Document:

Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of October 7, 2019, between Sorrento Therapeutics, Inc., a Delaware
corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act
of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and each
Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in
this Agreement.

 

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

 

ARTICLE I.

DEFINITIONS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than
the second (2nd) Trading Day following the date hereof.

 

    

     

    

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

“Company
Counsel” means Paul Hastings LLP, with offices located at 1117 S. California Avenue, Palo Alto, CA 94304.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Disclosure
Time” means, (i) if this Agreement is signed on a day that is not a Trading Day or after 9:00 a.m. (New York City time)
and before midnight (New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the Trading Day immediately following
the date hereof, unless otherwise instructed as to an earlier time by the Placement Agent, and (ii) if this Agreement is signed
between midnight (New York City time) and 9:00 a.m. (New York City time) on any Trading Day, no later than 9:01 a.m. (New York
City time) on the date hereof, unless otherwise instructed as to an earlier time by the Placement Agent.

 

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

 

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

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to consultants, employees, officers or directors
of the Company pursuant to any equity incentive plan duly adopted for such purpose, by a majority of the non-employee members of
the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose for services
rendered to the Company, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or
other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date
of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number
of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection
with stock splits or combinations) or to extend the term of such securities, and (c) securities issued pursuant to joint ventures,
acquisitions or strategic, commercial or collaborative transactions approved by a majority of the disinterested directors of the
Company, provided that such securities are issued as “restricted securities” (as defined in Rule 144) and carry no
registration rights that require or permit the filing of any registration statement in connection therewith during the prohibition
period in Section 4.12(a) herein, and provided that any such issuance shall only be to a Person (or to the equityholders of a Person)
which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business
of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall not include
a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary
business is investing in securities.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Per
Share Purchase Price” equals $2.30, subject to adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after the date of this Agreement but prior to the Closing
Date.

 

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

 

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

 

“Placement
Agent” means H.C. Wainwright & Co., LLC.

 

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

 

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

 

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with
the Commission and delivered by the Company to each Purchaser at the Closing.

 

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

 

“Registration
Statement” means the effective registration statement with Commission file No. 333-221443 which registers the sale of
the Shares, the Warrants and the Warrant Shares to the Purchasers.

 

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

 

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

 

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

 

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

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

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

 

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

 

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

 

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

 

“Subsidiary”
means the subsidiaries of the Company set forth on Schedule 3.1(a).

 

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

 

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

 

“Transaction
Documents” means this Agreement, the Warrants, all exhibits and schedules thereto and hereto and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Philadelphia Stock Transfer, Inc., the current transfer agent of the Company, with a mailing address of
2320 Haverford Road, Suite 230, Ardmore, PA 19003, and any successor transfer agent of the Company.

 

“Warrants”
means, collectively, the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance with Section 2.2(a)
hereof, which Warrants shall be exercisable on and after the date of issuance and have a term of exercise equal to seven (7) years,
in the form of Exhibit A attached hereto.

 

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

 

ARTICLE II.

PURCHASE AND SALE

 

2.1           Closing. On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to
sell, and the Purchasers, severally and not jointly, agree to purchase, up to an aggregate of approximately $25.0 million of Shares
and Warrants. Each Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such Purchaser shall
be made available for “Delivery Versus Payment” settlement with the Company or its designees. The Company shall deliver
to each Purchaser its respective Shares and a Warrant as determined pursuant to Section 2.2(a), and the Company and each Purchaser
shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions
set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of the Placement Agent or such other location as the
parties shall mutually agree. Unless otherwise directed by the Placement Agent, settlement of the Shares shall occur via “Delivery
Versus Payment” (“DVP”) (i.e., on the Closing Date, the Company shall issue the Shares registered in the
Purchasers’ names and addresses and released by the Transfer Agent directly to the account(s) at the Placement Agent identified
by each Purchaser; upon receipt of such Shares, the Placement Agent shall promptly electronically deliver such Shares to the applicable
Purchaser, and payment therefor shall be made by the Placement Agent (or its clearing firm) by wire transfer to the Company).

 

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2.2           Deliveries.

 

(a)           On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)                
this Agreement duly executed by the Company;

 

(ii)              
a legal opinion of Company Counsel, in a form reasonably acceptable to the Placement Agent and Purchasers;

 

(iii)            
subject to the last sentence of Section 2.1, the Company shall have provided each Purchaser with the Company’s wire
instructions, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer;

 

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

 

(v)              
a Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of
such Purchaser’s Shares, with an exercise price equal to $2.40, subject to adjustment therein (such original Warrant may
be delivered within two Trading Days after the Closing Date); and

 

(vi)            
the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b)           On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)                
this Agreement duly executed by such Purchaser; and

 

(ii)                such
Purchaser’s Subscription Amount, which shall be made available for “Delivery Versus Payment”
settlement with the Company or its designees.

 

2.3           Closing
Conditions.

 

(a)            The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)               
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Purchasers contained
herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)              
all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall
have been performed; and

 

(iii)             
the delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

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(b)            The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions
being met:

 

(i)                
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)              
all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall
have been performed;

 

(iii)             
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)             
there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)               from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or
the Company’s principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported
by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose
trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the
United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or
other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market
which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities
at the Closing.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure
Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure
contained in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and
warranties to each Purchaser:

 

(a)           
Subsidiaries. All of the direct and indirect subsidiaries of the Company that constitute significant subsidiaries
within the meaning of Item 601(b)(21)(ii) of Regulation S-K are set forth on Schedule 3.1(a). Except as set forth on Schedule
3.1(a), the Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free
and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and
are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If the Company
has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

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

 

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

 

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

 

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

 

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(f)            Issuance of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance
with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all
Liens imposed by the Company. The Warrant Shares, when issued in accordance with the terms of the Warrants, will be validly issued,
fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized
capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement and the Warrants. The Company has
prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective
on December 6, 2017 (the “Effective Date”), including the Prospectus, and such amendments and supplements
thereto as may have been required to the date of this Agreement. The Company was at the time of the filing of the Registration
Statement eligible to use Form S-3. The Company is eligible to use Form S-3 under the Securities Act and it meets the transaction
requirements as set forth in General Instruction I.B.1 of Form S-3. The Registration Statement is effective under the Securities
Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the
use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge
of the Company, are threatened by the Commission. The Company, if required by the rules and regulations of the Commission, shall
file the Prospectus Supplement with the Commission pursuant to Rule 424(b). At the time the Registration Statement and any amendments
thereto became effective, at the date of this Agreement and at the Closing Date, the Registration Statement and any amendments
thereto conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not
contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading (except to the extent superseded by subsequently filed SEC Reports); and the Prospectus
and any amendments or supplements thereto, at the time the Prospectus or any amendment or supplement thereto was issued and at
the Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and
will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading (except to the extent superseded by subsequently
filed SEC Reports).

 

(g)           Capitalization.
The capitalization of the Company as of the date hereof is as set forth on Schedule 3.1(g), which Schedule 3.1(g)
shall also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of
the date hereof. The Company has not issued any capital stock since its most recently filed periodic report under the Exchange
Act, other than pursuant to the exercise of employee stock options under the Company’s equity incentive plans, the issuance
of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans, pursuant to the conversion
and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange
Act, pursuant to that certain Underwriting Agreement, dated June 28, 2019, by and between the Company and JMP Securities LLC or
pursuant to that certain Equity Distribution Agreement, dated October 1, 2019, by and between the Company and JMP Securities LLC.
No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the
transactions contemplated by the Transaction Documents. Except as set forth on Schedule 3.1(g) or as a result of the purchase
and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of
any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for,
or giving any Person any right to subscribe for or acquire, any shares of Common Stock or the capital stock of any wholly-owned
Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any wholly-owned Subsidiary is or
may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock of any wholly-owned Subsidiary.
The issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares of Common Stock or other
securities to any Person (other than the Purchasers). There are no outstanding securities or instruments of the Company or any
Subsidiary with any provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon
an issuance of securities by the Company or any Subsidiary. There are no outstanding securities or instruments of the Company
or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or
arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary.
The Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan
or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and
nonassessable, have been issued in compliance with all applicable federal and state securities laws, and none of such outstanding
shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except for
the Required Approvals, 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 set forth on Schedule 3.1(g), 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.

 

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

 

(i)             Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial
statements included within the SEC Reports, except as set forth on Schedule 3.1(i), (i) there has been no event, occurrence
or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not
incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary
course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting,
(iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity
securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans. The Company does
not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities
contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability, fact, circumstance, occurrence or
development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries
or their respective businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed
by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly
disclosed at least 1 Trading Day prior to the date that this representation is made.

 

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(j)             Litigation. Except as set forth on Schedule 3.1(j), there is no action, suit, inquiry, notice of violation,
proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary
or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an
unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary,
nor any director or officer thereof (in his or her capacity as such), is or, except as disclosed in the SEC Reports, 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, to the Company’s knowledge, any current or former director or officer of the
Company (in his or her capacity as such). The Commission has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

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

 

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

 

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

 

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

 

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(o)            Title to Assets. Except as set forth on Schedule 3.1(o), the Company and the Subsidiaries have good and marketable
title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that
is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens
as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made
of such property by the Company and the Subsidiaries, and (ii) Liens for the payment of federal, state or other taxes, for which
appropriate reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject
to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid,
subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance, except where the failure to be
in compliance would not reasonably be expected to have a Material Adverse Effect.

 

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

 

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

 

(r)             Transactions
With Affiliates and Employees. Except as set forth on Schedule 3.1(r), none of the officers or directors of the Company
or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a
party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including equity incentive agreements under any equity incentive
plan of the Company.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(z)            No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth
in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder
approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

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(aa)          Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect
to the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s
assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital
to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate
all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(aa)
sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which
the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x)
any liabilities for borrowed money or amounts owed in excess of $100,000 (other than trade accounts and salaries and wages payable
incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of business; and (z) the present value of any lease payments in excess of $100,000 due under leases required to be capitalized
in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

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

 

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

 

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(dd)         Accountants.
The Company’s independent registered public accounting firm is Deloitte & Touche LLP. To the knowledge and belief of
the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express
its opinion with respect to the financial statements to be included in the Company’s Annual Report for the fiscal year ending
December 31, 2019.

 

(ee)          Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each
of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents
and the transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor
or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The
Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction
Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(ff)           Acknowledgment Regarding Purchaser’s Trading Activity. Anything
in this Agreement or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(e) and 4.14 hereof), it is understood
and acknowledged by the Company that: (i) none of the Purchasers has been asked by the Company to agree, nor has any Purchaser
agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities
based on securities issued by the Company or to hold the Securities for any specified term; (ii) past or future open market or
other transactions by any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions,
before or after the closing of this or future private placement transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (iii) any Purchaser, and counter-parties in “derivative” transactions to which any such
Purchaser is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and (iv)
each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities
(in material compliance with applicable laws) at various times during the period that the Securities are outstanding, including,
without limitation, during the periods that the value of the Warrant Shares deliverable with respect to Securities are being determined,
and (z) such hedging activities (if any) could reduce the value of the existing stockholders' equity interests in the Company
at and after the time that the hedging activities are being conducted.  The Company acknowledges that such aforementioned
hedging activities do not constitute a breach of any of the Transaction Documents.

 

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

 

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

 

(ii)            Stock
Option Plans. Each stock option granted by the Company under the Company’s equity incentive plans was granted (i) in
accordance with the terms of the Company’s equity incentive plans and (ii) with an exercise price at least equal to the
fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law.
No stock option granted under the Company’s equity incentive plans has been backdated. The Company has not knowingly granted,
and there is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly
coordinate the grant of stock options with, the release or other public announcement of material information regarding the Company
or its Subsidiaries or their financial results or prospects.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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(f)              Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser
has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time
that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company
setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof.
Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth
above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision
to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser’s
representatives that are bound by confidentiality obligations, including, without limitation, its officers, directors, partners,
legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures
made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing,
for the avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with
respect to locating or borrowing shares in order to effect Short Sales or similar transactions in the future.

 

The Company acknowledges
and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right
to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transactions contemplated hereby. Notwithstanding the foregoing, for the avoidance of doubt,
nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing
shares in order to effect Short Sales or similar transactions in the future.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1             Warrant
Shares. If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover
the issuance or resale of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares issued pursuant
to any such exercise shall be issued free of all legends. If at any time following the date hereof the Registration Statement
(or any subsequent registration statement registering the sale or resale of the Warrant Shares) is not effective or is not otherwise
available for the sale or resale of the Warrant Shares, the Company shall immediately notify the holders of the Warrants in writing
that such registration statement is not then effective and thereafter shall promptly notify such holders when the registration
statement is effective again and available for the sale or resale of the Warrant Shares (it being understood and agreed that the
foregoing shall not limit the ability of the Company to issue, or any Purchaser to sell, any of the Warrant Shares in compliance
with applicable federal and state securities laws). The Company shall use commercially reasonable efforts to keep a registration
statement (including the Registration Statement) registering the issuance or resale of the Warrant Shares effective during the
term of the Warrants.

 

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4.2             Furnishing
of Information. Until the earlier of the time that (i) no Purchaser owns Securities and (ii) the Warrants have expired, the
Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject
to the reporting requirements of the Exchange Act; provided, however that this covenant shall not prevent a sale, merger or similar
transaction involving the Company.

 

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

 

4.4             Securities
Laws Disclosure; Publicity. The Company shall (a) by the Disclosure Time, issue a press release disclosing the material terms
of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits
thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such press release,
the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered
to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees
or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance
of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement,
whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents,
employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates on the other hand, shall terminate.
The Company and each Purchaser shall consult with each other in issuing any other press releases with respect to the transactions
contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise make any such
public statement other than: (i) press releases or public statements that are consistent with the disclosures included in the
press release or Current Report on Form 8-K, or (ii) required filings with the Commission, without the prior consent of the Company,
with respect to any press release of any Purchaser, or without the prior consent of the Placement Agent, with respect to any press
release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by
law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication.
Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser
in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser,
except (a) as required by federal securities law in connection with the filing of final Transaction Documents with the Commission
and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide
the Purchasers with prior notice of such disclosure permitted under this clause (b).

 

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

 

4.6             Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person
acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company
reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to
the receipt of such information and agreed with the Company to keep such information confidential. The Company understands and
confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of
its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis
of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding
the Company or any Subsidiaries, the Company shall simultaneously file such material, non-public information with the Commission
pursuant to a Current Report on Form 8-K. The Company understands and confirms that each Purchaser shall be relying on the foregoing
covenant in effecting transactions in securities of the Company.

 

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

 

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4.8             Indemnification
of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of
a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless
from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and actual, reasonable and documented attorneys’ fees and costs of investigation
that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action
instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of
the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants
under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or
any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which is finally
judicially determined to constitute fraud, gross negligence or willful misconduct), or (c) in connection with any registration
statement of the Company providing for the resale by the Purchasers of the Warrant Shares issued and issuable upon exercise of
the Warrants, the Company will indemnify each Purchaser Party, to the fullest extent permitted by applicable law, from and against
any and all losses, claims, damages, liabilities, costs (including, without limitation, actual, reasonable and documented attorneys’
fees) and expenses, as incurred, arising out of or relating to (i) any untrue or alleged untrue statement of a material fact contained
in such registration statement, any prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein (in the case of any prospectus or supplement thereto, in the light of the circumstances
under which they were made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions
are based solely upon information regarding such Purchaser Party furnished in writing to the Company by such Purchaser Party expressly
for use therein, or (ii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state
securities law, or any rule or regulation thereunder in connection therewith. If any action shall be brought against any Purchaser
Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company
in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable
to the Purchaser Party. To the extent that a Purchaser Party fails to provide timely notice of a claim for indemnity under this
Section 4.8, and such failure materially prejudices the Company’s ability to defend against such claim, the Company shall
have no obligation under this Section 4.8 to indemnify the Purchaser Party for the claim (or portion thereof) that was so affected.
Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (x) the employment
thereof has been specifically authorized by the Company in writing, (y) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel or (z) in such action there is, in the reasonable opinion of such separate counsel,
a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which
case the Company shall be responsible for the actual, reasonable and documented fees and expenses of no more than one such separate
counsel. The Company will not be liable to any Purchaser Party under this Agreement (1) for any settlement by a Purchaser Party
effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (2) to the
extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of
any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other
Transaction Documents. The indemnification required by this Section 4.8 shall be made by periodic payments of the amount thereof
during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained
herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any
liabilities the Company may be subject to pursuant to law.

 

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4.9             Reservation
of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company
to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

4.10           Listing of
Common Stock. For as long as the Warrants are outstanding and exercisable, the Company hereby agrees to use commercially reasonable
efforts to maintain the listing or quotation of the Common Stock on the Trading Market on which it is currently listed, and concurrently
with the Closing, the Company shall apply to list or quote all of the Shares and Warrant Shares on such Trading Market and promptly
use commercially reasonable efforts to secure the listing of all of the Shares and Warrant Shares on such Trading Market. The
Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include
in such application all of the Shares and Warrant Shares, and will take such other action as is reasonably necessary to cause
all of the Shares and Warrant Shares to be listed or quoted on such other Trading Market as promptly as possible. The Company
will then take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and
will comply in all material respects with the Company’s reporting, filing and other obligations under the bylaws or rules
of the Trading Market. For so long as the Company maintains a listing or quotation of the Common Stock on a Trading Market, the
Company agrees to use commercially reasonable efforts to maintain the eligibility of the Common Stock for electronic transfer
through the Depository Trust Company or another established clearing corporation, including, without limitation, by timely payment
of fees to the Depository Trust Company or such other established clearing corporation in connection with such electronic transfer;
provided, however that this Section 4.10 shall not prevent a sale, merger or similar transaction involving the Company.

 

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4.11          
Reserved.

 

4.12          
Subsequent Equity Sales.

 

(a)             
From the date hereof until October 31, 2019 (inclusive), neither the Company nor any Subsidiary shall issue, enter into
any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents.

 

(b)             
Notwithstanding the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance and any sales of shares
of Common Stock pursuant to that certain Equity Distribution Agreement, dated as of October 1, 2019 by and between the Company
and JMP Securities LLC as in effect as of the date hereof at a sale price per share of $4.00 or higher.

 

4.13          
Equal Treatment of Purchasers. No consideration (including any modification of this Agreement) shall be offered or
paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration
is also offered to all of the parties to this Agreement. For clarification purposes, this provision constitutes a separate right
granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat
the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect
to the purchase, disposition or voting of Securities or otherwise.

 

4.14          
Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants
that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales,
including Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement
and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial
press release as described in Section 4.4.  Each Purchaser, severally and not jointly
with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed
by the Company pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality
of the existence and terms of this transaction and the information included in the Disclosure Schedules.  Notwithstanding
the foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and
agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions
in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting
any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the
transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in
Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company
to the Company or its Subsidiaries after the issuance of the initial press release as described in Section 4.4.  Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only
apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the
Securities covered by this Agreement.

 

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4.15          
Reserved.

 

4.16          
Exercise Procedures. The form of Notice of Exercise included in the Warrants and the payment of the exercise price
contemplated therein (other than if via cashless exercise) set forth the totality of the procedures required of the Purchasers
in order to exercise the Warrants. No additional legal opinion, other information or instructions shall be required of the Purchasers
to exercise their Warrants. Without limiting the preceding sentences, no ink-original Notice of Exercise shall be required, nor
shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required in order
to exercise the Warrants. The Company shall honor exercises of the Warrants and shall deliver Warrant Shares in accordance with
the terms, conditions and time periods set forth in the Transaction Documents.

 

ARTICLE V.

MISCELLANEOUS

 

5.1            
Termination.  This Agreement may be terminated by any Purchaser before the Closing, as to such Purchaser’s
obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by
written notice to the other parties, if the Closing has not been consummated on or before the fifth (5th) Trading Day
following the date hereof; provided, however, that no such termination will affect the right of any party to sue
for any breach by any other party (or parties).

 

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

 

5.3            
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and
the Prospectus Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof
and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge
have been merged into such documents, exhibits and schedules.

 

5.4            
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature
pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of
transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email
address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York
City time) on any Trading Day, (c) the second (2nd)Trading Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address
for such notices and communications shall be as set forth on the signature pages attached hereto.

 

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5.5            
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a
written instrument signed, in the case of an amendment, by the Company and Purchasers which purchased (or prior to the Closing
Date, agreed to purchase) at least 50.1% in interest of the Shares based on the initial Subscription Amounts hereunder or, in the
case of a waiver, by the party against whom enforcement of any such waived provision is sought, provided that if any amendment,
modification or waiver disproportionately and adversely impacts a Purchaser (or group of Purchasers), the consent of such disproportionately
impacted Purchaser (or group of Purchasers) shall also be required. No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately,
materially and adversely affects the rights and obligations of any Purchaser relative to the comparable rights and obligations
of the other Purchasers shall require the prior written consent of such adversely affected Purchaser. Any amendment effected in
accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Securities and the Company.

 

5.6            
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not
be deemed to limit or affect any of the provisions hereof.

 

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

 

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

 

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

 

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5.10          
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

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

 

5.12          
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

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5.13          
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any
similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option
under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided,
then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any
relevant notice, demand or election in whole or in part without prejudice to its future actions and rights; provided, however,
that in the case of a rescission of an exercise of a Warrant, the applicable Purchaser shall be required to (a) return any shares
of Common Stock subject to any such rescinded exercise notice concurrently with the return to such Purchaser of the aggregate
exercise price paid to the Company for such shares and the restoration of such Purchaser’s right to acquire such shares
pursuant to such Purchaser’s Warrant (including, issuance of a replacement warrant certificate evidencing such restored
right), and (b) rescind the exercise of the Warrant within two (2) Trading Days of delivery of the Warrant Shares related to such
exercise.

 

5.14          
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in
the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under
such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance
of such replacement Securities.

 

5.15          
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery
of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The
parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any
such obligation the defense that a remedy at law would be adequate.

 

5.16          
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17          
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way
for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained
herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to
constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated
by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without
limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for
any other Purchaser to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented
by its own separate legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience
only, each Purchaser and its respective counsel have chosen to communicate with the Company through the legal counsel of the Placement
Agent. The legal counsel of the Placement Agent does not represent any of the Purchasers and only represents the Placement Agent.
The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company
and not because it was required or requested to do so by any of the Purchasers. It is expressly understood and agreed that each
provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and
not between the Company and the Purchasers collectively and not between and among the Purchasers.

 

    32

     

    

 

5.18          
Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing
under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated
damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial
liquidated damages or other amounts are due and payable shall have been canceled.

 

5.19          
Saturdays, Sundays, Holidays, etc.If the last or appointed day for the taking of any action or the expiration
of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

 

5.20          
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

 

5.21          
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY
OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY,
UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

(Signature Pages Follow)

 

    33

     

    

 

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

 

 

	Sorrento Therapeutics, Inc. 	 	 
	 	 	 	Address for Notice:
	By:	 	 	 
	 	Name: Henry Ji, Ph.D.	 	E-mail:
	 	Title: President, Chief Executive Officer and Chairman of the Board	 	hji@sorrentotherapeutics.com
	 	 	 	 
	With a copy to (which shall not constitute notice):

	 	 
	 	 	 
	Sorrento Therapeutics, Inc.

	 	 
	4955 Directors Place	 	 
	San Diego, CA 92121

	 	 
	Attention: General Counsel

	 	 
	E-mail: dtelman@sorrentotherapeutics.com

	 	 
	 	 	 
	Paul Hastings LLP

	 	 
	1117 S. California Avenue

	 	 
	Palo Alto, CA 943041

	 	 
	Attention: Jeff Hartlin and Samantha Eldredge

	 	 
	E-mail: jeffhartlin@paulhastings.com and

 samanthaeldredge@paulhastings.com

	 	

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    34

     

    

 

[PURCHASER SIGNATURE PAGES TO SRNE SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	 	 

 

	Signature of Authorized Signatory of Purchaser:	 	 

 

	Name of Authorized Signatory:	 	 
	 	 	 
	Title of Authorized Signatory:	 	 

 

	Email Address of Authorized Signatory:	 	 

 

	Facsimile Number of Authorized Signatory:	 
	 	 
	Address for Notice to Purchaser:	 

 

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

 

DWAC for Shares:

 

	Subscription Amount: $_________________
	 
	Shares: _________________
	 
	Warrant Shares: __________________
	 
	EIN Number: ____________________

 

 ̈
Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed
to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations
of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded,
(ii) the Closing shall occur by the second (2nd) Trading Day following the date of this Agreement and (iii) any condition to Closing
contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required delivery by the Company or the
above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) shall no longer be a condition
and shall instead be an unconditional obligation of the Company or the above-signed (as applicable) to deliver such agreement,
instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing Date.

 

[SIGNATURE PAGES CONTINUE]

 

    35DARTMOUTH COLLEGE

    INTELLECTUAL PROPERTY LICENSE AGREEMENT

    

    

    This License Agreement (this “Agreement”) is made by and between Qrons Inc., a Wyoming  corporation with an address at 50 Battery Pl, #7T, New York, NY 10280 (“Licensee”) and Trustees of Dartmouth College
      (“Dartmouth”) with an address at 11 Rope Ferry Road, Hanover, NH 03755. This Agreement is effective as of September 3, 2019 (the “Effective Date”).

    

    

    RECITALS

    

    

    WHEREAS, Dartmouth is an institution of research and higher education and, as a result, has gained certain rights in intellectual property entitled Dartmouth Tech ID 2017-1061, “Mechanically Interlocked Molecules
      -based Materials for 3D Printing” invented by Chenfen Ke and Qianming Lin;

    

    

    WHEREAS, Dartmouth desires that the intellectual property be developed and utilized to the fullest possible extent so that its benefits can be enjoyed by the general public; and

    

    

    WHEREAS, Licensee desires to obtain certain rights from Dartmouth for commercial development, use, and sale of the intellectual property, and Dartmouth is willing to grant such rights.

    

    

    NOW, THEREFORE, the parties agree as follows:

    

    

    ARTICLE 1. DEFINITIONS

    

    

    
      	
              1.1

            	
              “Affiliate” means any entity that is bound in writing to the terms set forth in this Agreement and is listed on Schedule 1, as may be amended from time to time, and that directly or indirectly
                controls, is controlled by, or is under common control with a party, where “control” means (i) beneficial ownership of at least fifty percent (50%) of the voting securities of a corporation or other
                business organization with voting securities or (ii) a fifty percent (50%) or greater interest in the net assets or profits of a partnership or other business organization without voting securities.  An entity is an Affiliate only during
                such time as it meets the criteria of this definition.

            

    

    

    

    
      	
              1.2

            	
              “Combination Product” means a product that is sold for a single price that is a combination of a Licensed Product together with one or more “functional components” where such functional component is
                also sold by Licensee as a separately priced product and is not licensed under this Agreement.  For purposes of this definition, a “functional component” means (i) one or more active ingredients, or (ii) one or more functional products,
                devices, pieces of equipment or components.

            

    

    

    

    
      	
              1.3

            	
              “Confidential Information” has the meaning given to it in Section 11.2.

            

    

    

    

    
      	
              1.4

            	
              “Dartmouth Copyright(s)” are the copyrights owned by Dartmouth, or for which Dartmouth has the right to grant licenses, in the Licensed Works.

            

    

    

    

    
      	
              1.5

            	
              “Dartmouth IP” means the Dartmouth Patents, Dartmouth Copyrights and Dartmouth Know-How, that are listed in Schedule 2 attached hereto.

            

    

    

    

    
      	
              1.6

            	
              [Deleted]

            

    

    

    

    
      	
              1.7

            	
              “Dartmouth Patent(s)” means those United States patent application listed in Schedule 2 hereto and any corresponding foreign patent applications and patents, and any divisionals, continuations,
                continuations-in-part, reissues and reexaminations to the extent that the claims are directed to subject matter within the Field of Use (the “Base Patent”).  Dartmouth Patents also includes any additional patent rights to inventions
                conceived by at least one or both of the inventors that are solely owned and controlled by Dartmouth (or jointly owned with Licensee) that arise within five years of the Effective Date of this Agreement and that claim an improvement to any
                Licensed Product, where the making, using, importing, offering to sell or selling of such improvement, in the absence of a license to or ownership of the Base Patent, would infringe one or more claims of the Base Patent if such Base Patent
                issued as a patent, and where none of the claims of such patent rights can be practiced without practicing a claim of the Base Patent.

            

    

    

    

    
      1

      
        

    

    
      	
              1.8

            	
              “Derivative” means any revision, enhancement, modification, translation, abridgement, condensation, or expansion that is based on or incorporates any of the Licensed Works, in whole or in part.

            

    

    

    

    
      	
              1.9

            	
              “Disclosing Party” has the meaning given to it in Section 11.1.

            

    

    

    

    
      	
              1.10

            	
              “Fair Market Value” means the price at which the product or rights would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is
                not under any compulsion to sell, and both parties have reasonable knowledge of relevant facts.

            

    

    

    

    
      	
              1.11

            	
              “Field of Use” means human and animal health.

            

    

    

    

    
      	
              1.12

            	
              “First Commercial Sale” means the initial Sale of a Licensed Product or Licensed Service to a non-Affiliate anywhere in the world following receipt of all regulatory approvals necessary to commence
                regular commercial Sales in such country.

            

    

    

    

    
      	
              1.13

            	
              “GAAP” means Generally Accepted Accounting Principles as established and administered by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board.

            

    

    

    

    
      	
              1.14

            	
              “Insolvent” means as to Licensee a circumstance in which Licensee is not paying its debts, liabilities and other obligations as they become due, and Licensee is not able to make reasonable assurances
                to Dartmouth’s reasonable satisfaction that Licensee will be able to pay its debts, liabilities and other obligations as they become due.

            

    

    

    

    
      	
              1.15

            	
              “Licensed Patent Challenge” has the meaning given to it in Section 8.1.

            

    

    

    

    
      	
              1.16

            	
              “Licensed Product” means a product, in whole or in part, for which the development, manufacture, use, offer for sale, sale or import falls within the inventions claimed in the Dartmouth Patents or
                would constitute, but for the license granted to Licensee under this Agreement, an infringement, an inducement to infringe or contributory infringement of the Dartmouth Patents.

            

    

    

    

    
      	
              1.17

            	
              “Licensed Service” means any service, in whole or in part, provided through the use of or access to a Licensed Product, including, without limitation, any subscription service to access any Licensed
                Product and any support service to maintain a Licensed Product.

            

    

    

    

    
      	
              1.18

            	
              “Licensed Work(s)” means any work of authorship protected by the US Copyright Act or international copyright treaties, including, without limitation, computer software,  that is listed in Section B of
                Schedule 2.

            

    

    

    

    
      	
              1.19

            	
              “Minimum Annual Royalty” has the meaning given to it in Section 3.1(h).

            

    

    

    

    
      2

      
        

    

    
      	
              1.20

            	
              “Net Sales” means:

            

    

    

    

    
      	
              (a)

            	
              the gross amount billed for Licensed Products and Licensed Services Sold by (i) Licensee, (ii) each Sublicensee, and (iii) each Affiliate; MINUS

            

    

    

    

    
      	
              (b)

            	
              the following amounts (to the extent appropriately documented) actually paid, separately invoiced, or otherwise recognized as a revenue reduction related to Sale of Licensed Products and
                Licensed Services that occur or are accounted for in the same Royalty Reporting Period in which the applicable Sale accrues under this Agreement: (i) cash, rebates, trade, or quantity discounts; (ii) sales, use, tariff, import/export duties
                or other excise taxes imposed on particular sales, but not including income, and withholding taxes imposed on royalty payments or on the sales of Licensed Product in foreign countries; (iii) outbound transportation charges related to the
                Licensed Product Sold; and (iv) credits to customers because of rejections or returns of the Licensed Products.

            

    

    

    

    
      	
              (c)

            	
              No deductions will be made for any commissions paid to any individuals or for any costs or expenses of collections.

            

    

    

    

    
      	
              (d)

            	
              If Licensee, an Affiliate, or Sublicensee Sells any Licensed Products or Licensed Services at a discounted price that is lower than the Fair Market Value, or for non-cash consideration
                (whether or not at a discount), Net Sales will be calculated based on the Fair Market Value during the same Royalty Reporting Period.  Non-cash consideration will not be accepted by Licensee, any Affiliate, or any Sublicensee without the
                prior written consent of Dartmouth,  not to be unreasonably withheld.

            

    

    

    

     “Net Sales” specifically excludes any  amounts billed, invoiced or received attributable to any Sale of any Licensed Product or Licensed Service between or among Licensee and any Affiliate and/or
      Sublicensee, unless the recipient of the Licensed Product or Licensed Service is the final purchaser, user or consumer of such Licensed Product or Licensed Service.

    

    

    
      	
              1.21

            	
              “Notice of Default” has the meaning given to it in Section 7.1.

            

    

    

    

    
      	
              1.22

            	
              “Notice of Dispute” has the meaning given to it in Section 12.3.

            

    

    

    

    
      	
              1.23

            	
              “Notice of Termination” has the meaning given to it in Section 7.1.

            

    

    

    

    
      	
              1.24

            	
              “Patent Costs” means, whether incurred prior to or during the Term, all out-of-pocket expenses (including, without limitation, all reasonable attorneys’ fees, experts’ fees, translation fees and filing
                fees) for the preparation, filing, prosecution, maintenance and defense of all patent applications and patents included in the Dartmouth Patents, including, without limitation, out-of-pocket fees and expenses for patentability opinions,
                inventorship review and determination, re-examination, re-issue, interference, opposition activities, and administrative actions taken or defended under the Leahy-Smith America Invents Act, as in effect from time to time.

            

    

    

    

    
      	
              1.25

            	
              “Progress Reporting Period” has the meaning given to it in Section 4.1(a).

            

    

    

    

    
      	
              1.26

            	
              “Receiving Party” has the meaning given to it in Section 11.1.

            

    

    

    

    
      	
              1.27

            	
              “Royalty Reporting Period” has the meaning given to it in Section 4.1(b).

            

    

    

    

    
      3

      
        

    

    
      	
              1.28

            	
              “Sale (and variations including Sold and Sell)” means to sell, to lease, to import or otherwise to transfer a Licensed Product, and further in the case of a Licensed Service to use, perform or support
                such Licensed Service.

            

    

    

    

    
      	
              1.29

            	
              “Sublicense” means an agreement by which (a) Licensee grants to a third party that is not an Affiliate (i) any right to any of the Dartmouth IP, including, without limitation, any right to advertise,
                market or promote any Licensed Products or Licensed Services; or (ii) an option to acquire any right to any Dartmouth IP; or (b) Licensee, an Affiliate, or a Sublicensee covenants to not exercise any or some of the rights and licenses
                received pursuant to this Agreement.

            

    

    

    

    
      	
              1.30

            	
              “Sublicense Consideration” means any cash or non-cash consideration payable by a Sublicensee as consideration for or under a Sublicense granted pursuant to this Agreement, including, without
                limitation, any initiation fee, annual fees, and milestone payments. Any non-cash consideration received by Licensee or an Affiliate from a Sublicensee will be valued at its Fair Market Value as of the date of payment.  For clarity, the
                parties acknowledge that certain corporate structures may result in a third party receiving a Sublicense from the Licensee, but payment for the Sublicense is made to an Affiliate or another Sublicensee.

            

    

    

    

    
      	
              1.31

            	
              [Deleted]

            

    

    

    

    
      	
              1.32

            	
              “Term” means the term of this Agreement, which begins on the Effective Date and remains in effect, unless earlier terminated as provided herein, until the date on which all issued patents and filed
                patent applications within the Dartmouth Patents have: (a) expired; (b) been abandoned; or (c) declared invalid or unenforceable by a final, non-appealable order of a court or tribunal of competent jurisdiction.

            

    

    

    

    
      	
              1.33

            	
              “Territory” means worldwide.

            

    

    

    

    
      	
              1.34

            	
              “Third Party Rights” means: (i) all the applicable rights of the United States Government under 35 U.S.C. §§ 200-212 and applicable governmental implementing regulations; and (ii) all obligations of
                Dartmouth to any third party under any agreement set forth in Schedule 3 and entered into by Dartmouth prior to the Effective Date.

            

    

    

    

    ARTICLE 2. LICENSE GRANTS

    

    

    
      
        	2.1	
                License. Subject to Licensee’s compliance with the terms and conditions of this Agreement, Dartmouth hereby grants to Licensee and its Affiliate(s) in the Field of Use in the Territory during the Term the following licenses to
                  Dartmouth’s rights in the Dartmouth IP:

              

      

    

    

    

    
      	
              (a)

            	
              an exclusive royalty bearing license under the Dartmouth Patents to make and have made, use, sell, offer for sale, and import Licensed Products and Licensed Services;

            

    

    

    

    The licenses granted in this Section 2.1 are made subject to (i) Dartmouth’s rights set forth in Section 2.3 hereof, and (ii) Third Party Rights. Licenses granted to Affiliates pursuant to this
      Section 2.1 will be effective only upon Dartmouth’s amendment of Schedule 1 to add such Affiliate.

    

    

    
      
        	2.2	
                Sublicense.

              

      

    

    

    

    
      	
              (a)

            	
              Subject to compliance with the terms of this Section 2.2(a), the exclusive licenses granted in Section 2.1 to Licensee include the right of Licensee to grant Sublicenses to third parties in the Field of Use
                and in the Territory during the Term, but only to the extent that and during the period of time that the license to the applicable Dartmouth IP is exclusive and provided that Licensee shall:

            

    

    

    

    
      4

      
        

    

    
      	
              (i)

            	
              not receive, or agree to receive, anything of value in lieu of cash as consideration under such Sublicense without the express written consent of Dartmouth, not to be unreasonably withheld;

            

    

    
      	
              (ii)

            	
              limit the rights granted under the Sublicense to comply with the scope of rights granted to Licensee under this Agreement;

            

    

    
      	
              (iii)

            	
              prohibit any further sublicenses by the Sublicensee;

            

    

    
      	
              (iv)

            	
              obligate each Sublicensee to carry insurance and indemnify Dartmouth to the same extent as Licensee’s obligations under this Agreement;

            

    

    
      	
              (v)

            	
              make no warranties or representations on behalf of Dartmouth nor agree to any liability on behalf of Dartmouth

            

    

    
      	
              (vi)

            	
              include Dartmouth’s rights set forth in Section 2.2(b) with respect to the Sublicense upon termination of this Agreement;

            

    

    
      	
              (vii)

            	
              include the provision required by Section 8.2;

            

    

    
      	
              (viii)

            	
              promptly provide Dartmouth with a copy of each Sublicense issued;

            

    

    
      	
              (ix)

            	
              use commercially reasonable efforts to collect payment of all payments due, directly or indirectly, to Dartmouth from Sublicensees and summarize and deliver all reports due, directly or indirectly, to
                Dartmouth from Sublicensees; and

            

    

    
      	
              (x)

            	
              include Dartmouth as a named third party beneficiary under each Sublicense.

            

    

    

    

    
      	
              (b)

            	
              Unless a Sublicensee receives written agreement to the contrary from Dartmouth prior to the date on which the Sublicense becomes effective, upon the expiration or termination of this Agreement for any reason,
                Dartmouth, at its sole discretion, may take any of the following actions:  terminate the Sublicense, accept assignment of the Sublicense from Licensee, or reissue the license directly to Sublicensee from Dartmouth on reasonable terms and
                conditions to be negotiated in good faith.

            

    

    

    

    
      
        	2.3	
                Reservation of Rights. All licenses granted by Dartmouth under this Agreement are subject to Dartmouth’s reserved rights to:

              

      

    

    

    

    
      	
              (a)

            	
              make, use and practice the Dartmouth IP for educational and research purposes;

            

    

    
      	
              (b)

            	
              publish or otherwise disseminate any information about the Dartmouth IP at any time, subject to Article 11 and

            

    

    
      	
              (c)

            	
              grant governmental and non-profit institutions the royalty-free right to make, use and practice the Dartmouth IP for educational and research purposes.

            

    

    

    

    
      
        	2.4	
                No Additional Rights.  Nothing in this Agreement will be construed to grant Licensee an express or implied license under any patent, technology or intellectual property right owned solely or jointly by Dartmouth, other than for
                  the Dartmouth IP expressly licensed hereunder.  Dartmouth will have the right to license any Dartmouth IP to any other party for any purpose outside of the Field of Use and the Territory.

              

      

    

    

    

    ARTICLE 3. CONSIDERATION

    

    

    
      
        	3.1	
                Fees and Royalties. The parties understand that the fees and royalties payable to Dartmouth under this Agreement are partial consideration for the licenses granted under this Agreement. All payments made under this Agreement are
                  non-refundable.  Licensee shall:

              

      

    

    

    

    
      5

      
        

    

    
      	
              (a)

            	
               pay to Dartmouth a non-creditable license issue fee of twenty-five thousand dollars (US$25,000) upon the Effective Date;

            

    

    
      	
              (b)

            	
              pay to Dartmouth non-creditable annual license maintenance fees of twenty-five thousand dollars (US$25,000), payable on the first (1st) anniversary of the Effective Date and on each anniversary
                thereafter until the date of First Commercial Sale

            

    

    
      	
              (c)

            	
              [deleted]

            

    

    
      	
              (d)

            	
              pay to Dartmouth an earned royalty of two percent (2%) of Net Sales of Licensed Products and Licensed Services anywhere in the
                Territory by Licensee and its Affiliate(s);

            

    

    
      	
              (e)

            	
              pay to Dartmouth an earned royalty of two percent (2%) of Net Sales of Licensed Products and Licensed Services anywhere in the
                Territory by any Sublicensee;

            

    

    
      	
              (f)

            	
              [deleted]

            

    

    
      	
              (g)

            	
              pay to Dartmouth fifteen percent (15%) of all Sublicense Consideration received by Licensee and each Affiliate under a Sublicense; and

            

    

    
      	
              (h)

            	
              beginning as of the date of the First Commercial Sale, Licensee will pay to Dartmouth an annual minimum royalty (“Minimum Annual Royalty”) for each calendar year against which Licensee may credit
                earned royalties that become due and payable for Net Sales accrued during that calendar year; provided, however, that for the calendar year in which the First Commercial Sale occurs,  the amount of Minimum Annual Royalty payable will be
                pro-rated for the number of months remaining in that calendar year.  The first payment of the Minimum Annual Royalty will be due and payable with the royalty payment for the Royalty Reporting Period in which the First Commercial Sale
                occurred.  Thereafter, the Minimum Annual Royalty is due and payable on January 1 of each calendar year. Minimum Annual Royalty payments shall be made according to the following schedule:

               

              

            

    

             (i) Calendar year in which the First Commercial Sale occurs (pro-rated by month)

             (ii) First calendar year after First Commercial Sale $ 500,000;

             (iii)  Second calendar year $ 1,000,000;

             (iii) Third calendar year and each calendar year thereafter $ 2,000,000.

    

    

    
      	
              (i)

            	
              [deleted]

            

    

    

    

    Licensed Products and Licensed Services will bear the highest applicable royalty rate under this Section 3.1.  Only one royalty rate will apply to each Licensed Product and Licensed Service.

    

    

    
      
        	3.2	
                Patent Costs.

              

      

    

    

    

    
      	
              (a)

            	
              [Deleted]

            

    

    
      	
              (b)

            	
              Ongoing Patent Costs. Licensee shall reimburse Dartmouth for all Patent Costs incurred by Dartmouth after the Effective Date within thirty (30) days following the date an invoice is sent from Dartmouth
                to Licensee in respect of such Patent Costs after Dartmouth notifies Licensee that the invoice is in order.  Failure to timely pay Patent Costs is a breach of this Agreement.

            

    

    

    

    
      
        	3.3	
                Due Diligence.

              

      

    

    

    

    
      	
              (a)

            	
              Licensee will, either directly or through its Affiliate(s) or Sublicensee(s):

            

    

    

    

    
      	
              (i)

            	
              diligently proceed with the development, manufacture and sale of Licensed Products and Licensed Services;

            

    

    
      	
              (ii)

            	
              shall submit a business plan prior to the Effective Date of the agreement.

            

    

    
       

      

      
        6

        
          

      

      	
              (iii)

            	
              Within sixty (60) days after the end of each calendar year, Licensee shall furnish Dartmouth with a written report on the progress of its efforts during the immediately preceding calendar year to develop and
                commercialize Licensed Products. The report shall also contain a discussion of intended efforts and sales projections for the year in which the report is submitted.

            

    

    
      	
              (iv)

            	
              shall fund no less than One Million Dollars ($ 1,000,000) of research toward the development of Licensed Products in each calendar year (pro-rated for partial years) beginning in 2019 and ending with the
                first commercial sale of a Licensed Product

            

    

    
      	
              (v)

            	
              shall file an IND/BLA (or equivalent) with the FDA or a comparable European regulatory agency for Licensed Product on or before the four-year (4) anniversary of the Effective Date.

            

    

    
      	
              (vi)

            	
              shall make a first commercial sale of a Licensed Product on or before the twelve-year (12) anniversary of the Effective Date.

            

    

    
      	
              (vii)

            	
              shall achieve annual minimum Net Sales in the amount of Fifty Million Dollars ($50,000,000) by 2033.

            

    

    

    

    
      	
              (b)

            	
              If Licensee materially fails to perform any of its obligations specified in Section 3.3(a), then Dartmouth shall have the right and option, at its sole discretion, to either terminate this Agreement or change Licensee’s exclusive license
                to a nonexclusive license.  Upon Dartmouth’s modification of the license grant to nonexclusive, all other terms and conditions of this Agreement will remain the same.

            

    

    

    

    3.4 Payment.

    

    

    
      
        	

              	 (a)	
                Fees and Royalty Payments.

              

      

    

    

    

    (i) Royalties accrue when revenue is recognized under GAAP by Licensee, any Sublicensee
      or Affiliate for a Licensed Product or Licensed Service.

    

    

    (ii) Licensee shall pay all fees and royalties specified under Section 3.1 within 60 days of the end of each
      calendar quarter in which they accrue. Each such payment will be accompanied by a Royalty Report for that Royalty Reporting Period as set forth in Section 4.1(b) and will be made in accordance with this Section 3.4.

    

    

    (iii)           All payments shall be without deduction of exchange, collection or other charges, and, specifically, without deduction of withholding or similar taxes or other government imposed fees
      or taxes, except as permitted in the definition of Net Sales.

    

    

    (iv)             [deleted]

    

    

    (v) [deleted]

    

    

    
      
        	

              	(b)	
                Instructions.  All fees, reimbursements, royalties, and other payments due to Dartmouth under this Agreement shall be paid in United States dollars and all checks shall be made payable to “Trustees of Dartmouth College,”
                  referencing Dartmouth’s taxpayer identification number, 02-0222111, and sent to Dartmouth according to Section 12.5 (Notices), OR by electronic transfer as follows:

              

      

    

    

    

    Wire to:

    
      7

      
        

    

    
      	
               

            	
              Bank Name: Bank of America

              Bank Address: 63 South Main Street

              Hanover, NH  03755

            	
               

            
	
               

            	
               

            	
               

            
	
               

            	
              Name on Account: Dartmouth College

              Beneficiary on Account: Trustees of Dartmouth College

               Account Number: 

              

               

              

               WIRE Routing Number: 0260-0959-3

              or Swift Code (if foreign): BOFAUS3N

              Reference: Nila Bhakuni, Technology Transfer Office,   Case # 2017-1061, Agreement # A-2018- 456.

               

               

            	
               

            

    

    

    

    

    

    

    

    When Net Sales and Sublicense Consideration are received in currencies other than United States dollars, Licensee shall first determine the payment amount in the currency of the country in which the
      Sale was made and then convert the amount into equivalent United States funds using the exchange rate: (i) actually used on the date of exchange; or (ii) quoted in the Wall Street Journal on the last business day of the applicable Royalty Reporting
      Period.

    

    

    
      
        	

              	(c)	
                Late Payments. In the event any payment due under this Agreement is not received by Dartmouth when due, Licensee shall pay to Dartmouth interest charges at the lower of (i) a rate of ten percent (10%) per year or (ii) the
                  maximum amount of interest allowable by applicable law. Such interest shall be calculated from the date payment was due until actually received by Dartmouth.  Payment and acceptance, in whole or in part, of interest and the overdue
                  payment shall not preclude Dartmouth from exercising any other rights it may have as a consequence of the lateness of any payment.

              

      

    

    

    

    
      
        	

              	(d)	
                Licensee shall pay all taxes and fees which may be assessed or levied on, or on account of, the Licensed Products and Licensed Services made, used, Sold,  disposed of, or performed hereunder and all taxes levied on or on account of the
                  amounts (including royalty payments or bank fees) payable to, or for the account of, Dartmouth under this Agreement.  Except as specified in the definition of Net Sales, these taxes and fees are not deductible from any payments to
                  Dartmouth.

              

      

    

    

    

    ARTICLE 4. REPORTS AND RECORDS

    

    

    
      
        	4.1	
                Reports.

              

      

    

    

    

    
      	
              (a)

            	
              Progress Reports.  Beginning on the earlier of the first January 1 or July 1 following the Effective Date, and on each January 1 and July 1 thereafter through the date of First Commercial Sale in the
                United States (each, a “Progress Reporting Period”), Licensee will provide Dartmouth with a written report describing Licensee’s (and any Sublicensee’s and Affiliate’s) activities for the preceding six (6) months including: a
                statement of completion or progress for all due diligence obligations under Section 3.3(a) above, a summary of work completed, summary of work in progress, current schedule of anticipated events or milestones, market plans for introduction
                of Licensed Products and Licensed Services, summary of resources (dollar value) spent in the Progress Reporting Period, and the occurrence of each First Commercial Sale for each Licensed Product and Licensed Service in each country of the
                Territory that occurred during such six (6) month period. Each semi-annual report is due within sixty (60) days of the end of the applicable Progress Reporting Period.

            

    

    

    

    
      8

      
        

    

    
      	
              (b)

            	
              Royalty Reports. After the First Commercial Sale of a Licensed Product or Licensed Service anywhere in the world, Licensee shall submit to Dartmouth quarterly royalty reports within 60 days of the end
                of each calendar quarter. Each royalty report will accompany all payments due for such calendar quarter and shall report Licensee’s (and each Sublicensee’s and Affiliate’s) activities for such calendar quarter (each calendar quarter, a “Royalty

                  Reporting Period”) as follows:

            

    

    

    

    
      	
              (i)

            	
              the gross revenue and deductions to calculate Net Sales during such Royalty Reporting Period and the earned royalties, calculated in US dollars, payable with respect thereto;

            

    

    
      	
              (ii)

            	
              a description of each separately priced Licensed Product and Licensed Service and the number of each Licensed Product sold and gross revenue received for each type of Licensed Services performed during such
                Royalty Reporting Period;

            

    

    
      	
              (iii)

            	
              All Sublicense Consideration payable during such Royalty Reporting Period broken down by type of consideration (such as annual fee, milestone payment, etc.), calculated in US dollars, including calculation of
                Dartmouth’s share of such Sublicense Consideration;

            

    

    
      	
              (iv)

            	
              the method used to calculate all royalties and payments;

            

    

    
      	
              (v)

            	
              a description of any non-cash consideration received and statement of its Fair Market Value; and

            

    

    
      	
              (vi)

            	
              the exchange rates used, if any, in accordance with the terms of Section 3.4(b) above.

            

    

    

    

    If no Sales of Licensed Products or Licensed Services have been made or no Sublicense Consideration is payable during any applicable Royalty Reporting Period, Licensee shall so report.

    

    

    
      
        	4.2	
                Records & Audits.

              

      

    

    

    

    
      
        	

              	(a)	
                Licensee shall keep, and shall require its Affiliates and Sublicensees to keep, accurate and correct records of all Licensed Products manufactured, used, Sold, and imported all Licensed Services performed, and all Sublicense
                  Consideration received under this Agreement, which records will contain sufficient information to permit Dartmouth and its representatives to confirm the accuracy of all payments and reports delivered to Dartmouth and compliance in all
                  other respects with this Agreement. Such records shall be retained by Licensee, Affiliates, and Sublicensees for at least five (5) years following the calendar year to which they pertain.

              

      

    

    

    

    
      
        	

              	(b)	
                Upon Dartmouth’s written request, all records will be made available for inspection by Dartmouth or its designated representatives during normal business hours at Dartmouth’s expense. In the event that any such inspection shows an
                  underpayment of ten percent (10%) or greater, then Licensee shall pay the full cost of the audit as well as the full amount that would have been payable to Dartmouth had the Licensee correctly paid, plus the interest charge for overdue
                  payments as set forth in Section 3.4. Such interest shall be calculated from the date the correct payment was due to Dartmouth up to the date when such payment is actually made by Licensee. All such payments will be due and payable within
                  thirty (30) days of receiving notice from Dartmouth.

              

      

    

    

    

    
      9

      
        

    

    ARTICLE 5. PATENT MATTERS

    

    

    
      	
              5.1

            	
              Patent Prosecution and Maintenance of Dartmouth Patents.

            

    

    

    

    
      	
              (a)

            	
              Provided that Licensee is in compliance with its payment obligations under this Agreement, Dartmouth will prosecute and maintain the Dartmouth Patents.  Dartmouth will provide or will request its patent
                counsel to provide Licensee with copies of all relevant documentation relating to the prosecution of the Dartmouth Patents and Licensee will keep this documentation as Dartmouth’s Confidential Information. Counsel will take instructions
                only from Dartmouth.

            

    

    

    

    
      	
              (b)

            	
              Dartmouth shall work with Licensee to consider amending any patent application included in the Dartmouth Patents to include claims reasonably requested by Licensee to protect the products contemplated to be
                sold as Licensed Products or Licensed Services under this Agreement.

            

    

    

    

    
      	
              (c)

            	
              Licensee may request the right to terminate its reimbursement obligations with respect to any patent application or patent included in the Dartmouth Patents upon at least three (3) months’ written notice to
                Dartmouth. Dartmouth will reasonably consider Licensee’s request and will grant such request if Licensee can reasonably support that it is not commercially reasonable for Licensee to continue to maintain such patents. If Dartmouth agrees to
                Licensee’s request, Dartmouth will use reasonable efforts to curtail further Patent Costs. Dartmouth, in its sole discretion and at its sole expense, may continue prosecution and maintenance of such application or patent, and Licensee shall
                have no further license or rights with respect thereto.  Dartmouth is not obligated to file, prosecute, or maintain Dartmouth Patents outside of the Territory at any time or to file, prosecute, or maintain Dartmouth Patents to which
                Licensee has terminated its license under this Agreement.

            

    

    

    

    
      	
              5.2

            	
              Patent Infringement.

            

    

    

    

    
      	
              (a)

            	
              If Licensee learns of any substantial infringement of a Dartmouth Patent, Licensee will inform Dartmouth and provide Dartmouth with reasonable evidence of the infringement. Neither party shall notify a third
                party of the infringement of a Dartmouth Patent without the consent of the other party.

            

    

    

    

    
      	
              (b)

            	
              Solely for so long as Licensee remains the exclusive licensee of the Dartmouth Patents in Field of Use in the Territory, Licensee shall have the right, but not the obligation, to the extent permitted by law,
                to prosecute in its own name an infringement of the Dartmouth Patents in the Field of Use in the Territory, subject to the terms and conditions of this Section 5.2 and at Licensee’s own expense.  Before Licensee commences an action,
                Licensee will consult with Dartmouth and give careful consideration to the views of Dartmouth and to potential effects on the public interest.  Licensee will not settle or compromise any infringement action without Dartmouth’s advance
                written consent.  If required by law for Licensee to have standing to bring an infringement action, Dartmouth will permit Licensee to join Dartmouth as a co-plaintiff, provided that Licensee shall hold Dartmouth harmless from, and indemnify
                Dartmouth against, all costs, expenses, and liabilities that Dartmouth incurs in connection with such action

            

    

    

    

    
      	
              (c)

            	
              Nothing in this Section 5.2 will prohibit Dartmouth from, or in any way waive Dartmouth’s right, to intervene and join Licensee in any claim or suit for infringement of Dartmouth Patents.  If Dartmouth elects
                to join as a party to any action, Dartmouth shall jointly control such action with Licensee.

            

    

    

    

    
      10

      
        

    

    
      	
              (d)

            	
              Licensee shall reimburse Dartmouth for all costs and fees Dartmouth incurs, including reasonable attorneys’ fees, as part of any action brought by Licensee under this Section 5.2, regardless of whether
                Dartmouth becomes a co-plaintiff as set forth in this Section 5.2 and regardless of whether Licensee receives any financial recovery.  Financial recoveries from any action controlled by Licensee or from any action for which Dartmouth is a
                co-plaintiff with Licensee, including from infringement and enforcement actions, settlements and dispute resolutions of any nature, will: (i) first, be applied to reimburse Licensee and its outside counsel fees and court costs (whether
                incurred by Licensee or incurred by Dartmouth and reimbursed by Licensee); (ii) second, be applied to  reimburse Dartmouth for any of its outside counsel fees and court costs not previously reimbursed by Licensee; and (iii) third, be shared
                equally by Licensee and Dartmouth.

            

    

    

    

    
      	
              (e)

            	
              If Licensee fails to take any action against an infringer or fails to diligently prosecute an infringement, Dartmouth shall have the right, but not the obligation, take action or to prosecute such
                infringement at its own expense.  In such event, all financial recoveries will be entirely retained by Dartmouth.

            

    

    

    

    
      	
              (f)

            	
              Each party, at the request and expense of the other party, shall reasonably cooperate to enforce any of the Dartmouth Patents in any action under this Section 5.2.   This provision shall not be construed to
                require either party to undertake any activities, including legal discovery, at the request of any third party except as may be required by lawful process of a court of competent jurisdiction.

            

    

    

    

    
      	
              (g)

            	
              If a declaratory judgment action is brought naming Licensee or Dartmouth as a defendant and alleging invalidity or unenforceability of any of the Dartmouth Patents, whether brought as an independently filed
                declaratory judgment action or as a counterclaim in any infringement-related litigation, Dartmouth has the first right, but not the obligation, to elect to take over the sole defense of the declaratory judgment action or the declaratory
                judgment counterclaim portion of the other litigation, at its own expense.  Each party will promptly notify the other party hereto of its receipt of any such allegations.  Licensee will cooperate fully with Dartmouth in connection with any
                such defense.  Nothing in this Section 5.2 shall be construed as obligating Dartmouth to resolve any dispute or to settle or defend any claim, suit or proceeding arising out of Licensee’s manufacture, use, Sale, or import of Licensed
                Products. 

            

    

    

    

    
      	
              5.3

            	
              Non-assert.  Licensee and Dartmouth agree that Licensee shall not assert Dartmouth IP infringement claims against not-for-profit research institutions for activities related to research, teaching,
                education, or academic purposes.

            

    

    

    

    
      	
              5.4

            	
              Patent Marking. Licensee shall mark all Licensed Products made, used or sold under the terms of this
                Agreement, or their containers, in accordance with the applicable patent marking laws.

            

    

    

    

    ARTICLE 6. GOVERNMENTAL MATTERS

    

    

    
      	
              6.1

            	
              Governmental Approval or Registration. If this Agreement or any associated transaction is required by the law of any nation to be either approved or registered with any governmental agency, Licensee
                hereby assumes all legal obligations to do so. Licensee shall notify Dartmouth if it becomes aware that this Agreement is subject to a United States or foreign government reporting or approval requirement. Licensee shall make all necessary
                filings and pay all costs including fees, penalties, and all other out-of-pocket costs associated with such reporting or approval process.

            

    

    

    

    
      11

      
        

    

    
      	
              6.2

            	
              Compliance.  Licensee shall have the sole obligation for compliance with, and shall ensure that any Affiliates and Sublicensees comply with, all government statutes and regulations that relate to
                Licensed Products and Licensed Services, including, but not limited to, those of the Food and Drug Administration, the Department of Commerce and the Office of the Treasury, and any applicable laws and regulations of any other country in
                the Territory.  Licensee agrees that it shall be solely responsible for obtaining any necessary licenses to export, re-export, or import Licensed Products or to provide Licensed Services and that it will indemnify, defend, and hold
                Dartmouth harmless (in accordance with Section 9.2) for the consequences of any violation by Licensee, its Affiliates, or Sublicensees of any such laws or regulations.

            

    

    

    

    
      	
              6.3

            	
              Preference for United States Industry. For any Licensed Products that are within an exclusive license of the Dartmouth Patents and that are sold in the United States, to the
                extent required by law, those Licensed Products shall be manufactured substantially in the United States.

            

    

    

    

    ARTICLE 7. TERMINATION

    

    

    
      	
              7.1

            	
              Termination by Dartmouth.

            

    

    

    

    
      	
              (a)

            	
              If Licensee materially breaches this Agreement, then Dartmouth may give written notice of default (“Notice of Default”) to Licensee. If Licensee fails to cure the default within thirty (30) days of the
                date of the Notice of Default, Dartmouth may terminate this Agreement immediately upon a second written notice (“Notice of Termination”) to Licensee. If a Notice of Termination is sent to Licensee, this Agreement will automatically
                terminate on the effective date set forth in the Notice of Termination. Termination will not relieve Licensee of its obligation to pay any amounts accrued and owing as of the effective date of termination and shall not impair any accrued
                right of Dartmouth.

            

    

    

    

    
      	
              (b)

            	
              If Licensee becomes Insolvent, all duties of Dartmouth and all rights (but not duties) of Licensee under this Agreement shall immediately terminate without the necessity of any action being taken by Dartmouth
                or by Licensee.

            

    

    

    

    
      	
              (c)

            	
              Dartmouth has the right to terminate this Agreement pursuant to Section 3.3(b) and Article 8.

            

    

    

    

    
      	
              7.2

            	
              Termination by Licensee.

            

    

    

    

    
      	
              (a)

            	
              Licensee has the right at any time and for any reason to terminate this Agreement upon 6 months written notice to Dartmouth. Licensee’s written notice will state Licensee’s reason for terminating this
                Agreement.

            

    

    

    

    
      	
              (b)

            	
              Any termination under Section 7.2(a) will not relieve Licensee of any obligation or liability accrued under this Agreement prior to the effective date of termination, rescind any payment made to Dartmouth, or
                rescind any action by Licensee prior to the time termination becomes effective. Termination will not affect in any manner any rights of Dartmouth arising under this Agreement prior to termination.

            

    

    

    

    
      	
              7.3

            	
              Survival on Termination. The following Sections and Articles will survive any expiration or termination of this Agreement:

            

    

    

    

    
      12

      
        

    

    
      	
              i.

            	
              Article 1 (DEFINITIONS)

            

    

    
      	
              ii.

            	
              Section 2.2(b) (Sublicense)

            

    

    
      	
              iii.

            	
              Article 3 (CONSIDERATION) to the extent amounts are due and payable and not yet paid

            

    

    
      	
              iv.

            	
              Article 4 (REPORTS AND RECORDS);

            

    

    
      	
              v.

            	
              Section 6.2 (Compliance)

            

    

    
      	
              vi.

            	
              Article 7 (TERMINATION);

            

    

    
      	
              vii.

            	
              Article 9 (LIMITATION OF LIABILITY, INDEMNIFICATION AND INSURANCE);

            

    

    
      	
              viii.

            	
              Article 10 (USE OF NAMES AND TRADEMARKS);

            

    

    
      	
              ix.

            	
              Article 11 (CONFIDENTIALITY) (in accordance with its terms); and

            

    

    
      	
              x.

            	
              Article 12 (MISCELLANEOUS).

            

    

    

    

    
      	
              7.4

            	
              Disposition of Licensed Products on Hand. Upon termination of this Agreement for any reason other than Licensee’s breach, Licensee may dispose of all previously made or partially made Licensed Product
                within a period of one hundred and twenty (120) days of the effective date of such termination provided that the Sale of such Licensed Product by Licensee, its Sublicensees, or Affiliates shall be subject to the terms of this Agreement,
                including but not limited to the rendering of reports and payment of royalties required under this Agreement.

            

    

    

    

    
      	
              7.5

            	
              Grant Back to Dartmouth. If Licensee files any patent applications or has patents issued based on work made possible by the exercise of this Agreement prior to termination, or has created any
                Derivatives (“Enabled Dartmouth IP”) upon any termination of this Agreement for any reason and by either party prior to the natural expiration of the Term, Licensee shall notify Dartmouth of the Enabled Dartmouth IP and shall further
                grant to Dartmouth, and shall grant to Dartmouth as of the effective date of termination of this Agreement, a fully paid- up, irrevocable, non-exclusive license to make, use, practice, reproduce and modify the Enabled Dartmouth IP with the
                right to grant sublicenses to third parties

            

    

    

    

    ARTICLE 8. CHALLENGES TO DARTMOUTH PATENTS

    

    

    
      	
              8.1

            	
              Licensee Challenges to Dartmouth Patents.  If, during the Term, Licensee, a Sublicensee or an Affiliate institutes or actively participates as an adverse party in, or otherwise provides material
                support to, any action, suit or other proceeding in the Territory to invalidate or limit the scope of any claim of any Dartmouth Patent or to obtain a ruling that any Dartmouth Patent claim is unenforceable or not patentable (“Licensed
                  Patent Challenge”), Dartmouth has the right to immediately terminate this Agreement with notice to Licensee and with no opportunity for Licensee to cure.

            

    

    

    

    
      	
              8.2

            	
              Sublicensee Challenges to Dartmouth Patents. Licensee shall include provisions in all Sublicenses providing that if the Sublicensee brings or participates in a Licensed Patent Challenge, the Sublicense
                will immediately terminate effective as of the date on which the Licensed Patent Challenge is filed against Dartmouth. The failure to include such automatic termination provision in a Sublicense agreement hereunder shall constitute a
                material breach of this Agreement. If a Sublicensee undertakes a Licensed Patent Challenge, Licensee will immediately terminate the applicable Sublicense. Any failure to terminate the Sublicense agreement as required by this Section 8.2
                will constitute a material breach of this Agreement.

            

    

    

    

    
      	
              8.3

            	
              Royalty After Challenge. If Licensee, Sublicensee or any Affiliate institutes or participates in a Licensed Patent Challenge, Licensee agrees that, effective as of the date on which the Licensed Patent
                Challenge is filed, the then current earned royalty rate under Section 3.1 for Licensed Products covered by Dartmouth Patents will automatically triple to an amount that is three times the then current earned royalty rate.

            

    

    

    

    
      13

      
        

    

    
      	
              8.4

            	
              For the avoidance of doubt, it is not a violation of Sections 8.1 or 8.2 for Licensee, any Sublicensee or any Affiliate to respond to a valid order of a court or other governmental body having jurisdiction,
                provided that (to the extent practicable) Licensee provides Dartmouth with reasonable prior written notice of such an order and makes a reasonable effort to obtain, or to assist Dartmouth in obtaining, a protective order preventing or
                limiting the disclosure and/or requiring that the information so disclosed be used only for the purposes for which the law or regulation required, or for which the order was issued.

            

    

    

    

    ARTICLE 9. LIMITATION OF LIABILITY, INDEMNIFICATION AND INSURANCE

    

    

    
      	
              9.1

            	
              Limitation of Liability.

            

    

    

    

    
      	
              (a)

            	
              THE LICENSES GRANTED HEREIN ARE PROVIDED “AS IS” AND WITHOUT WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, VALIDITY OF ANY OF THE DARTMOUTH PATENT CLAIMS, WHETHER ISSUED OR
                PENDING, AND THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, OR ANY OTHER WARRANTY, EXPRESS OR IMPLIED. DARTMOUTH MAKES NO REPRESENTATION OR WARRANTY THAT THE EXERCISE OF ANY RIGHTS TO ANY LICENSED PRODUCT, LICENSED
                SERVICE, LICENSED WORK OR ANY DARTMOUTH IP WILL NOT INFRINGE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF DARTMOUTH OR OF ANY THIRD PARTY.

            

    

    

    

    
      	
              (b)

            	
              IN NO EVENT SHALL DARTMOUTH OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES, STUDENTS AND AGENTS BE LIABLE TO LICENSEE, ANY SUBLICENSEE AND ANY LICENSEE AFFILIATE
                FOR ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND ARISING IN ANY WAY OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE LICENSE RIGHTS GRANTED HEREUNDER, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, INCLUDING WITHOUT
                LIMITATION ECONOMIC DAMAGES OR INJURY TO PROPERTY OR LOST PROFITS, REGARDLESS OF WHETHER DARTMOUTH SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY OF THE FOREGOING.

            

    

    

    

    
      	
              (c)

            	
              Nothing in this Agreement shall be construed as:

            

    

    

    

    
      	
              (i)

            	
              a warranty or representation by Dartmouth as to the validity or scope of any Dartmouth IP;

            

    

    

    

    
      	
              (ii)

            	
              a warranty or representation that anything made, used, sold or otherwise disposed of under any license granted in this Agreement is or shall be free from infringement of patents or of any intellectual
                property of Dartmouth or of any third parties;

            

    

    

    

    
      	
              (iii)

            	
              an obligation to bring or prosecute actions or suits against third parties for patent infringement or infringement of any other intellectual property rights;

            

    

    

    

    
      14

      
        

    

    
      	
              (iv)

            	
              conferring by implication, estoppel or otherwise any license or rights under any patents or any other intellectual property of Dartmouth other than Dartmouth IP as defined in this Agreement;

            

    

    

    

    
      	
              (v)

            	
              an obligation to furnish any know-how not provided in Dartmouth Know-How; or

            

    

    

    

    
      	
              (vi)

            	
              an obligation to update Dartmouth Know-How.

            

    

    

    

    
      	
              9.2

            	
              Indemnification.

            

    

    

    

    
      	
              (a)

            	
              Licensee and its Sublicensees and  Affiliates shall indemnify, hold harmless and defend Dartmouth, its trustees, officers, employees, students, and agents; and the Inventors/Authors/Creators of the Dartmouth
                IP and their employers (the “Indemnitees”) against any liability, damage, judgement, loss or expense (including reasonable attorney’s fees and expenses of litigation) incurred by or imposed upon the Indemnitees or any one of them in
                connection with any claims, suits, actions, or demands brought by a third party under any theory of liability (including without limitation, actions in the form of tort, warranty, or strict liability, or violation of any law, and regardless
                of whether such action has any factual basis) arising out of or relating to (i) any exercise of any right or license granted or provided to Licensee and/or its Sublicensees and/or  Affiliates, (ii) any failure to perform any obligation of
                Licensee and/or any Sublicensee and/or Affiliate under this Agreement and/or under any Sublicense, or (iii) any Sale of Licensed Product(s) or Licensed Service.

            

    

    

    

    
      	
              (b)

            	
              Procedures.  Licensee agrees, at its own expense, to provide attorneys reasonably acceptable to Dartmouth to defend against any actions brought or filed against any Indemnitee, whether or not such
                actions are rightfully brought; provided, however, that any Indemnitee shall have the right to retain its own counsel, at the expense of Licensee, if representation of such Indemnitee by counsel retained by Licensee would be inappropriate
                because of actual or potential conflicts of interests of such Indemnitee and any other party represented by such counsel.  Dartmouth will use reasonable efforts to notify Licensee in writing within thirty (30) days of the assertion by a
                third party of any claim that is subject to indemnification under this Section 9.2.  Failure to notify Licensee will not waive any of Licensee’s indemnity obligations with respect to such claim except to the extent such failure materially
                prejudices the ability of Licensee to defend such claim.  The parties will cooperate with each other in the defense and settlement of any such claim, at Licensee’s sole expense.  Licensee agrees to keep Dartmouth informed of the progress in
                the defense and disposition of such indemnified claim and to consult with Dartmouth prior to any proposed settlement.  In the event Licensee does not accept the defense of any matter, Dartmouth will have the right to defend such matter and
                all of Dartmouth’s costs, expenses, liabilities and damages (including any amounts payable in settlement) will be promptly reimbursed by Licensee.  Licensee will not settle any matter under this Section 9.2 without Dartmouth’s prior written
                consent, which consent will not be unreasonably withheld, conditioned or delayed.

            

    

    

    

    
      	
              9.3

            	
              Insurance.

            

    

    

    

    
      	
              (a)

            	
              Licensee, at its sole cost and expense, shall insure its activities under this Agreement and obtain, keep in force and maintain insurance or an equivalent program of self-insurance as follows:

            

    

    

    

    
      15

      
        

    

    
      	
              (i)

            	
              comprehensive or commercial general liability insurance (contractual liability included) with limits of at least:

            

    

    

    

    
      	
              (A)

            	
              each occurrence, one million dollars (US$1,000,000);

            

    

    
      	
              (B)

            	
              products/completed operations aggregate, five million dollars (US$5,000,000);

            

    

    
      	
              (C)

            	
              personal and advertising injury, one million dollars (US$1,000,000); and

            

    

    
      	
              (D)

            	
              general aggregate (commercial form only), five million dollars (US$5,000,000).

            

    

    

    

    The coverage and limits referred to above will not in any way limit the liability of Licensee, and all rights of subrogation will be waived against Dartmouth and its insurers.

    

    

    
      	
              (b)

            	
              Licensee shall, within ninety (90) days of the Effective Date, furnish Dartmouth with certificates of insurance showing compliance with all requirements. The policy or policies of insurance specified herein
                shall be issued by an insurance carrier with an A.M. Best rating of “A” or better and shall name Dartmouth as an additional insured with respect to Licensee’s performance of this Agreement.  Such certificates shall: (i) provide for thirty
                (30) day advance written notice to Dartmouth of any modification; and (ii) include a provision that the coverage shall be primary and shall not participate with nor shall be excess over any valid and collectable insurance or program of
                self-insurance carried or maintained by Dartmouth.

            

    

    

    

    
      	
              (c)

            	
              Dartmouth reserves the right to require additional policies of insurance and/or increased coverage limits where appropriate and reasonable in light of Licensee’s business operations and availability of
                coverage.

            

    

    

    

    ARTICLE 10. USE OF NAMES AND TRADEMARKS

    

    

    
      	
              10.1

            	
              Nothing contained in this Agreement confers any right to use in advertising, publicity, or other promotional activities any name, trade name, trademark, or other designation of either party
                hereto (including contraction, abbreviation or simulation of any of the foregoing). Unless required by law, the use by Licensee of the name, “Dartmouth College” is prohibited, without the express written consent of Dartmouth.

            

    

    

    

    ARTICLE 11. CONFIDENTIALITY

    

    

    
      	
              11.1

            	
              Confidentiality Obligations.

            

    

    

    

    
      	
              (a)

            	
              “Confidential Information” means any information disclosed by a party (the “Disclosing Party”) to the other party (the “Receiving Party”) in connection with this Agreement, which (i) if
                in tangible form, is marked as proprietary or confidential, or (ii) if in oral or visual form, is identified at the time of disclosure as proprietary or confidential.  For the avoidance of doubt, the Dartmouth Know-How shall constitute
                Confidential Information of Dartmouth.  The existence of this Agreement and identification of the parties hereto shall not constitute Confidential Information of either party.

            

    

    

    

    
      16

      
        

    

    
      	
              (b)

            	
              Receiving Party shall treat the Confidential Information of Disclosing Party as confidential and proprietary, including observing with respect thereto the same safeguards and protections that Receiving Party
                observes with respect to its own confidential or proprietary information (but in no event  less  than a commercially reasonable degree of care) and shall not (i) use the Confidential Information except as necessary for the performance of
                its obligations under this Agreement; or (ii)  disclose Confidential Information of Disclosing Party to third persons or entities without the prior written consent of Disclosing Party except: (u) to its employees and permitted
                subcontractors as necessary in connection with the performance of its obligations under this Agreement, provided that Receiving Party has informed such persons or entities of the requirements of this Section 11.1 and instructs them that
                they are obligated comply with these requirements; (v) when required to be disclosed by court rule or governmental law or regulation, provided that (unless prohibited by law) Disclosing Party gives Receiving Party prompt notice of any such
                requirement and cooperates with Receiving Party in attempting to limit such disclosure; (w) when obtained by Receiving  Party from a third party who is not under a confidentiality obligation to Disclosing Party; (x) when already in the
                possession of Receiving Party prior to receipt from Disclosing Party, without any obligation of confidentiality; (y) when such Confidential Information is or becomes in the public domain through no fault of Receiving Party; or (z) when
                necessary to enforce Receiving Party’s rights hereunder.

            

    

    

    

    
      	
              11.2

            	
              Injunctive Relief.  The parties acknowledge and agree that a breach of Section 11.1 by Receiving Party may cause irreparable damage to Disclosing Party. Accordingly, the parties
                agree that in the event of any breach by Receiving Party of Section 11.1, in addition to any other remedy that may be available at law or in equity, Disclosing Party may seek injunctive relief without the requirement to post any bond or
                security and without the necessity of having to establish the failure of legal remedies.

            

    

    

    

    ARTICLE 12. MISCELLANEOUS

    

    

    
      	
              12.1

            	
              Governing Law; Venue and Consent to Jurisdiction.  This Agreement, and all disputes arising in connection with this Agreement and the subject matter herein, will be governed by and
                construed in accordance with the laws of the State of New Hampshire, without giving effect to its conflict of laws principles, except that questions affecting the construction and effect of any patent shall be determined by the law of the
                country in which the patent shall have been granted. Licensee agrees that it shall not bring any suit against Dartmouth, its trustees, officers, employees or agents with respect to this Agreement in any court other than a court of the State
                of New Hampshire in Grafton County or the United States Federal District Court for the State of New Hampshire in Concord, NH. Licensee consents to the jurisdiction of such courts in the event that Dartmouth shall bring any suit against
                Licensee with respect to this Agreement and Licensee expressly waives all claims and defenses of Forum Non Conveniens or inappropriate venue.

            

    

    

    

    
      	
              12.2

            	
              Attorneys’ Fees.  In the event of litigation between the Parties arising from or related to this Agreement and any licenses granted hereunder, the prevailing party shall be entitled
                to recovery of all reasonable costs and reasonable attorneys’ fees.

            

    

    

    

    
      	
              12.3

            	
              Dispute Resolution.  If any dispute or disagreement arises between the Parties, then, prior to initiating any litigation or formal dispute resolution, they will follow the following
                procedures in an attempt to resolve the dispute or disagreement:

            

    

    

    

    
      
        	

              	(a)	
                The Party claiming that such a dispute exists will give notice in writing (“Notice of Dispute”) to the other party of the nature of the dispute.

              

      

    

    

    

    
      
        	

              	(b)	
                Within fourteen (14) days of receipt of a Notice of Dispute, the Director of the Technology Transfer Office and the Chief Executive Officer of Licensee will meet in person or by teleconference and exchange written summaries reflecting,
                  in reasonable detail, the nature and extent of the dispute, and at this meeting they will use their reasonable endeavors to resolve the dispute.

              

      

    

    

    

    
      17

      
        

    

    
      
        	

              	(c)	
                If the persons referred to in Section 12.3(b) are unable to resolve the dispute during the meeting described in Section 12.3(b) or if for any reason such meeting does not take place within the period specified in Section 12.3(b), then
                  the dispute will be referred to the Associate Provost, Office of Entrepreneurship and Technology Transfer and the Chief Executive Officer of Licensee, who will meet at a mutually agreed-upon time and location for the purpose of resolving
                  such dispute.

              

      

    

    

    

    
      
        	

              	(d)	
                [deleted]

              

      

    

    

    

    
      
        	

              	(e)	
                [deleted]

              

      

    

    

    

    
      
        	

              	(f)	
                Nothing in this Section 12.3 shall limit the right of a party to seek injunctive or other equitable relief from a court having jurisdiction with respect to any actual or threatened breach of this Agreement.

              

      

    

    

    

    
      	
              12.4

            	
              Assignment.  Licensee shall neither assign nor transfer any rights or obligations under this Agreement to any entity other than an Affiliate without prior written approval from
                Dartmouth.

            

    

    

    

    
      	
              12.5

            	
              Notices.  All notices or other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been delivered to a party upon: (i) personal
                delivery to that party; (ii) if simultaneously mailed as provided herein, upon electronic mail transmission to the electronic mailbox provided by the party for such purposes; (iii) upon deposit for overnight delivery with a bonded courier
                holding itself out to the public as providing such services, with charges prepaid; or (iv) four (4) business days following deposit with the United States Postal Service, postage prepaid, and in any case addressed to the party’s address set
                forth below, or to any other address that the party provides by notice, in accordance with this Section to the other party:

            

    

    

    

    	 	
            DARTMOUTH:

          	 	
            LICENSEE:

          
	 	
            ATTN:  Nila Bhakuni, Director

          	 	
            ATTN: Jonah Meer

          
	 	
            Dartmouth College Technology Transfer Office

          	 	
            CEO, Qrons Inc.

          
	 	
            11 Rope Ferry Road #6210

            Hanover, NH 03755

            Phone: 603-646-3027

            Email:technology.transfer@dartmouth.edu

          	 	
            50 Battery Place, #7T

            New York, NY 10280

            Phone: 212-945-2080

            Email: jmeer@qrons.com

          

    

    

    
      18

      
        

    

    
      	
              12.6

            	
              Entire Agreement; Order of Precedence. This Agreement, including all exhibits hereto, constitutes the entire agreement of the Parties, and supersedes any prior and contemporaneous
                agreements, either oral or written, between the Parties hereto with respect to the subject matter hereof. Each Party acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by the other
                Party, or anyone acting on behalf of the other Party, that are not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding.  The terms of this Agreement take precedence
                over the terms of any purchase order or similar document issued by a Party, which may be accepted by the other Party for administrative convenience only.

            

    

    

    

    
      	
              12.7

            	
              Counterparts; Validity of Electronic Copies; Amendments; Waivers.  This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together
                shall constitute one and the same instrument.  An executed copy of this Agreement that is delivered by electronic means shall be sufficient to show execution and delivery thereof.  Except as expressly provided in Section 3.3(b), this
                Agreement may be amended only by a written document signed by authorized representatives of both parties.  No waiver of any provision of this Agreement will be valid or binding unless set forth in writing and signed by the party granting
                the waiver.  No failure by a party to exercise, and no delay by a party in exercising, any right hereunder will operate as a waiver of such right, nor will any single or partial exercise by a party of any right hereunder preclude any future
                exercise of that right, or any other right, by that party.

            

    

    

    

    
      	
              12.8

            	
              [deleted]

            

    

    

    

    
      	
              12.9

            	
              [deleted]

            

    

    

    

    
      	
              12.10

            	
              Language.  The parties agree that they will contract in the English language and that there shall be no requirement to translate this Agreement or any of the documents incorporated
                into this Agreement into any other language.  In the event of any inconsistencies between any translations thereof into another language, the English language version shall govern.

            

    

    

    

    
      	
              12.11

            	
              Construction.  This Agreement is the joint work product of representatives of each party.  Accordingly, in the event of ambiguities in this Agreement, no inference will be drawn
                against either Party, including the Party that drafted this Agreement in its final form.  Except as otherwise specifically stated in this Agreement, “days” means calendar days.  Capitalized terms used in this Agreement shall have the
                meanings ascribed to them in the body of this Agreement or the applicable exhibits or schedules.  Terms other than those defined in this Agreement or the applicable exhibits or schedules shall be given their plain English (or relevant
                alternative language, if in a language other than English) meaning and terms of art having a specialized meaning in the relevant industry shall be construed in accordance with industry standards.  Unless the context otherwise requires,
                words importing the singular include the plural and vice-versa and words importing the masculine include the feminine and neuter and vice-versa.

            

    

    

    

    
      	
              12.12

            	
              Binding Effect; No Third Parties Beneficiaries.  This Agreement shall be binding upon, and inure to the benefit of, the Parties and their respective successors and permitted
                assigns.  Nothing in this Agreement is intended to confer on any person or entity, other than the Parties and their respective successors and permitted assigns, any rights hereunder, except that Dartmouth will be a third party beneficiary
                of each Sublicense.

            

    

    

    

    
      	
              12.13

            	
              Severability.  If any term or condition of this Agreement is determined to be invalid or unenforceable in whole or in part for any reason, this Agreement shall be reformed to be
                valid and enforceable consistent with the intention of the parties as expressed herein to the greatest extent permitted by law.

            

    

    

    

    
      	
              12.14

            	
              Captions.  The captions and headings used in this Agreement are for convenience only and do not limit or amplify the terms and provisions hereof.

            

    

    

    

    [Signature page follows.]

    
      19

      
        

    

    IN WITNESS WHEREOF, both Dartmouth and Licensee have executed this Agreement, in duplicate originals, by their respective and duly authorized officers on the day and year written.

    

    

    
      	 QRONS INC. 

            	 	 	 TRUSTEES OF DARTMOUTH COLLEGE

            	 
	 	 	 	 	 
	
              /s/Jonah Meer 

              

            	 	 	
              /s/Nila Bhakuni

              

            	 
	
              Name

            	 	 	
              Name: Nila Bhakuni

              

            	 
	Title: CEO

            	 	 	Title: Director, Technology Transfer Office

            	 
	
              Date: 9/25/19

            	 	 	
              Date: 9/25/19

              

            	 
	 	 	 	 	 
	 	 	 	/s/Eric Fossum

            	 
	 	 	 	Name: Eric Fosssum

            	 
	 	 	 	Title: Associate Provost

            	 
	 	 	 	Date: 9/25/19

            	 

    

    

    

    

    

    

    

    

    
      20

      
        

    

    Schedule 1

      List of Affiliates

    

    

    

    

    

    

    None, as of the Effective Date

    

    

    

    

    
      21

      
        

    

    

    

    Schedule 2

    

    

    Dartmouth IP

    

    

    

    

    A. Dartmouth Patents:

    Invention # 2017-1061

    IP reference #: 2017-1061-01

    US utility filing 15/814,201, filed November 15, 2017.

    

    

    

    

    B. Dartmouth Copyrights: none

    

    

    

    

    C. Dartmouth Know-How: none

    

    

    

    

    

    

    

    

    

    

    

    

    
      22

      
        

    

    

    

    

    

    Schedule 3

      Prior Agreements

    

    

    No prior agreements.

  

  23

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