Document:

Exhibit 10.1

 

PURCHASE AGREEMENT

 

 

THIS PURCHASE AGREEMENT (“Agreement”)
is made as of the 20th day of December, 2018 by and among PLx Pharma Inc., a Delaware corporation (the “Company”),
and the Investors set forth on the signature pages affixed hereto (each an “Investor” and collectively the “Investors”).

 

Recitals

 

A.The Company and
the Investors are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the provisions of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange Commission (the
 “SEC”) under the Act (as defined below); and

 

B.The Company proposes
to sell and issue to one or more investors, upon the terms and conditions stated in this Agreement, up to an aggregate of 15,000
shares (the “Shares”) of the Company’s Series A Convertible Preferred Stock, par value $0.001 per share (the
 “Preferred Stock”), such shares of Preferred Stock to have the relative rights, preferences and designations set forth
in the Certificate of Designations, Preferences and Rights set forth in Exhibit A attached hereto (the “Certificate
of Designation”) at a purchase price of $1,000 per Share; and

 

C.Contemporaneous
with the sale of the Shares, the parties hereto will execute and deliver a Registration Rights Agreement, in the form attached
hereto as Exhibit C (the “Registration Rights Agreement”), pursuant to which the Company will agree to provide
certain registration rights under the Act, and the rules and regulations promulgated thereunder, and applicable state securities
laws; and

 

D.Contemporaneous
with the execution of this Agreement, the Company is issuing and delivering the Commitment Warrants (as defined below) to Park
West (as defined below), in the denominations and registered in such names as Park West or its designees have requested prior to
the date hereof.

 

In consideration of the mutual
promises made herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.       Definitions.
In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms
shall have the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls, is
controlled by, or is under common control with, such Person.

 

    	 

     

    

“Business Day”
means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business.

 

“Commitment Warrants”
means warrants to purchase an aggregate of 500,000 shares of Common Stock at an exercise price of $3.50 per share (subject to adjustment),
in the form attached hereto as Exhibit B.

 

“Common Stock”
means the Company’s common stock, par value $0.001 per share, together with any securities into which such shares may be
reclassified, whether by merger, charter amendment or otherwise.

 

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

 

“Company’s
Knowledge” means the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company,
except for the Company’s Chief Medical Officer, after due inquiry.

 

“Confidential Information”
means trade secrets, confidential information and know-how (including but not limited to ideas, formulae, compositions, processes,
procedures and techniques, research and development information, computer program code, performance specifications, support documentation,
drawings, specifications, designs, business and marketing plans, and customer and supplier lists and related information).

 

“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract or otherwise.

 

“Conversion Shares”
means the shares of Common Stock issuable upon the conversion of the Shares.

 

“Effective Date”
means the date on which the initial Registration Statement is declared effective by the SEC.

 

“Effectiveness Deadline”
means the date on which the initial Registration Statement is required to be declared effective by the SEC under the terms of the
Registration Rights Agreement.

 

“Insider”
means each director or executive officer of the Company, any other officer of the Company participating in the offering, any beneficial
owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, and
any promoter connected with the Company in any capacity on the date hereof.

 

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“Intellectual Property”
means all of the following: (i) patents, patent applications, patent disclosures and inventions (whether or not patentable and
whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names, corporate names, logos, slogans
and Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights and copyrightable
works; (iv) registrations, applications for registration and renewals of registration for any of the foregoing; and (v) proprietary
computer software (including but not limited to data, databases and documentation).

 

“Material Adverse
Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial or
otherwise), business or prospects of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company to perform
its obligations under the Transaction Documents.

 

“Material Contract”
means any contract, instrument or other agreement to which the Company or any Subsidiary is a party or by which it is bound which
has been filed as an exhibit to the SEC Filings pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

 

“Nasdaq”
means The Nasdaq Capital Market.

 

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

 

“Park West”
means Park West Asset Management LLC and its Affiliates.

 

“Proposals”
has the meaning set forth in Section 7.9.

 

“Purchase Price”
means one thousand Dollars ($1,000) per Share.

 

“Registration Statement”
has the meaning set forth in the Registration Rights Agreement.

 

“Required Investors”
has the meaning set forth in the Registration Rights Agreement.

 

“SEC Filings”
has the meaning set forth in Section 4.6.

 

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

 

“Shares”
means the shares of Preferred Stock to be purchased by the Investors hereunder.

 

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“Stockholder Approval”
means the approval of the Proposals by the stockholders of the Company in accordance with applicable law, the Company’s Certificate
of Incorporation and Bylaws and the applicable requirements of Nasdaq.

 

“Subsidiary”
of any Person means another Person, an amount of the voting securities, other voting ownership or voting partnership interests
of which is sufficient to elect at least a majority of its Board of Directors or other governing body (or, if there are no such
voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by such first Person.

 

“Transaction Documents”
means this Agreement, the Certificate of Designation, the Warrants and the Registration Rights Agreement.

 

“Warrants”
means the Commitment Warrants.

 

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

 

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

 

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

 

2.       Purchase
and Sale of the Shares: Issuance of Commitment Warrants.

 

(a)       Subject
to the terms and conditions of this Agreement, on the Closing Date (as defined below), each of the Investors shall severally, and
not jointly, purchase, and the Company shall sell and issue to the Investors, the Shares in the respective amounts set forth opposite
the Investors’ names on the signature pages attached hereto in exchange for such Investor’s pro rata portion of the
Purchase Price as specified in Section 3 below.

 

(b)       On
the date hereof, and contemporaneous with the execution of this Agreement, the Company shall issue and deliver the Commitment Warrants
to Park West, in the denominations and registered in such names as Park West or its designees have requested on or prior to the
date hereof.

 

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3.       Closing.
Upon confirmation that the other conditions to closing specified herein have been satisfied or duly waived by the Investors, the
Company shall file the Certificate of Designation with the Secretary of State of Delaware. Unless other arrangements have been
made with a particular Investor, upon confirmation that the Certificate of Designation has been filed and has become effective,
the Company shall deliver to Lowenstein Sandler LLP, in trust, a certificate or certificates, registered in such name or names
as the Investors may designate, representing the Shares, with instructions that such certificates are to be held for release to
the Investors only upon payment in full of the Purchase Price to the Company by all the Investors. Unless other arrangements have
been made with a particular Investor, upon such receipt by Lowenstein Sandler LLC of the certificates, each Investor shall promptly,
but no more than one Business Day thereafter, cause a wire transfer in same day funds to be sent to the account of the Company
as instructed in writing by the Company, in an amount representing such Investor’s pro rata portion of the Purchase Price
as set forth on the signature pages to this Agreement. On the date (the “Closing Date”) the Company receives the Purchase
Price, the certificates evidencing the Shares shall be released to the Investors (the “Closing”). The Closing of the
purchase and sale of the Shares shall take place at the offices of Lowenstein Sandler LLP, 1251 Avenue of the Americas, 18th Floor,
New York, New York 10020, or at such other location and on such other date as the Company and the Investors shall mutually agree.

 

4.       Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investors, except as set forth on the Disclosure
Schedule attached as Exhibit D to this Agreement, which exceptions shall be deemed to be part of the representations and
warranties made hereunder, that:

 

4. 1       Organization,
Good Standing and Qualification. Each of the Company and its Subsidiaries is a corporation duly organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority
to carry on its business as now conducted and to own or lease its properties, in each case as described in the SEC Filings. Each
of the Company and its Subsidiaries is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction
in which the conduct of its business or its ownership or leasing of property makes such qualification or leasing necessary unless
the failure to so qualify or to be in good standing has not had and could not reasonably be expected to have a Material Adverse
Effect.

 

4.2       Authorization.
The Company has the corporate power and authority to enter into this Agreement and, except for approval of the Proposals by its
stockholders as contemplated in Section 7.9, has taken all requisite action on its part, its officers, directors and stockholders
necessary for (i) the authorization, execution and delivery of the Transaction Documents, (ii) the authorization of the performance
of all obligations of the Company hereunder or thereunder, and (iii) the authorization, issuance (or reservation for issuance)
and delivery of the Securities The Transaction Documents constitute the legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability, relating to or affecting creditors’ rights generally and to general equitable
principles.

 

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4.3       Capitalization.
Except as set forth on Schedule 4.3, the Company has duly and validly authorized capital stock as set forth in the SEC Filings
and in the Amended and Restated Certificate of Incorporation of the Company, as amended and as in effect as of the Closing Date
(the “Certificate of Incorporation”). All of the issued and outstanding shares of the Company’s capital stock
have been duly authorized and validly issued and are fully paid, nonassessable and free of pre-emptive rights and were issued in
full compliance with applicable state and federal securities law and any rights of third parties. Except as described in the SEC
Filings, all of the issued and outstanding shares of capital stock of each Subsidiary have been duly authorized and validly issued
and are fully paid, nonassessable and free of pre-emptive rights, were issued in full compliance with applicable state and federal
securities law and any rights of third parties and are owned by the Company, beneficially and of record, subject to no lien, encumbrance
or other adverse claim. Except as described in the SEC Filings, no Person is entitled to pre-emptive or similar statutory or contractual
rights with respect to any securities of the Company. Except as described in the SEC Filings, there are no outstanding warrants,
options, convertible securities or other rights, agreements or arrangements of any character under which the Company or any of
its Subsidiaries is or may be obligated to issue any equity securities of any kind and except as contemplated by this Agreement,
neither the Company nor any of its Subsidiaries is currently in negotiations for the issuance of any equity securities of any kind.
Except as described in the SEC Filings and except for the Registration Rights Agreement, there are no voting agreements, buy-sell
agreements, option or right of first purchase agreements or other agreements of any kind among the Company and any of the securityholders
of the Company relating to the securities of the Company held by them. Except as described in the SEC Filings and except as provided
in the Registration Rights Agreement, no Person has the right to require the Company to register any securities of the Company
under the 1933 Act, whether on a demand basis or in connection with the registration of securities of the Company for its own account
or for the account of any other Person.

 

Except as described in the
SEC Filings, the issuance and sale of the Securities hereunder will not obligate the Company to issue shares of Common Stock or
other securities to any other Person (other than the Investors) and will not result in the adjustment of the exercise, conversion,
exchange or reset price of any outstanding security.

 

Except as described in the
SEC Filings, the Company does not have outstanding stockholder purchase rights or “poison pill” or any similar arrangement
in effect giving any Person the right to purchase any equity interest in the Company upon the occurrence of certain events.

 

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4.4       Valid
Issuance. Subject to approval of the Proposals by the Company’s stockholders as contemplated in Section 7.9, the Shares
will be duly and validly authorized and, when issued and paid for pursuant to this Agreement, will be validly issued, fully paid
and nonassessable, and shall be free and clear of all encumbrances and restrictions, except for restrictions on transfer set forth
in the Transaction Documents or imposed by applicable securities laws and will have the relative rights, powers and preferences
set forth in the Certificate of Designation. Upon the due conversion of the Shares in accordance with the Certificate of Designation,
the Conversion Shares will be validly issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and
restrictions, except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities laws.
The Warrants have been duly and validly authorized. Upon the due exercise of the Warrants and full payment for the exercise price
thereof, the Warrant Shares will be validly issued, fully paid and non-assessable, and shall be free and clear of all encumbrances
and restrictions, except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities
laws. The Company has reserved a sufficient number of shares of Common Stock for issuance upon the conversion of the Shares and
the exercise of the Warrants, free and clear of all encumbrances and restrictions, except for restrictions on transfer set forth
in the Transaction Documents or imposed by applicable securities laws.

 

4.5       Consents.
Except for approval of the Proposals by its stockholders as contemplated in Section 7.9, the execution, delivery and performance
by the Company of the Transaction Documents and the offer, issuance and sale of the Securities require no consent of, action by
or in respect of, or filing with, any Person, governmental body, agency, or official other than filings that have been made pursuant
to applicable state securities laws and post-sale filings pursuant to applicable state and federal securities laws which the Company
undertakes to file within the applicable time periods. Subject to the accuracy of the representations and warranties of each Investor
set forth in Section 5 hereof, the Company has taken all action necessary to exempt (i) the issuance and sale of the Securities,
(ii) the issuance of the Conversion Shares upon the due conversion of the Shares, (iii) the issuance of the Warrant Shares upon
due exercise of the Warrants, and (iv) the other transactions contemplated by the Transaction Documents from the provisions of
any stockholder rights plan or other “poison pill” arrangement, any anti-takeover, business combination or control
share law or statute binding on the Company or to which the Company or any of its assets and properties may be subject and any
provision of the Certificate of Incorporation or the Company’s Amended and Restated Bylaws, as amended and as in effect as
of the closing date (the “Bylaws”), that is or could reasonably be expected to become applicable to the Investors as
a result of the transactions contemplated hereby, including, without limitation, the issuance of the Securities and the ownership,
disposition or voting of the Securities by the Investors or the exercise of any right granted to the Investors pursuant to this
Agreement or the other Transaction Documents.

 

4.6       Delivery
of SEC Filings; Business. The Company has made available to the Investors through the EDGAR system, true and complete copies
of the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (as amended prior to
the date hereof, the “10-K”), and all other reports filed by the Company pursuant to Sections 13(a), 13(e), 14 and
15(d) of the 1934 Act since the filing of the 10-K and during the twelve (12) months preceding the date hereof (collectively, the
 “SEC Filings”). The SEC Filings are the only filings required of the Company pursuant to the 1934 Act for such period.
The Company and its Subsidiaries are engaged in all material respects only in the business described in the SEC Filings and the
SEC Filings contain a complete and accurate description in all material respects of the business of the Company and its Subsidiaries,
taken as a whole. Since the filing of each of the SEC Filings, no event has occurred that would require an amendment or supplement
to any such SEC Filing and as to which such an amendment or supplement has not been filed prior to the date hereof.

 

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4.7       Use
of Proceeds. The net proceeds of the sale of the Shares hereunder shall be used by the Company for working capital and general
corporate purposes.

 

4.8       No
Material Adverse Change. Since December 31, 2017, except as described in the SEC Filings, there has not been:

 

(i)       any
change in the consolidated assets, liabilities, financial condition or operating results of the Company from that reflected in
the financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018,
except for changes in the ordinary course of business which have not had and could not reasonably be expected to have a Material
Adverse Effect, individually or in the aggregate;

 

(ii)       any
declaration or payment of any dividend, or any authorization or payment of any distribution, on any of the capital stock of the
Company, or any redemption or repurchase of any securities of the Company;

 

(iii)       any
material damage, destruction or loss, whether or not covered by insurance to any assets or properties of the Company or its Subsidiaries;

 

(iv)       any
waiver, not in the ordinary course of business, by the Company or any Subsidiary of a material right or of a material debt owed
to it;

 

(v)       any
satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company or a Subsidiary, except
in the ordinary course of business and which is not material to the assets, properties, financial condition, operating results
or business of the Company and its Subsidiaries taken as a whole (as such business is presently conducted and as it is proposed
to be conducted);

 

(vi)       any
change or amendment to the Certificate of Incorporation (other than in connection with the transactions contemplated hereby) or
Bylaws, or material change to any material contract or arrangement by which the Company or any Subsidiary is bound or to which
any of their respective assets or properties is subject;

 

(vii)       any
material labor difficulties or labor union organizing activities with respect to employees of the Company or any Subsidiary;

 

(viii)       any
material transaction entered into by the Company or a Subsidiary other than in the ordinary course of business;

 

(ix)       the
loss of the services of any key employee, or material change in the composition or duties of the senior management of the Company
or any Subsidiary;

 

(x)       the
loss or, to the Company’s Knowledge, threatened loss of any customer which has had or could reasonably be expected to have
a Material Adverse Effect; or

 

(xi)       any
other event or condition of any character that has had or could reasonably be expected to have a Material Adverse Effect.

 

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4.9       SEC
Filings; S-3 Eligibility.

 

(a)       At
the time of filing thereof, the SEC Filings complied as to form in all material respects with the requirements of the 1934 Act
and did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

 

(b)       Each
registration statement and any amendment thereto filed by the Company since January 1, 2016 pursuant to the 1933 Act and the rules
and regulations thereunder, as of the date such statement or amendment became effective, complied as to form in all material respects
with the 1933 Act and did not contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary in order to make the statements made therein not misleading; and each prospectus filed pursuant to
Rule 424(b) under the 1933 Act, as of its issue date and as of the closing of any sale of securities pursuant thereto did not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order
to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

 

(c)       The
Company is eligible to use Form S-3 to register the Registrable Securities (as such term is defined in the Registration Rights
Agreement) for sale by the Investors as contemplated by the Registration Rights Agreement.

 

4.10       No
Conflict, Breach, Violation or Default. Subject to the approval of the Proposals by its stockholders as contemplated in Section
7.9, the execution, delivery and performance of the Transaction Documents by the Company and the issuance and sale of the Securities
will not (i) conflict with or result in a breach or violation of (a) any of the terms and provisions of, or constitute a default
under the Certificate of Incorporation or the Bylaws (true and complete copies of which have been made available to the Investors
through the EDGAR system), or (b) any statute, rule, regulation or order of any governmental agency or body or any court, domestic
or foreign, having jurisdiction over the Company, any Subsidiary or any of their respective assets or properties, or (ii) conflict
with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the
creation of any lien, encumbrance or other adverse claim upon any of the properties or assets of the Company or any Subsidiary
or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of, any Material Contract, except in the case of clauses (i)(b) and (ii) above, such as could not reasonably be expected
to have a Material Adverse Effect, individually or in the aggregate.

 

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4.11       Tax
Matters. The Company and each Subsidiary has prepared and filed (or filed applicable extensions therefore) all tax returns
required to have been filed by the Company or such Subsidiary with all appropriate governmental agencies and paid all taxes shown
thereon or otherwise owed by it, other than any such taxes which the Company or any Subsidiary are contesting in good faith and
for which adequate reserves have been provided and reflected in the Company’s financial statements included in the SEC Filings.
The charges, accruals and reserves on the books of the Company in respect of taxes for all fiscal periods are adequate in all material
respects, and there are no material unpaid assessments against the Company or any Subsidiary nor, to the Company’s Knowledge,
any basis for the assessment of any additional taxes, penalties or interest for any fiscal period or audits by any federal, state
or local taxing authority except for any assessment which is not material to the Company and its Subsidiaries, taken as a whole.
All taxes and other assessments and levies that the Company or any Subsidiary is required to withhold or to collect for payment
have been duly withheld and collected and paid to the proper governmental entity or third party when due, other than any such taxes
which the Company or any Subsidiary are contesting in good faith and for which adequate reserves have been provided and reflected
in the Company’s financial statements included in the SEC Filings. There are no tax liens or claims pending or, to the Company’s
Knowledge, threatened in writing against the Company or any Subsidiary or any of their respective assets or property. Except as
described in the SEC Filings, there are no outstanding tax sharing agreements or other such arrangements between the Company and
any Subsidiary or other corporation or entity.

 

4.12       Title
to Properties. Except as disclosed in the SEC Filings, the Company and each Subsidiary has good and marketable title to all
real properties and all other properties and assets (excluding Intellectual Property assets which are the subject of Section 4.15
hereof) owned by it, in each case free from liens, encumbrances and defects that would materially affect the value thereof or materially
interfere with the use made or currently planned to be made thereof by them; and except as disclosed in the SEC Filings, the Company
and each Subsidiary holds any leased real or personal property under valid and enforceable leases with no exceptions that would
materially interfere with the use made thereof by them.

 

4.13       Certificates,
Authorities and Permits. The Company and each Subsidiary possess adequate certificates, authorities or permits issued by appropriate
governmental agencies or bodies necessary to conduct the business now operated by it, except to the extent failure to possess such
certificates, authorities or permits could not reasonably be expected to have a Material Adverse Effect, individually or in the
aggregate, and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification
of any such certificate, authority or permit that, if determined adversely to the Company or such Subsidiary, could reasonably
be expected to have a Material Adverse Effect, individually or in the aggregate.

 

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4.14       Labor
Matters.

 

(a)       Except
as set forth in the SEC Filings, the Company is not a party to or bound by any collective bargaining agreements or other agreements
with labor organizations. The Company has not violated in any material respect any laws, regulations, orders or contract terms,
affecting the collective bargaining rights of employees, labor organizations or any laws, regulations or orders affecting employment
discrimination, equal opportunity employment, or employees’ health, safety, welfare, wages and hours.

 

(b)       (i)
There are no labor disputes existing, or to the Company’s Knowledge, threatened, involving strikes, slow-downs, work stoppages,
job actions, disputes, lockouts or any other disruptions of or by the Company's employees, (ii) there are no unfair labor practices
or petitions for election pending or, to the Company's Knowledge, threatened before the National Labor Relations Board or any other
federal, state or local labor commission relating to the Company's employees, (iii) no demand for recognition or certification
heretofore made by any labor organization or group of employees is pending with respect to the Company and (iv) to the Company's
Knowledge, the Company enjoys good labor and employee relations with its employees and labor organizations.

 

(c)       The
Company is, and at all times has been, in compliance with all applicable laws respecting employment (including laws relating to
classification of employees and independent contractors) and employment practices, terms and conditions of employment, wages and
hours, and immigration and naturalization, except where the failure to so comply could not reasonably be expected to have a Material
Adverse Effect, individually or in the aggregate. There are no claims pending against the Company before the Equal Employment Opportunity
Commission or any other administrative body or in any court asserting any violation of Title VII of the Civil Rights Act of 1964,
the Age Discrimination Act of 1967, 42 U.S.C. §§ 1981 or 1983 or any other federal, state or local Law, statute or ordinance
barring discrimination in employment.

 

(d)       Except
as disclosed in the SEC Filings and as set forth on Schedule 4.14(d), the Company is not a party to, or bound by, any employment
or other contract or agreement that contains any severance, termination pay or change of control liability or obligation, including,
without limitation, any “excess parachute payment,” as defined in Section 280G(b) of the Internal Revenue Code.

 

(e)       To
the Company’s Knowledge, the Company has no liability for the improper classification by the Company of its employees as
independent contractors or leased employees prior to the Closing.

 

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4.15       Intellectual
Property.

 

(a)       To
the Company’s Knowledge, all Intellectual Property of the Company and its Subsidiaries, which is listed on Schedule 4.15(a),
is currently in compliance in all material respects with all legal requirements (including, for registered Intellectual Property
or pending applications for registration of Intellectual Property, timely filings, proofs and payments of fees) and is valid and
enforceable. No Intellectual Property of the Company or its Subsidiaries which is necessary for the conduct of Company’s
and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted has been
or is now involved in any cancellation, dispute or litigation, and, to the Company’s Knowledge, no such action is threatened.
No patent of the Company or its Subsidiaries has been or is now involved in any interference, reissue, re-examination or opposition
proceeding.

 

(b)       To
the Company’s Knowledge, all of the licenses and sublicenses and consent, royalty or other agreements concerning Intellectual
Property which are necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as
currently conducted or as currently proposed to be conducted to which the Company or any Subsidiary is a party or by which any
of their assets are bound (other than  generally commercially available, non-custom, off-the-shelf software application programs
having a retail acquisition price of less than $10,000 per license) (collectively, “License Agreements”): (i) are valid
and binding obligations of the Company or its Subsidiaries that are parties thereto and, to the Company’s Knowledge, the
other parties thereto; (ii) are enforceable in accordance with their terms, except to the extent that enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement
of creditors’ rights generally; and (iii) except as set forth on Schedule 4.15(b), to the Company’s Knowledge, there
exists no event or condition which will result in a violation or breach of or constitute (with or without due notice or lapse of
time or both) a default by the Company or any of its Subsidiaries under any such License Agreement, except for such violations,
breaches and defaults as have not had and could not reasonably be expected to have a Material Adverse Effect, individually or in
the aggregate.

 

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(c)       To
the Company’s Knowledge, the Company and its Subsidiaries own or have the valid right to use all of the Intellectual Property
that is necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently
conducted or as currently proposed to be conducted and for the ownership, maintenance and operation of the Company’s and
its Subsidiaries’ properties and assets, free and clear of all liens, encumbrances, adverse claims or obligations to license
all such owned Intellectual Property and Confidential Information, other than licenses entered into in the ordinary course of the
Company’s and its Subsidiaries’ businesses. To the Company’s Knowledge, the Company and its Subsidiaries have
a valid and enforceable right to use all third party Intellectual Property and Confidential Information used or held for use in
the respective businesses of the Company and its Subsidiaries.

 

(d)       To
the Company’s Knowledge, the conduct of the Company’s and its Subsidiaries’ businesses as currently conducted
does not infringe or otherwise impair or conflict with (collectively, “Infringe”) any Intellectual Property rights
of any third party or any confidentiality obligation owed to a third party. To the Company’s Knowledge, the Intellectual
Property and Confidential Information of the Company and its Subsidiaries which are necessary for the conduct of Company’s
and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted, are
not being Infringed by any third party. There is no litigation or legal challenge pending or outstanding or, to the Company’s
Knowledge, threatened or imminent, that seeks to limit or challenge, or that concerns the ownership, use, validity or enforceability
of any Intellectual Property or Confidential Information of the Company and its Subsidiaries and the Company’s and its Subsidiaries’
use of any Intellectual Property or Confidential Information owned by a third party, and, to the Company’s Knowledge, there
is no valid basis for the same.

 

(e)       To
the Company’s Knowledge, the consummation of the transactions contemplated hereby and by the other Transaction Documents
will not result in the alteration, loss, impairment of or restriction on the Company’s or any of its Subsidiaries’
ownership or right to use any of the Intellectual Property or Confidential Information which is necessary for the conduct of Company’s
and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted.

 

(f)       To
the Company’s Knowledge, the Company and its Subsidiaries have taken reasonable steps to protect the Company’s and
its Subsidiaries’ rights in their Intellectual Property and Confidential Information. To the Company’s Knowledge, except
under confidentiality obligations, there has been no material disclosure of any of the Company’s or its Subsidiaries’
Confidential Information to any third party.

 

    	13

     

    

4.16       Environmental
Matters. To the Company’s Knowledge, neither the Company nor any Subsidiary, is in violation of any statute, rule, regulation,
decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release
of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous
or toxic substances (collectively, “Environmental Laws”), owns or operates any real property contaminated with any
substance that is subject to any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any Environmental
Laws, or is subject to any claim relating to any Environmental Laws, which violation, contamination, liability or claim has had
or could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate; and to the Company’s
Knowledge, there is no pending or threatened investigation that might lead to such a claim.

 

4.17       Litigation.
There are no pending actions, suits or proceedings against or affecting the Company, its Subsidiaries or any of its or their properties;
and to the Company’s Knowledge, no such actions, suits or proceedings are threatened, except (i) as described in the
SEC Filings or (ii) any such proceeding, which if resolved adversely to the Company or any Subsidiary, could not reasonably
be expected to have a Material Adverse Effect, individually or in the aggregate. To the Company’s Knowledge, neither the
Company nor any Subsidiary, nor any director or officer thereof, is or since January 1, 2014 has been the subject of any action
involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There
has not been, and to the Company’s Knowledge, there is not pending or contemplated, any investigation by the SEC involving
the Company or any current or former director or officer of the Company. The SEC has not issued any stop order or other order suspending
the effectiveness of any registration statement filed by the Company or any Subsidiary under the 1933 Act or the 1934 Act.

 

4.18       Financial
Statements. The financial statements included in each SEC Filing comply in all material respects with applicable accounting
requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing (or to the extent
corrected by a subsequent restatement) and present fairly, in all material respects, the consolidated financial position of the
Company as of the dates shown and its consolidated results of operations and cash flows for the periods shown, and such financial
statements have been prepared in conformity with United States generally accepted accounting principles applied on a consistent
basis (“GAAP”) (except as may be disclosed therein or in the notes thereto, and, in the case of quarterly financial
statements, as permitted by Form 10-Q under the 1934 Act). Except as set forth in the SEC Filings filed prior to the date hereof,
neither the Company nor any of its Subsidiaries has incurred any liabilities, contingent or otherwise, except those incurred in
the ordinary course of business, consistent (as to amount and nature) with past practices since the date of such financial statements,
none of which, individually or in the aggregate, have had or could reasonably be expected to have a Material Adverse Effect.

 

4.19       Insurance
Coverage. The Company and each Subsidiary maintains in full force and effect insurance coverage that is customary for comparably
situated companies for the business being conducted and properties owned or leased by the Company and each Subsidiary, and the
Company reasonably believes such insurance coverage to be adequate against all liabilities, claims and risks against which it is
customary for comparably situated companies to insure.

 

    	14

     

    

4.20       Compliance
with Nasdaq Continued Listing Requirements. Except as disclosed in the SEC Filings, (a) the Company is in compliance with applicable
Nasdaq continued listing requirements, (b) there are no proceedings pending or, to the Company’s Knowledge, threatened against
the Company relating to the continued listing of the Common Stock on Nasdaq, and (c) the Company has not received any currently
pending notice of the delisting of the Common Stock from Nasdaq.

 

4.21       Brokers
and Finders. Except as set forth on Schedule 4.21, no Person will have, as a result of the transactions contemplated by the
Transaction Documents, any valid right, interest or claim against or upon the Company, any Subsidiary or an Investor for any commission,
fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company.

 

4.22       No
Directed Selling Efforts or General Solicitation. Neither the Company nor any Person acting on its behalf has conducted any
general solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer or sale of any
of the Securities.

 

4.23       No
Integrated Offering. Assuming the accuracy of the Investors’ representations and warranties set forth in Section 5 hereof,
neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any
offers or sales of any Company security or solicited any offers to buy any security, which are or will be integrated with this
offering of the Securities hereunder in a manner that would adversely affect reliance by the Company on Section 4(a)(2) for the
exemption from registration for the transactions contemplated hereby or would require registration of the Securities under the
1933 Act.

 

4.24       Rule
506 Compliance. To the Company’s Knowledge, neither the Company nor any Insider is subject to any of the “Bad Actor”
disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification Event”), except
for a Disqualification Event covered by Rule 506(d)(2)(i) or (d)(3) of the 1933 Act. The Company is not disqualified from relying
on Rule 506 of Regulation D under the 1933 Act (“Rule 506”) for any of the reasons stated in Rule 506(d) in connection
with the issuance and sale of the Securities to the Investors pursuant to this Agreement. The Company has exercised reasonable
care, including without limitation, conducting a factual inquiry that is appropriate in light of the circumstances, into whether
any such disqualification under Rule 506(d) exists. The Company has furnished to each Investor, a reasonable time prior to the
date hereof, a description in writing of any matters relating to the Company and the Insiders that would have triggered disqualification
under Rule 506(d) but which occurred before September 23, 2013, in each case, in compliance with the disclosure requirements of
Rule 506(e). The Company has exercised reasonable care, including without limitation, conducting a factual inquiry that is appropriate
in light of the circumstances, into whether any such disqualification under Rule 506(d) would have existed and whether any disclosure
is required to be made to Investor under Rule 506(e). To the Company’s Knowledge, any outstanding securities of the Company
(of any kind or nature) that were issued in reliance on Rule 506 at any time on or after September 23, 2013 have been issued in
compliance with Rule 506(d) and (e).

 

    	15

     

    

4.25       Private
Placement. Assuming the accuracy of the Investors’ representations and warranties set forth in Section 5 hereof, the
offer and sale of the Securities to the Investors as contemplated hereby is exempt from the registration requirements of the 1933
Act.

 

4.26       Shell
Company Status. The Company is not, and has never been, an issuer identified in Rule 144(i)(1).

 

4.27       Questionable
Payments. Neither the Company nor any of its Subsidiaries nor, to the Company’s Knowledge, any of their
respective current or former stockholders, directors, officers, employees, agents or other Persons acting on behalf of the Company
or any Subsidiary, has on behalf of the Company or any Subsidiary or in connection with their respective businesses: (a) used any
corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; (b)
made any direct or indirect unlawful payments to any governmental officials or employees from corporate funds; (c) established
or maintained any unlawful or unrecorded fund of corporate monies or other assets; (d) made any false or fictitious entries on
the books and records of the Company or any Subsidiary; or (e) made any unlawful bribe, rebate, payoff, influence payment, kickback
or other unlawful payment of any nature.

 

4.28       Transactions
with Affiliates. Except as disclosed in the SEC Filings and except as would not be required to be disclosed in the SEC Filings,
none of the officers or directors of the Company and, to the Company’s Knowledge, none of the employees of the Company is
presently a party to any transaction with the Company or any Subsidiary (other than as holders of stock options and/or warrants,
and for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments
to or from any officer, director or such employee or, to the Company’s Knowledge, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

    	16

     

    

4.29       Internal
Controls. The Company is in material compliance with the provisions of the Sarbanes-Oxley Act of 2002 currently applicable
to the Company. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management's general or specific authorization, and (iv) the recorded
accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate
action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in
1934 Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that material
information relating to the Company, including the Subsidiaries, is made known to the certifying officers by others within those
entities, particularly during the period in which the Company’s most recently filed periodic report under the 1934 Act, as
the case may be, is being prepared. The Company has established internal control over financial reporting (as defined in 1934 Act
Rules 13a-15(f) and 15d-15(f)) to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with GAAP. The Company's certifying officers have evaluated the effectiveness
of the Company's disclosure controls and procedures and the Company’s internal control over financial reporting (collectively,
 “internal controls”) as of the end of the period covered by the most recently filed periodic report under the 1934
Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under the
1934 Act the conclusions of the certifying officers about the effectiveness of such internal controls 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
or, to the Company's Knowledge, in other factors that could significantly affect the Company's internal controls. The Company maintains
and will continue to maintain a standard system of accounting established and administered in accordance with GAAP and the applicable
requirements of the 1934 Act.

 

    	17

     

    

4.30       Disclosures.
Neither the Company nor any Person acting on the Company’s behalf has provided the Investors or their agents or counsel with
any information that constitutes or might constitute material, non-public information, other than the terms of the transactions
contemplated hereby and information provided to the Investors pursuant to confidentiality agreements. The written materials delivered
to the Investors in connection with the transactions contemplated by the Transaction Documents do not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements contained therein, in light of the
circumstances under which they were made, not misleading.

 

4.31       Investment
Company. The Company is not required to be registered as, and is not an Affiliate of, and immediately following the Closing
will not be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended.

 

4.32       FDA.
The Company and each of its Subsidiaries have operated and currently are in compliance with all applicable rules and regulations
of the FDA or any other federal, state, local or foreign governmental body exercising comparable authority, except where the failure
to so operate or be in compliance would not have a Material Adverse Effect. All preclinical and clinical studies conducted by or,
to the Company’s Knowledge, on behalf of the Company to support approval for commercialization of the Company’s products
have been conducted by the Company, or to the Company’s Knowledge by third parties, in compliance with all applicable federal,
state or foreign laws, rules, orders and regulations, except for such failure or failures to be in compliance which could not reasonably
be expected to have, singly or in the aggregate, a Material Adverse Effect. The descriptions of the tests and preclinical and clinical
studies, and results thereof, conducted by or, to the Company’s Knowledge, on behalf of the Company contained in the SEC
Filings are accurate and complete in all material respects; and the Company has not received any oral or written notice or correspondence
from the FDA or any foreign, state or local governmental body exercising comparable authority requiring the termination, suspension,
or clinical hold of any tests or preclinical or clinical studies, or such written notice or correspondence from any Institutional
Review Board or comparable authority requiring the termination or suspension of a clinical study, conducted by or on behalf of
the Company, which termination, suspension, or clinical hold would reasonably be expected to have a Material Adverse Effect.

 

    	18

     

    

4.33.       No
Fiduciary. The Company acknowledges that none of the Investors is acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to this Agreement, the other Transaction Documents and the transactions contemplated
hereby and thereby, and any advice or other guidance provided by any Investor or any of its representatives and agents with respect
to this Agreement, the other Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to
such Investor’s entry into such transactions. The Company’s decision to enter into this Agreement and the other Transaction
Documents has been based solely on the independent evaluation by the Company and its representatives and agents.

 

Each of the Investors acknowledges
and agrees that the Company has not made any representations or warranties with respect to the transactions contemplated hereby
other than those specifically set forth in this Section 4.

 

5.       Representations
and Warranties of the Investors. Each of the Investors hereby severally, and not jointly, represents and warrants to the Company
that:

 

5.1       Organization
and Existence. Such Investor is a corporation, limited partnership or limited liability company duly organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or organization and has all requisite corporate, partnership
or limited liability company power and authority to enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its obligations hereunder and thereunder.

 

5.2       Authorization.
The execution, delivery and performance by such Investor of the Transaction Documents to which such Investor is a party have been
duly authorized and each will constitute the legal, valid and binding obligation of such Investor, enforceable against such Investor
in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability, relating to or affecting creditors’ rights generally.

 

5.3       Consents.
All consents, approvals, orders and authorizations required on the part of such Investor in connection with the execution, delivery
or performance of each Transaction Document and the consummation of the transactions contemplated hereby and thereby have been
obtained and are effective as of the date hereof.

 

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5.4       Purchase
Entirely for Own Account. The Securities to be received by such Investor hereunder will be acquired for such Investor’s
own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the
1933 Act, and such Investor has no present intention of selling, granting any participation in, or otherwise distributing the same
and has no arrangement or understanding with any other Persons regarding the distribution of such Securities in violation of the
1933 Act or any applicable state securities law without prejudice, however, to such Investor’s right at all times to sell
or otherwise dispose of all or any part of such Securities in compliance with applicable federal and state securities laws. Such
Investor is acquiring the Securities hereunder in the ordinary course of its business. Nothing contained herein shall be deemed
a representation or warranty by such Investor to hold the Securities for any period of time. Such Investor is not a broker-dealer
registered with the SEC under the 1934 Act or an entity engaged in a business that would require it to be so registered.

 

5.5       Investment
Experience. Such Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Securities
and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of
the investment contemplated hereby.

 

5.6       Disclosure
of Information. Such Investor has had an opportunity to receive all information related to the Company requested by it and
to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the
offering of the Securities. Such Investor acknowledges receipt of copies of the SEC Filings. Neither such inquiries nor any other
due diligence investigation conducted by such Investor shall modify, limit or otherwise affect such Investor’s right to rely
on the Company’s representations and warranties contained in this Agreement.

 

5.7       Restricted
Securities. Such Investor understands that the Securities are characterized as “restricted securities” under the
U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be resold without registration under the 1933 Act only
in certain limited circumstances.

 

5.8       Legends.
It is understood that, except as provided below, certificates evidencing the Securities may bear the following or any similar legend:

 

(a)       “THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY
NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED,
(II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL TO THE TRANSFEROR,
THE SUBSTANCE OF WHICH OPINION SHALL BE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT
REGISTRATION UNDER THE SECURITIES ACT OF 1933.”

 

    	20

     

    

(b)       If
required by the authorities of any state in connection with the issuance of sale of the Securities, the legend required by such
state authority.

 

5.9       Accredited
Investor. Such Investor is an accredited investor as defined in Rule 501(a) of Regulation D, as amended, under the 1933 Act.
Such Purchaser was not organized for the purpose of acquiring the Securities and is not required to be registered as a broker-dealer
under Section 15 of the 1934 Act.

 

5.10       No
General Solicitation. Such Investor did not learn of the investment in the Securities as a result of any general solicitation
or general advertising.

 

5.11       Brokers
and Finders. No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right,
interest or claim against or upon the Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant
to any agreement, arrangement or understanding entered into by or on behalf of such Investor.

 

5.12       Prohibited
Transactions. Since the earlier of (a) such time as such Investor was first contacted by the Company or any other Person acting
on behalf of the Company regarding the transactions contemplated hereby or (b) thirty (30) days prior to the date hereof, neither
such Investor nor any Affiliate of such Investor which (x) had knowledge of the transactions contemplated hereby, (y) has or shares
discretion relating to such Investor’s investments or trading or information concerning such Investor’s investments,
including in respect of the Securities, or (z) is subject to such Investor’s review or input concerning such Affiliate’s
investments or trading (collectively, “Trading Affiliates”) has, directly or indirectly, effected or agreed to effect
any short sale, whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h)
under the 1934 Act) with respect to the Common Stock, granted any other right (including, without limitation, any put or call option)
with respect to the Common Stock or with respect to any security that includes, relates to or derived any significant part of its
value from the Common Stock or otherwise sought to hedge its position in the Securities (each, a “Prohibited Transaction”).
Prior to the earliest to occur of (i) the termination of this Agreement, (ii) the Effective Date or (iii) the Effectiveness Deadline,
such Investor shall not, and shall cause its Trading Affiliates not to, engage, directly or indirectly, in a Prohibited Transaction.
Such Investor acknowledges that the representations, warranties and covenants contained in this Section 5.12 are being made for
the benefit of the Investors as well as the Company and that each of the other Investors shall have an independent right to assert
any claims against such Investor arising out of any breach or violation of the provisions of this Section 5.12.

 

The Company acknowledges and
agrees that each Investor has not made any representations or warranties with respect to the transactions contemplated by the Transaction
Documents other than those specifically set forth in this Section 5.

 

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6. Conditions to Closing.

 

6.1       Conditions
to the Investors’ Obligations. The obligation of each Investor to purchase the Shares at the Closing is subject to the
fulfillment to such Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any of which may
be waived by such Investor (as to itself only):

 

(a)       The
representations and warranties made by the Company in Section 4 hereof qualified as to materiality shall be true and correct at
all times prior to and on the Closing Date as so qualified, except to the extent any such representation or warranty expressly
speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date as
so qualified, and, the representations and warranties made by the Company in Section 4 hereof not qualified as to materiality shall
be true and correct in all material respects at all times prior to and on the Closing Date, except to the extent any such representation
or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in
all material respects as of such earlier date. The Company shall have performed in all material respects all obligations and covenants
herein required to be performed by it on or prior to the Closing Date.

 

(b)       The
Company shall have obtained any and all consents, permits, approvals, registrations and waivers (other than the approval of the
Proposals by its stockholders in accordance with applicable law and the applicable requirements of Nasdaq) necessary or appropriate
for consummation of the purchase and sale of the Securities and the consummation of the other transactions contemplated by the
Transaction Documents, all of which shall be in full force and effect.

 

(c)       The
Company shall have executed and delivered the Registration Rights Agreement.

 

(d)       The
Company shall have filed with Nasdaq a Notification Form: Listing of Additional Shares for the listing of the Conversion Shares
and the Warrant Shares on the Nasdaq Capital Market, a copy of which shall have been provided to the Investors.

 

(e)       The
Company shall have received gross proceeds from the sale of the Shares as contemplated hereby of at least fifteen million Dollars
($15,000,000).

 

(f)       The
Certificate of Designation shall have been filed with the Secretary of State of Delaware and shall be effective; a filed copy of
the Certificate of Designation shall have been provided to the Investors.

 

(g)       No
judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy
court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have
been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby
or in the other Transaction Documents.

 

    	22

     

    

(h)       The
Company shall have delivered a Certificate, executed on behalf of the Company by its Chief Executive Officer or its Chief Financial
Officer, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in subsections (a), (b), (g),
(k) and (l) of this Section 6.1.

 

(i)       The
Company shall have delivered a Certificate, executed on behalf of the Company by its Secretary, dated as of the Closing Date, certifying
the resolutions adopted by the Board of Directors of the Company or any duly authorized committee thereof approving the transactions
contemplated by this Agreement and the other Transaction Documents and the issuance of the Securities, certifying the current versions
of the Certificate of Incorporation and Bylaws and certifying as to the signatures and authority of persons signing the Transaction
Documents and related documents on behalf of the Company.

 

(j)       The
Investors shall have received an opinion with respect to corporate matters from Olshan Frome Wolosky LLP, special counsel to the
Company, dated as of the Closing Date, in form and substance reasonably acceptable to the Investors and addressing such legal matters
as the Investors may reasonably request.

 

(k)       No
stop order or suspension of trading shall have been imposed by Nasdaq, the SEC or any other governmental or regulatory body with
respect to public trading in the Common Stock.

 

(l)       The
Company shall have obtained Stockholder Approval.

 

6.2       Conditions
to Obligations of the Company. The Company’s obligation to sell and issue the Shares and the Warrants at the Closing
is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any
of which may be waived by the Company:

 

(a)       The
representations and warranties made by the Investors in Section 5 hereof, other than the representations and warranties contained
in Sections 5.4, 5.5, 5.6, 5.7, 5.8, 5.9 and 5.10 (the “Investment Representations”), shall be true and correct in
all material respects when made, and shall be true and correct in all material respects on the Closing Date with the same force
and effect as if they had been made on and as of said date. The Investment Representations shall be true and correct in all respects
when made, and shall be true and correct in all respects on the Closing Date with the same force and effect as if they had been
made on and as of said date. The Investors shall have performed in all material respects all obligations and covenants herein required
to be performed by them on or prior to the Closing Date.

 

(b)       The
Investors shall have executed and delivered the Registration Rights Agreement.

 

(c)       The
Investors shall have delivered the Purchase Price to the Company.

 

(d)       The
Company shall have obtained Stockholder Approval.

 

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6.3       Termination
of Obligations to Effect Closing; Effects.

 

(a)       The
obligations of the Company, on the one hand, and the Investors, on the other hand, to effect the Closing shall terminate as follows:

 

(i)       Upon
the mutual written consent of the Company and the Investors;

 

(ii)       By
the Company if any of the conditions set forth in Section 6.2 shall have become incapable of fulfillment, and shall not have been
waived by the Company;

 

(iii)       By
an Investor (with respect to itself only) if any of the conditions set forth in Section 6.1 shall have become incapable of fulfillment,
and shall not have been waived by the Investor; or

 

(iv)       By
either the Company or any Investor (with respect to itself only) if the Closing has not occurred on or prior to April 15, 2019;

 

provided, however, that, except in the case
of clause (i) above, the party seeking to terminate its obligation to effect the Closing shall not then be in breach of any of
its representations, warranties, covenants or agreements contained in this Agreement or the other Transaction Documents if such
breach has resulted in the circumstances giving rise to such party’s seeking to terminate its obligation to effect the Closing.

 

(b)       In
the event of termination by the Company or any Investor of its obligations to effect the Closing pursuant to this Section 6.3,
written notice thereof shall forthwith be given to the other Investors by the Company and the other Investors shall have the right
to terminate their obligations to effect the Closing upon written notice to the Company and the other Investors. Nothing in this
Section 6.3 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of
this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other
party of its obligations under this Agreement or the other Transaction Documents.

 

7.       Covenants
and Agreements.

 

7.1       Reservation
of Common Stock. The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of providing for the conversion of the Shares and the exercise of the Warrants, such number of shares
of Common Stock as shall from time to time equal the Conversion Shares and the Warrant Shares issuable from time to time.

 

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7.2       Reports.
The Company will furnish to the Investors and/or their assignees such information relating to the Company and its Subsidiaries
as from time to time may reasonably be requested by the Investors and/or their assignees; provided, however, that the Company shall
not disclose material nonpublic information to the Investors, or to advisors to or representatives of the Investors, unless prior
to disclosure of such information the Company identifies such information as being material nonpublic information and provides
the Investors, such advisors and representatives with the opportunity to accept or refuse to accept such material nonpublic information
for review and any Investor wishing to obtain such information enters into an appropriate confidentiality agreement with the Company
with respect thereto.

 

7.3       No
Conflicting Agreements. The Company will not take any action, enter into any agreement or make any commitment that would conflict
or interfere in any material respect with the Company’s obligations to the Investors under the Transaction Documents.

 

7.4       Insurance.
The Company shall not materially reduce the insurance coverages described in Section 4.19.

 

7.5       Compliance
with Laws. The Company will comply in all material respects with all applicable laws, rules, regulations, orders and decrees
of all governmental authorities.

 

7.6       Listing
of Underlying Shares and Related Matters. Promptly following the date hereof, the Company shall take all necessary action to
cause the Conversion Shares and the Warrant Shares to be listed on the Nasdaq Capital Market no later than the Closing Date. Further,
if the Company applies to have its Common Stock or other securities traded on any other principal stock exchange or market, it
shall include in such application the Conversion Shares and the Warrant Shares and will take such other action as is necessary
to cause such Common Stock to be so listed. The Company will use commercially reasonable efforts to continue the listing and trading
of its Common Stock on the Nasdaq Capital Market and, in accordance, therewith, will use commercially reasonable efforts to comply
in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of such market or exchange,
as applicable.

 

7.7       Termination
of Covenants. The provisions of Sections 7.2 through 7.5 shall terminate and be of no further force and effect on the date
on which the Company’s obligations under the Registration Rights Agreement to register or maintain the effectiveness of any
registration covering the Registrable Securities (as such term is defined in the Registration Rights Agreement) shall terminate.

 

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7.8       Removal
of Legends. Upon the earlier of (i) the sale or disposition of any Securities by an Investor pursuant to Rule 144 or pursuant
to any other exemption under the 1933 Act such that the purchaser acquires freely tradable securities or (ii) any Securities of
the Investor becoming eligible to be sold without restriction pursuant to Rule 144, upon the written request of such Investor,
the Company shall or, in the case of Common Stock, shall cause the transfer agent for the Common Stock (the “Transfer Agent”)
to issue replacement certificates representing such Securities. From and after the earlier of such dates, upon an Investor’s
written request, the Company shall promptly cause certificates evidencing the Investor’s Securities to be replaced with certificates
which do not bear such restrictive legends, and Conversion Shares subsequently issued upon due conversion of the Shares and Warrant
Shares subsequently issued upon due exercise of the Warrants shall not bear such restrictive legends provided the provisions of
either clause (i) or clause (ii) above, as applicable, are satisfied with respect thereto. In addition, upon the earlier of (i)
registration of the Conversion Shares and the Warrant Shares for resale pursuant to the Registration Rights Agreement or (ii) the
Conversion Shares and/or the Warrant Shares becoming eligible to be sold without restriction pursuant to Rule 144, the Company
shall (A) deliver to the Transfer Agent irrevocable instructions that the Transfer Agent shall reissue a certificate representing
shares of Common Stock without legends upon receipt by such Transfer Agent of the legended certificates for such shares, together
with either (1) a customary representation by the Investor that Rule 144 applies to the shares of Common Stock represented thereby
or (2) a statement by the Investor that such Investor has sold the shares of Common Stock represented thereby in accordance with
the Plan of Distribution contained in the Registration Statement, and (B) cause its counsel to deliver to the Transfer Agent one
or more blanket opinions to the effect that the removal of such legends in such circumstances may be effected under the 1933 Act.
When the Company is required to cause an unlegended certificate to replace a previously issued legended certificate, if: (1) the
unlegended certificate is not delivered to an Investor within three (3) Business Days of submission by that Investor of a legended
certificate and supporting documentation to the Transfer Agent as provided above and (2) prior to the time such unlegended certificate
is received by the Investor after such three (3) Business Day period, the Investor, or any third party on behalf of such Investor
or for the Investor’s account, purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in
satisfaction of a sale by the Investor of shares represented by such certificate (a “Buy-In”), then the Company shall
pay in cash to the Investor (for costs incurred either directly by such Investor or on behalf of a third party) the amount by which
the total purchase price paid for Common Stock as a result of the Buy-In (including brokerage commissions, if any) exceeds the
proceeds received by such Investor as a result of the sale to which such Buy-In relates. The Investor shall provide the Company
written notice together with a reasonably detailed summary indicating the amounts payable to the Investor in respect of the Buy-In.

 

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7.9       Proxy
Statement; Stockholders Meeting. (a) Promptly following the execution and delivery of this Agreement, the Company shall take
all action necessary to call a meeting of its stockholders (the “Stockholders Meeting”), which shall occur not later
than April 15, 2019 (the “Stockholders Meeting Deadline”), for the purpose of seeking approval of the Company’s
stockholders for (i) the authorization of 1,000,000 shares of “blank check” preferred stock and (ii) the issuance and
sale to the Investors of the Securities (including all of the Conversion Shares issuable upon the full conversion of the Shares
and all of the Warrant Shares issuable upon the full exercise of the Warrants) (the “Proposals”). In connection therewith,
the Company will promptly prepare and file with the SEC proxy materials (including a proxy statement and form of proxy) for use
at the Stockholders Meeting and, after receiving and promptly responding to any comments of the SEC thereon, shall promptly mail
such proxy materials to the stockholders of the Company. Each Investor shall promptly furnish in writing to the Company such information
relating to such Investor and its investment in the Company as the Company may reasonably request for inclusion in the Proxy Statement.
The Company will comply with Section 14(a) of the 1934 Act and the rules promulgated thereunder in relation to any proxy statement
(as amended or supplemented, the "Proxy Statement") and any form of proxy to be sent to the stockholders of the Company
in connection with the Stockholders Meeting, and the Proxy Statement shall not, on the date that the Proxy Statement (or any amendment
thereof or supplement thereto) is first mailed to stockholders or at the time of the Stockholders Meeting, contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements made therein not false or misleading,
or omit to state any material fact necessary to correct any statement in any earlier communication with respect to the solicitation
of proxies or the Stockholders Meeting which has become false or misleading. If the Company should discover at any time prior to
the Stockholders Meeting, any event relating to the Company or any of its Subsidiaries or any of their respective Affiliates, officers
or directors that is required to be set forth in a supplement or amendment to the Proxy Statement, in addition to the Company's
obligations under the 1934 Act, the Company will promptly inform the Investors thereof.

 

(b)       Subject
to their fiduciary obligations under applicable law (as determined in good faith by the Company’s Board of Directors after
consultation with the Company’s outside counsel), the Company's Board of Directors shall recommend to the Company's stockholders
that the stockholders vote in favor of the Proposals (the “Company Board Recommendation”) and take all commercially
reasonable action (including, without limitation, the hiring of a proxy solicitation firm of nationally recognized standing) to
solicit the approval of the stockholders for the Proposals unless the Board of Directors shall have modified, amended or withdrawn
the Company Board Recommendation pursuant to the provisions of the immediately succeeding sentence. The Company covenants that
the Board of Directors of the Company shall not modify, amend or withdraw the Company Board Recommendation unless the Board of
Directors (after consultation with the Company’s outside counsel) shall determine in the good faith exercise of its business
judgment that maintaining the Company Board Recommendation would violate its fiduciary duty to the Company’s stockholders.
Whether or not the Company's Board of Directors modifies, amends or withdraws the Company Board Recommendation pursuant to the
immediately preceding sentence, the Company shall in accordance with applicable law and the provisions of its Certificate of Incorporation
and Bylaws, (i) take all action necessary to convene the Stockholders Meeting as promptly as practicable, but no later than the
Stockholders Meeting Deadline, to consider and vote upon the approval of the Proposals and (ii) submit the Proposals at the Stockholders
Meeting to the stockholders of the Company for their approval.

 

(c)       Each
Investor agrees to vote all shares of capital stock of the Company that it beneficially owns in favor of the approval of the Proposals
at the Stockholders Meeting, and at any adjournment or postponement thereof.

 

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7.10       Pre-emptive
Right for Future Financings. From the date hereof until one year after the Closing Date, each Investor shall have the right
to participate in any subsequent offering by the Company of its Common Stock or Common Stock Equivalents (other than with respect
to public “at-the-market” offerings of its Common Stock or Common Stock Equivalents not to exceed an aggregate of $10,000,000
in gross proceeds from the date hereof) (a “Subsequent Financing”) as provided herein. At least five (5) Business Days
prior to the execution of definitive documentation for a Subsequent Financing, the Company shall deliver to each Investor a written
notice (“Pre-Notice”), which Pre-Notice shall notify the Investor that the Company would like to share with the Investor
certain information which may constitute material non-public information with regard to the Company and which shall ask the Investor
if it wants to review such information. An Investor shall have the right, exercisable at any time within two (2) Business Days
after its receipt of the Pre-Notice, to notify the Company whether it wishes to review such information. Upon the written request
of an Investor, and only upon a request by such Investor, the Company shall promptly, but no later than one Business Day after
receipt of such request, deliver a subsequent notice to such Investor (a “Subsequent Financing Notice”). The Subsequent
Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended
to be raised thereunder, the Person with whom such Subsequent Financing is proposed to be effected, and attached to which shall
be a term sheet or similar document relating thereto. Each Investor shall notify the Company by 6:30 p.m. (New York City time)
on the third (3rd) Business Day after its receipt of the Subsequent Financing Notice of its willingness to participate in the Subsequent
Financing on the terms described in the Subsequent Financing Notice, subject to completion of mutually acceptable documentation,
based on such Investor’s Pro-Rata Share (as defined below) of such Subsequent Financing. The Company must provide the Investors
with a second Subsequent Financing Notice, and the Investors will again have the pre-emptive right set forth above in this Section
7.10, if the Subsequent Financing subject to the initial Subsequent Financing Notice is not consummated for any reason on the
terms set forth in such Subsequent Financing Notice within 60 Business Days after the date of the initial Subsequent Financing
Notice with the Person identified in the Subsequent Financing Notice. “Pro-Rata Share” means, with respect to an Investor,
the number of Common Stock or Common Stock Equivalents to be issued in a Subsequent Financing equal to the product of (i) the aggregate
amount of Common Stock or Common Stock Equivalents to be issued in such Subsequent Financing and (ii) the fraction determined by
dividing (x) the number of shares of Common Stock into which the shares of Series A Preferred Stock held by such Investor immediately
prior to such issuance are then convertible, in accordance with Section 4 of the Certificate of Designation (without regard
to the limitations set forth in Section 7 of the Certificate of Designation, and after giving effect to an adjustment under Section
4G of the Certificate of Designation, by (y) the total amount of Common Stock and Common Stock Equivalents (including, without
limitation, the Preferred Stock) on an as-converted-to-Common Stock basis (with respect to any Preferred Stock, without regard
to the limitations set forth in Section 7 of the Certificate of Designation, and after giving effect to an adjustment under
Section 4G of the Certificate of Designation with respect to such Preferred Stock, as applicable), held by all stockholders of
the Company on such date immediately prior to such issuance. All of the transaction documentation related to a Subsequent Financing
to which the pre-emptive right in this Section 7.10 applies shall provide for beneficial ownership limitations that are
substantially similar to the limitations set forth in Section 7 of the Certificate of Designation (including, for the avoidance
of doubt, the issuance of pre-funded warrants or similar securities in lieu of shares of Common Stock). Notwithstanding the foregoing,
this Section 7.10 shall not apply in respect of the issuance of (a) shares of Common Stock or options to employees, consultants,
officers or directors of the Company pursuant to any stock or option plan duly adopted by a majority of the non-employee members
of the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for
such purpose and (b) securities upon the exercise of or conversion of any convertible securities, options or warrants issued and
outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement
to increase the number of shares of Common Stock issuable thereunder or to lower the exercise or conversion price thereof.

 

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7.11       Subsequent
Equity Sales.

 

(a)       From
the date hereof until ninety (90) days after the Closing Date, without the consent of the Required Investors, neither the Company
nor any Subsidiary shall issue shares of Common Stock or Common Stock Equivalents. Notwithstanding the foregoing, the provisions
of this Section 7.11(a) shall not apply to (i) the issuance of the Securities, (ii) the issuance of Common Stock or Common Stock
Equivalents upon the conversion or exercise of any securities of the Company or a Subsidiary outstanding on the date hereof, provided
that the terms of such security are not amended after the date hereof to decrease the exercise price or increase the Common Stock
or Common Stock Equivalents receivable upon the exercise, conversion or exchange thereof or (iii) the issuance of any Common Stock
or Common Stock Equivalents pursuant to any Company equity incentive plan approved by the Company’s stockholders and in place
as of the date hereof.

 

(b)       From
the date hereof until the earlier of (i) two (2) years from the Closing Date or (ii) such time as no Investor holds any of the
Securities, the Company shall be prohibited from effecting or entering into an agreement to effect any “Variable Rate Transaction”.
The term “Variable Rate Transaction” shall mean a transaction in which the Company issues or sells (x) any debt or
equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional shares
of Common Stock either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the
trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities,
or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance
of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the
business of the Company or the market for the Common Stock or (y) enters into any agreement, including, but not limited to, an
equity line of credit, whereby the Company may sell securities at a future determined price. For the avoidance of doubt, the issuance
of a security which is subject to customary anti-dilution protections, including where the conversion, exercise or exchange price
is subject to adjustment as a result of stock splits, reverse stock splits and other similar recapitalization or reclassification
events, shall not be deemed to be a “Variable Rate Transaction.” Notwithstanding anything to the contrary contained
herein, an at-the-market offering shall not be deemed to be a “Variable Rate Transaction.”

 

(c)       The
Company shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate of the Company shall, sell, offer
for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that
will be integrated with the offer or sale of the Securities in a manner that would require the registration under the 1933 Act
of the sale of the Securities to the Investors, or that will be integrated with the offer or sale of the Securities for purposes
of the rules and regulations of any trading market such that it would require stockholder approval prior to the closing of such
other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.

 

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(d)       The
Company shall not, from the date hereof until ninety (90) days after the Closing Date, prepare and file with the SEC a registration
statement relating to an offering for its own account or the account of others under the 1933 Act of any of its equity securities,
other than (i) a Registration Statement pursuant to the Registration Rights Agreement or (ii) any registration statement or post-effective
amendment to a registration statement (or supplement thereto) relating to the Company’s employee benefit plans registered
on Form S-8 or, in connection with an acquisition, on Form S-4.

 

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

 

8.       Survival
and Indemnification.

 

8.1       Survival.
The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the transactions
contemplated by this Agreement until the expiration of the applicable statute of limitations.

 

8.2       Indemnification.
The Company agrees to indemnify and hold harmless each Investor and its Affiliates and their respective directors, officers, trustees,
members, managers, employees and agents, and their respective successors and assigns, from and against any and all losses, claims,
damages, liabilities and expenses (including without limitation reasonable attorney fees and disbursements (subject to Section
8.3 below) and other expenses incurred in connection with investigating, preparing or defending any action, claim or proceeding,
pending or threatened and the costs of enforcement thereof) (collectively, “Losses”) to which such Person may become
subject as a result of any breach of any representation, warranty, covenant or agreement made by or to be performed on the part
of the Company under the Transaction Documents, and will reimburse any such Person for all such amounts as they are incurred by
such Person.

 

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8.3       Conduct
of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (i) give prompt notice
to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party
to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided that any person entitled
to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim,
but the fees and expenses of such counsel shall be at the expense of such person unless (a) the indemnifying party has agreed
to pay such fees or expenses, (b) the indemnifying party shall have failed to assume the defense of such claim and employ counsel
reasonably satisfactory to such person or (c) in the reasonable judgment of any such person, based upon written advice of its
counsel, a conflict of interest exists between such person and the indemnifying party with respect to such claims (in which case,
if the person notifies the indemnifying party in writing that such person elects to employ separate counsel at the expense of
the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such
person); and provided, further, that the failure of any indemnified party to give notice as provided herein shall not relieve
the indemnifying party of its obligations hereunder, except to the extent that such failure to give notice shall materially adversely
affect the indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party shall
not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm
of attorneys at any time for all such indemnified parties. No indemnifying party will, except with the consent of the indemnified
party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation.
The Company will not be liable to any indemnified party under this Agreement (i) for any settlement by such indemnified party
effected without the Company’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed,
or (ii) for any Losses incurred by such indemnified party which a court of competent jurisdiction determines in a final judgment
which is not subject to further appeal are solely attributable to (A) a breach of any of the representations, warranties, covenants
or agreements made by such indemnified party under this Agreement or in any other Transaction Document or (B) the fraud, gross
negligence or willful misconduct of such indemnified party.

 

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9.       Miscellaneous.

 

9.1       Successors
and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company or the Investors,
as applicable, provided, however, that an Investor may assign its rights and delegate its duties hereunder in whole or in part
to an Affiliate or to a third party acquiring some or all of its Securities in a transaction complying with applicable securities
laws without the prior written consent of the Company or the other Investors, provided that such Investor provides written notice
of assignment to the Company promptly after such assignment is effected. The provisions of this Agreement shall inure to the benefit
of and be binding upon the respective permitted successors and assigns of the parties. Without limiting the generality of the foregoing,
in the event that the Company is a party to a merger, consolidation, share exchange or similar business combination transaction
in which the Common Stock is converted into the equity securities of another Person, from and after the effective time of such
transaction, such Person shall, by virtue of such transaction, be deemed to have assumed the obligations of the Company hereunder,
the term “Company” shall be deemed to refer to such Person and the term “Common Stock” shall be deemed
to refer to the securities received by the Investors in connection with such transaction. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

9.2       Counterparts;
Faxes. 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. This Agreement may be delivered by facsimile or other form of electronic
transmission, which shall be deemed an original.

 

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9.3       Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

 

9.4       Notices.
Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed
effectively given as hereinafter described (i) if given by personal delivery, then such notice shall be deemed given upon such
delivery, (ii) if given by telex or telecopier, then such notice shall be deemed given upon receipt of confirmation of complete
transmittal, (iii) if given by mail, then such notice shall be deemed given upon the earlier of (A) receipt of such notice by the
recipient or (B) three days after such notice is deposited in first class mail, postage prepaid, and (iv) if given by an internationally
recognized overnight air courier, then such notice shall be deemed given one Business Day after delivery to such carrier. All notices
shall be addressed to the party to be notified at the address as follows, or at such other address as such party may designate
by ten days’ advance written notice to the other party:

 

If to the Company:

 

PLx Pharma Inc.

9 Fishers Lane, Unit E

Sparta, NJ 07871

Attention: Rita O’Connor, Chief
Financial Officer

Telephone: (973) 409-6543

Facsimile: (713) 842-3052

 

With a copy to:

 

Olshan Frome Wolosky LLP

1325 Avenue of the Americas

New York, NY 10019

Attention: Robert H. Friedman

Telephone: (212) 451-2300

Facsimile: (212) 451-2222

 

If to the Investors:

 

to the addresses set forth on the signature
pages hereto.

 

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9.5       Expenses.
The parties hereto shall pay their own costs and expenses in connection herewith, except that the Company shall pay the reasonable
fees and expenses of Lowenstein Sandler LLP not to exceed $100,000, regardless of whether the transactions contemplated hereby
are consummated; it being understood that Lowenstein Sandler LLP has only rendered legal advice to Park West and not to the Company
or any other Investor in connection with the transactions contemplated hereby, and that each of the Company and each Investor has
relied for such matters on the advice of its own respective counsel. Such expenses shall be paid upon demand upon presentation
of invoice(s) for such expenses. The Company shall reimburse the Investors upon demand for all reasonable out-of-pocket expenses
incurred by the Investors, including without limitation reimbursement of reasonable attorneys’ fees and disbursements, in
connection with any amendment, modification or waiver of this Agreement or the other Transaction Documents. Such expenses shall
be paid upon demand upon presentation of invoice(s) for such expenses. In the event that legal proceedings are commenced by any
party to this Agreement against another party to this Agreement in connection with this Agreement or the other Transaction Documents,
the party or parties which do not prevail in such proceedings shall severally, but not jointly, pay their pro rata share of the
reasonable attorneys’ fees and other reasonable out-of-pocket costs and expenses incurred by the prevailing party in such
proceedings.

 

9.6       Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company
and the Investors. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any
Securities purchased under this Agreement at the time outstanding, each future holder of all such Securities, and the Company.

 

9.7       Publicity.
Except as set forth below, no public release or announcement concerning the transactions contemplated hereby shall be issued by
the Company or the Investors without the prior consent of the Company (in the case of a release or announcement by the Investors)
or the Investors (in the case of a release or announcement by the Company) (which consents shall not be unreasonably withheld),
except as such release or announcement may be required by law or the applicable rules or regulations of any securities exchange
or securities market, in which case the Company or the Investors, as the case may be, shall allow the Investors or the Company,
as applicable, to the extent reasonably practicable in the circumstances, reasonable time to comment on such release or announcement
in advance of such issuance. By 8:30 a.m. (New York City time) on the trading day immediately following the execution and delivery
of this Agreement, or as soon as reasonably practicable thereafter in compliance with the 1934 Act, the Company shall (i) issue
a press release disclosing the execution of this Agreement and describing the transactions contemplated hereby and by the other
Transaction Documents and (ii) file a Current Report on Form 8-K attaching the press release described in the foregoing sentence
as well as copies of the Transaction Documents. In addition, the Company will make such other filings and notices in the manner
and time required by the SEC or Nasdaq.

 

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9.8       Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted
as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable
in any respect.

 

9.9       Entire
Agreement. This Agreement, including any Exhibits and the Disclosure Schedules, and the other Transaction Documents constitute
the entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersede all prior agreements
and understandings, both oral and written, between the parties with respect to the subject matter hereof and thereof.

 

9.10       Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions
as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements
herein contained.

 

9.11       Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of New York applicable to agreements made and to be performed entirely within the State of New York
(except to the extent the provisions of the Delaware General Corporations Law would be mandatorily applicable to the issuance of
the Shares, the Conversion Shares, the Warrants or the Warrant Shares). Each of the parties hereto irrevocably submits to the exclusive
jurisdiction of the courts of the State of New York located in New York County and the United States District Court for the Southern
District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and
the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on
each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. Each
of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to
the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit,
action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in
any such court has been brought in an inconvenient forum. TO THE EXTENT ALLOWABLE UNDER APPLICABLE LAW, EACH OF THE PARTIES
HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL
HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

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9.12       Independent
Nature of Investors' Obligations and Rights. The obligations of each Investor under any Transaction Document are several and
not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the
obligations of any other Investor under any Transaction Document. The decision of each Investor to purchase Securities pursuant
to the Transaction Documents has been made by such Investor independently of any other Investor. Nothing contained herein or in
any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as
a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any
way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.
Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment
hereunder and that no Investor will be acting as agent of such Investor in connection with monitoring its investment in the Securities
or enforcing its rights under the Transaction Documents. Each Investor shall be entitled to independently protect and enforce its
rights, including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and
it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. The Company
acknowledges that each of the Investors has been provided with the same Transaction Documents for the purpose of closing a transaction
with multiple Investors and not because it was required or requested to do so by any Investor.

 

[signature page follows]

 

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IN WITNESS WHEREOF, the parties
have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.

  

	The Company:	PLX PHARMA INC.
	 	 
	 	By:	  /s/ Natasha Giordano

 

	 	 	Name:	Natasha Giordano
	 	 	Title:	President & CEO

 

 

    [Signature Page to Purchase Agreement]

     

    

 

	The Investors:	PARK WEST INVESTORS MASTER FUND, LIMITED
	 	 
	 	 
	 	 
	 	By:	
        /s/ Grace Jimenez

	 	Name:  Grace Jimenez
	 	Title:  Chief Financial officer

 

Aggregate Purchase Price: $ 13,565,000

Number of Shares: 13,565

Number of Commitment Warrants: 452,135

 

	Address For Notices:	 
	 	
        c/o Park West Asset Management LLC

        900 Larkspur Landing Circle, Suite 165

        Larkspur, CA 94939

        Telephone Number: (415) 524-2900

        Attention: Grace Jimenez

        Email: operations@ parkwestllc.com

	 	 
	 	with a copy to:
	 	 
	 	
        Lowenstein Sandler LLP

        1251 Avenue of the Americas

        New York, NY 10020

        Attention James O’Grady

        Telephone Number: (646) 414-6849

        Fax: (973) 422-6821

 

    [Signature Page to Purchase Agreement]

     

    

 

	The Investors:	PARK WEST PARTNERS INTERNATIONAL, LIMITED
	 	 
	 	 
	 	 
	 	By:	
        /s/ Grace Jimenez

	 	Name:  Grace Jimenez
	 	Title:  Chief Financial officer

 

Aggregate Purchase Price: $ 1,435,000

Number of Shares: 1,435

Number of Commitment Warrants: 47,865

 

	Address For Notices:	 
	 	
        c/o Park West Asset Management LLC

        900 Larkspur Landing Circle, Suite 165

        Larkspur, CA 94939

        Telephone Number: (415) 524-2900

        Attention: Grace Jimenez

        Email: operations@ parkwestllc.com

	 	 
	 	with a copy to:
	 	 
	 	
        Lowenstein Sandler LLP

        1251 Avenue of the Americas

        New York, NY 10020

        Attention James O’Grady

        Telephone Number: (646) 414-6849

        Fax: (973) 422-6821

 

    [Signature Page to Purchase Agreement]

     

    

 

 

 

Exhibit A

 

Form of Certificate of Designations

     

     

    

Exhibit B

 

Form of Warrant

 

     

     

    

Exhibit C

 

Form of Registration Rights AgreementExhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

This Registration
Rights Agreement (the “Agreement”) is made and entered into as of this 20th day of December, 2018 by and among PLx
Pharma Inc., a Delaware corporation (the “Company”), and the “Investors” named in that certain Purchase
Agreement by and among the Company and the Investors (the “Purchase Agreement”). Capitalized terms used herein have
the respective meanings ascribed thereto in the Purchase Agreement unless otherwise defined herein.

The parties hereby
agree as follows:

1.
Certain Definitions.

As used in this
Agreement, the following terms shall have the following meanings:

“Additional
Registrable Securities” has the meaning specified in Section 2.

“Common
Stock” means the Company’s common stock, par value $0.001 per share, and any securities into which such shares
may hereinafter be reclassified.

“Initial
Registrable Securities” means (i) the Conversion Shares, (ii) the Warrant Shares, and (iii) any other securities issued
or issuable with respect to or in exchange for the Conversion Shares or the Warrant Shares, whether by merger, charter amendment,
or otherwise.

“Investors”
means the Investors identified in the Purchase Agreement and any Affiliate or permitted transferee of any Investor who is a subsequent
holder of any Warrants or Registrable Securities.

“Prospectus”
means (i) any prospectus (preliminary or final) included in any Registration Statement, as amended or supplemented by any prospectus
supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration
Statement and by all other amendments and supplements to the prospectus, including post-effective amendments and all material incorporated
by reference in such prospectus, and (ii) any “free writing prospectus” as defined in Rule 405 under the 1933 Act.

“Register,”
 “registered” and “registration” refer to a registration made by preparing and filing a Registration
Statement or similar document in compliance with the 1933 Act (as defined below), and the declaration or ordering of effectiveness
of such Registration Statement or document.

“Registrable
Securities” means the Initial Registrable Securities and the Additional Registrable Securities; provided, that, a security
shall cease to be a Registrable Security (and the Company shall not be required to maintain the effectiveness of any, or file another,
Registration Statement hereunder with respect thereto) for so long as (a) a Registration Statement with respect to the sale of
such Registrable Securities is declared effective by the SEC under the 1933 Act and such Registrable Securities have been disposed
of by the holder thereof in accordance with such effective Registration Statement, (b) such Registrable Securities have been previously
sold in accordance with Rule 144, or (c) such Registrable Securities become eligible for resale without volume or manner-of-sale
restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect,
addressed, delivered and acceptable to the Transfer Agent and the affected holders (assuming that such securities and any securities
issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were issued or are issuable,
were at no time held by any Affiliate of the Company, and all Warrants are exercised by “cashless exercise” as provided
in the Warrants), as reasonably determined by the Company, upon the advice of counsel to the Company and the Transfer Agent has
issued certificates for such Registrable Securities to the holder thereof, or as such holder may direct, without any restrictive
legend.

    	 

     

    

“Registration
Statement” means any registration statement of the Company filed under the 1933 Act that covers the resale of any of
the Registrable Securities pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement,
including post-effective amendments, all exhibits and all material incorporated by reference in such Registration Statement.

“Required
Investors” means the Investors beneficially owning a majority of the Registrable Securities (without regard to any ownership
limitations specified in the Shares or the Warrants).

“SEC”
means the U.S. Securities and Exchange Commission.

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

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

2.
Registration.

(a)
Registration Statements.

(i)
Initial Registration Statement. Promptly following the earlier of (x) the closing of the purchase and sale
of the securities contemplated by the Purchase Agreement (the “Closing Date”) and (y) April 15, 2019, but no later
than May 15, 2019 (the “Filing Deadline”), the Company shall prepare and file with the SEC one Registration Statement
on Form S-3 (or, if Form S-3 is not then available to the Company, on such form of registration statement as is then available
to effect a registration for resale of the Registrable Securities), covering the resale of the Initial Registrable Securities.
Subject to any SEC comments, such Registration Statement shall include the plan of distribution attached hereto as Exhibit A;
provided, however, that no Investor shall be named as an “underwriter” in the Registration Statement without the Investor’s
prior written consent. Such Registration Statement also shall cover, to the extent allowable under the 1933 Act and the rules promulgated
thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock
dividends or similar transactions with respect to the Initial Registrable Securities. The Registration Statement (and each amendment
or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided in accordance with Section
3(c) to the Investors and their counsel prior to its filing or other submission. If a Registration Statement covering the Initial
Registrable Securities is not filed with the SEC on or prior to the Filing Deadline, the Company will make pro rata payments to
each Investor, as liquidated damages and not as a penalty, in an amount equal to 1.0% of the aggregate amount invested by such
Investor pursuant to the Purchase Agreement for each 30-day period or pro rata for any portion thereof following the Filing Deadline
for which no Registration Statement is filed with respect to the Initial Registrable Securities. Such payments shall constitute
the Investors’ exclusive monetary remedy for such events, but shall not affect the right of the Investors to seek injunctive
relief. Such payments shall be made to each Investor in cash no later than three (3) Business Days after the end of each 30-day
period.

    	2

     

    

(ii)
Additional Registrable Securities. In the event that (x) the Company has issued to an Investor any
PIK Shares (as defined in the Certificate of Designation) or (y) there is any change in the Conversion Price (as defined
in the Certificate of Designation) or the exercise price of the Warrants such that additional shares of Common Stock become issuable
upon the conversion of the Shares or the exercise of the Warrants (other than a change within the contemplation of Rule 416) (such
additional shares of Common Stock, together with such PIK Shares, collectively, “Additional Registrable Securities”),
the Company shall, upon the written request of Investors holding not less than an aggregate of 500,000 Additional Securities, prepare
and file with the SEC one or more Registration Statements on S-3 (or, if Form S-3 is not then available
to the Company, on such form of registration statement as is then available to effect a registration for resale of the Additional
Registrable Securities) or amending the Registration Statement filed pursuant to clause (i) above, if such Registration
Statement has not previously been declared effective, but only to the extent the Additional Registrable Securities are not at the
time covered by an effective Registration Statement. Subject to any SEC comments, such Registration Statement shall include the
plan of distribution attached hereto as Exhibit A; provided, however, that no Investor shall be named as an “underwriter”
in the Registration Statement without the Investor’s prior written consent. Such Registration Statement also shall cover,
to the extent allowable under the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate number
of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Additional
Registrable Securities. The Registration Statement (and each amendment or supplement thereto, and each request for acceleration
of effectiveness thereof) shall be provided in accordance with Section 3(c) to the Investors and their counsel prior to its filing
or other submission. If a Registration Statement covering the Additional Registrable Securities is required to be filed under this
Section 2(a)(ii) and is not filed with the SEC within five Business Days of the occurrence of any of the events specified in this
Section 2(a)(ii) (the “Additional Registrable Securities Filing Deadline”), the Company will make pro rata payments
to each Investor, as liquidated damages and not as a penalty, in an amount equal to 1.0% of the aggregate amount invested by such
Investor pursuant to the Purchase Agreement for each 30-day period or pro rata for any portion thereof following the Additional
Registrable Securities Filing Deadline for which no Registration Statement is filed with respect to the Additional Registrable
Securities. Such payments shall constitute the Investors’ exclusive monetary remedy for such events, but shall not affect
the right of the Investors to seek injunctive relief. Such payments shall be made to each Investor in cash no later than three
(3) Business Days after the end of each 30-day period.

(b)
Expenses. The Company will pay all expenses associated with effecting the registration of the Registrable
Securities, including filing and printing fees, the Company’s counsel and accounting fees and expenses, costs associated
with clearing the Registrable Securities for sale under applicable state securities laws, listing fees, reasonable fees and expenses
of one counsel to the Investors up to an aggregate of $10,000 and the Investors’ other reasonable expenses in connection
with the registration, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar
securities industry professionals with respect to the Registrable Securities being sold.

    	3

     

    

(c)
Effectiveness.

(i)
The Company shall use commercially reasonable efforts to have any Registration Statement declared effective as soon
as reasonably practicable. The Company shall notify the Investors by facsimile or e-mail as promptly as practicable, and in any
event, within twenty-four (24) hours, after any Registration Statement is declared effective and shall simultaneously provide the
Investors with copies of any related Prospectus to be used in connection with the sale or other disposition of the securities covered
thereby. If (A)(x) a Registration Statement covering the Initial Registrable Securities is not declared effective by the SEC prior
to five (5) Business Days after the SEC shall have informed the Company that no review of the Registration Statement will be made
or that the SEC has no further comments on the Registration Statement or (y) a Registration Statement covering the Additional Registrable
Securities is not declared effective by the SEC prior to five (5) Business Days after the SEC shall have informed the Company that
no review of the Registration Statement will be made or that the SEC has no further comments on the Registration Statement, or
(B) after a Registration Statement has been declared effective by the SEC, sales cannot be made pursuant to such Registration Statement
for any reason (including without limitation by reason of a stop order, or the Company’s failure to update the Registration
Statement), but excluding any Allowed Delay (as defined below) or the inability of any Investor to sell the Registrable Securities
covered thereby due to market conditions, then the Company will make pro rata payments to each Investor, as liquidated damages
and not as a penalty, in an amount equal to 1.0% of the aggregate amount invested by such Investor pursuant to the Purchase Agreement
for each 30-day period or pro rata for any portion thereof following the date by which such Registration Statement should have
been effective (the “Blackout Period”). Such payments shall constitute the Investors’ exclusive monetary remedy
for such events, but shall not affect the right of the Investors to seek injunctive relief. The amounts payable as liquidated damages
pursuant to this paragraph shall be paid monthly within three (3) Business Days of the last day of each month following the commencement
of the Blackout Period until the termination of the Blackout Period. Such payments shall be made to each Investor in cash.

(ii)
For not more than thirty (30) consecutive days or for a total of not more than sixty (60) days in any twelve (12)
month period, the Company may suspend the use of any Prospectus included in any Registration Statement contemplated by this Section
in the event that the Company determines in good faith that such suspension is necessary to (A) delay the disclosure of material
non-public information concerning the Company, the disclosure of which at the time is not, in the good faith opinion of the Company,
in the best interests of the Company or (B) amend or supplement the affected Registration Statement or the related Prospectus so
that such Registration Statement or Prospectus shall not include 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 the case of the Prospectus in light of the circumstances
under which they were made, not misleading (an “Allowed Delay”); provided, that the Company shall promptly (a) notify
each Investor in writing of the commencement of an Allowed Delay, but shall not (without the prior written consent of an Investor)
disclose to such Investor any material non-public information giving rise to an Allowed Delay, (b) advise the Investors in writing
to cease all sales under the Registration Statement until the end of the Allowed Delay and (c) use commercially reasonable efforts
to terminate an Allowed Delay as promptly as practicable.

    	4

     

    

(d)
Rule 415; Cutback If at any time the SEC takes the position that the offering of some or all of the Registrable
Securities in a Registration Statement is not eligible to be made on a delayed or continuous basis under the provisions of Rule
415 under the 1933 Act or requires any Investor to be named as an “underwriter”, the Company shall use its commercially
reasonable efforts to persuade the SEC that the offering contemplated by a Registration Statement is a bona fide secondary offering
and not an offering “by or on behalf of the issuer” as defined in Rule 415 and that none of the Investors is an “underwriter”.
The Investors shall have the right to participate or have their counsel participate in any meetings or discussions with the SEC
regarding the SEC’s position and to comment or have their counsel comment on any written submission made to the SEC with
respect thereto. No such written submission shall be made to the SEC to which the Investors’ counsel reasonably objects.
In the event that, despite the Company’s commercially reasonable efforts and compliance with the terms of this Section 2(d),
the SEC refuses to alter its position, the Company shall (i) remove from the Registration Statement such portion of the Registrable
Securities (the “Cut Back Shares”) and/or (ii) agree to such restrictions and limitations on the registration and resale
of the Registrable Securities as the SEC may require to assure the Company’s compliance with the requirements of Rule 415
(collectively, the “SEC Restrictions”); provided, however, that the Company shall not agree to name any Investor as
an “underwriter” in such Registration Statement without the prior written consent of such Investor. Any cut-back imposed
on the Investors pursuant to this Section 2(d) shall be allocated among the Investors on a pro rata basis and shall be applied
first to any Warrant Shares, unless the SEC Restrictions otherwise require or provide or the Investors otherwise agree. No liquidated
damages shall accrue as to any Cut Back Shares until such date as the Company is able to effect the registration of such Cut Back
Shares in accordance with any SEC Restrictions (such date, the “Restriction Termination Date” of such Cut Back Shares).
From and after the Restriction Termination Date applicable to any Cut Back Shares, all of the provisions of this Section 2 (including
the liquidated damages provisions) shall again be applicable to such Cut Back Shares; provided, however, that the Filing Deadline
and the Additional Registrable Securities Filing Deadline for the Registration Statement including such Cut Back Shares shall be
ten (10) Business Days after such Restriction Termination Date.

(e)
Right to Piggyback Registration.

(i)
If at any time following the date of this Agreement that any Registrable Securities remain outstanding and are not
freely tradable under Rule 144 (A) there is not one or more effective Registration Statements covering all of the Registrable Securities
and (B) the Company proposes for any reason to register any shares of Common Stock under the 1933 Act (other than pursuant to a
registration statement on Form S-4 or Form S-8 (or a similar or successor form)) with respect to an offering of Common Stock by
the Company for its own account or for the account of any of its stockholders, it shall at each such time promptly give written
notice to the holders of the Registrable Securities of its intention to do so (but in no event less than thirty (30) days before
the anticipated filing date) and, to the extent permitted under the provisions of Rule 415 under the 1933 Act, include in such
registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within
fifteen (15) days after receipt of the Company’s notice (a “Piggyback Registration”). Such notice shall offer
the holders of the Registrable Securities the opportunity to register such number of shares of Registrable Securities as each such
holder may request and shall indicate the intended method of distribution of such Registrable Securities.

    	5

     

    

(ii)
Notwithstanding the foregoing, (A) if such registration involves an underwritten public offering, the Investors must
sell their Registrable Securities to, if applicable, the underwriter(s) at the same price and subject to the same underwriting
discounts and commissions that apply to the other securities sold in such offering (it being acknowledged that the Company shall
be responsible for other expenses as set forth in Section 2(b)) and subject to the Investors entering into customary underwriting
documentation for selling stockholders in an underwritten public offering, and (B) if, at any time after giving written notice
of its intention to register any Registrable Securities pursuant to Section 2(e)(i) and prior to the effective date of the registration
statement filed in connection with such registration, the Company shall determine for any reason not to cause such registration
statement to become effective under the 1933 Act, the Company shall deliver written notice to the Investors and, thereupon, shall
be relieved of its obligation to register any Registrable Securities in connection with such registration; provided, however, that
nothing contained in this Section 2(e)(ii) shall limit the Company’s liabilities and/or obligations under this Agreement,
including, without limitation, the obligation to pay liquidated damages under this Section 2. If the managing underwriter(s) for
the underwritten public offering advise the Company that the number of shares proposed to be included in the offering exceeds the
number of shares that can reasonably be sold in the offering, then the shares to be included in such offering, including any Registrable
Securities, shall be allocated, first, to the account of the Company, in the event that the public offering relates to a primary
offering by or on behalf of the Company, or, if the offering is being made pursuant to demand registration rights granted to one
or more holders of Common Stock, such holders; second, to the Investors, on a pro rata basis based on the number of Registrable
Securities the Investors sought to include in such offering; and third, to any other holder of common Stock having the right to
include its shares in the offering.

3.
Company Obligations. The Company will use commercially reasonable efforts to effect the registration of the
Registrable Securities in accordance with the terms hereof, and pursuant thereto the Company will, as expeditiously as possible:

(a)
use commercially reasonable efforts to cause such Registration Statement to become effective and to remain continuously
effective for a period that will terminate upon the earlier of (i) the date on which all Registrable Securities covered by such
Registration Statement as amended from time to time, have been sold or otherwise disposed of pursuant to the Registration Statement
or in a transaction in which the transferee receives freely tradable shares, and (ii) the date on which the Registrable Securities
no longer constitute “Registrable Securities” pursuant to the definition thereof (the “Effectiveness Period”)
and advise the Investors in writing when the Effectiveness Period has expired;

(b)
prepare and file with the SEC such amendments and post-effective amendments to the Registration Statement and the
Prospectus as may be necessary to keep the Registration Statement effective for the Effectiveness Period and to comply with the
provisions of the 1933 Act and the 1934 Act with respect to the distribution of all of the Registrable Securities covered thereby;

    	6

     

    

(c)
provide copies to and permit counsel designated by the Investors to review each Registration Statement and all amendments
and supplements thereto no fewer than three (3) business days prior to their filing with the SEC and not file any document to which
such counsel reasonably objects;

(d)
furnish to the Investors and their legal counsel (i) promptly after the same is prepared and publicly distributed,
filed with the SEC, or received by the Company (but not later than two (2) Business Days after the filing date, receipt date or
sending date, as the case may be) one (1) copy of any Registration Statement and any amendment thereto, each preliminary prospectus
and Prospectus and each amendment or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the
staff of the SEC, and each item of correspondence from the SEC or the staff of the SEC, in each case relating to such Registration
Statement (other than any portion thereof which contains information for which the Company has sought confidential treatment),
and (ii) such number of copies of a Prospectus, including a preliminary prospectus, and all amendments and supplements thereto
and such other documents as each Investor may reasonably request in order to facilitate the disposition of the Registrable Securities
owned by such Investor that are covered by the related Registration Statement;

(e)
use commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness
and, (ii) if such order is issued, obtain the withdrawal of any such order at the earliest possible moment;

(f)
prior to any public offering of Registrable Securities, use commercially reasonable efforts to register or qualify
or cooperate with the Investors and their counsel in connection with the registration or qualification of such Registrable Securities
for offer and sale under the securities or blue sky laws of such jurisdictions requested by the Investors and do any and all other
commercially reasonable acts or things necessary or advisable to enable the distribution in such jurisdictions of the Registrable
Securities covered by the Registration Statement; provided, however, that the Company shall
not be required in connection therewith or as a condition thereto to (i) qualify to do business in any jurisdiction where it would
not otherwise be required to qualify but for this Section 3(f), (ii) subject itself to general taxation in any jurisdiction where
it would not otherwise be so subject but for this Section 3(f), or (iii) file a general consent to service of process in any such
jurisdiction;

(g)
use commercially reasonable efforts to cause all Registrable Securities covered by a Registration Statement to be
listed on each securities exchange, interdealer quotation system or other market on which similar securities issued by the Company
are then listed;

    	7

     

    

(h)
promptly notify the Investors, at any time prior to the end of the Effectiveness Period, upon discovery that, or
upon the happening of any event as a result of which, the Prospectus includes an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing, and promptly prepare, file with the SEC and furnish to such holder a supplement to or an amendment
of such Prospectus as may be necessary so that such Prospectus shall not include 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 in light of the
circumstances then existing;

(i)
otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the SEC under
the 1933 Act and the 1934 Act, including, without limitation, Rule 172 under the 1933 Act, file any final Prospectus, including
any supplement or amendment thereof, with the SEC pursuant to Rule 424 under the 1933 Act, promptly inform the Investors in writing
if, at any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result
thereof, the Investors are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take
such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder; and make
available to its security holders, as soon as reasonably practicable, but not later than the Availability Date (as defined below),
an earnings statement covering a period of at least twelve (12) months, beginning after the effective date of each Registration
Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the 1933 Act, including Rule 158 promulgated
thereunder (for the purpose of this subsection 3(i), “Availability Date” means the 45th day following the end of the
fourth fiscal quarter that includes the effective date of such Registration Statement, except that, if such fourth fiscal quarter
is the last quarter of the Company’s fiscal year, “Availability Date” means the 90th day after the end of such
fourth fiscal quarter); and

(j)
With a view to making available to the Investors the benefits of Rule 144 (or its successor rule) and any other rule
or regulation of the SEC that may at any time permit the Investors to sell shares of Common Stock to the public without registration,
the Company covenants and agrees to: (i) make and keep public information available, as those terms are understood and defined
in Rule 144, until the earlier of (A) six months after such date as all of the Registrable Securities may be sold without restriction
by the holders thereof pursuant to Rule 144 or any other rule of similar effect or (B) such date as all of the Registrable Securities
shall have been resold pursuant to a Registration Statement, Rule 144 or otherwise in a transaction in which the transferee receives
freely tradable shares; (ii) file with the SEC in a timely manner all reports and other documents required of the Company under
the 1934 Act; and (iii) furnish to each Investor upon request, as long as such Investor owns any Registrable Securities, (A) a
written statement by the Company that it has complied with the reporting requirements of the 1934 Act, (B) a copy of the Company’s
most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, and (C) such other information as may be reasonably requested
in order to avail such Investor of any rule or regulation of the SEC that permits the selling of any such Registrable Securities
without registration. In the event that the Company fails to comply with the requirements of this Section 3(j) after the 180th
day after the earlier of the Closing Date or April 15, 2019, the Company will make pro rata payments to each Investor, as liquidated
damages and not as a penalty, in an amount equal to 1.0% of the aggregate amount invested by such Investor pursuant to the Purchase
Agreement for each 30-day period or pro rata for any portion thereof until such failure is cured; provided, however, that
only Investors that have not sold or otherwise disposed of all of their Registrable Securities prior to such failure shall be entitled
to receive liquidated damages pursuant to this Section 3. Such payments shall constitute the Investors’ exclusive monetary
remedy for such events, but shall not affect the right of the Investors to seek injunctive relief. Such payments shall be made
to each Investor in cash no later than three (3) Business Days after the end of each 30-day period.

    	8

     

    

4.
Due Diligence Review; Information. The Company shall make available, during normal business hours, for inspection
and review by the Investors, advisors to and representatives of the Investors (who may or may not be affiliated with the Investors
and who are reasonably acceptable to the Company), all financial and other records, all SEC Filings (as defined in the Purchase
Agreement) and other filings with the SEC, and all other corporate documents and properties of the Company as may be reasonably
necessary for the purpose of such review, and cause the Company’s officers, directors and employees, within a reasonable
time period, to supply all such information reasonably requested by the Investors or any such representative, advisor or underwriter
in connection with such Registration Statement (including, without limitation, in response to all questions and other inquiries
reasonably made or submitted by any of them), prior to and from time to time after the filing and effectiveness of the Registration
Statement for the sole purpose of enabling the Investors and such representatives, advisors and underwriters and their respective
accountants and attorneys to conduct initial and ongoing due diligence with respect to the Company and the accuracy of such Registration
Statement.

The Company shall
not disclose material nonpublic information to the Investors, or to advisors to or representatives of the Investors, unless prior
to disclosure of such information the Company identifies such information as being material nonpublic information and provides
the Investors, such advisors and representatives with the opportunity to accept or refuse to accept such material nonpublic information
for review and any Investor wishing to obtain such information enters into an appropriate confidentiality agreement with the Company
with respect thereto.

5.
Obligations of the Investors.

(a)
Each Investor shall furnish in writing to the Company such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to
effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as
the Company may reasonably request. At least five (5) Business Days prior to the first anticipated filing date of any Registration
Statement, the Company shall notify each Investor of the information the Company requires from such Investor if such Investor elects
to have any of the Registrable Securities included in the Registration Statement. An Investor shall provide such information to
the Company at least two (2) Business Days prior to the first anticipated filing date of such Registration Statement if such Investor
elects to have any of the Registrable Securities included in the Registration Statement. In the event that an Investor does not
provide such information on a timely basis, the Company shall provide prompt written notice to such Investor that the Registrable
Securities attributable to such Investor will be excluded from the Registration Statement unless such Investor provides the required
information within one (1) Business Day after its receipt of such notice. If such Investor does not provide the required information
to the Company by the end of the next Business Day after its receipt of such notice, the Company shall have the right to exclude
the Registrable Securities attributable to such Investor from the Registration Statement and the Investor shall not be entitled
to receive any liquidated damages pursuant to the provisions of this Agreement with respect to such Registration Statement. Notwithstanding
anything in this Agreement to the contrary, any Investor that elects not to have any of its Registrable Securities included in
the Registration Statement, shall not be entitled to receive any liquidated damages pursuant to the provisions of this Agreement
with respect to such Registration Statement.

    	9

     

    

(b)
Each Investor, by its acceptance of the Registrable Securities agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of a Registration Statement hereunder, unless such Investor
has notified the Company in writing of its election to exclude all of its Registrable Securities from such Registration Statement.

(c)
Each Investor agrees that, upon receipt of any notice from the Company of either (i) the commencement of an Allowed
Delay pursuant to Section 2(c)(ii) or (ii) the happening of an event pursuant to Section 3(h) hereof, such Investor will immediately
discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities,
until the Investor is advised by the Company that such dispositions may again be made.

6.
Indemnification.

(a)
Indemnification by the Company. The Company will indemnify and hold harmless each Investor and its officers,
directors, members, managers, partners, trustees, employees and agents and other representatives, successors and assigns, and each
other person, if any, who controls such Investor within the meaning of the 1933 Act, against any losses, claims, damages or liabilities,
joint or several, to which they may become subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement
or omission or alleged omission of any material fact contained in any Registration Statement, any Prospectus, or any amendment
or supplement thereof; (ii) any blue sky application or other document executed by the Company specifically for that purpose or
based upon written information furnished by the Company filed in any state or other jurisdiction in order to qualify any or all
of the Registrable Securities under the securities laws thereof (any such application, document or information herein called a
 “Blue Sky Application”); (iii) the omission or alleged omission to state in a Blue Sky Application a material fact
required to be stated therein or necessary to make the statements therein not misleading; (iv) any violation by the Company or
its agents of any rule or regulation promulgated under the 1933 Act applicable to the Company or its agents and relating to action
or inaction required of the Company in connection with such registration; or (v) any failure to register or qualify the Registrable
Securities included in any such Registration Statement in any state where the Company or its agents has affirmatively undertaken
or agreed in writing that the Company will undertake such registration or qualification on an Investor’s behalf and will
reimburse such Investor, and each such officer, director or member and each such controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made
in conformity with information furnished by such Investor or any such controlling person in writing specifically for use in such
Registration Statement or Prospectus.

    	10

     

    

(b)
Indemnification by the Investors. Each Investor agrees, severally but not jointly, to indemnify and hold harmless,
to the fullest extent permitted by law, the Company, its directors, officers, employees, stockholders, agents and other representatives
and each person who controls the Company (within the meaning of the 1933 Act) against any losses, claims, damages, liabilities
and expense (including reasonable attorney fees) resulting from any untrue statement of a material fact or any omission of a material
fact required to be stated in the Registration Statement or Prospectus or amendment or supplement thereto or necessary to make
the statements therein not misleading, to the extent, but only to the extent that such untrue statement or omission is contained
in any information furnished in writing by such Investor to the Company specifically for inclusion in such Registration Statement
or Prospectus or amendment or supplement thereto. In no event shall the liability of an Investor be greater in amount than the
dollar amount of the proceeds (net of all expenses paid by such Investor in connection with any claim relating to this Section
6 and the amount of any damages such Investor has otherwise been required to pay by reason of such untrue statement or omission)
received by such Investor upon the sale of the Registrable Securities included in the Registration Statement giving rise to such
indemnification obligation.

(c)
Conduct of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (i) give prompt
notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying
party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided that any
person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense
of such claim, but the fees and expenses of such counsel shall be at the expense of such person unless (A) the indemnifying party
has agreed to pay such fees or expenses, or (B) the indemnifying party shall have failed to assume the defense of such claim and
employ counsel reasonably satisfactory to such person or (C) in the reasonable judgment of any such person, based upon written
advice of its counsel, a conflict of interest exists between such person and the indemnifying party with respect to such claims
(in which case, if the person notifies the indemnifying party in writing that such person elects to employ separate counsel at
the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf
of such person); and provided, further, that the failure of any indemnified party to give notice as provided herein
shall not relieve the indemnifying party of its obligations hereunder, except to the extent that such failure to give notice shall
materially adversely affect the indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying
party shall not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate
firm of attorneys at any time for all such indemnified parties. No indemnifying party will, except with the consent of the indemnified
party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation.

    	11

     

    

(d)
Contribution. If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is
unavailable to an indemnified party or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying
party shall contribute to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability
in such proportion as is appropriate to reflect the relative fault of the indemnified party and the indemnifying party, as well
as any other relevant equitable considerations. No person guilty of fraudulent misrepresentation within the meaning of Section
11(f) of the 1933 Act shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation. In no
event shall the contribution obligation of a holder of Registrable Securities be greater in amount than the dollar amount of the
proceeds (net of all expenses paid by such holder in connection with any claim relating to this Section 6 and the amount of any
damages such holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.

7.
Miscellaneous.

(a)
Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement
may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent
of the Company and the Required Investors.

(b)
Notices. All notices and other communications provided for or permitted hereunder shall be made as set forth
in Section 9.4 of the Purchase Agreement.

(c)
Assignments and Transfers by Investors. The provisions of this Agreement shall be binding upon and inure to
the benefit of the Investors and their respective successors and assigns. An Investor may transfer or assign, in whole or from
time to time in part, to one or more persons its rights hereunder in connection with the transfer of Registrable Securities by
such Investor to such person, provided that such Investor complies with all laws applicable thereto and provides written notice
of assignment to the Company promptly after such assignment is effected.

(d)
Assignments and Transfers by the Company. This Agreement may not be assigned by the Company (whether by operation
of law or otherwise) without the prior written consent of the Required Investors; provided, however, that in the event that
the Company is a party to a merger, consolidation, share exchange or similar business combination transaction in which the Common
Stock is converted into the equity securities of another Person, from and after the effective time of such transaction, such Person
shall, by virtue of such transaction, be deemed to have assumed the obligations of the Company hereunder, the term “Company”
shall be deemed to refer to such Person and the term “Registrable Securities” shall be deemed to include the securities
received by the Investors in connection with such transaction unless such securities are otherwise freely tradable by the Investors
after giving effect to such transaction.

(e)
Benefits of the Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and permitted assigns of the parties. 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.

    	12

     

    

(f)
Counterparts; Faxes. 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. This Agreement may be delivered via facsimile
or other form of electronic communication, which shall be deemed an original.

(g)
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are
not to be considered in construing or interpreting this Agreement.

(h)
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable
law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction. To the extent permitted by applicable law, the parties hereby waive any provision of law which renders
any provisions hereof prohibited or unenforceable in any respect.

(i)
Further Assurances. The parties shall execute and deliver all such further instruments and documents and take
all such other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment
of the agreements herein contained.

(j)
Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject
matter.

(k)
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed
in accordance with, the internal laws of the State of New York without regard to the choice of law principles thereof. Each of
the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York
County and the United States District Court for the Southern District of New York for the purpose of any suit, action, proceeding
or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service of process in connection
with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified
for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such
court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES
HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

    	13

     

    

IN WITNESS WHEREOF,
the parties have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first
above written. 

	The Company:	PLX PHARMA INC.
	 	 
	 	By:	  /s/ Natasha Giordano

 

	 	Name:	Natasha Giordano
	 	Title:	President & CEO
	 	 	 	 

 

    	14

     

    

	The Investors:	PARK WEST INVESTORS MASTER FUND, LIMITED
	 	(Name of Investor)
	 	 
	 	By:	Park West Asset management LLC
	 	Its:	Investment Manager
	 	 	 
	 	By:	
        /s/ Grace Jimenez

	 	Name:  Grace Jimenez
	 	Title:  Chief Financial Officer

 

 

	 	PARK WEST PARTNERS INTERNATIONAL, LIMITED
	 	(Name of Investor)
	 	 
	 	By:	Park West Asset management LLC
	 	Its:	Investment Manager
	 	 	 
	 	By:	
        /s/ Grace Jimenez

	 	Name:  Grace Jimenez
	 	Title:  Chief Financial Officer

 

    	15

     

    

Exhibit A

Plan of Distribution

The selling stockholders,
which as used herein includes donees, pledgees, transferees or other successors-in-interest selling shares of common stock or interests
in shares of common stock received after the date of this prospectus from a selling stockholder as a gift, pledge, partnership
distribution or other transfer, may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of common
stock or interests in shares of common stock on any stock exchange, market or trading facility on which the shares are traded or
in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices
related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.

The selling stockholders
may use any one or more of the following methods when disposing of shares or interests therein:

		-	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

		-	block trades in which the broker-dealer will attempt to sell the shares as agent, but may position
and resell a portion of the block as principal to facilitate the transaction;

		-	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

		-	an exchange distribution in accordance with the rules of the applicable exchange;

		-	privately negotiated transactions;

		-	short sales effected after the date the registration statement of which this Prospectus is a part
is declared effective by the SEC;

		-	through the writing or settlement of options or other hedging transactions, whether through an
options exchange or otherwise;

		-	broker-dealers may agree with the selling stockholders to sell a specified number of such shares
at a stipulated price per share;

		-	a combination of any such methods of sale; and

		-	any other method permitted by applicable law.

    	16

     

    

The selling stockholders
may, from time to time, pledge or grant a security interest in some or all of the shares of common stock owned by them and, if
they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of
common stock, from time to time, under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act amending the list of selling stockholders to include the pledgee, transferee or other
successors in interest as selling stockholders under this prospectus. The selling stockholders also may transfer the shares of
common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.

In connection with
the sale of our common stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions
they assume. The selling stockholders may also sell shares of our common stock short and deliver these securities to close out
their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling
stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation
of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares
offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus
(as supplemented or amended to reflect such transaction).

The aggregate proceeds
to the selling stockholders from the sale of the common stock offered by them will be the purchase price of the common stock less
discounts or commissions, if any. Each of the selling stockholders reserves the right to accept and, together with their agents
from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents.
We will not receive any of the proceeds from this offering. Upon any exercise of the warrants by payment of cash, however, we will
receive the exercise price of the warrants.

The selling stockholders
also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act of
1933, provided that they meet the criteria and conform to the requirements of that rule.

The selling stockholders
and any underwriters, broker-dealers or agents that participate in the sale of the common stock or interests therein may be "underwriters"
within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn on any resale
of the shares may be underwriting discounts and commissions under the Securities Act. Selling stockholders who are "underwriters"
within the meaning of Section 2(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities
Act.

To the extent required,
the shares of our common stock to be sold, the names of the selling stockholders, the respective purchase prices and public offering
prices, the names of any agents, dealer or underwriter, any applicable commissions or discounts with respect to a particular offer
will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement
that includes this prospectus.

In order to comply
with the securities laws of some states, if applicable, the common stock may be sold in these jurisdictions only through registered
or licensed brokers or dealers. In addition, in some states the common stock may not be sold unless it has been registered or qualified
for sale or an exemption from registration or qualification requirements is available and is complied with.

    	17

     

    

We have advised
the selling stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in
the market and to the activities of the selling stockholders and their affiliates. In addition, to the extent applicable we will
make copies of this prospectus (as it may be supplemented or amended from time to time) available to the selling stockholders for
the purpose of satisfying the prospectus delivery requirements of the Securities Act. The selling stockholders may indemnify any
broker-dealer that participates in transactions involving the sale of the shares against certain liabilities, including liabilities
arising under the Securities Act.

We have agreed to
indemnify the selling stockholders against liabilities, including liabilities under the Securities Act and state securities laws,
relating to the registration of the shares offered by this prospectus.

We have agreed with
the selling stockholders to keep the registration statement of which this prospectus constitutes a part effective until the earlier
of (i) the date that such securities become eligible for resale without volume or manner-of-sale restrictions and without current
public information pursuant to Rule 144 and certain other conditions have been satisfied, or (ii) all of the securities have been
sold or otherwise disposed of pursuant to the registration statement of which this prospectus forms a part or in a transaction
in which the transferee receives freely tradable shares.

    	18

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