Document:

Exhibit 10.20

 

EXECUTION VERSION

 

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE
AGREEMENT (“Agreement”) is made as of June 1, 2020 by and among Humanigen, Inc., a Delaware corporation (the
“Company”), and the Investors identified on Exhibit A attached hereto (each an “Investor”
and collectively the “Investors”).

 

Recitals

 

A.       The
Company and the Investors are executing and delivering this Agreement in reliance upon an applicable exemption from securities
registration under the 1933 Act; and

 

B.       The
Investors wish to purchase from the Company, and the Company wishes to sell and issue to the Investors, upon the terms and conditions
stated in this Agreement, shares (the “Shares”) of the Company’s common stock, par value $0.001 per share
(the “Common Stock”), at a purchase price equal to $0.87 per share.

 

C. On the date hereof,
the parties hereto will execute and deliver a Registration Rights Agreement, in the form attached hereto as Exhibit B (the
“Registration Rights Agreement”), pursuant to which the Company will agree to provide certain registration rights
in respect of the Shares under the 1933 Act and applicable state securities laws.

 

In consideration of
the mutual promises made herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.       Definitions.
In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms
shall have the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls, is
controlled by, or is under common Control with, such Person.

 

“Closing Date”
means June 2, 2020.

 

“Common Stock
Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at any time Common
Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time
convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Company’s
Knowledge” means the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company.

 

“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract or otherwise.

 

“Drug Application”
means any new drug application, abbreviated new drug application, investigational new drug application, and/or biologics license
application, as well as any product license application for any Product, as appropriate, as those terms are defined by the FDA.

 

    	 	 	 

    	 

    

 

“Drug Regulatory
Legal Requirements” means the FDCA, the Federal Controlled Substances Act, 21 U.S.C. § 801 et seq., the implementing
regulations of each codified at Title 21, Code of Federal Regulations, any analogous applicable Legal Requirement of any applicable
jurisdiction, and all terms and conditions of any pending or approved Drug Application.

 

“Environmental
Legal Requirements” means all Legal Requirements relating to pollution or protection of human health or the environment
(including ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to chemicals, pollutants,
contaminants, or toxic or hazardous substances or wastes into the environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of chemicals, pollutants, contaminants, or toxic or hazardous
substances or wastes, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses,
notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder.

 

“FDA”
means the United States Food and Drug Administration.

 

“FDCA”
means the United States Federal Food, Drug and Cosmetic Act, as amended, as codified at Title 21, Chapter 9 of the United States
Code, and the implementing regulations thereunder as codified at Title 21 of the Code of Federal Regulations.

 

“GAAP”
means United States generally accepted accounting principles applied on a consistent basis during the periods involved.

 

“Governmental
Approval” means any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation,
registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Entity.

 

“Governmental
Entity” means any government, agency, governmental department, commission, board, bureau, court, arbitration panel or
instrumentality of the United States of America or any state or other political subdivision thereof (whether now or hereafter constituted
and/or existing).

 

“Healthcare
Regulatory Legal Requirements” means the Federal Anti-kickback Statute (42 U.S.C. § 1320a-7b(b)), Physician Payment
Sunshine Act (42 U.S.C. § 1320a-7h), the civil False Claims Act (31 U.S.C. §§ 3729 et seq.), the administrative
False Claims Legal Requirement (42 U.S.C. § 1320a-7b(a)), the Federal Civil Monetary Penalties Law (42 U.S.C. § 1320a-7a),
the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.), as amended by the Health Information
Technology for Economic and Clinical Health Act of 2009, the exclusion laws, Social Security Act § 1128 (42 U.S.C. §
1320a-7), and the regulations promulgated and administrative guidance issued under such laws insofar as the foregoing may regulate
the business of the Company as currently conducted and proposed to be conducted.

 

“Intellectual
Property” means all of the following: (i) patents, patent applications, patent disclosures and inventions (whether or
not patentable and whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names, corporate names,
logos, slogans and Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights
and copyrightable works; (iv) registrations, applications and renewals for any of the foregoing; and (v) proprietary computer software
(including but not limited to data, data bases and documentation).

 

“Intellectual
Property Rights” has the meaning set forth in Section 4.15.

 

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“J.P. Morgan”
means J.P. Morgan Securities LLC, the placement agent for the Company in connection with the offer and sale of the Shares to certain
of the Investors pursuant to this Agreement.

 

“Legal Requirements”
means all federal, state, foreign and local laws, statutes, codes, rules, regulations, ordinances, orders and proceedings of any
Governmental Entity.

 

“Market”,
“Marketed” or “Marketing” means to study, investigate, develop, manufacture, test, sell,
or market any Product pursuant to a preclinical or clinical trial, Drug Application or other Governmental Approval issued by the
FDA or any state Board of Pharmacy or Department of Health.

 

“Material
Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial
or otherwise), business, or prospects of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company
to perform its obligations under this Agreement.

 

“Material
Contract” means any contract, instrument or other agreement to which the Company or any Subsidiary is a party or by which
it is bound and that has been filed or is required to be filed as an exhibit to the SEC Filings pursuant to Item 601(b)(4) or Item
601(b)(10) of Regulation S-K.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

 

“Press Release”
has the meaning set forth in Section 9.7 below.

 

“Principal
Trading Market” means the trading market on which the Company’s Common Stock is primarily quoted for trading and
which, as of the date hereof, is the OTCQB Venture Market.

 

“Product(s)”
mean any product Marketed by the Company or any of its Subsidiaries or its contractors on behalf of the Company as of the date
hereof or at any date thereafter.

 

“Registration
Rights Agreement” has the meaning set forth in the recitals to this Agreement.

 

“Regulation
D” means Regulation D as promulgated by the SEC under the 1933 Act.

 

“Required
Investors” means the Investors which, together with their respective Affiliates, have agreed to purchase a majority of
the Shares proposed to be issued and sold by the Company pursuant to this Agreement.

 

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

 

“SEC Filings”
means, collectively, the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, the Company’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and all other reports filed by the Company pursuant to the
1934 Act since January 1, 2020 and prior to the date hereof (each, as amended prior to the date hereof).

 

“Shares”
has the meaning set forth in the recitals to this Agreement.

 

“Subsidiary”
of any Person means another Person, an amount of the voting securities, other voting ownership or voting partnership interests
of which is sufficient to elect at least a majority of its Board of Directors or other governing body (or, if there are no such
voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by such first Person.

 

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“Trading Day”
means a day on which the Principal Trading Market is open for trading.

 

“Trading Market”
means any of the following markets or exchanges on which the Common Stock may in the future be listed or quoted for trading: the
NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange
(or any successors to any of the foregoing).

 

“1933 Act”
means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

“1934 Act”
means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

2.       Purchase
and Sale of the Shares. Subject to the terms and conditions of this Agreement, on the Closing Date, each of the Investors shall
severally, and not jointly, purchase, and the Company shall sell and issue to the Investors, the Shares in the respective amounts
set forth opposite the name of such Investor under the heading “Number of Shares to be Purchased” on Exhibit A
attached hereto.

 

3.       Closing.
The closing (the “Closing”) of the purchase and sale of the Shares shall take place on the Closing Date at such
location as the Company and the Investors shall mutually agree. At the Closing, (a) the Company and each Investor shall deliver
its respective deliverables pursuant to Sections 6.1 or 6.2 hereof, as the case may be, (b) each Investor shall deliver
to the Company, via wire transfer to an account designated by the Company of immediately available funds, consideration in an amount
set forth on each Investors signature page hereto, and (c) the Company shall provide irrevocable instructions to its transfer
agent (the “Transfer Agent”) to issue to each Investor the number of Shares set forth opposite the name of such
Investor under the heading “Number of Shares to be Purchased” on Exhibit A attached hereto. The Shares shall
be delivered in certificated form or in electronic book entry form through the Transfer Agent.

 

4.       Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investors that, except as set forth in the
SEC Filings:

 

4.1       Subsidiaries.
The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary identified in its
SEC Filings. None of the Subsidiaries of the Company own any Intellectual Property Rights related to the Products, hold any material
Intellectual Property Rights of the Company or hold any other assets with a value in excess of $5,000, and the Subsidiaries are
treated as inactive by the Company and not used in the ordinary course of business.

 

4.2       Organization
and Qualification. The Company is a corporation validly existing and as of the Closing Date will be in good standing under
the laws of the State of Delaware, and has the requisite power and authority to own and use its properties and assets and to carry
on its business as described in the SEC Filings. The Company is not in violation or in default of any of the provisions of its
certificate of incorporation or bylaws. As of the Closing Date, the Company will be duly qualified to conduct business and in good
standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary.

 

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4.3       Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and, to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement
by the Company and the consummation by it of the transactions contemplated hereby, have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection with the issuance and sale of the Shares to the Investors on the Closing Date, other than in respect of the Required
Approvals, as defined in Section 4.4 hereof. This Agreement has been duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except (i) as limited by any applicable bankruptcy, insolvency and other similar Legal
Requirements affecting the enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies, and (iii) insofar as indemnification and contribution provisions
may be limited by applicable law.

 

4.4       Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any Governmental Entity or other Person in connection with the issuance and sale of
the Shares to the Investors on the Closing Date, other than: (i) such filings as are required to be made under applicable state
securities laws; (ii) a Current Report on Form 8-K to report the entry into this Agreement and the Registration Rights Agreement,
the issuance of the Shares and certain other matters in respect of the transactions contemplated hereby and thereby; and (iii)
such filings as are required to be made in accordance with the rules of the OTCQB Venture Market (collectively, the “Required
Approvals”).

 

4.5       No
Conflicts. The execution and delivery by the Company of this Agreement and the issuance and sale of the Shares to the Investors
on the Closing Date do not and will not (i) subject to obtaining the Required Approvals, conflict with or violate any provision
of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a
default) under, result in the creation of any lien upon any of the properties or assets of the Company or any Subsidiary, or, give
to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding
to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or
affected, or (iii) subject to obtaining the Required Approvals, conflict with or result in a violation of any Legal Requirements
of any Governmental Entity to which the Company or any Subsidiary is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Company is bound or affected.

 

4.6       Issuance
of the Shares. The Shares to be issued and sold to the Investors on the Closing Date pursuant to this Agreement have been duly
authorized and, when issued and paid for in accordance with the terms hereof, will be duly and validly issued, fully paid and nonassessable.

 

4.7       Use
of Proceeds. The net proceeds of the sale of the Shares shall be used by the Company to redeem all of the outstanding principal
amount of the convertible promissory notes issued in March 2020, as disclosed in the SEC Filings, and for working capital and general
corporate purposes including development of the Company’s Products.

 

4.8       Capitalization.
No Person has any right of first refusal, preemptive right, right of participation, or any similar right to purchase any or all
of the Shares proposed to be issued and sold to the Investors as contemplated hereby. All of the outstanding shares of capital
stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all
Legal Requirements, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe
for or purchase securities. Except as set forth in the SEC Filings, there are no stockholders agreements, voting agreements or
other similar agreements with respect to the Company’s capital stock to which the Company is a party or between or among
any of the Company’s stockholders.

 

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4.9       SEC
Reports; Financial Statements. Since January 1, 2019, the Company has timely filed all reports, schedules, forms, statements
and other documents required to be filed by the Company under Section 13(a) or 15(d) of the 1934 Act.

 

4.10       Material
Changes; Undisclosed Events, Liabilities or Developments. Since March 31, 2020, except as specifically disclosed in a subsequent
SEC Filing filed at least one Trading Day prior to the date hereof, there has not been:

 

(a)       any
change in the consolidated assets, liabilities, financial condition or operating results of the Company from that reflected in
the financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, except
for changes in the ordinary course of business which have not had and would not reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect;

 

(b)       any
declaration or payment by the Company of any dividend, or any authorization or payment by the Company of any distribution, on any
of the capital stock of the Company, or any redemption or repurchase by the Company of any securities of the Company;

 

(c)       any
material damage, destruction or loss, whether or not covered by insurance, to any assets or properties of the Company;

 

(d)       any
waiver, not in the ordinary course of business, by the Company of a material right or of a material debt owed to it;

 

(e)       any
satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company, except in the ordinary
course of business and which is not material to the assets, properties, financial condition, operating results or business of the
Company (as such business is presently conducted);

 

(f)       any
change or amendment to the Company’s Certificate of Incorporation or Bylaws, or material change to any material contract
or arrangement by which the Company is bound or to which any of its assets or properties is subject;

 

(g)       any
material labor difficulties or, to the Company’s Knowledge, labor union organizing activities with respect to employees of
the Company;

 

(h)       any
material transaction entered into by the Company other than in the ordinary course of business;

 

(i)       the
loss of the services of any key employee, or material change in the composition or duties of the senior management of the Company;
or

 

(j)       any
other event or condition of any character that has had or would reasonably be expected to have a Material Adverse Effect.

 

4.11       Litigation.
Except for actions disclosed in the SEC Filings, there is no action or proceeding which adversely affects or challenges the legality,
validity or enforceability of any of this Agreement or the issuance of the Shares. None of the Company, any Subsidiary, or any
current director or officer thereof, is or has been the subject of any action, or, any proceeding, involving a claim of violation
of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and there is
not pending or, to the Company’s Knowledge, contemplated, any investigation by the SEC involving the Company or any current
director or officer of the Company. The SEC has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by the Company or any Subsidiary under the 1934 Act or the 1933 Act.

 

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4.12       Labor
Relations. No material labor dispute exists or, to the Company’s Knowledge, is imminent with respect to any of the employees
of the Company. None of the Company’s employees is a member of a union that relates to such employee’s relationship
with the Company, and the Company is not a party to a collective bargaining agreement, and the Company believes that its relationships
with its employees are in good standing. To the Company’s Knowledge, no executive officer of the Company or any Subsidiary
is, or is now expected to be, in violation of any material term of any Material Contract, employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other Material Contract or any restrictive
covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company
or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company is in compliance with all
applicable Legal Requirements relating to employment and employment practices, terms and conditions of employment and wages and
hours.

 

4.13       Compliance.
Except as would not reasonably be expected to have a Material Adverse Effect, neither the Company nor any Subsidiary: (a) is in
default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both,
would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim
that, as of the date hereof, it is in default under or that it is in violation of, any Material Contract to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived), (b) is in violation
of any judgment, decree or order of any Governmental Entity, or (c) is in violation of any Drug Regulatory Legal Requirements of
Healthcare Regulatory Legal Requirements.

 

4.14       Title
to Assets. The Company and its Subsidiaries have good and valid title in all material personal property owned by them, free
and clear of all liens, except for (a) liens as do not materially affect the value of such property and do not materially interfere
with the use made and proposed to be made of such property by the Company and the Subsidiaries, and (b) liens for the payment of
federal, state or other taxes, for which appropriate reserves have been made in accordance with GAAP and, the payment of which
is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries
are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance in
all material respects. The Company does not currently own any real property.

 

4.15       Intellectual
Property. Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect,
the Company owns, possesses, licenses, or has other rights to use or can acquire on reasonable terms, all Intellectual Property
necessary for the conduct of the Company’s business as described in the SEC Filings (collectively, the “Intellectual
Property Rights”). Except as described in the SEC Filings, and as would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect, (a) there is no pending or to the Company’s Knowledge, threatened action,
suit, proceeding or claim by others challenging the Company’s Intellectual Property Rights, and to the Company’s Knowledge,
there are no facts which would form a reasonable basis for any such claim; (b) there is no pending or to the Company’s Knowledge,
threatened action, suit, proceeding or claim by others challenging the validity or scope of the Company’s Intellectual Property,
and to the Company’s Knowledge, there are no facts which would form a reasonable basis for any such claim; (c) there is no
pending or, to the Company’s Knowledge, threatened action, suit, proceeding or claim by others that the Company infringes
or otherwise violates any patent, trademark, copyright, trade secret or other proprietary rights of others; and (d) the Company
has filed or caused to be filed with the U.S. Patent and Trademark Office and applicable foreign and international patent authorities
all material patent applications in respect of Intellectual Property owned by the Company.

 

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4.16       Insurance.
The Company is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as
are prudent and customary in the business in which the Company is engaged, including, but not limited to, directors and officers
insurance coverage.

 

4.17       Transactions
with Affiliates and Employees. Except as set forth in the SEC Filings, none of the current officers or directors of the Company
and, none of the employees of the Company is presently a party to any transaction with the Company (other than for services as
employees, officers and directors), including any Material Contract or other arrangement providing for the furnishing of services
to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of
money entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee,
stockholder, member or partner.

 

4.18       Certain
Fees. The Investors shall have no obligation with respect to any placement agency or brokerage fees or with respect to any
claims made by or on behalf of other Persons and against the Company for fees of a type contemplated in this Section in connection
with the transactions contemplated by this Agreement.

 

4.19       Investment
Company. The Company is not, and immediately after receipt of payment for the Shares, will not be, an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

 

4.20       No
Directed Selling Efforts or General Solicitation. Neither the Company nor any Person acting on its behalf has conducted any
general solicitation or general advertising (as those terms are used in Regulation D under the 1933 Act) in connection with the
offer or sale of any of the securities.

 

4.21       No
Integrated Offering. Neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any Company security or solicited any offers to buy any security, under circumstances
that would adversely affect reliance by the Company on an applicable exemption from registration for the transactions contemplated
hereby or would require registration of the Shares under the 1933 Act.

 

4.22       Private
Placement. Subject to the accuracy of the Investors’ representations and warranties in Section 5 of this Agreement,
the offer and sale of the Shares to the Investors as contemplated hereby is exempt from the registration requirements of the 1933
Act.

 

4.23       Shell
Company Status. The Company is not, and has never been, an issuer identified in Rule 144(i)(1).

 

4.24       Listing
and Maintenance Requirements. The Company’s Common Stock is registered pursuant to Section 12(g) of the 1934 Act, and
the Company has taken no action designed to terminate, or is likely to have the effect of, terminating the registration of the
Common Stock under the 1934 Act nor has the Company received any notification that the SEC is contemplating terminating such registration.

 

4.25       No
Anti-Takeover Plan. No state takeover statute or similar statute or regulation applies or purports to apply to this Agreement
or any of the transactions contemplated by this Agreement. Stockholders of the Company or any Subsidiary will not be entitled to
dissenters’ rights under applicable state law in connection with the issuance and sale of the Shares to the Investors as
contemplated hereby.

 

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4.26       Tax
Status. The Company and its Subsidiaries each (i) has made or filed all United States federal and state income and all foreign
income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all
taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns,
reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes
for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material
amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any
such claim.

 

4.27       Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the Company’s Knowledge, any agent or other person
acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts,
bribe, rebate, payoff, commissions, promotional allowances, entertainment, influence payments, kickback or other unlawful expenses
or other payment or economic benefit to any Person, private or public, in the United States, its territories, or any foreign jurisdiction,
regardless of what form, whether in money, property, or service, (ii) made any unlawful payment to foreign or domestic government
officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose
fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is
aware) which is in violation of law, (iv) violated in any material respect any provision of FCPA, (v) established or maintained
any fund or asset that has not been recorded in the books and records of Company, or (vi) aided, abetted, caused (directly or indirectly),
participated in, or otherwise conspired with, any Person to violate the terms of any judgment, sentence, order or decree of any
court or Governmental Entity.

 

4.28       Regulation
M Compliance. The Company has not, and no one acting on its behalf has, (i) taken, directly or indirectly, any action designed
to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or
resale of any of the Shares, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Shares,
or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company,
other than, in the case of clauses (ii) and (iii), compensation paid to any placement agent engaged by the Company in connection
with the placement of the Shares.

 

4.29       Regulatory
Compliance. With respect to all Products, the Company has only engaged in Marketing activities pursuant to and within the scope
of all required Governmental Approvals, and in compliance with the FDCA and applicable state laws. The clinical trials conducted
by and on behalf of the Company as part of its Marketing activities with respect to the Products have been and continue to be conducted
in accordance with any and all approved protocols, and no Governmental Entity or institutional review board has issued notice to
Company demanding the termination, suspension, material modification, or clinical hold of any such Marketing activities. There
are no pending or threatened criminal, civil, or administrative investigations or actions pertaining to the Company’s Marketing
activities, and the Company is not a party to any consent decree with any Governmental Entity. The Company has not received nor
is it aware of any warning letters, pending or unremediated FDA inspection violations, quarantine, or other notice of wrongdoing
or prohibition on future Marketing activities supplied by the FDA or any state board of pharmacy or department of health. The handling
of all biological and pharmaceutical materials, have been and are being conducted in all material respects in accordance with the
FDCA and applicable state laws. The Company is not directly, nor indirectly by any through its officers, directors, employees,
agents or contractors, debarred, suspended, or excluded from participation in the Medicare or Medicaid programs, or any other state
or federal health care program.

 

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4.30       Office
of Foreign Assets Control. Neither the Company nor any Subsidiary, nor any current director, officer, agent, employee nor any
affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department.

 

4.31       U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended.

 

4.32       Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries, nor any of its Affiliates, is subject to the Bank Holding
Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve
System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries, nor any of its Affiliates owns
or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five
percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.
Neither the Company nor any of its Subsidiaries, nor any of its Affiliates exercises a controlling influence over the management
or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

4.33       Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action or proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company with respect to the Money Laundering Laws is pending or, threatened.

 

4.34       Environmental
Legal Requirements. The Company (i) is in compliance with all Environmental Legal Requirements; (ii) has received all permits
licenses or other approvals required of it under applicable Environmental Legal Requirements to conduct its business; and (iii)
is in compliance with all terms and conditions of any such permit, license or approval.

 

4.35       Transactions
with Affiliates. Except as disclosed in the SEC Filings, none of the executive officers or directors of the Company and, to
the Company’s Knowledge, none of the employees of the Company, is presently a party to any transaction with the Company (other
than as holders of stock options, warrants and/or restricted stock, and for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the Company’s
Knowledge, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director,
trustee or partner, involving an amount in excess of $120,000.

 

4.36       Internal
Controls. The Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15
under the 1934 Act), which are designed to ensure that material information relating to the Company, including its Subsidiary,
is made known to the Company’s principal executive officer and its principal financial officer by others within those entities.
Since the end of the Company’s most recent audited fiscal year, except as described in the SEC Filings, there have been no
material weaknesses in the Company’s internal control over financial reporting (whether or not remediated) and no change
in the Company’s internal control over financial reporting that has materially affected, or would reasonably be expected
to materially affect, the Company’s internal control over financial reporting.

 

    	 	10	 

    	 

    

 

4.37       Disclosures.
Neither the Company nor any Person acting on its behalf has provided the Investors or their agents or counsel with any information
that constitutes or would reasonably be expected to constitute material nonpublic information concerning the Company or its subsidiary,
other than with respect to the transactions contemplated hereby, which will be disclosed in the Press Release (as defined below),
and other than with respect to the subject of any Cleansing Disclosure (as defined below). The SEC Filings, as of their respective
dates, did not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements contained therein, in light of the circumstances under which they were made, not misleading. The Company understands
and confirms that the Investors will rely on the foregoing representations in effecting transactions in securities of the Company.

 

4.38       Required
Filings. Other than with respect to the transactions contemplated by this Agreement, including the acquisition of the Shares
contemplated hereby, or with respect to the events and circumstances underlying any Cleansing Disclosure, no event or circumstance
has occurred or information exists with respect to the Company or its business, properties, operations or financial condition,
which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been
so publicly announced or disclosed (assuming for this purpose that the SEC Filings are being incorporated by reference into an
effective registration statement filed by the Company under the 1933 Act).

 

4.39       No
Bad Actors. No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the 1933 Act (a “Disqualification
Event”) is applicable to the Company or, to the Company’s Knowledge, any director, executive officer, Nomis Bay
(as defined below) or Black Horse (as defined below), except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv)
or (d)(3) is applicable.

 

5.       Representations
and Warranties of the Investors. Each of the Investors hereby severally, and not jointly, represents and warrants to the Company
that:

 

5.1       Organization
and Existence. To the extent the Investor is a Person other than a natural person, such Investor is a validly existing corporation,
limited partnership or limited liability company, as applicable, and has all requisite corporate, partnership or limited liability
company, as applicable, power and authority to invest in the Shares pursuant to this Agreement.

 

5.2       Authorization.
The execution, delivery and performance by such Investor of the Agreement have been duly authorized and will constitute the valid
and legally binding obligation of such Investor, enforceable against such Investor in accordance with their respective terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating
to or affecting creditors’ rights generally.

 

5.3       Purchase
Entirely for Own Account. The Shares to be received by such Investor hereunder will be acquired for such Investor’s own
account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the 1933
Act, and such Investor has no present agreement, understanding or intention of selling, granting any participation in, or otherwise
distributing the same in violation of the 1933 Act without prejudice, however, to such Investor’s right at all times to sell
or otherwise dispose of all or any part of such Shares in compliance with applicable federal and state securities laws. Nothing
contained herein shall be deemed a representation or warranty by such Investor to hold the Shares for any period of time. Such
Investor is not a broker-dealer registered with the SEC under the 1934 Act or an entity engaged in a business that would require
it to be so registered.

 

5.4       Investment
Experience. Such Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Shares
and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of
the investment contemplated hereby.

 

    	 	11	 

    	 

    

 

5.5       Disclosure
of Information. Such Investor has had an opportunity to receive all information related to the Company requested by it and
to ask questions of and receive answers from the Company regarding the Company, the Subsidiaries and their respective businesses
and the terms and conditions of the offering of the Shares. Such Investor acknowledges access to copies of the SEC Filings. Neither
such inquiries nor any other due diligence investigation conducted by such Investor shall modify, limit or otherwise affect such
Investor’s right to rely on the Company’s representations and warranties contained in this Agreement.

 

5.6       Restricted
Securities. Such Investor understands that the Shares will be characterized as “restricted securities” under the
U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be resold without registration under the 1933 Act only
in certain limited circumstances. Notwithstanding the foregoing, the Shares may be pledged in connection with a bona fide margin
account or other loan or financing arrangement secured by the Shares and such pledge of Securities shall not be deemed to be a
transfer, sale or assignment of the Shares hereunder, and no Investor effecting a pledge of Securities shall be required to provide
the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction
Document.

 

5.7       Legends.
Such Investor understands that certificates evidencing the Shares may bear the following or any similar legend (or, if the Shares
are issued in book entry, rather than certificated, form, they shall be subject to a comparable designation):

 

(a)       “The
issuance of the securities represented hereby has not been registered with the Securities and Exchange Commission in reliance upon
an exemption from registration under the Securities Act of 1933, as amended, and, accordingly, may not be transferred unless (i)
pursuant to an effective registration statement under the Securities Act of 1933, as amended, (ii) pursuant to Rule 144, or (iii) the
Company has received an opinion of counsel reasonably satisfactory to it that such transfer may lawfully be made without registration
under the Securities Act of 1933, as amended.”

 

(b)       If
required by the authorities of any state in connection with the issuance or sale of the Shares, the legend required by such state
authority.

 

5.8       Accredited
Investor. Such Investor is an accredited investor as defined in Rule 501(a) of Regulation D under the 1933 Act.

 

5.9       No
General Solicitation. Such Investor did not learn of the investment in the Shares as a result of any general solicitation or
general advertising.

 

5.10       Brokers
and Finders. No Person will have, as a result of the transactions contemplated by the Agreement, any valid right, interest
or claim against or upon the Company or any Subsidiary for any commission, fee or other remuneration pursuant to any agreement,
arrangement or understanding entered into by or on behalf of such Investor.

 

    	 	12	 

    	 

    

 

5.11       Prohibited
Transactions. Since the earlier of (a) such time as such Investor was first contacted by the Company or any other Person acting
on behalf of the Company regarding the transactions contemplated hereby or (b) thirty (30) days prior to the date hereof, neither
such Investor nor any Affiliate of such Investor which (x) had knowledge of the transactions contemplated hereby, (y) has or shares
discretion relating to such Investor’s investments or trading or information concerning such Investor’s investments,
including in respect of the Shares, or (z) is subject to such Investor’s review or input concerning such Affiliate’s
investments or trading (collectively, “Trading Affiliates”) has, directly or indirectly, effected or agreed
to effect any short sale, whether or not against the box, established any “put equivalent position” (as defined in
Rule 16a-1(h) under the 1934 Act) with respect to the Common Stock, granted any other right (including, without limitation, any
put or call option) with respect to the Common Stock or with respect to any security that includes, relates to or derived any significant
part of its value from the Common Stock or otherwise sought to hedge its position in the Shares (each, a “Prohibited Transaction”).
Prior to the Closing Date, such Investor shall not, and shall cause its Trading Affiliates not to, engage, directly or indirectly,
in a Prohibited Transaction. Such Investor acknowledges that the representations, warranties and covenants contained in this Section
5.11 are being made for the benefit of the Investors as well as the Company and that each of the other Investors shall have
an independent right to assert any claims against such Investor arising out of any breach or violation of the provisions of this
Section 5.11.

 

5.12       No
Disqualification Event. Such Investor is not, and to the extent it has them, its shareholders, members, managers, general partners,
directors, or executive officers are not, subject to any Disqualification Event. Such Investor confirms that it has exercised reasonable
care to determine whether it or any of the aforementioned persons are subject to such Disqualification Event. The purchase of the
Shares by such Investor will not subject the Company to any such Disqualification Event. Such Investor shall notify the Company
immediately in writing of the occurrence of any such Disqualification Event that has not previously been disclosed to the Company.

 

6.       Conditions
to Closing(s).

 

6.1       Conditions
to the Investors’ Obligations. The obligation of each Investor to purchase the Shares at the Closing is subject to the
fulfillment to such Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any of which may
be waived by such Investor (as to itself only):

 

(a)       The
representations and warranties made by the Company in Section 4 hereof qualified as to materiality shall be true and correct
as of the date hereof and as of the Closing Date, except to the extent any such representation or warranty expressly speaks as
of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and, the representations
and warranties made by the Company in Section 4 hereof not qualified as to materiality shall be true and correct in all
material respects as of the date hereof and as of the Closing Date, except to the extent any such representation or warranty expressly
speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects
as of such earlier date. The Company shall have performed in all material respects all obligations and covenants herein required
to be performed by it on or prior to the Closing Date.

 

(b)       The
Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation
of the issuance and sale of the Shares to the Investors on the Closing Date and the entry into the Registration Rights Agreement,
as contemplated by this Agreement (except for any Required Approvals), including but not limited to, a waiver of the waiver of
the registration rights granted under that certain Registration Rights Agreement dated as of February 27, 2018 by and among the
Company, Cheval Holdings, Ltd, Black Horse Capital Master Fund Ltd, and Nomis Bay LTD, all of which shall be in full force and
effect.

 

(c)       No
judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy
court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have
been instituted by any governmental authority, enjoining or preventing the consummation of the issuance and sale of the Shares
to the Investors on the Closing Date as contemplated by this Agreement.

 

    	 	13	 

    	 

    

 

(d)       No
stop order or suspension of trading shall have been imposed by the SEC or any other governmental or regulatory body with respect
to public trading in the Common Stock.

 

(e)       The
Company shall have executed and delivered the Registration Rights Agreement.

 

(f)       The
Company shall have delivered a Certificate, executed on behalf of the Company by its Chief Executive Officer, dated as of the Closing
Date, certifying to the fulfillment of the conditions specified in subsections (a) and (b) of this Section 6.1,
certifying the resolutions adopted by the Board of Directors of the Company approving the transactions contemplated by this Agreement
and the issuance of the Shares, certifying the current versions of the Certificate of Incorporation and Bylaws of the Company and
certifying as to the signatures and authority of persons signing this Agreement, the Registration Rights Agreement and related
documents on behalf of the Company.

 

(g)       
Polsinelli PC, counsel for the Company, shall have furnished to the Investors, its written opinion, dated the Closing Date, addressed
to the Investors, in form and substance reasonably satisfactory to the Investors.

 

(h)       The
“lock-up” agreements, each substantially in the form of Exhibit C hereto, to be delivered in favor of the investors
by (i) certain stockholders beneficially owning approximately 78% of the shares of Common Stock reported as issued and outstanding
as of the date of filing of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and (ii) officers
and directors of the Company, in each case relating to restrictions on sales and certain other dispositions of shares of Common
Stock or certain other securities, shall have been delivered to the Investors on or before the date hereof, and shall be in full
force and effect on the Closing Date.

 

6.2       Conditions
to Obligations of the Company. The Company's obligation to sell and issue the Shares at the Closing is subject to the fulfillment
to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be waived by the
Company:

 

(a)       The
representations and warranties made by the Investors in Section 5 hereof, other than the representations and warranties
contained in Sections 5.3, 5.4, 5.5, 5.6, 5.7, 5.8, and 5.9 (the “Investment Representations”), shall be true
and correct in all material respects when made, and shall be true and correct in all material respects on the Closing Date with
the same force and effect as if they had been made on and as of said date. The Investment Representations shall be true and correct
in all respects when made, and shall be true and correct in all respects on the Closing Date with the same force and effect as
if they had been made on and as of said date. The Investors shall have performed in all material respects all obligations and covenants
herein required to be performed by them on or prior to the Closing Date.

 

(b)       Each
Investor shall have delivered to the Company the requisite purchase price for the Shares to be purchased by such Investor.

 

(c)       Each
Investor desiring to have the Shares purchased by it registered for resale under the 1933 Act shall have delivered an executed
counterpart signature page to the Registration Rights Agreement and shall have delivered or will deliver timely a completed and
signed selling stockholder questionnaire in the form attached to the Registration Rights Agreement in form and substance reasonably
satisfactory to the Company.

 

    	 	14	 

    	 

    

 

(d)       Each
Investor identified by J.P. Morgan shall have delivered to the Company an executed letter agreement pursuant to which such Investor
shall have made certain representations and warranties to, and evidenced its agreement to certain matters with, J.P. Morgan.

 

6.3       Termination
of Obligations to Effect Closing; Effects.

 

(a)      The
obligations of the Company, on the one hand, and the Investors, on the other hand, to effect the Closing shall terminate as follows:

 

(i)       Upon
the mutual written consent of the Company and the Required Investors;

 

(ii)       By
the Company if any of the conditions set forth in Section 6.2 shall have become incapable of fulfillment, and shall not
have been waived by the Company;

 

(iii)       By
an Investor (with respect to itself only) if any of the conditions set forth in Section 6.1 shall have become incapable
of fulfillment, and shall not have been waived by the Investor; or

 

(iv)       By
either the Company or any Investor (with respect to itself only) if the Closing shall not have occurred on or prior to July 31,
2020;

 

provided, however, that, except in the
case of clause (ii) or (iii) above, the party seeking to terminate its obligation to effect the Closing shall not then be in breach
of any of its representations, warranties, covenants or agreements contained in this Agreement if such breach has resulted in the
circumstances giving rise to such party’s seeking to terminate its obligation to effect the Closing.

 

(b)      In
the event of termination by the Company or any Investor of its obligations to effect the Closing pursuant to this Section 6.3,
written notice thereof shall forthwith be given to the other Investors by the Company and the other Investors shall have the right
to terminate their obligations to effect the Closing upon written notice to the Company and the other Investors. Nothing in this
Section 6.3 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions
of this Agreement or to impair the right of any party to compel specific performance by any other party of its obligations under
this.

 

7.       Covenants
and Agreements of the Company and the Investors.

 

7.1       No
Conflicting Agreements. The Company will not take any action, enter into any agreement or make any commitment that would conflict
or interfere in any material respect with the Company’s obligations to the Investors under this Agreement.

 

7.2       Removal
of Legends.

 

(a)       In
connection with any sale, assignment, transfer or other disposition of the Shares by an Investor pursuant to Rule 144 or pursuant
to any other exemption under the 1933 Act such that the purchaser acquires freely tradable shares and upon compliance by the Investor
with the requirements of this Agreement, if requested by the Investor, the Company shall cause the Transfer Agent to remove any
restrictive legends related to the book entry account holding such Shares and make a new, unlegended entry for such book entry
Shares sold or disposed of without restrictive legends within three Business Days of the request of the Investor, provided that
the Company has received from the Investor customary representations and other documentation reasonably acceptable to the Company
in connection therewith.

 

    	 	15	 

    	 

    

 

(b)       Subject
to receipt from the Investor by the Company and the Transfer Agent of customary representations and other customary documentation
reasonably acceptable to the Company and the Transfer Agent in connection therewith, upon the earliest of (i) the Shares being
subject to an effective registration statement covering the resale of the Shares, (ii) such time as the Shares have been sold pursuant
to Rule 144, or (iii) such time as the Shares are eligible for resale under Rule 144(b)(1) or any successor provision (such earliest
date, the “Effective Date”), the Company shall (A) deliver to the Transfer Agent irrevocable instructions that
the Transfer Agent shall make a new, unlegended entry for such book entry Shares, and (B) cause its counsel to deliver to the Transfer
Agent, no later than three Business Days after the Effective Date, one or more opinions to the effect that the removal of such
legends in such circumstances may be effected under the 1933 Act if required by the Transfer Agent to effect the removal of the
legend in accordance with the provisions of this Agreement.  The Company agrees that following the Effective Date or at such
time as such legend is no longer required under this Section 7.2, it will, no later than three Business Days following the
delivery by an Investor to the Company or the Transfer Agent of a certificate representing Shares issued with a restrictive legend,
deliver or cause to be delivered to such Investor a certificate representing such shares that is free from all restrictive and
other legends. Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Investor by crediting
the account of the Investor’s custodian as directed by such Investor.  The Company shall be responsible for the fees
of its Transfer Agent and all DTC fees associated with such issuance.

 

(c)       Each
Investor, severally and not jointly with the other Investors, agrees with the Company (i) that such Investor will sell any Shares
pursuant to either the registration requirements of the 1933 Act, including any applicable prospectus delivery requirements, or
an exemption therefrom, (ii) that if Shares are sold pursuant to a registration statement, they will be sold in compliance with
the plan of distribution set forth therein and (iii) that if, after the Effective Date of the registration statement covering the
resale of the Shares, such registration statement is not then effective and the Company has provided notice to such Investor to
that effect, such Investor will comply with any restrictions on use of the registration statement to effect any sales and, if permitted,
will sell shares only in compliance with an exemption from the registration requirements of the 1933 Act. Each Investor acknowledges
that the removal of the restrictive legend from certificates representing Shares as set forth in this Section 7.2 is predicated
upon the Company’s reliance upon this understanding.

 

7.3       Subsequent
Sales. From the date hereof until sixty (60) days after the Closing Date, without the consent of the Venrock Healthcare
Capital Partners, III L.P., the Company shall not (A) issue shares of Common Stock or Common Stock Equivalents, (B) effect
a reverse stock split, recapitalization, share consolidation, reclassification or similar transaction affecting the outstanding
Common Stock or (C) file with the SEC a registration statement under the 1933 Act relating to any shares of Common Stock or
Common Stock Equivalents. Notwithstanding the foregoing, the provisions of this Section 7.3 shall not apply to (i) the
issuance of the Shares hereunder or the filing of the registration statement contemplated by the Registration Rights Agreement,
(ii) the issuance of any Common Stock or Common Stock Equivalents pursuant to any Company stock-based compensation plans,
(iii) the filing of a registration statement on Form S-8 under the 1933 Act to register the offer and sale of securities
on an equity incentive plan or employee stock purchase plan, or (iv) any post-effective amendment to any registration statement
that has been declared effective under the 1933 Act as of the date hereof. The Company shall not, and shall use its commercially
reasonable efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that will be integrated with the offer or sale of
the Shares in a manner that would require the registration under the 1933 Act of the sale of the Shares to the Investors, or that
will be integrated with the offer or sale of the Shares for purposes of the rules and regulations of any Trading Market.

 

    	 	16	 

    	 

    

 

7.4       Equal
Treatment of Investors. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of this Agreement unless the same consideration is also offered to all of the parties to this Agreement. For clarification
purposes, this provision constitutes a separate right granted to each Investor by the Company and negotiated separately by each
Investor, and is intended for the Company to treat the Investors as a class and shall not in any way be construed as the Investors
acting in concert or as a group with respect to the purchase, disposition or voting of Shares or otherwise.

 

7.5       
Listing of Common Stock. Promptly following the Closing, and subject in each case to the exercise of their respective fiduciary
duties by the Company’s board of directors and stockholders, the Company shall use its commercially reasonable efforts to
take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable, to obtain the
listing and trading of the Common Stock on a Trading Market (the “Uplisting”).

 

7.6       After
the Closing Date, for so long as Nomis Bay LTD, or any of its Affiliates (together “Nomis Bay”) are required
make filings under Section 16 of the 1934 Act with respect to the Company, the Company shall consider Nomis Bay to be an Affiliate
of the Company, as defined in Rule 144. 

 

7.7       After
the Closing Date, for so long as Black Horse Capital LP, or any of its Affiliates (together “Black Horse”) are
required make filings under Section 16 of the 1934 Act with respect to the Company, the Company shall consider Black Horse to be
an Affiliate of the Company, as defined in Rule 144. 

 

8.       Survival
and Indemnification.

 

8.1       Survival.
The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the transactions
contemplated by this Agreement.

 

8.2       Indemnification.
In consideration of each Investor’s execution and delivery of the Transaction Documents and acquiring the Shares thereunder
and in addition to all of the Company's other obligations under the Transaction Documents, the Company shall defend, protect, indemnify
and hold harmless each Investor and all of its stockholders, partners, members, officers, directors, employees and direct or indirect
investors and any of the foregoing Persons' agents or other representatives (including, without limitation, those retained in connection
with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including
reasonable attorneys' fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result
of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company
in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of
any covenant, agreement or obligation of the Company contained in the Transaction Documents or any other certificate, instrument
or document contemplated hereby or thereby or (c) any cause of action, suit or claim brought or made against such Indemnitee by
a third party (including for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting
from (i) the execution, delivery, performance or enforcement of the Transaction Documents or any other certificate, instrument
or document contemplated hereby or thereby, or (ii) any public disclosures made by the Company regarding the Investor and the transactions
contemplated hereunder. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company
shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible
under applicable law.

 

    	 	17	 

    	 

    

 

8.3       Conduct
of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (i) give prompt notice
to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to
assume the defense of such claim (including having the exclusive right to settle or compromise such claim) with counsel reasonably
satisfactory to the indemnified party; provided that any person entitled to indemnification hereunder shall have the right to employ
separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense
of such person unless (a) the indemnifying party has agreed to pay such fees or expenses, or (b) the indemnifying party shall have
failed to assume the defense of such claim and employ counsel reasonably satisfactory to such person or (c) in the reasonable judgment
of any such person, based upon written advice of its counsel, a conflict of interest exists between such person and the indemnifying
party with respect to such claims (in which case, if the person notifies the indemnifying party in writing that such person elects
to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume
the defense of such claim on behalf of such person); and provided, further, that the failure of any indemnified party to give notice
as provided herein shall not relieve the indemnifying party of its obligations hereunder, except to the extent that such failure
to give notice shall materially adversely affect the indemnifying party in the defense of any such claim or litigation. It is understood
that the indemnifying party shall not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses
of more than one separate firm of attorneys at any time for all such indemnified parties.

 

9.       Miscellaneous.

 

9.1       Successors
and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company or the Investors,
as applicable, provided, however, that an Investor may assign its rights and delegate its duties hereunder in whole or in part
to an Affiliate or to a third party acquiring some or all of its Shares in a transaction complying with applicable securities laws
without the prior written consent of the Company or the other Investors, provided that such assignee agrees in writing to be bound,
with respect to such Shares, by the provisions of this Agreement that apply to the “Investors”. The provisions of this
Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties.

 

9.2       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. In the event that any signature is delivered by e-mail delivery of a “.pdf”
format data file, such signature shall create a valid and binding obligation of the party executing this Agreement (or on whose
behalf such signature is executed) with the same force and effect as if such “.pdf” signature page were an original
thereof.

 

9.3       Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

 

9.4       Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be delivered via email at the email address set forth on the signature pages attached hereto. All notices shall be deemed
given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered at or prior
to 5:30 p.m. (New York City time) on a Trading Day, or (b) the next Trading Day after the date of transmission, if such notice
or communication is delivered via email at the email address set forth on the signature pages attached hereto on a day that is
not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day. The respective email addresses for such notices
and communications shall be as set forth on the signature pages attached hereto or as the recipient shall have otherwise provided
to the other parties in conformity with this section.

 

    	 	18	 

    	 

    

 

9.5       Expenses.
At the Closing, the Company shall pay the reasonable expenses of Cooley LLP, the counsel for Venrock Healthcare Capital Partners,
III L.P., in an amount not to exceed, in the aggregate, $50,000. The Company shall pay all Transfer Agent fees (including, without
limitation, any fees required for processing of any instruction letter delivered by the Company), stamp taxes and other taxes and
duties levied in connection with the delivery of any Shares to the Investors.

 

9.6       Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement 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 Required Investors. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder
of any Shares purchased under this Agreement at the time outstanding, each future holder of all such Shares, and the Company.

 

9.7       Publicity.
Except as set forth below, no public release or announcement concerning the transactions contemplated hereby shall be issued by
the Company or the Investors without the prior consent of the Company (in the case of a release or announcement by the Investors)
or the Investors (in the case of a release or announcement by the Company) (which consents shall not be unreasonably withheld),
except as such release or announcement may be required by law or the applicable rules or regulations of any securities exchange
or securities market, in which case the Company or the Investors, as the case may be, shall allow the Investors or the Company,
as applicable, to the extent reasonably practicable in the circumstances, reasonable time to comment on such release or announcement
in advance of such issuance. Notwithstanding the foregoing, each Investor may identify the Company and the value of such Investor’s
security holdings in the Company in accordance with applicable investment reporting and disclosure regulations or internal policies
without prior notice to or consent from the Company (including, for the avoidance of doubt, filings pursuant to Sections 13 and
16 of the 1934 Act). The Company shall not include the name of any Investor or any Affiliate or investment adviser of such Investor
in any press release or public announcement (which, for the avoidance of doubt, shall not include any SEC Filing to the extent
such disclosure is required by SEC rules and regulations) without the prior written consent of such Investor. By 8:30 a.m. (New
York City time) on the Business Day immediately following the date this Agreement is executed, the Company shall issue a press
release disclosing all material terms of the sale of the Shares to the Investors pursuant to this Agreement (the “Press
Release”). No later than thirty (30) days after the Closing Date, the Company shall issue a press release and/or file
a Current Report on Form 8-K disclosing any material non-public information that the Company may have provided any Investor in
connection with the transactions contemplated by this Agreement at any time prior to the filing of such press release (the “Cleansing
Disclosure”), as such material non-public information may be updated from time-to-time including through the inclusion
of additional data. In addition, the Company will make such other filings and notices in the manner and time required by the SEC.
From and after the issuance of the Cleansing Disclosure, no Investor shall be in possession of any material non-public information
received from the Company, its subsidiary or any of their respective officers, directors, employees or agents in connection with
the transactions contemplated by this Agreement.

 

9.8       Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted
as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable
in any respect.

 

    	 	19	 

    	 

    

 

9.9       Entire
Agreement. This Agreement constitutes the entire agreement among the parties hereof with respect to the subject matter hereof
and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the subject
matter hereof.

 

9.10       Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise this Agreement
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of this Agreement or any amendments thereto.

 

9.11       Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions
as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements
herein contained.

 

9.12       Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of New York without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United States District
Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising
out of this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices
under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action
or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue
of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST
A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS
TO THIS WAIVER.

 

9.13       Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor under this Agreement are several and not
joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations
of any other Investor under this Agreement. The decision of each Investor to purchase Shares pursuant to this Agreement has been
made by such Investor independently of any other Investor. Nothing contained herein, and no action taken by any Investor pursuant
thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity,
or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the
transactions contemplated by this Agreement. Each Investor acknowledges that no other Investor has acted as agent for such Investor
in connection with making its investment hereunder and that no Investor will be acting as agent of such Investor in connection
with monitoring its investment in the Shares or enforcing its rights under this Agreement. Each Investor shall be entitled to independently
protect and enforce its rights, including, without limitation, the rights arising out of this, and it shall not be necessary for
any other Investor to be joined as an additional party in any proceeding for such purpose. The Company acknowledges that each of
the Investors has been provided with the same Agreement for the purpose of closing a transaction with multiple Investors and not
because it was required or requested to do so by any Investor.

 

[Signature pages follow]

 

    	 	20	 

    	 

    

 

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

 

 

	HUMANIGEN, Inc.	 	Address for Notice:
	
         

         

        
	 	
        Attn: Dr. Cameron Durrant

        Email: cdurrant@humanigen.com

	 	 	 	 
	By:	/s/ Cameron Durrant	 	 
	 	Name: Dr. Cameron Durrant	 	 
	 	Title: Chief Executive Officer	 	 

 

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

 

Polsinelli P.C.

1401 Eye (I) Street N.W., Suite 800

Washington, D.C. 20005

Attn: Kevin L. Vold

Email: kvold@polsinelli.com

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor: 	Venrock Healthcare Capital Partners II, L.P.
	 	 
		By: VHCP Management II, LLC
	 	 
		Its: General Partner

 

	Signature of Authorized Signatory of Investor: 	/s/ David L. Stepp
	 	 
	Name of Authorized Signatory:	David L. Stepp
	 	 
	Title of Authorized Signatory: 	Authorized Signatory
	 	 
	Email address of Authorized Signatory:	[***] 
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor: 	VHCP Co-Investment Holdings II, LLC
	 	 
		By: VHCP Management II, LLC
	 	 
		Its: Manager

 

	Signature of Authorized Signatory of Investor: 	/s/ David L. Stepp
	 	 
	Name of Authorized Signatory:	David L. Stepp
	 	 
	Title of Authorized Signatory: 	Authorized Signatory
	 	 
	Email address of Authorized Signatory:	[***] 
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor: 	Venrock Healthcare Capital Partners III, L.P.
	 	 
		By: VHCP Management III, LLC
	 	 
		Its: General Partner

 

	Signature of Authorized Signatory of Investor: 	/s/ David L. Stepp
	 	 
	Name of Authorized Signatory:	David L. Stepp
	 	 
	Title of Authorized Signatory: 	Authorized Signatory
	 	 
	Email address of Authorized Signatory:	[***] 
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor: 	VHCP Co-Investment Holdings III, LLC
	 	 
		By: VHCP Management III, LLC
	 	 
		Its: Manager

 

	Signature of Authorized Signatory of Investor: 	/s/ David L. Stepp
	 	 
	Name of Authorized Signatory:	David L. Stepp
	 	 
	Title of Authorized Signatory: 	Authorized Signatory
	 	 
	Email address of Authorized Signatory:	[***] 
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor:	 HealthCor Offshore Master Fund,
    L.P.
	 	 
	By:	General Partner: HealthCor Offshore GP, LLC
	 	 
	 	By: HealthCor Group, LLC, its Managing Member

 

	Signature of Authorized Signatory of Investor: 	/s/ Annabelle Perez Gray
	 	 
	Name of Authorized Signatory: 	Annabelle Perez Gray
	 	 
	Title of Authorized Signatory: 	General Counsel, HealthCor Group, LLC
	 	 
	Email address of Authorized Signatory:	[***] 
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor: 	HealthCor Sanatate Offshore Master Fund, L.P.
	 	 
	By:	General Partner: HealthCor Offshore II GP, LLC
	 	 
		By: HealthCor Group, LLC, its Managing Member

 

	Signature of Authorized Signatory of Investor: 	/s/ Annabelle Perez Gray
	 	 
	Name of Authorized Signatory: 	Annabelle Perez Gray
	 	 
	Title of Authorized Signatory: 	General Counsel
	 	 
	Email address of Authorized Signatory: 	[***] 
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor: 	Valiant Capital Partners, LP
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Brian Miller
	 	 
	Name of Authorized Signatory: 	Brian Miller
	 	 
	Title of Authorized Signatory:	CFO
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor:	Valiant Capital Master Fund, LP
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Brian Miller
	 	 
	Name of Authorized Signatory:	Brian Miller
	 	 
	Title of Authorized Signatory:	CFO
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor:	Valiant Employee Investment Fund, LLC
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Brian Miller
	 	 
	Name of Authorized Signatory:	Brian Miller
	 	 
	Title of Authorized Signatory: 	CFO
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor:	Citadel Multi-Strategies Equities Master
Fund Ltd.
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Shellane Mulcahy
	 	 
	Name of Authorized Signatory:	Shellane Mulcahy
	 	 
	Title of Authorized Signatory:	Authorized Signatory of Citadel Advisors LLC, its
Portfolio Manager
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor:	Ghost Tree Capital Group, LP
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Matthew Diaz
	 	 
	Name of Authorized Signatory:	Matthew Diaz
	 	 
	Title of Authorized Signatory:	COO/CFO/CCO
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor:	Ghost Tree Capital Group, LP
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Matthew Diaz
	 	 
	Name of Authorized Signatory:	Matthew Diaz
	 	 
	Title of Authorized Signatory:	COO/CFO/CCO
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor:	Ghost Tree Capital Group, LP
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Matthew Diaz
	 	 
	Name of Authorized Signatory:	Matthew Diaz
	 	 
	Title of Authorized Signatory:	COO/CFO/CCO
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor:	Ghost Tree Capital Group, LP
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Matthew Diaz
	 	 
	Name of Authorized Signatory:	Matthew Diaz
	 	 
	Title of Authorized Signatory:	COO/CFO/CCO
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor:	Ghost Tree Capital Group, LP
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Matthew Diaz
	 	 
	Name of Authorized Signatory:	Matthew Diaz
	 	 
	Title of Authorized Signatory:	COO/CFO/CCO
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor: 	First Light Focus Fund, LP
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Mathew P. Arens
	 	 
	Name of Authorized Signatory:	Mathew P. Arens
	 	 
	Title of Authorized Signatory:	Managing Member of the GP
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor: 	TMJ & Associates LLC
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Jeffrey Talpins
	 	 
	Name of Authorized Signatory:	Jeffrey Talpins
	 	 
	Title of Authorized Signatory:	Managing Member
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF,
the undersigned has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first
indicated above.

 

	Name of Investor: 	Oren Eisner
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Oren Eisner
	 	 
	Name of Authorized Signatory:	Oren Eisner
	 	 
	Title of Authorized Signatory: 	 
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Manouchehr Graham Taraz
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Manouchehr Graham Taraz
	 	 
	Name of Authorized Signatory:	Manouchehr Graham Taraz
	 	 
	Title of Authorized Signatory: 	 
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	 Peter Hirsch
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Peter Hirsch
	 	 
	Name of Authorized Signatory: 	Peter Hirsch
	 	 
	Title of Authorized Signatory: 	Myself
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor: 	Jeff Paley
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Jeff Paley
	 	 
	Name of Authorized Signatory:	Jeff Paley
	 	 
	Title of Authorized Signatory: 	 
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor: 	Logos Global Master Fund, LP
	 	 
	 	By: Logos GP, LLC
	 	 
	 	Its: General Partner

 

	Signature of Authorized Signatory of Investor: 	/s/ Arsani William
	 	 
	Name of Authorized Signatory:	Arsani William
	 	 
	Title of Authorized Signatory:	Manager
	 	 
	Email address of Authorized Signatory:	[***] 
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	KPM Tech Co., Ltd
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ JiHoon Kim
	 	 
	Name of Authorized Signatory:	JiHoon Kim
	 	 
	Title of Authorized Signatory:	Chief Executive Officer
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor: 	Telcon RF Pharmaceutical Co., Ltd
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ JiHoon Kim
	 	 
	Name of Authorized Signatory:	JiHoon Kim
	 	 
	Title of Authorized Signatory:	Chief Executive Officer
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor: 	Roger Griggs
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Roger Griggs
	 	 
	Name of Authorized Signatory:	 
	 	 
	Title of Authorized Signatory:	 
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Steven J. Lerner
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Steven J. Lerner
	 	 
	Name of Authorized Signatory: 	Steven J. Lerner
	 	 
	Title of Authorized Signatory:	Self
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Coleman Wortham, III
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Coleman Wortham, III
	 	 
	Name of Authorized Signatory: 	Coleman Wortham, III
	 	 
	Title of Authorized Signatory:	Self
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Kevin Penn
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Kevin Penn
	 	 
	Name of Authorized Signatory: 	 
	 	 
	Title of Authorized Signatory:	 
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Michael G. Fisch 2006 Revocable Trust
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Michael G. Fisch
	 	 
	Name of Authorized Signatory:	Michael G. Fisch
	 	 
	Title of Authorized Signatory: 	Trustee
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Jonathan Adam Abram
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Jonathan Adam Abram
	 	 
	Name of Authorized Signatory:	Jonathan Adam Abram
	 	 
	Title of Authorized Signatory: 	 
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Charles Froland
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Charles Froland
	 	 
	Name of Authorized Signatory:	Charles Froland
	 	 
	Title of Authorized Signatory:	Partner
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Sallie Shuping Russell
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Sallie Shuping Russell
	 	 
	Name of Authorized Signatory: 	Sallie Shuping Russell
	 	 
	Title of Authorized Signatory: 	Self
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor: 	Blair Levin
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Blair Levin
	 	 
	Name of Authorized Signatory:	Blair Levin
	 	 
	Title of Authorized Signatory: 	 
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Ken Eudy
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Ken Eudy
	 	 
	Name of Authorized Signatory:	Ken Eudy
	 	 
	Title of Authorized Signatory: 	 
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Magellan Partners I, LLC
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Bruce Boucher
	 	 
	Name of Authorized Signatory:	Bruce Boucher, Manager
	 	 
	Title of Authorized Signatory: 	Manager
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	Magellan’s Compass I LP
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ W. Lowry Caudill
	 	 
	Name of Authorized Signatory:	W. Lowry Caudill
	 	 
	Title of Authorized Signatory:	Limited Partner, Magellan’s Compass I LP
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	The Shlain Family Trust
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Dr. Jordan Shlain
	 	 
	Name of Authorized Signatory:	Dr. Jordan Shlain
	 	 
	Title of Authorized Signatory:	Trustee
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor: 	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor: 	Ronald J. Bernstein
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Ronald J. Bernstein
	 	 
	Name of Authorized Signatory: 	 
	 	 
	Title of Authorized Signatory: 	 
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor: 	Ted D. Meisel Trust dated 10/16/2000
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Ted Meisel
	 	 
	Name of Authorized Signatory:	Ted Meisel
	 	 
	Title of Authorized Signatory: 	Trustee
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned
has caused this Securities Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	AT Investors, LLC
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Arthur Bilger
	 	 
	Name of Authorized Signatory: 	Arthur Bilger
	 	 
	Title of Authorized Signatory: 	Member
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor:	The H. Stewart Parker Living Trust
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ H. Stewart Parker
	 	 
	Name of Authorized Signatory:	H. Stewart Parker
	 	 
	Title of Authorized Signatory: 	Trustee
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor: 	Paul Gilbert
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Paul Gilbert
	 	 
	Name of Authorized Signatory: 	Paul Gilbert
	 	 
	Title of Authorized Signatory: 	 
	 	 
	Email address of Authorized Signatory: 	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

INVESTOR SIGNATURE PAGE TO humanigen,
INC. SECURITIES PURCHASE AGREEMENT

 

 

IN WITNESS WHEREOF, the undersigned has caused this Securities
Purchase Agreement to be duly executed by its authorized signatory as of the date first indicated above.

 

	Name of Investor: 	Beauregard Holdings LLC
	 	 
	Signature of Authorized Signatory of Investor: 	/s/ Stuart Lipton
	 	 
	Name of Authorized Signatory: 	Stuart Lipton
	 	 
	Title of Authorized Signatory:	Manager
	 	 
	Email address of Authorized Signatory:	[***]
	 	 
	Address for Delivery of Shares to Investor:	[***]

 

    	 		 

    	 

    

 

EXHIBIT A 

 

Schedule of Investors 

	Investor Name	 	Number of 
 Shares to 
 be
 Purchased1	 	 	Aggregate 
 Purchase
 Price of Shares	 
	Venrock	 	 	17,241,379	 	 	$	15,000,000.00	 
	HealthCor	 	 	4,597,701	 	 	$	4,000,000.00	 
	Valiant Capital	 	 	27,011,494	 	 	$	23,500,000.00	 
	Valiant Partners	 	 	3,160,919	 	 	$	2,750,000.00	 
	Surveyor	 	 	5,747,126	 	 	$	5,000,000.00	 
	Ghost Tree Capital	 	 	2,873,563	 	 	$	2,500,000.00	 
	Element Capital	 	 	9,195,402	 	 	$	8,000,000.00	 
	First Light Asset Management	 	 	4,022,988	 	 	$	3,500,000.00	 
	Logos Capital	 	 	2,298,850	 	 	$	2,000,000.00	 
	KPM Tech and Telcon RF	 	 	4,597,701	 	 	$	4,000,000.00	 
	Storm Chaser Opportunity Fund investor network2	 	 	1,724,137	 	 	$	1,500,000.00	 
	Roger Griggs	 	 	57,471	 	 	$	50,000.00	 
	          TOTAL	 	 	82,528,735	 	 	$	71,800,000.00	 

 

_____________________________

1 Share numbers and aggregate purchase prices are subject to allocations
among each Investor’s funds or investing entities, and rounding.

2 Specific share numbers and purchase prices allocated among these
Investors are set forth on the attached page.

 

    	 		 

    	 

    

 

EXHIBIT A

(Continued)

 

Storm Chaser Opportunity Fund Investor Network

 

	Investor Name	 	Number of 
 Shares to 
 be
 Purchased	 	 	Aggregate 
 Purchase
 Price of Shares	 
	Steven J. Lerner	 	 	383,141	 	 	$	333,332.67	 
	Coleman Wortham III	 	 	239,463	 	 	$	208,332.81	 
	Kevin Penn	 	 	191,570	 	 	$	166,665.90	 
	Michael G. Fisch 2006 Revocable Trust	 	 	191,570	 	 	$	166,665.90	 
	Jonathan Adam Abram	 	 	119,732	 	 	$	104,167.00	 
	Sallie Shuping Russell	 	 	71,839	 	 	$	62,499.93	 
	Blair Levin	 	 	71,839	 	 	$	62,499.93	 
	Ken Eudy	 	 	47,892	 	 	$	41,666.04	 
	Magellan Partners I, LLC	 	 	47,892	 	 	$	41,666.04	 
	Magellan's Compass I LP	 	 	47,892	 	 	$	41,666.04	 
	The H. Stewart Parker Living Trust	 	 	47,892	 	 	$	41,666.04	 
	Ronald J. Bernstein	 	 	47,892	 	 	$	41,666.04	 
	Beauregard Holdings LLC	 	 	11,973	 	 	$	10,416.51	 
	Ted D Meisel Trust dated 10/16/2000	 	 	47,892	 	 	$	41,666.04	 
	AT Investors, LLC	 	 	47,892	 	 	$	41,666.04	 
	The Shlain Family Trust	 	 	47,892	 	 	$	41,666.04	 
	Charles Froland	 	 	47,892	 	 	$	41,666.04	 
	Paul Gilbert	 	 	11,973	 	 	$	10,416.51	 

 

    	 		 

    	 

    

 

EXHIBIT B

 

Registration Rights Agreement

 

 

 

 

 

 

    	 		 

    	 

    

 

EXHIBIT C

 

Form of Lock-Up Agreement

 

 

 

 

 

 

    	 		 

    	 

    

 

LOCK-UP AGREEMENT

 

June 1, 2020

 

THE INVESTORS PARTY TO THAT CERTAIN

SECURITIES PURCHASE AGREEMENT

 

c/o J.P. Morgan Securities LLC

as Placement Agent to the Company

383 Madison Avenue

New York, NY 10179

 

 

		Re:	Humanigen, Inc. --- Private Placement of Common Stock

 

Ladies and Gentlemen:

 

The undersigned understands that
the investors named on Exhibit A thereto (the “Investors”) have entered into a Securities Purchase Agreement
of even date herewith (the “Purchase Agreement”) with Humanigen, Inc., a Delaware corporation (the “Company”),
providing for the sale by the Company to the Investors of up to $72 million of shares (the “Shares”) of the
Company’s common stock, $0.001 per share par value (the “Common Stock”). Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Purchase Agreement.

 

In consideration of the Investors’
respective agreements to purchase the Shares, and for other good and valuable consideration receipt of which is hereby acknowledged,
the undersigned hereby agrees that, without the prior written consent of J.P. Morgan Securities LLC (“J.P. Morgan”),
as Placement Agent to the Company, the undersigned will not, during the period commencing on the date hereof and ending 180 days
after such date, (1) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose
of, directly or indirectly, any Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock
(including without limitation, Common Stock or such other securities which may be deemed to be beneficially owned by the undersigned
in accordance with the rules and regulations of the Securities and Exchange Commission and securities which may be issued upon
exercise of a stock option or warrant) or (2) enter into any swap or other agreement that transfers, in whole or in part,
any of the economic consequences of ownership of the Common Stock or such other securities, whether any such transaction described
in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise or
(3) make any demand for or exercise any right with respect to the registration of any shares of Common Stock or any security
convertible into or exercisable or exchangeable for Common Stock, in each case other than (A) transfers of Common Stock as a bona
fide gift or gifts, (B) distributions of Common Stock to members or stockholders of the undersigned, (C) transfers by will
or intestacy to family members or trusts, partnerships or similar entities for the benefit of the undersigned or his or her family
members, and (D) transfers of Common Stock to the Company to pay any tax withholding obligations incurred by the undersigned in
connection with the exercise of options or upon vesting of restricted Common Stock issued pursuant to the Company’s 2012
Equity Plan, as amended to date and held by the undersigned; provided that in the case of any transfer or distribution pursuant
to clause (A), (B) or (C) each donee or distributee shall execute and deliver to J.P. Morgan, a lock-up letter in the form
of this paragraph; and provided, further, that in the case of any transfer or distribution pursuant to clause (A),
(B), (C), or (D), no filing by any party (donor, donee, transferor or transferee) under the Securities Exchange Act of 1934, as
amended, or other public announcement shall be required or shall be made voluntarily in connection with such transfer or distribution
(other than a filing on a Form 5 made after the expiration of the 180-day period referred to above).

 

    	 		 

    	 

    

 

In furtherance of the foregoing,
the Company, and any duly appointed transfer agent for the registration or transfer of the securities described herein, are hereby
authorized to decline to make any transfer of securities if such transfer would constitute a violation or breach of this Lock-Up
Agreement.

 

The undersigned hereby represents
and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement. All authority herein conferred
or agreed to be conferred and any obligations of the undersigned shall be binding upon the successors, assigns, heirs or personal
representatives of the undersigned.

 

The undersigned understands that,
if the Purchase Agreement does not become effective, or if the Purchase Agreement (other than the provisions thereof which survive
termination) shall terminate or be terminated prior to payment for and delivery of the Shares to be sold thereunder, the undersigned
shall be released from, all obligations under this Lock-Up Agreement. The undersigned understands that the Investors are entering
into the Purchase Agreement in reliance upon this Lock-Up Agreement.

 

This Lock-Up Agreement shall be governed
by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof.

 

	 	Very truly yours,	 
	 	 	 
	 	 	 
	 	 	 
	 	Name:	 

 

    	 		 

    	 

    

 

WAIVER AND LOCK-UP AGREEMENT

 

June 1, 2020

 

THE INVESTORS PARTY TO THAT CERTAIN

SECURITIES PURCHASE AGREEMENT

 

c/o J.P. Morgan Securities LLC

383 Madison Avenue

New York, NY 10179

 

		Re:	Humanigen, Inc. --- Private Placement of Common Stock

 

Ladies and Gentlemen:

 

The undersigned understands that
the investors named on Exhibit A thereto (the “Investors”) have entered into a Securities Purchase Agreement
of even date herewith (the “Purchase Agreement”) with Humanigen, Inc., a Delaware corporation (the “Company”),
providing for the sale by the Company to the Investors of up to $72 million of shares (the “Shares”) of the
Company’s common stock, $0.001 per share par value (the “Common Stock”). Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Purchase Agreement.

 

In consideration of the Investors’
respective agreements to purchase the Shares, and for other good and valuable consideration receipt of which is hereby acknowledged,
the undersigned hereby agree as follows:

 

1.       Waiver
and Consent to Granting of Registration Rights. Reference is made to that certain registration rights agreement dated as of
February 27, 2018 by and among the Company, Cheval Holdings, Ltd, Black Horse Capital Master Fund Ltd, and Nomis Bay LTD. (the
“Prior RRA”). The undersigned hereby consent to the execution by the Company of the Registration Rights Agreement
and agree not to make any demand for or exercise any right with respect to the registration of any shares of Common Stock or any
security convertible into or exercisable or exchangeable for Common Stock pursuant to the Prior RRA.

 

2.       Lock-up;
Affiliate Status. The undersigned hereby agree that, without the prior written consent of J.P. Morgan Securities LLC, in its
capacity as placement agent to the Company in connection with the Purchase Agreement (“J.P. Morgan”), the undersigned
will not, during the period commencing on the date hereof and ending 180 days after such date, (1) offer, pledge, announce
the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Common Stock or
any securities convertible into or exercisable or exchangeable for Common Stock (including without limitation, Common Stock or
such other securities which may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations
of the Securities and Exchange Commission and securities which may be issued upon exercise of a stock option or warrant) beneficially
owned by the undersigned and identified on the signature page hereto (“Covered Stock”), or (2) enter into
any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Covered Stock,
whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or such other
securities, in cash or otherwise, in each case other than (A) transfers of Common Stock as a bona fide gift or gifts, (B) distributions
of Common Stock to members or stockholders of the undersigned, or (C) transfers by will or intestacy to family members or trusts,
partnerships or similar entities for the benefit of the undersigned or his or her family members; provided that in the case
of any transfer or distribution pursuant to clause (A), (B) or (C) each donee or distributee shall execute and deliver to
J.P. Morgan a lock-up letter in the form of this paragraph; and provided, further, that in the case of any transfer
or distribution pursuant to clause (A), (B) or (C), no filing by any party (donor, donee, transferor or transferee) under
the Securities Exchange Act of 1934, as amended, or other public announcement shall be required or shall be made voluntarily in
connection with such transfer or distribution (other than a filing on a Form 5 made after the expiration of the 180-day period
referred to above).

 

    	 		 

    	 

    

 

The undersigned acknowledge that,
following closing under the Purchase Agreement, Black Horse will no longer own a majority of the outstanding shares of Common Stock.
Accordingly, as required by the Investors in the Purchase Agreement, please be advised that the Company intends to treat each of
the undersigned as “affiliates” within the meaning of Rule 405 under the Securities Act, including for Rule 144 purposes,
until such time as facts support a differing conclusion. The undersigned agree to advise any custodian, prime broker or other “street
holder” of Common Stock held for the account of the undersigned of this affiliate status.

 

In furtherance of the foregoing,
the Company, and any duly appointed transfer agent for the registration or transfer of the securities described herein, are hereby
authorized to decline to make any transfer of securities if such transfer would constitute a violation or breach of this Lock-Up
Agreement.

 

3.       Miscellaneous.
The undersigned hereby represent and warrant that the undersigned has full power and authority to enter into this Lock-Up Agreement.
All authority herein conferred or agreed to be conferred and any obligations of the undersigned shall be binding upon the successors,
assigns, heirs or personal representatives of the undersigned.

 

The undersigned understands that,
if the Purchase Agreement does not become effective, or if the Purchase Agreement (other than the provisions thereof which survive
termination) shall terminate or be terminated prior to payment for and delivery of the Shares to be sold thereunder, the undersigned
shall be released from, all obligations under this Lock-Up Agreement. The undersigned understands that the Investors are entering
into the Purchase Agreement in reliance upon this Lock-Up Agreement.

 

This Lock-Up Agreement shall be governed
by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof.

 

[Signature Page Follows]

 

    	 		 

    	 

    

 

	 	Very truly yours,
	 	 
	 	NOMIS BAY LTD
	 	Covered Stock: 29,854,524 shares
	 	 
	 	 
	 	By:	 
	 	Name:
	 	Its:
	 	 
	 	CHEVAL HOLDINGS, LTD
	 	Covered Stock: 49,636,917 shares
	 	 
	 	 
	 	By:	 
	 	Name: Dale Chappell
	 	Its: Director
	 	 
	 	BLACK HORSE CAPITAL MASTER FUND LTD
	 	Covered Stock: 13,997,832 shares
	 	 
	 	 
	 	By:	 
	 	Name: Dale Chappell
	 	Its: Director
	 	 
	 	BLACK HORSE CAPITAL LP
	 	By: Black Horse Capital Management LLC, its
	 	Managing General Member
	 	Covered Stock: 5,996,710 shares
	 	 
	 	 
	 	By:	 
	 	Name: Dale Chappell
	 	Its: Manager
	 	 
	 	 
	 	 	 
	 	Dale Chappell

 

 

 

 

 

 

[Signature Page to Waiver and Lock-Up Agreement]Exhibit

Exhibit 10.1

PROSPECT CAPITAL CORPORATION
Up to 50,000,000
Shares of Common Stock

EQUITY DISTRIBUTION AGREEMENT

June 12, 2020
RBC Capital Markets, LLC 
Brookfield Place
200 Vesey Street, 8th Floor
New York, New York 10281

Ladies and Gentlemen:
Prospect Capital Corporation, a corporation organized under the laws of Maryland (the “Company”), Prospect Capital Management L.P., a Delaware limited partnership registered as an investment adviser (the “Adviser”) and Prospect Administration LLC, a Delaware limited liability company (the “Administrator”) and RBC Capital Markets, LLC (“Agent”) confirm their agreement in the form of this Equity Distribution Agreement (this “Agreement”) as follows:

1.Issuance and Sale of Shares.  The Company proposes to issue and sell through the Agent, as sales agent up to50,000,000 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), on the terms set forth in Section 4 of this Agreement. The issuance and sale of Shares through the Agent will be effected pursuant to the Registration Statement (as defined below) filed by the Company with the Securities and Exchange Commission (the “Commission”) which Registration Statement became effective upon filing on February 13, 2020.
The Company, the Adviser and the Administrator have also entered into (i) an equity distribution agreement in substantially similar form to this Agreement (the “Barclays Agreement”) dated of even date herewith, with Barclays Capital Inc. (“Barclays”) and (ii) an equity distribution agreement in substantially similar form to this Agreement (the “KeyBanc Agreement”) dated of even date herewith, with KeyBanc Capital Markets Inc. (“KeyBanc”).  The aggregate number of Shares that may be sold collectively pursuant to this Agreement, the Barclays Agreement and the KeyBanc Agreement shall not exceed 50,000,000.
The Company has entered into an investment advisory and management agreement, dated as of July 24, 2004, as renewed on June 19, 2019 by the Board (the “Investment Advisory 

1
        

Agreement”), with the Adviser under the Advisers Act.  The Company has entered into an administration agreement, dated as of July 24, 2004, as renewed on June 19, 2019 by the Board (the “Administration Agreement”), with the Administrator.
The Company has filed, pursuant to the 1933 Act, with the Commission a registration statement on Form N-2 (File No. 333-236415), which became effective upon filing on February 13, 2020 and which registers the offer and sale of certain securities to be issued from time to time by the Company, including the Shares.  The Company filed a Form N-54A “Notification of Election to be Subject to Sections 55 through 65 of the 1940 Act Filed Pursuant to Section 54(a) of the 1940 Act” (File No. 814-00659) with the Commission on April 16, 2004, under the 1940 Act.
Except where the context otherwise requires, the registration statement, as amended when it became effective and any post-effective amendment thereto, including in each case all documents filed as a part thereof, all documents incorporated or deemed to be incorporated therein by reference pursuant to the Small Business Credit Availability Act (the “SBCAA”) or the rules of the Commission promulgated thereunder or otherwise, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 497 or Rule 424, as applicable, under the 1933 Act or deemed to be part of such registration statement pursuant to Rule 430B or Rule 430C under the 1933 Act or Rule 497 or Rule 424 under the 1933 Act is hereinafter referred to as the “Registration Statement.”  The prospectus, in the form it was included in the Registration Statement at the time it became effective, including all documents incorporated or deemed to be incorporated therein by reference pursuant to the SBCAA or the rules of the Commission promulgated thereunder or otherwise, is hereinafter referred to as the “Base Prospectus.”   The Company has prepared and will file with the Commission in accordance with Rule 497 or Rule 424, as applicable, under the 1933 Act, a prospectus supplement (the “Prospectus Supplement”) supplementing the Base Prospectus in connection with offers and sales of the Shares, including any amendment or supplement thereto and all documents incorporated or deemed to be incorporated therein by reference pursuant to the SBCAA or the rules of the Commission promulgated thereunder or otherwise.  The Base Prospectus and the most recent Prospectus Supplement, in each case filed with the Commission pursuant to Rule 497 or Rule 424, as applicable, under the 1933 Act at each Applicable Time and each Settlement Date are hereinafter referred to collectively as the “Prospectus.”
All references in this Agreement to financial statements and schedules and other information which is “contained,” “disclosed,” “included,” “filed as part of” or “stated” in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information which are or are deemed to be incorporated by reference in the Registration Statement or the Prospectus, as the case may be; and all references in this Agreement to amendments or supplements to the Registration Statement or the Prospectus shall be deemed to mean and include the filing of any document under the Exchange Act which is or is deemed to be incorporated by reference in the Registration Statement or the Prospectus, as the case may be.  All references in this Agreement to the Registration Statement, the Prospectus or any amendments or supplements to any of the foregoing, shall include any copy thereof filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”).

2
        
        

2.    Representations and Warranties of the Company.  The Company represents and warrants to and agrees with the Agent, and the Adviser and the Administrator, jointly and severally, represent and warrant to and agree with the Agent, as of the date hereof, as of each Applicable Time, and as of each Settlement Date (as such term is defined in Section 4 hereof), as follows:
(a)    Compliance with Registration Requirements.
(i)    The Company meets the requirements for use of Form N-2 under the 1933 Act.  Each of the Registration Statement and any post-effective amendment thereto is an “automatic shelf registration statement” as defined under Rule 405 of the 1933 Act as applied pursuant to the SBCAA or otherwise that has been filed with the Commission not earlier than three years prior to the date hereof; the Company has not received any notice pursuant to Rule 401(g)(2) of the 1933 Act objecting to use of the automatic shelf registration form. The Registration Statement is effective under the 1933 Act and no stop order suspending the effectiveness of the Registration Statement has been issued under the 1933 Act, and no proceedings for any such purpose, have been instituted or are pending or, to the knowledge of the Company, are contemplated by the Commission, and any request on the part of the Commission for additional information has been complied with.
(ii)    At the respective times the Registration Statement, and any post-effective amendment thereto, became effective, and at each Settlement Date, the Registration Statement, and all post-effective amendments thereto complied and will comply in all material respects with the requirements of the 1933 Act, and (excluding any post-effective amendment for the purpose of filing exhibits thereto) did not and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.  Neither the Prospectus nor any amendment or supplement thereto, as of its date, at the respective times the Prospectus or any such amendment or supplement was issued, and as of the date hereof, as of each Applicable Time and as of each Settlement Date, included or will include an untrue statement of a material fact or omitted or will omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  The representations and warranties in this subsection shall not include statements in or omissions from the Registration Statement or Prospectus made in reliance upon and in conformity with information furnished to the Company by or on behalf of the Agent for use in the Registration Statement or Prospectus it being understood and agreed that the only such information furnished to the Company in writing by the Agent consists of the name and address of the Agent set forth in the last paragraph under the heading “Plan of Distribution.”
(iii)    At the respective times the Prospectus was filed, as of the date hereof, as of each Applicable Time and as of each Settlement Date, it complied and will comply in all material respects with the 1933 Act, and if filed by electronic transmission pursuant to EDGAR (except as may be permitted by Regulation S-T under the 1933 Act), will be 

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substantially identical to the copy thereof delivered to the Agent for use in connection with the applicable offering.
(iv)    Each Additional Disclosure Item (as defined in Section 2(w) hereof), other than a Rule 482 Additional Disclosure Item (as defined in Section 2(w) hereof), does not and will not conflict with, and with respect to a Rule 482 Additional Disclosure Item, does not and will not materially conflict with, the information contained in the Registration Statement or the Prospectus and each such Additional Disclosure Item, as supplemented by and taken together with the Prospectus as of the Applicable Time and each Settlement Date, did not and will not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The representations and warranties in this subsection shall not include statements in or omissions from each Additional Disclosure Item made in reliance upon and in conformity with information furnished to the Company by or on behalf of the Agent for use therein.
(b)    Company Not Ineligible Issuer and is a Well-Known Seasoned Issuer. At the time of filing the Registration Statement and any post-effective amendment thereto, at the earliest time thereafter that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the 1933 Act) of the Shares and as of the date hereof, the Company was not and is not an “ineligible issuer,” and is a well-known seasoned issuer, in each case as defined under the 1933 Act, as applied pursuant to the SBCAA or otherwise, in each case at the times specified in the 1933 Act in connection with the offering of the Shares, without taking account of any determination by the Commission pursuant to Rule 405 under the 1933 Act that it is not necessary that the Company be considered an ineligible issuer.
(c)    Independent Accountant.  BDO USA, LLP, which has expressed its opinion with respect to certain of the financial statements (which term as used in this Agreement includes the related notes thereto) and supporting schedules filed with the Commission as a part of the Registration Statement and included in the Prospectus, is an independent registered public accounting firm as required by the 1933 Act and Exchange Act.
(d)    Preparation of the Financial Statements.  The financial statements (together with the related schedules and notes) filed with the Commission as a part of  the Registration Statement and included in the Prospectus present fairly the consolidated financial position of the Company as of and at the dates indicated and the results of its operations and cash flows for the periods specified.  Such financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) applied on a consistent basis throughout the periods involved, except as may be expressly stated in the related notes thereto.  The consolidated selected financial data included in the Prospectus presents fairly in all material respects the information shown therein and has been compiled on a basis consistent with the consolidated financial statements included or incorporated by reference in the Registration Statement.  All disclosures contained in the Registration Statement or the Prospectus regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply in all material respects with Regulation G under the Exchange Act and Item 10 of Regulation S-K of the 1933 Act, to the 

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extent applicable. There are no financial statements that are required to be included in the Registration Statement or the Prospectus that are not included as required.
(e)    Internal Control Over Financial Reporting.  The Company maintains a system of internal control over financial reporting sufficient to provide reasonable assurances that financial reporting is reliable and financial statements for external purposes are prepared in accordance with GAAP and includes policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with the authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
(f)    Disclosure Controls.  The Company has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 and 15d-15 under the Exchange Act); such disclosure controls and procedures are designed to ensure that material information relating to the Company, including material information pertaining to the Company’s operations and assets managed by the Adviser, is made known to the Company’s Chief Executive Officer and Chief Financial Officer by others within the Company and the Adviser, and such disclosure controls and procedures are effective to perform the functions for which they were established.
(g)    No Material Adverse Change.  Except as otherwise disclosed in the Prospectus, subsequent to the respective dates as of which information is given in the Prospectus:  (i) there has been no material adverse change, or any development that could reasonably be expected to result in a material adverse change, in the condition, financial or otherwise, or in the earnings, net asset value, prospects, business or operations, whether or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries, considered as one entity (any such change or effect, where the context so requires is called a “Material Adverse Change” or a “Material Adverse Effect”); (ii) the Company and its subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect, direct or contingent, not in the ordinary course of business or entered into any material transaction or agreement not in the ordinary course of business; and (iii) except for regular periodic dividends on the Common Stock, there has been no dividend or distribution of any kind declared, paid or made by the Company or, except for dividends paid to the Company or other subsidiaries, any of its subsidiaries on any class of capital stock, or, except for any repurchases under the Company’s share repurchase program which repurchases shall be made in compliance with applicable law,  repurchase or redemption by the Company or any of its subsidiaries of any class of capital stock.
(h)    Good Standing of the Company and its Subsidiaries.  The Company and each of its subsidiaries have been duly incorporated or organized, as the case may be, and are validly existing as a corporation or other entity, as the case may be, in good standing under the laws of the jurisdiction of their incorporation or organization, as applicable, and has the corporate or other power and authority to own, lease and operate their properties and to conduct their business as described in 

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the Prospectus and, in the case of the Company, to enter into and perform its obligations under this Agreement.  Each of the Company and its subsidiaries is duly qualified as a foreign corporation or entity, as applicable, to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except for such jurisdictions where the failure to so qualify or to be in good standing would not, individually or in the aggregate, result in a Material Adverse Change.  All of the issued and outstanding capital stock or equity interest of each subsidiary has been duly authorized and validly issued, is fully paid and non-assessable and is owned by the Company, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or claim.
(i)    Subsidiaries of the Company.  The Company does not own, directly or indirectly, any shares of stock or any other equity or long-term debt securities of any corporation or other entity other than (i) 100% of the equity interests in Prospect Capital Funding, LLC,  Prospect Small Business Lending LLC and Prospect Yield Corporation, LLC, (ii) all or substantially all of the equity interests in each of the Consolidated Holding Companies and (iii) those corporations or other entities described in the Prospectus under the caption “Portfolio Companies” (each a “Portfolio Company” and collectively, the “Portfolio Companies”).  Except as otherwise disclosed in the Prospectus, the Company does not control (as such term is defined in Section 2(a)(9) of the 1940 Act) any of the Portfolio Companies.  Except as otherwise disclosed in the Prospectus, the Company is not required, in accordance with Article 6 of Regulation S-X under the 1933 Act, to consolidate the financial statements of any corporation, association or other entity with the Company’s financial statements other than Prospect Capital Funding, LLC, Prospect Small Business Lending LLC, PSBL, LLC, Prospect Yield Corporation and each of the Consolidated Holding Companies.  “Consolidated  Holding Companies” shall mean CP Holdings of Delaware LLC, Credit Central Holdings of Delaware, LLC, Energy Solutions Holdings Inc., First Tower Holdings of Delaware LLC, MITY Holdings of Delaware Inc., Nationwide Acceptance Holdings LLC, NMMB Holdings, Inc., NPH Property Holdings, LLC, STI Holding, Inc., UTP Holdings Group Inc., Valley Electric Holdings I, Inc. and Valley Electric Holdings II, Inc.
(j)    Portfolio Companies.  The Company has duly authorized, executed and delivered any agreements pursuant to which it made the investments described in the Prospectus under the caption “Portfolio Companies” (each a “Portfolio Company Agreement”).  To the Company’s knowledge, except as otherwise disclosed in the Prospectus, each Portfolio Company is current, in all material respects, with all its obligations under the applicable Portfolio Company Agreements, no event of default (or a default which with the giving of notice or the passage of time would become an event of default) has occurred under such agreements, except to the extent that any such failure to be current in its obligations and any such default would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change.
(k)    BDC Election; Regulated Investment Company.  The Company has elected to be regulated as a business development company under the 1940 Act and has filed with the Commission, pursuant to Section 54(a) of the 1940 Act, a duly completed and executed Form N-54A (the “Company BDC Election”); the Company has not filed with the Commission any notice of withdrawal of the BDC Election pursuant to Section 54(c) of the 1940 Act; the Company’s BDC Election remains in full force and effect, and, to the Company’s knowledge, no order of suspension 

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or revocation of such election under the 1940 Act has been issued or proceedings therefore initiated or threatened by the Commission.  The provisions of the corporate charter and bylaws of the Company and the operations of the Company are in compliance in all material respects with the provisions and requirements of the 1940 Act applicable to business development companies and the rules and regulations of the Commission applicable to business development companies.
(l)    Authorization of Agreements. This Agreement has been duly authorized, executed and delivered by the Company; the Investment Advisory Agreement has been duly authorized, executed and delivered by the Company; and the Administration Agreement has been duly authorized, executed and delivered by the Company; the Investment Advisory Agreement and the Administration Agreement constitute valid and legally binding agreements of the Company, except as (i) the enforceability thereof may be limited by bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent transfers) or similar laws affecting creditors’ rights generally and (ii) rights to indemnification and contribution may be limited to equitable principles of general applicability or by state or federal securities laws or the policies underlying such law.
(m)    Authorization and Description of Common Stock.  The authorized, issued and outstanding capital stock of the Company is as set forth in the Prospectus as of the date thereof under the caption “Capitalization” and “Selected Condensed Financial Data.”  The Common Stock (including the Shares) conform in all material respects to the description thereof contained in the Prospectus.  All issued and outstanding shares of Common Stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable, and have been offered and sold or exchanged by the Company in compliance with all applicable laws (including, without limitation, federal and state securities laws) in all material respects.  None of the outstanding Common Stock of the Company was issued in violation of the preemptive or other similar rights of any security holder of the Company.  No shares of preferred stock of the Company have been designated, offered, sold or issued and none of such shares of preferred stock are currently outstanding.  The description of the Company’s stock option, stock bonus and other stock plans or arrangements, if any, and the options or other rights granted thereunder, set forth in the Prospectus accurately and fairly presents the information required to be shown with respect to such plans, arrangements, options and rights.  The Shares to be offered and sold by the Company through the Agent have been duly authorized for issuance and sale pursuant to this Agreement and, when issued and delivered by the Company pursuant to this Agreement against payment of the consideration set forth herein, will be validly issued, fully paid and non-assessable and the issuance of the Shares will not be subject to any preemptive or  similar rights
(n)    Disclosure. The statements set forth in the Prospectus under the caption “Description of the Capital Stock,” insofar as they purport to constitute a summary of the terms of the Shares and under the captions “Material U.S. Federal Income Tax Considerations,” and “Certain Relationships and Transactions,” insofar as they purport to describe the provisions of the laws and documents referred to therein, are accurate in all material respects.
(o)    Non-Contravention of Existing Instruments.  Neither the Company nor any subsidiary is in violation of or default under (i) its charter, articles or certificate of incorporation, by-laws, or similar organizational documents; (ii) any indenture, mortgage, loan or credit agreement, 

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note, contract, franchise, lease or other instrument, including any Portfolio Company Agreement, the Investment Advisory Agreement and the Administration Agreement, to which the Company or any of its subsidiaries is a party or bound or to which any of the property or assets of the Company or any of its subsidiaries is subject; or (iii) any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or such subsidiary or any of its properties, as applicable, except for such violations or defaults as would not, individually or in the aggregate, have a Material Adverse Effect.  
(p)    No Further Authorizations or Approvals Required. The Company’s execution, delivery and performance of this Agreement and consummation of the transactions contemplated hereby and by the Prospectus (i) have been duly authorized by all necessary corporate action, have been effected in accordance with the 1940 Act and will not result in any violation of the provisions of the charter, articles or certificate of incorporation or by-laws of the Company or similar organizational documents of any subsidiary, (ii) will not conflict with or constitute a breach of, or default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to, or require the consent of any other party to, any existing instrument, except for such conflicts, breaches, defaults, liens, charges or encumbrances as would not, individually or in the aggregate, result in a Material Adverse Effect, (iii) will not result in any material respect in any violation of any law, administrative regulation or administrative or court decree applicable to the Company or any subsidiary and (iv) will not affect the validity of the Shares or the legal authority of the Company to comply with this Agreement.  No consent, approval, authorization or other order of, or registration or filing with, any court or other governmental or regulatory authority or agency, is required for the Company’s execution, delivery and performance of this Agreement or consummation of the transactions contemplated hereby and by the Prospectus, except such as have already been obtained or made under the 1933 Act and the 1940 Act and such as may be required under any applicable state securities or blue sky laws or from the Financial Industry Regulatory Authority, Inc. (“FINRA”).
(q)    Intellectual Property Rights.  The Company and its subsidiaries own or possess sufficient trademarks, trade names, patent rights, copyrights, domain names, licenses, approvals, trade secrets and other similar rights (collectively, “Intellectual Property Rights”) reasonably necessary to conduct their businesses as described in the Prospectus; and the expected expiration of any of such Intellectual Property Rights would not, individually or in the aggregate, result in a Material Adverse Effect.  Neither the Company nor any of its subsidiaries has received any notice of infringement or conflict with asserted Intellectual Property Rights of others, which infringement or conflict, if the subject of an unfavorable decision, would, individually or in the aggregate, result in a Material Adverse Effect.  To the Company’s knowledge, none of the technology employed by the Company has been obtained or is being used by the Company in violation of any contractual obligation binding on the Company or any of its officers, directors or employees or otherwise in violation of the rights of any persons.
(r)    Compliance with Environmental Law.  To the knowledge of the Company, the Advisor and the Administrator, the Company, its subsidiaries and each controlled Portfolio Company (i) are in compliance with any and all applicable foreign, federal, state and local laws and regulations 

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relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”); (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except where such noncompliance with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, individually or in the aggregate, have a Material Adverse Effect.
(s)    All Necessary Permits, etc.  The Company and each subsidiary possess such valid and current certificates, authorizations or permits issued by the appropriate state, federal or foreign regulatory agencies or bodies necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not, individually or in the aggregate, result in a Material Adverse Effect and the Company has not received any notice of proceedings relating to the revocation or modification of, or non-compliance with, any such certificate, authorization or permit which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, could result in a Material Adverse Effect.
(t)    Investment Advisory Agreement.  (i) The terms of the Investment Advisory Agreement, including compensation terms, comply in all material respects with all applicable provisions of the 1940 Act and the Advisers Act and (ii) the approvals by the Board of Directors and the stockholders of the Company of the Investment Advisory Agreement have been made in accordance with the requirements of Section 15 of the 1940 Act applicable to companies that have elected to be regulated as business development companies under the 1940 Act.
(u)    Absence of Proceedings.  There is no action, suit, proceeding, inquiry or investigation before or brought by any court or governmental agency or body, domestic or foreign, now pending, or, to the knowledge of the Company, threatened, against the Company, which is required to be disclosed in the Registration Statement or the Prospectus (other than as disclosed therein), or which might, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, or which might reasonably be expected to materially and adversely affect the consummation of the transactions contemplated in this Agreement or the performance by the Company of its obligations hereunder.  The aggregate of all pending legal or governmental proceedings to which the Company is a party or of which any of its property or assets is the subject which are not described in the Registration Statement or the Prospectus, including ordinary routine litigation incidental to the business, could not reasonably be expected to result in a Material Adverse Effect.
(v)    Accuracy of Exhibits.  Notwithstanding this Agreement, the Barclays Agreement or the KeyBanc Agreement, there are no contracts or documents that are required to be described in the Registration Statement or the Prospectus or to be filed as exhibits thereto by the 1933 Act or the 1940 Act that have not been so described and filed as required.  
(w)    Additional Disclosure Items. The Company represents and agrees that, without the prior consent of the Agent, (i) it will not distribute any offering material other than the Registration Statement, the Prospectus and any Additional Disclosure Items and (ii) it has not made and will not 

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make any offer relating to the Shares that would constitute a “free writing prospectus” as defined in Rule 405 under the 1933 Act as applied pursuant to the SBCAA or otherwise and which the parties agree, for the purposes of this Agreement, includes (x) any “advertisement” as defined in Rule 482 under the 1933 Act and treated by the Company as subject to Rule 482 under the 1933 Act (a “Rule 482 Additional Disclosure Item”) and (y) any sales literature, materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the offering of the Shares that is not a Rule 482 Additional Disclosure Item, including any road show or investor presentations (including slides and scripts relating thereto) made to investors by or on behalf of the Company (the materials and information referred to in this Section 2(w) are herein referred to as “Additional Disclosure Items”); any Additional Disclosure Item the use of which has been consented to by the Representatives is listed on Schedule II hereto. All Additional Disclosure Items complied and will comply in all material respects with (i) the applicable requirements of the 1933 Act and the 1940 Act, including without limitation all applicable filing (where required), legending and record keeping requirements, and (ii) the rules and interpretations of FINRA.
(x)    Subchapter M.  During the past fiscal year, the Company has been organized and operated, and is currently organized and operates, in compliance in all material respects with the requirements to be taxed as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (“Subchapter M of the Code” and the “Code,” respectively).  The Company intends to direct the investment of the proceeds of the offering described in the Registration Statement and the Prospectus in such a manner as to comply with the requirements of Subchapter M of the Code.
(y)    Tax Law Compliance.  The Company and its subsidiaries have filed all necessary federal, state and foreign income and franchise tax returns and have paid all taxes required to be paid by any of them and, if due and payable, any related or similar assessment, fine or penalty levied against any of them, except for any taxes, assessments or penalties as may be contested in good faith and by appropriate proceedings.  The Company has made adequate charges, accruals and reserves in the applicable financial statements referred to in the Prospectus in respect of all federal, state and foreign income and franchise taxes for all periods as to which the tax liability of the Company or any of its subsidiaries has not been finally determined.  The Company is not aware of any tax deficiency that has been or might be asserted or threatened against the Company or any subsidiary that could result, individually or in the aggregate, in a Material Adverse Effect.
(z)    Distribution of Offering Materials.  The Company has not distributed, or authorized the distribution of, and will not distribute, or authorize the distribution of, any offering material in connection with the offering and sale of the Shares other than the Registration Statement, the Prospectus or any Additional Disclosure Items the use of which have been consented to by the Agent.
(aa)    Registration Rights.  Except as otherwise described in the Prospectus or the Registration Statement, there are no persons with registration rights or other similar rights to have any securities registered pursuant to the Registration Statement or otherwise registered by the Company under the 1933 Act.

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(bb)    Nasdaq Global Select Market.  The Shares are registered pursuant to Section 12(b) or 12(g) of the Exchange Act and will be approved for quotation on the Nasdaq Global Select Market (“NASDAQ”) upon notice of issuance, and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the NASDAQ, nor has the Company received any notification that the Commission or FINRA is contemplating terminating such registration or listing.  The Company has continued to satisfy, in all material respects, all requirements for listing the Common Stock, including the Shares, for trading on the NASDAQ.
(cc)    No Price Stabilization or Manipulation.  Neither the Company, the Adviser nor the Administrator has taken nor will it take, directly or indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Common Stock (including the Shares), provided, however, the Agent acknowledges the Company may from time to time repurchase shares of Common Stock pursuant to its share repurchase program, which repurchases shall be made in compliance with applicable law.
(dd)    Compliance with the Exchange Act and the 1940 Act; Reports Filed.  The documents filed and hereafter filed by the Company with the Commission under the Exchange Act and the 1940 Act, including those documents incorporated by reference or deemed to be incorporated by reference in the Registration Statement and the Prospectus pursuant to the SBCAA or the rules of the Commission promulgated thereunder or otherwise, complied, and will comply, in each case as of their respective filing dates, in all material respects, with the requirements of the Exchange Act and the 1940 Act, as applicable, and, as of their respective filing dates, as of the date hereof, each Applicable Time, and as of each Settlement Date, did not and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  The Company has filed all reports required to be filed pursuant to, the 1940 Act and the Exchange Act, except where the failure to file such reports would not have a Material Adverse Effect. 
(ee)    Interested Persons.  Except as disclosed in the Registration Statement or the Prospectus (i) no person is serving or acting as an officer, director or investment adviser of the Company, except in accordance with the provisions of the 1940 Act and the Advisers Act, and (ii) to the knowledge of the Company, no director of the Company is an “interested person” (as defined in the 1940 Act) of the Company or an “affiliated person” (as defined in the 1940 Act) of the Agent except as otherwise disclosed in the Registration Statement or the Prospectus. 
(ff)    No Unlawful Contributions or Other Payments.  Neither the Company nor any of its subsidiaries nor, to the Company’s knowledge, any employee or agent of the Company or any subsidiary, has made any contribution or other payment to any official of, or candidate for, any federal, state or foreign office in violation of any law or of the character required to be disclosed in the Prospectus.
(gg)    No Outstanding Loans or Other Indebtedness.  There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or 

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guarantees or indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any of the members of any of them, except as disclosed in the Prospectus.
(hh)    Compliance with Laws.  The Company has not been advised, and has no knowledge, that it and each of its subsidiaries are not conducting business in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business, except where failure to be so in compliance would not result, individually or in the aggregate, in a Material Adverse Effect.
(ii)    Compliance with the Sarbanes-Oxley Act of 2002.  The Company has complied in all material respects with Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 and has made the evaluations of the Company’s disclosure controls and procedures required under Rule 13a-15 under the Exchange Act.
(jj)    FINRA Matters.  All of the information provided to the Agent or to counsel for the Agent by the Company and, to the knowledge of the Company, its officers and directors and the holders of any securities of the Company in connection with letters, filings or other supplemental information provided to FINRA pursuant to FINRA Corporate Financing Rule 5110 is true, complete and correct in all material respects.
(kk)    Foreign Corrupt Practices Act. Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate or other person acting on behalf of the Company or any of its subsidiaries is aware of or has taken any action, directly or indirectly, that has resulted or would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (collectively, the “FCPA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA.
(ll)    Money Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the applicable money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar applicable rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened
(mm)    OFAC. Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate or person acting on behalf of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company 

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will not directly or indirectly use any of the proceeds received by the Company from the sale of Shares contemplated by this Agreement, or lend, contribute or otherwise make available any such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.
(nn)    Actively Traded Securities. The Shares are “actively traded securities” excepted from the requirements of Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of such rule.
Any certificate signed by any officer of the Company or the Adviser and delivered to the Agent or to counsel for the Agent shall be deemed a representation and warranty by the Company or the Adviser (as applicable), to the Agent as to the matters covered thereby.
3.    Representations and Warranties of the Adviser and the Administrator. The Adviser and the Administrator, jointly and severally, represent and warrant to the Agent as of the date hereof, as of each Applicable Time and as of each Settlement Date, and agree with the Agent as follows:
(a)    No Material Adverse Change in Business.  Since the respective dates as of which information is given in the Registration Statement and the Prospectus, except as otherwise stated therein, there has been no material adverse change in the financial condition, or in the earnings, business affairs, operations or regulatory status of the Adviser or the Administrator or any of their respective subsidiaries, whether or not arising in the ordinary course of business, that would reasonably be expected to result in a Material Adverse Effect, or would otherwise reasonably be expected to prevent the Adviser or the Administrator from carrying out its obligations under the Investment Advisory Agreement (an “Adviser Material Adverse Change” or an “Adviser Material Adverse Effect,” where the context so requires) or the Administration Agreement (an “Administrator Material Adverse Change” or an “Administrator Material Adverse Effect,” where the context so requires)
(b)    Good Standing.  Each of the Adviser and the Administrator (and each of their subsidiaries) has been duly organized and is validly existing and in good standing under the laws of the State of Delaware, with full power and authority to own, lease and operate its properties and to conduct its business as described in the Prospectus and to enter into and perform its obligations under this Agreement; the Adviser has full power and authority to execute and deliver and perform its obligations under the Investment Advisory Agreement; the Administrator has full power and authority to execute and deliver the Administration Agreement; and each of the Adviser and the Administrator is duly qualified to do business as a foreign entity and is in good standing in each jurisdiction where the ownership or leasing of its properties or the conduct of its business requires such qualification, except where the failure to qualify or be in good standing would not otherwise reasonably be expected to result in an Adviser Material Adverse Effect or an Administrator Material Adverse Effect, as applicable.
(c)    Registration Under Advisers Act.  The Adviser is duly registered with the Commission as an investment adviser under the Advisers Act and is not prohibited by the Advisers Act or the 1940 Act from acting under the Investment Advisory Agreement for the Company as contemplated by the Prospectus.  There does not exist any proceeding or, to the Adviser’s knowledge, 

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any facts or circumstances the existence of which could lead to any proceeding, which might adversely affect the registration of the Adviser with the Commission.
(d)    Absence of Proceedings.  There is no action, suit or proceeding or, to the knowledge of the Adviser or the Administrator, inquiry or investigation before or brought by any court or governmental agency or body, domestic or foreign, now pending, or, to the knowledge of the Adviser or the Administrator, threatened, against or affecting either the Adviser or the Administrator, which is required to be disclosed in the Registration Statement or the Prospectus (other than as disclosed therein), or which would reasonably be expected to result in an Adviser Material Adverse Effect or Administrator Material Adverse Effect, or which would reasonably be expected to materially and adversely affect the consummation of the transactions contemplated in this Agreement, the Investment Advisory Agreement or the Administration Agreement; the aggregate of all pending legal or governmental proceedings to which the Adviser or the Administrator is a party or of which any of its respective property or assets is the subject which are not described in the Registration Statement and the Prospectus, including ordinary routine litigation incidental to their business, would not reasonably be expected to result in an Adviser Material Adverse Effect or Administrator Material Adverse Effect.
(e)    Absence of Defaults and Conflicts.  Neither the Adviser nor the Administrator is in violation of its certificate of formation or certificate of limited partnership, as applicable, or limited liability company operating agreement or limited partnership operating agreement, as applicable, or in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Adviser or the Administrator is a party or by which it or any of them may be bound, or to which any of the property or assets of the Adviser or the Administrator is subject (collectively, the “Instruments”), or in violation of any law, statute, rule, regulation, judgment, order or decree except for such violations or defaults that would not, individually or in the aggregate, reasonably be expected to result in an Adviser Material Adverse Effect or an Administrator Material Adverse Effect, as applicable; and the execution, delivery and performance of this Agreement, the Investment Advisory Agreement and the Administration Agreement and the consummation of the transactions contemplated herein and therein and in the Registration Statement and the Prospectus (including the issuance and sale of the Shares and the use of the proceeds from the sale of the Shares as described in the Prospectus under the caption “Use of Proceeds”) and compliance by the Adviser with its obligations hereunder and under the Investment Advisory Agreement and by the Administrator with its obligations hereunder and under the Administration Agreement do not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Adviser or the Administrator pursuant to any Instrument, as applicable, except for such violations or defaults that would not, individually or in the aggregate, reasonably be expected to result in an Adviser Material Adverse Effect or an Administrator Material Adverse Effect, as applicable, nor will such action result in any violation of the provisions of the limited partnership or limited liability company operating agreement, as applicable, of the Adviser or Administrator, respectively; nor will such action result in any violation of any applicable law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic or foreign, having 

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jurisdiction over the Adviser, the Administrator, or any of their respective assets, properties or operations except for such violations that would not, individually or in the aggregate, reasonably be expected to result in an Adviser Material Adverse Effect or an Administrator Material Adverse Effect, as applicable.
(f)    Authorization of Agreements.  This Agreement has been duly authorized, executed and delivered by the Adviser and the Administrator; the Investment Advisory Agreement has been duly authorized, executed and delivered by the Adviser; and the Administration Agreement has been duly authorized, executed and delivered by the Administrator; the Investment Advisory Agreement and the Administration Agreement constitute valid and legally binding agreements of the Adviser and the Administrator, respectively, except as (i) the enforceability thereof may be limited by bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent transfers) or similar laws affecting creditors’ rights generally and (ii) rights to indemnification and contribution may be limited to equitable principles of general applicability or by state or federal securities laws or the policies underlying such law.
(g)    Absence of Further Requirements.  No filing with, or authorization, approval, consent, license, order, registration, qualification or decree of, any court or governmental authority or agency is necessary or required for the performance by the Adviser or the Administrator of its obligations hereunder, in connection with the offering, issuance or sale of the Shares hereunder or the consummation of the transactions contemplated by this Agreement, the Investment Advisory Agreement, the Administration Agreement, the Registration Statement or the Prospectus (including the use of the proceeds from the sale of the Shares as described in the Registration Statements and the Prospectus under the caption “Use of Proceeds”), except (i) such as have been already obtained under the 1933 Act and the 1940 Act, (ii) such as may be required under state securities laws and (iii) the filing of the Notification of Election under the 1940 Act, which has been effected. 
(h)    Description of the Adviser and the Administrator.  The description of the Adviser and the Administrator contained in the Prospectus does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.
(i)    Possession of Licenses and Permits.  Each of the Adviser and the Administrator possesses such valid and current certificates, authorizations or permits issued by the appropriate federal, state, local or foreign regulatory agencies or bodies necessary to conduct the business now operated by it (collectively, “Governmental Licenses”), except where the failure so to possess would not reasonably be expected to, individually or in the aggregate, result in an Adviser Material Adverse Effect or an Administrator Material Adverse Effect, as applicable; each of the Adviser and Administrator is in compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to comply would not, individually or in the aggregate, result in an Adviser Material Adverse Effect or an Administrator Material Adverse Effect, as applicable; all of the Governmental Licenses are valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, individually or in the aggregate, result in an Adviser Material Adverse Effect or an Administrator Material Adverse Effect, as applicable; and neither the Adviser nor the Administrator 

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has received any notice of proceedings relating to the revocation or modification of any such Governmental Licenses which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to result in an Adviser Material Adverse Effect or an Administrator Material Adverse Effect, as applicable.
(j)    Employment Status.  The Adviser is not aware that (i) any executive, key employee or significant group of employees of the Company, if any, the Adviser or the Administrator, as applicable, plans to terminate employment with the Company, the Adviser or the Administrator or (ii) any such executive or key employee is subject to any non-compete, nondisclosure, confidentiality, employment, consulting or similar agreement that would be violated by the present or proposed business activities of the Company or the Adviser except where such termination or violation would not reasonably be expected to have an Adviser Material Adverse Effect.
4.    Sale and Delivery of Shares. 
(a)    Subject to the terms and conditions set forth herein, the Company agrees to issue and sell through the Agent acting as sales agent and the Agent agrees to use its commercially reasonable efforts to sell as sales agent for the Company, the Shares.  The Agent hereby covenants and agrees not to make any sales of the Shares on behalf of the Company other than (A) (1) by means of ordinary brokers’ transactions between members of NASDAQ, any other national securities exchange or facility thereof, a trading facility of a national securities association, or an alternative trading system that qualify for delivery of a Prospectus to NASDAQ in accordance with Rule 153 under the 1933 Act or (2) directly on or through an electronic communication network, a “dark pool” or any similar market venue or directly to customers of Agent (such transactions are hereinafter referred to as “At the Market Offerings”) and (B) such other sales of the Shares on behalf of the Company in its capacity as agent of the Company as shall be agreed by the Company and the Agent.  The Agent covenants and agrees that it shall not engage in a sale of Shares on the Company's behalf that would constitute a "distribution" within the meaning of Rule 100 of Regulation M under the Exchange Act without the Company's prior written consent.  Subject to the previous sentence, the Company acknowledges and agrees that in the event a sale of Shares on behalf of the Company would constitute a “distribution” within the meaning of Rule 100 of Regulation M under the Exchange Act or the Agent reasonably believes it may be deemed an “underwriter” under the 1933 Act in a transaction that is not an At the Market Offering and the Company consents to such sale, the Company will provide to the Agent, at the Agent’s request and upon reasonable advance notice to the Company, on or prior to the Settlement Date (as defined below) for such transaction, the opinions of counsel, accountants’ letters and officers’ certificates pursuant to Section 6 hereof, each dated the Settlement Date, and such other documents and information as the Agent shall reasonably request.  Solely with respect to such sales that would constitute a "distribution," the Agent shall use commercially reasonable efforts to assist the Company in obtaining performance of its obligations by each purchaser whose offer to purchase Shares has been solicited by the Agent and accepted by the Company.  
Each time that the Company wishes to issue and sell Shares hereunder (each, a “Placement”), it will notify the Agent by email notice (or other method mutually agreed to in writing by the parties) containing the parameters in accordance with which it desires Shares to be sold, which shall at a 

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minimum include the number of Shares to be offered, the time period during which sales are requested to be made, any limitation on the number of Shares that may be sold in any one day and any minimum price below which sales may not be made and the compensation payable to the Agent (a “Placement Notice”), a form of which containing such minimum sales parameters necessary is attached hereto as Schedule I. The Placement Notice shall originate from any of the individuals from the Company set forth on Schedule II (with a copy to each of the other individuals from the Company listed on such schedule), and shall be addressed to each of the individuals from the Agent set forth on Schedule II, as such Schedule II may be amended from time to time. If the Agent wishes to accept such proposed terms included in the Placement Notice (which it may decline to do so for any reason in its sole discretion) or, following discussion with the Company, wishes to propose modified terms, the Agent will, prior to 4:30 p.m. (New York City time) or, if later, within three hours after receipt of the Placement Notice, on the same Business Day on which such Placement Notice is delivered to the Agent, issue to the Company a notice by email (or other method mutually agreed to in writing by the parties) addressed to all of the individuals from the Company and the Agent set forth on Schedule II) accepting such terms (the "Agent Acceptance") or setting forth the terms that the Agent is willing to accept. Where the terms provided in the Placement Notice are proposed to be modified as provided for in the immediately preceding sentence, such terms will not be binding on the Company or the Agent until the Company delivers to the Agent an acceptance by email (or other method mutually agreed to in writing by the parties) of all of the terms of such Placement Notice, as proposed to be modified (the “Company Acceptance” and, whichever of it or the Agent Acceptance becomes effective, the "Acceptance"), which email or other communication shall be addressed to all of the individuals from the Company and the Agent set forth on Schedule II and must be delivered not later than 6:00 p.m. (New York City time) or, if later, within three hours after receipt of the modified terms proposed by the Agent, on the same Business Day.  The Placement Notice shall be effective upon receipt by the Company of the Agent Acceptance or, if modified as provided above, upon receipt by the Agent of the Company Acceptance, as the case may be, unless and until (i) the entire amount of the Shares covered by the Acceptance have been sold, (ii) in accordance with the notice requirements set forth in Section 4(b), the Company suspends or terminates the Placement Notice, (iii) the Company issues a subsequent Placement Notice with parameters superseding those on the earlier dated Placement Notice, or (iv) the Agreement has been terminated under the provisions of Section 9.   It is expressly acknowledged and agreed that neither the Company nor the Agent will have any obligation whatsoever with respect to a Placement unless and until the Company delivers a Placement Notice to the Agent and there occurs with respect thereto either (i) an Agent Acceptance or (ii) a Company Acceptance pursuant to the terms set forth above, and then only upon the terms specified in the relevant Acceptance and herein. In the event of a conflict between the terms of this Agreement and the terms of an Acceptance, the terms of the Acceptance will control.  Subject to the terms and conditions hereof, upon the existence of an Acceptance, the Agent shall use its commercially reasonable efforts to sell as sales agent Shares designated in the Acceptance up to the amount specified, and otherwise in accordance with the terms of such Acceptance. The Company and the Agent each acknowledge and agree that (A) there can be no assurance that the Agent will be successful in selling Shares and (B) the Agent will incur no liability or obligation to the Company or any other person or entity if it does not sell Shares for any reason other than a failure by the Agent to use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations to sell such Shares as required by this Agreement.

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(b)    Notwithstanding the foregoing, the Company shall not authorize the issuance and sale of, and the Agent as sales agent shall not be obligated to use its commercially reasonable efforts to sell, any Shares (i) at a price lower than the minimum price therefor authorized from time to time, or (ii) in a number in excess of the number of Shares authorized from time to time to be issued and sold under this Agreement, in each case, by the Board, or a duly authorized committee thereof, and as set forth in the applicable Acceptance.  In addition, the Company or the Agent may, upon notice to the other party hereto by telephone (confirmed promptly by telecopy or email to all of the individuals of the other party set forth on Schedule II, which confirmation will be promptly acknowledged by the receiving party) suspend or refuse to undertake any sale of Shares designated in such Acceptance for any reason and at any time; provided, however, that such suspension or termination shall not affect or impair the parties’ respective obligations with respect to Shares sold hereunder prior to the giving of such notice. Each of the parties hereto agrees that no such notice shall be effective against the other unless it originates from an individual named on Schedule II and is made to the individuals of the other party named on Schedule II hereto in accordance with this Section 4, as such Schedule may be amended from time to time.
(c)    The gross sales price of any Shares sold pursuant to this Agreement by the Agent acting as sales agent of the Company shall be the market price prevailing at the time of sale for shares of the Company’s Common Stock sold by the Agent on NASDAQ or otherwise, at prices relating to prevailing market prices or at negotiated prices.  The compensation payable to the Agent for sales of Shares with respect to which the Agent acts as sales agent shall be equal to up to 2% of the gross sales price of the Shares for amounts of Shares sold pursuant to this Agreement, with the exact amount of such compensation to be mutually agreed upon by the Company and the Agent from time to time and as set forth in a Placement Notice.  The remaining proceeds, after further deduction for any transaction fees imposed by any governmental, regulatory or self-regulatory organization in respect of such sales, shall constitute the net proceeds to the Company for such Shares (the “Net Proceeds”).  The Agent shall notify the Company as promptly as practicable if any deduction referenced in the preceding sentence will be required. 
(d)    The Agent shall provide written confirmation to the Company following the close of trading on NASDAQ each day in which Shares are sold under this Agreement setting forth the number of Shares sold on such day, the aggregate gross sales proceeds of the Shares, the Net Proceeds to the Company and the compensation payable by the Company to the Agent with respect to such sales.  For the avoidance of doubt, such written confirmation will be provided to the Company no later than the opening of trading on the immediately following trading day on NASDAQ.
(e)    Under no circumstances shall the aggregate offering price or number, as the case may be, of Shares sold pursuant to this Agreement exceed the aggregate offering price or number, as the case may be, of Shares of Common Stock (i) set forth in Section 1 of this Agreement, (ii)  available for issuance under the Prospectus and the then currently effective Registration Statement or (iii) authorized from time to time to be issued and sold under this Agreement, the Barclays Agreement and the KeyBanc Agreement by the Board, or a duly authorized committee thereof, and notified to the Agent in writing. In addition, under no circumstances shall any Shares with respect to which the Agent acts as sales agent be sold at a price lower than the minimum price therefor 

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authorized from time to time by the Company’s Board, or a duly authorized committee thereof, and notified to the Agent in writing as set forth in the applicable Placement Notice.  If either party has reason to believe that the exemptive provisions set forth in Rule 101(c)(1) of Regulation M under the Exchange Act are not satisfied with respect to the Shares, it shall promptly notify the other party and sales of the Shares under this Agreement shall be suspended until that or other exemptive provisions have been satisfied in the judgment of each party.  The Agent shall calculate and provide in writing to the Company, on a monthly basis, the average daily trading volume (as defined in Rule 100 of Regulation M under the Exchange Act) of the Common Stock.  
(f)    Settlement for sales of Shares pursuant to this Section 4 and made in accordance with the terms of the applicable Acceptance will occur on the second Business Day that is also a trading day for NASDAQ (other than a day on which NASDAQ is scheduled to close prior to its regular weekday closing time) following the trade date on which such sales are made, unless another date shall be agreed to by the Company and the Agent (each such day, a “Settlement Date”).  On each Settlement Date, the Shares sold through the Agent for settlement on such date shall be delivered by the Company or its transfer agent to the Agent against payment of the Net Proceeds from the sale of such Shares.  Settlement for all Shares shall be effected by book-entry delivery of Shares to the Agent’s account at The Depository Trust Company against payments by the Agent of the Net Proceeds from the sale of such Shares in same day funds delivered to an account designated by the Company.  If the Company shall default on its obligation to deliver Shares on any Settlement Date, the Company shall (i) indemnify and hold the Agent harmless against any loss, claim or damage arising from or as a result of such default by the Company and (ii) pay the Agent any commission to which it would otherwise be entitled absent such default. 
(g)    At each Applicable Time, each Settlement Date and each Representation Date (as such term is defined in Section 6(p) herein), the Company, the Adviser and the Administrator shall be deemed to have affirmed each representation and warranty contained in this Agreement.  The obligation of the Agent to use its commercially reasonable efforts to sell the Shares on behalf of the Company as sales agent shall be subject to the continuing accuracy of the representations and warranties of the Company herein, to the performance by the Company of its obligations hereunder and to the continuing satisfaction of the additional conditions specified in Section 4 of this Agreement.
(h)    The Company agrees that any offer to sell, any solicitation of an offer to buy, or any sales of Common Stock pursuant to this Agreement shall only be effected by or through only one of Agent, Barclays or KeyBanc on any single given day as determined by the Company, but in no event by more than one of them, and the Company shall in no event request that more than one of Agent, Barclays or KeyBanc sell shares of Common Stock on the same day; provided, however, that (i) the foregoing limitation shall not apply to sales solely to employees of the Company, the Adviser, the Administrator or their respective affiliates, or to a trustee or other person acquiring such securities for the accounts of such persons and (ii) such limitation shall not apply on any day during which no sales are made pursuant to this Agreement.
(i)    Except as may be mutually agreed by the Company and the Agent the Company and the Agent agree that no sales of Shares shall take place, and the Company shall not request the 

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sale of any Shares that would be sold, and the Agent shall not be obligated to sell, (i) with respect to the Company’s quarterly filings on Form 10-Q, during any period commencing upon the 35th day following the end of each fiscal quarter and (A) if the Company incorporates by reference into the Registration Statement and Prospectus its periodic reports filed with the Commission, ending on the first Business Day immediately following the date on which the Company files with the Commission its Form 10-Q for the Company’s most recent quarterly period or (B) if the Company does not incorporate by reference into the Registration Statement and Prospectus its periodic reports filed with the Commission, ending on the date a Prospectus Supplement under Rule 497 or Rule 424, as applicable, relating to the Shares that includes updated financial information as of the end of the Company’s most recent quarterly period (in each case, a “10-Q Update”) and (ii) with respect to the Company’s annual report filings on Form 10-K, during any period commencing upon the 55th day following the end of the Company’s fiscal year and (A) if the Company incorporates by reference into the Registration Statement and Prospectus its periodic reports filed with the Commission, ending on the first Business Day immediately following the date on which the Company files with the Commission its Form 10-K for Company’s most recent fiscal year or (B) if the Company does not incorporate by reference into the Registration Statement and Prospectus its periodic reports filed with the Commission, ending on the date on which the Company files with the Commission a Prospectus Supplement under Rule 497 or Rule 424, as applicable, relating to the Shares that includes updated audited financial information as of the end of the Company’s most recent fiscal year (in each case, a “10-K Update”) (each of a 10-Q Update and/or a 10-K Update shall also be referred to herein as a “Quarterly Update”).  To the extent the Company releases its earnings for its most recent quarterly period or fiscal year, as applicable (an “Earnings Release”) before it files with the Commission its quarterly report on Form 10-Q for such quarterly period or annual report on Form 10-K for such fiscal year, as applicable, then the Agent and the Company agree that no sales of Shares shall take place for the period beginning on the date of the Earnings Release and ending on the date of the applicable Quarterly Update. Notwithstanding the foregoing, without the prior written consent of each of the Company and the Agent, no sales of Shares shall take place, and the Company shall not request the sale of any Shares that would be sold, and the Agent shall not be obligated to sell, during any period in which the Company is in possession of material non-public information.
5.    Expenses.  The Company agrees to pay the reasonable costs and expenses relating to the following matters: (i) the preparation, printing or reproduction and filing with the Commission of the Registration Statement (including financial statements and exhibits thereto), and the Prospectus, and each amendment or supplement to any of them; (ii) the printing (or reproduction) and delivery (including postage, air freight charges and charges for counting and packaging) of such copies of the Registration Statement and the Prospectus, and all amendments or supplements to any of them, as may, in each case, be reasonably requested for use in connection with the offering and sale of the Shares; (iii) the preparation, printing, authentication, issuance and delivery of certificates for the Shares, including any stamp or transfer taxes in connection with the original issuance and sale of the Shares; (iv) the printing (or reproduction) and delivery of this Agreement, any blue sky memorandum and all closing documents printed (or reproduced) and delivered in connection with the offering of the Shares; (v) the registration of the Shares under the Exchange Act and the listing of the Shares on the NASDAQ; (vi) any registration or qualification of the Shares for offer and sale under the securities or blue sky laws of the several states (including filing fees and the reasonable fees and expenses of counsel for the Agent relating to such registration and 

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qualification); (vii) any filings required to be made with  FINRA (including filing fees and the reasonable fees and expenses of counsel for the Agent relating to such filings); (viii) the fees and expenses of the Company’s accountants and the fees and expenses of counsel (including local and special counsel) for the Company; (ix) the reasonable fees and expenses of the Agent and one counsel for the Agent, Barclays and KeyBanc (provided that the reasonable fees and expenses of such counsel shall not exceed an aggregate of (i) $50,000 in connection with the preparation of this Agreement and the filing of the initial Prospectus covering the Shares and (ii) $15,000 on a quarterly basis thereafter (“Agent Counsel Fees”) in connection with this Agreement, the Barclays Agreement and the KeyBanc Agreement, collectively, without the prior written approval of the Company and any amounts exceeding such Agent Counsel Fees in any quarter shall be paid on an equal basis by Agent, Barclays, and KeyBanc with Agent having responsibility for one-third of the amount of any such excess) (x) all other costs and expenses incident to the performance by the Company of its obligations hereunder. For the avoidance of doubt, the Company may refuse to approve fees and expenses of the Agent (or its counsel) if the Company determines, in its reasonable discretion, that such fees and expenses of the Agent (or its counsel) are not reasonable, in which case the Agent shall bear such fees and/or expenses.
6.    Agreements of the Company.  The Company agrees with the Agent that:
(a)    The Company, subject to Section 6(a)(ii), will comply with the requirements of Rule 497 or Rule 424, as applicable, and will notify the Agent as soon as practicable, and, in the cases of Sections 6(a)(ii)-(iv), confirm the notice in writing, (i) when, at any time when a prospectus relating to the Shares is required to be delivered under the 1933 Act (whether physically or through compliance with Rule 153, Rule 172 or other similar rule as applied pursuant to the SBCAA or otherwise), any post-effective amendment to the Registration Statement shall become effective, or any supplement to the Prospectus or any amended Prospectus shall have been filed in relation to the Shares, (ii) of the receipt of any comments from the Commission relating to the Registration Statement, (iii) of any request by the Commission for any amendment to the Registration Statement or any amendment or supplement to the Prospectus or for additional information in each case in relation to the Shares, (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any order preventing or suspending the use of the Prospectus, or of the suspension of the qualification of the Shares for offering or sale in any jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes, (v) of the filing of any document pursuant to the Exchange Act  which will be incorporated by reference, or deemed to be incorporated by reference pursuant to the SBCAA or the rules of the Commission promulgated thereunder or otherwise, into the Registration Statement (other than documents that will be available via EDGAR) and (vi) of receipt by the Company of any notice of objection of the Commission to the use of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2).  The Company will promptly effect the filings necessary pursuant to Rule 497 or Rule 424, as applicable, and will take such steps as it deems necessary to ascertain promptly whether the form of prospectus transmitted for filing under Rule 497 or Rule 424, as applicable, was received for filing by the Commission and, in the event that it was not, it will promptly file such prospectus.  The Company will make every reasonable effort to prevent the issuance of any stop order suspending the effectiveness of the Registration Statement pursuant to 

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Section 8(d) of the 1933 Act, and, if any such stop order is issued, to obtain the lifting thereof at the earliest possible moment.
(b)    The Company will give the Agent notice of its intention to file or prepare any amendment to the Registration Statement, or any supplement or revision to either the Base Prospectus included in the Registration Statement at the time a post-effective amendment thereto most recently became effective or to the Prospectus Supplement, and will furnish the Agent with copies of any such documents a reasonable amount of time prior to such proposed filing or use, as the case may be, and will, in good faith, consider any reasonable comments of the Agent or Agent’s counsel.
(c)    If, at any time when a prospectus relating to the Shares is required to be delivered under the 1933 Act (whether physically or through compliance with Rule 153, Rule 172 or other similar rule as applied pursuant to the SBCAA or otherwise), any event occurs as a result of which the Prospectus as then supplemented would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein in the light of the circumstances under which they were made at such time not misleading, or if it shall be necessary to amend the Registration Statement, file a new registration statement or supplement the Prospectus to comply with the 1933 Act or the Exchange Act, in each case in relation to the Shares including in connection with use or delivery of the Prospectus, the Company promptly will (i) notify the Agent of any such event so that any use of the Prospectus may cease or be suspended until it is amended or supplemented or it otherwise complies with the 1933 Act or the Exchange Act, (ii) prepare and file with the Commission, subject to the second sentence of paragraph (a) of this Section 6, an amendment or supplement or new registration statement which will correct such statement or omission or effect such compliance and (iii) supply any supplemented Prospectus to the Agent in such quantities as the Agent may reasonably request.
(d)    If, at any time when a prospectus relating to the Shares is required to be delivered under the 1933 Act (whether physically or through compliance with Rule 153, Rule 172 or other similar rule as applied pursuant to the SBCAA or otherwise), following the issuance of an Additional Disclosure Item during the term of this Agreement there occurred or occurs an event or development as a result of which such Additional Disclosure Item (other than a Rule 482 Additional Disclosure Item) conflicted or would conflict, or with respect to a Rule 482 Additional Disclosure Item, materially conflicted or would materially conflict, with the information then contained in the Registration Statement or the Prospectus or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading, the Company will promptly (i) notify the Agent and (ii) either (1) amend or supplement such Additional Disclosure Item to eliminate or correct such conflict, untrue statement or omission or (2) file a report with the Commission under the Exchange Act that corrects such untrue statement or omission and promptly notify the Agent that such Additional Disclosure Item shall no longer be used. Notwithstanding the foregoing, the Company shall not be required to comply with the provisions of this subsection (d) during any period from the time the Agent has suspended the sale of Shares pursuant to a direction from the Company and to the time the Company shall determine that the sale of Shares should be resumed.

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(e)    As soon as practicable after furnishing with the Commission, the Company will make generally available to its security holders and to the Agent an earnings statement or statements of the Company and its subsidiaries which will satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158.
(f)    The Company will furnish to the Agent, without charge, so long as delivery of a prospectus by the Agent or dealer may be required by the 1933 Act (whether physically or through compliance with Rule 153, Rule 172 or other similar rule as applied pursuant to the SBCAA or otherwise), as many copies of the Prospectus and any supplement thereto as the Agent may reasonably request.  Except as otherwise described herein, the Company will pay the expenses of printing or other production of all documents relating to the offering.
(g)    The Company will arrange, if necessary, for the qualification of the Shares for sale under the laws of such states and jurisdictions as the Agent may designate and the Company agrees to and will maintain such qualifications in effect so long as required to complete the distribution and sale of the Shares; provided that in no event shall the Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified or to take any action that would subject it to service of process in suits, other than those arising out of the offering or sale of the Shares, in any jurisdiction where it is not now so subject.
(h)    The Company will use the Net Proceeds in the manner specified in the Prospectus under “Use of Proceeds.”
(i)    The Company, during the period when a prospectus relating to the Shares is required to be delivered under the 1933 Act (whether physically or through compliance with Rule 153, Rule 172 or other similar rule as applied pursuant to the SBCAA or otherwise), will file all documents required to be filed with the Commission pursuant to the 1940 Act and the Exchange Act within the time periods required by the 1940 Act and the Exchange Act and the rules and regulations of the Commission thereunder, respectively.
(j)    The Company agrees to pay the required Commission filing fees relating to the Shares within the time period required by Rule 456(b)(1) under the 1933 Act without regard to the proviso therein and otherwise in accordance with Rule 456(b) and Rule 457(r) under the 1933 Act, each as applied pursuant to the SBCAA or otherwise
(k)    The Company will use its best efforts to maintain its qualification as a regulated investment company under Subchapter M of the Code.
(l)    The Company will not take, directly or indirectly, any action designed to or that would constitute or that might reasonably be expected to cause or result in, under the Exchange Act or otherwise, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Securities, except as may be allowed by law.
(m)    In connection with the offering and sale of the Shares, the Company will file with NASDAQ all documents and notices, and make all certifications, required of companies that have securities that are listed on NASDAQ and will maintain such listing.

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(n)    The Company will cooperate with any reasonable due diligence review conducted by the Agent (or its counsel or other representatives), including, without limitation, providing information and making available documents and senior corporate officers, as the Agent may reasonably request; provided, however, that the Company shall be required to make available documents and senior corporate officers only (i) at the Company’s principal offices and (ii) during the Company’s ordinary business hours.  The parties acknowledge that the due diligence review contemplated by this Section 6(n) will include, without limitation, during the term of this Agreement a quarterly diligence conference to occur on or before each Quarterly Update whereby the Company will make its senior corporate officers available to address diligence inquiries of the Agent and will provide such additional information and documents as the Agent may reasonably request.
(o)    The Company agrees that on such dates as the 1933 Act shall require, the Company will file a Prospectus Supplement with the Commission pursuant to Rule 497 or Rule 424, as applicable, under the 1933 Act, or otherwise include in a filed annual report on Form 10-K or quarterly report on Form 10-Q, which Prospectus Supplement, Form 10-K or Form 10-Q, as applicable, will set forth, within the relevant quarterly or other period, the amount of Shares sold through the Agent, the Net Proceeds to the Company and the compensation payable by the Company to the Agent with respect to such Shares. To the extent the information set forth in this Section 6(o) is filed in a Prospectus Supplement, the Company agrees to deliver such number of copies of each such Prospectus Supplement to each exchange or market on which such sales were effected as may be required by the rules or regulations of such exchange or market.
(p)    Upon the commencement of the offering of Shares under this Agreement and each time that (i) the Company files a Prospectus relating to the Shares or amends or supplements the Registration Statement or the Prospectus relating to the Shares by means of a post−effective amendment, sticker, or supplement (other than (A) by an amendment or supplement that is filed in accordance with Section 6(o) of this Agreement or an amendment solely to add exhibits to the Registration Statement, (B) in connection with the filing of any Current Reports on Form 8-K (other than any Current Reports on Form 8-K which contain capsule financial information, financial statements, supporting schedules or other financial data) or the incorporation of other documents by reference into the Registration Statement or Prospectus except as set forth in clauses (ii) and (iii) below, or (C) by a prospectus supplement relating solely to the offering of other securities, including, without limitation, other shares of Common Stock and any debt securities of the Company), (ii) the Company files an annual report on Form 10-K under the Exchange Act, or an amendment thereto (a “10-K Filing”), (iii) the Company files a quarterly report on a Form 10-Q under the Exchange Act (a “10-Q Filing”) or (iv) the Agent may reasonably request, (each such event shall be deemed a “Representation Date”), the Company and the Adviser shall each furnish the Agent with a certificate, in the form attached hereto as Exhibit 6(p) The requirement to provide a certificate under this Section 6(p) shall be waived for any Representation Date occurring during a fiscal quarter during which the Company is not selling or does not intend to sell Shares prior to the next occurring Representation Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Shares following a Representation Date when the Company relied on such waiver and did not provide the Agent with a certificate under this Section 6(p), then before the Agent resumes sales of any Shares, the Company shall provide the Agent with a certificate, in the form attached hereto as Exhibit 6(p).

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(q)    Upon the commencement of the offering of Shares under this Agreement and on or promptly after each Representation Date thereafter, the Company shall cause to be furnished to the Agent (i) a written opinion and negative assurance letter of Skadden, Arps, Slate, Meagher & Flom LLP, counsel for the Company, or of such other law firm who may be counsel for the Company from time to time, (the “Company Counsel”) and (ii) a written opinion of the General Counsel of the Company (“General Counsel”), each dated the commencement of the offering of Shares hereunder or the Representation Date, as applicable, in substantially the forms attached hereto as Exhibit 6(q)(1) and Exhibit 6(q)(3) with respect to Company Counsel and Exhibit 6(q)(2) with respect to General Counsel; provided, however, to the extent a Representation Date is triggered by a 10-Q Filing, the Company shall cause to be furnished to the Agent on or promptly after such 10-Q Filing (i) a negative assurance letter of Company Counsel and (ii) a written opinion of General Counsel, in substantially the forms attached hereto as Exhibit 6(q)(3) and Exhibit 6(q)(4), respectively, but modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented. Notwithstanding the foregoing, the requirement to provide such opinions shall be waived for any Representation Date occurring during a fiscal quarter during which the Company is not selling or does not intend to sell Shares prior to the next occurring Representation Date. In the event the Company subsequently decides to sell Shares following a Representation Date when the Company relied on such waiver and did not provide the Agent with an opinion from Company Counsel under this Section 6(q), then before the Agent resumes sales of any Shares, the Company shall cause to be furnished to the Agent the opinions of Company Counsel and General Counsel contemplated in this Section 6(q). Following the date hereof, in lieu of the opinions of Company Counsel and General Counsel contemplated by this Section 6(q), such counsel may furnish the Agent with a letter to the effect that the Agent may rely on a prior opinion delivered under this Section 6(q) to the same extent as if it were dated the date of such letter (except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented at such Representation Date).
(r)    Upon the commencement of the offering of Shares under this Agreement and on or promptly after each Representation Date thereafter, the Company shall cause to be furnished to the Agent a written opinion of Venable LLP, Maryland counsel for the Company (“Maryland Counsel”), dated the commencement of the offering of Shares hereunder or on or promptly after the Representation Date, as applicable, in substantially the form attached hereto as Exhibit 6(r); provided, however, to the extent a Representation Date is triggered by a 10-Q Filing,  the opinion of Maryland Counsel contemplated by this Section 6(r) shall not be required. Notwithstanding the foregoing, the requirement to provide such opinion of Maryland Counsel shall be waived for any Representation Date occurring during a fiscal quarter during which the Company is not selling or does not intend to sell Shares prior to the next occurring Representation Date. In the event the Company subsequently decides to sell Shares following a Representation Date when the Company relied on such waiver and did not provide the Agent with an opinion from Maryland Counsel under this Section 6(r), then before the Agent resumes sales of any Shares, the Company shall cause to be furnished to the Agent the opinion of Maryland Counsel contemplated in this Section 6(r). Following the date hereof, in lieu of the opinion of Maryland Counsel contemplated by this Section 6(r), such counsel may furnish the Agent with a letter to the effect that the Agent may rely on a prior opinion delivered under this Section 6(r) to the same extent as if it were dated the date of such letter 

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(except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented at such Representation Date).
(s)    Upon the commencement of the offering of Shares under this Agreement and on or promptly after each Representation Date thereafter, the Company shall cause its independent accountants to furnish the Agent letters, dated the commencement of the offering of Shares hereunder or the date of each Representation Date, as applicable, in form and substance reasonably satisfactory to the Agent, (i) confirming that they are independent public accountants within the meaning of the 1933 Act and are in compliance with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the Commission, (ii) stating, as of such date, the conclusions and findings of such firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection with registered public offerings (the “Comfort Letter”).  The requirement to provide a Comfort Letter under this Section 6(s) shall be waived for any Representation Date occurring during a fiscal quarter during which the Company is not selling or does not intend to sell Shares prior to the next occurring Representation Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Shares following a Representation Date when the Company relied on such waiver and did not provide the Agent with a Comfort Letter under this Section 6(s), then before the Agent resumes sales of any Shares, the Company shall provide the Agent with a Comfort Letter. 
(t)    Upon the commencement of the offering of Shares under this Agreement and on or promptly after each Representation Date thereafter, the Company and the Adviser shall each furnish the Agent with a certificate of its Secretary, in form and substance reasonably satisfactory to the Agent. The requirement to provide certificates under this Section 6(t) shall be waived for any Representation Date occurring during a fiscal quarter during which the Company is not selling or does not intend to sell Shares prior to the next occurring Representation Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Shares following a Representation Date when the Company relied on such waiver and did not provide the Agent with the certificates under this Section 6(t), then before the Agent resumes sales of any Shares, the Company shall provide the Agent with such certificates.
(u)    Upon the commencement of the offering of Shares under this Agreement and on or promptly after each Representation Date thereafter, Troutman Sanders LLP, counsel for the Agent shall furnish to the Agent a written opinion (“Agent Counsel”), dated the commencement of the offering of Shares hereunder, or the Representation Date, as applicable, in form and substance reasonably satisfactory to the Agent, but modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided, however, that in lieu of such opinion, counsel may furnish the Agent with a letter to the effect that the Agent may rely on a prior opinion delivered under this Section 6(u) to the same extent as if it were dated the date of such letter (except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented at such Representation Date). The Company agrees to furnish to Agent Counsel such documents as they may reasonably request for the purpose of enabling them to deliver their opinion under this Section 6(u).  Notwithstanding the foregoing, the requirement to provide such opinion shall be waived for any Representation Date occurring during a fiscal quarter during which the Company is not selling or does not intend to sell 

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Shares prior to the next occurring Representation Date. In the event the Company subsequently decides to sell Shares following a Representation Date when the Company relied on such waiver and Agent Counsel did not provide the Agent with its opinion under this Section 6(u), then before the Agent resumes sales of any Shares, Agent Counsel shall furnish to the Agent its opinion contemplated in this Section 6(u).
(v)    At each Representation Date, subject to Section 6(n), the Company will conduct a due diligence session, in form and substance reasonably satisfactory to the Agent, which shall include representatives of the management and the accountants of the Company. The requirement to conduct due diligence sessions under this Section 6(v) shall be waived for any Representation Date occurring during a fiscal quarter during which the Company is not selling or does not intend to sell Shares prior to the next occurring Representation Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Shares following a Representation Date when the Company relied on such waiver and did not conduct a due diligence session under this Section (v), then before the Agent resumes sales of any Shares, the Company shall conduct a due diligence session as contemplated in this Section 6(v).
(w)    Except by means of the Prospectus, any Additional Disclosure Item consented to by the Agent, or as otherwise agreed by the parties, the Company (including its agents and representatives, other than the Agent in its capacity as such) will not make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405 under the 1933 Act and including without limitation any Additional Disclosure Item) that constitutes an offer to sell or solicitation of an offer to buy Shares hereunder.
(x)    The Company will comply with all requirements imposed upon it by the 1933 Act, the 1940 Act and the Exchange Act as from time to time in force, so far as necessary to permit the continuance of sales of, or dealings in, the Shares as contemplated by the provisions hereof and the Prospectus.
(y)    The Company will not, without (i) giving the Agent at least two Business Days’ prior written notice specifying the nature of the proposed sale and the date of such proposed sale and (ii) the Agent suspending activity under this program for such period of time as requested by the Company as part of such prior written notice or as deemed appropriate by the Agent in light of the proposed sale, (A) pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of, lend or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or securities convertible into or exchangeable or exercisable for or repayable with Common Stock and involving a number of shares of Common Stock in excess of 5% of the then outstanding shares or file any registration statement under the 1933 Act with respect to any of the foregoing (other than a shelf registration statement under Rule 415 under the 1933 Act, a registration statement on Form S-8 or Form N-14 or a post-effective amendment to the Registration Statement) or (B) enter into any swap or other agreement or any transaction that transfers in whole or in part, directly or indirectly, any of the economic consequence of ownership of the Common Stock, or any securities convertible into or exchangeable or exercisable for or repayable with Common Stock and involving a number of shares of Common Stock in excess of 5% of the then outstanding shares, whether any such swap or 

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transaction described in clause (A) or (B) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The foregoing sentence shall not apply to (v) any preferred stock offered or sold by the Company, including any preferred stock convertible into Common Stock, (w) the Shares to be offered and sold through the Agent pursuant to this Agreement, through Barclays pursuant to the Barclays Agreement or through KeyBanc pursuant to the KeyBanc Agreement, (x) securities issued under Form N-14, (y) Common Stock issuable pursuant to the Company’s dividend reinvestment plan as it may be amended or replaced from time to time and (z) equity incentive awards approved by the Board or the compensation committee thereof or the issuance of Common Stock upon exercise thereof.
(z)    Other than the Barclays Agreement and the KeyBanc Agreement, during the term of this Agreement, the Company will not enter into another agreement for an At the Market Offering program with any other party, other than the Agent.
(aa)    The Company acknowledges and agrees that the Agent has informed the Company that the Agent may, to the extent permitted under the 1933 Act and the Exchange Act, purchase and sell Shares for its own account at the same time as Shares are being sold by the Company pursuant to this Agreement.
7.    Conditions to the Agent’s Obligations.  The obligations of the Agent hereunder shall be subject to the continuing accuracy and completeness of the representations and warranties made by the Company, the Adviser and the Administrator herein, to the due performance by the Company of its obligations hereunder, and to the continuing satisfaction (or waiver by the Agent in its sole discretion) of the following additional conditions:
(a)    The Registration Statement is effective and shall be available for the sale of all Shares to be issued and sold hereunder. 
(b)    None of the following events shall have occurred and be continuing:  (i) receipt by the Company of any request for additional information from the Commission or any other federal or state governmental authority during the period of effectiveness of the Registration Statement, the response to which would require any amendments or supplements to the Registration Statement or the Prospectus relating to or affecting the Shares; (ii) the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of or preventing the use of, the Registration Statement or the Prospectus or the initiation of any proceedings for that purpose, including any notice objecting to the use of the Registration Statement or order pursuant to Section 8(e) of the 1940 Act having been issued and proceedings therefor initiated, or to the knowledge of the Company, threatened by the Commission; (iii) receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; (iv) the occurrence of any event that makes any statement made in the Registration Statement, the Prospectus or any Additional Disclosure Item untrue in any material respect or that requires the making of any changes in the Registration Statement, Prospectus or any Additional Disclosure Item so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and, that in the case of the Prospectus or 

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any Additional Disclosure Item, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (v) the Company’s reasonable determination that a post-effective amendment to the Registration Statement would be appropriate.
(c)    There shall not have been any change, or any development involving a prospective change, in or affecting the condition (financial or otherwise), earnings, business or properties of the Company and its subsidiaries taken as a whole, whether or not arising from transactions in the ordinary course of business, except as set forth in or contemplated in the Prospectus (after giving effect to any amendment or supplement thereto) the effect of which, is, in the reasonable judgment of the Agent, so material and adverse as to make it impractical or inadvisable to proceed with the offering or delivery of the Shares as contemplated by the Registration Statement (after giving effect to any amendment thereof) and the Prospectus Supplement (after giving effect to any amendment or supplement thereto).
(d)    The Agent shall have received the opinions of Company Counsel and General Counsel required to be delivered pursuant Section 6(q) on or before the date on which such delivery of such opinions is required pursuant to Section 6(q).
(e)    The Agent shall have received the opinion of Maryland Counsel required to be delivered pursuant Section 6(r) on or before the date on which such delivery of such opinion is required pursuant to Section 6(r).
(f)    The Agent shall have received the Comfort Letter required to be delivered pursuant Section 6(s) on or before the date on which such delivery of such letter is required pursuant to Section 6(s).
(g)    The Agent shall have received the certificates required to be delivered pursuant to Section 6(p) and Section 6(t) on or before the date on which delivery of such certificate is required pursuant to Section 6(p) and Section 6(t), respectively.
(h)    The Agent shall have received the opinion of Agent Counsel required to be delivered pursuant Section 6(u) on or before the date on which such delivery of such opinion is required pursuant to Section 6(u).
(i)     Trading in the Common Stock shall not have been suspended on NASDAQ and the Shares shall have been approved for listing on NASDAQ, subject only to notice of issuance.
(j)    All filings with the Commission required by Rule 497 or Rule 424, as applicable, under the 1933 Act to have been filed prior to the sale of Shares hereunder shall have been made within the applicable time period prescribed for such filing by Rule 497 or Rule 424, as applicable.
(k)    To the extent applicable, FINRA shall have confirmed that it has no objection with respect to the fairness and reasonableness of the placement terms and arrangements set forth herein.

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8.    Indemnification and Contribution.  (a)  The Company agrees to indemnify and hold harmless the Agent, the directors, officers, employees and agents of the Agent and each person who controls the Agent within the meaning of either the 1933 Act, the Exchange Act or the 1940 Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the 1933 Act, the Exchange Act, the 1940 Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, the Prospectus, any Additional Disclosure Items or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Agent specifically for inclusion therein. This indemnity agreement will be in addition to any liability which the Company may otherwise have.  Any indemnification by the Company pursuant to this Agreement shall be subject to the requirements and limitations of Section 17(a) of the 1940 Act.
(a)    The Agent agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who signs the Registration Statement, and each person who controls the Company within the meaning of either the 1933 Act, the Exchange Act or the 1940 Act, to the same extent as the foregoing indemnity from the Company to the Agent, but only with reference to written information relating to the Agent furnished to the Company by or on behalf of the Agent specifically for inclusion in the documents referred to in the foregoing indemnity which information is set forth in Section 2(a)(ii). The Agent agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any loss, claim, damage, liability or action to which they are entitled to indemnification pursuant to this Section 8(b). This indemnity agreement will be in addition to any liability which the Agent may otherwise have.  
(b)    Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above.  The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or 

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parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified party.  Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party.  An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding and does not include any statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.
(c)    In the event that the indemnity provided in paragraph (a), (b) or (c) of this Section 8 is unavailable to or insufficient to hold harmless an indemnified party for any reason, the Company and the Agent severally agree to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending the same) (collectively “Losses”) to which the Company and the Agent may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Agent on the other from the offering of the Shares; provided, however, that in no case shall the Agent be responsible for any amount in excess of the total commissions received by the Agent pursuant to this Agreement. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the Company and the Agent shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Agent on the other in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations.  Benefits received by the Company shall be deemed to be equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Agent shall be deemed to be equal to the total commissions received by the Agent pursuant to this Agreement.  Relative fault shall be determined by reference to, among other things, whether any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information provided by the Company on the one hand or the Agent on the other, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  The Company and the Agent agree that it would not be just and equitable if contribution were determined by pro rata allocation or any other method of allocation which does not take account of the equitable considerations referred to above.  

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Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 8, each person who controls the Agent within the meaning of either the 1933 Act or the Exchange Act and each director, officer, employee and agent of the Agent shall have the same rights to contribution as the Agent, and each person who controls the Company within the meaning of either the 1933 Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).
9.    Termination.
(a)    The Company shall have the right, by giving notice as hereinafter specified to terminate this Agreement in its sole discretion at any time.  Any such termination shall be without liability of any party to any other party except that the provisions of Section 5, Section 8, Section 10, Section 13, Section 15 and Section 16 hereof shall remain in full force and effect notwithstanding such termination.
(b)    The Agent shall have the right, by giving notice as hereinafter specified to terminate this Agreement in its sole discretion at any time.  Any such termination shall be without liability of any party to any other party except that the provisions of Section 5, Section 8, Section 10, Section 13, Section 15 and Section 16 hereof shall remain in full force and effect notwithstanding such termination.
(c)    This Agreement shall remain in full force and effect unless terminated pursuant to Sections 9(a) or (b) above or otherwise by mutual agreement of the parties; provided, however, that any such termination by mutual agreement shall in all cases be deemed to provide that Section 5, Section 8, Section 10, Section 13, Section 15 and Section 16 shall remain in full force and effect.
(d)    Except as otherwise provided in Sections 9(a) and 9(b), any termination of this Agreement shall be effective on the date specified in such notice of termination; provided, however, that such termination shall not be effective until the close of business on the date of receipt of such notice by the Agent or the Company, as the case may be.  If such termination shall occur on or after a trade date and prior to the Settlement Date for any sale of Shares, such Shares shall settle in accordance with the provisions of this Agreement.
10.    Representations and Indemnities to Survive.  The respective agreements, representations, warranties, indemnities and other statements of the Company or its officers and of the Agent set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of the Agent or the Company or any of the officers, directors, employees, agents or controlling persons referred to in Section 8 hereof, and will survive delivery of and payment for the Shares.  The provisions of Section 5, Section 8, Section 10, Section 13, Section 15 and Section 16 shall survive the termination or cancellation of this Agreement.

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11.    Notices.  All communications hereunder will be in writing and effective only on receipt, and, if sent to the Agent, will be mailed, delivered or telefaxed to RBC Capital Markets, LLC, 200 Vesey Street, New York, New York 10281, fax no (212) 428-6260, Attention: Syndicate Director, and Troutman Sanders LLP, 1001 Haxall Point, Richmond, Virginia 23218, fax no. (804) 698-5185, Attention: Michael T. Damgard (e-mail: teddy.damgard@troutman.com); or, if sent to the Company or the Adviser, will be mailed, delivered or telefaxed to it at (212) 448-9652 and confirmed to it at Prospect Capital Corporation, 10 East 40th Street, New York, New York 10016, attention Sean Dailey (e-mail: sdailey@prospectcap.com).  
12.    Successors.  This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the officers, directors, employees, agents and controlling persons referred to in Section 8 hereof, and no other person will have any right or obligation hereunder.
13.    No Fiduciary Duty.  The Company hereby acknowledges that (a) the offering and sale of the Shares pursuant to this Agreement is an arm’s-length commercial transaction between the Company, on the one hand, and the Agent and any affiliate through which it may be acting, on the other, (b) the Agent has not assumed an advisory or fiduciary responsibility in favor of the Company with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether the Agent has advised or is currently advising the Company on related or other matters), and (c) the Company’s engagement of the Agent in connection with the offering and the process leading up to the offering is as independent contractors and not in any other capacity. Furthermore, the Company agrees that it is solely responsible for making its own judgments in connection with the offering (irrespective of whether the Agent has advised or is currently advising the Company on related or other matters).  The Company agrees that it will not claim that the Agent has rendered advisory services of any nature or respect, or owe an agency, fiduciary or similar duty to the Company, in connection with such transaction or the process leading thereto.
14.    Integration.  This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company and the Agent with respect to the subject matter hereof.
15.    Applicable Law.  This Agreement will be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed within the State of New York.
16.    Recognition of the U.S. Special Resolution Regimes.
(a)    In the event that the Agent is a Covered Entity and becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from the Agent of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

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(b)    In the event that the Agent is a Covered Entity or a BHC Act Affiliate of the Agent becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against the Agent are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.
(c)    For purposes of this Section 17, (i) the term “BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k); (ii) the term “Covered Entity” means any of the following: (1) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (2) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (3) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b); (iii) the term “Default Rights” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable; and (iv) the term “U.S Special Resolution Regime” means each of (1) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (2) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
17.    Waiver of Jury Trial.  The Company hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
18.    Counterparts.  This Agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement.
19.    Headings.  The section headings used herein are for convenience only and shall not affect the construction hereof
20.    Partial Unenforceability.  The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof.  If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.
21.    Adjustments for Stock Splits.  The parties acknowledge and agree that all share related numbers contained in this Agreement shall be adjusted to take into account any stock split, stock dividend or similar event effected with respect to the Shares.
22.    No Joint Venture. The Company, the Adviser, the Administrator and the Agent expressly acknowledge, understand and agree that the Agent, Barclays and KeyBanc are not, and shall not be deemed for any purpose, to be acting as an agent, joint venture or partner of one another and that neither the Agent, Barclays nor KeyBanc assumes responsibility or liability, express or implied, for any actions or omissions of, or the performance of services by, Barclays, KeyBanc or the Agent, respectively, in connection with the offering of the Shares pursuant to this Agreement, the Barclays Agreement or the KeyBanc Agreement, or otherwise.  The obligations of the Agent hereunder, of 

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Barclays under the Barclays Agreement and of KeyBanc under the KeyBanc Agreement shall be several and not joint.
23.    Definitions.  The terms that follow, when used in this Agreement, shall have the meanings indicated.
“1933 Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.
“1940 Act” shall mean the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder.
“Advisers Act” shall mean the Investment Advisers Act of 1940, as amended, and the rules and regulations thereunder.
“Applicable Time” shall mean the time of each sale of the applicable Shares pursuant to this Agreement.
“Board” shall mean the Board of Directors of the Company.
“Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close in New York City.
“Commission” shall mean the Securities and Exchange Commission.
“Effective Date” shall mean each date and time that the Registration Statement, any post-effective amendment or amendments thereto and any Rule 462(b) Registration Statement became or becomes effective.
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder.
“Rule 158”, “Rule 153”, “Rule 164”, “Rule 172”, “Rule 405”, “Rule 415”, “Rule 424”, “Rule 430B”, “Rule 430C”, “Rule 456”, “Rule 457”, “Rule 462”, “Rule 482”, and “Rule 497” refer to such rule under the 1933 Act.
[Remainder of Page Intentionally Blank]

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Exhibit 10.1

If the foregoing is in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent a binding agreement among the Company, the Adviser, the Administrator and the Agent.
Very truly yours,
Prospect Capital Corporation 
By:                        
Name: 
Title:
Prospect Capital Management L.P.
By:                        
Name: 
Title:
Prospect Administration LLC
By:                        
Name: 
Title:

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Exhibit 10.1

The foregoing Agreement is
hereby confirmed and accepted
as of the date first-written above.
RBC CAPITAL MARKETS, LLC 
By:                        
Name: 
Title:

37

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