 	 
	EXHIBIT G OPINION OF ALSTON & BIRD LLP	 
	 	 
	EXHIBIT H ACQUISITION SHARES	 
	 	 
	EXHIBIT I FORM OF ESCROW AGREEMENT	 
	 	 
	EXHIBIT J FORM OF ADOPTION AGREEMENT	 
	 	 
	EXHIBIT K FORM OF RELEASE	 

 

    	 	v	 

     

    

 

development,
option and STOCK PURCHASE AGREEMENT

 

This development,
option and STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of January 30, 2019,
by and among Alexion Pharmaceuticals, Inc., a Delaware Corporation (the “Buyer”), Caelum Biosciences, Inc.,
a Delaware corporation (the “Company”), the holders of the securities of the Company listed on Exhibit A
and signatories hereto (collectively, the “Sellers”), and Fortress Biotech, Inc. (“Fortress”),
in its capacity as the Representative.

 

RECITALS

 

A.           The
Buyer desires to purchase from the Company and the Company desires to issue to the Buyer Class B Preferred Shares representing
19.9% of the Fully Diluted Capitalization for $30.0 million and on the terms and subject to the conditions of this Agreement (the
 “Stock Purchase Investment”).

 

B.           The
Buyer and the Company desire to collaborate to develop the Company’s lead asset, CAEL-101 (mAb 11-1F4), a novel antibody
for the treatment of patients with amyloid light chain amyloidosis (the “Product”).

 

C.           The
Company desires and Buyer is willing to provide funding to the Company in an amount up to $30.0 million (the “Development
Funding”) for the purpose of developing the Product, as consideration for which the Buyer desires and the Sellers are
willing to provide the Buyer the Purchase Option (as defined herein) to consummate the Acquisition (as defined herein) on the terms
and subject to the conditions of this Agreement (the Acquisition together with the Development Funding, the Stock Purchase Investment
and the other transactions contemplated by this Agreement and the Ancillary Agreements (as defined herein), the “Transactions”).

 

D.           Concurrently
with the execution and delivery of this Agreement, the Buyer, the Company and the Sellers have entered into that certain stockholders
agreement, effective as of the Signing Date (as amended from time to time, the “Stockholders Agreement”) and
attached as Exhibit B hereto, providing for certain agreements between Buyer, the Company and the Sellers.

 

E.           Concurrently
with the execution and delivery of this Agreement, the Buyer, the Company and Fortress have entered into that certain waiver and
termination agreement, effective as of the Signing Date (as amended from time to time, the “Waiver Agreement”)
and attached as Exhibit C hereto, pursuant to which Fortress has agreed to terminate that certain Founders Agreement by
and between the Company and Fortress dated January 1, 2017 (the “Founders Agreement”) and that certain Management
Services Agreement by and between the Company and Fortress dated January 1, 2017 (the “MSA”), and to irrevocably
waive certain payments otherwise due to it under the Founders Agreement and the MSA and any and all dividends, payable in cash
or equity, under the terms of the Class A Preferred Shares of the Company.

 

F.           Concurrently
with the execution and delivery of this Agreement, the Buyer and Fortress have entered into a restrictive covenant agreement, effective
as of the Signing Date (as amended from time to time, the “Fortress Restrictive Covenant Agreement”), attached
as Exhibit D hereto.

 

    	 	1	 

     

    

 

G.           The
parties hereto desire to make certain representations, warranties, covenants and agreements in connection with the Transactions
and also to prescribe various conditions to the Development Funding, the Stock Purchase Investment and the Acquisition.

 

NOW, THEREFORE, in
consideration of the foregoing and the respective representations and warranties, covenants and agreements set forth in this Agreement,
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

 

Article
1. 

DEFINITIONS 

 

For purposes of this Agreement, including
the recitals, the following terms have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):

 

	“Accelerated BLA Approval”	 	The accelerated approval by the FDA of a biologic license application for the Product.
	 	 	 
	“Acquisition”	 	Defined in Section 4.1.
	 	 	 
	“Acquisition Closing”	 	Defined in Section 4.4.
	 	 	 
	“Acquisition Closing Purchase Price”	 	An amount equal to (i) the Baseline Purchase Price minus (ii) the Escrow Amount (iii) minus the Miscellaneous Transaction Expenses.
	 	 	 
	“Acquisition Shares”	 	Defined in Section 4.1.
	 	 	 
	“Adoption Agreement”	 	Defined in Section 9.7(b)(1).
	 	 	 
	“Affiliate”	 	With respect to any specified Person, any other Person that controls, is controlled by or is under common control with such Person (it being understood that a Person will be deemed to “control” another Person, for purposes of this definition, if such Person directly or indirectly (i) has the power to direct or cause the direction of the management and policies of such other Person, whether through the ownership of voting securities of such other Person, through contract or otherwise or (ii) owns more than 50% of the voting securities of such other Person entitled to vote in the election of directors); provided that, for all purposes of this Agreement and the Ancillary Agreements, in no event shall the Company be deemed an Affiliate of the Buyer at any time prior to the Acquisition Closing.
	 	 	 
	“Agreement”	 	Defined in the Preamble.

 

    	 	2	 

     

    

 

	“Ancillary Agreements”	 	The Stockholders Agreement, Waiver Agreement, Fortress Restrictive Covenant Agreement, the Escrow Agreement (solely with respect to the Acquisition Closing), and any other agreement, certificate, instrument or document contemplated hereby and thereby, including each exhibit hereto and thereto.
	 	 	 
	“Applicable Closing”	 	Defined in Section 5.8.
	 	 	 
	“Baseline Purchase Price”	 	An amount equal to (i) $150,000,000 plus (ii) only in the event that the Company has received Accelerated BLA Approval prior to Acquisition Closing, the Supplemental Baseline Purchase Price.
	 	 	 
	“Bankruptcy Code”	 	Defined in Section 5.14(h).
	 	 	 
	“Broad Patient Population”	 	An FDA-approved indication that does not limit usage to the Mayo Stage 3b (a generally accepted patient staging criteria).
	 	 	 
	“Budget”	 	Defined in Section 2.1(a).
	 	 	 
	“Business Day”	 	Any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to be closed in the State of Delaware.
	 	 	 
	“Buyer”	 	Defined in the Preamble.
	 	 	 
	“Buyer Indemnified Party”	 	Defined in Section 11.1.
	 	 	 
	“Cap”	 	Defined in Section 11.4(a).
	 	 	 
	“Change of Control”	 	The occurrence of any of the following events: (i) an acquisition of the relevant Person by another Person by means of any transaction or series of related transactions (including any reorganization, merger or consolidation but excluding any merger effected exclusively for the purpose of changing the domicile of the relevant Person), or (ii) a sale of all or substantially all of the assets of such Person, so long as in either case such Person’s stockholders of record immediately prior to such transaction will, immediately after such transaction, hold less than fifty percent (50%) of the voting power of the surviving or acquiring Person.
	 	 	 
	“Class A Preferred Shares”	 	Any shares of Class A Preferred Stock of the Company with a par value of $0.0001 per share, whether issued or not.
	 	 	 
	“Class B Preferred Shares”	 	Any shares of Class B Preferred Stock of the Company with a par value of $0.0001 per share, whether issued or not.

 

    	 	3	 

     

    

 

	“Clinical Trial”	 	A clinical study of a pharmaceutical product conducted on human subjects.
	 	 	 
	“COBRA”	 	The requirements of Part 6 of Subtitle B of Title I of ERISA and Section 4980B of the Code and any similar state law.
	 	 	 
	“Code”	 	The United States Internal Revenue Code of 1986, as amended.
	 	 	 
	“Columbia”	 	The Trustees of Columbia University in the City of New York.
	 	 	 
	“Columbia SPA”	 	Stock Purchase Agreement between Caelum Biosciences, Inc. and the Trustees of Columbia University in the City of New York dated December 30, 2016.
	 	 	 
	“Commercially Reasonable Efforts”	 	The use of such efforts and resources typically used by biopharmaceutical companies similar in size and scope to the Company for the development and commercialization of similar products to the Product at similar development stages.
	 	 	 
	“Common Shares”	 	Any shares of Common Stock of the Company with a par value of $0.0001 per share, whether issued or not.
	 	 	 
	“Company”	 	Defined in the Preamble.
	 	 	 
	“Company Assets”	 	All property, assets, rights, privileges, powers, franchises owned by, and all and every other interest of, the Company, including all Company Intellectual Property.
	 	 	 
	“Company Board”	 	The Board of Directors of the Company.
	 	 	 
	“Company Contract”	 	Any Contract to which the Company is a party or by which the Company (or any property or asset thereof) is bound.
	 	 	 
	“Company Employees”	 	The employees, officers, independent contractors, or directors of the Company.
	 	 	 
	“Company Employee Plan”	 	Any Company Plan which covers any current or former Company Employees.
	 	 	 
	“Company Intellectual Property”	 	All Owned Intellectual Property and Licensed Intellectual Property.
	 	 	 
	“Company Plan”	 	Any Plan or portion thereof (including any Liabilities thereof), covering Company Employees which is sponsored or maintained by the Company or Fortress, or to which the Company or Fortress contributes or is required to contribute, or for which the Company or Fortress has any Liability, including the Company’s 2017 Stock Incentive Plan.

 

    	 	4	 

     

    

 

	“Company’s Knowledge” or “Knowledge of the Company” or similar words	 	The actual knowledge of the Persons listed in Schedule 1.1 after due and reasonable investigation and inquiry; provided that to the extent that any such Person’s employment with the Company is terminated prior to the Acquisition Closing, any replacement employee thereof shall be deemed to be listed on Schedule 1.1 for purposes of the applicable representations made at the Acquisition Closing.
	 	 	 
	“Company Restricted Share”	 	Defined in Section 4.2.
	 	 	 
	“Company Securities”	 	Defined in Section 5.3(c).
	 	 	 
	“Company Shares”	 	Defined in Section 4.1.
	 	 	 
	“Confidential Intellectual Property”	 	All Know How and any other confidential, proprietary, non-public or sensitive Intellectual Property constituting Company Intellectual Property.
	 	 	 
	“Confidentiality Agreement”	 	Defined in Section 12.1.
	 	 	 
	“Contract”	 	Any oral or written agreement, arrangement, instrument, contract, undertaking, mortgage, note, indenture, lease, license or other understanding or obligation, including amendments thereto.
	 	 	 
	“Damages”	 	Any and all losses, damages, Liabilities, deficiencies, judgments, interest, awards, penalties, fines, costs or expenses of whatever kind, including reasonable attorneys’ fees and disbursements, the cost of defending any claim, the cost of enforcing any right to indemnification hereunder and the cost of pursuing any insurance claim.
	 	 	 
	“DEA”	 	U.S. Drug Enforcement Agency or any successor agency thereto.
	 	 	 
	“Development Funding”	 	Defined in the Recitals.
	 	 	 
	“Development Plan”	 	Defined in Section 2.1(b).
	 	 	 
	“Direct Claim”	 	Defined in Section 11.3(d).
	 	 	 
	“Disclosure Schedule”	 	Defined in Article 5.
	 	 	 
	“Disputed Amounts”	 	Defined in Section 4.6(e).
	 	 	 
	“Earn-Out Payment”	 	Defined in Section 4.6(a).

 

    	 	5	 

     

    

 

	“Encumbrance”	 	Any mortgage, deed of trust, lien (statutory or other), pledge, charge, security interest, title retention device (including the interest of a seller or lessor under any conditional sale agreement or capital lease, or any financing lease having substantially the same economic effect as any of the foregoing), collateral assignment, adverse claim, priority payment obligation, restriction or other encumbrance of any kind in respect of such asset, whether or not filed, recorded or perfected under applicable Legal Requirements (including any restriction on the voting of any security, any restriction on the transfer of any security or other asset, any restriction on the receipt of any income derived from any asset, any restriction on the use of any asset and any restriction on the possession, exercise or transfer of any other attribute of ownership of any asset, but other than restrictions under applicable securities laws).
	 	 	 
	“Environmental Claim”	 	Defined in Section 5.12(a).
	 	 	 
	“Environmental Law”	 	Any Legal Requirement relating to (i) the protection of the environment or natural resources (including air, water vapor, surface water, soil, sediments, groundwater, drinking water supply, wastewater treatment, surface or subsurface land); or (ii) the exposure to, or the use, storage, recycling, treatment, generation, transportation, processing, handling, labeling, recycling, release or disposal of, Hazardous Substances.
	 	 	 
	“Environmental Permits”	 	Any permit, approval, license or other authorization required by a Governmental Authority under or issued by a Governmental Authority pursuant to any applicable Environmental Law.
	 	 	 
	“ERISA”	 	The Employee Retirement Income Security Act of 1974, as amended, and all laws promulgated pursuant thereto or in connection therewith.
	 	 	 
	“Escrow Agent”	 	As defined in Section 4.5(a).
	 	 	 
	“Escrow Agreement”	 	As defined in Section 4.5(a).
	 	 	 
	“Escrow Amount”	 	An amount equal to ten percent (10%) of the Baseline Purchase Price, to be deposited with the Escrow Agent pursuant to the Escrow Agreement.
	 	 	 
	“Escrow Fund Release Amount”	 	Defined in Section 4.5(c).
	 	 	 
	“Escrow Funds”	 	The funds from time to time being held by the Escrow Agent pursuant to the terms of the Escrow Agreement.

 

    	 	6	 

     

    

 

	“FDA”	 	United States Food and Drug Administration, or any successor agency thereto.
	 	 	 
	“FDCA”	 	Defined in Section 5.11.
	 	 	 
	“Financial Statements”	 	Defined in Section 5.4(a).
	 	 	 
	“Fortress”	 	Defined in the Preamble.
	 	 	 
	“Fortress Restrictive Covenant Agreement”	 	Defined in the Recitals.
	 	 	 
	“Founders Agreement”	 	Defined in the Recitals.
	 	 	 
	
        “Fully Diluted Capitalization”

         
	 	The aggregate number of all shares of the Company’s capital stock (on an as-converted basis) issued and outstanding, assuming exercise, conversion, acceleration or exchange of all options (vested or unvested), RSUs (vested or unvested), Company Restricted Shares (vested or unvested), warrants and other convertible or exchangeable securities (including convertible notes, Class B Preferred Shares or any other shares of convertible preferred stock and any Company Restricted Shares), plus all shares of the Company’s capital stock, or derivatives thereof, authorized for issuance, but as yet unissued, under the Company’s 2017 Stock Incentive Plan as of the Signing Date.
	 	 	 
	“Fundamental Claim”	 	Defined in Section 11.4(c).
	 	 	 
	“Fundamental Representations”	 	The representation or warranties contained in Section 5.1 (Organization of the Company; Due Authorization), Section 5.3 (Capital Stock of the Company), Section 5.8 (Taxes), Section 5.14 (Intellectual Property), Section 5.17 (Regulatory Compliance), Section 7.1 (Organization of Seller), Section 7.4 (Title to Stock), and Section 7.6 (Brokers).
	 	 	 
	“Funding Payment”	 	Defined in Section 2.2(a).
	 	 	 
	“GAAP”	 	United States generally accepted accounting principles in effect from time to time.
	 	 	 
	“Governmental Authority”	 	Any foreign, federal, national, state, local, cantonal, municipal, international or multinational government, governmental, regulatory or administrative authority, agency or commission, any court, tribunal, or judicial or arbitral body of competent jurisdiction or any quasi-governmental or private body exercising any regulatory, taxing, importing or other governmental or quasi-governmental authority.

 

    	 	7	 

     

    

 

	“Governmental Permits”	 	Any permit, approval, registration, certification, clearance, license or other authorization required by a Governmental Authority under or issued by a Governmental Authority pursuant to any applicable Legal Requirement, with the exception of Environmental Laws.
	 	 	 
	“Hazardous Substance”	 	Any waste, material, chemical or substance in any form that is regulated, controlled or defined as hazardous, toxic, or a pollutant under any applicable Environmental Law, including all materials regulated under any applicable Environmental Law as capable of causing harm or injury to human health or the environment, including oils, petroleum, polychlorinated biphenyls, petroleum products and constituents, and asbestos.
	 	 	 
	“Healthcare Regulatory Authority”	 	The FDA, the DEA or any other Governmental Authority that is concerned with or regulates the development, approval, labelling, marketing, sale, use, handling and control, safety, efficacy, reliability or manufacturing of drug or biological products or is concerned with or regulates public health care programs.
	 	 	 
	“Healthcare Regulatory Authorizations”	 	All approvals, clearances, authorizations, registrations, certifications, licenses and permits granted by any Healthcare Regulatory Authority, including all investigational new drug applications and new drug applications.
	 	 	 
	“HSR Act”	 	The U.S. Hart – Scott – Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder.
	 	 	 
	“IND”	 	An Investigational New Drug application filed with the FDA pursuant to Part 312 of Title 21 of the U.S. Code of Federal Regulations, including any amendments thereto.
	 	 	 
	“Indebtedness”	 	(i) the principal, accreted value, accrued and unpaid interest, prepayment and redemption premiums or penalties (if any), unpaid fees or expenses and other monetary obligations in respect of (A) indebtedness, whether or not contingent, for borrowed money, (B) obligations evidenced by bonds, debentures, notes or other similar instruments for the payment of which such Person is liable, (C) obligations for the deferred purchase price of property or services, including any earn-out (whether or not contingent), (D) indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even if the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (E) all obligations of such Person to purchase, redeem, retire, defease or otherwise acquire for value any capital stock of such Person or any warrants, rights or options to acquire such capital stock, valued, in the case of redeemable preferred stock, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends, and (F) all loans to such Person by any of its suppliers or licensors, (ii) all obligations or liabilities of such Person (whether or not contingent) under or in connection with letters of credit or bankers’ acceptances or similar items; provided, however, that undrawn amounts shall not be included in this definition of Indebtedness, (iii) any obligations with respect to capital leases, (iv) all obligations of such Person under interest rate, currency swap or other hedging transactions, (v) all obligations under direct or indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, Indebtedness or obligations of others of the kinds referred to in clauses (i) through (iv) above and (vi) all obligations of the type referred to in clauses (i) through (v) of other Persons secured by (or for which the holder of such obligations has an existing right, contingent or otherwise, to be secured by) any Encumbrance on any property or asset of such Person (whether or not such obligation is assumed by the Person or any of its subsidiaries).

 

    	 	8	 

     

    

 

	 	 	 
	“Indemnified Party”	 	Defined in Section 11.3(a).
	 	 	 
	“Indemnified Person”	 	Defined in Section 9.8(a).
	 	 	 
	“Indemnifying Party”	 	Defined in Section 11.3(a).
	 	 	 
	“Indemnifying Person”	 	Defined in Section 9.8(b).
	 	 	 
	“Independent Accountant”	 	Defined in Section 4.6(e).
	 	 	 
	“Initial Delivery”	 	Defined in Section 2.3(c).

 

    	 	9	 

     

    

 

	“Intellectual Property”	 	Any and all rights in, arising out of, or associated with any of the following in any jurisdiction throughout the world: (i) patents, patent applications, patent disclosures and inventions, utility models, utility model applications, petty patents, statutory invention registrations, certificates of invention, designs, industrial designs, design registrations and applications (including any continuations, continuations-in-part, divisionals, provisionals, non-provisionals, reexaminations, restorations, extensions, renewals and reissues) for any of the foregoing, and all other indicia of invention ownership by any Governmental Authority (“Patents”); (ii) copyrights (registered and unregistered), copyright applications, copyrightable subject matter, works of authorship (whether or not copyrightable), design rights, and design right registrations, and any and all renewals of any of the foregoing; (iii) trademarks, service marks, trade dress, business names and trade names, assumed names, symbols, brand names, d/b/a’s, fictitious names, certification marks, logos and product names whether registered, unregistered or existing at common law, including the goodwill associated therewith (and all registrations and applications therefor), and any and all renewals of any of the foregoing; (iv) unregistered industrial design rights; (v) domain names (and all registrations and applications therefor) whether or not Trademarks, all associated web addresses, URLs, websites and web pages, and all content and data thereon or relating thereto, whether or not Copyrights; (vi) Know How, (vii) software, data processing, communications, inventory management, website content, programs, program interfaces, object code, source code, other computer systems and all documentation relating to the foregoing; (viii) all other proprietary information and intellectual property in all forms and media, and all goodwill associated therewith, now known or hereafter recognized in any jurisdiction worldwide; (ix) all rights pertaining to the foregoing, including those arising under international treaties and convention rights; (x) copies and tangible embodiments of all of the foregoing (in whatever form or medium); (xi) all rights and powers to assert, defend and recover title to any of the foregoing; and to assert, defend, sue, and recover damages for any past, present and future infringement, misuse, misappropriation, impairment, unauthorized use or other violation of any rights in or to any of the foregoing; and (xii) all proceeds, income, royalties, damages and payments now or hereafter due and payable under or in respect of all of the foregoing.
	 	 	 
	“Intellectual Property Agreements”	 	Any licenses, sublicenses, consent to use agreements, settlements, co-existence agreements, covenants not to sue, waivers, releases, or any other Contract relating to Intellectual Property to which the Company is party, beneficiary or otherwise bound, including any Contract providing for the license, practice, use, development, modification, design, invention, production, acquisition, purchase, formulation, creation or assignment of any Intellectual Property, including all IP Assignment Agreements.
	 	 	 
	“Investment Closing”	 	Defined in Section 3.2.
	 	 	 
	“Investment Price”	 	Defined in Section 3.1.
	 	 	 
	“Investment Shares”	 	Defined in Section 3.1.
	 	 	 
	“IP Assignment Agreements”	 	Defined in Section 5.14(e).

 

    	 	10	 

     

    

 

	“JSC”	 	Defined in Section 2.1(b).
	 	 	 
	“Key License Agreement”	 	That certain Exclusive License Agreement, dated as of January 1, 2017, by and between The Trustees of Columbia University in the City of New York and the Company, as amended.
	 	 	 
	“Know-How”	 	All trade secrets, confidential or proprietary information, including all inventions (whether patentable or unpatentable and whether or not reduced to practice), know-how, processes, techniques, improvements, discoveries, ideas, developments, product composition data (including pharmacological, non-clinical, pre-clinical and clinical data, analytical and quality control data) and specifications, recipes, packaging specifications, research and development data as well as purchasing and marketing data and procedures, customer lists, Personal Data, databases, technologies, instructions, formulae and information, manufacturing drawings, engineering drawings, manuals, designs, lab journals, notebooks, schematics, blue prints, research and development reports, audit reports, inspection reports, GxP documentation, technical information, and design and engineering specifications, including those related to products under development, including each of the foregoing items as they relate to the development, manufacturing, sale and distribution of the goods produced, distributed, marketed or sold by the applicable Person.
	 	 	 
	“Leased Real Property”	 	Any parcel of real property leased or subleased and any other rights to use or occupy any land, buildings, structures, improvements, fixtures or other interests in real property held by the Company.
	 	 	 
	“Legal Requirement”	 	Any foreign, federal, national, state (including cantonal), local, international, multinational or administrative order, law, common law, ordinance, regulation, statute or treaty or any rule, regulation, standard, judgment, order, writ, injunction, decree, arbitration award, agency requirement, license or permit of any Governmental Authority.
	 	 	 
	“Liabilities”	 	Any and all debts, liabilities and obligations, whether accrued or fixed, direct or indirect, asserted or unasserted, absolute or contingent, known or unknown, liquidated or not, matured or unmatured or determined or determinable, including those arising under any Legal Requirement, Proceeding or any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority and those arising under any Contract.

 

    	 	11	 

     

    

 

	“Licensed Intellectual Property”	 	All Intellectual Property licensed or otherwise made available to the Company by any Person.
	 	 	 
	“Majority Holders”	 	Defined in Section 12.17(b).
	 	 	 
	“Material Adverse Effect”	 	Any event, circumstance, occurrence, state of facts or matters, action, omission, condition, development, change in or result or effect on (each, an “Event”) the Company or any of the Sellers that, individually or in the aggregate, is or could become materially adverse to (a) the assets, liabilities, capitalization, results of operations or the condition (financial or otherwise) of the Company, its business or prospects, taken as a whole or (b) the ability of the Company or any of the Sellers to perform and carry out any of their obligations under this Agreement or any of the Ancillary Agreements, and to consummate on a timely basis the Stock Purchase Investment, the Acquisition or any of the other transactions contemplated by this Agreement or any of the Ancillary Agreements; provided, however, that, in the case of clause (a), the following Events shall not be taken into account in determining the occurrence of a “Material Adverse Effect”: (i) those caused by, arising out of or attributable to the general political or economic environment or affecting the global securities markets generally; (ii)  those that generally affect the industries in which the Company operates (including legal and regulatory changes applicable to the Company after the Signing Date); or (iii) those caused by, arising out of or attributable to acts of terrorism or warfare between two or more countries in which the Company operates (whether or not declared); provided, that any such Event which disproportionately affects the Company relative to other participants in the industries in which the Company operates shall not be excluded from determining the occurrence of a “Material Adverse Effect”.
	 	 	 
	“Material Contract”	 	Defined in Section 5.5(a).
	 	 	 
	“Maximum Premium”	 	Defined in Section 9.8(c).
	 	 	 
	“Medical Product”	 	Defined in Section 5.17(e).
	 	 	 
	“Merger”	 	Defined in Section 8.1.
	 	 	 
	“Miscellaneous Transaction Expenses”	 	
        The aggregate amount of any and all payments paid or
payable to any broker, finder or investment banker in connection with the transactions contemplated by this Agreement and the
Ancillary Agreements (including reasonable attorneys’ fees and disbursements incurred in connection with a dispute over
such matters), except for any such amounts disclosed on Schedule 5.18.

 

    	 	12	 

     

    

 

	“Milestone Event”	 	Defined in Section 4.6(a).
	 	 	 
	“Most Recent Balance Sheet”	 	Defined in Section 5.4(a).
	 	 	 
	“Most Recent Balance Sheet Date”	 	Defined in Section 5.4(a).
	 	 	 
	“MSA”	 	Defined in the Recitals.
	 	 	 
	“Net Sales”	 	For a particular period of time, the sum of (i) net sales reported by the Buyer (or its Affiliates) for sales of the Product to Third Parties, calculated in a manner consistent with the Buyer’s calculations of net sales across its product portfolio generally and as such net sales are reported in externally published audited financial statements for the Product for that period (excluding sales to any sublicensee or Affiliate) (provided that if for any reason the Buyer does not have externally published audited financial statements for the Product, then net sales for any period that would not be covered by an externally published audited financial statement shall be calculated in accordance with GAAP, provided that such amount reflects the gross invoice price at which the Product was sold or otherwise disposed of by Buyer and its Affiliates (excluding sales by any sublicensee) to Third Parties in that period reduced by gross-to-net deductions, the fair-market-value amounts reasonably attributable to other components (other than the Product) of any combination product or bundled product but only if such other components are therapeutically active compounds that are sold separately, and amounts from a prior period which are not collected and are written off by the Buyer or its Affiliates (including bad debts), if not previously deducted from such invoiced amount, taken in accordance with GAAP and (ii) net sales reported by each sublicensee (excluding amounts received by distributors for sales of the Product sold to such distributor, if the sale amounts for such sales to such distributor are otherwise included by this definition of Net Sales) for sales of the Product to Third Parties as determined in accordance with GAAP. The calculations described in clauses (i) and (ii) above shall exclude hedging gains or losses.   In the case of sales of the Product for consideration other than cash, such as barter or counter trade, Net Sales shall be calculated with respect to the fair market value of the consideration received.  For the avoidance of doubt, the supply of Product for compassionate use, commercial samples, or for administration to patients enrolled in Clinical Trials or to Third Parties as samples for evaluation purposes, in each case free of charge, shall not be included in Net Sales.

 

    	 	13	 

     

    

 

	“Net Sales Statement”	 	Defined in Section 4.6(c).
	 	 	 
	“Notice of Objection”	 	Defined in Section 4.6(c).
	 	 	 
	“Option”	 	Defined in Section 4.2.
	 	 	 
	“Option Period”	 	Defined in Section 2.3(a).  
	 	 	 
	“Owned Intellectual Property”	 	All Intellectual Property that is owned or purported to be owned, in whole or in part, by the Company.
	 	 	 
	“Payoff Letters”	 	Defined in Section 9.11.
	 	 	 
	“Patheon”	 	Defined in Section 2.2(a)(1).
	 	 	 
	“Person”	 	Individuals or entities, including any corporation, limited liability company, joint venture, trust, body corporate (wherever located), unincorporated association, partnership or other entity.
	 	 	 
	“Personal Data”	 	Any information (including a Person’s name, physical address, telephone number, e-mail address, photograph, social security number, taxpayer identification number, medical and health information, family members, demographic data and any other data and information) which, whether alone or in combination with other information, identifies or is associated with an identified natural Person.
	 	 	 
	“Phase II Clinical Trial”	 	A Clinical Trial of the Product for amyloid light chain amyloidosis that is intended to satisfy the requirements of 21 C.F.R. § 312.21(b), as amended from time to time.
	 	 	 
	“Pivotal Clinical Trial”	 	A pivotal Clinical Trial with a defined dose or a set of defined doses that is designed to ascertain efficacy and safety of the Product for the purpose of supporting the preparation and submission of a biologic license application.
	 	 	 
	“Plan”	 	Any employee benefit plan, scheme, program, agreement, arrangement, commitment, or understanding of any kind (written or unwritten), including any bonus, incentive, stock, stock option, phantom stock, equity-based compensation, deferred compensation, change in control, vacation, sick leave, retention, severance, salary continuation, defined benefit or defined contribution retirement, pension, savings, profit sharing, supplemental retirement, medical, dental, vision, life insurance, accident, disability, long-term care, retiree medical or other welfare or fringe benefit plan, scheme, or program (together with any trust, escrow or other agreement related thereto), and including any “employee benefit plan” as defined in Section 3(3) of ERISA.

 

    	 	14	 

     

    

 

	“POC Data Delivery Date”	 	Defined in Section 2.3(c).
	 	 	 
	“Pre-Closing Period”	 	The period from the Signing Date until the later of the expiration of the Purchase Option pursuant to Section 2.3 and the Acquisition Closing (to the extent that the Buyer exercises its Purchase Option pursuant to Section 2.3).
	 	 	 
	“Product”	 	Defined in the Recitals.
	 	 	 
	“Privacy Agreements”	 	Any data and privacy related policies (e.g., privacy policies, acceptable use policies, terms of service, etc.) and other Contracts in effect between the Company and any natural person or other Persons that are applicable to or otherwise implicate the collection, protection, storage, processing, transfer, administration, review, monitoring, use or disclosure of Personal Data in connection with the Company or its business.
	 	 	 
	“Privacy Laws”	 	All Legal Requirements concerning or otherwise applicable to the collection, protection, storage, processing, transfer, administration, review, monitoring, use or disclosure of Personal Data.
	 	 	 
	“Proceeding”	 	Any action (at law or in equity), suit, claim, review, audit, inquiry or legal or administrative proceeding or arbitration or other alternative dispute resolution proceeding or investigation (whether civil, criminal or administrative).
	 	 	 
	“Product”	 	As defined in the Recitals.
	 	 	 
	“Property Taxes”	 	Defined in Section 9.10(d).
	 	 	 
	“Pro Rata Share”	 	With respect to any payment made for the benefit of the Sellers pursuant to this Agreement, each Seller’s share of such payment as determined by multiplying the amount of such payment by the quotient of (i) the number of Company Shares held by such Seller immediately before the Acquisition Closing (after giving effect to the transactions contemplated by Section 4.2) divided by (ii) the total number of Company Shares issued and outstanding at that time and held by all Sellers (after giving effect to the transactions contemplated by Section 4.2, and for clarity, excluding any such shares held by the Buyer at such time).
	 	 	 
	“Purchase Option”	 	Defined in Section 2.3(a).

 

    	 	15	 

     

    

 

	“Qualified Third Party Offer”	 	An unsolicited term sheet or letter of intent executed by a Third Party and delivered to the Company for the purchase of the securities of the Company that is approved by the Company Board and that (a) addresses all material terms customarily addressed in term sheets or letters of intent for similar transactions, (b) contains no material conditions or contingencies, other than completion of confirmatory due diligence and negotiation of definitive agreements, (c) the consideration to be paid by such Third Party for all the securities of the Company includes (i) an upfront purchase price at least forty percent (40%) greater than the Baseline Purchase Price (including the Supplemental Baseline Purchase Price, as applicable) with respect to all securities of the Company other than those held by the Buyer and (ii) aggregate potential consideration at least forty percent (40%) greater than Six Hundred Twenty-Four Million Dollars ($624,000,000), in each case after reasonably discounting for any contingent payments and other terms of such term sheet or letter of intent, as compared to the terms hereof and (d) the Third Party would reasonably be expected to have the resources and ability to consummate the transaction within a reasonable and customary period.
	 	 	 
	“Registered Owned Intellectual Property”	 	All Owned Intellectual Property issued by, registered, recorded or filed with, renewed by or the subject of a pending application before any Governmental Authority, Internet domain name registrar or other authority.
	 	 	 
	“Related Party Contract”	 	Any Contract between the Company (or by which the Company (or any property or asset thereof) is bound), on the one hand, and any one or more of the Company’s Affiliates, directors, officers or any Person that owns, of record and/or beneficially, any security in the Company (or any immediate family member of any such director, officer or Person), on the other hand.
	 	 	 
	“Representative”	 	Defined in Section 12.17(a).
	 	 	 
	“Representatives”	 	Defined in Section 9.3.
	 	 	 
	“Restrictive Contract”	 	Any Company Contract that (a) restrains, limits or impedes the Company’s (or will, after the Investment Closing or the Acquisition Closing, restrain, limit or impede the Buyer’s or any of its Affiliates’, including the Company’s or any of its other subsidiaries’) ability to compete with any business or Person, or conduct any business or line of business at any time, in any manner or at any place in the world, or the expansion thereof to other geographical areas or lines of business (including through the grant of rights of exclusivity by the Company to any Person), (b) contains a standstill or similar agreement pursuant to which the Company or any of its Affiliates has agreed (or is subject to any agreement) not to acquire assets or securities of a third party, (c) contains any “nonsolicitation”, “no hire” or similar provision which restricts the Company or any of its Affiliates in soliciting, hiring, engaging, retaining or employing the current or former employees of any third party, or (d) contains any most favored nation, favored customer or similar provision.

 

    	 	16	 

     

    

 

	“RSU”	 	Defined in Section 4.2.
	 	 	 
	“Sales Milestone”	 	Defined in Section 4.6(c).
	 	 	 
	“SEC”	 	The United States Securities and Exchange Commission.
	 	 	 
	“Securities Act”	 	The U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
	 	 	 
	“Seller Indemnified Party”	 	Defined in Section 11.2.
	 	 	 
	“Sellers”	 	Defined in the Preamble.
	 	 	 
	“Signing Date”	 	January 30, 2019, being the date of the execution and delivery of this Agreement by the parties hereto.
	 	 	 
	“Stockholders Agreement”	 	Defined in the Recitals.
	 	 	 
	“Stock Purchase Investment”	 	Defined in the Recitals.
	 	 	 
	“Straddle Period”	 	Defined in Section 9.10(d).
	 	 	 
	“Subsidiary”	 	With respect to any Person, any corporation, partnership, joint venture or other legal entity of which such Person (either alone or together with any other subsidiary) owns, directly or indirectly, more than fifty percent (50%) of the capital stock (or equivalent), the holders of which are generally entitled to vote for the election of the board of directors or other governing body of such corporation, partnership, joint venture or other legal entity.
	 	 	 
	“Successful POC”	 	Defined in Section 2.3(d).
	 	 	 
	“Supplemental Baseline Purchase Price”	 	An amount equal to $50,000,000.

 

    	 	17	 

     

    

 

	“Tax” or “Taxes”	 	All taxes, duties, levies or imposts imposed by any Governmental Authority, including on or with respect to any income (including capital gains), capital, gross receipts, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code §59A), customs duties, capital stock, franchise, profits, production, withholding, social security (or similar), employment, unemployment, disability, national insurance, workers’ compensation, governmental pension plan premium, property (including real property and personal property), escheat or unclaimed property, sales, use, transfer, registration or value-added taxes, stamp, customs, duties, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, whether computed on a separate or consolidated, unitary or combined basis or in any other manner, including any interest, penalty, surcharge, fine or addition thereto.
	 	 	 
	“Tax Claim”	 	Defined in Section 11.3(c).
	 	 	 
	“Tax Returns”	 	Any and all filings, returns, reports, forms, declarations, estimates, information returns or other documents filed or required to be filed with any Governmental Authority with respect to Taxes (including any documents, statements or schedules attached thereto), and including any amendments thereof.
	 	 	 
	“Third Party”	 	With respect to any specified Person, any other Person who is not an Affiliate of such specified Person.
	 	 	 
	“Third Party Claim”	 	Defined in Section 11.3(a).
	 	 	 
	“Threshold”	 	Defined in Section 11.4(a).
	 	 	 
	“Transactions”	 	Defined in the Recitals.
	 	 	 
	“Transfer Taxes”	 	Defined in Section 9.10(a).
	 	 	 
	“Termination Date”	 	Defined in Section 10.6(a)(2).
	 	 	 
	“USPTO”	 	Defined in Section 5.14(l).
	 	 	 
	“Voting Company Debt”	 	Defined in Section 5.3(c).
	 	 	 
	“Warrant”	 	Defined in Section 4.2.
	 	 	 
	“Waiver Agreement”	 	Defined in the Recitals.

 

    	 	18	 

     

    

 

Article
2. 

DEVELOPMENT PLAN AND OPTION TO PURCHASE

 

Section 2.1          Company
Development and Efforts; Joint Steering Committee. 

 

(a)          The
Company hereby agrees to use Commercially Reasonable Efforts, in accordance with the Development Plan (as defined below) described
in Section 2.1(b) below and the Budget attached as Exhibit E hereto (the “Budget”), to develop
the Product through a successful completion of a Phase II Clinical Trial.

 

(b)          The
Company and the Buyer will establish a Joint Steering Committee (“JSC”), comprised of an equal number of representatives
from each of the Company and the Buyer, which shall manage and oversee all activities contemplated by and taken pursuant to the
Development Plan and may at its discretion establish additional subcommittees in connection therewith, including a “Joint
Manufacturing Committee” and/or a “Joint Clinical/Regulatory Committee”. The JSC will be established within thirty
(30) days following the Signing Date. The JSC, once established, shall immediately begin work to finalize the Development Plan
for the Product in keeping with the general outline attached as Exhibit F hereto (the “Development Plan”),
with the goal of completing the Development Plan within ninety (90) calendar days of the Signing Date. Once approved by the JSC,
the Development Plan can only be amended by the written approval of the JSC. All members of the JSC or any of its subcommittees
shall be multidisciplinary employees or consultants of the relevant party or any of its Affiliates with appropriate seniority,
experience, and delegated authority to make decisions of the JSC or subcommittee, as applicable, within the scope of the JSC’s
or subcommittee’s responsibilities, and all such members shall be subject to written confidentiality obligations commensurate
in scope to the provisions of the Confidentiality Agreement. Either party may replace one or more of its respective representatives
to the JSC at any time upon prior written notice to the other party. Decisions of the JSC shall be made by unanimous consensus
in all decisions, with one vote for the Company (determined by a majority of the Company’s JSC representatives present in
person or by proxy at such meeting) and one vote for the Buyer (determined by a majority of the Buyer’s JSC representatives
present in person or by proxy at such meeting). In the event of a disagreement between the members of the JSC with regard to any
aspect of the Development Plan or otherwise within the scope of the JSC, the Company shall have the right to make the final decision
(determined by a majority of the Company’s JSC representatives present in person or by proxy at such meeting); provided,
however, that the unanimous consent of the JSC shall be required in connection with (i) the selection of CRO and CMO (DS and DP)
Company vendors, (ii) the approval of specifications for any active pharmaceutical ingredient and drug product specifications,
(iii) the commencement of any analytical or manufacturing process, (iv) the selection of any principal investigators for Clinical
Trials, (v) the amendment of the JSC charter, (vi) any material changes to the Development Plan or (vii) any material change (i.e.,
greater than twenty-five percent (25%)) to the Budget.

 

(c)          The
JSC will meet at least quarterly in person or by audio or video teleconference. Each of the Company and the Buyer will be responsible
for all of the expenses of its representatives participating in the JSC meetings. A representative from each of the Company and
the Buyer will be necessary for a quorum at any such meeting. Notwithstanding anything herein or in the Development Plan to the
contrary, a representative from the Buyer’s Global Regulatory Affairs team shall be invited to be present at all meetings
of the Company with any Healthcare Regulatory Authorities.

 

    	 	19	 

     

    

 

(d)          Subject
to the final sentence of this Section 2.1(d), in the event that the Company determines in good faith that continued development
of the Product in accordance with Section 2.1(a) is no longer commercially reasonable, the Company shall notify the Buyer
in writing as promptly as possible, and in no event later than the date that is six (6) months prior to the Company’s anticipated
termination of development of the Product. The Company and the Buyer agree that, to the extent that the Company has determined
that the development of the Product pursuant to Section 2.1(a) is no longer commercially reasonable, they shall each engage
in good faith discussions as to the potential for continued development of the Product otherwise, including the potential form,
substance and mechanism for such development. Notwithstanding anything in the foregoing to the contrary, the Company shall not
terminate the development of the Product, or provide the Buyer written notice of its intent to do so, prior to the beginning of
the Option Period pursuant to Section 2.3(a).

 

Section 2.2          Development
Funding. 

 

(a)          As
funding for the development of the Product pursuant to Section 2.1 and in partial consideration for the Purchase Option
described in Section 2.3, the Buyer shall make (or cause to be made), the following payments (each, a “Funding
Payment”), in each case within 30 days after the achievement of the events described below as conditions precedent for
each such payment:

 

(1)          A
one-time payment of Five Million Dollars ($5,000,000) upon the demonstrated equivalence of the clinical supply of the Product from
Patheon Biologics LLC (“Patheon”) under Patheon’s newly-adopted processes to the Product previously used in phase
I clinical studies and toxicology studies, provided that the related IND has been appropriately updated without objection from
the FDA (and that the Product sufficiently demonstrates the proper identification, quality, purity and strength commensurate with
the phase of clinical development);

 

(2)          A
one-time payment of Ten Million Dollars ($10,000,000) upon the dosing of the first patient in a Phase II Clinical Trial; and

 

(3)          A
one-time payment of Fifteen Million Dollars ($15,000,000) upon the enrollment of fifty percent (50%) of the total number of patients
to be enrolled in a Phase II Clinical Trial pursuant to the applicable clinical trial protocol.

 

(b)          For
clarity, the maximum aggregate amount of Funding Payments payable under this Section 2.2 is Thirty Million Dollars ($30,000,000).

 

Section 2.3          Option
to Purchase. 

 

(a)          In
consideration of the Company’s right to the Funding Payments provided for herein, and the other agreements and obligations
of the parties contained herein, beginning on that date that is twelve (12) months after the Signing Date and ending on the date
that is three (3) months after the POC Data Delivery Date (the “Option Period”), the Sellers hereby grant the
Buyer (or an Affiliate of the Buyer, in which case all references to the Buyer with respect to the Purchase Option and/or the Acquisition
shall be deemed to refer to such Affiliate) an irrevocable and exclusive option (the “Purchase Option”), but
not the obligation, exercisable in the Buyer’s sole discretion, to acquire all of the Acquisition Shares on the terms and
conditions set forth herein.

 

    	 	20	 

     

    

 

(b)          The
Buyer may exercise the Purchase Option (in its sole discretion) at any time during the Option Period by delivery of a written notice
to the Representative stating the Buyer’s intent to so exercise the Purchase Option. Each Seller and the Company commit to
do all such things as may be necessary or useful to effect the Purchase Option (in whole or in part) pursuant to the terms hereof.

 

(c)          For
purposes of this Agreement, “POC Data Delivery Date” shall mean the the date of delivery by the Company to the
Buyer of all data held by the Company reasonably pertaining to a Successful POC (the “Initial Delivery”); provided
that if, within thirty (30) days of the Initial Delivery, the Buyer delivers to the Company any reasonable requests for additional
information with respect to the Successful POC and the data delivered in connection therewith, the “POC Data Delivery Date”
shall be extended to the date on which the Company has responded in writing to all such reasonable requests by the Buyer (and any
reasonable follow-up requests to such responses, provided that the Buyer has delivered such follow-up requests to the Company within
fifteen (15) days of such responses). The Company agrees to respond to each such request for additional information, and any follow-up
to a request for additional information, as soon as possible and in any event in no more than fifteen (15) days after such request.
In no event shall the POC Data Delivery Date be more than ninety (90) days from the Initial Delivery Date.

 

(d)          For
purposes of this Agreement, a “Successful POC” shall mean a completed Phase II Clinical Trial that demonstrates
a statistically significant improvement in cardiac function (determined by echocardiographic evaluation) and concordant improvement
in relevant biomarkers (e.g., NT-proBNP) and/or a statistically significant survival benefit or other primary endpoint as unanimously
determined by the JSC which may stem from discussions with the FDA.

 

(e)          Notwithstanding
anything in the foregoing to the contrary, the Option Period shall terminate on (1) the date that is six (6) months after the closing
of any Change of Control of the Buyer or (2) provided that the Company and the Sellers are and have always been in compliance with
Section 9.3, the date that is three (3) months after the notice by the Company to the Buyer of receipt by the Company of
a Qualified Third Party Offer, provided that, with respect to this clause (2), the Purchase Option shall be fully restored for
the benefit of the Buyer for the duration of its term as otherwise provided in this Section 2.3 in the event that the transactions
contemplated by the Qualified Third Party Offer are not consummated (on terms that continue to satisfy the requirements set forth
in the definition of “Qualified Third Party Offer” herein) within sixty (60) days after such termination.

 

Article
3. 

STOCK PURCHASE INVESTMENT

 

Section 3.1          Sale
and Purchase of Investment Shares. Subject to and in accordance with the terms and conditions of this Agreement, the Company
shall issue, sell, transfer and deliver to the Buyer, free and clear of any Encumbrances, and the Buyer shall purchase and acquire
from the Company, for $30.0 million (the “Investment Price”), 4,141,606 Class B Preferred Shares, which shall
equal 19.9% of the Fully Diluted Capitalization as of the Signing Date (after giving effect to such issuance) (the “Investment
Shares”), payable as provided in Section 3.3.

 

    	 	21	 

     

    

 

Section 3.2          Investment
Closing. The consummation of the purchase and sale of the Investment Shares (the “Investment Closing”) shall
take place remotely via the exchange of documents, signatures and payments, at 10:00 a.m. Eastern Time, on the Signing Date, or
such other time and place as is mutually agreed by the Company and the Buyer.

 

Section 3.3          Investment
Closing Deliverables. At the Investment Closing:

 

(a)          Each
of the Company and the Sellers shall deliver to the Buyer a fully-executed copy of each Ancillary Agreement that by its terms is
to be executed and delivered at the Investment Closing and the Company shall deliver to the Buyer evidence in form and substance
reasonably satisfactory to the Buyer that the Investment Shares have been issued to the Buyer and the Buyer is the beneficial and
record owner of the Investment Shares;

 

(b)          The
Buyer shall deliver to the Company payment, by wire transfer, to a bank account previously designated in writing by the Company,
of immediately available funds in an amount equal to the Investment Price;

 

(c)          The
Company shall deliver to the Buyer a certificate duly signed by the secretary of the Company certifying as to: (A) the full force
and effect of resolutions of its board of directors attached thereto as an exhibit evidencing the authority of the Company to execute
and deliver this Agreement and the Ancillary Agreements to which it is a party, to perform its obligations hereunder and thereunder
and to consummate the transactions contemplated hereby and thereby; (B) the full force and effect of the certificate of incorporation
and bylaws of the Company attached thereto as exhibits; and (C) the incumbency and signature of the officers of the Company with
authority to execute this Agreement and the Ancillary Agreements to which the Company is a party;

 

(d)          The
Company shall deliver to the Buyer an opinion, dated as of the Investment Closing, from Alston & Bird LLP, counsel for the
Company, in substantially the form attached as Exhibit G hereto.

 

(e)          The
Company shall deliver to the Buyer a certificate evidencing the good standing of the Company in its jurisdiction of incorporation
as of a recent date;

 

(f)          The
Company shall deliver to the Buyer certificates evidencing the qualification of the Company to do business as a foreign corporation
as of a recent date in each jurisdiction outside of its jurisdiction of organization where it conducts business; and

 

(g)          The
Company shall deliver to the Buyer all other certificates, documents and instruments that are reasonably requested by Buyer.

 

Article
4. 

THE ACQUISITION

 

Section 4.1          Sale
and Purchase of Acquisition Shares. In the event that the Buyer exercises its Purchase Option pursuant to Section 2.3,
subject to and in accordance with the terms and conditions of this Agreement, each Seller shall sell, transfer, assign and deliver,
and the Buyer will purchase from each Seller (the “Acquisition”), free and clear of any Encumbrances, all right,
title and interest in and to all of the Common Shares, Class A Shares and Class B Shares (collectively, the “Company Shares”)
owned, of record and/or beneficially, by such Seller as of the Acquisition Closing and after giving effect to Section 4.2,
as set forth next to the name of such Seller on Exhibit H under the title “Shares Owned” (the “Acquisition
Shares”).

 

    	 	22	 

     

    

 

Section 4.2          Exercise
and Conversion of Company Securities. Prior to the Acquisition Closing, each Seller that is a holder of an option to acquire
Company Shares (each, an “Option”), or any warrant to issue Company Shares (each, a “Warrant”)
shall deliver to the Company all funds, documents and instruments necessary to effect the exercise of such Options or Warrants,
as applicable, into Company Shares on the Acquisition Closing. Each Seller that is a holder of Options or Warrants acknowledges
and agrees that, upon the occurrence of the Acquisition Closing, any such Options or Warrants that were not previously exercised
by way of payment of the applicable exercise price and the delivery of required documents and instruments shall be cancelled and
no longer be exercisable pursuant to their terms and any such Options and Warrants that were not exercised in accordance with their
terms shall be forfeited and shall be of no further force or effect. The Representative shall deliver to the Buyer an amended and
updated Exhibit H no less than one (1) Business Day prior to the Acquisition Closing reflecting such exercise and conversion
of such Options and Warrants into Company Shares. The Company shall take all requisite action so that, immediately prior to the
Acquisition Closing, each restricted stock units with respect to the Company Shares (each, an “RSU”) and Company
Share subject to vesting, repurchase, or other lapse of restrictions (a “Company Restricted Share”) that is
outstanding under any Company Employee Plan immediately prior to the Acquisition Closing shall, by virtue of the Acquisition Closing
and without any action on the part of the holder thereof, vest in full and become free of restrictions. Prior to the Acquisition
Closing, the Company, the Company Board, and the compensation committee of the Company Board, as applicable, shall have adopted
any resolutions and taken any actions (including obtaining any employee consents) that may be necessary to effectuate the provisions
of this Section 4.2.

 

Section 4.3           Acquisition
Closing Purchase Price.

 

(a)          At
the Acquisition Closing, the Buyer shall pay to the Representative, for the benefit of and distribution to the Sellers in accordance
with their Pro Rata Share, an amount equal to the Acquisition Closing Purchase Price by wire transfer of immediately available
funds into an account designated in writing by the Representative no later than two (2) Business Days prior to the Acquisition
Closing.

 

(b)          At
the Acquisition Closing, the Buyer shall pay to the Escrow Agent an amount equal to the Escrow Amount.

 

Section 4.4          Acquisition
Closing. The consummation of the purchase and sale of the Acquisition Shares (the “Acquisition Closing”)
shall take place two (2) Business Days after the conditions set forth in Article 10 are satisfied or waived (to the extent
permitted hereunder or by applicable Legal Requirement) (except for such conditions that by their nature will be satisfied at the
Acquisition Closing, but subject to the satisfaction or waiver of such conditions at such time), or at such other time as the Buyer
and the Representative agree in writing. The Closing shall take place remotely via the exchange of documents, signatures and payments,
at 10:00 a.m. Eastern Time (or at such place as the parties may otherwise designate in writing).

 

    	 	23	 

     

    

 

Section 4.5          Escrow
Amount.

 

(a)          At
the Acquisition Closing, the Buyer shall deposit with Citibank N.A. (the “Escrow Agent”), by wire transfer of
immediately available funds, an amount equal to the Escrow Amount, such amount plus all accumulated earnings thereon to constitute
the Escrow Fund to be governed in accordance with the terms of this Agreement and the escrow agreement in substantially the form
attached hereto as Exhibit I (the “Escrow Agreement”), among the Buyer, the Escrow Agent and the Representative.

 

(b)          The
Escrow Fund shall be used to satisfy any amounts owed to the Buyer pursuant to this Agreement, if any, and any indemnification
amounts owed hereunder. The Buyer and the Representative shall timely provide any joint written instructions contemplated by this
Section 4.5 or Article 11 so that distributions can be made by the Escrow Agent within the time period required by
this Section 4.5 or Article 11.

 

(c)          The
portion of the Escrow Fund that is not used to satisfy any other amounts owing to the Buyer pursuant to this Agreement, including
indemnification amounts, or not subject to any claims hereunder (such portion, the “Escrow Fund Release Amount”),
shall be released pursuant to joint written instructions to be provided to the Escrow Agent by the Buyer and the Representative
on the date that is one (1) Business Day after the date that is two (2) years after the date of the Acquisition Closing; provided,
however, that if there are any indemnification claims hereunder that are properly pending on the date that is two (2) years
after the date of the Acquisition Closing, such portion of the Escrow Fund corresponding to the amounts subject to such claims
shall not be released until the applicable claims are finally resolved and satisfied. Any Escrow Funds released by the Escrow Agent
to the benefit of the Sellers shall be released to the Representative, for the benefit of and distribution to the Sellers in accordance
with their Pro Rata Share. Upon the final release of all of the Escrow Fund, the Escrow Agreement shall terminate.

 

(d)          The
Escrow Fund shall be held as a trust fund and shall not be subject to any Encumbrance, and shall be held and disbursed solely for
the purposes and in accordance with the terms of this Agreement and the Escrow Agreement.

 

Section 4.6          Earn-Out
Payments.

 

(a)          Following
the Acquisition Closing, upon the achievement of the following events (each a “Milestone Event”) with respect
to the Product, as further consideration for the Acquisition, the Buyer shall make (or cause to be made) the following payments
(each, an “Earn-Out Payment”), in each case within sixty (60) days after the achievement of the applicable Milestone
Event described below as conditions precedent for each such payment, in each case subject to the permitted deductions set forth
in Section 4.6(d):

 

(1)          (A)
in the event that the Sellers did not receive the Supplemental Baseline Purchase Price, a one-time payment of Seventy-Five Million
Dollars ($75,000,000) or (B) in the event that the Sellers did receive the Supplemental Baseline Purchase Price, a one-time payment
of Fifty Million Dollars ($50,000,000), in either case upon obtaining the approval of a biologic license application by the FDA
for the Product for a Broad Patient Population following the completion of a Pivotal Clinical Trial;

 

    	 	24	 

     

    

 

(2)          a
one-time payment of Twenty-Five Million Dollars ($25,000,000) upon the determination at the end of the Buyer’s fiscal year
that the Net Sales for such fiscal year exceeded Two Hundred Fifty Million Dollars ($250,000,000);

 

(3)          a
one-time payment of Fifty Million Dollars ($50,000,000) upon the determination at the end of the Buyer’s fiscal year that
the Net Sales for such fiscal year exceeded Five Hundred Million Dollars ($500,000,000);

 

(4)          a
one-time payment of Seventy-Five Million Dollars ($75,000,000) upon the determination at the end of the Buyer’s fiscal year
that the Net Sales for such fiscal year exceeded Seven Hundred Fifty Million Dollars ($750,000,000); and

 

(5)          a
one-time payment of One Hundred Million Dollars ($100,000,000) upon the determination at the end of the Buyer’s fiscal year
that the Net Sales for such fiscal year exceeded One Billion Dollars ($1,000,000,000).

 

For the avoidance of doubt, one or more
(or all) of the foregoing sales milestones may be due and payable with respect to a single given calendar year in the event any
or all of the applicable Net Sales milestones is satisfied with respect to such single calendar year.

 

(b)          For
clarity, the maximum aggregate amount of Earn-Out Payments payable under this Agreement is Three Hundred Twenty-Five Million Dollars
($325,000,000).

 

(c)          Commencing
the calendar year following the year in which the first commercial sale of the Product occurs until payment of all of the Earn-Out
Payments described in Sections 4.6(a)(2-5) (the Milestone applicable to each such Earn-Out Payment, a “Sales Milestone”)
(or the Buyer and the Representative otherwise mutually agree), on or prior to the forty-fifth (45th) day following
release by the Buyer of its (or its applicable Affiliate’s) audited financial statements for each fiscal year during such
period, the Buyer shall prepare and deliver to the Representative a statement setting forth the Buyer’s determination of
Net Sales with respect to the applicable Sales Milestone for such fiscal year (the “Net Sales Statement”). In
order to allow the Representative to reasonably verify the proposed determination with respect to the Sales Milestone, the Buyer
shall provide copies of any records or other documentation reasonably requested by the Representative that were used by the Buyer
in reaching such determination and shall afford the Representative or its designees reasonable access during normal business hours
to appropriate personnel of the Buyer (or its Affiliate) to discuss such records or documentation. If the Representative has any
objections to the Buyer’s determination, then the Representative may object by delivering a written objection notice (a “Notice
of Objection”) within thirty (30) days of its receipt of the Net Sales Statement, and the Buyer and the Representative
shall proceed to resolve such disagreement in accordance with the dispute resolution procedures set forth in Section 4.6(e).
If it is determined through such dispute resolution procedures that a Sales Milestone was achieved, the Buyer shall make (or cause
to be made) the applicable Earn-Out Payment to the Representative for further distribution to the Sellers in accordance with their
Pro Rata Share. Notwithstanding anything in this Agreement to the contrary, subsequent to the Acquisition Closing, the Buyer shall
have sole discretion with regard to all matters relating to the operation of the Company and its business and shall have no obligation,
or liability as a result of the failure, to achieve any of the Milestones that would give rise to an Earn-Out Payment.

 

    	 	25	 

     

    

 

(d)          If
at the time any Earn-Out Payment becomes earned and payable, any Buyer Indemnified Party shall have in good faith asserted any
indemnification claim(s) pursuant to Article 11 of this Agreement prior to the time by which such claims must be made in
accordance with Section 10.5 and such claim(s) shall not have been resolved or satisfied, the amount of such claim(s) shall
be deducted from the payment of such Earn-Out Payment and held back by the Buyer to secure its right of set-off, until such indemnification
claim(s) shall have been resolved or satisfied. Upon the final resolution or satisfaction of such indemnification claim(s), any
excess amount that had been deducted from such Earn-Out Payment will be delivered to the Representative, for the benefit of and
distribution to the Sellers in accordance with their Pro Rata Share.

 

(e)          Unless
the Representative provides a Notice of Objection within thirty (30) days after the receipt of the Net Sales Statement, the determination
of Net Sales set forth therein shall be final and binding for all purposes hereunder. Any Notice of Objection shall specify in
reasonable detail the basis for the objections set forth therein and shall include the Representative’s calculation of any
amounts that are disputed by such Notice of Objection (the “Disputed Amounts”) to the extent that such amounts
may be determined (it being understood that an objection to one or more of the foregoing amounts shall not prevent any other amount
from becoming final and binding for all purposes hereunder). If the Representative provides such Notice of Objection to the Buyer
within such thirty (30)-day period, the Buyer and the Representative shall, during the thirty (30)-day period following the Representative’s
delivery of such Notice of Objection to the Buyer, attempt in good faith to resolve any Disputed Amounts. If the Buyer and the
Representative are unable to resolve all such Disputed Amounts within such period, the matters remaining in dispute shall be submitted
to a nationally recognized public accounting firm mutually agreed upon by the Buyer and the Representative (such accounting
firm being referred to herein as the “Independent Accountant”). The Buyer and the Representative shall instruct
the Independent Accountant to render its decision as promptly as possible, but no later than sixty (60) days after its selection.
The Independent Accountant will consider only those items and amounts that are identified as being items and amounts to which the
Representative and the Buyer have been unable to agree. In resolving any disputed item, the Independent Accountant may not assign
a value to any item greater than the greatest value for such item claimed by the Representative or the Buyer or less than the smallest
value for such item claimed by either of them. The Buyer and the Representative shall each furnish to the Independent Accountant
such work papers and other documents and information relating to the Disputed Amounts as the Independent Accountant may request.
The resolution of the Disputed Amounts by the Independent Accountant shall be final and binding, and the determination of the Independent
Accountant shall constitute an arbitral award that is final, binding and unappealable and upon which a judgment may be entered
by a court having jurisdiction thereover. The Buyer and the Representative shall each pay their own costs and expenses incurred
in connection with the resolution of the Disputed Amounts; provided, however that the fees and expenses of the Independent
Accountant shall be allocated between the Buyer and the Representative in the same proportion that the total amount of the Disputed
Amounts submitted to the Independent Accountant that is unsuccessfully disputed by each such party (as finally determined by the
Independent Accountant) bears to the total amount of the Disputed Amounts so submitted by each such party (e.g., should the items
in dispute total in amount to $1,000 and the Independent Accountant awards $600 in favor of the Buyer’s position, 60% of
the costs of its review would be borne by the Representative and 40% of the costs would be borne by the Buyer).

 

    	 	26	 

     

    

 

(f)           Buyer
shall not, with regard to the business of the Company, take any action or make any omission which is solely intended to avoid the
achievement of the Earn-Out Payments described above.

 

Section 4.7          Withholding;
Tax Documentation. The Buyer shall be entitled to deduct and withhold from payment of any amounts payable pursuant to this
Agreement such amounts as may be required to be deducted and withheld with respect to the making of such payment or any other amounts
payable pursuant to this Agreement under the Code or any other Tax Legal Requirement. To the extent that amounts are so withheld
by the Buyer and remitted to the applicable Governmental Authority, such withheld amounts shall be treated for all purposes of
this Agreement as having been paid to the Person to whom such amounts would otherwise have been paid. The Buyer shall be entitled
to request and collect any Tax forms, including IRS Form W-9, or the appropriate series of IRS Form W-8, as applicable, or any
similar information, from any recipient of any payment pursuant to, or in connection with, this Agreement, and each such recipient
hereby covenants to provide such Tax form or information upon request by the Buyer.

 

Article
5. 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except as set forth in the disclosure schedule
delivered by the Company prior to, or concurrently with, the execution of this Agreement (the “Disclosure Schedule”)
the Company hereby represents and warrants to the Buyer as of the Signing Date and as of the date of the Acquisition Closing, as
if such representations and warranties were made as of the date of the Acquisition Closing, as follows:

 

Section 5.1          Organization
of the Company; Due Authorization.

 

(a)          The
Company (i) is a corporation duly organized, validly existing and in good standing under the laws of Delaware, (ii) is
duly licensed and qualified to conduct its business in each jurisdiction where the nature of the properties owned, leased or operated
by it and the business transacted by it requires such licensing or qualification, except where any such failures to be so qualified
or licensed have not had, or are not reasonably likely to have, a Material Adverse Effect and (iii) holds all necessary corporate
power and authority to own, license and operate its assets and properties, to conduct its business, to enter into this Agreement
and the Ancillary Agreements, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated
hereby and thereby, including the Transactions. This Agreement and the consummation of the transactions contemplated hereby, the
execution and delivery of this Agreement and the Ancillary Agreements by the Company, the performance by the Company of its obligations
hereunder and thereunder and the consummation by the Company of the transactions contemplated hereby and thereby, have been duly
authorized by all requisite action on the part of the Company, and no other proceedings on the part of the Company or its stockholders
are necessary to authorize the execution and delivery of this Agreement or the consummation by the Company of the transactions
contemplated hereby and thereby.

 

    	 	27	 

     

    

 

(b)          Each
of this Agreement and the Ancillary Agreements to which the Company is or will be a party has been or will be, as the case may
be, duly executed and delivered by the Company and (assuming due authorization, execution and delivery by the Buyer) constitutes
or will constitute a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with their
respective terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited
by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)          The
board of directors of the Company has unanimously adopted resolutions, prior to the Signing Date, (i) determining that this Agreement,
the Stock Purchase Investment, the Acquisition and the other transactions contemplated by this Agreement and the Ancillary Agreements
are advisable and fair to, and in the best interests of, the Company and its stockholders, and (ii) approving this Agreement, the
Ancillary Agreements, the Stock Purchase Investment, the Acquisition and the other transactions contemplated by this Agreement
and the Ancillary Agreements.

 

(d)          The
Company’s certificate of incorporation, as amended, and the Company’s bylaws, each as provided to the Buyer prior to
the Signing Date are in full force and effect, and, other than as contemplated by the terms of this Agreement, no action has been
taken or is contemplated to amend such organizational documents.

 

Section 5.2          No
Conflicts, Consents or Approvals. Assuming that any applicable waiting period under the HSR Act has expired or been terminated,
neither the execution or delivery by the Company of this Agreement or any of the Ancillary Agreements, or the performance by the
Company of its obligations under this Agreement or any of the Ancillary Agreements, or the consummation of the transactions contemplated
hereby or thereby will (a) result in any breach of any provision of the Company’s certificate of incorporation and by-laws,
each as amended from time to time, (b) result in any breach of, require (with or without notice or lapse of time or both) any payment,
consent or notice or constitute a default (or give rise to any right of purchase, termination, amendment, acceleration or cancellation)
under, any Company Contract or order or judgment to which the Company is a party or by which it or its assets are bound, (c) result
in the creation of an Encumbrance or (d) violate any applicable Legal Requirement.

 

Section 5.3          Capital
Stock of the Company. 

 

(a)          The
Company has an authorized share capital of 2,000,000 Preferred Shares (of which 250,000 shares have been designated Class A Preferred
Shares and the remainder are undesignated) and 50,000,000 Common Shares. Attached hereto as Schedule 5.3 is the capitalization
of the Company as of the Signing Date, including all Company Securities, as defined below.

 

    	 	28	 

     

    

 

(b)          As
of the Signing Date, 11,184,177 Common Shares and 250,000 Class A Preferred Shares are issued and outstanding, (ii) there were
668,500 Common Shares underlying outstanding Options and RSUs, in each case issued under the Company’s 2017 Stock Incentive
Plan (of which the Company has provided the Buyer a true, correct and complete copy prior to the Signing Date), (iii) there were
no Common Shares underlying outstanding Warrants (of which the Company has provided the Buyer a true, correct and complete copy
prior to the Signing Date) and (iv) no other shares of capital stock of, or other equity interests in, the Company were issued,
reserved for issuance or outstanding. All of the outstanding shares of capital stock of the Company have been duly authorized and
validly issued, are fully paid and nonassessable and were issued in compliance with all applicable Legal Requirements, the Company’s
organizational documents and any Company Contracts.

 

(c)          Except
as set forth on Schedule 5.3, there are no options, warrants, rights, convertible or exchangeable securities, “phantom”
stock rights, stock appreciation rights, restricted stock units, restricted stock, stock-based performance units, commitments,
contracts, arrangements or undertakings of any kind to which the Company is a party or by which it is bound (i) obligating
the Company to issue, deliver or sell or cause to be issued, delivered or sold, additional shares of capital stock of, or other
equity interests in, or any security convertible or exercisable for or exchangeable into any capital stock of, or other equity
interest in, the Company, or any Voting Company Debt (as defined below), (ii) obligating the Company to issue, grant, extend
or enter into any such option, warrant, call, right, security, commitment, contract, arrangement or undertaking or (iii) that give
any Person the right to receive any economic benefit or right similar to or derived from the economic benefits and rights accruing
to holders of capital stock of, or other equity interests in, the Company (together with the Common Shares and the Class A Preferred
Shares and Class B Preferred Shares, the “Company Securities”). Any Warrant, Option or RSU obligating the Company
to issue any Company Securities that is outstanding prior to the Acquisition Closing shall be required to comply with Section
4.2 in connection therewith. There are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise
acquire any shares of capital stock of the Company. There are no proxies, voting trusts or other agreements or understandings to
which the Company is a party or is bound with respect to the voting of or giving consent by the capital stock of, or other equity
interests in, the Company. There are no preemptive or similar rights granted by the Company to any holders of any class or series
of securities of the Company. There are no outstanding bonds, debentures, notes or other obligations of the Company, the holders
of which have the right to vote (or which are convertible into or exchangeable or exercisable for securities having the right to
vote) with the Company’s stockholders on any matter (“Voting Company Debt”).

 

(d)          Upon
consummation of the Investment Closing, Buyer will own the Investment Shares free and clear of all Encumbrances and such shares,
along with the Acquisition Shares, shall have been duly authorized and validly issued, be fully paid and nonassessable and issued
in compliance with all applicable Legal Requirements, the Company’s organizational documents and any Company Contracts.

 

(e)          The
Company does not have, and has never had, any Subsidiaries or equity interest in any Person. There is no Company Contract currently
or prospectively requiring the Company to form or participate in or make any capital contribution to or investment in any Person.

 

    	 	29	 

     

    

 

Section 5.4          Financial
Statements; Other Liabilities. 

 

(a)          The
Company has previously provided to the Buyer (i)(A) with respect to the Investment Closing, the audited balance sheets of the Company
for the years ended December 31, 2016 and December 31, 2017, and the statements of operations, stockholders’ equity (deficit)
and cash flows for the period from October 26, 2016 (the Company’s inception) through December 31, 2016 and the twelve months
ended December 31, 2017 and (B) with respect to the Acquisition Closing, the audited balance sheets of the Company as of December
31 for each year ended between the Signing Date and the date of the Acquisition for which an audit has been completed in the Company’s
ordinary course of business consistent with past practice, and the statements of operations, stockholders’ equity (deficit)
and cash flows for the twelve (12)-month period ended as of each such calendar year and (ii)(A) with respect to the Investment
Closing, the unaudited balance sheets of the Company as of September 30, 2018 and (B) with respect to the Acquisition Closing,
the unaudited balance sheets of the Company as of the last day of the Company’s most recently completed fiscal quarter (in
each case, as applicable with respect to the Investment Closing or the Acquisition Closing, the “Most Recent Balance Sheet”
and such date, the “Most Recent Balance Sheet Date”), and the statements of operations, stockholders’
equity (deficit) and cash flows for the fiscal quarter then ended (the items in clauses (i) and (ii), collectively, the “Financial
Statements”).

 

(b)          The
Company maintains books of account and other financial records that are accurate in all material respects. The Financial Statements
(i) were prepared in conformity with GAAP consistently applied throughout the periods indicated, and in accordance with the books
of account and other financial records of the Company and (ii) present fairly, in conformity with GAAP consistently applied, the
financial position and the results of operations, stockholders’ equity (deficit) and cash flows of the Company as of the
dates thereof, or for the periods covered thereby, as the case may be.

 

(c)          The
Company does not have any (i) “off-balance sheet” arrangements or Liabilities or (ii) except as reflected
in the Most Recent Balance Sheet, the Company and its Subsidiaries do not have any material liabilities or obligations (whether
absolute, accrued, contingent, matured, or otherwise, and whether due or to become due), except for liabilities and obligations
(A) incurred in the ordinary course of business consistent with past practice since the Most Recent Balance Sheet Date, (B)
which would not be required to be recorded in an audited consolidated balance sheet of the Company (or disclosed in the notes thereto)
that is prepared in accordance with GAAP, or (C) which are disclosed in Schedule 5.4(c).

 

(d)          No
director or officer of the Company or, to the Company’s Knowledge, non-officer employee, external auditor, external accountant
or similar authorized representative of the Company, has received or otherwise been made aware of any complaint, allegation or
claim, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies or methods of the Company
or its internal accounting controls, including any complaint, allegation or claim that the Company has engaged in questionable
accounting or auditing practices.

 

    	 	30	 

     

    

 

Section 5.5          Agreements.

 

(a)          Schedule
5.5(a) lists, as of the Signing Date, each of the following Company Contracts, including any amendments thereto (each, a “Material
Contract”):

 

(1)          any
Contract (A) relating to Indebtedness of the Company or the guarantee of Indebtedness of any Person, (B) securing any Indebtedness
through any Encumbrance or (C) otherwise creating an Encumbrance;

 

(2)          any
Restrictive Contract;

 

(3)          any
joint venture, partnership or limited liability company agreements or other similar agreements or arrangements relating to the
formation, creation, operation, management or control of, or investment by the Company in, any joint venture, partnership or limited
liability company;

 

(4)          any
collective bargaining agreement or other Contract to or with any labor union or other employee representative of a group of employees;

 

(5)          any
Related Party Contract;

 

(6)          any
Contract pursuant to which the Company (A) in any transaction or series of related transactions, has an option, right or obligation
to purchase any other business or portion thereof on an ongoing basis (including by purchasing the assets or capital stock of another
Person), (B) in any transaction or series of related transactions, purchased any such business or portion thereof and continues
to have any ongoing obligations (including obligations under any shareholder agreement), or (C) without limitation of clause (B),
has an obligation to make any earn-out payments based on future performance of an acquired business or assets;

 

(7)          any
Contract that (A) obligates the Company to make a loan or capital contribution to, or investment in any Person or (B) on a stand-alone
basis obligates the Company to provide indemnification or a guarantee that would reasonably be expected to result in payments in
excess of $50,000;

 

(8)          any
Contract that (A) grants to any Person a right of first refusal, right of first offer, option or similar preferential right to
purchase any of the Company’s capital stock or assets, (B) obligates the Company to sell to any Person or Persons (or pursuant
to which the Company sold to any Person or Persons and continues to have any ongoing obligations) any capital stock or assets,
or (C) obligates the Company to sell, assign, or otherwise transfer or dispose of to any Person or Persons (or pursuant to
which the Company sold, assigned, or otherwise transferred or disposed of to any Person or Persons and continues to have any ongoing
obligations), in any transaction or series of related transactions, any assets, property or business having an aggregate value
exceeding (or for consideration, including assumption of Indebtedness, exceeding) $100,000 or otherwise outside of the ordinary
course of business consistent with past practice;

 

    	 	31	 

     

    

 

(9)          all
Intellectual Property Agreements, including any Contract that, as its primary purpose, grants to the Company, or by which the Company
grants to any Person, any right to use, exploit or practice any Intellectual Property;

 

(10)        Privacy
Agreements;

 

(11)        any
Contract regarding Leased Real Property;

 

(12)        any
Contract that the Company reasonably anticipates requiring aggregate payments to or by the Company in excess of $50,000 individually
(or $200,000 in the aggregate for all such Contracts) in any twelve (12)-month period;

 

(13)        any
employment or consulting Contract (in each case with respect to which the Company has continuing obligations as of the Signing
Date) with any current or former (A) officer of the Company, (B) member of the board of directors of the Company, or (C) employee
of the Company;

 

(14)        any
Contract with any agent, distributor or sales representative;

 

(15)        any
Contract that contains a “change of control” or similar provision that would require any consent, notice or other action
in connection with, or that could reasonably be expected to prevent, delay or impair the consummation of, the transactions contemplated
by this Agreement or any Ancillary Agreement;

 

(16)        any
Contract to which a Governmental Authority is a party;

 

(17)        any
Contract that is an insurance policy referred to in Section 5.6;

 

(18)        any
Contract which commits the Company to enter into any of the foregoing;

 

(19)        any
Contract involving any resolution or settlement of any actual or threatened Proceeding; or

 

(20)        any
Contract which is not otherwise described in clauses (1)-(19) above that is material to the Company.

 

(b)          The
execution and delivery by the Company of this Agreement or any Ancillary Agreement to which the Company is or will be a party does
not and will not, and the performance by the Company of this Agreement or any Ancillary Agreement to which the Company is or will
be a party does not and will not, conflict with, result in any breach of, constitute a material default (or event which with the
giving of notice or lapse of time would become a default) or loss of benefit under, require any consent, notice or payment (including
any right of acceleration of any royalties, fees, profit participations or other payments to any Person) under, or give to others
any rights of purchase, termination, amendment, acceleration or cancellation of any Company Contract.

 

    	 	32	 

     

    

 

(c)          Neither
the Company nor, to the Company’s Knowledge, any other party to a Company Contract, is in breach of, or default under, any
of the Company Contracts. No event has occurred that would result in any violation or breach of, or conflict with, or constitute
(with or without notice or lapse of time or both) a default (or give rise to any right of purchase, termination, amendment, acceleration
or cancellation) under, result in the loss of any benefit under, or result in the triggering of any payments (including any right
of acceleration of any royalties, fees, profit participations or other payments to any Person) pursuant to, any of the terms, conditions
or provisions of any Company Contract. Each Company Contract is valid and binding on, and in full force and effect with respect
to, the Company and, to the Company’s Knowledge, each other party thereto and enforceable in accordance with its terms, except:
(i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies. The Company has not waived any right under any Company
Contract or given to or received from any other Person any notice or other communication regarding any actual, alleged, possible
or potential breach of, or default (with or without notice or lapse of time or both) under, any Company Contract, and, to the Company’s
Knowledge, is not otherwise aware of any intention by any counterparty thereto to terminate (other than Company Contracts that
are expiring pursuant to their terms), or not renew any Company Contract, or is seeking the renegotiation thereof or substitute
performance thereof.

 

(d)          The
Company has made available to the Buyer prior to the Signing Date true, correct and complete copies of all Material Contracts (including
all amendments and supplements thereto). The Company does not have any oral Material Contracts.

 

Section 5.6          Insurance.
Schedule 5.6 contains a list of all insurance policies maintained with respect to the business of the Company, all of which
are in full force and effect in accordance with their terms and shall remain in full force and effect following the transactions
contemplated by this Agreement or any Ancillary Agreement. The Company is not in material default with respect to its obligations
under any insurance policy maintained by it. The Company has not received written notice of termination, cancellation or non-renewal
of any such insurance policies from any of its insurance brokers or carriers. The Company has complied in all material respects
with each such insurance policy and all premiums due on such insurance policies have either been paid or, if due and payable
prior to the Acquisition Closing, will be paid prior to the Acquisition Closing in accordance with the payment terms of each insurance
policy. The Company has not ever been denied insurance or suffered the cancellation of any insurance. There is no material claim
pending by the Company under any insurance policy listed on Schedule 5.6 as to which coverage has been questioned, denied
or disputed by the underwriters of such policy. The insurance policies listed on Schedule 5.6 are of the type and in the
amounts customarily carried by Persons conducting a business similar to the Company and are sufficient for compliance with all
applicable Legal Requirements and Contracts to which the Company is a party or by which it or the Company Assets are bound.

 

    	 	33	 

     

    

 

Section 5.7         Real
Property; Title, Condition and Sufficiency of Assets. The Company does not own, and has never owned, any real property. Schedule
5.7 contains a true, complete and correct list of all Contracts pursuant to which the Company leases any Leased Real Property.
The Company enjoys peaceful and undisturbed possession of all Leased Real Property (whether as tenant, subtenant or pursuant to
other occupancy arrangements) and has a good and valid leasehold interest therein, in each case free and clear of all Encumbrances.
There are no applicable Legal Requirements in effect that would prevent or limit in any material respect the Company from conducting
its operations on the Leased Real Property as they are currently conducted. There does not exist any condemnation, eminent domain
or taking proceeding that affects any Leased Real Property. The Company has good title to, or a valid leasehold interest in, or,
with respect to licensed assets, a valid license to use, the assets and properties (whether tangible or not) used or held for use
by it in connection with the conduct of its business, free and clear of all Encumbrances, and such assets and properties are reasonably
sufficient and suitable in all material respects for the operation of the business of the Company as currently conducted and currently
intended to be conducted. The tangible personal assets and property of the Company are in good working condition and repair in
the ordinary course of business, reasonable wear and tear excepted.

 

Section 5.8          Taxes.
For purposes of this Section 5.8, the term “Applicable Closing” means each of the Investment Closing
and the Acquisition Closing.

 

(a)          As
of the date of the Applicable Closing: (i) all Tax Returns that are required to be filed on or before such date by or on behalf
of the Company have been timely filed; (ii) each such Tax Return is true and correct in all material respects; and (iii) all Taxes
due and payable by the Company have been, or will be, timely paid (whether or not shown on any Tax Return). As of the date of the
Applicable Closing, there are no Encumbrances for Taxes upon any of the assets of the Company.

 

(b)          The
Company shall prepare and timely file, or cause to be prepared and timely filed, all Tax Returns of the Company that are filed
after the date of the Investment Closing through the date of the Acquisition Closing and such Tax Returns shall be prepared consistent
with the past practices of the Company, unless otherwise required by applicable Legal Requirement.

 

(c)          As
of the date of the Applicable Closing, there are no outstanding legally enforceable agreements that waive or extend the statute
of limitations applicable to any Tax (including with respect to any Tax assessment, deficiency, claim for refund or claim for abatement)
or Tax Return of the Company (other than extensions of time to file income Tax Returns that are obtained by the Company in the
ordinary course). As of the date of the Applicable Closing, the Company has not requested any extension of time within which to
file any Tax Return, which Tax Return has not since been filed.

 

(d)          As
of the date of the Applicable Closing, all Taxes that the Company is required by applicable Legal Requirements to withhold or collect,
including sales and use, goods and services, harmonized sales, value added and similar Taxes, and amounts required to be withheld
for Taxes of employees, have been duly withheld or collected and, to the extent required, have been timely remitted to the proper
Governmental Authorities.

 

    	 	34	 

     

    

 

(e)          The
charges, accruals and reserves for Taxes with respect to the Company reflected on the Financial Statements (excluding accruals
and reserves for deferred Taxes established to reflect timing differences between book and Tax income) are adequate to cover all
Taxes payable by the Company for all periods through the date of such Financial Statements, and such charges, accruals and reserves,
as adjusted for the passage of time and ordinary course business operations of the Company through the date of the Applicable Closing
are adequate to cover all Taxes payable by the Company for all periods through the date of the Applicable Closing. Since the Most
Recent Balance Sheet Date through the date of the Applicable Closing, none of the Company nor any of its Subsidiaries has made,
revoked or changed any election in respect of Taxes, adopted or changed any accounting method in respect of Taxes, settled or compromised
any audit, suit, proceeding, investigation, claim or other administrative proceeding or court proceeding relating to Taxes or Tax
Returns or filed any amended Tax Return.

 

(f)           As
of the date of the Investment Closing, the Tax Returns of the Company have been examined by any applicable taxing authorities through
the Tax year ending December 31, 2017.

 

(g)          As
of the date of the Applicable Closing, all assessments for Taxes payable by the Company with respect to completed and settled audits
or examinations or any concluded litigation have been timely paid in full.

 

(h)          As
of the date of the Applicable Closing, the Company has not granted to any Person any power of attorney that is currently in force
with respect to any Tax matter.

 

(i)           As
of the date of the Applicable Closing, no written claim has ever been made by a Governmental Authority in a jurisdiction where
the Company has not filed Tax Returns that the Company is or may be subject to taxation by that jurisdiction. Schedule 5.8(i)
sets forth, as of the date of the Applicable Closing, each jurisdiction (other than United States federal) in which the Company
files or has been required to file any Tax Return or is liable for any Taxes on a “nexus” basis. As of the date of
the Applicable Closing, no deficiencies for Taxes against the Company have been claimed, proposed, assessed or threatened in writing
by any Governmental Authority, except for deficiencies that have been paid or otherwise resolved. As of the date of the Applicable
Closing, there are no pending Proceedings relating to Taxes of the Company. As of the date of the Applicable Closing, no closing
agreement pursuant to Section 7121 of the Code (or any similar provision of state, local or foreign Legal Requirement) has been
entered into by or with respect to the Company.

 

(j)           As
of the date of the Applicable Closing, the Company (i) is not, nor has ever been a member of any consolidated, combined, affiliated
or unitary group of corporations for any Tax purposes and (ii) does not have any current or potential Liability for the Taxes of
any Person under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or foreign Legal Requirement),
as a transferee or successor, by Contract or otherwise. As of the date of the Applicable Closing, the Company is not a party to
any Tax sharing, Tax allocation, Tax indemnity or any similar agreements, arrangements, or practices (including any advance pricing
agreement, closing agreement or other similar written agreement relating to Taxes with any Governmental Authority) that remains
in effect, and no facts or circumstances exist as a result of which the Company is likely to become a party to or bound by, or
incur any Liability under, any such agreement, arrangement or practice.

 

    	 	35	 

     

    

 

(k)          As
of the date of the Applicable Closing, the Company is not subject to any rulings, or requests for rulings, or advance pricing agreements
or other agreements relating to any Tax matter with any Governmental Authority.

 

(l)           Within
the five years preceding the Applicable Closing, the Company has not, either as a “distributing corporation” or as
a “controlled corporation,” participated in a transaction intended to satisfy the requirements of Section 355 or Section
361 of the Code, nor has the Company otherwise engaged in a transaction which could constitute part of a “plan” or
 “series of related transactions” (within the meaning of Section 355(e) of the Code) in conjunction with the transactions
contemplated by this Agreement.

 

(m)          As
of the date of the Applicable Closing, the Company has not been a United States real property holding corporation within the meaning
of Section 897(c)(2) of the Code during the five (5) year-period ending on such date.

 

(n)          As
of the date of the Applicable Closing, the Company has never engaged or participated in (i) any “listed transaction”
within the meaning of Treasury Regulations Section 1.6011-4(b)(2) or (ii) any transaction that could give rise to (A) a reporting
obligation under Section 6111 of the Code or the Treasury Regulations thereunder, (B) a list maintenance obligation under
Section 6112 of the Code or the Treasury Regulations thereunder, (C) a disclosure obligation of a “reportable transaction”
under Section 6011 of the Code and the Treasury Regulations thereunder, or (D) any similar obligation under any predecessor
or successor Tax Legal Requirement or comparable state, local or foreign Tax Legal Requirement.

 

(o)          The
Company does not own any interest in an entity, or is a party to any contractual arrangement or joint venture or other arrangement,
that is or could be characterized as a partnership for federal income Tax purposes.

 

(p)          The
Company is not, nor ever has been, a party to a transaction or Contract that is in conflict with the Tax rules on transfer pricing
in any relevant jurisdiction.

 

(q)          The
Company has maintained, and made available to the Buyer, any documentation (including any applicable transfer pricing studies)
required in connection with any related party transactions in accordance with Sections 482 and 6662 of the Code and the Treasury
Regulations promulgated thereunder and any comparable provision of any other Tax Legal Requirements.

 

(r)          The
Company has not participated in an international boycott, as defined in Section 999 of the Code.

 

(s)          The
Company does not own any interest in any Person that is treated as a “passive foreign investment company” within the
meaning of Section 1297(a) of the Code.

 

(t)          The
Company has never (i) made an election under Section 1362 of the Code to be treated as an S corporation for federal income tax
purposes or (ii) made a similar election under any comparable provision of any Tax Legal Requirement. The Company has never been
a “personal holding company” within the meaning of Section 542 of the Code.

 

    	 	36	 

     

    

 

(u)          The
Company is not a party to any gain recognition agreement under Section 367 of the Code. The Company has not incurred (or been
allocated) an “overall foreign loss” as defined in Section 904(f)(2) of the Code that has not been previously recaptured
in full as provided in Sections 904(f)(1) and/or 904(f)(3) of the Code.

 

(v)         The
Company will not be required to include any item of income in, or exclude any Tax credit or item of deduction from, the calculation
of its Taxable income or Tax liabilities for any Taxable period (or any portion thereof) ending after the date of the Applicable
Closing, including as a result of: (i) any change in, or improper use of, any method of accounting of the Company before the Applicable
Closing or as a result of the transactions contemplated by this Agreement; (ii) any deferred intercompany gain or any excess loss
account described in Treasury Regulations under Section 1502 of the Code (or any corresponding or similar provision of state,
local or foreign Tax Legal Requirement) with respect to the Company; (iii) any “closing agreement” as described in
Section 7121 of the Code (or any corresponding or similar provision of state, local or foreign Tax Legal Requirement) executed
with respect to the Company on or prior to the date of the Applicable Closing; (iv) any installment sale or other open transaction
disposition made by the Company on or prior to the date of the Applicable Closing; (v) any prepaid amount received or deferred
revenue accrued by the Company on or prior to the date of the Applicable Closing; or (vi) Section 108(i) of the Code.

 

(w)          As
of the date of the Applicable Closing, except as set forth on Schedule 5.8(w), the Company has never undergone an “ownership
change” within the meaning of Section 382 of the Code.

 

(x)          The
Company has not been, nor will be, required to pay Tax on any untaxed foreign earnings pursuant to Section 965 of the Code.

 

Section 5.9          Litigation
and Other Proceedings; Orders. No Proceeding is or has ever been pending or, to the Company’s Knowledge, threatened by,
against, or affecting the Company or any of its assets before or by any court, arbitrator, panel or other Governmental Authority,
or which seeks to enjoin, restrain, or prohibit the Buyer in respect of the consummation of the transactions contemplated hereby.
Neither the Company nor the Company Assets is operating under or subject to any injunction, writ, temporary restraining order,
decree or any order of any nature by any Governmental Authority.

 

Section 5.10        No
Material Adverse Effect. Since the Most Recent Balance Sheet Date, (i) there has been no Event that has had, or could reasonably
be expected to result in, a Material Adverse Effect, (ii) the Company has conducted its business only in the ordinary course consistent
with past practice and (iii) there has been no action taken by the Company that, if taken during the period from the Signing
Date through the Acquisition Closing, would have constituted a breach of Section 9.1.

 

    	 	37	 

     

    

 

Section 5.11        Licenses
and Permits. The Company possesses all material Governmental Permits necessary for the conduct of its business (including all
Governmental Permits under the Federal Food, Drug and Cosmetic Act of 1938, as amended (the “FDCA”)). All such
Governmental Permits are all listed on Schedule 5.11. As of the Signing Date, the Company has not received written notice
that the Company is in violation of any term of any Governmental Permit or that any Governmental Authority intends to revoke, limit
or rescind any Governmental Permit related to the business of the Company. The business of the Company complies in all material
respects with the Governmental Permits. The consummation of the transactions contemplated by this Agreement or any Ancillary Agreement
will not result in the non-renewal, limitation, revocation or termination of any such Governmental Permit.

 

Section 5.12        Environmental
Matters. 

 

(a)          The
business of the Company has been conducted in material compliance with all applicable Environmental Laws. (i) There has been and
there is no release or presence of or exposure to Hazardous Substance at, on, under or from any property currently or formerly
leased or operated by the Company in violation of any Environmental Law, or that is reasonably anticipated to result in a Proceeding
arising under any Environmental Law (each such Proceeding, an “Environmental Claim”) or any requirement for
investigation or remediation, and (ii) there is no reasonable basis for any such Environmental Claim.

 

(b)          All
material Environmental Permits required under all applicable Environmental Laws for the continued operation of the business of
the Company have been obtained, are valid and are listed on Schedule 5.12.

 

(c)          The
Company (i) does not own or operate, or has ever owned or operated, any real property contaminated with any substance that
is subject to any Environmental Law, (ii) is not liable for any off-site disposal or contamination pursuant to any Environmental
Law, and (iii) has not received notice of any Environmental Claim.

 

Section 5.13        Governmental
Consents and Approvals.

 

The execution, delivery and performance
by the Company of this Agreement and the Ancillary Agreements and the consummation by the Company of the transactions contemplated
hereby and thereby do not and will not require any filing or registration with, notification to, or authorization, permit, license,
declaration, order, consent or approval of, or other action by or in respect of, any Governmental Authority other than as may be
required by the HSR Act.

 

Section 5.14        Intellectual
Property. 

 

(a)          Schedule 5.14(a)
sets forth an accurate and complete list of all Owned Intellectual Property, including, (i) a correct, current and complete categorical
description of the Know-How included in the Company Intellectual Property that is material to the Company's business or operations
as currently conducted and as planned to be conducted, and (ii) for each item listed that is Registered Owned Intellectual Property,
the title, application number, registration number, application date, issuance or registration date, country of registration, and
other pertinent information. All assignments of the Owned Intellectual Property to the Company have been properly executed, delivered
and recorded by the Company with the applicable Governmental Authority and none of the Owned Intellectual Property is subject to
any claims of joint ownership. All registrations set forth on Schedule 5.14(a) are valid, enforceable and in force, and
all applications set forth on Schedule 5.14(a) are pending and in good standing.

 

    	 	38	 

     

    

 

(b)          The
Company solely and exclusively owns all rights and interest in and has all title to the Owned Intellectual Property free and clear
of all Encumbrances, and has a valid and enforceable license to use all Licensed Intellectual Property, free and clear of all Encumbrances.
Each item of Company Intellectual Property will be owned or available for use by the Company immediately following any of the transactions
contemplated by this Agreement or any Ancillary Agreement and following the Acquisition Closing on identical terms and conditions
as it was prior to the Acquisition Closing. The Company Intellectual Property constitutes all Intellectual Property used in connection
with or otherwise necessary for the conduct of the business of the Company as conducted and as planned to be conducted, including
with respect to the activities contemplated by the Development Plan. The execution and delivery of this Agreement and the consummation
and completion of the transactions contemplated by this Agreement will not result in the alteration, loss or impairment of, or
payment of any additional amounts with respect to, require the consent of any Third Party in respect of, or otherwise adversely
affect any Company Intellectual Property or otherwise alter or impair the ownership of, or right of the Company to use, any of
the Company Intellectual Property.

 

(c)          All
of the Company Intellectual Property is subsisting and enforceable. To the Company’s Knowledge, there are no facts or circumstances
that would render (i) any of the Company Intellectual Property invalid or (ii) any Intellectual Property Agreements invalid or
unenforceable. The Company has not received a claim that the Company Intellectual Property or Intellectual Property Agreements
are invalid or unenforceable or challenging the ownership of any Owned Intellectual Property or right to use any Company Intellectual
Property, nor has any such claim been asserted in any pending or, to the Company’s Knowledge, threatened litigation or proceeding
before any Governmental Authority, and the Company is not aware of any facts or circumstances that could reasonably be expected
to give rise to any such claims. None of the Company Intellectual Property is subject to any pending or, to the Company’s
Knowledge, threatened claims or proceedings for infringement, misappropriation, re-examination, inter-partes review, opposition,
cancellation, dilution, revocation or any other violation of any Intellectual Property rights of any Third Party, and the Company
is not aware of any facts or circumstances that could reasonably be expected to give rise to any such claims or proceedings. None
of the Intellectual Property Agreements are subject to any pending or, to the Company’s Knowledge, threatened claims or proceedings
for breach, default, or any violation of any rights of any Third Party, and the Company is not aware of any facts or circumstances
that could reasonably be expected to give rise to any such claims or proceedings.

 

(d)          All
registration, application issuance, renewal, maintenance and other payments that are or have become due with respect to the Company
Owned Intellectual Property have been timely paid, all necessary renewal applications have been timely filed and all other steps
necessary for maintenance have been taken in a timely manner.

 

    	 	39	 

     

    

 

(e)          Each
Person (including each current and former employee, officer and director of the Company and each current and former independent
contractor of the Company) that was or is involved in the invention, conception, creation, formulation, development, design, modification,
and/or reduction to practice of any Owned Intellectual Property has executed a valid and binding written agreement expressly assigning
to the Company (and requiring the confidentiality of) all right, title and interest in and to, and including all applicable work
made for hire provisions related to, all Intellectual Property invented, created, formulated, developed, modified, conceived and/or
reduced to practice by such Person (collectively, the “IP Assignment Agreements”). No Person who has been involved
in the invention, conception, creation, formulation, development, design, modification, conception and/or reduction to practice
of any Owned Intellectual Property: (i) has any right, license, and claim or interest whatsoever in or with respect to any Owned
Intellectual Property or (ii) is in material violation of any IP Assignment Agreement.  Each Person that was or is involved
in the invention, conception, creation, formulation, development, design, modification, conception and/or reduction to practice
of any Owned Intellectual Property undertook such actions either (i) as a current or former employee, officer or director of the
Company within the scope of their employment or (ii) as a current or former independent contractor of the Company within the scope
of their engagement with the Company.

 

(f)          The
Company has taken reasonable steps in accordance with normal industry practice to maintain the confidentiality of the Confidential
Intellectual Property and to protect the proprietary nature of the Company Intellectual Property. None of the Confidential Intellectual
Property has been disclosed to any Person not bound, prior to such disclosure, by a written confidentiality agreement or IP Assignment
Agreement protecting the confidentiality thereof, and there has been no actual or alleged violation of such agreements with respect
to any Confidential Intellectual Property. No Proceeding relating to an improper use or disclosure, or breach in the security or
confidentiality, of any Confidential Intellectual Property has been initiated or threatened against the Company.

 

(g)          (i)
Neither the Company Intellectual Property (or any use thereof), nor the conduct of the business of the Company as currently and
formerly conducted, (and, to the Company’s Knowledge, as planned to be conducted), nor the products, processes and services
of the Company as currently and formerly offered (and, to the Company’s Knowledge, as planned to be offered), including the
Product, violates any license, agreement or Contract, or infringes, misappropriates or otherwise violates any Intellectual Property
owned by a Third Party and (ii) no suit, action or claim has been asserted, threatened or is or was pending concerning any claim
or position that the Company has infringed, misappropriated or violated or is currently infringing, misappropriating or violating
any Intellectual Property of a Third Party or is in breach or default under any Contract or Intellectual Property Agreement.

 

(h)          All
rights and licenses granted under or pursuant to all Intellectual Property Agreements are for purposes of Section 365(n) of the
United States Bankruptcy Code (the “Bankruptcy Code”) licenses to rights to “intellectual property”
as defined under the Bankruptcy Code.

 

(i)          To
the Company’s Knowledge, no Person (including any current or former employee or consultant of the Company) has infringed,
misappropriated or violated or is currently infringing, misappropriating or violating the Company Intellectual Property.

 

(j)          There
have been no material breaches of the Company’s or its service providers’ security procedures, systems, policies or
technologies or any material attempted or successful unauthorized incidents of access, use, disclosure, modification, or destruction
of information or interference with systems operations in any information system or database of the Company or any storing any
Company Intellectual Property or Personal Data, including any such breach or incident that required or requires notice to any Third
Party.

 

    	 	40	 

     

    

 

(k)          The
Company has at all times complied with (i) all Privacy Laws worldwide, including, the EU Data Protection Directive (Directive 95/46/EC),
the EU General Data Protection Regulation (Regulation (EU) 2016/679) and Health and Insurance Portability and Accountability Act
of 1996 (42 U.S.C. § 1320d) and (ii) all Privacy Agreements, and no Person has made any illegal or unauthorized use of any
Personal Data constituting Company Intellectual Property. The Privacy Agreements do not require the delivery of any notice to or
consent from any Person, or prohibit the unqualified transfer of Personal Data constituting Company Intellectual Property, in connection
with the execution, delivery or performance of this Agreement, or the consummation of any of the transactions contemplated hereby
and thereby.

 

(l)          The
Company is in compliance with the duty of candor obligations owed to the United States Patent & Trademark Office (“USPTO”)
required by 37 C.F.R. § 1.56 with respect to all Patent applications filed by the Company with the USPTO, and with all similar
Legal Requirements with respect to Patent applications filed outside the United States. Further, and in accordance with the Company’s
duty of candor, the Company has promptly notified the USPTO (and with respect to Patent applications filed outside the United States,
the applicable Government Authority) of all information material to the patentability of any claim of any Patent application, continuation
or continuation-in-part pending before the USPTO (or with respect to Patent applications filed outside the United States, the applicable
Government Authority).

 

(m)          None
of the software included in the Company Intellectual Property was developed using, includes, incorporates, links to or otherwise
requires the use of any open source, free software, or freeware of any kind. The Company has not used any open source, free software,
or freeware of any kind in a manner that does, will, or would reasonably be expected to, require the (i) disclosure or distribution
of any software included in the Company Intellectual Property in source code form or object code form; (ii) license or other provision
of any such software on a royalty-free basis; or (iii) grant of any patent license, non-assertion covenant, or other rights under
any Company Intellectual Property or rights to modify, make derivative works based on, decompile, disassemble, or reverse engineer
any portion of such software.

 

Section 5.15        Employee
Plans and Personnel Matters.

 

(a)          Schedule
5.15 lists each Company Employee Plan. Each Company Employee Plan has been maintained, operated and administered in compliance
in all material respects with its terms and the applicable Legal Requirements of the relevant jurisdiction (including the requirements
for any funding and Tax-favored treatment intended for such plan or applicable to plans of its type). No event, transaction or
condition exists or has occurred that is reasonably likely to result in the loss or material limitation of any such Tax-favored
treatment.

 

(b)          All
required reports and descriptions (including Form 5500 annual reports, summary annual reports and summary plans descriptions) have
been timely filed and/or distributed in accordance with the applicable requirement of ERISA and the Code with respect to each Company
Employee Plan. The requirements of COBRA have been met in all material respects with respect to each Company Employee Plan that
is subject to COBRA.

 

    	 	41	 

     

    

 

(c)          All
material contributions, premiums and benefit payments in respect of the Company Employees (and any spouse, beneficiary or dependent
thereof) under or in connection with the Company Employee Plans due prior to the Signing Date and the Acquisition Closing, as applicable,
have been timely made.

 

(d)          Each
Company Employee Plan that is intended to meet the requirements of a “qualified plan” under Section 401(a) of the Code
has received a determination from the Internal Revenue Service that such Company Employee Plan is so qualified, or with respect
to a prototype plan can rely on an opinion letter from the Internal Revenue Service to the effect that such Company Employee Plan
is so qualified, and the Company is not aware of any facts or circumstances that would reasonably be expected to adversely affect
the qualified status of such plan.

 

(e)          To
the Company’s Knowledge, there have been no acts or omissions by any party with respect to the Company Employee Plans which
have given rise to or may give rise to fines, penalties, taxes or related charges under applicable Legal Requirements for which
after the Signing Date or the Acquisition Closing, the Company or the Buyer could reasonably be expected to be liable.

 

(f)          There
are no actions, suits, claims (other than routine claims for benefits) or investigations pending or, to Company’s Knowledge,
threatened, involving any Company Employee Plan or the Company Assets for which the Company (after the Signing Date) or the Buyer
(after the Acquisition Closing) could reasonably be expected to incur any material Liability and no event, transaction or condition
exists or has occurred which could reasonably be expected to give rise to any such actions, suits, claims (other than routine claims
for benefits) or investigations. The Company has no material Liability with respect to any Plan other than for contributions, payments
or benefits due in the ordinary course of business under the current Company Employee Plans.

 

(g)         With
respect to each Company Employee Plan, the Company has made available to the Buyer correct and complete copies of each of the following:
(i) where the Company Employee Plan has been reduced to writing, the plan document together with all amendments; (ii) where the
Company Employee Plan has not been reduced to writing, a written summary of all material plan terms; (iii) where applicable, copies
of any trust agreements or other funding arrangements, insurance policies and contracts, and administration agreements and similar
agreements; (iv) copies of any summary plan descriptions, summaries of material modifications, employee handbooks and any other
material written communications relating to any Company Employee Plan; (v) in the case of any Company Employee Plan that is intended
to be qualified under Section 401(a) of the Code, a copy of the most recent determination, opinion or advisory letter from the
Internal Revenue Service; and (vi) in the case of any Company Employee Plan for which a Form 5500 is required to be filed, a copy
of the most recently filed Form 5500 (with all applicable attachments).

 

(h)          Other
than as required under COBRA, no Company Employee Plan provides health, life insurance or other welfare benefits to retired or
other terminated employees, officers, independent contractors, or directors of the Company (or any spouse, beneficiary or dependent
thereof), and the Company does not have any obligation to provide any such benefits..

 

    	 	42	 

     

    

 

(i)          No
Company Employee Plan is a “defined benefit plan” within the meaning of Section 3(35) of ERISA, a “multiemployer
plan” within the meaning of Section 3(37) or 4001(a)(3) of ERISA, or a “multiple employee plan” within the meaning
of Section 413(c) of the Code, and the Company does not have any Liability with respect to any such plan.

 

(j)          Neither
the execution of this Agreement or the Ancillary Agreements, nor the consummation of the transactions contemplated by this Agreement
or the Ancillary Agreements, will (either alone or in combination with another event): (i) increase the amount of compensation
or benefits otherwise payable under any Company Employee Plan; (ii) result in the acceleration of the time of payment, exercisability,
funding or vesting of any such benefits; or (iii) result in any payment (whether severance pay or otherwise) becoming due to, or
with respect to, any current or former employee, officer, independent contractor, or director of the Company.

 

(k)          No
payment or series of payments that would constitute a “parachute payment” (within the meaning of Section 280G of the
Code) has been made or will be made by the Company, directly or indirectly, to any current or former employee, officer, independent
contractor, or director in connection with the execution of this Agreement or the Ancillary Agreements or as a result of the consummation
of the transactions contemplated hereby.

 

(l)          Each
Company Employee Plan that is subject to Section 409A of the Code has been administered in compliance with the operational and
documentary requirements of Section 409A of the Code and the regulations thereunder, and no amounts under any such arrangement
is or has been subject to the interests and additional tax set forth under Section 409A(a)(1)(B) of the Code.
The Company does not have any obligation to gross up, indemnify or otherwise reimburse any current or former employee, officer,
independent contractor, or director of the Company for any Taxes, interest or penalties incurred in connection with any Company
Employee Plan (including without limitation any Taxes, interest or penalties incurred pursuant to Section 409A or 4999 of the Code).

 

(m)          All
of the personnel needed to run the business of the Company are employees or consultants of the Company, and no employees of the
Company are, or ever have been, covered by a collective bargaining agreement or represented by a union or other labor organization
or bargaining agent; and (ii) to the Knowledge of the Company, no union organizing efforts are being, or within the last three
years have been, conducted with respect to any employees of the Company.

 

(n)          The
Company has properly classified for all purposes (including for Tax purposes and for purposes of determining eligibility to participate
in any Plan) all Persons who have performed services for or on behalf of the Company and has properly withheld and paid all applicable
Taxes and made all required filings in connection with services provided by such Persons to the Company in accordance with such
classifications.

 

    	 	43	 

     

    

 

Section 5.16        Compliance
with Legal Requirements.  The Company is, and has been since its incorporation, in compliance in all material respects with
all Legal Requirements applicable to it. The Company has not received written notice from a Governmental Authority of any violations
with respect to Legal Requirements applicable to it, or any notice that any facility of the Company is not in material compliance
with applicable Legal Requirements or requires any material improvement, modification or alteration in order to lawfully continue
any aspect of the operations conducted at the facility. Neither the Company nor any of its respective directors or officers, or
to the Company’s Knowledge, any of the Company’s agents, employees or any other Persons acting on its behalf, has (i)
used any corporate or other funds for unlawful contributions, payments, gifts or entertainment, or made any unlawful expenditures
relating to political activity to government officials, candidates or members of political parties or organizations, or private
counterparties, or established or maintained any unlawful or unrecorded funds or taken any other action in violation of the Foreign
Corrupt Practices Act of 1977, as amended, or any other similar applicable Legal Requirement, (ii) paid, accepted, offered, promised,
authorized or received any unlawful contributions, payments, expenditures or gifts, or (iii) violated or operated in noncompliance
with any export restrictions, anti-boycott regulations, embargo regulations or other applicable domestic or foreign laws and regulations.

 

Section 5.17        Regulatory
and GxP Compliance.

 

(a)          The
Company (i) is and has been in compliance with (A) all applicable Legal Requirements relating to or promulgated by the FDA and
other Healthcare Regulatory Authorities and (B) all Healthcare Regulatory Authorizations, including all requirements of the FDA
and all other Healthcare Regulatory Authorities, in each case that are applicable to the Company, or by which any property, product,
filing, clinical trial, submission, registration, declaration, approval, practice or other asset of the Company is bound, governed
or affected and (ii) has held all Healthcare Regulatory Authorizations required for the conduct of its businesses.

 

(b)          All
reports, documents, claims and notices required or requested to be filed, maintained, or furnished to any Healthcare Regulatory
Authority by the Company, have been so filed, maintained or furnished and were complete and correct in all respects on the date
filed (or were corrected in or supplemented by a subsequent filing).

 

(c)          (i)
All preclinical and clinical studies or tests sponsored by the Company have been conducted in compliance with standard medical
and scientific research procedures and applicable Legal Requirements and GxP requirements (including Good Manufacturing Practices,
Good Pharmacovigilance Practices, and Good Clinical Practices requirements and Legal Requirements restricting the use and disclosure
of individually identifiable health information) and (ii) the Company has not received written notice from (A) the FDA or any other
Healthcare Regulatory Authority with respect to any ongoing clinical or pre-clinical studies or tests requiring the termination,
suspension or modification of such studies or tests or investigational product or (B) any Person regarding any breach or alleged
breach with respect to individually identifiable health information.

 

(d)          The
Company has not (i) made an untrue statement of a fact or fraudulent statement to the FDA or any other Healthcare Regulatory Authority,
(ii) failed to disclose a fact required to be disclosed to the FDA or any other Healthcare Regulatory Authority, (iii) committed
any other act, made any statement or failed to make any statement, that (in any such case) establishes a basis for the FDA to invoke
its Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities Final Policy or (iv) been the subject of any investigation
by the FDA pursuant to its Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities Final Policy. Neither the
Company nor any officer, employee, agent or clinical investigator of the Company has been suspended or debarred or convicted of
any crime or engaged in any conduct that could result in (a) debarment under 21 U.S.C. Section 335a or any other Legal Requirement
or (b) exclusion under 42 U.S.C. Section 1320a-7 or any other Legal Requirement.

 

    	 	44	 

     

    

 

(e)          As
to each product subject to the FDCA, or similar Legal Requirements in any non-United States jurisdiction, that is or is intended
to be developed, manufactured, tested, distributed or marketed by the Company (a “Medical Product”), each such
Medical Product is being developed, manufactured, tested, distributed and/or marketed in all respects in compliance with all applicable
requirements under the FDCA and similar Legal Requirements, including those relating to investigational use, pre-market clearance
or marketing approval to market a Medical Product, Good Manufacturing Practices, Good Distribution Practices, labeling, advertising,
record keeping, filing of reports and security.

 

(f)          The
Company has not received any notice or other communication from any Governmental Authority (A) contesting the premarket clearance
or approval of, the uses of or the labeling and promotion of any products of the Company or (B) otherwise alleging any violation
applicable to any Medical Product of any Legal Requirement. (i) No Medical Product is under consideration by the Company for recall,
withdrawal, suspension, seizure or discontinuance, or has been recalled, withdrawn, suspended, seized or discontinued and (ii)
no proceedings (whether completed or pending) seeking the recall, withdrawal, suspension, seizure or discontinuance of any Medical
Product are pending against the Company or any licensee of any Medical Product.

 

Section 5.18        Brokers.
Except as set forth on Schedule 5.18, no broker, finder or investment banker is entitled to any brokerage, finder’s,
opinion or other fee or commission in connection with the transactions contemplated by this Agreement and the Ancillary Agreements
based upon or arising from arrangements made on behalf of the Company and its Affiliate.

 

Section 5.19        No
Restrictions on the Transactions. Section 203 of the DGCL does not apply to the Company. There are no anti-takeover, “fair
price,” “moratorium,” “control share acquisition” or similar statute or regulation, restriction or
provision of the DGCL or the laws of any other jurisdiction, the certificate of incorporation or organizational regulations, or
other organizational or constitutive document or governing instruments of the Company that would prevent, impede or delay the consummation
of the transactions contemplated by this Agreement and the Ancillary Agreements, including the Stock Purchase Investment and the
Acquisition. There is no stockholder rights plan, “poison pill” or similar anti-takeover agreement or plan in effect
to which the Company is subject, party or otherwise bound. No further action by the Board of Directors of the Company is necessary
to approve the Transactions. As of the date of this Agreement, the Company does not have an open binding offer (other than this
Agreement) that would meet the criteria set forth in Section 9.3.

 

Section 5.20        Investigation.

 

(a)          The
Company and the Sellers acknowledge and agree that, except for the representations and warranties contained in this Agreement,
the Buyer does not make any other representations or give any other warranties, express or implied.

 

    	 	45	 

     

    

 

(b)          The
Company and the Sellers acknowledge and agree that in entering into this Agreement they have each relied solely on their own respective
investigation and the representations and warranties contained In this Agreement.

 

Article
6. 

REPRESENTATIONS AND WARRANTIES OF THE BUYER 

 

The Buyer hereby represents and warrants
to the Company as follows:

 

Section 6.1          Organization
of the Buyer; Due Authorization.

 

(a)          The
Buyer (i) is a corporation duly organized, validly existing and in good standing under the laws of Delaware, (ii) is
duly licensed and qualified to conduct its business in each jurisdiction where the nature of the properties owned, leased or operated
by it and the business transacted by it requires such licensing or qualification, except where any such failures to be so qualified
or licensed have not had, or are not reasonably likely to have, a material adverse effect on the ability of the Buyer to consummate
the Transactions and (iii) holds all necessary corporate power and authority to own, license and operate its assets and properties,
to conduct its business, to enter into this Agreement and the Ancillary Agreements, to perform its obligations hereunder and thereunder
and to consummate the transactions contemplated hereby and thereby, including the Transactions. This Agreement and the consummation
of the transactions contemplated hereby, the execution and delivery of this Agreement and the Ancillary Agreements by the Buyer,
the performance by the Buyer of its obligations hereunder and thereunder and the consummation by the Buyer of the transactions
contemplated hereby and thereby, have been duly authorized by all requisite action on the part of the Buyer, and no other proceedings
on the part of the Buyer are necessary to authorize the execution and delivery of this Agreement or the consummation by the Buyer
of the transactions contemplated hereby and thereby.

 

(b)          Each
of this Agreement and the Ancillary Agreements to which it is or will be a party has been or will be, as the case may be, duly
executed and delivered by the Buyer and (assuming due authorization, execution and delivery by the Company) constitutes or will
constitute a legal, valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with their respective
terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)          The
board of directors of the Buyer has unanimously adopted resolutions, prior to entry thereto, approving this Agreement and the transactions
contemplated by this Agreement and the Ancillary Agreements.

 

    	 	46	 

     

    

 

Section 6.2          No
Conflict. Assuming that all consents, approvals, authorizations and other actions have been obtained or made and any applicable
waiting period under the HSR Act has expired or been terminated, neither the execution or delivery by the Buyer of this Agreement
or any of the Ancillary Agreements, or the performance by the Buyer of its obligations under this Agreement or any of the Ancillary
Agreements, or the consummation of the transactions contemplated hereby or thereby will (a) result in any breach of any provision
of the Buyer’s certificate of incorporation and by-laws, each as amended from time to time, (b) result in any breach of,
require (with or without notice or lapse of time or both) any consent or notice or constitute a default (or give rise to any right
of purchase, termination, amendment, acceleration or cancellation) under, any contract or order or judgment to which the Buyer
is a party or by which it or its assets are bound or (c) violate any applicable Legal Requirement.

 

Section 6.3          Governmental
Consents. The execution and delivery of this Agreement by the Buyer does not, and the performance of this Agreement and the
Ancillary Agreements by the Buyer will not, require any consent, approval, authorization or other order of, action by, filing with
or notification to, any Governmental Authority other than compliance with and filings under the HSR Act.

 

Section 6.4          Financing
of the Transactions. On the date of the Acquisition Closing, the Buyer will have sufficient immediately available funds to
pay, in cash, the Acquisition Closing Purchase Price, and all other amounts payable by the Buyer pursuant to this Agreement and
the Ancillary Agreements or otherwise necessary to be paid by the Buyer to consummate the transactions contemplated hereby and
thereby.

 

Section 6.5          Litigation
and Other Proceedings; Orders. As of the Signing Date, no litigation, regulation, or legislation shall be pending or, to the
Buyer’s knowledge, overtly threatened by a Third Party which seeks to enjoin, restrain, or prohibit the Buyer in respect
of the consummation of the transactions contemplated hereby.

 

Section 6.6         Brokers.
 No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection
with the transactions contemplated by this Agreement and the Ancillary Agreements based upon or arising from arrangements made
on behalf of the Buyer and its Affiliates which would be payable by the Company.

 

Section 6.7          Investigation.

 

(a)          In
connection with the Buyer’s investigation of the Company and the Company Shares, Buyer has received from the Company certain
projections, forecasts and other planning and budget information for the Company. The Buyer acknowledges that there are uncertainties
inherent in attempting to make such projections, forecasts, plans and budgets, that the Buyer is familiar with such uncertainties,
that the Buyer is taking full responsibility for making its own evaluation of the adequacy and accuracy of all estimates, projections,
forecasts, plans and budgets so furnished to it, and that Buyer will not assert any claim against the Company and its Affiliates
and/or any of its directors, officers, employees or agents, respectively, or hold any such entities and/or Persons liable with
respect thereto.

 

(b)          Buyer
acknowledges and agrees that, except for the representations and warranties contained in this Agreement, the Company does not make
any other representations or give any other warranties, express or implied.

 

(c)          Buyer
acknowledges and agrees that in entering into this Agreement it has relied solely on its own investigation and the representations
and warranties contained in this Agreement.

 

    	 	47	 

     

    

 

Article
7. 

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

 

Each Seller hereby
severally represents and warrants to the Buyer as of the Signing Date and as of the date of the Acquisition Closing, as if such
representations and warranties were made as of the date of the Acquisition Closing, as follows:

 

Section 7.1          Organization
of Seller. 

 

(a)          If
such Seller is an entity, such Seller (i) is duly organized, validly existing and in good standing under the laws of its jurisdiction
and organization, (ii) is duly licensed and qualified to conduct its business in each jurisdiction where the nature of the
properties owned, leased or operated by it and the business transacted by it requires such licensing or qualification, except where
any such failures to be so qualified or licensed have not had, or are not reasonably likely to have, a material adverse effect
on the ability of such Seller to consummate the Transactions and (iii) holds all necessary corporate power and authority to
own, license and operate its assets and properties, to conduct its business, to enter into this Agreement and the Ancillary Agreements,
to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby, including
the Transactions. This Agreement and the consummation of the transactions contemplated hereby, the execution and delivery of this
Agreement and the Ancillary Agreements by such Seller, the performance by such Seller of its obligations hereunder and thereunder
and the consummation by such Seller of the transactions contemplated hereby and thereby, have been duly authorized by all requisite
action on the part of such Seller, and no other proceedings on the part of such Seller are necessary to authorize the execution
and delivery of this Agreement or the consummation by such Seller of the transactions contemplated hereby and thereby.

 

(b)          Each
of this Agreement and the Ancillary Agreements to which it is or will be a party has been or will be, as the case may be, duly
executed and delivered by such Seller and (assuming due authorization, execution and delivery by the Buyer) constitutes or will
constitute a legal, valid and binding obligation of such Seller, enforceable against such Seller in accordance with their respective
terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

 

Section 7.2           No
Conflict. Assuming that all consents, approvals, authorizations and other actions, and any applicable waiting period under
the HSR Act has expired or been terminated, neither the execution or delivery by such Seller of this Agreement or any of the Ancillary
Agreements, or the performance by such Seller of its obligations under this Agreement or any of the Ancillary Agreements, or the
consummation of the transactions contemplated hereby or thereby will (a) if such Seller is an entity, result in any breach of any
provision of such Seller’s organizational documents, as amended from time to time, (b) result in any breach of, require (with
or without notice or lapse of time or both) any consent or notice or constitute a default (or give rise to any right of purchase,
termination, amendment, acceleration or cancellation) under, any contract or order or judgment to which such Seller is a party
or by which it or its assets are bound or (c) violate any applicable Legal Requirement.

 

    	 	48	 

     

    

 

Section 7.3           Governmental
Consents. The execution and delivery of this Agreement by such Seller does not, and the performance of this Agreement and the
Ancillary Agreements by such Seller will not, require any consent, approval, authorization or other order of, action by, filing
with or notification to, any Governmental Authority other than compliance with and filings under the HSR Act.

 

Section 7.4          Title
to Stock. As of the Signing Date, such Seller is the record and beneficial owner of all of the Company Securities shown in
Schedule 5.3 to be held by such Seller, and such Seller has good and valid title to such securities free and clear of any
and all Encumbrances. As of immediately prior to the Acquisition Closing, such Seller is the record and beneficial owner of all
of the Acquisition Shares shown in Exhibit H (as amended pursuant to Section 4.2) and such Seller has the power and
authority to sell, transfer, assign and deliver such Acquisition Shares at the Acquisition Closing as provided in this Agreement,
and such delivery will convey to the Buyer good and marketable title to all such Acquisition Shares, free and clear of any and
all Encumbrances.

 

Section 7.5           Litigation
and Other Proceedings; Orders. No litigation, regulation, or legislation shall be pending or, to such Seller’s knowledge,
overtly threatened by a Third Party which seeks to enjoin, restrain, or prohibit such Seller in respect of the consummation of
the transactions contemplated hereby.

 

Section 7.6          Brokers.
 Except as set forth on Schedule 5.18, no broker, finder or investment banker is entitled to any brokerage, finder’s
or other fee or commission in connection with the transactions contemplated by this Agreement and the Ancillary Agreements based
upon or arising from arrangements made on behalf of such Seller.

 

Article
8. 

ADDITIONAL AGREEMENTS

 

Section 8.1          Completion
of the Acquisition as a Merger. If at the Acquisition Closing, the Acquired Shares delivered or to be delivered by the Sellers
constitute less than all of the equity interests of the Company, including equity interests of the Company to be issued upon exercise,
conversion or exchange of then-outstanding securities of the Company, other than equity interests of the Company beneficially owned
by the Buyer or an Affiliate of the Buyer, then, at the Buyer’s sole discretion, (a) the Buyer may proceed at its sole discretion
with the Acquisition pursuant to the terms of this Agreement, provided, however, that all payments from the Buyer
to the Representative for the benefit of and distribution to the Sellers pursuant to this Agreement shall be reduced accordingly
to address the equity interests, including equity interests of the Company to be issued upon exercise, conversion or exchange of
then-outstanding securities of the Company, that are not tendered at the Closing, or (b) upon written notice from the Buyer to
the Representative, the Buyer, the Company and the Representative shall, on behalf of itself and all of the Sellers, amend this
Agreement to provide that the acquisition of the Company by the Buyer shall proceed by way of an Agreement and Plan of Merger (the
 “Merger”), whereby all Options, RSUs and Warrants in respect of Company Shares and all Acquired Shares (including
Company Shares issued on the exercise of Options, RSUs or Warrants) are exercised, redeemed or purchased, as the case may be, on
the same terms and conditions as this Agreement. For the avoidance of doubt, the amount of the payment of the consideration to
be paid by the Buyer for each Acquired Share pursuant to the Merger shall be identical to the amount of the payment of the consideration
to be paid by the Buyer pursuant to this Agreement. If this Agreement is amended pursuant to this Section 8.1, each Seller
hereby appoints the Representative as its sole and exclusive attorney and proxy, with full power of substitution and resubstitution,
to vote and exercise all voting rights (to the full extent that such Seller is entitled to do so) with respect to the shares of
capital stock of the Company that are owned of record by such Seller, and any and all other shares or securities issued or issuable
in respect thereof, and to execute and deliver all consents, certificates, agreement or other documents, that the Buyer and the
Representative shall determine are necessary or desirable to authorize and approve the Merger. Upon each Seller’s execution
of this Agreement, any and all prior proxies given by such Seller with respect to the voting of any of its shares of capital stock
of the Company in connection with the authorization or approval of the Merger are hereby revoked and such Seller agrees not to
grant any subsequent proxies with respect to such matters. The proxy granted pursuant to this Section 8.1 is irrevocable,
is coupled with an interest, and is granted in consideration of the Buyer entering into this Agreement. Nothing in this Section
8.1 shall be deemed in any way to limit the Buyer’s rights otherwise under this Agreement.

 

    	 	49	 

     

    

 

Section 8.2          Completion
of the Acquisition as an Asset Sale. At the Acquisition Closing, at the Buyer’s sole discretion, upon written notice
from the Buyer to the Representative, the Buyer, the Company and the Representative shall, on behalf of itself and all of the Sellers,
amend this Agreement to provide that the acquisition of the Company by the Buyer shall proceed by way of an Asset Purchase Agreement,
whereby the Buyer shall acquire substantially all of the assets and liabilities of the Company on the same terms and conditions
as this Agreement. The amount of the payment of the consideration to be paid by the Buyer to the Company for the assets and liabilities
thereunder shall equal the aggregate amount of the consideration to be paid by the Buyer to the Sellers pursuant to this Agreement
increased to account for any negative corporate-level tax effects of an asset purchase transaction as compared with a stock purchase
transaction, such that the Sellers, after the distribution of such aggregate consideration from an asset purchase transaction to
them by the Company, receive the same aggregate consideration as is contemplated by this Agreement. Nothing in this Section
8.2 shall be deemed in any way to limit the Buyer’s rights otherwise under this Agreement.

 

Article
9. 

COVENANTS OF THE PARTIES

 

Section 9.1          Conduct
of Business of the Company. The Company shall, during the Pre-Closing Period, except as expressly required by this Agreement
or by applicable Legal Requirements or with the prior written consent of the Buyer (in the Buyer’s sole discretion), (i)
conduct its business in the ordinary course of business consistent with past practice, (ii) fully comply with its covenants and
obligations under any Contract to which it is a party and enforce its rights thereunder, (iii) use its reasonable best efforts
to preserve intact its business organization, to keep available the services of its current officers and employees, to preserve
its present goodwill and satisfactory relationships with Governmental Authorities, suppliers, licensors, and other Persons having
business relationships with it and (iv) comply with the Development Plan and the Budget. Without limiting the generality of the
foregoing, between the Signing Date and the Acquisition Closing, except as expressly required by this Agreement or by applicable
Legal Requirements, the Company shall not, without the prior written consent of the Buyer (in the Buyer’s sole discretion):

 

    	 	50	 

     

    

 

(a)          amend
or propose to amend its certificate of incorporation (including any certificate of designations) or by-laws;

 

(b)          establish
any Subsidiary or enter into any new line of business or division;

 

(c)          (i)
split, combine, or reclassify any Company Securities or issue or authorize the issuance of any other securities in respect of,
in lieu of, or in substitution for, any Company Securities, (ii) repurchase, redeem, or otherwise acquire, or offer to repurchase,
redeem, or otherwise acquire, directly or indirectly, any Company Securities, or (iii) declare, set aside, or pay any dividend
or distribution (whether in cash, stock, property, or otherwise) in respect of, or enter into any contract with respect to the
voting of, the Company Securities;

 

(d)          issue,
offer, sell, pledge, dispose of, or encumber any Company Securities, other than (i) issue Common Shares upon the exercise of any
equity award granted as of the Signing Date under any Company Employee Plan outstanding as of the Signing Date in accordance with
its terms or (ii) issue Common Shares prior to the Acquisition Closing upon the exercise of any equity award in accordance with
Section 4.2 and Section 9.7(b)(1);

 

(e)          acquire,
by merger, consolidation, acquisition of stock or assets, or otherwise, any business or Person or division thereof;

 

(f)          merge
or consolidate with any other Person, adopt or effect a plan of complete or partial liquidation, dissolution, restructuring, recapitalization,
or other reorganization, or commence or file any petition seeking liquidation, protection or other relief under any U.S. federal,
state or foreign bankruptcy, insolvency, receivership or similar Legal Requirement or the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official;

 

(g)          transfer,
license, sell, lease, or otherwise dispose of (whether by way of merger, consolidation, sale of stock or assets, or otherwise)
or pledge, encumber, or otherwise subject to any Encumbrance, any Company Assets (including any Company Intellectual Property);

 

(h)          incur,
assume or otherwise become directly or indirectly liable for, or modify, any Indebtedness other than trade account payables incurred
in the ordinary course of business consistent with past practice, or lend any money to any director, officer or employee of the
Company;

 

(i)           enter
into, renew or extend, amend or modify, or waive any rights under, any material contract in any material respect, or consent to
or initiate the termination of any material contract;

 

(j)           institute,
settle, waive its rights under or compromise any Proceeding other than any Proceeding brought by the Company against the Buyer
arising out of a breach or alleged breach of this Agreement by the Buyer;

 

    	 	51	 

     

    

 

(k)          enter
into any agreement, agreement in principle, letter of intent, memorandum of understanding, or similar Contract with respect to
any joint venture, strategic partnership, or alliance;

 

(l)           abandon,
allow to lapse, sell, assign, transfer, grant any security interest in, otherwise encumber or dispose of any Company Intellectual
Property, or grant any right or license to any Company Intellectual Property;

 

(m)         disclose
to another Person, or facilitate the use or transfer by or to another Person, of any Investigational New Drug, NDA, “regulatory
documents”, “essential documents” or any amendments thereto, any data or information contained in the files submitted
to the FDA, or any other information or data, in each case, related to the Product or improvements thereon except in the ordinary
course of business; or

 

(n)          agree
or commit to do any of the foregoing.

 

Section 9.2          Access
to Information Prior to the Acquisition Closing. During the Pre-Closing Period, the Company will, and will cause its officers,
employees, independent public accountants and other representatives, (i) to afford the Buyer, its Affiliates and their representatives
reasonable access to the officers, employees, agents, offices, other facilities, properties, data and books and records of the
Company, including financial and accounting information and working papers that the Buyer may from time to time reasonably request
and (ii) to furnish, as promptly as practicable, to the Buyer, its Affiliates and their representatives such additional information
regarding the Company as the Buyer, its Affiliates and their representatives may from time to time reasonably request (including
for the avoidance of doubt, reasonable access to information from Patheon regarding the Product); provided, however,
that such access will be provided upon reasonable notice, during normal business hours, and in a manner that will not unreasonably
interfere with the conduct of the business of the Company. Notwithstanding anything to the contrary in this Agreement, the Company
will not be required to disclose any information to the Buyer if such disclosure would (i) invalidate any attorney-client privilege
or (ii) contravene any applicable Legal Requirement or fiduciary duty; provided, however, that the Company shall
reasonably cooperate in seeking to find a way to allow disclosure of such information to the extent doing so would not reasonably
be likely to result in the violation of any such Legal Requirement or fiduciary duty, or reasonably be likely to cause such privilege
to be undermined with respect to such information (including the Company using commercially reasonable efforts to obtain any required
consent from any third party under any such Contract for the Buyer, its Affiliates and their representatives to access any such
information). The Company acknowledges that the Buyer may be subject to obligations under Legal Requirements and that the Buyer
may require the Company’s support and cooperation to comply with such statutory obligations. The Company hereby agrees to
reasonably cooperate with the Buyer and to take all actions necessary, including providing information, to enable the Buyer to
comply with such obligations. No investigation pursuant to this Section 9.2 or information provided, made available or delivered
pursuant to this Section 9.2 or otherwise, or any knowledge that any Person may have shall affect any representations or
warranties or conditions or rights contained in this Agreement or any Ancillary Agreement.

 

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		Section 9.3	No Solicitation. During the Pre-Closing Period,
the Sellers and the Company shall not (and shall cause their respect Affiliates not to), and shall not authorize or permit their
respective directors, officers, employees, agents, advisors, legal counsel, investment bankers and other representatives (the
foregoing Persons are referred to herein as “Representatives”) to, and shall instruct each of its Representatives
not to, directly or indirectly, (a) initiate, solicit, encourage or otherwise facilitate any inquiry, proposal, offer or discussion
with any party (other than the Buyer) concerning any merger, reorganization, consolidation, recapitalization, business combination,
liquidation, dissolution, share exchange, sale of stock, sale of material assets or similar business transaction involving the
Company or any division of the Company, (b) other than in the Company’s ordinary course of business including to licensors
and advisors who are under an obligation of confidentiality, furnish any non-public information concerning the business, properties
or assets of the Company or any division of the Company to any party (other than the Buyer), or (c) engage in discussions
or negotiations with any party (other than the Buyer) concerning any such transaction. The Sellers and the Company shall (and
shall cause their respective Affiliates to) cease immediately and cause to be terminated, and shall not authorize or knowingly
permit any of their respective Representatives to continue, and shall instruct each such Representatives to terminate, any and
all existing activities, discussions, or negotiations, if any, with any third party conducted prior to the Signing Date with respect
to any such transaction and shall use its reasonable best efforts to cause any such third party (and the Affiliates and Representatives
of the Sellers, the Company or their respective Affiliates) in possession of non-public information in respect of the Company
that was furnished by or on behalf of the Company or any of the Sellers to return or destroy (and confirm destruction of) all
such information. Notwithstanding the foregoing, it shall not be a violation of this Section 9.3 for the Company, acting
in good faith, to initiate, solicit, encourage or otherwise facilitate any inquiry, proposal, offer or discussion solely to the
extent that such inquiry, proposal, offer or discussion is limited to the purchase of any and all securities in the Company held
by the Sellers pursuant to Section 9.7(b)(5) as of the Signing Date.

 

Section 9.4          Further
Action.

 

(a)          During
the Pre-Closing Period, each of the parties to this Agreement, subject to the Buyer’s sole discretion as to the exercise
of its Purchase Option, will use all commercially reasonable efforts to take, or to cause to be taken, all appropriate action,
to do or cause to be done all things necessary, proper or advisable under applicable Legal Requirements, and to execute and deliver
such documents and other papers, as may be required to carry out the provisions of this Agreement and the Ancillary Agreements,
satisfy the conditions precedent contained herein for the benefit of the other parties hereto and consummate and make effective
the transactions contemplated by this Agreement and the Ancillary Agreements, including to use their commercially reasonable efforts
to obtain all requisite consents of or waivers from Third Parties.

 

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(b)          To
the extent that the execution or delivery by the Company of this Agreement or any of the Ancillary Agreements, or the performance
by the Company of its obligations under this Agreement or any of the Ancillary Agreements, or the consummation of the Stock Purchase
Investment, the Acquisition or any other transaction contemplated hereby or thereby causes or would cause a breach of any Company
Contract, permit or right or gives any Person other than the Company the ability to terminate any such Company Contract, permit
or right, the Company shall use reasonable commercial efforts to obtain as promptly as practicable the consent of any Third Parties
required to prevent or cure such breach or termination.

 

Section 9.5          Regulatory
and Other Authorizations. 

 

(a)          Subject
to the following sentence with respect to filings under the HSR Act, the Sellers, the Company and the Buyer will (i) use their
reasonable best efforts to obtain as promptly as reasonably practicable all authorizations, consents, orders, actions and approvals,
and to make all filings with and to give all notices to all Governmental Authorities required to consummate the transactions contemplated
by this Agreement, (ii) cooperate fully with the other parties hereto in promptly seeking to obtain all such authorizations, consents,
orders, actions and approvals and to make all such filings and give such notices and (iii) provide such other information to any
Governmental Authority as such Governmental Authority may reasonably request in connection therewith. Following the exercise of
the Buyer’s Purchase Option, each party hereto agrees to make as promptly as possible (but in no event later than ten (10)
Business Days after such exercise), any required filings under the HSR Act with respect to the Acquisition and to supply as promptly
as reasonably practicable to the appropriate Governmental Authorities any information and documentary material that may be reasonably
requested in connection with such HSR Act filings. Each of the Company and the Buyer will pay half of any fees associated with
any filings under the HSR Act in connection with this Agreement. The Company will pay all other fees or make other payments provided
for under Legal Requirements to any Governmental Authority in order to obtain any such authorizations, consents, orders or approvals.

 

(b)          Notwithstanding
any provision of this Agreement to the contrary, in no event shall the Buyer or any of its Affiliates be required to agree to divest,
abandon, license, hold separate or take similar action with respect to any assets of the Company or the Buyer or any Affiliate
thereof.

 

(c)          During
the Pre-Closing Period, (1) the Company and the Buyer will each promptly notify the other party of any communication that it or
any of its Affiliates receives from any Governmental Authority relating to the matters that are the subject of this Agreement and
permit, when practicable, the other party to review in advance any proposed communication by such party to any Governmental Authority,
(2) neither the Company nor the Buyer will agree to participate in any meeting with any Governmental Authority in respect of any
filings, investigation (including any settlement of the investigation), litigation, or other inquiry until it consults with the
other party in advance and, to the extent permitted by such Governmental Authority, gives the other party the opportunity to attend
and participate at such meeting, (3) the Company and Buyer will coordinate and cooperate fully with each other in exchanging such
information and providing such assistance as the other party may reasonably request in connection with the foregoing and in seeking
early termination of any applicable waiting periods, including under the HSR Act and (4) the Company and the Buyer will provide
each other with copies of all correspondence, filings or communications between them or any of their representatives, on the one
hand, and any Governmental Authority or members of its staff, on the other hand, with respect to this Agreement and the transactions
contemplated by this Agreement; provided, however, that materials may be redacted (w) to remove references concerning
the valuation of the Company Shares or the business of the Company, (x) as necessary to comply with contractual arrangements, (y)
as necessary to address reasonable privilege or confidentiality concerns and (z) as necessary to address competitive or regulatory
concerns; however, both parties shall assess on a case-by-case basis in good faith whether the redacted information may be exchanged
between outside competition counsel for the purpose of any merger control proceedings.

 

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(d)          The
Buyer and the Company will, or will cause their respective Affiliates to, notify their respective employees in respect of whom
notification is required under applicable Legal Requirements or by contract of the transactions contemplated by this Agreement
and the Ancillary Agreements.

 

Section 9.6          Notifications.

 

During the Pre-Closing Period or at any
time following the written request of another party hereto, each party hereto will promptly notify the other party (provided that
notice to or from the Representative shall be deemed notice to or from all Sellers) in writing of any fact, change, condition,
circumstance or occurrence or nonoccurrence of any event of which it is aware that will or is reasonably likely to result in any
of the conditions for the benefit of another party set forth in Article 10, as applicable, of this Agreement becoming incapable
of being satisfied; provided, however, that the delivery of any notice pursuant to this Section 9.6 will not
limit or otherwise affect the representations, warranties, covenants or agreements of the parties (or remedies with respect thereto)
or the conditions to the obligations of the parties under this Agreement.

 

Section 9.7          Limitation
on Purchases and Sales of Common Shares.

 

(a)          Except
as provided in Section 9.7(b), except for the Investment Shares, during the Pre-Closing Period, neither the Company, the
Sellers, nor the Buyer shall issue (in the case of the Company), buy, sell or otherwise subject to a security interest, pledge,
hypothecation, mortgage or lien, (or enter into any hedging arrangement or derivative transaction with respect to) any Company
Shares (or any other securities of the Company), nor shall any of them register, request registration of or take any action to
begin the process of registering Company Shares for sale pursuant to a registration statement filed with the SEC.

 

(b)          The
restrictions in Section 9.7(a) shall not apply to:

 

(1)          the
grant after the Signing Date of equity awards under the Company’s 2017 Stock Incentive Plan that are available and unissued
as of the Signing Date in the aggregate amount set forth on Schedule 9.7(b); provided that any recipient of such equity
award shall be required to become a party to this Agreement by executing and delivering the Adoption Agreement attached to this
Agreement as Exhibit J (the “Adoption Agreement”), upon which such Person shall thereafter be deemed
a Seller for all purposes under this Agreement (including Section 4.2);

 

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(2)          transfers
of Company Shares to the Company as forfeitures to satisfy tax withholding and remittance obligations of the applicable equityholder
in connection with the vesting or exercise of equity awards granted pursuant to any Company Employee Plan, or pursuant to a net
exercise or cashless exercise by the applicable equityholder of outstanding equity awards pursuant to any Company Employee Plan;

 

(3)          transfers
of any equity of the Company by any Person (other than the Company) to an Affiliate of such Person; provided that any recipient
of such equity shall be required to become a party to this Agreement by executing and delivering the Adoption Agreement, upon which
such Person shall thereafter be deemed a Seller for all purposes under this Agreement;

 

(4)          the
transfer of any equity of the Company by gift, by will or intestate succession, or pursuant to a court approved divorce settlement;
provided that any recipient of such equity shall be required to become a party to this Agreement by executing and delivering the
Adoption Agreement, upon which such Person shall thereafter be deemed a Seller for all purposes under this Agreement; and

 

(5)          the
sale by Sellers of Common Shares during the 90 day-period beginning on the Signing Date on the same terms and conditions as the
Stock Purchase Investment to purchasers who do not conduct business in the biopharmaceutical industry; provided that any recipient
of such Common Shares shall be required to become a party to this Agreement by executing and delivering the Adoption Agreement,
upon which such Person shall thereafter be deemed a Seller for all purposes under this Agreement; provided further, that the parties
hereto acknowledge that any sale by Fortress is subject to the co-sale rights of Columbia set forth in the Columbia SPA.

 

Section 9.8          Directors’
and Officers’ Indemnification and Insurance.

 

(a)          The
Buyer agrees that all rights to indemnification, advancement of expenses and exculpation by the Company now existing in favor of
each Person who is now, or has been at any time prior to the Signing Date or who becomes prior to the Acquisition Closing an officer
or director of the Company (each an “Indemnified Person”) as provided in the certificate of incorporation (including
any certificate of designations) or by-laws of the Company, in each case as in effect on the Signing Date, or pursuant to any other
contracts in effect on the Signing Date, shall survive the Acquisition Closing and shall remain in full force and effect in accordance
with their terms, and, in the event that any proceeding is pending or asserted or any claim made during such period, until the
final disposition of such proceeding or claim.

 

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(b)          For
six (6) years after the Acquisition Closing, to the fullest extent permitted under applicable law, the Buyer and the Company (the
 “Indemnifying Persons”) shall indemnify, defend, and hold harmless each Indemnified Person against all losses,
claims, damages, liabilities, fees, expenses, judgments, and fines arising in whole or in part out of actions or omissions in their
capacity as such occurring at or prior to the Acquisition Closing (including in connection with the transactions contemplated by
this Agreement), and shall reimburse each Indemnified Person for any legal or other expenses reasonably incurred by such Indemnified
Person in connection with investigating or defending any such losses, claims, damages, liabilities, fees, expenses, judgments,
and fines as such expenses are incurred, subject to the Company’s receipt of an undertaking by such Indemnified Person to
repay such legal and other fees and expenses paid in advance if it is ultimately determined in a final and non-appealable judgment
of a court of competent jurisdiction that such Indemnified Person is not entitled to be indemnified under applicable Legal Requirements;
provided, however, that the Buyer and the Company will not be liable for any settlement effected without the Buyer’s
prior written consent (which consent shall not be unreasonably withheld, conditioned, or delayed).

 

(c)          The
Company shall, and the Buyer shall cause the Company to: (i) maintain in effect for a period of six (6) years after the Acquisition
Closing, if available, the current policies of directors’ and officers’ liability insurance maintained by the Company
immediately prior to the Acquisition Closing (provided, that the Company may substitute therefor policies, of at least the
same coverage and amounts and containing terms and conditions that are not less advantageous to the directors and officers of the
Company when compared to the insurance maintained by the Company as of the Signing Date); or (ii) obtain as of the Acquisition
Closing “tail” insurance policies with a claims period of six (6) years from the Acquisition Closing with at least
the same coverage and amounts and containing terms and conditions that are not less advantageous to the directors and officers
of the Company, in each case with respect to claims arising out of or relating to events which occurred before or at the Acquisition
Closing (including in connection with the transactions contemplated by this Agreement); provided, however, that in
no event will the Buyer or the Company be required to expend an annual premium for such coverage in excess of 200 percent of the
last annual premium paid by the Company for such insurance prior to the Signing Date, which amount is determined in accordance
with Schedule 9.8 (the “Maximum Premium”). If such insurance coverage cannot be obtained at an annual
premium equal to or less than the Maximum Premium, the Company will obtain, and Buyer will cause the Company to obtain, that amount
of directors’ and officers’ insurance (or “tail” coverage) obtainable for an annual premium equal to the
Maximum Premium.

 

(d)          The
obligations of the Buyer and the Company under this Section 9.8 shall survive the consummation of the Acquisition and shall
not be terminated or modified in such a manner as to adversely affect any Indemnified Person to whom this Section 9.8 applies
without the consent of such affected Indemnified Person (it being expressly agreed that the Indemnified Persons to whom this Section
9.8 applies shall be third party beneficiaries of this Section 9.8, each of whom may enforce the provisions of this
Section 9.8).

 

(e)          In
the event that, after the Buyer, the Company or any of their respective successors or assigns: (i) consolidates with or merges
into any other Person and shall not be the continuing or surviving corporation or entity in such consolidation or merger; or (ii)
transfers all or substantially all of its properties and assets to any Person, then, and in either such case, proper provision
shall be made so that the successors and assigns of the Buyer or the Company, as the case may be, shall assume all of the obligations
set forth in this Section 9.8. The agreements and covenants contained herein shall not be deemed to be exclusive of any
other rights to which any Indemnified Person is entitled, whether pursuant to applicable Legal Requirements, Contract, or otherwise.
Nothing in this Agreement is intended to, shall be construed to or shall release, waive, or impair any rights to directors’
and officers’ insurance claims under any policy that is or has been in existence with respect to the Company or its officers,
directors, and employees, it being understood and agreed that the indemnification provided for in this Section 9.8 is not
prior to, or in substitution for, any such claims under any such policies.

 

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Section 9.9          Anti-Dilution.
If during the Pre-Closing Period, either the Sellers or the Company take any action (whether or not permitted by this Agreement)
that would reduce the Buyer’s equity interest in the Company below 19.9% of the Fully Diluted Capitalization as of such time,
then the Company shall issue the requisite number of Class B Preferred Shares to the Buyer to increase the Buyer’s equity
interest in the Company to 19.9% of the Fully Diluted Capitalization.

 

Section 9.10        Tax
Matters.

 

(a)          Transfer
Taxes arising from the Acquisition shall be borne by the Sellers. “Transfer Taxes” means all sales, use,
real property transfer, real property gains, transfer, stamp, registration, documentary, recording or similar Taxes, together with
any interest thereon, penalties, fines, costs, fees or additions to Tax. If the Buyer is required to file any Tax Return related
to Transfer Taxes, the Buyer shall file such Tax Return and pay any Transfer Taxes and the applicable Sellers shall reimburse the
Buyer for its share of Transfer Taxes within ten (10) days of written request.

 

(b)          At
or prior to the Acquisition Closing, the Company shall deliver to the Buyer (or its designee) a certificate(s), duly executed and
acknowledged, in form and substance reasonably satisfactory to the Buyer, certifying that transaction is exempt from withholding
under Section 1445 of the Code in accordance with Treasury Regulations under Sections 897 and 1445 of the Code, together with evidence
reasonably satisfactory to the Buyer that the Company has provided notice, if applicable, to the Internal Revenue Service in accordance
with the provisions of Treasury Regulations Section 1.897-2(h)(2). If the Buyer (or its designee) does not receive the certification
and evidence of filing of the notice as described above at or prior to the Acquisition Closing, the Buyer shall be permitted to
withhold from the payments to be made pursuant to this Agreement any required withholding Tax under Section 1445 of the Code.

 

(c)          During
the Pre-Closing Period: (i) the Company shall prepare and timely file, or cause to be prepared and timely filed, all Tax Returns
of the Company that are required to be filed prior to or on the date of the Acquisition Closing and such Tax Returns shall be complete
and correct in all material respects and shall be prepared in a manner consistent with past practices of the Company and that does
not distort taxable income; provided that no such Tax Returns shall be filed with any Governmental Authority without the
Buyer’s prior written consent; (ii) the Company shall timely pay all Taxes due and payable in respect of such Tax Returns,
except for Taxes that are being contested in good faith through appropriate proceedings and for which appropriate reserves have
been established on the books of the Company; (iii) the Company shall promptly notify the Buyer of written or, to the knowledge
of the Company, unwritten notice of any Tax Proceeding pending against or with respect to the Company and will not settle or compromise
any such Tax Proceeding without the Buyer’s prior written consent; and (iv) the Company shall not, without the prior written
consent of the Buyer, make, revoke or change any Tax election, adopt or change (or request with any Governmental Authority to change)
any material aspect of any Tax accounting method or period, file any amended Tax Return, enter into any closing agreement or settlement,
settle or compromise any Tax claim or assessment, surrender any right to claim a refund of Taxes, consent to any extension or waiver
of the statute of limitations period applicable to any Tax claim or assessment, or take any other action or omit to take any reasonable
action, if any such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action or omission
could have the effect of increasing the Tax liability of the Buyer or any of its Affiliates (including, after the Closing, the
Company) or reducing any net operating loss, net capital loss, investment Tax credit, foreign Tax credit, charitable deduction
or any other credit or Tax attribute which could reduce Taxes (including, without limitation, deductions and credits related to
alternative minimum Taxes) of the Buyer or any of its Affiliates (including, after the Closing, the Company), without the prior
written consent of the Buyer.

 

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(d)        All
Taxes of the Company relating to any Tax period that begins on or before and ends after the date of the Acquisition Closing (such
Tax period, a “Straddle Period”) shall be apportioned to, and be the responsibility of, the Sellers as follows:
(i) real, personal and intangible property taxes (“Property Taxes”) for the portion of the Straddle Period ending
on (and including) the date of the Acquisition Closing shall be equal to the amount of such Property Taxes for the entire Straddle
Period multiplied by a fraction, the numerator of which is the number of days during the Straddle Period that are in the portion
of the Straddle Period ending on (and including) the Closing Date and the denominator of which is the total number of days in the
Straddle Period; and (ii) Taxes (other than Property Taxes) for the portion of the Straddle Period shall be computed as if such
taxable period ended as of the close of business on the date of the Acquisition Closing, provided that exemptions, allowances,
deductions that are calculated on an annual or other periodic basis (including, but not limited to, depreciation and amortization
deductions) shall be allocated between the period ending as of the close of business on the date of the Acquisition Closing and
the period after the date of the Acquisition Closing in proportion to the number of days in each such period. For purposes of allocating
income or loss to a Tax period (or portion thereof, if a Straddle Period) ending on or before the date of the Acquisition Closing,
in the case of any Taxes attributable to the ownership of any equity interest in any partnership or other “flow-through”
entity, the “flow-through” income or loss attributable to an equity interest in such “flow-through” entity
shall be determined as if a taxable period of such partnership or other “flow-through” entity ended as of the close
of business on the date of the Acquisition Closing.

 

(e)         Any
and all Tax sharing, Tax allocation, Tax indemnity or similar agreements, arrangements, or practices (including any advance pricing
agreement, closing agreement or other similar written agreement relating to Taxes with any Governmental Authority) to which the
Company is a party or otherwise subject shall be terminated as of the date of the Acquisition Closing and after that date none
of the Buyer or any Affiliate of the Buyer, including the Company, shall be bound thereby, have any liability thereunder, or be
obligated to make any payment thereunder.

 

(f)           On
or before the date of the Acquisition Closing, the Company and the Representative shall provide the Buyer, and any other Person
designated by the Buyer, the information described under Treasury Regulations Section 1.6045A-1 with respect to the Company securities
being acquired pursuant to the Acquisition, including (i) whether or not a particular security is a “covered security”
under the applicable Treasury Regulations and (ii) if a security is a “covered security”, each security holder’s
date of acquisition of, and cost basis in, the applicable security, and any other information that is required, or reasonably requested,
by Buyer or its designee to comply with the Buyer or its designee’s tax reporting obligations under the Code and Treasury
Regulations, including IRS Form 1099-B reporting requirements.

 

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(g)          The
Buyer, the Sellers and the Representative, as the case may be, shall reasonably cooperate, and shall cause their respective Affiliates,
directors, officers, employees, agents, auditors and other representatives to reasonably cooperate, in preparing and filing all
Tax Returns and in resolving all disputes and audits with respect to all taxable periods relating to Taxes, including by maintaining
and making available to each other all records reasonably necessary in connection with Taxes and making employees available on
a mutually convenient basis to provide additional information or explanation of any material provided hereunder or to testify at
proceedings relating to such matters. The Representative further agrees that (i) if the Buyer determines that IRS Form 1099-B or
IRS Form 1099-INT reporting is required in connection with the transactions contemplated by this Agreement, the Representative
shall provide such information and assistance to the Buyer as is required for any such Forms to be properly completed and timely
issued, and (ii) the Representative shall not undertake any tax reporting on IRS Form 1099-B or IRS Form 1099-INT with respect
to the transactions contemplated by this Agreement without prior consultation and approval of the Buyer, in which case the form
and substance of such reports shall be subject to the written approval of the Buyer prior to issuance.

 

Section 9.11        Payoff
Letters. The Company shall obtain, no later than two (2) Business Days prior to the Acquisition Closing, payoff letters (the
 “Payoff Letters”) in form reasonably satisfactory to Buyer from the holders (or the agents for such holders)
of any Indebtedness of the Company as of immediately prior to the Acquisition Closing, and all documents related thereto (including
any credit agreements, pledge agreements, security agreements, notes and guarantees) and all Encumbrances securing such Indebtedness
shall be released or terminated upon the repayment of such Indebtedness in accordance with the terms of such payoff letters. Each
Payoff Letter shall set forth the principal amount of the obligation, any prepayment premiums or fees or termination fees with
respect thereto, any accrued interest thereon and any expense reimbursement or other amounts due in respect thereof, shall provide
wire instructions and shall provide for the release of, or authorize the Company to release, all Encumbrances associated with such
Indebtedness and the termination of all other obligations associated therewith upon the payment of such outstanding amounts.

 

Section 9.12        Additional
Investor Rights. If the Company issues securities after the Signing Date that (a) have rights, preferences or privileges that
are more favorable than the terms of the Class B Preferred Shares or (b) provide the applicable investors other contractual terms
such as registration rights, the Company shall provide substantially equivalent rights to the Buyer with respect to the Class B
Preferred Shares, subject to the Buyer’s execution of any documents, including, if applicable, investor rights, co-sale,
voting, and other agreements, executed by the investors purchasing such securities.

 

Section 9.13        Patent
Application Prosecutions. During the Pre-Closing Period, the Company shall keep the Buyer reasonably informed with regard to
the prosecution of any Company Patent applications (including submitting for discussion and comments any preparatory documents
in relation thereto) and shall consult with and consider in good faith the Buyer’s comments, requests and suggestions with
respect to such documents and strategies for prosecuting any such Company Patent applications.

 

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Section 9.14        Key
License Agreement. During the Pre-Closing Period, the Company will maintain the Key License Agreement in full force and effect
and shall not breach or default on any of the provisions set forth therein. The Company will not amend the Key License Agreement
without the advance written consent of the Buyer.  The Company will promptly inform the Buyer in the event of any breach or
suspected breach of the Key License Agreement by any party.

 

Section 9.15        Information
Rights.

 

(a)          As
soon as practicable, but in any event within ninety (90) days after the end of each fiscal year of the Company, the Company shall
provide the Buyer (i) a balance sheet as of the end of such year, (ii) statements of income and of cash flows for such year, and
(iii) a statement of stockholders’ equity as of the end of such year, all such financial statements audited and certified
by independent public accountants of nationally recognized standing.

 

(b)          As
soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each
fiscal year of the Company, the Company shall provide the Buyer unaudited statements of income and cash flows for such fiscal quarter,
and an unaudited balance sheet and a statement of stockholders’ equity as of the end of such fiscal quarter, all prepared
in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments; and (ii)
not contain all notes thereto that may be required in accordance with GAAP).

 

Article
10. 

CONDITIONS PRECEDENT, WAIVER, AND TERMINATION PROVISIONS OF THE ACQUISITION

 

Section 10.1       Conditions
Precedent to Performance of the Parties. The obligations of the parties to consummate the Acquisition are subject to fulfillment,
at or prior to the Acquisition Closing, of each of the following conditions:

 

(a)          Exercise
of Purchase Option: The Buyer shall have exercised its Purchase Option pursuant to Section 2.3;

 

(b)          Regulatory
Requirements: Any applicable waiting period (and any extension thereof) under the HSR Act will have expired or terminated early;
and

 

(c)          No
Order: No Governmental Authority will have enacted, issued, enforced or entered into any statute, rule, regulation, injunction
or other order that is in effect and has the effect of making the Acquisition illegal or otherwise restraining or prohibiting its
consummation.

 

Section 10.2        Conditions
Precedent to Performance of the Sellers and the Company. The obligations of the Sellers and the Company to consummate the Acquisition
will be subject to the fulfillment or written waiver, at or prior to the Acquisition Closing, of the following conditions:

 

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(a)          Agreements
and Covenants: The agreements and covenants contained in this Agreement and the Ancillary Agreements to be complied with by the
Buyer on or before the Acquisition Closing shall have been complied with in all material respects; and

 

(b)          Accuracy
of Representations and Warranties: The representations and warranties of the Buyer contained in Article 6 shall be true
and correct in all material respects as of the Acquisition Closing with the same effect as if made at and as of such time (except
to the extent expressly made as of an earlier date, in which case as of such date).

 

Section 10.3      Conditions
Precedent to Performance of Buyer. The obligations of the Buyer to consummate the Acquisition will be subject to the fulfillment
or written waiver, at or prior to the Acquisition Closing, of the following conditions:

 

(a)          Agreements
and Covenants: The agreements and covenants contained in this Agreement and the Ancillary Agreements (other than those to be performed
by the Buyer) to be complied with on or before the Acquisition Closing shall have been complied with in all material respects;

 

(b)          Accuracy
of Representations and Warranties: (x) the Fundamental Representations shall be true and correct in all respects as of the Signing
Date and as of the date of the Acquisition Closing with the same effect as if made at and as of such time (except to the extent
expressly made as of an earlier date, in which case as of such date), and (y) all other representations and warranties of the Company
and the Sellers contained in this Agreement shall be true and correct (disregarding all qualifications and exceptions contained
therein relating to materiality, Material Adverse Effect, or any similar standard or qualification) in all material respects as
of the Signing Date and as of the date of the Acquisition Closing with the same effect as if made at and as of such time (except
to the extent expressly made as of an earlier date, in which case as of such date);

 

(c)          Material
Adverse Effect: Since the Signing Date, no Material Adverse Effect shall have occurred and no event shall have occurred that is
reasonably likely to have a Material Adverse Effect;

 

(d)          The
Buyer shall have received a certificate dated the date of the Acquisition Closing and signed by the Representative (on behalf of
the Sellers) and an authorized officer of the Company, in his or her capacity thereof, certifying that the conditions specified
in Sections 10.3(a)-(c) have been satisfied;

 

(e)          The
Ancillary Agreements containing rights or obligations surviving the Acquisition Closing shall be in full force and effect;

 

(f)           The
Company shall have delivered to the Buyer a resignation from each member of the Company Board and all officers of the Company,
unless otherwise specified by the Buyer no later than three (3) Business Days prior to the Acquisition Closing;

 

(g)          The
release, in the form attached as Exhibit K hereto, shall have been duly executed by the Sellers and the Company and delivered
to the Buyer;

 

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(h)          All
authorizations, consents or approvals of any and all Governmental Authorities (except as contemplated by Section 10.1(b))
and third parties necessary for the consummation of the transactions contemplated hereby shall have been obtained and be in full
force and effect;

 

(i)           The
Buyer shall have received the Payoff Letters in accordance with Section 9.11;

 

(j)           The
Sellers shall have delivered to the Buyer a certificate dated as of the Acquisition Closing pursuant to Treasury Regulations Section
1.1445-2(b) in form and substance reasonably satisfactory to the Buyer, certifying that none of them are foreign persons within
the meaning of Section 1445 of the Code;

 

(k)          The
Company shall have delivered to the Buyer a certificate evidencing the good standing of the Company in its jurisdiction of incorporation
as of a recent date;

 

(l)           The
Company shall have delivered to the Buyer certificates evidencing the qualification of the Company to do business as a foreign
corporation as of a recent date in each jurisdiction outside of its jurisdiction of organization where it conducts business; and

 

(m)          The
Company and the Sellers shall have delivered to the Buyer all other certificates, documents and instruments that are reasonably
requested by the Buyer.

 

Section 10.4       Waiver;
Determination of Satisfaction of Conditions. The Representative may waive all or any of the conditions set forth in Section
10.2 and the Buyer may waive all or any of the conditions set forth in Section 10.3, but neither the Buyer nor the Representative
may waive the conditions set forth in Section 10.1.

 

Section 10.5        Termination
of the Acquisition.

 

(a)          The
Acquisition may be terminated at any time after the Buyer’s exercise of the Purchase Option prior to the Acquisition Closing:

 

(1)          by
the Buyer for any reason and in its sole discretion;

 

(2)          by
the Representative if the Acquisition Closing has not occurred within six (6) months after the exercise by the Buyer of its Purchase
Option (the “Termination Date”) because the conditions in Sections 10.1, 10.2 or 10.3 have
not been met (provided, that the right to terminate this Agreement pursuant to this Section 10.5(a)(2) shall
not be available to the Representative if the Company’s or any Seller’s breach of this Agreement has materially contributed
to the failure of the Acquisition Closing to occur); provided, however, that the Termination Date shall be extended
to the date that is twelve (12) months after the exercise by the Buyer of its Purchase Option if on the Termination Date the condition
set forth in Section 10.1(b) has not been satisfied but all other conditions to the Acquisition Closing are satisfied or
waived (other than those conditions that are by their nature to be satisfied by action taken at the Acquisition Closing);

 

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(3)          by
either the Representative or the Buyer in the event that any Governmental Authority has enacted, issued, enforced or entered into
any statute, rule, regulation, injunction or other order, restraining, enjoining or otherwise prohibiting the Acquisition that
has become final and non-appealable; or

 

(4)          by
the mutual written consent of the Company and Buyer.

 

(b)          The
Acquisition may be terminated at any time prior to the Acquisition Closing by the Buyer for any reason and in its sole discretion
after the payment of all Funding Payments contemplated by Section 2.2, or the Buyer’s good faith determination, after
consultation with the Representative, that no further Funding Payments shall be required to be made pursuant to Section 2.2.

 

Article
11. 

INDEMNIFICATION

 

Section 11.1        Indemnification
of Buyer Indemnified Parties.  From and following the Acquisition Closing and subject to the limitations contained in this
Article 11, each of the Buyer, the Company and their respective officers, directors, employees, agents, Affiliates, successors
and assigns (each a “Buyer Indemnified Party”) shall be indemnified and held harmless by the Sellers, severally
and not jointly, based on each Seller’s Pro Rata Share, from and against all Damages incurred by the Buyer Indemnified Parties
to the extent based upon, arising out of, with respect to or by reason of:

 

(a)          any
breach of any representation or warranty of the Sellers or the Company contained in this Agreement or any Ancillary Agreement (provided
that such indemnification in respect of a breach of a representation or warranty of a Seller contained in Article 7 may
only be recovered against such Seller, including the portion of the Escrow Fund attributable to such Seller), in each case as such
representation or warranty would read if all qualifications as to materiality, Material Adverse Effect or other similar qualification
were deleted therefrom;

 

(b)          any
breach of any covenant of the Sellers or the Company contained in this Agreement or any Ancillary Agreement; or

 

(c)          any
(i) Taxes of the Company for all Tax periods ending on or before the date of the Acquisition Closing and for the portion of any
Straddle Period ending on the date of the Acquisition Closing as determined pursuant to Section 9.10(d), (ii) any Transfer
Taxes, (iii) any Taxes imposed on the Company (or any successor thereto), (A) as a transferee or successor, (B) pursuant to any
Contract or other relationship existing at any time prior to the Acquisition Closing, or (C) as a result of the provisions of Treasury
Regulation Section 1.1502-6 or the analogous provisions of any state, local or foreign Legal Requirements; (iv) Taxes related to
any untaxed foreign earnings pursuant to Section 965 of the Code; (v) Taxes due to any inaccuracy of a representation or warranty
in this Agreement related to Taxes; (vi) Taxes attributable to the failure by the Company or any Seller to perform any covenant
or agreement in this Agreement relating to Taxes or any inaccuracy in any certificate, instrument or agreement delivered by or
on behalf of the Company or any Seller pursuant to this Agreement relating to Taxes; and (vii) withholding Taxes attributable to
payments made to any Seller under this Agreement (for which the applicable Seller shall indemnify the Buyer Indemnified Parties).

 

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(d)          Any
breach of Section 5.18 or Section 7.6.

 

Section 11.2        Indemnification
of Seller Indemnified Parties.  From and following the Acquisition Closing and subject to the limitations contained in this
Article 11, each of the Sellers and their respective officers, directors, employees, agents, Affiliates, successors and
assigns (each a “Seller Indemnified Party”) shall be indemnified and held harmless by the Buyer from and against
all Damages incurred by the Seller Indemnified Parties to the extent based upon, arising out of, with respect to or by reason of:

 

(a)          any
breach of any representation or warranty of the Buyer contained in this Agreement or any Ancillary Agreement, in each case as such
representation or warranty would read if all qualifications as to materiality or material adverse effect or other similar qualification
were deleted therefrom; or

 

(b)          any
breach of any covenant of the Buyer contained in this Agreement or any Ancillary Agreement.

 

Section 11.3        Indemnification
Procedures. 

 

(a)          The
party making a claim under this Article 11 is referred to as the “Indemnified Party” and the
party against whom such claims are asserted under this Article 11 is referred to as the “Indemnifying
Party”. For purposes of this Article 11, (i) if any Buyer Indemnified Party comprises the Indemnified
Party, any references to Indemnifying Party (except provisions relating to an obligation to make payments) shall be deemed to refer
to the Representative (on behalf of the Sellers), and (ii) if the Buyer comprises the Indemnifying Party, any references to the
Indemnified Party shall be deemed to refer to the Representative. Any payment received by the Representative as the Indemnified
Party shall be distributed to the Sellers in accordance with this Agreement. If any Indemnified Party receives written notice of
the commencement of any action or proceeding or the assertion of any claim by a third party or the imposition of any penalty or
assessment for which a claim for indemnification may be made under this Article 11  (a “Third Party Claim”)
or otherwise discovers the liability, obligation or facts giving rise to such claim for indemnity, and such Indemnified Party intends
to seek indemnity pursuant to this Article 11, such Indemnified Party shall promptly provide the Indemnifying Party with
written notice of such Third Party Claim, stating the nature, basis and the amount thereof, to the extent known, along with copies
of the relevant documents evidencing such Third Party Claim and the basis for indemnification sought. Failure of the Indemnified
Party to give such notice will not prohibit such Indemnified Party from seeking indemnification hereunder, except if and to the
extent that the Indemnifying Party is materially prejudiced thereby. The Indemnifying Party shall be entitled to participate in
the defense of a Third Party Claim and, to the extent that it wishes, to assume the defense of a Third Party Claim, if, within
thirty (30) days from receipt of any such notice of a Third Party Claim, the Indemnifying Party provides written notice to the
Indemnified Party that the Indemnifying Party intends to undertake such defense; provided, however, that if the Third
Party Claim (x) involves a Governmental Authority, potential criminal liability or is reasonably likely to have a material adverse
effect on any other matter beyond the scope or limits of the indemnification obligation of the Indemnifying Party or (y) seeks
specific performance or injunctive or other equitable relief, then the Indemnified Party shall be entitled to assume and control
the defense of such Third Party Claim by providing written notice to the Indemnifying Party. If the Indemnifying Party has assumed
the defense of such Third Party Claim, the Indemnified Party shall have the right to employ separate counsel in any such action
and to participate in (but not control) the defense thereof. The fees and disbursements of such counsel shall be at the expense
of the Indemnified Party, provided that if in the reasonable opinion of counsel to the Indemnified Party, (A) there are
legal defenses available to an Indemnified Party that are different from or additional to those available to the Indemnifying Party;
or (B) there exists a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the
Indemnifying Party shall be liable for the reasonable fees and expenses of counsel to the Indemnified Party in each jurisdiction
for which the Indemnified Party reasonably determines counsel is required. If the Indemnifying Party elects not to compromise or
defend such Third Party Claim, fails to promptly notify the Indemnified Party in writing of its election to defend as provided
in this Agreement, or fails to diligently prosecute the defense of such Third Party Claim, the Indemnified Party may, subject to Section
11.3(b), pay, compromise, defend such Third Party Claim and seek indemnification for any and all Damages based upon, arising
from or relating to such Third Party Claim. The Representative and the Buyer shall cooperate with each other in all reasonable
respects in connection with the defense of any Third Party Claim, including making available records relating to such Third Party
Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management
employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such Third Party Claim.

 

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(b)          Notwithstanding
any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third Party Claim without
the prior written consent of the Indemnified Party, except as provided in this Section 11.3(b). If a firm offer is
made to settle a Third Party Claim without leading to liability or the creation of a financial or other obligation on the part
of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all liabilities
and obligations in connection with such Third Party Claim and the Indemnifying Party desires to accept and agree to such offer,
the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified Party fails to consent
to such firm offer within ten (10) days after its receipt of such notice, the Indemnified Party may continue to contest or defend
such Third Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third Party Claim shall not
exceed the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to assume
defense of such Third Party Claim, the Indemnifying Party may settle the Third Party Claim upon the terms set forth in such firm
offer to settle such Third Party Claim. If the Indemnified Party has assumed the defense pursuant to Section 11.3(a),
it shall not agree to any settlement without the written consent of the Indemnifying Party (which consent shall not be unreasonably
withheld or delayed).

 

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(c)          This
Section 11.3(c) and not Section 11.3(a) or Section 11.3(b) shall apply with respect to Tax Claims. After the
Acquisition Closing, the Buyer Indemnified Party and the Representative shall promptly notify the other party in writing upon receipt
(in the case of the Representative, by either the Representative or any Seller) of any written notice of any pending or threatened
audit or assessment, suit, proposed adjustment, deficiency, dispute, administrative or judicial proceeding or similar claim relating
to Taxes with respect to damages for which a Buyer Indemnified Party may be indemnified under this Agreement (a “Tax Claim”).
Failure of the Buyer Indemnified Party to give such notice will not prohibit such Buyer Indemnified Party from seeking indemnification
hereunder, except if and to the extent that the Representative, acting on behalf of the Sellers, is materially prejudiced thereby.
The Buyer Indemnified Party will control, without affecting its or any other Indemnified Person’s rights to indemnification
under this Agreement, the defense of all Tax Claims; provided, however, that the Representative and its counsel (at
the Representative’s sole expense) may participate in (but not control the conduct of) the defense of any such Tax Claim,
and provided further that the Buyer Indemnified Party may not settle or compromise any Tax Claim relating to a taxable period that
ends on or before the date of the Acquisition Closing or, with respect to any Straddle Period, the portion of such taxable period
ending on and including the date of the Acquisition Closing, without the Representative’s consent (not to be unreasonably
withheld, conditioned or delayed).

 

(d)          Any
claim by an Indemnified Party on account of a Damage which does not result from a Third Party Claim or Tax Claim (a “Direct
Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof,
but in any event not later than thirty (30) days after the Indemnified Party becomes aware of such Direct Claim. The failure to
give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and
only to the extent that the Indemnifying Party is materially prejudiced thereby. Such notice by the Indemnified Party shall state
the nature, basis and the amount of the Direct Claim, to the extent known, along with copies of the relevant documents evidencing
such Direct Claim and the basis for indemnification sought. The Indemnifying Party shall have thirty (30) days after its receipt
of such notice to respond in writing to such Direct Claim. The Indemnified Party shall allow the Indemnifying Party and its professional
advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any
amount is payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party's investigation
by giving such information and assistance as the Indemnifying Party or any of its professional advisors may reasonably request.
If the Indemnifying Party does not so respond within such thirty (30)-day period, the Indemnifying Party shall be deemed to have
agreed to such Direct Claim.

 

Section 11.4        Limitations
on Indemnification. 

 

(a)          Notwithstanding
anything in this Agreement to the contrary (and except as provided in Section 11.4(d)), (i) the Buyer Indemnified Parties
shall not be entitled to assert any claim for indemnification under Section 11.1(a) unless and until the aggregate liability
for Damages suffered by the Buyer Indemnified Parties thereunder exceeds one-half a percent (0.5%) of the Baseline Purchase Price
(the “Threshold”); provided that in the event that the aggregate liability for Damages exceeds the Threshold,
the Buyer Indemnified Parties shall be entitled to recover for all such Damages; (ii) the aggregate amount of all Damages
for which the Sellers shall be liable for indemnification under Section 11.1(a) shall not exceed ten percent (10%)
of the Baseline Purchase Price (the “Cap”); and (iii) the maximum aggregate liability of each Seller under Section
11.1 shall not exceed, except in the case of fraud, in the aggregate the net amount of consideration paid to such Seller hereunder.

 

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(b)          Notwithstanding
anything in this Agreement to the contrary, (i) the Seller Indemnified Parties shall not be entitled to assert any claim for indemnification
under Section 11.2(a) unless and until the aggregate liability for Damages suffered by the Seller Indemnified Parties thereunder
exceeds the Threshold; provided, that in the event that the aggregate liability for Damages exceeds the Threshold, the Seller Indemnified
Parties shall be entitled to recover for all such Damages; and (ii) the aggregate amount of all Damages for which the Buyer
shall be liable for indemnification under Section 11.2(a) shall not exceed the Cap.

 

(c)          Except
as provided in Section 11.4(d), amounts payable to the Buyer Indemnified Parties as a result of any claim for indemnification
under Section 11.1(a) shall, at the sole discretion of the Buyer, either (x) be set off against any Earn-Out Payments that
are otherwise payable after the date of such claim or (y) be paid out of the Escrow Fund to the extent of available funds therein.
Except with respect to any claim based on, arising out of, or relating to, any Fundamental Representation (“Fundamental
Claim”), recovery from the Escrow Fund and set off against Earn-Out Payments shall be the sole and exclusive remedies
of the Buyer Indemnified Parties for any claims for indemnification arising under Section 11.1(a).

 

(d)          Notwithstanding
any provision herein to the contrary, the restrictions and limitations set forth in Section 11.4(a)(i), Section 11.4(a)(ii)
and Section 11.3(c) shall not be applicable to any claim pursuant to Section 11.1(a) to the extent arising out of
a Fundamental Claim. Any amounts payable to Buyer Indemnified Parties under Section 11.1 (other than Section 11.1(a))
shall, at the option of the Buyer (x) be set off against any Earn-Out Payments that are otherwise payable after the date of such
claim, (y) be paid out of the Escrow Funds to the extent of available funds therein or (z) be recoverable directly from the Sellers.

 

(e)          The
amount of any Damages that any Buyer Indemnified Party is entitled to receive pursuant to this Article 11 shall be reduced
by any related recoveries which such Buyer Indemnified Party actually receives under applicable insurance policies or from any
other Person alleged to be responsible for any such Damages. If a Buyer Indemnified Party actually receives any amounts under applicable
insurance policies, or from any other Person alleged to be responsible for any Damages, subsequent to an indemnification payment
being made by the Sellers hereunder or by set-off against an Earn-Out Payment or other payment hereunder, then such Buyer Indemnified
Party shall promptly pay to the Representative for distribution to the Sellers (in accordance with their Pro Rata Share) an amount
equal to such indemnification payment, up to the amount received by the Buyer Indemnified Party, net of any previously unpaid or
unreimbursed expenses incurred by such Buyer Indemnified Party in collecting such amount and the aggregate increase in insurance
premiums that are directly and proximately caused by such Damages.

 

(f)           Subject
to Section 12.10, each of the parties hereto hereby acknowledges and agrees that, solely to the extent that the Acquisition
Closing occurs, its sole and exclusive remedy with respect to any and all claims and Damages relating to or arising from this Agreement
or the transactions contemplated hereby (other than claims of, or causes of action arising from, fraud) shall be governed
by, and subject to, the terms and provisions set forth in this Article 11.

 

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Section 11.5        Survival
of Representations, Warranties and Covenants.  Subject to the limitations and other provisions of this Agreement, the representations
and warranties contained herein shall survive the Investment Closing and the Acquisition Closing and shall remain in full force
and effect until the date that is two (2) years after the date of the Acquisition; provided, that the Fundamental Representations
shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension
thereof) plus sixty (60) days; provided, further, that the representations and warranties and covenants contained in Section
5.18 and Section 7.6 shall survive indefinitely. All other covenants and agreements of the parties contained herein
shall survive the Investment Closing and the Acquisition Closing indefinitely or for the period explicitly specified therein. Notwithstanding
the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing
by notice from the Indemnified Party to the Indemnifying Party prior to the expiration date of the applicable survival period,
or within sixty (60) days after the applicable survival period in the case of indemnification under Section 11.1(c), shall
not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally
resolved.

 

Section 11.6        Effect
of Investigation.  The representations, warranties and covenants of the Indemnifying Party, and the Indemnified Party's right
to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf
of the Indemnified Party (including by any of its representatives) or by reason of the fact that the Indemnified Party or any of
its representatives knew or should have known that any such representation or warranty is, was or might be inaccurate or by reason
of the Indemnified Party’s waiver of any condition set forth in Section 10.2 or Section 10.3,
as the case may be.

 

Section 11.7        Tax
Treatment of Indemnification Payments.  All indemnification payments made under this Agreement shall be treated by the parties
as an adjustment to the applicable purchase price for Tax purposes, unless otherwise required by Legal Requirement.

 

Article
12. 

MISCELLANEOUS

 

Section 12.1        Entire
Agreement. This Agreement and the Ancillary Agreements, together with the Schedules and all other documents referred to herein,
constitute the entire agreement between the parties with respect to the subject matter of this Agreement and the Ancillary Agreements
and supersede any and all prior agreements, negotiations, correspondence, undertakings, understandings and communications of the
parties with respect to the subject matter of this Agreement and the Ancillary Agreements, with the exception of the mutual confidentiality
agreement between the Company and the Buyer, dated July 19, 2017 (the “Confidentiality Agreement”), to which
Section 12.8 applies. Nothing contained in this Agreement shall be deemed or construed as creating a joint venture or partnership
between any of the parties hereto.

 

Section 12.2        Transaction
Costs. Except as otherwise provided herein, the parties to this Agreement will pay their own costs and expenses (including
legal, accounting and other fees) relating to this Agreement.

 

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Section 12.3        Modifications.
Any amendment or modification to this Agreement, including this undertaking itself, shall only be valid if effected by an instrument
or instruments in writing and shall be effective against each of the parties hereto that has signed such instrument or instruments.
The parties agree that they jointly negotiated and prepared this Agreement and the Ancillary Agreements and that neither this Agreement
nor any Ancillary Agreement will be construed against any party on the grounds that such party prepared or drafted the same.

 

Section 12.4        Notices.

 

Notices will be deemed to have been received
(a) upon receipt of a registered letter, (b) three (3) Business Days following proper deposit with an internationally recognized
express overnight delivery service, or (c) in the case of transmission by email, as of the date so transmitted (or if so transmitted
after normal business hours at the place of the recipient, on the Business Day following such transmission):

 

If to the Company:

 

*

*

*

Attn: *

Email:
*

 

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

 

*

*

*

Attn: *

Email: *

 

If to Buyer:

 

*

*

*

Attn: *

Email:
*

 

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

 

*

*

*

Attn: *

Email: *

 

If to the Representative:

 

*

*

*

Attn: *

Email: *

 

    	 	70	 

     

    

 

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

 

*

*

*

Attn: *

Email: *

 

or to such other address as may be hereafter
communicated in writing by the parties in a notice given in accordance with this Section 12.4.

 

Section 12.5        Public
Announcements. Except as required by Legal Requirements or by the requirements of any stock exchange on which the securities
of a party hereto or any of its Affiliates are listed, no party to this Agreement will make, or cause to be made, any press release
or public announcement in respect of this Agreement, the Ancillary Agreements or the transactions contemplated hereby or thereby
or otherwise communicate with any news media with respect to the foregoing without prior notification to the other parties, and
the parties to this Agreement will consult with each other and cooperate as to the form, timing and contents of any such press
release, public announcement or disclosure.

 

Section 12.6        Severability.
Each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable Legal Requirements,
but if any provision of this Agreement is found to be unenforceable or invalid under applicable Legal Requirements, such provision
will be ineffective only to the extent of such unenforceability or invalidity, and the parties will negotiate in good faith to
modify this Agreement so that the unenforceable or invalid provision is replaced by such valid and enforceable provision which
the parties consider, in good faith, to match as closely as possible the invalid or unenforceable provision and to achieve the
same or a similar economic effect and to give effect to the parties’ original intent. The remaining provisions of this Agreement
will continue to be binding and in full force and effect.

 

Section 12.7        Assignment.
No party hereto may assign, in whole or in part, or delegate all or any part of its rights, interests or obligations under this
Agreement without the prior written consent of the other party. Any assignment or delegation made without such consent will be
void. Notwithstanding the foregoing, the Buyer shall be entitled to (a) assign its rights under this Agreement to any one of its
Affiliates and (b) assign any or all of its rights and obligations under this Agreement (in whole or in part) as collateral security
in a financing transaction; provided that no such assignment shall release the Buyer from its obligations under this Agreement.

 

Section 12.8        Confidentiality
Agreement. The terms of the Confidentiality Agreement are hereby incorporated herein by reference and will continue in full
force and effect until expiration or termination in accordance with the terms therein.

 

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Section 12.9        Governing
Law. This Agreement, any claims or causes of action pursuant to it, and the transactions contemplated hereby will be governed
by and construed in accordance with the laws of the State of Delaware, without regard for its principles of conflict of laws.

 

Section 12.10     Specific
Performance. Each party acknowledges and agrees that the other party would be irreparably damaged if the provisions of this
Agreement are not performed in accordance with their terms and that any breach of this Agreement and the non-consummation of the
transactions contemplated hereby by either party could not be adequately compensated in all cases by monetary damages alone. Accordingly,
in addition to any remedy to which such other party may be entitled under Section 12.11, provisional measures and injunctive
relief necessary to protect the ability of each party to seek specific performance from the other from the tribunal referred to
in Section 12.11 can be sought from any court of competent jurisdiction. Each of the parties hereto (i) agrees that it shall
not oppose the granting of any such relief and (ii) hereby irrevocably waives any requirement for the security or posting of any
bond in connection with any such relief (it is understood that clause (i) of this sentence is not intended to, and shall not, preclude
any party hereto from litigating on the merits the substantive claim to which such remedy relates).

 

Section 12.11      Submission
to Jurisdiction. Each of the parties hereto irrevocably agrees that any Proceeding with respect to this Agreement and
the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and
the rights and obligations arising hereunder brought by any other party hereto or its successors or assigns, shall be brought and
determined exclusively in the Court of Chancery of the State of Delaware, or in the event (but only in the event) that such court
does not have subject matter jurisdiction over such action or proceeding, in the federal courts sitting in the State of Delaware.
Each of the parties hereto agrees that mailing of process or other papers in connection with any such action or proceeding in the
manner provided in Section 12.4 or in such other manner as may be permitted by applicable Legal Requirements,
will be valid and sufficient service thereof. Each of the parties hereto hereby irrevocably submits with regard to any such action
or proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid
courts and agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated
by this Agreement in any court or tribunal other than the aforesaid courts. Each of the parties hereto hereby irrevocably
waives, and agrees not to assert, by way of motion, as a defense, counterclaim, or otherwise, in any action or proceeding with
respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any
judgment in respect of this Agreement and the rights and obligations arising hereunder: (a) any claim that it is not
personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve process in accordance
with this Section 12.11; (b) any claim that it or its property is exempt or immune from jurisdiction of any such court
or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment
in aid of execution of judgment, execution of judgment or otherwise); and (c) to the fullest extent permitted by the applicable
Legal Requirements, any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the
venue of such suit, action or proceeding is improper, or (iii) this Agreement, or the subject matter hereof, may not be enforced
in or by such courts.

 

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Section 12.12     Waiver
of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT: (A) NO REPRESENTATIVE OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN
THE EVENT OF A LEGAL ACTION; (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY;
AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 12.12.

 

Section 12.13      Waiver.
Any term or condition of this Agreement may be waived at any time by the party that is entitled to the benefit thereof, but no
such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the party waiving such
term or condition, and no waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, shall
be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty, covenant or agreement hereunder
or affect in any way any rights arising by virtue of any such prior or subsequent occurrence. No failure or delay of any party
in exercising any right or remedy hereunder shall operate as a waiver thereof, and no waiver by any party of any term or condition
of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion.

 

Section 12.14      Counterparts;
Facsimile Signature. This Agreement may be executed in one (1) or more counterparts, by original or facsimile (or other such
electronically transmitted) signature, each of which will be deemed an original, but all of which will constitute one and the same
instrument.

 

Section 12.15      Rights
Cumulative. All rights and remedies of each of the parties under this Agreement will be cumulative, and the exercise of one
or more rights or remedies will not preclude the exercise of any other right or remedy available under this Agreement or applicable
Legal Requirements.

 

    	 	73	 

     

    

 

Section 12.16     Interpretation.
(a) The words “hereof”, “herein”, and “hereunder” and words of similar import, when used
in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (b) the
words “date hereof,” when used in this Agreement, shall refer to the date set forth in the Preamble; (c) the terms
defined in the singular have a comparable meaning when used in the plural, and vice versa; (d) the terms defined in the present
tense have a comparable meaning when used in the past tense, and vice versa; (e) any references herein to a specific Section
or Article shall refer, respectively, to Sections or Articles of this Agreement; (f) wherever the word “include”,
 “includes”, or “including” is used in this Agreement, it shall be deemed to be followed by the words “without
limitation”; (g) references herein to any gender include each other gender; (h) the word “or” shall
not be exclusive; (i) the headings herein are for convenience of reference only, do not constitute part of this Agreement
and shall not be deemed to limit or otherwise affect any of the provisions hereof; (j) any references herein to any Governmental
Authority shall be deemed to also be a reference to any successor Governmental Authority thereto; (k) where a word or phrase is
defined herein, each of its other grammatical forms shall have a corresponding meaning; (l) all references to “dollars”
or “$” in this Agreement refer to United States dollars, which is the currency used for all purposes in this Agreement;
(m) when calculating the period of time before which, within which or following which, any act is to be done or step taken pursuant
to this Agreement, the date that is the reference date in calculating such period shall be excluded, and if the last day of such
period is a non-Business Day, the period in question shall end on the next succeeding Business Day; and (n) the parties hereto
have participated jointly in the negotiation and drafting of this Agreement and, in the event that an ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as jointly drafted by the parties hereto and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.

 

Section 12.17      Representative.

 

(a)          By
entering into this Agreement, each Seller hereby irrevocably authorizes and appoints Fortress as the “Representative”
for all purposes under this Agreement and as such Seller’s representative, agent and attorney-in-fact for all purposes in
connection with this Agreement and the agreements ancillary hereto, with full authority to act on behalf of, and to bind, each
such Person for purposes of this Agreement and the agreements ancillary hereto, and the Representative hereby accepts such appointment;
provided, however, that the Representative shall not have authority to amend, waive or otherwise modify the provisions of Section
11.4(a)(iii) hereof or to take any action described in Section 12.18. The Buyer shall be entitled to deal exclusively with
the Representative on all such matters and shall be entitled to rely conclusively (without further evidence of any kind whatsoever)
on any document executed or purported to be executed on behalf of any Seller by the Representative, and on any other action taken
or purported to be taken on behalf of any Seller by the Representative, as being fully binding upon such Seller. Notices or communications
to or from the Representative shall constitute notice to or from each of the Sellers. The provisions of this Section 12.17,
including the power of attorney granted hereby, are independent and severable, are irrevocable and coupled with an interest and
shall not be terminated by any act of any one of the Sellers, or by operation of law, whether by death or other event.

 

(b)          The
Representative may resign at any time, and may be removed for any reason or no reason by the vote or written consent of a majority
in interest of the Sellers according to each Seller’s pro rata share of equity interest in the Company as of the date thereof
(the “Majority Holders”); provided, however, in no event shall the Representative resign or be removed without
the Majority Holders having first appointed a new Representative who shall assume such duties immediately upon the resignation
or removal of the prior Representative. In the event of the death, incapacity, resignation or removal of the Representative, a
new Representative shall be appointed by the vote or written consent of the Majority Holders. Notice of such vote or a copy of
the written consent appointing such new Representative shall be sent to the Buyer, such appointment to be effective upon the later
of the date indicated in such consent or the date such notice is received by the Buyer; provided that until such notice is received,
the Buyer shall be conclusively entitled to rely on the decisions and actions of the prior Representative as described in Section
12.17(a) above.

 

    	 	74	 

     

    

 

Section 12.18     Columbia.
Notwithstanding anything to the contrary in this Agreement or in any document, instrument or agreement to be executed and delivered
pursuant hereto, but subject to the last sentence of this Section 12.18: (a) the respective rights and obligations of the parties
to the Key License Agreement are not, and will not be, affected by this Agreement or any such document, instrument or agreement,
and Columbia is not, and will not be, required to amend, waive or otherwise modify the Key License Agreement; (b) Columbia will
not be subject to any non-compete or other restrictive covenant (other than Section 9.3 and Section 9.7 hereof as in effect
on the Signing Date); (c) Columbia is not, and will not be, required to act under Sections 2.3(b), 9.4(a) and 9.5 hereof
in any capacity other than as a stockholder of the Company, or to incur more than a nominal expense, except as provided in Article
11 hereof; (d) Section 11.4(a)(iii) hereof may not be amended, waived or otherwise modified as to Columbia without Columbia’s
written consent; (e) this Section 12.18 may not be amended, waived or otherwise modified without the written consent of
Columbia; and (f) the Representative does not, and will not, have, the authority (i) to amend, waive or otherwise modify the Key
License Agreement or the Columbia SPA on behalf of Columbia, (ii) to subject Columbia to any non-compete or other restrictive covenant
(other than Section 9.3 and Section 9.7 hereof, as in effect on the Signing Date), (iii) to require Columbia to act or refrain
from acting under Sections 2.3(b), 9.4(a) and 9.5 hereof in any capacity other than as a stockholder of the Company, or
to incur more than a nominal expense, except as provided in Article 11 hereof; (iv) to amend, waive or otherwise modify
Section 11.4(a)(iii) hereof as to Columbia without Columbia’s written consent; or (v) to amend, waive or otherwise
modify this Section 12.18. Notwithstanding anything in the foregoing to the contrary, Columbia agrees and acknowledges its
obligations to sell, transfer, assign and deliver to the Buyer all Company Shares owned, of record and/or beneficially, by Columbia
at the time of the Acquisition Closing in the event that the Buyer exercises its Purchase Option pursuant to Section 2.3.

 

[Remainder of the page intentionally
left blank]

 

    	 	75	 

     

    

 

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

 

	 	THE COMPANY:
	 	 
	 	Caelum Biosciences, Inc. 
	 	 	 
	 	By:	/s/ Michael Spector
	 	 	Name: Michael Spector
	 	 	Title: CEO

 

[Company Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

  

	 	THE BUYER:
	 	 
	 	Alexion Pharmaceuticals, Inc.
	 	 	 
	 	By:	/s/ Aradhana Sarin
	 	 	Name: Aradhana Sarin
	 	 	Title: SVP, Strategy & Business Development

 

[Buyer Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	
        

         
	THE Representative:
	 	 
	 	fortress biotech, inc.
	 	 	 
	 	By:	/s/ Lindsay Rosenwald
	 	 	Name: Lindsay A. Rosenwald, M.D.
	 	 	Title: President & CEO

 

[Representative Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	
         
	SELLER:
	 	 	 	 
	 		By:	/s/ Orin Herskowitz
	 	 	Name:	Columbia University
	 	 	By:	Orin Herskowitz
	 	 	Title:	Exec. Dir., CTV

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

     

     

    

 

	
        

         
	SELLER:
	 	 	 	 
	 		By:	/s/ Lindsay Rosenwald
	 	 	Name:	Fortress Biotech, Inc.
	 	 	By:	Lindsay A. Rosenwald, M.D.
	 	 	Title:	President & CEO

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Michael A. Mullen
	 	 	Name:	National Holdings Corp.
	 	 	By:	Michael A. Mullen
	 	 	Title:	Executive Chairman, NSC

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ George Avgerinos
	 	 	Name:	George Avgerinos

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ David Barrett
	 	 	Name:	David Barrett

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Samuel Berry
	 	 	Name:	Samuel Berry

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

  

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Nikhil Bhambi
	 	 	Name:	Nikhil Bhambi

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Craig Bonn
	 	 	Name:	Craig Bonn

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Paul Brooke
	 	 	Name:	Paul Brooke

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Mary Campos
	 	 	Name:	Mary Campos

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Kenneth Cappell
	 	 	Name:	Kenneth Cappell

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Robert Criscola
	 	 	Name:	Robert Criscola

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Martin Goldman
	 	 	Name:	Martin Goldman

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Dr. Leonid Gorelik
	 	 	Name:	Dr. Leonid Gorelik

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Tim Hillman
	 	 	Name:	Tim Hillman

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Robyn Hunter
	 	 	Name:	Robyn Hunter

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Yune Kunes
	 	 	Name:	Yune Kunes

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Dr. Suzanne Lentzsch
	 	 	Name:	Dr. Suzanne Lentzsch

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Terry Manning
	 	 	Name:	Terry Manning

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Roger Monteforte
	 	 	Name:	Roger Monteforte

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Michael Mullen
	 	 	Name:	Michael Mullen

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Jill Myers
	 	 	Name:	Jill Myers

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ William Natbony
	 	 	Name:	William Natbony

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Dr. Jeffrey Paley
	 	 	Name:	Dr. Jeffrey Paley

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Michael Phillips
	 	 	Name:	Michael Phillips

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Joon Rhee
	 	 	Name:	Joon Rhee

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Jonathan Rich
	 	 	Name:	Jonathan Rich

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Lindsay Rosenwald, M.D.
	 	 	Name:	Lindsay Rosenwald, M.D.

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Nova Silver
	 	 	Name:	Nova Silver

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Susan Sobolov
	 	 	Name:	Susan Sobolov

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Dr. Alan Solomon
	 	 	Name:	Dr. Alan Solomon

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Michael Spector
	 	 	Name:	Michael Spector

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Jennifer Talbot
	 	 	Name:	Jennifer Talbot

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Robert Todd
	 	 	Name:	Robert Todd

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Stuart Updegrove
	 	 	Name:	Stuart Updegrove

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Harlan Weisman, M.D.
	 	 	Name:	Harlan Weisman, M.D.

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]

 

     

     

    

 

	 	SELLER:
	 	 	 	 
	 		By:	/s/ Michael Weiss
	 	 	Name:	Michael Weiss

 

[Seller Signature Page to Development,
Option and Stock Purchase Agreement]MERGER
AGREEMENT AND PLAN OF MERGER

 

THIS
MERGER AGREEMENT AND PLAN OF MERGER (the “Agreement”) is made and entered into this 10th day of May 2019,
by and among:

 

(A)
       Darkstar Ventures, Inc., a publicly-traded Nevada corporation with an address
at 7 Eliezri Street, Jerusalem, Israel (“DarkStar”);

 

(B)       Avraham
Bengio, an individual with an address at 7 Eliezri Street, Jerusalem, Israel (“Bengio”); and

 

(C)       Samsara
Luggage, Inc., a Delaware corporation with an address at One University Plaza, Suite 505, Hackensack, NewJersey 07601 (“Samsara”);

 

Darkstar,
Bengio, and Samsara are hereinafter collectively referred to as the “Parties.”

 

INTRODUCTION

 

A.       Darkstar
is a Nevada corporation of which at least 27,200,000 shares of its common stock, $0.0001 par value per share (the “DarkStar
Common Stock”) are publicly-traded and listed on the OTC Markets OTC Pink quotation service (“OTCPink”)
under the symbol “DAVC”.

 

B.       Samsara
is private Delaware corporation.

 

C.       Each
of the board of directors of Darkstar and Samsara deems it advisable, fair, and in the best interest of such corporation and its
respective stockholders that Samsara merge with and into Darkstar, with Samsara becoming extinct and Darkstar the surviving entity,
upon the terms and subject to the conditions hereinafter set forth (the “Merger”).

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto intending to be bound
hereby, it is agreed as follows:

 

1.       The
Merger

 

1.1       Upon
the terms and subject to the conditions set forth in this Agreement, on the Effective Time (as defined in Section 3.1) below,
Samsara shall be merged with and into Darkstar, and the separate existence of Samsara shall cease. Darkstar shall be the surviving
corporation in the Merger (the “Surviving Corporation”) and shall continue to be a corporation formed under the laws
of the State of Nevada.

 

1.2       The
Merger shall have the effects specified in the General Corporation Law of the State of Delaware, as amended (the “DGGL”),
and in the Nevada Revised Statutes, as amended (the “NRS”), and the Surviving Corporation shall succeed, without other
transfer, to all of the assets and property (whether real, personal or mixed), rights, privileges, franchises, immunities and
powers of Samsara, and shall assume and be subject to all of the liabilities, obligations and restrictions of every kind and description
of Samsara, including, without limitation, all outstanding indebtedness of Samsara.

 

1.3       If,
at any time after the Effective Time, the Surviving Corporation shall consider or be advised that any deeds, bills of sale,
assignments, assurances or other actions or things are necessary or desirable to vest, perfect or confirm of record or
otherwise in the Surviving Corporation its right, title or interest in, to or under any of the rights, properties or assets
of Samsara or to be acquired by the Surviving Corporation as a result of, or in connection with, the Merger or otherwise to
carry out this Agreement, the officers and directors of the Surviving Corporation shall be authorized to execute and deliver,
in the name and on behalf of Samsara or otherwise, all such deeds, bills of sale, assignments and assurances and to take and
do, in the name and on behalf of each of Samsara or otherwise, all such other actions and things as may be necessary or
desirable to vest, perfect or confirm any and all right, title and interest in, to and under such rights, properties or
assets in the Surviving Corporation or otherwise to carry out this Agreement.

 

    	 	1	 

     

    

1.4       The
Articles of Incorporation of the Surviving Corporation shall be the Articles of Incorporation of Darkstar as in effect immediately
before the Effective Time, without change unless and until amended in accordance with applicable law.

 

1.5       The
Bylaws of the Surviving Corporation shall be the Bylaws of Darkstar as in effect immediately before the Effective Time, without
change unless and until amended in accordance with applicable law.

 

1.6       At
the Effective Time, the directors and officers of Samsara in office immediately before the Effective Time shall become the directors
and officers of the Surviving Corporation, with each of such directors and officers to hold office subject to the applicable provisions
of the Articles of Incorporation and Bylaws of the Surviving Corporation and the NRS until his or her successor is duly elected
or appointed and qualified.

 

2.       Effect
of Merger on Capital Stock; Conversion of Shares

 

2.1       At
the Effective Time, as a result of the Merger, each share of Samsara’s common stock, $0.001 per value per share (“Samsara
Stock”), issued and outstanding immediately before the Effective Time (but excluding Dissenting Shares, as defined in Section
2.4 below), shall , by virtue of the Merger and without any action on the part of the holder thereof, be converted into and become
2,589,400,000 validly issued, fully paid, and non-assessable shares of the Surviving Corporation’s common stock, $0.0001
par value per share (“Surviving Corporation Stock”), with all fractional shares to be rounded up, and all shares of
Samsara Stock shall be cancelled and retired and shall cease to exist.

 

2.2       The
total number of shares of Surviving Corporation Stock to be issued to each holder of shares of Samsara Stock (each a “Samsara
Stockholder”) shall be as set forth opposite such Samsara Stockholder’s name in Exhibit A attached hereto.

 

2.3       Following
the Effective Time, the Samsara Stockholders immediately prior to the Effective Time will hold approximately eighty percent (80%)
of the issued and outstanding shares of the Surviving Corporation Stock.

 

2.4       Notwithstanding
anything in this Agreement to the contrary, any shares of Samsara Stock that are issued and outstanding as of the Effective Time
and that are held by a Samsara Stockholder who has properly exercised his, her, or its appraisal rights under the DGCL (the “Dissenting
Shares”) shall not be converted into shares of the Surviving Corporation Stock unless and until the holder shall have
failed to perfect, or shall have effectively withdrawn or lost, his, her or its right to dissent from the Merger under the DGCL
and to receive such consideration as may be determined to be due with respect to such Dissenting Shares pursuant to and subject
to the requirements of the DGCL.

 

3.       Effective
Time.

 

3.1       As
soon as practicable following the satisfaction of the conditions set forth in Section 7 and Section 8 of this Agreement,
Darkstar and Samsara shall cause Articles of Merger to be executed and filed with the Office of the Secretary of State of
Nevada (the “ Nevada Articles of Merger ”) and a Certificate of Merger to be executed and filed with
the Office of the Secretary of State of Delaware (the “ Delaware Certificate of Merger ”).  The
Merger shall become effective upon the date and time specified in the Nevada Articles of Merger and the Delaware Certificate
of Merger (the “Effective Time”).

 

4.       Representations
and Warranties of DarkStar and Bengio

 

DarkStar
and Bengio hereby represent and warrant to Samsara and the Samsara Stockholders as follows:

 

4.1       Corporate
Organization. DarkStar is a corporation duly organized, validly existing, and within seven (7) days of the signing of this
Agreement will be in good standing, under the laws of the State of Nevada, with the requisite corporate power and authority to
carry on its business as it is now being conducted, and to own, operate and lease its properties and assets. With respect to the
filing of annual returns and the payment of fees required under the laws of the jurisdiction of its incorporation, DarkStar is
in compliance with all such laws. DarkStar is not and has not been the subject of any voluntary or involuntary bankruptcy proceeding.
DarkStar is currently not in good standing and its status has been “revoked” due to Darkstar’s failure to pay
the required annual fees to, and file the required annual reports with, the Office of the Secretary of State of Nevada.

 

    	 	2	 

     

    

4.2       Authorization.
DarkStar has all requisite power and authority to enter into, execute, deliver, and perform its obligations under this Agreement.
This Agreement has been duly and validly executed and delivered by DarkStar and is the valid and binding legal obligation of DarkStar
enforceable against DarkStar in accordance with its terms, subject to bankruptcy, moratorium, principles of equity and other limitations
limiting the rights of creditors generally. The execution and performance of this Agreement will not constitute a material breach
or default of any agreement, contract, charter, indenture, mortgage, license or other instrument or document to which DarkStar
or Bengio is party and will not violate any judgment, decree, order, writ, rule, statute, or regulation applicable to DarkStar
or Bengio or their respective properties.

 

4.3Consents
and Approvals.DarkStar has received the requisite majority approval of DarkStar’s board of directors (the "Board")
to enter into this Agreement, and shall prior to the Effective Time obtain the requisite majority approval of DarkStar’s
shareholders (the "Shareholders") to enter into this Agreement. No other consent, approval, order or authorization of
or from, or registration, notification, declaration or filing with any individual or entity is required in connection with the
execution, delivery or performance of this Agreement by DarkStar or the consummation by DarkStar of the transactions contemplated
herein.

 

4.4       Non-Contravention.
Neither the execution, delivery nor performance of this Agreement and each other transaction document, nor the consummation of
the transactions contemplated hereby or thereby will (a) violate, contravene or be in conflict with any provision of the certificate
of incorporation, articles of incorporation, charter, or by-laws of DarkStar, or (b) violate any statute, law or regulation of
any jurisdiction applicable to the transactions contemplated herein.

4.5       
Capitalization. The authorized share capital of DarkStar currently consists of 2,000,000,000 shares of Common Stock, par
value $0.0001, of which 647,345,000 shares of Common Stock are outstanding as of the date of this Agreement, and 5,000,000 shares
of Preferred Stock, par value $0.0001, none of which are outstanding as of the date of this Agreement. No
shares of DarkStar Common Stock are reserved for issuance pursuant to any convertible securities, options or warrants. All
issued and outstanding shares of Common Stock are duly authorized, validly issued, fully paid and nonassessable
and are without, and were not issued in violation of, preemptive rights, and have been issued in accordance with all applicable
laws, including, but not limited to, the Securities Act. There are 44 stockholders of record of DarkStar.

 

4.6       Ownership
of the Shares of the Surviving Corporation Stock. Upon issuance of shares of the Surviving Corporation Stock to the
Samsara Stockholders, the Samsara Stockholders will own the shares of the Surviving Corporation Stock beneficially and of
record, free and clear of any liens, claims, security interests, or encumbrances (collectively, “Encumbrances”).
There are no agreements (i) granting any pre-emptive right with respect to the Surviving Corporation Stock to any person,
(ii) restricting the right of DarkStar to issue the Surviving Corporation Stock to the Samsara Stockholders, or (iii)
restricting any other right of the Samsara Stockholders with respect to the Surviving Corporation Stock. Upon issuance to the
Samsara Stockholders of the shares of the Surviving Corporation Stock, the Samsara Stockholders will acquire good, valid and
marketable title to the shares of the Surviving Corporation Stock, free and clear of any Encumbrances.

4.7  Commission
Filings; Financial Statements.

 

(a)Reports.DarkStar
is current in the filing of all forms or reports with the SEC, and has been a reporting company under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). All such reports and statements filed by DarkStar with the SEC
(collectively, “SEC Reports”) did not and do not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstance
under which they were made, not misleading. 

 

(b)Registration
Statements.No order suspending the effectiveness
of any registration statement of the Company under the Securities Act or the Exchange Act of 1934, as amended, has been issued
by the SEC and, to the Company’s knowledge, no proceedings for that purpose have been initiated or threatened by the SEC;

 

(c)Bad
Actors.DarkStar is not and has not, and
the past and present officers, directors and affiliates of DarkStar are not and have not, been the subject of, nor does any officer
or director of DarkStar have any reason to believe that DarkStar or any of its officers, directors or affiliates will be the subject
of, any civil or criminal proceeding or investigation by any federal or state agency alleging a violation of securities laws and
do not qualify as “Bad Actors”.

 

    	 	3	 

     

    

(d)
Financial Statements.The financial statements contained in the Company’s SEC Reports: (i) comply as to form
in all material respects with the published rules and regulations of the Commission applicable thereto; (ii) were prepared in
accordance with GAAP applied on a consistent basis throughout the periods covered (except as may be indicated in the notes to
such financial statements and, in the case of unaudited statements, as permitted by Form 10-Q of the SEC); and (iii) fairly present,
in all material respects, the consolidated financial position of Company and its consolidated subsidiaries as of the respective
dates thereof and the consolidated results of operations of Company and its consolidated subsidiaries for the periods covered
thereby. All adjustments considered necessary for a fair presentation of the financial statements have been included. The
books of account and other financial records of DarkStar are in all respects complete and correct in all material respects and
are maintained in accordance with good business and accounting practices.

 

4.8       FINRA
Approval. FINRA has approved DarkStar’s sponsoring broker-dealer/market maker’s Form 211 application to initiate
quotation of DarkStar’s securities pursuant to Rule 15c-211.

 

4.9       Absence
of Undisclosed Liabilities. DarkStar does not have any liabilities, indebtedness, obligations, or claims of any kind whatsoever
(“Liabilities”), other than the Liabilities detailed in Schedule 4.9 attached hereto, all of which Liabilities
are fully reflected in the balance sheet (the “Balance Sheet”) as at July 31, 2018 and as at January 31, 2019, and
are included in DarkStar’s Form 10-K for the year ended July 31, 2018 and its Form 10-Q for the quarter ended January 31,
2019, respectively, as filed with the SEC. The Company has not incurred any liabilities, debts, or other obligations, whether
fixed, contingent or otherwise, subsequent to January 31, 2019 and up to the date of this Agreement other than in the ordinary
course of business. The details of the Geveva Roth Remark Holding issue are set forth in
Schedule 4.9.

 

4.10
       Discharge of Liabilities. Except for the Liabilities set forth in Schedule
4.10 attached hereto, which liabilities shall be settled by Samsara as required for purposes of Closing, as of immediately
prior to the Effective Time DarkStar will have paid or discharged all of the Liabilities of DarkStar such that DarkStar shall
not have any outstanding Liabilities.

 

4.11Assets.The
assets of Darkstar are detailed in Schedule 4.11 attached hereto, all of which assets are owned by DarkStar free and clear
of any liens, claims, security interests, or encumbrances.

 

4.12Interested
Party Transactions.No officer, director, or shareholder of DarkStar, or any affiliate of any such person or entity, (an
"Interested Party") has a beneficial interest in any contract or agreement to which DarkStar is a party. As of the Effective
Time, DarkStar will not have any contract or agreement with any Interested Party.

 

4.13No
Material Adverse Changes.Since January 31, 2019, there have not been any material adverse changes in the financial, business,
or regulatory position of DarkStar.

4.14       Taxes.
Except as detailed in Schedule 4.14 attached hereto, DarkStar has timely filed all material tax, governmental and/or
related forms and reports (or extensions thereof) due or required to be filed and has paid or made adequate provisions for all
taxes or assessments which have become due as of the Effective Time, and there are no deficiencies outstanding.

 

4.15
       Litigation. There is no legal, administrative, regulatory, arbitration, or other
proceeding, suit, claim or action of any nature, or investigation, review, or audit of any kind, or any judgment, decree, decision,
injunction, writ, or order pending, noticed, scheduled, or, to the knowledge of DarkStar and Bengio, threatened or contemplated
by or against or involving DarkStar, including but not limited to any letter asserting a claim of any nature whatsoever against
DarkStar.

 

4.16
       Compliance. DarkStar is and has been in compliance in all respects with all laws
and regulations applicable to DarkStar’s business and operations. DarkStar is not in default (a) under its certificate
of incorporation or by-laws, or (b) under any note, indenture, mortgage, lease, agreement, contract, purchase order or other instrument,
document or agreement to which DarkStar is a party or by which any of its properties is bound or affected, or (c) with respect
to any law, statute, ordinance, regulation, order, writ, injunction, decree, or judgment of any court or any governmental department,
commission, board, bureau, agency or instrumentality.

    	 	4	 

     

    

4.17
       Books and Records. The books of account, minute books, stock record books, and
other material records of DarkStar are correct in all material respects and have been maintained in accordance with reasonable
business practices. The minute books of DarkStar contain accurate and complete records of all formal meetings of, and corporate
action taken by, the directors and officers of DarkStar. At the Effective Time, all of those books and records will be in the
possession of DarkStar and delivered to or upon the direction of the Samsara Stockholders.

 

4.18Quotation.At
least 27,200,000 shares of DarkStar's Common Stock are quoted on the OTC Pink Marketplace, and except as detailed in Schedule
4.18 attached hereto, neither DarkStar nor Bengio has received any notice from FINRA, OTC Markets Group, or any other regulatory
authority that would lead them to believe that such quotation has been suspended or delisted or is subject to potential suspension
or delisting.

 

4.19Disclosure.DarkStar
has (and at the Effective Time will have) provided Samsara with all publicly available information regarding events, conditions
and facts materially affecting the business, financial conditions or results of operation of DarkStar. DarkStar has not now and
will not have, at the Effective Time, withheld disclosure of publicly
available information regarding any such events, conditions, and facts which it has knowledge
of or has reasonable grounds to know may exist.

 

4.20       Full
Disclosure. No representation or warranty by DarkStar in this Agreement or in any document or schedule to be delivered by
them pursuant hereto, and no written statement, certificate or instrument furnished or to be furnished by DarkStar pursuant hereto
or in connection with the negotiation, execution or performance of this Agreement contains or will contain any untrue statement
of a material fact or omits or will omit to state any fact necessary to make any statement herein or therein not materially misleading
or necessary to complete and correct presentation of all material aspects of the business of DarkStar.

 

5.Representations
and Warranties of Samsara.

 

Samsara
hereby represent and warrant to DarkStar, as follows:

 

5.1       Organization
and Good Standing.  Samsara is a corporation
duly organized, validly existing and in good standing under the laws of Delaware and has the requisite corporate power and authority
and all governmental licenses, authorizations, consents and approvals required to own, operate and lease its properties and assets
and to conduct its business as it is now being owned, operated, leased and conducted. Samsara is duly qualified or licensed to
do business as a corporation, and is in good standing as a corporation, in every jurisdiction in which its ownership of property
or the character of its business requires such qualification.

 

5.2       Authorization
and Power. Samsara has all power and authority to enter into this Agreement and to carry out the transactions contemplated
herein. This Agreement is the valid and binding legal obligation of Samsara enforceable against it in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws that affect
creditors’ rights generally.

 

5.3
       Consents and Approvals. No consent is required by any person or entity in connection
with the execution, delivery and performance by Samsara, or the consummation of the transactions contemplated herein, that will
not have been obtained by the Effective Time.

 

5.4
       Non-Contravention. Neither the execution, delivery nor performance of this Agreement
and each other transaction document nor the consummation of the transactions contemplated hereby or thereby will (a) be in conflict
with, or constitute a default, however defined (or an event which, with the giving of due notice or lapse of time, or both, would
constitute such a default), under any agreement to which Samsara is a party; or (b) violate any law.

 

    	 	5	 

     

    

5.5       Samsara
Capitalization. As of the date of this Agreement, Samsara is authorized to issue Ten Million shares of Samsara Common Stock,
$0.0001 par value per share, of which 5,653,536 shares of Samsara Common Stock are issued and outstanding, and One Million shares
of Samsara Preferred Stock, $0.0001 par value per share, none
of which are outstanding as of the date of this Agreement. One hundred percent (100%) of
the issued and outstanding shares of Samsara Stock are held as of the date of this Agreement by the Samsara Stockholders
in the amount of shares as set forth in Exhibit A attached hereto. All outstanding shares of Samsara stock are duly authorized,
validly issued, fully paid and non-assessable and have been issued in compliance with applicable laws. There are no declared or
accrued but unpaid dividends or distributions with respect to any shares of Company Stock.
No shares of Samsara Common Stock are reserved for issuance pursuant to any convertible securities, options or warrants. There
are no first preemptive rights or agreements, arrangements or understandings to issue preemptive rights with respect to the issuance
or sale of capital stock or any other equity interest of Samsara to which Samsara is a party or to which it is bound. There are
no first refusal or shareholder rights of whatsoever nature that conflict with, contradict or otherwise undermine the obligations,
commitments and covenants of Samsara under this Agreement and the transactions contemplated herein.

 

5.6       Subsidiaries.
Samsara does not have any subsidiaries. Samsara
does not hold or own, directly or indirectly, any securities, equity interests, or rights in any other corporation, partnership,
joint venture or other person.

 

5.7Intellectual
Property.Samsara has sufficient title and ownership, or has obtained the unrestricted right to use, free and clear of
all liens, claims, restrictions, third-party rights or royalties known to Samsara, in and to patents, trademarks, service marks,
trade names, copyrights, moral rights and other proprietary rights and processes, and applications, licenses and rights with respect
to the foregoing, and trade secrets, including know-how, inventions, designs, processes, works of authorship, computer programs
and technical data and information (collectively herein “Intellectual Property”) used in the conduct of its
business as now conducted, without, to the knowledge of Samsara, infringing upon or violating any rights of others.

 

5.8
       Litigation. There is no legal, administrative, arbitration, or other proceeding,
suit, claim or action of any nature or investigation, review or audit of any kind, or any judgment, decree, decision, injunction,
writ or order pending, noticed, scheduled, or, to the knowledge of Samsara, threatened or contemplated by or against or involving
Samsara, its assets, properties or business, or which questions or challenges the validity of this Agreement or any action taken
or to be taken by the Parties hereto pursuant to the transactions contemplated herein.

 

5.9Liabilities.Samsara’s
liabilities as of March 31, 2019 are detailed
in Schedule 5.9 attached hereto. Samsara has no other liabilities other than liabilities incurred in the ordinary course
of business subsequent to March 31, 2019 and expenses related to the Exchange Transaction.

 

6.       Covenants
of the Parties

 

6.1       Covenants
of Darkstar

 

6.1.1
       Conduct of Business. Except as contemplated by this Agreement, during the period,
if any, from the date of this Agreement to the Effective Time, DarkStar will conduct its business and operations according to
its ordinary and usual course of business consistent with past practices. Without limiting the generality of the foregoing, prior
to the Effective Time, without the prior written consent of Samsara, not to be unreasonably delayed, DarkStar will not:

 

(a)
       amend its articles of incorporation or bylaws;

 

(b)
       issue, sell, deliver or pledge or authorize or propose the issuance, sale, delivery
or pledge of shares of Common Stock or Preferred Stock of the Company;

 

(c)
       incur, assume, suffer or become subject to, whether directly or by way of guarantee
or otherwise, any additional liabilities other than in the ordinary and usual course of business consistent with past practices
(this section shall not apply to Bengio Urban Renewal);

 

(d)
       enter into other material agreements, commitments or contracts (this section shall not
apply to Bengio Urban Renewal); or

 

    	 	6	 

     

    

(e)
       agree in writing or otherwise to take any of the foregoing actions or any action which
would make any representation or warranty in this Agreement untrue or incorrect in any material respect.

 

6.1.2Good
Standing.Within seven (7) days of the signing of this Agreement, Darkstar will pay all of its outstanding fees and penalties
to, and file all required annual reports with, the Secretary of State of Nevada so as to reinstate Darkstar and restore Darkstar
as a company in good standing.

 

6.1.3       No
Liabilities. Darkstar shall ensure that except for the Liabilities set forth on Schedule 4.10, as of immediately prior
to the Effective Time, DarkStar will have paid or discharged all of the Liabilities of DarkStar such that DarkStar shall not have
any outstanding Liabilities.

 

6.1.4
       Full Access. Throughout the period prior to the Effective Time, DarkStar will
afford to Samsara reasonable access to the books and records of DarkStar in order that Samsara may have full opportunity to make
such investigations as they will desire to make of the affairs of DarkStar.

 

6.2       Covenants
of Darkstar and Samsara

 

6.2.1Completion
of Information and Documents.The parties will complete all missing information, exhibits, and schedules to this Agreement
as soon as practicable following signing.

 

6.2.2Registration
Statement on Form S-4.The parties will file a registration statement on Form S-4 with regard to the Merger and the shares
of the Surviving Corporation to be issued to the Samsara Stockholders at the Effective Time.

 

6.2.3
       Confidentiality. Each of the Parties hereto agrees that it will not use, or permit
the use of, any of the information relating to any other party hereto furnished to him in connection with the transactions contemplated
herein (“Information”) in a manner or for a purpose detrimental to such other Party or otherwise than in connection
with the transaction, and that they will not disclose, divulge, provide or make accessible (collectively, “Disclose”),
or permit the disclosure of, any of the Information to any person or entity, other than their respective directors, officers,
employees, investment advisors, accountants, counsel and other authorized representatives and agents, except: (i) that DarkStar
may file a Current Report on Form 8-K and other required filings with the Securities and Exchange Commission; and (ii) as may
be required by judicial or administrative process or, in the opinion of such Party’s counsel, by other requirements of Law;
provided, however, that prior to any Disclosure of any Information permitted hereunder, such Party will first obtain the
recipients’ undertaking to comply with the provisions of this Section with respect to such information.

 

6.2.4       Concurrently
with obtaining its approval from its respective majority shareholders for this Agreement and the Merger, (a) Samsara shall notify
each Samsara Stockholder who is entitled to appraisal rights that the Merger has been approved by the Samsara Stockholders and
that appraisal rights are available, and Samsara shall include in such notice a copy of the relevant section of the DGCL; and
(b) Darkstar shall notify each holder of shares of Darkstar who is entitled to a right of dissent with respect to the Merger that
the Merger has been approved by the stockholders of Darkstar and that such stockholder is entitled to dissent and obtain payment
of the fair value of his shares, and Darkstar shall include in such notice a copy of the relevant sections of the NRS .

 

6.2.5
       Filings; Consents; Removal of Objections. Subject to the terms of this Agreement,
each of the Parties shall take or cause to be taken all actions and do or cause to be done all things necessary, proper or advisable
under applicable laws to consummate and make effective, as soon as reasonably practicable, the transactions contemplated hereby,
including without limitation obtaining all consents of any person or entity, whether private or governmental, required in connection
with the consummation of the transactions contemplated herein. In furtherance, and not in limitation of the foregoing, it is the
intent of the Parties to consummate the transaction at the earliest practicable time, and they respectively agree to exert commercially
reasonable efforts to that end, including without limitation: (i) the removal or satisfaction, if possible, of any objections
to the validity or legality of the transactions contemplated herein; and (ii) the satisfaction of the conditions to consummation
of the transactions contemplated hereby. For purposes of clarity, Samsara shall finance the requisite securities law and corporate
filings during the period between execution of this Agreement and the Effective Time.

 

    	 	7	 

     

    

  

6.2.6
       Further Assurances; Cooperation; Notification.

 

(a)
       Each of the Parties will, before, at and after Effective Time, execute and deliver such
instruments and take such other actions as the other Party may reasonably require in order to carry out the intent of this Agreement.

 

(b)       Bengio
agrees to provide assistance in delivering to Samsara any additional corporate records, financial information, information regarding
corporate acquisitions and divestitures, rescission agreements and other information related to DarkStar that is in the possession
of, or available to Bengio.

(c)
       At all times from the date hereof until the Effective Time, each of the Parties will
promptly notify the other in writing of the occurrence of any event which he reasonably believes will or may result in a failure
by such Party to satisfy the conditions specified in this Article 6.

 

6.2.7Public
Announcements. None of the Parties hereto will make any public announcement with respect to the transactions contemplated
herein without the prior written consent of the other Party, which consent will not be unreasonably withheld or delayed; provided,
however, that either of the Parties hereto may at any time make any announcements that are required by applicable law so long
as the Party so required to make an announcement promptly upon learning of such requirement notifies the other Party of such requirement
and discusses with the other Party in good faith the exact proposed wording of any such announcement.

 

6.2.8
       Satisfaction of Conditions Precedent. Each Party will use commercially reasonable
efforts to satisfy or cause to be satisfied all the conditions precedent that are applicable to it, and to cause the transactions
contemplated by this Agreement to be consummated, and, without limiting the generality of the foregoing, to obtain all material
consents and authorizations of third parties and to make filings with, and give all notices to, third parties that may be necessary
or reasonably required on his part in order to effect the transactions contemplated hereby.

 

7.       Conditions
to Obligations of Samsara 

 

Notwithstanding
any other provision of this Agreement to the contrary, the obligation of Samsara to effect the transactions contemplated herein
will be subject to the satisfaction at or prior to the Effective Time, or waiver by Samsara, of each of the following conditions:

 

7.1Completion
of Information and Documents.The completion of all missing information, exhibits, and schedules to this Agreement to the
satisfaction of Samsara.

 

7.2       Increase
in Authorized Share Capital. Prior to the Effective Time, Darkstar will have amended its Articles of Incorporation to increase
the number of authorized shares of common stock of Darkstar from 2,000,000,000 shares to 5,000,000,000 shares.

 

7.3Spin-Off
Transaction.Immediately prior to the Effective Time, DarkStar will complete the sale of DarkStar’s wholly-owned
Israeli subsidiary, Bengio Urban Renewals Ltd (“Bengio Urban”) to Bengio, through the sale of 100% of the issued and
outstanding shares of Bengio Urban and all of DarkStar’s interest in Bengio Urban (including all debts and liabilities owed
by DarkStar to Bengio Urban and the debts of Bengio Urban to DarkStar) to Bengio, (the "Spin-Off"). DarkStar will sell
100% of its interests of Bengio Urban to Bengio in exchange for all debts, liabilities and obligations of Bengio Urban being assigned
to and assumed by Bengio and with no other consideration.

 

7.4Private
Placement.Prior to the Effective Time, DarkStar will have entered into subscription agreements with investors, pursuant
to Regulation D and/or Regulation S under the Securities Act of 1933, as amended, and any and all applicable state securities
laws, to raise $500,000 at a

    	 

    	 

    

pre-money
company valuation of $5,000,000 through the sale of shares of Darkstar’s Common Stock and warrants (the “PP”).
The subscription agreements shall be in a form acceptable to Samsara. The closing of the PP shall take place at the Effective
Time immediately following the Effective Time.

 

7.5Form
S-4 Registration Statement.The Registration Statement on Form S-4 shall have been declared effective by the Securities
and Exchange Commission.

 

7.6
       Representations and Warranties of DarkStar and Bengio. The representations and
warranties of DarkStar and Bengio contained in this Agreement will be true, complete and accurate in all material respects as
of the date when made and at and as of the Effective Time as though such representations and warranties were made at and as of
such time, except for changes specifically permitted or contemplated by this Agreement, and except insofar as the representations
and warranties relate expressly and solely to a particular date or period, in which case they will be true and correct at the
Effective Time with respect to such date or period.

 

7.7
       Performance. Darkstar and Bengio will have performed and complied in all material
respects with all agreements, covenants, obligations and conditions required by this Agreement to be performed or complied with
by DarkStar and Bengio on or prior to the Effective Time.

 

7.8
       Required Approvals and Consents.

 

(a)
       All action required by law to authorize the execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby will have been duly and validly taken.

 

(b)
       All consents of or from all authorities required hereunder to consummate the transactions
contemplated herein, will have been delivered, made or obtained, and Samsara will have received copies thereof.

 

7.9Discharge
of Liabilities.DarkStar will have paid or discharged DarkStar’s Liabilities and will have provided Samsara with
satisfactory proof of such payments or discharges, such that DarkStar shall not have any outstanding Liabilities as of the Effective
Time, except for those Liabilities set forth on Schedule 4.10.

 

7.10Current
with all Filings.DarkStar shall be current with all of its filings of all forms and reports with the SEC.

 

7.11
       Adverse Changes. No material adverse change will have occurred in the business,
financial condition, prospects, assets or operations of DarkStar since January 31, 2018, the quarter-end date of the Company’s
quarterly report on Form 10-Q, as filed with the Commission on March 19, 2019.

 

7.12
       No Proceeding or Litigation. No suit, action, investigation, inquiry or other
proceeding by any authority or other person or entity will have been instituted or threatened which delays or questions the validity
or legality of the transactions contemplated hereby or which, if successfully asserted, would, in the reasonable judgment of the
Purchasing Parties, individually or in the aggregate, otherwise have a material adverse effect on Darkstar’s business, financial
condition, prospects, assets or operations or prevent or delay the consummation of the transactions contemplated by this Agreement.

 

8.       Conditions
to Obligations of DarkStar and Bengio

 

Notwithstanding
anything in this Agreement to the contrary, the obligation of DarkStar and Bengio to effect the transactions contemplated herein
will be subject to the satisfaction at or prior to the Effective Time the following conditions:

 

8.1Form
S-4 Registration Statement.The Registration Statement on Form S-4 shall have been declared effective by the Securities
and Exchange Commission.

    	 	8	 

     

    

 

8.2
       Representations and Warranties True. The representations and warranties of Samsara
contained in this Agreement will be true, complete and accurate in all material respects as of the date when made and at and as
of the Effective Time, as though such representations and warranties were made at and as of such time, except for changes permitted
or contemplated in this Agreement, and except insofar as the representations and warranties relate expressly and solely to a particular
date or period, in which case they will be true and correct at the Effective Time with respect to such date or period.

 

8.3
       Performance. Samsara will have performed and complied in all material respects
with all agreements, covenants, obligations and conditions required by this Agreement to be performed or complied with by Samsara
at or prior to the Effective Time.

 

8.4
       Required Approvals and Consents. All action required by law to authorize the
execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will have been
duly and validly taken.

 

8.5
       Adverse Changes. No material adverse change will have occurred in the ability
of Samsara to perform their obligations under this Agreement.

 

9.       Intentionally
Left Blank

 

10.       Indemnification.

 

10.1       Indemnification.
From and after the Effective Time, Bengio agrees to indemnify, defend and hold Samsara and the Samsara Stockholders, their affiliates
(including, after the Effective Time, the Surviving Corporation) and their respective officers, directors, stockholders, employees,
agents and representatives (the “Indemnified Parties”) harmless from and in respect of any and all losses,
damages, costs and reasonable expenses (including reasonable fees and expenses of counsel including both those incurred in connection
with the defense or prosecution of the indemnifiable claim and those incurred in connection with the enforcement of this provision,
whether or not related to a third-party claim) (collectively, “Losses”), that they may incur arising out of
or due to any (a) breach of any representation or warranty of DarkStar or Bengio contained in this Agreement or (b) breach of
any covenant of DarkStar or Bengio contained in this Agreement or (c) agreements between Bengio and Raanan Bar Zohar and/or between
Bengio and TCSM Inc.

 

10.2       Procedure.
If there occurs an event which a party asserts is an indemnifiable event pursuant to Section 10.1, the party or parties
seeking indemnification shall notify the other party or parties obligated to provide indemnification (the
“Indemnifying Party”) promptly, but no later than forty-five (45) days, after such Indemnified Party
receives written notice of any claim, event or matter as to which indemnity may be sought; provided that the failure of the
Indemnified Party to give notice as provided shall not relieve any Indemnifying Party of its obligations under Section 10.1,
except to the extent that such failure materially prejudices the rights of any such Indemnifying Party. In the event of any
claim, action, suit, proceeding or demand asserted by any Person who is not a party (or a successor to a party) to this
Agreement (a “Third-Party Claim”) which is or gives rise to an indemnification claim, the Indemnifying
Party may elect within fifteen (15) business days to acknowledge its obligations to indemnify the Indemnified Party therefor
and to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the
Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such
defense at the Indemnified Party’s expense, which shall include counsel of its choice; provided that the
Indemnified Party shall have the right to employ, at the Indemnifying Party’s expense, one counsel of its choice in
each applicable jurisdiction (if more than one jurisdiction is involved) to represent the Indemnified Party if, in the
Indemnified Party’s reasonable judgment, there exists an actual conflict of interest between the Indemnified Party and
the Indemnifying Party or if the Indemnifying Party (i) elects not to defend, compromise or settle a Third-Party Claim, (ii)
fails to notify the Indemnified Party within the required time period of its election as provided in this section, or (iii)
having timely elected to defend a Third-Party Claim, fails, in the reasonable judgment of the Indemnified Party, after at
least fifteen (15) days’ notice to the Indemnifying Party, to adequately prosecute or pursue such defense, and in each
such case the Indemnified Party may defend such Third-Party Claim on behalf of and for the account and risk of the
Indemnifying Party. The Indemnifying Party, in the defense of any such claim or litigation, shall not, except with the
consent of the Indemnified Party, consent to entry of any judgment or entry into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to the Indemnified Party of a release from all liability
in respect of such claim or litigation. The Indemnified Party shall not settle or compromise any such claim without prior
written consent of the Indemnifying Party, which consent shall not be unreasonably withheld. The Indemnified Party shall
furnish such information regarding itself or the claim in question and render assistance as the Indemnifying Party may
reasonably request in writing and as shall be reasonably required in connection with the defense of such claim and litigation
resulting therefrom.

 

    	 	9	 

     

    

10.3       Without
derogating from Section 10.1 above, in the event of a breach of Section 6.1.3, and in the event Bengio fails to make payment in
cash to the Surviving Corporation in the amount of Bengio’s liability within seven (7) days of written notice, then the
Surviving Corporation may demand and implement the discharge of Bengio’s liability by having Bengio forfeit and transfer
to the Surviving Corporation such number of shares of the Surviving Corporation Stock held by Bengio that is equal in value to
Bengio’s liability for breach of Section 6.1.3. The value of each share shall be determined according to the average closing
price of the Surviving Corporation's common stock during the seven (7) day period preceding Bengio's failure to make payment.

 

11.
       Miscellaneous

 

11.1       Entire
Agreement. This Agreement constitutes the entire agreement between the Parties in respect of the matters referred to
herein and supersedes all prior agreements, written or oral, with respect hereof.

 

11.2       Amendments.
No alteration, amendment, modification or interpretation of this Agreement or any provision of this Agreement shall be valid and
binding upon the Parties unless such alteration, amendment, modification or interpretation is in written form executed by both
of the Parties hereto.

 

11.3       Execution.
The Parties shall execute and deliver all such further documents and instruments and do all such acts and things as any Party
may reasonably require in order to carry out the full intent and meaning of this Agreement.

 

11.4       Invalidity.
If any term or provision of this Agreement is determined to be illegal, unenforceable or invalid, in whole or in part for
any reason, such term or provision shall be deemed limited in scope and effect to the minimum extent necessary to make such term
or provision legal, enforceable and valid, and in the event no such limiting construction may be made, the term or provision shall
be stricken from this Agreement and such term or provision shall not affect the legality, enforceability or validity of the remainder
of this Agreement.

 

11.5       Headings.
The headings in this Agreement are solely for convenience of reference and shall be given no effect in the meaning or interpretation
of this Agreement.

 

11.6       Notice.
Any notice, request, demand and other communication to be given under this Agreement shall be in writing and shall be delivered
to the Parties at their respective e-mail addresses

below
or to such other addresses as may be given in writing by the Parties in the manner provided for in this paragraph and shall be
deemed to be delivered on the date of actual delivery.

 

Notice
to DarkStar and Bengio:

Avraham
Bengio

bengio2010@gmail.com

 

Notice
to Samsara:

Atara
Dzikowski

atara@samsaraluggage.com

 

11.7       Successors
and Assigns. This Agreement shall enure to the benefit of and be binding upon the Parties and their respective heirs,
executors, administrators, successors and assigns.

 

11.8       Governing
Jurisdiction. This Agreement and all related agreements, exhibits and attachments shall be subject to, governed by
and construed in accordance with the laws of the State of New York.  Jurisdiction and venue shall reside in the State of
New York for any action or proceeding instituted by Bengio against Samsara or Darkstar. Jurisdiction and venue shall reside in
the State of Israel for any action or proceeding instituted by Samsara or Darkstar against Bengio.

 

11.9       Counterparts.
This Agreement may be executed and sent by fax and in counterparts, as is deemed necessary to carry out the execution of this
Agreement, each of which will be deemed an original, but all of which taken together will constitute one and the same instrument.

 

    	 	10	 

     

    

IN
WITNESS WHEREOF, the parties have executed this Agreement on May 10, 2019.

 

	DarkStar
        Ventures, Inc.

         

         

        /s/
        Avraham Bengio

        Name:
        Avraham Bengio

        Title:
        CEO

        Date:

         

        Avraham
        Bengio

         

         

        /s/
        Avraham Bengio

        Avraham
        Bengio

        Date:

         
	 

         

         

	 

         

         

         

 

	Samsara
        Luggage, Inc. 

         

         

        /s/Atara
        Dzikowski

        Name:
        Atara Dzikowski

        Title:
        CEO

        Date:

         
	 

         

         

         

         

         

         

         

	 

 

    	 	11

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