Document:

Exhibit 10.1

 

2016 NEWCASTLE INVESTMENT CORP.

NONQUALIFIED OPTION AND

INCENTIVE AWARD PLAN

Adopted as of April 7, 2016

 

TABLE OF CONTENTS

	 	 	
PAGE 

	
SECTION 1 PURPOSE OF PLAN; DEFINITIONS

	
1

	 
	 	 	 	 
	
1.1

	
Purpose

	
1

	 
	
1.2

	
Definitions

	
1

	 
	 	 	 
	
SECTION 2 ADMINISTRATION

	
3

	 
	 	 	 	 
	
2.1

	
Administration

	
3

	 
	
2.2

	
Duties and Powers of Committee

	
3

	 
	
2.3

	
Majority Rule

	
3

	 
	
2.4

	
Delegation of Authority.

	
3

	 
	
2.5

	
Compensation; Professional Assistance; Good Faith Actions.

	
3

	 
	 	 	 
	
SECTION 3 STOCK SUBJECT TO PLAN

	
4

	 
	 	 	 	 
	
3.1

	
Number of and Source of Shares

	
4

	 
	
3.2

	
Effect of Awards

	
4

	 
	
3.3

	
Unrealized and Tandem Awards

	
4

	 
	
3.4

	
Adjustment of Awards

	
4

	 
	 	 	 
	
SECTION 4 ELIGIBILITY

	
4

	 
	 	 	 
	
SECTION 5 AWARDS

	
5

	 
	 	 	 	 
	
5.1

	
Options

	
5

	 
	
5.2

	
Stock Appreciation Rights

	
5

	 
	
5.3

	
Restricted Stock

	
5

	 
	
5.4

	
Performance Awards

	
5

	 
	
5.5

	
Manager Awards and Tandem Awards

	
6

	 
	
5.6

	
Automatic Non-Officer Director Awards

	
7

	 
	
5.7

	
Other Awards

	
7

	 
	 	 	 
	
SECTION 6 AWARD AGREEMENTS

	
8

	 
	 	 	 	 
	
6.1

	
Terms of Award Agreements

	
8

	 
	 	 	 
	
SECTION 7 AMENDMENT AND TERMINATION

	
9

	 
	 	 	 
	
SECTION 8 UNFUNDED STATUS OF PLAN

	
9

	 
	 	 	 
	
SECTION 9 GENERAL PROVISIONS

	
9

	 
	 	 	 	 
	
9.1

	
Securities Laws Compliance

	
9

	 
	
9.2

	
Legends

	
9

	 
	
9.3

	
Transfer Restrictions

	
9

	 
	
9.4

	
Company Actions; No Right to Employment

	
9

	 
	
9.5

	
Section 409A of the Code

	
9

	 
	
9.6

	
Payment of Taxes

	
10

	 
	
9.7

	
Governing Law.

	
10

	 
	 	 	 
	
SECTION 10 EFFECTIVE DATE OF PLAN

	
10

	 
	 	 	 
	
SECTION 11 TERM OF PLAN

	
10

	 

 

NEWCASTLE INVESTMENT CORP.

2016 NONQUALIFIED OPTION AND INCENTIVE AWARD PLAN

SECTION 1

PURPOSE OF PLAN; DEFINITIONS

1.1 Purpose. The purpose of the Plan is (a) to reinforce the long-term commitment to the Company’s success of those Non-Officer Directors, officers, directors, employees, advisors, service providers, consultants and other personnel who are or will be responsible for such success; to facilitate the ownership of the Company’s stock by such individuals, thereby reinforcing the identity of their interests with those of the Company’s stockholders; to assist the Company in attracting and retaining individuals with experience and ability, (b) to compensate the Manager for its successful efforts in raising capital for the Company and to provide performance-based compensation in order to provide incentive to the Manager to enhance the value of the Company’s Stock and (c) to benefit the Company’s stockholders by encouraging high levels of performance by individuals whose performance is a key element in achieving the Company’s continued success. The Plan was adopted by the Board as of April 7, 2016.

1.2 Definitions. For purposes of the Plan, the following terms shall be defined as set forth below:

(a) “Award” or “Awards” means an award described in Section 5 hereof.

(b) “Award Agreement” means an agreement described in Section 6 hereof entered into between the Company and a Participant, setting forth the terms, conditions and any limitations applicable to the Award granted to the Participant.

(c) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

(d) “Board” means the Board of Directors of the Company.

(e) “Change in Control” of the Company shall be deemed to have occurred if an event set forth in any one of the following paragraphs (i)-(iii) shall have occurred unless prior to the occurrence of such event, the Board determines that such event shall not constitute a Change in Control:

		(i)	any Person is or becomes a Beneficial Owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the then outstanding securities of the Company, excluding (A) any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (x) of paragraph (ii) below, and (B) any Person who becomes such a Beneficial Owner through the issuance of such securities with respect to purchases made directly from the Company; or

		(ii)	there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than (x) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) fifty percent (50%) or more of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (y) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the then outstanding securities of the Company; or

		(iii)	the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the assets of the Company.

For each Award that constitutes deferred compensation under Section 409A of the Code, to the extent required to avoid additional tax or other penalty, a Change in Control shall be deemed to have occurred under the Plan with respect to such Award only if a change in the ownership or effective control of the Company or a change in ownership of a substantial portion of the assets of the Company shall also be deemed to have occurred under Section 409A of the Code.

 

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(f) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto.

(g) “Commission” means the Securities and Exchange Commission.

(h) “Committee” means any committee the Board may appoint to administer the Plan. To the extent necessary and desirable, the Committee shall be composed entirely of individuals who meet the qualifications referred to in Section 162(m) of the Code and Rule 16b-3 under the Exchange Act. If at any time or to any extent the Board shall not administer the Plan, then the functions of the Board specified in the Plan shall be exercised by the Committee.

(i) “Company” means Newcastle Investment Corp., a Maryland corporation.

(j) “Disability” means, with respect to any Participant, that such Participant (i) as determined by the Participant’s employer or service recipient (such determination to be approved by the Committee) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering such Participant.

(k) “Effective Date” means the date provided pursuant to Section 10.

(l) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(m) “Fair Market Value” means, as of any given date, (i) the closing price of a share of the Company’s Stock on the principal exchange on which shares of the Company’s Stock are then trading, if any, on the trading day previous to such date, or, if stock was not traded on the trading day previous to such date, then on the next preceding trading day during which a sale occurred; or (ii) if such Stock is not traded on an exchange but is quoted on NASDAQ or a successor quotation system, (x) the last sales price (if the Stock is then listed as a National Market Issue under the NASDAQ National Market System) or (y) the mean between the closing representative bid and asked prices (in all other cases) for the Stock on the trading day previous to such date as reported by NASDAQ or such successor quotation system; or (iii) if such Stock is not publicly traded on an exchange and not quoted on NASDAQ or a successor quotation system, the mean between the closing bid and asked prices for the Stock, on the day previous to such date, as determined in good faith by the Committee; or (iv) if the Stock is not publicly traded, the fair market value established by the Committee using any reasonable method and acting in good faith.

(n) “Manager” means FIG LLC, a Delaware limited liability company, or any Person who shall succeed as manager as permitted by that certain Amended and Restated Management and Advisory Agreement, dated as of April 25, 2013, between the Company and FIG LLC, as amended from time to time.

(o) “Manager Awards” means the Awards granted to the Manager as described in Section 5.5 hereof.

(p) “Non-Officer Director” means a director of the Company who is not an officer or employee of the Company.

(q) “Non-Officer Director Option” shall have the meaning set forth in Section 5.6.

(r) “Non-Officer Director Stock” shall have the meaning set forth in Section 5.6.

(s) “Option” means any option relating to shares of Stock granted pursuant to the Plan. The Options granted hereunder are not intended to qualify as “incentive stock options” within the meaning of Section 422 of the Code.

(t) “Participant” means any Person selected by the Committee, pursuant to the Committee’s authority in Section 2 below, to receive Awards, including but not limited to (i) any Non-Officer Director, (ii) the Manager and its affiliates and (iii) any director, officer or employee of the Company, any parent, affiliate or subsidiary of the Company, or the Manager or any of its affiliates and (iv) any consultant, service provider or advisor to the Company, any parent, affiliate or subsidiary of the Company, or the Manager or any of its affiliates.

(u) “Person” shall have the meaning set forth in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof.

 

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(v) “Plan” means this 2016 Newcastle Investment Corp. Nonqualified Option and Incentive Award Plan, as amended from time to time.

(w) “Restricted Stock” means Stock as described in Section 5.3 hereof.

(x) “Stock” means the common stock, par value $0.01 per share, of the Company.

(y) “Stock Appreciation Right” shall have the meaning set forth in Section 5.2 hereof.

(z) “Tandem Awards” shall have the meaning set forth in Section 5.5 herein.

SECTION 2

ADMINISTRATION

2.1 Administration. The Plan shall be administered in accordance with the requirements of Section 162(m) of the Code (but only to the extent necessary and desirable to maintain qualification of Awards under the Plan under Section 162(m) of the Code) and, to the extent applicable, Rule 16b-3 under the Exchange Act (“Rule 16b-3”), by the Board or, at the Board’s sole discretion, by the Committee, which shall be appointed by the Board, and which shall serve at the pleasure of the Board. The Plan is intended to be exempt from, or to comply with, and shall be administered in a manner that is intended to be exempt from, or comply with, Section 409A of the Code and shall be construed and interpreted in accordance with such intent, to the extent subject thereto. To the extent that an Award and/or issuance and/or payment of an Award is subject to Section 409A of the Code, it shall be awarded and/or issued or paid in a manner that will comply with Section 409A of the Code, including any applicable regulations or guidance issued by the Secretary of the United States Treasury Department and the Internal Revenue Service with respect thereto.

2.2 Duties and Powers of Committee. The Committee shall have the power and authority to grant Awards to Participants pursuant to the terms of the Plan, and, in its discretion, to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from time to time deem advisable; to interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan. All decisions made by the Committee pursuant to the provisions of the Plan shall be final, conclusive and binding on all Persons.

In particular, the Committee shall have the authority to determine, in a manner consistent with the terms of the Plan:

(a) in addition to the Manager and the Non-Officer Directors, those Participants who shall receive Awards under the Plan;

(b) subject to Section 3, the number of shares of Stock to be covered by each Option granted hereunder;

(c) the terms and conditions of any Award granted hereunder, including, subject to the requirements of Section 409A, the waiver or modification of any such terms or conditions, consistent with the provisions of the Plan (including, but not limited to, Section 7 of the Plan); and

(d) the terms and conditions which shall govern all the Award Agreements, including the waiver or modification of any such terms or conditions.

2.3 Majority Rule. The Committee shall act by a majority of its members in attendance at a meeting at which a quorum is present or by a memorandum or other written instrument signed by all members of the Committee.

2.4 Delegation of Authority. To the extent permitted by applicable law, the Committee or the Board may from time to time delegate to one or more Persons the authority to take administrative actions pursuant to this Section 2. Any delegation hereunder shall be subject to the restrictions and limitations that the Committee specifies at the time of such delegation, and the Committee may at any time rescind the authority so delegated or appoint a new delegatee.

2.5 Compensation; Professional Assistance; Good Faith Actions. Members of the Committee may receive such compensation for their services as members as may be determined by the Board. All expenses and liabilities that members of the Committee or Board may incur in connection with the administration of this Plan shall be borne by the Company. The Committee may, with the approval of the Board, employ attorneys, consultants, accountants, appraisers, brokers or other Persons. The Committee, the Board, the Company and any officers and directors of the Company shall be entitled to rely upon the advice, opinions or valuations of any such Persons. All actions taken and all interpretations and determinations made by the Committee or Board in good faith shall be final and binding upon all Participants, the Company and all other interested persons. No member of the Committee or Board shall be personally liable for any action, determination or interpretation made in good faith with respect to this Plan or any Award, and all members of the Committee and Board shall be fully protected and indemnified to the fullest extent permitted by law, by the Company, in respect of any such action, determination or interpretation.

 

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SECTION 3

STOCK SUBJECT TO PLAN

3.1 Number of and Source of Shares. The maximum number of shares of Stock reserved and available for issuance under the Plan shall not exceed 300,000, as increased on the date of any equity issuance by the Company during the term of the Plan by a number of shares of Stock equal to ten percent (10%) of the total number of equity securities issued by the Company in such equity issuance. The Stock which may be issued pursuant to an Award under the Plan may be treasury Stock, authorized but unissued Stock, or Stock acquired, subsequently or in anticipation of the transaction, in the open market to satisfy the requirements of the Plan. Awards may consist of any combination of such Stock, or, at the election of the Company, cash. The aggregate number of shares of Stock as to which Awards may be granted during the term of the Plan to any Participant who is a Non-Officer Director may not be greater than 300,000. The aggregate number of shares of Stock as to which Awards may be granted during any calendar year to any Participant who is a “covered employee” for purposes of Section 162(m) of the Code during such calendar year may not be greater than 300,000.

3.2 Effect of Awards.  The grant of any full value Award (i.e., an Award other than an Option or Stock Appreciation Right) shall be deemed, for purposes of determining the number of shares of Stock available for issuance under Section 3.1, as an Award of 1.5 shares of Stock for each such share of Stock actually subject to the Award. The grant of an Option or Stock Appreciation Right shall be deemed, for purposes of determining the number of shares of Stock available for issuance under Section 3.1, as an Award of one share of Stock for each such share of Stock actually subject to the Award.

3.3 Unrealized and Tandem Awards. If any shares of Stock subject to an Award are forfeited, cancelled, exchanged or surrendered or if an Award otherwise terminates or expires without a distribution of shares to the Participant, the shares of Stock with respect to such Award shall, to the extent of any such forfeiture, cancellation, exchange, surrender, termination or expiration, again be available for grants under the Plan. The grant of a Tandem Award (as defined herein) shall not reduce the number of shares of Stock reserved and available for issuance under the Plan.

3.4 Adjustment of Awards. Upon the occurrence of any event which affects the shares of Stock in such a way that an adjustment of outstanding Awards is appropriate in order to prevent the dilution or enlargement of rights under the Awards (including, without limitation, any extraordinary dividend or other distribution (whether in cash or in kind), recapitalization, stock split, reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share exchange, or other similar corporate transaction or event), the Committee shall make appropriate equitable adjustments, which may include, without limitation, adjustments to any or all of the number and kind of shares of Stock (or other securities) which may thereafter be issued in connection with such outstanding Awards and adjustments to any exercise price specified in the outstanding Awards and shall also make appropriate equitable adjustments to the number and kind of shares of Stock (or other securities) authorized by or to be granted under the Plan. Such other substitutions or adjustments shall be made respecting Awards hereunder as may be determined by the Committee, in its sole discretion. In connection with any event described in this paragraph, the Committee may provide, in its discretion, for the cancellation of any outstanding Award and payment in cash or other property in exchange therefor, equal to the difference, if any, between the fair market value of the Stock or other property subject to the Award, and the exercise price, if any.

SECTION 4

ELIGIBILITY

Each Participant shall be eligible to receive Awards under the Plan. Additional Participants under the Plan may be selected from time to time by the Committee, in its sole discretion, and the Committee shall determine, in its sole discretion, the number of shares covered by each Award.

 

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SECTION 5

AWARDS

Awards may include, but are not limited to, those described in this Section 5. The Committee may grant Awards singly, in tandem or in combination with other Awards, as the Committee may in its sole discretion determine.

5.1 Options. Except as provided in any Award Agreement, an Option represents the right to receive in respect of each share of Stock subject to the Option, on the date of exercise of such Option, an amount in cash equal to the excess of the Fair Market Value of a share of Stock on the date of exercise over the per share exercise price of such Option, less any applicable tax withholdings. The Award Agreement may provide for the settlement of an Option in shares of Stock, subject to the terms and conditions set forth in the Award Agreement.

(a) An Option may be exercised, in whole or in part, by giving written notice of exercise to the Company, specifying the number of shares of Stock with respect to which the Option is being exercised.

(b) If settled in shares of Stock, the exercise price of the Option may be paid in cash or its equivalent, as determined by the Committee. As determined by the Committee, in its sole discretion, or as otherwise set forth in Sections 5.5(b) and 5.5(c) below, payment in whole or in part may also be made (i) by means of any cashless exercise procedure approved by the Committee (including the withholding of shares of Stock otherwise issuable on exercise), or (ii) in the form of unrestricted Stock already owned by the Participant which has a Fair Market Value on the date of surrender equal to the aggregate option price of the Stock as to which such Option shall be exercised. No fractional shares of Stock will be issued or accepted.

5.2 Stock Appreciation Rights. A Stock Appreciation Right is a right to receive, upon surrender of the right, an amount payable in cash and/or shares of Stock under such terms and conditions as the Committee shall determine.

(a) A Stock Appreciation Right may be granted in tandem with part or all of (or in addition to, or completely independent of) an Option or any other Award under this Plan. A Stock Appreciation Right issued in tandem with an Option may be granted at the time of grant of the related Option or at any time thereafter during the term of the Option.

(b) The amount payable in cash and/or shares of Stock with respect to each right shall be equal in value to a percentage (including up to 100%) of the amount by which the Fair Market Value per share of Stock on the exercise date exceeds the Fair Market Value per share of Stock on the date of grant of the Stock Appreciation Right. The applicable percentage shall be established by the Committee. The Award Agreement may state whether the amount payable is to be paid wholly in cash, wholly in shares of Stock, or in any combination of the foregoing; if the Award Agreement does not so state the manner of payment, the Committee shall determine such manner of payment at the time of payment. The amount payable in shares of Stock, if any, is determined with reference to the Fair Market Value per share of Stock on the date of exercise.

(c) Stock Appreciation Rights issued in tandem with Options shall be exercisable only to the extent that the Options to which they relate are exercisable. Upon exercise of the tandem Stock Appreciation Right, and to the extent of such exercise, the Participant’s underlying Option shall automatically terminate. Similarly, upon the exercise of the tandem Option, and to the extent of such exercise, the Participant’s related Stock Appreciation Right shall automatically terminate.

5.3 Restricted Stock. Restricted Stock is Stock that is issued to a Participant and is subject to such terms, conditions and restrictions as the Committee deems appropriate, which may include, but are not limited to, restrictions upon the sale, assignment, transfer or other disposition of the Restricted Stock and the requirement of forfeiture of the Restricted Stock upon termination of employment or service under certain specified conditions. The Committee may provide for the lapse of any such term or condition or waive any term or condition based on such factors or criteria as the Committee may determine. Subject to the restrictions stated in this Section 5.3 and in the applicable Award Agreement, the Participant shall have, with respect to Awards of Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the Restricted Stock and the right to receive any cash or stock dividends on such Stock. The Company may require that any stock certificates evidencing Restricted Stock granted hereunder be held in the custody of the Company until the restrictions thereon shall have lapsed, and that, as a condition of any award of Restricted Stock, the Participant shall have delivered a stock power, endorsed in blank, relating to the Stock covered by such award.

5.4 Performance Awards. Performance Awards may be granted under this Plan from time to time based on such terms and conditions as the Committee deems appropriate provided that such Awards shall not be inconsistent with the terms and purposes of this Plan. Performance Awards are Awards which are contingent upon the performance of all or a portion of the Company and/or its subsidiaries and/or which are contingent upon the individual performance of a Participant. Performance Awards may be in the form of performance units, performance shares and such other forms of Performance Awards as the Committee shall determine. The Committee shall determine the performance measurements and criteria for such Performance Awards. The Company may require that any stock certificates evidencing Performance Awards granted hereunder be held in the custody of the Company until the restrictions thereon shall have lapsed, and that, as a condition of any award of Performance Awards, the Participant shall have delivered a stock power, endorsed in blank, relating to the Stock covered by such award.

 

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5.5 Manager Awards and Tandem Awards.

(a) Grant of Manager Awards. As consideration for the Manager’s role in raising capital for the Company, the Manager may be awarded Options in connection with any equity issuance by the Company, relating to that number of shares of Stock up to ten percent (10%) of the equity securities issued by the Company in such equity issuance, subject to the proviso contained in Section 5.5(f) below.

(b) Terms of Manager Awards. The Options referred to in clause (a) above shall be 100% vested as of the date of grant and become exercisable as to 1/30th of the Stock subject to the Options on the first day of each of the following 30 calendar months following the date of grant. Such Options shall expire on the tenth anniversary of the date of grant. Such Options shall have a per share price equal to the offering price of the equity issuance in connection with which such Options are awarded (as determined by the Committee), subject to adjustment as set forth in Section 3.4 hereof. If settled in shares of Stock, the exercise price of such Options may be paid in cash or its equivalent, as determined by the Committee. Payment in whole or in part may also be made by the following cashless exercise procedures: (i) by withholding from shares of Stock otherwise issuable upon exercise of such Option, (ii) in the form of unrestricted Stock already owned by the Manager which has a Fair Market Value on the date of surrender equal to the aggregate option price of the Stock as to which such Option shall be exercised or (iii) by means of any other cashless exercise procedure approved by the Committee. No fractional shares of Stock will be issued or accepted. The Award Agreement with respect to such Options shall also set forth the vesting and exercise schedule of such Options and such other terms and conditions with respect to such Options and the delivery of shares of Company Stock subject to such Options as the Committee may determine.

(c) Each of the Committee and/or the Manager shall have the authority to direct awards of Options to such employees of the Manager who act as officers of or perform other services for the Company, which options shall be tandem to the Options that are the subject of outstanding Manager Awards designated by the Manager—i.e., shares of Stock relating to Options that are subject to certain designated Manager Awards would alternatively relate to Options that are the subject of the tandem awards granted to Persons who perform services for or on behalf of the Company, provided that such shares of Stock may relate to either the designated Manager Awards or the tandem awards but not both (the “Tandem Awards”). As determined by the Manager, in its sole discretion, if a Tandem Award is settled in shares of Stock, payment of the exercise price of such Tandem Award in whole or in part may be made by the following cashless exercise procedures: (i) by withholding from shares of Stock otherwise issuable upon exercise of such Tandem Award, (ii) in the form of unrestricted Stock already owned by the holder of such Tandem Award which has a Fair Market Value on the date of surrender equal to the aggregate option price of the Stock as to which such Tandem Award shall be exercised or (iii) by means of any other cashless exercise procedure approved by the Committee.

(d) As a condition to the grant of Tandem Awards, the Manager shall be required to agree that so long as such Tandem Awards remain outstanding, it will not exercise any Options under any designated Manager Award that are related to the options under such outstanding Tandem Awards. If Options under a Tandem Award are forfeited, expire or are cancelled without being exercised, the related Options under the designated Manager Award shall again become exercisable in accordance with its terms. Upon the exercise of Options under a Tandem Award, the related Options under the designated Manager Award shall terminate.

(e) The terms and conditions of each such Tandem Awards (e.g., the per share exercise price, the schedule of vesting, exercisability and form of settlement, etc.) shall be determined by the Committee or the Manager, as the case may be, in its sole discretion and shall be included in an Award Agreement, provided, that the term of such award may not be greater than the term of its related Manager Award.

(f) Other Awards. The Committee may, from time to time, grant such Awards to the Manager as the Committee deems advisable in order to provide additional incentive to the Manager to enhance the value of the Company’s Stock; provided, however, that no Award shall be awarded to the Manager (or its designee) in connection with any equity issuance by the Company which relates to, or provides for the acquisition of, a number of equity securities in excess of ten percent (10%) of the maximum number of equity securities then being proposed to be issued by the Company.

(g) Change in Control Provisions.  Notwithstanding anything herein, in no event will any Awards granted to the Manager under this Plan or any Tandem Awards that are outstanding immediately prior to the occurrence of a Change in Control become vested or exercisable solely as a result of the occurrence of such Change in Control.

 

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(h) Termination Provisions.  Notwithstanding anything herein, unless otherwise provided in any Award Agreement to the contrary, upon a termination of the Manager’s services to the Company for any reason, including a termination that occurs upon or following the occurrence of a Change in Control, (i) all Awards granted to the Manager pursuant to this Plan shall become immediately and fully exercisable, and (ii) all Tandem Awards shall be governed by the terms and conditions of the applicable Award Agreements.

(i) Registration Rights Agreement. The Company shall, upon the Manager’s reasonable request, (i) use commercially reasonable efforts to register under the Securities Act of 1933, as amended (the “Securities Act”) the securities that may be issued and sold under the Plan or the resale of such securities issued and sold pursuant to the Plan or (ii) enter into a registration rights agreement with the Manager on terms to be mutually agreed upon between the parties.

5.6 Automatic Non-Officer Director Awards.

(a) Initial Grant of Non-Officer Director Option. Each Non-Officer Director shall be granted an Option, which shall be fully vested as of the date of the grant, relating to three hundred thirty-three (333) shares of Stock (each, a “Non-Officer Director Option”) upon the date of the first Board of Director’s meeting attended by such Non-Officer Director. The option price per share of Stock under the Non-Officer Director Option shall be 100% of the Fair Market Value of the Stock on the date of grant.

(b) 2016 Grant of Stock. On the first business day after the 2016 annual stockholders’ meeting of the Company, each Non-Officer Director shall be granted that number of shares of Stock, the Fair Market Value of which shall equal an amount to be determined by the Committee on the date of grant and which shall be fully vested as of such date (also, the “Non-Officer Director Stock”).

(c) Stock Availability. In the event that the number of shares of Stock available for grant under the Plan is not sufficient to accommodate the Awards of Non-Officer Director Options and Non-Officer Director Stock, then the remaining shares of Stock available for such automatic awards shall be granted to each Non-Officer Director who is to receive such an award on a pro-rata basis. No further grants shall be made until such time, if any, as additional shares of Stock become available for grant under the Plan through action of the Board or the stockholders of the Company to increase the number of shares of Stock that may be issued under the Plan or through cancellation or expiration of Awards previously granted hereunder.

(d) Term; Method of Exercise of Non-Officer Director Option. Each Non-Officer Director Option shall cease to be exercisable no later than the date that is ten (10) years following the date of grant. If settled in shares of Stock, the exercise price of such Options may be paid in cash or its equivalent, as determined by the Committee. As determined by the Committee, in its sole discretion, payment in whole or in part may also be made (i) by means of any cashless exercise procedure approved by the Committee (including the withholding of shares of Stock otherwise issuable on exercise), or (ii) in the form of unrestricted Stock already owned by the Non-Officer Director which has a Fair Market Value on the date of surrender equal to the aggregate option price of the Stock as to which such Option shall be exercised. No fractional shares of Stock will be issued or accepted.

(e) Award Agreements. Each recipient of a Non-Officer Director Option and Non-Officer Director Stock shall enter into an Award Agreement with the Company, which agreement shall set forth, among other things, the exercise price, the term and provisions regarding exercisability and form of settlement of the Non-Officer Director Option, or, as applicable, the number of shares of Non-Officer Director Stock awarded hereunder, which provisions shall not be inconsistent with the terms of this Section 5.6 and Section 6.1. The Award Agreement with respect to such Non-Officer Director Option and Non-Officer Director Stock shall also set forth such other terms and conditions with respect to Awards to the Non-Officer Director as the Committee may determine.

5.7 Other Awards.

The Committee may from time to time grant to its Non-Officer Directors or any other Participants shares of Stock, other Stock-based and non-Stock-based Awards under the Plan, including without limitation those Awards pursuant to which shares of Stock are or may in the future be acquired, Awards denominated in Stock, securities convertible into Stock, phantom securities, dividend equivalents and cash. The Committee shall determine the terms and conditions of such other Stock, Stock-based and non-Stock-based Awards provided that such Awards shall not be inconsistent with the terms and purposes of this Plan.

 

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SECTION 6

AWARD AGREEMENTS

Each Award under this Plan shall be evidenced by an Award Agreement setting forth the number of shares of Stock or other securities, and such other terms and conditions applicable to the Award (and not inconsistent with this Plan) as are determined by the Committee.

6.1 Terms of Award Agreements. Award Agreements may include the following terms:

(a) Term. The term of each Award (as determined by the Committee); provided that, no Award shall be exercisable more than ten years after the date such Award is granted.

(b) Exercise Price. The exercise price per share of Stock purchasable under an Award (as determined by the Committee in its sole discretion at the time of grant); provided that, the exercise price shall not be less than the par value of the Stock provided, further, that Awards intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, or exempt from application of Section 409A of the Code under Section 1.409A-1(b)(5)(A), shall not be less than 100% of the Fair Market Value of the Stock on such date.

(c) Exercisability. Provisions regarding the exercisability of Awards (which shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee at or after grant).

(d) Method of Exercise. Provisions describing the method of exercising Awards.

(e) Delivery. Provisions regarding the timing of the delivery of Stock subject to Awards. The Award Agreements may provide that such delivery will be delayed to the extent required to avoid the imposition of a tax under Section 409A of the Code.

(f) Termination of Employment or Service. Provisions describing the treatment of an Award in the event of the retirement, Disability, death or other termination of a Participant’s employment or service with the Company, including but not limited to, terms relating to the vesting, time for exercise, forfeiture and cancellation of an Award in such circumstances.

(g) Rights as Stockholder. A provision that a Participant shall have no rights as a stockholder with respect to any securities covered by an Award until the date the Participant becomes the holder of record. Except as provided in Section 3.4 hereof, no adjustment shall be made for dividends or other rights, unless the Award Agreement specifically requires such adjustment, in which case, grants of dividend equivalents or similar rights shall not be considered to be a grant of any other stockholder right.

(h) Nontransferability. A provision that except under the laws of descent and distribution or as otherwise permitted by the Committee, in its sole discretion, or, in respect of Manager Awards, grants of Tandem Awards, the Participant shall not be permitted to sell, transfer, pledge or assign any Award, and all Awards shall be exercisable, during the Participant’s lifetime, only by the Participant; provided, however, that the Participant shall be permitted to transfer one or more Options to a trust controlled by the Participant during the Participant’s lifetime for estate planning purposes.

(i) Other Terms. Such other terms as are necessary and appropriate to effectuate an Award to the Participant, including but not limited to, (1) vesting provisions, (2) deferral elections, (3) any requirements for continued employment or service with the Company, (4) any requirement to execute a general release of claims in a form acceptable to the Company prior to the lapse of any restrictions or conditions on such Award or such Award becoming exercisable, (5) any other restrictions or conditions (including performance requirements) on the Award and the method by which restrictions or conditions lapse, (6) effect on the Award of a Change in Control, (7) the right of the Company and such other Persons as the Committee shall designate (“Designees”) to repurchase from a Participant, and such Participant’s permitted transferees, all shares of Stock issued or issuable to such Participant in connection with an Award in the event of such Participant’s termination of employment or service, (8) rights of first refusal granted to the Company and Designees, if any, (9) holdback and other registration right restrictions in the event of a public registration of any equity securities of the Company and (10) any other terms and conditions which the Committee shall deem necessary and desirable.

 

8

SECTION 7

AMENDMENT AND TERMINATION

The Board may at any time and from time-to-time alter, amend, suspend, or terminate the Plan in whole or in part; provided that, no amendment which requires stockholder approval in order for the Plan to comply with a rule or regulation deemed applicable by the Committee, shall be effective unless the same shall be approved by the requisite vote of the stockholders of the Company entitled to vote thereon. Notwithstanding the foregoing, no amendment shall affect adversely any of the rights of any Participant, without such Participant’s consent, under any Award or Loan theretofore granted under the Plan.

SECTION 8

UNFUNDED STATUS OF PLAN

The Plan is intended to constitute an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company.

SECTION 9

GENERAL PROVISIONS

9.1 Securities Laws Compliance. Shares of Stock shall not be issued pursuant to the exercise of any Award granted hereunder unless the exercise of such Award and the issuance and delivery of such shares of Stock pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act and the requirements of any stock exchange upon which the Stock may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

9.2 Legends. If an Option is settled in shares of Stock, the Committee may require each Person purchasing shares pursuant to such Option to represent to and agree with the Company in writing that such Person is acquiring the Stock subject thereto without a view to distribution thereof. Such Stock may include any legend which the Committee deems appropriate to reflect any restrictions on transfer.

9.3 Transfer Restrictions. All shares of Stock delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Commission, any stock exchange upon which the Stock is then listed, and any applicable federal or state securities law, and the Committee may cause a legend or legends to be placed on any such shares to make appropriate reference to such restrictions.

9.4 Company Actions; No Right to Employment. Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is necessary and desirable; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of the Plan shall not confer upon any employee, consultant, service provider or advisor of the Company any right to continued employment or service with the Company, as the case may be, nor shall it interfere in any way with the right of the Company to terminate the employment or service of any of its employees, consultants or advisors at any time.

9.5 Section 409A of the Code. The intent of the parties is that payments and benefits under the Plan be exempt from, or comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and be administered to be in compliance therewith. Any payments described in the Plan that are due within the “short-term deferral period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless applicable law requires otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan or any other agreement between the Company and the Participant during the six (6) month period immediately following the Participant’s termination of employment shall instead be paid on the first business day after the date that is six (6) months following the Participant’s separation from service (or upon the Participant’s death, if earlier). In addition, for purposes of the Plan, each amount to be paid or benefit to be provided to the Participant pursuant to the Plan, which constitute deferred compensation subject to Section 409A of the Code, shall be construed as a separate identified payment for purposes of Section 409A of the Code.

 

9

9.6 Payment of Taxes. Each Participant shall, no later than the date as of which the value of an Award first becomes includible in the gross income of the Participant for federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee regarding payment of, any federal, state, or local taxes of any kind required by law to be withheld with respect to the Award. The obligations of the Company under the Plan shall be conditional on the making of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant.

9.7 Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of Maryland, without giving effect to the principles of conflicts of law of such state.

SECTION 10

EFFECTIVE DATE OF PLAN

The Plan became effective (the “Effective Date”) on April 7, 2016, the date the Board originally approved the Plan.

SECTION 11

TERM OF PLAN

No Award other than a Tandem Award shall be granted pursuant to the Plan on or after the first anniversary of the Effective Date, but Awards theretofore granted may extend beyond that date.

 

10Exhibit 10.1

 

SECURITIES PURCHASE
AGREEMENT

 

THIS SECURITIES PURCHASE
AGREEMENT (this “Agreement”) is made as of May 11, 2016, by and between Oncobiologics, Inc., a Delaware
corporation (the “Company”), and Sabby Healthcare Master Fund Ltd., a Cayman Islands exempted corporation
(“Purchaser”).

 

Recitals

 

A.          The
Company is planning to offer and sell units of the Company (the “Units”), each Unit consisting of one share
of common stock, par value $0.01 per share (the “Common Stock”), of the Company, one-half of a Series A warrant
to purchase one share of Common Stock (collectively, the “Series A Warrants”) and one-half of a Series B warrant
to purchase one share of Common Stock (the “Series B Warrants” and together with the Series A Warrants, the
“Warrants”) in an underwritten initial public offering (the “IPO”) pursuant to the Company’s
registration statement on Form S-1 (File No. 333-209011) (the “Registration Statement”) and an underwriting
agreement (the “Underwriting Agreement”) by and among the Company and Jefferies LLC, and Barclays Capital Inc.,
as representatives of the several underwriters listed therein (together, the “Underwriters”).

 

B.          The
Company and Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act of 1933, as amended (codified at 15 U.S.C. Sec. 77a et seq., and hereinafter
the “Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated
by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act.

 

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

 

Article
1

DEFINITIONS

 

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

 

“Affiliate”
means a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common
control with, the person specified.

 

“Closing Date”
means the third (3rd) trading day after the trading day on which the Underwriting Agreement has been executed and delivered
by all parties thereto.

 

“Company Covered
Person” means, with respect to the Company as an “issuer” for purposes of Rule 506 promulgated under the
Securities Act, any Person listed in the first paragraph of Rule 506(d)(1).

 

    	 	1.	 

     

    

 

“Company’s
Knowledge” means the knowledge of the executive officers (as defined in Rule 405 under the Securities Act) of the
Company, after due inquiry, assuming the diligent exercise of such officers’ duties.

 

“Material Adverse
Effect” means a material adverse effect on the business, assets (including intangible assets), liabilities, financial
condition, property, or results of operations of the Company.

 

“Material Contract”
means any contract of the Company that has been filed or was required to have been filed as an exhibit to the Registration Statement
pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

 

“Preliminary Prospectus”
means the most recent preliminary prospectus included in the Registration Statement at the time of effectiveness of the Registration
Statement.

 

“Prospectus”
means the final prospectus filed by the Company pursuant to Rule 424 under the Securities Act relating to the IPO.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

 

“Trading Day”
means any day on which the NASDAQ Global Market or the principal securities exchange upon which the Common Stock is listed is open
for trading.

 

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

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the
volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable,
(c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then
reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the
Purchaser of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses
of which shall be paid by the Company.

 

    	 	2.	 

     

    

 

Article
2

PURCHASE AND SALE

 

2.1         Closing.

 

(a)          Amount.
Subject to the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to Purchaser,
and Purchaser shall purchase from the Company, such number of shares of Common Stock (the “Shares”) equal to
the quotient resulting from dividing (i) $5,000,000 (the “Subscription Amount”) by (ii) the public
offering price of one Unit in the IPO (the “Per Share Purchase Price”), with any fraction of a share rounded
down to the nearest whole share. For each Share purchased by Purchaser, the Company shall issue to Purchaser one-half of a Series
A Warrant and one-half of a Series B Warrant; provided that such Warrants will not be exercisable until the date (the “Exercise
Date”) that is the earlier of (x) the date the Resale Registration Statement referenced in Section 2.2(c) is declared
effective and (y) the date that is six (6) months from Closing Date, and the term of such Warrants shall be extended accordingly
(i.e., 9 months from the Exercise Date for the Series A Warrants and 24 months from the Exercise Date for the Series B Warrants).
The Shares, the Warrants and the shares of Common Stock underlying the Warrants (the “Warrant Shares”) purchased
by Purchaser shall be referred to collectively as the “Securities.”

 

(b)          Closing.
The purchase and sale of the Securities shall be contingent on and take place concurrently with the closing of the IPO and
remotely via the exchange of documents and signatures or at such other time and place as the parties may mutually agree upon, orally
or in writing (which time and place are designated as the “Closing”).

 

(c)          IRA
Joinder. In connection with the Closing, if Purchaser is not already a party, Purchaser shall deliver to the Company a signed
counterpart signature page to the Investor Rights Agreement, dated as of March 10, 2014, as amended to date (the “Rights
Agreement”), by and between the Company and the investors party thereto, in the form prepared by Company.

 

2.2         Registration
Rights. 

 

(a)          Timing.
The Company agrees to file a registration statement covering the offer and re-sale of the Securities (the “Resale
Registration Statement”) within 45 days after the Closing (the “Filing Date”) and that the Resale
Registration Statement shall be declared effective by the Commission within 75 days after the Closing, if there is no review of
the Resale Registration Statement by the Commission, or 105 days after Closing, if there is a Commission review (the applicable
date, the “Effectiveness Date”). The Company shall not be required to maintain the effectiveness of the Resale
Registration Statement if (a) the Securities have been disposed of by Purchaser in accordance with such effective Resale Registration
Statement, (b) such Securities have been previously sold in accordance with Rule 144, or (c) such Securities become eligible for
resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 (assuming that
such securities and any securities issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such Securities
were issued or are issuable, were at no time held by any affiliate of the Company), as reasonably determined by the Company, upon
the advice of counsel to the Company.

 

(b)          Liquidated
Damages. If: (i) the Resale Registration Statement is not filed on or prior to the Filing Date (if the Company files the Resale
Registration Statement

 

    	 	3.	 

     

    

 

without affording the Holders
the opportunity to review and comment on the same as required by Section 2.2(c) herein, the Company shall be deemed to have not
satisfied this clause (i)), or (ii) the Company fails to file with the Commission a request for acceleration of the Resale Registration
Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities Act, within five Trading Days of
the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that such Resale Registration
Statement will not be “reviewed” or will not be subject to further review, or (iii) prior to the effective date of
the Resale Registration Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments
made by the Commission in respect of such Resale Registration Statement within 10 Trading Days after the receipt of comments by
or notice from the Commission that such amendment is required in order for such Resale Registration Statement to be declared effective,
or (iv) the Resale Registration Statement registering for resale all of the Securities is not declared effective by the Commission
by the Effectiveness Date of the Resale Registration Statement, or (v) after the effective date of the Resale Registration Statement,
such Resale Registration Statement ceases for any reason to remain continuously effective as to all Securities included in the
Resale Registration Statement, or Purchaser is otherwise not permitted to utilize the prospectus therein to resell such Securities,
for more than ten (10) consecutive Trading Days or more than an aggregate of fifteen (15) Trading Days (which need not be consecutive
Trading Days) during any 12-month period (any such failure or breach being referred to as an “Event”, and for
purposes of clauses (i) and (iv), the date on which such Event occurs, and for purpose of clause (ii) the date on which such five
(5) Trading Day period is exceeded, and for purpose of clause (iii) the date which such ten (10) Trading Day period is exceeded,
and for purpose of clause (v) the date on which such ten (10) or fifteen (15) Trading Day period, as applicable, is exceeded being
referred to as “Event Date”), then, in addition to any other rights Purchaser may have hereunder or under applicable
law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been
cured by such date) until the applicable Event is cured, the Company shall pay to Purchaser an amount in cash, as partial liquidated
damages and not as a penalty, equal to the product of 2.0% multiplied by the aggregate Subscription Amount paid by Purchaser pursuant
to this Agreement. If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven days
after the date payable, the Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is
permitted to be paid by applicable law) to Purchaser, accruing daily from the date such partial liquidated damages are due until
such amounts, plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall
apply on a daily pro rata basis for any portion of a month prior to the cure of an Event.

 

(c)          Right
to Review. Not less than five (5) Trading Days prior to the filing of the Resale Registration Statement and not less than one
(1) Trading Day prior to the filing of any related prospectus or any amendment or supplement thereto, the Company shall (i) furnish
to Purchaser copies of all such documents proposed to be filed, which documents will be subject to the reasonable review of Purchaser,
and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries as
shall be necessary, in the reasonable opinion of counsel to Purchaser, to conduct a reasonable investigation within the meaning
of the Securities Act.

 

    	 	4.	 

     

    

 

(d)          Miscellaneous.
Sections 2.5 (Furnish Information), 2.7 (Delay of Registration), 2.8 (Indemnification) and 2.9 (Reports Under Exchange Act)
of the Rights Agreement are incorporated herein by reference and are deemed a part of this Agreement.

 

2.3         Delivery.
At the Closing, upon payment of the Subscription Amount by wire transfer to a bank account designated by the Company or by such
other methods as may be designated by the Company in writing to Purchaser no later than three (3) business days before the Closing,
the Company shall deliver to Purchaser evidence of the issuance of the Securities to Purchaser.

 

Article
3

REPRESENTATIONS AND WARRANTIES

 

3.1         Representations
and Warranties of the Company. The Company hereby represents and warrants as of the date hereof and the Closing Date (except
for the representations and warranties that speak as of a specific date, which shall be made as of such date) to Purchaser that:

 

(a)          Organization,
Good Standing, Corporate Power and Qualification. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as
presently conducted and as proposed to be conducted and to enter into the Transaction Documents to which it is a party. The Company
is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have
a Material Adverse Effect.

 

(b)          Authorization.
All corporate action required to be taken by the Company’s Board of Directors and stockholders in order to authorize
the Company to enter into the Transaction Documents, and to issue the Securities at the Closing, has been taken or will be taken
prior to the Closing. All action on the part of the officers of the Company necessary for the execution and delivery of the Transaction
Documents, the performance of all obligations of the Company under the Transaction Documents to be performed as of the Closing,
and the issuance and delivery of the Securities has been taken or will be taken prior to the Closing. The Transaction Documents,
when executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company, enforceable
against the Company in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or any other laws of general application relating to or affecting the enforcement of creditors’
rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other
equitable remedies.

 

(c)          Valid
Issuance of Shares.

 

(i)          The
Shares, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, will
be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under
the Transaction Documents, applicable state and federal securities laws and liens or encumbrances created by or imposed by

 

    	 	5.	 

     

    

 

Purchaser. The Warrants,
when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, will constitute
valid and binding obligations of the Company, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’
rights generally and to equitable principles of general applicability. Assuming the accuracy of the representations of Purchaser
in Section 3.2 and subject to the filings described in Section 3.1(d), the Securities will be issued in compliance
with all applicable federal and state securities laws.

 

(ii)         As
of the Closing Date, the Securities that are being purchased by Purchaser hereunder will conform to the description of the Common
Stock and the Warrants contained in the Prospectus. As of the Closing Date, the statements set forth in the Prospectus under the
caption “Description of Securities,” insofar as they purport to constitute a summary of the terms of the Securities,
are accurate, complete and fair in all material respects.

 

(iii)        No
“bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of Regulation D (a “Disqualification
Event”) is applicable to the Company or, to the Company’s Knowledge, any Company Covered Person, except as disclosed
to Purchaser.

 

(d)          Governmental
Consents and Filings. Assuming the accuracy of the representations made by Purchaser in Section 3.2, no consent, approval,
order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local
governmental authority is required on the part of the Company in connection with the consummation of the transactions contemplated
by this Agreement, except for filings pursuant to Regulation D and applicable state securities laws, which have been made or will
be made in a timely manner.

 

(e)          Compliance
with Other Instruments. The Company is not in violation or default (i) of any provisions of its certificate of incorporation
or bylaws, (ii) of any instrument, judgment, order, writ or decree, (iii) under any note, indenture or mortgage, (iv) under any
Material Contract, or (v) to the Company’s Knowledge, of any provision of federal or state statute, rule or regulation applicable
to the Company, the violation of which statute, rule or regulation would have a Material Adverse Effect. The execution, delivery
and performance of the Transaction Documents and the consummation of the transactions contemplated by the Transaction Documents
will not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice,
either (i) a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement; or (ii) an event
which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation,
forfeiture, or nonrenewal of any material permit or license applicable to the Company.

 

(f)           Registration
Statement and Prospectus. The Registration Statement as of the date when it is declared effective by the Commission will not
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein not misleading. The Preliminary Prospectus as of the date

 

    	 	6.	 

     

    

 

hereof does not include any
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make
the statements therein, in the light of the circumstances in which they were made, not misleading. The Prospectus, as of its date
and as of the date of the closing of the IPO, will not contain any untrue statement of material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances in which
they were made, not misleading.

 

(g)          Brokers
and Finders. Except as disclosed in the Registration Statement, no Person will have, as a result of the transactions contemplated
by this Agreement, any valid right, interest or claim against or upon the Company or Purchaser for any commission, fee or other
compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company.

 

(h)          Rights
Agreement. Attached as an exhibit to the Registration Statement is a complete and accurate copy of the Rights Agreement.

 

(i)           FINRA.
The Securities being offered and sold pursuant to this Agreement are not covered by the definition of “New issue” pursuant
to FINRA Rule 5130. The Company acknowledges that Purchaser is a “Restricted person” as defined in Rule 5130 and Purchaser
is relying on the Company’s representation as part of making its investment decision.

 

3.2         Representations
and Warranties of Purchaser. Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date (except
for the representations and warranties that speak as of a specific date, which shall be made as of such date) to the Company as
follows:

 

(a)          Authorization.
Purchaser has requisite corporate power and authority to enter into the Transaction Documents to which it is a party. The Transaction
Documents, when executed and delivered by Purchaser, will constitute valid and legally binding obligations of Purchaser, enforceable
in accordance with their terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or any other laws of general application relating to or affecting the enforcement of creditors’ rights generally,
and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(b)          Purchase
Entirely for Own Account. This Agreement is made with Purchaser in reliance upon Purchaser’s representation to the Company,
which, by Purchaser’s execution of this Agreement, Purchaser hereby confirms, that the Securities to be acquired by Purchaser
will be acquired for investment for Purchaser’s own account, not as a nominee or agent, and not with a view to the resale
or distribution of any part thereof, and that Purchaser has no present intention of selling, granting any participation in, or
otherwise distributing the same. By executing this Agreement, Purchaser further represents that Purchaser does not presently have
any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or
to any third Person with respect to any of the Securities.

 

(c)          Disclosure
of Information. Purchaser has had an opportunity to discuss the Company’s business, management, financial affairs and
the terms and conditions of the

 

    	 	7.	 

     

    

 

offering of the Securities
with the Company’s management. The foregoing, however, does not limit or modify the representations and warranties of the
Company in Section 3.1 or the right of Purchaser to rely thereon.

 

(d)          Restricted
Securities. Purchaser understands that the Securities have not been registered under the Securities Act, by reason of a specific
exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of
the investment intent and the accuracy of Purchaser’s representations as expressed herein. Purchaser understands that the
Securities are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to
these laws, Purchaser must hold the Securities indefinitely unless they are registered with the Commission and qualified by state
authorities, or an exemption from such registration and qualification requirements is available. Purchaser acknowledges that if
an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Securities, and on requirements relating to the Company which
are outside of Purchaser’s control, and which the Company is under no obligation and may not be able to satisfy. Purchaser
acknowledges that the Company filed the Registration Statement in connection with the IPO. Purchaser understands that this transaction
is not intended to be part of the IPO, and that Purchaser will not be able to rely on the protection of Section 11 of the Securities
Act with respect to the Securities and the transaction contemplated hereunder.

 

(e)          Legends.
Purchaser understands that the Securities and any securities issued in respect of or exchange for the Securities, may be notated
with one or all of the following legends:

 

(i)          “THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR PURSUANT TO AN EXEMPTION FROM SUCH REGISTRATION UNDER THE SECURITIES ACT OF 1933.”

 

(ii)         Any
legend set forth in, or required by, the other Transaction Documents.

 

(iii)        Any
legend required by the securities laws of any state to the extent such laws are applicable to the Securities represented by the
certificate, instrument, or book entry so legended.

 

(f)           Accredited
Investor. Purchaser is an “accredited investor” as defined in Rule 501(a) of Regulation D.

 

(g)          “Bad
Actor” Status. Purchaser is not a “bad actor” within the meaning of Rule 506(d) of Regulation D.

 

    	 	8.	 

     

    

 

(h)          No
General Solicitation. Neither Purchaser, nor any of its officers, directors, employees or agents, has either directly or indirectly,
including, through a broker or finder (i) engaged in any general solicitation, or (ii) published any advertisement, in each case,
in connection with the offer and sale of the Securities.

 

(i)           Access
to Information. Purchaser acknowledges that it has received all the information it considers necessary or appropriate for deciding
whether to purchase the Securities and has been afforded (i) the opportunity to ask such questions as it has deemed necessary
of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities
and the merits and risks of investing in the Securities; (ii) access to information about the Company and its respective financial
condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment;
and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable
effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries
nor any other investigation conducted by or on behalf of Purchaser or its representatives or counsel shall modify, amend or affect
Purchaser’s right to rely on the truth, accuracy and completeness of the Registration Statement and the Company’s representations
and warranties contained in the Transaction Documents.

 

(j)           Brokers
and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest
or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of Purchaser.

 

Article
4

CONDITIONS PRECEDENT TO CLOSING

 

4.1         Conditions
Precedent to the Obligations of Purchaser to Purchase Securities at the Closing. The obligation of Purchaser to acquire
Securities at the Closing is subject to the fulfillment to Purchaser’s satisfaction, on or prior to the Closing Date, of
each of the following conditions, any of which may be waived by Purchaser in writing:

 

(a)          Representations
and Warranties. The representations and warranties of the Company contained herein shall be true and correct in all material
respects (except for those representations and warranties which are qualified as to materiality, in which case such representations
and warranties shall be true and correct in all respects) as of the date of this Agreement and as of the Closing Date, as though
made on and as of the Closing Date, except for such representations and warranties that speak as of a specific date.

 

(b)          Performance.
The Company shall have performed and complied in all material respects with all agreements, obligations and conditions contained
in this Agreement that are required to be performed or complied with by it on or before the Closing and shall have obtained all
approvals, consents and qualifications necessary to complete the purchase and sale of the Securities described herein.

 

    	 	9.	 

     

    

 

(c)          Qualifications.
All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or
of any state that are required in connection with the lawful issuance and sale of the Securities pursuant to this Agreement shall
be duly obtained and effective as of the Closing, other than (i) the filing pursuant to Regulation D and (ii) the filings required
by applicable state “blue sky” securities laws, rules and regulations.

 

(d)          IPO
Units. The Underwriters shall have purchased, concurrent with the purchase of the Securities by Purchaser hereunder, the Firm
Units (as defined in the Underwriting Agreement) at the purchase price per unit set forth in the Underwriting Agreement.

 

(e)          Qualified
IPO. The IPO shall have satisfied the requirements of a “Qualified IPO” as defined in the Rights Agreement, and
in connection with which the Common Stock shall have been listed on the NASDAQ Global Market.

 

(f)           No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Transaction Documents.

 

4.2         Conditions
Precedent to the Obligations of the Company to Sell Securities at the Closing. The Company’s obligation to sell
and issue the Securities to Purchaser at the Closing is subject to the fulfillment to the satisfaction of the Company on or prior
to the Closing Date of the following conditions, any of which may be waived by the Company in writing:

 

(a)          Representations
and Warranties. The representations and warranties made by Purchaser in Section 3.2 hereof shall be true and correct
in all material respects as of the date of this Agreement, and as of the Closing Date as though made on and as of the Closing Date,
except for representations and warranties that speak as of a specific date.

 

(b)          IPO
Units. The Underwriters shall have purchased, concurrent with the purchase of the Securities by Purchaser hereunder, the Firm
Units (as defined in the Underwriting Agreement) at the purchase price per unit set forth in the Underwriting Agreement.

 

(c)          No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Transaction Documents.

 

Article
5

COVENANTS

 

5.1         Legend
Removal. Certificates evidencing the Shares or Warrant Shares shall not contain any legend (including the legend set forth
in Section 3.2(e) hereof), (i) while the Resale Registration Statement is effective under the Securities Act, (ii) following any
sale of such Shares or Warrant Shares pursuant to Rule 144, (iii) if such Shares or Warrant Shares are eligible for sale under
Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule 144
as to such Shares and Warrant Shares and

 

    	 	10.	 

     

    

 

without volume or manner-of-sale
restrictions, or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to its
transfer agent of Common Stock (the “Transfer Agent”) if required by the transfer agent to effect the removal
of the legend hereunder. If all or any portion of a Warrant is exercised at a time when there is an effective Resale Registration
Statement to cover the resale of the Warrant Shares, or if such Shares or Warrant Shares may be sold under Rule 144 and the Company
is then in compliance with the current public information required under Rule 144, or if the Shares or Warrant Shares may be sold
under Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule
144 as to such Shares or Warrant Shares 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 Warrant Shares shall
be issued free of all legends. The Company agrees that following the effective date of the Resale Registration Statement or at
such time as such legend is no longer required under this Section 5.1, it will, no later than three Trading Days following the
delivery by Purchaser to the Company or the transfer agent of a certificate representing Shares or Warrant Shares, as the case
may be, issued with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause
to be delivered to Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company
may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set
forth in this Section 5.1. Certificates for Securities subject to legend removal hereunder shall be transmitted by the Transfer
Agent to Purchaser by crediting the account of Purchaser’s prime broker with the Depository Trust Company System as directed
by Purchaser.

 

In addition to Purchaser’s
other available remedies, the Company shall pay to Purchaser, in cash, the greater of (i) as partial liquidated damages and not
as a penalty, for each $1,000 of Warrant Shares (based on the VWAP of the Common Stock on the date such Securities are submitted
to the Transfer Agent) delivered for removal of the restrictive legend, $10 per Trading Day (increasing to $20 per Trading Day
five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until such certificate
is delivered without a legend and (ii) if the Company fails to (A) issue and deliver (or cause to be delivered) to Purchaser by
the Legend Removal Date a certificate representing the Securities so delivered to the Company by Purchaser that is free from all
restrictive and other legends or (B) if after the Legend Removal Date Purchaser purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by Purchaser of all or any portion of the number of shares of Common
Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock that
Purchaser anticipated receiving from the Company without any restrictive legend, then, an amount equal to the excess of Purchaser’s
total purchase price (including brokerage commissions and other reasonable out-of-pocket expenses, if any) for the shares of Common
Stock so purchased (including brokerage commissions and other reasonable out-of-pocket expenses, if any) (the “Buy-In
Price”) over the product of (A) such number of Warrant Shares that the Company was required to deliver to Purchaser by
the Legend Removal Date multiplied by (B) the lowest closing sale price of the Common Stock on any Trading Day during the period
commencing on the date of the delivery by Purchaser to the Company of the applicable Warrant Shares (as the case may be) and ending
on the date of such delivery and payment under this clause (ii).

 

    	 	11.	 

     

    

 

5.2         Furnishing
Information; Public Information. Until the earliest of the time that (i) Purchaser owns no Securities or (ii) the Warrants
have expired, the Company covenants to maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.

 

At any time during the period commencing from
the six (6) month anniversary of the date hereof and ending at such time that all of the Securities may be sold without the requirement
for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144 and
the Resale Registration Statement is no longer effective, if the Company (i) shall fail for any reason to satisfy the current public
information requirement under Rule 144(c) or (ii) has ever been an issuer described in Rule 144(i)(1)(i) or becomes an issuer in
the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (a “Public Information Failure”)
then, in addition to Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated
damages and not as a penalty, by reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash
equal to two percent (2.0%) of the aggregate Subscription Amount of Purchaser’s Securities on the day of a Public Information
Failure and on every thirtieth (30th) day (pro-rated for periods totaling less than thirty days) thereafter until the
earlier of (a) the date such Public Information Failure is cured and (b) such time that such public information is no longer required 
for Purchaser to transfer the Shares and Warrant Shares pursuant to Rule 144.  The payments to which a Purchaser shall be
entitled pursuant to this Section 5.2 are referred to herein as “Public Information Failure Payments.” 
Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which
such Public Information Failure Payments are incurred and (ii) the third (3rd) Business Day after the event or
failure giving rise to the Public Information Failure Payments is cured.  In the event the Company fails to make Public
Information Failure Payments in a timely manner, such Public Information Failure Payments shall bear interest at
the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein shall limit Purchaser’s right
to pursue actual damages for the Public Information Failure, and Purchaser shall have the right to pursue all remedies available
to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

5.3         Non-Public
Information. The Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide Purchaser
or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes, material non-public
information, unless prior thereto Purchaser shall have consented to the receipt of such information and agreed with the Company
to keep such information confidential. The Company understands and confirms that Purchaser shall be relying on the foregoing covenant
in effecting transactions in securities of the Company.

 

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

 

    	 	12.	 

     

    

 

5.5         Listing
of Common Stock. The Company hereby agrees to use reasonable best efforts to maintain the listing of the Common Stock on the
NASDAQ Global Market or other national securities exchange (the “Trading Market”) on which it will be listed
upon the Closing, and concurrently with the Closing, the Company shall, if required, apply to list all of the Shares and Warrant
Shares on such Trading Market and promptly secure the listing of all of the Shares and Warrant Shares on such Trading Market. The
Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include
in such application all of the Shares and Warrant Shares, and will take such other action as is necessary to cause all of the Shares
and Warrant Shares to be listed on such other Trading Market as promptly as possible. The Company will then take all action reasonably
necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all material respects
with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market. The Company agrees
to maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company or another established
clearing corporation, including, without limitation, by timely payment of fees to the Depository Trust Company or such other established
clearing corporation in connection with such electronic transfer.

 

Article
6

MISCELLANEOUS

 

6.1         Removal
of Legends. It is understood and agreed by the Company that the restrictive legends and stop transfer instructions described
in Section 3.2(e) will be removed at the time the Securities purchased hereunder are registered under the Securities Act
and sold pursuant to such registration, or are sold or to be sold under Rule 144 under the Securities Act, or otherwise with a
transfer pursuant to an exemption from registration under the Securities Act.

 

6.2         Termination.
This Agreement shall automatically terminate upon the earliest to occur of (i) the written consent of the Company and Purchaser,
(ii) the withdrawal by the Company of the Registration Statement, (iii) following the execution of the Underwriting Agreement,
the termination of such Underwriting Agreement in accordance with its terms, or (iv) 11:59 P.M. (Eastern Time) on May 15, 2016
(the “Cutoff Time”), if the Registration Statement has not been declared effective by the Commission by the
Cutoff Time.

 

6.3         Entire
Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the complete understanding
of the parties with respect to the subject matter hereof and thereof and supersede all prior understandings and writings relating
to the subject matter hereof and thereof, which the parties acknowledge have been merged into such documents, exhibits and schedules.
At or after the Closing, and without further consideration, the Company and Purchaser will execute and deliver to the other such
further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction
Documents.

 

6.4         Notices.
All notices, instructions and other communications required or permitted hereunder or in connection herewith shall be in writing,
shall be sent to the address of the relevant party set forth below and shall be (i) delivered personally, (ii) sent via
a reputable nationwide overnight courier service, or (iii) sent by facsimile transmission, with a confirmation

 

    	 	13.	 

     

    

 

copy to be sent by registered
or certified mail, return receipt requested, postage prepaid. Any such notice, instruction or communication shall be deemed to
have been delivered upon receipt if delivered by hand and two (2) business days after it is sent via a reputable nationwide overnight
courier service. Either party may change its address by giving notice to the other party in the manner provided above.

 

	To the Company:	
        Oncobiologics, Inc.

        7 Clarke Drive

        Cranbury, NJ 08512

        Attention: President and Chief Executive Officer

        Fax: (609) 228-4330

	With a copy to:	
        Cooley LLP

        1114 Avenue of the Americas

        New York, NY 10036

        Attention: Yvan-Claude Pierre

        Fax: (212) 479-6275

	To Purchaser:	
        Sabby Healthcare Master Fund Ltd.

        10 Mountainview Road, Suite 205

        Upper Saddle River, NJ 07458

        Attention: Robert Grundstein

	With a copy to:	
        Ellenoff Grossman & Schole LLP

        1345 Avenue of the Americas

        New York, NY 10105

        Attention: Robert Charron

        Fax: (212) 401-4741

 

6.5         Amendment
and Waiver. No provision in this Agreement shall be supplemented, deleted or amended except in a writing executed by an authorized
representative of each of the Company and Purchaser.

 

6.6         Titles
and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

 

6.7         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and permitted assigns.

 

6.8         Governing
Law. This Agreement and any controversy arising out of or relating to this Agreement shall be governed by and construed under
the laws of the State of Delaware, without regard to conflict of law principles that would result in the application of any law
other than the law of the State of Delaware.

 

6.9         Execution.
This Agreement may be executed in counterparts, each of which shall be deemed an original but which together shall constitute one
and the same instrument. In addition, this Agreement may be executed by facsimile or “PDF” and such facsimile or “PDF”
signature shall be deemed to be an original.

 

    	 	14.	 

     

    

 

6.10       Severability.
Should one or more provisions of this Agreement be or become invalid, then the parties hereto will attempt to agree upon valid
provisions in substitution for the invalid provisions, which in their economic effect come so close to the invalid provisions that
it can be reasonably assumed that the parties would have accepted this Agreement with those new provisions. If the parties are
unable to agree on such valid provisions, the invalidity of such one or more provisions of this Agreement will not affect the validity
of the Agreement as a whole, unless the invalid provisions are of such essential importance for this Agreement that it may be reasonably
presumed that the parties would not have entered into this Agreement without the invalid provisions.

 

6.11       Expenses.
Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance
of this Agreement.

 

6.12       Delays
or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to any party, upon any
breach, default or noncompliance by another party under this Agreement, shall impair any such right, power or remedy, nor shall
it be construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or waiver of or acquiescence
in any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent or
approval of any kind or character on any party’s part of any breach, default or noncompliance under this Agreement or any
waiver on such party’s part of any provisions or conditions of this Agreement must be in writing and shall be effective only
to the extent specifically set forth in such writing. All remedies, either under this Agreement, the organizational documents of
the Company or otherwise afforded to any party, shall be cumulative and not alternative.

 

6.13       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, Purchaser
and the Company will be entitled to specific performance under the Transaction Documents. Each of the parties acknowledges that
the rights of each party to consummate the transactions contemplated hereby are unique and recognizes and affirms that in the event
of a breach of this Agreement by any party, money damages may be inadequate and the non-breaching party may have no adequate remedy
at law. Accordingly, such non-breaching party shall have the right, in addition to any other rights and remedies existing in its
favor at law or in equity, to enforce its rights and the other party’s obligations hereunder not only by an action or actions
for damages but also by an action or actions for specific performance, injunctive and/or other equitable relief (without posting
of bond or other security). Each of the parties agrees that it shall not oppose the granting of an injunction, specific performance
and other equitable relief when expressly available pursuant to the terms of this Agreement, and hereby waives (i) any defenses
in any action for an injunction, specific performance or other equitable relief, including the defense that the other parties have
an adequate remedy at law or an award of specific performance is not an appropriate remedy for any reason at law or equity, and
(ii) any requirement under law to post a bond, undertaking or other security as a prerequisite to obtaining equitable relief.

 

6.14       Indemnification;
Limitations on Liability. The Company shall indemnify, defend and hold Purchaser harmless from and against all liabilities,
losses, and damages, together with all reasonable costs and expenses related thereto (including, without limitation, reasonable
legal and accounting fees and expenses), which would not have been incurred if (i) all of the

 

    	 	15.	 

     

    

 

representations and warranties
of the Company in Section 3.1 had been true and correct pursuant to the terms of this Agreement when made and at the
time of the Closing, as applicable, and (ii) all of the covenants and agreements of the Company in this Agreement had been
duly and timely complied with and performed; provided, however, that the aggregate liability of the Company to Purchaser
under this Section 6.14 shall not exceed the amount paid by Purchaser pursuant to Section 2.2(a); and provided,
further, however, that the representations and warranties set forth in Section 3.1(f) shall survive the Closing until the
first anniversary of the Closing Date, whereupon they shall expire and any claim for liabilities, losses or damages arising out
of or relating to a breach of the representations and warranties set forth in Section 3.1(f) must be brought prior to the
first anniversary of the Closing Date.

 

[Signature Pages to Follow]

 

    	 	16.	 

     

    

 

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

 

	 	COMPANY:
	 	 
	 	ONCOBIOLOGICS, INC.
	 	 	 
	 	By:	 	/s/ Pankaj Mohan, Ph.D.
	 	Name:	 	Pankaj Mohan, Ph.D.
	 	Title:	 	President and Chief Executive Officer

 

     

     

    

 

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

 

	 	PURCHASER:
	 	 
	 	Sabby Healthcare Master Fund Ltd.
	 	 	 
	 	By:	 	/s/ Robert Grundstein
	 	Name:	 	Robert Grundstein
	 	Title:	 	COO of Investment Manager

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