Document:

EXHIBIT 4.2

 

LANTRONIX, INC.

INDUCEMENT RESTRICTED STOCK UNIT AWARD AGREEMENT

 

As an inducement material
to the hiring of ____________ (the “Grantee”) as __________________, Lantronix, Inc., a Delaware corporation (the “Company”),
hereby grants to the Grantee an award (the “Award”) of the number of restricted stock units set forth below (the “RSUs”).
This Award is subject to all of the terms and conditions set forth in this Inducement Restricted Stock Unit (the “Inducement
Agreement”). This Award is not issued pursuant to the Company’s Amended & Restated 2010 Stock Incentive Plan
or any other equity incentive plan of the Company.

 

1.                 
Grant of Restricted Stock Unit. Effective as of ____________ (the “Grant Date”), the Company hereby grants
to the Grantee an award of _______ RSUs, subject to the terms and conditions in this Inducement Agreement.

 

2.                 
Company’s Obligation. Each RSU represents the right to receive one share (each, a “Share”) of the
Company’s common stock, par value $0.0001 per share (“Common Stock”) on the applicable vesting date. Unless
and until the RSUs vest, the Grantee will have no right to receive Shares under such RSUs. Prior to actual distribution of Shares
pursuant to any vested RSUs, such RSUs will represent an unsecured obligation of the Company, payable (if at all) only from the
general assets of the Company.

 

3.                 
Vesting Schedule. The RSUs awarded by this Agreement shall vest in accordance with the following schedule: [INSERT
VESTING SCHEDULE].

 

4.                 
Forfeiture and Acceleration on Certain Terminations of Employment. If the Grantee ceases to be a service provider
to the Company (i.e., employee or consultant) for any or no reason prior to vesting, the unvested RSUs awarded by this Inducement
Agreement will thereupon be forfeited at no cost to the Company except as otherwise provided in this Section 4.

 

(a)              
The RSUs, to the extent then outstanding and unvested, will vest in full if a Change in Control (as defined in the Offer Letter
dated _________) occurs and, at any time within sixty (60) days before or one (1) year after the Change in Control,
the Grantee’s employment is terminated by the Company without Cause or by the Grantee for Good Reason, subject to the Grantee’s
execution and non-revocation of a release of claims in a form provided by the Company and resignation by the Grantee from any
Company-affiliated board positions.

 

5.                 
Payment after Vesting. Any RSUs that vest in accordance with the terms hereof will be paid to the Grantee (or in
the event of the Grantee’s death, to his estate) in Shares no later than March 15th of the calendar year following the
calendar year in which such RSUs vest.

 

6.                 
Tax Liability and Withholding. The Grantee shall be required to pay to the Company, and the Company shall have the
right to deduct from any compensation paid to the Grantee pursuant to this Inducement Agreement, the amount of any required withholding
taxes in respect of the RSUs and to take all such other action as the Administrator deems necessary to satisfy all obligations
for the payment of such withholding taxes. The Administrator may permit the Grantee to satisfy any federal, state or local tax
withholding obligation by any of the following means, or by a combination of such means:

 

(a)              
tendering a cash payment.

 

(b)              
authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable or deliverable
to the Grantee as a result of the vesting of the Restricted Stock Units; provided, however, that no shares of Common Stock shall
be withheld with a value exceeding the minimum amount of tax required to be withheld by law.

 

(c)              
delivering to the Company previously owned and unencumbered shares of Common Stock.

 

 

 

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7.                 
Payments after Death. Any distribution or delivery to be made to the Grantee under this Agreement will, if the Grantee
is then deceased, be made to the administrator or executor of the Grantee’s estate. Any such administrator or executor must
furnish the Company with (i) written notice of his or her status as transferee, and (ii) evidence satisfactory to the
Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.

 

8.                 
Rights as Stockholder. Neither the Grantee nor any person claiming under or through the Grantee will have any of
the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until certificates
representing such Shares will have been issued, recorded on the records of the Company or its transfer agents or registrars, and
delivered to the Grantee or Grantee’s broker.

 

9.                 
Administration of RSUs. Subject to the provisions of this Inducement Agreement, the Compensation Committee of the
Board of Directors of the Company (the “Administrator”) will have the authority, in its discretion: (i) to construe
and interpret the terms of this Inducement Agreement; (ii) to modify or amend each Award (subject to Section 15 of this
Inducement Agreement); and (iii) to make all other determinations deemed necessary or advisable for administering this Inducement
Agreement.

 

10.             
Adjustments; Merger or Change in Control.

 

(a)              
Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities,
or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of
the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential
benefits intended to be made available under this Inducement Agreement, will adjust the number and class of Shares that may be
delivered upon vesting of the RSUs.

 

(b)              
Dissolution or Liquidation. To the extent not previously settled, this Award shall terminate immediately prior to
the dissolution or liquidation of the Company.

 

(c)              
Change in Control. Subject to Section 4(a), in the event of a Change in Control, the Award will be treated as
the Administrator determines in accordance with the authorizations presented herein, including, without limitation, that the Award
will be assumed or an equivalent award or right substituted by the successor corporation or a parent or subsidiary of the successor
corporation (the “Successor Corporation”). In the event that the Successor Corporation does not assume or substitute
for the Award, the RSUs will fully vest. For the purposes of this subsection (c), the Award will be considered assumed if,
following the Change in Control, the Award confers the right to receive, for each Share subject to the Award immediately prior
to the Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change
in Control by holders of the Company’s Common Stock for each Share held on the effective date of the transaction (and if
holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the Change in Control is not solely common stock of the Successor
Corporation, the Administrator may, with the consent of the Successor Corporation, provide for the consideration to be received
upon vesting of the RSUs, for each Share subject to such Award, to be solely common stock of the Successor Corporation equal in
fair market value to the per share consideration received by holders of Common Stock in the Change in Control. If the Company is
a party to a Change in Control, then the RSUs will be subject to the provisions of this paragraph, provided that any action such
taken must either (a) preserve the exemption of Award from Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), or (b) comply with Code Section 409A (by way of example, if the Award is determined to be nonqualified
deferred compensation subject to Section 409A, the settlement described above in connection with a Change in Control shall
be made on the settlement date specified in this Inducement Agreement, provided that settlement may be accelerated in accordance
with Treasury Regulation Section 1.409A-3(j)(4)).

 

11.             
No Effect on Employment. The Grantee’s employment with the Company is on an at-will basis only. Accordingly,
nothing in this Inducement Agreement confers upon Grantee any right with respect to continuing the Grantee’s relationship
as an employee of the Company, nor will this Inducement Agreement interfere in any way with the Grantee’s right or the Company’s
right to terminate such relationship at any time, with or without cause, to the extent permitted by applicable laws.

 

 

 

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12.             
Grant is Not Transferable. Except to the limited extent provided in paragraph 6, this grant and the rights and
privileges conferred hereby will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law
or otherwise) and will not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, assign,
pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale
under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will
become null and void.

 

13.             
Binding Agreement. Subject to the limitation on the transferability of this grant contained herein, this Agreement
will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties
hereto.

 

14.             
Amendment. The Administrator may at any time amend this Inducement Agreement; provided, however, that no amendment
of this Inducement Agreement will impair the rights of the Grantee, unless mutually agreed otherwise between the Grantee and the
Administrator, which agreement must be in writing and signed by the Grantee and the Company.

 

15.             
Additional Conditions to Issuance of Stock. If at any time the Company will determine, in its discretion, that the
listing, registration or qualification of the Shares upon any securities exchange or under any state or federal law, or the consent
or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the
Grantee (or his estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval
will have been effected or obtained free of any conditions not acceptable to the Company. The Company will make all reasonable
efforts to meet the requirements of any such state or federal law or securities exchange and to obtain any such consent or approval
of any such governmental authority.

 

16.             
Code Section 409A. Notwithstanding anything in this Inducement Agreement to the contrary, this Inducement Agreement
is intended to comply with the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4),
promulgated under Section 409A of the Code. Notwithstanding the foregoing, if it is determined that the Award fails to satisfy
the requirements of the short-term deferral rule and is otherwise determined to be nonqualified deferred compensation subject to
Section 409A, and if the Grantee is a “Specified Employee” (within the meaning set forth in Section 409A(a)(2)(B)(i)
of the Code) as of the date of his “separation from service” (within the meaning of Treasury Regulation Section 1.409A-1(h)
and without regard to any alternative definition thereunder), then the issuance of any shares that would otherwise be made upon
the date of the separation from service or within the first six (6) months thereafter will not be made on the originally scheduled
date(s) and will instead be issued in a lump sum on the date that is six (6) months and one day after the date of the separation
from service, with the balance of the shares issued thereafter in accordance with the original vesting and issuance schedule set
forth above, but if and only if such delay in the issuance of the shares is necessary to avoid the imposition of adverse taxation
in respect of the shares under Section 409A of the Code. Each installment of shares that vests is intended to constitute a
“separate payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2).

 

17.             
Governing Law. This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard
to its choice-of-law provisions).

 

[Signature page follows.]

 

 

 

 

 

 

 

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By your signature
and the signature of the Company’s representative below, you and the Company agree that this Award is granted under and
governed by the terms and conditions of the Plan and this Agreement. Grantee has reviewed the Plan and this Agreement in their
entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions
of the Plan and this Agreement. Grantee hereby agrees to accept as binding, conclusive and final all decisions or interpretations
of the Administrator upon any questions relating to the Plan and this Agreement. Grantee further agrees to notify the Company
upon any change in the residence address indicated below.

 

	GRANTEE	LANTRONIX, INC.
	 	 
	Signature:     ___________________________	Signature:     ___________________________
	Print Name:     __________________________	Print Name:     __________________________
	Date:     _______________________________	Title:     _______________________________
	 	Date:     _______________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	4TONIX PHARMACEUTICALS HOLDING CORP. 8-K

 

Exhibit 10.01

 

Execution Version

 

PURCHASE AGREEMENT

 

PURCHASE AGREEMENT
(the “Agreement”), dated as of September 3, 2020, by and between TONIX PHARMACEUTICALS HOLDING CORP.,
a Nevada corporation, (the “Company”), LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability
company (the “Investor”).

 

WHEREAS: 

 

Subject to the terms
and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to buy from the
Company, up to Thirty Million Dollars ($30,000,000) of the Company’s common stock, $0.001 par value per share (the “Common
Stock”). The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase Shares.”

 

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 the Investor hereby agree as follows:

 

1.       CERTAIN
DEFINITIONS. 

 

For purposes of this
Agreement, the following terms shall have the following meanings:

 

(a)       “Accelerated
Purchase Date” means, with respect to an Accelerated Purchase made pursuant to Section 2(b) hereof, the Business
Day immediately following the applicable Regular Purchase Date with respect to the corresponding Regular Purchase referred to in
clause (i) of the second sentence of Section 2(b) hereof.

 

(b)       “Accelerated
Purchase Floor Price” means, with respect to an Accelerated Purchase made pursuant to Section 2(b) hereof, $0.20,
which shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar
transaction and, effective upon the consummation of any such reorganization, recapitalization, non-cash dividend, stock split or
other similar transaction, the Accelerated Purchase Floor Price shall mean the lower of (i) the adjusted price and (ii)
$0.50.

 

(c)       “Accelerated
Purchase Minimum Price Threshold” means, with respect to an Accelerated Purchase made pursuant to Section 2(b)
hereof, the minimum per share price threshold set forth by the Company (if any) in the applicable Accelerated Purchase Notice.

 

(d)       “Accelerated
Purchase Notice” means, with respect to an Accelerated Purchase made pursuant to Section 2(b) hereof, an irrevocable
written notice from the Company to the Investor directing the Investor to purchase the number of Purchase Shares specified by the
Company therein as the Accelerated Purchase Share Amount to be purchased by the Investor (such specified Accelerated Purchase Share
Amount subject to adjustment in accordance with Section 2(b) hereof as necessary to give effect to the Purchase Share amount
limitations applicable to such Accelerated Purchase Share Amount as set forth in this Agreement) at the applicable Accelerated
Purchase Price on the applicable Accelerated Purchase Date for such Accelerated Purchase.

 

     

     

    

 

(e)       “Accelerated
Purchase Price” means, with respect to an Accelerated Purchase made pursuant to Section 2(b) hereof, ninety-seven
percent (97%) of the lower of (i) the VWAP for the period beginning at 9:30:01 a.m., Eastern time, on the applicable Accelerated
Purchase Date, or such other time publicly announced by the Principal Market as the official open (or commencement) of trading
on the Principal Market on such applicable Accelerated Purchase Date (the “Accelerated Purchase Commencement Time”),
and ending at the earliest of (A) 4:00:00 p.m., Eastern time, on such applicable Accelerated Purchase Date, or such other time
publicly announced by the Principal Market as the official close of trading on the Principal Market on such applicable Accelerated
Purchase Date, (B) such time, from and after the Accelerated Purchase Commencement Time for such Accelerated Purchase, that the
total number (or volume) of shares of Common Stock traded on the Principal Market has exceeded the applicable Accelerated Purchase
Share Volume Maximum, and (C) such time, from and after the Accelerated Purchase Commencement Time for such Accelerated Purchase,
that the Sale Price has fallen below the applicable Accelerated Purchase Minimum Price Threshold (if any) (such earliest of (i)(A),
(i)(B) and (i)(C) above, the “Accelerated Purchase Termination Time”), and (ii) the Closing Sale Price of the
Common Stock on such applicable Accelerated Purchase Date (to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction).

 

(f)       “Accelerated
Purchase Share Amount” means, with respect to an Accelerated Purchase made pursuant to Section 2(b) hereof, the
number of Purchase Shares directed by the Company to be purchased by the Investor in an applicable Accelerated Purchase Notice,
which number of Purchase Shares shall not exceed the lesser of (i) 300% of the number of Purchase Shares directed by the Company
to be purchased by the Investor pursuant to the corresponding Regular Purchase referred to in clause (i)(A) of the second sentence
of Section 2(b) hereof (such corresponding Regular Purchase being subject to the applicable Regular Purchase Share Limit)
and (ii) an amount equal to (A) the Accelerated Purchase Share Percentage multiplied by (B) the total number (or volume) of shares
of Common Stock traded on the Principal Market during the period on the applicable Accelerated Purchase Date beginning at the Accelerated
Purchase Commencement Time for such Accelerated Purchase and ending at the Accelerated Purchase Termination Time for such Accelerated
Purchase; provided, however, that that the parties may mutually agree to increase the Accelerated Purchase Share
Amount applicable to any Accelerated Purchase.

 

(g)       “Accelerated
Purchase Share Percentage” means, with respect to an Accelerated Purchase made pursuant to Section 2(b) hereof,
thirty percent (30%).

 

(h)       “Accelerated
Purchase Share Volume Maximum” means, with respect to an Accelerated Purchase made pursuant to Section 2(b) hereof,
a number of shares of Common Stock equal to (i) the number of Purchase Shares specified by the Company in the applicable Accelerated
Purchase Notice as the Accelerated Purchase Share Amount to be purchased by the Investor in such Accelerated Purchase, divided
by (ii) the Accelerated Purchase Share Percentage (to be appropriately adjusted for any applicable reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction).

 

(i)       “Additional
Accelerated Purchase Date” means, with respect to an Additional Accelerated Purchase made pursuant to Section 2(c)
hereof, the Business Day (i) that is the Accelerated Purchase Date with respect to the corresponding Accelerated Purchase referred
to in clause (i) of the proviso in the second sentence of Section 2(c) hereof and (ii) on which the Investor receives, prior
to 1:00 p.m., Eastern time, on such Business Day, a valid Additional Accelerated Purchase Notice for such Additional Accelerated
Purchase in accordance with this Agreement.

 

(j)       “Additional
Accelerated Purchase Minimum Price Threshold” means, with respect to an Additional Accelerated Purchase made pursuant
to Section 2(c) hereof, the minimum per share price threshold (if any) set forth by the Company in the applicable Additional
Accelerated Purchase Notice.

 

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(k)       “Additional
Accelerated Purchase Notice” means, with respect to an Additional Accelerated Purchase made pursuant to Section 2(c)
hereof, an irrevocable written notice from the Company to the Investor directing the Investor to purchase the number of Purchase
Shares specified by the Company therein as the Additional Accelerated Purchase Share Amount to be purchased by the Investor (such
specified Additional Accelerated Purchase Share Amount subject to adjustment in accordance with Section 2(c) hereof as necessary
to give effect to the Purchase Share amount limitations applicable to such Additional Accelerated Purchase Share Amount as set
forth in this Agreement) at the applicable Additional Accelerated Purchase Price on the applicable Additional Accelerated Purchase
Date for such Additional Accelerated Purchase.

 

(l)       “Additional
Accelerated Purchase Price” means, with respect to an Additional Accelerated Purchase made pursuant to Section 2(c)
hereof, ninety-seven percent (97%) of the lower of (i) the VWAP for the period on the applicable Additional Accelerated Purchase
Date, beginning at the latest of (A) the applicable Accelerated Purchase Termination Time with respect to the corresponding Accelerated
Purchase referred to in clause (i) of the proviso in the second sentence of Section 2(c) hereof on such Additional Accelerated
Purchase Date, (B) the applicable Additional Accelerated Purchase Termination Time with respect to the most recently completed
prior Additional Accelerated Purchase on such Additional Accelerated Purchase Date, as applicable, and (C) the time at which all
Purchase Shares subject to all prior Accelerated Purchases and Additional Accelerated Purchases (as applicable), including, without
limitation, those that have been effected on the same Business Day as the applicable Additional Accelerated Purchase Date with
respect to which the applicable Additional Accelerated Purchase relates, have theretofore been received by the Investor as DWAC
Shares in accordance with this Agreement (such latest of (i)(A), (i)(B) and (i)(C) above, the “Additional Accelerated
Purchase Commencement Time”), and ending at the earliest of (X) 4:00 p.m., Eastern time, on such Additional Accelerated
Purchase Date, or such other time publicly announced by the Principal Market as the official close of trading on the Principal
Market on such Additional Accelerated Purchase Date, (Y) such time, from and after the Additional Accelerated Purchase Commencement
Time for such Additional Accelerated Purchase, that total number (or volume) of shares of Common Stock traded on the Principal
Market has exceeded the applicable Additional Accelerated Purchase Share Volume Maximum, and (Z) such time, from and after the
Additional Accelerated Purchase Commencement Time for such Additional Accelerated Purchase, that the Sale Price has fallen below
the applicable Additional Accelerated Purchase Minimum Price Threshold (if any) (such earliest of (i)(X), (i)(Y) and (i)(Z) above,
the “Additional Accelerated Purchase Termination Time”), and (ii) the Closing Sale Price of the Common Stock
on such Additional Accelerated Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend,
stock split, reverse stock split or other similar transaction).

 

(m)       “Additional
Accelerated Purchase Share Amount” means, with respect to an Additional Accelerated Purchase made pursuant to Section
2(c) hereof, the number of Purchase Shares directed by the Company to be purchased by the Investor on an Additional Accelerated
Purchase Notice, which number of Purchase Shares shall not exceed the lesser of (i) 300% of the number of Purchase Shares directed
by the Company to be purchased by the Investor pursuant to the corresponding Regular Purchase referred to in clause (i)(A) of the
second sentence of Section 2(b) hereof (such corresponding Regular Purchase being subject to the applicable Regular Purchase
Share Limit) and (ii) an amount equal to (A) the Additional Accelerated Purchase Share Percentage multiplied by (B) the total number
(or volume) of shares of Common Stock traded on the Principal Market during the period on the applicable Additional Accelerated
Purchase Date beginning at the Additional Accelerated Purchase Commencement Time for such Additional Accelerated Purchase and ending
at the Additional Accelerated Purchase Termination Time for such Additional Accelerated Purchase; provided, however,
that that the parties may mutually agree to increase the Additional Accelerated Purchase Share Amount applicable to any Additional
Accelerated Purchase.

 

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(n)       “Additional
Accelerated Purchase Share Percentage” means, with respect to an Additional Accelerated Purchase made pursuant to Section
2(c) hereof, thirty percent (30%).

 

(o)       “Additional
Accelerated Purchase Share Volume Maximum” means, with respect to an Additional Accelerated Purchase made pursuant to
Section 2(c) hereof, a number of shares of Common Stock equal to (i) the number of Purchase Shares specified by the Company
in the applicable Additional Accelerated Purchase Notice as the Additional Accelerated Purchase Share Amount to be purchased by
the Investor in such Additional Accelerated Purchase, divided by (ii) the Additional Accelerated Purchase Share Percentage (to
be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other
similar transaction).

 

(p)       “Alternate
Adjusted Regular Purchase Share Limit” means, with respect to a Regular Purchase made pursuant to Section 2(a)
hereof, the maximum number of Purchase Shares which, taking into account the applicable per share Regular Purchase Price therefor
calculated in accordance with this Agreement, would enable the Company to deliver to the Investor, on the applicable Regular Purchase
Date for such Regular Purchase, a Regular Purchase Notice for a Purchase Amount equal to, or as closely approximating without exceeding,
One Hundred Fifty Thousand Dollars ($150,000).

 

(q)        “Available
Amount” means, initially, Thirty Million Dollars ($30,000,000) in the aggregate, which amount shall be reduced by the
Purchase Amount each time the Investor purchases Purchase Shares pursuant to Section 2 hereof.

 

(r)       “Average
Price” means a price per Purchase Share (rounded to the nearest tenth of a cent) equal to the quotient obtained by dividing
(i) the aggregate gross purchase price paid by the Investor for all Purchase Shares purchased pursuant to this Agreement, by (ii)
the aggregate number of Purchase Shares issued pursuant to this Agreement.

 

(s)       “Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

(t)       “Base
Price” means a price per Purchase Share equal to the sum of (i) the Signing Market Price and (ii) $0.0196 (subject to
adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction
that occurs on or after the date of this Agreement).

 

(u)       “Base
Prospectus” shall have the meaning ascribed to such term in the Registration Rights Agreement.

 

(v)       “Business
Day” means any day on which the Principal Market is open for trading, including any day on which the Principal Market
is open for trading for a period of time less than the customary time.

 

(w)       “Closing
Sale Price” means, for any security as of any date, the last closing sale price for such security on the Principal Market
as reported by the Principal Market.

 

    -4-

     

    

 

(x)       “Confidential
Information” means any information disclosed by either party to the other party, either directly or indirectly, in writing,
orally or by inspection of tangible objects (including, without limitation, documents, prototypes, samples, plant and equipment),
which is designated as “Confidential,” “Proprietary” or some similar designation. Information communicated
orally shall be considered Confidential Information if such information is confirmed in writing as being Confidential Information
within ten (10) Business Days after the initial disclosure. Confidential Information may also include information disclosed to
a disclosing party by third parties. Confidential Information shall not, however, include any information which (i) was publicly
known and made generally available in the public domain prior to the time of disclosure by the disclosing party; (ii) becomes publicly
known and made generally available after disclosure by the disclosing party to the receiving party through no action or inaction
of the receiving party; (iii) is already in the possession of the receiving party without confidential restriction at the time
of disclosure by the disclosing party as shown by the receiving party’s files and records immediately prior to the time of
disclosure; (iv) is obtained by the receiving party from a third party without a breach of such third party’s obligations
of confidentiality; (v) is independently developed by the receiving party without use of or reference to the disclosing party’s
Confidential Information, as shown by documents and other competent evidence in the receiving party’s possession; or (vi)
is required by law to be disclosed by the receiving party, provided that the receiving party gives the disclosing party prompt
written notice of such requirement prior to such disclosure and assistance in obtaining an order protecting the information from
public disclosure.

 

(y)       “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(z)       “DTC”
means The Depository Trust Company, or any successor performing substantially the same function for the Company.

 

(aa)     “DWAC
Shares” means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and
without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified
Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program, or any similar
program hereafter adopted by DTC performing substantially the same function.

 

(bb)     “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

(cc)     “Floor
Price” means, with respect to a Regular Purchase made pursuant to Section 2(a) hereof, $0.10, which shall be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction and, effective upon
the consummation of any such reorganization, recapitalization, non-cash dividend, stock split or other similar transaction, the
Floor Price shall mean the lower of (i) the adjusted price and (ii) $1.00.

 

(dd)     “Fully
Adjusted Regular Purchase Share Limit” means, with respect to any reorganization, recapitalization, non-cash dividend,
stock split or other similar transaction from and after the date of this Agreement, the Regular Purchase Share Limit (as defined
in Section 2(a) hereof) in effect on the applicable date of determination, after giving effect to the full proportionate
adjustment thereto made pursuant to Section 2(a) hereof for or in respect of such reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction.

 

(ee)     “Initial
Prospectus Supplement” shall have the meaning ascribed to such term in the Registration Rights Agreement.

 

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(ff)     “Material
Adverse Effect” means any material adverse effect on (i) the enforceability of any Transaction Document, (ii) the
results of operations, assets, business or financial condition of the Company and its Subsidiaries, taken as a whole, other than
any material adverse effect that resulted primarily from (A) any change in the United States or foreign economies or securities
or financial markets in general that does not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole,
(B) any change that generally affects the industry in which the Company and its Subsidiaries operate that does not have a
disproportionate effect on the Company and its Subsidiaries, taken as a whole, (C) any change arising in connection with earthquakes,
hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities,
acts of war, sabotage or terrorism or military actions existing as of the date hereof, (D) any action taken by the Investor,
its affiliates or its or their successors and assigns with respect to the transactions contemplated by this Agreement, (E) the
effect of any change in applicable laws or accounting rules that does not have a disproportionate effect on the Company and its
Subsidiaries, taken as a whole, or (F) any change resulting from compliance with terms of this Agreement or the consummation
of the transactions contemplated by this Agreement, or (iii) the Company’s ability to perform in any material respect
on a timely basis its obligations under any Transaction Document to be performed as of the date of determination.

 

(gg)     “Maturity
Date” means the first day of the month immediately following the thirty-six (36) month anniversary of the Commencement
Date.

 

(hh)     “Person”
means an individual or entity including but not limited to any limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization and a government or any department or agency thereof.

 

(ii)       “Principal
Market” means The NASDAQ Global Market (or any nationally recognized successor thereto); provided however, that in the
event the Company’s Common Stock is ever listed or traded on The NASDAQ Capital Market, The NASDAQ Global Select Market,
the New York Stock Exchange, the NYSE American, the NYSE Arca or the OTC Bulletin Board (it being understood that as used herein
“OTC Bulletin Board” shall also mean any successor or comparable market quotation system or exchange to the OTC Bulletin
Board such as the OTCQX and OTCQB operated by the OTC Markets Group, Inc.), then the “Principal Market” shall mean
such other market or exchange on which the Company’s Common Stock is then listed or traded or any successor thereto.

 

(jj)     “Prospectus”
shall have the meaning ascribed to such term in the Registration Rights Agreement.

 

(kk)     “Prospectus
Supplement” shall have the meaning ascribed to such term in the Registration Rights Agreement.

 

(ll)     “Purchase
Amount” means, with respect to a Regular Purchase, an Accelerated Purchase or an Additional Accelerated Purchase made
hereunder, as applicable, the portion of the Available Amount to be purchased by the Investor pursuant to Section 2 hereof.

 

(mm)     “Registration
Statement” shall have the meaning ascribed to such term in the Registration Rights Agreement.

 

(nn)     “Regular
Purchase Date” means, with respect to a Regular Purchase made pursuant to Section 2(a) hereof, the Business Day
on which the Investor receives, after 4:00 p.m., Eastern time, but prior to 5:00 p.m., Eastern time, on such Business Day, a valid
Regular Purchase Notice for such Regular Purchase in accordance with this Agreement.

 

(oo)     “Regular
Purchase Notice” means, with respect to a Regular Purchase pursuant to Section 2(a) hereof, an irrevocable written
notice from the Company to the Investor directing the Investor to buy a specified number of Purchase Shares (subject to the Purchase
Share limitations contained in Section 2(a) hereof) at the applicable Regular Purchase Price for such Regular Purchase in
accordance with this Agreement.

 

    -6-

     

    

 

(pp)     “Regular
Purchase Price” means, with respect to a Regular Purchase made pursuant to Section 2(a) hereof, the lower of:
(i) the lowest Sale Price on the applicable Regular Purchase Date for such Regular Purchase and (ii) the arithmetic average of
the three (3) lowest Closing Sale Prices for the Common Stock during the ten (10) consecutive Business Days ending on the Business
Day immediately preceding such Regular Purchase Date for such Regular Purchase (in each case, to be appropriately adjusted for
any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date
of this Agreement).

 

(qq)     “Regular
Purchase Share Limit” means, with respect to a Regular Purchase pursuant to Section 2(a) hereof, Seven Hundred
Fifty Thousand (750,000) Purchase Shares, subject to adjustment as set forth below; provided, however, that (i) the
Regular Purchase Share Limit shall be increased to One Million (1,000,000) Purchase Shares, if the Closing Sale Price of the Common
Stock on the applicable Regular Purchase Date is not below $0.75, and (ii) the Regular Purchase Share Limit shall be increased
to One Million Two Hundred Fifty Thousand (1,250,000) Purchase Shares, if the Closing Sale Price of the Common Stock on the applicable
Regular Purchase Date is not below $1.00 (all of which share and dollar amounts shall be appropriately proportionately adjusted
for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction; provided that if,
after giving effect to the full proportionate adjustment to the Regular Purchase Share Limit therefor, the Fully Adjusted Regular
Purchase Share Limit then in effect would preclude the Company from delivering to the Investor, on a Regular Purchase Date for
a Regular Purchase hereunder, a Regular Purchase Notice for a Purchase Amount equal to or greater than One Hundred Fifty Thousand
Dollars ($150,000) (which shall be determined by multiplying (X) the Fully Adjusted Regular Purchase Share Limit then in effect
on such Regular Purchase Date, by (Y) the applicable Regular Purchase Price per Purchase Share for such Regular Purchase calculated
in accordance with this Agreement), the Regular Purchase Share Limit shall equal the applicable Alternate Adjusted Regular Purchase
Share Limit); and provided, further, however, that that the parties may mutually agree to increase the Regular
Purchase Share Limit applicable to any Regular Purchase; provided that the Investor’s maximum committed obligation
under any single Regular Purchase, other than any Regular Purchase with respect to which an Alternate Adjusted Regular Purchase
Share Limit shall apply, shall not exceed Four Million (4,000,000) Purchase Shares (to be appropriately proportionately adjusted
for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction).

 

(rr)     “Sale
Price” means any trade price for the shares of Common Stock on the Principal Market as reported by the Principal Market.

 

(ss)     “SEC”
means the U.S. Securities and Exchange Commission.

 

(tt)     “Securities”
means, collectively, the Purchase Shares and the Commitment Shares.

 

(uu)    “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(vv)    “Signing
Market Price” means $0.83, representing the official closing price of the Common Stock on The Nasdaq Capital Market (as
reflected on Nasdaq.com) on the trading day immediately preceding the date of this Agreement.

 

(ww)   “Subsidiary”
means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the voting
stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated
under the Securities Act.

 

    -7-

     

    

 

(xx)     “Transaction
Documents” means, collectively, this Agreement and the schedules and exhibits hereto, the Registration Rights Agreement
and the schedules and exhibits thereto, and each of the other agreements, documents, certificates and instruments entered into
or furnished by the parties hereto in connection with the transactions contemplated hereby and thereby.

 

(yy)    “Transfer Agent”
means vStock Transfer, LLC, or such other Person who is then serving as the transfer agent for the Company in respect of the Common
Stock.

 

(zz)     “VWAP”
means in respect of an Accelerated Purchase Date and an Additional Accelerated Purchase Date, as applicable, the volume weighted
average price of the Common Stock on the Principal Market, as reported on the Principal Market.

 

2.        PURCHASE OF COMMON STOCK. 

 

Subject to the terms
and conditions set forth in this Agreement, the Company has the right to sell to the Investor, and the Investor has the obligation
to purchase from the Company, Purchase Shares as follows:

 

(a)       Commencement
of Regular Sales of Common Stock. Upon the satisfaction of all of the conditions set forth in Sections 7 and 8
hereof (the “Commencement” and the date of satisfaction of such conditions the “Commencement Date”),
and thereafter, the Company shall have the right, but not the obligation, to direct the Investor, by its delivery to the Investor
of a Regular Purchase Notice from time to time in accordance with this Agreement, to purchase up to the Regular Purchase Share
Limit at the applicable Regular Purchase Price on the applicable Regular Purchase Date (each such purchase a “Regular
Purchase”). The Company may deliver a Regular Purchase Notice to the Investor as often as every Business Day, so long
as (i) the Closing Sale Price of the Common Stock on such Business Day is not less than the Floor Price and (ii) all Purchase Shares
subject to all prior Regular Purchases have theretofore been received by the Investor as DWAC Shares in accordance with this Agreement.

 

(b)       Accelerated
Purchases. Subject to the terms and conditions of this Agreement, from and after the Commencement Date, in addition to purchases
of Purchase Shares as described in Section 2(a) above, the Company shall also have the right, but not the obligation, to
direct the Investor, by its delivery to the Investor of an Accelerated Purchase Notice from time to time in accordance with this
Agreement, to purchase the applicable Accelerated Purchase Share Amount at the Accelerated Purchase Price on the Accelerated Purchase
Date therefor in accordance with this Agreement (each such purchase, an “Accelerated Purchase”). The Company
may deliver an Accelerated Purchase Notice to the Investor only (i) on a Regular Purchase Date on which (A) the Company also properly
submitted a Regular Purchase Notice for a Regular Purchase of not less than the Regular Purchase Share Limit then in effect and
(B) the Closing Sale Price of the Common Stock is not less than the Accelerated Purchase Floor Price, and (ii) if all Purchase
Shares subject to all Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases prior to the Regular Purchase
Date referred to in clause (i) hereof (as applicable) have theretofore been received by the Investor as DWAC Shares in accordance
with this Agreement. Within one (1) Business Day after completion of each Accelerated Purchase Date for an Accelerated Purchase,
the Investor will provide to the Company a written confirmation of such Accelerated Purchase setting forth the applicable Accelerated
Purchase Share Amount and Accelerated Purchase Price for such Accelerated Purchase (each, an “Accelerated Purchase Confirmation”).

 

    -8-

     

    

 

(c)       Additional
Accelerated Purchases. Subject to the terms and conditions of this Agreement, from and after the Commencement Date, in addition
to purchases of Purchase Shares as described in Section 2(a) and Section 2(b) above, the Company shall also have
the right, but not the obligation, to direct the Investor, by its timely delivery to the Investor of an Additional Accelerated
Purchase Notice on an Additional Accelerated Purchase Date in accordance with this Agreement, to purchase the applicable Additional
Accelerated Purchase Share Amount at the applicable Additional Accelerated Purchase Price therefor in accordance with this Agreement
(each such purchase, an “Additional Accelerated Purchase”). The Company may deliver multiple Additional Accelerated
Purchase Notices to the Investor on an Additional Accelerated Purchase Date only (i) on a Business Day that is also the Accelerated
Purchase Date for an Accelerated Purchase with respect to which each of the conditions set forth in the second sentence of Section
2(b) have been satisfied, and (ii) if all Purchase Shares subject to all prior Regular Purchases, Accelerated Purchases and
Additional Accelerated Purchases, including, without limitation, those that have been effected on the same Business Day as the
applicable Additional Accelerated Purchase Date with respect to which the applicable Additional Accelerated Purchase relates, have
theretofore been received by the Investor as DWAC Shares in accordance with this Agreement. The Investor will provide to the Company
a written confirmation of each Additional Accelerated Purchase on such Additional Accelerated Purchase Date setting forth the applicable
Additional Accelerated Purchase Share Amount and Additional Accelerated Purchase Price for each such Additional Accelerated Purchase
on such Additional Accelerated Purchase Date in the Accelerated Purchase Confirmation for the related Accelerated Purchase as provided
in the last sentence of Section 2(b).

 

(d)       Excess
Share Limitations. If the Company delivers any Regular Purchase Notice for a Purchase Amount in excess of the Regular Purchase
Share Limit, such Regular Purchase Notice shall be void ab initio to the extent of the amount by which the number of Purchase
Shares set forth in such Regular Purchase Notice exceeds the number of Purchase Shares which the Company is permitted to include
in such Regular Purchase Notice in accordance herewith, and the Investor shall have no obligation to purchase such excess Purchase
Shares in respect of such Regular Purchase Notice; provided, however, that the Investor shall remain obligated to
purchase the number of Purchase Shares which the Company is permitted to include in such Regular Purchase Notice. If the Company
delivers any Accelerated Purchase Notice or Additional Accelerated Purchase Notice directing the Investor to purchase an amount
of Purchase Shares that exceeds the Accelerated Purchase Share Amount or Additional Accelerated Purchase Amount, as applicable,
that the Company is then permitted to include in such Accelerated Purchase Notice or Additional Accelerated Purchase Notice, respectively,
such Accelerated Purchase Notice or Additional Accelerated Purchase Notice, as applicable, shall be void ab initio to the
extent of the amount by which the number of Purchase Shares set forth in such Accelerated Purchase Notice or Additional Accelerated
Purchase Notice, as applicable, exceeds the Accelerated Purchase Share Amount or Additional Accelerated Purchase Amount, respectively,
that the Company is then permitted to include in such Accelerated Purchase Notice or Additional Accelerated Purchase Notice, respectively
(which shall be confirmed in an Accelerated Purchase Confirmation), and the Investor shall have no obligation to purchase such
excess Purchase Shares; provided, however, that the Investor shall remain obligated to purchase the Accelerated Purchase
Share Amount or Additional Accelerated Purchase Amount, as applicable, which the Company is permitted to include in such Accelerated
Purchase Notice or Additional Accelerated Purchase Notice, respectively.

 

    -9-

     

    

 

(e)       
Payment for Purchase Shares. For each Regular Purchase, the Investor shall pay to the Company an amount equal to the Purchase
Amount with respect to such Regular Purchase as full payment for such Purchase Shares via wire transfer of immediately available
funds on the same Business Day that the Investor receives such Purchase Shares, if such Purchase Shares are received by the Investor
before 1:00 p.m., Eastern time, or, if such Purchase Shares are received by the Investor after 1:00 p.m., Eastern time, the next
Business Day. For each Accelerated Purchase and each Additional Accelerated Purchase, the Investor shall pay to the Company an
amount equal to the Purchase Amount with respect to such Accelerated Purchase and Additional Accelerated Purchase, respectively,
as full payment for such Purchase Shares via wire transfer of immediately available funds on the second (2nd) Business
Day following the date that the Investor receives such Purchase Shares. If the Company or the Transfer Agent shall fail for any
reason or for no reason to electronically transfer any Purchase Shares as DWAC Shares in respect of a Regular Purchase, an Accelerated
Purchase or an Additional Accelerated Purchase (as applicable) within two (2) Business Days following the receipt by the Company
of the Regular Purchase Price, Accelerated Purchase Price or Additional Accelerated Purchase Price (as applicable) therefor in
compliance with this Section 2(e), and if on or after such Business Day the Investor purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Investor of such Purchase Shares that the Investor
anticipated receiving from the Company in respect of such Regular Purchase, Accelerated Purchase or Additional Accelerated Purchase,
then the Company shall, within two (2) Business Days after the Investor’s request, either (i) pay cash to the Investor in
an amount equal to the Investor’s total purchase price (including brokerage commissions, if any) for the shares of Common
Stock so purchased (the “Cover Price”), at which point the Company’s obligation to deliver such Purchase
Shares as DWAC Shares shall terminate, or (ii) promptly honor its obligation to deliver to the Investor such Purchase Shares as
DWAC Shares and pay cash to the Investor in an amount equal to the excess (if any) of the Cover Price over the total Purchase Amount
paid by the Investor pursuant to this Agreement for all of the Purchase Shares to be purchased by the Investor in connection with
such Regular Purchase, Accelerated Purchase or Additional Accelerated Purchase (as applicable). The Company shall not issue any
fraction of a share of Common Stock upon any Regular Purchase, Accelerated Purchase or Additional Accelerated Purchase. If the
issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share
of Common Stock up or down to the nearest whole share. All payments made under this Agreement shall be made in lawful money of
the United States of America or wire transfer of immediately available funds to such account as the Company may from time to time
designate by written notice in accordance with the provisions of this Agreement. Whenever any amount expressed to be due by the
terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next succeeding day
that is a Business Day.

 

(f)        Compliance
with Rules of Principal Market.

 

(i)       Exchange
Cap. Subject to Section 2(f)(ii) below, the Company shall not issue or sell any shares of Common Stock pursuant to this
Agreement, and the Investor shall not purchase or acquire any shares of Common Stock pursuant to this Agreement, to the extent
that after giving effect thereto, the aggregate number of shares of Common Stock that would be issued pursuant to this Agreement
and the transactions contemplated hereby would exceed 26,042,434 (representing 19.99% of the shares of Common Stock issued and
outstanding immediately prior to the execution of this Agreement), which number of shares shall be (i) reduced, on a share-for-share
basis, by the number of shares of Common Stock issued or issuable pursuant to any transaction or series of transactions that may
be aggregated with the transactions contemplated by this Agreement under applicable rules of The Nasdaq Stock Market and (ii) appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs after
the date of this Agreement (such maximum number of shares, the “Exchange Cap”), unless and until the Company
elects to solicit stockholder approval of the issuance of Common Stock as contemplated by this Agreement, and the stockholders
of the Company have in fact approved the issuance of Common Stock as contemplated by this Agreement in accordance with the applicable
rules of The Nasdaq Stock Market. For the avoidance of doubt, the Company may, but shall be under no obligation to, request its
stockholders to approve the issuance of Common Stock as contemplated by this Agreement; provided, that if stockholder approval
is not obtained in accordance with this Section 2(f)(i), the Exchange Cap shall be applicable for all purposes of this Agreement
and the transactions contemplated hereby at all times during the term of this Agreement (except as set forth in Section 2(f)(ii)
below).

 

    -10-

     

    

 

(ii)       At-Market
Transaction. Notwithstanding Section 2(f)(i) above, the Exchange Cap shall not be applicable for any purposes of this
Agreement and the transactions contemplated hereby, solely to the extent that (and only for so long as) the Average Price shall
equal or exceed the Base Price (it being hereby acknowledged and agreed that the Exchange Cap shall be applicable for all purposes
of this Agreement and the transactions contemplated hereby at all other times during the term of this Agreement, unless the stockholder
approval referred to in Section 2(f)(i) is obtained). The parties acknowledge and agree that the Signing Market Price used
to determine the Base Price hereunder represents the lower of (i) the official closing price of the Common Stock on The Nasdaq
Capital Market (as reflected on Nasdaq.com) on the trading day immediately preceding the date of this Agreement and (ii) the average
official closing price of the Common Stock on The Nasdaq Capital Market (as reflected on Nasdaq.com) for the five (5) consecutive
trading days ending on the Trading Day immediately preceding the date of this Agreement.

 

(iii)       General.
The Company shall not issue any shares of Common Stock pursuant to this Agreement if such issuance would reasonably be expected
to result in (A) a violation of the Securities Act or (B) a breach of the rules and regulations of The Nasdaq Stock Market. The
provisions of this Section 2(f) shall be implemented in a manner otherwise than in strict conformity with the terms hereof
only if necessary to ensure compliance with the Securities Act and the rules and regulations of The Nasdaq Stock Market.

 

(g)       Beneficial
Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement, the Company shall not issue
or sell, and the Investor shall not purchase or acquire, any shares of Common Stock under this Agreement which, when
aggregated with all other shares of Common Stock then beneficially owned by the Investor and its affiliates (as calculated pursuant
to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Investor
of more than 4.99% of the then issued and outstanding shares of Common Stock (the “Beneficial Ownership Limitation”).
Upon the written or oral request of the Investor, the Company shall promptly (but not later than 24 hours) confirm orally or in
writing to the Investor the number of shares of Common Stock then outstanding. The Investor, upon written notice to the Company,
may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(g), provided that the Beneficial
Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock pursuant to this Agreement and the provisions of this Section 2(g) shall
continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after
such written notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which
may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The Investor and the Company shall each cooperate in good faith
in the determinations required hereby and the application hereof. The Investor’s written certification to the Company of
the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof hereunder at any time, shall be conclusive
with respect to the applicability thereof and such result absent manifest error.

 

3.       INVESTOR’S
REPRESENTATIONS AND WARRANTIES.

 

The Investor represents
and warrants to the Company that as of the date hereof and as of the Commencement Date:

 

(a)        Organization,
Authority. Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization, with the requisite power and authority to enter into and to consummate the transactions contemplated by this
Agreement and otherwise to carry out its obligations hereunder and thereunder

 

    -11-

     

    

 

(b)       Accredited
Investor Status. The Investor is an “accredited investor” as that term is defined in Rule 501(a)(3) of Regulation
D promulgated under the Securities Act.

 

(c)       Information.
The Investor understands that its investment in the Securities involves a high degree of risk. The Investor (i) is able to bear
the economic risk of an investment in the Securities including a total loss thereof, (ii) has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and risks of the proposed investment in the Securities
and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning the financial
condition and business of the Company and other matters related to an investment in the Securities. Neither such inquiries nor
any other due diligence investigations conducted by the Investor or its representatives shall modify, amend or affect the Investor’s
right to rely on the Company’s representations and warranties contained in Section 4 below. The Investor has sought such
accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition
of the Securities.

 

(e)       No
Governmental Review. The Investor understands that no U.S. federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of an investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)       Validity;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and is a
valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability
to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(g)       Residency.
The Investor is a resident of the State of Illinois.

 

(h)       No
Short Selling. The Investor represents and warrants to the Company that at no time prior to the date of this Agreement has
any of the Investor, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly,
any (i) “short sale” (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock
or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock.

 

4.       REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The Company represents
and warrants to the Investor that, except as set forth in the disclosure schedules attached hereto, which exceptions shall be deemed
to be a part of the representations and warranties made hereunder, as of the date hereof and as of the Commencement Date:

 

(a)       Organization
and Qualification. The Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite corporate
power and authority to own and use its properties and assets and to carry on its business as currently conducted.  Neither
the Company nor any of its Subsidiaries is in violation or default of any of the provisions of its respective certificate or articles
of incorporation, bylaws or other organizational or charter documents.  Each of the Company and its Subsidiaries 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 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. The Company has no Subsidiaries except as set forth on Exhibit 21.01 to the
Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

 

    -12-

     

    

 

(b)       Authorization;
Enforcement; Validity. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement, the Registration Rights Agreement and each of the other Transaction Documents, and to issue the Securities
in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by the Company and
the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the issuance of the Commitment
Shares (as defined below in Section 5(e)) and the reservation for issuance and the issuance of the Purchase Shares issuable under
this Agreement, have been duly authorized by the Company’s Board of Directors and no further consent or authorization is required
by the Company, its Board of Directors or its stockholders, (iii) this Agreement has been, and each other Transaction Document
shall be on the Commencement Date, duly executed and delivered by the Company and (iv) each of this Agreement and the Registration
Rights Agreement constitutes, and each other Transaction Document upon its execution on behalf of the Company, shall constitute,
the valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except as such
enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies. The Board of
Directors of the Company has approved resolutions substantially in the form set forth in Exhibit B attached hereto
(the “Signing Resolutions”) to authorize this Agreement, the Registration Rights Agreement and the transactions
contemplated hereby and thereby. The Signing Resolutions are valid, in full force and effect and have not been modified or supplemented
in any respect. The Company has delivered to the Investor a true copy of the minutes of a meeting of the Company’s Board
of Directors at which the Signing Resolutions were unanimously adopted by the Board of Directors. Except as set forth in this Agreement,
no other approvals or consents of the Company’s Board of Directors, any authorized committee thereof, and/or stockholders
is necessary under applicable laws and the Company’s Articles of Incorporation and/or Bylaws to authorize the execution and
delivery of this Agreement, the Registration Rights Agreement or any of the transactions contemplated hereby or thereby, including,
but not limited to, the issuance of the Securities.

 

(c)       Capitalization.
As of the date hereof, the authorized capital stock of the Company is set forth in the Company’s Quarterly Report on Form
10-Q for the quarter ended June 30, 2020. Except as disclosed in the SEC Documents (as defined below), (i) no shares of the Company’s
capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by
the Company, (ii) there are no outstanding debt securities, (iii) there are no outstanding options, warrants, scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares
of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any
of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, (iv) there
are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of
their securities under the Securities Act (except this Agreement and the Registration Rights Agreement), (v) there are no outstanding
securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there
are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become
bound to redeem a security of the Company or any of its Subsidiaries, (vi) there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement and (vii) the Company
does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.
The Company has furnished to the Investor true and correct copies of the Company’s Articles of Incorporation, as amended and as
in effect on the date hereof (the “Articles of Incorporation”), and the Company’s Bylaws, as amended and as in
effect on the date hereof (the “Bylaws”), and summaries of the terms of all securities convertible into or exercisable
for Common Stock, if any, and copies of any documents containing the material rights of the holders thereof in respect thereto.

 

    -13-

     

    

 

(d)       Issuance
of Securities. Upon issuance and payment therefor in accordance with the terms and conditions of this Agreement, the Purchase
Shares shall be validly issued, fully paid and nonassessable and free from all taxes, liens, charges, restrictions, rights of first
refusal and preemptive rights with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder
of Common Stock. Upon issuance in accordance with the terms and conditions of this Agreement, the Commitment Shares shall be validly
issued, fully paid and nonassessable and free from all taxes, liens, charges, restrictions, rights of first refusal and preemptive
rights with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. 30,000,000
shares of Common Stock have been duly authorized and reserved for issuance upon purchase under this Agreement as Purchase Shares.

 

(e)       No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Commitment Shares
and the reservation for issuance and issuance of the Purchase Shares) will not (i) result in a violation of the Articles of Incorporation,
any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the Bylaws
or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which the Company or any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations and the rules and regulations of the Principal Market applicable
to the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is bound
or affected, except in the case of conflicts, defaults, terminations, amendments, accelerations, cancellations and violations under
clause (ii), which would not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor its Subsidiaries
is in violation of any term of or in default under its Articles of Incorporation, any Certificate of Designation, Preferences and
Rights of any outstanding series of preferred stock of the Company or Bylaws or their organizational charter or bylaws, respectively.
Neither the Company nor any of its Subsidiaries is in violation of any term of or is in default under any material contract, agreement,
mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company
or its Subsidiaries, except for possible conflicts, defaults, terminations or amendments that would not reasonably be expected
to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be conducted,
in violation of any law, ordinance, regulation of any governmental entity, except for possible violations, the sanctions for which
either individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect. Except as specifically
contemplated by this Agreement and as required under the Securities Act or applicable state securities laws and the rules and regulations
of the Principal Market, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration
with, any court or governmental agency or any regulatory or self-regulatory agency in order for it to execute, deliver or perform
any of its obligations under or contemplated by the Transaction Documents in accordance with the terms hereof or thereof. Except
as set forth elsewhere in this Agreement, all consents, authorizations, orders, filings and registrations which the Company is
required to obtain pursuant to the preceding sentence shall be obtained or effected on or prior to the Commencement Date.

 

    -14-

     

    

 

(f)       SEC
Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company with the SEC under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, and under
the Securities Act, in each case during the 12-month period immediately preceding the date of this Agreement (the foregoing materials,
including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC
Documents”), on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Documents
prior to the expiration of any such extension.  As of their respective dates, the SEC Documents complied in all material
respects with the requirements of the Securities Act and the Exchange Act, as applicable. None of the SEC Documents, 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 financial
statements of the Company included in the SEC Documents comply in all material respects with applicable accounting requirements
and the rules and regulations of the SEC 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. Except as set forth in the SEC Documents, the Company has received no notices or correspondence from
the SEC for the one year preceding the date hereof. The SEC has not commenced any enforcement proceedings against the Company or
any of its Subsidiaries.

 

(g)       Absence
of Certain Changes. Except as disclosed in the SEC Documents, since December 31, 2019, (i) there has been no material adverse
change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries,(ii) the
Company and its Subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect, direct
or contingent, including without limitation any losses or interference with its business from fire, explosion, flood, earthquakes,
accident or other calamity, whether or not covered by insurance, or from any strike, labor dispute or court or governmental action,
order or decree, that are material, individually or in the aggregate, to the Company and its Subsidiaries, considered as one entity,
or has entered into any transactions not in the ordinary course of business; (iii) there has not been any material disruption,
material delay or other material adverse change in (A) the development of any of the Company’s product candidates, (B) the
anticipated timeline of pre-clinical or clinical trials to support the development of any of the Company’s product candidates,
or (C) the recruitment of candidates for clinical trials to support the development of any of the Company’s product candidates,
in each case as a result of the recent outbreak of COVID-19, or as a result of any measures intended to contain the outbreak of
COVID-19 imposed by any federal, state, local or foreign government or government agency in any country or region in which the
Company, or any of its agents, consultants, advisors or vendors, has assets or properties or conducts business, including, without
limitation, any limitations, curtailments, suspensions or closures of businesses, business offices or establishments, schools,
properties and other public areas due to quarantines, curfews, travel restrictions, workplace controls, “stay at home”
orders, social distancing requirements or guidelines or other public gathering restrictions or limitations; and (iv) there
has not been any material decrease in the capital stock or any material increase in any short-term or long-term indebtedness of
the Company or its Subsidiaries and there has been no dividend or distribution of any kind declared, paid or made by the Company
or, except for dividends paid to the Company or other Subsidiaries, by any of the Company’s Subsidiaries on any class of
capital stock, or any repurchase or redemption by the Company or any of its Subsidiaries of any class of capital stock.. The Company
has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy Law nor
does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary
bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as they become
due.

 

    -15-

     

    

 

(h)       Absence
of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government
agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened
against or affecting the Company, the Common Stock or any of the Company’s or its Subsidiaries’ officers or directors in their
capacities as such, which could reasonably be expected to have a Material Adverse Effect.

 

(i)       Acknowledgment
Regarding Investor’s Status. The Company acknowledges and agrees that the Investor is acting solely in the capacity of arm’s
length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further
acknowledges that the Investor is not 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 hereby and thereby and any advice given by the Investor
or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and
thereby is merely incidental to the Investor’s purchase of the Securities. The Company further represents to the Investor that
the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Company
and its representatives and advisors.

 

(j)       No
Integrated Offering. Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any 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 in a manner that would require stockholder
approval pursuant to the rules of the Principal Market on which any of the securities of the Company are listed or designated.
The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Principal Market.

 

(k)       Intellectual
Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all material trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted.
None of the Company’s material trademarks, trade names, service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other intellectual property rights
have expired or terminated, or, by the terms and conditions thereof, could expire or terminate within two years from the date of
this Agreement. The Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries
of any material trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service
marks, service mark registrations, trade secret or other similar rights of others, or of any such development of similar or identical
trade secrets or technical information by others, and there is no claim, action or proceeding being made or brought against, or
to the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents,
patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement,
which could reasonably be expected to have a Material Adverse Effect.

 

    -16-

     

    

 

(l)       Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and local
laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or
wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance
with all terms and conditions of any such permit, license or approval, except where, in each of the three foregoing clauses, the
failure to so comply could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(m)       Title.
The Company and its 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 its Subsidiaries, in each case
free and clear of all liens, encumbrances and defects (“Liens”) and, except for 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 its Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor
subject to penalties.  Any real property and facilities held under lease by the Company and its Subsidiaries are held
by them under valid, subsisting and enforceable leases with which the Company and its Subsidiaries are in compliance with such
exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by
the Company and its Subsidiaries.

 

(n)       Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company
and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance coverage sought or
applied for and neither the Company nor any such Subsidiary has any reason to believe that it will 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 at a cost that would not materially and adversely affect the condition, financial or otherwise, or the earnings,
business or operations of the Company and its Subsidiaries, taken as a whole.

 

(o)       Regulatory
Permits. The Company possesses all licenses, certificates, registrations, authorizations and permits required by the U.S. Food
and Drug Administration (“FDA”) and other governmental or regulatory authorities performing functions similar
to those performed by the FDA and have made all declarations and filings with, the appropriate local, state, federal or foreign
governmental or regulatory agencies or bodies (including, without limitation, those administered by the FDA or by any foreign,
federal, state or local governmental or regulatory authority performing functions similar to those performed by the FDA) that are
necessary for the ownership or lease of their respective properties or the conduct of their respective businesses as described
in the Registration Statement and the Prospectus (collectively, the “Material Permits”) except where any failures
to possess or make the same would not, singularly or in the aggregate, have a Material Adverse Effect. The Company is in compliance
with all such Material Permits, including with all conditions and limitations on the commercial rights granted by such Material
Permits; all such Material Permits are valid and in full force and effect, except where the validity or failure to be in full force
and effect would not, singularly or in the aggregate, have a Material Adverse Effect. The Company has not received notification
of any revocation, modification, suspension, termination or invalidation (or proceedings related thereto) of any such Material
Permit and the Company has no reason to believe that any such Material Permit will not be renewed.

 

    -17-

     

    

 

(p)       Tax
Status. The Company and each of its Subsidiaries has made or filed all federal and state income and all other material tax
returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company
and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported
taxes) and 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, except those being contested in good faith and has set aside on its books provision
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the
officers of the Company know of no basis for any such claim.

 

(q)       Transactions
With Affiliates.  Except as set forth
in the SEC Documents, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees
of the Company 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, 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 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.

 

(r)       Application
of Takeover Protections. The Company and its board of directors have taken or will take prior to the Commencement Date 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 Articles of Incorporation or the
laws of the state of its incorporation which is or could become applicable to the Investor as a result of the transactions contemplated
by this Agreement, including, without limitation, the Company’s issuance of the Securities and the Investor’s ownership of the
Securities.

 

(s)        Disclosure.  Except
with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents that will be timely
publicly disclosed by the Company, the Company confirms that neither it nor any other Person acting on its behalf has provided
the Investor or its agents or counsel with any information that it believes constitutes or might constitute material, non-public
information which is not otherwise disclosed in the Registration Statement or the SEC Documents.   The Company understands
and confirms that the Investor will rely on the foregoing representation in effecting purchases and sales of securities of the
Company.  All of the disclosure furnished by or on behalf of the Company to the Investor regarding the Company, its business
and the transactions contemplated hereby, including the disclosure schedules to this Agreement, is true and correct in all material
respects 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 the Investor neither makes nor has made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in Section 3 hereof.

 

(t)       Foreign
Corrupt Practices.  Neither the Company,
nor to the knowledge of the Company, any agent or other Person acting on behalf of the Company, 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 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 the Foreign Corrupt Practices Act of 1977, as amended.

 

    -18-

     

    

 

(u)       Registration
Statement. The Company has prepared and filed the Registration Statement with the SEC in accordance with the Securities Act.
The Registration Statement was declared effective by order of the SEC on April 17, 2020. The Registration Statement is effective
pursuant to the Securities Act and available for the issuance of the Securities thereunder, and the Company has not received any
written notice that the SEC has issued or intends to issue a stop order or other similar order with respect to the Registration
Statement or the Prospectus or that the SEC otherwise has (i) suspended or withdrawn the effectiveness of the Registration
Statement or (ii) issued any order preventing or suspending the use of the Prospectus or any Prospectus Supplement, in either
case, either temporarily or permanently or intends or has threatened in writing to do so. The “Plan of Distribution”
section of the Prospectus permits the issuance of the Securities under the terms of this Agreement. At the time the Registration
Statement and any amendments thereto became effective, at the date of this Agreement and at each deemed effective date thereof
pursuant to Rule 430B(f)(2) of the Securities Act, the Registration Statement and any amendments thereto complied and will
comply in all material respects with 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 Base Prospectus and any Prospectus Supplement thereto, at the time such Base Prospectus or such Prospectus
Supplement thereto was issued and on the Commencement Date, complied and will comply in all material respects with 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; provided
that this representation and warranty does not apply to statements in or omissions from any Prospectus Supplement made in reliance
upon and in conformity with information relating to the Investor furnished to the Company in writing by or on behalf of the Investor
expressly for use therein. The Company meets all of the requirements for the use of a registration statement on Form S-3 pursuant
to the Securities Act for the offering and sale of the Securities contemplated by this Agreement in reliance on General Instruction
I.B.1. of Form S-3, and the SEC has not notified the Company of any objection to the use of the form of the Registration Statement
pursuant to Rule 401(g)(1) of the Securities Act. The Company hereby confirms that the issuance of the Securities to the Investor
pursuant to this Agreement would not result in non-compliance with the Securities Act or any of the General Instructions to Form
S-3. The Registration Statement, as of its effective date, meets the requirements set forth in Rule 415(a)(1)(x) pursuant to the
Securities Act. At the earliest time after the filing of the Registration Statement that the Company or another offering participant
made a bona fide offer (within the meaning of Rule 164(h)(2) of the Securities Act) relating to any of the Securities, the Company
was not, and as of the date of this Agreement the Company is not, an Ineligible Issuer (as defined in Rule 405 of the Securities
Act). The Company has not distributed any offering material in connection with the offering and sale of any of the Securities,
and, until the Investor does not hold any of the Securities, shall not distribute any offering material in connection with the
offering and sale of any of the Securities, to or by the Investor, in each case, other than the Registration Statement or any amendment
thereto, the Prospectus or any Prospectus Supplement required pursuant to applicable law or the Transaction Documents. The Company
has not made and shall not make an offer relating to the Securities that would constitute a “free writing prospectus”
as defined in Rule 405 under the Securities Act.

 

(v)       DTC
Eligibility. The Company, through the Transfer Agent, currently participates in the DTC Fast Automated Securities Transfer
(FAST) Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities Transfer
(FAST) Program.

 

    -19-

     

    

 

(w)       Sarbanes-Oxley.
The Company is in compliance in all material respects with all provisions of the Sarbanes-Oxley Act of 2002, as amended, which
are applicable to it as of the date hereof.

 

(x)       Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company 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 Investor 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 4(x) that may be due in connection with the
transactions contemplated by the Transaction Documents.

 

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

 

(z)       Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) 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 pursuant to the Exchange Act nor has the Company received any notification that the SEC is currently contemplating
terminating such registration. Except as disclosed in the SEC Documents, the Company has not, in the twelve (12) months preceding
the date hereof, received any notice from any Person to the effect that the Company is not in compliance with the listing or maintenance
requirements of the Principal 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 Principal Market has not commenced any delisting proceedings
against the Company.

 

(aa)     Accountants.
The Company’s accountants are set forth in the SEC Documents and, to the knowledge of the Company, such accountants are an
independent registered public accounting firm as required by the Securities Act.

 

(bb)     No Market
Manipulation. The Company has not, and to its knowledge no Person 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.

 

(cc)     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.

 

(dd)     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, suit 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.

 

    -20-

     

    

 

(ee)     Information
Technology. The Company’s and the Subsidiaries’ information technology assets and equipment, computers, systems,
networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) operate and
perform in all material respects as required in connection with the operation of the business of the Company and the Subsidiaries
as currently conducted. The Company, and the Subsidiaries maintain commercially reasonable controls, policies, procedures, and
safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy
and security of all IT Systems and all personal, personally identifiable, sensitive, confidential or regulated data (“Personal
Data”) processed and stored thereon, and to the knowledge of the Company, there have been no breaches, incidents, violations,
outages, compromises or unauthorized uses of or accesses to same, except for those that have been remedied without material cost
or liability or the duty to notify any other person, nor any incidents under internal review or investigations relating to the
same. The Company and the Subsidiaries are presently in compliance in all material respects with all applicable laws or statutes
and all applicable judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority,
internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection
of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification, except for any such noncompliance
that would not have a Material Adverse Effect.

 

(ff)     Regulatory.
Except as described in the Registration Statement and the Prospectus, as applicable, the Company and its Subsidiaries (i) are and
at all times have been in material compliance with all statutes, rules and regulations applicable to the ownership, testing, development,
manufacture, packaging, processing, use, distribution, marketing, advertising, labeling, promotion, sale, offer for sale, storage,
import, export or disposal of any product manufactured or distributed by the Company including, without limitation the Federal
Food, Drug and Cosmetic Act (21 U.S.C. §301 et seq.), the federal Anti-Kickback Statute (42 U.S.C. §1320a-7b(b)), the
Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical
Health Act of 2009, and the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Affordability
Reconciliation Act of 2010, the regulations promulgated pursuant to such laws, and any successor government programs and comparable
state laws, regulations relating to Good Clinical Practices and Good Laboratory Practices and all other local, state, federal,
national, supranational and foreign laws, manual provisions, policies and administrative guidance relating to the regulation of
the Company (collectively, the “Applicable Laws”); (ii) have not received any notice from
any court or arbitrator or governmental or regulatory authority or third party alleging or asserting noncompliance with any Applicable
Laws or any licenses, exemptions, certificates, approvals, clearances, authorizations, permits, registrations and supplements or
amendments thereto required by any such Applicable Laws (“Authorizations”); (iii) possess all
material Authorizations and such Authorizations are valid and in full force and effect and are not in violation of any term of
any such Authorizations; (iv) have not received written notice of any claim, action, suit, proceeding, hearing, enforcement, investigation
arbitration or other action from any court or arbitrator or governmental or regulatory authority or third party alleging that any
product operation or activity is in violation of any Applicable Laws or Authorizations nor is any such claim, action, suit, proceeding,
hearing, enforcement, investigation, arbitration or other action threatened; (v) have not received any written notice that any
court or arbitrator or governmental or regulatory authority has taken, is taking or intends to take, action to limit, suspend,
materially modify or revoke any Authorizations nor is any such limitation, suspension, modification or revocation threatened; (vi)
have filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records, claims, submissions
and supplements or amendments as required by any Applicable Laws or Authorizations and that all such reports, documents, forms,
notices, applications, records, claims, submissions and supplements or amendments were complete and accurate on the date filed
(or were corrected or supplemented by a subsequent submission); and (vii) are not a party to any corporate integrity agreements,
monitoring agreements, consent decrees, settlement orders, or similar agreements with or imposed by any governmental or regulatory
authority.

 

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(gg)     Benefit
Plans; Labor Matters. Each benefit and compensation plan, agreement, policy and arrangement that is maintained, administered
or contributed to by the Company for current or former employees or directors of, or independent contractors with respect to, the
Company has been maintained in material compliance with its terms and the requirements of any applicable statutes, orders, rules
and regulations, and the Company has complied in all material respects with all applicable statutes, orders, rules and regulations
in regard to such plans, agreements, policies and arrangements. Each stock option granted under any equity incentive plan of the
Company (each, a “Stock Plan”) was granted with a per share exercise price no less than the market price per
common share on the grant date of such option in accordance with the rules of the Principal Market, and no such grant involved
any “back-dating,” “forward-dating” or similar practice with respect to the effective date of such grant;
each such option (i) was granted in compliance in all material respects with Applicable Laws and with the applicable Stock
Plan(s), (ii) was duly approved by the Board of Directors, and (iii) has been properly accounted for in the Company’s
financial statements and disclosed, to the extent required, in the Company’s filings or submissions with the SEC, and the
Principal Market. No labor problem or dispute with the employees of the Company exists or has been threatened in writing, and the
Company is not aware of any existing or threatened labor disturbance by the employees of any of its principal suppliers or contractors,
that would reasonably be expected to have a Material Adverse Effect.

 

(hh)     Material
Agreements. The agreements and documents described in the Registration Statement or Prospectus conform in all material respects
to the descriptions thereof contained or incorporated by reference therein conformed
in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable at the time filed, and were
filed on a timely basis with the Commission and none of such documents contained an untrue statement of a material fact or omitted
to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; any further documents so filed and there are no agreements or other documents required by the Securities
Act and the rules and regulations thereunder to be described in the Prospectus or to be filed with the Commission as exhibits to
the Registration Statement or to be incorporated by reference in the Registration Statement or Prospectus, that have not been so
described or filed or incorporated by reference.

 

(ii)      Compliance
with Healthcare Laws. The tests, studies, and trials conducted by or on behalf of or sponsored by the Company or any of its
subsidiaries were and, if still pending, are being conducted in all material respects in accordance with all applicable Health
Care Laws (as defined below) and standard medical and scientific research protocols, procedures, and controls; none of the Company
or any of its subsidiaries has received any written notice, correspondence, or other written communication from any regulatory
agency or any institutional review board or comparable body requiring or threatening the termination, suspension, or material modification
of any tests, studies, or trials, or commercial distribution, and to the knowledge of the Company and its subsidiaries, there are
no reasonable grounds for the same. Each of the Company and its Subsidiaries has obtained (or caused to be obtained) the informed
consent of each human subject who participated in a test, study, or trial. None of the tests, studies, or trials involved any investigator
who has been disqualified as a clinical investigator. The Company and its directors, officers, employees, and agents are, and at
all times prior hereto have been, in material compliance with, all health care laws and regulations applicable to the Company or
any of its product candidates or activities, including development and testing of pharmaceutical products, kickbacks, recordkeeping,
documentation requirements, the hiring of employees (to the extent governed by Health Care Laws), quality, safety, privacy, security,
licensure, accreditation or any other aspect of developing and testing health care or pharmaceutical products (collectively, “Health
Care Laws”). The Company has not received any notification, correspondence
or any other written or oral communication, including notification of any pending or threatened claim, suit, proceeding, hearing,
enforcement, investigation, arbitration or other action from any governmental authority, including, without limitation, the United
States Food and Drug Administration, the Drug Enforcement Agency, the Centers for Medicare & Medicaid Services, and the U.S.
Department of Health and Human Services Office of Inspector General, of potential or actual non-compliance by, or liability of,
the Company under any Health Care Laws. To the Company’s knowledge, there are no facts or circumstances that would reasonably
be expected to give risk to liability of the Company under any Health Care Laws, except that would not individually or in the aggregate
have a Material Adverse Effect.

 

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(jj)     Shell Company
Status. The Company is not currently, and since October 27, 2011, has not been, an issuer identified in Rule 144(i)(1) under
the Securities Act and has filed with the SEC current “Form 10 information” (as defined in Rule 144(i)(3) under the
Securities Act) at least 12 calendar months prior to the date of this Agreement reflecting its status as an entity that is no longer
an issuer identified in Rule 144(i)(1) under the Securities Act.

 

5.       COVENANTS.

 

(a)       Filing
of Current Report and Initial Prospectus Supplement. The Company agrees that it shall, on the date hereof, file with the SEC
a current report on Form 8-K relating to the transactions contemplated by, and describing the material terms and conditions of,
the Transaction Documents in the form agreed upon by the Investor prior to the date hereof (the “Current Report”).
The Company further agrees that it shall, on the date hereof, file with the SEC the Initial Prospectus Supplement pursuant to Rule
424(b) under the Securities Act, in the form agreed upon by the Investor prior to such filing, specifically relating to the transactions
contemplated by, and describing the material terms and conditions of, the Transaction Documents, containing information previously
omitted at the time of effectiveness of the Registration Statement in reliance on Rule 430B under the Securities Act, and disclosing
all information relating to the transactions contemplated hereby required to be disclosed in the Registration Statement and the
Prospectus as of the date of the Initial Prospectus Supplement, including, without limitation, information required to be disclosed
in the section captioned “Plan of Distribution” in the Prospectus, pursuant to and in accordance with the terms of
the Registration Rights Agreement.

 

(b)       Blue
Sky. The Company shall take all such action, if any, as is reasonably necessary in order to obtain an exemption for or to register
or qualify (i) the issuance of the Commitment Shares and the issuance and sale of the Purchase Shares to the Investor under this
Agreement and (ii) any subsequent resale of the Securities by the Investor, in each case, under applicable securities or “Blue
Sky” laws of the states of the United States in such states as is reasonably requested by the Investor from time to time,
and shall provide evidence of any such action so taken to the Investor.

 

(c)       Listing/DTC.
The Company shall promptly secure the listing of all of the Securities to be issued to the Investor under this Agreement on the
Principal Market (subject to official notice of issuance) and upon each other national securities exchange or automated quotation
system, if any, upon which the Common Stock is then listed, and shall use commercially reasonable efforts to maintain, so long
as any shares of Common Stock shall be so listed, such listing of all such Securities. The Company shall use commercially reasonable
efforts to maintain the listing of the Common Stock, including the Securities, on the Principal Market and shall comply in all
respects with the Company’s reporting, filing and other obligations under the bylaws or rules and regulations of the Principal
Market. Neither the Company nor any of its Subsidiaries shall take any action that would reasonably be expected to result in the
delisting or suspension of the Common Stock, including the Securities, on the Principal Market. The Company shall promptly, and
in no event later than the following Business Day, provide to the Investor copies of any notices it receives from the Principal
Market regarding the continued eligibility of the Common Stock for listing on the Principal Market; provided, however, that the
Company shall not be required to provide the Investor copies of any such notice that the Company reasonably believes constitutes
material non-public information and the Company would not be required to publicly disclose such notice in any report or statement
filed with the SEC under the Exchange Act (including on Form 8-K) or the Securities Act. The Company shall pay all fees and expenses
in connection with satisfying its obligations under this Section 5(c). The Company shall take all action necessary to ensure
that its Common Stock, including the Securities, can be transferred electronically as DWAC Shares.

 

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(d)       Prohibition
of Short Sales and Hedging Transactions. The Investor agrees that beginning on the date of this Agreement and ending on the
date of termination of this Agreement as provided in Section 11, the Investor and its agents, representatives and affiliates shall
not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as such term is defined
in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short
position with respect to the Common Stock.

 

(e)       Issuance
of Commitment Shares. In consideration for the Investor’s execution and delivery of this Agreement, the Company shall
cause to be issued to the Investor a total of 600,000 shares of Common Stock (the “Commitment Shares”) on the
trading day immediately following the date of this Agreement and shall deliver to the Transfer Agent immediately following the
execution of this Agreement the Irrevocable Transfer Agent Instructions with respect to the issuance of such Commitment Shares
pursuant hereto. For the avoidance of doubt, all of the Commitment Shares shall be fully earned as of the date of this Agreement,
whether or not the Commencement shall occur or any Purchase Shares are purchased by the Investor under this Agreement and irrespective
of any subsequent termination of this Agreement.

 

(f)       Due
Diligence; Non-Public Information. The Investor shall have the right, from time to time as the Investor may reasonably deem
appropriate, and upon providing reasonable advance notice to the Company, to perform reasonable due diligence on the Company during
normal business hours. The Company and its officers and employees shall provide information and reasonably cooperate with the Investor
in connection with any reasonable request by the Investor related to the Investor’s due diligence of the Company. Each party hereto
agrees not to disclose any Confidential Information of the other party to any third party and shall not use the Confidential Information
for any purpose other than in connection with, or in furtherance of, the transactions contemplated hereby. Each party hereto acknowledges
that the Confidential Information shall remain the property of the disclosing party and agrees that it shall take all reasonable
measures to protect the secrecy of any Confidential Information disclosed by the other party. The Company confirms that neither
it nor any other Person acting on its behalf shall provide the Investor or its agents or counsel with any information that constitutes
or might constitute material, non-public information, unless a simultaneous public announcement thereof is made by the Company
in the manner contemplated by Regulation FD. In the event of a breach of the foregoing covenant by the Company or any Person acting
on its behalf (as determined in the reasonable good faith judgment of the Investor), in addition to any other remedy provided herein
or in the other Transaction Documents, if the Investor is holding any Securities at the time of the disclosure of material, non-public
information, the Investor shall have the right to make a public disclosure, in the form of a press release, public advertisement
or otherwise, of such material, non-public information without the prior approval by the Company; provided the Investor shall have
first provided notice to the Company that it believes it has received information that constitutes material, non-public information,
the Company shall have at least 48 hours to publicly disclose such material, non-public information prior to any such disclosure
by the Investor or demonstrate to the Investor in writing why such information does not constitute material, non-public information,
and (assuming the Investor and Investor’s counsel disagree with the Company’s determination) the Company shall have
failed to publicly disclose such material, non-public information within such time period. The Investor shall not have any liability
to the Company, any of its Subsidiaries, or any of their respective directors, officers, employees, stockholders or agents, for
any such disclosure. The Company understands and confirms that the Investor shall be relying on the foregoing covenants in effecting
transactions in securities of the Company.

 

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(g)      Purchase
Records. The Investor and the Company shall each maintain records showing the remaining Available Amount at any given time
and the dates and Purchase Amounts for each Regular Purchase, Accelerated Purchase and Additional Accelerated Purchase or shall
use such other method, reasonably satisfactory to the Investor and the Company.

 

(h)
     Taxes. The Company
shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the issuance and delivery of any shares
of Common Stock to the Investor made under this Agreement.

 

(i)       Use
of Proceeds. The Company will use the net proceeds from the offering as described in the Prospectus.

 

(j)       Other
Transactions. The Company shall not enter into, announce or recommend to its stockholders any agreement, plan, arrangement
or transaction in or of which the terms thereof would restrict, materially delay, conflict with or impair the ability or right
of the Company to perform its obligations under the Transaction Documents, including, without limitation, the obligation of the
Company to deliver the Securities to the Investor in accordance with the terms of the Transaction Documents.

 

(k)       No
Aggregation. From and after the date of this Agreement, neither the Company, nor or any of its affiliates will, and the Company
shall use its commercially reasonable efforts to ensure that no Person acting on their behalf will, directly or indirectly, make
any offers or sales of any security or solicit any offers to buy any security, under circumstances that would reasonably be expected
to cause this offering of the Securities by the Company to the Investor to be aggregated with other offerings by the Company in
a manner that would require stockholder approval pursuant to the rules of the Principal Market on which any of the securities of
the Company are listed or designated unless stockholder approval is obtained before the closing of such subsequent transaction
in accordance with the rules of such Principal Market.

 

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(l)       Limitation
on Variable Rate Transactions. From and after the date of this Agreement until the later of (i) the 36-month anniversary of
the date of this Agreement or (ii) the 36-month anniversary of the Commencement Date (if the Commencement has occurred), in either
case irrespective of any earlier termination of this Agreement, 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, other than in connection with an Exempt Issuance. The Investor
shall be entitled to seek injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy
shall be in addition to any right to collect damages, without the necessity of showing economic loss and without any bond or other
security being required. “Common Stock Equivalents” means any securities of the Company or its Subsidiaries
which entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock,
rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise
entitles the holder thereof to receive, Common Stock. “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 or Common Stock Equivalents either (A) at a conversion price, exercise price,
exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the Common Stock at
any time after the initial issuance of such debt or equity securities (other than pursuant to a customary “cashless exercise”
provision), 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 (including, without limitation, any “full ratchet”
or “weighted average” anti-dilution provisions), (ii) issues or sells any debt or equity securities, including without
limitation, Common Stock or Common Stock Equivalents, either (A) at a 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 (B) that is subject to or contains any
put, call, redemption, buy-back, price-reset or other similar provision or mechanism (including, without limitation, a “Black-Scholes”
put or call right) that provides for the issuance of additional debt or equity securities of the Company or the payment of cash
by the Company, or (iii) enters into any agreement, including, but not limited to, an “equity line of credit”, “at-the-market
offering” or other continuous offering or similar offering of Common Stock or Common Stock Equivalents, whereby the Company
may sell Common Stock or Common Stock Equivalents at a future determined price. “Exempt Issuance” means the
issuance of (a) Common Stock or options to employees, officers, directors or vendors of the Company pursuant to any stock or option
plan duly adopted for such purpose, by the Board of Directors or a majority of the members of a committee of directors established
for such purpose, (b) (1) any Securities issued to the Investor pursuant to this Agreement, (2) any securities issued to the Investor
pursuant to any other agreement between the Company and the Investor, (3) any securities issued upon the exercise or exchange of
or conversion of any shares of Common Stock or Common Stock Equivalents held by the Investor at any time, or (4) any securities
issued upon the exercise or exchange of or conversion of any Common Stock Equivalents issued and outstanding on the date of this
Agreement, provided that such securities referred to in this clause (4) 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,
(c) securities issued pursuant to acquisitions or strategic transactions approved by the Board of Directors or a majority of the
members of a committee of directors established for such purpose, which acquisitions or strategic transactions can have a Variable
Rate Transaction component, provided that any such issuance shall only be to a Person (or to the equity holders of a Person) which
is, itself or through its subsidiaries, an operating company or 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, or (d) Common Stock issued pursuant to an “at-the-market offering” by the Company exclusively
through one or more registered broker-dealers acting primarily as agent(s) of the Company pursuant to a written equity distribution
or sales agreement between the Company and such registered broker-dealer(s).

 

6.       TRANSFER
AGENT INSTRUCTIONS.

 

On the date of this
Agreement, the Company shall issue to the Transfer Agent (and any subsequent transfer agent) irrevocable instructions, in the form
substantially similar to those used by the Investor in substantially similar transactions, to issue the Purchase Shares and the
Commitment Shares in accordance with the terms of this Agreement (the “Irrevocable Transfer Agent Instructions”).
All Securities to be issued to or for the benefit of the Investor pursuant to this Agreement shall be issued as DWAC Shares. The
Company represents and warrants to the Investor that no instruction other than the Irrevocable Transfer Agent Instructions referred
to in this Section 6 will be given by the Company to the Transfer Agent with respect to the Securities, and the Securities
shall otherwise be freely transferable on the books and records of the Company. If the Investor effects a sale, assignment or transfer
of the Purchase Shares, the Company shall permit the transfer and shall promptly instruct the Transfer Agent (and any subsequent
transfer agent) to issue DWAC Shares in such name and in such denominations as specified by the Investor to effect such sale, transfer
or assignment. The Company shall take all actions to carry out the intent and accomplish the purposes of this Section 6,
including, without limitation, delivering or causing to be delivered all such legal opinions, consents, certificates, resolutions
and instructions to the Transfer Agent, and any successor transfer agent of the Company, as may be requested from time to time
by the Investor or necessary or desirable to carry out the intent and accomplish the purposes of this Section 6, and all
fees and costs associated therewith shall be borne by the Company.

 

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		7.	CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK.

 

The right of the Company
hereunder to commence sales of the Purchase Shares on the Commencement Date is subject to the satisfaction or, where legally permissible,
the waiver of each of the following conditions:

 

(a)       The
Investor shall have executed each of the Transaction Documents and delivered the same to the Company;

 

(b)       No
stop order with respect to the Registration Statement shall be pending or threatened by the SEC; and

 

(c)       The
representations and warranties of the Investor shall be true and correct in all material respects as of the date hereof and as
of the Commencement Date as though made at that time.

 

		8.	CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE SHARES OF COMMON STOCK.

 

The obligation of the
Investor to buy Purchase Shares under this Agreement is subject to the satisfaction or, where legally permissible, the waiver of
each of the following conditions on or prior to the Commencement Date and, once such conditions have been initially satisfied,
there shall not be any ongoing obligation to satisfy such conditions after the Commencement has occurred:

 

(a)       The
Company shall have executed each of the Transaction Documents and delivered the same to the Investor;

 

(b)       The
Common Stock shall be listed or quoted on the Principal Market, trading in the Common Stock shall not have been within the last
365 days suspended by the SEC or the Principal Market, and all Securities to be issued by the Company to the Investor pursuant
to this Agreement shall have been approved for listing or quotation on the Principal Market in accordance with the applicable rules
and regulations of the Principal Market, subject only to official notice of issuance;

 

(c)       The
Investor shall have received the opinions and negative assurances of the Company’s legal counsel dated as of the Commencement Date
substantially in the form heretofore agreed by the parties hereto;

 

(d)       The
representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any
of such representations and warranties is already qualified as to materiality in Section 4 above, in which case, the portion
of such representations and warranties so qualified shall be true and correct without further qualification) as of the date hereof
and as of the Commencement Date as though made at that time (except for representations and warranties that speak as of a specific
date, which shall be true and correct as of such date) and the Company shall have performed, satisfied and complied with the covenants,
agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or
prior to the Commencement Date. The Investor shall have received a certificate, executed by the CEO, President or CFO of the Company,
dated as of the Commencement Date, to the foregoing effect in the form attached hereto as Exhibit A;

 

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(e)       The
Board of Directors of the Company shall have adopted resolutions substantially in the form attached hereto as Exhibit B,
which shall be in full force and effect without any amendment or supplement thereto as of the Commencement Date;

 

(f)       As
of the Commencement Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose
of effecting purchases of Purchase Shares hereunder, 30,000,000 shares of Common Stock;

 

(g)       The
Irrevocable Transfer Agent Instructions shall have been delivered to and acknowledged in writing by the Company and the Company’s
Transfer Agent, and the Commitment Shares required to have been issued on the Commencement Date in accordance with Section 5(e)
hereof shall have been issued directly to the Investor electronically as DWAC Shares;

 

(h)       The
Company shall have delivered to the Investor a certificate evidencing the incorporation and good standing of the Company in the
State of Nevada issued by the Secretary of State of the State of Nevada as of a date within ten (10) Business Days of the Commencement
Date;

 

(i)       The
Company shall have delivered to the Investor a certified copy of the Articles of Incorporation as certified by the Secretary of
State of the State of Nevada within ten (10) Business Days of the Commencement Date;

 

(j)       The
Company shall have delivered to the Investor a secretary’s certificate executed by the Secretary of the Company, dated as of the
Commencement Date, in the form attached hereto as Exhibit C;

 

(k)       The
Registration Statement shall continue to be effective and no stop order with respect to the Registration Statement shall be pending
or threatened by the SEC. The Company shall have a maximum dollar amount certain of Common Stock registered under the Registration
Statement which is sufficient to issue to the Investor not less than (i) the full Available Amount worth of Purchase Shares plus
(ii) all of the Commitment Shares. The Current Report and the Initial Prospectus Supplement each shall have been filed with the
SEC, as required pursuant to Section 5(a) and in compliance with Registration Rights Agreement, and copies of the Prospectus
shall have been delivered to the Investor in accordance with Registration Rights Agreement. The Prospectus shall be current and
available for issuances and sales of all of the Securities by the Company to the Investor, and for the resale of all of the Securities
by the Investor. Any other Prospectus Supplements required to have been filed by the Company with the SEC under the Securities
Act at or prior to the Commencement Date shall have been filed with the SEC within the applicable time periods prescribed for such
filings under the Securities Act. All reports, schedules, registrations, forms, statements, information and other documents required
to have been filed by the Company with the SEC at or prior to the Commencement Date pursuant to the reporting requirements of the
Exchange Act shall have been filed with the SEC within the applicable time periods prescribed for such filings under the Exchange
Act;

 

(l)       No
Event of Default has occurred, or any event which, after notice and/or lapse of time, would become an Event of Default has occurred;

 

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(m)       All
federal, state and local governmental laws, rules and regulations applicable to the transactions contemplated by the Transaction
Documents and necessary for the execution, delivery and performance of the Transaction Documents and the consummation of the transactions
contemplated thereby in accordance with the terms thereof shall have been complied with, and all consents, authorizations and orders
of, and all filings and registrations with, all federal, state and local courts or governmental agencies and all federal, state
and local regulatory or self-regulatory agencies necessary for the execution, delivery and performance of the Transaction Documents
and the consummation of the transactions contemplated thereby in accordance with the terms thereof shall have been obtained or
made, including, without limitation, in each case those required under the Securities Act, the Exchange Act, applicable state securities
or “Blue Sky” laws or applicable rules and regulations of the Principal Market, or otherwise required by the SEC, the
Principal Market or any state securities regulators;

 

(n)       No
statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or endorsed
by any federal, state, local or foreign court or governmental authority of competent jurisdiction which prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by the Transaction Documents; and

 

(o)       No
action, suit or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of competent
jurisdiction shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or foreign governmental
authority of competent jurisdiction shall have been commenced or threatened, against the Company, or any of the officers, directors
or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated by the Transaction Documents,
or seeking material damages in connection with such transactions.

 

(n)       All
federal, state and local governmental laws, rules and regulations applicable to the transactions contemplated by the Transaction
Documents and necessary for the execution, delivery and performance of the Transaction Documents and the consummation of the transactions
contemplated thereby in accordance with the terms thereof shall have been complied with, and all consents, authorizations and orders
of, and all filings and registrations with, all federal, state and local courts or governmental agencies and all federal, state
and local regulatory or self-regulatory agencies necessary for the execution, delivery and performance of the Transaction Documents
and the consummation of the transactions contemplated thereby in accordance with the terms thereof shall have been obtained or
made, including, without limitation, in each case those required under the Securities Act, the Exchange Act, applicable state securities
or “Blue Sky” laws or applicable rules and regulations of the Principal Market, or otherwise required by the SEC, the
Principal Market or any state securities regulators;

 

(o)       No
statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or endorsed
by any federal, state, local or foreign court or governmental authority of competent jurisdiction which prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by the Transaction Documents; and

 

(p)       No
action, suit or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of competent
jurisdiction shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or foreign governmental
authority of competent jurisdiction shall have been commenced or threatened, against the Company, or any of the officers, directors
or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated by the Transaction Documents,
or seeking material damages in connection with such transactions.

 

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		9.	INDEMNIFICATION. 

 

In consideration of
the Investor’s execution and delivery of the Transaction Documents and acquiring the Securities hereunder and in addition to all
of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless
the Investor and all of its affiliates, stockholders, members, officers, directors, employees and direct or indirect investors
and any of the foregoing Person’s agents or other representatives (including, without limitation, those retained in connection
with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and
all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought),
and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee
as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by
the Company in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any
breach of any covenant, agreement or obligation of the Company contained in the Transaction Documents or any other certificate,
instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or made against such Indemnitee
and arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby, other than, in the case of clause (c), with respect to Indemnified
Liabilities which directly and primarily result from the fraud, gross negligence or willful misconduct of an Indemnitee. The indemnity
in this Section 9 shall not apply to amounts paid in settlement of any claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed. To the extent that the foregoing
undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment
and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. Payment under this indemnification
shall be made within thirty (30) days from the date the Indemnitee makes written request for it. A certificate containing reasonable
detail as to the amount of such indemnification submitted to the Company by Investor shall be conclusive evidence, absent manifest
error, of the amount due from the Company to Investor. If any action shall be brought against any Indemnitee in respect of which
indemnity may be sought pursuant to this Agreement, such Indemnitee shall promptly notify the Company in writing, and the Company
shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Indemnitee. Any
Indemnitee 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 Indemnitee, 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 such separate
counsel, a material conflict on any material issue between the position of the Company and the position of such Indemnitee, in
which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.

 

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10.       EVENTS
OF DEFAULT. 

 

An “Event of
Default” shall be deemed to have occurred at any time as any of the following events occurs:

 

(a)       the
effectiveness of the Registration Statement registering the Securities lapses for any reason (including, without limitation, the
issuance of a stop order or similar order), the Registration Statement or the Prospectus is unavailable for the sale by the Company
to the Investor (or the resale by the Investor) of any or all of the Securities to be issued to the Investor under the Transaction
Documents (including, without limitation, as a result of any failure of the Company to satisfy all of the requirements for the
use of a registration statement on Form S-3 pursuant to the Securities Act for the offering and sale of the Securities contemplated
by this Agreement), and any such lapse or unavailability continues for a period of ten (10) consecutive Business Days or for more
than an aggregate of thirty (30) Business Days in any 365-day period;

 

(b)       the
suspension of the Common Stock from trading or the failure of the Common Stock to be listed on the Principal Market for a period
of one (1) Business Day, provided that the Company may not direct the Investor to purchase any shares of Common Stock during any
such suspension;

 

(c)       the
delisting of the Common Stock from The Nasdaq Global Market, provided, however, that the Common Stock is not immediately thereafter
trading on the New York Stock Exchange, The Nasdaq Capital Market, The Nasdaq Global Select Market, the NYSE American, the NYSE
Arca, the OTC Bulletin Board or OTC Markets (or nationally recognized successor to any of the foregoing);

 

(d)       the
failure for any reason by the Transfer Agent to issue Purchase Shares to the Investor within two (2) Business Days after the Regular
Purchase Date, Accelerated Purchase Date or Additional Accelerated Purchase Date, as applicable, on which the Investor is entitled
to receive such Purchase Shares;

 

(e)       the
Company breaches any representation, warranty, covenant or other term or condition under any Transaction Document if such breach
would reasonably be expected to have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably
curable, only if such breach continues for a period of at least five (5) Business Days;

 

(f)       if
any Person commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law;

 

(g)       if
the Company, pursuant to or within the meaning of any Bankruptcy Law, (i) commences a voluntary case, (ii) consents to the entry
of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or (iv) makes a general assignment for the benefit of its creditors or is generally unable to
pay its debts as the same become due;

 

(h)       a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the Company in
an involuntary case, (ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders
the liquidation of the Company or any Subsidiary;

 

(i)       if,
at any time, the Company is not eligible to transfer its Common Stock electronically as DWAC Shares; or

 

    -31-

     

    

 

(j)       if,
at any time after the Commencement Date, the Exchange Cap is reached (to the extent such Exchange Cap is applicable pursuant to
Section 2(f) hereof), and the stockholder approval referred to in Section 2(f)(i) has not been obtained in accordance
with the applicable rules of The Nasdaq Stock Market.

 

In addition to any
other rights and remedies under applicable law and this Agreement, so long as an Event of Default has occurred and is continuing,
or if any event which, after notice and/or lapse of time, would become an Event of Default has occurred and is continuing, the
Company shall not deliver to the Investor any Regular Purchase Notice, Accelerated Purchase Notice or Additional Accelerated Purchase
Notice.

 

11.       TERMINATION

 

This Agreement may
be terminated only as follows:

 

(a)       If
pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding
against the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes
a general assignment for the benefit of its creditors (any of which would be an Event of Default as described in Sections 10(f),
10(g) and 10(h) hereof), this Agreement shall automatically terminate without any liability or payment to the Company
(except as set forth below) without further action or notice by any Person.

 

(b)       In
the event that the Commencement shall not have occurred on or before September 15, 2020, due to the failure to satisfy the conditions
set forth in Sections 7 and 8 above with respect to the Commencement, either the Company or the Investor shall have
the option to terminate this Agreement at the close of business on such date or thereafter without liability of any party to any
other party (except as set forth below); provided, however, that the right to terminate this Agreement under this Section 11(b)
shall not be available to any party if such party is then in breach of any covenant or agreement contained in this Agreement or
any representation or warranty of such party contained in this Agreement fails to be true and correct such that the conditions
set forth in Section 7(c) or Section 8(d), as applicable, could not then be satisfied.

 

(c)       
At any time after the Commencement Date, the Company shall have the option to terminate this Agreement for any reason or for no
reason by delivering notice (a “Company Termination Notice”) to the Investor electing to terminate this Agreement
without any liability whatsoever of any party to any other party under this Agreement (except as set forth below). The Company
Termination Notice shall not be effective until one (1) Business Day after it has been received by the Investor.

 

(d)       This
Agreement shall automatically terminate on the date that the Company sells and the Investor purchases the full Available Amount
as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party to
any other party under this Agreement (except as set forth below).

 

(e)       If,
for any reason or for no reason, the full Available Amount has not been purchased in accordance with Section 2 of this
Agreement by the Maturity Date, this Agreement shall automatically terminate on the Maturity Date, without any action or notice
on the part of any party and without any liability whatsoever of any party to any other party under this Agreement (except as set
forth below).

 

    -32-

     

    

 

Except as set forth in Sections 11(a)
(in respect of an Event of Default under Sections 10(f), 10(g) and 10(h)), 11(d) and 11(e), any termination
of this Agreement pursuant to this Section 11 shall be effected by written notice from the Company to the Investor, or the
Investor to the Company, as the case may be, setting forth the basis for the termination hereof. The representations and warranties
of the Company and the Investor contained in Sections 3 and 4 hereof, the indemnification provisions set forth in
Section 9 hereof and the agreements and covenants set forth in Sections 5, 6, 10, 11 and 12
shall survive the Commencement and any termination of this Agreement. No termination of this Agreement shall (i) affect the Company’s
or the Investor’s rights or obligations under (A) this Agreement with respect to pending Regular Purchases, Accelerated Purchases
and Additional Accelerated Purchases and the Company and the Investor shall complete their respective obligations with respect
to any pending Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases under this Agreement and (B) the Registration
Rights Agreement, which shall survive any such termination in accordance with its terms, or (ii) be deemed to release the Company
or the Investor from any liability for intentional misrepresentation or willful breach of any of the Transaction Documents.

 

12.       MISCELLANEOUS.

 

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

 

(b)       Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature or signature delivered by e-mail in a “.pdf” format data file, including any electronic signature complying
with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com, www.echosign.adobe.com, etc., shall be considered due execution
and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

 

(c)       Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

(d)       Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

    -33-

     

    

 

(e)       Entire
Agreement. The Transaction Documents supersede all other prior oral or written agreements between the Investor, the Company,
their affiliates and Persons acting on their behalf with respect to the subject matter thereof, and this Agreement, the other Transaction
Documents and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered
herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation,
warranty, covenant or undertaking with respect to such matters. The Company acknowledges and agrees that is has not relied on,
in any manner whatsoever, any representations or statements, written or oral, other than as expressly set forth in the Transaction
Documents.

 

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

 

If to the Company: 

Tonix Pharmaceuticals Holding
Corp.

509 Madison Avenue, Suite 1608

New York, New York 10022

Telephone:              (212) 980-9155

Facsimile:                (212) 923-5700

E-mail:                     bradley.saenger@tonixpharma.com

Attention:                Bradley Saenger

 

With a copy to (which shall
not constitute notice or service of process):

Lowenstein Sandler LLP

One Lowenstein Drive

Roseland, NJ 07068

Telephone:              (973) 597-2900

Facsimile:                (973) 597-2400

E-mail:                    sskolnick@lowenstein.com 

Attention:                Steven M. Skolnick,
Esq.

 

If to the Investor:

Lincoln Park Capital Fund, LLC

440 North Wells, Suite 410

Chicago, IL 60654

Telephone:              (312) 822-9300

Facsimile:                (312) 822-9301

E-mail:                     jscheinfeld@lpcfunds.com/jcope@lpcfunds.com

Attention:                Josh Scheinfeld/Jonathan
Cope

 

With a copy to (which
shall not constitute notice or service of process):

Dorsey &
Whitney LLP

51 West
52nd Street

New York,
NY 10019

Telephone:              (212)
415-9214

Facsimile:                (212) 953-7201

E-mail:                     marsico.anthony@dorsey.com 

Attention:                Anthony
J. Marsico, Esq.

 

    -34-

     

    

 

If to the Transfer Agent:

vStock Transfer,
LLC

18 Lafayette
Place

Woodmere,
NY 11598

Telephone:              (212) 828-8436

Facsimile:                (646) 536-3179

E-mail:                     info@vstocktransfer.com

Attention:                 Yoel Goldfeder

 

or at such other address, email address
and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given
to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given
by the recipient of such notice, consent or other communication, (B) mechanically or electronically generated by the sender’s facsimile
machine or email account containing the time, date, and recipient facsimile number or email address, as applicable, and an image
of the first page of such transmission or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable
evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

(g)       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and any permitted successors and
assigns of the Company. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Investor, including by merger or consolidation. The Investor may not assign its rights or obligations under this
Agreement.

 

(h)       No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and any permitted successors and
assigns of the Company and, except as set forth in Section 9, is not for the benefit of, nor may any provision hereof be
enforced by, any other Person.

 

(i)       Publicity.
The Company shall afford the Investor and its counsel with the opportunity to review and comment upon, shall consult with the Investor
and its counsel on the form and substance of, and shall give due consideration to all such comments from the Investor or its counsel
on, any press release, SEC filing or any other public disclosure by or on behalf of the Company relating to the Investor, its purchases
hereunder or any aspect of the Securities, the Transaction Documents or the transactions contemplated thereby, not less than 24
hours prior to the issuance, filing or public disclosure thereof. The Investor must be provided with a final version of any such
press release, SEC filing or other public disclosure at least 24 hours prior to any release, filing or use by the Company thereof.
The Company agrees and acknowledges that its failure to fully comply with this provision constitutes a Material Adverse Effect.

 

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

 

    -35-

     

    

 

(k)       No
Financial Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Investor that it has not engaged
any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Investor
represents and warrants to the Company that it has not engaged any financial advisor, placement agent, broker or finder in connection
with the transactions contemplated hereby. The Company shall be responsible for the payment of any fees or commissions, if any,
of any financial advisor, placement agent, broker or finder relating to or arising out of the transactions contemplated hereby.
The Company shall pay, and hold the Investor harmless against, any liability, loss or expense (including, without limitation, attorneys’
fees and out of pocket expenses) arising in connection with any such claim.

 

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

 

(m)     Remedies,
Other Obligations, Breaches and Injunctive Relief. The Investor’s remedies provided in this Agreement, including, without
limitation, the Investor’s remedies provided in Section 9, shall be cumulative and in addition to all other remedies available
to the Investor under this Agreement, at law or in equity (including a decree of specific performance and/or other injunctive relief),
no remedy of the Investor contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy
and nothing herein shall limit the Investor’s right to pursue actual damages for any failure by the Company to comply with the
terms of this Agreement. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm
to the Investor and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event
of any such breach or threatened breach, the Investor shall be entitled, in addition to all other available remedies, to an injunction
restraining any breach, without the necessity of showing economic loss and without any bond or other security being required.

 

(n)       Enforcement
Costs. If: (i) this Agreement is placed by the Investor in the hands of an attorney for enforcement or is enforced by the Investor
through any legal proceeding; (ii) an attorney is retained to represent the Investor in any bankruptcy, reorganization, receivership
or other proceedings affecting creditors’ rights and involving a claim under this Agreement; or (iii) an attorney is retained to
represent the Investor in any other proceedings whatsoever in connection with this Agreement, then the Company shall pay to the
Investor, as incurred by the Investor, all reasonable costs and expenses including attorneys’ fees incurred in connection therewith,
in addition to all other amounts due hereunder. If this Agreement is placed by the Company in the hands of an attorney for enforcement
or is enforced by the Company through any legal proceeding, then the Investor shall pay to the Company, as incurred by the Company,
all reasonable costs and expenses, including attorneys’ fees incurred in connection therewith, in addition to all other amounts
due hereunder.

 

(o)       Amendment;
Waiver; Failure or Indulgence Not Waiver. No provision of this Agreement may be amended other than by a written instrument
signed by both parties hereto. No provision of this Agreement may be waived other than in a written instrument signed by the party
against whom enforcement of such waiver is sought. No failure or delay in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege.

 

** Signature Page Follows **

 

    -36-

     

    

 

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

 

	 	THE COMPANY:
	 	 
	 	TONIX PHARMACEUTICALS HOLDING CORP.
	 	 	 	 
	 	By:	/s/ Bradley Saenger	 
	 	Name: Bradley Saenger
	 	Title: Chief Financial Officer
	 	 
	 	INVESTOR:
	 	 
	 	LINCOLN PARK CAPITAL FUND, LLC
	 	BY: LINCOLN PARK CAPITAL, LLC
	 	BY: ROCKLEDGE CAPITAL CORPORATION
	 	 	 	 
	 	By:	/s/ Josh Scheinfeld	 
	 	Name: Josh Scheinfeld
	 	Title: President

 

    -37-

     

    

 

EXHIBITS

 

	Exhibit A	Form of Officer’s Certificate
	Exhibit B	Form of Resolutions of Board of Directors of the Company
	Exhibit C	Form of Secretary’s Certificate

 

     

     

    

 

EXHIBIT A

 

FORM OF OFFICER’S CERTIFICATE

 

This Officer’s
Certificate (“Certificate”) is being delivered pursuant to Section 8(d) of that certain Purchase Agreement
dated as of September 3, 2020, (“Purchase Agreement”), by and between TONIX PHARMACEUTICALS HOLDING CORP.,
a Nevada corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC (the “Investor”).
Terms used herein and not otherwise defined shall have the meanings ascribed to them in the Purchase Agreement.

 

The undersigned, ___________,
______________ of the Company, hereby certifies, on behalf of the Company and not in his individual capacity, as follows:

 

1.       I
am the _____________ of the Company and make the statements contained in this Certificate;

 

2.       The
representations and warranties of the Company are true and correct in all material respects (except to the extent that any of such
representations and warranties is already qualified as to materiality in Section 4 of the Purchase Agreement, in which case, such
representations and warranties are true and correct without further qualification) as of the date when made and as of the Commencement
Date as though made at that time (except for representations and warranties that speak as of a specific date, in which case such
representations and warranties are true and correct as of such date);

 

3.       The
Company has performed, satisfied and complied in all material respects with covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date.

 

 4.       The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as they become due.

 

IN WITNESS WHEREOF,
I have hereunder signed my name on this ___ day of ___________.

 

	 	 	 
	 	Name:
	 	Title:

 

The undersigned as
Secretary of TONIX PHARMACEUTICALS HOLDING CORP., a Nevada corporation, hereby certifies that ___________ is the duly elected,
appointed, qualified and acting ________ of _________ and that the signature appearing above is his genuine signature.

 

	 	 	 
	 	Secretary

 

     

     

    

 

EXHIBIT B

 

FORM OF COMPANY RESOLUTIONS

FOR SIGNING PURCHASE AGREEMENT

 

RESOLVED, that the
terms and conditions of, and the transactions contemplated by, the form of Purchase Agreement (the “Purchase Agreement”)
by and between the Corporation and Lincoln Park Capital Fund, LLC (“Lincoln Park”), providing for the purchase by Lincoln
Park of up to Thirty Million Dollars ($30,000,000) of the Corporation’s common stock, $0.001 par value per share (the “Common
Stock”) are hereby authorized and approved in all respects, and that each of the Chairman, Chief Executive Officer, President,
Chief Financial Officer, any Senior Vice President or Executive Vice President or Secretary of the Corporation (collectively, the
“Authorized Officers”) is hereby authorized to execute and deliver the Purchase Agreement, and any other agreements
or documents contemplated thereby including, without limitation, a registration rights agreement (the “Registration Rights
Agreement”) providing for the registration of the shares of the Corporation’s Common Stock issuable in respect of the
Purchase Agreement on behalf of the Corporation, with such amendments, changes, additions and deletions as any of the Authorized
Officers determines to be appropriate, such determination to be conclusively evidenced by the signature of any Authorized Officer
thereon; and be it further

 

RESOLVED, that the
terms and provisions of, and the transactions contemplated by, the Registration Rights Agreement by and among the Corporation and
Lincoln Park are hereby authorized and approved in all respects, and that each of the Authorized Officers is hereby authorized
to execute and deliver the Registration Rights Agreement (pursuant to the terms of the Purchase Agreement), with such amendments,
changes, additions and deletions as any of the Authorized Officer determines to be appropriate, such determination to be conclusively
evidenced by the signature of any Authorized Officer thereon; and be it further

 

RESOLVED, that the
terms and provisions of, and the transactions described in, the forms of Irrevocable Transfer Agent Instructions and Notice of
Effectiveness of Registration Statement (collectively, the “Instructions”, and together with the Purchase Agreement,
the Registration Rights Agreement and any other agreements, instruments or other documents contemplated by any of the foregoing,
the “Transaction Documents”) are hereby authorized and approved in all respects and each of the Authorized Officers
is hereby authorized to execute and deliver the Instructions on behalf of the Corporation in accordance with the Purchase Agreement,
with such amendments, changes, additions and deletions as any of the Authorized Officers determines to be appropriate, such determination
to be conclusively evidenced by the signature of an Authorized Officer thereon; and be it further

 

RESOLVED, that each
of the Transaction Documents, the execution and delivery thereof by any of the Authorized Officers for and on behalf of the Corporation,
the performance by the Corporation of its obligations thereunder and the consummation of the transactions contemplated thereby
are hereby authorized and approved in all respects (including for all purposes of NRS 78.411 through 78.444, inclusive); and be
it further

 

RESOLVED, that the
Corporation is hereby authorized to issue to Lincoln Park Capital Fund, LLC, such number of shares of Common Stock up to $700,000,
as set forth in the Purchase Agreement, as a commitment fee (the “Commitment Shares”) and that upon issuance of the
Commitment Shares pursuant to the Purchase Agreement the Commitment Shares shall be duly authorized, validly issued, fully paid
and nonassessable with no personal liability attaching to the ownership thereof;

 

     

     

    

 

RESOLVED, that the
Corporation is hereby authorized to issue shares of Common Stock upon the purchase of shares of Common Stock by Lincoln Park under
the Purchase Agreement (the “Purchase Shares”) up to the Available Amount (as defined in the Purchase Agreement) under
the Purchase Agreement in accordance with the terms of the Purchase Agreement and that, upon issuance of the Purchase Shares pursuant
to the Purchase Agreement, the Purchase Shares will be duly authorized, validly issued, fully paid and nonassessable with no personal
liability attaching to the ownership thereof;

 

RESOLVED, that the
Corporation shall initially reserve 30,000,000 shares of Common Stock for issuance as Purchase Shares under the Purchase Agreement;

 

RESOLVED, that, without
limiting the foregoing, the Authorized Officers are, and each of them hereby is, authorized and directed to proceed on behalf of
the Corporation and to take all such steps as deemed necessary or appropriate, with the advice and assistance of counsel, to cause
the Corporation to consummate the agreements referred to herein and to perform its obligations under such agreements;

 

RESOLVED, that the
Authorized Officers be, and each of them with full authority to act without the others hereby is, authorized and directed for and
on behalf of the Corporation to take or cause to be taken any and all actions, to execute and deliver any and all agreements, certificates,
instructions, requests or other instruments (including any amendments or supplements to any of the documents contemplated by these
resolutions), and to do any and all things which, in any such officer’s judgment, may be necessary or desirable to effect
each of the foregoing resolutions and to carry out the purposes thereof, the taking of any such actions, the execution and delivery
of any such certificates, instructions, requests, or instruments, or the doing of any such things to be conclusive evidence of
their necessity or desirability;

 

RESOLVED, that the
Authorized Officers be, and each of them hereby is, authorized and directed to work with counsel to prepare and file with the Commission
one or more prospectus supplements (in preliminary and/or final form, as required by applicable securities laws) in connection
with the issuance of the Purchase Shares and Commitment Shares (together, the “Securities”) (each, a “Prospectus
Supplement”) to either or both of the shelf registration statement (File No. 333- 237610), filed on April 8, 2020, and declared
effective by the Commission on April 17, 2020, and the shelf registration statement (File No. 333- 237610), filed on April 8, 2020,
and declared effective by the Commission on April 17, 2020 (together with any Prospectus Supplement(s) in connection with the issuance
of Securities, as defined below, the “2020 Registration Statement”, and together, the “Registration Statements”);
and be it further

 

RESOLVED, that the
issuance by the Company of the Securities as contemplated by the Prospectus Supplement is hereby authorized and approved in all
respects and if and when any such Securities consisting of the Company’s common stock are so issued, such Securities will
be validly issued, fully paid and nonassessable; and be it further

 

RESOLVED, that the
Authorized Officers be, and each of them hereby is, authorized, in the name and on behalf of the Corporation, to retain any legal
counsel, accounting firm, investment banking firm, financing advisors or other such consultants, advisors and agents as such officers
shall deem necessary, desirable or advisable to perform such services and render such opinions as may be necessary, desirable or
advisable in connection with the transactions contemplated by the Purchas Agreement, and to enter into such contracts providing
for the retention, compensation, reimbursement of expenses and indemnification of such legal counsel, accounting firm, investment
banking firm or other such consultants that the Authorized Officers, individually and with full authority to act without the others,
may deem necessary, advisable or proper.

 

     

     

    

 

EXHIBIT C

 

FORM OF SECRETARY’S CERTIFICATE

 

This Secretary’s
Certificate (“Certificate”) is being delivered pursuant to Section 8(j) of that certain Purchase Agreement dated
as of September 3, 2020 (“Purchase Agreement”), by and between TONIX PHARMACEUTICALS HOLDING CORP., a Nevada
corporation (the “Company”) and LINCOLN PARK CAPITAL FUND, LLC (the “Investor”), pursuant to which
the Company may sell to the Investor up to Thirty Million Dollars ($30,000,000) of the Company’s Common Stock, $0.001 par value
per share (the “Common Stock”). Terms used herein and not otherwise defined shall have the meanings ascribed to them
in the Purchase Agreement.

 

The undersigned, ____________, Secretary
of the Company, hereby certifies, on behalf of the Company and not in his individual capacity, as follows:

 

1.       I
am the Secretary of the Company and make the statements contained in this Secretary’s Certificate.

 

2.       Attached
hereto as Exhibit A and Exhibit B are true, correct and complete copies of the Company’s bylaws (“Bylaws”)
and articles of incorporation (“Charter”), in each case, as amended through the date hereof, and no action has been
taken by the Company, its directors, officers or stockholders, in contemplation of the filing of any further amendment relating
to or affecting the Bylaws or Charter.

 

3.       Attached
hereto as Exhibit C are true, correct and complete copies of the resolutions duly adopted by the Board of Directors of the
Company on _____________, at which a quorum was present and acting throughout. Such resolutions have not been amended, modified
or rescinded and remain in full force and effect and such resolutions are the only resolutions adopted by the Company’s Board
of Directors, or any committee thereof, or the stockholders of the Company relating to or affecting (i) the entering into and performance
of the Purchase Agreement, or the issuance, offering and sale of the Securities and (ii) and the performance of the Company of
its obligation under the Transaction Documents as contemplated therein.

 

     

     

    

 

4.       As
of the date hereof, the authorized, issued and reserved capital stock of the Company is as set forth on Exhibit D hereto.

 

IN WITNESS WHEREOF,
I have hereunder signed my name on this ___ day of ____________.

 

	 	 	 
	 	Secretary	 

  

The undersigned as ___________ of TONIX
PHARMACEUTICALS HOLDING CORP., a Nevada corporation, hereby certifies that ____________ is the duly elected, appointed, qualified
and acting Secretary of TONIX PHARMACEUTICALS HOLDING CORP., and that the signature appearing above is his genuine signature.

 

	 	 	 
	 	[TITLE]

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