Document:

EXHIBIT 10.1

 

Execution Copy

 

AZURE MIDSTREAM PARTNERS, LP
 LIMITED DURATION WAIVER AGREEMENT AND 
 AMENDMENT NO. 5 TO CREDIT AGREEMENT

 

This Limited Duration Waiver Agreement and Amendment No. 5 to Credit Agreement (this “Agreement”) dated as of August 12, 2016, but effective upon the date of the satisfaction of the conditions set forth in Section 12 (the “Effective Date”), by and among Azure Midstream Partners, LP, a Delaware limited partnership (the “Borrower”), the Lenders (as defined below) party hereto and Wells Fargo Bank, National Association, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders, as issuing lender (in such capacity, an “Issuing Lender”) and as swingline lender (in such capacity, the “Swingline Lender”).

 

R E C I T A L S:

 

A.            The Borrower, the Administrative Agent, the Issuing Lender, the Swingline Lender and the financial institutions party thereto from time to time, as lenders (the “Lenders”) are parties to that certain Credit Agreement, dated as of February 27, 2015 (as heretofore amended, as amended by this Agreement and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).

 

B.            The Borrower has informed the Lenders that the Borrower will not be in compliance or expects it will not be in compliance with Section 9.15 (Financial Covenants) of the Credit Agreement (such instance of noncompliance being hereinafter referred to as the “Subject Default”).

 

C.            The Borrower, the subsidiaries of the Borrower listed therein, the Lenders, the Issuing Lender, the Swingline Lender and the Administrative Agent have entered into that certain Limited Duration Waiver Agreement and Amendment No. 4 to Credit Agreement dated as of June 30, 2016, pursuant to which, among other things, the Lenders waived the Subject Default for a period ending on August 12, 2016.

 

D.            The Borrower has requested that the Lenders waive the Subject Default during the period beginning on the date hereof and ending on September 27, 2016, and the Lenders are willing to do so subject to the terms and conditions contained in this Agreement.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.             Incorporation of Recitals; Defined Terms.  The Borrower acknowledges that the Recitals set forth above are true and correct in all material respects.  The defined terms in the Recitals set forth above are hereby incorporated into this Agreement by reference.  All other

 

 

capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

 

2.             Amounts Owing.  The Borrower acknowledges and agrees that the principal amount of Loans and LC Obligations as of August 12, 2016, is $173,661,626.46 ($173,511,626.46 in Revolving Credit Loans, $0 in Swingline Loans and $150,000.00 in LC Obligations), and such amount (together with interest and fees thereon) is justly and truly owing by the Borrower without defense, recoupment, offset or counterclaim.

 

3.             Limited Duration Waiver.  Subject to the terms and conditions contained in this Agreement, the Lenders waive the Subject Default but only for the period (the “Waiver Period”) beginning on the date hereof and ending on September 27, 2016 (the “Scheduled Waiver Expiration Date”).  The foregoing waiver shall become null and void on the Scheduled Waiver Expiration Date and from and after the Scheduled Waiver Expiration Date the Subject Default shall constitute an Event of Default and the Administrative Agent and the Lenders shall have all rights and remedies available to them under the Loan Documents as a result of the occurrence of the Subject Default as though this waiver had never been granted.

 

4.             Amendments to Credit Agreement.  Subject to the terms and conditions contained in this Agreement, the parties hereto agree as follows:

 

(a)               Section 1.1 of the Credit Agreement is hereby amended by adding the following defined term thereto in proper alphabetical order:

 

“Align Purchase Agreement” means that certain Asset Purchase and Sale Agreement, between Marlin Midstream, LLC, a Texas limited liability company, and AMP ETX Gathering, LLC, a Delaware limited liability company, dated August 4, 2016.

 

“Amendment No. 5 Effective Date” means August 12, 2016.

 

(b)               Section 9.9 of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

“SECTION 9.9           Capital Expenditures.  For the period beginning on the Amendment No. 5 Effective Date and ending on the first anniversary of the Amendment No. 5 Effective Date, incur or make, or permit any Subsidiary to incur or make, any Capital Expenditures other than (a) Capital Expenditures incurred in the ordinary course of business and consistent with past practice solely for the repair and maintenance of Borrower’s and its Subsidiaries’ facilities, (b) Capital Expenditures expressly provided as Separation Activities (as defined in the Align Purchase Agreement) in accordance with the terms and conditions of the Align Purchase Agreement as in effect on the Amendment No. 5 Effective Date and (c) Capital Expenditures for well connections not in excess of an aggregate amount of $775,000 required under contractual obligations as in effect on the Amendment No. 5 Effective Date.”

 

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(c)                Schedule 1.1(a) (Revolving Credit Commitments and Revolving Credit Commitment Percentages) to the Credit Agreement is hereby amended to be identical to Schedule 1.1(a) attached hereto.

 

5.             Additional Agreements.  The Borrower further agrees that:

 

(a)           On or before September 12, 2016, it shall prepare and deliver to the Administrative Agent and the Lenders a reasonably detailed term sheet (the “Term Sheet”).  The Term Sheet shall (i) describe in reasonable detail and include copies of any funding commitments and related proof of funds from one or more investors, sponsors, or other purchasers of debt or equity of the Borrower, including Azure Holdings GP, LLC (collectively, the “Investors”), and describe in reasonable detail any other capital raising activities and plans relating to equity or debt financing, (ii) summarize in reasonable detail the outstanding due diligence items that have been requested or planned by each of the Investors, (iii) confirm and provide reasonable evidence to the Administrative Agent that the Borrower’s conflicts committee, board of directors, management and all Investors have confirmed to the Borrower that such Persons are authorized and able to consummate the transactions described in the Term Sheet not later October 31, 2016 and (iv) describe in reasonable detail any contemplated contribution by Azure Holdings GP, LLC to the Borrower and each sale, merger, business combination or other transaction, including asset descriptions, projections and financial information relating to any such contemplated transactions.

 

(b)           On or before September 12, 2016, it shall deliver to the Administrative Agent and the Lenders a reasonably detailed business plan, supporting short-term and long-term financial projections and use of funds (the “Business Plan”), which shall include (i) a management retention plan, (ii) a two-year capital plan, including contingencies for various price environments, (iii) a tax analysis of each restructuring alternative described in Section 5(a) and (iv) a separation plan describing the actions required for a separation of, among other things, the personnel and operations of Azure Holdings GP, LLC and its subsidiaries from the Borrower and its Subsidiaries.

 

(c)           Notwithstanding the existence of the Waiver Period or anything contained herein or in the Credit Agreement or the Loan Documents to the contrary, the Loans and other Secured Obligations outstanding shall bear interest at the applicable rate per annum set forth in Section 5.1(b) of the Credit Agreement.

 

(d)           Notwithstanding anything contained herein or in the Credit Agreement or the Loan Documents to the contrary, the Borrower shall not designate or permit to exist any Unrestricted Subsidiary.

 

(e)           In consideration of the agreements of the Lenders set forth in this Agreement, the Borrower shall pay to the Administrative Agent, for the account of each Lender which executes and delivers to the Administrative Agent a counterpart hereof (including by way of facsimile (or other electronic) transmission) by 5:00 p.m. (New York time) on August 12, 2016, a waiver fee in an amount equal to 0.10% of such Lender’s Revolving Credit Commitment.  Each such waiver fee as to such Lender (i) is payable in U.S. dollars in immediately available funds, free and clear of, and without deduction for, any and all present or 

 

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future applicable taxes, levies, imposts, deductions, charges or withholdings and all liabilities with respect thereto (with appropriate gross-up for withholding taxes), (ii) is not refundable under any circumstances, (iii) will not be subject to counterclaim, defense, setoff or otherwise affected, and (iv) is deemed fully earned by such Lender once its signature page is delivered as provided herein and the Amendment No. 5 Effective Date has occurred.

 

6.             Waiver Termination.  As used in this Agreement, “Waiver Termination” shall mean the occurrence of the Scheduled Waiver Expiration Date, or, if earlier, the occurrence of any one or more of the following events: (a) any Default or Event of Default under the Credit Agreement, in each case other than the Subject Default; (b) any failure by the Borrower for any reason to comply with any term, condition, or provision contained in this Agreement; or (c) any representation made by the Borrower in this Agreement or pursuant to it proves to be incorrect or misleading in any material respect when made.  The occurrence of any Waiver Termination or any failure by the Borrower for any reason to comply with any term, condition, or provision contained in this Agreement shall be deemed an Event of Default under the Credit Agreement.  Upon the occurrence of a Waiver Termination, the Waiver Period is automatically terminated and the Lenders are then permitted and entitled, with respect to the Subject Default and any other Event of Default then in existence, under Section 10.2 of the Credit Agreement, among other things, to accelerate the Borrower’s indebtedness, obligations and liabilities under the Loan Documents, and to exercise any other rights and remedies that may be available under the Loan Documents or applicable law.

 

7.             Limited Waiver and Reservation of Rights.  The Borrower acknowledges and agrees that immediately upon expiration or termination of the Waiver Period, the Administrative Agent and the Lenders have all of their rights and remedies with respect to the Subject Default to the same extent, and with the same force and effect, as if the waiver contained herein had not been granted.  The Borrower will not assert and hereby forever waives any right to assert that the Administrative Agent or the Lenders are obligated in any way to continue to waive the Subject Default beyond the Waiver Period or to forbear from enforcing their rights or remedies with respect to the Subject Default after the Waiver Period or that the Administrative Agent and the Lenders are not entitled to act on the Subject Default after the occurrence of a Waiver Termination as if such default had just occurred and the Waiver Period had never existed.  The Borrower acknowledges that the Lenders have made no representations as to what actions, if any, the Lenders will take after the Waiver Period or upon the occurrence of any Waiver Termination, Default or Event of Default, and the Lenders and the Administrative Agent must and do hereby specifically reserve any and all rights, remedies, and claims they have (after giving effect hereto) with respect to the Subject Default and each other Default or Event of Default that may occur.

 

8.             Acknowledgement of Liens.  The Borrower (a) reaffirms the terms of and its obligations (and the security interests granted by it) under each Security Document to which it is a party, and agrees that each such Security Document will continue in full force and effect to secure the Secured Obligations as the same may be amended, supplemented or otherwise modified from time to time, and (b) acknowledges, represents, warrants and agrees that the liens and security interests granted by it pursuant to the Security Documents are valid, enforceable and subsisting and create a security interest to secure the Secured Obligations.

 

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9.             Representations and Warranties.  The Borrower hereby represents and warrants that:

 

(a)           after giving effect hereto, the representations and warranties of the Credit Parties contained in the Loan Documents are true and correct in all material respects (except to the extent any such representation and warranty is qualified by materiality or reference to Material Adverse Effect, in which case, such representation and warranty shall be true, correct and complete in all respects as if made on and as of such date) on and as of the date hereof, except that any representation and warranty that by its terms is made only as of an earlier date shall be true and correct as of such earlier date, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects as of such earlier date;

 

(b)           no Default or Event of Default has occurred and is continuing after giving effect hereto;

 

(c)           the execution, delivery and performance of this Agreement are within the corporate or other power and authority of the Credit Parties party hereto and have been duly authorized by appropriate corporate or other action and proceedings;

 

(d)           this Agreement constitutes the legal, valid, and binding obligation of the Credit Parties party hereto, enforceable in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar state or federal Debtor Relief Laws from time to time in effect which affect the enforcement of creditors’ rights in general and general principles of equity; and

 

(e)           there are no governmental or other third party consents, licenses and approvals required in connection with the execution, delivery, performance, validity and enforceability of this Agreement.

 

10           Loan Documents Remain Effective.  Except as expressly set forth in this Agreement, the Loan Documents and all of the obligations of the Borrower thereunder, the rights and benefits of the Administrative Agent and Lenders thereunder, and the Liens created thereby remain in full force and effect.  Without limiting the foregoing, the Borrower agrees to comply with all of the terms, conditions, and provisions of the Loan Documents.  This Agreement and the Loan Documents are intended by the Lenders as a final expression of their agreement and are intended as a complete and exclusive statement of the terms and conditions of that agreement.

 

11.          Fees and Expenses.  The Borrower shall pay promptly on demand all fees and expenses (including attorneys’ and financial advisors’ fees) incurred by the Administrative Agent and its counsel in connection with this Agreement and the other instruments and documents being executed and delivered in connection herewith.

 

12.          Conditions Precedent.  This Agreement is effective as of the satisfaction of the following conditions precedent:

 

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(a)           the Borrower, the Administrative Agent, and the Required Lenders shall have executed and delivered this Agreement, and each Grantor shall have executed and delivered its reaffirmation, acknowledgment, and consent in the space provided for that purpose below;

 

(b)           the payment of (i) all current legal and financial advisor fees and expenses referred to in Section 11 above and for which invoices have been made available to the Borrower and (ii) the waiver fee as set forth in Section 5(e) above; and

 

(c)           the Borrower shall have delivered or cause to be delivered such evidence, in form and substance reasonably acceptable to the Administrative Agent, pursuant to which the Borrower’s primary financial advisor acknowledges that no fees or other amounts shall be payable to such advisor by reason of this Agreement under that certain engagement letter dated June 2, 2016, by and between such advisor and the Borrower.

 

13.           Miscellaneous.

 

(a)           The Borrower, the Administrative Agent, the Issuing Lender, the Swingline Lender and each Lender party hereto does hereby adopt, ratify and confirm the Credit Agreement, and acknowledges and agrees that the Credit Agreement is and remains in full force and effect, and the Borrower acknowledges and agrees that its liabilities and obligations under the Credit Agreement and the other Loan Documents are not impaired in any respect by this Agreement.

 

(b)           All references in the Credit Agreement and in the other Loan Documents to the Credit Agreement shall be deemed to be a reference to the Credit Agreement as modified hereby.  This Agreement shall constitute a Loan Document for all purposes under the Credit Agreement and the other Loan Documents.

 

(c)           This Agreement may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this Agreement by facsimile transmission or e-mail shall be effective as delivery of a manually executed counterpart hereof.

 

(d)           THIS AGREEMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND SUPERSEDE ALL PRIOR UNDERSTANDINGS AND AGREEMENTS, WHETHER WRITTEN OR ORAL, RELATING TO THE TRANSACTIONS PROVIDED FOR HEREIN AND THEREIN. ADDITIONALLY, THIS AGREEMENT, THE CREDIT AGREEMENT, THE NOTES, AND THE OTHER LOAN DOCUMENTS MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

 

(e)           This Agreement and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the State of New York.

 

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(f)            For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Credit Party hereby, for itself and its successors and assigns, fully and without reserve, releases and forever discharges the Administrative Agent and each Lender, their respective successors and assigns, officers, directors, employees, representatives, trustees, attorneys, agents and affiliates (collectively the “Released Parties” and individually a “Released Party”) from any and all actions, claims, demands, causes of action, judgments, executions, suits, debts, liabilities, costs, damages, expenses or other obligations of any kind and nature whatsoever, known or unknown, direct and/or indirect, at law or in equity, whether now existing or hereafter asserted (INCLUDING, WITHOUT LIMITATION, ANY OFFSETS, REDUCTIONS, REBATEMENT, CLAIMS OF USURY OR CLAIMS WITH RESPECT TO THE NEGLIGENCE OF ANY RELEASED PARTY), for or because of any matters or things occurring, existing or actions done, omitted to be done, or suffered to be done by any of the Released Parties, in each case, on or prior to the Effective Date and are in any way directly or indirectly arising out of or in any way connected to any of this Agreement, the Credit Agreement, any other Loan Document, any draw under the AES Letter of Credit or any of the transactions contemplated hereby or thereby; provided, that it is understood and agreed by the parties hereto that no Credit Party is releasing, waiving or discharging any defenses to expense reimbursement or indemnification it may have which are expressly provided in Section 12.3 of the Credit Agreement (collectively, the “Released Matters”). Each Credit Party, by execution hereof, hereby acknowledges and agrees that the agreements in this Section 13(f) are intended to cover and be in full satisfaction for all or any alleged injuries or damages arising in connection with the Released Matters.

 

[SIGNATURE PAGES TO FOLLOW]

 

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This Limited Duration Waiver Agreement and Amendment No. 5 to Credit Agreement is entered into as of the date and year first above written.

 

	
BORROWER:
    	
AZURE MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Azure Midstream   Partners GP, LLC,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
 
    	
Name:
    	
Amanda Bush
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

	
 
    	
WELLS FARGO BANK, N.A.,
    
	
 
    	
as Administrative   Agent, Issuing Lender, Swingline Lender, and Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Barry Parks
    
	
 
    	
Name:
    	
Barry Parks
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

	
 
    	
BANK OF AMERICA, N.A., as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sophie Lee
    
	
 
    	
Name:
    	
Sophie Lee
    
	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

	
 
    	
SOCIÉTÉ GÉNÉRALE, as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michiel V.M. van   der Voort
    
	
 
    	
Name:
    	
Michiel V.M. van der   Voort
    
	
 
    	
Title:
    	
Managing   Director
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

	
 
    	
COMPASS BANK,   as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Payton K Swope
    
	
 
    	
Name:
    	
Payton K Swope
    
	
 
    	
Title:
    	
Executive Vice   President
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

	
 
    	
COMERICA BANK,   as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Chad Stephenson
    
	
 
    	
Name:
    	
Chad Stephenson
    
	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

	
 
    	
ING CAPITAL LLC,   as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anne Van Riel
    
	
 
    	
Name:
    	
Anne Van Riel
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anthony Rivera
    
	
 
    	
Name:
    	
Anthony Rivera
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

	
 
    	
JPMORGAN CHASE BANK, N.A.,   as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Geraldine A King
    
	
 
    	
Name:
    	
Geraldine A King
    
	
 
    	
Title:
    	
Executive Director
    
	
 
    	
 
    	
General Credits Risk   Director
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

	
 
    	
ZB, N.A. DBA AMEGY BANK,   as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jill McSorley
    
	
 
    	
Name:
    	
Jill McSorley
    
	
 
    	
Title: 
    	
Senior Vice   President-Amegy Bank Division
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

	
 
    	
REGIONS BANK,   as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lynn Johnston
    
	
 
    	
Name:
    	
Lynn Johnston
    
	
 
    	
Title:
    	
Sr. Vice President
    

 

[Signature Page to Limited Duration Waiver — Azure Midstream Partners, LP]

 

 

SCHEDULE 1.1(a)

 

REVOLVING CREDIT COMMITMENTS

AND REVOLVING CREDIT COMMITMENT PERCENTAGES

 

	
Lender
    	
 
    	
Revolving Credit
   Commitment
    	
 
    	
Revolving Credit
   Commitment
   Percentage
    	
 
    
	
Wells Fargo Bank, National Association
    	
 
    	
$
    	
25,701,920.70
    	
 
    	
14.80
    	
%
    
	
Bank of America, N.A.
    	
 
    	
$
    	
25,701,920.72
    	
 
    	
14.80
    	
%
    
	
Société Générale
    	
 
    	
$
    	
25,701,920.72
    	
 
    	
14.80
    	
%
    
	
Compass Bank
    	
 
    	
$
    	
17,192,501.02
    	
 
    	
9.90
    	
%
    
	
Comerica Bank
    	
 
    	
$
    	
17,192,501.02
    	
 
    	
9.90
    	
%
    
	
ING Capital LLC
    	
 
    	
$
    	
17,192,501.02
    	
 
    	
9.90
    	
%
    
	
JPMorgan Chase Bank, N.A.
    	
 
    	
$
    	
17,192,501.02
    	
 
    	
9.90
    	
%
    
	
ZB, N.A. dba Amegy Bank
    	
 
    	
$
    	
13,892,930.12
    	
 
    	
8.00
    	
%
    
	
Regions Bank
    	
 
    	
$
    	
13,892,930.12
    	
 
    	
8.00
    	
%
    
	
Total
    	
 
    	
$
    	
173,661,626.46
    	
 
    	
100
    	
%
    

 

 

REAFFIRMATION, ACKNOWLEDGEMENT AND CONSENT

 

The undersigned, Marlin Midstream, LLC, a Texas limited liability company, and Azure Holdings GP, LLC, a Delaware limited liability company (together, the “Pledgors”) have executed and delivered a Pledge Agreement dated as of February 27, 2015 to the Lenders, and the Pledgors, Marlin Logistics, LLC, a Texas limited liability company, Turkey Creek Pipeline, LLC, a Texas limited liability company, Marlin G&P I, LLC, a Texas limited liability company, Murvaul Gas Gathering, LLC, a Texas limited liability company, Talco Midstream Assets, Ltd., a Texas limited partnership, Azure TGG, LLC, a Delaware limited liability company, and Azure ETG LLC, a Delaware limited liability company (collectively, the “Guarantors”), have executed and delivered a Guaranty Agreement dated as of February 27, 2015 (as may be amended, modified or supplemented from time to time, the “Guaranty”) to the Lenders.  As an additional inducement to and in consideration of the Lenders’ acceptance of the Limited Duration Waiver Agreement and Amendment No. 5 to Credit Agreement dated as of August 12, 2016 (the “Limited Duration Waiver”), the Pledgors and the Guarantors hereby agree with the Lenders as follows:

 

1.                                      Each of the Guarantors consents to the execution of the Limited Duration Waiver by the Borrower and acknowledges that this consent is not required under the terms of the Guaranty and that the execution hereof by the Guarantors shall not be construed to require the Lenders to obtain the Guarantors’ consent to any future amendment, modification or waiver of any term of the Credit Agreement except as otherwise provided in said Guaranty.  Each Guarantor hereby ratifies, confirms, acknowledges and agrees that its obligations under the Guaranty are in full force and effect and that such Guarantor continues to unconditionally and irrevocably guarantee the full and punctual payment, when due, whether at stated maturity or earlier by acceleration or otherwise, all of the Obligations (as defined in the Guaranty), and its execution and delivery of this consent does not indicate or establish an approval or consent requirement by such Guarantor under the Guaranty, in connection with the execution and delivery of amendments, consents or waivers to the Credit Agreement or any of the other Loan Documents.

 

2.                                      Each of the Guarantors and the Pledgors (a) reaffirms the terms of and its obligations (and the security interests granted by it) under each Security Document to which it is a party, and agrees that each such Security Document will continue in full force and effect to secure the Secured Obligations as the same may be amended, supplemented or otherwise modified from time to time, (b) acknowledges, represents, warrants and agrees that the liens and security interests granted by it pursuant to the Security Documents are valid, enforceable and subsisting and create a security interest to secure the Secured Obligations, (c) represents and warrants that, with respect to itself, each of the representations in Section 8 of the Limited Duration Waiver is true and correct in all respects and (d) acknowledges and agrees to the provisions in Section 13(f) of the Limited Duration Waiver.

 

3.                                      All terms used herein shall have the same meaning as in the Limited Duration Waiver and the Credit Agreement, unless otherwise expressly defined herein.

 

[SIGNATURE PAGES TO FOLLOW]

 

 

This Reaffirmation, Acknowledgement and Consent is dated as of August 12, 2016.

 

	
 
    	
MARLIN MIDSTREAM, LLC,
    
	
 
    	
a Texas limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
Name:
    	
Amanda Bush
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MARLIN LOGISTICS, LLC,
    
	
 
    	
a Texas limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
Name:
    	
Amanda Bush
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MARLIN G&P I, LLC,
    
	
 
    	
a Texas limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
Name:
    	
Amanda Bush
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MURVAUL GAS GATHERING LLC,
    
	
 
    	
a Texas limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
Name:
    	
Amanda Bush
    
	
 
    	
Title:
    	
Chief Financial Officer
    

 

[Signature Page to Reaffirmation, Acknowledgement and Consent — Azure Midstream Partners, LP]

 

 

	
 
    	
TURKEY CREEK PIPELINE, LLC,
    
	
 
    	
a Texas limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
Name:
    	
Amanda Bush
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TALCO MIDSTREAM ASSETS LTD.,
    
	
 
    	
a Texas limited   partnership
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
Name:
    	
Amanda Bush
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AZURE HOLDINGS GP, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
Name: 
    	
Amanda Bush
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AZURE TGG, LLC,
    
	
 
    	
a Delaware limited liability   company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
Name:
    	
Amanda Bush
    
	
 
    	
Title:
    	
Chief Financial Officer
    

 

[Signature Page to Reaffirmation, Acknowledgement and Consent — Azure Midstream Partners, LP]

 

 

 

	
 
    	
AZURE ETG, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Amanda Bush
    
	
 
    	
Name:
    	
Amanda Bush
    
	
 
    	
Title:
    	
Chief Financial Officer
    

 

[Signature Page to Reaffirmation, Acknowledgement and Consent — Azure Midstream Partners, LP]Exhibit 10.32 

 

FORTRESS BIOTECH, INC.

 

Common Stock

 

(par value $0.001 per share)

 

Amended and Restated At Market Issuance
Sales Agreement

 

 August 17, 2016

 

FBR Capital Markets & Co.

1300 North 17th Street, Suite 1400

Arlington, Virginia 22209

 

MLV & Co. LLC

299 Park Avenue, 7th Floor

New York, New York 10171

 

Ladies and Gentlemen:

 

Fortress Biotech, Inc.,
a Delaware corporation (the “Company”), and MLV & Co. LLC (“MLV”), are parties to that
certain At Market Issuance Sales Agreement dated April 29, 2013, as amended on July 12, 2013, and April 28, 2016 (the “Original
Sales Agreement”). Together with FBR Capital Markets & Co. (“FBR”; each of FBR and MLV individually
an “Agent” and collectively, the “Agents”), the Company and the Agents desire to amend and
restate the Original Sales Agreement with this agreement (the “Agreement”), and hereby agree as follows:

 

1.          Issuance
and Sale of Shares. The Company agrees that, from time to time during the term of this Agreement, on the terms and subject
to the conditions set forth herein, it may issue and sell through the Agents shares (the “Placement Shares”)
of the Company’s common stock, par value $0.001 per share (the “Common Stock”) provided however, that
in no event shall the Company issue or sell through the Agents such number of Placement Shares that (a) exceeds the number of shares
of Common Stock registered on the effective Registration Statement (as defined below) pursuant to which the offering is being made,
or (b) exceeds the number of authorized but unissued shares of Common Stock (the lesser of (a) and (b), the “Maximum Amount”).
In addition, in no event shall the Company issue or sell Placement Shares through the Agents in a number and in a manner that would
require the Company to obtain stockholder approval under NASDAQ Listing Rule 5635 without first obtaining such stockholder approval.
Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth
in this Section 1 on the number of Placement Shares issued and sold under this Agreement shall be the sole responsibility of the
Company and that the Agents shall have no obligation in connection with such compliance. The issuance and sale of Placement Shares
through the Agents will be effected pursuant to the Registration Statement filed by the Company and declared effective by the Securities
and Exchange Commission (the “Commission”), although nothing in this Agreement shall be construed as requiring
the Company to use the Registration Statement to issue Placement Shares. Through the date of this Agreement, the Company has sold
2,238,172 shares under the Original Agreement for aggregate gross proceeds of $16,783,645.

 

     

     

    

 

The Company has filed
with the Commission, in accordance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”)
and the rules and regulations thereunder (the “Securities Act Regulations”), with respect to sales of Placement
Shares prior to the effectiveness of the registration statement to be initially filed on or about August 18, 2016, a registration
statement on Form S-3 (File No. 333-189935), and, with respect to sales of Placement Shares on or after the effectiveness of the
registration statement to be initially filed on or about August 18, 2016, the registration statement on Form S-3 to be initially
filed on or about August 18, 2016, including a base prospectus, relating to certain securities, and a prospectus relating to the
Placement Shares to be issued from time to time by the Company, and which incorporates by reference documents that the Company
has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and the rules and regulations thereunder (the “Exchange Act Regulations”). The Company will,
if necessary, prepare a prospectus supplement (the “Prospectus Supplement”) to the prospectus included as part
of each such registration statement specifically relating to the Placement Shares. The Company will furnish to the Agents, for
use by the Agents, copies of the prospectus included as part of each such registration statement, as supplemented, if at all, by
the Prospectus Supplement, relating to the Placement Shares. Except where the context otherwise requires, each such registration
statement, and any post-effective amendment thereto, including all documents filed as part thereof or incorporated by reference
therein, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant
to Rule 424(b) under the Securities Act Regulations or deemed to be a part of each such registration statement pursuant to Rule
430B of the Securities Act Regulations are collectively herein called the “Registration Statement.” The prospectus
relating to the Placement Shares, including all documents incorporated therein by reference, included in the Registration Statement,
as it may be supplemented by the Prospectus Supplement, if any, in the form in which such prospectus and/or Prospectus Supplement
have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act Regulations,
together with the then issued Issuer Free Writing Prospectus(es) (as defined in Section 25 hereof), is herein called the “Prospectus.”
Any reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer
to and include the documents incorporated by reference therein, and any reference herein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include
the filing after the execution hereof of any document with the Commission deemed to be incorporated by reference therein (the “Incorporated
Documents”).

 

For purposes of this
Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed
to include the most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval System,
or if applicable, the Interactive Data Electronic Application system when used by the Commission (collectively, “EDGAR”).

 

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2.         Placements.
Each time that the Company wishes to issue and sell Placement Shares hereunder (each, a “Placement”), it will
notify an Agent (the “Designated Agent”) by email notice (or other method mutually agreed to in writing by the
Parties) of the proposed terms of such Placement, which shall include at a minimum the number of Placement Shares to be issued,
the time period during which sales are requested to be made, any limitation on the number of Placement Shares that may be sold
in any one Trading Day (as defined in Section 3(a) hereof) and any minimum price below which sales may not be made (a “Placement
Notice”), the form of which is attached hereto as Schedule 1. The Placement Notice shall originate from any of
the individuals from the Company set forth on Schedule 3 (with a copy to each of the other individuals from the Company
listed on such schedule), and shall be addressed to each of the individuals from the Designated Agent set forth on Schedule
3, as such Schedule 3 may be amended from time to time. The Placement Notice shall be effective unless and until (i) the Designated
Agent declines to accept the terms contained therein for any reason, in its sole discretion, (ii) the entire amount of the Placement
Shares thereunder have been sold, (iii) the Company suspends or terminates the Placement Notice or (iv) the Agreement has been
terminated under the provisions of Section 13. The amount of any discount, commission or other compensation to be paid by the Company
to the Designated Agent in connection with the sale of the Placement Shares shall be calculated in accordance with the terms set
forth in Schedule 2. It is expressly acknowledged and agreed that neither the Company nor the Agents will have any obligation whatsoever
with respect to a Placement or any Placement Shares unless and until the Company delivers a Placement Notice to the Designated
Agent and the Designated Agent does not decline such Placement Notice pursuant to the terms set forth above, and then only upon
the terms specified therein and herein. In the event of a conflict between the terms of this Sections 2 or 3 of this Agreement
and the terms of a Placement Notice, the terms of the Placement Notice will control.

 

3.         Sale
of Placement Shares by the Designated Agent.

 

a.           Subject
to the terms and conditions of this Agreement, for the period specified in the Placement Notice, the Designated Agent will use
its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state and federal laws,
rules and regulations and the rules of the NASDAQ Capital Market (the “Exchange”) to sell the Placement Shares
up to the amount specified, and otherwise in accordance with the terms of such Placement Notice. The Designated Agent will provide
written confirmation to the Company no later than the opening of the Trading Day immediately following the Trading Day on which
it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such day, the compensation
payable by the Company to the Designated Agent pursuant to Schedule 2 with respect to such sales, and the Net Proceeds (as
defined below) payable to the Company, with an itemization of the deductions made by the Designated Agent (as set forth in Section
5(b)) from the gross proceeds that it receives from such sales. Subject to the terms of the Placement Notice, the Designated Agent
may sell Placement Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule
415 of the Securities Act Regulations, including without limitation sales made directly on the Exchange, on any other existing
trading market for the Common Stock or to or through a market maker. Subject to the terms of a Placement Notice, the Designated
Agent may also sell Placement Shares by any other method permitted by law and the rules and regulations of the Exchange, including
but not limited to in negotiated transactions, with the Company’s prior written consent (which may be in the form of email
correspondence). “Trading Day” means any day on which Common Stock are purchased and sold on the Exchange.

 

    	 	3	 

     

    

 

 

b.           During
the term of this Agreement, neither the Agents nor any of their respective affiliates or subsidiaries shall engage, either directly
or indirectly, in (i) any short sale of any security of the Company, (ii) any sale of any security of the Company that the Agents
do not own or any sale which is consummated by the delivery of a security of the Company borrowed by, or for the account of, the
Agents or (iii) any market making, bidding, purchasing, stabilization or other trading activity with regard to the Common Stock,
or attempting to induce another person to do any of the foregoing, if such activity would be prohibited under Regulation M or other
anti-manipulation rules under the Securities Act. Neither the Agents nor any of their respective affiliates or subsidiaries, shall
engage in any proprietary trading or trading for the Agents’ (or their respective affiliates’ or subsidiaries’)
own account.

 

4.         Suspension
of Sales. The Company or the Designated Agent may, upon notice to the other party in writing (including by email correspondence
to each of the individuals from the other party set forth on Schedule 3, if receipt of such correspondence is actually acknowledged
by any of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable
facsimile transmission or email correspondence to each of the individuals from the other party set forth on Schedule 3),
suspend any sale of Placement Shares; provided, however, that such suspension shall not affect or impair any party’s obligations
with respect to any Placement Shares sold hereunder prior to the receipt of such notice. Each of the parties agrees that no such
notice under this Section 4 shall be effective against any other party unless it is made to one of the individuals named on Schedule
3 hereto, as such Schedule may be amended from time to time.

 

5.         Sale
and Delivery to the Designated Agent; Settlement.

 

a.           Sale
of Placement Shares. On the basis of the representations and warranties herein contained and subject to the terms and conditions
herein set forth, upon the Designated Agent’s acceptance of a Placement Notice, and unless the sale of the Placement Shares
described therein has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement, the Designated
Agent, for the period specified in the Placement Notice, will use its commercially reasonable efforts consistent with its normal
trading and sales practices to sell such Placement Shares up to the amount specified, and otherwise in accordance with the terms
of such Placement Notice. The Company acknowledges and agrees that (i) there can be no assurance that the Designated Agent will
be successful in selling Placement Shares, (ii) the Designated Agent will incur no liability or obligation to the Company or any
other person or entity if it does not sell Placement Shares for any reason other than a failure by the Designated Agent to use
its commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations to
sell such Placement Shares as required under this Agreement and (iii) the Designated Agent shall be under no obligation to purchase
Placement Shares on a principal basis pursuant to this Agreement, except as otherwise agreed by the Designated Agent and the Company
and then only to the extent permitted by law and the rules and regulations of the Exchange.

 

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b.           Settlement
of Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares
will occur on the third (3rd) Trading Day (or such earlier day as is industry practice for regular-way trading) following
the date on which such sales are made (each, a “Settlement Date”). The amount of proceeds to be delivered to
the Company on a Settlement Date against receipt of the Placement Shares sold (the “Net Proceeds”) will be equal
to the aggregate sales price received by the Designated Agent for the Placement Shares, after deduction for (i) the Designated
Agent’s commission, discount or other compensation for such sales payable by the Company pursuant to Schedule 2 hereof,
and (ii) any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales.

 

c.           Delivery
of Placement Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically
transfer the Placement Shares being sold by crediting the Designated Agent’s or its designee’s account (provided the
Designated Agent shall have given the Company written notice of such designee a reasonable period of time prior to the Settlement
Date) at The Depository Trust Company through its Deposit and Withdrawal at Custodian System or by such other means of delivery
as may be mutually agreed upon by the parties hereto which in all cases shall be freely tradable, transferable, registered shares
in good deliverable form. On each Settlement Date, the Designated Agent will deliver the related Net Proceeds in same day funds
to an account designated by the Company on, or prior to, the Settlement Date. The Company agrees that if the Company, or its transfer
agent (if applicable), defaults in its obligation to deliver Placement Shares on a Settlement Date through no fault of the Designated
Agent, the Company agrees that in addition to and in no way limiting the rights and obligations set forth in Section 11(a) hereto,
it will (i) hold the Designated Agent harmless against any loss, claim, damage, or reasonable documented expense (including reasonable
documented legal fees and expenses), as incurred, arising out of or in connection with such default by the Company or its transfer
agent (if applicable) and (ii) pay to the Designated Agent (without duplication) any commission, discount, or other compensation
to which it would otherwise have been entitled absent such default.

 

d.           Limitations
on Offering Size. Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares if, after
giving effect to the sale of such Placement Shares, the aggregate gross sales proceeds of Placement Shares sold pursuant to this
Agreement would exceed the lesser of (A) together with all sales of Placement Shares under this Agreement, the Maximum Amount,
(B) the amount available for offer and sale under the currently effective Registration Statement and (C) the amount authorized
from time to time to be issued and sold under this Agreement by the Company’s board of directors, a duly authorized committee
thereof or a duly authorized executive committee, and notified to the Designated Agent in writing. Under no circumstances shall
the Company cause or request the offer or sale of any Placement Shares pursuant to this Agreement at a price lower than the minimum
price authorized from time to time by the Company’s board of directors, a duly authorized committee thereof or a duly authorized
executive committee, and notified to the Designated Agent in writing. Further, under no circumstances shall the Company cause or
permit the aggregate offering amount of Placement Shares sold pursuant to this Agreement to exceed the Maximum Amount.

 

    	 	5	 

     

    

 

e.           Sales
Through Agents. The Company agrees that any offer to sell, any solicitation of an offer to buy, or any sales of Common Stock
or any other equity security of the Company shall only be effected by or through an Agent, and only a single Agent, on any single
given date, and in no event shall the Company request that more than one Agent sell Securities on the same day; provided however
that (i) the foregoing limitation shall not apply to (A) exercise of any option, warrant, right or any conversion privilege set
forth in the instruction governing such securities, (B) sales solely to employees, directors or security holders of the Company
or its subsidiaries, or to a trustee or other person acquiring such securities for the accounts of such person and (ii) such limitation
shall not apply (A) on any day during which no sales are made pursuant to this Agreement or (B) during a period in which the Company
has notified the Agents that it will not sell Common Stock under this Agreement and (1) no Placement Notice is pending or (2) after
a Placement Notice has been withdrawn.

 

6.         Representations
and Warranties of the Company. Except as disclosed in the Registration Statement or the Prospectus (including Incorporated
Documents), the Company represents and warrants to, and agrees with each of the Agents that as of each Applicable Time (as defined
below), unless such representation, warranty or agreement specifies a different date or time:

 

a.           Registration
Statement and Prospectus. The Company and, assuming no act or omission on the part of the Agents that would make such statement
untrue, the transactions contemplated by this Agreement meet the requirements for and comply with the conditions for the use of
Form S-3 under the Securities Act. The Registration Statement has been filed with the Commission and has been declared effective
under the Securities Act. The Prospectus will name MLV and FBR as the Company’s agents in the section entitled “Plan
of Distribution.” The Company has not received, and has received no written notice of, any order of the Commission preventing
or suspending the use of the Registration Statement, or threatening or instituting proceedings for that purpose. The Registration
Statement and, the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule 415 under the Securities
Act and comply in all material respects with said Rule. Any statutes, regulations, contracts or other documents that are required
to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement have been
so described or filed. Copies of the Registration Statement, the Prospectus, and any such amendments or supplements and all documents
incorporated by reference therein that were filed with the Commission on or prior to the date of this Agreement have been delivered,
or are available through EDGAR, to the Agents and their counsel. The Company has not distributed and, prior to the later to occur
of each Settlement Date and completion of the distribution of the Placement Shares, will not distribute any offering material in
connection with the offering or sale of the Placement Shares other than the Registration Statement and the Prospectus and any Issuer
Free Writing Prospectus to which the Agents have consented, such consent not to be unreasonably withheld, conditioned or delayed.
The Common Stock is currently listed on the Exchange under the trading symbol “FBIO”. Except as disclosed in the Registration
Statement, including the Incorporated Documents, the Company has not, in the 12 months preceding the date hereof, received notice
from the Exchange to the effect that the Company is not in compliance with the listing or maintenance requirements of the Exchange.
Except as disclosed in the Registration Statement, including the Incorporated Documents, or the Prospectus, the Company has no
reason to believe that it will not in the foreseeable future continue to be in compliance in all material respects with all such
listing and maintenance requirements applicable to the Company.

 

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b.           No
Misstatement or Omission. The Registration Statement, when it became or becomes effective, and the Prospectus, and any amendment
or supplement thereto, on the date of such Prospectus or amendment or supplement, conformed and will conform in all material respects
with the requirements of the Securities Act. At each Settlement Date, the Registration Statement and the Prospectus, as of such
date, will conform in all material respects with the requirements of the Securities Act. The Registration Statement, when it became
or becomes effective, did not, and will not, contain an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading. The Prospectus and any amendment and supplement
thereto, on the date thereof and at each Applicable Time (defined below), did not or will not include an untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading. The documents incorporated by reference in the Prospectus or any Prospectus Supplement did not,
and any further documents filed and incorporated by reference therein will not, when filed with the Commission, contain an untrue
statement of a material fact or omit to state a material fact required to be stated in such document or necessary to make the statements
in such document, in light of the circumstances under which they were made, not misleading. The foregoing shall not apply to, and
the Company neither makes nor shall make any representation or warranty in respect of, statements in, or omissions from, any such
document made in reliance upon, and in conformity with, information furnished to the Company by an Agent specifically for use in
the preparation thereof.

 

c.           Conformity
with Securities Act and Exchange Act. The Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or any
amendment or supplement thereto, and the documents incorporated by reference in the Registration Statement, the Prospectus or any
amendment or supplement thereto, when such documents were or are filed with the Commission under the Securities Act or the Exchange
Act or became or become effective under the Securities Act, as the case may be, conformed or will conform in all material respects
with the requirements of the Securities Act and the Exchange Act, as applicable.

 

d.           Financial
Information. The consolidated financial statements of the Company included or incorporated by reference in the Registration
Statement, the Prospectus and the Issuer Free Writing Prospectuses, if any, together with the related notes and schedules, complied
as to form in all material respects with applicable accounting requirements and the published rules and regulations of the Commission
with respect thereto as in effect as of the time of filing. Such financial statements have been prepared in compliance in all material
respects with the requirements of the Securities Act and Exchange Act, as applicable, and in conformity with generally accepted
accounting principles in the United States (“GAAP”) applied on a consistent basis (except for such adjustments
to accounting standards and practices as are noted therein) during the periods involved (subject, in the case of unaudited statements,
to normal recurring adjustments); the other financial and statistical data with respect to the Company and the Subsidiaries contained
or incorporated by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses, if any, are
accurately and fairly presented and prepared on a basis consistent with the financial statements and books and records of the Company;
there are no financial statements (historical or pro forma) that are required to be included or incorporated by reference in the
Registration Statement, or the Prospectus that are not included or incorporated by reference as required; the Company and the Subsidiaries
do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described
in the Registration Statement (including the exhibits thereto and Incorporated Documents), and the Prospectus which are required
to be described in the Registration Statement or the Prospectus (including Exhibits thereto and Incorporated Documents); and all
disclosures contained or incorporated by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses,
if any, regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission)
comply in all material respects with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to
the extent applicable.

 

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e.           Conformity
with EDGAR Filing. The Prospectus delivered to the Agents for use in connection with the sale of the Placement Shares pursuant
to this Agreement will be identical to the versions of the Prospectus created to be transmitted to the Commission for filing via
EDGAR, except to the extent permitted by Regulation S-T.

 

f.            Organization.
The Company and the Subsidiaries are, and will be, duly organized, validly existing as a corporation and in good standing under
the laws of their respective jurisdictions of organization. The Company and the Subsidiaries are, and will be, duly licensed or
qualified as a foreign corporation for transaction of business and in good standing under the laws of each other jurisdiction in
which their respective ownership or lease of property or the conduct of their respective businesses requires such license or qualification,
and have all corporate power and authority necessary to own or hold their respective properties and to conduct their respective
businesses as described in the Registration Statement and the Prospectus, except where the failure to be so qualified or in good
standing or have such power or authority would not, individually or in the aggregate, have a material adverse effect or would reasonably
be expected to have a material adverse effect on the assets, business, operations, earnings, properties, condition (financial or
otherwise), prospects, stockholders’ equity (as set forth on the Company’s most recent balance sheet included in the
Incorporated Documents) or results of operations of the Company and the Subsidiaries (as defined below) taken as a whole, or prevent
or materially interfere with consummation of the transactions contemplated hereby (a “Material Adverse Effect”).

 

g.           Subsidiaries.
As of the date of this Agreement, Cyprium, Inc., CB Securities Corporation, and FBIO Acquisition, Inc. (the “Subsidiaries”
and each a “Subsidiary”) are the Company’s only wholly-owned subsidiaries. Except as set forth in the Registration
Statement and in the Prospectus, the Company owns, directly or indirectly, all of the equity interests of the Subsidiaries free
and clear of any lien, charge, security interest, encumbrance, right of first refusal or other restriction, and all the equity
interests of the Subsidiaries are validly issued and are fully paid, nonassessable and free of preemptive and similar rights.

 

h.           No
Violation or Default. Neither the Company nor the Subsidiaries are (i) in violation of their charter or by-laws or similar
organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute
such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed
of trust, loan agreement or other agreement or instrument to which the Company or the Subsidiaries are a party or by which the
Company or the Subsidiaries are bound or to which any of the property or assets of the Company or the Subsidiaries are subject;
or (iii) in violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental
or regulatory authority having jurisdiction over the Company, except, in the case of each of clauses (ii) and (iii) above, for
any such violation or default that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. Except as described in the Prospectus, the Prospectus Supplement or the Incorporated Documents, to the Company’s
knowledge, no other party under any material contract or other agreement to which it or the Subsidiaries are a party is in default
in any respect thereunder where such default would reasonably be expected to have a Material Adverse Effect.

 

    	 	8	 

     

    

 

i.            No
Material Adverse Change. Subsequent to the respective dates as of which information is given in the Registration Statement,
the Prospectus and the Free Writing Prospectuses, if any (including the Incorporated Documents), there has not been (i) any Material
Adverse Effect, or any development involving a prospective Material Adverse Effect, in or affecting the business, properties, management,
condition (financial or otherwise), results of operations, or prospects of the Company and the Subsidiaries taken as a whole, (ii)
other than the transactions contemplated by this Agreement, any transaction which is material to the Company and the Subsidiaries
taken as a whole, (iii) any obligation or liability, direct or contingent (including any off-balance sheet obligations), incurred
by the Company or any Subsidiary, which is material to the Company and the Subsidiaries taken as a whole, (iv) any material
change in the capital stock (other than (a) as a result of the sale of Placement Shares (b) as described in a proxy statement filed
on Schedule 14A or a Registration Statement on Form S-4 and otherwise publicly announced, (c) changes in the number of outstanding
shares of Common Stock due to the issuance of shares upon the exercise or conversion of securities exercisable for, or convertible
into, shares of Common Stock outstanding on the date hereof, or (d) the issuance of options or warrants to purchase Common
Stock or the issuance of restricted stock or other equity awards of the Company, in each case, pursuant to the Company’s
equity incentive plans) or outstanding long-term indebtedness of the Company or the Subsidiaries or (v) any dividend or distribution
of any kind declared, paid or made on the capital stock of the Company or any Subsidiary, other than in each case above (A) in
the ordinary course of business, (B) as otherwise disclosed in the Registration Statement or Prospectus (including the Incorporated
Documents) or (C) where such matter, item, change, or development would not make the statements in the Registration Statement or
the Prospectus contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.

 

j.            Capitalization.
The issued and outstanding shares of capital stock of the Company have been validly issued, are fully paid and non-assessable and,
other than as disclosed in or contemplated by the Registration Statement or the Prospectus, are not subject to any preemptive rights,
rights of first refusal or similar rights. The Company has an authorized, issued and outstanding capitalization as set forth in
the Registration Statement and the Prospectus as of the dates referred to therein (other than the grant of additional options,
restricted stock or other equity awards under the Company’s equity incentive plans, or changes in the number of outstanding
Common Stock of the Company due to the issuance of shares upon the exercise or conversion of securities exercisable for, or convertible
into, Common Stock outstanding on the date hereof or as a result of the issuance of Placement Shares) and such authorized capital
stock conforms in all material respects to the description thereof set forth in the Registration Statement and the Prospectus.
The description of the Common Stock in the Registration Statement and the Prospectus is complete and accurate in all material respects.
Except as disclosed in or contemplated by the Registration Statement or the Prospectus, as of the date referred to therein, the
Company did not have outstanding any options to purchase, or any rights or warrants to subscribe for, or any securities or obligations
convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares of capital stock or other securities.

 

    	 	9	 

     

    

 

k.          Authorization;
Enforceability. The Company has full legal right, power and authority to enter into this Agreement and perform the transactions
contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company and is a legal, valid and binding
agreement of the Company enforceable against the Company in accordance with its terms, except to the extent that (i) enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally
and by general equitable principles and (ii) the indemnification and contribution provisions of Section 11 hereof may be limited
by federal or state securities laws and public policy considerations in respect thereof.

 

l.            Authorization
of Placement Shares. The Placement Shares, when issued and delivered pursuant to the terms approved by the board of directors
of the Company or a duly authorized committee thereof, or a duly authorized executive committee, against payment therefor as provided
herein, will be duly and validly authorized and issued and fully paid and nonassessable, free and clear of any pledge, lien, encumbrance,
security interest or other claim (other than any pledge, lien, encumbrance, security interest or other claim arising from an act
or omission of an Agent or a purchaser), including any statutory or contractual preemptive rights, resale rights, rights of first
refusal or other similar rights, and will be registered pursuant to Section 12 of the Exchange Act. The Placement Shares, when
issued, will conform in all material respects to the description thereof set forth in or incorporated into the Prospectus.

 

m.           No
Consents Required. No consent, approval, authorization, order, registration or qualification of or with any court or arbitrator
or any governmental or regulatory authority having jurisdiction over the Company is required for the execution, delivery and performance
by the Company of this Agreement, and the issuance and sale by the Company of the Placement Shares as contemplated hereby, except
for the registration of the Placement Shares under the Securities Act and such consents, approvals, authorizations, orders and
registrations or qualifications as may be required under the Exchange Act, applicable state securities laws or by the by-laws and
rules of Financial Industry Regulatory Authority (“FINRA”) or the Exchange in connection with the sale of the
Placement Shares by the Agents.

 

n.           No
Preferential Rights. Except as set forth in the Registration Statement and the Prospectus, (i) no person, as such term is defined
in Rule 1-02 of Regulation S-X promulgated under the Securities Act (each, a “Person”), has the right, contractual
or otherwise, to cause the Company to issue or sell to such Person any Common Stock or shares of any other capital stock or other
securities of the Company (other than upon the exercise of options or warrants to purchase Common Stock or upon the exercise of
options that may be granted or issuances of Common Stock or other equity awards, from time to time under the Company’s equity
incentive plans), (ii) no Person has any preemptive rights, rights of first refusal, or any other rights (whether pursuant to a
“poison pill” provision or otherwise) to purchase any Common Stock or shares of any other capital stock or other securities
of the Company from the Company which have not been duly waived with respect to the offering contemplated hereby, (iii) except
as may be disclosed to the Agents in writing, no Person has the right to act as an underwriter or as a financial advisor to the
Company in connection with the offer and sale of the Common Stock, and (iv) no Person has the right, contractual or otherwise,
to require the Company to register under the Securities Act any Common Stock or shares of any other capital stock or other securities
of the Company, or to include any such shares or other securities in the Registration Statement or the offering contemplated thereby,
whether as a result of the filing or effectiveness of the Registration Statement or the sale of the Placement Shares as contemplated
thereby or otherwise, except for such rights as have been waived on or prior to the date hereof.

 

    	 	10	 

     

    

 

o.           Independent
Registered Public Accounting Firm. EisnerAmper LLP and PricewaterhouseCoopers LLP (each the
“Accountant”), whose reports on the consolidated financial statements of the Company are filed with the
Commission as part of the Company’s most recent Annual Report on Form 10-K filed with the Commission and incorporated
into the Registration Statement, are and, during the periods covered by their reports, were independent registered public
accounting firms within the meaning of the Securities Act and the Public Company Accounting Oversight Board (United States).
To the Company’s knowledge, neither Accountant is  in violation of the auditor independence requirements of the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) with respect to the Company.

 

p.           Enforceability
of Agreements. All agreements between the Company and third parties expressly referenced in the Prospectus, other than such
agreements that have expired by their terms or whose termination is disclosed in documents filed by the Company on EDGAR, are legal,
valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except
to the extent that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally and by general equitable principles and (ii) the indemnification provisions of certain agreements
may be limited by federal or state securities laws or public policy considerations in respect thereof, except for any unenforceability
that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

q.           No
Litigation. Except as set forth in the Registration Statement or the Prospectus, there are no legal, governmental or regulatory
actions, suits or proceedings pending, nor, to the Company’s knowledge, any legal, governmental or regulatory investigations,
to which the Company or a Subsidiary is a party or to which any property of the Company or a Subsidiary is the subject that, individually
or in the aggregate, if determined adversely to the Company or any Subsidiary, would reasonably be expected to have a Material
Adverse Effect or materially and adversely affect the ability of the Company to perform its obligations under this Agreement; to
the Company’s knowledge, no such actions, suits or proceedings are threatened or contemplated by any governmental or regulatory
authority or threatened by others that, individually or in the aggregate, if determined adversely to the Company or any Subsidiary,
would reasonably be expected to have a Material Adverse Effect; or (i) there are no current or pending legal, governmental or regulatory
actions, suits or proceedings, or, to the Company’s knowledge, investigations, that are required under the Securities Act
to be described in the Prospectus that are not described in the Prospectus including any Incorporated Document; and (ii) there
are no contracts or other documents that are required under the Securities Act to be filed as exhibits to the Registration Statement
that are not so filed.

 

    	 	11	 

     

    

 

r.            Licenses
and Permits. Except as set forth in the Registration Statement or the Prospectus, the Company and the Subsidiaries possess
or have obtained, all licenses, certificates, consents, orders, approvals, permits and other authorizations issued by, and have
made all declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities
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 (the “Permits”), except where the failure to possess, obtain
or make the same would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Except
as disclosed in the Registration Statement or the Prospectus, neither the Company nor the Subsidiaries have received written notice
of any proceeding relating to revocation or modification of any such Permit or has any reason to believe that such Permit will
not be renewed in the ordinary course, except where the failure to obtain any such renewal would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

s.          No
Material Defaults. Neither the Company nor the Subsidiaries have defaulted on any installment on indebtedness for borrowed
money or on any rental on one or more long-term leases, which defaults, individually or in the aggregate, would reasonably be expected
to have a Material Adverse Effect. The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since
the filing of its last Annual Report on Form 10-K, indicating that it (i) has failed to pay any dividend or sinking fund installment
on preferred stock or (ii) has defaulted on any installment on indebtedness for borrowed money or on any rental on one or more
long-term leases, which defaults, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

t.            Certain
Market Activities. Neither the Company, nor the Subsidiaries, nor, to the Company’s knowledge, any of their respective
directors, officers or controlling persons has taken, directly or indirectly, any action designed, or that has constituted or might
reasonably be expected to cause or result in, under the Exchange Act or otherwise, the stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the Placement Shares.

 

u.           Broker/Dealer
Relationships. Neither the Company nor the Subsidiaries or any related entities (i) is required to register as a “broker”
or “dealer” in accordance with the provisions of the Exchange Act or (ii) directly or indirectly through one or more
intermediaries, controls or is a “person associated with a member” or “associated person of a member” (within
the meaning set forth in the FINRA Manual).

 

v.           No
Reliance. The Company has not relied upon either of the Agents or legal counsel for the Agents for any legal, tax or accounting
advice in connection with the offering and sale of the Placement Shares.

 

w.          Taxes.
The Company and the Subsidiaries have filed all federal, state, local and foreign tax returns which have been required to be filed
and paid all taxes shown thereon through the date hereof, to the extent that such taxes have become due and are not being contested
in good faith, except where the failure to do so would not reasonably be expected to have a Material Adverse Effect. Except as
otherwise disclosed in or contemplated by the Registration Statement or the Prospectus, no tax deficiency has been determined adversely
to the Company or the Subsidiaries which has had, or would reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect. The Company has no knowledge of any federal, state or other governmental tax deficiency, penalty or assessment
which has been or might be asserted or threatened against it which would have a Material Adverse Effect.

 

    	 	12	 

     

    

 

x.         Title
to Real and Personal Property. Except as set forth in the Registration Statement or the Prospectus, the Company and the Subsidiaries
have good and valid title in fee simple to all items of real property and good and marketable title to all personal property (excluding
Intellectual Property which is addressed below) described in the Registration Statement or Prospectus as being owned by them that
are material to the businesses of the Company or such Subsidiaries, in each case free and clear of all liens, encumbrances and
claims, except those that (i) do not materially interfere with the use made and proposed to be made of such property by the Company
and the Subsidiaries or (ii) would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
Any real property described in the Registration Statement or Prospectus as being leased by the Company and the Subsidiaries is
held by them under valid, existing and enforceable leases, except those that (A) do not materially interfere with the use made
or proposed to be made of such property by the Company or the Subsidiaries (B) would not be reasonably expected, individually or
in the aggregate, to have a Material Adverse Effect.

 

y.         Intellectual
Property. Except as set forth in the Registration Statement or the Prospectus, to the Company’s knowledge, the
Company and the Subsidiaries own or possess adequate enforceable rights to use all patents, patent applications, trademarks
(both registered and unregistered), service marks, trade names, trademark registrations, service mark registrations,
copyrights, licenses and know-how (including trade secrets and other unpatented and/or unpatentable proprietary or
confidential information, systems or procedures) (collectively, the “Intellectual Property”), necessary for
the conduct of their respective businesses as conducted as of the date hereof, except to the extent that the failure to own
or possess adequate rights to use such Intellectual Property would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; except as disclosed in writing to the Agents, the Company and the Subsidiaries
have not received any written notice of any claim of infringement or conflict which asserted Intellectual Property rights of
others, which infringement or conflict, if the subject of an unfavorable decision, would reasonably be expected to result in
a Material Adverse Effect; there are no pending, or to the Company's knowledge, threatened judicial proceedings or
interference proceedings against the Company challenging the Company's or any Subsidiary's rights in or to or the validity of
the scope of any of the Company's or any of its Subsidiary's material patents, patent applications or
proprietary information, except for such proceedings that would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect; no other entity or individual has any right or claim in any of the Company's or any of its
Subsidiary's material patents, patent applications or any patent to be issued therefrom by virtue of any contract, license or
other agreement entered into between such entity or individual and the Company or a Subsidiary or by any non-contractual
obligation, other than by written licenses granted by the Company or a Subsidiary, except for such right or claim that would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; the Company and the
Subsidiaries have not received any written notice of any claim challenging the rights of the Company or the Subsidiaries in
or to any Intellectual Property owned, licensed or optioned by the Company or the Subsidiaries which claim, if the subject of
an unfavorable decision would reasonably be expected to result in a Material Adverse Effect.

 

    	 	13	 

     

    

 

z.         Environmental
Laws. Except as set forth in the Registration Statement or the Prospectus, the Company and the Subsidiaries (i) are in compliance
in all material respects with any and all applicable federal, state, local and foreign laws, rules, regulations, decisions and
orders relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants (collectively, “Environmental Laws”); (ii) have received and are in compliance in all material
respects with all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective
businesses as described in the Registration Statement and the Prospectus; and (iii) have not received notice of any actual or potential
liability for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants
or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above, for any such failure to comply or failure to receive
required permits, licenses, other approvals or liability as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

aa.         Disclosure
Controls. The Company maintains systems of internal accounting controls designed to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets
is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company is not aware of any material weaknesses in its internal control over financial reporting (other than as set forth in
the Prospectus). Since the date of the latest audited financial statements of the Company included in the Prospectus, there has
been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably
likely to materially affect, the Company’s internal control over financial reporting (other than as set forth in the Prospectus).
The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company
and designed such disclosure controls and procedures to ensure that material information relating to the Company and the Subsidiaries
is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s
Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, is being prepared. The Company’s certifying
officers have evaluated the effectiveness of the Company’s controls and procedures as of a date within 90 days prior to the
filing date of the Form 10-K for the fiscal year most recently ended (such date, the “Evaluation Date”). The
Company presented in its Form 10-K for the fiscal year most recently ended the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation
Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of
Regulation S-K under the Securities Act) or, to the Company’s knowledge, in other factors that could significantly adversely
affect the Company’s internal controls. To the knowledge of the Company, the Company’s “internal controls over
financial reporting” and “disclosure controls and procedures” are effective.

 

    	 	14	 

     

    

 

bb.         Sarbanes-Oxley.
There is and has been no failure on the part of the Company or, to the knowledge of the Company, any of the Company’s directors
or officers, in their capacities as such, to comply with any applicable provisions of the Sarbanes-Oxley Act and the rules and
regulations promulgated thereunder. Each of the principal executive officer and the principal financial officer of the Company
(or each former principal executive officer of the Company and each former principal financial officer of the Company as applicable)
has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules,
forms, statements and other documents required to be filed by it or furnished by it to the Commission during the past 12 months.
For purposes of the preceding sentence, “principal executive officer” and “principal financial officer”
shall have the meanings given to such terms in the Sarbanes-Oxley Act.

 

cc.         Finder’s
Fees. Neither the Company nor the Subsidiaries have incurred any liability for any finder’s fees, brokerage commissions
or similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect to the
Agents pursuant to this Agreement.

 

dd.         Labor
Disputes. No labor disturbance by or dispute with employees of the Company or the Subsidiaries exists or, to the knowledge
of the Company, is threatened which would reasonably be expected to result in a Material Adverse Effect

 

ee.         Investment
Company Act. Neither the Company nor the Subsidiaries have or, after giving effect to the offering and sale of the Placement
Shares, will be an “investment company” or an entity “controlled” by an “investment company,”
as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).

 

ff.         Operations.
The operations of the Company and the Subsidiaries are and have been conducted at all times in compliance in all material respects
with applicable financial record keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all jurisdictions to which the Company or the Subsidiaries are subject, the rules
and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any
governmental agency having jurisdiction over the Company (collectively, the “Money Laundering Laws”), except
as would not reasonably be expected to result in a Material Adverse Effect; and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving the Company or the Subsidiaries with respect to the
Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

gg.         Off-Balance
Sheet Arrangements. There are no transactions, arrangements and
other relationships between and/or among the Company, and/or, to the knowledge of the Company, any of its affiliates and any unconsolidated
entity, including, but not limited to, any structured finance, special purpose or limited purpose entity (each, an “Off-Balance
Sheet Transaction”) that would reasonably be expected to affect materially the Company’s liquidity or the availability
of or requirements for its capital resources, including those Off-Balance Sheet Transactions described in the Commission’s
Statement about Management’s Discussion and Analysis of Financial Conditions and Results of Operations (Release Nos. 33-8056;
34-45321; FR-61), required to be described in the Prospectus which have not been described as required.

 

hh.         Underwriting
Agreements. The Company is not a party to any agreement with an agent or underwriter for any other “at the market”
or continuous equity transaction, provided, however, that nothing in this Agreement shall prohibit the Company from entering
into a committed equity financing or similar transaction.

 

    	 	15	 

     

    

 

ii.         ERISA.
To the knowledge of the Company, (i) each material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), that is maintained, administered or contributed to by the
Company or any of its affiliates for employees or former employees of the Company and the Subsidiaries has been maintained in material
compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited
to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); (ii) no prohibited transaction, within
the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result in a material liability to the
Company with respect to any such plan excluding transactions effected pursuant to a statutory or administrative exemption; and
(iii) for each such plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated
funding deficiency” as defined in Section 412 of the Code has been incurred, whether or not waived, and the fair market value
of the assets of each such plan (excluding for these purposes accrued but unpaid contributions) equals or exceeds the present value
of all benefits accrued under such plan determined using reasonable actuarial assumptions other than, in the case of (i), (ii)
and (iii) above, as would not reasonably be expected to have a Material Adverse Effect.

 

jj.         Forward
Looking Statements. No forward looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of
the Exchange Act) (a “Forward Looking Statement”) contained in the Registration Statement and the Prospectus
has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith. The Forward Looking Statements
incorporated by reference in the Registration Statement and the Prospectus from the Company’s Annual Report on Form 10-K
for the fiscal year most recently ended (i) except for any Forward Looking Statement included in any financial statements and notes
thereto, are, to the Company’s knowledge, within the coverage of the safe harbor for forward looking statements set forth
in Section 27A of the Securities Act, Rule 175(b) under the Securities Act or Rule 3b-6 under the Exchange Act, as applicable,
(ii) were made by the Company with a reasonable basis and in good faith and reflect the Company’s good faith commercially
reasonable best estimate of the matters described therein as of the respective dates on which such statements were made, and (iii)
have been prepared in accordance with Item 10 of Regulation S-K under the Securities Act.

 

kk.         Margin
Rules. Neither the issuance, sale and delivery of the Placement Shares nor the application of the proceeds thereof by the Company
as described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors of the
Federal Reserve System or any other regulation of such Board of Governors.

 

ll.         Insurance.
The Company and the Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as the Company and
the Subsidiaries reasonably believe are adequate for the conduct of their businesses and as is customary for companies of similar
size engaged in similar businesses in similar industries.

 

    	 	16	 

     

    

 

mm.         No
Improper Practices. (i) Neither the Company nor, to the Company's knowledge, the Subsidiaries, nor to the Company's knowledge,
any of their respective executive officers has, in the past five years, made any unlawful contributions to any candidate for any
political office (or failed fully to disclose any contribution in violation of law) or made any contribution or other payment to
any official of, or candidate for, any federal, state, municipal, or foreign office or other person charged with similar public
or quasi-public duty in violation of any law or of the character required to be disclosed in the Prospectus; (ii) to the Company’s
knowledge, no relationship, direct or indirect, exists between or among the Company or, to the Company's knowledge, any Subsidiary
or any affiliate of any of them, on the one hand, and the directors, officers and stockholders of the Company or, to the Company's
knowledge, any Subsidiary, on the other hand, that is required by the Securities Act to be described in the Registration Statement
and the Prospectus that is not so described; (iii) to the Company’s knowledge, no relationship, direct or indirect, exists
between or among the Company or any Subsidiary or any affiliate of them, on the one hand, and the directors, officers, stockholders
or directors of the Company or, to the Company's knowledge, any Subsidiary, on the other hand, that is required by the rules of
FINRA to be described in the Registration Statement and the Prospectus that is not so described; (iv) except as described in the
Prospectus, there are no material outstanding loans or advances or material guarantees of indebtedness by the Company or, to the
Company's knowledge, any Subsidiary to or for the benefit of any of their respective officers or directors or any of the members
of the families of any of them; and (v) to the Company’s knowledge, no officer or director of the Company has offered, or
caused any placement agent to offer, Common Stock to any person with the intent to influence unlawfully (A) a customer or supplier
of the Company or any Subsidiary to alter the customer's or supplier's level or type of business with the Company or any Subsidiary
or (B) a trade journalist or publication to write or publish favorable information about the Company or any Subsidiary or any of
their respective products or services, and, (vi) neither the Company nor any Subsidiary nor, to the Company's knowledge, any employee
or agent of the Company or any Subsidiary has made any payment of funds of the Company or any Subsidiary or received or retained
any funds in violation of any law, rule or regulation (including, without limitation, the Foreign Corrupt Practices Act of 1977),
which payment, receipt or retention of funds is of a character required to be disclosed in the Registration Statement or the Prospectus.

 

nn.         Status
Under the Securities Act. The Company was not and is not an ineligible issuer as defined in Rule 405 under the Securities Act
at the times specified in Rules 164 and 433 under the Securities Act in connection with the offering of the Placement Shares.

 

oo.         No
Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus, as of its issue date and
as of each Applicable Time (as defined in Section 25 below) through the completion of any Placement for which such Issuer Free
Writing Prospectus is used or deemed used, did not, does not and will not include any information that conflicted, conflicts or
will conflict with the information contained in the Registration Statement or the Prospectus, including any incorporated document
deemed to be a part thereof that has not been superseded or modified. The foregoing sentence does not apply to statements in or
omissions from any Issuer Free Writing Prospectus based upon and in conformity with written information furnished to the Company
by the Agents specifically for use therein.

 

    	 	17	 

     

    

 

pp.         No
Conflicts. Neither the execution of this Agreement by the Company, nor the issuance, offering or sale of the Placement Shares,
nor the consummation by the Company of any of the transactions contemplated herein and therein, nor the compliance by the Company
with the terms and provisions hereof and thereof will conflict with, or will result in a breach of, any of the terms and provisions
of, or has constituted or will constitute a default under, or has resulted in or will result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Company pursuant to the terms of any contract or other agreement
to which the Company may be bound or to which any of the property or assets of the Company is subject, except (i) such conflicts,
breaches or defaults as may have been waived and (ii) such conflicts, breaches, defaults, liens, charges or encumbrances that would
not reasonably be expected to have a Material Adverse Effect; nor will such action result (x) in any violation of the provisions
of the certificate of incorporation or bylaws of the Company, or (y) in any material violation of the provisions of any statute
or any order, rule or regulation applicable to the Company or of any court or of any federal, state or other regulatory authority
or other government body having jurisdiction over the Company, except where such violation would not reasonably be expected to
have a Material Adverse Effect.

 

qq.         Clinical
Studies. The clinical, pre-clinical and other studies and tests conducted by or, to the knowledge of the Company, on behalf
of the Company were, and, if still pending, are being, conducted in accordance in all material respects with all statutes, laws,
rules and regulations, as applicable (including, without limitation, those administered by the U.S. Food and Drug Administration’s
(the “FDA”) Good Laboratory Practices and Good Clinical Practices as well as all other applicable rules, regulations,
or requirements of the FDA or by any foreign, federal, state or local governmental or regulatory authority performing functions
similar to those performed by the FDA), except where the failure do so would not have a Material Adverse Effect. Except as set
forth in the Registration Statement and Prospectus, the Company has not received any written notices or other written correspondence
from the FDA or any other foreign, federal, state or local governmental or regulatory authority performing functions similar to
those performed by the FDA requiring the Company to terminate or suspend any ongoing clinical or pre-clinical studies or tests.

 

rr.         Compliance
Program. Except as disclosed in the Registration Statement and the Prospectus, the Company has established and administers
a compliance program applicable to the Company, to assist the Company and the directors, officers and employees of the Company
in complying with applicable regulatory guidelines (including, without limitation, those administered by the FDA and any other
foreign, federal, state or local governmental or regulatory authority performing functions similar to those performed by the FDA);
except where such noncompliance would not reasonably be expected to have a Material Adverse Effect.

 

ss.         OFAC.

 

(i)          The
Company represents that, neither the Company nor the Subsidiaries (collectively, the “Entities”, or, to the Company’s
knowledge, any director, officer, employee, agent, affiliate or representative of the Entities, is a government, individual, or
entity (in this paragraph (ss), “Person”) that is, or is owned or controlled by a Person that is:

 

    	 	18	 

     

    

 

 

(a)          the
subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control,
the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
“Sanctions”), nor

 

(b)          located,
organized or resident in a country or territory that is the subject of Sanctions.

 

(ii)         The
Company represents and covenants that it will not, directly or indirectly, knowingly use the proceeds of the offering, or lend,
contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:

 

(a)          to
fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding
or facilitation, is the subject of Sanctions; or

 

(b)          in
any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering,
whether as underwriter, advisor, investor or otherwise).

 

(iii)        The
Company represents and covenants that, except as detailed in the Prospectus, for the past five years, it has not knowingly engaged
in, is not now knowingly engaged in, and will not knowingly engage in, any dealings or transactions with any Person, or in any
country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.

 

tt.         Stock
Transfer Taxes. On each Settlement Date, all stock transfer or other taxes (other than income taxes) which are required to
be paid by the Company in connection with the sale and transfer of the Placement Shares to be sold hereunder will be, or will have
been, fully paid or provided for by the Company and all laws imposing such taxes will be or will have been fully complied with
by the Company in all material respects.

 

Any certificate in
the form of Exhibit 7(l) signed by an executive officer of the Company and delivered to an Agent or to counsel for the Agents pursuant
to or in connection with this Agreement shall be deemed to be a representation and warranty by the Company, as applicable, to the
Agents under this Agreement as to the matters set forth therein.

 

    	 	19	 

     

    

 

7.          Covenants
of the Company. The Company covenants and agrees with the Agents that:

  

a.           Registration
Statement Amendments. After the date of this Agreement and during any period in which a Prospectus relating to any Placement
Shares is required to be delivered by the Agents under the Securities Act (including in circumstances where such requirement may
be satisfied pursuant to Rule 172 under the Securities Act) (the “Prospectus Delivery Period”), (i) the Company
will notify the Agents promptly of the time when any subsequent amendment to the Registration Statement, other than documents incorporated
by reference, has been filed with the Commission and/or has become effective or any subsequent supplement to the Prospectus, other
than documents incorporated by reference, has been filed and of any request by the Commission for any amendment or supplement to
the Registration Statement or Prospectus or for additional information, (ii) the Company will prepare and file with the Commission,
within a reasonable period following the Agents’ request, any amendments or supplements to the Registration Statement or
Prospectus that, in either of the Agents’ reasonable opinion, may be necessary or advisable in connection with the distribution
of the Placement Shares by an Agent (provided, however, that the failure of the Agents to make such request shall not relieve the
Company of any obligation or liability hereunder, or affect the Agents’ right to rely on the representations and warranties
made by the Company in this Agreement and provided, further, that the only remedy the Agents shall have with respect to the failure
to make such filing shall be to cease making sales under this Agreement until such amendment or supplement is filed); (iii) the
Company will not file any amendment or supplement to the Registration Statement or Prospectus other than documents incorporated
by reference, relating to the Placement Shares or a security convertible into the Placement Shares unless a copy thereof has been
submitted to the Agents within a reasonable period of time before the filing and the Agents has not reasonably objected thereto
(provided, however, that (A) the failure of the Agents to make such objection shall not relieve the Company of any obligation or
liability hereunder, or affect the Agents’ right to rely on the representations and warranties made by the Company in this
Agreement, and (B) the Company has no obligation to provide the Agents any advance copy of such filing or to provide the Agents
an opportunity to object to such filing if such filing does not name the Agents or does not relate to the transactions contemplated
by this Agreement, provided, further, that the only remedy the Agents shall have with respect to the failure to by the Company
to obtain such consent shall be to cease making sales under this Agreement) and the Company will furnish to the Agents at the time
of filing thereof a copy of any document that upon filing is deemed to be incorporated by reference into the Registration Statement
or Prospectus, except for those documents available via EDGAR; and (iv) the Company will cause each amendment or supplement to
the Prospectus to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities
Act or, in the case of any document to be incorporated therein by reference, to be filed with the Commission as required pursuant
to the Exchange Act, within the time period prescribed (the determination to file or not file any amendment or supplement with
the Commission under this Section 7(a), based on the Company’s reasonable opinion or reasonable objections, shall be made
exclusively by the Company).

 

b.           Notice
of Commission Stop Orders. The Company will advise the Agents, promptly after it receives notice or obtains knowledge thereof,
of the issuance or threatened issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement,
of the suspension of the qualification of the Placement Shares for offering or sale in any jurisdiction, or of the initiation or
threatening of any proceeding for any such purpose; and it will promptly use its commercially reasonable efforts to prevent the
issuance of any stop order or to obtain its withdrawal if such a stop order should be issued. The Company will advise the Agents
promptly after it receives any request by the Commission for any amendments to the Registration Statement or any amendment or supplements
to the Prospectus or any Issuer Free Writing Prospectus or for additional information related to the offering of the Placement
Shares or for additional information related to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus.

 

    	 	20	 

     

    

 

c.           Delivery
of Prospectus; Subsequent Changes. During the Prospectus Delivery Period, the Company will use its commercially reasonable
efforts to comply in all material respects with all requirements imposed upon it by the Securities Act, as from time to time in
force, and to file on or before their respective due dates all reports and any definitive proxy or information statements required
to be filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under
the Exchange Act. If the Company has omitted any information from the Registration Statement pursuant to Rule 430A under the Securities
Act, it will use its commercially reasonable efforts to comply with the provisions of and make all requisite filings with the Commission
pursuant to said Rule 430A and to notify the Agents promptly of all such filings. If during the Prospectus Delivery Period any
event occurs as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances then existing,
not misleading, or if during such Prospectus Delivery Period it is necessary to amend or supplement the Registration Statement
or Prospectus to comply with the Securities Act, the Company will promptly notify the Designated Agent to suspend the offering
of Placement Shares during such period and the Company will promptly amend or supplement the Registration Statement or Prospectus
(at the expense of the Company) so as to correct such statement or omission or effect such compliance; provided, however,
that the Company may delay any such amendment or supplement if, in the judgment of the Company, it is in the best interests of
the Company to do so.

 

d.           Listing
of Placement Shares. During the Prospectus Delivery Period, the Company will use its commercially reasonable efforts to cause
the Placement Shares to be listed on the Exchange and to qualify the Placement Shares for sale under the securities laws of such
jurisdictions as each of the Agents reasonably designates and to continue such qualifications in effect so long as required for
the distribution of the Placement Shares; provided, however, that the Company shall not be required in connection therewith to
qualify as a foreign corporation or dealer in securities or file a general consent to service of process in any jurisdiction.

 

e.           Delivery
of Registration Statement and Prospectus. The Company will furnish to the Agents and their counsel (at the expense of the Company)
copies of the Registration Statement, the Prospectus (including all documents incorporated by reference therein) and all amendments
and supplements to the Registration Statement or Prospectus that are filed with the Commission during the Prospectus Delivery Period
(including all documents filed with the Commission during such period that are deemed to be incorporated by reference therein),
in each case as soon as reasonably practicable and in such quantities as either of the Agents may from time to time reasonably
request and, at the Agents’ request, will also furnish copies of the Prospectus to each exchange or market on which sales
of the Placement Shares may be made; provided, however, that the Company shall not be required to furnish any document (other than
the Prospectus) to the Agents to the extent such document is available on EDGAR.

 

f.            Earnings
Statement. The Company will make generally available to its security holders as soon as practicable, but in any event not later
than 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering a 12-month period that
satisfies the provisions of Section 11(a) and Rule 158 of the Securities Act.

 

    	 	21	 

     

    

 

g.           Use
of Proceeds. The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use of Proceeds.”

 

h.           Notice
of Other Sales. Without the prior written consent of the Agents, the Company will not, directly or indirectly, offer to sell,
sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered
pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase
or acquire, Common Stock during the period beginning on the fifth (5th) Trading Day immediately prior to the date on which any
Placement Notice is delivered to the Agents hereunder and ending on the fifth (5th) Trading Day immediately following the final
Settlement Date with respect to Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice has been terminated
or suspended prior to the sale of all Placement Shares covered by a Placement Notice, the date of such suspension or termination);
and will not directly or indirectly in any other “at the market” or continuous equity transaction offer to sell, sell,
contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant
to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire,
Common Stock prior to the termination of this Agreement; provided, however, that such restrictions will not be required in connection
with the Company’s issuance or sale of (i) Common Stock, options to purchase Common Stock or Common Stock issuable upon the
exercise of options, pursuant to any employee or director stock option or benefits plan, stock ownership plan or dividend reinvestment
plan (but not Common Stock subject to a waiver to exceed plan limits in its dividend reinvestment plan) of the Company whether
now in effect or hereafter implemented; (ii) Common Stock issuable upon conversion of securities or the exercise of warrants, options
or other rights in effect or outstanding, and disclosed in filings by the Company available on EDGAR or otherwise in writing to
the Agents and (iii) Common Stock, or securities convertible into or exercisable for Common Stock, offered and sold in a negotiated
transaction to vendors, customers, strategic partners or potential strategic partners or other investors conducted in a manner
so as not to be integrated with the offering of Common Stock hereby.

 

i.            Change
of Circumstances. The Company will, at any time during the pendency of a Placement Notice advise the Agents promptly after
it shall have received notice or obtained knowledge thereof, of any information or fact that would alter or affect in any material
respect any opinion, certificate, letter or other document required to be provided to the Agents pursuant to this Agreement.

 

j.            Due
Diligence Cooperation. During the term of this Agreement, the Company will cooperate with any reasonable due diligence review
conducted by the Agents or its representatives in connection with the transactions contemplated hereby, including, without limitation,
providing information and making available documents and senior corporate officers, during regular business hours and at the Company’s
principal offices or some other location mutually agreed to by the parties, as the Agents may reasonably request.

 

    	 	22	 

     

    

 

k.          Required
Filings Relating to Placement of Placement Shares. The Company agrees that on such dates as the Securities Act shall require,
the Company will (i) file a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b) under the Securities
Act (each and every filing under Rule 424(b), a “Filing Date”), which prospectus supplement will set forth,
within the relevant period, the amount of Placement Shares sold through the Agents, the Net Proceeds to the Company and the compensation
payable by the Company to the Agents with respect to such Placement Shares or, if any such prospectus supplement is not filed pursuant
to Rule 424(b), otherwise include such information in the Company’s Exchange Act filings on such dates as shall be required
by the Exchange Act, and (ii) deliver such number of copies of each such prospectus supplement to each exchange or market on which
such sales were effected as may be required by the rules or regulations of such exchange or market.

 

l.            Representation
Dates; Certificate. Each time during the term of this Agreement that the Company:

 

(i)          post-effectively
amends the Registration Statement or supplements the Prospectus in either case such that the audited financial information contained
therein is amended, but not by means of incorporation of documents by reference into the Registration Statement or the Prospectus
relating to the Placement Shares;

 

(ii)         files
an annual report on Form 10-K under the Exchange Act (including any Form 10-K/A containing amended financial information or a material
amendment to the previously filed Form 10-K);

 

(iii)        files
its quarterly reports on Form 10-Q under the Exchange Act; or

 

(iv)        files
a current report on Form 8-K containing amended audited financial information (other than information “furnished” pursuant
to Items 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of
certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) under the
Exchange Act;

 

(each date of filing of one or
more of the documents referred to in clauses (i) through (iv) shall be a “Representation Date”)

 

the Company shall furnish the Agents no
later than five (5) Trading Days after each Representation Date (but in the case of clause (iv) above only if either of the Agents
reasonably determines that the information contained in such Form 8-K is material) with a certificate, in the form attached hereto
as Exhibit 7(l). The requirement to provide a certificate under this Section 7(l) shall be automatically waived for any Representation
Date occurring at a time at which no Placement Notice is pending, which waiver shall continue until the earlier to occur of the
date the Company delivers a Placement Notice hereunder (which for such calendar quarter shall be considered a Representation Date)
and the next occurring Representation Date; provided, however, that such waiver shall not apply for any Representation Date on
which the Company files its annual report on Form 10-K. Notwithstanding the foregoing, (i) upon the delivery of the first Placement
Notice hereunder and (ii) if the Company subsequently decides to sell Placement Shares following a Representation Date when the
Company relied on such waiver and did not provide the Agents with a certificate under this Section 7(l), then before the Company
delivers the Placement Notice or the Agents sells any Placement Shares, the Company shall provide the Agents with a certificate,
in the form attached hereto as Exhibit 7(l), dated the date of the Placement Notice.

 

    	 	23	 

     

    

 

m.           Legal
Opinion. On or prior to the date of the first Placement Notice given hereunder and within five (5) Trading Days after each
subsequent Representation Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto
as Exhibit 7(l) for which no waiver is applicable, the Company shall cause to be furnished to the Agents written opinions and negative
assurance of Wyrick Robbins Yates & Ponton LLP (“Company Counsel”), or other counsel reasonably satisfactory
to the Agents, in form and substance reasonably satisfactory to the Agents and their counsel; provided, however, the Company shall
be required to furnish to the Agents no more than one opinion hereunder per calendar quarter and the Company shall not be required
to furnish the opinion if the Company does not intend to deliver a Placement Notice in such calendar quarter until such time as
the Company delivers its next Placement Notice; provided, further, that in lieu of such opinions for subsequent periodic filings
under the Exchange Act, counsel may furnish the Agents with a letter (a “Reliance Letter”) to the effect that
the Agents may rely on a prior opinion delivered under this Section 7(m) to the same extent as if it were dated the date of such
letter (except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus
as amended or supplemented as of the date of the Reliance Letter).

 

n.           Comfort
Letter. On or prior to the date of the first Placement Notice given hereunder and within seven (7) Trading Days after each
subsequent Representation Date, other than pursuant to Section 7(l)(iii), with respect to which the Company is obligated to deliver
a certificate in the form attached hereto as Exhibit 7(l) for which no waiver is applicable, the Company shall cause its independent
registered public accounting firm to furnish the Agents letters (the “Comfort Letters”), dated the date the
Comfort Letter is delivered, which shall meet the requirements set forth in this Section 7(n); provided, that if requested by either
of the Agents, the Company shall cause a Comfort Letter to be furnished to the Agents within ten (10) Trading Days of the date
of occurrence of any material transaction or event (including the restatement of the Company’s financial statements) requiring
the filing of a current report on Form 8-K containing material financial information and the date the first Placement Notice is
given hereunder following such a material transaction or event, whichever is later. The Comfort Letter from the Company’s
independent registered public accounting firm shall be in a form and substance reasonably satisfactory to the Agents, (i) confirming
that they are an independent registered public accounting firm within the meaning of the Securities Act and the PCAOB, (ii) stating,
as of such date, the conclusions and findings of such firm with respect to the financial information and other matters ordinarily
covered by independent registered public accounting firms “comfort letters” to underwriters in connection with registered
public offerings (the first such letter, the “Initial Comfort Letter”) and (iii) updating the Initial Comfort
Letter with any information that would have been included in the Initial Comfort Letter had it been given on such date and modified
as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.

 

o.           Market
Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes
or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of Placement Shares or (ii) sell, bid for, or purchase Placement Shares in violation of Regulation
M, or pay anyone any compensation for soliciting purchases of the Placement Shares other than the Agents.

 

    	 	24	 

     

    

 

p.           Investment
Company Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that neither it nor the Subsidiaries
will be or become, at any time prior to the termination of this Agreement, an “investment company,” as such term is
defined in the Investment Company Act.

 

q.           No
Offer to Sell. Other than an Issuer Free Writing Prospectus approved in advance by the Company and the Agents in its capacity
as agent hereunder, neither of the Agents nor the Company (including its agents and representatives, other than the Agents in their
capacity as such) will, directly or indirectly, make, use, prepare, authorize, approve or refer to any written communication (as
defined in Rule 405 under the Securities Act), required to be filed with the Commission, that constitutes an offer to sell or solicitation
of an offer to buy Placement Shares to be sold by each Agent in its capacity as agent hereunder.

 

r.            Sarbanes-Oxley
Act. The Company will maintain and keep accurate books and records reflecting its assets and maintain internal accounting controls
in a manner designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with GAAP and including those policies and procedures that (i) pertain to the maintenance
of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company,
(ii) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of the Company’s
consolidated financial statements in accordance with GAAP, (iii) that receipts and expenditures of the Company are being made
only in accordance with management’s authorization, and (iv) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of the Company’s assets that would have a material effect on its
financial statements. The Company will maintain such controls and other procedures, including, without limitation, those required
by Sections 302 and 906 of the Sarbanes-Oxley Act, and the applicable regulations thereunder that are designed to ensure that information
required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Commission’s rules and forms, including, without limitation,
controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files
or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive
officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding
required disclosure and to ensure that material information relating to the Company or the Subsidiaries is made known to them by
others within those entities, particularly during the period in which such periodic reports are being prepared.

 

    	 	25	 

     

    

 

8.          Representations
and Covenants of the Agents. Each of the Agents represents and warrants that it is duly registered as a broker-dealer under
FINRA, the Exchange Act and the applicable statutes and regulations of each state in which the Placement Shares will be offered
and sold, except such states in which such Agent is exempt from registration or such registration is not otherwise required. Each
of the Agents shall continue, for the term of this Agreement, to be duly registered as a broker-dealer under FINRA, the Exchange
Act and the applicable statutes and regulations of each state in which the Placement Shares will be offered and sold, except such
states in which it is exempt from registration or such registration is not otherwise required, during the term of this Agreement.
Each of the Agents shall comply with all applicable law and regulations, including but not limited to Regulation M, in connection
with the transactions contemplated by this Agreement, including without limitation, the issuance and sale through the Agents of
the Placement Shares.

 

9.          Payment
of Expenses.

 

a.           The
Company will pay all expenses incident to the performance of its obligations under this Agreement, including (i) the preparation,
filing, including any fees required by the Commission, and printing of the Registration Statement (including financial statements
and exhibits) as originally filed and of each amendment and supplement thereto and each Free Writing Prospectus, in such number
as the Agents shall deem reasonably necessary, (ii) the printing and delivery to the Agents of this Agreement and such other documents
as may be reasonably required in connection with the offering, purchase, sale, issuance or delivery of the Placement Shares, (iii) the
preparation, issuance and delivery of the certificates, if any, for the Placement Shares to the Agents, including any stock or
other transfer taxes and any capital duties, stamp duties or other duties or taxes payable upon the sale, issuance or delivery
of the Placement Shares to the Agents, (iv) the fees and disbursements of the counsel, accountants and other advisors to the Company,
(v) the reasonable fees and disbursements of counsel to the Agents, up to a maximum of $25,000, (vi) the fees and expenses
of the transfer agent and registrar for the Common Stock, (vii) the filing fees incident to any review by FINRA of the terms of
the sale of the Placement Shares, and (viii) the fees and expenses incurred in connection with the listing of the Placement
Shares on the Exchange.

 

b.           If
this Agreement is terminated by the Agents in accordance with the provisions of Section 13(a) hereof as a result of a material
breach by the Company of its obligations hereunder, the Company shall reimburse the Agents for all of its reasonable documented
out-of-pocket expenses, including reasonable fees and disbursements of counsel for the Agents (less any amounts paid under clause
(a)(v) above) up to a maximum of $25,000.

 

10.         Conditions
to the Agents’ Obligations. The obligations of the Agents hereunder with respect to a Placement will be subject to the
continuing accuracy and completeness of the representations and warranties made by the Company herein, to the due performance by
the Company of its obligations hereunder, to the completion by the Agents of a due diligence review satisfactory to it in its reasonable
judgment, and to the continuing satisfaction (or waiver by each of the Agents in its sole discretion) of the following additional
conditions:

 

a.           Registration
Statement Effective. The Registration Statement shall have become effective and shall be available for the (i) resale of all
Placement Shares issued to an Agent and not yet sold by such Agent and (ii) sale of all Placement Shares contemplated to be issued
by any Placement Notice.

 

    	 	26	 

     

    

 

b.           No
Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company of any request
for additional information from the Commission or any other federal or state governmental authority during the period of effectiveness
of the Registration Statement, the response to which would require any post-effective amendments or supplements to the Registration
Statement or the Prospectus; (ii) the issuance by the Commission or any other federal or state governmental authority of any
stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii)
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Placement Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;
or (iv) the occurrence of any event that makes any material statement made in the Registration Statement or the Prospectus or any
material document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires
the making of any changes in the Registration Statement, the Prospectus or documents so that, in the case of the Registration Statement,
it will not contain any materially untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading and, that in the case of the Prospectus, it will not contain
any materially untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

c.           No
Misstatement or Material Omission. Neither of the Agents shall not have advised the Company that the Registration Statement
or Prospectus, or any amendment or supplement thereto, contains an untrue statement of fact that in the Agents’ reasonable
opinion is material, or omits to state a fact that in the Agents’ opinion is material and is required to be stated therein
or is necessary to make the statements therein not misleading.

 

d.           Material
Changes. Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with the Commission, there
shall not have been any material adverse change, on a consolidated basis, in the authorized capital stock of the Company or any
Material Adverse Effect, or any development in the business or affairs of the Company that would reasonably be expected to cause
a Material Adverse Effect.

 

e.           Legal
Opinion. The Agents shall have received the opinions and negative assurances of Company Counsel required to be delivered pursuant
to Section 7(m) on or before the date on which such delivery of such opinions are required pursuant to Section 7(m).

 

f.            Comfort
Letter. The Agents shall have received the Comfort Letter required to be delivered pursuant to Section 7(n) on or before the
date on which such delivery of such letter is required pursuant to Section 7(n).

 

g.           Representation
Certificate. The Agents shall have received the certificate required to be delivered pursuant to Section 7(l) on or before
the date on which delivery of such certificate is required pursuant to Section 7(l).

 

h.           Secretary’s
Certificate. On the date of this Agreement, the Agents shall have received a certificate, signed on behalf of the Company by
its corporate Secretary, in form and substance reasonably satisfactory to the Agents and their counsel.

    	 	27	 

     

    

 

i.            No
Suspension. Trading in the Common Stock shall not have been suspended on the Exchange and the Common Stock shall not have been
delisted from the Exchange.

 

j.            Other
Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(l), the Company shall
have furnished to the Agents such appropriate further information, certificates and documents as either of the Agents may have
reasonably requested in writing prior to such date and which are usually and customarily furnished by an issuer of securities in
connection with an underwritten public offering thereof. The Company will furnish the Agents with such conformed copies of such
opinions, certificates, letters and other documents as the Agents shall reasonably request.

 

k.          Securities
Act Filings Made. All filings with the Commission required by Rule 424 under the Securities Act to have been filed prior to
the issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing
by Rule 424.

 

l.            Approval
for Listing. The Placement Shares shall either have been approved for listing on the Exchange, subject only to notice of issuance,
or the Company shall have filed an application for listing of the Placement Shares on the Exchange at, or prior to, the issuance
of any Placement Notice.

 

m.           No
Termination Event. There shall not have occurred any event that would permit the Agents to terminate this Agreement pursuant
to Section 13(a).

 

11.       Indemnification
and Contribution.

 

a.           Company
Indemnification. The Company agrees to indemnify and hold harmless the Agents, its partners, members, directors, officers,
employees and agents and each person, if any, who controls the Agents within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act as follows:

 

(i)          against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, arising out of or based upon
any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto),
or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements
therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact included in any related
Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission
therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading;

 

(ii)         against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, to the extent of the aggregate
amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or
omission; provided that any such settlement is effected with the written consent of the Company, which consent shall not unreasonably
be delayed or withheld; and

 

    	 	28	 

     

    

 

(iii)        against
any and all expense whatsoever, as incurred (including the reasonable documented fees and disbursements of counsel), reasonably
incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above,

 

provided, however, that this indemnity
agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising directly or indirectly out of
any untrue statement or omission or alleged untrue statement or omission made solely in reliance upon and in conformity with written
information furnished to the Company by either of the Agents expressly for use in the Registration Statement (or any amendment
thereto), or in any related Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto).

 

b.           Indemnification
by the Agents. Each Agent agrees to indemnify and hold harmless the Company and its directors and each officer of the Company
who signed the Registration Statement, and each person, if any, who (i) controls the Company within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act or (ii) is controlled by or is under common control with the Company against
any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 11(c), as incurred, but
only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement
(or any amendments thereto) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with
information relating to an Agent furnished to the Company in writing by such Agent expressly for use therein.

 

    	 	29	 

     

    

 

c.           Procedure.
Any party that proposes to assert the right to be indemnified under this Section 11 will, promptly after receipt of notice of commencement
of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this
Section 11, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but
the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might
have to any indemnified party otherwise than under this Section 11 and (ii) any liability that it may have to any indemnified party
under the foregoing provision of this Section 11 unless, and only to the extent that, such omission results in the forfeiture or
material impairment of substantive rights or defenses by the indemnifying party. If any such action is brought against any indemnified
party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to participate in and,
to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the commencement
of the action from the indemnified party, jointly with any other indemnifying party similarly notified, to assume the defense of
the action, with counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party to the
indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party for
any legal or other expenses except as provided below and except for the reasonable costs of investigation subsequently incurred
by the indemnified party in connection with the defense. The indemnified party will have the right to employ its own counsel in
any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless
(1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified
party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified
parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict
exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which
case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or
(4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after
receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges
of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties
shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees,
disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all
such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party
promptly after the indemnifying party receives a written invoice relating to fees, disbursements and other charges in reasonable
detail. An indemnifying party will not, in any event, be liable for any settlement of any action or claim effected without its
written consent. No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise
or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated
by this Section 11 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent (1)
includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding
or claim and (2) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf
of any indemnified party.

 

d.           Intentionally
Omitted.

 

    	 	30	 

     

    

 

e.           Contribution.
In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing
paragraphs of this Section 11 is applicable in accordance with its terms but for any reason is held to be unavailable from the
Company or an Agent, the Company and such Agent will contribute to the total losses, claims, liabilities, expenses and damages
(including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement
of, any action, suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons
other than the Agents, such as persons who control the Company within the meaning of the Securities Act or the Exchange Act, officers
of the Company who signed the Registration Statement and directors of the Company, who also may be liable for contribution) to
which the Company and the Agents may be subject in such proportion as shall be appropriate to reflect the relative benefits received
by the Company on the one hand and the Agents on the other hand. The relative benefits received by the Company on the one hand
and the Agents on the other hand shall be deemed to be in the same proportion as the total net proceeds from the sale of the Placement
Shares (before deducting expenses) received by the Company bear to the total compensation received by the Agents (before deducting
expenses) from the sale of Placement Shares on behalf of the Company. If, but only if, the allocation provided by the foregoing
sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate
to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on
the one hand, and such Agent, on the other hand, with respect to the statements or omission that resulted in such loss, claim,
liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect
to such offering. Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company
or such Agent, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Company and each Agent agree that it would not be just and equitable if contributions pursuant
to this Section 11(e) were to be determined by pro rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the
loss, claim, liability, expense, or damage, or action in respect thereof, referred to above in this Section 11(e) shall be deemed
to include, for the purpose of this Section 11(e), any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim to the extent consistent with Section 11(c) hereof. Notwithstanding
the foregoing provisions of this Section 11(e) and except in the case of gross negligence or willful misconduct, an Agent shall
not be required to contribute any amount in excess of the commissions received by it under this Agreement and no person found guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 11(e), any person who controls
a party to this Agreement within the meaning of the Securities Act or the Exchange Act, and any officers, directors, partners,
employees or agents of an Agent, will have the same rights to contribution as that party, and each officer and director of the
Company who signed the Registration Statement will have the same rights to contribution as the Company, subject in each case to
the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against
such party in respect of which a claim for contribution may be made under this Section 11(e), will notify any such party or parties
from whom contribution may be sought, but the omission to so notify will not relieve that party or parties from whom contribution
may be sought from any other obligation it or they may have under this Section 11(e) except to the extent that the failure to so
notify such other party materially prejudiced the substantive rights or defenses of the party from whom contribution is sought.
Except for a settlement entered into pursuant to the last sentence of Section 11(c) hereof, no party will be liable for contribution
with respect to any action or claim settled without its written consent if such consent is required pursuant to Section 11(c) hereof.

 

12.         Representations
and Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section 11 of this Agreement and
all representations and warranties of the Company and the Agents herein or in certificates delivered pursuant hereto shall survive,
as of their respective dates, regardless of (i) any investigation made by or on behalf of the Agents, any controlling persons,
or the Company (or any of their respective officers, directors or controlling persons), (ii) delivery and acceptance of the Placement
Shares and payment therefor or (iii) any termination of this Agreement.

 

    	 	31	 

     

    

 

13.         Termination.

 

a.           An
Agent may terminate this Agreement, by written notice to the Company, as hereinafter specified at any time (1) if there has been,
since the time of execution of this Agreement or since the date as of which information is given in the Prospectus, any Material
Adverse Effect, or any development that has occurred that is reasonably likely to have a Material Adverse Effect has occurred or,
in the reasonable judgment of such Agent, is material and adverse and makes it impracticable or inadvisable to market the Placement
Shares or to enforce contracts for the sale of the Placement Shares, (2) if there has occurred any material adverse change in the
financial markets in the United States or the international financial markets, any outbreak of hostilities or escalation thereof
or other calamity or crisis or any change or development involving a prospective change in national or international political,
financial or economic conditions, in each case the effect of which is such as to make it, in the reasonable judgment of such Agent,
impracticable or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (3) if
trading in the Common Stock has been suspended or limited by the Commission or the Exchange, or if trading generally on the Exchange
has been suspended or limited, or minimum prices for trading have been fixed on the Exchange, (4) if any suspension of trading
of any securities of the Company on any exchange or in the over-the-counter market shall have occurred and be continuing for a
period of at least ten Trading Days, (5) if a major disruption of securities settlements or clearance services in the United States
shall have occurred and be continuing, or (6) if a banking moratorium has been declared by either U.S. Federal or New York authorities.
Any such termination shall be without liability of any party to any other party except that the provisions of Section 9 (Payment
of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section
18 (Governing Law and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and
effect notwithstanding such termination. If an Agent elects to terminate this Agreement as provided in this Section 13(a), such
Agent shall provide the required notice as specified in Section 14 (Notices).

 

b.           The
Company shall have the right, by giving ten (10) days’ notice as hereinafter specified to terminate this Agreement in its
sole discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any
other party except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution), Section
12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and Section
19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.

 

c.           Each
of the Agents shall have the right, by giving ten (10) days’ notice as hereinafter specified to terminate this Agreement
in its sole discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party
to any other party except that the provisions of Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution),
Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and
Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.

 

    	 	32	 

     

    

 

d.           Unless
earlier terminated pursuant to this Section 13, this Agreement shall automatically terminate upon the earlier to occur of (i) the
third (3rd) year anniversary of the date hereof and (ii) the issuance and sale of all of the Placement Shares through the Agents
on the terms and subject to the conditions set forth herein except that the provisions of Section 9 (Payment of Expenses), Section
11 (Indemnification and Contribution), Section 12 (Representations and Agreements to Survive Delivery), Section 18 (Governing Law
and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding
such termination.

 

e.           This
Agreement shall remain in full force and effect unless terminated pursuant to Sections 13(a), (b), (c), or (d) above or otherwise
by mutual agreement of the parties; provided, however, that any such termination by mutual agreement shall in all cases be deemed
to provide that Section 9 (Payment of Expenses), Section 11 (Indemnification and Contribution), Section 12 (Representations and
Agreements to Survive Delivery), Section 18 (Governing Law and Time; Waiver of Jury Trial) and Section 19 (Consent to Jurisdiction)
shall remain in full force and effect. Upon termination of this Agreement, the Company shall not have any liability to an Agent
for any discount, commission or other compensation with respect to any Placement Shares not otherwise sold by an Agent under this
Agreement.

 

f.            Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided, however, that such
termination shall not be effective until the close of business on the date of receipt of such notice by an Agent or the Company,
as the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such Placement
Shares shall settle in accordance with the provisions of this Agreement.

 

14.       Notices.
All notices or other communications required or permitted to be given by any party to any other party pursuant to the terms of
this Agreement shall be in writing, unless otherwise specified, and if sent to the Agents, shall be delivered to:

 

FBR Capital Markets & Co.

1300 North 17th Street, Suite 1400

Arlington, Virginia 22209

Attention: Legal Department

Telephone: (703) 312-9500

Email: atmdesk@fbr.com

 

and

 

MLV & Co. LLC

299 Park Avenue, 7th Floor

New York, New York 10171

Attention: Legal Department

Telephone: (212) 542-5880

Email: mlvlegal@mlvco.com

 

    	 	33	 

     

    

 

with a copy to:

Duane Morris LLP

One Riverfront Plaza

1037 Raymond Boulevard, Suite 1800

Newark, New Jersey 07102

Attention: James T. Seery

Telephone: (973) 424-2088

Email: jtseery@duanemorris.com

 

and if to the Company, shall be delivered to:

Fortress Biotech, Inc.

2 Gansevoort Street, 9th Floor

New York, New York 10014

Attention: Samuel W. Berry

Telephone: (781) 652-4500

Email: sberry@fortressbiotech.com

 

with a copy to:

Wyrick Robbins Yates & Ponton LLP

4101 Lake Boone Trail, Suite 300

Raleigh, North Carolina 27607

Attention: W. David Mannheim

Telephone: (919) 781-4000

Email: wmannheim@wyrick.com

 

Each party to this
Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such
purpose. Each such notice or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile
transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not
a Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized
overnight courier and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail,
return receipt requested, postage prepaid). For purposes of this Agreement, “Business Day” shall mean any day
on which the Exchange and commercial banks in the City of New York are open for business.

 

An electronic communication
(“Electronic Notice”) shall be deemed written notice for purposes of this Section 14 if sent to the electronic
mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the
party sending Electronic Notice receives confirmation of receipt by the receiving party. Any party receiving Electronic Notice
may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”)
which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

 

    	 	34	 

     

    

 

15.         Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and each Agent and their respective
successors and the affiliates, controlling persons, officers and directors referred to in Section 11 hereof. References to any
of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing
in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors
and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement. Neither party may assign its rights or obligations under this Agreement without the prior written consent
of the other party.

 

16.         Adjustments
for Stock Splits. The parties acknowledge and agree that all share-related numbers contained in this Agreement shall be adjusted
to take into account any share consolidation, stock split, stock dividend, corporate domestication or similar event effected with
respect to the Placement Shares.

 

17.         Entire
Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Placement Notices
issued pursuant hereto) constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes
all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to
the subject matter hereof. Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed
by the Company and each of the Agents. In the event that any one or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such
provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the
remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision
was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions
hereof shall be in accordance with the intent of the parties as reflected in this Agreement.

 

18.         GOVERNING
LAW AND TIME; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. EACH PARTY
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

19.         CONSENT
TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING
IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION
CONTEMPLATED HEREBY, 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 (CERTIFIED OR REGISTERED
MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH
SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO
LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.

 

    	 	35	 

     

    

 

20.         Use
of Information. The Agents may not use any information gained in connection with this Agreement and the transactions contemplated
by this Agreement, including due diligence, to advise any party with respect to transactions not expressly approved by the Company.

 

21.         Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile
transmission.

 

22.         Effect
of Headings. The section and Exhibit headings herein are for convenience only and shall not affect the construction hereof.

 

23.         Permitted
Free Writing Prospectuses. The Company represents, warrants and agrees that, unless it obtains the prior consent of each of
the Agents, which consent shall not be unreasonably withheld, conditioned or delayed, and each of the Agents represents, warrants
and agrees that, unless it obtains the prior consent of the Company, which consent shall not be unreasonably withheld, conditioned
or delayed, it has not made and will not make any offer relating to the Placement Shares that would constitute an Issuer Free Writing
Prospectus, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be
filed with the Commission. Any such free writing prospectus consented to by the Agents or by the Company, as the case may be, is
hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company represents and warrants that it has treated
and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined
in Rule 433, and has complied and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus,
including timely filing with the Commission where required, legending and record keeping. For the purposes of clarity, the parties
hereto agree that all free writing prospectuses, if any, listed in Exhibit G hereto are Permitted Free Writing Prospectuses.

 

24.         Absence
of Fiduciary Relationship. The Company acknowledges and agrees that:

 

a.           Each
Agent is acting solely as agent in connection with the public offering of the Placement Shares and in connection with each transaction
contemplated by this Agreement and the process leading to such transactions, and no fiduciary or advisory relationship between
the Company or any of its respective affiliates, stockholders (or other equity holders), creditors or employees or any other party,
on the one hand, and either Agent, on the other hand, has been or will be created in respect of any of the transactions contemplated
by this Agreement, irrespective of whether or not such Agent has advised or is advising the Company on other matters, and neither
Agent has any obligation to the Company with respect to the transactions contemplated by this Agreement except the obligations
expressly set forth in this Agreement;

 

    	 	36	 

     

    

 

b.           it
is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated
by this Agreement;

 

c.           Neither
Agent has provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement
and it has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;

 

d.           it
is aware that each Agent and its affiliates are engaged in a broad range of transactions which may involve interests that differ
from those of the Company and such Agent has no obligation to disclose such interests and transactions to the Company by virtue
of any fiduciary, advisory or agency relationship or otherwise; and

 

e.           it
waives, to the fullest extent permitted by law, any claims it may have against an Agent for breach of fiduciary duty or alleged
breach of fiduciary duty in connection with the sale of Placement Shares under this Agreement and agrees that such Agent shall
not have any liability (whether direct or indirect, in contract, tort or otherwise) to it in respect of such a fiduciary duty claim
or to any person asserting a fiduciary duty claim on its behalf or in right of it or the Company, employees or creditors of Company,
other than in respect of such Agents’ obligations under this Agreement and to keep information provided by the Company to
such Agent and its counsel confidential to the extent not otherwise publicly-available.

 

25.         Definitions.
As used in this Agreement, the following terms have the respective meanings set forth below:

 

“Applicable
Time” means (i) each Representation Date and (ii) the time of each sale of any Placement Shares pursuant to this Agreement.

 

“Issuer Free
Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433, relating to the Placement
Shares that (1) is required to be filed with the Commission by the Company, (2) is a “road show” that is a “written
communication” within the meaning of Rule 433(d)(8)(i) whether or not required to be filed with the Commission, or (3) is
exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Placement Shares or of the offering that
does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required
to be filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the Securities Act Regulations.

 

“Rule 172,” “Rule
405,” “Rule 415,” “Rule 424,” “Rule 424(b),” “Rule
430B,” and “Rule 433” refer to such rules under the Securities Act Regulations.

 

All references in this
Agreement to financial statements and schedules and other information that is “contained,” “included” or
“stated” in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed
to mean and include all such financial statements and schedules and other information that is incorporated by reference in the
Registration Statement or the Prospectus, as the case may be.

 

    	 	37	 

     

    

 

All references in this
Agreement to the Registration Statement, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed
to include the copy filed with the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing Prospectus
(other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission)
shall be deemed to include the copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to
“supplements” to the Prospectus shall include, without limitation, any supplements, “wrappers” or similar
materials prepared in connection with any offering, sale or private placement of any Placement Shares by the Agents outside of
the United States.

 

[Remainder of the page intentionally left
blank]

 

    	 	38	 

     

    

 

If the foregoing correctly
sets forth the understanding between the Company and each Agent, please so indicate in the space provided below for that purpose,
whereupon this letter shall constitute a binding agreement between the Company and each of the Agents.

 

	 	Very truly yours,
	 	 
	 	FORTRESS BIOTECH, INC.
	 	 
	 	By: 	/s/ Lindsay A. Rosenwald
	 	Name: Lindsay A. Rosenwald
	 	Title: President and Chief Executive Officer
	 	 
	 	ACCEPTED as of the date first-above written:
	 	 
	 	FBR CAPITAL MARKETS & CO.
	 	 
	 	By: 	/s/ Patrice McNicoll
	 	Name: Patrice McNicoll
	 	Title: Co-Head of Capital Markets
	 	 
	 	MLV & CO. LLC
	 	 
	 	By: 	/s/ Patrice McNicoll
	 	Name: Patrice McNicoll
	 	Title: Chief Executive Officer

 

     

     

    

 

SCHEDULE 1

 

 

 

FORM OF PLACEMENT NOTICE

 

 

 

	From:	Fortress Biotech, Inc.
	 	 
	To:	[•]
	 	 
	Attention:	[•]
	 	 
	Subject:	At Market Issuance—Placement Notice
	 	 
	Date:	_____________, 20__

 

Gentlemen:

 

Pursuant to the terms
and subject to the conditions contained in the Amended and Restated At Market Issuance Sales Agreement between Fortress Biotech,
Inc., a Delaware corporation (the “Company”), and FBR Capital Markets & Co. and MLV & Co. LLC, dated
August 17, 2016, the Company hereby requests that [identify Designated Agent] sell up to _______ shares of the Company’s
Common Stock, $0.001 par value per share, at a minimum market price of $               share, during the time period beginning [month, day, time]
and ending [month, day, time].

 

[The Company may include such other sales
parameters as it deems appropriate.]

 

     

     

    

 

SCHEDULE 2

 

 

 

COMPENSATION

 

 

 

The Company shall pay
to the Designated Agent in cash, upon each sale of Placement Shares pursuant to this Agreement, an amount equal to up to 3.0% of
the gross proceeds from the sale of Placement Shares.

 

     

     

    

 

SCHEDULE 2

 

 

 

NOTICE PARTIES

 

 

 

The Company

 

	 	Lindsay A. Rosenwald, M.D.	lrosenwald@fortressbiotech.com
	 	 	 
	 	Lucy Lu, M.D.	llu@fortressbiotech.com
	 	 	 
	 	Robyn Hunter	rhunter@fortressbiotech.com
	 	 	 
	 	Samuel W. Berry	sberry@fortressbiotech.com

 

MLV

 

	 	Miranda Toledano	mtoledano@fbr.com
	 	 	 
	 	Ryan Loforte	rloforte@fbr.com  
	 	 	 
	 	Patrice McNicoll	pmcnicoll@fbr.com  
	 	 	 
	 	Keith Pompliano	kpompliano@fbr.com  

 

With a copy to atmdesk@fbr.com.

 

     

     

    

 

EXHIBIT 7(l)

Form of Representation
Date Certificate

 

__________________, 20___

 

This Officers Certificate
(this “Certificate”) is executed and delivered in connection with Section 7(l) of the Amended and Restated At
Market Issuance Sales Agreement (the “Agreement”), dated August 17, 2016, and entered into between Fortress
Biotech, Inc. (the “Company”) and FBR Capital Markets & Co. and MLV & Co. LLC. All capitalized terms
used but not defined herein shall have the meanings given to such terms in the Agreement.

 

The undersigned, a
duly appointed and authorized officer of the Company, having made reasonable inquiries to establish the accuracy of the statements
below and having been authorized by the Company to execute this certificate on behalf of the Company, hereby certifies, on behalf
of the Company and not in the undersigned’s individual capacity, as follows:

 

1.          As
of the date of this Certificate, (i) the Registration Statement does 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 not misleading and
(ii) neither the Registration Statement nor the Prospectus contains 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, not misleading and (iii) no event has occurred as a result of which it is necessary to amend or supplement
the Prospectus in order to make the statements therein not untrue or misleading.

 

2.          Each
of the representations and warranties of the Company contained in the Agreement was true and correct in all material respects,
when originally made, and, except for those representations and warranties that speak solely as of a specific date, is true and
correct as of the date of this Certificate.

 

3.          Except
as waived by the Agents in writing, each of the covenants required to be performed by the Company in the Agreement on or prior
to the date of the Agreement, this Representation Date, and each such other date prior to the date hereof as set forth in the Agreement,
has been performed in all material respects and each condition required to be complied with by the Company on or prior to the date
of the Agreement, this Representation Date, and each such other date prior to the date hereof as set forth in the Agreement has
been complied with in all material respects.

 

4.          Subsequent
to the date of the most recent financial statements in the Prospectus, and except as described in the Prospectus, including Incorporated
Documents, there has been no Material Adverse Effect.

 

5.          No
stop order suspending (a) the effectiveness of the Registration Statement or of any part thereof or (b) the qualification or registration
of the Placement Shares under the securities or Blue Sky laws of any jurisdiction has been issued, and, to the Company’s
knowledge, no proceedings for that purpose have been instituted or are pending or threatened by any securities or other governmental
authority (including, without limitation, the Commission).

 

     

     

    

 

The undersigned has executed this Officer’s
Certificate as of the date first written above.

 

	 	FORTRESS BIOTECH, INC.
	 	 	 
	 	By: 	         
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:

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