Document:

Exhibit 10.3

 

PLACEMENT AGENCY AGREEMENT

 

July 21, 2020

 

Aegis Capital Corp.

810 Seventh Ave, 18th Floor

New York, NY 10019

 

Re:         DarioHealth
Corp.

 

Ladies and Gentlemen:

 

This
Placement Agency Agreement (“Agreement”) sets forth the terms upon which Aegis Capital Corp., a New York corporation
(“Aegis” or “Placement Agent”), a registered broker-dealer and member of the Financial Industry
Regulatory Authority (“FINRA”), shall be engaged by DarioHealth Corp., a Delaware corporation (the “Company”)
to act as exclusive Placement Agent in connection with the private placement (the “Offering”) of shares of common
stock, par value $0.0001 of the Company (“Common Stock”) issued at the “Minimum Price” (as defined
in Nasdaq Rule 5635(d)) rounded down to the nearest whole share. The Company is also offering to certain purchasers, pre-funded
warrants to purchase shares of Common Stock, in lieu of purchasing shares of Common Stock (the “Pre-Funded Warrants”).
The purchase price of each Pre-Funded Warrant will be equal to the
Minimum Price applicable for the closing in which the Pre-Funded Warrants are issued, minus $0.0001, and the exercise price of
each Pre-Funded Warrants will be $0.0001 per share. The Offering will consist of a minimum of $10,000,000 of shares of Common Stock
and/or Pre-Funded Warrants (“Minimum Offering Amount”) and up to a maximum of $20,000,000 of shares of Common
Stock and/or Pre-Funded Warrants (“Maximum Offering Amount”) which shall be offered on a “reasonable efforts,
all or none” basis as to the Minimum Offering Amount and a “reasonable efforts” basis for all amounts in excess
of the Minimum Offering Amount. In the event the Offering is oversubscribed, the Company and Placement Agent may, in their mutual
discretion, agree to sell up to an additional aggregate of $10,000,000 of shares of Common Stock and/or Pre-Funded Warrants (the
 “Overallotment”).

 

The minimum investment
in the Offering will be $100,000 of shares of Common Stock; provided, however, that subscriptions for
lesser amounts may be accepted in the Company’s and Placement Agent’s joint discretion. The Placement Agent shall accept
subscriptions only from persons or entities who qualify as “accredited investors,” as such term is defined in Rule 501
of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the
 “SEC”) under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).
The Common Stock and Pre-Funded Warrants will be offered until the earlier of (i) the termination of the Offering as provided
herein, (ii) the time that all shares of Common Stock and Pre-Funded Warrants offered in the Offering are sold or (iii) September 30,
2020 (“Initial Offering Period”), which date may be extended by the Placement Agent and the Company in their
joint discretion until December 31, 2020 (this additional period and the Initial Offering Period shall be referred to as the
 “Offering Period”). The date on which the Offering expires or is terminated shall be referred to as the “Termination
Date.”

 

    

     

    

 

With respect to the
Offering, the Company shall provide the Placement Agent, on terms set forth herein, the right to offer and sell all of the Common
Stock and Pre-Funded Warrants being offered. Purchases of Common Stock and Pre-Funded Warrants may be made by the officers, directors,
employees and affiliates of the Placement Agent. All such purchases, together with purchases by officers, directors, employees
and affiliates of the Company, shall be included in calculations as to whether the Minimum Offering Amount, Maximum Offering Amount
or Overallotment has been sold in the Offering. The Company, in its sole discretion, may accept or reject, in whole or in part,
any prospective investment in the Common Stock and Pre-Funded Warrants. Notwithstanding anything to the contrary set forth herein,
it is understood that no sale shall be regarded as effective unless and until accepted by the Company. The Company and the Placement
Agent shall mutually agree with respect to allotting any prospective subscriber less than the number of shares of Common Stock
(sometimes referred to herein as “Common Shares”) and/or Pre-Funded Warrants that such subscriber desires to
purchase. The Common Shares and the Pre-Funded Warrants are sometimes referred to herein as the “Securities.”

 

The Offering will be
made by the Company solely pursuant to the Memorandum (as defined below), which at all times will be in form and substance reasonably
acceptable to the Company, the Placement Agent and their respective counsel and contain such legends and other information as Company,
the Placement Agent and their respective counsel, may, from time to time, deem necessary or desirable to be set forth therein.
 “Memorandum” as used in this Agreement means Company’s Confidential Private Placement Memorandum dated
on or about July 21, 2020, inclusive of all annexes, and all amendments, supplements and appendices thereto.

 

1.            Appointment
of Placement Agent. On the basis of the representations and warranties provided herein, and subject to the terms and conditions
set forth herein, the Placement Agent is appointed as exclusive placement agent for the Company during the Offering Period to
assist the Company in finding qualified subscribers for the Offering. The Placement Agent may sell the Securities through other
broker-dealers who are FINRA members, as well as through foreign finders pursuant to applicable FINRA rules, and may reallow all
or a portion of the Agent Compensation (as defined in Section 3(b) below) it receives to such other broker-dealers or
foreign finders. On the basis of such representations and warranties and subject to such terms and conditions, the Placement Agent
hereby accepts such appointment and agrees to perform its services hereunder diligently and in good faith and in a professional
and businesslike manner and to use its reasonable efforts to assist the Company in (A) finding subscribers for the Common
Stock and Pre-Funded Warrants who qualify as “accredited investors,” as such term is defined in Rule 501 of Regulation
D, and (B) completing the Offering. The Placement Agent has no obligation to purchase any of the Securities being offered.
Unless sooner terminated in accordance with this Agreement, the engagement of the Placement Agent hereunder shall continue until
the later of the Termination Date or the Final Closing (as defined below).

 

2.            Representations,
Warranties and Covenants of the Company. Except as set forth in the Memorandum, the SEC Reports (as defined herein) or in the
schedule of exceptions delivered to the Placement Agent on the date hereof (the “Schedule of Exceptions”), the
representations and warranties of the Company contained in this Section 2 are true and correct as of the date of this Agreement.

 

    2

     

    

 

(a)           The
Memorandum has been prepared by the Company in compliance in all material respects with Regulation D and Section 4(a)(2) of
the Act and the requirements of all other rules and regulations (the “Regulations”) relating to offerings
of the type contemplated by the Offering, and the applicable securities laws and the rules and regulations of those jurisdictions
wherein the Placement Agent notifies the Company that the Securities are to be offered and sold excluding any foreign jurisdictions.
The Securities will be offered and sold pursuant to the registration exemptions provided by Regulation D and Section 4(a)(2) of
the Act as a transaction not involving a public offering and the requirements of any other applicable state securities laws and
the respective rules and regulations thereunder in those United States jurisdictions in which the Placement Agent notifies
the Company that the Securities are being offered for sale. To the extent that any Securities are offered in jurisdictions outside
of the United States, such Securities will be offered and sold in compliance with all applicable laws that govern private securities
offerings in the applicable country and in all local jurisdictions in which such Securities are offered. None of the Company, its
affiliates, or any person acting on its or their behalf (other than the Placement Agent, its affiliates or any person acting on
its behalf, in respect of which no representation is made) has taken nor will it take any action that conflicts with the conditions
and requirements of, or that would make unavailable with respect to the Offering, the exemption(s) from registration available
pursuant to Rule 506(b) of Regulation D or Section 4(a)(2) of the Act, or knows of any reason why any such
exemption would be otherwise unavailable to it. None of the Company, its predecessors or affiliates has been subject to any order,
judgment or decree of any court of competent jurisdiction temporarily, preliminarily or permanently enjoining such person for failing
to comply with Section 503 of Regulation D. The Company has not, for a period of six months prior to the commencement of the
Offering, sold, offered for sale or solicited any offer to buy any of its securities in a manner that would be integrated with
the offer and sale of the Securities pursuant to this Agreement and would cause the exemption from registration set forth in Rule 506(b) of
Regulation D to become unavailable with respect to the offer and sale of the Securities pursuant to this Agreement in the United
States. For purposes of this Agreement, "to the Company’s Knowledge" or similar phrases means (a) the actual
knowledge of any of Erez Raphael and Zvi Ben-David of a fact or matter after making reasonable inquiry.

 

(b)            The
Memorandum does not include any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided,
however, the foregoing does not apply to any statements or omissions made solely in reliance on and in conformity with written
information furnished to the Company by the Placement Agent specifically for use in the preparation thereof. To the Company’s
Knowledge, none of the statements, documents, certificates or other items made, prepared or supplied by the Company with respect
to the transactions contemplated hereby contains an untrue statement of a material fact or omits to state a material fact necessary
to make the statements contained therein not misleading in light of the circumstances in which they were made. There are no facts,
circumstances or conditions which the Company has not disclosed in the Memorandum and of which the Company is aware that has had
or that could reasonably be expected to have a Company Group Material Adverse Effect (as defined in Section 2(c) below).
Notwithstanding anything to the contrary herein, the Company makes no representation or warranty with respect to any estimates,
projections and other forecasts and plans (including the reasonableness of the assumptions underlying such estimates, projections
and other forecasts and plans) that may have been delivered to the Placement Agent or its representatives or that are contained
in the Memorandum, except that such estimates, projections and other forecasts and plans have been prepared in good faith on the
basis of assumptions stated therein, which assumptions were believed to be reasonable at the time of such preparation. Any statistical
and market-related data included in the Memorandum are based on or derived from sources that the Company believes, after reasonable
inquiry, to be reliable and accurate in all material respects and, to the extent required, the Company has obtained the written
consent to the use of such data from such sources.

 

    3

     

    

 

(c)            The
Company is a corporation duly incorporated and validly existing in good standing under the laws of the State of Delaware and has
the requisite power and authority to own its properties and to carry on its business as described in the Memorandum. Section 2(c) of
the Schedule of Exceptions lists each entity owned or controlled, directly or indirectly by the Company (each a “Subsidiary”
and collectively, the “Subsidiaries”). Each Subsidiary is duly incorporated or formed, as applicable, validly
existing and in good standing under the laws of the state or foreign jurisdiction of its incorporation or formation, as applicable,
as set forth in Section 2(c) of the Schedule of Exceptions. Except as set forth on Section 2(c) of the Schedule
of Exceptions, neither the Company nor any Subsidiary (i) owns or controls, directly or indirectly, any interest in any other
corporation, association or other business entity or (ii) participates in any joint venture, partnership or similar arrangement.
Each Subsidiary has the requisite company power to own, operate and lease its properties and to carry out its business as described
in the Memorandum. Each of the Company and the Subsidiaries (collectively referred to herein as the “Company Group) is
qualified or licensed to do business in the jurisdictions listed in Section 2(c) of the Schedule of Exceptions,
except for any failure to be so qualified or licensed that would not have a Company Group
Material Adverse Effect. Each member of the Company Group is qualified or licensed to do business in all jurisdictions in
which the character of the properties owned or held under lease by it or the nature of its business makes qualification necessary,
except where the failure to be so qualified or licensed would not reasonably be expected to result in a Company Group Material
Adverse Effect. No member of the Company Group is in violation of any provision of any of its organizational documents. As used
in this Agreement, “Company Group Material Adverse Effect” means any event, circumstance, change or effect that,
individually or in the aggregate with all other events, circumstances, changes and effects, is or is reasonably likely to be materially
adverse to (i) the business, condition (financial or otherwise), assets, liabilities or results of operations of the Company
and its Subsidiaries taken as a whole or (ii) the ability of the Company to consummate the transactions contemplated by this
Agreement and to perform its obligations under the Transaction Documents; provided, however, that clause (i) shall not include
any event, circumstance, change or effect resulting from (y) changes in general economic conditions or changes in securities
markets in general that do not have a materially disproportionate effect (relative to other industry participants) on the Company
or its Subsidiaries or (z) general changes in the industries in which the Company and the Company Subsidiaries operate, except
those events, circumstances, changes or effects that adversely affect the Company and its Subsidiaries to a materially greater
extent than they affect other entities operating in such industries.

 

(d)            The
Company has all requisite corporate power and authority to enter into and perform its obligations under this Agreement, the Registration
Rights Agreement substantially in the form of Exhibit B to the Memorandum (the “Registration Rights Agreement”),
the Subscription Agreement substantially in the form of Exhibit A to the Memorandum (the “Subscription Agreement”),
the Pre-Funded Warrants substantially in the form of Exhibit C to the Memorandum, the Escrow Agreement (as hereinafter
defined) and the other agreements contemplated hereby (this Agreement, the Subscription Agreement, the Registration Rights Agreement
and the other agreements contemplated hereby that the Company is executing and delivering hereunder are collectively referred to
herein as the “Transaction Documents”).

 

    4

     

    

 

(e)            The
Securities to be purchased by investors pursuant to the Memorandum and the Agent Warrants (as defined in Section 3(b)) to
be issued to the Placement Agent pursuant to the terms of this Agreement have been duly authorized for issuance and sale pursuant
to this Agreement and, when issued and delivered by the Company pursuant to this Agreement against payment of the consideration
set forth herein, will be duly and validly issued, fully paid and non-assessable and will have the rights, preferences and priorities
set forth in the Company’s Certificate of Incorporation. The shares of Common Stock have been duly authorized and reserved
for issuance and when issued by the Company, will be duly and validly issued, fully paid and nonassessable. The shares of Common
Stock issuable upon exercise of the Pre-Funded Warrants (“Pre-Funded Warrant Shares”) and the Agent Warrants
(“Agent Warrant Shares”) have been duly authorized and reserved for issuance and when issued by the Company
pursuant to the terms of the Pre-Funded Warrants and Agent Warrants, as applicable, will be duly and validly issued, fully paid
and nonassessable. The issuance of the Common Stock and Pre-Funded Warrants in the Offering, Pre-Funded Warrant Shares, Agent Warrants
and Agent Warrant Shares are not subject to any preemptive or other similar rights of any securityholder of the Company. The capital
stock of the Company conforms in all material respects to all statements relating thereto contained in the Memorandum and in the
SEC Reports (as defined below). No purchaser of any of the Securities in the Offering, Agent Warrants, Agent Warrant Shares or
Pre-Funded Warrant Shares will be subject to personal liability solely by reason of being such a holder.

 

(f)            Prior
to the First Closing, each of the Transaction Documents (other than this Agreement, which has already been authorized) will have
been duly authorized. This Agreement has been duly authorized, executed and delivered and constitutes, and each of the other Transaction
Documents, upon due execution and delivery, will constitute, valid and binding obligations of the Company, enforceable against
the Company in accordance with their respective terms (i) except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in effect related to laws affecting creditors’
rights generally, including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers,
and except that no representation is made herein regarding the enforceability of the Company’s obligations to provide indemnification
and contribution remedies under the securities laws and (ii) subject to the limitations imposed by general equitable principles
(regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

(g)            Neither
the execution and the delivery of this Agreement or any Transaction Document, nor the consummation of the transactions contemplated
hereby, will (with or without the passage of time or giving of notice): (i) violate any injunction, judgment, order, decree,
ruling, charge or other restriction, or any Law (as defined below) applicable to any member of the Company Group, (ii) violate
any provisions of any of the charter documents of any member of the Company Group, (iii) violate or constitute a default (or
any event which, with or without due notice or lapse of time, or both, would constitute a violation or default) under, result in
the termination of, accelerate the performance required by any of the terms, conditions or provisions of any Material Contract
(as defined in Section 2(n) below) of any member of the Company Group, or by which any member of the Company Group, or
any of its respective operating assets, is bound or (iv) result in the creation of any lien, charge or other encumbrance on
the assets or properties of any member of the Company Group. “Law” means any applicable federal, national, regional,
state, municipal or local law, statute, treaty, rule, regulation, ordinance, order, code, judgment, decree, directive, injunction,
writ or similar action or decision.

 

    5

     

    

 

(h)            The
Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities
Act and the Securities and Exchange Act of 1934, as amended (the “Exchange Act”),
including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter
period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits
thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. The SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange
Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The 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 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)            Since
the date of the Company’s most recent financial statements contained in the Memorandum, there has been no Company Group Material
Adverse Effect.

 

(j)            As
of the date of the First Closing, the Company will have the authorized and outstanding capital stock (as of the date of the Memorandum)
as set forth under the heading “DESCRIPTION OF THE SHARES AND CAPITAL STOCK” in the Memorandum. All outstanding shares
of capital stock of the Company are duly authorized, validly issued and outstanding, fully paid and non-assessable. Except as described
in the Memorandum or in the SEC Reports, as of the date of the First Closing: (i) there will be no outstanding options, stock
subscription agreements, warrants or other rights permitting or requiring the Company or others to purchase or acquire any shares
of capital stock or other equity securities of the Company or to pay any dividend or make any other distribution in respect thereof;
(ii) there will be no securities issued or outstanding which are convertible into or exchangeable for any of the foregoing
and there are no contracts, commitments or understandings, whether or not in writing, to issue or grant any such option, warrant,
right or convertible or exchangeable security; (iii) no shares of stock or other securities of the Company are reserved for
issuance for any purpose; (iv) there will be no voting trusts or other contracts, commitments, understandings, arrangements
or restrictions of any kind with respect to the ownership, voting or transfer of shares of stock or other securities of Company,
including, without limitation, any preemptive rights, rights of first refusal, proxies or similar rights, and (v) no person
holds a right to require Company to register any securities of Company under the Act or to participate in any such registration.
No further approval or authorization of any stockholder, the Board of
Directors or others is required for the issuance and sale of the Securities. Except as described in the Memorandum or the
SEC Reports, 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

     

    

 

(k)           [RESERVED]

 

(l)            The
conduct of business by members of the Company Group as presently and proposed to be conducted is not subject to continuing oversight,
supervision, regulation or examination by any governmental official or body of the United States, or any other jurisdiction wherein
any such members currently conduct such business, except as described in the Memorandum. Neither the Company, nor any other member
of the Company Group has received any notice of any violation of, or noncompliance with, any Law applicable to its business, the
violation of, or noncompliance with, which would have or would reasonably be expected to have a Company Group Material Adverse
Effect, and the Company knows of no facts or set of circumstances which could give rise to such a notice.

 

(m)            Each
member of the Company Group has all franchises, permits, authorizations, licenses, and any similar authority necessary for the
conduct of its business as described in the Memorandum, except as would not, individually or in the aggregate, reasonably be expected
to have a Company Group Material Adverse Effect. Except as disclosed in the Memorandum or the SEC Reports, no member of the Company
Group has received written notice of (i) any pending proceedings which could reasonably be expected to result in the revocation,
cancellation, suspension of any adverse modification of any such franchises, permits, authorizations, licenses or other similar
authority or (ii) any default under any of such franchises, permits, licenses, authorizations or other similar authority,
except as would not, individually or in the aggregate, reasonably be expected to have an Company Group Material Adverse Effect.

 

(n)             Except
as disclosed in the Memorandum or in the SEC Reports, no breach or default by any member of the Company Group or, to the Company’s
Knowledge, any other party, exists in the due performance under any of the terms of any note, bond, indenture,
mortgage, deed of trust, lease, rental agreement, material contract, material purchase or sales order or other material agreement
or instrument to which any member of the Company Group is a party or by which it or its property is bound or affected (each of
the foregoing, a “Material Contract”), and there exists no condition, event or act which constitutes, nor which
after notice, the lapse of time or both, could constitute a default under any of the foregoing, except as would not, individually
or in the aggregate, has had or is reasonably be expected to have an Company Group Material Adverse Effect.
The Material Contracts disclosed in the Memorandum are accurately described in the Memorandum and are in full force and
effect in accordance with their respective terms, subject to any applicable bankruptcy, insolvency or other laws affecting the
rights of creditors generally and to general equitable principles and the availability of specific performance.

 

    7

     

    

 

(o)            The
members of the Company Group collectively, solely and exclusively own all right, title and interest in, or possesses enforceable
rights to use, all patents, patent applications, trademarks, service marks, copyrights, rights, licenses, franchises, trade secrets,
confidential information, processes and formulations necessary for the conduct of its business as now conducted (collectively,
the “Intangibles”), except where the failure to own or possess such rights would
not, individually or in the aggregate, would reasonably be expected to have a Company Group
Material Adverse Effect. To the Company’s Knowledge, no member of the Company Group has infringed upon the rights
of others with respect to the Intangibles and, except as disclosed in the Memorandum, no member of the Company Group has received
any notice that such member has or may have infringed or is infringing upon the rights of others with respect to the Intangibles,
nor has such member received any written notice of conflict with the asserted rights of others with respect to the Intangibles.
To the Company’s Knowledge, all such Intangibles are enforceable and no others have infringed upon the rights of any members
of the Company Group with respect to the Intangibles. None of the Company Group’s Intangibles have expired or terminated,
or are expected to expire or terminate, within three years from the date of this Agreement. All current
and former officers, employees, consultants and independent contractors of each member of the Company Group having access to proprietary
information of a member of the Company Group, its customers or business partners and inventions owned by any member of the Company
Group have executed and delivered to the applicable member of the Company Group an agreement regarding the protection of such proprietary
information. The Company Group has secured, by valid written assignments from all of Company Group’s current and former consultants,
independent contractors and employees who were involved in, or who contributed to, the creation or development of any Intangibles,
unencumbered and unrestricted exclusive ownership of each such third party’s Intangibles in their respective contributions,
except where the failure to do so would not individually or in the aggregate, reasonably be expected to have a Company Group Material
Adverse Effect. No current or former employee, officer, director, consultant or independent contractor
of any member of the Company Group has any right, license, claim or interest whatsoever in or with respect to any Intangibles.

 

(p)             Except
as set forth in the Memorandum or the SEC Reports, no member of the Company Group is a party to any collective bargaining agreement
nor does it employ any member of a union. No executive officer of any member of the Company Group has provided written notice that
such officer intends to leave the Company Group or otherwise terminate such officer's employment with the Company Group. No executive
officer of any member of the Company Group, to the Company’s Knowledge, is in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or
agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company
Group to any material liability with respect to any of the foregoing matters. Each member of the Company Group is in compliance
with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits,
terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually
or in the aggregate, reasonably be expected to result in a Company Group Material Adverse Effect. No labor dispute with the employees
of the Company or any of its subsidiaries exists or, to the Company’s Knowledge, is threatened, and the Company has no knowledge
of any existing or imminent labor dispute by the employees of any of its principal suppliers, manufacturers, customers or contractors.

 

    8

     

    

 

(q)            Except
(i) as set forth in the Memorandum, (ii) may be required
under state securities or Blue Sky laws, (iii) as may be required under the Securities Act, the rules and regulations
of the Commission under the Securities Act (the “Securities Act Regulations”), the Exchange Act,
the rules and regulations of the SEC under the Exchange Act (the “Exchange Act Regulations”), the rules of
Nasdaq (the “Exchange”) or (iv) will have been obtained or made on or prior to the First Closing, no consent,
approval, order or authorization of, or registration, qualification, designation, declaration or filing with any court or governmental
authority or other Person on the part of any member of the Company Group is required in connection with the issuance or sale of
the Securities or the consummation of the transactions contemplated herein or in the other Transaction Documents.

 

(r)            Subsequent
to the respective dates as of which information is given in the Memorandum, each of the members of the Company Group has operated
their respective businesses in the ordinary course and, except as may otherwise be set forth in the Memorandum or in the SEC Reports,
there has been no: (i) Company Group Material Adverse Effect; (ii) transaction otherwise than in the ordinary course
of business consistent with past practice; (iii) issuance of any securities (debt or equity) or any rights to acquire any
such securities other than pursuant to equity incentive plans approved by its board of directors; (iv) damage, loss or destruction,
whether or not covered by insurance, with respect to any asset or property of any members of the Company Group or (v) agreement
to permit any of the foregoing.

 

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

 

(t)             No
member of the Company Group is: (i) in violation of its charter documents, (ii) in violation of any statute, rule or
regulation applicable to such member, the violation of which would have or would reasonably be expected to have a Company Group
Material Adverse Effect; or (iii) in violation of any judgment, decree or order of any court or governmental body having jurisdiction
over such member of the Company Group, which violation or violations individually, or in the aggregate, could reasonably be expected
to have a Company Group Material Adverse Effect.

 

    9

     

    

 

(u)            Except
as disclosed in the Memorandum, none of the shareholders of the Company, or any director, officer or manager of the Company or
any Subsidiary (i) owns, directly or indirectly, any interest in any Person which is a competitor, supplier or customer of
any member of the Company Group (unless such person is a publicly traded company), (ii) owns, directly or indirectly, in whole
or in part, any property, asset or right, real, personal or mixed, tangible or intangible (including any of the Intangibles) which
is utilized by or in connection with the business of any member of the Company Group, (iii) is a customer of, or supplier
to, any member of the Company Group or (iv) directly or indirectly has an interest in or is a party to any Material Contract
pertaining or relating to any member of the Company Group. In addition, no shareholder of the Company, director, officer or employee
of the Company or any Shareholder, nor, to the Company’s Knowledge, any affiliate of any such person is presently, directly
or indirectly through his/her affiliation with any other person or entity, a party to any loan from any member of the Company Group.

 

(v)             Each
of the Company and the Subsidiaries has filed, on a timely basis, each federal, state, local and foreign tax return, report and
declarations that were required to be filed, or has requested an extension therefor and has paid all taxes and all related assessments,
charges, penalties and interest to the extent that the same have become due. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. Neither
the Company nor any Subsidiary has executed any waiver with respect to the statute of limitations relating to the assessment or
collection of any foreign, federal, state or local tax. To the Company’s Knowledge, none of the Company Group’s tax
returns is presently being audited by any taxing authority. No liens have been filed and no claims are being asserted by or against
any member of the Company Group with respect to any taxes (other than liens for taxes not yet due and payable). The Company has
received no notice of assessment or proposed assessment of any taxes claimed to be owed by it or any other Person on its behalf.
Neither the Company nor any Subsidiary is a party to any tax sharing or tax indemnity agreement or any other agreement of a similar
nature that remains in effect. The Company and the Subsidiaries have complied in all material respects with all applicable legal
requirements relating to the payment and withholding of taxes and, within the time and in the manner prescribed by law, has withheld
from wages, fees and other payments and paid over to the proper governmental or regulatory authorities all amounts required.

 

    10

     

    

 

(w)            Except
as otherwise disclosed in the Memorandum or the SEC Reports, (i) each member of the Company Group has at all times conducted
and currently conducts its business in compliance, in all material respects, with all Environmental Laws (as defined below), including
having and complying with all environmental permits, licenses and other approvals and authorizations necessary for the operation
of its business as presently conducted, (ii) no member of the Company Group has received any communication from any arbitrator,
court, governmental body, regulatory body, administrative agency or other authority, body or agency having jurisdiction over the
Company, any of its Subsidiaries or any of their respective properties, assets or operations (each, a “Governmental Entity”)
or any other Person alleging that it may be or was in violation of, or liable under, any Environmental Law, and (iii) there
is no claim pending, or to the Company’s Knowledge, threatened, against the Company or any member of the Company Group arising
under any Environmental Law. For purposes hereof, “Environmental Law” means any applicable Federal, state, local
or foreign laws, relating to (a) the protection, preservation or restoration of the environment (including, air, water vapor,
surface water, groundwater, drinking water supply, surface land, subsurface land, plant and animal life or any other natural resource)
or (b) the exposure to, or the use, storage, recycling, treatment, generation, transportation, processing, handling, labeling,
production, release or disposal of, Hazardous Substances, in each case as amended and as in effect on the date hereof. “Hazardous
Substance” means any substance listed, defined, designated or classified as hazardous, toxic, radioactive, or dangerous,
or otherwise regulated, under any Environmental Law. Hazardous Substance includes any substance for which exposure is regulated
by any Governmental Entity or any Environmental Law including, but not limited to, any toxic waste, pollutant, contaminant, hazardous
substance, toxic substance, hazardous waste, special waste, petroleum or any derivative or by-product thereof, radon, radioactive
material, asbestos, or asbestos containing material, urea formaldehyde foam insulation, lead or polychlorinated biphenyls.

 

(x)            Except
as disclosed in the Memorandum or the SEC Reports, neither the Company nor any Subsidiary owns any real property. Each of the Company
and the Subsidiaries has good and marketable title to all personal property and assets reflected as owned by it in the financial
statements referred to in Section 2(h)  above and which are material to the business of the Company or such Subsidiary,
in each case free and clear of any security interests, mortgages, liens, encumbrances, claims and other defects, except such as
do not materially and adversely affect the value of such property and do not materially interfere with the use made or proposed
to be made of such property. The real property, improvements, equipment and personal property held under lease by each of the Company
and the Subsidiaries are held under valid and enforceable leases, with such exceptions as are not material, and do not materially
interfere with the use made or proposed to be made of such real property, improvements, equipment or personal property. With respect
to the property and assets leased, each member of the Company Group is in compliance with such leases.

 

(y)            Each
member of the Company Group and any “employee benefit plan” (as defined under the Employee Retirement Income Security
Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”))
established or maintained by the Company, the Subsidiaries or their “ERISA Affiliates” (as defined below) are in compliance
in all material respects with ERISA. “ERISA Affiliate” means, with respect to the Company or a Subsidiary, any
member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986,
as amended, and the regulations and published interpretations thereunder (the “Code”) of which the Company or
such Subsidiary is a member. Each “employee benefit plan” established or maintained by the Company, its Subsidiaries
or any of their ERISA Affiliates that is intended to be qualified under Section 401(a) of the Code is so qualified and
nothing has occurred, whether by action or failure to act, which would cause the loss of such qualification.

 

    11

     

    

 

(z)            Neither
the Company, any Subsidiary, nor, to the Company’s Knowledge, any director, officer, agent, employee or other Person acting
on behalf of any of such entities has, in the course of its actions for, or on behalf of, the Company or any Subsidiary has taken
any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977,
as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making
use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise
to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of
anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or
official thereof or any candidate for foreign political office, in contravention of the FCPA and the Company, its Subsidiaries
and, to the Company’s Knowledge, its and their respective affiliates have conducted their businesses in compliance with the
FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue
to ensure, continued compliance therewith.

 

(aa)          The
operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the “Money Laundering
Laws”); and no action, suit or proceeding by or before any Governmental Entity involving the Company or any of its Subsidiaries
with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(bb)         Neither
the Company, any of its Subsidiaries nor, to the Company’s Knowledge, its or their respective directors, officers, agents,
employees or affiliates are currently the subject of sanctions administered or enforced by the United States Government, including,
without limitation, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the
United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority applicable
to the Company and its Subsidiaries (collectively, “Sanctions”), nor is the Company or any of its Subsidiaries
located, organized or resident in a country or territory that is the subject of Sanctions; and the Company does not intend to,
directly or indirectly, use the proceeds of the sale of the Securities, or lend, contribute or otherwise make available such proceeds
to any subsidiaries, joint venture partners or other Person, to fund any activities of or business with any Person, or in any country
or territory, that, at the time of such funding, is the subject of Sanctions or in any other manner that will result in a violation
by any Person (including any Person participating in the transaction, whether as underwriter, advisor, purchaser or otherwise)
of Sanctions.

 

(cc)          Except
as disclosed to the Placement Agent in writing, no member of the Company Group is obligated to pay, and has not obligated the Placement
Agent to pay, a finder’s or origination fee in connection with the Offering (other than to the Placement Agent), and the
Company hereby agrees to indemnify the Placement Agent from any such claim made by any other person, as more fully set forth in
Section 8 hereof. Except as disclosed to the Placement Agent, the Company has not offered for sale or solicited offers to
purchase any of the Securities being offered pursuant to the Memorandum except for negotiations with the Placement Agent.

 

(dd)         Except
as described in the Memorandum or the SEC Reports, the Company maintains an effective system of “disclosure controls and
procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that complies with the requirements of the Exchange
Act and that has been designed to ensure that information required to be disclosed by the Company in reports that it files
or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s
rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated
to the Company’s management as appropriate to allow timely decisions regarding required disclosure.

 

    12

     

    

 

(ee)          Except
as described in the Memorandum or the SEC Reports, the Company maintains effective internal control over financial reporting (as
defined under Rule 13a-15 and 15d-15 of the Exchange Act Regulations) and a system of internal accounting controls sufficient
to provide reasonable assurances that (A) transactions are executed in accordance with management’s general or specific
authorization; (B) transactions are recorded as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s
general or specific authorization and (D) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences Except as described in the Memorandum or the SEC Reports,
since the end of the Company’s most recent audited fiscal year, there has been (1) no material weakness in the Company’s
internal control over financial reporting (whether or not remediated) and (2) no change in the Company’s internal control
over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal
control over financial reporting.

 

(ff)           Each
of the Company and the Subsidiaries is insured by recognized, financially sound and reputable institutions with policies in such
amounts and with such deductibles and covering such risks as are prudent and customary in the business in which it is engaged,
including directors and officers liability.

 

(gg)         The
Company’s Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act and is listed
on the Exchange; the Company has taken no action designed to, or likely to have the effect of, terminating the registration of
the Common Stock under the Exchange Act or delisting the Common Stock from the Exchange; except as set forth in the Memorandum
or the SEC Reports, the Company has not received any notice that it is out of compliance with the listing or maintenance requirements
of the Exchange and the Company is, and will continue to be, in material compliance with all such listing and maintenance requirements;
and the Company has not received any notification that the SEC or the Exchange is contemplating terminating the registration of
the Common Stock under the Exchange Act or delisting the Common Stock from the Exchange.

 

    13

     

    

 

(hh)         The
Company, as well as all Company Related Persons (as defined below) are not subject to any of the disqualifications set forth in
Rule 506(d) of Regulation D (each a “Disqualification Event”). The Company has
exercised reasonable care to determine whether any Company Related Person is subject to a Disqualification Event. The
Memorandum contains a true and complete description of the matters required to be disclosed with respect to the Company and the
Company Related Persons pursuant to the disclosure requirements of Rule 506(e) of Regulation D, to the extent applicable.
As used herein, “Company Related Persons” means any predecessor of the Company, any affiliated Company, any
director, executive officer, other officer of the Company participating in the Offering, any general partner or managing member
of the Company, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on
the basis of voting power, and any “promoter” (as defined in Rule 405 under the Act) connected with the Company
in any capacity. The Company agrees to promptly notify the Placement Agent in writing of (i) any Disqualification Event relating
to any Company Related Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating
to any Company Related Person.

 

(ii)            No
representation or warranty by the Company contained in Section 2 of this Agreement and no statement by the Company contained
in the Schedule of Exceptions to this Agreement contains any untrue statement of a material fact, or omits to state a material
fact necessary to make the statements contained therein, in the light of the circumstances in which they are made, not misleading.

 

(jj)            Until
the earlier of (i) the Termination Date and (ii) the Final Closing, the Company will not issue any press release, grant
any interview, or otherwise communicate with the media in any manner whatsoever with respect to the Offering without the Placement
Agent’s prior consent, which consent will not unreasonably be withheld, delayed or conditioned.

 

2A. Representations,
Warranties and Covenants of Placement Agent. The Placement Agent represents and warrants to Company that the following representations
and warranties are true and correct as of the date of this Agreement:

 

(a)            Aegis
is a corporation duly organized, validly existing and in good standing under the laws of the State of New York and has all requisite
corporate power and authority to enter into this Agreement and to carry out and perform its obligations under the terms of this
Agreement.

 

(b)            This
Agreement has been duly authorized, executed and delivered by the Placement Agent, and upon due execution and delivery by the Company,
this Agreement will be a valid and binding agreement of the Placement Agent enforceable against it in accordance with its terms,
except as may be limited by principles of public policy and, as to enforceability, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws relating to or affecting creditor’s rights from time to time in effect and subject
to general equity principles.

 

(c)            The
Placement Agent is a member in good standing of FINRA and is registered as a broker-dealer under the Exchange Act, and under the
securities acts of each state into which it is making offers or sales of the Securities. The Placement Agent is in compliance with
all applicable rules and regulations of the SEC and FINRA, except to the extent that such noncompliance would not have a material
adverse effect on the transactions contemplated hereby. None of the Placement Agent or its affiliates, or any person acting on
behalf of the foregoing (other than Company or its affiliates or any person acting on its or their behalf, in respect of which
no representation is made) has taken nor will it take any action that conflicts with the conditions and requirements of, or that
would make unavailable with respect to the Offering, the exemption(s) from registration available pursuant to Rule 506
of Regulation D or Section 4(a)(2) of the Act, or knows of any
reason why any such exemption would be otherwise unavailable to it.

 

    14

     

    

 

(d)            None
of the execution and delivery of or performance by the Placement Agent under this Agreement or any other agreement or document
entered into by the Placement Agent in connection herewith or the consummation of the transactions herein or therein contemplated
conflicts with or violates, any agreement or other instrument to which the Placement Agent is a party or by which its assets may
be bound, or any term of its certificate of incorporation or by-laws, or any license, permit, judgment, decree, order, statute,
rule or regulation applicable to Placement Agent or any of its assets, except in each case as would not have a material adverse
effect on the transactions contemplated hereby.

 

(e)            Neither
Placement Agent nor any Placement Agent Related Persons (as defined below) are subject to any Disqualification Event. Placement
Agent has exercised reasonable care to determine whether any Placement Agent Related Person is subject to a Disqualification Event.
The Memorandum contains a true and complete description of the matters required to be disclosed with respect to Placement Agent
and Placement Agent Related Persons pursuant to the disclosure requirements of Rule 506(e) of Regulation D, to the extent
applicable. As used herein, “Placement Agent Related Persons” means any director, general partner, managing
member, executive officer, or other officer of Placement Agent participating in the Offering. Placement Agent agrees to promptly
notify the Company in writing of (i) any Disqualification Event relating to any Placement Agent Related Person and (ii) any
event that would, with the passage of time, become a Disqualification Event relating to any Placement Agent Related Person.

 

3.             Placement
Agent Compensation.

 

(a)            In
connection with the Offering, the Company will pay at each Closing (as defined in Section 4(e) below) a cash fee (the
 “Agent Cash Fee”) to the Placement Agent equal to 10% of the gross proceeds from the sale of the Securities
consummated at such Closing, provided, however, that the Agent Cash Fee shall be ultimately reduced to 3%
with respect to sales of Securities (x) to any parties that were introduced by the Company (“Company Introductions”)
and (y) that are initiated through the efforts of qualified finders introduced by the Company located outside of the United
States (“Foreign Finders” and sales facilitated through such efforts, hereinafter, “Foreign Finder
Related Sales”). In that regard, the Company will notify the Placement Agent of any Foreign Finders that wish to participate
in the Offering and shall use its best efforts to have such Foreign Finders execute Referral Agreements with the Placement Agent
governing, among other things, compensation matters, with Foreign Finder Related Sales being deposited in the Escrow Account (as
defined below). To the extent that any potential Foreign Finder does not execute a Referral Agreement with the Placement Agent,
alternative arrangements with respect to participation in the Offering in compliance with all applicable laws will be discussed
by the parties hereto, but in all events, except as otherwise agreed to by the Placement Agent, the Placement Agent shall be entitled
to an Agent Cash Fee of not less than 3% on Foreign Finder Related Sales.

 

(b)            As
additional compensation, at or within ten (10) business days following the Final Closing, the Company will issue to the Placement
Agent (or its designee(s)) for nominal consideration, five-year warrants (the “Agent Warrants”) to purchase
such number of shares of the Company’s Common Stock as is equal to 10% of the aggregate number of shares of Common Stock
and Pre-Funded Warrant Shares sold in this Offering. The exercise price of the Agent Warrants shall be based on the applicable
price the shares of Common Stock or Pre-Funded Warrants sold at each Closing (the Agent Cash Fee and Agent Warrants are sometimes
referred to herein collectively as “Agent Compensation”). The Agent Warrants will be exercisable on a “cashless”
basis for the five year period following issuance. The Agent Warrants will be in such authorized denominations and will be registered
in such names as the Placement Agent shall request in an instruction letter (the “Agent Warrant Instruction Letter”)
to be delivered to the Company promptly following the Final Closing and the Company shall deliver such Agent Warrants to the Placement
Agent within ten (10) business days following the delivery of the Agent Warrant Instruction Letter. Notwithstanding the above,
the Agent Warrant coverage shall be 5% with respect to sales of shares of Common Stock and/or Pre-Funded Warrants to Company Introductions
and Foreign Finder Related Sales.

 

    15

     

    

 

(c)            At
each Closing, the Company will pay Aegis a non-accountable expense allowance equal to 3% of the aggregate purchase price of the
Securities sold at such Closing (inclusive of sales to Company Introductions and Foreign Finder Related Sales) (the “Agent
Expense Allowance”). The Agent Expense Allowance payable at the First Closing shall be reduced by the $25,000 advance
paid to Aegis previously. The Placement Agent will not bear any of Company’s legal, accounting, printing or other expenses
in connection with any transaction contemplated hereby. Aegis will pay for its own expenses, including all of its legal fees and
expenses, from the Agent Expense Allowance.

 

(d)            The
Company shall also pay and issue to the Placement Agent the Agent Compensation calculated according to the percentages set forth
in Sections 3(a) and (b) of this Agreement, if any person or entity contacted by the Placement Agent and provided with
a Memorandum during the Offering Period and with whom the Placement Agent has discussions regarding a potential investment in the
Offering, invests in the Company (other than through open or public market purchases or securities purchased in any underwritten
public offering) and irrespective of whether such potential investor purchased Securities in the Offering (the “Tail Investors”)
at any time prior to the earlier of the date that is twelve (12) months after the Termination Date or the Final Closing (“Tail
Period”), whichever is applicable. The names of Tail Investors shall be provided in writing by the Placement Agent to
the Company upon written request following the Termination Date or the Final Closing, as the case may be (the “Tail Investor
List”). The Company acknowledges and agrees that the Tail Investor List is proprietary to the Placement Agent, shall
be maintained in strict confidence by the Company and those persons/entities on such list shall not be contacted by the Company
without the Placement Agent’s prior written consent; provided, however, that such restrictions
shall not apply to ordinary course shareholder communications by the Company to its shareholders, including those Tail Investors
that are shareholders of the Company. In the event the Placement Agent exercises its right of first refusal with respect to an
offering pursuant to the provisions of Section 3(e) below, the specific compensation terms to the Placement Agent that
are negotiated in such offering shall govern and the provisions of this Section 3(d) will not be operative with respect
to such offering.

 

    16

     

    

 

(e)            Effective
upon the First Closing, the Company hereby grants to Aegis, for a period of six (6) months following the Final Closing (the
 “ROFR Term”), the irrevocable preferential right of
first refusal to act as lead or co-placement agent for any proposed private placement of the Company’s securities (equity
or debt) that is proposed to be consummated to investors in the United States with the assistance of a registered broker dealer.
In that regard, it is understood that if the Company determines to pursue such a financing during the ROFR Term and wishes to engage
a placement agent to assist in connection with such offering, the Company shall promptly provide the Placement Agent with a written
notice of such intention and statement of terms (the “Notice”).
If, within ten (10) business days of the receipt of the Notice, the Placement Agent does not accept in writing such offer
to act as lead or co-placement agent with respect to such offering upon the terms proposed, then the Company shall be entitled
to engage a placement agent other than Aegis; provided that the terms of the compensation to be paid to such other placement agent
or underwriter are not materially less favorable to the Company than the terms included in the Notice. The Placement Agent’s
failure to exercise these preferential rights in any situation shall not affect its preferential rights to any subsequent offering
during the ROFR Term. The Company represents and warrants that no other person has any right to participate in any offer,
sale or distribution of the Company’s securities to which Aegis’ preferential rights shall apply.

 

4.             Subscription
and Closing Procedures.

 

(a)            The
Company shall cause to be delivered to the Placement Agent copies of the Memorandum, consents to the use of such copies for the
purposes permitted by the Act and applicable securities laws and in accordance with the terms and conditions of this Agreement,
and hereby authorizes Placement Agent and its agents and employees to use the Memorandum in connection with the offering of the
Securities until the earlier of (i) the Termination Date or (ii) the Final Closing. No person or entity is or will be
authorized to give any information or make any representations other than those contained in the Memorandum or to use any offering
materials other than those contained in the Memorandum in connection with the sale of the Securities.

 

(b)            During
the Offering Period, the Company shall make available to the Placement Agent and its representatives such information as may be
reasonably requested in making a reasonable investigation of the Company Group and their respective affairs and shall provide access
to such employees during normal business hours as shall be reasonably requested by the Placement Agent.

 

(c)            Each
prospective purchaser will be required to complete and execute signature pages to the Subscription Agreement (the “Subscription
Documents”), which will be forwarded or delivered to the Placement Agent at the Placement Agent’s offices at the
address set forth in Section 12 hereof, together with the subscriber’s wire transfer in the full amount of the purchase
price for the number of shares of Common Stock or Pre-Funded Warrants desired to be purchased, subject to the Escrow Agent’s
(as defined below) right to accept a check in lieu of a wire transfer.

 

    17

     

    

 

(d)            All
funds for subscriptions received by the Placement Agent from the Offering (not otherwise wired directly to the Escrow Agent) will
be promptly forwarded by the Placement Agent and deposited into a non-interest bearing escrow account (the “Escrow Account”)
established for such purpose with Signature Bank, New York, New York (the “Escrow Agent”). All such funds for
subscriptions will be held in the Escrow Account pursuant to the terms of an escrow agreement among the Company, the Placement
Agent and the Escrow Agent (the “Escrow Agreement”). The Company will pay all fees related to the establishment
and maintenance of the Escrow Account and comply with procedures required by the Escrow Agent. The Company will either accept
or reject, for any or no reason, the Subscription Documents in a timely fashion and at each Closing, the Company will countersign
the Subscription Documents and provide duplicate copies of such documents to the Placement Agent for distribution to the subscribers.
The Placement Agent, on the Company’s behalf, will promptly return to subscribers incomplete, improperly completed, improperly
executed and rejected subscriptions.

 

(e)            If
subscriptions for at least the Minimum Offering Amount have been accepted prior to the Termination Date, the funds therefor have
been collected by the Escrow Agent and all of the conditions set forth elsewhere in this Agreement are fulfilled, the First Closing
shall be held promptly with respect to the Securities sold. Thereafter remaining shares of Common Stock and Pre-Funded Warrants
will continue to be offered and sold until the Termination Date and additional closings (each a “Closing”) may
from time to time be conducted at times mutually agreed to by the Placement Agent and the Company with respect to additional Securities
sold, with the final closing (“Final Closing”) to occur within ten (10) days after the earlier of the Termination
Date and the date on which the all Securities has been fully subscribed for. Delivery of payment for the accepted subscriptions
for Securities from funds held in the Escrow Account will be made at each Closing against delivery of the shares of Common Stock
and Pre-Funded Warrants by the Company. The shares of Common Stock will
be issued to the investors in the Offering in book entry format at each Closing, subject to certain carve-outs as set forth in
the Subscription Agreement.

 

(f)            If
Subscription Documents for at least the Minimum Offering Amount have not been received and accepted by the Company on or before
the Termination Date for any reason, the Offering will be terminated, no Securities will be sold, and pursuant to the terms of
the Escrow Agreement, the Escrow Agent will, at the Company’s and the Placement Agent’s written direction, cause all
monies received from subscribers to be promptly returned to such subscribers without interest, penalty, expense or deduction and
the Placement Agent and Company will promptly cooperate to accomplish the foregoing, including providing Escrow Agent with any
requested written instructions in such regard.

 

5.             Further
Covenants. The Company hereby covenants and agrees that:

 

(a)            Except
upon prior written notice to the Placement Agent, the Company shall not, at any time prior to the Final Closing, knowingly take
any action which would cause any of the representations and warranties made by it in this Agreement not to be complete and correct
in all material respects on and as of each Closing Date with the same force and effect as if such representations and warranties
had been made on and as of each such date (except to the extent any representation or warranty relates to an earlier date).

 

    18

     

    

 

(b)            If,
at any time prior to the Final Closing, any event shall occur that causes a Company Material Adverse Effect or otherwise which
as a result it becomes necessary to amend or supplement the Memorandum so that the representations and warranties herein remain
true and correct in all material respects, or in case it shall be necessary to amend or supplement the Memorandum to comply with
Regulation D or any other applicable securities laws or regulations, the Company will promptly notify the Placement Agent and shall,
at its sole cost, prepare and furnish to the Placement Agent copies of appropriate amendments and/or supplements in such quantities
as the Placement Agent may reasonably request for delivery by the Placement Agent to potential subscribers. The Company will not
at any time before the Final Closing prepare or use any amendment or supplement to the Memorandum of which the Placement Agent
will not previously have been advised and furnished with a copy, or which is not in compliance in all material respects with the
Act and other applicable securities laws. As soon as the Company is advised thereof, the Company will advise the Placement Agent
and its counsel, and confirm the advice in writing, of any order preventing or suspending the use of the Memorandum, or the suspension
of any exemption for such qualification or registration thereof for offering in any jurisdiction, or of the institution or threatened
institution of any proceedings for any of such purposes, and the Company will use its reasonable best efforts to prevent the issuance
of any such order and, if issued, to obtain as soon as reasonably possible the lifting thereof.

 

(c)            The
Company shall comply with the Act, the Exchange Act and the rules and regulations thereunder, all applicable state securities
laws and the rules and regulations thereunder in the states in which the Company’s blue sky counsel has advised the
Placement Agent that the Securities are qualified or registered for sale or exempt from such qualification or registration, so
as to permit the continuance of the Securities, and will file or cause to be filed with the SEC, and shall promptly thereafter
forward or cause to be forwarded to the Placement Agent, any and all reports on Form D as are required.

 

(d)            The
Company shall use its best efforts to qualify the Securities for sale under the securities laws of such jurisdictions in the United
States as may be mutually agreed to by the Company and the Placement Agent, and Company will make or cause to be made such applications
and furnish information as may be required for such purposes, provided that Company will not be required to qualify as a foreign
corporation in any jurisdiction or execute a general consent to service of process. The Company will, from time to time, prepare
and file such statements and reports as are or may be required to continue such qualifications in effect for so long a period as
the Placement Agent may reasonably request with respect to the Offering.

 

(e)            The
Company shall place a legend on the certificates representing the Securities sold in the Offering and the Agent Warrants that the
securities evidenced thereby have not been registered under the Act or applicable state securities laws, setting forth or referring
to the applicable restrictions on transferability and sale of such securities under the Act and applicable state laws.

 

    19

     

    

 

(f)            The
Company shall apply the net proceeds from the sale of the Securities for the purposes substantially as described in the Memorandum.
Except as set forth in the Memorandum, the Company shall not use any of the net proceeds of the Offering to repay indebtedness
to officers (other than accrued salaries incurred in the ordinary course of business), directors or shareholders of the Company
without the prior written consent of the Placement Agent.

 

(g)            During
the Offering Period, the Company shall afford each prospective purchaser of Securities the opportunity to ask questions of and
receive answers from an officer of the Company concerning the terms and conditions of the Offering and the opportunity to obtain
such other additional information necessary to verify the accuracy of the Memorandum to the extent the Company possesses such information
or can acquire it without unreasonable expense. In addition, to the extent that any purchaser of Securities has inquiries concerning
any of the business or operations of any member of the Company Group, the Company shall use reasonable best efforts to ensure that
officers of such members are made available to respond to such inquiries.

 

(h)            Except
upon obtaining the prior written consent of Aegis, which consent shall not be unreasonably withheld, the Company shall not, at
any time prior to the earlier of the Final Closing or the Termination Date, except as contemplated by the Memorandum (i) engage
in or commit to engage in any transaction outside the ordinary course of business, (ii) issue, agree to issue or set aside
for issuance any securities (debt or equity) or any rights to acquire any such securities; provided, that the Company
shall be permitted to issue stock options and/or restricted stock to officers, advisors, directors and employees of the Company
pursuant to its existing equity incentive plan as described in the SEC Reports, (ii) incur, outside of the ordinary course
of business, any material indebtedness, (iii) dispose of any material assets, (iv) make any acquisition (except to the
extent specifically referenced in the Memorandum) or (v) change its business or operations.

 

(i)             The
Company shall pay all reasonable expenses incurred in connection with the preparation and printing of all necessary offering documents
and instruments related to the Offering and the issuance of the shares of the Securities and the Agent Warrants and will also pay
its own expenses for accounting fees, legal fees and other costs involved with the Offering. All blue sky filings related to this
Offering and filing of a Form D with the SEC shall be prepared by the Company’s counsel, at the Company’s expense,
with copies of all filings to be promptly forwarded to the Placement Agent. Further, as promptly as practicable after the Final
Closing, the Company shall prepare, at its own expense, velobound “closing binders” relating to the Offering and will
distribute one such binder to each of the Placement Agent and its counsel.

 

(j)             Until
the earlier of the Termination Date or the Final Closing, the Company will not, nor will any person or entity acting on Company’s
behalf, negotiate with any other placement agent or underwriter with respect to a private or public offering of such entity’s
debt or equity securities. Neither the Company nor anyone acting on the Company’s behalf will, until the earlier of the Termination
Date or the Final Closing, without the prior written consent of the Placement Agent, offer for sale to, or solicit offers to subscribe
for any securities of the Company from, or otherwise approach or negotiate in respect thereof with, any other person.

 

    20

     

    

 

5A.          Placement
Agent Further Covenants. The Placement Agent shall not, at any time during the Offering Period, knowingly take any action which
would cause any of the representations and warranties made by it in this Agreement not to be complete and correct in all material
respects on and as of each Closing Date with the same force and effect as if such representations and warranties had been made
on and as of each such date (except to the extent any representation or warranty relates to an earlier date). Offers and sales
of the Common Stock and Pre-Funded Warrants by the Placement Agent will be made in accordance with this Agreement and in compliance
with the provisions of Regulation D, Regulation S, if applicable, and the Securities Act.

 

6.             Conditions
of Placement Agent’s Obligations. The obligations of the Placement Agent hereunder to effect a Closing are subject to
the fulfillment, at or before each Closing, of the following additional conditions:

 

(a)            Each
of the representations and warranties made in this Agreement by the Company qualified as to materiality shall be true and correct
at all times prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates to an
earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and the representations
and warranties made by the Company not qualified as to materiality shall be true and correct in all material respects at all times
prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates to an earlier date,
in which case such representation or warranty shall be true and correct in all material respects as of such earlier date.

 

(b)            The
Company shall have performed and complied in all material respects with all agreements, covenants and conditions required to be
performed and complied with by the Company at or before the Closing.

 

(c)            The
Memorandum shall not, and as of the date of any amendment or supplement thereto will not, include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading.

 

(d)            The
Company shall have obtained all consents, waivers and approvals required to be obtained by such parties in connection with the
consummation of the transactions contemplated hereby.

 

(e)            No
order suspending the use of the Memorandum or enjoining the Offering or sale of the Securities shall have been issued, and no proceedings
for that purpose or a similar purpose shall have been initiated or pending, or, to Company’s knowledge, threatened.

 

(f)            The
Placement Agent shall have received a certificate of an officer of the Company, dated as of the date of such Closing, certifying,
as to the fulfillment of the conditions set forth in subparagraphs (a), (b), (c), (d) and (e) above.

 

    21

     

    

 

(g)           Prior
to the First Closing, the Company shall have delivered to the Placement Agent: (i) a certified charter document and good standing
certificate for the Company and each Subsidiary, each dated as of a date within ten (10) days prior to the First Closing from
the secretary of state of its jurisdiction of incorporation or formation, as applicable, and (ii) resolutions of the Company’s
board of directors approving this Agreement and the transactions and agreements contemplated by this Agreement, certified by the
Chief Executive Officer of the Company.

 

(h)           At
each Closing, the Company shall pay and/or issue to the Placement Agent the Agent Cash Fee and Agent Expense Allowance earned in
such Closing.

 

(i)            At
each Closing, the Company shall deliver to the Placement Agent a signed opinion of Sullivan & Worcester, counsel to the
Company, dated as of each such Closing Date, in the form reasonably acceptable to the Placement Agent.

 

(j)            [RESERVED]

 

(k)           All
proceedings taken at or prior to any Closing in connection with the authorization, issuance and sale of the Securities will be
reasonably satisfactory in form and substance to the Placement Agent and its counsel, and such counsel shall have been furnished
with all such documents and certificates as it may reasonably request upon reasonable prior notice in connection with the transactions
contemplated hereby.

 

7.             Conditions
of Company’s Obligations. The obligations of the Company hereunder to effect a Closing are subject to the fulfillment,
at or before such Closing, of the following additional conditions or subject to the waiver of such condition or conditions by the
Company:

 

(a)           Each
of the representations and warranties made in this Agreement by the Placement Agent qualified as to materiality shall be true and
correct at all times prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates
to an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and the representations
and warranties made by the Placement Agent not qualified as to materiality shall be true and correct in all material respects at
all times prior to and on each Closing Date, except to the extent any such representation or warranty expressly relates to an earlier
date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date.

 

(b)           The
Placement Agent shall have performed and complied in all material respects with all agreements, covenants and conditions required
to be performed and complied with by it at or before the Closing.

 

(c)           The
Company shall have received a certificate of an officer of the Placement Agent, dated as of the Closing Date, certifying, as to
the fulfillment of the conditions set forth in subparagraphs (a) and (b) above.

 

    22

     

    

 

(d)           No
order suspending the use of the Memorandum or enjoining the Offering or sale of the Securities shall have been issued, and no proceedings
for that purpose or a similar purpose shall have been initiated or pending, or, to the Company’s knowledge, be contemplated
or threatened.

 

8.             Indemnification.

 

(a)           The
Company will: (i) indemnify and hold harmless the Placement Agent, its officers, directors, partners, employees, agents (including
subagents and selected dealers) and each person, if any, who controls the Placement Agent within the meaning of the Section 15
of the Act or Section 20(a) of the Exchange Act (each an “Indemnitee”) against, and pay or reimburse
each Indemnitee for, any and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedings or investigations
in respect thereof), joint or several (which will, for all purposes of this Agreement, include, but not be limited to, all reasonable
costs of defense and investigation and all reasonable attorneys’ fees, including appeals), to which any Indemnitee may become
subject under the Act or otherwise, in connection with the offer and sale of the Securities, insofar as such losses, claims, damages,
liabilities or expenses arise out of or relate to a breach of any representation, warranty or covenant made by the Company herein,
regardless of whether such losses, claims, damages, liabilities or expenses shall result from any claim by any Indemnitee or by
any third party; and (ii) reimburse each Indemnitee for any legal or other expenses reasonably incurred in connection with
investigating or defending against any such loss, claim, action, proceeding or investigation; provided, however,
that the Company will not be liable in any such case to the extent that any such claim, damage or liability is finally judicially
determined to have resulted primarily and directly from (A) an untrue statement or alleged untrue statement of a material
fact made in the Memorandum, or an omission or alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, made
solely in reliance upon and in conformity with written information furnished to the Company by the Placement Agent specifically
for use in the Memorandum, (B) any violations by the Placement Agent of the Act, state securities laws or any rules or
regulations of FINRA, which does not result from a violation thereof by the Company or any of its affiliates, or (C) the Placement
Agent’s willful misconduct or gross negligence. In addition to the foregoing agreement to indemnify and reimburse, the Company
will indemnify and hold harmless each Indemnitee against any and all losses, claims, damages, liabilities or expenses whatsoever
(or actions or proceedings or investigations in respect thereof), joint or several (which shall, for all purposes of this Agreement,
include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys’ fees, including
appeals) to which any Indemnitee may become subject insofar as such costs, expenses, losses, claims, damages or liabilities arise
out of or are based upon the claim of any person or entity that he or it is entitled to broker’s or finder’s fees from
any Indemnitee in connection with the Offering, other than fees due to the Placement Agent. The foregoing indemnity agreements
will be in addition to any liability the Company may otherwise have.

 

(b)           Aegis
will indemnify and hold harmless the Company and its officers, directors, and each person, if any, who controls such entity within
the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act against, and pay or reimburse any such
person for, any and all losses, claims, damages, liabilities or expenses whatsoever (or actions, proceedings or investigations
in respect thereof) to which the Company or any such person may become subject under the Act or otherwise in connection with the
offer and sale of the Securities, whether such losses, claims, damages, liabilities or expenses shall result from any claim of
the Company or by any third party, but only to the extent that such losses, claims, damages or liabilities are finally judicially
determined to have resulted primarily from or as a result of (i) any untrue statement or alleged untrue statement of any material
fact contained in the Memorandum made in reliance upon and in conformity with information contained in the Memorandum relating
to the Placement Agent, or an omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading, in either case, if
made or omitted in reliance upon and in conformity with written information furnished to the Company by the Placement Agent, specifically
for use in the Memorandum or (ii) any violations by the Placement Agent of the Act or state securities laws which does not
result from a violation thereof by the Issuer, the Operating Company or any of their respective affiliates, the Placement Agent’s
willful misconduct or gross negligence. The Placement Agent will reimburse the Company, the Company and any such person for any
legal or other expenses reasonably incurred in connection with investigating or defending against any such loss, claim, damage,
liability or action, proceeding or investigation to which such indemnity obligation applies. The foregoing indemnity agreements
are in addition to any liability which the Placement Agent may otherwise have. Notwithstanding the foregoing, in no event shall
the Placement Agent’s indemnification obligation hereunder exceed the aggregate amount of the Agent Cash Fee actually received
by the Placement Agent hereunder.

 

    23

     

    

 

(c)           Promptly
after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, claim, proceeding
or investigation (the “Action”), such indemnified party, if a claim in respect thereof is to be made against
the indemnifying party under this Section 8, will notify the indemnifying party of the commencement thereof, but the omission
to so notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party under this
Section 8 unless the indemnifying party has been substantially prejudiced by such omission. The indemnifying party will be
entitled to participate in and, to the extent that it may wish, jointly with any other indemnifying party, to assume the defense
thereof subject to the provisions herein stated, with counsel reasonably satisfactory to such indemnified party. The indemnified
party will have the right to employ separate counsel in any such Action and to participate in the defense thereof, but the fees
and expenses of such counsel will not be at the expense of the indemnifying party if the indemnifying party has assumed the defense
of the Action with counsel reasonably satisfactory to the indemnified party, provided, however, that
if the indemnified party shall be requested by the indemnifying party to participate in the defense thereof or shall have concluded
in good faith and specifically notified the indemnifying party either that there may be specific defenses available to it that
are different from or additional to those available to the indemnifying party or that such Action involves or could have a material
adverse effect upon it with respect to matters beyond the scope of the indemnity agreements contained in this Agreement, then the
counsel representing it, to the extent made necessary by such defenses, shall have the right to direct such defenses of such Action
on its behalf and in such case the reasonable fees and expenses of such counsel in connection with any such participation or defenses
shall be paid by the indemnifying party. No settlement of any Action against an indemnified party will be made without the consent
of the indemnifying party and the indemnified party, which consent shall not be unreasonably withheld, delayed or conditioned in
light of all factors of importance to such party, and no indemnifying party shall be liable to indemnify any person for any settlement
of any such claim effected without such indemnifying party’s consent.

 

    24

     

    

 

9.             Contribution.
To provide for just and equitable contribution, if: (i) an indemnified party makes a claim for indemnification pursuant to
Section 8 hereof and it is finally determined, by a judgment, order or decree not subject to further appeal that such claims
for indemnification may not be enforced, even though this Agreement expressly provides for indemnification in such case; or (ii) any
indemnified or indemnifying party seeks contribution under the Act, the Exchange Act, or otherwise, then each indemnifying party
shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only
such relative benefits but also the relative fault of the Company on the one hand and the Placement Agent on the other in connection
with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand
and the Placement Agent on the other shall be deemed to be in the same proportion as the total net proceeds from the Offering (before
deducting expenses) received by the Company bear to the total Agent Cash Fees received by the Placement Agent. The relative fault,
in the case of an untrue statement, alleged untrue statement, omission or alleged omission will be determined by, among other things,
whether such statement, alleged statement, omission or alleged omission relates to information supplied by the Company or by the
Placement Agent, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement, alleged statement, omission or alleged omission. The Company and the Placement Agent agree that it would be unjust
and inequitable if the respective obligations of the Company and the Placement Agent for contribution were determined by pro
rata allocation of the aggregate losses, liabilities, claims, damages and expenses or by any other method or allocation that
does not reflect the equitable considerations referred to in this Section 9. No person guilty of a fraudulent misrepresentation
(within the meaning of Section 10(f) of the Act) will be entitled to contribution from any person who is not guilty of
such fraudulent misrepresentation. For purposes of this Section 9, each person, if any, who controls the Placement Agent within
the meaning of the Act will have the same rights to contribution as the Placement Agent, and each person, if any, who controls
the Company within the meaning of the Act will have the same rights to contribution as the Company, subject in each case to the
provisions of this Section 9. Anything in this Section 9 to the contrary notwithstanding, no party will be liable for
contribution with respect to the settlement of any claim or action effected without its written consent. This Section 9 is
intended to supersede, to the extent permitted by law, any right to contribution under the Act, the Exchange Act or otherwise available.

 

10.           Termination.

 

(a)           The
Offering may be terminated by the Placement Agent at any time prior to the expiration of the Offering Period in the event that:
(i) any of the representations, warranties or covenants of the Company contained herein or in the Memorandum shall prove to
have been false or misleading in any material respect when actually made; (ii) the Company shall have failed to perform any
of its material obligations hereunder or under any other Transaction Documents; (iii) there shall occur any event that could
reasonably be expected to result in a Company Material Adverse Effect or (iv) the Placement Agent determines that it is reasonably
likely that any of the conditions to Closing set forth herein will not, or cannot, be satisfied. In the event of any such termination
by the Placement Agent pursuant to the above, the Placement Agent shall be entitled to retain any Agent Compensation already earned
(if any, at such point in time) and receive from the Company, within five (5) business days of the Termination Date, in addition
to other rights and remedies it may have hereunder, at law or otherwise, an amount equal the sum of $200,000 if such termination
occurs prior to the First Closing (the “Termination Amount”) plus upon presentation of a written accounting
in reasonable detail, reimbursement of Placement Agent’s reasonable and actual out-of-pocket expenses related to the Offering
in excess of the $25,000 previously paid, including but not limited to fees and expenses of its legal counsel (not to exceed $75,000)
and due diligence related expenditures (the “PA Expense Reimbursement”) and the provisions of Sections 3(d) and
3(e) shall survive in full force and effect.

 

    25

     

    

 

(b)           This
Offering may be terminated by the Company at any time prior to the expiration of the Offering Period on account of the Placement
Agent’s fraud, willful misconduct or gross negligence. In the event of any such termination pursuant to this Section 10(b),
the Placement Agent shall not be entitled to any further compensation pursuant to these termination provisions.

 

(c)           In
the event the Company unilaterally decides for any reason (other than pursuant to Section 10(b) above or Section 10(d) below)
to terminate the Offering at any time prior to the earlier of the First Closing or the Termination Date (the “Unilateral
Termination”), the Placement Agent shall be entitled to receive from the Company within five (5) business days of
such termination the sum of $250,000 plus the PA Expense Reimbursement. In addition, if within twelve (12) months after the Unilateral
Termination, the Company conducts a public or private offering of its securities, then upon the closing of any such transaction,
the Company shall pay the Placement Agent in cash, within five (5) business days of the closing of any such transaction an
amount equal to 2% of the gross proceeds from such private or public offering, provided that such percentage shall be the applicable
percentages set forth in section 3(d) hereto with respect to any gross proceeds from Tail Investors.

 

(d)           This
Offering may be terminated upon mutual agreement of the Company and the Placement Agent, at any time prior to the expiration of
the Offering Period. In addition, upon the expiration of the Offering Period, the Offering shall terminate without any further
action of the parties hereto. If the Offering is terminated pursuant to this Section 10(d), then in cases in which no Closing
had been theretofore consummated, the Company’s sole obligation to the Placement Agent shall be the PA Expense Reimbursement
which shall be paid within five (5) business days of such termination.

 

(e)           Before
any termination by the Placement Agent under Section 10(a) or by the Company under Section 10(b) shall become
effective, the terminating party shall give written notice to the other party of its intention to terminate the Offering, which
shall set forth the specific grounds for the proposed termination (the “Termination Notice”). If the specified
grounds for termination, or their resulting adverse effect on the transactions contemplated hereby, are curable, then the other
party shall have ten (10) days from the Termination Notice within which to remove such grounds or to eliminate all of their
material adverse effects on the transactions contemplated hereby; otherwise, the Offering shall terminate.

 

    26

     

    

 

(f)            Upon
any termination pursuant to this Section 10, the parties to this Agreement will promptly instruct Escrow Agent to cause all
monies received with respect to the subscriptions for Securities not closed upon to be promptly returned to such subscribers without
interest, penalty or deduction.

 

11.           Survival.

 

(a)           The
obligations of the parties to pay any costs and expenses hereunder and to provide indemnification and contribution as provided
herein shall survive any termination hereunder. In addition, the provisions of 8 through 16 shall survive the sale of the Securities
or any termination of the Offering hereunder and the provisions of Sections 3(d) and 3(e) shall survive the sale of any
of the Securities or any termination of the Offering (other than a termination under Section 10(b).

 

(b)           The
respective indemnities, covenants, representations, warranties and other statements of Company and the Placement Agent set forth
in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf
of, and regardless of any access to information by, the Company or the Placement Agent, or any of their respective officers or
directors or any controlling person thereof, and will survive the sale of any Securities or any termination of the Offering hereunder
for a period of two (2) years from the earlier to occur of the Final Closing or the termination of the Offering.

 

12.           Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given
or made as of the date delivered personally, or the date mailed if mailed by registered or certified mail (postage prepaid, return
receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like
changes of address which shall be effective upon receipt) or sent by facsimile transmission, with confirmation received. If sent
to the Placement Agent, such notice will be mailed, delivered or telefaxed and confirmed to Aegis Capital Corp., 810 Seventh Ave,
11th Floor, New York, New York 10019, Attention: Adam K. Stern, telefax number (646) 390-9122 , with a copy (which shall not constitute
notice) to: Littman Krooks LLP, 655 Third Avenue, 20th Floor, New York, NY 10017 Attention: Steven Uslaner, Esq.,
telefax number (212) 490-2990, if sent to Company, such notice will be mailed, delivered or telefaxed and confirmed to DarioHealth
Corp. 8 HaTokhen Street, Caesarea Industrial Park, Israel 3088900, Attn: Erez Raphael, CEO, with a copy (which shall not constitute
notice) to: Sullivan & Worcester LLP, 1633 Broadway, 32nd Floor, New York, NY 10019 Attention: Oded Har-Even, Esq, telefax
number (212) 660-3001.

 

    27

     

    

 

13.           Governing
Law, Jurisdiction. This Agreement shall be deemed to have been made and delivered in New York City and shall be governed as
to validity, interpretation, construction, affect and in all other respects by the internal laws of the State of New York. THE
PARTIES AGREE THAT ANY DISPUTE, CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY RELATING TO OR ARISING OUT OF THIS AGREEMENT,
THE TERMINATION OR VALIDITY HEREOF, ANY ALLEGED BREACH OF THIS AGREEMENT OR THE ENGAGEMENT CONTEMPLATED HEREBY (ANY OF THE FOREGOING,
A “CLAIM”) SHALL BE SUBMITTED TO THE JUDICIAL ARBITRATION AND MEDIATION SERVICES, INC. (“JAMS”), OR
ITS SUCCESSOR, IN NEW YORK, FOR FINAL AND BINDING ARBITRATION IN FRONT OF A PANEL OF THREE ARBITRATORS WITH JAMS IN NEW YORK,
NEW YORK UNDER THE JAMS COMPREHENSIVE ARBITRATION RULES AND PROCEDURES (WITH EACH OF THE PLACEMENT AGENT AND THE COMPANY CHOOSING
ONE ARBITRATOR, AND THE CHOSEN ARBITRATORS CHOOSING THE THIRD ARBITRATOR).  THE ARBITRATORS SHALL, IN THEIR AWARD, ALLOCATE
ALL OF THE COSTS OF THE ARBITRATION, INCLUDING THE FEES OF THE ARBITRATORS AND THE REASONABLE ATTORNEYS’ FEES OF THE
PREVAILING PARTY, AGAINST THE PARTY WHO DID NOT PREVAIL.  THE AWARD IN THE ARBITRATION SHALL BE FINAL AND BINDING.  THE
ARBITRATION SHALL BE GOVERNED BY THE FEDERAL ARBITRATION ACT, 9 U.S.C. SEC. 1-16, AND THE JUDGMENT UPON THE AWARD RENDERED BY THE
ARBITRATORS MAY BE ENTERED BY ANY COURT HAVING JURISDICTION THEREOF.  THE COMPANY AND THE PLACEMENT AGENT AGREE AND CONSENT
TO PERSONAL JURISDICTION, SERVICE OF PROCESS AND VENUE IN ANY FEDERAL OR STATE COURT WITHIN THE STATE AND COUNTY OF NEW YORK IN
CONNECTION WITH ANY ACTION BROUGHT TO ENFORCE AN AWARD IN ARBITRATION.

 

14.           Miscellaneous.
No provision of this Agreement may be changed or terminated except by a writing signed by the party or parties to be charged therewith.
Unless expressly so provided, no party to this Agreement will be liable for the performance of any other party’s obligations
hereunder. Either party hereto may waive compliance by the other with any of the terms, provisions and conditions set forth herein;
provided, however, that any such waiver shall be in writing specifically setting forth those provisions
waived thereby. No such waiver shall be deemed to constitute or imply waiver of any other term, provision or condition of this
Agreement. Neither party may assign its rights or obligations under this Agreement to any other person or entity without the prior
written consent of the other party.

 

15.           Entire
Agreement; Severability. This Agreement together with any other agreement referred to herein supersedes all prior understandings
and written or oral agreements between the parties with respect to the Offering and the subject matter hereof. If any portion of
this Agreement shall be held invalid or unenforceable, then so far as is reasonable and possible (i) the remainder of this
Agreement shall be considered valid and enforceable and (ii) effect shall be given to the intent manifested by the portion
held invalid or unenforceable.

 

16.           Counterparts.
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.

 

[Signatures on following page.]

 

    28

     

    

 

If the foregoing is
in accordance with your understanding of the agreement between the Company and the Placement Agent, kindly sign and return this
Agreement, whereupon it will become a binding agreement between the Company and the Placement Agent in accordance with its terms.

 

	DARIOHEALTH CORP.	 
	 	 
	By:	 /s/ Erez Raphael	 
	 	Erez Raphael	 
	 	Chief Executive Officer	 
	 	 
	Accepted and agreed to this 21st day of July 2020:	 
	 	 
	AEGIS CAPITAL CORP.	 
	 	 
	By:	 /s/ Adam Stern	 
	 	Adam K. Stern	 
	 	Head of Private Equity Banking	 

 

    

     

    

 

SCHEDULE OF EXCEPTIONS

 

    

     

    

 

Schedule 2(c)

 

Subsidiaries

 

	Subsidiary	State of

 Organization
	LabStyle Innovation Ltd.	IsraelExhibit 10.4

 

AMENDMENT NO. 1 TO

 

PLACEMENT AGENCY AGREEMENT

 

THIS AMENDMENT NO.
1 TO PLACEMENT AGENCY AGREEMENT, dated as of July 30, 2020 (this “Amendment”), is by and between DarioHealth
Corp., a Delaware corporation (the “Company”) and Aegis Capital Corp., a New York corporation
(the “Placement Agent”), a registered broker-dealer and member of the Financial
Industry Regulatory Authority.

 

W I T N E S S E T H

 

WHEREAS, the
parties hereto have heretofore entered into a Placement Agency Agreement, dated July 21, 2020 (the “Agreement”);
and

 

WHEREAS, the
Company and the Placement Agent wish to amend the Agreement on the terms set forth herein.

 

NOW, THEREFORE,
the parties hereto, in consideration of the mutual promises herein contained and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, hereby agree to amend the Agreement as follows:

 

1.            Definitions;
References; Continuation of Agreement. Unless otherwise specified herein, each term used herein that is defined in the Agreement
shall have the meaning assigned to such term in the Agreement. Each reference to “hereof,” “hereto,” “hereunder,”
 “herein” and “hereby” and each other similar reference, and each reference to “this Agreement”
and each other similar reference, contained in the Agreement shall from and after the date hereof refer to the Agreement as amended
hereby. Except as amended hereby, all terms and provisions of the Agreement shall continue unmodified and remain in full force
and effect.

 

2.            Amendment.
The first sentence of Section 3(c) of the Agreement is hereby amended in its entirety to read as follows:

 

“At each Closing,
the Company will pay Aegis a non-accountable expense allowance equal to 2.16056% of the aggregate purchase price of the Securities
sold at such Closing (inclusive of sales to Company Introductions and Foreign Finder Related Sales) (the “Agent Expense
Allowance”).”

 

3.            Counterparts.
This Amendment 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 the other party, it being
understood that both 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.

 

4.            Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

 

     

    

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed on the date first above written.

 

	DARIOHEALTH CORP.	 
	 	 	 
	By:	/s/ Zvi Ben-David	 

	 	Zvi Ben-David	 
	 	Chief Financial Officer	 

 

	AEGIS CAPITAL CORP.	 
	 	 	 
	By:	 /s/ Adam K. Stern	 

	 	Adam K. Stern	 
	 	Head of Private Equity Banking	 

 

Signature Page to Amendment No. 1 to Placement Agency Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00313-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00313-of-00352.parquet"}]]