Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT FOR
INVESTORS

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of June 19,
2017,1 by and among Eton Pharmaceuticals, Inc., a Delaware corporation (“Company”), and the persons
listed on Schedule A hereto, referred to individually as the “Stockholder” and collectively as the “Stockholders”.

 

A.           In
connection with the Securities Purchase Agreement by and among the parties hereto, dated June 19,
2017 (the “Securities Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions
of the Securities Purchase Agreement, to issue and sell to each Investor Shares (as defined in the Securities Purchase Agreement),
which will be convertible into Conversion Shares (as defined in the Securities Purchase Agreement) in accordance with the terms
of the Series A Preferred Stock, par value $0.001 (the “Series A Preferred Stock”), set forth in the Company’s
Certificate of Incorporation, including the Certificate of Designations of Preferences and Rights of Series A Convertible Preferred
Stock (the “Certificate”).

 

B.           To
induce the Stockholders to consummate the transactions contemplated by the Securities Purchase Agreement, the Company has agreed
to provide certain registration rights under the Securities Act, and applicable state securities laws to the Stockholders, and
their assignees or successors in interest, certain rights to provide for the registration for resale of the Conversion Shares by
means of a Registration Statement under the Securities Act, pursuant to the terms of this Agreement. Such Conversion Shares acquired
by the Stockholders and their assignees or successors in interest, are referred to collectively as the “Registrable Securities”.

 

C.           Unless
otherwise provided in this Agreement, capitalized terms used herein shall have the respective meanings set forth in Section 13
hereof.

 

NOW, THEREFORE,
in consideration of the above premises and the mutual covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and Stockholder hereby agree as follows:

 

		1.	Registration.

 

(a)          Piggyback
Registrations Rights. If, at any time after the Company shall become subject to the periodic reporting obligations (a “Reporting
Company”) under the Securities and Exchange Act of 1934, as amended (the “1934 Act”) through the date
that is five years after the date the Company becomes a Reporting Company, there is not an effective Registration Statement covering
the Registrable Securities, and the Company shall determine to prepare and file with the Commission a Registration Statement relating
to an offering for its own account or the account of others under the Securities Act of any of its equity securities (other than
on Form S-4 or Form S-8, each as promulgated under the Securities Act, or their then equivalent relating to equity securities to
be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with
stock option or other employee benefit plans), then the Company shall send to the Stockholders a written notice of such determination
at least twenty (20) days prior to the filing of any such Registration Statement and shall, include in such Registration Statement
all Registrable Securities requested by any Stockholder hereunder to be included in the registration within ten (10) days after
the Company sends such notice to the Stockholders (the “Piggyback Shares”) for resale and offer on a continuous
basis pursuant to Rule 415; provided, that (i) if, at any time after giving written notice of its intention to register any securities
and prior to the effective date of the Registration Statement filed in connection with such registration, the Company determines
for any reason not to proceed with such registration, the Company will be relieved of its obligation to register any Registrable
Securities in connection with such registration, (ii) in case of a determination by the Company to delay registration of its securities,
the Company will be permitted to delay the registration of Registrable Securities for the same period as the delay in registering
such other securities, (iii) each Stockholder is subject to confidentiality obligations with respect to any information gained
in this process or any other material non-public information he, she or it obtains, (iv) each Stockholder or assignee or successor
in interest is subject to all applicable laws relating to insider trading or similar restrictions; and (v) if all of the Registrable
Securities of the Stockholders cannot be so included due to Commission Comments or Underwriter Cutbacks, then the Company may reduce,
in accordance with the provisions of Section 1(c) hereof, the number of securities covered by such Registration Statement to the
maximum number which would enable the Company to conduct such offering in accordance with the provisions of Rule 415.

 

 

1 The Agreement will be dated
as of the Initial Closing Date.

 

    	 	1	 

     

    

 

 

(b)          Initial
Registration Statement. At the election of each Stockholder, the Company shall be required to include up to all Piggyback Shares
held by such Stockholder for resale and offer on a continuous basis pursuant to Rule 415 in the first Registration Statement filed
after the date that it becomes a Reporting Company (the “Initial Registration Statement”); provided, however,
that if all of the Registrable Securities of the Stockholders cannot be so included due to Commission Comments or Underwriter Cutbacks,
then the Company may reduce, in accordance with the provisions of Section 1(c) hereof, the number of securities covered by the
Initial Registration Statement to the maximum number which would enable the Company to conduct such offering in accordance with
the provisions of Rule 415.

 

(c)          Cutback
Provisions. In the event all of the Registrable Securities cannot be or are not included in a Registration Statement due to
Commission Comments or Underwriter Cutbacks, the Company and the Stockholders agree that securities shall be removed from such
Registration Statement in the following order until no further removal is required by Commission Comments or Underwriter Cutbacks:

 

(i)          First,
any securities held by any former employee, consultant or affiliate of the Company shall be removed, pro rata based on the number
of securities being registered for such former employees, consultants or affiliates held by all of the former employees of the
Company and any of their affiliates and successors in interest, whether pursuant to agreement or otherwise and any other person
with any registration rights outstanding on the date hereof;

 

(ii)         Second,
the securities held by National Securities Corporation (“National Securities”) and its members and affiliates,
if any, obtained solely by reason of providing services to the Company, which are being registered pursuant to any registration
rights agreement or otherwise (for clarity, any securities held by National Securities or its members or affiliates which were
acquired upon payment of a purchase price in cash or property will not be subject to this provision (c)(ii)); and

 

(iii)        Third,
the Registrable Securities held by the Stockholders that are requested to be included in the Registration Statement shall be removed,
pro rata based on the number of Registrable Shares held by each Stockholder in comparison to the number of Registrable Securities
held by all Stockholders who have requested to include any Registrable Securities in the Registration Statement.

 

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(d)          Mandatory
Registrations. In the event all of the Piggyback Shares of the Stockholders are not included in a Registration Statement due
to Commission Comments or Underwriter Cutbacks, the Company shall prepare and file an additional Registration Statement (the “Follow-up
Registration Statement”) with the Commission within sixty (60) days following the effectiveness of the previously filed
Registration Statement; provided, however, that the time period for filing the Follow-up Registration shall be extended
to the extent that the Commission publishes written Commission Guidance or the Company receives written Commission Guidance which
provides for a longer period before a Follow-up Registration Statement may be filed. The Follow-up Registration Statement shall
cover the resale of all of the Registrable Securities that were excluded from any previously filed Registration Statement. In the
event that all of the Piggyback Shares have not been registered in a Registration Statement after the Follow-up Registration Statement
has been declared effective, the Company shall use commercially reasonable efforts thereafter to register any remaining unregistered
Registrable Securities, subject to the provisions of Section 1(e) hereof.

 

(e)          Filing;
Content. The Company will use its commercially reasonable efforts to cause each Registration Statement pursuant to which any
Registrable Securities are included, including the Initial or Follow-up Registration Statement, to contain the Plan of Distribution
substantially similar to that attached hereto as Schedule B. The Company shall use its commercially reasonable efforts to
cause any Registration Statement filed under this Section 1, including the Initial and Follow-up Registration Statement, to be
declared effective under the Securities Act as promptly as practicable after the filing thereof and shall keep such Registration
Statement continuously effective under the Securities Act until the earlier of (i) one year after its Effective Date (provided,
however, the one year period shall be extended for any Grace Period), (ii) such time as all of the Registrable Securities covered
by such Registration Statement have been publicly sold by the Stockholders, or (iii) such time as all of the Registrable Securities
covered by such Registration Statement may be sold by the Stockholders pursuant to Rule 144 without regard to both the volume limitations
for sales as provided in Rule 144 and the limitations for such sales provided in Rule 144(i), if applicable, as determined by the
counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company's transfer
agent and the affected Stockholder (“Effectiveness Period”). By 5:00 p.m. (New York City time) on the business
day immediately following the Effective Date of a Registration Statement, the Company shall file with the Commission in accordance
with Rule 424 under the Securities Act the final Prospectus to be used in connection with sales pursuant to such Registration Statement
(whether or not such filing is technically required under such Rule).

 

(f)          Termination
of Registration Rights. The registration rights afforded to the Stockholders under this Section 1 shall terminate on the earliest
date when all Registrable Securities of the Stockholder either: (i) have been publicly sold by the Stockholder pursuant to a Registration
Statement, (ii) have been covered by an effective Registration Statement which has been effective for an aggregate period of sixteen
(16) months (whether or not consecutive), provided, however, the time period shall be calculated so as to exclude any Grace Period,
or (iii) may be sold by the Stockholder pursuant to Rule 144 without regard to both the volume limitations for sales as provided
in Rule 144 and the limitations for such sales provided in Rule 144(i), if applicable, as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the affected
Stockholder.

 

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		2.	Demand Registration Rights.

 

(a)          Demand
Right. Commencing on the date that is one hundred eighty (180) days after the Company becomes a Reporting Company, the Stockholders
as a group representing at least 50% of the Registrable Securities (a “Requesting Group”) shall have a separate
one-time right, by written notice to the Company, signed by such Stockholders (the “Demand Notice”), to request
the Company to register for resale all Registrable Securities included by the Requesting Group in the Demand Notice (the “Demand
Shares”) under and in accordance with the provisions of the Securities Act by filing with the Commission a Registration
Statement covering the resale of such Demand Shares (the “Demand Registration Statement”). A copy of the Demand
Notice also shall be provided by the Company to each of the other Stockholders who will have fifteen (15) days to notify the Company
in writing to include their Registrable Securities as part of the Demand Shares, the failure of which, however, shall not in any
way affect the rights of the Requesting Group pursuant to this Section 2(a). The Demand Registration Statement required hereunder
shall be on any form of registration statement then available for the registration of the Registrable Securities, as selected by
the Company in accordance with applicable law and regulation. The Company will use its commercially reasonable efforts to file
the Demand Registration Statement within forty-five (45) days of the receipt of the Demand Notice, provided if the Demand Notice
is given within the forty-five (45) days after the prior fiscal year end, then the Company will use its reasonably commercial efforts
to file the Demand Registration Statement within ninety (90) days of the fiscal year end of the Company. The Company shall use
its commercially reasonable efforts to cause the Demand Registration Statement to be declared effective under the Securities Act
as promptly as practicable after the filing thereof and to keep the Demand Registration Statement continuously effective under
the Securities Act during the Effectiveness Period.

 

(b)          Inclusion
of Other Registrable Shares and Cutback Provisions. If as a result of Commission Comments, not all shares are included that
are desired to be included in a Registration Statement for the Demand Shares, the provisions of Section 1(c) shall apply, subject
to the Demand Priority (as defined below) of the Requesting Group. Pursuant to the piggyback registration rights granted under
this Agreement, the Company may include the Registrable Shares of the other Stockholders which will be subject to the provision
of Section 1(c) hereof, except that under Section 1(c)(iii), there will be no cutback of the Registrable Securities of the Requesting
Group until the Stockholders of Piggyback Shares and the shares of any other person exercising piggyback rights under any other
registration rights agreement (except for National Securities and their current and former affiliates, which shall have the priority
established in Section 1(c)) have been removed, and thereafter if any further Registrable Securities have to be removed then those
of the Requesting Group will be removed pro rata (the “Demand Priority”). Notwithstanding the foregoing, if
any other securities of any person other than the Stockholders or the Requesting Group or National Securities and their current
and former affiliates are included on the Demand Registration Statement, such securities will be removed, if required pursuant
to Commission Comments, after removal of the securities indicated in Section 1(c)(i) and before the securities indicated in Section
1(c)(ii), as such persons decide among themselves, and if there is no agreement at to such removal provided to the Company within
a reasonable time, time being of the essence, then all the such securities will be removed.

 

(c)          Termination
of Demand Registration Rights. The registration rights afforded to each Stockholder under this Section 2 shall terminate on
the earliest date when all Registrable Securities of the Stockholder either: (i) have been publicly sold by the Stockholder pursuant
to a Registration Statement, or (ii) may be sold by the Stockholder pursuant to Rule 144 without regard to both the volume limitations
for sales as provided in Rule 144 and the limitations for such sales provided in Rule 144(i), if applicable, as determined by the
counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer
agent and the affected Holder in its reasonable discretion.

 

3.            Registration
Procedures. Whenever any Registrable Securities are to be registered pursuant to this Agreement, the Company shall use its
commercially reasonable efforts to effect the registration and sale of such Registrable Securities in accordance with the intended
method of disposition thereof, and pursuant thereto the Company shall have the following obligations:

 

(a)          The
Company shall prepare and file with the Commission a Registration Statement with respect to such Registrable Securities and use
its commercially reasonable efforts to cause such Registration Statement to become effective.

 

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(b)          The
Company shall prepare and file with the Commission such amendments (including post-effective amendments) and supplements to a Registration
Statement and the Prospectus used in connection with such Registration Statement, which Prospectus is to be filed pursuant to Rule
424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective at all times during
the Effectiveness Period, and, during such period, comply with the provisions of the Securities Act with respect to the disposition
of all Registrable Securities of the Company covered by such Registration Statement until such time as all of such Registrable
Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof
as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement which are required
to be filed pursuant to this Agreement by reason of the Company filing a report on Forms 10-K, 10-Q or Current Report on Form 8-K,
or any analogous report under the Securities Exchange Act, the Company shall have incorporated such report by reference into such
Registration Statement, if applicable, or shall file such amendments or supplements with the Commission on the same day on which
the Securities Exchange Act report is filed which created the requirement for the Company to amend or supplement such Registration
Statement.

 

(c)          The
Company shall furnish to each Stockholder holding Registrable Securities in any Registration Statement, without charge, (i) promptly
after the same is prepared and filed with the Commission at least one copy of such Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by such seller,
all exhibits and each preliminary Prospectus, (ii) upon the effectiveness of any Registration Statement, ten (10) copies of the
Prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as
such seller may reasonably request), and (iii) such other documents, including copies of any preliminary or final Prospectus, as
such seller may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned
by such seller.

 

(d)          The
Company shall use its commercially reasonable efforts to (i) register and qualify, unless an exemption from registration and qualification
applies, the resale by any seller of the Registrable Securities covered by a Registration Statement under such other securities
or “blue sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions,
such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary
to maintain the effectiveness thereof during the Effectiveness Period, (iii) take such other actions as may be necessary to maintain
such registrations and qualifications in effect at all times during the Effectiveness Period, and (iv) take all other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that
the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general taxation in any such
jurisdiction, or (z) file a general consent to service of process in any such jurisdiction.

 

(e)          The
Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of Registrable Securities for sale in any jurisdiction and, if such an
order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practicable time and to notify
the Stockholders holding any Registrable Securities included in the offering under such Registration Statement of such order and
the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

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(f)          The
Company shall notify the Stockholder in writing of the happening of any event, as promptly as practicable after becoming aware
of such event, as a result of which the Prospectus included in a Registration Statement, as then in effect, includes an untrue
statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice
contain any material, nonpublic information), and, subject to Section 3(r), promptly prepare a supplement or amendment to such
Registration Statement to correct such untrue statement or omission, and deliver ten (10) copies of such supplement or amendment
to the Stockholder (or such other number of copies as the Stockholder may reasonably request).

 

(g)          The
Company shall promptly notify the Stockholder in writing (i) when a Prospectus or any Prospectus supplement or post-effective amendment
has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness
shall be delivered to the Stockholder by facsimile on the same day of such effectiveness or by overnight delivery), (ii) of any
request by the Commission for amendments or supplements to a Registration Statement or related Prospectus or related information,
and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be
appropriate.

 

(h)          If
the Stockholder is required under applicable securities laws to be described in a Registration Statement as an underwriter, at
the reasonable request of such Stockholder, the Company shall use its best efforts to furnish to such Stockholder, on the date
of the effectiveness of such Registration Statement and thereafter from time to time on such dates as the Stockholder may reasonably
request (i) a letter, dated such date, from the Company’s independent certified public accountants in form and substance
as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed
to the Stockholder, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration
Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed to the Stockholder.

 

(i)          If
the Stockholder is required under applicable securities laws to be described in a Registration Statement as an underwriter, then
at the request of such Stockholder in connection with such Stockholder’s due diligence requirements, the Company shall make
available for inspection by (i) the Stockholder, (ii) the Stockholder’s legal counsel, and (iii) one firm of accountants
or other agents retained by the Stockholder (collectively, the “Inspectors”), all pertinent financial and other
records, and pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall
be reasonably deemed necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all
information which any Inspector may reasonably request; provided, however, that each Inspector shall agree to hold
in strict confidence and shall not make any disclosure (except to the Stockholder) or use of any Record or other information which
the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (a)
the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is
otherwise required under the Securities Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena
or order from a court or government body of competent jurisdiction, or (c) the information in such Records has been made generally
available to the public other than by disclosure in violation of this or any other agreement of which the Inspector has knowledge.
Each Stockholder agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense,
to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.
Nothing herein (or in any other confidentiality agreement between the Company and the Stockholder) shall be deemed to limit the
Stockholder’s ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.

 

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(j)          The
Company shall hold in confidence and not make any disclosure of information concerning the Stockholder provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of
such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent
jurisdiction, (iv) such information has been made generally available to the public other than by disclosure in violation of this
Agreement or any other agreement, or (v) the Stockholder provides information to the Company intended for inclusion in a Registration
Statement. The Company agrees that it shall, upon learning that disclosure of such information concerning the Stockholder is sought
in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to the Stockholder
if permitted by applicable law or regulation and allow the Stockholder, at the Stockholder’s expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order for, such information.

 

(k)         The
Company shall (i) if applicable, use its best efforts to cause all of the Registrable Securities covered by a Registration Statement
to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed,
if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) otherwise, use
its commercially reasonable efforts to secure designation and quotation of all of the Registrable Securities covered by a Registration
Statement on any one of the different levels of The NASDAQ Stock Market, or (iii) if, despite the Company’s best efforts
or commercially reasonable efforts, as applicable, to satisfy, the preceding clauses (i) and (ii) the Company is unsuccessful in
satisfying the preceding clauses (i) and (ii), to instead secure the inclusion for quotation on the Over-the-Counter Bulletin Board
for such Registrable Securities and, without limiting the generality of the foregoing, to use its commercially reasonable efforts
to encourage at least two market makers to register with the Financial Industry Regulatory Authority, Inc. (“FINRA”)
as such with respect to such Registrable Securities. For the avoidance of doubt, subject to and in accordance with Section 5, the
Company shall pay all fees and expenses of the Company in connection with satisfying its obligation under this Section 3(k).

 

(l)          If
requested by the Stockholder, the Company shall (i) as soon as practicable incorporate in a Prospectus supplement or post-effective
amendment such information as the Stockholder reasonably requests to be included therein relating to the sale and distribution
of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being
offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be
sold in such offering; (ii) as soon as practicable make all required filings of such Prospectus supplement or post-effective amendment
after being notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment; and (iii) as
soon as practicable, supplement or make amendments to any Registration Statement if reasonably requested by the Stockholder holding
any Registrable Securities.

 

(m)        The
Company shall cooperate with each Stockholder who holds Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Stockholder may reasonably request and registered in such names as the Stockholder may request.

 

(n)         The
Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement to
be registered with or approved by such other U.S. governmental agencies or authorities, but only in matters not contemplated Section
3(d) by or reasonably related to such matters (which matters are to be governed exclusively by Section 3(d)), as may be strictly
necessary to consummate the disposition of such Registrable Securities by the Stockholder strictly in accordance with the Plan
of Distribution included in the Registration Statement (as such Plan of Distribution may be modified from time to time in any filing
with the Commission).

 

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(o)         The
Company shall make generally available to its security holders as soon as practicable, but not later than ninety (90) days after
the close of the period covered thereby (or, if different, within the period permitted for the filing of reports on Forms 10-K
or 10-Q), an earnings statement (in form complying with, and in the manner provided by, the provisions of Rule 158 under the Securities
Act) covering a twelve-month period beginning not later than the first day of the Company’s fiscal quarter next following
the Effective Date of a Registration Statement.

 

(p)         The
Company shall otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission
in connection with any registration hereunder.

 

(q)         Within
two (2) business days after a Registration Statement which covers Registrable Securities is ordered effective by the Commission,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Stockholder whose Registrable Securities are included in such Registration Statement) confirmation
that such Registration Statement has been declared effective by the Commission in the form attached hereto as Exhibit A
and the Irrevocable Transfer Agent Instructions in the form attached hereto as Exhibit B.

 

(r)          Notwithstanding
anything to the contrary herein, at any time after the Effective Date of a Registration Statement, the Company may delay the disclosure
of material, non-public information concerning the Company the disclosure of which at the time is not, in the good faith opinion
of the Board of Directors of the Company, in the best interest of the Company and not, after consultation with legal counsel, otherwise
required (a “Grace Period”); provided, that the Company shall promptly (i) notify the Stockholder in writing
of the existence of material, non-public information giving rise to a Grace Period (provided that in each notice the Company will
not disclose the content of such material, non-public information to the Stockholder) and the date on which the Grace Period will
begin, and (ii) notify the Stockholder in writing of the date on which the Grace Period ends; and, provided further, that no Grace
Period shall exceed sixty (60) consecutive days and during any three hundred sixty-five (365) day period such Grace Periods shall
not exceed an aggregate of one hundred twenty (120) days (each, an “Allowable Grace Period”). For purposes of
determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Stockholder receives the
notice referred to in clause (i) and shall end on and include the later of the date the Stockholder receives the notice referred
to in clause (ii) and the date referred to in such notice. The provisions of Section 3(f) hereof shall not be applicable during
the period of any Allowable Grace Period. Upon expiration of the Grace Period, the Company shall again be bound by Section 3(f)
with respect to the information giving rise thereto unless such material, non-public information is no longer applicable. Notwithstanding
anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee
of the Stockholder in connection with any sale of Registrable Securities with respect to which the Stockholder has entered into
a contract for sale, and delivered a copy of the Prospectus included as part of the applicable Registration Statement (unless an
exemption from such Prospectus delivery requirements exists), prior to the Stockholder’s receipt of the notice of a Grace
Period or, if earlier, Stockholders knowledge of the material, non-public information concerning the Company that gave rise to
the Grace Period, and for which the Stockholder has not yet settled.

 

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		4.	Obligations of the Stockholders.

 

(a)          At
least five (5) business days prior to the first anticipated filing date of a Registration Statement, the Company shall notify the
Stockholders in writing of the information the Company requires from each Stockholder if the Stockholder’s Registrable Securities
are to be included in such Registration Statement. It shall be a condition precedent to the obligations of the Company to complete
the registration pursuant to this Agreement with respect to any Registrable Securities of the Stockholder that the Stockholder
shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of
disposition of the Registrable Securities held by it as shall be reasonably required to effect the effectiveness of the registration
of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably
request.

 

(b)          The
Stockholder, by the Stockholder’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless the Stockholder
has notified the Company in writing of the Stockholder's election to exclude all of the Stockholder’s Registrable Securities
from such Registration Statement.

 

(c)          The
Stockholder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Sections
3(e) or 3(f) or of a Grace Period under Section 3(r), the Stockholder will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering such Registrable Securities until the Stockholder’s receipt of the copies
of the supplemented or amended Prospectus contemplated by Sections 3(e) or 3(f) or receipt of notice that no supplement or amendment
is required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares
of Common Stock to a transferee of the Stockholder in connection with any sale of Registrable Securities with respect to which
the Stockholder has entered into a contract for sale prior to the Stockholder’s receipt of a notice from the Company of the
happening of any event of the kind described in Sections 3(e) or 3(f) or of any Grace Period, or, if earlier, Stockholders knowledge
of the material, non-public information concerning the Company or the facts or circumstances that gave rise to the Grace Period
or of the Section 3(e) or 3(f) event, and for which the Stockholder has not yet settled.

 

(d)          The
Stockholder covenants and agrees that it will comply with the Prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to a Registration Statement.

 

5.            Registration
Expenses. All expenses incident to the Company’s performance of or compliance with this Agreement, including without
limitation all registration and filing fees, fees and expenses of compliance with securities or blue sky laws, printing expenses,
messenger and delivery expenses, fees and disbursements of custodians, and fees and disbursements of counsel for the Company and
all independent certified public accountants, underwriters (excluding discounts, commissions and placement agent fees) and other
Persons retained by the Company (all such expenses being herein called “Registration Expenses”), shall be borne
by the Company. Further, the Company shall pay its internal expenses (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties), the expense of any annual audit or quarterly review, the
expense of any liability insurance and the expenses and fees for listing the securities to be registered on each securities exchange
on which similar securities issued by the Company are then listed.

 

    	 	9	 

     

    

 

		6.	Indemnification.

 

In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

 

(a)          To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Stockholder, the
directors, officers, members, partners, employees, agents, representatives of, and each Person, if any, who controls the Stockholder
within the meaning of the Securities Act or the Securities Exchange Act (each, an “Indemnified Person”), against
any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts
paid in settlement or expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing
or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court
or governmental, administrative or other regulatory agency, body or the Commission, whether pending or threatened, whether or not
an indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject
insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based
upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective
amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue
sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the
omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein
not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary Prospectus
if used prior to the effective date of such Registration Statement, or contained in the final Prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the Commission) or the omission or alleged omission to state
therein any material fact necessary to make the statements made therein, in the light of the circumstances under which the statements
therein were made, not misleading, (iii) any violation or alleged violation by the Company of the Securities Act or the Securities
Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating
to the offer or sale of the Registrable Securities pursuant to a Registration Statement or (iv) any violation of this Agreement
(the matters in the foregoing clauses (i) through (iv) being, collectively, “Violations”). Subject to Section
6(c), the Company shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for
any legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with
information furnished in writing to the Company by such Indemnified Person or by a Related Information Provider expressly for use
in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto and (ii) shall
not be available to the extent such Claim is based on a failure of the Stockholder to deliver or to cause to be delivered the Prospectus
made available by the Company, including a corrected Prospectus, if such Prospectus or corrected Prospectus was timely made available
by the Company pursuant to Section 3(c); and (iii) shall not apply to amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person
and shall survive the transfer of the Registrable Securities by the Stockholder pursuant to Section 10. “Related Information
Provider” means, in respect of any Indemnified Person, the Stockholder to which such Indemnified Person is related or
another Indemnified Person that is related to the Stockholder to which such Indemnified Person is related.

 

    	 	10	 

     

    

 

(b)          To
the fullest extent permitted by law, in connection with any Registration Statement in which a Stockholder’s Registrable Securities
are included or in which a Stockholder is otherwise participating, such Stockholder will severally and not jointly indemnify and
hold harmless the Company, each of its directors, each of its officers who has signed the Registration Statement, each Person,
if any, who controls the Company within the meaning of the Securities Act, any underwriter, any other Stockholder or other Person
selling securities in such Registration Statement and any controlling person of any such underwriter or other Stockholder or other
Person (each an “Other Indemnified Person”), against any Claims or Indemnified Damages to which any of them
may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise
out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance
upon and in conformity with written information furnished by such Stockholder or by a Related Information Provider expressly for
use in connection with such Registration Statement; and each such Stockholder will pay, as incurred, any legal or other expenses
reasonably incurred by any Other Indemnified Person intended to be indemnified pursuant to this Section 6(b), in connection with
investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section
6(b) shall not apply to amounts paid in settlement of any such Claim if such settlement is effected without the prior written consent
of the Stockholder, which consent shall not be unreasonably withheld; provided, further, however, that the
Stockholder shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the
net proceeds to the Stockholder as a result of the sale of Registrable Securities pursuant to such Registration Statement, except
in the case of fraud by such Stockholder. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Other Indemnified Person and shall survive the transfer of the Registrable Securities by the Stockholder
pursuant to Section 10.

 

(c)          Promptly
after receipt by an Indemnified Person or Other Indemnified Person under this Section 6 of notice of the commencement of any action
or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Other Indemnified
Person shall, if a claim for indemnification in respect thereof is to be made against any indemnifying party under this Section
6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right
to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed,
to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and reasonably satisfactory
to the Indemnified Person or the Other Indemnified Person, as the case may be; provided, however, that an Indemnified
Person or Other Indemnified Person shall have the right to retain its own counsel with the fees and expenses of not more than one
counsel for all such Indemnified Persons or all such Other Indemnified Persons to be paid by the indemnifying party, if, in the
reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person
or Other Indemnified Person and the indemnifying party would be inappropriate due to actual or potential differing interests between
such Indemnified Person or Other Indemnified Person and any other party represented by such counsel in such proceeding. The Other
Indemnified Person or Indemnified Person, as applicable, shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information
reasonably available to such Other Indemnified Person or such Indemnified Person which relates to such action or Claim. The indemnifying
party shall keep the Other Indemnified Person or Indemnified Person, as applicable, reasonably apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement
of any action, claim or proceeding effected without its prior written consent; provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent
of the Other Indemnified Person or Indemnified Person, as applicable, consent to entry of any judgment or enter into any settlement
or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Other
Indemnified Person or such Indemnified Person of a release from all liability in respect to the Claim at issue, and such settlement
shall not include any admission as to fault on the part of such Other Indemnified Person or such Indemnified Person. Following
indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Other Indemnified Person
or Indemnified Person, as applicable, with respect to all third parties, firms or corporations relating to the matter for which
indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Other Indemnified
Person, as applicable, under this Section 6, except to the extent that the indemnifying party is materially prejudiced in its ability
to defend such action.

 

    	 	11	 

     

    

 

(d)          The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred, subject to an undertaking by the Indemnified Person
or the Other Indemnified Person, as applicable, to return such payments to the extent a court of competent jurisdiction or other
competent authority determines that such payments were unlawful or were not required under this Agreement.

 

(e)          Without
any duplication or multiplication of damages, the indemnity agreements contained herein shall be in addition to (i) any cause of
action or similar right of the Other Indemnified Person or Indemnified Person against the indemnifying party or others, and (ii)
any liabilities the indemnifying party may be subject to pursuant to the law.

 

(f)          Unless
suspended by the underwriting agreement applicable to any registration, the obligations of the Company and Stockholders under this
Section 6 shall survive the completion of any offering of Registrable Securities in a Registration Statement under this Agreement,
or otherwise.

 

7.            Contribution.
To the extent any indemnification by an indemnifying party is prohibited or limited by law, such indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person
is guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Securities Act) in connection with such sale
shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of
proceeds received by such seller from the sale of such Registrable Securities pursuant to such Registration Statement

 

8.            No
Delay of Registration. No Stockholder shall have any right to obtain or seek an injunction restraining or otherwise delaying
any registration as the result of any controversy that might arise with respect to the interpretation or implementation of this
Agreement.

 

9.            Reports
under Securities Exchange Act. With a view to making available to the Stockholder the benefits of Rule 144 promulgated under
the Securities Act or any other similar rule or regulation of the Commission that may at any time permit the Stockholder to sell
securities of the Company to the public without registration, once the Company becomes a Reporting Company, the Company agrees
to use its commercially reasonable efforts to continue to be a Reporting Company for five years and further during such time it
is a Reporting Company the Company agrees to use its best efforts to:

 

(a)          make
and keep public information available, as those terms are understood and defined in Rule 144;

 

    	 	12	 

     

    

 

(b)          file
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Securities Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents
is required for the applicable provisions of Rule 144; and

 

(c)          furnish
to the Stockholder so long as the Stockholder owns Registrable Securities, promptly upon request, (i) a written statement by the
Company, if true, that it has complied with the reporting requirements of Rule 144, the Securities Act and the Securities Exchange
Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested to permit the Stockholder to sell such securities
pursuant to Rule 144 without registration.

 

10.          Assignment
of Registration Rights. The rights under this Agreement shall be automatically assignable by the Stockholder to any transferee
of all or any portion of the Stockholder’s Registrable Securities if: (i) the Stockholder agrees in writing with the transferee
or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such
assignment; (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a)
the name and address of such transferee or assignee, and (b) the securities with respect to which such registration rights are
being transferred or assigned; (iii) immediately following such transfer or assignment the further disposition of such securities
by the transferee or assignee is or might be restricted under the Securities Act and applicable state securities laws; and (iv)
at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee
agrees in writing with the Company to be bound by all of the provisions contained herein.

 

11.          Subsequent
Registration Rights. The Company agrees that after the date hereof and excluding any registration rights agreement with National
Securities or its members and affiliates, it will not grant to any person any registration right or proceed to register any securities
of any person unless it provides in such agreement or registration that any securities being registered under such agreement or
registration will be subject to the cutback provisions of this Agreement as provided in Section 1(c) and Section 2(b).

 

12.          Amendment
of Registration Rights. Provisions of this Agreement may be amended and the observance thereof may be waived (either generally
or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the holders
of at least a majority of the then outstanding Registrable Securities. Any amendment so effected will be binding upon all Holders,
whether or not such Stockholder consents thereto.

 

13.          Definitions.

 

(a)          “Commission”
means the Securities and Exchange Commission.

 

(b)          “Commission
Comments” means written comments pertaining solely to Rule 415 or other comments to the extent they relate to Rule
415 which are received by the Company from the Commission, and a copy of which shall have been provided by the Company to the Stockholder,
to a filed Registration Statement which limit the amount of shares which may be included therein to a number of shares which is
less than such amount sought to be included thereon as filed with the Commission.

 

(c)          “Commission
Guidance” means (i) any publicly-available written or oral guidance, comments, requirements or requests of the Commission
staff, (ii) the Securities Act or (iii) the Securities Exchange Act.

 

    	 	13	 

     

    

 

(d)          “Common
Stock” means the common stock, $0.001 par value per share, of the Company.

 

(e)          “Effective
Date” means, as to a Registration Statement, the date on which such Registration Statement is first declared effective
by the Commission.

 

(f)          “Person”
means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

 

(g)          “Prospectus”
means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective Registration Statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus

 

(h)          “Registrable
Securities” means (i) the Conversion Shares issued or issuable to the Stockholder or its assignees or successor in interest
pursuant to conversion of the Shares and (ii) any other shares of Common Stock or any other securities issued or issuable with
respect to the securities referred to in clause (i) by way of a stock dividend or stock split or in connection with an exchange
or combination of shares, recapitalization, merger, consolidation or other reorganization.

 

(i)          “Registration
Statement” means any registration statement (including, without limitation, the Initial Registration Statement or the
Follow-up Registration Statement) required to be filed hereunder (which, at the Company’s option, may be an existing registration
statement of the Company previously filed with the Commission, but not declared effective), including (in each case) the Prospectus,
amendments and supplements to the Registration Statement or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference or deemed to be incorporated by reference in the Registration Statement.

 

(j)          “Reporting
Company” means a company that is obligated to file periodic reports under Sections 13 or 15(d) of the Securities Exchange
Act.

 

(k)          “Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission that may at any time permit the Stockholder to sell
securities of the Company to the public without registration.

 

(l)          “Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

(m)         “Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

(n)         “Securities
Act” means the Securities Act of 1933, as amended from time to time together with the regulations promulgated thereunder.

 

    	 	14	 

     

    

 

(o)          “Securities
Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, together with the regulations
promulgated thereunder.

 

(p)          “Underwriter
Cutbacks” means any reduction in the number of shares suggested by any managing underwriter to be included in a registration
under a Registration Statement based upon the guidance in this Section 13(p). In connection with any offering involving an underwriting
of shares of the Company’s capital stock, the Company shall not be required under Section 1 to include any of the Stockholders’
securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters,
and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering
by the Company. If the total amount of securities, including Registrable Securities, requested by stockholders to be included in
such offering exceeds the amount of securities to be sold other than by the Company that the underwriters determine in their sole
discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that
number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion will not
jeopardize the success of the offering (the securities so included to be apportioned pro rata among the selling shareholders according
to the total amount of securities entitled to be included therein owned by each selling shareholder or in such other proportions
as shall mutually be agreed to by such selling shareholders); provided, that any such cutback will be effected in accordance with
the priorities established by Section 1(c); provided further that in no event shall the amount of securities of the selling Stockholders
included in the offering be reduced below 30% of the total amount of securities included in such offering.

 

14.          Market
Stand-Off. In connection with the Initial Public Offering of the Company’s securities, if any, each Stockholder hereby
agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities
of the Company however or whenever acquired (other than those included in the registration, if any) without the prior written consent
of the managing or lead underwriter of such offering, for a period of one hundred eighty (180) days from the effective date of
such registration (the “Restricted Period”), and to the extent requested by the underwriter, each Stockholder
shall, at the time of such offering, execute an agreement reflecting these requirements binding on such Stockholder that are substantially
consistent with this Section 14; provided, however, that if during the last seventeen (17) days of the Restricted
Period the Company issues an earnings release or material news or a material event relating to the Company occurs, or prior to
the expiration of the Restricted Period the Company announces that it will release earnings results during the sixteen (16) day
period beginning on the last day of the restricted period, then, upon the request of the managing underwriter, to the extent required
by any FINRA rules, the restrictions imposed by this Section 14 shall continue to apply until the end of the third (3rd) trading
day following the expiration of the fifteen (15) day period beginning on the issuance of the earnings release or the occurrence
of the material news or material event. In no event will the Restricted Period extend beyond two hundred sixteen (216) days after
the effective date of the registration statement. In order to enforce the restriction set forth above or any other restriction
agreed by Stockholder, including without limitation any restriction requested by the underwriters of any Initial Public Offering
of the securities of the Company agreed by such Stockholder, the Company may impose stop-transfer instructions with respect to
any security acquired under or subject to this Agreement until the end of the applicable stand-off period. The Company’s
underwriters shall be third-party beneficiaries of the agreement set forth in this Section 14. Each Stockholder agrees that prior
to the Company’s Initial Public Offering it will not transfer securities of the Company unless each transferee agrees in
writing to be bound by all of the provisions of this Section 14, provided that this Section 14 shall not apply to transfers
pursuant to a Registration Statement.

 

Each Stockholder agrees that a legend reading
substantially as follows shall be placed on all certificates representing all Registrable Securities of each Stockholder issued
before the Company’s Initial Public Offering (and the shares or securities of every other person subject to the restriction
contained in this Section 14):

 

    	 	15	 

     

    

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO A LOCK-UP PERIOD OF UP TO 180 DAYS AFTER THE EFFECTIVE DATE OF THE ISSUER’S REGISTRATION STATEMENT FILED UNDER
THE ACT, AS AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SECURITIES, A COPY OF WHICH
MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE. SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF THESE SHARES.

 

After the Company’s Initial Public
Offering and expiration of any lock-up period, upon request of any Stockholder who is a holder of record of the shares represented
by any stock certificate(s) bearing such legend and the surrender of such certificate(s) in connection with such request, the Company
shall cause its transfer agent to promptly issue replacement certificate(s) not bearing such legend representing the shares represented
by such surrendered stock certificate(s).

 

		15.	Miscellaneous.

 

(a)          A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record
owner of such Registrable Securities.

 

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

 

If to the Company:

 

Eton Pharmaceuticals, Inc.

12264 El Camino Real, Suite
350

San Diego, CA 92130

Facsimile: (858) 345-1743

E-mail: mark@imprimispharma.com

Attention: Mark L. Baum

 

with a copy (for informational
purposes only) to:

 

Golenbock Eiseman Assor Bell &
Peskoe LLP

711 Third Avenue, 17th Floor

New York, NY 10017

Facsimile: (212) 754-0330

E-mail: ahudders@golenbock.com

 cvandemark@golenbock.com

Attention: Andrew D. Hudders, Esq.

   Carl Van Demark,
Esq.

 

and

 

    	 	16	 

     

    

 

If to any Stockholder,
at the address for such Stockholder on the records of the Company, which may include the information on Schedule A hereto.

 

or to such other address and/or facsimile
number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other
party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine
containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by a
courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(c)          Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

(d)          All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State
of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the
State of New York, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction
or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(e)          This
Agreement and the instruments referenced herein and therein constitute the entire agreement among the parties hereto with respect
to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein and therein. This Agreement and the instruments referenced herein and therein supersede all prior agreements
and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

    	 	17	 

     

    

 

(f)          Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

 

(g)         The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(h)         This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
or other electronic transmission (such as but not limited to an email attachment in PDF format) of a copy of this Agreement bearing
the signature of the party so delivering this Agreement. This Agreement may also be executed by electronic signature of such Person.

 

(i)          Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(j)          All
consents and other determinations required to be made by the Stockholder pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Stockholder.

 

(k)          The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

 

(l)          This
Agreement is intended for the benefit of, and shall be binding upon, the parties hereto and their respective successors and permitted
assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(m)        The
obligations of each Stockholder hereunder are several and not joint with the obligations of any other Stockholder, and no provision
of this Agreement is intended to confer any obligations on a Stockholder vis-à-vis any other Stockholder. Nothing contained
herein, and no action taken by any Stockholder pursuant hereto, shall be deemed to constitute the Stockholder as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Stockholder are in any way acting
in concert or as a group with respect to such obligations or the transactions contemplated herein.

 

(n)         Currency.
As used herein, “Dollar”, “US Dollar” and “$” each mean the lawful money of the United States.

 

[Signature pages follow immediately]

 

    	 	18	 

     

    

 

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

 

	 	COMPANY:
	 	 
	 	ETON PHARMACEUTICALS, INC.
	 	 	 
	 	By: 	 
	 	 	Name:
	 	 	Title:

 

[Stockholder Signature Page Follows]

 

    	 	19	 

     

    

 

STOCKHOLDER SIGNATURE PAGE FOR REGISTRATION
RIGHTS AGREEMENT

 

WITH EATON PHARMACEUTICALS, INC.

 

[Stockholder’s
signature to be provided by way of its execution of the Omnibus Signature Page to the Agent’s “Omnibus Signature Page
and Investor Questionnaire” with respect to this Offering.]

 

    	 	20	 

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

[Transfer Agent]

[Address]

Attention:

 

Re: Eton Pharmaceuticals,
Inc.

 

Ladies and Gentlemen:

 

[We are][I am] counsel
to Eton Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and have represented the Company in connection
with that certain Registration Rights Agreement with _____________ (the “Stockholder”) (the “Registration Rights
Agreement”) pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined
in the Registration Rights Agreement), under the Securities Act of 1933, as amended (the “1933 Act”). In connection
with the Company's obligations under the Registration Rights Agreement, on ____________ ___, 20__, the Company filed a registration
statement on Form S-[1] (File No. 333-_____________) (the “Registration Statement”) with the Securities and Exchange
Commission (the “SEC”) relating to the Registrable Securities which names the Stockholder as a selling stockholder
thereunder.

 

In connection with the
foregoing, [we][I] advise you that a member of the SEC’s staff has advised [us][me] by telephone that the SEC has entered
an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS]
and [we][I] have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order suspending its
effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the Registration Statement.

 

If applicable, you may
receive notices from the Company pursuant to the Company’s rights or obligations under the Registration Rights Agreement
in connection with stop orders or other restrictions on transfer of the shares included in such Registration Statement, but [we][I]
[are][am] not obligated to update this letter or otherwise inform you of any such stop order or restriction.

 

[Other applicable disclosure
to be inserted here, if appropriate.]

 

	 	Very truly yours,

 

    	 	 	 

     

    

 

EXHIBIT B

 

IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

 

_______________, 2017

 

[Addressed to Transfer Agent]

_______________________

_______________________

 

		Attention:	[________________________]

 

Ladies and Gentlemen:

 

Reference
is made to that certain Registration Rights Agreement, dated as of [●], 2017 (the
“Agreement”), by and among Eton Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
and _________________________ (the “Stockholder”), pursuant to which the Company is obligated to register certain
shares held by the Stockholder (the “Stockholder Shares”) of Common Stock of the Company, par value $0.001 per
share (the “Common Stock”).

 

This letter shall serve
as our irrevocable authorization and direction to you (provided that you are the transfer agent of the Company at such time) to
issue shares of Common Stock upon transfer or resale of the Stockholder Shares, unless we have otherwise informed you of the termination
of effectiveness of the registration statement in which the Stockholder Shares are included, a stop order or another transfer restriction.
We may also later inform you that after the termination of effectiveness of such registration statement that a registration statement
in which the Stockholder’s Shares are included, or that such stop order has been lifted or that such transfer restriction
is not applicable, in which case this authorization and direction shall be reinstated and be effective.

 

You acknowledge and agree
that so long as you have previously received (a) written confirmation from the Company's legal counsel that either (i) a registration
statement covering resales of the Stockholder Shares has been declared and remains effective by the Securities and Exchange Commission
(the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”), or (ii) sales
of the Stockholder Shares may be made in conformity with Rule 144 under the 1933 Act (“Rule 144”), (b) if applicable,
a copy of such registration statement, and (c) notice from legal counsel to the Company or any Stockholder that a transfer of Stockholder
Shares has been effected either pursuant to the registration statement (and a prospectus delivered to the transferee) or pursuant
to Rule 144, then as promptly as practicable, you shall issue the certificates representing the Stockholder Shares
registered in the names of such transferees, and such certificates shall not bear any legend restricting transfer of the Common
Stock evidenced thereby and should not be subject to any stop-transfer restriction; provided, however, that if such shares of Common
Stock and are not registered for resale under the 1933 Act or able to be sold under Rule 144, then the certificates for such Common
Shares shall bear the following legend:

 

    	 	 	 

     

    

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.

 

A form of written confirmation
from the Company’s outside legal counsel that a registration statement covering resales of the Stockholder Shares has been
declared effective by the SEC under the 1933 Act is attached hereto. We will inform you of any stop orders or other transfer restrictions.

 

Please execute this letter
in the space indicated to acknowledge your agreement to act in accordance with these instructions. Should you have any questions
concerning this matter, please contact me at ____________.

 

	 	Very truly yours,
	 	 
	 	Eton Pharmaceuticals, Inc.
	 	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:

 

THE FOREGOING INSTRUCTIONS ARE

ACKNOWLEDGED AND AGREED TO

 

this ___ day of ________________, 2017

 

[TRANSFER AGENT]

 

	By: 	 	 	 
	 	Name: 	 	 
	 	Title: 	 	 

 

Enclosures

 

Copy: Stockholder

 

    	 	 	 

     

    

 

SCHEDULE A

 

LIST OF STOCKHOLDERS

 

	Name	 	Address
	 	 	 

 

    	 	 	 

     

    

 

SCHEDULE B

 

SELLING STOCKHOLDERS

 

The shares of common
stock being offered by the selling stockholders are those issuable to the selling stockholders upon [conversion of the Series A
Convertible Preferred Stock and exercise of the warrants]. For additional information regarding the issuance of the [Series A Convertible
Preferred Stock and the warrants], see “Private Placement of Series A Convertible Preferred Stock” above. We are registering
the shares of common stock in order to permit the selling stockholders to offer the shares for resale [from time to time]. Except
for the ownership of [the Series A Convertible Preferred Stock issued pursuant to and in connection with the Securities Purchase
Agreement, and the warrants issued pursuant to and the agreements governing our engagement of National Securities Corporation as
a placement agent for the private placement of the Series A Convertible Preferred Stock and the engagement of National Securities
Corporation as an underwriter for a public offering of common stock by the Company, and our engagement of an affiliate of National
Securities Corporation as a consultant in respect of our patents and intellectual property] the selling stockholders have not had
any material relationship with us within the past three years.

 

The table below lists
the selling stockholders and other information regarding the beneficial ownership (as determined under Section 13(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder) of the shares of common stock held by each of the selling
stockholders. The second column lists the number of shares of common stock beneficially owned by the selling stockholders, based
on their respective ownership of shares of common stock [, Series A Convertible Preferred Stock and warrants,] as of ________,
20__, [assuming conversion of the Series A Convertible Preferred Stock and exercise of the warrants held by each such selling stockholder
on that date but taking account of any limitations on conversion and exercise set forth therein].

 

The third column lists
the shares of common stock being offered by this prospectus by the selling stockholders [and does not take into account any limitations
on (i) conversion of the Series A Convertible Preferred Stock or (ii) exercise of the warrants set forth therein].

 

In accordance with
the terms of a registration rights agreement with the holders of the Series A Convertible Preferred Stock and the warrants, this
prospectus generally covers the resale of [(i) the shares of common stock issued upon conversion of the Series A Convertible Preferred
Stock and (ii) the maximum number of shares of common stock issuable upon exercise of the warrants, in each case, determined as
if the outstanding Series A Convertible Preferred Stock and warrants were converted or exercised (as the case may be) in full (without
regard to any limitations on conversion or exercise contained therein) as of the trading day immediately preceding the date this
registration statement was initially filed with the SEC]. Because the conversion price of the Series A Convertible Preferred Stock
and the exercise price of the warrants may be adjusted, the number of shares that will actually be issued may be more or less than
the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered by the selling
stockholders pursuant to this prospectus.

 

See “Plan of
Distribution.”

 

    	 	 	 

     

    

 

	Name of Selling Stockholder	 	
        Number of Shares of 

Common Stock

Owned Prior to the

Offering
	 	Maximum Number
    of

Shares of Common 
 Stock to be Sold 
 Pursuant
    to this 
 Prospectus	 	Number of  Shares of 

Common Stock 

Owned After the 

Offering
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	 	 

     

    

 

PLAN OF DISTRIBUTION

 

We are registering
the shares of common stock issued upon conversion of the Series A Convertible Preferred Stock to permit the resale of these shares
of common stock by the holders of Common Stock from time to time after the date of this prospectus. We will not receive any of
the proceeds from the sale by the selling stockholders of the shares of common stock. We will bear all fees and expenses incident
to our obligation to register the shares of common stock.

 

The selling stockholders
may sell all or a portion of the shares of common stock held by them and offered hereby from time to time directly or through one
or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters or broker-dealers,
the selling stockholders will be responsible for underwriting discounts or commissions or agent’s commissions. The shares
of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at
varying prices determined at the time of sale or at negotiated prices. These sales may be effected in transactions, which may involve
crosses or block transactions, pursuant to one or more of the following methods:

 

		·	on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;

		·	in the over-the-counter market;

		·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

		·	through the writing or settlement of options, whether such options are listed on an options exchange
or otherwise;

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

		·	block trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

		·	an exchange distribution in accordance with the rules of the applicable exchange;

		·	privately negotiated transactions;

		·	short sales made after the date the Registration Statement is declared effective by the SEC;

		·	broker-dealers may agree with a selling security holder to sell a specified number of such shares
at a stipulated price per share;

		·	a combination of any such methods of sale; and

		·	any other method permitted pursuant to applicable law.

 

The selling stockholders
may also sell shares of common stock under Rule 144 promulgated under the Securities Act of 1933, as amended, if available, rather
than under this prospectus. In addition, the selling stockholders may transfer the shares of common stock by other means not described
in this prospectus. If the selling stockholders effect such transactions by selling shares of common stock to or through underwriters,
broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions
or commissions from the selling stockholders or commissions from purchasers of the shares of common stock for whom they may act
as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers
or agents may be in excess of those customary in the types of transactions involved). In connection with sales of the shares of
common stock or otherwise, the selling stockholders may enter into hedging transactions with broker-dealers, which may in turn
engage in short sales of the shares of common stock in the course of hedging in positions they assume. The selling stockholders
may also sell shares of common stock short and deliver shares of common stock covered by this prospectus to close out short positions
and to return borrowed shares in connection with such short sales. The selling stockholders may also loan or pledge shares of common
stock to broker-dealers that in turn may sell such shares.

 

    	 	 	 

     

    

 

The selling stockholders
may pledge or grant a security interest in some or all of the [Series A Convertible Preferred Stock, warrants or] shares of common
stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer
and sell the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act amending, if necessary, the list of selling stockholders to include
the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders
also may transfer and donate the shares of common stock in other circumstances in which case the transferees, donees, pledgees
or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

To the extent required
by the Securities Act and the rules and regulations thereunder, the selling stockholders and any broker-dealer participating in
the distribution of the shares of common stock may be deemed to be “underwriters” within the meaning of the Securities
Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting
commissions or discounts under the Securities Act. At the time a particular offering of the shares of common stock is made, a prospectus
supplement, if required, will be distributed, which will set forth the aggregate amount of shares of common stock being offered
and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other
terms constituting compensation from the selling stockholders and any discounts, commissions or concessions allowed or re-allowed
or paid to broker-dealers.

 

Under the securities
laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied with.

 

There can be no assurance
that any selling stockholder will sell any or all of the shares of common stock registered pursuant to the registration statement,
of which this prospectus forms a part.

 

The selling stockholders
and any other person participating in such distribution will be subject to applicable provisions of the Securities Act of 1933,
as amended, and the Securities Exchange Act of 1934, as amended, and in each case together with the rules and regulations thereunder,
including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing of purchases
and sales of any of the shares of common stock by the selling stockholders and any other participating person. To the extent applicable,
Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common stock to engage in
market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability of the shares
of common stock and the ability of any Person to engage in market-making activities with respect to the shares of common stock.

 

We will pay all expenses
of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $[     ]
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or “blue sky” laws; provided, however, a selling stockholder will pay all underwriting discounts and selling commissions,
if any. We will indemnify the selling stockholders against liabilities, including some liabilities under the Securities Act in
accordance with the registration rights agreements or the selling stockholders will be entitled to contribution. We may be indemnified
by the selling stockholders against civil liabilities, including liabilities under the Securities Act that may arise from any written
information furnished to us by the selling stockholder specifically for use in this prospectus, in accordance with the related
registration rights agreements or we may be entitled to contribution.

 

Once sold under the
registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable in the hands
of persons other than our affiliates.Exhibit 10.5

 

ASSET
PURCHASE AGREEMENT

 

THIS
ASSET PURCHASE AGREEMENT (this “Agreement”) dated as of the last date provided for on the signature page herein (the
“Effective Date”), is entered into between SELENIX LLC, a Virginia limited liability company (“Selenix”),
with a place of business at 1640 Roanoke Blvd., Salem, Virginia 24153, and ETON PHARMACEUTICALS, INC., a Delaware corporation
(“Eton”), with a place of business at 12264 El Camino Real, Suite 350, San Diego, California 92130. The parties hereby
agree as follows:

 

1.          Definitions.
For the purposes of this Agreement, the following terms shall have the respective meanings set forth below and grammatical variations
of such terms shall have corresponding meanings:

 

1.1           “Affiliate”
shall mean, with respect to any Person, any other Person which directly or indirectly controls, is controlled by, or is under
common control with, such Person. A Person shall be regarded as in control of another Person if it owns, or directly or indirectly
controls, more than fifty percent (50%) of the voting stock or other ownership interest of the other Person, or if it directly
or indirectly possesses the power to direct or cause the direction of the management and policies of the other Person by any means
whatsoever.

 

1.2           “Assets”
shall mean, collectively, (a) the Technology; (b) all discoveries, inventions, technology, compositions, formulations, samples,
components, processes, standards, methods, procedures and techniques relating thereto; (c) all formulae, data, information, results
of experimentation and testing, and other know-how, whether or not patentable or copyrightable, relating thereto; (d) all product
registrations and applications therefor relating thereto; (e) all Contracts (as defined in Section 3.7); and (f) all intellectual
property rights and other assets relating thereto; in each case, that is owned or controlled by, or is in the possession of Selenix.

 

1.3           “Encumbrance”
or “Encumbrances” shall mean any encumbrance, lien, charge, hypothecation, pledge, mortgage, adverse claim, option,
preemptive right, or other security interest of any nature, or any contract, covenant, arrangement, agreement, instrument or commitment
to create any of the foregoing.

 

1.4           “FDA”
shall mean the Food and Drug Administration of the United States or any successor thereto.

 

1.5           “First
Commercial Sale” shall mean, with respect to any Product, the first sale of such Product after all applicable marketing
and pricing approvals (if any) have been granted by the FDA.

 

1.6           “GAAP”
shall mean United States generally accepted accounting principles.

    	 	Page 1 of 16	 

     

    

 

1.7           “Gross
Sales” shall mean the gross sales price of Products invoiced by Eton or its Affiliates to customers who are not Affiliates
(or are Affiliates but are the end users of such Product).

 

1.8           “Knowledge
of Selenix” or “Selenix’s Knowledge” shall mean the actual knowledge of any director, officer, or employee
of Selenix and the Knowledge such individuals would reasonably be expected to obtain in the course of diligently performing his
or her duties for Selenix and/or making a reasonable inquiry into the matters contemplated by this Agreement.

 

1.9           “Legal
Recovery Amount” shall mean all legal costs and expenses (including attorneys’ fees and costs) incurred by Eton or
its Affiliates in connection with the development, commercialization, obtaining and maintaining regulatory approvals, or other
exploitation or use of the Assets or Product, or the preparation, prosecution, maintenance, enforcement, defense, licensing, commercialization
or other exploitation of any intellectual property related thereto.

 

1.10         “Licensee”
shall mean a Third Party to whom Eton or its Affiliate has granted a license, immunity or other right under any intellectual property
rights within the Assets to offer to sell, sell or otherwise commercialize one or more Products, provided such license has not
expired or been terminated.

 

1.11         “NDA”
shall mean a New Drug Application, or similar application for marketing approval of a Product submitted to the FDA.

 

1.12         “Net
Licensing Revenues” shall mean the aggregate cash consideration received by Eton or its Affiliates in consideration for
the grant by Eton or its Affiliates to a Licensee of a license, immunity or other right under any intellectual property rights
within the Assets to offer to sell, sell or otherwise commercialize a Product (excluding amounts received to reimburse Eton or
its Affiliates for research, development or similar services conducted for Products, in reimbursement of out-of-pocket expenses
relating to Products, or in consideration for the purchase of any debt or securities of Eton or its Affiliates).

 

1.13         “Net
Receipts” shall mean the aggregate of Net Sales and Net Licensing Revenues in excess of the Legal Recovery Amount.

 

1.14         “Net
Sales” shall mean the Gross Sales less (a) credits, allowances, discounts and rebates to, and chargebacks from the account
of, such customers; (b) freight and insurance costs in transporting Products; (c) cash, quantity and trade discounts, rebates
and other price reductions for Products; (d) sales, use, value-added and other direct taxes; (e) customs duties, tariffs, surcharges
and other governmental charges incurred in exporting or importing Products; (f) an allowance for uncollectible or bad debts determined
in accordance with generally accepted accounting principles; (g) the fully-burdened cost of goods sold determined in accordance
with generally accepted accounting principles; and (h) the cost of promotion, marketing, distribution and sales (including applicable
sales commissions and related payments), if any.

 

    	 	Page 2 of 16	 

     

    

 

1.15         “Payment
Period” shall mean the period beginning on the Effective Date and ending ten (10) years thereafter.

 

1.16         “Person”
shall mean any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity, as
well as any syndicate or group of any of the foregoing.

 

1.17         “Product”
shall mean any product, in any form or formulation for injectable administration, containing a concentration of *** (equivalent
to ***) of *** (***).

 

1.18         “Tax”
or “Taxes” shall mean any and all federal, state, local and foreign taxes, assessments and other governmental charges,
duties, impositions and liabilities, including taxes based upon or measured by gross receipts, income, profits, sales, use and
occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, recapture, employment, excise and property
taxes as well as public imposts, fees and social security charges (including but not limited to health, unemployment and pension
insurance), together with all interest, penalties and additions imposed with respect to such amounts and any obligation under
any agreement or arrangement with any other Person with respect to such amounts and including any liability for taxes of a predecessor
entity.

 

1.19         “Technology”
shall mean, collectively, Product together with all methods of manufacture or use thereof.

 

1.20         “Third
Party” shall mean any Person other than Eton, Selenix or their respective Affiliates.

 

2.          Purchase
and Sale of the Assets.

 

2.1           Assets.
Subject to the terms and conditions of this Agreement, Eton hereby agrees to, and hereby does, purchase from Selenix, and Selenix
hereby agrees to, and hereby does, sell, convey, transfer and assign to Eton, on the Effective Date, all of Selenix’s right,
title and interest in and to the Assets. Concurrently with the execution of this Agreement, Selenix shall deliver all required
consents to Contracts (as defined in Section 3.7) as set forth on Exhibit A. To the extent necessary to comply with applicable
privacy laws, Selenix shall have the right to redact patient identifying information from any data or information transferred
to Eton.

 

2.2           No
Assumption of Liabilities. Eton shall not be obligated to assume or perform and is not assuming or performing any liabilities
or obligations of Selenix which relate to Selenix’s ownership of the Assets prior to the Effective Date or otherwise, whether
known or unknown, fixed or contingent, certain or uncertain, and regardless of when they are or were asserted, and Selenix shall
remain responsible for and shall promptly pay such liabilities.

  

 

***Text has
been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission (“Commission”)
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.  The omitted text has been filed separately with the Commission.

 

    	 	Page 3 of 16	 

     

    

 

2.3           Transfer
Documents. At such time as reasonably requested by Eton on or after the Effective Date, Selenix shall duly execute and deliver
to Eton such additional bills of sale, assignment or other title transfer documents and instruments as reasonably requested by
Eton evidencing the sale, conveyance, transfer and assignment of the Assets in accordance with this Agreement.

 

3.          Representations
and Warranties of Selenix. Selenix hereby represents and warrants to Eton, except as indicated on the disclosure schedules
attached to this Agreement, as follows:

 

3.1           Authority
and Binding Effect. Selenix has the full power and authority to execute and deliver this Agreement and other documents and
instruments contemplated hereby. This Agreement and other documents and instruments contemplated hereby, and the consummation
by Selenix of its obligations contained herein and therein, have been duly authorized by all necessary actions of Selenix, and
this Agreement and other documents and instruments contemplated hereby have been duly executed and delivered by Selenix. This
Agreement and other documents and instruments contemplated hereby are valid and binding agreements of Selenix, enforceable against
Selenix in accordance with their respective terms.

 

3.2           Organization
and Standing. Selenix is a limited liability company duly organized, validly existing and in good standing under the laws
of the State of Virginia. Selenix is qualified to do business in each jurisdiction where such qualification is necessary. Selenix
has the requisite power and authority to conduct its business as now conducted, to own the Assets and to use such Assets in the
conduct of its business. Selenix does not have, and has not at any time had, any Affiliates.

 

3.3           Assets.

 

3.3.1           Selenix
has good and marketable title to each of the Assets, and each of the Assets is in Selenix’s possession and held or controlled
by Selenix free and clear of any Encumbrances (including any distribution rights and royalty rights). All Assets are and will
be fully transferable, alienable or licensable by Eton without restriction and without payment of any kind to any Third Party.

 

3.3.2           All
Assets are currently in compliance with applicable legal requirements and are not subject to any unpaid fees or taxes or actions
falling due within ten (10) days after the Effective Date.

 

3.3.3           To
the extent that any Assets were originally owned or created by or for any Person other than Selenix, (a) Selenix has obtained
the complete, unencumbered and unrestricted right to effect the transfer of the Assets from Selenix to Eton and confirms that
such transfer does not violate any such right to transfer; (b) no Third Parties have retained or otherwise have any rights or
licenses with respect to the Assets; and (c) to the Knowledge of Selenix, no valid basis exists for any such Person to challenge
or object to this Agreement or the transactions contemplated herein.

  

    	 	Page 4 of 16	 

     

    

 

3.3.4           Selenix
has not transferred ownership of, or granted any license, immunity or other right, or authorized the retention of any rights to
any Assets to any Person.

 

3.3.5           Selenix
is not required to make or accrue any royalty, milestone or other similar payment to any Third Party in connection with any of
the Assets.

 

3.3.6           Neither
the Assets nor exploitation of the Assets, including development and commercialization of any Product, infringe or misappropriate
the intellectual property of any Third Party.

 

3.3.7           Selenix
has taken all reasonable precautions to protect the secrecy, confidentiality and value of all Assets that comprise know-how, trade
secrets, confidential or proprietary information, data, process technology and plans.

 

3.3.8           All
data, information, results of experimentation and testing within the Assets are accurate and complete in all respects.

 

3.4           Conflicts
and Consents. The execution and delivery by Selenix of this Agreement and the consummation of the transactions contemplated
hereby will not (a) result in the loss or impairment of any of the Assets or (b) conflict with (i) any provision of the charter
document or bylaws of Selenix, each as amended to date, (ii) contracts, covenants, arrangements, agreements, instruments, commitments,
purchase orders or licenses to which Selenix or any of its properties or assets (including intangible assets) is subject, or (iii)
any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Selenix or any of its properties or assets
(tangible and intangible). It is not necessary for Selenix to take any action or to obtain any approval, consent or release by
or from any Third Party, governmental or other, to enable Selenix to enter into or perform its obligations under this Agreement.

 

3.5           Litigation
and Proceedings. There is no claim, action, suit, proceeding or investigation (or any counter or cross-claim in an action
brought by or on behalf of Selenix), whether at law or in equity, or before or by any governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, or before any arbitrator of any kind, that is pending or, to Selenix’s
Knowledge, threatened, against Selenix, which (a) could reasonably be expected to adversely affect Selenix’s ability to
perform its obligations under this Agreement or complete any of the transactions contemplated hereby or (b) involves the possibility
of any judgment or liability, or which may become a claim, against the Assets, Eton or its business. Selenix is not subject to
any judgment, order, writ, injunction, decree or award of any court, arbitrator or governmental department, commission, board,
bureau, agency or instrumentality having jurisdiction over Selenix or any of the Assets that affects, involves or relates to the
Assets.

 

    	 	Page 5 of 16	 

     

    

 

3.6           Compliance
with Law/Permits. Selenix is in compliance with all, and is not in violation of any, law, ordinance, order, decree, rule or
regulation of any governmental agency or authority, the violation of or noncompliance with which could have a material adverse
effect on Selenix. No unresolved (a) charges of violations of laws or regulations relating to Selenix’s business have been
made or threatened, (b) proceedings or investigations relating to Selenix’s business are pending or have been threatened,
and (c) citations or notices of deficiency have been issued or have been threatened, against Selenix relating to or arising out
of its business by any governmental authorities.

 

3.7           Contracts.
Exhibit A lists all contracts, covenants, arrangements, agreements, instruments, commitments, purchase orders or licenses to which
Selenix is a party as of the date hereof which arise out of or relate to the Assets (the “Contracts”). Selenix is
not in violation of or in default under (nor is there existing conditions which with the passage of time either giving of notice
or both would cause such a violation or default under) any such Contract. Each such Contract is in full force and effect, and
has a legal, valid and binding obligation on Selenix, and to Knowledge of Selenix, each of the other parties thereto, and is enforceable
in accordance with its terms. Selenix has not received notice that it is in violation or breach of or in default under any such
Contract. Except as set forth on Exhibit A, no such Contract has a provision that would require consent, notice or the payment
of money or transfer of property as a result of the transactions contemplated herein.

 

3.8           No
Debarment. Neither Selenix, its (sub)contractors, nor any of its or their officers, directors, employees or consultants, have
been debarred by the FDA or other applicable governing health authority (or authorities), under any existing or prior law or regulation.

 

3.9           Full
Disclosure. The representations and warranties made by Selenix in this Agreement and the schedules to be delivered pursuant
to this Agreement do not contain any untrue statement of material fact or omit to state a material fact necessary to make any
of them in the light of the circumstances in which they were made, not misleading.

 

    	 	Page 6 of 16	 

     

    

 

4.          Representations
and Warranties of Eton. Eton represents and warrants to Selenix as follows:

 

4.1           Authority
and Binding Effect. Eton has the full corporate power and authority to execute and deliver this Agreement. This Agreement and
the consummation by Eton of its obligations contained herein and therein, have been duly authorized by all necessary corporate
actions of Eton, and this Agreement has been duly executed and delivered by Eton. This Agreement is a valid and binding agreement
of Eton’s, enforceable against Eton in accordance with its terms.

  

4.2           Organization
and Standing. Eton is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware,
and Eton is qualified to do business in each jurisdiction where such qualification is necessary and where the failure to be so
qualified would have a material adverse effect on Eton. Eton has the requisite corporate power and authority to conduct its business
as now conducted.

 

4.3           Conflicts;
Consents. The execution and delivery by Eton of this Agreement and the consummation of the transactions contemplated hereby,
will not give rise to a Conflict with respect to (a) any provision of the certificate of incorporation or bylaws of Eton, each
as amended to date, (b) contracts, covenants, arrangements, agreements, instruments, commitments, purchase orders or licenses
to which Eton or any of its properties or assets (including intangible assets) is subject, or (c) any judgment, order, decree,
statute, law, ordinance, rule or regulation applicable to Eton or any of its properties or assets (tangible and intangible), except
in any such case where it would not have a material adverse effect on Selenix’s rights under the Assets. It is not necessary
for Eton to take any action or to obtain any approval, consent, or release by or from any Third Party, governmental or other,
to enable Eton to enter into or perform its obligations under this Agreement.

 

4.4           Compliance
with Law/Permits. Eton is in compliance with all, and is not in violation of any, law, ordinance, order, decree, rule or regulation
of any governmental agency or authority, the violation of or noncompliance with which could have a material adverse effect on
Selenix. No unresolved (a) charges of violations of laws or regulations relating to Eton’s business have been made or threatened,
(b) proceedings or investigations relating to Eton’s business are pending or have been threatened, and (c) citations or
notices of deficiency have been issued or have been threatened, against Eton relating to or arising out of its business by any
governmental authorities, which have had or could reasonably be expected to have, individually or in the aggregate, a material
adverse effect on Eton.

 

5.          Financial
Terms.

 

5.1           Initial
Payment. Within two (2) business days following satisfaction of the condition precedent in Section 9.3, Eton shall pay to
Selenix One Million Five Hundred Thousand Dollars ($1,500,000).

  

    	 	Page 7 of 16	 

     

    

 

5.2           Milestone
Payments. Within thirty (30) days following the first achievement of each of the following milestone events, Eton shall pay
to Selenix the corresponding milestone payment:

 

	Milestone Event
	 	Milestone
    Payment
	Eton,
    its Affiliate or Licensee filing an NDA for a Product with the FDA	 	One
    Million Five Hundred Thousand Dollars ($1,500,000)
	Eton,
    its Affiliate or Licensee obtaining marketing approval for a Product from the FDA	 	One
    Million Dollars ($1,000,000)

 

5.3           Net
Receipts Payments.

 

5.3.1           Net
Receipts Payment Amounts.

 

(a)          Net
Receipts Payment Consideration. Subject to the provisions in this Section 5.3.1 and Sections 5.3.2 and 7.3, Eton shall pay
to Selenix, on a quarterly basis, an amount equal to fifty percent (50%) of Net Receipts of Products during the Payment Period
(the “Net Receipts Payment Consideration”).

 

(b)          Credits.
Eton will apply a credit equal to ten percent (10%) of Gross Sales and Net Licensing Revenue against the Net Receipts Payment
Consideration owing to Selenix under Section 5.3.1(a); provided, however, for the purposes of the above credit calculation,
the difference between Gross Sales and Net Sales shall not exceed twelve percent (12%). Additionally, if Eton or its Affiliate
is required to pay royalties to any Third Party in order to make, have made, use, sell, offer to sale or import a Product, then
Eton shall have the right to credit fifty percent (50%) of such Third Party royalty payments against the Net Receipts Payment
Consideration owing to Selenix under Section 5.3.1(a).

 

(c)          Combination/Bundled
Products. In the event that a Product is sold by Eton or its Affiliates in combination with one or more products which is
itself not a Product, then Net Sales shall be calculated by multiplying the sales price of such combination sale by the fraction
A/(A+B) where A is the fair market value of the Product(s) and B is the fair market value of the other product(s) in the combination
sale, each as reasonably determined by Eton.

 

    	 	Page 8 of 16	 

     

    

 

5.3.2           Reports
and Net Receipts Payments. Within sixty (60) days after the end of each calendar quarter during the applicable Payment Period,
Eton shall deliver to Selenix a report setting forth for such calendar quarter (a) the applicable Net Receipts Payment Consideration
and (b) the applicable exchange rate as determined below. Eton shall remit the total payments due during such calendar quarter
at the time such report is made. No such reports or payments shall be due for any Product before the First Commercial Sale of
such Product. With respect to Net Receipts received in United States dollars, all amounts shall be expressed in United States
dollars. With respect to Net Receipts received in a currency other than United States dollars, all amounts shall be expressed
both in the currency in which the amount is invoiced (or received as applicable) and in the United States dollar equivalent. The
United States dollar equivalent shall be calculated using the average of the exchange rate (local currency per US$1) published
in The Wall Street Journal, Western Edition, under the heading “Currency Trading” on the last business day
of each month during the applicable calendar quarter.

 

5.4           Payment
Provisions.

 

5.4.1           Payment
Terms. The Net Receipts Payment Consideration shown to have accrued by each report provided for under Section 5.3.2 shall
be due on the date such report is due. Payment of Net Receipts Payment Consideration in whole or in part may be made in advance
of such due date.

 

5.4.2           Withholding
Taxes. Eton shall be entitled to deduct the amount of any withholding taxes, value-added taxes or other taxes, levies or charges
with respect to such amounts, other than United States taxes, payable by Eton or its Affiliates, or any taxes required to be withheld
by Eton or its Affiliates, to the extent Eton or its Affiliates pay to the appropriate governmental authority on behalf of Selenix
such taxes, levies or charges. Eton shall use reasonable efforts to minimize any such taxes, levies or charges required to be
withheld on behalf of Selenix by Eton or its Affiliates. Eton promptly shall deliver to Selenix proof of payment of all such taxes,
levies and other charges, together with copies of all communications from or with such governmental authority with respect thereto.

 

5.5           Audits.
Upon the written request of Selenix and not more than once in each calendar year, Eton shall permit an independent certified public
accounting firm of nationally recognized standing selected by Selenix and reasonably acceptable to Eton, at Selenix’s expense,
to have access during normal business hours to such of the financial records of Eton as may be reasonably necessary to verify
the accuracy of the Net Receipts Payment Consideration reports hereunder for the eight (8) calendar quarters immediately prior
to the date of such request (other than records for which Selenix has already conducted an audit under this Section). If such
accounting firm concludes that additional amounts were owed during the audited period, Eton shall pay such additional amounts
within thirty (30) days after the date Selenix delivers to Eton such accounting firm’s written report so concluding. The
fees charged by such accounting firm shall be paid by Selenix; provided, however, if the audit discloses that the Net Receipts
Payment Consideration payable by Eton for such period are more than one hundred ten percent (110%) of the Net Receipts Payment
Consideration actually paid for such period, then Eton shall pay the reasonable fees and expenses charged by such accounting firm.
Selenix shall cause its accounting firm to retain all financial information subject to review under this Section 5.5 in strict
confidence; provided, however, that Eton shall have the right to require that such accounting firm, prior to conducting such audit,
enter into an appropriate non-disclosure agreement with Eton regarding such financial information. The accounting firm shall disclose
to Selenix only whether the reports are correct or not and the amount of any discrepancy. No other information shall be shared.
Selenix shall treat all such financial information as Eton’s confidential information, and shall not disclose such financial
information to any Third Party or use it for any purpose other than as specified in this Section 5.5.

 

    	 	Page 9 of 16	 

     

    

 

5.6           Allocation
of Consideration. The consideration for the Assets shall be allocated, if an allocation is required, by Eton within sixty
(60) days following a determination that such allocation is required. After the Effective Date, Eton and Selenix shall make consistent
use of any allocation required under Section 1060 of the Internal Revenue Code for all Tax purposes and in all filings, declarations
and reports with the Internal Revenue Service or any other applicable taxing authority in respect thereof. In any and all actions,
suits, proceedings, arbitration, or governmental or regulatory investigations or audits related to the determination of any Tax,
neither Eton nor Selenix shall contend or represent that such allocation is not a correct allocation.

 

5.7           Survival.
This Section 5 shall survive the expiration of this Agreement and shall only terminate upon the expiration of the Payment Period
and all payment obligations.

 

6.          Selenix
Covenants.

 

6.1           Transfer.
Within thirty (30) days after the Effective Date, Selenix shall transfer to Eton all Assets (including any and all tangible embodiments
thereof), including all items described on Exhibit B.

 

6.2           Further
Assistance.

 

6.2.1           Selenix
shall provide all cooperation reasonably requested by Eton in connection with any effort by Eton to establish, perfect, defend,
or enforce its rights in or to the Assets. Such cooperation shall include (a) executing such further assignments, transfers, licenses,
releases and consents, and (b) providing such data and information, consulting with Eton and executing and delivering all such
further documents and instruments, in each case as requested by Eton regarding the Assets.

 

    	 	Page 10 of 16	 

     

    

 

6.2.2           Selenix
shall provide, and shall cause its employees, contractors and consultants to provide, all cooperation, technical assistance and
support reasonably requested by Eton regarding (a) the exploitation of the Assets (including the research, development and production
of any Product), and (b) applying for, obtaining and maintaining any and all approvals, licenses, registrations or authorizations
necessary or desirable to test, market or commercialize the Assets (including any Product). Such cooperation shall include providing
such data and information, consulting with Eton and executing and delivering all such further documents and instruments, in each
case as requested by Eton regarding the Assets and shall not exceed a total of eighty (80) hours.

 

6.2.3           Eton
shall own, and Selenix hereby assigns to Eton, all right, title and interest in and to all results and other work product resulting
from the activities described in this Section 6.2, together with all intellectual property rights therein and thereto.

 

6.3           Non-Competition.
Except as expressly agreed in writing by Eton, Selenix shall not, directly or indirectly, develop, seek to develop, make, have
made, market, solicit orders for, offer for sale, sell, import, distribute or otherwise commercialize a Product or exploit the
Technology.

 

7.          Indemnification.

 

7.1           Indemnification
of Eton. Subject to the provisions of this Section 7, Selenix shall indemnify, defend and hold harmless Eton, its officers,
directors, Affiliates, agents, stockholders and representatives (collectively, the “Eton Indemnitees”), from and against
any and all loss, liability, damage and expense (including reasonable attorneys’ fees and costs) incurred as a result of
any claim, demand, action or proceeding by any Third Party (collectively, “Losses”) incurred or suffered by an Eton
Indemnitee to the extent arising out of:

 

7.1.1           any
breach of the representations and warranties of Selenix set forth in this Agreement;

 

7.1.2           any
breach of any covenant or agreement of Selenix set forth in this Agreement or in any certificate, instrument, or other document
delivered pursuant to this Agreement; and

 

7.1.3           the
ownership, operation or exploitation of the Assets prior to the Effective Date or any liability or obligation whatsoever of Selenix.

 

    	 	Page 11 of 16	 

     

    

 

7.2           Indemnification
of Selenix. Subject to the provisions of this Section 7, Eton shall indemnify and hold harmless Selenix, its officers, directors,
agents and representatives (collectively, the “Selenix Indemnitees”), from and against any and all Losses incurred
or suffered by a Selenix Indemnitee to the extent arising out of:

 

7.2.1           any
breach of the representations and warranties of Eton set forth in this Agreement;

 

7.2.2           any
breach of any covenant or agreement of Eton set forth in this Agreement or in any certificate, instrument, or other document delivered
pursuant to this Agreement;

 

7.2.3           the
ownership, operation or exploitation of the Assets after the Effective Date or the manufacture, use, or sale of any Product solely
by Eton, its Licensees or their respective Affiliates or the use of any Product by their customers.

 

7.3           Offset.
Eton may offset against the Net Receipts Payment Consideration or any other amounts due Selenix from Eton, any amounts owed to
Eton for indemnification under Section 7.1. The exercise of such offset by Eton in good faith, whether or not ultimately determined
to be justified, shall not constitute an event of default hereunder. Neither the exercise nor the failure to exercise, any such
right of offset shall constitute an election of remedies or limit Eton in any manner in the enforcement of any other remedies
that may be available to it.

 

7.4           Procedure.
A party seeking indemnification (the “Indemnitee”) shall promptly notify the other party (the “Indemnifying
Party”) in writing of a claim, demand, action or proceeding; provided that an Indemnitee’s failure to give such notice
or delay in giving such notice shall not affect such Indemnitee’s right to indemnification under this Section 7 except to
the extent that the Indemnifying Party has been prejudiced by such failure or delay. The Indemnifying Party shall have the right
to control the defense of all indemnification claims hereunder. The Indemnitee shall have the right to participate at its own
expense in the claim, demand, action or proceeding with counsel of its own choosing. The Indemnifying Party shall consult with
the Indemnitee in good faith with respect to all non-privileged aspects of the defense strategy. The Indemnitee shall cooperate
with the Indemnifying Party as reasonably requested, at the Indemnitee’s sole cost and expense. The Indemnifying Party shall
not settle any claim, demand, action or proceeding with respect to which without the Indemnitee’s prior written consent,
which consent shall not be unreasonably withheld.

 

    	 	Page 12 of 16	 

     

    

 

8.          Confidentiality.

 

8.1           Confidential
Information. During the term of this Agreement, and for a period of five (5) years following the expiration hereof, except
as otherwise provided in this Section 8, Selenix shall maintain in confidence all data and information comprising the Assets (the
“Confidential Information”), and shall not use, disclose or grant the use of the Confidential Information except
on a need-to-know basis to those directors, officers, employees and contractors, to the extent such disclosure is reasonably necessary
in connection with performing its obligations or exercising its rights under this Agreement. To the extent that disclosure is
authorized by this Agreement, prior to disclosure, Selenix shall obtain agreement of any such Person to hold in confidence and
not make use of the Confidential Information for any purpose other than those permitted by this Agreement. Selenix shall notify
Eton promptly upon discovery of any unauthorized use or disclosure of the Confidential Information.

 

8.2           Terms
of this Agreement. Except as otherwise provided in this Section 8, neither party shall disclose any terms or conditions of
this Agreement to any Third Party without the prior consent of the other party. Notwithstanding the foregoing, prior to execution
of this Agreement, the parties have agreed upon the substance of information that can be used to describe the terms of this transaction,
and each party may disclose such information, as modified by mutual agreement in writing from time to time, without the other
party’s consent.

 

8.3           Permitted
Disclosures. The confidentiality obligations contained in this Section 8 shall not apply to the extent that (a) a party is
required (i) in the reasonable opinion of such party’s legal counsel, to disclose information by applicable law, regulation,
rule (including rule of a stock exchange or automated quotation system), order of a governmental agency or a court of competent
jurisdiction or legal process, including tax authorities, or (ii) to disclose information to any governmental agency for purposes
of obtaining approval to test or market a product, provided in either case that, to the extent practicable, such party shall provide
written notice thereof to the other party and sufficient opportunity to object to any such disclosure or to request confidential
treatment thereof; or (b) a party can demonstrate that (i) the information was or became public knowledge, other than as a result
of actions of such party in violation hereof; or (ii) the information was disclosed to the Recipient on an unrestricted basis
from a source unrelated to any party to this Agreement and not under a duty of confidentiality to the other party. Notwithstanding
anything to the contrary herein, Eton may disclose the terms and conditions of this Agreement to any Person with whom Eton has,
or is proposing to enter into, a business relationship, as long as such Person has entered into a confidentiality agreement with
Eton.

 

8.4           Injunctive
Relief. Each party acknowledges that it will be impossible to measure in money the damage to the other party if such party
fails to comply with the obligations imposed by this Section 8, and that, in the event of any such failure, the other party may
not have an adequate remedy at law or in damages. Accordingly, each party agrees that injunctive relief or other equitable remedy,
in addition to remedies at law or damages, is an appropriate remedy for any such failure and shall not oppose the granting of
such relief on the basis that the disclosing party has an adequate remedy at law. Each party agrees that it shall not seek, and
agrees to waive any requirement for, the securing or posting of a bond in connection with the other party seeking or obtaining
such equitable relief.

 

    	 	Page 13 of 16	 

     

    

 

9.          Term
and Condition Precedent.

 

9.1           Term.
The term of this Agreement shall continue until expiration of all payment obligations hereunder.

 

9.2           Effect
of Expiration. Expiration of this Agreement shall be without prejudice to any rights which shall have accrued to the benefit
of any party prior to such expiration. Without limiting the foregoing, Sections 1, 2.3, 3, 4, 5, 6.2, 6.3, 8, 9.2, and 10 shall
survive any expiration of this Agreement.

 

9.3           Condition
Precedent. Notwithstanding anything to the contrary herein, the effectiveness of this Agreement is conditioned upon Eton having
received net proceeds of the sale of its equity securities to Third Parties of not less than ten million dollars ($10,000,000.00)
in cash, whether individually or in the aggregate, within ninety (90) days after the Effective Date. If Eton fails to satisfy
such condition precedent, then this Agreement shall be null and void ab initio.

 

10.         Miscellaneous.

 

10.1         Assignment.
Neither party shall assign its rights or obligations under this Agreement without the prior written consent of the other party;
provided, however, that a party may, without such consent, assign this Agreement and its rights and obligations hereunder (a)
to any Affiliate, or (b) in connection with the transfer or sale of all or substantially all of its business to which this Agreement
relates, or in the event of its merger, consolidation, change in control or similar transaction. Any permitted assignee shall
assume all obligations of its assignor under this Agreement. Any purported assignment in violation of this Section 10.1 shall
be void.

 

    	 	Page 14 of 16	 

     

    

 

10.2         Severability.
Any provision of this Agreement which is illegal, invalid or unenforceable shall be ineffective to the extent of such illegality,
invalidity or unenforceability, without affecting in any way the remaining provisions hereof.

 

10.3         Governing
Law; Exclusive Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of
California, without regard to the conflicts of law principles thereof. Each of the parties hereto irrevocably consents to the
exclusive jurisdiction and venue of any federal court located in the Southern District of the State of California or state court
in San Diego, California having jurisdiction, in connection with any matter based upon or arising out of this Agreement or the
matters contemplated herein, agrees that process may be served upon them in any manner authorized by laws of the State of California
for such persons and waives and covenants not to assert or plead any objection which they might otherwise have to such jurisdiction,
venue and such process.

 

10.4         Entire
Agreement; Amendment. This Agreement, together with the Exhibit hereto, and each additional document, instrument or other
agreement to be executed and delivered pursuant hereto constitute all of the agreements of the parties with respect to, and supersede
all prior agreements and understandings relating to the subject matter of, this Agreement or the transactions contemplated by
this Agreement. This Agreement may not be modified or amended except by a written instrument specifically referring to this Agreement
signed by the parties hereto.

 

10.5         Waiver.
No waiver by one party of the other party’s obligations, or of any breach or default hereunder by any other party, shall
be valid or effective, unless such waiver is set forth in writing and is signed by the party giving such waiver; and no such waiver
shall be deemed a waiver of any subsequent breach or default of the same or similar nature or any other breach or default by such
other party.

 

10.6         Notices.
Any consent, notice or report required or permitted to be given or made under this Agreement by a party to the other party shall
be in writing, delivered by any lawful means to such other party at its address indicated below, or to such other address as the
addressee shall have last furnished in writing to the addressor and (except as otherwise provided in this Agreement) shall be
effective upon receipt by the addressee.

 

If
to Selenix:                       Selenix, LL

1640 Roanoke Blvd.

Salem, Virginia 24153

Attention: Bob Patane, President

 

    	 	Page 15 of 16	 

     

    

 

If
to Eton:                            Eton Pharmaceuticals, Inc.

12264 El Camino Real, Suite 350

San Diego, California 92130

Attention: Chief Executive Officer

 

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

 

***SIGNATURE
PAGE FOLLOWS***

 

    	 	Page 16 of 16	 

     

    

 

SIGNATURE
PAGE

 

IN
WITNESS WHEREOF, each party has caused a duly authorized representative to execute this Agreement as of the Effective Date.

 

	SELENIX	 	ETON
	 	 	 
	Selenix, LLC	 	Eton Pharmaceuticals, Inc.
	 	 	 
	/s/ Bob Patane	 	/s/ Sean Brynjelsen
	By: Bob Patane	 	By: Sean Brynjelsen
	Its: President	 	Its: Chief Executive Officer
	 	 	 
	Date:     	6-23-2017	 	Date:	6-23-2017

 

 [Signature
Page to Asset Purchase Agreement]

 

    	 		 

     

    

 

EXHIBIT
A

 

Contracts

 

    	 		 

     

    

 

EXHIBIT
B

 

Certain
Assets To Be Transferred

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