Document:

Exhibit
10.19

     

    DIRECTOR
INDEMNITY AGREEMENT

     

    This
Agreement is made and entered into as of this 1st day of
January, 2010, by and between Novavax, Inc., a Delaware corporation (the
“Company”), and _______________________
(“Indemnitee”), who is currently serving the Company in the capacity of a
director and/or officer thereof.

     

    WITNESSETH:

     

    WHEREAS,
the Company and Indemnitee recognize that the interpretation of ambiguous
statutes, regulations and court opinions and of the Amended and Restated
Certificate of Incorporation, as amended (the “Certificate of Incorporation”)
and Amended and Restated By-laws, as amended (the “By-laws”) of the Company, and
the vagaries of public policy, are too uncertain to provide directors and
officers of the Company with adequate or reliable advance knowledge or guidance
with respect to the legal risks and potential liabilities to which they become
personally exposed as a result of performing their duties in good faith for the
Company; and

     

    WHEREAS,
the Company and the Indemnitee are aware that highly experienced and capable
persons are often reluctant to serve as directors and officers of a corporation
unless they are protected to the fullest extent permitted by law by
comprehensive insurance or indemnification; and

     

    WHEREAS,
the General Corporation Law of the State of Delaware, which sets forth certain
provisions relating to the mandatory and permissive indemnification of, and
advancement of expenses to, officers and directors of a Delaware corporation by
such corporation, is specifically not exclusive of other rights to which those
indemnified thereunder may be entitled under any bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, and, thus, does not by
itself limit the extent to which the Company may indemnify persons serving as
its officers and directors, provided such persons have met the applicable
standard of conduct; and

     

    WHEREAS,
the Company desires to have Indemnitee continue to serve as a director and/or
officer of the Company, and, if applicable, to serve in any other capacity as
agreed by the Company and the Indemnitee, free from undue concern for
unpredictable, inappropriate or unreasonable legal risks and personal
liabilities by reason of his or her acting in good faith in the performance of
his or her duty to the Company; and Indemnitee desires to continue to serve
(provided that he or she is furnished the indemnity provided for hereinafter) as
a director and/or officer of the Company and, if applicable, to serve in any
other capacity as agreed by the Indemnitee and the Company; and

     

    WHEREAS,
after due consideration and investigation of the terms and provisions of this
Agreement and the various other options available to the Company and the
Indemnitee in lieu thereof, the Board of Directors of the Company has determined
that the following Agreement is reasonable and prudent, and necessary to obtain
or retain Indemnitee’s service to and on behalf of the Company.

    

    
      
        
           

        

        
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    NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set
forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and Indemnitee, intending to be
legally bound, do hereby agree as follows:

     

    1.           Agreement to Serve. Indemnitee
agrees to continue to serve as a director and/or officer of the Company and, as
Indemnitee and the Company may agree, in any other capacity for the Company
and/or as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust, or other enterprise, for so long as he or she
is duly elected or appointed and qualified in accordance with the provisions of
the General Corporation Law of the State of Delaware and the Certificate of
Incorporation and By-laws of the Company, or until such time as he or she
tenders a resignation. The Company acknowledges that the Indemnitee is relying
on this Agreement in so serving.

     

    2.           Definitions. As used in this
Agreement:

     

    (a)           The
term “Proceeding” shall mean any threatened, pending or completed action, suit,
or proceeding, whether civil, criminal, administrative, arbitrative or
investigative (including an action by or in the right of the Company), any
appeal in such an action, suit, or proceeding, and any inquiry or investigation
that could lead to such an action, suit or proceeding. The final disposition of
a Proceeding shall be as determined by a settlement or the judgment of a court
or other investigative or administrative body. The Board of Directors shall not
make a determination as to the final disposition of a Proceeding.

     

    (b)           “Change
in Control” means a change in control of the Company of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A (or in response to any similar item on any similar schedule
or form) promulgated under the Securities Exchange Act of 1934, as amended (the
“Act”), whether or not the Company is then subject to such reporting
requirement; provided, however, that,
without limitation, such a Change in Control shall be deemed to have occurred if
(i) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Act), other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or a corporation owned directly or
indirectly by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company, is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Act), directly or
indirectly, of securities of the Company representing 15% or more of the
combined voting power of the Company’s then outstanding securities without the
prior approval of at least a majority of the members of the Board of Directors
of the Company in office immediately prior to such person attaining such
percentage interest; (ii) there occurs a proxy contest, or the Company is a
party to a merger, consolidation, sale of assets, plan of liquidation or other
reorganization not approved by at least a majority of the members of the Board
of Directors of the Company then in office, as a consequence of which members of
the Board of Directors in office immediately prior to such transaction or event
constitute less than a majority of the Board of Directors thereafter; or
(iii) during any period of two consecutive years, other than as a result of
an event described in clause (ii) of this subsection (b), individuals who
at the beginning of such period constituted the Board of Directors of the
Company (including for this purpose any new director whose election or
nomination for election by the Company’s stockholders was approved by a vote of
at least a majority of the directors then still in office who were directors at
the beginning of such period) cease for any reason to constitute at least a
majority of the Board of Directors.

    

    
      
        
           

        

        
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    (c)           “Disinterested
Director” means a director of the Company who is not and was not a party to the
Proceeding in respect of which indemnification is sought by
Indemnitee.

     

    (d)           The
term “Expenses” includes, without limitation, all reasonable attorneys’ fees,
retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges,
postage, delivery service fees and all other disbursements or expenses of the
types customarily incurred in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, or being or preparing to be a witness in
a Proceeding. Expenses also shall include Expenses incurred in connection with
any appeal resulting from any Proceeding, including, without limitation, the
premium, security for, and other costs relating to any cost bond, supersedeas
bond, or other appeal bond or its equivalent.

     

    (e)           “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years
has been, retained to represent: (i) the Company or Indemnitee in any
matter material to either such party (other than with respect to matters
concerning the Indemnitee under this Agreement, or of other indemnitees under
similar indemnification agreements), or (ii) any other party to the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Indemnitee in
an action to determine Indemnitee’s rights under this Agreement. The Company
agrees to pay the reasonable fees and expenses of the Independent Counsel
referred to above and to fully indemnify such counsel against any and all
Expenses, claims, liabilities and damages arising out of or relating to this
Agreement or its engagement pursuant hereto.

     

    (f)           References
to “other enterprise” shall include employee benefit plans; references to
“fines” shall include any (i) excise taxes assessed with respect to any
employee benefit plan and (ii) penalties; references to “serving at the
request of the Company” shall include any service as a director, officer,
employee or agent of the Company which imposes duties on, or involves services
by, such director, officer, employee or agent with respect to an employee
benefit plan, its participants or beneficiaries; and a person who acts in good
faith and in a manner he or she reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan shall be deemed to
have acted in a manner “not opposed to the best interests of the Company” as
referred to in this Agreement.

    

    
      
        
           

        

        
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    3.           Indemnity in Third Party Proceedings.
Subject to Sections 8 and 9, the Company shall indemnify, defend and
hold harmless Indemnitee to the fullest extent permitted or required by the laws
of the State of Delaware in effect as of the date hereof or as such laws may
from time to time hereafter be amended to increase the scope of such permitted
indemnification, if Indemnitee was or is a party or is threatened to be made a
party to any Proceeding (other than a Proceeding by or in the right of the
Company) by reason of the fact that Indemnitee is or was a director and/or
officer of the Company, or is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust, or other enterprise, against all Expenses, judgments, fines and
amounts paid in settlement actually and reasonably incurred by Indemnitee (or on
his or her behalf) in connection with such Proceeding or any claim, issue or
matter therein, provided the
Indemnitee acted in good faith and in a manner which he or she reasonably
believed to be in or not opposed to the best interests of the Company and, in
the case of a criminal Proceeding, had no reasonable cause to believe that
Indemnitee’s conduct was unlawful. Indemnitee shall have the right to employ
Indemnitee’s own legal counsel in any Proceeding for which indemnification is
available under this Section 3, subject to Section 8
below.

     

    4.           Indemnity in Proceedings By or In the
Right of the Company. Subject to Sections 8 and 9, the Company shall
indemnify, defend and hold harmless Indemnitee to the fullest extent permitted
or required by the laws of the State of Delaware in effect as of the date hereof
or as such laws may from time to time hereafter be amended to increase the scope
of such permitted indemnification, if Indemnitee was or is a party or is
threatened to be made a party to any Proceeding by or in the right of the
Company to procure a judgment in its favor by reason of the fact that Indemnitee
is or was a director and/or officer of the Company, or is or was serving at the
request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, or other enterprise, against all
Expenses actually and reasonably incurred by Indemnitee (or on his or her
behalf) in connection with the defense or settlement of such Proceeding or any
claim, issue or matter therein, provided the
Indemnitee acted in good faith and in a manner which he or she reasonably
believed to be in or not opposed to the best interests of the Company and, in
the case of a criminal Proceeding, had no reasonable cause to believe that
Indemnitee’s conduct was unlawful, and except that no indemnification shall be
made under this Section 4 in respect of any claim, issue or matter as to
which Indemnitee shall have been adjudged to be liable to the Company unless and
only to the extent that the Delaware Court of Chancery or other court in which
such Proceeding was brought or is pending, shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances
of the case, Indemnitee is fairly and reasonably entitled to indemnity for such
Expenses as the Delaware Court of Chancery or other court in such Proceeding
shall deem proper. Indemnitee shall have the right to employ Indemnitee’s own
legal counsel in any Proceeding for which indemnification is available under
this Section 4, subject to Section 8 below.

    

    
      
        
           

        

        
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    5.           Reimbursement for Expenses of a
Witness. Notwithstanding any other provision of this Agreement, to the
extent that Indemnitee is, by reason of the fact that Indemnitee is or was a
director and/or officer of the Company, or is or was serving at the request of
the Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust, or other enterprise, a witness at the
Company’s request in any Proceeding to which Indemnitee is not a party, he or
she shall be reimbursed against all Expenses actually and reasonably incurred by
Indemnitee (or on his or her behalf) in connection therewith upon Indemnitee’s
written request therefor.

     

    6.           Indemnification for Expenses of
Successful Party. Notwithstanding any other provision of this Agreement
to the contrary, to the extent that Indemnitee has been successful on the merits
or otherwise (whether partially or in full) in defense of any Proceeding
referred to in Sections 3 and/or 4 of this Agreement, or in defense of any
claim, issue or matter therein, Indemnitee shall be indemnified against all
Expenses actually and reasonably incurred by Indemnitee (or on his or her
behalf) in connection therewith. For purposes of this Section 6, and
without limitation, the termination of any claim, issue or matter in any
Proceeding referred to in Sections 3 and/or 4 of this Agreement by
dismissal shall be deemed to be a successful result as to such claim, issue or
matter.

     

    7.           Advances of Expenses.
Indemnitee shall have the right to advancement by the Company prior to
the final disposition of any Proceeding or any claim, issue or other matter
therein of any and all Expenses incurred by Indemnitee in defense of such
Proceeding or any claim, issue or other matter therein. Without limiting the
generality or effect of the foregoing, within 10 business days after any request
by Indemnitee, the Company shall, in accordance with such request, (a) pay
such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in
an amount sufficient to pay such Expenses or (c) reimburse Indemnitee for
such Expenses; provided that
Indemnitee shall repay any amounts actually advanced to Indemnitee that, at the
final disposition of the Proceeding to which the advance related, were in excess
of amounts paid or payable by Indemnitee in respect of Expenses relating to,
arising out of or resulting from such Proceeding; and provided further the Company
receives an undertaking by or on behalf of Indemnitee (“Indemnitee Undertaking”)
to repay such amount paid, advanced or reimbursed to the extent that it is
ultimately determined that Indemnitee is not entitled to be indemnified by the
Company. The Indemnitee Undertaking shall be substantially on the form of
Exhibit A to this Agreement and shall be accepted without reference to the
financial ability of the Indemnitee to make such repayment.

    

    
      
        
           

        

        
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    8.           Notice and Defense of a Proceeding.
As a condition precedent to the right to be indemnified or receive
advancement of Expenses, the Indemnitee must notify the Company in writing as
soon as practicable of any Proceeding for which indemnity will or could be
sought. With respect to any such Proceeding of which the Company is so notified,
the Company will be entitled to participate therein at its own expense and/or to
assume the defense thereof at its own expense, with legal counsel reasonably
acceptable to the Indemnitee. After notice from the Company to the Indemnitee of
its election so to assume such defense, the Company shall not be liable to the
Indemnitee for any legal or other Expenses subsequently incurred by the
Indemnitee in connection with such Proceeding, other than as provided in this
Section 8. The Indemnitee shall have the right to employ his or her own
counsel in connection with such Proceeding, but the fees and expenses of such
counsel incurred after notice from the Company of its assumption of the defense
thereof shall be at the expense of the Indemnitee unless (i) the employment
of counsel by the Indemnitee has been authorized by the Company, (ii) counsel to
the Indemnitee shall have reasonably concluded that there may be a conflict of
interest or position on any significant issue between the Company and the
Indemnitee in the conduct of the defense of such Proceeding, or (iii) the
Company shall not in fact have employed counsel to assume the defense of such
action, in each of which cases the fees and other Expenses of counsel for the
Indemnitee shall be at the expense of and borne by the Company, except as
otherwise expressly provided by this Agreement, and in no event shall the
Company be required to bear the expense of more than one counsel for all
Indemnitees with respect to a Proceeding. The Company shall not be entitled,
without the consent of the Indemnitee, to assume the defense of any Proceeding
brought by or in the right of the Company or as to which counsel for the
Indemnitee shall have reasonably made the conclusion provided for in clause
(ii) above.

     

    9.           Procedure
for Determination of Entitlement to Indemnification.

     

    (a)           To
obtain indemnification or advancement of Expenses under this Agreement,
Indemnitee shall submit to the Company a written request therefor, including in
such request such documentation and information as is reasonably available to
the Indemnitee and is reasonably necessary to determine whether and to what
extent the Indemnitee is entitled to indemnification or advancement of
Expenses.

     

    (b)           It
is the express intention of the parties that the Indemnitee be entitled to
indemnification hereunder to the fullest extent permitted by Delaware law.
Without limiting the generality or effect of the immediately preceding sentence,
and without excluding any other basis upon which Indemnitee may be found to be
entitled to indemnification hereunder, the Indemnitee shall be entitled to
indemnification hereunder if (i) Indemnitee acted in good faith and in a
manner which he or she reasonably believed to be in or not opposed to the best
interests of the Company and, in the case of a criminal Proceeding, had no
reasonable cause to believe that Indemnitee’s conduct was unlawful, or
(ii) Indemnitee has been successful on the merits or otherwise in defense
of any Proceeding or any claim, issue or matter therein.

    

    
      
        
           

        

        
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    (c)           Upon
written request by Indemnitee for indemnification pursuant to Section 9(a)
hereof, a determination, if required by applicable law, with respect to
Indemnitee’s entitlement thereto shall be made in the specific case: (i) if
a Change in Control shall have occurred, by Independent Counsel in a written
opinion to the Board of Directors of the Company, a copy of which shall be
delivered to Indemnitee; or (ii) if a Change in Control shall not have
occurred, (A) by a majority vote of the Disinterested Directors, even
though less than a quorum of the Board of Directors of the Company, or
(B) if there are no Disinterested Directors or, if the Disinterested
Directors so direct, by Independent Counsel in a written opinion to the Board of
Directors of the Company, a copy of which shall be delivered to Indemnitee, or
(C) a majority vote of a quorum of the outstanding shares of stock of all
classes entitled to vote for directors, voting as a single class, which quorum
shall consist of stockholders who are not at that time parties to the Proceeding
in question, or (D) a court of competent jurisdiction. If it is so
determined that Indemnitee is entitled to indemnification hereunder, payment to
Indemnitee shall be made within 60 days after receipt by the Company of the
request for indemnification required pursuant to Section 9(a) hereof. Any costs
or expenses (including reasonable attorneys’ fees and disbursements) incurred by
Indemnitee in cooperating with the person, persons or entity making the
determination discussed in this Section 9(c) with respect to Indemnitee’s
entitlement to indemnification, shall be borne by the Company (irrespective of
the determination as to Indemnitee’s entitlement to indemnification) and the
Company hereby indemnifies and agrees to hold Indemnitee harmless
therefrom.

     

    (d)           In
the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 9(c) hereof, the Independent Counsel
shall be selected as provided in this Section 9(d). If a Change in Control
shall not have occurred, the Independent Counsel shall be selected by the Board
of Directors of the Company, and the Company shall give written notice to
Indemnitee advising him or her of the identity of the Independent Counsel so
selected. If a Change in Control shall have occurred, the Independent Counsel
shall be selected by Indemnitee (unless Indemnitee shall request that such
selection be made by the Board of Directors of the Company, in which event the
preceding sentence shall apply), and Indemnitee shall give written notice to the
Company advising it of the identity of the Independent Counsel so selected. In
either event, Indemnitee or the Company, as the case may be, may, within
10 days after such written notice of selection shall have been given,
deliver to the Company or to Indemnitee, as the case may be, a written objection
to such selection; provided, however, that such
objection may be asserted only on the ground that the Independent Counsel so
selected does not meet the requirements of “Independent Counsel” as defined in
this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the person so
selected shall act as Independent Counsel. If such written objection is so made
and substantiated, the Independent Counsel so selected may not serve as
Independent Counsel unless and until such objection is withdrawn or a court has
determined that such objection is without merit. If, within 20 days after
submission by Indemnitee of a written request for indemnification pursuant to
Section 9(c) hereof, no Independent Counsel shall have been selected and not
objected to, either the Company or Indemnitee may petition a court of competent
jurisdiction for resolution of any objection which shall have been made by the
Company or Indemnitee to the other’s selection of Independent Counsel and/or for
the appointment as Independent Counsel of a person selected by the Court or by
such other person as the Court shall designate, and the person with respect to
whom all objections are so resolved or the person so appointed shall act as
Independent Counsel under this Section 9.

    

    
      
        
           

        

        
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    (e)           Indemnitee
will be deemed a party to a Proceeding for all purposes hereof if Indemnitee is
named as a defendant or respondent in a complaint or petition for relief in that
Proceeding, regardless of whether Indemnitee is ever served with process or
makes an appearance in that Proceeding.

     

    10.         Presumptions
and Effect of Certain Provisions.

     

    (a)           Neither
the failure of the Company (including its Board of Directors or Independent
Counsel) to have made a determination prior to the commencement of any action
pursuant to Section 11 of this Agreement that indemnification is proper in
the circumstances because Indemnitee has met the applicable standard of conduct,
nor an actual determination by the Company (including its Board of Directors or
Independent Counsel) that Indemnitee has not met such applicable standard of
conduct, shall be a defense to the action or create a presumption that
Indemnitee has not met the applicable standard of conduct.

     

    (b)           If
the person, persons or entity empowered or selected under Section 9 of this
Agreement to determine whether Indemnitee is entitled to indemnification shall
not have made a determination within 60 days after receipt by the Company
of a request for indemnification, the requisite determination of entitlement to
indemnification shall be deemed to have been made and Indemnitee shall be
entitled to such indemnification, absent (i) a misstatement by Indemnitee
of a material fact, or an omission of a material fact necessary to make
Indemnitee’s statement not misleading, in connection with the request for
indemnification, which if such fact were previously known, the Indemnitee would
not have been entitled to indemnification, or (ii) a prohibition of such
indemnification under applicable law; provided, however, that such
60-day period may be extended for a reasonable time, not to exceed an additional
60 days, if the person, persons or entity making the determination with
respect to entitlement to indemnification in good faith requires such additional
time for the obtaining or evaluating of documentation and/or information
relating thereto.

     

    (c)           The
termination of any Proceeding or of any claim, issue or matter therein, by
judgment, order, settlement or conviction, or upon a plea of nolo contendere or
its equivalent, shall not, of itself, create a presumption that Indemnitee did
not act in good faith and in a manner that he or she reasonably believed to be
in or not opposed to the best interests of the Company, or, with respect to any
criminal Proceeding, had reasonable cause to believe that his or her conduct was
unlawful.

    

    
      
        
           

        

        
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    (d)           For
purposes of any determination of whether Indemnitee acted in good faith and in a
manner reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal Proceeding, Indemnitee had no
reasonable cause to believe his or her conduct was unlawful (collectively, “Good
Faith”), Indemnitee shall be deemed to have acted in Good Faith if, with respect
to Indemnitee’s action, Indemnitee relied in good faith on the records or books
of account of the Company and any other corporation, partnership, joint venture,
trust, or other enterprise of which Indemnitee is or was serving at the request
of the Company as a director, officer, employee or agent (“Enterprise”), or on
information, opinions, reports or statements, including financial statements and
other financial information, concerning the Enterprise or any other Person which
were prepared or supplied to Indemnitee by: (i) one or more officers or
employees of the Enterprise; (ii) appraisers, engineers, investment bankers,
legal counsel or other Persons as to matters Indemnitee reasonably believed were
within the professional or expert competence of those Persons and who have been
selected with reasonable care by or on behalf of the Company or Enterprise; and
(iii) any committee of the Board of Directors or equivalent managing body
of the Enterprise of which Indemnitee is or was, at the relevant time, not a
member. The provisions of this Section 10(d) shall not be deemed to be exclusive
or to limit in any way the other circumstances in which the Indemnitee may be
deemed to have met the applicable standard of conduct set forth in this
Agreement.

     

    (e)           The
knowledge and/or actions, or failure to act, of any director, officer, agent or
employee of the Enterprise shall not be imputed to Indemnitee for purposes of
determining the right to indemnification under this Agreement.

     

    11.         Remedies
of Indemnitee.

     

    (a)           In
the event that (i) a determination is made pursuant to Section 9 of
this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to
Section 7 of this Agreement, (iii) no determination of entitlement to
indemnification shall have been made within the time period provided in Section
9(c) after receipt by the Company of the written request for indemnification,
(iv) reimbursement or payment of indemnification is not made pursuant to
Section 5, Section 6 and/or Section 9(b)(ii), within 60 days
after receipt by the Company of a written request therefor, or (v) payment
of indemnification pursuant to Section 3 or Section 4 of this
Agreement is not timely made after a determination has been made, or deemed to
have been made, that Indemnitee is entitled to indemnification, Indemnitee shall
be entitled to an adjudication by the Delaware Court of Chancery or a court of
competent jurisdiction of his or her entitlement to such indemnification or
advancement of Expenses and appeals therefrom, concluding in a final and
unappealable judgment by the highest court in Delaware. The Board of Directors
shall not make a determination as to the final disposition of such
adjudication.

    

    
      
        
           

        

        
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    (b)           In
the event that a determination shall have been made pursuant to Section 9
of this Agreement that Indemnitee is not entitled to indemnification, any
judicial proceeding commenced pursuant to this Section 11 shall be
conducted in all respects as a de novo trial on the merits and Indemnitee shall
not be prejudiced by reason of that adverse determination.

     

    (c)           If
a determination shall have been made pursuant to Section 9 of this
Agreement that Indemnitee is entitled to indemnification, the Company shall be
bound by such determination in any judicial proceeding commenced pursuant to
this Section 11, absent (i) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s statement
not misleading, in connection with the request for indemnification, which if
such fact were previously known, the Indemnitee would not have been entitled to
indemnification or (ii) a prohibition of such indemnification under
applicable law.

     

    (d)           In
the event that Indemnitee, pursuant to this Section 11, seeks a judicial
adjudication of his or her rights under, or to recover damages for breach of,
this Agreement, Indemnitee shall be entitled to recover from the Company, and
shall be indemnified by the Company against, any and all expenses (of the types
described in the definition of Expenses in Section 2(d) of this Agreement)
actually and reasonably incurred by Indemnitee in such judicial
adjudication.

     

    (e)           The
Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 11 that the procedures and presumptions of this
Agreement are not valid, binding and enforceable and shall stipulate in any such
court that the Company is bound by all the provisions of this
Agreement.

     

    12.         Indemnification and Advancement of
Expenses Under this Agreement Not Exclusive; Survival of Rights. The
rights of indemnification and to receive advancement of Expenses as provided by
this Agreement shall not be deemed exclusive of any other rights to which
Indemnitee may be entitled under the Certificate of Incorporation or By-laws of
the Company, any other agreement, any vote of stockholders or disinterested
directors, the General Corporation Law of the State of Delaware, or otherwise.
No amendment or alteration of this Agreement or of any provision hereof shall
limit or restrict any right of Indemnitee under this Agreement in respect of any
action taken or omitted by such Indemnitee prior to such amendment or
alteration. To the extent that a change in the General Corporation Law of the
State of Delaware, whether by statute or judicial decision, permits greater
indemnification or advancement of Expenses than would be afforded currently
under the Certificate of Incorporation of the Company and this Agreement, it is
the intent of the parties hereto that Indemnitee shall enjoy by this Agreement
the greater benefits so afforded by such change. No right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
right or remedy.

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

    

    13.         Partial Indemnification. If
Indemnitee is entitled under any provision of this Agreement to indemnification
or to receive advancement by the Company for a portion of the Expenses,
judgments, fines, penalties or amounts paid in settlement actually and
reasonably incurred by Indemnitee (or on his or her behalf) in connection with
such Proceeding, or any claim, issue or matter therein, but not, however, for
the total amount thereof, the Company shall nevertheless indemnify Indemnitee
for the portion thereof to which Indemnitee is entitled.

     

    14.         Rights Continued. The rights
of indemnification and to receive advancement of Expenses as provided by this
Agreement shall continue as to Indemnitee even though Indemnitee may have ceased
to be a director or officer of the Company, and shall inure to the benefit of
Indemnitee’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

     

    15.         No Construction as an Employment
Agreement or Any Other Commitment. Nothing contained in this Agreement
shall be construed as giving Indemnitee any right to be retained in the employ
or as an officer of the Company or any of its subsidiaries, if Indemnitee
currently serves as an officer of the Company, or to be renominated or reelected
as a director of the Company, if Indemnitee currently serves as a director of
the Company.

     

    16.         Liability Insurance. For the
duration of Indemnitee’s service as a director and/or officer of the Company,
and thereafter for so long as Indemnitee shall be subject to any pending or
possible Proceeding or of any claim, issue or matter therein, the Company shall
use commercially reasonable efforts (taking into account the scope and amount of
coverage available relative to the cost thereof) to cause to be maintained in
effect policies of directors’ and officers’ liability insurance providing
coverage for directors and/or officers of the Company that is at least
substantially comparable in scope and amount to that provided by the Company’s
current policies of directors’ and officers’ liability insurance. Indemnitee
shall be covered by such policy or policies in accordance with its or their
terms.

     

    17.         No Duplication of Payments.
The Company shall not be liable under this Agreement to make any payment
of amounts otherwise indemnifiable under this Agreement if, and to the extent
that, Indemnitee is entitled to or has otherwise actually received such payment
under any contract, agreement or insurance policy, the Certificate of
Incorporation or By-laws of the Company, or otherwise. Indemnitee hereby
releases the Company and its respective authorized representatives from any
claims for indemnification hereunder if and to the extent that Indemnitee
receives proceeds from any liability insurance policy or other third-party
source in payment or reimbursement for such Proceeding or claims. Indemnitee
hereby agrees to assign all proceeds Indemnitee receives under any such
insurance policy or third-party agreement to the extent of the amount of
indemnification made to Indemnitee under the terms of this
Agreement.

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

    

    18.         Subrogation. In the event of
payment under this Agreement, the Company shall be subrogated to the extent of
such payment to all the rights of recovery of Indemnitee, who shall execute all
papers required and shall do everything that may be necessary to secure such
rights, including without limitation the execution of such documents as may be
necessary to enable the Company effectively to bring suit to enforce such
rights.

     

    19.         Exceptions. Notwithstanding
any other provision in this Agreement, but except as provided in
Section 11(d), the Company shall not be obligated pursuant to the terms of
this Agreement, to indemnify or advance Expenses to Indemnitee with respect to
any Proceeding, or any claim, issue or matter therein, (i) brought or made
by Indemnitee, unless the bringing of such Proceeding or the making of such
claim, issue or matter shall have been approved by the Board of Directors of the
Company, (ii) in which a final judgment is rendered against Indemnitee for
an accounting of profits made from the purchase and sale or the sale and
purchase by Indemnitee of securities of the Company pursuant to the provisions
of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar
provisions of any federal, state or local statute, (iii) if a final
adjudication establishes that the Indemnitee’s acts or omissions involved a
breach of Indemnitee’s fiduciaries duties or intentional misconduct, fraud or a
knowing violation of the law, or (iv) charging an improper personal benefit
to Indemnitee and Indemnitee is adjudged liable on that basis, unless, in each
case, the Delaware Court of Chancery or other court in which such Proceeding was
brought or other court of competent jurisdiction determines upon application
that in view of all the circumstances of the case, the Indemnitee is fairly and
reasonably entitled to indemnity for such Expenses.

     

    20.         Notices. Any notice or other
communication required or permitted to be given or made to the Company or
Indemnitee pursuant to this Agreement shall be given or made in writing
(a) three business days after being deposited in the United States mail,
with return receipt requested and postage thereon prepaid, (b) upon
delivery, when delivered personally or by overnight national courier or express
delivery, or (c) upon delivery, when sent by facsimile and provided
confirmation of receipt is obtained, addressed to the person to whom such notice
or communication is directed at the address of such person on the records of the
Company. Any such notice or communication to the Company shall be addressed to
the Secretary of the Company at the address of the Company’s principal executive
office set forth in the Company’s most recent periodic or current filing under
the Act.

     

    21.         Contractual Rights. The right
to be indemnified or to receive advancement of Expenses under this Agreement
(i) is a contract right based upon good and valuable consideration,
pursuant to which Indemnitee may sue, (ii) is and is intended to be
retroactive and shall be available as to events occurring prior to the date of
this Agreement, and (iii) shall continue after any rescission or
restrictive modification of this Agreement as to events occurring prior
thereto.

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    22.         Severability. If any provision
or provisions of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason whatsoever, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby. To the fullest extent possible, the provisions of this
Agreement shall be construed so as to give effect to the intent manifested by
the provisions held invalid, illegal or unenforceable, and any provision or
provisions held to be invalid, illegal or unenforceable for any reason
whatsoever shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties
hereto.

     

    23.         Successors; Binding Agreement.
The Company shall use its commercially reasonable efforts to cause any
successor (whether direct or indirect by purchase, merger, consolidation or
otherwise to all or substantially all of the business or assets of the Company),
by written agreement in form and substance reasonably satisfactory to
Indemnitee, to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if
no such succession had taken place. As used in this Agreement, “Company” shall
mean the Company as hereinbefore defined and any successor to its business
and/or assets as aforesaid that executes and delivers the agreement provided for
in this Section 23 or that otherwise becomes bound by the terms and
provisions of this Agreement by operation of law. This Agreement shall be
binding upon the Company and its successors and assigns (including, without
limitation, any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the business or assets of the
Company).

     

    24.         Counterparts,
Modification, Headings, Gender.

     

    (a)           This
Agreement may be executed in counterparts, each of which shall be deemed an
original and all of which when taken together shall constitute one and the same
instrument, and either party hereto may execute this Agreement by signing any
such counterpart.

     

    (b)           No
provisions of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by
Indemnitee and an appropriate authorized officer of the Company. No waiver by
any party at any time of any breach by any other party of, or compliance with,
any condition or provision of this Agreement to be performed by any other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same time or at any prior or subsequent time.

     

    (c)           Section
headings are not to be considered part of this Agreement, are solely for
convenience of reference, and shall not affect the meaning or interpretation of
this Agreement or any provision set forth herein.

     

    (d)           Pronouns
in masculine, feminine and neuter genders shall be construed to include any
other gender, and words in the singular form shall be construed to include the
plural and vice versa, unless the context otherwise requires.

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    25.         Exclusive Jurisdiction; Governing
Law. The Company and Indemnitee agree that all disputes in any way
relating to or arising under this Agreement, including, without limitation, any
action for advancement of Expenses or indemnification, shall be litigated, if at
all, exclusively in the Delaware courts, and if necessary, the corresponding
appellate courts. This Agreement shall be governed by and construed and enforced
in accordance with the laws of the State of Delaware applicable to contracts
made and to be performed in such state without giving effect to its principles
of conflicts of laws. The Company and Indemnitee (i) expressly submit
themselves to the personal jurisdiction of the Delaware courts for purposes of
any action or proceeding arising out of or in connection with this Agreement,
(ii) irrevocably appoint, to the extent such party is not a resident of the
State of Delaware, CT Corporation Systems, 1209 Orange Street, Wilmington,
Delaware 19801, as its agent in the State of Delaware as such party’s agent for
acceptance of legal process in connection with any such action or proceeding
against such party with the same legal force and validity as if served upon such
party personally within the State of Delaware, (iii) waive any objection to the
laying of venue of any such action or proceeding in the Delaware courts, and
(iv) waive, and agree not to plead or to make, any claim that any such
action or proceeding brought in the Delaware courts has been brought in an
improper or otherwise inconvenient forum.

     

    26.         Duration of Agreement. This
Agreement shall continue until and terminate upon the later of: (a) six
years after the date that Indemnitee shall have ceased to serve as a director
and/or officer of the Company or director, officer, employee or agent of any
other corporation, partnership, joint venture, trust, or other enterprise which
Indemnitee served at the request of the Company; or (b) one year after the
final, nonappealable termination of any Proceeding then pending in respect of
which Indemnitee is granted rights of indemnification or advancement of Expenses
hereunder and of any proceeding commenced by Indemnitee pursuant to
Section 11 of this Agreement relating thereto.

     

    27.        
Contribution. If it is
established, under Section 9 or otherwise, that Indemnitee has the right to
be indemnified under this Agreement in respect of any claim, but that right is
unenforceable by reason of applicable law or public policy, then, to the fullest
extent applicable law permits, the Company, in lieu of indemnifying or causing
the indemnification of Indemnitee under this Agreement, will contribute to the
amount Indemnitee has incurred, whether for judgments, fines, penalties, excise
taxes, amounts paid or to be paid in settlement or for Expenses reasonably
incurred, in connection with that Proceeding, in such proportion as is deemed
fair and reasonable in light of all the circumstances of that Proceeding in
order to reflect:

     

    (a)           the
relative benefits Indemnitee and the Company have received as a result of the
event(s) or transactions(s) giving rise to that Proceeding; or

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    

    (b)           the
relative fault of Indemnitee and of the Company and its other functionaries in
connection with those event(s) or transaction(s).

     

    28.         Effect of Federal Law. Both
the Company and Indemnitee acknowledge that in certain instances, federal law
will override Delaware law and prohibit the Company from indemnifying its
officers and directors. The Company and Indemnitee specifically acknowledge that
the Securities and Exchange Commission has taken the position that
indemnification is not permissible for liabilities arising under certain federal
securities laws, and federal law prohibits indemnification for certain
violations of the Employee Retirement Income Security Act.

     

    29.         Savings Clause. Nothing in
this Agreement is intended to require or shall be construed as requiring the
Company to do or fail to do any act in violation of applicable law. The
provisions of this Agreement (including any provision within a single section,
paragraph or sentence) shall be severable in accordance with this
Section 29. If this Agreement or any portion thereof shall be invalidated
on any ground by any court of competent jurisdiction, the Company shall
nevertheless indemnify Indemnitee as to Expenses, judgments, fines and penalties
with respect to any Proceeding to the fullest extent permitted by any applicable
portion of this Agreement that shall not have been invalidated or by any other
applicable law, and this Agreement shall remain enforceable to the fullest
extent permitted by law.

    

    IN
WITNESS WHEREOF, the Company and Indemnitee have executed this Agreement as of
the date and year first above written.

     

    
      
        
          
            
              
                	 
      	
                        NOVAVAX,
      INC.

                      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Rahul
      Singhvi

                      
	 
      	 
      	
                        President
      and Chief

                      
	 
      	 
      	
                        Executive
      Officer

                      
	 
      	 
      
	 
      	
                        INDEMNITEE

                      
	 
      	 
      
	 
      	 
      
	 
      	
                        Print
      Name:

                      

              

            

          

        

      

    

    

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
A

    INDEMNITEE’S
UNDERTAKING

     

    ___________, 20__

     

    Novavax,
Inc.

    9920
Belward Campus Drive

    Rockville,
MD 20850

     

    Re: Indemnity
Agreement

     

    Ladies
and Gentlemen:

     

    Reference
is made to the Indemnity Agreement dated as of January 1, 2010 by and between
Novavax, Inc. and the undersigned Indemnitee (the “Agreement”), and particularly
to Section 7 thereof relating to the advancement by the Company of certain
Expenses incurred by the undersigned Indemnitee. Capitalized terms used and not
otherwise defined in this Indemnitee’s Undertaking shall have the respective
meanings given to such terms in the Agreement.

     

    The types
and amounts of Expenses incurred by or on behalf of the undersigned Indemnitee
are itemized on Attachment I to this Indemnitee’s Undertaking. The undersigned
Indemnitee hereby requests that the total amount of these Expenses (the
“Advanced Amount”) be paid by the Company in advance of the final disposition of
such Proceeding in accordance with the Agreement.

     

    The
undersigned Indemnitee hereby agrees to repay the Advanced Amount to the Company
to the extent that it is determined, following the final disposition of such
Proceeding and in accordance with Section 9, that the undersigned
Indemnitee is not entitled to be indemnified therefor by the
Company.

     

    
      
        	 
      	
                Very
      truly yours,

              
	 
      	 
      
	 
      	
                Signature

              
	 
      	
                Name
      of Indemnitee (Type or Print)

              

      

    

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

    

    ATTACHMENT
I TO

    INDEMNITEE’S
UNDERTAKING

     

    ITEMIZATION
OF

    TYPES AND AMOUNTS OF
EXPENSES

     

    Attached
hereto are receipts, statements or invoices for the following qualifying
Expenses which Indemnitee represents have been incurred by Indemnitee in
connection with a Proceeding:

     

    Type Amount

     

    1.

     

    Total
Advanced Amount

    

    
      
        
           

        

        
          17Exhibit
10.37

     

    At
Market Issuance Sales Agreement

     

    March 15,
2010

     

    McNicoll,
Lewis & Vlak LLC

    420
Lexington Ave., Suite 628

    New York,
NY 10170

     

    Ladies
and Gentlemen:

     

    Novavax,
Inc., a Delaware corporation (the “Company”), confirms
its agreement (this “Agreement”) with
McNicoll, Lewis & Vlak LLC, a Delaware limited liability company (“MLV”), as
follows:

     

    1.       
    Issuance and Sale of
Shares.  The Company agrees that, from time to time during the
term of this Agreement, on the terms and subject to the conditions set forth
herein, it may issue and sell through MLV, acting as agent and/or principal, up
to $50,000,000 of shares (the “Shares”) of the
Company’s common stock, par value $0.01 per share (the “Common
Stock”).  Notwithstanding anything to the contrary contained
herein, the parties hereto agree that compliance with the limitations set forth
in this Section 1 on the number of Shares issued and sold under this Agreement
shall be the sole responsibility of the Company and that MLV shall have no
obligation in connection with such compliance.  The issuance and sale
of Shares through MLV will be effected pursuant to the Registration Statement
(as defined below) filed by the Company and declared effective by the Securities
and Exchange Commission (the “Commission”),
although nothing in this Agreement shall be construed as requiring the Company
to use the Registration Statement to issue Common Stock or Preferred
Stock.

     

    The
Company intends to file, in accordance with the provisions of the Securities Act
of 1933, as amended, and the rules and regulations thereunder (collectively, the
“Securities
Act”), with the Commission a registration statement on Form S-3,
including one or more base prospectuses, with respect to equity and other
offerings, including the Shares, and which incorporates by reference documents
that the Company has filed or will file in accordance with the provisions of the
Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder (collectively, the “Exchange
Act”).  The Company will, if necessary, prepare a prospectus
supplement (the “Prospectus
Supplement”) to the base prospectus included as part of such registration
statement.  The Company will furnish to MLV, for use by MLV, copies of
the prospectus included as part of such registration statement, as supplemented,
if at all, by the Prospectus Supplement, relating to the
Shares.  Except where the context otherwise requires, such
registration statement, as amended when it becomes effective, including all
documents filed as part thereof or incorporated by reference therein, and
including any information contained in a Prospectus (as defined below)
subsequently filed with the Commission pursuant to Rule 424(b) under the
Securities Act and also including any other registration statement filed
pursuant to Rule 462(b) under the Securities Act, collectively, are herein
called the “Registration
Statement,” and the base prospectus, including all documents incorporated
therein by reference, included in the Registration Statement, as it may be
supplemented by the Prospectus Supplement, in the form in which such prospectus
and/or Prospectus Supplement have most recently been filed by the Company with
the Commission pursuant to Rule 424(b) under the Securities Act is herein called
the “Prospectus.” Any
reference herein to the Registration Statement, the Prospectus or any amendment
or supplement thereto shall be deemed to refer to and include the documents
incorporated by reference therein, and any reference herein to the terms
“amend,” “amendment” or “supplement” with respect to the Registration Statement
or the Prospectus shall be deemed to refer to and include the filing after the
execution hereof of any document with the Commission deemed to be incorporated
by reference therein.  For purposes of this Agreement, all references
to the Registration Statement, the Prospectus or to any amendment or supplement
thereto shall be deemed to include any copy filed with the Commission pursuant
to its Electronic Data Gathering Analysis and Retrieval System, or if
applicable, the Interactive Data Electronic Application system when used by the
Commission (collectively, “EDGAR”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.       
    Placements.  Each
time that the Company wishes to issue and sell Shares hereunder (each, a “Placement”), it will
notify MLV by email notice (or other method mutually agreed to in writing by the
Parties) of the number of Shares (the “Placement Shares”) to
be issued, the type of Shares, the time period during which sales are requested
to be made, any limitation on the number of Shares that may be sold in any one
day and any minimum price below which sales may not be made (a “Placement Notice”),
the form of which is attached hereto as Schedule 1.  The Placement
Notice shall originate from any of the individuals from the Company set forth on
Schedule 3 (with a copy to each of the other individuals from the Company listed
on such schedule), and shall be addressed to each of the individuals from MLV
set forth on Schedule 3, as such Schedule 3 may be amended from time to
time.  The Placement Notice shall be effective unless and until
(i) MLV declines to accept the terms contained therein as a result of any
suspension or limitation of trading in the Placement Shares or in securities
generally on the Exchange or any occurrence or event that causes a material
adverse change in the operation or prospects of the Company, (ii) the
entire amount of the Placement Shares have been sold, (iii) the Company
suspends or terminates the Placement Notice or (iv) the Agreement has been
terminated under the provisions of Section 12.  The amount of any
discount, commission or other compensation to be paid by the Company to MLV in
connection with the sale of the Placement Shares shall be calculated in
accordance with the terms set forth in Schedule 2.  It is expressly
acknowledged and agreed that neither the Company nor MLV will have any
obligation whatsoever with respect to a Placement or any Placement Shares unless
and until the Company delivers a Placement Notice to MLV and MLV does not
decline such Placement Notice pursuant to the terms set forth above, and then
only upon the terms specified therein and herein.  In the event of a
conflict between the terms of this Agreement and the terms of a Placement
Notice, the terms of the Placement Notice will control.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    3.    
       Sale of Placement Shares by
MLV.  Subject to the terms and conditions herein set forth,
upon the Company’s issuance of a Placement Notice, and unless the sale of the
Placement Shares described therein has been declined, suspended, or otherwise
terminated in accordance with the terms of this Agreement, MLV will use its
commercially reasonable efforts consistent with its normal trading and sales
practices to sell such Placement Shares up to the amount specified, and
otherwise in accordance with the terms of such Placement Notice.  MLV
will provide written confirmation to the Company no later than the opening of
the Trading Day (as defined below) immediately following the Trading Day on
which it has made sales of Placement Shares hereunder setting forth the number
of Placement Shares sold on such day, the compensation payable by the Company to
MLV pursuant to Section 2 with respect to such sales, and the Net Proceeds (as
defined below) payable to the Company.  MLV may sell Placement Shares
by any method permitted by law deemed to be an “at the market” offering as
defined in Rule 415 of the Securities Act, including without limitation sales
made directly on NASDAQ Capital Market (the “Exchange”), on any
other existing trading market for the Common Stock or to or through a market
maker.  MLV may also sell Placement Shares in privately negotiated
transactions, subject to approval by the Company.  The Company
acknowledges and agrees that (i) there can be no assurance that MLV will be
successful in selling Placement Shares, and (ii) MLV will incur no
liability or obligation to the Company or any other person or entity if it does
not sell Placement Shares for any reason other than a failure by MLV to use its
commercially reasonable efforts consistent with its normal trading and sales
practices to sell such Placement Shares as required under this Section
3.  For the purposes hereof, “Trading Day” means
any day on which Common Stock is purchased and sold on the principal market on
which the Common Stock is listed or quoted.

     

    4.     
      Suspension of
Sales.  The Company or MLV may, upon notice to the other party
in writing (including by email correspondence to each of the individuals of the
other Party set forth on Schedule 3, if receipt of such correspondence is
actually acknowledged by any of the individuals to whom the notice is sent,
other than via auto-reply) or by telephone (confirmed immediately by verifiable
facsimile transmission or email correspondence to each of the individuals of the
other Party set forth on Schedule 3), suspend any sale of Placement Shares;
provided, however, that such suspension shall not affect or impair either
party’s obligations with respect to any Placement Shares sold hereunder prior to
the receipt of such notice.  Each of the Parties agrees that no such
notice under this Section 4 shall be effective against the other unless it is
made to one of the individuals named on Schedule 3 hereto, as such Schedule may
be amended from time to time.

     

    5.      
     Settlement.

     

    (a)           Settlement of Placement
Shares.  Unless otherwise specified in the applicable Placement
Notice, settlement for sales of Placement Shares will occur on the third (3rd)
Trading Day (or such earlier day as is industry practice for regular-way
trading) (each, a “Settlement Date”)
following the respective Point of Sale (as defined below).  The amount
of proceeds to be delivered to the Company on a Settlement Date against receipt
of the Placement Shares sold (the “Net Proceeds”) will
be equal to the aggregate sales price received by MLV at which such Placement
Shares were sold, after deduction for (i) MLV’s commission, discount or
other compensation for such sales payable by the Company pursuant to Section 2
hereof, (ii) any other amounts due and payable by the Company to MLV
hereunder pursuant to Section 7(g) (Expenses) hereof, and (iii) any
transaction fees imposed by any governmental or self-regulatory organization in
respect of such sales.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (b)           Delivery of Placement
Shares.  On or before each Settlement Date, the Company will,
or will cause its transfer agent to, electronically transfer the Placement
Shares being sold by crediting MLV’s or its designee’s account at The Depository
Trust Company through its Deposit and Withdrawal at Custodian System ("DWAC") or by such
other means of delivery as may be mutually agreed upon by the parties hereto
which in all cases shall be freely tradeable, transferable, registered shares in
good deliverable form.  On each Settlement Date, MLV will deliver the
related Net Proceeds in same day funds to an account designated by the Company
on, or prior to, the Settlement Date.   MLV will be responsible
for obtaining DWAC instructions or instructions for delivery by other means with
regard to the transfer of Placement Shares being sold.  The Company
agrees that if the Company, or its transfer agent (if applicable), defaults in
its obligation to deliver Placement Shares on a Settlement Date, the Company
agrees that in addition to and in no way limiting the rights and obligations set
forth in Section 10(a) (Indemnification and Contribution) hereto, it will
(i) hold MLV harmless against any loss, claim, damage, or expense
(including reasonable legal fees and expenses), as incurred, arising out of or
in connection with such default by the Company and (ii) pay to MLV any
commission, discount, or other compensation to which it would otherwise have
been entitled absent such default.

     

    6.      
     Representations and
Warranties of the Company.  The Company represents and warrants
to, and agrees with, MLV that as of the date of this Agreement and as of each
Representation Date (as defined in Section 7(m) below) on which a certificate is
required to be delivered pursuant to Section 7(m) of this Agreement, as the case
may be, except as may be disclosed in the Registration Statement or a Disclosure
Schedule delivered in connection herewith:

     

    (a)           Registration Statement and
Prospectus.  The Company and, assuming no act or omission on
the part of MLV that would make such statement untrue, the transactions
contemplated by this Agreement meet the requirements for and comply with the
conditions for the use of Form S-3 under the Securities Act.  The
Registration Statement has been filed with the Commission and has been declared
effective under the Securities Act.  The Prospectus Supplement will
name MLV as an underwriter, acting as principal and/or agent, that the Company
might engage in the section entitled “Plan of Distribution.” The Company has not
received, and has no notice of, any order of the Commission preventing or
suspending the use of the Registration Statement, or threatening or instituting
proceedings for that purpose.  The Registration Statement and the
offer and sale of Shares as contemplated hereby meet the requirements of
Rule 415 under the Act and comply in all material respects with said
Rule.  Any statutes, regulations, contracts or other documents that
are required to be described in the Registration Statement or the Prospectus or
to be filed as exhibits to the Registration Statement have been so described or
filed.  Copies of the Registration Statement, the Prospectus, and any
such amendments or supplements and all documents incorporated by reference
therein that were filed with the Commission on or prior to the date of this
Agreement have been delivered, or are available through EDGAR, to MLV and their
counsel.  The Company has not distributed and, prior to the later to
occur of each Settlement Date and completion of the distribution of the
Placement Shares, will not distribute any offering material in connection with
the offering or sale of the Placement Shares other than the Registration
Statement and the Prospectus and any Issuer Free Writing Prospectus (as defined
below) to which MLV has consented.  The Common Stock is currently
listed on the NASDAQ Global Market under the trading symbol
“NVAX”.  Except as disclosed in the Registration Statement, the
Company has not, in the 12 months preceding the date hereof, received notice
from the Exchange to the effect that the Company is not in compliance with the
listing or maintenance requirements.  The Company has no reason to
believe that it will not in the foreseeable future continue to be in compliance
with all such listing and maintenance requirements.

    
      
         

      

      
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    (b)           No Misstatement or
Omission.  The Registration Statement, when it became or
becomes effective, and the Prospectus, and any amendment or supplement thereto,
on the date of such Prospectus or amendment or supplement, conformed or will
conform in all material respects with the requirements of the Securities
Act.  At each Settlement Date, the Registration Statement and the
Prospectus, as of such date, will conform in all material respects with the
requirements of the Securities Act.  The Registration Statement, when
it became or becomes effective, did not, or will not, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not
misleading.  The Prospectus and any amendment or supplement thereto,
on the date thereof and at each Point of Sale, did not or will not include an
untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading.  The documents incorporated by reference in
the Prospectus or any Prospectus Supplement did not, and any further documents
filed and incorporated by reference therein will not, when filed with the
Commission, contain an untrue statement of a material fact or omit to state a
material fact required to be stated in such document or necessary to make the
statements in such document, in light of the circumstances under which they were
made, not misleading.  The foregoing shall not apply to statements in,
or omissions from, any such document made in reliance upon, and in conformity
with, information furnished to the Company by MLV specifically for use in the
preparation thereof.  “Point of Sale” means,
for a Placement, the time at which an acquiror of Placement Shares entered into
a contract, binding upon such acquiror, to acquire such Shares.

     

    (c)           Conformity with Securities
Act and Exchange Act.  The documents incorporated by reference
in the Registration Statement, the Prospectus or any amendment or supplement
thereto, when such documents were or are filed with the Commission under the
Securities Act or the Exchange Act or became or become effective under the
Securities Act, as the case may be, conformed or will conform in all material
respects with the requirements of the Securities Act and the Exchange Act, as
applicable.

     

    (d)           Financial
Information.  The consolidated financial statements and the
related notes thereto included or incorporated by reference in the Registration
Statement and the Prospectus comply with the applicable requirements of the Act
and the Exchange Act, as applicable, and present fairly, the financial position
of the Company as of the dates indicated and the results of its operations and
the changes in its consolidated cash flows for the periods specified; such
financial statements have been prepared in conformity with generally accepted
accounting principles applied on a consistent basis throughout the periods
covered thereby (except (i) as may be otherwise indicated in such financial
statements or the notes thereto or (ii) in the case of unaudited interim
financial statements, to the extent that they may not include footnotes or may
be condensed or summary statements), and the other financial information
included or incorporated by reference in the Registration Statement and the
Prospectus has been derived from the accounting records of the Company and
presents fairly the information shown thereby.  Any pro forma
financial statements or data included or incorporated by reference in the
Registration Statement and the Prospectus comply with the requirements of
Regulation S-X of the Securities Act, including, without limitation,
Article 11 thereof, and the assumptions used in the preparation of such pro
forma financial statements and data are reasonable, the pro forma adjustments
used therein are appropriate to give effect to the circumstances referred to
therein and the pro forma adjustments have been properly applied to the
historical amounts in the compilation of those statements and
data.  No other financial statements or schedules of the Company or
any other entity are required by the Act to be included in the Registration
Statement or the Prospectus.  All disclosures contained in the
Registration Statement, the Pricing Disclosure Materials and the Prospectus
regarding “non-GAAP financial measures” (as such term is defined by Item 10 of
Regulation S-K under the Act) comply with Regulation G of the Exchange Act and
Item 10 of Regulation S-K under the Act, to the extent
applicable.  The Company does not have any material liabilities or
obligations, direct or contingent (including any off-balance sheet obligations
and any “variable interest entities” within the meaning of Financial Accounting
Standards Board Interpretation No. 46(R) or Statement of Financial Accounting
Standards No. 167), not disclosed in the Registration Statement, the Pricing
Disclosure Materials and the Prospectus.

    
      
         

      

      
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    (e)           Conformity with EDGAR
Filing.  The Prospectus delivered to MLV for use in connection
with the sale of the Placement Shares pursuant to this Agreement will be
identical to the versions of the Prospectus created to be transmitted to the
Commission for filing via EDGAR, except to the extent permitted by Regulation
S-T.

     

    (f)           Organization.  The
Company is, and will be, duly organized, validly existing as a corporation and
in good standing under the laws of its jurisdiction of
organization.  The Company is, and will be, duly licensed or qualified
as a foreign corporation for transaction of business and in good standing under
the laws of each other jurisdiction in which its ownership or lease of property
or the conduct of its businesses requires such license or qualification, and has
all corporate power and authority necessary to own or hold its properties and to
conduct its business as described in the Registration Statement and the
Prospectus, except where the failure to be so qualified or in good standing or
have such power or authority would not, individually or in the aggregate, have a
material adverse effect or would reasonably be expected to have a material
adverse effect on or affecting the business, properties, management,
consolidated financial position, stockholders’ equity or results of operations
of the Company (a “Material Adverse
Effect”).

     

    (g)           Subsidiaries.  The
Company has no active subsidiaries.

     

    (h)           No Violation or
Default.  The Company is not (i) in violation of its
charter or by-laws or similar organizational documents; (ii) in default,
and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term,
covenant or condition contained in any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company is a party or by
which the Company is bound or to which any of the property or assets of the
Company is subject; or (iii) in violation of any law or statute or any
judgment, order, rule or regulation of any court or arbitrator or governmental
or regulatory authority, except, in the case of each of clauses (ii) and (iii)
above, for any such violation or default that would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect.  To the Company’s knowledge, no other party under any material
contract or other agreement to which it is a party is in default in any respect
thereunder where such default would have a Material Adverse
Effect.

    
      
         

      

      
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    (i)           No Material Adverse
Change.  Except as set forth in or otherwise contemplated by
the Registration Statement (exclusive of any amendment thereof) or the
Prospectus (exclusive of any supplement thereto), since the date of the most
recent financial statements of the Company included or incorporated by reference
in the Registration Statement and the Prospectus and prior to each Settlement
Date, (i) there has not been and will not have been any change in the
capital stock of the Company (except for changes in the number of outstanding
shares of Common Stock of the Company due to the issuance of shares upon the
exercise or conversion of securities exercisable for, or convertible into,
shares of Common Stock outstanding on the date hereof) or long-term debt of the
Company or any dividend or distribution of any kind declared, set aside for
payment, paid or made by the Company on any class of capital stock, that has
resulted in or that would reasonably be expected to result in a Material Adverse
Effect to the Company taken as a whole; (ii) other than this Agreement, the
Company has not entered and will not enter into any transaction or agreement,
not in the ordinary course of business, that is material to the Company taken as
a whole or incurred and will not incur any liability or obligation, direct or
contingent, not in the ordinary course of business, that is material to the
Company taken as a whole; (iii) there has not been any material adverse change
in the business, properties, management, financial position, stockholders’
equity, or results of operations of the Company, taken as a whole; and
(iv) the Company has not sustained any material loss or interference with
its business from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor disturbance or dispute or any action,
order or decree of any court or arbitrator or governmental or regulatory
authority.

     

    (j)           Capitalization.  The
issued and outstanding shares of capital stock of the Company have been validly
issued, are fully paid and nonassessable and, other than as disclosed in or
contemplated by the Registration Statement or the Prospectus, are not subject to
any preemptive rights, rights of first refusal or similar rights.  The
Company has an authorized, issued and outstanding capitalization as set forth in
the Registration Statement and the Prospectus as of the dates referred to
therein (other than the grant of additional options under the Company’s existing
stock option plans, or changes in the number of outstanding shares of Common
Stock of the Company due to the issuance of shares upon the exercise or
conversion of securities exercisable for, or convertible into, shares of Common
Stock outstanding on the date hereof) and such authorized capital stock conforms
to the description thereof set forth in the Registration Statement and the
Prospectus.  The description of the securities of the Company in the
Registration Statement and the Prospectus is complete and accurate in all
material respects.  Except as disclosed in or contemplated by the
Registration Statement or the Prospectus, as of the date referred to therein,
the Company does not have outstanding any options to purchase, or any rights or
warrants to subscribe for, or any securities or obligations convertible into, or
exchangeable for, or any contracts or commitments to issue or sell, any shares
of capital stock or other securities.

     

    (k)           Authorization;
Enforceability.  The Company has full legal right, power and
authority to enter into this Agreement and perform the transactions contemplated
hereby.  This Agreement has been duly authorized, executed and
delivered by the Company and is a legal, valid and binding agreement of the
Company enforceable in accordance with its terms, except to the extent that
(i) enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally
and by general equitable principles and (ii) the indemnification and
contribution provisions of Section 10 hereof may be limited by federal or state
securities laws and public policy considerations in respect
thereof.

    
      
         

      

      
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    (l)           Authorization of Placement
Shares.  The Placement Shares, when issued and delivered
pursuant to the terms approved by the Board of Directors or a duly designated
committee thereof, against payment therefor as provided herein, will be duly and
validly authorized and issued and fully paid and nonassessable, free and clear
of any pledge, lien, encumbrance, security interest or other claim, including
any statutory or contractual preemptive rights, resale rights, rights of first
refusal or other similar rights, and will be registered pursuant to Section 12
of the Exchange Act.  The Placement Shares, when issued, will conform
in all material respects to the description thereof set forth in or incorporated
into the Prospectus.

     

    (m)           No Consents
Required.  No consent, approval, authorization, order,
registration or qualification of or with any court or arbitrator or governmental
or regulatory authority is required for the execution, delivery and performance
by the Company this Agreement, the issuance and sale by the Company of the
Placement Shares, except for the registration of the Placement Shares under the
Act and such consents, approvals, authorizations, orders and registrations or
qualifications as may be required under applicable state securities laws or by
the by-laws and rules of the Financial Industry Regulatory Authority (“FINRA”) or the
Exchange in connection with the sale of the Placement Shares by
MLV.

     

    (n)           No Preferential
Rights.  Except as set forth in the Registration Statement and
the Prospectus, (i) no person, as such term is defined in Rule 1-02 of
Regulation S-X promulgated under the Securities Act (each, a “Person”), has the
right, contractual or otherwise, to cause the Company to issue or sell to such
Person any shares of Common Stock or shares of any other capital stock or other
securities of the Company, (ii) no Person has any preemptive rights, resale
rights, rights of first refusal, or any other rights (whether pursuant to a
“poison pill” provision or otherwise) to purchase any shares of Common Stock or
shares of any other capital stock or other securities of the Company, (iii) no
Person has the right to act as an underwriter or as a financial advisor to the
Company in connection with the offer and sale of the Shares, and (iv) no
Person has the right, contractual or otherwise, to require the Company to
register under the Securities Act any shares of Common Stock or shares of any
other capital stock or other securities of the Company, or to include any such
shares or other securities in the Registration Statement or the offering
contemplated thereby, whether as a result of the filing or effectiveness of the
Registration Statement or the sale of the Placement Shares as contemplated
thereby or otherwise.

     

    (o)           Independent Public
Accountant.  Grant Thornton LLP (the "Accountant"), whose
report on the consolidated financial statements of the Company is filed with the
Commission as part of the Prospectus for the periods ended December 31, 2006,
December 31, 2007 and December 31, 2008, is and, during the periods covered by
their respective reports, was an independent public accountant within the
meaning of the Securities Act and the Public Company Accounting Oversight Board
(United States).  To the Company’s knowledge, after due and careful
inquiry, the Accountant is not in violation of the auditor independence
requirements of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”)
with respect to the Company.

    
      
         

      

      
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    (p)           Enforceability of
Agreements.  To the knowledge of the Company, all agreements
between the Company and third parties expressly referenced in the Prospectus are
legal, valid and binding obligations of the Company enforceable in accordance
with their respective terms, except to the extent that (i) enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting creditors’ rights generally and by general equitable principles
and (ii) the indemnification provisions of certain agreements may be
limited be federal or state securities laws or public policy considerations in
respect thereof and except for any unenforceability that, individually or in the
aggregate, would not unreasonably be expected to have a Material Adverse
Effect.

     

    (q)           No
Litigation.  Except as set forth in the Registration Statement
or the Prospectus, there are no legal, governmental or regulatory actions, suits
or proceedings pending, nor, to the Company’s knowledge, any legal, governmental
or regulatory investigations, to which the Company is a party or to which any
property of the Company is the subject that, individually or in the aggregate,
if determined adversely to the Company, would reasonably be expected to have a
Material Adverse Effect or materially and adversely affect the ability of the
Company to perform its obligations under this Agreement; to the Company’s
knowledge, no such actions, suits or proceedings are threatened or contemplated
by any governmental or regulatory authority or threatened by others; and
(i) there are no current or pending legal, governmental or regulatory
investigations, actions, suits or proceedings that are required under the Act to
be described in the Prospectus that are not so described; and (ii) there
are no contracts or other documents that are required under the Act to be filed
as exhibits to the Registration Statement that are not so filed.

     

    (r)           Licenses and
Permits.  Except as set forth in the Registration Statement or
the Prospectus, the Company possesses or has obtained, and at each Settlement
Date will possess and will have obtained, all licenses, certificates, consents,
orders, approvals, permits and other authorizations issued by, and have made all
declarations and filings with, the appropriate federal, state, local or foreign
governmental or regulatory authorities that are necessary for the ownership or
lease of its properties or the conduct of its business as described in the
Registration Statement and the Prospectus (the “Permits”), except
where the failure to possess, obtain or make the same would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse
Effect.  Except as disclosed in the Registration Statement or the
Prospectus, the Company has not received written notice of any proceeding
relating to revocation or modification of any such Permit and does not have any
reason to believe that such Permit will not be renewed in the ordinary course,
except where the failure to obtain any such renewal would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse
Effect.

     

    (s)           Market
Capitalization.  As of the close of trading on the
Exchange on the Trading Day immediately prior to the date of this Agreement
and the Trading Day immediately prior to the date of each Placement Notice (i)
the aggregate market value of the outstanding voting and non-voting common
equity (as defined in Securities Act Rule 405) of the Company held by persons
other than affiliates of the Company (pursuant to Securities Act Rule 144, those
that directly, or indirectly through one or more intermediaries, control, or are
controlled by, or are under common control with, the Company)  (the “Non-Affiliate
Shares”), was equal to or greater than $75 million  (calculated by
multiplying (x) the price at which the common equity of the Company was last
sold on the Exchange on the Trading Day immediately prior to the date of this
Agreement times (y) the number of Non-Affiliate Shares); or (ii) the aggregate
market value of securities sold by or on behalf of the Company as set forth on
Schedule 4 during the previous 12 calendar months, including the Placement
Shares, is no more than one-third the aggregate market value of the
Non-Affiliate Shares.

    
      
         

      

      
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    (t)           No Material
Defaults.  The Company has not defaulted on any installment on
indebtedness for borrowed money or on any rental on one or more long-term
leases, which defaults, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.  The Company has not filed
a report pursuant to Section 13(a) or 15(d) of the Exchange Act since the filing
of its last Annual Report on Form 10-K, indicating that it (i) has failed
to pay any dividend or sinking fund installment on preferred stock or
(ii) has defaulted on any installment on indebtedness for borrowed money or
on any rental on one or more long-term leases, which defaults, individually or
in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

     

    (u)           Certain Market
Activities.  Neither the Company, nor any of its respective
directors, officers or controlling persons has taken, directly or indirectly,
any action designed, or that has constituted or might reasonably be expected to
cause or result in, under the Exchange Act or otherwise, the stabilization or
manipulation of the price of any security of the Company to facilitate the sale
or resale of the Placement Shares.

     

    (v)           Broker/Dealer
Relationships.  Neither the Company nor any of its related
entities (i) is required to register as a “broker” or “dealer” in
accordance with the provisions of the Exchange Act or (ii) directly or
indirectly through one or more intermediaries, controls or is a “person
associated with a member” or “associated person of a member” (within the meaning
of Article I of the NASD Manual administered by FINRA).

     

    (w)           No
Reliance.  The Company has not relied upon MLV or legal counsel
for MLV for any legal, tax or accounting advice in connection with the offering
and sale of the Placement Shares.

     

    (x)           Taxes.  The
Company has filed all federal, state, local and foreign tax returns which have
been required to be filed and paid all taxes shown thereon through the date
hereof, to the extent that such taxes have become due and are not being
contested in good faith.  Except as otherwise disclosed in or
contemplated by the Registration Statement or the Prospectus, no tax deficiency
has been determined adversely to the Company which has had, or would reasonably
be expected to have, individually or in the aggregate, a Material Adverse
Effect.  The Company has no knowledge of any federal, state or other
governmental tax deficiency, penalty or assessment which has been or might be
asserted or threatened against it which could have a Material Adverse
Effect.

     

    (y)           Title to Real and Personal
Property.  Except as set forth in the Registration Statement or
the Prospectus, the Company has good and valid title in fee simple to all items
of real property and good and valid title to all personal property described in
the Registration Statement or Prospectus as being owned by it that are material
to the business of the Company, in each case free and clear of all liens,
encumbrances and claims, except those that (i) do not materially interfere
with the use made and proposed to be made of such property by the Company or
(ii) would not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect.  Any real property described in the
Registration Statement or Prospectus as being leased by the Company is held by
it under valid, existing and enforceable leases, except those that (A) do
not materially interfere with the use made or proposed to be made of such
property by the Company or (B) would not be reasonably expected,
individually or in the aggregate, to have a Material Adverse
Effect.

    
      
         

      

      
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    (z)           Intellectual
Property.  Except as set forth in the Registration Statement or
the Prospectus, the Company owns or possesses adequate enforceable rights to use
all patents, patent applications, trademarks (both registered and unregistered),
service marks, trade names, trademark registrations, service mark registrations,
copyrights, licenses and know-how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or
procedures) (collectively, the “Intellectual
Property”), necessary for the conduct of its business as conducted as of
the date hereof, except to the extent that the failure to own or possess
adequate rights to use such Intellectual Property would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect; the
Company has not received any written notice of any claim of infringement or
conflict which asserted Intellectual Property rights of others, which
infringement or conflict, if the subject of an unfavorable decision, would
result in a Material Adverse Effect; the Company has conducted reasonable
searches of the United States patents of record and to the Company's knowledge
none of the Company’s patents or patent applications interfere with any other
United States patents; the Company has conducted an infringement search and
determined that, to the Company's knowledge, no valid and enforceable patent
held by any third party is infringed by the activities of the Company; there are
no pending, or to the Company’s knowledge, threatened judicial proceedings or
interference proceedings challenging the Company’s rights in or to or the
validity of the scope of any of the Company’s patents, patent applications or
proprietary information; to the Company's knowledge no other entity or
individual has any right or claim in any of the Company’s patents, patent
applications or any patent to be issued therefrom by virtue of any contract,
license or other agreement entered into between such entity or individual and
the Company or by any non-contractual obligation, other than by written licenses
granted by the Company; the Company has not received any written notice of any
claim challenging the rights of the Company in or to any Intellectual Property
owned, licensed or optioned by the Company which claim, if the subject of an
unfavorable decision would result in an Material Adverse Effect.

     

    (aa)           Compliance
Program.  The Company has established and administers a
compliance program applicable to the Company, to assist the Company and the
directors, officers and employees of the Company in complying with applicable
regulatory guidelines.

     

    (bb)           Environmental
Laws.  Except as set forth in the Registration Statement or the
Prospectus, the Company (i) is in compliance with any and all applicable
federal, state, local and foreign laws, rules, regulations, decisions and orders
relating to the protection of human health and safety, the environment or
hazardous or toxic substances or wastes, pollutants or contaminants
(collectively, “Environmental Laws”);
(ii) has received and is in compliance with all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their
respective businesses as described in the Registration Statement and the
Prospectus; and (iii) has not received notice of any actual or potential
liability for the investigation or remediation of any disposal or release of
hazardous or toxic substances or wastes, pollutants or contaminants, except, in
the case of any of clauses (i), (ii) or (iii) above, for any such failure to
comply or failure to receive required permits, licenses, other approvals or
liability as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

    
      
         

      

      
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    (cc)           Disclosure
Controls.  The Company maintains systems of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles
and to maintain asset accountability; (iii) access to assets is permitted
only in accordance with management’s general or specific authorization; and
(iv) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to
any differences.  The Company has established disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company
and designed such disclosure controls and procedures to ensure that material
information relating to the Company is made known to the certifying officers by
others within those entities, particularly during the period in which the
Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the
case may be, is being prepared.  The Company’s certifying officers
have evaluated the effectiveness of the Company’s controls and procedures as of
a date within 90 days prior to the filing date of the Form 10-K for the fiscal
year ended December 31, 2008 (such date, the “Evaluation
Date”).  The Company presented in its Form 10-K for the fiscal
year ended December 31, 2008 the conclusions of the certifying officers about
the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date.  Since the Evaluation Date,
there have been no significant changes in the Company’s internal controls (as
such term is defined in Item 307(b) of Regulation S-K under the Act) or, to the
Company’s knowledge, in other factors that could significantly affect the
Company’s internal controls.

     

    (dd)           Sarbanes-Oxley.  To
the knowledge of the Company, there is and has been no failure on the part of
the Company and any of the Company’s directors or officers, in their capacities
as such, to comply with any applicable provisions of the Sarbanes-Oxley Act and
the rules and regulations promulgated thereunder.  Each of the
principal executive officer and the principal financial officer of the Company
(or each former principal executive officer of the Company and each former
principal financial officer of the Company as applicable) has made all
certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with
respect to all reports, schedules, forms, statements and other documents
required to be filed by it or furnished by it to the Commission.  For
purposes of the preceding sentence, “principal executive officer” and “principal
financial officer” shall have the meanings given to such terms in the
Sarbanes-Oxley Act.

     

    (ee)           Finder’s
Fees.  The Company has not incurred any liability for any
finder’s fees, brokerage commissions or similar payments in connection with the
transactions herein contemplated, except as may otherwise exist with respect to
MLV pursuant to this Agreement.

     

    (ff)           Labor
Disputes.  No labor disturbance by or dispute with employees of
the Company exists or, to the knowledge of the Company, is threatened which
would reasonably be expected to result in a Material Adverse
Effect

    
      
         

      

      
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    (gg)           Investment Company
Act. The Company, after giving effect to the offering and sale of the
Placement Shares, will not be an “investment company” or an entity “controlled”
by an “investment company,” as such terms are defined in the Investment Company
Act of 1940, as amended (the “Investment Company
Act”).

     

    (hh)           Operations.  The
operations of the Company are and have been conducted at all times in compliance
with applicable financial record keeping and reporting requirements of the
Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all jurisdictions to which the Company is subject, the
rules and regulations thereunder and any related or similar rules, regulations
or guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering
Laws”), except as would not reasonably be expected to result in a
Material Adverse Effect; and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving the
Company with respect to the Money Laundering Laws is pending or, to the
knowledge of the Company, threatened.

     

    (ii)           Off-Balance Sheet
Arrangements.  There are no transactions, arrangements and
other relationships between and/or among the Company, and/or, to the knowledge
of the Company, any of its affiliates and any unconsolidated entity, including,
but not limited to, any structural finance, special purpose or limited purpose
entity (each, an “Off
Balance Sheet Transaction”) that could reasonably be expected to affect
materially the Company’s liquidity or the availability of or requirements for
its capital resources, including those Off Balance Sheet Transactions described
in the Commission’s Statement about Management’s Discussion and Analysis of
Financial Conditions and Results of Operations (Release Nos.  33-8056;
34-45321; FR-61), required to be described in the Prospectus which have not been
described as required.

     

    (jj)           Underwriter
Agreements.  The Company is not a party to any agreement with
an agent or underwriter for any other “at-the-market” or continuous equity
transaction.

     

    (kk)           ERISA.  To
the knowledge of the Company, each material employee benefit plan, within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”), that is
maintained, administered or contributed to by the Company or any of its
affiliates for employees or former employees of the Company has been maintained
in material compliance with its terms and the requirements of any applicable
statutes, orders, rules and regulations, including but not limited to ERISA and
the Internal Revenue Code of 1986, as amended (the “Code”); no prohibited
transaction, within the meaning of Section 406 of ERISA or Section 4975 of the
Code, has occurred which would result in a material liability to the Company
with respect to any such plan excluding transactions effected pursuant to a
statutory or administrative exemption; and for each such plan that is subject to
the funding rules of Section 412 of the Code or Section 302 of ERISA, no
“accumulated funding deficiency” as defined in Section 412 of the Code has been
incurred, whether or not waived, and the fair market value of the assets of each
such plan (excluding for these purposes accrued but unpaid contributions)
exceeds the present value of all benefits accrued under such plan determined
using reasonable actuarial assumptions.

    
      
         

      

      
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    (ll)           Forward Looking
Statements.  No forward-looking statement (within the meaning
of Section 27A of the Securities Act and Section 21E of the Exchange Act) (a
“Forward Looking
Statement”) contained in the Registration Statement and the Prospectus
has been made or reaffirmed without a reasonable basis or has been disclosed
other than in good faith.  The Forward Looking Statements incorporated
by reference in the Registration Statement and the Prospectus from the Company’s
Annual Report on Form 10-K for the fiscal year most recently ended (i) are
within the coverage of the safe harbor for forward looking statements set forth
in Section 27A of the Act, Rule 175(b) under the Act or Rule 3b-6 under the
Exchange Act, as applicable, (ii) were made by the Company with a
reasonable basis and in good faith and reflect the Company’s good faith
commercially reasonable best estimate of the matters described therein, and
(iii) have been prepared in accordance with Item 10 of Regulation S-K under
the Act.

     

    (mm)         MLV
Purchases.  The Company acknowledges and agrees that MLV has
informed the Company that MLV may, to the extent permitted under the Securities
Act and the Exchange Act, purchase and sell shares of Common Stock for its own
account while this Agreement is in effect, provided, that (i) no such
purchase or sales shall take place while a Placement Notice is in effect (except
to the extent MLV may engage in sales of Placement Shares purchased or deemed
purchased from the Company as a “riskless principal” or in a similar capacity)
and (ii) the Company shall not be deemed to have authorized or consented to
any such purchases or sales by MLV.

     

    (nn)           Margin
Rules.  Neither the issuance, sale and delivery of the Shares
nor the application of the proceeds thereof by the Company as described in the
Registration Statement and the Prospectus will violate Regulation T, U or X of
the Board of Governors of the Federal Reserve System or any other regulation of
such Board of Governors.

     

    (oo)           Insurance.  The
Company carries, or is covered by, insurance in such amounts and covering such
risks as the Company reasonably believe are adequate for the conduct of its
properties and as is customary for companies engaged in similar businesses in
similar industries.

     

    (pp)           No Improper
Practices.  (i) Neither the Company, nor to the Company’s
knowledge, any of its respective executive officers has, in the past five years,
made any unlawful contributions to any candidate for any political office (or
failed fully to disclose any contribution in violation of law) or made any
contribution or other payment to any official of, or candidate for, any federal,
state, municipal, or foreign office or other person charged with similar public
or quasi-public duty in violation of any law or of the character required to be
disclosed in the Prospectus; (ii) no relationship, direct or indirect,
exists between or among the Company or, to the Company’s knowledge any
affiliate, on the one hand, and the directors, officers and stockholders of the
Company, on the other hand, that is required by the Securities Act to be
described in the Registration Statement and the Prospectus that is not so
described; (iii) no relationship, direct or indirect, exists between or
among the Company or any affiliate, on the one hand, and the directors,
officers, stockholders or directors of the Company, on the other hand, that is
required by the rules of FINRA to be described in the Registration Statement and
the Prospectus that is not so described; and (iv) except as described in
the Prospectus, there are no material outstanding loans or advances or material
guarantees of indebtedness by the Company to or for the benefit of any of its
officers or directors or any of the members of the families of any of
them.

    
      
         

      

      
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    (qq)          Status Under the Securities
Act.  The Company was not and is not an ineligible issuer as
defined in Rule 405 under the Securities Act at the times specified in Rules 164
and 433 under the Act in connection with the offering of the
Shares.

     

    (rr)     
      No Misstatement or Omission
in an Issuer Free Writing Prospectus.  Each issuer free writing
prospectus, as defined in Rule 405 under the Act (an “Issuer Free Writing
Prospectus,” and together with the Preliminary Prospectus the “Pricing Disclosure
Materials”), when considered together with the Pricing Disclosure
Materials as of the applicable Point of Sale, did not or will not contain an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided, however,
that the Company makes no representation or warranty with respect to any
statement contained in any Issuer Free Writing Prospectus in reliance upon and
in conformity with information concerning MLV and furnished by MLV to the
Company expressly for use in the Issuer Free Writing Prospectus.

     

    (ss)          Conformity of Issuer Free
Writing Prospectus.  Each Issuer Free Writing Prospectus
conformed or will conform in all material respects to the requirements of the
Act on the date of first use, and the Company has complied or will comply with
any filing requirements applicable to such Issuer Free Writing Prospectus
pursuant to the Act.  Each Issuer Free Writing Prospectus, as of its
issue date and at all subsequent times through the completion of the public
offer and sale of the Shares, did not, does not and will not include any
information that conflicted, conflicts or will conflict with the information
contained in the Registration Statement or the Prospectus, including any
document incorporated by reference therein that has not been superseded or
modified.  The Company has not made any offer relating to the Shares
that would constitute an Issuer Free Writing Prospectus without the prior
written consent of MLV.  The Company has retained in accordance with
the Act all Issuer Free Writing Prospectuses that were not required to be filed
pursuant to the Act.

     

    (tt)           Pricing Disclosure
Materials.  The Pricing Disclosure Materials did not, as of the
applicable Point of Sale contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading; provided, however, that the Company makes no representation or
warranty with respect to any statement contained in the Pricing Disclosure
Materials in reliance upon and in conformity with information concerning MLV and
furnished in writing by MLV to the Company expressly for use in the Pricing
Disclosure Materials.

    
      
         

      

      
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    (uu)           No
Conflicts.  Neither the execution of this Agreement, nor the
issuance, offering or sale of the Shares, nor the consummation of any of the
transactions contemplated herein and therein, nor the compliance by the Company
with the terms and provisions hereof and thereof will conflict with, or will
result in a breach of, any of the terms and provisions of, or has constituted or
will constitute a default under, or has resulted in or will result in the
creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Company pursuant to the terms of any contract or other agreement
to which the Company may be bound or to which any of the property or assets of
the Company is subject, except (i) such conflicts, breaches or defaults as may
have been waived and (ii) such conflicts, breaches and defaults that would not
have a Material Adverse Effect; nor will such action result (x) in any violation
of the provisions of the organizational or governing documents of the Company,
or (y) in any material violation of the provisions of any statute or any order,
rule or regulation applicable to the Company or of any court or of any federal,
state or other regulatory authority or other government body having jurisdiction
over the Company.

     

    (vv)           Stock Transfer
Taxes.  On each Settlement Date, all stock transfer or other
taxes (other than income taxes) which are required to be paid in connection with
the sale and transfer of the Shares to be sold hereunder will be, or will have
been, fully paid or provided for by the Company and all laws imposing such taxes
will be or will have been fully complied with.

     

    7.      
     Covenants of the
Company.  The Company covenants and agrees with MLV
that:

     

    (a)           Registration Statement
Amendments.  After the date of this Agreement and during any
period in which a Prospectus relating to any Placement Shares is required to be
delivered by MLV under the Securities Act (including in circumstances where such
requirement may be satisfied pursuant to Rule 172 under the Securities Act),
(i) the Company will notify MLV promptly of the time when any subsequent
amendment to the Registration Statement, other than documents incorporated by
reference, has been filed with the Commission and/or has become effective or any
subsequent supplement to the Prospectus has been filed and of any request by the
Commission for any amendment or supplement to the Registration Statement or
Prospectus or for additional information, (ii) the Company will prepare and
file with the Commission, promptly upon MLV’s request, any amendments or
supplements to the Registration Statement or Prospectus that, in MLV’s
reasonable opinion, may be necessary or advisable in connection with the
distribution of the Placement Shares by MLV (provided, however, that the failure
of MLV to make such request shall not relieve the Company of any obligation or
liability hereunder, or affect MLV’s right to rely on the representations and
warranties made by the Company in this Agreement and provided, further, that the
only remedy MLV shall have with respect to the failure to make such filing shall
be to cease making sales under this Agreement until such amendment or supplement
is filed); (iii) the Company will not file any amendment or supplement to
the Registration Statement or Prospectus relating to the Placement Shares or a
security convertible into the Placement Shares unless a copy thereof has been
submitted to MLV within a reasonable period of time before the filing and MLV
has not reasonably objected thereto (provided, however, that the failure of MLV
to make such objection shall not relieve the Company of any obligation or
liability hereunder, or affect MLV’s right to rely on the representations and
warranties made by the Company in this Agreement and provided, further, that the
only remedy MLV shall have with respect to the failure by the Company to obtain
such consent shall be to cease making sales under this Agreement) and the
Company will furnish to MLV at the time of filing thereof a copy of any document
that upon filing is deemed to be incorporated by reference into the Registration
Statement or Prospectus, except for those documents available via EDGAR; and
(iv) the Company will cause each amendment or supplement to the Prospectus
to be filed with the Commission as required pursuant to the applicable paragraph
of Rule 424(b) of the Securities Act or, in the case of any document to be
incorporated therein by reference, to be filed with the Commission as required
pursuant to the Exchange Act, within the time period prescribed (the
determination to file or not file any amendment or supplement with the
Commission under this Section 7(a), based on the Company’s reasonable opinion or
reasonable objections, shall be made exclusively by the
Company).

    
      
         

      

      
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    (b)           Notice of Commission Stop
Orders.  The Company will advise MLV, promptly after it
receives notice or obtains knowledge thereof, of the issuance or threatened
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement, of the suspension of the qualification of the Placement
Shares for offering or sale in any jurisdiction, or of the initiation or
threatening of any proceeding for any such purpose; and it will promptly use its
commercially reasonable efforts to prevent the issuance of any stop order or to
obtain its withdrawal if such a stop order should be issued.  The
Company will advise MLV promptly after it receives any request by the Commission
for any amendments to the Registration Statement or any amendment or supplements
to the Prospectus or any Issuer Free Writing Prospectus or for additional
information related to the offering of the Shares or for additional information
related to the Registration Statement, the Prospectus or any Issuer Free Writing
Prospectus.

     

    (c)           Delivery of Prospectus;
Subsequent Changes.  During any period in which a Prospectus
relating to the Placement Shares is required to be delivered by MLV under the
Securities Act with respect to the offer and sale of the Placement Shares,
(including in circumstances where such requirement may be satisfied pursuant to
Rule 172 under the Securities Act), the Company will comply with all
requirements imposed upon it by the Securities Act, as from time to time in
force, and to file on or before their respective due dates all reports and any
definitive proxy or information statements required to be filed by the Company
with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other
provision of or under the Exchange Act.  If the Company has omitted
any information from the Registration Statement pursuant to Rule 430A under the
Act, it will use its best efforts to comply with the provisions of and make all
requisite filings with the Commission pursuant to said Rule 430A and to notify
MLV promptly of all such filings.  If during such period any event
occurs as a result of which the Prospectus as then amended or supplemented would
include an untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances then
existing, not misleading, or if during such period it is necessary to amend or
supplement the Registration Statement or Prospectus to comply with the
Securities Act, the Company will promptly notify MLV to suspend the offering of
Placement Shares during such period and the Company will promptly amend or
supplement the Registration Statement or Prospectus (at the expense of the
Company) so as to correct such statement or omission or effect such compliance;
provided, however, that the Company may delay any such amendment or supplement,
if in the judgment of the Company, it is in the best interests of the Company to
do so.

     

    (d)           Listing of Placement
Shares.  During any period in which the Prospectus relating to
the Placement Shares is required to be delivered by MLV under the Securities Act
with respect to the offer and sale of the Placement Shares, the Company will use
its reasonable best efforts to cause the Placement Shares to be listed on the
Exchange and to qualify the Placement Shares for sale under the securities laws
of such jurisdictions as MLV reasonably designates and to continue such
qualifications in effect so long as required for the distribution of the
Placement Shares; provided, however, that the Company shall not be required in
connection therewith to qualify as a foreign corporation or dealer in securities
or file a general consent to service of process in any
jurisdiction.

    
      
         

      

      
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    (e)           Delivery of Registration
Statement and Prospectus.  The Company will furnish to MLV and
its counsel (at the expense of the Company) copies of the Registration
Statement, the Prospectus (including all documents incorporated by reference
therein) and all amendments and supplements to the Registration Statement or
Prospectus that are filed with the Commission during any period in which a
Prospectus relating to the Placement Shares is required to be delivered under
the Securities Act (including all documents filed with the Commission during
such period that are deemed to be incorporated by reference therein), in each
case as soon as reasonably practicable and in such quantities as MLV may from
time to time reasonably request and, at MLV’s request, will also furnish copies
of the Prospectus to each exchange or market on which sales of the Placement
Shares may be made; provided, however, that the Company shall not be required to
furnish any document (other than the Prospectus) to MLV to the extent such
document is available on EDGAR.

     

    (f)           Earnings
Statement.  The Company will make generally available to its
security holders as soon as practicable, but in any event not later than 15
months after the end of the Company’s current fiscal quarter, an earnings
statement covering a 12-month period that satisfies the provisions of Section
11(a) and Rule 158 of the Securities Act.

     

    (g)           Expenses.  The
Company, whether or not the transactions contemplated hereunder are consummated
or this Agreement is terminated, in accordance with the provisions of Section 12
hereunder, will pay all expenses incident to the performance of its obligations
hereunder, including, but not limited to, expenses relating to (i) the
preparation, printing and filing of the Registration Statement and each
amendment and supplement thereto, of each Prospectus and of each amendment and
supplement thereto, (ii) the preparation, issuance and delivery of the
Placement Shares, (iii) the qualification of the Placement Shares under
securities laws in accordance with the provisions of Section 7(d) of this
Agreement, including filing fees, (iv) the printing and delivery to MLV of
copies of the Prospectus and any amendments or supplements thereto, and of this
Agreement, (v) the fees and expenses incurred in connection with the
listing or qualification of the Placement Shares for trading on the Exchange,
(vi) filing fees and expenses, if any, of the Commission and the FINRA
Corporate Financing Department.  MLV will pay all expenses incident to
the performance of its obligations hereunder.

     

    (h)           Use of
Proceeds.  The Company will use the Net Proceeds as described
in the Prospectus in the section entitled “Use of Proceeds.”

    
      
         

      

      
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    (i)           Notice of Other
Sales.  Without the prior written consent of MLV, the Company
will not, directly or indirectly, offer to sell, sell, contract to sell, grant
any option to sell or otherwise dispose of any shares of Common Stock (other
than the Shares offered pursuant to the provisions of this Agreement) or
securities convertible into or exchangeable for Common Stock, warrants or any
rights to purchase or acquire, Common Stock during the period beginning on the
fifth (5th) Trading Day immediately prior to the date on which any Placement
Notice is delivered to MLV hereunder and ending on the fifth (5th) Trading Day
immediately following the final Settlement Date with respect to Placement Shares
sold pursuant to such Placement Notice (or, if the Placement Notice has been
terminated or suspended prior to the sale of all Shares covered by a Placement
Notice, the date of such suspension or termination); and will not directly or
indirectly in any other “at-the-market” or continuous equity transaction offer
to sell, sell, contract to sell, grant any option to sell or otherwise dispose
of any shares of Common Stock (other than the Shares offered pursuant to the
provisions of this Agreement) or securities convertible into or exchangeable for
Common Stock, warrants or any rights to purchase or acquire, Common Stock prior
to the later of the termination of this Agreement and the thirtieth (30th) day
immediately following the final Settlement Date with respect to Placement Shares
sold pursuant to such Placement Notice; provided, however, that such
restrictions will not be required in connection with the Company’s issuance or
sale of (i) Common Stock, options to purchase shares of Common Stock or
Common Stock issuable upon the exercise of options, pursuant to any employee or
director stock option or benefits plan, stock ownership plan or dividend
reinvestment plan (but not shares subject to a waiver to exceed plan limits in
its dividend reinvestment plan) of the Company whether now in effect or
hereafter implemented, and (ii) Common Stock issuable upon conversion of
securities or the exercise of warrants, options or other rights in effect or
outstanding, and disclosed in filings by the Company available on EDGAR or
otherwise in writing to MLV.

     

    (j)           Change of
Circumstances.  The Company will, at any time during the
pendency of a Placement Notice advise MLV promptly after it shall have received
notice or obtained knowledge thereof, of any information or fact that would
alter or affect in any material respect any opinion, certificate, letter or
other document required to be provided to MLV pursuant to this
Agreement.

     

    (k)           Due Diligence
Cooperation.  The Company will cooperate with any reasonable
due diligence review conducted by MLV or its agents in connection with the
transactions contemplated hereby, including, without limitation, providing
information and making available documents and senior corporate officers, during
regular business hours and at the Company’s principal offices, as MLV may
reasonably request.

     

    (l)           Required Filings Relating to
Placement of Placement Shares.  The Company agrees that on such
dates as the Securities Act shall require, the Company will (i) file a
prospectus supplement with the Commission under the applicable paragraph of Rule
424(b) under the Securities Act (each and every filing under Rule 424(b), a
“Filing Date”),
which prospectus supplement will set forth, within the relevant period, the
maximum amount of Placement Shares to be sold through MLV and the compensation
payable by the Company to MLV with respect to such Placement Shares, and
(ii) deliver such number of copies of each such prospectus supplement to
each exchange or market on which such sales were effected as may be required by
the rules or regulations of such exchange or market.

    
      
         

      

      
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    (m)           Representation Dates;
Certificate.  During the term of this Agreement, on the date of
the first Placement Notice given hereunder and each time the Company
(i) files the Prospectus relating to the Placement Shares or amends or
supplements the Registration Statement or the Prospectus relating to the
Placement Shares (other than a prospectus supplement filed in accordance with
Section 7(l) of this Agreement) by means of a post-effective amendment, sticker,
or supplement but not by means of incorporation of document(s) by reference to
the Registration Statement or the Prospectus relating to the Placement Shares;
(ii) files an annual report on Form 10-K under the Exchange Act;
(iii) files its quarterly reports on Form 10-Q under the Exchange Act;
(iv) files a report on Form 8-K containing amended financial information
(other than an earnings release, to “furnish” information pursuant to Items 2.02
or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K
relating to the reclassifications of certain properties as discontinued
operations in accordance with Statement of Financial Accounting Standards No.
144) under the Exchange Act or (v) files a Form 8-K under the Exchange Act
for any other purpose (other than to “furnish” information pursuant to Items
2.02 or 7.01 of revised Form 8-K) (each date of filing of one or more of the
documents referred to in clauses (i) through (v) shall be a “Representation
Date”); the Company shall furnish MLV (but in the case of clause (v)
above only if MLV reasonably determines that the information contained in such
Form 8-K is material) with a certificate, in the form attached hereto as Exhibit
7(m).  The requirement to provide a certificate under this Section
7(m) shall be waived for any Representation Date occurring at a time at which no
Placement Notice is pending, which waiver shall continue until the earlier to
occur of the date the Company next delivers a Placement Notice hereunder (which
for such calendar quarter shall be considered a Representation Date) and the
next occurring Representation Date; provided, however, that such waiver shall
not apply for any Representation Date on which the Company files its annual
report on Form 10-K.  Notwithstanding the foregoing, if the Company
subsequently decides to sell Placement Shares following a Representation Date
when the Company relied on such waiver and did not provide MLV with a
certificate under this Section 7(m), then before the Company delivers the
Placement Notice or MLV sells any Placement Shares, the Company shall provide
MLV with a certificate, in the form attached hereto as Exhibit 7(m), dated the
date of the Placement Notice.

     

    (n)           Legal
Opinion.  Within ten days following the date of this Agreement
(but, in no event, later than the date of the initial Placement Notice given
hereunder) and, thereafter, within ten days following each date that the Company
files an annual report on Form 10-K under the Exchange Act or a quarterly report
on Form 10-Q under the Exchange Act during the term of this Agreement, the
Company shall cause to be furnished to MLV a written opinion of Ballard Spahr
LLP (“Company
Counsel”), or other counsel satisfactory to MLV, in form and substance
satisfactory to MLV and its counsel, substantially similar to the form attached
hereto as Exhibit 7(n), modified, as necessary, to relate to the Registration
Statement and the Prospectus as then amended or supplemented; provided, however,
the Company shall be required to furnish to MLV no more than one opinion
hereunder per calendar quarter; provided, further, that in lieu of such opinions
for subsequent periodic filings under the Exchange Act, counsel may furnish MLV
with a letter (a “Reliance Letter”) to
the effect that MLV may rely on a prior opinion delivered under this Section
7(n) to the same extent as if it were dated the date of such letter (except that
statements in such prior opinion shall be deemed to relate to the Registration
Statement and the Prospectus as amended or supplemented as of the date of the
Reliance Letter).

    
      
         

      

      
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    (o)           Comfort
Letter.  No later than ten Trading Days following the date the
Company files its annual report on Form 10-K for the year ended December 31,
2009 and thereafter within ten Trading Days following each subsequent date the
Company files an annual report on Form 10-K under the Exchange Act, during any
period in which the Prospectus relating to the Placement Shares is required to
be delivered by MLV (including in circumstances where such requirement may be
satisfied pursuant to Rule 172 under the Act) and with respect to which the
Company is obligated to deliver a certificate in the form attached hereto as
Exhibit 7(m) for which no waiver is applicable, the Company shall cause its
independent accountants to furnish MLV letters (the “Comfort Letters”),
dated the date the Comfort Letter is delivered; provided, that if requested by
MLV, the Company shall cause a Comfort Letter to be furnished to MLV within ten
Trading Days of the date of occurrence of any material transaction or event,
including the restatement of the Company's financial statements.  The
Comfort Letter from the Company's independent public accounting firm shall be in
a form and substance satisfactory to MLV, (i) confirming that they are an
independent public accounting firm within the meaning of the Securities Act and
the PCAOB, (ii) stating, as of such date, the conclusions and findings of
such firm with respect to the financial information and other matters ordinarily
covered by accountants’ “comfort letters” to underwriters in connection with
registered public offerings (the first such letter, the “Initial Comfort
Letter”) and (iii) updating the Initial Comfort Letter with any
information that would have been included in the Initial Comfort Letter had it
been given on such date and modified as necessary to relate to the Registration
Statement and the Prospectus, as amended and supplemented to the date of such
letter.

    (p)           Market
Activities.  The Company will not, directly or indirectly,
(i) take any action designed to cause or result in, or that constitutes or
might reasonably be expected to constitute, the stabilization or manipulation of
the price of any security of the Company to facilitate the sale or resale of the
Shares or (ii) sell, bid for, or purchase the Shares, or pay anyone any
compensation for soliciting purchases of the Shares other than MLV.

     

    (q)           Investment Company
Act.  The Company will conduct its affairs in such a manner so
as to reasonably ensure that it will not be or become, at any time prior to the
termination of this Agreement, an “investment company,” as such term is defined
in the Investment Company Act, assuming no change in the Commission’s current
interpretation as to entities that are not considered an investment
company.

     

    (r)           No Offer to
Sell.  Other than an Issuer Free Writing Prospectus approved in
advance by the Company and MLV in its capacity as principal or agent hereunder,
neither MLV nor the Company (including its agents and representatives, other
than MLV in its capacity as such) will make, use, prepare, authorize, approve or
refer to any written communication (as defined in Rule 405 under the Act),
required to be filed with the Commission, that constitutes an offer to sell or
solicitation of an offer to buy Shares hereunder.

     

    (s)           Sarbanes-Oxley
Act.  The Company will maintain and keep accurate books and
records reflecting its assets and maintain internal accounting controls in a
manner designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles and
including those policies and procedures that (i) pertain to the maintenance
of records that in reasonable detail accurately and fairly reflect the
transactions and dispositions of the assets of the Company, (ii) provide
reasonable assurance that transactions are recorded as necessary to permit the
preparation of the Company’s consolidated financial statements in accordance
with generally accepted accounting principals, (iii) that receipts and
expenditures of the Company are being made only in accordance with management’s
and the Company’s directors’ authorization, and (iv) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition,
use or disposition of the Company’s assets that could have a material effect on
its financial statements.  The Company will maintain such controls and
other procedures, including, without limitation, those required by Sections 302
and 906 of the Sarbanes-Oxley Act, and the applicable regulations thereunder
that are designed to ensure that information required to be disclosed by the
Company in the reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified
in the Commission’s rules and forms, including, without limitation, controls and
procedures designed to ensure that information required to be disclosed by the
Company in the reports that it files or submits under the Exchange Act is
accumulated and communicated to the Company’s management, including its Chief
Executive Officer and principal financial officer, or persons performing similar
functions, as appropriate to allow timely decisions regarding required
disclosure and to ensure that material information relating to the Company is
made known to them, particularly during the period in which such periodic
reports are being prepared.

    
      
         

      

      
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    8.           Covenants of
MLV.  MLV covenants and agrees that it is duly registered as a
broker-dealer under FINRA, the Exchange Act and the applicable statutes and
regulations of each state in which the Shares will be offered and sold, except
such states in which MLV is exempt from registration or such registration is not
otherwise required.  MLV shall continue, for the term of this
Agreement, to be duly registered as a broker-dealer under FINRA, the Exchange
Act and the applicable statutes and regulations of each state in which the
Shares will be offered and sold, except such states in which MLV is exempt from
registration or such registration is not otherwise required, during the term of
this Agreement.

     

    9.           Conditions to MLV’s
Obligations.  The obligations of MLV hereunder with respect to
a Placement will be subject to the continuing accuracy and completeness of the
representations and warranties made by the Company herein, to the due
performance by the Company of its obligations hereunder, to the completion by
MLV of a due diligence review satisfactory to MLV in its reasonable judgment,
and to the continuing satisfaction (or waiver by MLV in its sole discretion) of
the following additional conditions:

     

    (a)           Registration Statement
Effective.  The Registration Statement shall have become
effective and shall be available for the (i) resale of all Placement Shares
issued to MLV and not yet sold by MLV and (ii) the sale of all Placement
Shares contemplated to be issued by any Placement Notice.

     

    (b)           No Material
Notices.  None of the following events shall have occurred and
be continuing: (i) receipt by the Company of any request for additional
information from the Commission or any other federal or state governmental
authority during the period of effectiveness of the Registration Statement, the
response to which would require any post-effective amendments or supplements to
the Registration Statement or the Prospectus; (ii) the issuance by the
Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose; (iii) receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Placement Shares for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose; or (iv) the occurrence of any event that makes any material
statement made in the Registration Statement or the Prospectus or any material
document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires the making of any changes in the
Registration Statement, related Prospectus or documents so that, in the case of
the Registration Statement, it will not contain any materially untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading and, that in
the case of the Prospectus, it will not contain any materially untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    (c)           No Misstatement or Material
Omission.  MLV shall not have advised the Company that the
Registration Statement or Prospectus, or any amendment or supplement thereto,
contains an untrue statement of fact that in MLV’s reasonable opinion is
material, or omits to state a fact that in MLV’s opinion is material and is
required to be stated therein or is necessary to make the statements therein not
misleading.

     

    (d)           Material
Changes.  Except as contemplated in the Prospectus, or
disclosed in the Company’s reports filed with the Commission, there shall not
have been any material adverse change, on a consolidated basis, in the
authorized capital stock of the Company or any Material Adverse Effect, or any
development that could reasonably be expected to cause a Material Adverse
Effect, or a downgrading in or withdrawal of the rating assigned to any of the
Company’s securities (other than asset backed securities) by any rating
organization or a public announcement by any rating organization that it has
under surveillance or review its rating of any of the Company’s securities
(other than asset backed securities), the effect of which, in the case of any
such action by a rating organization described above, in the reasonable judgment
of MLV (without relieving the Company of any obligation or liability it may
otherwise have), is so material as to make it impracticable or inadvisable to
proceed with the offering of the Placement Shares on the terms and in the manner
contemplated in the Prospectus.

     

    (e)           Legal
Opinion.  MLV shall have received the opinions of Company
Counsel required to be delivered pursuant Section 7(n) on or before the date on
which such delivery of such opinion is required pursuant to Section
7(n).

     

    (f)            Comfort
Letter.  MLV shall have received the Comfort Letter required to
be delivered pursuant Section 7(o) on or before the date on which such delivery
of such opinion is required pursuant to Section 7(o).

     

    (g)           Representation
Certificate.  MLV shall have received the certificate required
to be delivered pursuant to Section 7(m) on or before the date on which delivery
of such certificate is required pursuant to Section 7(m).

     

    (h)           No
Suspension.  Trading in the Shares shall not have been
suspended on the Exchange.

     

    (i)           Other
Materials.  On each date on which the Company is required to
deliver a certificate pursuant to Section 7(m), the Company shall have furnished
to MLV such appropriate further information, certificates and documents as MLV
may reasonably request and as are usually and customarily furnished pursuant to
a securities offering.  All such opinions, certificates, letters and
other documents will be in compliance with the provisions hereof.  The
Company will furnish MLV with such conformed copies of such opinions,
certificates, letters and other documents as MLV shall reasonably
request.

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    (j)           Securities Act Filings
Made.  All filings with the Commission required by Rule 424
under the Securities Act to have been filed prior to the issuance of any
Placement Notice hereunder shall have been made within the applicable time
period prescribed for such filing by Rule 424.

     

    (k)           Approval for
Listing.  The Placement Shares shall either have been approved
for listing on the Exchange, subject only to notice of issuance, or the
Company shall have filed an application for listing of the Placement Shares on
the Exchange at, or prior to, the issuance of any Placement Notice.

     

    (l)           No Termination
Event.  There shall not have occurred any event that would
permit MLV to terminate this Agreement pursuant to Section 12(a).

     

    10.         Indemnification and
Contribution.

     

    (a)           Company
Indemnification.  The Company agrees to indemnify and hold
harmless MLV, the directors, officers, partners, employees and agents of MLV and
each person, if any, who (i) controls MLV within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act, or (ii) is
controlled by or is under common control with MLV (a “MLV Affiliate”) from
and against any and all losses, claims, liabilities, expenses and damages
(including, but not limited to, any and all reasonable investigative, legal and
other expenses incurred in connection with, and any and all amounts paid in
settlement (in accordance with Section 10(c)) of, any action, suit or proceeding
between any of the indemnified parties and any indemnifying parties or between
any indemnified party and any third party, or otherwise, or any claim asserted),
as and when incurred, to which MLV, or any such person, may become subject under
the Securities Act, the Exchange Act or other federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims,
liabilities, expenses or damages arise out of or are based, directly or
indirectly, on (i) any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement or the Prospectus or any
amendment or supplement to the Registration Statement or the Prospectus or in
any Issuer Free Writing Prospectus or in any application or other document
executed by or on behalf of the Company or based on written information
furnished by or on behalf of the Company filed in any jurisdiction in order to
qualify the Shares under the securities laws thereof or filed with the
Commission, (ii) the omission or alleged omission to state in any such
document a material fact required to be stated in it or necessary to make the
statements in it not misleading or (iii) any breach by any of the
indemnifying parties of any of their respective representations, warranties and
agreements contained in this Agreement; provided, however, that this indemnity
agreement shall not apply to the extent that such loss, claim, liability,
expense or damage arises from the sale of the Placement Shares pursuant to this
Agreement and is caused directly or indirectly by an untrue statement or
omission made in reliance on and in conformity with information relating to
MLV.  This indemnity agreement will be in addition to any liability
that the Company might otherwise have.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    (b)           MLV
Indemnification.  MLV agrees to indemnify and hold harmless the
Company and its directors and each officer of the Company who signed the
Registration Statement, and each person, if any, who (i) controls the
Company within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act or (ii) is controlled by or is under common control with
the Company (a “Company Affiliate”) against any and all loss, liability, claim,
damage and expense described in the indemnity contained in Section 10(c), as
incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Registration Statement (or any
amendments thereto) or the Prospectus (or any amendment or supplement thereto)
in reliance upon and in conformity with information relating to MLV and
furnished to the Company by MLV.

     

    (c)           Procedure.  Any
party that proposes to assert the right to be indemnified under this Section 10
will, promptly after receipt of notice of commencement of any action against
such party in respect of which a claim is to be made against an indemnifying
party or parties under this Section 10, notify each such indemnifying party of
the commencement of such action, enclosing a copy of all papers served, but the
omission so to notify such indemnifying party will not relieve the indemnifying
party from (i) any liability that it might have to any indemnified party
otherwise than under this Section 10 and (ii) any liability that it may
have to any indemnified party under the foregoing provision of this Section 10
unless, and only to the extent that, such omission results in the forfeiture of
substantive rights or defenses by the indemnifying party.  If any such
action is brought against any indemnified party and it notifies the indemnifying
party of its commencement, the indemnifying party will be entitled to
participate in and, to the extent that it elects by delivering written notice to
the indemnified party promptly after receiving notice of the commencement of the
action from the indemnified party, jointly with any other indemnifying party
similarly notified, to assume the defense of the action, with counsel reasonably
satisfactory to the indemnified party, and after notice from the indemnifying
party to the indemnified party of its election to assume the defense, the
indemnifying party will not be liable to the indemnified party for any legal or
other expenses except as provided below and except for the reasonable costs of
investigation subsequently incurred by the indemnified party in connection with
the defense.  The indemnified party will have the right to employ its
own counsel in any such action, but the fees, expenses and other charges of such
counsel will be at the expense of such indemnified party unless (1) the
employment of counsel by the indemnified party has been authorized in writing by
the indemnifying party, (2) the indemnified party has reasonably concluded
(based on advice of counsel) that there may be legal defenses available to it or
other indemnified parties that are different from or in addition to those
available to the indemnifying party, (3) a conflict or potential conflict
exists (based on advice of counsel to the indemnified party) between the
indemnified party and the indemnifying party (in which case the indemnifying
party will not have the right to direct the defense of such action on behalf of
the indemnified party) or (4) the indemnifying party has not in fact
employed counsel to assume the defense of such action within a reasonable time
after receiving notice of the commencement of the action, in each of which cases
the reasonable fees, disbursements and other charges of counsel will be at the
expense of the indemnifying party or parties.  It is understood that
the indemnifying party or parties shall not, in connection with any proceeding
or related proceedings in the same jurisdiction, be liable for the reasonable
fees, disbursements and other charges of more than one separate firm admitted to
practice in such jurisdiction at any one time for all such indemnified party or
parties.  All such fees, disbursements and other charges will be
reimbursed by the indemnifying party promptly as they are
incurred.  An indemnifying party will not, in any event, be liable for
any settlement of any action or claim effected without its written
consent.  No indemnifying party shall, without the prior written
consent of each indemnified party, settle or compromise or consent to the entry
of any judgment in any pending or threatened claim, action or proceeding
relating to the matters contemplated by this Section 10 (whether or not any
indemnified party is a party thereto), unless such settlement, compromise or
consent includes an unconditional release of each indemnified party from all
liability arising or that may arise out of such claim, action or
proceeding.

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    (d)           Contribution.  In
order to provide for just and equitable contribution in circumstances in which
the indemnification provided for in the foregoing paragraphs of this Section 10
is applicable in accordance with its terms but for any reason is held to be
unavailable from the Company or MLV, the Company and MLV will contribute to the
total losses, claims, liabilities, expenses and damages (including any
investigative, legal and other expenses reasonably incurred in connection with,
and any amount paid in settlement of, any action, suit or proceeding or any
claim asserted, but after deducting any contribution received by the Company
from persons other than MLV, such as persons who control the Company within the
meaning of the Securities Act, officers of the Company who signed the
Registration Statement and directors of the Company, who also may be liable for
contribution) to which the Company and MLV may be subject in such proportion as
shall be appropriate to reflect the relative benefits received by the Company on
the one hand and MLV on the other.  The relative benefits received by
the Company on the one hand and MLV on the other hand shall be deemed to be in
the same proportion as the total net proceeds from the sale of the Placement
Shares (before deducting expenses) received by the Company bear to the total
compensation received by MLV (before deducting expenses) from the sale of
Placement Shares on behalf of the Company.  If, but only if, the
allocation provided by the foregoing sentence is not permitted by applicable
law, the allocation of contribution shall be made in such proportion as is
appropriate to reflect not only the relative benefits referred to in the
foregoing sentence but also the relative fault of the Company, on the one hand,
and MLV, on the other, with respect to the statements or omission that resulted
in such loss, claim, liability, expense or damage, or action in respect thereof,
as well as any other relevant equitable considerations with respect to such
offering.  Such relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to
information supplied by the Company or MLV, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The Company and MLV agree that it would
not be just and equitable if contributions pursuant to this Section 10(d) were
to be determined by pro rata allocation or by any other method of allocation
that does not take into account the equitable considerations referred to
herein.  The amount paid or payable by an indemnified party as a
result of the loss, claim, liability, expense, or damage, or action in respect
thereof, referred to above in this Section 10(d) shall be deemed to include, for
the purpose of this Section 10(d), any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any such action or claim to the extent consistent with Section 10(c)
hereof.  Notwithstanding the foregoing provisions of this Section
10(d), MLV shall not be required to contribute any amount in excess of the
commissions received by it under this Agreement and no person found guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.  For purposes of this
Section 10(d), any person who controls a party to this Agreement within the
meaning of the Securities Act, and any officers, directors, partners, employees
or agents of MLV, will have the same rights to contribution as that party, and
each officer of the Company who signed the Registration Statement will have the
same rights to contribution as the Company, subject in each case to the
provisions hereof.  Any party entitled to contribution, promptly after
receipt of notice of commencement of any action against such party in respect of
which a claim for contribution may be made under this Section 10(d), will notify
any such party or parties from whom contribution may be sought, but the omission
to so notify will not relieve that party or parties from whom contribution may
be sought from any other obligation it or they may have under this Section 10(d)
except to the extent that the failure to so notify such other party materially
prejudiced the substantive rights or defenses of the party from whom
contribution is sought.  Except for a settlement entered into pursuant
to the last sentence of Section 10(c) hereof, no party will be liable for
contribution with respect to any action or claim settled without its written
consent if such consent is required pursuant to Section 10(c)
hereof.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    11.         Representations and
Agreements to Survive Delivery.  The indemnity and contribution
agreements contained in Section 10 of this Agreement and all representations and
warranties of the Company herein or in certificates delivered pursuant hereto
shall survive, as of their respective dates, regardless of (i) any
investigation made by or on behalf of MLV, any controlling persons, or the
Company (or any of their respective officers, directors or controlling persons),
(ii) delivery and acceptance of the Placement Shares and payment therefor
or (iii) any termination of this Agreement.

     

    12.         Termination.

     

    (a)           MLV
shall have the right by giving notice as hereinafter specified at any time to
terminate this Agreement if (i) any Material Adverse Effect, or any
development that has actually occurred and that is reasonably expected to cause
a Material Adverse Effect has occurred that, in the reasonable judgment of MLV,
may materially impair the ability of MLV to sell the Placement Shares hereunder,
(ii) the Company shall have failed, refused or been unable to perform any
agreement on its part to be performed hereunder; provided, however, in the case
of any failure of the Company to deliver (or cause another person to deliver)
any certification, opinion, or letter required under Sections 7(m), 7(n), or
7(o), MLV’s right to terminate shall not arise unless such failure to deliver
(or cause to be delivered) continues for more than thirty days from the date
such delivery was required; or (iii) any other condition of MLV’s
obligations hereunder is not fulfilled, or (iv), any suspension or limitation of
trading in the Placement Shares or in securities generally on the Exchange shall
have occurred.  Any such termination shall be without liability of any
party to any other party except that the provisions of Section 7(g) (Expenses),
Section 9 (Indemnification), Section 11 (Survival of Representations), Section
17 (Applicable Law; Consent to Jurisdiction) and Section 18 (Waiver of Jury
Trial) hereof shall remain in full force and effect notwithstanding such
termination.  If MLV elects to terminate this Agreement as provided in
this Section 12(a), MLV shall provide the required notice as specified in
Section 13 (Notices).

     

    (b)           The
Company shall have the right, by giving 30 days notice as hereinafter specified
to terminate this Agreement in its sole discretion at any time after the date of
this Agreement.  Any such termination shall be without liability of
any party to any other party except that the provisions of Section 7(g), Section
10, Section 11, Section 17 and Section 18 hereof shall remain in full force and
effect notwithstanding such termination.

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    (c)           MLV
shall have the right, by giving 60 days notice as hereinafter specified to
terminate this Agreement in its sole discretion at any time after the date of
this Agreement.  Any such termination shall be without liability of
any party to any other party except that the provisions of Section 7(g), Section
10, Section 11, Section 17 and Section 18 hereof shall remain in full force and
effect notwithstanding such termination.

     

    (d)           Unless
earlier terminated pursuant to this Section 12, this Agreement shall
automatically terminate upon the issuance and sale of all of the Placement
Shares through MLV on the terms and subject to the conditions set forth herein;
provided that the provisions of Section 7(g), Section 10, Section 11, Section 17
and Section 18 hereof shall remain in full force and effect notwithstanding such
termination.

     

    (e)           This
Agreement shall remain in full force and effect unless terminated pursuant to
Sections 12(a), (b), (c), or (d) above or otherwise by mutual agreement of the
parties; provided, however, that any such termination by mutual agreement shall
in all cases be deemed to provide that Section 7(g), Section 10, Section 11,
Section 17 and Section 18 shall remain in full force and effect.

     

    (f)           Any
termination of this Agreement shall be effective on the date specified in such
notice of termination; provided, however, that such termination shall not be
effective until the close of business on the date of receipt of such notice by
MLV or the Company, as the case may be.  If such termination shall
occur prior to the Settlement Date for any sale of Placement Shares, such
Placement Shares shall settle in accordance with the provisions of this
Agreement.

     

    13.         Notices.  All
notices or other communications required or permitted to be given by any party
to any other party pursuant to the terms of this Agreement shall be in writing,
unless otherwise specified, and if sent to MLV, shall be delivered
to:

     

    McNicoll, Lewis & Vlak
LLC

    420 Lexington Ave., Suite
628

    New York, NY 10170

    
      	
            	
              Attention: 

            	
              Patrice
      McNicoll

            

    

    
      	
            	
              Facsimile: 

            	
              (646)
      417-7205

            

    

     

    with a copy to:

     

    Holme Roberts & Owen
LLP

    1700 Lincoln Street, Suite
4100

    Denver,
CO  80203

    
      	
            	
              Attention: 

            	
              Garth
      B. Jensen

            

    

    
      	
            	
              Facsimile: 

            	
              303-866-0200

            

    

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    and if to the Company, shall be
delivered to:

     

    Novavax,
Inc.

    9920 Belward Campus Drive

    Rockville, MD 20850

    
      	
            	
              Attention: 

            	
              Frederick
      Driscoll

            

    

    
      	
            	
              Facsimile: 

            	
              240-268-2115

            

    

     

    with a copy to:

     

    Ballard
Spahr LLP

    1735
Market Street, 51st Floor

    Philadelphia,
PA  19103

    
      	
            	
              Attention: 

            	
              Jennifer
      Miller

            

    

    
      	
            	
              Facsimile: 

            	
              215-864-9073

            

    

     

    Each
party to this Agreement may change such address for notices by sending to the
parties to this Agreement written notice of a new address for such
purpose.  Each such notice or other communication shall be deemed
given (i) when delivered personally or by verifiable facsimile transmission
(with an original to follow) on or before 4:30 p.m., New York City time, on
a Business Day or, if such day is not a Business Day, on the next succeeding
Business Day, (ii) on the next Business Day after timely delivery to a
nationally-recognized overnight courier and (iii) on the Business Day
actually received if deposited in the U.S. mail (certified or registered mail,
return receipt requested, postage prepaid).  For purposes of this
Agreement, “Business
Day” shall mean any day on which the Exchange and commercial banks in the
City of New York are open for business.

     

    An
electronic communication (“Electronic Notice”)
shall be deemed written notice for purposes of this Section 13 if sent to the
electronic mail address specified by the receiving party under separate
cover.  Electronic Notice shall be deemed received at the time the
party sending Electronic Notice receives verification of receipt by the
receiving party.  Any party receiving Electronic Notice may request
and shall be entitled to receive the notice on paper, in a nonelectronic form
(“Nonelectronic
Notice”) which shall be sent to the requesting party within ten (10) days
of receipt of the written request for Nonelectronic Notice.

     

    14.         Successors and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the Company and MLV and their respective successors and the
affiliates, controlling persons, officers and directors referred to in Section
10 hereof.  References to any of the parties contained in this
Agreement shall be deemed to include the successors and permitted assigns of
such party.  Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their
respective successors and permitted assigns any rights, remedies, obligations or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.  Neither party may assign its rights or obligations
under this Agreement without the prior written consent of the other party;
provided, however, that MLV may assign its rights and obligations hereunder to
an affiliate of MLV without obtaining the Company’s consent.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    15.         Adjustments for Stock
Splits.  The parties acknowledge and agree that all
share-related numbers contained in this Agreement shall be adjusted to take into
account any stock split, stock dividend or similar event effected with respect
to the Shares.

     

    16.         Entire Agreement; Amendment;
Severability.  This Agreement (including all schedules and
exhibits attached hereto and Placement Notices issued pursuant hereto)
constitutes the entire agreement and supersedes all other prior and
contemporaneous agreements and undertakings, both written and oral, among the
parties hereto with regard to the subject matter hereof.  Neither this
Agreement nor any term hereof may be amended except pursuant to a written
instrument executed by the Company and MLV.  In the event that any one
or more of the provisions contained herein, or the application thereof in any
circumstance, is held invalid, illegal or unenforceable as written by a court of
competent jurisdiction, then such provision shall be given full force and effect
to the fullest possible extent that it is valid, legal and enforceable, and the
remainder of the terms and provisions herein shall be construed as if such
invalid, illegal or unenforceable term or provision was not contained herein,
but only to the extent that giving effect to such provision and the remainder of
the terms and provisions hereof shall be in accordance with the intent of the
parties as reflected in this Agreement.

     

    17.         Applicable Law; Consent to
Jurisdiction.  This Agreement shall be governed by, and
construed in accordance with, the internal laws of the State of Colorado without
regard to the principles of conflicts of laws.  Each party hereby
irrevocably submits to the non-exclusive jurisdiction of the state and federal
courts sitting in the City of Denver, for the adjudication of any dispute
hereunder or in connection with any transaction contemplated hereby, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is brought in an inconvenient forum
or that the venue of such suit, action or proceeding is
improper.  Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof (certified or registered mail, return
receipt requested) to such party at the address in effect for notices to it
under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof.  Nothing contained
herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law.

     

    18.         Waiver of Jury
Trial.  The Company and MLV each hereby irrevocably waives any
right it may have to a trial by jury in respect of any claim based upon or
arising out of this agreement or any transaction contemplated
hereby.

     

    19.         Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.  Delivery of an executed Agreement by one party to the
other may be made by facsimile transmission.

     

    [Remainder
of Page Intentionally Blank]

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    If the
foregoing correctly sets forth the understanding between the Company and MLV,
please so indicate in the space provided below for that purpose, whereupon this
letter shall constitute a binding agreement between the Company and
MLV.

     

    
      
        
          
            
              	
                      Very
      truly yours,

                    
	 
      
	
                      NOVAVAX,
      INC.

                       

                    
	
                      By:

                    	
                      /s/
      Frederick W. Driscoll

                    
	 
      	
                      Name:
      Frederick W. Driscoll

                    
	 
      	
                      Title:   Vice
      President, Chief Financial

                                  Officer
      and
Treasurer

                    

            

          

        

      

    

     

    
      
        
          
            
              	
                      ACCEPTED
      as of the date

                      first-above
      written:

                    
	 
	
                      McNICOLL,
      LEWIS & VLAK LLC

                    
	 
      
	
                      By:

                    	
                      /s/
      Patrice McNicoll

                    
	 
      	
                      Name:
      Patrice McNicoll

                    
	 
      	
                      Title:  President

                    

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1

     

    
      
        

      

    

     

    FORM
OF PLACEMENT NOTICE

     

    
      
        

      

    

     

    
      	
              From: 

            	
              [                                ]

            

    

     

    
      	
              To: 

            	
              McNicoll,
      Lewis & Vlak LLC

            

    

    Attention:  Patrice
McNicoll

     

    
      	
              Subject: 

            	
              At
      Market Issuance—Placement Notice

            

    

     

    Gentlemen:

     

    Pursuant
to the terms and subject to the conditions contained in the At Market Issuance
Sales Agreement between Novavax, Inc. (the “Company”), and
McNicoll, Lewis & Vlak LLC (“MLV”) dated March 15,
2010, the Company hereby requests that MLV sell up to ____________ shares of the
Company’s common stock, par value $.01 per share, at a minimum market price of
$_______ per share, during the time period beginning [month, day, time] and
ending [month, day,
time].

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
2

     

    
      
 

    Compensation

     

    
      

    

     

    The
Company shall pay to MLV in cash, upon each sale of Shares pursuant to this
Agreement, an amount equal to 2.0% of the gross proceeds from each sale of
Shares pursuant to this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
7(m)

     

    Form
of Representation Date Certificate

     

    This
Officers Certificate (this “Certificate”) is
executed and delivered in connection with Section 7(m) of the At Market Issuance
Sales Agreement (the “Agreement”), dated
March 15, 2010, and entered into between Novavax, Inc. (the “Company”) and
McNicoll, Lewis & Vlak LLC (“MLV”).  All
capitalized terms used but not defined herein shall have the meanings given to
such terms in the Agreement

     

    The
undersigned, a duly appointed and authorized officer of the Company, having made
all necessary inquiries to establish the accuracy of the statements below and
having been authorized by the Company to execute this certificate, hereby
certifies as follows:

     

    1.           As
of the date of this Certificate, (i) the Registration Statement does 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 and (ii) neither the Prospectus nor the Pricing
Disclosure Materials contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were
made, not misleading and (iii) no event has occurred as a result of which it is
necessary to amend or supplement the Prospectus in order to make the statements
therein not untrue or misleading.

     

    2.           Each
of the representations and warranties of the Company contained in the Agreement
were, when originally made, and are, as of the date of this Certificate, true
and correct in all material respects.

     

    3.           Each
of the covenants required to be performed by the Company in the Agreement on or
prior to the date of the Agreement, this Representation Date, and each such
other date as set forth in the Agreement, has been duly, timely and fully
performed in all material respects and each condition required to be complied
with by the Company on or prior to the date of the Agreement, this
Representation Date, and each such other date as set forth in the Agreement or
in the Waivers has been duly, timely and fully complied with in all material
respects.

     

    4.           Subsequent
to the date of the most recent financial statements in the Prospectus, there has
been no material adverse change.

     

    5.           No
stop order suspending the effectiveness of the Registration Statement or of any
part thereof has been issued, and no proceedings for that purpose have been
instituted or are pending or threatened by any securities or other governmental
authority (including, without limitation, the Commission).

     

    6.           No
order suspending the effectiveness of the Registration Statement or the
qualification or registration of the Shares under the securities or Blue Sky
laws of any jurisdiction are in effect and no proceeding for such purpose is
pending before, or threatened, to the Company's knowledge or in writing by, any
securities or other governmental authority (including, without limitation, the
Commission).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The undersigned has executed this
Officer's Certificate as of the date first written above.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      
	 	 
	
                                    Name:

                                  	 
	 	 
	
                                    Title:

                                  	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
7(n)

     

    Form
Of Legal Opinion

     

    Capitalized terms used and not defined
herein shall have the meanings ascribed to them in the At Market Issuance Sales
Agreement

     

    (i) The
authorized capital stock of the Company conforms in all material respects as to
legal matters to the descriptions thereof set forth in the Registration
Statement, Prospectus and the Prospectus Supplement. The Shares have been duly
authorized and, when issued and delivered pursuant to the terms of the
Agreement, will be validly issued, fully paid and non-assessable; and will not
have been issued in violation of any preemptive rights granted under the
Company’s Certificate of Incorporation or under the corporate laws of the State
of Delaware.

     

    (ii) The
Company is a validly existing corporation in good standing under the laws of the
State of Delaware, the jurisdiction of its organization.  The Company
has the corporate power to execute and deliver the Agreement and to issue, sell
and deliver the Shares.

     

    (iii) The
execution and delivery of the Agreement by the Company and the performance by
the Company of its obligations under the Agreement have been duly authorized by
all requisite corporate action on behalf of the Company.  The
Agreement has been duly executed and delivered by the Company and constitutes
the legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms.

     

    (iv) The
sale and issuance by the Company of the Shares has been duly authorized by all
requisite corporate action on behalf of the Company.

     

    (v) The
Registration Statement, Prospectus and the Prospectus Supplement (other than the
financial statements and schedules and other financial data included or
incorporated by reference therein, as to which we express no opinion), as of
their respective effective and issue dates, complied as to form in all material
respects with the requirements of the Securities Act and the rules and
regulations thereunder.

     

    The opinion of counsel will be
accompanied by a standard Rule 10b-5 negative assurance letter.

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