Document:

Exhibit 10.1

 

VOTING
AGREEMENT

THIS VOTING AGREEMENT
(this “Agreement”) is made as of February 6, 2018, among California Cryobank Stem Cell Services LLC, a California
limited liability company (the “Buyer”), and Cord Blood America, Inc., a Florida corporation (the “Seller”),
and each of the undersigned shareholders (each, a “Shareholder”) of the Seller.

Concurrently with
the execution of this Agreement, the Buyer and the Seller are entering into an Asset Purchase Agreement (as the same may be amended
from time to time, the “APA”), pursuant to which the Buyer will purchase substantially all the assets and assume
certain liabilities of the Seller pursuant to the terms and conditions of the APA (together, with the other transactions contemplated
by the APA, the “Transactions”);

Shareholder is the
beneficial owner of, or otherwise has the power to vote or direct the vote of, the shares of the capital stock of the Seller indicated
on Schedule A to this Agreement; and

As a condition to
the willingness of the Buyer to enter into the APA, and as a material inducement and in consideration therefor, Shareholder has
agreed to enter into this Agreement.

NOW, THEREFORE,
in consideration of the premises and mutual promises herein made, and in consideration of the representations, warranties, and
covenants herein contained, the parties hereto agree as follows:

1.DEFINITIONS.

1.1
Capitalized Terms. Terms used and not defined herein shall have the respective meanings ascribed to them in the APA.

1.2
Other Definitions. The following terms shall have the following respective meanings:

(a)
“Adverse Proposal” means: (i) any Competing Proposal (including any Superior Proposal); (ii) any
action, interest, offer, proposal, transaction, other agreement or understanding that could, or could reasonably be expected to,
result in a breach or inaccuracy of any covenant, agreement, representation or warranty or any other obligation of the Seller set
forth in the APA or of Shareholder contained in this Agreement; (iii) any action, interest, offer, proposal, transaction,
other agreement or understanding that could, or could reasonably be expected to, result in any condition to the Transactions not
being fulfilled; (iv) any other action, interest, offer, proposal, transaction, other agreement or understanding that could,
or could reasonably be expected to, prevent, delay, interfere with, postpone, impede or adversely affect the consummation of the
Transactions or otherwise prevent, delay, interfere with, postpone or impede the Seller or any of the Selling Parties from performing
their obligations under the APA on a timely basis or the Buyer from realizing the full benefit of the consummation of the Transactions
following the Closing; or (v) any action, interest, offer, proposal, transaction, other agreement or understanding that could,
or could reasonably be expected to, change in any manner the voting rights of any class of shares of the Seller (including any
amendments to Seller’s articles of incorporation, by-laws or other organizational documents).

    	 

     

    

(b)
“beneficial ownership” shall have the meaning reflected in Rule 13d-3 promulgated under the Exchange
Act.

(c)
“Constructive Sale” means with respect to any Share, a short sale, with respect to such Share, entering
into or acquiring an offsetting derivative contract with respect to such Share, entering into or acquiring a futures or forward
contract to deliver such Share or entering into any other hedging or other derivative transaction that has the effect of either
directly or indirectly materially changing the economic benefits and risks of ownership.

(d)
“Shares” means: (i) all shares of the Seller’s capital stock that, as of the date of this
Agreement, are owned beneficially or of record by Shareholder or for which Shareholder otherwise has the right to vote or direct
the vote; and (ii) all other shares of the Seller’s capital stock of which Shareholder acquires beneficial or record
ownership or the right to vote or direct the vote prior to termination of the Voting Period.

(e)
“Transfer” means with respect to any Share, the direct or indirect, sale, assignment, exchange, transfer,
tender, pledge, hypothecation, grant of a participation in, or the grant, creation or sufferance of any Lien in or upon, or the
gift, placement in trust, or the Constructive Sale or other disposition of such Share (including transfers by testamentary or intestate
succession, or otherwise by operation of law) or any right, title or interest therein (including any right or power to vote to
which the holder thereof may be entitled, whether such right or power is granted by proxy or otherwise), or the record of beneficial
ownership thereof, the offer to make such a sale, transfer, Constructive Sale or other disposition, and each agreement, arrangement
or understanding (including any profit sharing arrangement), whether or not in writing, to effect any of the foregoing.

(f)
“Voting Period” means the period from and including the date of this Agreement through and including
the date of the earlier to occur of (i) the Closing and (ii) the termination of the APA.

2.VOTING
AGREEMENT AND PROXY.

2.1
Agreement to Retain Shares. Prior to the termination of the Voting Period, Shareholder shall not, and shall not permit
any person to, directly or indirectly:

(a)
Transfer any Shares or discuss, negotiate, make an offer or enter into an agreement, commitment or other arrangement, whether
or not in writing, with respect to any Transfer of the Shares; or

(b)
take any other action that could make any representation or warranty of Shareholder contained herein untrue or incorrect
in any material respect or have the effect of preventing, disabling, restricting or otherwise adversely affecting Shareholder’s
legal power, authority and right to comply with and perform his, her or its obligations under this Agreement.

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2.2
Agreement to Vote Shares. During the Voting Period, at every meeting of the shareholders of the Seller called with
respect to any of the following, and at every postponement or adjournment thereof, and on every action or approval by written consent
or resolution of the shareholders of the Seller with respect to any of the following, Shareholder shall vote or cause to be voted
(including by written consent, if applicable), to the extent not voted by the person(s) appointed under the proxy granted pursuant
to Section 2.5, all Shares:

(a)
in favor of (i) approval and adoption of the Transactions and the APA and (ii) any other transactions or other
matters that could reasonably be expected to facilitate the Transactions; and

(b)
against the adoption of any Adverse Proposal.

2.3
Manner of Voting. Shareholder shall cast his, her or its votes or execute consents required to be cast or executed
pursuant to this Agreement in accordance with the applicable procedures relating thereto so as to ensure that such votes or consents
are duly counted for purposes of determining that a quorum is present (if applicable) and for purposes of recording the results
of such votes or consents. Upon request of the Buyer, Shareholder shall promptly (and in any event at least five (5) business days
prior to any applicable shareholder meeting) provide evidence of his, her or its compliance with the provisions of Section 2.2
and this Section 2.3.

2.4
Capacity as Shareholder. No person executing this Agreement who is or becomes an officer or director of the Seller
makes any agreement or understanding herein in his or her capacity as such officer or director. Shareholder signs solely in his,
her or its capacity as the beneficial owner of Shareholder’s Shares. Nothing herein shall limit or affect any actions taken
by Shareholder or any officer, director, employee or representative of Shareholder in his or her capacity as an officer or director
of the Seller.

2.5
Grant of Irrevocable Proxy.

(a)
Shareholder hereby irrevocably appoints the Buyer and any designee of the Buyer, and each of them individually, as Shareholder’s
proxy and attorney-in-fact, with full power of substitution and resubstitution, to vote or execute consents during the Voting Period,
with respect to the Shares, in accordance with Section 2.2. This proxy is given to secure the performance of the duties
of Shareholder under this Agreement. Shareholder shall promptly cause a copy of this Agreement to be deposited with the Seller
at its principal place of business. Shareholder shall take any further action and execute any other instruments as may be necessary
to effectuate the intent of this proxy.

(b)
The proxy and power of attorney granted pursuant to this Section 2.5 shall be irrevocable during the Voting
Period to the fullest extent permitted by applicable Law, shall be deemed to be coupled with an interest sufficient at law to support
an irrevocable proxy and shall revoke any and all prior proxies granted by Shareholder. Shareholder acknowledges that such proxy
constitutes an inducement for the Buyer to enter into the APA. The power of attorney granted by Shareholder is a durable power
of attorney and shall survive the dissolution, bankruptcy, death or incapacity of Shareholder. The proxy and power of attorney
granted hereunder shall terminate only upon the termination of the Voting Period.

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3.ADDITIONAL
COVENANTS.

3.1
No Solicitation.

(a)
During the Voting Period, Shareholder will not and, if Shareholder is not a natural person, will not authorize or permit
any of its officers, directors, Affiliates, shareholders or employees or any investment banker, attorney or other advisor or representative
retained by it (all of the foregoing collectively being the “Shareholder Representatives”) to, directly
or indirectly, (i) solicit, initiate, seek, entertain, encourage, facilitate, support or induce the making, submission or
announcement of any inquiry, expression of interest, proposal or offer that constitutes, or would reasonably be expected to lead
to, an Adverse Proposal, (ii) enter into, participate in, maintain or continue any communications (except solely to provide
written notice as to the existence of these provisions) or negotiations regarding, or deliver or make available to any person any
non-public information with respect to, or take any other action regarding, any inquiry, expression of interest, proposal or offer
that constitutes, or would reasonably be expected to lead to, an Adverse Proposal, (iii) agree to, accept, approve, endorse
or recommend (or publicly propose or announce any intention or desire to agree to, accept, approve, endorse or recommend) any Adverse
Proposal, (iv) enter into any letter of intent or any other contract contemplating or otherwise relating to any Adverse Proposal
or (v) submit any Adverse Proposal to the vote of any security holders of the Seller. Shareholder will immediately cease and
cause to be terminated any and all existing activities, discussions or negotiations with any persons conducted prior to or on the
date of this Agreement with respect to any Adverse Proposal. If any Shareholder Representative, whether in his, her or its capacity
as such or in any other capacity, takes any action that Shareholder is obligated pursuant to this Section 3.1 to cause
such Shareholder Representative not to take, then Shareholder shall be deemed for all purposes of this Agreement to have breached
this Section 3.1.

(b)
Shareholder shall immediately notify the Buyer orally and in writing after receipt by Shareholder (or, to the knowledge
of the Shareholder, by any of the Shareholder Representatives), of (i) any Adverse Proposal, (ii) any inquiry, expression
of interest, proposal or offer that constitutes, or would reasonably be expected to lead to, an Adverse Proposal, (iii) any
other notice that any person is considering making an Adverse Proposal, or (iv) any request for nonpublic information relating
to the Seller or for access to any of the properties, books or records of the Seller by any person or persons other than the Buyer.
Such notice shall describe (1) the material terms and conditions of such Adverse Proposal, inquiry, expression of interest,
proposal, offer, notice or request, and (2) the identity of the person making any such Adverse Proposal, inquiry, expression
of interest, proposal, offer, notice or request. Shareholder shall keep the Buyer fully informed of the status and details of,
and any modification to, any such inquiry, expression of interest, proposal or offer and any correspondence or communications related
thereto and shall provide to the Buyer a true, correct and complete copy of such inquiry, expression of interest, proposal or offer
and any amendments, correspondence and communications related thereto, if it is in writing, or a reasonable written summary thereof,
if it is not in writing. If Shareholder is not a natural person, Shareholder shall provide the Buyer with forty-eight (48) hours
prior notice of any meeting of its board of directors at which the board of directors is reasonably expected to discuss any Adverse
Proposal.

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3.2
Appraisal Rights. Shareholder hereby waives any rights of appraisal or rights to dissent from the Transactions or
the adoption of the APA that it may have under applicable Law and shall not permit any such rights of appraisal or rights of dissent
to be exercised with respect to any Shares.

3.3
Stop Transfers.

(a)
During the Voting Period, Shareholder hereby authorizes and requests the Seller’s counsel to notify the Seller’s
transfer agent that there is a stop transfer order with respect to all of the Shares (and that this Agreement places limits on
the voting of the Shares) and to authorize such transfer agent to notify potential purchasers that each share certificate representing
any of the Shares held of record by Shareholder is subject to the restrictions contemplated by this Agreement.

(b)
During the Voting Period, Shareholder agrees with, and covenants to, the Buyer that Shareholder shall not request that the
Seller register the transfer (book-entry or otherwise) of any certificate or uncertificated interest representing any of the Shares.
In the event of a stock dividend or distribution, or any change in any of the Seller’s capital stock by reason of any stock
dividend, split-up, recapitalization, combination, exchange of shares or the like, the term “Shares” shall be deemed
to refer to and include such shares as well as all such stock dividends and distributions and any securities into which or for
which any or all of the Shares may be changed or exchanged.

3.4
Cooperation. During the Voting Period, Shareholder shall cooperate fully with the Buyer and, without limitation of
the foregoing, shall execute and deliver such further documents, certificates, agreements and instruments and take such further
actions as may be reasonably requested by the Buyer to evidence or reflect the transactions contemplated by this Agreement and
carry out the intent of this Agreement. During the Voting Period, Shareholder shall not take, or cause to be taken, any action
inconsistent with or that interferes with the consummation of the Transactions and the transactions contemplated by the APA.

4
..           Representations, Warranties and Covenants of Shareholder

Shareholder hereby
represents, warrants and covenants to the Buyer as follows:

4.1
Ownership. Shareholder has good and marketable title to, and is the sole legal and beneficial owner of, all the Shares
set forth opposite Shareholder’s name on Schedule A hereto, in each case free and clear of all Liabilities, Liens
and proxies, of any kind or character whatsoever, including rights of first refusal or preemptive rights of any kind. Shareholder
has sole voting power and sole power of disposition with respect to all the Shares, with no restrictions on his, her or its voting
rights or rights of disposition pertaining thereto. No other person has a beneficial interest in or a right to acquire all or any
portion of the Shares. The Shares set forth on opposite Shareholder’s name on Schedule A hereto constitute Shareholder’s
entire interest in the outstanding capital stock of the Seller. Except for affiliates that will execute a voting agreement substantially
similar to this Agreement, no affiliate of Shareholder has any interest in any shares of the capital stock of the Seller. Shareholder’s
principal residence or place of business is set forth on Shareholder’s signature page hereto.

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4.2
Organization and Authority. Shareholder (if Shareholder is not a natural person) is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its formation, and is qualified to do business in all states and jurisdictions
as it may be required in order to conduct its business as it is currently being conducted. Shareholder (if Shareholder is not a
natural person) has all requisite or power and authority or (if Shareholder is a natural person) legal capacity to execute and
deliver this Agreement, to perform his, her or its obligations hereunder and to consummate the transactions contemplated hereby.
The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been
duly and validly authorized by all necessary corporate, partnership, limited liability company or other action of Shareholder (if
Shareholder is not a natural person). This Agreement has been duly and validly executed and delivered by Shareholder, and, assuming
due authorization, execution and delivery by the other parties, is a legal, valid and binding obligation of Shareholder, enforceable
against it in accordance with its terms, except to the extent that (a) enforcement may be limited by or subject to any bankruptcy,
insolvency, reorganization, moratorium, or similar law as is now or hereinafter in effect relating to creditors’ rights generally,
and (b) the remedy of specific performance and injunctive and other forms of equitable relief are subject to certain equitable
defenses and to the discretion of the court or other authority or person before which any proceeding therefore may be brought.

4.3
No Violation. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will (a) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling,
charge, or other restriction of any government, Governmental Authority, or court to which Shareholder or any of his, her or its
property is subject or (if Shareholder is not a natural person) any provision of the articles, by-laws or other organizational
documents of such Shareholder, (b) conflict with, result in a breach of, constitute a default under, result in the acceleration
of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract,
lease, license, permit, instrument, or other arrangement to which Shareholder is a party or by which he, she or it is bound or
to which any of his, her or its assets is subject (or result in the imposition of any Lien upon any of his, her or its assets),
except where the breach or default would not unreasonably be expected be material to the Business or (c) (if Shareholder is
not a natural person) violate or conflict with any provision of the articles, by-laws or organizational documents of Shareholder.

4.4
No Litigation. There is no action or settlement pending or, to the knowledge of Shareholder, threatened against Shareholder
or any of Shareholder’s properties or assets (including the Shares) that would reasonably be expected to prevent or materially
delay or otherwise impair the ability of Shareholder to perform his, her or its obligations hereunder or to consummate the transactions
contemplated hereby.

4.5
Acknowledgement. Shareholder acknowledges and agrees that none of the Buyer or its respective successors, assigns,
subsidiaries, divisions, employees, officers, directors, shareholders, agents and affiliates shall owe any duty, whether in law
or otherwise, or incur any liability of any kind whatsoever, including with respect to any and all claims, losses, demands, causes
of action, costs, expenses (including reasonable attorney’s fees) and compensation of any kind or nature whatsoever, to Shareholder
in connection with or as a result of any voting (or failure to vote) by the Buyer of the Shares at any annual, special or other
meeting or action or the execution of any consent of the shareholders of the Seller. The parties acknowledge that, pursuant to
the authority hereby granted, the Buyer may vote the Shares in furtherance of its own interests, and the Buyer is not acting as
a fiduciary for Shareholder.

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4.6
Compliance. Shareholder will comply with the Securities Act and the rules and regulations thereunder, as now in effect
and as from time to time amended, including those hereafter enacted or promulgated, in connection with any Transfer of all or any
portion of the Shares.

4.7
Consent and Waiver. Shareholder hereby agrees to give any consents or waivers that are reasonably required for the
consummation of the Transactions under the terms of any agreement to which the Shareholder is a party.

4.8
Reliance by the Buyer. Shareholder acknowledges that the Buyer is entering into the APA in reliance upon the execution
and delivery of this Agreement by Shareholder.

5.TERMINATION.

5.1
Termination. Unless earlier terminated by the written consent of the Buyer (in its sole and absolute discretion),
this Agreement shall terminate on the expiration of the Voting Period. Upon the termination of this Agreement, none of the Buyer,
the Seller nor Shareholder shall have any rights or obligations hereunder and this Agreement shall become null and void and have
no effect; provided, that termination of this Agreement shall not prevent any party from seeking any remedies (at law or
in equity) against any other party for that party’s breach of any of the terms of this Agreement.

5.2
Survival. Notwithstanding anything to the contrary contained in this Agreement, only Section 3.2, this
ARTICLE 5 and ARTICLE 6 of this Agreement shall survive the termination of this Agreement.

6.MiSCELLANEOUS.

6.1
Publication. Shareholder hereby permits the Buyer and/or the Seller to publish and disclose in press releases, Schedule 13D
filings and Proxy Statement (including all documents and schedules filed with the SEC) and any other disclosures or filings required
by applicable Law his, her or its identity and ownership of the Shares, the nature of his, her or its commitments, arrangements
and understandings pursuant to this Agreement and/or the text of this Agreement.

6.2
Specific Performance; Injunctive Relief.

(a)
The parties hereto acknowledge that the Buyer would be damaged irreparably in the event any of the provisions of this Agreement
are not performed in accordance with its specific terms or otherwise are breached. Accordingly, Shareholder agrees that the Buyer
shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically
this Agreement and the terms and provisions hereof in any action instituted in any court of the United States or any state thereof
having jurisdiction over the parties hereto and the matter in addition to any other remedy to which it may be entitled, at law
or in equity.

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(b)
To the extent the Buyer brings any action to enforce specifically the performance of the terms and provisions of this Agreement
when expressly available to the Buyer pursuant to this Section 6.2, Shareholder hereby agrees not to raise any objections
solely with respect to the availability of the equitable remedy of specific performance to (i) prevent or restrain breaches or
threatened breaches of this Agreement by Shareholder, and/or (ii) specifically enforce the terms and provisions of this Agreement
to prevent breaches or threatened breaches of, or to enforce compliance with, the covenants and obligations of Shareholder under
this Agreement. Any party hereto seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such
order or injunction.

6.3
No Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in the Buyer any direct or indirect
ownership or incidence of ownership of or with respect to any securities addressed herein. All rights, ownership and economic benefits
of and relating to the securities addressed herein shall remain vested in and belong to the appropriate Shareholder, as applicable.

6.4
Affiliates. Notwithstanding anything else in this Agreement to the contrary, the covenants and obligations of the
directors, officers or Affiliates of the Shareholder in this Agreement shall not apply to Adrian Pertierra, David Sandberg or Anthony
Snow solely to the extent such person is acting solely in his capacity as a director or officer of the Seller; provided,
that such covenants and obligations shall apply to Adrian Pertierra, David Sandberg or Anthony Snow if such person is acting in
any capacity other than as a director or officer of the Seller.

6.5
Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in
writing and signed by the Buyer, the Seller and Shareholder. No waiver by any party hereto of any default, misrepresentation, or
breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default,
misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

6.6
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties named herein
and their respective successors and permitted assigns. Neither party may assign either this Agreement or any of its rights, interests,
or obligations hereunder without the prior written approval of the other party hereto; provided, that the Buyer may (a) assign
any or all of its rights and interests hereunder to one or more of its qualified subsidiaries or its parent or associated companies,
(b) designate one or more of its qualified subsidiaries to perform its obligations hereunder or (c) may, from and after
the Closing, assign in whole or in part, this Agreement or any or all of its rights and obligations hereunder to one or more of
its Affiliates or for collateral security purposes to any lender or Financing Sources; provided, further, that no such assignment
shall relieve such party of any of its obligations under this Agreement.

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6.7
Governing Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State
of California without giving effect to any choice or conflict of law provision or rule (whether of the State of California or any
other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of California. Each party
hereto hereby irrevocably submits to the exclusive jurisdiction of the Federal District Court of the State of California located
in Los Angeles, California and appellate courts thereof over any dispute arising out of or relating to this Agreement or any of
the transactions contemplated hereby and each party hereto hereby irrevocably agrees that all claims in respect of such dispute
or any suit, action or proceeding related thereto may be heard and determined in such courts, subject to the requirements contained
in this Section 6.7 that the parties submit disputes to binding arbitration. Each party hereto hereby irrevocably waives,
to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to the laying of venue of
any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute.

6.8
WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS AGREEMENT OR THE TRANSACTIONS. Each of the parties hereto (a) certifies that no representative, agent or attorney of
any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce
that foregoing waiver and (b) acknowledges that it and the other hereto have been induced to enter into this Agreement and
the Transactions, as applicable, by, among other things, the mutual waivers and certifications in this Section 6.8.

6.9
General Interpretation. When a reference is made herein to Articles, Sections or Schedules, such reference shall
be to an Article or Section of, or a Schedule to, this Agreement unless otherwise indicated. The headings contained herein are
for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The use of “or”
is not intended to be exclusive unless expressly indicated otherwise; provided, that the use of “or” preceded
by the word “either” is intended to be exclusive. The words “include,” “includes” and “including”
when used herein shall be deemed in each case to be followed by the words “without limitation.” The phrases “provided
to,” “delivered to,” “made available to” and phrases of similar import when used herein, unless the
context otherwise requires, shall mean that a true, correct and complete paper or electronic copy of the information or material
referred to has been provided to the party to whom such information or material is to be provided or delivered. Unless the context
of this Agreement otherwise requires: (a) words of any gender include each other gender, (b) words using the singular
or plural form also include the plural or singular form, respectively, and (c) the terms “hereof,” “herein,”
“hereunder” and derivative or similar words refer to this entire Agreement. The symbol “$” refers to United
States Dollars. The word “extent” in the phrase “to the extent” means the degree to which a subject or
other thing extends and such phrase shall not mean simply “if.” References to a Person are also to its permitted successors
and assigns. All references to “days” shall be to calendar days in California unless otherwise indicated as a “business
day.” The terms “U.S.” and “United States” shall refer to the United States of America. If Shareholder
is not a natural person, references to the Shareholder shall mean Shareholder and its subsidiaries except as otherwise indicated
herein.

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6.10
Mutual Drafting. Each of the parties acknowledges that it has been represented by separate legal counsel in connection
with this Agreement and the Transactions contemplated hereby. Each of the parties has read and understands this Agreement and has
signed and delivered this Agreement with the intent to be legally bound.

6.11
Notices. All notices, requests, demands, claims, and other communications pursuant to this Agreement will be in writing.
Any notice, request, demand, claim, or other communication pursuant to this Agreement shall be deemed duly given (a) upon
confirmation of facsimile, (b) one (1) business day following the date sent when sent by overnight delivery and (c) five
(5) business days following the date mailed when mailed by registered or certified mail return receipt requested and postage prepaid
at the following address:

If to the Buyer:

California Cryobank Stem Cell Services
LLC

Attn: Richard D. Jennings

11915 La Grange Avenue

Los Angeles, CA 90025

Fax: (888) 317-4709

Tel: (310) 496-5693

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

Morrison & Foerster LLP

12531 High Bluff Drive

Suite 100

San Diego, CA 92130-2040

Attn: Jay de Groot

Fax: (858) 523-2821

Tel: (858) 720-5180

if to the Seller:

Cord Blood America, Inc.

Attn: David Sandberg

1857 Helm Drive

Las Vegas, NV 89119

Tel:(702) 914-7250

Fax:(702) 914-7251

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

Olshan Frome Wolosky LLP

1325 Avenue of the Americas

New York, NY 10019

Attn:Kenneth A. Schlesinger, Esq.

Tel:(212) 451-2200

Fax:(212) 451-2222

If to Shareholder,
as indicated on the signature page of this Agreement.

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6.12
Fees and Expenses. Each of the Buyer and Shareholder will bear its own costs and expenses (including legal and accounting
fees and expenses) incurred in connection with this Agreement and the Transactions.

6.13
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability
of the offending term or provision in any other situation or in any other jurisdiction.

6.14
Entire Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement between
the parties and supersedes any prior understandings, agreements, or representations by or between the parties, written or oral,
to the extent they related in any way to the subject matter hereof.

6.15
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
but all of which together will constitute one and the same instrument.

 

[Signature Page Follows]

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

 

 

	 	CALIFORNIA CRYOBANK STEM CELL SERVICES LLC
	 	 
	 	 
	 	By:	 /s/ Richard D. Jennings

 

	 	 	Name:	Richard D. Jennings
	 	 	Title:	President

 

 

	 	CORD BLOOD AMERICA, INC.
	 	 
	 	 
	 	By:	 /s/ Timothy McGrath

 

	 	 	Name:	Timothy McGrath
	 	 	Title:	Director

 

    
[Signature Page to Voting Agreement]

     

    

	 	
        THE RED OAK FUND, LP

        by its general partner:

        RED OAK PARTNERS, LLC

	 	 
	 	 
	 	By:	 /s/ David Sandberg

 

	 	 	Name:	David Sandberg, Managing Member
	 	 	Address:	
        150 E Palmetto Park Road

        Suite 800

        Boca Raton, FL 33432

	 	 	Tel:	(212) 614-8952
	 	 	Fax:	(646) 390-6784

 

 

	 	
        THE RED OAK LONG FUND, LP

        by its general partner:

        RED OAK PARTNERS, LLC

	 	 
	 	 
	 	By:	
/s/ David Sandberg 

	 	 	Name:	David Sandberg, Managing Member
	 	 	Address:	
        150 E Palmetto Park Road

        Suite 800

        Boca Raton, FL 33432

	 	 	Tel:	(212) 614-8952
	 	 	Fax:	(646) 390-6784

 

 

	 	
        PINNACLE OPPORTUNITIES FUND, LP

        by its general partner:

        RED OAK PARTNERS, LLC

	 	 
	 	 
	 	By:	
/s/ David Sandberg 

	 	 	Name:	David Sandberg, Managing Member
	 	 	Address:	
        150 E Palmetto Park Road

        Suite 800

        Boca Raton, FL 33432

	 	 	Tel:	(212) 614-8952
	 	 	Fax:	(646) 390-6784

 

 

    
[Signature Page to Voting Agreement]

     

    

SCHEDULE
A

 

 

	Name	Number of Common Stock	Number of Preferred Stock	Number of Shares subject to options	Number of Shares subject to warrants
	The Red Oak Fund, LP	164,073,684	 	 	 
	The Red Oak Long Fund, LP	76,226,316	 	 	 
	Pinnacle Opportunties Fund, LP	140,752,632Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of February 2, 2018, between Biostage, Inc., a Delaware corporation
(the “Company”), and Jinhui Liu (the “Purchaser”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of Section
5 of the Securities Act of 1933, as amended (the “Securities Act”) contained in Section 4(a)(2) thereof and/or
Regulation D thereunder, the Company desires to issue and sell to Purchaser, and Purchaser desires to purchase from the Company,
shares of Common Stock of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1           Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

 

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

 

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

 

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

 

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

 

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

 

“Closing”
means the closing of the purchase and sale of the Shares pursuant to Section 2.1.

 

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

 

    	 	 	 

     

    

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.01 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Company
Counsel” means Burns & Levinson LLP, with offices located at 125 Summer Street, Boston, MA 02110.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

 “Per
Share Purchase Price” equals the closing price per share of the Common Stock on the Trading Market on the Trading Day
immediately preceding the date of this Agreement.

 

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

 

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

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.7.

 

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

 

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

 

    	 	2	 

     

    

 

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

 

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

 

“Securities
Act” shall have the meaning ascribed to such term in the recitals.

 

“Shares”
means the shares of Common Stock issued or issuable to Purchaser pursuant to this Agreement.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 

 

“Subscription
Amount” means the aggregate amount to be paid for Shares, purchased hereunder as specified below Purchaser’s name
on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars and
in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth in the SEC Reports, and shall, where applicable, also include any direct or indirect
subsidiary of the Company formed or acquired after the date hereof.

 

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

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New
York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

 

“Transfer
Agent” means Computershare, the current transfer agent of the Company, and any successor transfer agent of the Company.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1           Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchaser
agrees to purchase, $1,000,000 of Shares in accordance with Section 2.2(a). The Company shall deliver to Purchaser its Shares as
determined pursuant to Section 2.2(a), and the Company and Purchaser shall deliver the other items set forth in Section 2.2 deliverable
at the Closing.

 

    	 	3	 

     

    

 

2.2           Deliveries.

 

(a)          On
or prior to the Closing Date, the Company agrees to deliver or cause to be delivered to Purchaser the following (which may be waived,
in whole or in part, but only in writing signed by Purchaser):

 

(i)          this
Agreement duly executed by the Company;

 

(ii)      
Shares registered in the name of Purchaser equal to Purchaser’s Subscription Amount divided by the Per Share Purchase Price,
registered in the name of Purchaser;

 

(iii)     the
Company shall have provided Purchaser with the Company’s wire instructions;

 

(iv)    the Chief
Financial Officer shall have delivered to Purchaser a certificate certifying that the representations and warranties of the Company
contained herein are true and correct as of the Closing.

  

(b)          On
or prior to the Closing Date, Purchaser shall deliver or cause to be delivered to the Company, as applicable, the following (which
may be waived, in whole or in part, but only in writing signed by the Company):

 

(i)          this
Agreement duly executed by Purchaser; and

 

(ii)         Purchaser’s
Subscription Amount (less the amount of the Deposit), which shall be delivered to the Company on or prior to the Closing Date.

 

(c)          On
the date of this Agreement, Purchaser has paid a non-refundable cash deposit of $100,000 to the Company (the “Deposit”).
Following payment of the Deposit, Purchaser shall have no further rights to the Deposit, and the Company may use the Deposit for
any purpose in its sole discretion. Notwithstanding the foregoing, (i) in the event that the Company breaches this Agreement prior
to the Closing, and Purchaser is not in breach hereof at such time, the Company will promptly return the Deposit to Purchaser,
and (ii) upon consummation of the sale of the Shares to Purchaser at the Closing, the Subscription Amount payable at the Closing
shall be adjusted downward by the full amount of the Deposit.

 

    	 	4	 

     

    

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company. Company hereby represents and warrants as of the date hereof and as of the Closing Date to Purchaser
as follows (unless as of a specific date therein, in which case they shall be accurate as of such date):

 

(a)            Subsidiaries.
The Company has no subsidiaries except for its international subsidiaries, Harvard Apparatus Regenerative Technology GmbH, a German
company, Harvard Apparatus Regenerative Technology AB, a Swedish company and Harvard Apparatus Regenerative Technology Limited,
a company organized under the laws of the United Kingdom, which are not individually or in the aggregate material to the business
or operations of the Company.

 

(b)           Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects
or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect
on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document
(any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c)           Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.
The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by
it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company
and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith
or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction Document to which
it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the
terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

(d)           No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Shares and the consummation by it of the transactions contemplated hereby and
thereby do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any
of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which
any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict
with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court
or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii)
and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

    	 	5	 

     

    

 

(e)            Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i)
the filings required pursuant to Section 4.4 of this Agreement, (ii) application(s) to the applicable Trading Market for the listing
of the Shares for trading thereon in the time and manner required thereby and (iii) such filings as are required to be made under
applicable state securities laws (collectively, the “Required Approvals”).

  

(f)            Issuance
of the Shares. The Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.

 

(g)           Capitalization.
The capitalization of the Company is as set forth in the SEC Reports as of the time of filing of such SEC Reports. The Company
has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than issuances disclosed
in the SEC Reports, issuances of the Company’s equity securities to the Company’s officers, directors, employees or
consultants in the ordinary course of business, pursuant to the grant of equity awards or the exercise of employee stock options
under the Company’s stock option or equity incentive plans, the issuance of shares of Common Stock to employees pursuant
to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents
outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first
refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the
Transaction Documents. Except as a result of the purchase and sale of the Shares, outstanding warrants issued in May 2016 and February
2017 as disclosed in the SEC reports, outstanding warrants issued in December 2017 as previously disclosed to Purchaser, equity
securities of the Company issued to officers, directors, employees or consultants in the ordinary course of business as described
above in this clause (g) or as set forth in the Company’s definitive proxy statement filed with the SEC on March 24, 2017,
there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to
subscribe for or acquire, any shares of Common Stock or the capital stock of the Company or any Subsidiary, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common
Stock or Common Stock Equivalents or capital stock of the Company or any Subsidiary. The issuance and sale of the Shares will not
obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person (other than the Purchaser)
and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price
under any of such securities. The Company does not have any stock appreciation rights or “phantom stock” plans or agreements
or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued,
fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding
shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval
or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Shares. There
are no stockholders’ agreements, voting agreements or other similar agreements with respect to the Company’s capital
stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

    	 	6	 

     

    

 

(h)           SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under Section 13(a) or 15(d) of the Exchange Act for the two years preceding the date hereof (or such
shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”)
on a timely basis, except with respect to the Company’s Form 10-Q for the fiscal quarter ended September 30, 2017, or has
received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.
As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Exchange Act, and
none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act. The financial statements
of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules
and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods
involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and
except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects
the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments.

 

(i)             Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest financial statements included within
the SEC Reports: (i) and except as disclosed in the SEC Reports, there has been no event, occurrence or development that has had
or that could reasonably be expected to result in a Material Adverse Effect, (ii) and except as disclosed in the SEC Reports, the
Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred
in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s
financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method
of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders
or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not
issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option, equity incentive
or stock purchase plans. The Company does not have pending before the Commission any request for confidential treatment of information.

  

(j)             Litigation.
Except as disclosed in the SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending
or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties
before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local
or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or
enforceability of any of the Transaction Documents or the Shares or (ii) could, if there were an unfavorable decision, have or
reasonably be expected to result in a Material Adverse Effect. Except as disclosed in the SEC Reports, neither the Company nor
any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of
or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge
of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current
or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

  

    	 	7	 

     

    

 

(k)           Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or
any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant
in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance
with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(l)            Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any
court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in the case of
clause (iii) as could not have or reasonably be expected to result in a Material Adverse Effect.

 

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

 

(n)           Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports
(“Permits”) except where the failure to possess such permits could not reasonably be expected to result in a
Material Adverse Effect, and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Permit.

 

(o)           Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them in each case free and clear of all Liens, except for (i) Liens
as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made
of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which
appropriate reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject
to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid,
subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

    	 	8	 

     

    

 

(p)           Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports
(collectively, the “Intellectual Property Rights”). None of, and neither the Company nor any Subsidiary has
received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned,
or is expected to expire or terminate or be abandoned, within two (2) years from the date of this Agreement. Neither the Company
nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written
notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any
Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement
by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures
to protect the secrecy, confidentiality and value of all of their intellectual properties.

 

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

 

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

 

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

 

    	 	9	 

     

    

 

(t)            Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker,
financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents. The Purchaser shall have no obligation with respect to any fees or with respect to any
claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with
the transactions contemplated by the Transaction Documents.

 

(u)           Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not
be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration
under the Investment Company Act of 1940, as amended.

 

(v)           Registration
Rights. Except for the Registration Rights Agreement between the Company and Aspire Capital Fund, LLC, dated as of December
15, 2015, filed as an exhibit to the Company’s Current Report on Form 8-K on December 15, 2015, no Person has any right to
cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any
Subsidiary.

 

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

 

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

 

(y)           Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local
income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject,
(ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due
on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of
all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid
taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or
of any Subsidiary know of no basis for any such claim.

 

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

  

    	 	10	 

     

    

 

(aa)        Accountants.
The Company’s accounting firm is KPMG LLP. To the knowledge and belief of the Company, such accounting firm (i) is a registered
public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect to the financial statements
to be included in the Company’s Annual Report for the fiscal year ending December 31, 2017.

 

(bb)       Acknowledgement
Regarding Purchaser’s Purchase of Shares. The Company acknowledges and agrees that the Purchaser is acting solely in
the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby.
The Company further acknowledges that Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by Purchaser
or any of its respective representatives or agents in connection with the Transaction Documents and the transactions contemplated
thereby is merely incidental to the Purchaser’s purchase of the Shares. The Company further represents to Purchaser that
the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent
evaluation of the transactions contemplated hereby by the Company.

 

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

 

(dd)         FDA.
As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) under the Federal
Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged,
labeled, tested, distributed, sold, and/or marketed by or on behalf of the Company or any of its Subsidiaries (each such product,
a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed,
sold and/or marketed by the Company or on behalf of in compliance in all material respects with all applicable requirements under
FDCA and similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or
application approval, good manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas,
labeling, advertising, record keeping and filing of reports. There is no pending, completed or, to the Company's knowledge, threatened,
action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation)
against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning
letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance, licensure,
registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of,
or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall, suspension, or
seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical
Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production
at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction
with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company
or any of its Subsidiaries. The properties, business and operations of the Company have been and are being conducted in all material
respects in accordance with all applicable laws, rules and regulations of the FDA.  The Company has not been informed by the
FDA that the FDA will prohibit the marketing, sale, license or use in the United States of any product proposed to be developed,
produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing for marketing any product
being developed or proposed to be developed by the Company.

  

    	 	11	 

     

    

 

(ee)           Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent,
employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(ff)            U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

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

 

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

 

(ii)         Private
Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchaser as contemplated hereby.

 

(jj)         No
General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Shares
by any form of general solicitation or general advertising. The Company has offered the Shares for sale only to the Purchaser.

 

(kk)       No
Disqualification Events.  With respect to the Shares to be offered and sold hereunder in reliance on Rule 506 under the
Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer
of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under
the Securities Act) connected with the Company in any capacity at the time of sale (each, an "Issuer Covered Person"
and, together, "Issuer Covered Persons") is subject to any of the "Bad Actor" disqualifications described
in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "Disqualification Event"), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person
is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under
Rule 506(e).

 

(ll)         Termination
of Rights Plan. The Company has taken all actions necessary to terminate the Company’s Shareholder Rights Agreement,
dated as of October 31, 2013, as amended.

 

(mm)    The
officers of the Company, in connection with the communications or negotiations of the Transaction Documents related to this private
placement, have not made any untrue statement of a material fact and have not omitted any material fact necessary to make the said
officers’ statements contained therein misleading.

 

(nn)      The foregoing
representations and warranties set forth in this Section 3.1 shall be deemed renewed by the Company at the Closing as if made at
such time.

 

    	 	12	 

     

    

  

3.2           Representations
and Warranties of the Purchaser. Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date
to the Company as follows (unless as of a specific date therein, in which case they shall be accurate as of such date):

 

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

 

(b)          Understandings
or Arrangements. Purchaser is acquiring the Shares as principal for his, her or its own account and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares (this representation
and warranty not limiting Purchaser’s right to sell the Shares in compliance with applicable federal and state securities
laws). Purchaser is acquiring the Shares hereunder in the ordinary course of its business.  Purchaser understands that the
Shares are “restricted securities” and have not been registered under the Securities Act or any applicable state securities
law and is acquiring such Shares as principal for its own account and not with a view to or for distributing or reselling such
Shares or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention
of distributing any of such Shares in violation of the Securities Act or any applicable state securities law and has no direct
or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares in
violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting Purchaser’s
right to sell such Shares pursuant to a registration statement or otherwise in compliance with applicable federal and state securities
laws).

 

(c)          Purchaser
Status. At the time Purchaser was offered the Shares, it was, and as of the date hereof it is, an “accredited investor”
as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.

 

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

 

(e)          Access
to Information. Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including all exhibits
and schedules thereto) and the SEC Reports and has been afforded (i) the opportunity to ask such questions as it has deemed necessary
of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares
and the merits and risks of investing in the Shares; (ii) access to information about the Company and its financial condition,
results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii)
the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or
expense that is necessary to make an informed investment decision with respect to the investment.

 

    	 	13	 

     

    

 

(f)          Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, Purchaser has not, nor has
any Person acting on behalf of or pursuant to any understanding with Purchaser, directly or indirectly executed any purchases or
sales, including Short Sales, of the securities of the Company during the period commencing as of the time that Purchaser
first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material
pricing terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Other than to other
Persons party to this Agreement or to Purchaser’s representatives, including, without limitation, its officers, directors,
partners, legal and other advisors, employees, agents and Affiliates, Purchaser has maintained the confidentiality of all disclosures
made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing,
for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect
to the identification of the availability of, or securing of, available shares to borrow in order to effect Short Sales or similar
transactions in the future.

 

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

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Removal
of Legends.

 

(a)          The
Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Shares
other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of Purchaser or in connection
with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion
of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be
reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Shares
under the Securities Act.

 

(b)          
The Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Shares in the following
form:

 

THIS SECURITY
HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED
BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)
UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

    	 	14	 

     

    

 

The Company
acknowledges and agrees that Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the Shares to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement
and, if required under the terms of such arrangement, Purchaser may transfer pledged or secured Shares to the pledgees or secured
parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the
pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge.
At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or
secured party of Shares may reasonably request in connection with a pledge or transfer of the Shares.

 

(c)          Certificates
evidencing the Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) while a registration
statement covering the resale of such Shares is effective under the Securities Act, or (ii) following any sale of such Shares pursuant
to Rule 144, or (iii) if such Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance
with the current public information required under Rule 144 as to such Shares and without volume or manner-of-sale restrictions,
or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission) (the “Effective Date”). The Company shall cause its
counsel to issue a legal opinion to the Transfer Agent promptly after the Effective Date if required by the Transfer Agent to effect
the removal of the legend hereunder. If all or any portion of such Shares is exercised at a time when there is an effective registration
statement to cover the resale of such Shares, or if such Shares may be sold under Rule 144 and the Company is then in compliance
with the current public information required under Rule 144, or if such Shares may be sold under Rule 144 without the requirement
for the Company to be in compliance with the current public information required under Rule 144 as to such Shares and without volume
or manner-of-sale restrictions or if such legend is not otherwise required under applicable requirements of the Securities Act
(including judicial interpretations and pronouncements issued by the staff of the Commission) then such Shares shall be issued
free of all legends. The Company agrees that following the Effective Date or at such time as such legend is no longer required
under this Section 4.1(c), it will, no later than three Trading Days following the delivery by Purchaser to the Company or the
Transfer Agent of a certificate representing such Shares, as applicable, issued with a restrictive legend (such third Trading Day,
the “Legend Removal Date”), deliver or cause to be delivered to Purchaser a certificate representing such shares
that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions
to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.

 

4.2           Furnishing
of Information. Until Purchaser does not own Shares, the Company covenants to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant
to the Exchange Act.

 

4.3           Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares for purposes of the rules and
regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction
unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.4           Securities
Laws Disclosure; Publicity. The Company shall by 9:00 a.m. (New York City time) within four (4) Trading Days immediately following
the date hereof, file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission
within the time required by the Exchange Act. Effective upon the issuance of such press release, the Company acknowledges and agrees
that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any
of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and the Purchaser
or any of its Affiliates on the other hand, shall terminate. The Company and Purchaser shall consult with each other in issuing
any other press releases with respect to the transactions contemplated hereby, and neither the Company nor Purchaser shall issue
any such press release nor otherwise make any such public statement without the prior consent of the Company, with respect to any
press release of Purchaser, or without the prior consent of Purchaser, with respect to any press release of the Company, which
consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing
party shall promptly provide the other party with prior notice of such public statement or communication.

 

    	 	15	 

     

    

 

4.5           Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that Purchaser
is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including any
distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Shares under
the Transaction Documents or under any other agreement between the Company and the Purchaser or other acquisition of securities
of the Company including purchases on the open market.

 

4.6           
[Reserved].

  

4.7           
Indemnification
of Purchaser. Subject to the provisions of this Section 4.7, the Company will indemnify and hold Purchaser and its directors,
officers, shareholders, members, managers, partners, employees and agents (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, managers, partners or employees (and any other Persons with a functionally equivalent role of a Person holding
such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the
Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not
an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such
Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may
be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing (provided that the failure
to provide such notice shall only affect the Company’s obligations under this Section 4.7 if and only to the extent that
the Company is prejudiced by the failure to provide such notice) , and the Company shall have the right to assume the defense thereof
with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ
separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be
at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by
the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel
or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position
of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees
and expenses of no more than one such separate counsel (plus any reasonably necessary local counsel). The Company will not be liable
to any Purchaser Party under this Agreement (y) for any settlement by Purchaser Party effected without the Company’s prior
written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss,
claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants
or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required
by this Section 4.7 shall be made by periodic payments of the amount thereof during the course of the investigation or defense,
as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of
action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to
pursuant to law.

 

4.8           
[Reserved].

 

    	 	16	 

     

    

 

4.9           
Listing
of Common Stock. The Company hereby agrees to use best efforts to maintain the quotation of the Common Stock on the Trading
Market on which it is currently listed. The Company further agrees, if the Company applies to have the Common Stock traded on any
other Trading Market, it will then include in such application all of the Shares, and will take such other action as is necessary
to cause all of the Shares to be listed or quoted on such other Trading Market as promptly as possible.

 

4.10          [Reserved].

 

4.11          Certain
Transactions and Confidentiality. Purchaser covenants that until such time as the transactions contemplated by this Agreement,
and any other material non-public information that may be in the Purchaser’s possession, are publicly disclosed by the Company,
including pursuant to the initial press release as described in Section 4.4, Purchaser will maintain the confidentiality of the
existence and terms of this transaction and the information included in the disclosure schedules attached hereto, and such other
information, if any.  Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary,
the Purchaser expressly acknowledges and agrees that Purchaser will not engage in effecting transactions in any securities of the
Company unless such transactions are in compliance with all applicable laws, including without limitation, federal and state securities
laws and regulations.

 

4.12          Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Shares as required under Regulation D and
to provide a copy thereof, promptly upon request of Purchaser. The Company shall take such action as the Company shall reasonably
determine is necessary in order to obtain an exemption for, or to qualify the Shares for, sale to the Purchaser at the Closing
under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such
actions promptly upon request of Purchaser.

 

ARTICLE V.

MISCELLANEOUS

 

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

 

5.2           Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.3           Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto
at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as set forth on
the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices
and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant
to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

 

5.4           Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and Purchaser or, in the case of a waiver, by the party against whom enforcement of
any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair
the exercise of any such right.

 

    	 	17	 

     

    

 

5.5           Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.6           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
Purchaser (other than by merger). Purchaser may assign any or all of its rights under this Agreement to any Person to whom Purchaser
assigns or transfers any Shares, provided that such transferee agrees in writing to be bound, with respect to the transferred Shares,
by the provisions of the Transaction Documents that apply to the “Purchaser.”

 

5.7           No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 4.7.

 

5.8           Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the Commonwealth of Massachusetts, without regard
to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the Commonwealth of Massachusetts. Each party hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in the Commonwealth of Massachusetts for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with
respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any
Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding
is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action
or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under
Section 4.7, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action
or Proceeding.

 

5.9           Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Shares.

 

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

 

5.11         Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

    	 	18	 

     

    

  

5.12         [Reserved].

 

5.13         Replacement
of Certificates. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall
also provide a customary indemnity associated with the issuance of such replacement certificates which indemnity by the applicant
the Company agrees shall be sufficient.

 

5.14         Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Purchaser
and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages
may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents
and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy
at law would be adequate and agree that it shall not be necessary to post a bond or other security.

 

5.15         Payment
Set Aside. To the extent that the Company makes a payment or payments to Purchaser pursuant to any Transaction Document or
Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise
or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged
by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any
law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to
the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

  

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

 

5.17         Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

(Signature Pages Follow)

 

    	 	19	 

     

    

 

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

 

	Biostage Inc.	 	Address for Notice:
	 	 	 
	By:	 /s/ James McGorry	 	84 October Hill Road
	 	Name:  James McGorry	 	Holliston, MA 01746
	 	Title:    Chief Executive Officer	 	Attention: James McGorry
	 	 	 	 
	With a copy to (which shall not constitute notice):	 	Fax: (774) 233-7302
	 	 	 
	Burns & Levinson LLP	 	 
	125 Summer Street	 	 
	Boston, MA 02110	 	 
	Attention: Josef B. Volman, Esq.	 	 
	 	 	 
	Fax: (617) 345-3299	 	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	 	20	 

     

    

  

[PURCHASER SIGNATURE
PAGE TO BIOSTAGE SECURITIES PURCHASE AGREEMENT]

 

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

 

Name of Purchaser: Jinhui Liu

 

Signature of Authorized Signatory of
Purchaser: /s/ Jinhui Liu                                                           

 

Email Address of Purchaser:

 

Facsimile Number of Purchaser:

 

Address for Notice to Purchaser:

 

 

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

 

Subscription Amount: $1,000,000

 

    	 	21

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