Document:

EX-10.1

 Exhibit 10.1 

SECURITIES PURCHASE AGREEMENT 

This Securities Purchase Agreement (this “Agreement”) is dated as of December 17, between Nanosphere,
Inc., a Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively the
“Purchasers”). 
 WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to
an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase
from the Company, securities of the Company as more fully described in this Agreement. 
 NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows: 

ARTICLE I. 
 DEFINITIONS

 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, (a) capitalized terms that are
not otherwise defined herein have the meanings given to such terms in the Certificate of Designation (as defined herein), and (b), the following terms have the meanings set forth in this Section 1.1: 

“Acquiring Person” shall have the meaning ascribed to such term in Section 4.5. 

“Action” shall have the meaning ascribed to such term in Section 3.1(j). 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act. 

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

“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal
holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 

“Certificate of Designation” means the Certificate of Designation to be filed prior to the
Closing by the Company with the Secretary of State of Delaware, in the form of Exhibit A attached hereto. 

  
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 “Closing” means the closing of the purchase and
sale of the Securities pursuant to Section 2.1. 
 “Closing Date” means the Trading Day
on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s
obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than the third Trading Day following the date hereof. 

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

“Common Stock” means the common stock of the Company, par value $0.01 per share, and any other
class of securities into which such securities may hereafter be reclassified or changed. 
 “Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. 

“Company Counsel” means Seyfarth Shaw LLP, with offices located at 620 Eighth Avenue, New
York, NY 10018. 
 “Conversion Price” shall have the meaning ascribed to such term in the
Certificate of Designation. 
 “Conversion Shares” means, collectively, the shares of Common
Stock issuable upon conversion of the shares of Preferred Stock in accordance with the terms hereof. 

“Disclosure Schedules” means the Disclosure Schedules of the Company delivered concurrently
herewith. 
 “EGS” means Ellenoff Grossman & Schole LLP, with offices located at
1345 Avenue of the Americas, New York, New York 10105-0302. 
 “Escrow Agent” means
Signature Bank, a New York State chartered bank, with offices at 261 Madison Avenue, New York, New York 10016. 

“Escrow Agreement” means the escrow agreement which may be entered into prior to the Closing
Date, by and among the Company, the Escrow Agent and the Placement Agent pursuant to which the Purchasers shall deposit Subscription Amounts with the Escrow Agent to be applied to the transactions contemplated hereunder. 

“Evaluation Date” shall have the meaning ascribed to such term in Section 3.1(s). 

  
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 “Exchange Act” means the Securities Exchange Act
of 1934, as amended, and the rules and regulations promulgated thereunder. 
 “Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of
the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the Company, (b) securities upon the exercise or exchange of or conversion of any Securities
issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this
Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities, and
(c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which
is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall
not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities. 

“FCPA” means the Foreign Corrupt Practices Act of 1977, as amended. 

“FDA” shall have the meaning ascribed to such term in Section 3.1(hh). 

“FDCA” shall have the meaning ascribed to such term in Section 3.1(hh). 

“GAAP” shall have the meaning ascribed to such term in Section 3.1(h). 

“Indebtedness” shall have the meaning ascribed to such term in Section 3.1(aa). 

“Intellectual Property Rights” shall have the meaning ascribed to such term in
Section 3.1(p). 
 “Liens” means a lien, charge, pledge, security interest,
encumbrance, right of first refusal, preemptive right or other restriction. 
 “Material Adverse
Effect” shall have the meaning assigned to such term in Section 3.1(b). 
 “Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n). 
 “Per Share
Purchase Price” for the Shares equals $0.47, subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this
Agreement. 

  
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 “Person” means an individual or corporation,
partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

“Pharmaceutical Product” shall have the meaning ascribed to such term in Section 3.1(hh).

 “Placement Agent” means Rodman & Renshaw, a unit of H. C. Wainwright &
Co., LLC. 
 “Preferred Stock” means the up to 10,000 shares of the Company’s Series C
Convertible Preferred Stock issued hereunder having the rights, preferences and privileges set forth in the Certificate of Designation, in the form of Exhibit A hereto. 

“Preliminary Prospectus” means the preliminary prospectus dated December 10, 2015, filed
with the Commission pursuant to Rule 424 of the Securities Act. 
 “Proceeding” means an
action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened. 

“Prospectus” means the final prospectus filed for the Registration Statement. 

“Purchaser Party” shall have the meaning ascribed to such term in Section 4.8. 

“Registration Statement” means the effective registration statement with Commission file
No. 333-207460 which registers the sale of the Shares, Preferred Stock, the Warrants and the Underlying Shares to the Purchasers. 

“Regulation FD” means Regulation FD promulgated by the Commission pursuant to the Exchange
Act, as such Regulation may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Regulation. 

“Required Approvals” shall have the meaning ascribed to such term in Section 3.1(e). 

“Required Minimum” means, as of any date, the maximum aggregate number of shares of Common
Stock then issued or then potentially issuable assuming no further adjustments in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon exercise in full of all Warrants or conversion in full of all shares of
Preferred Stock, ignoring any conversion or exercise limits set forth therein, and that any previously unconverted shares of Preferred Stock are held until the third anniversary of the Closing Date. 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 

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

“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h). 

“Securities” means the Shares, Preferred Stock, the Warrants and the Underlying Shares. 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder. 
 “Shares” means the shares of Common Stock issued or issuable to
each Purchaser pursuant to this Agreement. 
 “Short Sales” means all “short
sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock).

“Stated Value” means $1,000 per share of Preferred Stock. 

“Subscription Amount” means, as to each Purchaser, the aggregate amount to be paid for the
Shares or Preferred Stock, as applicable to such Purchaser, and the Warrants purchased hereunder as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United
States dollars and in immediately available funds. 
 “Subsidiary” means any subsidiary of
the Company as set forth on Schedule 3.1(a), and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof. 

“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 is
listed or quoted for trading on the date in question: the NYSE MKT, 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). 

“Transaction Documents” means this Agreement, the Certificate of Designation, the Warrants,
the Escrow Agreement, if applicable, and any other documents or agreements executed in connection with the transactions contemplated hereunder. 

  
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 “Transfer Agent” means American Stock
Transfer & Trust Company, the current transfer agent of the Company, with a mailing address of 6201 15th Avenue, Brooklyn, NY 11219 and a facsimile number of 718-765-8726, and any successor transfer agent of the Company. 

“Underlying Shares” means the shares of Common Stock issued and issuable upon conversion or
redemption of the Preferred Stock and upon exercise of the Warrants. 
 “Variable Rate
Transaction” shall have the meaning ascribed to such term in Section 4.13(b). 

“Warrants” means, collectively, the Common Stock purchase warrants delivered to the Purchasers
at the Closing in accordance with Section 2.2(a) hereof, which Warrants shall be exercisable immediately and have a term of exercise equal to five (5) years, in the form of Exhibit B attached hereto. 

“Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants. 

ARTICLE II. 
 PURCHASE AND
SALE 
 2.1 Closing. On the Closing Date, upon the terms and subject to the conditions set forth herein,
substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase, up to an aggregate of $10,000,000.12 of Shares and
Warrants as determined pursuant to Section 2.2(a); provided, however, that, to the extent a Purchaser determines, in its sole discretion, that such Purchaser (together with such Purchaser’s Affiliates, and any Person acting as a group
together with such purchaser or any of such Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation, in lieu of purchasing Shares, such Purchaser may elect the Preferred Stock at the Stated Value in lieu of
Shares. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of the Securities on the Closing Date. Each Purchaser shall deliver, via
wire transfer or a certified check, immediately available funds equal to its Subscription Amount pursuant to Section 2.2(b)(ii), and the Company shall deliver to each Purchaser its respective Shares or shares of Preferred Stock (as applicable
to such Purchaser) and Warrants, as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and
conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of EGS or such other location as the parties shall mutually agree. The Company covenants that, if the Purchaser delivers a Notice of Conversion (as defined in the
Certificate of Designation) no later than 12 noon. Eastern Standard Time on the Trading Day prior to the Closing Date to convert any shares of Preferred Stock between the date hereof and the Closing Date, the Company shall deliver Conversion Shares
to the Purchaser on the Closing Date in connection with such Notice of Conversion. Each Purchaser acknowledges that concurrently with the Closing and pursuant to the Prospectus, the Company may sell additional shares of Common Stock and Warrants to
purchasers not party to this Purchase Agreement and 

  
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will issue to each such purchaser’s broker-dealer such additional shares of Common Stock and Warrants in the same form and amount per share of Common Stock as issued to a Purchaser
hereunder. Unless otherwise directed by the Placement Agent, settlement of the Shares shall occur via “Delivery Versus Payment” (“DVP”) (i.e., on the Closing Date the Placement Agent shall confirm to the Company the dollar
amounts held in escrow and their DVP accounts (either directly or through ICBC custodian services) and upon such confirmation, the Company shall issue the Shares registered in the Purchasers’ names and addresses and released by the Transfer
Agent directly to the account(s) at the Placement Agent identified by each Purchaser; upon receipt of such Shares, the Placement Agent shall promptly electronically deliver such Shares to the applicable Purchaser, and payment therefor shall promptly
be made by the Placement Agent (or its clearing firm) by wire transfer to the Company on the Closing Date). 
 2.2
Deliveries. 
 (a) On or prior to the Closing Date, the Company shall deliver or cause to be delivered
to each Purchaser the following: 
 (i) this Agreement duly executed by the Company; 

(ii) a legal opinion of Company Counsel, substantially in the form of Exhibit D attached hereto; 

(iii) subject to the last sentence of Section 2.1, as to a Purchaser purchasing Shares hereunder, a copy
of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (DWAC) Shares equal to such Purchaser’s
Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser; 

(iv) for each Purchaser, as applicable, who has elected to purchase the Preferred Stock, a certificate
evidencing a number of shares of Preferred Stock equal to, in aggregate, such Purchaser’s Subscription Amount divided by the Stated Value, registered in the name of such Purchaser and evidence of the filing and acceptance of the Certificate of
Designation from the Secretary of State of Delaware; 
 (v) a Warrant registered in the name of such
Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, with an exercise price equal to $0.70, subject to adjustment therein (such Warrant
certificate may be delivered within three Trading Days of the Closing Date); and 
 (vi) the Preliminary
Prospectus and Prospectus (which may be delivered in accordance with Rule 172 under the Securities Act). 

(b) On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company or
the Escrow Agent, as applicable, the following: 
 (i) this Agreement duly executed by such Purchaser; and

 (ii) such Purchaser’s Subscription Amount by wire transfer to the account specified in the Escrow
Agreement or as otherwise directed by the Placement Agent for delivery to the account of the Company. 

  
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 2.3 Closing Conditions. 

(a) The obligations of the Company hereunder in connection with the Closing are subject to the following
conditions being met: 
 (i) the accuracy in all material respects (or, to the extent representations or
warranties are qualified by materiality or Material Adverse Effect, in all respects) on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific date therein in which case they shall be
accurate as of such date); 
 (ii) all obligations, covenants and agreements of each Purchaser required to be
performed at or prior to the Closing Date shall have been performed; and 
 (iii) the delivery by each
Purchaser of the items set forth in Section 2.2(b) of this Agreement. 
 (b) The respective obligations
of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met: 

(i) the accuracy in all material respects (or, to the extent representations or warranties are qualified by
materiality or Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein in which case they shall be accurate as of such
date); 
 (ii) all obligations, covenants and agreements of the Company required to be performed at or prior
to the Closing Date shall have been performed; 
 (iii) the delivery by the Company of the items set forth in
Section 2.2(a) of this Agreement; 
 (iv) there shall have been no Material Adverse Effect with respect
to the Company since the date hereof; and 
 (v) from the date hereof to the Closing Date, trading in the
Common Stock shall not have been suspended by the Commission or the Company’s principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or
limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking 

  
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moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or
international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at
the Closing. 
 ARTICLE III. 

REPRESENTATIONS AND WARRANTIES 

3.1 Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure
Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules, the Company hereby makes the following
representations and warranties to each Purchaser: 
 (a) Subsidiaries. The Company has no
Subsidiaries. All references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded. 

(b) Organization and Qualification. The Company is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the State of Delaware, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company is not in violation nor
default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. The Company is duly qualified to conduct business and is in good standing as a foreign corporation or
other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or
reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or
condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any
Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and
authority or qualification. 
 (c) Authorization; Enforcement. The Company has the requisite corporate
power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this
Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby 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 herewith or therewith other than in connection with the Required Approvals. This Agreement and 

  
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each other Transaction Document to which it is a party has been (or upon delivery will have 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 general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting 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. 
 (d)
No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions
contemplated hereby and thereby do not and will not (i) 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 the Required Approvals, conflict with or result in a violation of any
law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any
property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect. 

(e) 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 court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the
Company of the Transaction Documents, other than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus, (iii) application(s) to each applicable Trading Market
for the listing of the Shares and Underlying Shares for trading thereon in the time and manner required thereby, (iv) the filing of the Certificate of Designation, and (v) such filings as are required to be made under applicable state
securities laws (collectively, the “Required Approvals”). 
 (f) Issuance of the
Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens
imposed by the Company. The Underlying Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully 

  
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paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the
Underlying Shares at least equal to the Required Minimum as of the date hereof. The Company has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective on December 17, 2015
(the “Effective Date”), including the Prospectus, and such amendments and supplements thereto as may have been required to the date of this Agreement. The Registration Statement is effective under the Securities Act and no stop
order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of the Preliminary Prospectus or the Prospectus has been issued by the Commission and no proceedings for that purpose have been
instituted or, to the knowledge of the Company, are threatened by the Commission. The Company, if required by the rules and regulations of the Commission, proposes to file the Prospectus, with the Commission pursuant to Rule 424(b). At the time the
Registration Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the Registration Statement and any amendments thereto conformed and will conform in all material respects to the requirements
of the Securities Act and did not and 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 the Preliminary
Prospectus and the Prospectus and any amendments or supplements thereto, at time the Preliminary Prospectus or the Prospectus, as applicable, or any amendment or supplement thereto was issued and at the Closing Date, conformed and will conform in
all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. 
 (g) Capitalization. The capitalization of the Company
as of September 30, 2015 is as set forth on Schedule 3.1(g). Except as set forth on Schedule 3.1(g), the Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than
pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans, the issuance of shares of Common Stock
in lieu of fractional shares of Common Stock resulting from the Company’s 20-to-1 reverse split of its issued and outstanding Common Stock effective April 8, 2015 at 5:00 pm EDT, and pursuant to the conversion and/or exercise of Common
Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the
transactions contemplated by the Transaction Documents. Except as set forth on Schedule 3.1(g) and as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock or the capital
stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock of

  
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any Subsidiary. The issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person (other than the
Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no outstanding securities or instruments of the Company or any
Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such
Subsidiary. The Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. 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 federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. 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, to the knowledge of the Company, between or among any of the Company’s stockholders. 

(h) SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements
and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was
required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with the Preliminary Prospectus and the Prospectus, being collectively referred
to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC
Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act.
The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 

  
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 (i) Material Changes; Undisclosed Events, Liabilities or
Developments. Except as set forth on Schedule 3.1(i), since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof,
(i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than
(A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in
filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or
made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does
not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability, fact,
circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial
condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this
representation is made. 
 (j) Litigation. There is no action, suit, inquiry, notice of violation,
proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or
regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the
Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of
any Action 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 to the knowledge of the Company, there is not pending or contemplated, any investigation
by the Commission involving the Company or any current or former director or officer of the Company. The Commission 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 Exchange Act or the Securities Act. 
 (k) Labor Relations. No labor dispute
exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’ employees is
a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the

  
 13 

 
Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now
expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement 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 and its Subsidiaries are in compliance
with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (l) Compliance. Neither
the Company nor any Subsidiary: (i) 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 it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument 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), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any
statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect. 

(m) Environmental Laws. The Company and its Subsidiaries (i) are in compliance with all federal,
state, local and foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases
or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits,
plans or regulations, issued, entered, promulgated or approved thereunder (“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 where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually
or in the aggregate, a Material Adverse Effect. 
 (n) Regulatory Permits. The Company and the
Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as

  
 14 

 
described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and
except as set forth on Schedule 3.1(n), neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. 

(o) Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to
all real property owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except as set forth on Schedule
3.1(o) and for (i) 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 (ii) Liens for the
payment of federal, state or other taxes, for which appropriate reserves have been made therefor 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. 

(p) Intellectual Property. Except as set forth on Schedule 3.1(p), the Company and the
Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights
necessary or required for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within
two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any
knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and
value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

(q) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage at least
equal to the aggregate Subscription Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business without a significant increase in cost. 

  
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 (r) Transactions With Affiliates and Employees. Except as
set forth in the SEC Reports, none of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or
any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from,
providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for
expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company. 

(s) Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance
with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof
and as of the Closing Date. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or
specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and
the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The Company’s
certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the
“Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially
affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries. 

  
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 (t) Certain Fees. Except as set forth in the Preliminary
Prospectus or the Prospectus, no brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this
Section that may be due in connection with the transactions contemplated by the Transaction Documents. 
 (u)
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended. 

(v) Registration Rights. Except as set forth on Schedule 3.1(v), no Person has any right to cause
the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary. 

(w) Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b)
or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any
notification that the Commission is contemplating terminating such registration. Except as disclosed in the SEC Reports, the Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common
Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future
continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company is
current in payment of the fees to the Depository Trust Company (or such other established clearing corporation) in connection with such electronic transfer. 

(x) Application of Takeover Protections. The Company and the Board of Directors have taken all necessary
action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision
under the Company’s certificate of incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their
obligations or exercising their rights under the Transaction Documents, including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities. 

  
 17 

 (y) Disclosure. Except with respect to the material terms
and conditions of the transactions contemplated by the Transaction Documents and as set forth on Schedule 3.1(y), the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their
agents or counsel with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in this Agreement, the SEC Reports or the Prospectus. The Company understands and confirms that
the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made and when made, not
misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof. 

(z) No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties
set forth in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under
circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company
are listed or designated. 
 (aa) Solvency. Based on the consolidated financial condition of the
Company as of the Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder and the proceeds of the transaction described on Schedule 3.1(aa), (i) the fair saleable value of
the Company’s assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do
not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company,
consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into
account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they
mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no 

  
 18 

 
knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one
year from the Closing Date. Schedule 3.1(aa) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of
this Agreement, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties,
endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with
GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness. 
 (bb) Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state
and local 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 or of any Subsidiary know of no basis for any such claim. 

(cc) Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the
Company or any Subsidiary, 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, entertainment or other unlawful expenses related to
foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose
fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of FCPA. 

(dd) Accountants. The Company’s accounting firm is set forth in the Prospectus. To the knowledge
and belief of the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included in the Company’s
Annual Report for the fiscal year ending December 31, 2015. 

  
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 (ee) Acknowledgment Regarding Purchasers’ Purchase of
Securities. The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company
further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any
Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further
represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its
representatives. 
 (ff) Acknowledgement Regarding Purchaser’s Trading Activity. Anything in this
Agreement or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(f) and 4.13 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers has been asked by the Company to agree, nor has any
Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for any specified term; (ii) past or
future open market or other transactions by any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement transactions, may negatively
impact the market price of the Company’s publicly-traded securities; (iii) any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, presently may have a
“short” position in the Common Stock, and (iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The Company further
understands and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times during the period that the Securities are outstanding, including, without limitation, during the periods that the value of the
Warrant Shares deliverable with respect to Securities are being determined, and (z) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the
hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents. 

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

  
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 (hh) FDA. As to each product subject to the jurisdiction
of the U.S. Food and Drug Administration (“FDA”) under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged, labeled, tested, distributed, sold,
and/or marketed by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed by the
Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good
laboratory practices, good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the failure to be in compliance would not have a Material Adverse Effect. Except as disclosed on
Schedule 3.1(hh), there is no pending, completed or, to the Company’s knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against
the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance,
licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the
recall, suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of
its Subsidiaries, (iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of its Subsidiaries, or
(vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect. The properties, business and operations
of the Company have been and are being conducted in all material respects in accordance with all applicable laws, rules and regulations of the FDA. The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale,
license or use in the United States of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing for marketing any product being developed or proposed to be developed
by the Company. 
 (ii) Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor,
to the Company’s knowledge, any director, officer, agent, employee or 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
(“OFAC”). 
 (jj) 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, and the Company shall so certify upon Purchaser’s request. 

  
 21 

 (kk) Bank Holding Company Act. Neither the Company nor any
of its Subsidiaries or 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 or 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 or 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. 
 (ll) 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 or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened. 

3.2 Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby
represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein): 

(a) Organization; Authority. Such Purchaser is either an individual or an entity duly incorporated or
formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the
transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by
the Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction Document to which it is a party has been duly
executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except:
(i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (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. 

(b) Understandings or Arrangements. Such Purchaser is acquiring the Securities as principal for its own
account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser’s right to sell the
Securities otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. 

  
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 (c) Purchaser Status. At the time such Purchaser was
offered the Securities, it was, and as of the date hereof it is, and on each date on which it exercises any Warrants, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under
the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. 

(d) Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has
such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment.
Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. 

(e) Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the
Transaction Documents (including all exhibits and schedules thereto), the Disclosure Schedules, and the SEC Reports and has been afforded, (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company and its financial condition, results of
operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort
or expense that is necessary to make an informed investment decision with respect to the investment. Such Purchaser acknowledges and agrees that neither the Placement Agent nor any Affiliate of the Placement Agent has provided such Purchaser
with any information or advice with respect to the Securities nor is such information or advice necessary or desired. Neither the Placement Agent nor any Affiliate has made or makes any representation as to the Company or the quality of the
Securities and the Placement Agent and any Affiliate may have acquired non-public information with respect to the Company which such Purchaser agrees need not be provided to it. In connection with the issuance of the Securities to such
Purchaser, neither the Placement Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser. 

(f) Certain Transactions and Confidentiality. Other than consummating the transactions contemplated
hereunder, such Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company
during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material pricing terms of the transactions contemplated
hereunder and ending immediately prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such
Purchaser’s assets and the portfolio managers have no 

  
 23 

 
direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with
respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser’s
representatives, including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the
identification of the availability of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future. 

The Company acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction Document or any other document or instrument executed and/or
delivered in connection with this Agreement or the consummation of the transaction contemplated hereby. 
 ARTICLE IV. 

OTHER AGREEMENTS OF THE PARTIES 

4.1 Underlying Shares. The shares of Common Stock issuable upon conversion of the Preferred Stock shall be issued free
of legends. If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the issuance or resale of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares
issued pursuant to any such exercise shall be issued free of all legends. If at any time following the date hereof the Registration Statement (or any subsequent registration statement registering the sale or resale of the Warrant Shares) is not
effective or is not otherwise available for the sale or resale of the Warrant Shares, the Company shall immediately notify the holders of the Warrants in writing that such registration statement is not then effective and thereafter shall promptly
notify such holders when the registration statement is effective again and available for the sale or resale of the Warrant Shares (it being understood and agreed that the foregoing shall not limit the ability of the Company to issue, or any
Purchaser to sell, any of the Warrant Shares in compliance with applicable federal and state securities laws). The Company shall use best efforts to keep a registration statement (including the Registration Statement) registering the issuance or
resale of the Warrant Shares effective during the term of the Warrants. 
 4.2 Furnishing of Information. Until the
earliest of the time that (i) no Purchaser owns Warrants or (ii) the Warrants have expired, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to
be filed by the Company after the date hereof pursuant to the Exchange Act, even if the Company is not then subject to the reporting requirements of the Exchange Act. 

4.3 Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect
of any security (as defined in Section 2 of the Securities Act) that 

  
 24 

 
would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing
of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction. 
 4.4
Securities Laws Disclosure; Publicity. The Company shall (a) by 9:00 a.m. (New York City time) on the Trading Day immediately following the date hereof, issue a press release disclosing the material terms of the transactions contemplated
hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such press release, the Company
represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents
in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any
agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates on the other hand,
shall terminate. The Company and each Purchaser shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor
otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent
shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser,
except (a) as required by federal securities law in connection with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the
Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b). 
 4.5
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an “Acquiring Person” under any control share acquisition, business
combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such
plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers. 

4.6 Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated
by the Transaction Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information
that constitutes, or the Company reasonably believes constitutes, material non-public 

  
 25 

 
information, unless prior thereto such Purchaser shall have consented to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands
and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company. To the extent that the Company delivers any material, non-public information to a Purchaser without such
Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of its Subsidiaries, or any of their respective officers, directors, agents, employees or
Affiliates, or a duty to the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public information, provided that the Purchaser shall
remain subject to applicable law. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file
such notice with the Commission pursuant to a Current Report on Form 8-K. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company. 

4.7 Use of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder as set forth in
the Prospectus and shall not use such proceeds: (a) for the satisfaction of any portion of the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business and prior practices), (b) for
the redemption of any Common Stock or Common Stock Equivalents, (c) for the settlement of any outstanding litigation or (d) in violation of FCPA or OFAC regulations. 

4.8 Indemnification of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and
hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other
title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other
Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any and all losses,
liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer
or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the
Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents
(unless such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any
violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party
in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its

  
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own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a
reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the position of
such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for any
settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable
to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required by this Section 4.8 shall
be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar
right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law. 

4.9 Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to
reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue shares of Common Stock upon conversion of the Preferred Stock and Warrant Shares
pursuant to any exercise of the Warrants. If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 120% of the number of Underlying Shares on such date, then the Board of Directors shall
use commercially reasonable efforts to amend the Company’s certificate of incorporation to increase the number of authorized but unissued shares of Common Stock to at least 120% of the number of Underlying Shares at such time, as soon as
possible and in any event not later than the 75th day after such date. 
 4.10 Listing of Common Stock. The Company
hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the Company shall apply to list or quote all of the Shares and
Underlying Shares on such Trading Market and promptly secure the listing of all of the Shares and Underlying Shares on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading
Market, it will then include in such application all of the Shares and Underlying Shares, and will take such other action as is necessary to cause all of the Shares and Underlying Shares to be listed or quoted on such other Trading Market as
promptly as possible. The Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other
obligations under the bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company or another established clearing corporation, including,
without limitation, by timely payment of fees to the Depository Trust Company or such other established clearing corporation in connection with such electronic transfer. 

  
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 4.11 [Reserved]. 

4.12 Subsequent Equity Sales. 

(a) From the date hereof until six (6) months from the Closing Date, neither the Company nor any
Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents. 

(b) From the date hereof until the earlier of 18 months from the Closing Date or such earlier time as no
Purchaser holds any of the Warrants, the Company shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units
thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for,
or include the right to receive additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of
Common Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity
security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into any agreement, including, but not limited to, an equity line
of credit or at-the-market offering, whereby the Company may issue securities at a future determined price. Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in
addition to any right to collect damages. 
 (c) Notwithstanding the foregoing, this Section 4.12 shall
not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall be an Exempt Issuance. 
 4.13
Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents
unless the same consideration is also offered to all of the parties to the Transaction Documents. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each
Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 4.14 Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other
Purchasers, covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales of any of the Company’s securities during the period commencing
with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are 

  
 28 

 
first publicly announced pursuant to the initial press release as described in Section 4.4. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until
such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms of
this transaction and the information included in the Transaction Documents and Disclosure Schedules. Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and
agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first
publicly announced pursuant to the initial press release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable
securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no Purchaser shall have any duty of
confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after the issuance of the initial press release as described in Section 4.4. Notwithstanding the foregoing, in the case of a Purchaser
that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers
managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by
this Agreement. 
 4.15 Conversion and Exercise Procedures. Each of the form of Notice of Exercise included in the
Warrants and the form of Notice of Conversion included in the Certificate of Designation set forth the totality of the procedures required of the Purchasers in order to exercise the Warrants or convert the Preferred Stock. Without limiting the
preceding sentences, no ink-original Notice of Exercise or Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise or Notice of Conversion form be required in
order to exercise the Warrants or convert the Preferred Stock. No additional legal opinion, other information or instructions shall be required of the Purchasers to exercise their Warrants or convert their Preferred Stock. The Company shall honor
exercises of the Warrants and conversions of the Preferred Stock and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents. 

ARTICLE V. 
 MISCELLANEOUS

 5.1 Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations
hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated on or before December 21, 2015; provided,
however, that no such termination will affect the right of any party to sue for any breach by any other party (or parties). 

  
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 5.2 Fees and Expenses. Except as expressly set forth in the Transaction
Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and
performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and any conversion or exercise notice delivered
by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers. 

5.3 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, the Preliminary
Prospectus and the Prospectus, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the
parties acknowledge have been merged into such documents, exhibits and schedules. 
 5.4 Notices. Any and all notices
or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via
facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission,
if such notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as 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, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt
by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant to any Transaction Document
constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. 

5.5 Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a
written instrument signed, in the case of an amendment, by the Company and the Purchasers who hold at least 51% in interest of the Shares and shares of Preferred Stock, determined as a single class on an as-converted basis, then outstanding and held
by the Purchasers or their permitted assigns or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought; provided, that if any amendment, modification or waiver disproportionately and adversely
impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required. No waiver of any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder
in any manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser relative to the comparable rights and obligations of the
other Purchasers shall require the prior written consent of such adversely affected Purchaser, Any amendment effected in accordance with accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Securities and the
Company. 

  
 30 

 5.6 Headings. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 
 5.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the
prior written consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in
writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.” 

5.8 No Third-Party Beneficiaries. The Placement Agent shall be the third party beneficiary of the representations and
warranties of the Company in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8 and this Section 5.8. 

5.9 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the
Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in
the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient
venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under
Section 4.8, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of
such Action or Proceeding. 

  
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 5.10 Survival. The representations and warranties contained herein shall
survive the Closing and the delivery of the Securities. 
 5.11 Execution. This Agreement may be executed in two or
more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties
need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof. 

5.12 Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the
parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby
stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or
unenforceable. 
 5.13 Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and
without limiting any similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations
within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its
future actions and rights; provided, however, that in the case of a rescission of conversion of the Preferred Stock or an exercise of a Warrant, such right may only be exercise in lieu of, and not in addition to, any exercise of Buy-In
rights under the Certificate of Designation or the Warrant, and the applicable Purchaser shall be required to return any shares of Common Stock subject to any such rescinded conversion or exercise notice concurrently with the return to such
Purchaser of the aggregate exercise price paid to the Company for such shares and the restoration of such Purchaser’s right to acquire such shares pursuant to such Purchaser’s Preferred Stock or Warrant, as applicable (including, issuance
of a replacement warrant certificate evidencing such restored right). 
 5.14 Replacement of Securities. If any
certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and
substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities. 

  
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 5.15 Remedies. In addition to being entitled to exercise all rights
provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate
compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at
law would be adequate. 
 5.16 Payment Set Aside. To the extent that the Company makes a payment or payments to any
Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy
law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred. 
 5.17 Independent Nature of Purchasers’
Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or
non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute
the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions
contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it
shall not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents.
For reasons of administrative convenience only, each Purchaser and its respective counsel have chosen to communicate with the Company through EGS. EGS does not represent any of the Purchasers and only represents the Placement Agent. The Company has
elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers. It is expressly understood and agreed that each
provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers. 

5.18 Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day. 

  
 33 

 5.19 Construction. The parties agree that each of them and/or their
respective counsel have reviewed and had an opportunity to revise the Transaction Documents 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 the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits,
stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement. 

5.20 WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY
AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.  

(Signature Pages Follow) 

  
 34 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed by their respective authorized signatories as of the date first indicated above. 
  

									
	NANOSPHERE, INC.	 		 	 Address for Notice:

				
	 By:
	 	 /s/ Michael K. McGarrity
	 		 	 Fax:

		 	 Name:
	 	 Michael K. McGarrity
	 		 	
		 	 Title:
	 	 CEO
	 		 	
			
	 With a copy to (which shall not constitute notice):
	 		 	

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE PAGE FOR PURCHASER FOLLOWS] 

  
 35 

 [PURCHASER SIGNATURE PAGES TO NSPH SECURITIES PURCHASE AGREEMENT] 

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above. 
 Name of Purchaser: Sabby Healthcare Master Fund, Ltd. 

 

					
	 Signature of Authorized Signatory of Purchaser:
	  	 /s/ Robert Grundstein
	  	

 Name of Authorized Signatory: Robert Grundstein COO of Purchaser’s Investment Manager 

Title of Authorized Signatory: COO of Purchaser’s Investment Manager 

Email Address of Authorized Signatory: [omitted] 

Facsimile Number of Authorized Signatory: [omitted] 

Address for Notice to Purchaser: c/o Sabby Management, LLC, 10 Mountainview Road, Suite 205, Upper Saddle River, NJ 07458 

Address for Delivery of Securities to Purchaser (if not same as address for notice): 

[omitted] 
 Subscription Amount:
$6,499,999.89 
 Shares: 6,499.99989 

Warrant Shares: 13,829,787 
 EIN
Number: omitted 

  
 36 

 [PURCHASER SIGNATURE PAGES TO NSPH SECURITIES PURCHASE AGREEMENT] 

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above. 
 Name of Purchaser: Sabby Volatility Warrant Master Fund, Ltd. 

 

					
	 Signature of Authorized Signatory of Purchaser:
	  	 /s/ Robert Grundstein
	  	

 Name of Authorized Signatory: Robert Grundstein COO of Purchaser’s Investment Manager 

Title of Authorized Signatory: COO of Purchaser’s Investment Manager 

Email Address of Authorized Signatory: [omitted] 
 Facsimile
Number of Authorized Signatory: [omitted] 
 Address for Notice to Purchaser: c/o Sabby Management, LLC, 10 Mountainview Road, Suite 205,
Upper Saddle River, NJ 07458 
 Address for Delivery of Securities to Purchaser (if not same as address for notice): 

[omitted] 
 Subscription Amount: $2,419,590.55 

Shares: 2,419.59055 
 Warrant Shares: 5,148,065 

EIN Number: omitted 

  
 37Exhibit 10.1

PLAN AND AGREEMENT OF
MERGER 

NORTHSTAR FINANCIAL
CORP.,
MIDWEST HOLDING INC.
AND 
MIDWEST ACQUISITION MINNESOTA, INC. 

This Plan and Agreement of
Merger (“Agreement”) is by and among Northstar Financial Corp., a
Minnesota corporation (“Northstar”), Midwest
Holding Inc., a Nebraska corporation (“Midwest”) and Midwest
Acquisition Minnesota, Inc., a Minnesota corporation (“Acquisition”). 

WITNESSETH

WHEREAS, Midwest is a
corporation organized and validly existing under the laws of the State of
Nebraska; and 

WHEREAS, Midwest wholly
owns Acquisition, a corporation recently organized and validly existing under
the laws of Minnesota; and 

WHEREAS, Northstar is a
corporation duly organized and validly existing under the laws of the State of
Minnesota; and 

WHEREAS, Midwest owns
approximately 14.3% of the issued and outstanding common stock of Northstar; and

WHEREAS, the respective
Boards of Directors of Northstar, Midwest and Acquisition have determined that
this Agreement and the transactions contemplated hereby are advisable, fair to
and in the best interests of their respective stockholders, and have approved
the merger of Acquisition with and into Northstar, with Northstar continuing
after the Merger as a surviving corporation, on the terms and subject to the
conditions set forth in this Agreement.

NOW, THEREFORE, in
consideration of the foregoing and the respective representations, warranties,
covenants and agreements set forth herein, the parties hereto agree as
follows:

ARTICLE I
The Merger

1.1 Subject to the
conditions set forth herein on the “Effective Date” (as herein defined)
Acquisition will merge with and into Northstar (the “Merger”). Northstar shall be the corporation surviving the Merger (the
“Surviving
Corporation”). The transactions
contemplated by this Agreement shall be completed at a closing (“Closing”) on a closing date (“Closing Date”) which shall
be as soon as possible after all shareholder approvals are obtained in
accordance with law as set forth in this Agreement.

On the Closing Date, all of
the documents to be furnished to Northstar and Midwest, including the documents
to be furnished pursuant to Article VI of this Agreement, shall be delivered to
Jones & Keller, P.C. (“Jones
& Keller”) to be held in
escrow until the Effective Date or the date of termination of this Agreement,
whichever first occurs and thereafter shall be promptly distributed to the
parties as their interests may appear. 

1.2 The effect of the
Merger shall be: 

	      	(i)	  	The Merger shall
      become effective at the time Northstar and Acquisition file Articles of
      Merger with the Secretary of State of the State of Minnesota. The Merger
      shall have the effect set forth in the Minnesota Business Corporation Act.
      The Surviving Corporation may, at any time after the Effective Date, take
      any action (including executing and delivering any document) in the name
      and on behalf of either Northstar or Acquisition in order to carry out and
      effectuate the transactions contemplated by this Agreement.
		 
		(ii)		The articles of
      incorporation of Northstar shall be the articles of incorporation of the
      Surviving Corporation.

1 

	      	(iii)	  	The bylaws of
      Northstar shall be the bylaws of the Surviving Corporation.
		 
		(iv)		The directors and
      officers of Acquisition shall become the directors and officers of the
      Surviving Corporation at and as of the Effective Date.
		 
		(v)		At and as of the
      Effective Date, (a) each issued and outstanding share of Northstar common
      stock other than shares owned by Midwest (and other than any shares for
      which dissenter’s rights are perfected in accordance with Minnesota law
      held in the treasury of Northstar, which shall be cancelled), shall be
      converted into the right to receive an amount equal to 1.27 shares of
      Midwest voting common stock, with fractional shares rounded up to the
      nearest whole share; provided, however, that all consideration to be
      received shall be subject to equitable adjustment in the event of any
      stock split, stock dividend, reverse stock split, or other change in the
      number of Midwest shares outstanding after the date hereof. No shares of
      Northstar shall be deemed to be outstanding or to have any rights other
      than those set forth above in this Section 1.2 after the Effective
      Date.
		 
		(vi)		Conversion of Capital
      Stock of Acquisition. At and as of the Effective Date, each share of
      common stock of Acquisition shall be converted into one share of common
      stock of the Surviving Corporation.

1.3 If this Agreement is
duly adopted by the holders of the requisite number of shares, in accordance
with the applicable laws and subject to the other provisions hereof, such
documents as may be required by law to accomplish the Merger shall be filed as
required by law to effectuate same, and it shall become effective. The time of
filing the last document required by law shall be the Effective Date for the
Agreement. At the Effective Date, Northstar and Acquisition will file with the
Secretary of State of Minnesota, articles of merger in the form attached hereto
as Exhibit A. For accounting purposes, the Agreement shall be effective as of
12:01 a.m., on the Effective Date. 

1.4 Subsequent to the
Effective Date, and after Northstar has become a wholly owned subsidiary of
Midwest, Midwest intends to liquidate Northstar pursuant to the provisions of
Section 332 of the Internal Revenue Code of 1986, as amended to date (the
“Code”). 

ARTICLE II
Issuance of
Shares 

2.1 At the Effective Date,
the shares of voting common stock of Midwest to be issued as provided in Section
1.2 shall be distributed to shareholders of Northstar (other than those shares
as to which dissenters’ rights have been perfected in accordance with Minnesota
law). 

2.2 The stock transfer
books of Northstar shall be closed on the Effective Date, and thereafter no
transfers of the stock of Northstar shall be made. Midwest shall appoint an
exchange agent (“Exchange
Agent”), which is expected to be
Midwest’s then existing stock transfer agent (“Stock Transfer Agent”), to accept surrender of the certificates
representing the shares of Northstar, and to deliver for such surrendered
certificates, shares of voting common stock of Midwest. The authorization of the
Exchange Agent may be terminated by Midwest after six months following the
Effective Date. Upon termination of such authorization, any shares of Northstar
and funds held by the Exchange Agent for payment to Northstar shareholders
pursuant to this Agreement shall be transferred to Midwest or its designated
agent who shall thereafter perform the obligations of the Exchange Agent. If
outstanding certificates for shares of Northstar are not surrendered or the
payment for them not claimed prior to such date on which such payments would
otherwise escheat to or become the property of any governmental unit or agency,
the unclaimed items shall, to the extent permitted by abandoned property and
other applicable law, become the property of Midwest (and to the extent not in
its possession shall be paid over to it), free and clear of all claims or
interest of any persons previously entitled to such items. Notwithstanding the
foregoing, neither the Exchange Agent nor any party to this Agreement shall be
liable to any holder of Northstar shares for any amount paid to any governmental
unit or agency having jurisdiction of such unclaimed item pursuant to the
abandoned property or other applicable law of such jurisdiction. 

2 

2.3 No fractional shares of
Midwest voting common stock shall be issued as a result of the Agreement;
rather, such shares shall evidence the right to receive the rounded up nearest
whole share. 

2.4 At the Effective Date,
each holder of a certificate or certificates representing shares of Northstar,
upon presentation and surrender of such certificate or certificates to the
Exchange Agent, shall be entitled to receive the consideration set forth herein,
except that holders of those shares as to which dissenters’ rights shall have
been asserted and perfected pursuant to Minnesota law shall not be converted
into shares of Midwest voting common stock, but shall represent only such
dissenters’ rights, and payment for such dissenters’ shares shall be made by
Northstar. Upon such presentation, surrender, and exchange as provided in this
Section 2.4, certificates representing shares of Northstar previously held shall
be canceled. Until so presented and surrendered, each certificate or
certificates which represented issued and outstanding shares of Northstar at the
Effective Date shall be deemed for all purposes to evidence the right to receive
the consideration set forth in Section 1.2 of this Agreement. If the
certificates representing shares of Northstar have been lost, stolen, mutilated
or destroyed, the Exchange Agent shall require the submission of an indemnity
agreement and may require the submission of a bond in lieu of such certificate.

ARTICLE III

Representations,
Warranties and Covenants of Northstar 

No representations or
warranties are made by any director, officer, employee or shareholder of
Northstar as individuals, except as and to the extent stated in this Agreement
or in a separate written statement (the “Northstar Disclosure Statement”). 

Northstar hereby
represents, warrants and covenants to Midwest except as stated in the Northstar
Disclosure Statement, as follows: 

3.1 Northstar is a
corporation duly organized, validly existing and in good standing under the laws
of Minnesota with full corporate power and authority to own the respective
properties which it now owns; and is qualified or licensed to conduct its
business and is in good standing in all states where such qualifications or
licensing is required, and has full corporate power to enter into and, upon the
appropriate approvals as required by law, to consummate the transactions
contemplated by this Agreement. Northstar owned all the issued and outstanding
equity securities of entities set forth in the Northstar Disclosure Statement.

3.2 The articles of
incorporation and bylaws of Northstar, copies of which have been delivered to
Midwest, are complete and accurate and the minute books of such corporations
contain a record of all meetings and corporate actions of the shareholders and
Board of Directors of Northstar that is complete and accurate in all material
respects. All of the books, records, and accounts of Northstar are in all
material respects true and complete, are maintained in accordance with good
business practice and all applicable legal requirements, accurately present and
reflect in all material respects all of the transactions therein described, and
are reflected accurately in the Northstar Financial Statements. 

3.3 The aggregate number of
shares of capital stock which Northstar is authorized to issue is 100,000,000
shares of designated common stock, par value $0.01 per share, of which 4,198,250
of such shares are issued and outstanding, fully paid and non-assessable, and
50,000,000 undesignated shares with none of such shares issued or outstanding.
Northstar has no outstanding options, warrants or other rights to purchase, or
subscribe to, or securities convertible into or exchange for any shares of
capital stock. 

3.4 Northstar has complete
and unrestricted power to enter into and, upon the appropriate approvals as
required by law, to consummate the transactions contemplated by this Agreement.

3.5 Northstar has delivered
to Midwest the Northstar consolidated audited financial statements for the year
ended December 31, 2014 and the consolidated quarterly financial statements of
Northstar for the quarter ended June 30, 2015. All such statements, herein
sometimes called “Northstar
Financial Statements”, present
fairly, in all material respects, the assets and liabilities of Northstar, as of
the dates thereof, and the results of operations and cash flows for the periods
then ended, in conformity with the U.S. generally accepted account principles
(“GAAP”). Northstar
does not have any liabilities (whether absolute or contingent, matured or
unmatured, known or unknown) relating to its business that would be required to
be disclosed on a balance sheet prepared in accordance with GAAP other than as
stated or described in the quarterly financial statements of Northstar for the
quarter ended June 30, 2015. 

3 

3.6 Northstar has delivered
to Midwest a copy of each of the federal income tax returns of Northstar for the
years ended December 31, 2014, December 31, 2013 and December 31, 2012. The
provisions for taxes paid by Northstar are sufficient for payment of all accrued
and unpaid federal, state, county and local taxes of Northstar (including any
penalties or interest payable) whether or not disputed for the periods then
ended and for all prior fiscal periods. All returns and reports of information
required or requested by federal, state, county and local tax authorities have
been filed or supplied in a timely fashion and all such information is true and
correct. Provision has been made in the Northstar Financial Statements for the
payment of all taxes due to date by Northstar, including accrued taxes for the
year ended December 31, 2014. No federal income tax return of Northstar is
currently under audit. There are no tax sharing, allocation, indemnification or
similar agreements or arrangements, whether written or unwritten, in effect
under which Northstar could be liable for any material taxes of any person other
than Northstar. There are no liens for taxes on any asset of Northstar.

3.7 Since December 31,
2014, there has not been any material adverse change in the business or
condition, financial or otherwise, or operations of Northstar, including any
loss or damages to any of its assets, properties or rights. Except as
contemplated by this Agreement, since December 31, 2014, there has not occurred:

i. any damage, destruction
or loss to or of any of the material assets or properties owned or leased by
Northstar and used or useful in its businesses, whether or not covered by
insurance; 

ii. any sale, lease or
other disposition of assets or properties owned or leased by Northstar and used
or useful in its businesses, except dispositions of inventory in the ordinary
course of business; 

iii. any capital
expenditure or commitment of capital expenditure by Northstar involving more
than $10,000 in any one case or $25,000 in the aggregate, whether or not in the
ordinary course of business; 

iv. any delay or
postponement by Northstar in the payment of any amounts due under notes or
accounts payable, outside the ordinary course of business; 

v. (i) any payment of any
bonus, profit sharing, pension or similar payment or arrangement or special
compensation to any employee of Northstar, except in the ordinary course of the
administration of its employee benefit plans currently in place; or (ii) any
increase in the compensation payable or to become payable to any employee of
Northstar; or

vi. any commitment by
Northstar to do any of the foregoing. 

3.8 The Northstar
Disclosure Statement contains a listing of all pending legal proceedings or
known regulatory inquiries involving Northstar and, except for these
proceedings, there are no legal proceedings or regulatory proceedings involving
claims pending, or to the knowledge of the officers of Northstar, threatened
against Northstar or affecting any of its assets, or properties. Northstar is
not in any breach or violation of or default under any contract or instrument to
which it is a party, and no event has occurred which with the lapse of time or
action by a third party could result in a breach or violation of or default by
Northstar under any contract or other instrument to which Northstar is a party
or by which it or any of its property may be bound or affected, or under its
articles of incorporation or bylaws, or any court order, statute, ruling or
regulation applicable to Northstar which breach or violation of or default could
have a material adverse effect on Northstar. 

3.9 The execution and
delivery of this Agreement has been duly authorized and approved by the Board of
Directors of Northstar. This Agreement has been duly executed and delivered by
Northstar, and, assuming the due authorization, execution and delivery hereof by
Midwest and Acquisition constitutes a valid and legally binding agreement of
Northstar, enforceable against Northstar in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium and similar
laws affecting creditors’ rights and remedies generally, and subject, as to
enforceability, to general principles of equity, including principles of
commercial reasonableness, good faith and
fair dealing (regardless of whether enforcement is sought in a proceeding at law
or in equity). 

4 

3.10 Northstar shall not
enter into or consummate any transactions prior to the Effective Date other than
in the ordinary course of business and will pay no dividend, or increase the
compensation of officers and will not enter into any agreement or transaction
which would adversely affect its financial condition in a material manner.

3.11 (a) Northstar has
provided or will provide Midwest a copy of the employee manual and related
documents of Northstar, which include a description of its employee benefits,
together with a complete and correct list as of the date of this Agreement of
each bonus, deferred compensation, incentive equity-based incentive, severance,
termination, change in control, retention, salary continuation, vacation, sick
or other paid leave, employment or consulting, hospitalization or other medical,
dental, life (including all individual life insurance policies as to which
Northstar is the owner, the beneficiary or both) or other insurance or coverage,
disability, death benefit, other welfare, supplemental unemployment,
profit-sharing, pension, savings or retirement plan, program, agreement, policy
or arrangement, and each other director, consultant or employee compensation or
benefit plan, program, agreement, policy or arrangement (each a “Company Plan”). 

(b) With respect to each
Company Plan, Northstar has delivered or will deliver to Midwest complete and
correct copies of each of the following documents (including all amendments to
such documents), as applicable. 

i. the Company Plan or a
written description of any Company Plan not in writing; 

ii. a copy of the three
most recent annual reports or IRS Form 5500 Series that is required to be filed,
including audited financial statements, actuarial valuation reports and all
other related reports required therewith; 

iii. a copy of (1) the most
recent summary company plan description (“SPD”) required to be
prepared and distributed, together with (2) all summaries of material
modification required to be issued with respect to such SPD; 

iv. no Company Plan is
intended to qualify under Section 401(a) of the Code; and 

v. all communications
regarding the operation or administration of the Company Plans between Northstar
or any ERISA Affiliate and the IRS, the U.S. Department of Labor
(“DOL”) or any other governmental entity with the last
three years.

(c) Except as set forth in
the Northstar Disclosure Statement, Northstar has no employment
agreements.

3.12 Northstar will call
and hold a special meeting of its shareholders as soon as practicable after the
date hereof, at which special meeting the Board of Directors will, subject to
its fiduciary obligations to shareholders, submit and recommend the Agreement
and transactions described herein to its shareholders, and, if the requisite
approval by such shareholders is obtained, will undertake promptly to consummate
the Merger as set forth herein. 

3.13 Without the prior
written consent of Midwest, Northstar shall not enter into or consummate any
transactions prior to the Effective Date other than in the ordinary course of
business, will not declare or pay any shareholder dividend and will not
intentionally enter into any agreement or transaction that would materially and
adversely affect its financial condition, and will not increase the compensation
of any of its employees. 

3.14 Northstar has provided
to Midwest all contracts to which Northstar is a party. All such contracts are
in full force and effect with no defaults thereunder by Northstar and to the
knowledge of the officers of Northstar, no default by any other party
thereto.

3.15 The representations
and warranties of Northstar shall be true and correct as of the Effective Date
as well as the date hereof.

5

3.16 Northstar has all
requisite power and authority to execute, deliver, and perform this Agreement
and the other documents contemplated by this Agreement to which Northstar is a
party and to consummate the transactions contemplated by this Agreement and the
other documents contemplated by this Agreement to which Northstar is a party.
The execution, delivery, and performance of this Agreement and the other
documents contemplated by this Agreement to which Northstar is a party and the
consummation of the transactions contemplated by this Agreement and the other
documents contemplated by this Agreement to which Northstar is a party by
Northstar have been duly and validly authorized by all necessary action on the
part of Northstar except for shareholder approval of this Agreement and the
transactions contemplated hereby.

3.17 The execution,
delivery, and performance by Northstar of this Agreement and the other documents
contemplated by this Agreement to which Northstar is a party do not and will
not: (i) conflict with or violate any provision of the articles of incorporation
or bylaws of Northstar as amended to date; (ii) violate any provision of any
legal requirements; (iii) conflict with, violate, result in a breach of,
constitute a default under (without regard to requirements of notice, lapse of
time, or elections of other persons, or any combination thereof), accelerate, or
permit the acceleration of the performance required by, any contract or
encumbrance to which Northstar is a party or by which Northstar or the assets or
properties owned or leased by Northstar are bound or affected; (iv) result in
the creation or imposition of any encumbrance against or upon any of the assets
of Northstar; or (v) require any consent, approval or authorization of, or
filing of any certificate, notice, application, report, or other document with,
any governmental authority or other person. 

3.18 Northstar is not bound or affected by any of
the following that relate to its business: (i) material leases of real or
personal property (whether as lessor or lessee)(other than as set forth in the
Northstar Disclosure Statement); (ii) contracts granting any person an
encumbrance on or against any of the assets of Northstar; (iii) contracts of
employment, or contracts with consultants or independent contractors; (iv)
contracts pertaining to the use by Northstar of any intellectual property or
proprietary information of any other person; or (v) contracts other than those
described in any other clause of this paragraph that are material to the
business.

3.19 Northstar has
delivered to Midwest a complete and correct list of names and positions of all
of the employees of Northstar and their current hourly wages or monthly salaries
and other compensation. Northstar has complied with all legal requirements
relating to the employment of labor, including the Employee Retirement Income
Security Act (“ERISA”), continuation
coverage requirements with respect to group health plans, and those relating to
wages, hours, collective bargaining, unemployment compensation, worker’s
compensation, equal employment opportunity, age and disability discrimination,
immigration control and the payment and withholding of taxes. Northstar does not
currently have and has never had in the past an “employee benefit plan” or
“multiemployer plan” (as those terms are defined in ERISA). All Company Plans
that are subject to Section 409A of the Code are in compliance with the
requirements of such Code section and regulations and other guidance thereunder.
No Northstar common stock or other security of Northstar, or other affiliates
and no real property is held in trust or otherwise set aside for funding benefit
obligations under any Company Plan. No amounts paid or payable (whether in cash,
in property, or in the form of benefits, accelerated vesting, cash, property or
otherwise) under the Company Plans as a result of the transactions contemplated
hereby (either alone or in conjunction with any other event) will be an “excess
parachute payment” within the meaning of Section 280G of the Code or fail to be
deductible for federal income tax purposes by virtue of Sections 280G or 162(m)
of the Code. 

3.20 Northstar has filed in
proper form all federal, state, local, and foreign tax returns and other reports
required to be filed, and has timely paid all taxes which have become due and
payable, whether or not so shown on any such return or report. Northstar has
received no notice of, nor does Northstar have any knowledge of, any notice of
deficiency or assessment of proposed deficiency or assessment from any taxing
governmental authority. There are no outstanding agreements or waivers by or
with respect to Northstar that extend the statutory period of limitations
applicable to any federal, state, local, or foreign tax returns or taxes for any
period. There are no determined deficiencies or proposed assessments of taxes
against Northstar. 

3.21 Northstar has received
no notice claiming a violation by Northstar of any legal requirement applicable
to Northstar as its business is currently conducted, and to the knowledge of
Northstar officers, there is no basis for any claim that such a violation
exists.

6 

3.22 All of the tangible
assets of Northstar are insured by responsible companies against casualty and
other losses, and Northstar carries public liability insurance and workers’
compensation insurance, in amounts that are reasonable and adequate in light of
the nature of its business and in compliance with applicable legal requirements.

3.23 No representation or
warranty by Northstar in this Agreement or in documents provided by Northstar
hereunder or in any related document provided by Northstar on any statement,
list or certificate furnished or to be furnished by Northstar pursuant to this
Agreement, contains or will contain any untrue statement of material fact, or
omits or will omit to state a material fact required to be stated therein or
necessary to make the statements contained therein not misleading in light of
the circumstances in which made.

3.24 Northstar shall
cooperate in the preparation, execution and filing of all tax returns,
questionnaires, applications or other documents regarding any real property
transfer or gains, sales, use, transfer, value added, stock transfer and stamp
taxes, and transfer recording, registration and other fees and similar taxes
which become payable in connection with the Merger that are required or
permitted to be filed on or before the Effective Date. Northstar shall pay,
without deduction from any amount payable to holders of Northstar common stock,
fees imposed on it by any governmental entity which becomes payable in
connection with the Merger. 

ARTICLE IV

Representations,
Warranties and Covenants of Midwest 

No representations or
warranties are made by any director, officer, employee or shareholder of Midwest
as individuals, except as and to the extent stated in this Agreement or in a
separate written statement (the “Midwest Disclosure Statement”). 

Midwest hereby represents,
warrants and covenants to Northstar, except as stated in the Midwest Disclosure
Statement, as follows: 

4.1 Midwest is a
corporation duly organized, validly existing and in good standing under the laws
of Nebraska, with full power and authority to own the respective properties
which it now owns; and is qualified or licensed to conduct its business and is
in good standing in all states where such qualifications or licensing is
required. 

4.2 The total number of
shares of classes of capital stock which Midwest is authorized to issue is
140,000,000 shares of common stock with a par value of $0.001 per share, with
120,000,000 shares of voting common stock and 20,000,000 shares of non-voting
common stock authorized, and 10,000,000 shares of preferred stock, of which
2,000,000 shares of Convertible Series A Preferred Stock have been authorized
with a par value of $0.001 per share and 1,000,000 shares of Convertible Series
B Preferred Stock have been authorized with a par value of $0.001 per share. As
of the date hereof, there are 74,159 shares of Convertible Series A Preferred
Stock issued and outstanding, 102,669 shares of Convertible Series B Preferred
Stock issued and outstanding, and 13,167,654 shares of voting common stock
issued and outstanding and no shares of non-voting common stock are issued or
outstanding. The total number of warrants outstanding is 1,179, which warrants
are exercisable through December 31, 2016 for an aggregate 11,790 shares of
Midwest voting common stock at an exercise price of $6.50 per share. All of the
foregoing issued and outstanding shares have been duly issued, and are fully
paid and non-assessable. Midwest has no outstanding options, warrants or other
rights to purchase, or subscribe to, or securities convertible into or
exchangeable for any shares of capital stock other than as set forth in the
Midwest Disclosure Statement. The shares to be issued in connection with the
Merger, upon issuance, shall be duly and validly issued, fully paid and
nonassessable. 

The subsidiaries of Midwest
are each an association, corporation, or other entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation or association; each has the power and authority to lease its
properties and to carry on its business as now being conducted and is qualified
to do business; and each holds or shall hold all licenses, franchises, permits
or other governmental authorizations required to enable it to conduct its business or own its properties
in every jurisdiction in which it currently conducts business or owns property
and where the failure to do so would have a material adverse effect on the
business of the subsidiary. All outstanding shares of capital stock of each
subsidiary are duly and validly authorized and issued, fully paid and
nonassessable. Midwest directly or indirectly owns all of the issued and
outstanding capital stock of such subsidiaries. Acquisition was formed solely to
effectuate this Agreement and has minimal assets and no liabilities.

7 

4.3 Midwest and Acquisition
have complete and unrestricted power to enter into and, upon the appropriate
approvals as required by law, to consummate the transactions contemplated by
this Agreement. None of Midwest and its subsidiaries has any liability or
obligation to pay any fee or commission to any broker, agent or finder with
respect to the transactions contemplated hereby. 

4.4 Neither the making of
nor the compliance with the terms and provisions of this Agreement and
consummation of the transactions contemplated herein by Midwest will conflict
with or result in a breach or violation of the articles of incorporation or
bylaws of Midwest as amended to date or the articles of incorporation or bylaws
of Acquisition. 

4.5 The execution, delivery
and performance of this Agreement has been duly authorized and approved by the
Board of Directors of Midwest and the Board of Directors and the sole
shareholder of Acquisition. This Agreement has been duly executed and delivered
by each of Midwest and Acquisition, and, assuming the due authorization,
execution and delivery hereof by Northstar, constitutes a valid and legally
binding agreement of each of Midwest and Acquisition, enforceable against
Midwest and Acquisition in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
creditors’ rights and remedies generally, and subject, as to enforceability, to
general principles of equity, including principles of commercial reasonableness,
good faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity).

4.6 Midwest has delivered
to Northstar its audited consolidated financial statements for the year ended
December 31, 2014. Also, Midwest has delivered to Northstar its consolidated
financial statements for the quarter ended June 30, 2015. All such statements,
herein sometimes called “Midwest
Financial Statements”, are
complete and correct in all material respects and, together with the notes to
these financial statements, present fairly the financial position and results of
operations of Midwest for the period included and have been prepared in
accordance with GAAP. 

4.7 Since December 31,
2014, there has not been any material adverse change in the business or
condition, financial or otherwise, of Midwest and its subsidiaries taken as a
whole, including any material loss or damages to any of its assets, properties
or rights from that shown on the Midwest Financial Statements. 

4.8 Midwest has delivered
to Northstar a listing of all pending legal proceedings involving Midwest and
its consolidated subsidiaries as set forth in the Midwest Disclosure Statement
and, except for these proceedings, there are no legal proceedings pending, or to
the knowledge of the officers of Midwest, threatened against Midwest or
affecting any of its assets or properties and Midwest is not in any material
breach or violation of or default under any contract or instrument to which
Midwest is a party, and no event has occurred which with the lapse of time or
action by a third party could result in a material breach or violation of or
default by Midwest under any contract or other instrument to which Midwest is a
party or by which it or any of its properties may be bound or affected, or under
its articles of incorporation or bylaws, or any court order, statute, ruling or
regulation applicable to Midwest. The execution, delivery and performance of
this Agreement by Midwest will not with the lapse of time or action by a third
party result in a material breach or violation of or default by Midwest under
any contract or other instrument to which Midwest is a party or by which it or
any of its properties may be bound of affected, or under its articles of
incorporation or bylaws, or any court order, statute, ruling or regulation
applicable to Midwest. 

4.9 Other than as set forth
in the Midwest Disclosure Statement, Midwest shall not enter into or consummate
any transactions prior to the Effective Date other than in the ordinary course
of business and will pay no dividend, or increase the compensation of officers
and will enter into no agreement or transaction which would adversely affect its
financial condition. 

4.10 Midwest is not a party
to any contract performable in the future except insurance policies, customary agent contracts, normal reinsurance
agreements, and those which will not adversely affect it. 

8 

4.11 The shareholders of
Midwest are not required to approve the issuance of Midwest shares pursuant to
this Agreement. 

4.12 Midwest has duly filed
all reports required to be filed by it under the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, (collectively, the
“Federal Securities
Laws”). To the knowledge of
Midwest, no such reports, or any reports sent to the shareholders of Midwest
generally, contained any untrue statement of material fact or omitted to state
any material fact required to be stated therein or necessary to make the
statements in such report, in light of the circumstances and time under which
they were made, not misleading. 

4.13 The representations
and warranties of Midwest shall be true and correct as of the date hereof and as
of the Effective Date. 

4.14 Midwest has delivered
to Northstar a complete and correct list of names and positions of all of the
employees of Midwest and their current hourly wages or monthly salaries and
other compensation. Midwest has complied with all legal requirements relating to
the employment of labor, including ERISA, continuation coverage requirements
with respect to group health plans, and those relating to wages, hours,
collective bargaining, unemployment compensation, worker’s compensation, equal
employment opportunity, age and disability discrimination, immigration control
and the payment and withholding of taxes. No reportable event, within the
meaning of Title IV of ERISA, has occurred and is continuing with respect to any
“employee benefit plan” or “multiemployer plan” (as those terms are defined in
ERISA) maintained by Midwest. Each employee benefit plan and multiemployer plan
has been administered in compliance with all legal requirements, included ERISA,
and has been administered in compliance with the terms of such plans. No
prohibited transaction, within the meaning of Title I of ERISA, has occurred
with respect to any such employee benefit plan or multiemployer plan, and no
material accumulated funding deficiency (as defined in Title I of ERISA) or
withdrawal liability (as defined in Title IV of ERISA) exists with respect to
any such employee benefit plan or multiemployer plan. With respect to each
employee benefit plan or multiemployer plan, all reports, returns, notices and
other documentation that are required to have been filed or furnished with the
IRS, the DOL or any other governmental entity, or to the participants or
beneficiaries of such employee benefit plan or multiemployer plan (or their
representative) have been filed or furnished on a timely basis. There is no
pending or, to the knowledge of Midwest, threatened litigation by, on behalf of
or against any employee benefit plan or multiemployer plan by any participant or
former participant (or beneficiary thereof) in such employee benefit plan or
multiemployer plan or otherwise involving any such employee benefit plan or
multiemployer plan (other than routine claims for benefits), and, to the
knowledge of Midwest, no set of circumstances exists that may reasonably give
rise to litigation, against Midwest, any officer, director, or the fiduciaries
of the plans. All of the foregoing plans that are subject to Section 409A of the
Code are in compliance with the requirements of such Code section and
regulations and other guidance thereunder. No Midwest common stock or other
security, or other affiliates and no real property is held in trust or otherwise
set aside for funding benefit obligations under any of the foregoing plans.

4.15 No representation or
warranty by Midwest in this Agreement, the Midwest Disclosure Statement or any
certificate delivered pursuant hereto contains any untrue statement of a
material fact or omits to state any material fact necessary to make such
representation or warranty not misleading. 

4.16 Midwest agrees that
all rights to indemnification now existing in favor of the employees, agents,
directors or officers of Northstar and its subsidiaries, as provided in the
articles of incorporation or bylaws or otherwise in effect on the date hereof
shall survive the transactions contemplated hereby in accordance with their
terms and Midwest expressly assumes such indemnification obligations of
Northstar. 

9 

ARTICLE V

Obligations of the Parties
Pending the Effective Date 

5.1 This Agreement shall be
duly submitted to the shareholders of Northstar for the purpose of
considering and acting upon this Agreement in the manner required by law
at a special meeting of shareholders on a date selected by Northstar, such date
to be the earliest practicable date after the proxy statement may first be sent
to shareholders of Northstar without objection by applicable governmental
authorities. Midwest will furnish to Northstar the information relating to
Midwest required by the Federal Securities Laws to be included in the proxy
statement. Midwest represents and warrants that at the time of the shareholders’
special meeting of Northstar, the proxy statement, insofar as it relates to
Midwest and contains information furnished by Midwest specifically for use in
such proxy statement, (a) will comply in all material respects with the
provisions of the Federal Securities Laws and (b) will not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. Northstar represents
and warrants that at the time of the Northstar shareholder special meeting, the
proxy statement, insofar as it relates to Northstar and contains information
furnished by Northstar specifically for use in such proxy statement, will not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. The Board
of Directors of Northstar, subject to its fiduciary obligations to shareholders,
shall use its commercially reasonable best efforts to obtain the requisite
approval of their respective shareholders of this Agreement and the transactions
contemplated hereby. Midwest and Northstar shall take all reasonable and
necessary steps and actions to comply with and to secure Northstar’s shareholder
approval of this Agreement and the transactions contemplated hereby as may be
required by applicable law. 

As promptly as practicable
after the execution of this Agreement, Midwest will prepare and file with the
Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-4 (the “Registration Statement”)
covering the issuance of Midwest shares in the Merger. Midwest and Northstar
will use their commercially reasonable best efforts to have or cause the
Registration Statement to become effective as promptly as practicable, and will
take any action required to be taken under any applicable federal or state
securities laws in connection with the issuance of shares of Midwest voting
common stock in the Merger. Midwest will use all reasonable efforts to cause the
Registration Statement to remain effective through the Effective Date.

Midwest will use its
commercially reasonable best efforts to obtain all necessary state securities
laws or “blue sky” permits, approvals and registrations in connection with the
issuance of the Midwest voting common stock in the Merger. 

As promptly as practicable
after the Registration Statement shall have become effective, Northstar will
mail a notice of special meeting to its shareholders entitled to notice of and
to vote at its shareholders’ special meeting. 

If at any time prior to the
Effective Date any event or circumstance relating to Northstar or any of its
affiliates, or its or their respective officers or directors should be
discovered by Northstar that should be set forth in an amendment to the
Registration Statement, Northstar will promptly inform Midwest, and Midwest will
undertake to amend or supplement the Registration Statement and the prospectus
contained therein accordingly. 

If at any time prior to the
Effective Date any event or circumstance relating to Midwest or any of its
affiliates, or to their respective officers or directors, should be discovered
by Midwest that should be set forth in an amendment to the Registration
Statement, Midwest will promptly inform Northstar, and Midwest will undertake to
amend or supplement the Registration Statement and the prospectus contained
therein accordingly. 

No amendment or supplement
to the Registration Statement will be made by Midwest without prior consultation
with Northstar. Each party will advise the other parties promptly after it
receives notice thereof of the time when the Registration Statement has become
effective or any supplement or amendment has been filed, the issuance of any
stop order suspending the effectiveness of the Registration Statement, the
suspension of the qualification of Midwest voting common stock issuable in
connection with the Merger for offering or sale in any jurisdiction, any request
by the staff of the Commission for amendment of the Registration Statement or
the proxy statement, the receipt from the staff of the Commission of comments
thereon or any request by the staff of the Commission for additional information
with respect thereto. 

10 

5.2 At all times prior to
the Effective Date, but during regular business hours, each party will permit
the other to examine its books and records and the books and records of its
affiliates and will furnish copies thereof on request. It is recognized that,
during the performance of this Agreement, each party may provide the other
parties with information that is confidential or proprietary in nature.
During the term of this Agreement, and for four years following the termination
of this Agreement, the recipient of such information shall protect such
information from disclosure to persons, other than members of its own or
affiliated organizations and its professional advisors, in the same manner as it
protects its own confidential or proprietary information from unauthorized
disclosure and shall not use such information to the competitive detriment of
the disclosing party. In addition, if this Agreement is terminated for any
reason, each party shall promptly return or cause to be returned all documents
or other written records of such confidential or proprietary information
together with all copies of such writings and, in addition, shall destroy or
shall maintain the information with the standard of care that is exercised with
respect to its own confidential or proprietary information. No information shall
be considered confidential or proprietary if it is (a) information already in
the possession of the party to whom disclosure is made, (b) information acquired
by the party to whom the disclosure is made from other sources, or (c)
information in the public domain or generally available to interested persons or
which at a later date passes into the public domain or becomes available to the
party to whom disclosure is made without any wrongdoing by the party or any of
its affiliates or any third party to whom the disclosure is made. 

5.3 Northstar and Midwest
shall promptly provide each other with information as to any significant
developments in the performance of this Agreement, and shall promptly notify the
other if it discovers that any of its representations, warranties and covenants
contained in this Agreement or in any document delivered in connection with this
Agreement was not true and correct in all material respects or became untrue or
incorrect in any material respect. 

5.4 All parties to this
Agreement shall take all such action as may be reasonably necessary and
appropriate and shall use their commercially reasonable best efforts in order to
consummate the transactions contemplated hereby as promptly as practicable.

ARTICLE VI

Conditions Precedent to
the Consummation of the Merger 

The following are
conditions precedent to the consummation of the Agreement on or before the
Effective Date: 

6.1 Midwest, Acquisition
and Northstar shall have performed and complied with all of their respective
obligations hereunder which are to be complied with or performed on or before
the Effective Date and Northstar and Midwest shall provide one another at the
Closing with a certificate to the effect that such party has performed each of
the acts and undertakings required to be performed by it on or before the
Closing Date pursuant to the terms of this Agreement. 

6.2 This Agreement and the
transactions contemplated herein shall have been duly and validly authorized,
approved and adopted, at a special meeting of the shareholders of Northstar duly
and properly called for such purpose in accordance with the applicable law.

6.3 No action, suit or
proceeding shall have been instituted or shall have been threatened before any
court or other governmental body or by any public authority to restrain, enjoin
or prohibit the transactions contemplated herein, or which might subject any of
the parties hereto or their directors or officers to any material liability,
fine, forfeiture or penalty on the grounds that the transactions contemplated
hereby, the parties hereto or their directors or officers, have violated any
applicable law or regulation, or have otherwise acted improperly in connection
with the transactions contemplated hereby, and the parties hereto have been
advised by counsel that, in the opinion of such counsel, such action, suit or
proceeding raises substantial questions of law or fact which could reasonably be
decided adversely to any party hereto or its directors or officers. 

6.4 All actions,
proceedings, instruments and documents required to carry out this Agreement and
the transactions contemplated hereby and the form and substance of all legal
proceedings and related matters shall have been approved by counsel for Midwest
and Northstar. 

11 

6.5 The representations and
warranties by Midwest and Northstar in this Agreement shall be true as though
such representations and warranties had been made or given on and as of the
Effective Date, except to the extent that such representations and
warranties may be untrue on and as of the Effective Date because of (1) changes
caused by transactions suggested or approved in writing by Midwest; or (2)
events or changes (which shall not, in the aggregate, have materially and
adversely affected the business, assets, or financial condition of Northstar or
Midwest) during or arising after the date of this Agreement. 

6.6 Northstar shall have
furnished Midwest with: 

	             	(1)	  	a certified copy of a
      resolution or resolutions duly adopted by the Board of Directors of
      Northstar approving this Agreement and the transactions contemplated by it
      and directing the submission thereof to a vote of the shareholders of
      Northstar and Acquisition; and
		 
		(2)		a certified copy of a
      resolution or resolutions duly adopted by a majority of all of the classes
      of outstanding shares of Northstar capital stock approving this Agreement
      and the transactions contemplated by it.

6.7 Midwest shall furnish
Northstar with: 

	             	(1)	  	a certified copy of a
      resolution or resolutions duly adopted by the Board of Directors of
      Midwest and the Board of Directors and sole shareholder of Acquisition,
      approving this Agreement and the transactions contemplated by
  it.

6.8 Midwest and Northstar
shall approve and file the Articles of Merger, consistent with this Agreement,
for the transactions with the requisite governmental authorities. 

ARTICLE
VII
Termination and Abandonment 

7.1 Anything contained in
this Agreement to the contrary notwithstanding, the Agreement may be terminated
and abandoned at any time (whether before or after the approval and adoption
thereof by the shareholders of Northstar prior to the Effective Date:

	             	(a)	  	By mutual consent of
      Midwest and Northstar;
		 
		(b)		By Midwest or
      Northstar, if any condition set forth in Article VI relating to the other
      party has not been met or has not been waived;
		 
		(c)		By Midwest or
      Northstar, if any suit, action or other proceeding shall be pending or
      threatened by the federal or a state government before any court or
      governmental agency, in which it is sought to restrain, prohibit or
      otherwise affect the consummation of the transactions contemplated
      hereby;
		 
		(d)		By any party, if
      there is discovered any material error, misstatement or omission in the
      representations and warranties of another party; or
		 
		(e)		By Midwest if more
      than 2.5% of the shares of Northstar are properly perfected as to rights
      to dissent to the Merger; or
		 
		(f)		By any party if the
      Effective Date is not within 180 days from the date
  hereof.

7.2 Any of the terms or
conditions of this Agreement may be waived at any time by the party which is
entitled to the benefit thereof, by action taken by its board of directors
provided; however, that such action shall be taken only if, in the judgment of
the board of directors taking the action, such waiver will not have a material
adverse effect on the benefits intended under this Agreement to the party
waiving such term or condition. 

12 

ARTICLE
VIII
Termination of Representation and
Warranties and Certain Agreements

8.1 The respective
representations, warranties, covenants and agreements of the parties hereto,
shall expire with, and be terminated and extinguished by the Effective Date. No
party shall be under any liability whatsoever with respect to any such
representation, warranty, covenant or agreement which does not so survive, it
being intended that the sole remedy of the parties for a breach of any such
representation, warranty, covenant or agreement shall be to elect not to proceed
with the Closing if such breach has resulted in the failure to satisfy a
condition precedent to such party’s obligation to consummate the transactions
contemplated hereby. 

ARTICLE
IX
Miscellaneous 

9.1 This Agreement embodies
the entire agreement among the parties, and there have been and are no
agreements, representations or warranties among the parties other than those set
forth herein or those provided for herein. 

9.2 To facilitate the
execution of this Agreement, any number of counterparts hereof may be executed,
and each such counterpart shall be deemed to be an original instrument, but all
such counterparts together shall constitute but one instrument. Electronic
signatures shall constitute manual signatures. 

9.3 Each of the parties
hereto will pay its own fees and expenses incurred in connection with the
transactions contemplated by this Agreement. Midwest and Northstar each
represent to the others that it has not employed any investment bankers,
brokers, finders, or intermediaries in connection with the transaction
contemplated hereby who might be entitled to any fee or other payment from
Northstar or Midwest or any subsidiary of any of them upon consummation of the
transactions contemplated by this Agreement. 

9.4 All parties to this
Agreement agree that if it becomes necessary or desirable to execute further
instruments or to make such other assurances as are deemed necessary, the party
requested to do so will use its best efforts to provide such executed
instruments or do all things necessary or proper to carry out the purpose of
this Agreement. 

9.5 This Agreement may be
amended upon approval of the board of directors of each party provided that the
shares issuable hereunder shall not be amended without approval of the requisite
shareholders of Northstar. 

9.6 Any notices, requests,
or other communications required or permitted hereunder shall be delivered
personally or sent by overnight courier service, fees prepaid, addressed as
follows: 

	To
      Midwest or Acquisition:	To
      Northstar:
	 
	Midwest Holding Inc.	Northstar Financial Corp.
	2900
      South 70th Street, Suite 400	3800
      American Boulevard West, Suite 910
	Lincoln, NE 68506	Bloomington, MN 55431
	Attn: Mark A. Oliver	Attn: Chief Executive Officer
	Chief Executive Officer	
	 
	with
      copies to:	
	 
	Jones & Keller, P.C.	
	1999
      Broadway, Suite 3150	
	Denver, CO 80202	
	Attn: Reid A. Godbolt, Esq.	

or such other addresses as
shall be furnished in writing by any party, and any such notice or communication
shall be deemed to have been given as of the
date received. 

13 

9.7 No press release or
public statement will be issued relating to the transactions contemplated by
this Agreement without prior approval of Midwest and Northstar. However, either
Midwest or Northstar may issue at any time any press release or other public
statement it believes on the advice of its counsel it is obligated to issue to
avoid liability under the law relating to disclosures, but the party issuing
such press release or public statement shall make a reasonable effort to give
the other party prior notice of and opportunity to participate in such release
or statement. 

9.8 The parties have
participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this Agreement. Any
reference to any federal, state, local, or foreign statute or law shall be
deemed also to refer to all rules and regulations promulgated thereunder, unless
the context otherwise requires. The word “including” shall mean including
without limitation. 

9.9 The Exhibits and
Schedules identified in this Agreement are incorporated herein by reference and
made a part hereof. 

9.10 This Agreement shall
be governed by and construed in accordance with the domestic laws of the State
of Minnesota without giving effect to any choice or conflict of law provision or
rule (whether of the State of Minnesota or any other jurisdiction).

9.11 If any provision of
this Agreement is held invalid or unenforceable by any court of competent
jurisdiction, the other provisions of this Agreement will remain in full force
and effect. Any provision of this Agreement held invalid or unenforceable only
in part or degree will remain in full force and effect to the extent not held
invalid or unenforceable.

Signature Page
Follows.

14 

IN WITNESS WHEREOF, the
parties have set their signatures this 18th day of December,
2015.

	 	MIDWEST HOLDING INC.
			 
		By:	/s/ Mark A. Oliver	 
	 	Name: Mark A. Oliver
		Title: Chief Executive
      Officer
		 	 
		 	 
		NORTHSTAR FINANCIAL
  CORP.
		 	 
		By:  	/s/ Mark A. Oliver	 
		Name: Mark A.
      Oliver
		Title: Chief Executive
      Officer
		 		
		 		
		MIDWEST ACQUISITION MINNESOTA,
INC.	 
		 		
		By:	/s/ Mark A.
      Oliver	 
		Name: Mark A. Oliver
		Title: Chief Executive
  Officer

15 

EXHIBIT A 

Articles of
Merger
Northstar Financial Corp. 
Midwest Holding Inc.
and
Midwest Acquisition Minnesota, Inc.

Pursuant to the provisions
of the Minnesota Business Corporation Act, the undersigned corporations adopt
the following Articles of Merger: 

First: In accordance with
the Minnesota Business Corporation Act, a Plan and Agreement of Merger has been
approved, adopted, certified, executed and acknowledged by the undersigned
corporations: 

(1) Northstar Financial
Corp., a corporation duly organized under the laws of the State of Minnesota;

(2) Midwest Holding Inc., a
corporation duly organized under the laws of the State of Nebraska; and

(3) Midwest Acquisition
Minnesota, Inc., a corporation duly organized under the laws of the State of
Minnesota.

Second: As a result of an
agreement of merger, Midwest Acquisition Minnesota, Inc. will merge with and
into Northstar Financial Corp. effective as of the time of filing of this
Statement of Merger with the Minnesota Secretary of State. Northstar Financial
Corp. will be the corporation surviving the merger. 

Third: The articles of
incorporation of Northstar Financial Corp. shall be the articles of
incorporation for the surviving corporation. 

Fourth: The executed Plan
and Agreement of Merger is on file at Northstar Financial Corp.’s offices at
3800 American Boulevard West, Suite 910, Bloomington, Minnesota
55431.

Fifth: A copy of the Plan
and Agreement of Merger will be furnished by Northstar Financial Corp., on
request and without cost, to any shareholder of any corporation that is a party
to the merger. 

Dated this _______ day of
____________________, 2016. 

	 	MIDWEST HOLDING INC.
			 
		By:	   	 
	 	Name: Mark A. Oliver
		Title: Chief Executive
      Officer
		 	 
		 	 
		NORTHSTAR FINANCIAL
  CORP.
		 	 
		By:	 	 
		Name:	  	 
		Title:		 
		 		
		 		
		MIDWEST ACQUISITION MINNESOTA,
  INC.
		 		
		By:		 
		Name: Mark A. Oliver
		Title: Chief Executive
  Officer

16

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