Document:

Exhibit 10.1

 

EXECUTION VERSION

 

ASSIGNMENT AGREEMENT

 

This Assignment Agreement
(the “Assignment Agreement”) is dated as of July 7, 2017 (the “Effective Date”) by and among
Immune Pharmaceuticals, Inc., a Delaware corporation (“IMNP”), Immune Pharmaceuticals USA Corp. (“IMNP
USA”; and together with IMNP and each of their respective subsidiaries, “Borrower”), MEF I, L.P. (“Assignee”),
and Hercules Capital, Inc. (f/k/a, Hercules Technology Growth Capital, Inc.), a Maryland corporation (“Hercules”).

 

WHEREAS, Hercules entered
into that certain Loan and Security Agreement with Borrower dated as of July 29, 2015, as amended from time to time (the “Agreement’).
All capitalized terms used but not otherwise defined in this Assignment Agreement shall have the meaning provided in the Agreement;

 

WHEREAS, pursuant to the
Agreement, Hercules loaned a principal amount of Nine Million Five Hundred Thousand Dollars ($9,500,000) to Borrower (the “Original
Loan Amount”);

 

WHEREAS, the Original Loan
Amount is evidenced by the certain Secured Term Promissory Note (the “Note”) that was issued by Borrower to
Hercules;

 

WHEREAS, Hercules desires
to assign the Note and Two Million Nine Hundred Seventy-Four Thousand One Hundred Fifty-Eight and 50/100 Dollars ($2,974,158.50)
of all remaining amounts due under the Agreement and the Note, for an aggregate purchase price of Two Million Nine Hundred Seventy-Four
Thousand One Hundred Fifty-Eight and 50/100 Dollars ($2,974,158.50), to Assignee, and Assignee desires to purchase the Note and
such remaining amounts due under the Agreement and accept the assignment, all in accordance with the terms of this Assignment Agreement;

 

WHEREAS, Borrower consents
to such purchase by and assignment to Assignee; and

 

NOW, THEREFORE, based on
the mutual promises provided herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Assignee, Borrower and Hercules agree as follows:

 

1.           Assignment.

 

a.           Assignment.
On payment by Assignee of Two Million Nine Hundred Seventy-Four Thousand One Hundred Fifty-Eight and 50/100 Dollars ($2,974,158.50)
to Hercules, Hercules hereby assigns to Assignee (i) the Note and (ii) Two Million Nine Hundred Seventy-Four Thousand One Hundred
Fifty-Eight and 50/100 Dollars ($2,974,158.50) of all remaining amounts due under the Agreement and the Note (the “Outstanding
Loan Amount”; the Outstanding Loan Amount and the Note, collectively referred to herein as the “Assigned
Loan”). The Assigned Loan shall be secured by the Collateral to the same extent that the Collateral secures the Note
and the Original Loan Amount. Payment for the Assigned Loan shall be made by wire transfer to Hercules on the Effective Date pursuant
to the wire transfer instructions provided on Schedule 1.a hereto.

 

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b.           Hercules
hereby consents to the exchange transactions contemplated in that certain Exchange Agreement dated as of even date herewith, between
Borrower and Assignee.

 

c.           Until
all Secured Obligations owed to Hercules are repaid in full, any principal of the Assigned Loan or other amounts (other than regularly
scheduled interest) that would otherwise be required to be paid to Assignee under the Agreement shall simply be deferred. If any
interest or other amounts (other than principal) are not paid, such amounts shall instead be added to the principal balance of
the Assigned Loan, with interest to accrue on the principal balance at the interest rate applicable under the Agreement.

 

d.           Upon
payment in full of the Secured Obligations to Hercules, Hercules shall be deemed to assign, transfer and convey to Assignee (i)
the Loan Documents, and (ii) all rights as Agent under the Loan Documents. Additionally, Hercules agrees to consent the filing
of UCC-3 Financing Statement Amendment in the appropriate jurisdictions to evidence and perfect Assignees security interests in
the Collateral.

 

e.           The
assignment of the Assigned Loan is without recourse to Hercules.

 

2.           Representations
and Warranties.

 

a.           Assignee.
The Assignee (i) represents and warrants that (A) it is legally authorized to enter into this Assignment Agreement; (B) it has
obtained all consents and approvals required to enter into this Assignment Agreement; (C) this Assignment Agreement is binding
legal obligation of Assignee, enforceable against it in accordance with this Assignment Agreement’s terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally
or by equitable principles relating to enforceability; (D) from and after the Effective Date, it shall be bound by the provisions
of the Agreement as a Lender thereunder and, to the extent of the Assigned Loan, shall have the obligations of a Lender thereunder;
(E) it is sophisticated with respect to decisions to acquire assets of the type represented by such Assigned Loan and either it,
or the Person exercising discretion in making its decision to acquire such Assigned Loan, is experienced in acquiring assets of
such type; (F) it has, independently and without reliance upon Hercules and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Assignment Agreement to purchase such Assigned Loan;
and (G) it is not prohibited from being a Lender; (ii) confirms that, based on Borrower’s and Hercules’ representation,
it has received a copy of the Loan Documents and such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Assignment and Acceptance; (iii) will independently and without reliance upon
Hercules and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action permitted to be taken under the Loan Documents; and (iv) agrees that it will perform in
accordance with their terms all the obligations which by the terms of the Loan Documents (excluding the Warrants) are required
to be performed by it as a Lender.

 

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b.           Hercules.
Hercules represents and warrants that (i) it is legally authorized to enter into this Assignment Agreement, (ii) it has obtained
all consents and approvals required to enter into this Assignment Agreement, (iii) this Assignment Agreement is binding legal obligation
of Hercules, enforceable against it in accordance with this Assignment Agreement’s terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally or
by equitable principles relating to enforceability, (iv) it is the legal and beneficial owner of the interest being assigned thereby
free and clear of any adverse claim, (v) to Hercules’ knowledge, the Loan Documents were duly authorized, executed, delivered
and performed pursuant to all requisite corporate action on behalf of Hercules, and in accordance with all applicable law, including,
without limitation, federal, state and securities law, (vi) to Hercules’ knowledge, no Event of Default has occurred and
is continuing, (vii) they are sophisticated with respect to decisions to acquire assets of the type represented by such Assigned
Loan and either they, or the Person exercising discretion in making their decision to sell such Assigned Loan, is experienced in
disposing of assets of such type; (viii) they have, independently and without reliance upon Assignee and based on such documents
and information as they have deemed appropriate, made their own credit analysis and decision to enter into this Assignment Agreement
to sell such Assigned Loan, (ix) they will independently and without reliance upon Assignee and based on such documents and information
as they shall deem appropriate at the time, continue to make their own credit decisions in taking or not taking action permitted
to be taken under the Loan Documents, and (x) the Assignee has received a complete, fully executed set of all the Loan Documents,
as amended to date. Except as set forth in this Section (b)(i)-(x), Hercules make no representations or warranties and assume no
responsibility with respect to any statements, warranties or representations made in or in connection with the Loan Documents,
or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any other instrument
or document furnished pursuant to the Loan Documents, or the financial condition of, Borrower or any of its Subsidiaries or the
performance or observance by Borrower or any such Subsidiary of any of its obligations under the Loan Documents or any other instrument
or document furnished pursuant thereto. Except for the representations and warranties provided in this Section 2(b)(i)-(vi), the
Assigned Loan is sold and assigned “as is” and “where is” without representations or warranties of any
kind, including without limitation, warranties of merchantability or fitness of purpose.

 

c.           Borrower.
Borrower represents and warrants that (i) it is legally authorized to enter into this Assignment Agreement, (ii) it has obtained
all consents and approvals required to enter into this Assignment Agreement, (iii) this Assignment Agreement is binding legal obligation
of Borrower, enforceable against it in accordance with this Assignment Agreement’s terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally or
by equitable principles relating to enforceability, (iv) the Loan Documents were duly authorized, executed, delivered and performed
pursuant to all requisite corporate action on behalf of Borrower and in accordance with all applicable law, including, without
limitation, all federal and state securities law, (vi) Borrower has delivered to Assignee Borrower’s most recent financial
statements delivered pursuant to Section 6.3 of the Agreement.

 

3.           Reserved.

 

4.           Consent
and Approval. Borrower hereby approves the foregoing Assignment Agreement, the modifications to the Agreement made herein,
and the sale and assignment of the Assigned Loan to Assignee.

 

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5.            General
Provisions.

 

a.    Severability.
Whenever possible, each provision of this Assignment Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Assignment Agreement shall be prohibited by or invalid under such law, such
provision shall be ineffective only to the extent and duration of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Assignment Agreement.

 

b.    Notice.
Any notice or service of process or other communication shall be in writing, and shall be deemed to have been validly served, given,
delivered, and received upon the earlier of: (i) the day of transmission if sent by facsimile or email, (ii) the day of delivery
if hand delivered or delivered by an overnight express service or overnight mail delivery service, in each case addressed to the
party to be notified as follows:

 

(a)          If
to Hercules:

 

HERCULES CAPITAL, INC.

Legal Department

Attention: Associate General Counsel

400 Hamilton Avenue, Suite 310

Palo Alto, CA 94301

Facsimile: 650-473-9194

Telephone: 650-289-3060

Email: dhuang@htgc.com

 

(b)          If
to Assignee:

 

MEF I, L.P.

c/o Magna

Attn: Marc Manuel

40 Wall Street

New York, NY 10005

Email: marc.manuel@magnainvests.com

 

(c)          If
to Borrower:

 

Immune Pharmaceuticals,
Inc.

Attn: Elliot Maza

550 Sylvan Avenue

Suite 101

Englewood Cliffs, NJ 07632

Email: elliot.maza@immunepharma.com

or to such other address as each party may designate
for itself by like notice.

 

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c.           Entire
Agreement; Amendments. This Assignment Agreement and the agreements referenced herein, constitute the entire agreement and
understanding of the parties hereto in respect of the subject matter hereof and thereof, and supersede and replace in their entirety
any prior proposals, term sheets, letters, negotiations or other documents or agreements, whether written or oral, with respect
to the subject matter hereof or thereof. None of the terms of this Assignment Agreement may be amended except by an instrument
executed by each of the parties hereto.

 

d.           No
Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the
parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.

 

e.           No
Waiver. No omission or delay by Hercules or Assignee at any time to enforce any right or remedy reserved to it, or to require
performance of any of the terms, covenants or provisions hereof by Assignee at any time designated, shall be a waiver of any such
right or remedy to which such party is entitled, nor shall it in any way affect such party’s right to enforce such provisions
thereafter.

 

f.            Survival.
All agreements, representations and warranties contained in this Assignment Agreement or in any document delivered pursuant hereto
or thereto shall survive the execution and delivery of this Assignment Agreement.

 

g.           Governing
Law. This Assignment Agreement has been negotiated and delivered to Hercules in the State of California, and shall have been
accepted by Hercules in the State of California. Payment to Hercules is due in the State of California. This Assignment Agreement
shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding conflict of
laws principles that would cause the application of laws of any other jurisdiction.

 

h.           Consent
to Jurisdiction and Venue. All judicial proceedings (to the extent that the reference requirement of Section 5(i) is not applicable)
arising in or under or related to this Assignment Agreement may be brought in any state or federal court located in the State of
California. By execution and delivery of this Assignment Agreement, each party hereto generally and unconditionally: (i) consents
to nonexclusive personal jurisdiction in Santa Clara County, State of California; (ii) waives any objection as to jurisdiction
or venue in Santa Clara County, State of California; (iii) agrees not to assert any defense based on lack of jurisdiction
or venue in the aforesaid courts; and (iv) irrevocably agrees to be bound by any judgment rendered thereby in connection with
this Assignment Agreement. Service of process on any party hereto in any action arising out of or relating to this Assignment Agreement
shall be effective if given in accordance with the requirements for notice set forth in Section 5(b), and shall be deemed
effective and received as set forth in Section 5(b). Nothing herein shall affect the right to serve process in any other manner
permitted by law or shall limit the right of either party to bring proceedings in the courts of any other jurisdiction.

 

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i.            Mutual
Waiver of Jury Trial / Judicial Reference.

 

(A)         Because
disputes arising in connection with complex financial transactions are most quickly and economically resolved by an experienced
and expert Person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties
desire that their disputes be resolved by a judge applying such applicable laws. EACH OF ASSIGNEE AND HERCULES SPECIFICALLY WAIVES
ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER
CLAIM (COLLECTIVELY, “CLAIMS”) ASSERTED BY OR AGAINST EACH OTHER UNDER THIS ASSIGNMENT AGREEMENT. This waiver extends
to all such Claims, including Claims that involve Persons other than Assignee and Hercules, and any Claims for damages, breach
of contract, tort, specific performance, or any equitable or legal relief of any kind, arising out of this Assignment Agreement.

 

(B)         If
the waiver of jury trial set forth in Section 5(i)(A) is ineffective or unenforceable, the parties agree that all Claims shall
be resolved by reference to a private judge sitting without a jury, pursuant to Code of Civil Procedure Section 638, before a mutually
acceptable referee or, if the parties cannot agree, a referee selected by the Presiding Judge of Santa Clara County, California.
Such proceeding shall be conducted in Santa Clara County, California, with California rules of evidence and discovery applicable
to such proceeding.

 

(C)         In
the event Claims are to be resolved by judicial reference, either party may seek from a court identified in Section 5(h) any prejudgment
order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest extent permitted by law
notwithstanding that all Claims are otherwise subject to resolution by judicial reference.

 

j.            Counterparts.
This Assignment Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts,
and by different parties hereto in separate counterparts, each of which when so delivered shall be deemed an original, but all
of which counterparts shall constitute but one and the same instrument.

 

k.          No
Third Party Beneficiaries. No provisions of this Assignment Agreement are intended, nor will be interpreted, to provide or
create any third-party beneficiary rights or any other rights of any kind in any Person other than Hercules, Assignee and Borrower
unless specifically provided otherwise herein.

 

[Remainder of page intentionally
left blank]

 

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The terms set forth in
this Assignment Agreement and Amendment to Loan and Security Agreement are hereby agreed to as of the date first provided above.

 

HERCULES CAPITAL, INC.

 

	Signature:	 	 
	Print Name:	Zhuo Huang	 
	Title:	Associate General Counsel	 
	 	 	 
	MEF I, L.P.	 
	 	 	 
	Signature:	 	 
	Print Name:	Marc Manuel	 
	Title:	MD, Global Head of Equities	 
		On behalf of Magna Management	 
	 	 	 
	IMMUNE PHARMACEUTICALS, INC. 	 
	 	 	 
	Signature:	 	 
	Print Name:	Elliot Maza	 
	Title:	Chief Executive Officer	 
	 	 	 
	IMMUNE PHARMACEUTICALS USA CORP. 	 
	 	 	 
	Signature:	 	 
	Print Name:	Elliot Maza	 
	Title:	Chief Executive Officer	 

 

[Signature pages continue on following page]

 

    	 	7	 

     

    

 

Acknowledge and Agreed to by:

 

IMMUNE PHARMACEUTICALS LTD., as Guarantor

 

	Signature:	 	 
	Print Name:	Elliot Maza	 
	Title:	Chief Executive Officer	 

 

MAXIM PHARMACEUTICALS, INC., as a subsidiary of Immune Pharmaceuticals,
Inc.

 

	Signature:	 	 
	Print Name:	 	 
	Title:	 	 

 

IMMUNE ONCOLOGY PHARMACEUTICALS, as a subsidiary of Immune Pharmaceuticals,
Inc.

 

	Signature:	 	 
	Print Name:	 	 
	Title:	 	 

 

CYTOVIA INC., as a subsidiary of Immune Pharmaceuticals, Inc.

 

	Signature:	 	 
	Print Name:	 	 
	Title:	 	 

 

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Schedule 1.a

 

Wire Transfer Instructions

 

See attached.

 

    	 	9Exhibit 10.2

 

EXECUTION VERSION

 

EXCHANGE AGREEMENT

 

THIS EXCHANGE AGREEMENT
(the “Agreement”) is dated this 7th day of July, 2017 (the “Effective Date”), by and
among Immune Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and MEF I, L.P. (the “Holder”).

 

WHEREAS, the Holder entered
into that certain Assignment Agreement, dated as of even date herewith (the “Assignment Agreement”), by and
among, the Company, Immune Pharmaceuticals
USA Corp., the subsidiaries and guarantor of the foregoing entities, and Hercules Capital, Inc. (fka, Hercules Technology
Growth Capital, Inc.), a Maryland corporation (“Hercules”);

 

WHEREAS, pursuant to the
Assignment Agreement, Hercules assigned all of its rights, title, and interests contained in that certain Loan and Security Agreement,
dated July 29, 2015, as amended (the “Loan Agreement”), by and among the Company, Immune
Pharmaceuticals USA Corp., the subsidiaries and guarantor of the foregoing entities, and Hercules, to Holder, along with all rights,
title, and interests contained in the ancillary transaction documents;

 

WHEREAS,
pursuant to the Assignment Agreement, Holder is now deemed the lender of the Two Million Nine Hundred Seventy-Four Thousand
One Hundred Fifty-Eight and 50/100 Dollars ($2,974,158.50) outstanding under the Loan Agreement (the “Loan”);

 

WHEREAS, the Loan is evidenced
by that certain Secured Term Promissory Note (the “Note”);

 

WHEREAS, pursuant to the
Assignment Agreement the Holder beneficially owns and holds the Note, as set forth on Exhibit A hereto (the “Securities”);

 

WHEREAS, the Holder desires
to exchange the Securities for one of the Company’s Senior Secured Convertible Promissory Notes (the “Exchange Securities”)
as set forth on Exhibit B, and the Company desires to issue the Exchange Securities in exchange for the Securities, all
on the terms and conditions set forth in this Agreement; and

 

WHEREAS, the reliance upon
the representations made by the Holder and the Company in this Agreement, the transactions contemplated by this Agreement are such
that the offer and exchange of securities by the Company under this Agreement will be exempt from registration under applicable
United States securities laws as a result of this exchange offer being undertaken pursuant to Section 3(a)(9)of the Securities
Act of 1933, as amended (the “Securities Act”).

 

NOW, THEREFORE, in consideration
of the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Company and the Holder hereby agree as follows:

 

Definitions. In
addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement: (a) capitalized terms that are not
otherwise defined herein have the meanings given to such terms in the Note (as defined herein), and (b) the following terms have
the meanings set forth below:

 

     

     

    

  

“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.

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.001 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.

 

“Conversion
Price” shall have the meaning ascribed to such term in the Exchange Securities.

 

“Conversion
Shares” shall have the meaning ascribed to such term in the Exchange Securities. For the avoidance of doubt, such Conversion
Shares includes all shares of Common Stock issued and issuable pursuant to the terms of the Note, including without limitation,
shares of Common Stock issued and issuable in lieu of the cash payment of interest, if any, on the Note in accordance with the
terms of the Note, in each case without respect to any limitation or restriction on the conversion of the Note.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1.

 

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

 

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

 

“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(m).

 

    	 	2	 

     

    

  

“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.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same 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
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

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

 

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

 

Section 1. Exchange.
Subject to and upon the terms and conditions set forth in this Agreement, Holder agree to surrender to the Company the Securities
(other than any Securities or portions thereof which have previously been or repaid in cash pursuant to their terms) and, in exchange
therefore, the Company shall issue to the Holder the Exchange Securities (each, an “Exchange”).

 

1.1 Closing.
On the date hereof (the “Closing Date”), the Company will issue and deliver (or cause to be issued and delivered)
the Exchange Securities to the Holder, or in the name of a custodian or nominee of the Holder, or as otherwise requested by the
Holder in writing, and the Holder will surrender to the Company an equal amount of the Securities.

 

1.2 Section
3(a)(9). Assuming the accuracy of the representations and warranties of each of the Company and the Holder set forth in Sections
2 and 3 of this Agreement, the parties acknowledge and agree that the purpose of such representations and warranties is, among
other things, to ensure that the Exchange qualifies as an exchange of securities under Section 3(a)(9)of the Securities Act.

 

    	 	3	 

     

    

  

1.3 Legal
Opinion. At the Closing the Company shall have a legal opinion of its counsel, substantially in the form of Exhibit C
attached hereto. Such opinion shall opine on the availability of an exemption from registration under the Securities Act as it
relates to the Exchange, the tacking of the holding period of the Exchange Securities to the original issuance date of the Securities
under Rule 144 and other matters reasonably requested by the Holder.

 

1.4 At the Closing,
the Company shall provide in substantially in the form of Exhibit D attached hereto, a non-shell representation letter.
Such letter shall represent that the Company is not and has not been an entity that fits
within the definition of a “shell company” under Section 12b-2 of the Exchange Act and Rule 144.

 

1.5 At
the Closing, the Company shall provide an irrevocable transfer agent instruction letter, in substantially in the form of
Exhibit E attached hereto,

 

Section 2. 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, represents and warrants to the Holder that:

 

(a)   Subsidiaries.  All
of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each any subsidiary of the Company as set forth on Schedule
3.1(a) and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the
date hereof (a “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 (as defined in the Note) shall be disregarded.

 

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

  

    	 	4	 

     

    

  

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

 

(d)   No Conflicts.  The
execution, delivery and performance by the Company of this Agreement and the other transaction documents to which it is a party,
the issuance and sale of the 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; (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 (except liens
in favor of the Holder) upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company
or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected; or (iii) subject
to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree
or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal
and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected;
except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material
Adverse Effect.

  

    	 	5	 

     

    

  

(e)   Filings, Consents and
Approvals.  The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the
filings required pursuant to Section 4.6 of this Agreement, and (ii) the filing of Form D and 8-K with the Commission
and such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

(f)   Issuance of the Securities.  The
Securities are duly authorized, validly issued, fully paid and nonassessable, free and clear of all liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents.  The Exchange 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 other than restrictions on transfer provided for in the Transaction
Documents.

 

(g)   Capitalization.  The
capitalization of the Company 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. Except
as set forth on Schedule 3.1(g), 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 stock option plans,
the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant
to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report
under the Exchange Act. Except as set forth on Schedule 3.1(g), other than with regards to an Exempt Issuance (as defined
in the Note), no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate
in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities and
securities issued to employees, officers or directors, or former employees, officers or directors and other service providers or
former service providers of the Company pursuant to the Equity Incentive Plan or otherwise, there are no outstanding options, warrants,
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 contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue
additional shares of Common Stock or Common Stock Equivalents.  Except as set forth on Schedule 3.1(g), the issuance
and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other
than the Holder) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange
or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none
of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.  No
further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of
the Securities.  Other than 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.

 

    	 	6	 

     

    

  

(h)   SEC Reports; Financial
Statements.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed
by the Company under 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, being collectively referred
to herein as the “SEC Reports”).  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.  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 filing of the Company’s Form 10-Q for
the period ended March 31, 2017, 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 any stock option plan
or as set forth in the SEC Reports.  Except for the issuance of the Securities contemplated by this Agreement, 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, 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 one (1) Trading Day prior to the date that this representation is
made.

    	 	7	 

     

    

  

(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, and neither the Company nor any Subsidiary, nor any director
or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state
securities laws or a claim of breach of fiduciary duty.  There has not been, and to the knowledge of the Company, there
is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or
officer of the Company that is likely to lead to action that can reasonably be expected to result in a Material Adverse Effect.
There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission
involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order
or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange
Act or the Securities Act.

 

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

 

    	 	8	 

     

    

  

(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 case as
could not have or reasonably be expected to result in a Material Adverse Effect.

 

(m)   Regulatory Permits.  The
Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local
or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, 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.

 

(n)   Title to Assets.  Except
as set forth on Schedule 3.1(n), 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.

 

(o)   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 as described in the SEC Reports, all as necessary or required for use in connection with their respective businesses as
presently conducted 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 notice (written or otherwise) that
any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be
abandoned, within two (2) years from the date of this Agreement.  Neither the Company nor any Subsidiary has received,
since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not
have or reasonably be expected to not 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.

 

    	 	9	 

     

    

  

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

 

(q)   Sarbanes-Oxley; Internal
Accounting Controls.  Except as set forth on Schedule 3.1(q), the Company and the Subsidiaries are in compliance
with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and
all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of
the applicable 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 that have materially
affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

    	 	10	 

     

    

  

(r)   Certain Fees.  Other
than as set forth on Schedule 3.1(r), no brokerage or finder’s fees or commissions are or will be payable by
the Company or any Subsidiaries 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 Holder 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.

 

(s)   Private Placement.  Assuming
the accuracy of the Holder’s representations and warranties set forth in Section 3.2, no registration under the Securities
Act is required for the offer and sale of the Securities by the Company to the Holder as contemplated hereby. The issuance and
sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.

 

(t)   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.

 

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

 

(v)   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 twelve (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.

 

    	 	11	 

     

    

  

(w)   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 Holder as a result of the Holder 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 Holder’s ownership of the Securities.

 

(x)   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 Holder or their agents or counsel with any information
that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the
Holder 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 Holder regarding the Company and its Subsidiaries, their respective
businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, 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 light of the circumstances under which they were made, not misleading.    The Company
acknowledges and agrees that no Holder 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.

 

(y)   No Integrated Offering.
Assuming the accuracy of the Holder’s representations and warranties set forth in this Section 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 (i) the Securities Act which would require the registration
of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market
on which any of the securities of the Company are listed or designated.

 

(z)   No General Solicitation.
Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities by any form of general
solicitation or general advertising. The Company has offered the Securities for sale only to the Holder and certain other “accredited
investors” within the meaning of Rule 501 under the Securities Act.

 

    	 	12	 

     

    

  

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

 

(bb)   Accountants.  The
Company’s accounting firm is set forth on Schedule 3.1(bb) of the Disclosure Schedules.  To the knowledge
and belief of the Company, such accounting firm is a registered public accounting firm as required by the Exchange Act.

 

(cc)   No Disagreements with
Accountants and Lawyers.  There are no disagreements of any kind presently existing, or reasonably anticipated by
the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company.

 

(dd)   Acknowledgment
Regarding Holder’s Purchase of Securities.  The Company acknowledges and agrees that the Holder 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 Holder 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
Holder or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated
thereby is merely incidental to the Holder’s purchase of the Securities. The Company further represents to the Holder 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.

  

(ee)   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.

 

(ff)   Stock Option Plans.
Each stock option granted by the Company was granted (i) in accordance with the terms of the applicable stock option plan of the
Company 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 stock option plan has been
backdated. The Company has not knowingly granted, and there is no and has been no policy or practice of the Company 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.

 

    	 	13	 

     

    

  

(gg)   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”).

 

(hh)   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 a Holder’s request.

 

(ii)   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.

 

(jj) 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 (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 know of no basis for any such claim.

 

(kk) Seniority. No Indebtedness
or other claim against the Company is senior to the Loan Agreement in right of payment, whether with respect to interest or upon
liquidation or dissolution, or otherwise, other than indebtedness secured by purchase money security interests (which is senior
only as to underlying assets covered thereby) and capital lease obligations (which is senior only as to the property covered thereby).

 

    	 	14	 

     

    

  

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

 

(mm) Promotional Stock Activities.
Neither the Company, its officers, or any affiliates or agents of the Company have engaged in any stock promotional activity that
could give rise to a complaint or inquired by the Securities and Exchange Commission alleging (i) a violation of the anti-fraud
provisions of the federal securities laws, (ii) violations of the anti-touting provisions, (iii) improper “gun-jumping; or
(iv) promotion without proper disclosure of compensation.

 

(nn) Withdrawal or Payments of
Cash. Neither the Company, its officers, or any affiliates or agents of the Company have withdrawn or paid cash to any Person
in an aggregate amount that exceeds Five Thousand Dollars ($5,000).

 

Section 3. Representations
and Warranties of the Holder. The Holder represents and warrants to the Company that:

 

3.1 Ownership
of the Securities. The Holder is the legal and beneficial owner of its pro-rata portion of the Securities. The Holder paid
for the Securities, and has continuously held the Securities since its issuance or purchase. The Holder, individually or through
an affiliate, owns the Securities outright and free and clear of any options, contracts, agreements, liens, security interests,
or other encumbrances.

 

3.2 No Public
Sale or Distribution. The Holder is acquiring its pro-rata portion the Exchange Securities in the ordinary course of business
for its own account and not with a view toward, or for resale in connection with, the public sale or distribution thereof; provided,
however, that by making the representations herein, the Holder does not agree to hold any of the Exchange Securities for any minimum
or other specific term and reserves the right to dispose of the Exchange Securities at any time in accordance with an exemption
from the registration requirements of the Securities Act and applicable state securities laws. The Holder does not presently have
any agreement or understanding, directly or indirectly, with any person to distribute, or transfer any interest or grant participation
rights in, the Securities or the Exchange Securities.

 

3.3 Accredited
Investor and Affiliate Status. At the time the Holder was offered the Exchange Securities, it was, as of the date hereof, it
is, and as of the date it converts the Exchange Securities, it will be, an “accredited investor” as that term is defined
in Rule 501 of Regulation D under the Securities Act. The Holder is not, and has not been, for a period of at least three (3) months
prior to the date of this Agreement (a) an officer or director of the Company, (b) an “affiliate” of the Company (as
defined in Rule 144) (an “Affiliate”) or (c) a “beneficial owner” of more than 10% of the common
stock (as defined for purposes of Rule 13d-3 of the Exchange Act).

 

    	 	15	 

     

    

  

3.4 Reliance
on Exemptions. The Holder understands that the Exchange is being made in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy
of, and the Holder’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of
the Holder set forth herein in order to determine the availability of such exemptions and the eligibility of the Holder to complete
the Exchange and to acquire its pro-rata portion of the Exchange Securities.

 

3.5 Information.
The Holder has been furnished with all materials relating to the business, finances and operations of the Company and materials
relating to the Exchange which have been requested by the Holder. The Holder has been afforded the opportunity to ask questions
of the Company. Neither such inquiries nor any other due diligence investigations conducted by the Holder or its representatives
shall modify, amend or affect the Holder’s right to rely on the Company’s representations and warranties contained
herein. The Holder acknowledges that all of the documents filed by the Company with the SEC under Sections 13(a), 14(a) or 15(d)
of the Exchange Act that have been posted on the SEC’s EDGAR site are available to the Holder, and the Holder has not relied
on any statement of the Company not contained in such documents in connection with the Holder’s decision to enter into this
Agreement and the Exchange.

 

3.6 Risk.
The Holder understands that its investment in the Exchange Securities involves a high degree of risk. The Holder is able to bear
the risk of an investment in the Exchange Securities including, without limitation, the risk of total loss of its investment. The
Holder has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision
with respect to the Exchange.

 

3.7 No Governmental
Review. The Holder understands that no United States federal or state agency or any other government or governmental agency
has passed on or made any recommendation or endorsement in connection with the Exchange or the fairness or suitability of the investment
in the Exchange Securities nor have such authorities passed upon or endorsed the merits of the Exchange Securities.

 

3.8 Organization;
Authorization. The Holder is duly organized, validly existing and in good standing under the laws of its state of formation
and has the requisite organizational power and authority to enter into and perform its obligations under this Agreement.

 

3.9 Validity;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Holder and shall
constitute the legal, valid and binding obligations of the Holder enforceable against the Holder in accordance with its terms.
The execution, delivery and performance of this Agreement by the Holder and the consummation by the Holder of the transactions
contemplated hereby (including, without limitation, the irrevocable surrender of the Securities) will not result in a violation
of the organizational documents of the Holder.

 

    	 	16	 

     

    

  

3.10 Prior
Investment Experience. The Holder acknowledges that it has prior investment experience, including investment in securities
of the type being exchange, including the Securities or the Exchange Securities, and has read all of the documents furnished or
made available by the Company to it and is able to evaluate the merits and risks of such an investment on its behalf, and that
it recognizes the highly speculative nature of this investment.

 

3.11 Tax Consequences.
The Holder acknowledges that the Company has made no representation regarding the potential or actual tax consequences for the
Holder which will result from entering into the Agreement and from consummation of the Exchange. The Holder acknowledges that it
bears complete responsibility for obtaining adequate tax advice regarding the Agreement and the Exchange.

 

3.12 No Registration,
Review or Approval. The Holder acknowledges, understands and agrees that its pro-rata portion of the Exchange Securities are
being exchanged hereunder pursuant to an exchange offer exemption under Section 3(a)(9)of the Securities Act.

 

Section 4. Conditions
Precedent to Obligations of the Company. The obligation of the Company to consummate the transactions contemplated by this
Agreement is subject to the satisfaction on each Closing Date of each of the following conditions, provided that these conditions
are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing the Holder
with prior written notice thereof:

 

4.1 Delivery.
The Holder shall have delivered to the Company the Securities.

 

4.2 No Prohibition.
No order of any court, arbitrator, or governmental or regulatory authority shall be in effect which purports to enjoin or restrain
any of the transactions contemplated by this Agreement.

 

4.3 Representations.
The accuracy in all material respects when made and on the applicable Closing Date of the representations and warranties of the
Holder contained herein (unless as of a specific date therein).

 

Section 5. Conditions
Precedent to Obligations of the Holder. The obligation of the Holder to consummate the transactions contemplated by this Agreement
is subject to the satisfaction on each Closing Date of each of the following conditions, provided that these conditions are for
the Holder’s sole benefit and may be waived by the applicable Holder at any time in its sole discretion by providing the
Company with prior written notice thereof:

 

5.1 No order
of any court, arbitrator, or governmental or regulatory authority shall be in effect which purports to enjoin or restrain any of
the transactions contemplated by this Agreement;

 

    	 	17	 

     

    

  

5.2 The accuracy
in all material respects when made and on the applicable Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein);

 

5.3 All obligations,
covenants and agreements of the Company required to be performed at or prior to the applicable Closing Date shall have been performed;

 

5.4 There is
no event of default then existing on the Securities on such date; and

 

5.5 From the
date hereof to the relevant Closing Date, trading in the Company’s common stock shall not have been suspended by the SEC
or any 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 the Holder makes it impracticable or inadvisable to purchase the Exchange Securities at the closing.

 

5.6 The Company
consents to the filing of a UCC-3 Financing Statement Amendment in the appropriate jurisdictions to evidence and perfect Holder’s
security interests in the Collateral (as defined in the Loan Agreement).

 

Section 6. Governing
Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be construed under the laws of the state of New York, without
regard to principles of conflicts of law or choice of law that would permit or require the application of the laws of another jurisdiction.
The Company and the Holder each hereby agrees that all actions or proceedings arising directly or indirectly from or in connection
with this Agreement shall be litigated only in the Supreme Court of the State of New York or the United States District Court for
the Southern District of New York located in New York County, New York. The Company and the Holder each consents to the exclusive
jurisdiction and venue of the foregoing courts and consents that any process or notice of motion or other application to either
of said courts or a judge thereof may be served inside or outside the State of New York or the Southern District of New York by
generally recognized overnight courier or certified or registered mail, return receipt requested, directed to such party at its
or his address set forth below (and service so made shall be deemed “personal service”) or by personal service or in
such other manner as may be permissible under the rules of said courts. THE COMPANY AND THE HOLDER EACH HEREBY WAIVE ANY RIGHT
TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION PURSUANT TO THIS AGREEMENT.

 

    	 	18	 

     

    

  

Section 7. Indemnification
of Holder. Subject to the provisions of this Section 7, each of the Company, shall indemnify and hold the Holder and its directors,
officers, managers, 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 the Holder
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, managers,
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 “Holder Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Holder 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 any Company in this Agreement or in the other document related to this exchange or (b) any action instituted against Holder
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 Holder Party, with respect to any of the transactions contemplated by this exchange (unless such action is based upon a
breach of such Holder Party’s representations, warranties or covenants under the exchange or any agreements or understandings
such Holder Party may have with any such stockholder or any violations by such Holder Party of state or federal securities laws
or any conduct by such Holder Party which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action
shall be brought against any Holder Party in respect of which indemnity may be sought pursuant to this Agreement, such Holder 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 Holder Party. Any Holder 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
Holder Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii)
the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there
is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the
position of such Holder Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than
one such separate counsel. The Company will not be liable to any Holder Party under this Agreement (y) for any settlement by a
Holder Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or
(z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Holder Party’s breach
of its representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Holder
Party may have with any such stockholder or any violations by such Holder Party of state or federal securities laws or any conduct
by such Holder Party which constitutes fraud, gross negligence, willful misconduct or malfeasance. The indemnification required
by this Section 7 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as
and when bills are received or are incurred however, each Holder Party who receives such interim payment agrees to reimburse the
Company for any such payment made by the Company to such Holder Party if it is finally determined in such action or proceeding
that such Holder Party is not entitled to indemnification pursuant to this Section 7. The indemnity agreements contained herein
shall be in addition to any cause of action or similar right of any Holder Party against any Company or others and any liabilities
the Company may be subject to pursuant to law.

 

Section 8. Fees and
Expenses.   Except as expressly set forth below, 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 acknowledges and agrees that it was obligated to previously
pay to Holder’s legal counsel a cash deposit of Fifteen Thousand Dollars ($15,000) for its initial legal fees and initial
out of pocket due diligence costs. Notwithstanding the foregoing, the Company shall pay: (i) the Holder’s legal counsel for
all of its legal fees and all of its out of pocket due diligence costs; and (ii) all transfer agent fees (including, without limitation,
any fees required for same-day processing of any instruction letter delivered by the Company and any conversion or exercise notice
delivered by the Holder), stamp taxes and other taxes and duties levied in connection with the delivery of any Exchange Securities
to the Holder.

 

    	 	19	 

     

    

  

Section 9. Certain Transactions.
The Holder covenants that neither it, nor any affiliate acting on its behalf or pursuant to any understanding with it will execute
any “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act of any of the Company’s securities
during the period commencing with the execution of this Agreement and ending on the later of (i) the Maturity Date (as defined
in the Exchange Securities) or (ii) the date that the Exchange Securities are no longer outstanding (provided that this provision
shall not prohibit any sales made where a corresponding Notice of Conversion (as defined in the Exchange Securities) is tendered
to the Company and the shares received upon such conversion or exercise are used to close out such sale).

 

Section 10. Certificates.
Certificates evidencing the shares of the Company’s common stock underlying the Exchange Securities (the “Underlying
Shares”) shall not contain any legend: (i) while a registration statement covering the resale of such security is effective
under the Securities Act; (ii) following any sale of such Underlying Shares pursuant to Rule 144; or (iii) if such legend is not
required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the
staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent promptly
after any of the events described in (i)-(iii) in the preceding sentence if required by the Company’s transfer agent to effect
the removal of the legend hereunder (with a copy to the Holder and its broker). If all or any portion of an Exchange Security is
converted at a time when there is an effective registration statement to cover the resale of the Underlying Shares, or if such
Underlying Shares may be sold under Rule 144 or if such legend is not otherwise required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Underlying Shares shall
be issued free of all legends.  The Company agrees that following the Effective Date or at such time as such legend is
no longer required under this Section, it will, no later than two Trading Days following the delivery by the Holder to the Company
or the Company’s transfer agent of a certificate representing Underlying Shares, as applicable, issued with a restrictive
legend, deliver or cause to be delivered to the Holder a certificate representing such shares that is free from all restrictive
and other legends.  The Company may not make any notation on its records or give instructions to the Company’s
transfer agent that enlarge the restrictions on transfer set forth in this Section.  Certificates for Underlying Shares
subject to legend removal hereunder shall be transmitted by the Company’s transfer agent to the applicable Holder by crediting
the account of the Holder’s prime broker with the Depository Trust Company System as directed by the Holder.

 

Section 11. Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if
the signature were an original, not a facsimile signature.

 

    	 	20	 

     

    

  

Section 12. Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

Section 13. Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

Section 14. Entire Agreement;
Amendments. This Agreement supersedes all other prior oral or written agreements between the Holder, the Company, its affiliates
and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced
herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically
set forth herein or therein, neither the Company nor the Holder make any representation, warranty, covenant or undertaking with
respect to such matters; provided, however, that all representations and warranties contained in the Loan Agreement, shall be incorporated
herein. No provision of this Agreement may be amended other than by an instrument in writing signed by each of the Company and
the Holder. No provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement
is sought.

 

Section 15. Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; or (b) one calendar day (excluding
Saturdays, Sundays, and national banking holidays) after deposit with an overnight courier service, in each case properly addressed
to the party to receive the same.

 

The addresses for such communications shall
be:

 

If to the Company:

Immune Pharmaceuticals, Inc.

550 Sylvan Avenue, Suite 101

Englewood Cliffs, NJ 07632

Attn: Elliot Maza, Interim CEO

 

If to the Holder:

 

MEF I, L.P.

c/o Magna

40 Wall Street

New York, NY 10005

Attn: Marc Manuel

 

    	 	21	 

     

    

  

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

 

Robinson Brog Leinwand Greene Genovese & Gluck P.C.

875 Third Avenue, 9th Floor

New York, NY 10022

Attn: David E. Danovitch, Esq.

 

or to such other address and/or to the attention
of such other person as the recipient party has specified by written notice given to each other party five (5) days prior to the
effectiveness of such change.

 

Section 16. Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns, including any purchasers of the Exchange Securities. The Holder may assign some or all of their rights hereunder without
the consent of any of the Company, in which event such assignee shall be deemed to be the Holder hereunder with respect to such
assigned rights.

 

Section 17. No Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

Section 18. Survival
of Representations. The representations and warranties of the Company and the Holder contained in Sections 2 and 3, respectively,
will survive the closing of the transactions contemplated by this Agreement.

 

Section 19. Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

Section 20. Securities
Laws Disclosure; Publicity. The Company shall by 9:30 a.m. (New York City time) on the Trading Day immediately following the
date hereof file a Current Report on Form 8-K, including the transaction documents as exhibits thereto, with the Commission within
the time required by the Exchange Act. From and after the filing of such 8-K, the Company represents to the Holder that it shall
have publicly disclosed all material, non-public information delivered to the Holder 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. The Company and the Holder shall consult with each other in issuing any press releases with respect to the transactions
contemplated hereby, and neither the Company nor any Holder shall issue any such press release nor otherwise make any such public
statement without the prior consent of the Company, with respect to any press release of the Holder, or without the prior consent
of the Holder, 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 the
Holder, or include the name of the Holder in any filing with the Commission or any regulatory agency or trading market, without
the prior written consent of the Holder, except: (a) as required by federal securities law in connection with any registration
statement contemplated by this Agreement and (b) to the extent such disclosure is required by law or trading market regulations,
in which case the Company shall provide the Holder with prior notice of such disclosure permitted under this clause (b).

 

[Signature Page Follows]

 

    	 	22	 

     

    

  

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

 

Immune Pharmaceuticals,
Inc.

 

	By: 	 	 
	 	Name: Elliot Maza	 
	 	Title: Interim Chief Executive Officer	 
	 	 	 
	MEF I, L.P.	 
	 	 	 
	By:	 	 
	 	Name:	 Marc Manuel	 
	 	Title:	MD, Global Head of Equities	 
	 	 	On Behalf of Magna Management 	 

 

    	 	23	 

     

    

  

SCHEDULE 3.1(a)

List of Subsidiaries

 

	Name of Entity	 	Jurisdiction of
 Incorporation	 	Ownership	 
	Immune Pharmaceuticals Ltd.	 	Israel	 	 	100	%
	Immune Oncology Pharmaceuticals	 	Delaware	 	 	100	%
	Cytovia Inc.	 	Delaware	 	 	100	%
	Maxim Pharmaceuticals, Inc.	 	Delaware	 	 	100	%
	Immune Pharmaceuticals USA Corp.	 	Delaware	 	 	100	%

 

    	 	24	 

     

    

 

SCHEDULE 3.1(g)

 

	Immune Pharmaceuticals Inc. 	 
	Capitalization Table 	 
	 	 	Shares	 
	 	 	 	 
	Common as of 7/5/17	 	 	9,964,301	 
	Preferred	 	 	-	 
	Warrants as of 3/31/17	 	 	632,080	 
	     Options as of 3/31/17	    	 	500,437	 
	     Total	 	 	10,796,818	 

 

Right of First Refusal,
Preemptive Right, Right of Participation or Similar 

 

Right of first refusal to EMA Financial, LLC, a Delaware limited
liability company (“EMA”), pursuant to that certain Securities Purchase Agreement, dated April 10, 2017.

 

Agreements with Resets

 

Warrant issued to EMA, dated April 10, 2017.

 

    	 	25	 

     

    

  

SCHEDULE 3.1(i)

Material Changes; Undisclosed Events, Liabilities
or Developments

 

None.

 

    	 	26	 

     

    

  

SCHEDULE 3.1(j)

Litigation

 

As disclosed in the Company’s Quarterly Report on Form 10-Q,
filed with the Securities and Exchange Commission on June 14, 2017.

 

On May 30, 2017, the Company received a summons
from the bankruptcy court-liquidator to appear before the commercial court of Evry, France on September 19, 2017, relating to amounts
due on a MabLife SAS loan for approximately $400,000. This has been disclosed in the Company’s Quarterly Report on Form 10-Q,
filed with the Securities and Exchange Commission on June 14, 2017.

 

    	 	27	 

     

    

  

SCHEDULE 3.1(n)

Title to Assets

 

Security interests of Hercules, pursuant to that certain Loan and
Security Agreement, dated July 29, 2015.

 

    	 	28	 

     

    

  

SCHEDULE 3.1(q)

Sarbanes-Oxley; Internal Accounting Controls

 

Material weaknesses as disclosed in the Company’s Quarterly
Report on Form 10-Q, filed with the Securities and Exchange Commission on June 14, 2017.

 

    	 	29	 

     

    

  

SCHEDULE 3.1(r)

Certain Fees 

 

None.

 

    	 	30	 

     

    

  

SCHEDULE 3.1(u)

Registration Rights 

 

Registration Rights for EMA, pursuant to that
certain Registration Rights Agreement, dated April 10, 2017. Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on June 30, 2017.

 

The Company has limitations on additional indebtedness
that it may incur per the Maxim Group LLC “PIPE” offering, which closed on May 4, 2017.

 

    	 	31	 

     

    

  

SCHEDULE 3.1(bb)

Accountants

 

BDO USA, LLP.

 

    	 	32	 

     

    

  

SCHEDULE 3.1(ff)

Stock Option Plans

 

On May 10, 2017, the Company’s Board
of Directors granted Elliot Maza an option under the Immune Pharmaceuticals Inc. 2015 Equity Incentive Plan to purchase 30,000
shares of the Company’s common stock, which may only be exercised following stockholder approval of a resolution to expand
the sublimit of options that may be issued to a director within a single calendar year.

 

    	 	33	 

     

    

  

Exhibit
A

 

Securities

 

    	 	34	 

     

    

  

Exhibit
B

 

Exchange Securities

 

    	 	35	 

     

    

 

EXHIBIT C

 

Form of Legal Opinion

 

    	 	36	 

     

    

  

EXHIBIT D

 

Form of Non-Shell Representation Letter

 

    	 	37	 

     

    

  

EXHIBIT E

 

Form of Irrevocable Transfer Agent Instruction
Letter

 

    	 	38

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