Document:

Document

Exhibit 10.1

                    Silicon Valley Bank

                         U.S. Small Business Administration 
                         Paycheck Protection Program
                    Note

									
	SBA Loan No.	4932627110	
	SBA Loan Name	Borrower Legal Name	MIRAGEN THERAPEUTICS INC
		DBA	
	Date	4/21/2020	
	Loan Amount	$ 1725585
	
	Interest Rate	1.0% Per Annum	
	Borrower	MIRAGEN THERAPEUTICS INC	
	Operating Company	Not applicable	
	Lender	Silicon Valley Bank	

1.PROMISE TO PAY.

In   return   for   the   Loan,   Borrower   promises   to   pay   to   the   order   of   Lender   the   amount   of
$  1725585      Dollars, interest on the unpaid principal balance,
and all other amounts required by this Note.

2.DEFINITIONS.

“Collateral” means any property taken as security for payment of this Note or any guarantee of this Note. “CARES Act” means the Coronavirus Aid, Relief, and Economic Security Act.
“Guarantor” means each person or entity that signs a guarantee of payment of this Note. “Loan” means the loan evidenced by this Note.
“Loan Documents” means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral.

“Paycheck Protection Program” means loan program created by Section 1102 of the CARES Act.

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“Per Annum” means for a year deemed to be comprised of 360 days.

“SBA” means the Small Business Administration, an Agency of the United States of America.

3.PAYMENT TERMS: Borrower must make all payments at the place Lender designates. The payment terms for this Note are:

A.Conditions Precedent to Disbursement of Loan Proceeds.

Before the funding of the Loan, the following conditions must be satisfied:

1.Lender has approved the request for the Loan.

2.Lender has received approval from SBA to fund the Loan.

B.No Payments During Deferral Period. There shall be no payments due by Borrower during the six-month period beginning on the date of this Note (the “Deferral Period”). However, during the Deferral Period interest will accrue at the Interest Rate on the unpaid principal balance computed on the basis of the actual number of days elapsed in a year of 360 days.

C.Principal and Interest Payments. Commencing one month after the expiration of the Deferral Period, and continuing on the same day of each month thereafter until the Maturity Date, Borrower shall pay to Lender monthly payments of principal and interest, each in such equal amount required to fully amortize the principal amount outstanding on the Note on the last day of the Deferral Period by the Maturity Date.

D.Maturity Date. On the date which is twenty-four (24) months from the date of this Note (the “Maturity Date”), Borrower shall pay to Lender any and all unpaid principal plus accrued and unpaid interest plus interest accrued during the Deferral Period. This Note will mature on the Maturity Date.

E.Not a Business Day. If any payment is due on a date for which there is no numerical equivalent in a particular calendar month then it shall be due on the last day of such month. If any payment is due on a day that is a Saturday, Sunday or any other day on which California chartered banks are authorized to be closed, the payment will be made on the next business day.

F.Payment Allocation. Payments shall be allocated among principal and interest at the discretion of Lender unless otherwise agreed or required by applicable law (including the CARES Act). Notwithstanding, in the event the Loan, or any portion thereof, is forgiven pursuant to the Paycheck Protection Program under the federal CARES Act, the amount so forgiven shall be applied to principal.

F.Prepayments. Borrower may prepay this Note at any time without payment of any penalty or premium.

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G.Borrower Certifications.

Borrower certifies to Lender as follows:

1.Current economic uncertainty makes this Loan necessary to support the ongoing operations of Borrower.

2.Loan funds will be used by Borrower to retain its workers and maintain its payroll or make its mortgage payments, lease payments, and utility payments.

3.For the period beginning on February 15, 2020 and ending on December 31, 2020, Borrower did not receive, and agrees it will not apply for or receive, another loan under the Paycheck Protection Program.

4.Borrower was in operation on February 15, 2020 and (i) had employees for whom it paid salaries and payroll taxes or (ii) paid independent contractors as reported on a 1099-Misc.

5.Borrower has reviewed and understands Sections 1102 and 1106 of the CARES Act and the related guidelines and has completed the Application, including Borrower’s eligibility in conformity with those provisions.

6.Borrower has taken its “affiliates” (as defined by the SBA) into account when determining the number of employees and the total amount of loans permitted under the Paycheck Protection Program.

7.Borrower is a small business concern and is eligible to receive a covered loan.

8.The person who has completed and signed the application, this Note and the Loan Documents has been validly authorized by Borrower to enter into borrowings on behalf of Borrower.

H.Agreements.

Borrower understands and agrees, and waives and releases Lender, its affiliates and their respective directors, officers, agents and employees, as follows:

1.The Loan will be made under the SBA’s Paycheck Protection Program. Accordingly, this Note and the other Loan Documents must be submitted to and approved by the SBA. There is limited funding available under the Paycheck Protection Program and accordingly, all applications submitted will not be approved by the SBA.

2.Lender is participating in the Payroll Protection Program to help businesses impacted by the economic impact from COVID-19. However, Lender anticipates high volumes and there may be processing delays and system failures along with other issues that interfere with submission of Borrower’s application to SBA. Lender does not represent or guarantee that it will submit the application while SBA funding remains available under the Payroll Protection Program or at all. Borrower hereby agrees that Lender is 
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    not responsible or liable to Borrower or any of its affiliates (i) if the Lender does not submit Borrower’s  application  to  the  SBA  until  after  the  date  that  SBA  stops approving applications under the Paycheck Protection Program, for any reason or (ii) if the application is not processed by Lender. Borrower forever releases and waives any claims against Lender, its affiliates and their respective directors, officers, agents and employees concerning failure to obtain the Loan. This release and waiver applies to, but is not limited to, any claims concerning Lender’s (i) pace, manner or systems for processing or prioritizing applications, or (ii) representations by Lender regarding the application process, the Paycheck Protection Program, or availability of funding. This agreement to release and waiver supersedes any prior communications, understandings, agreements or communications on the issues set forth herein.

3.Forgiveness of the Loan is only available for principal that is used for the limited purposes that expressly qualify for forgiveness under SBA requirements, and that to obtain forgiveness, Borrower must request forgiveness from the Lender, provide documentation in accordance with the SBA requirements, and certify that the amounts Borrower is requesting to be forgiven qualify under those requirements. Borrower also understands that Borrower shall remain responsible under the Loan for any amounts not forgiven, and that interest payable under the Loan will not be forgiven, but that the SBA may pay the Loan interest on forgiven amounts.

4.Forgiveness of the Loan is not automatic and Borrower must request forgiveness of the Loan from Lender. Borrower is not relying on Lender for its understanding of the requirements for forgiveness such as eligible expenditures, necessary records/documentation, or possible reductions due to changes in number of employees or compensation. Borrower agrees that will consult the SBA’s program materials and consult with its own counsel regarding the criteria forgiveness.

5.The Loan Documents are subject to review, and Borrower may not receive the Loan. The Loan also remains subject to availability of funds under the SBA’s Payment Protection Program, and to the SBA issuing an SBA loan number.

6.Borrower's liability under this Note will continue with respect to any amounts SBA may pay Bank based on an SBA guarantee of this Note. Any agreement with Bank under which SBA may guarantee this Note does not create any third party rights or benefits for Borrower and, if SBA pays Bank under such an agreement, SBA or Bank may then seek recovery from Borrower of amounts paid by SBA.

7.Lender reserves the right to modify the Note Amount based on documentation received from Borrower.

8.Borrower’s execution of this Note has been duly authorized by all necessary actions of its governing body. The person signing this Note is duly authorized to do so on behalf of Borrower.

9.This Note shall not be governed by any existing or future credit agreement or loan agreement with Lender. The liabilities guaranteed pursuant to any existing or future guaranty in favor of Lender shall not include this Note. The liabilities secured by any existing or future security instrument in favor of Lender shall not include the Loan.

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10.The proceeds of the Loan will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule. Borrower understands that if the funds are knowingly used for unauthorized purposes, the federal government may hold Borrower legally liable, such as for charges of fraud.

Electronic Execution of Loan Documents.

The words “execution,” “signed,” “signature” and words of like import in this Note and any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act.

4.DEFAULT:

Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower or Operating Company:

A.Fails to do anything required by this Note and other Loan Documents;

B.Defaults on any other loan with Lender;

C.Does not preserve, or account to Lender’s satisfaction for, any of the Collateral or its proceeds;

D.Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA;

E.Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA;

F.Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s ability to pay this Note;

G.Fails to pay any taxes when due;

H.Becomes the subject of a proceeding under any bankruptcy or insolvency law;

I.Has a receiver or liquidator appointed for any part of their business or property;

J.Makes an assignment for the benefit of creditors;

K.Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s ability to pay this Note;

L.Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent; or
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M.Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay this Note.

5.LENDER’S RIGHTS IF THERE IS A DEFAULT.

Without notice or demand and without giving up any of its rights, Lender may:

A.Require immediate payment of all amounts owing under this Note;

B.Collect all amounts owing from any Borrower or Guarantor;

C.File suit and obtain judgment.

D.Take possession of any Collateral; or

E.Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement.

6.LENDER’S GENERAL POWERS.

Without notice and without Borrower’s consent, Lender may:

A.Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses;

B.Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney’s fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal balance;

C.Release anyone obligated to pay this Note;

D.Compromise, release, renew, extend or substitute any of the Collateral; and

E.Take any action necessary to protect the Collateral or collect amounts owing on this Note.

7.WHEN FEDERAL LAW APPLIES; GOVERNING LAW; FORUM SELECTION.

When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

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8.SUCCESSORS AND ASSIGNS.

Under this Note, Borrower and Operating Company includes its successors, and Lender includes its successors and assigns.

9.GENERAL PROVISIONS.

A.All individuals and entities signing this Note are jointly and severally liable.

B.Borrower waives all suretyship defenses.

C.Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender’s liens on Collateral.

D.Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them. E. Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

E.If any part of this Note is unenforceable, all other parts remain in effect.

F.To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral at a sale.

10.STATE-SPECIFIC PROVISIONS:

If the SBA is not the holder, this Note shall be governed by and construed in accordance with the laws of the State of California where the main office of Lender is located. MATTERS REGARDING INTEREST TO BE CHARGED BY LENDER AND THE EXPORTATION OF INTEREST SHALL BE GOVERNED BY FEDERAL LAW (INCLUDING WITHOUT LIMITATION 12 U.S.C. SECTIONS 85 AND 1831(u) AND THE LAW OF THE STATE OF
CALIFORNIA. Borrower agrees that any legal action or proceeding with respect to any of its obligations under this Note may be brought by Lender in any state or federal court located in the State of California, as Lender in its sole discretion may elect. Borrower submits to and accepts in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. Borrower waives any claim that the State of California is not a convenient forum or the proper venue for any such suit, action or proceeding. The extension of credit that is the subject of this Note is being made by Lender in California.

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11.BORROWER’S NAME(S) AND SIGNATURE(S).

BORROWER CERTIFIES THAT THE INFORMATION PROVIDED IN THIS APPLICATION AND THE INFORMATION PROVIDED IN ALL SUPPORTING DOCUMENTS AND FORMS IS TRUE AND ACCURATE IN ALL MATERIAL RESPECTS. BORROWER UNDERSTANDS THAT KNOWINGLY MAKING A FALSE STATEMENT TO OBTAIN A GUARANTEED LOAN FROM SBA IS PUNISHABLE UNDER THE LAW, INCLUDING UNDER 18 USC 1001 AND 3571 BY IMPRISONMENT OF NOT MORE THAN FIVE YEARS AND/OR A FINE OF UP TO $250,000;   UNDER 15 USC 645 BY IMPRISONMENT OF NOT MORE THAN TWO YEARS AND/OR A FINE OF NOT MORE   THAN $5,000; AND, IF SUBMITTED TO A FEDERALLY INSURED INSTITUTION, UNDER 18 USC 1014 BY IMPRISONMENT OF NOT MORE THAN THIRTY YEARS AND/OR A FINE OF NOT MORE THAN $1,000,000.

By signing below, each individual or entity becomes obligated under this Note as Borrower.

												
		BORROWER:		
				
		By:	/s/ Jason Leverone	
				
		Name:	Jason Leverone	
				
		Title:	Authorized Signer	
				
		Date:	4/21/2020	
				

8Exhibit 10.1

 

COMMON
STOCK PURCHASE AGREEMENT

 

COMMON
STOCK PURCHASE AGREEMENT (the “Agreement”), dated as of April 27, 2020 by and between SORRENTO
THERAPEUTICS, INC., a Delaware corporation (the “Company”), and Arnaki Ltd., a British Virgin Islands
corporation (including its successors and assigns, the “Purchaser”).  Capitalized terms used herein and
not otherwise defined herein are defined in Section 10 hereof.

 

WHEREAS:

 

Subject to
the terms and conditions set forth in this Agreement, the Company wishes to sell to the Purchaser, and the Purchaser wishes to
buy from the Company, up to Two Hundred and Fifty Million Dollars ($250,000,000) of the Company’s common stock, par value
$0.0001 per share (the “Common Stock” or “Securities”).  The shares of Common Stock
to be purchased hereunder are referred to herein as the “Purchase Shares.”

 

NOW THEREFORE,
the Company and the Purchaser hereby agree as follows:

 

1.                                   PURCHASE
OF COMMON STOCK.

 

Subject to
the terms and conditions set forth in this Agreement, the Company has the right to sell to the Purchaser, and the Purchaser has
the obligation to purchase from the Company, Purchase Shares as follows:

 

(a)                                 Commencement
of Purchases of Common Stock.  Any time after Commencement (as defined below), the purchase and sale of Purchase Shares
hereunder may occur from time to time upon written notices by the Company to the Purchaser on the terms and conditions as set
forth herein following the satisfaction of the conditions (the “Commencement”) as set forth in Sections 6 and
7 below (the date of satisfaction of such conditions, the “Commencement Date”).

 

(b)                                 Fixed
and Optional Purchases.  Subject to the terms and conditions of this Agreement, on any given Business Day from
and after the Commencement Date and during the Facility Term, the Company
shall have the right but not the obligation to (i) direct the Purchaser by its delivery to the Purchaser of a Purchase Notice,
substantially in the form attached hereto as Exhibit A, from time to
time, and the Purchaser thereupon shall have the obligation, subject to Section 1(d), to buy the number of Purchase Shares specified
in such notice, up to 650,000 Purchase Shares on such Business Day (the “Fixed Request Amount”), and/or (ii)
at the Company’s sole discretion, grant the Purchaser an option to buy an additional amount of shares (the “Optional
Purchase,” collectively with the Fixed Request Amount, a “Regular Purchase”) at the Purchase Price
per Purchase Share on the Purchase Date. The Company and the Purchaser may mutually agree to increase the number of Purchase Shares
for the Fixed Request Amount to as much as an additional 3,600,000 Purchase Shares on a Purchase Date.  In
consideration of and in express reliance upon the representations, warranties and covenants, and otherwise upon the terms and
subject to the conditions, of this Agreement, from and after the Commencement Date and
during the Facility Term (i) the Company shall issue and sell to the Purchaser, and the Purchaser agrees to purchase from the
Company, the Purchase Shares in respect of each Fixed Request Amount and (ii) the Purchaser may in its discretion elect to purchase
Purchase Shares in respect of each Optional Purchase.  The issuance and sale of Purchase Shares to the Purchaser pursuant
to any Fixed Request Amount or Optional Purchase shall occur on the applicable Settlement Date in accordance with Section 1(i),
provided that all of the conditions precedent thereto set forth in Section 7 theretofore shall have been fulfilled or (to the
extent permitted by applicable law) waived.

 

The share
amounts in this Section 1(b) shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend,
stock split, reverse stock split or other similar transaction.

 

(c)                                 Payment
for Purchase Shares.  For each Regular Purchase, the Purchaser shall pay to the Company an amount equal to the Purchase
Amount as full payment for such Purchase Shares via wire transfer of immediately available funds on the same Business Day that
the Purchaser receives such Purchase Shares.  All payments made under this Agreement shall be made in lawful money of the
United States of America via wire transfer of immediately available funds to such account as the Company may from time to time
designate by written notice in accordance with the provisions of this Agreement.  Whenever any amount expressed to be due
by the terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next succeeding
day that is a Business Day.

 

     

     

    

 

(d)                                  Purchase
Price Floor.  The Purchaser shall have the right but not the obligation to purchase any Purchase Shares at the Floor
Price on any Purchase Date where either (i) the VWAP is less than the Floor Price or (ii) the Purchase Price is less than the
Floor Price. “Floor Price” means $1.10 per share of Common Stock, which shall not be adjusted for any reorganization,
recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction. If
trading in the Common Stock on the Principal Market is suspended for any reason for more than three (3) hours on the applicable
Purchase Date (which, for the avoidance of doubt, shall not include any reduced trading hours scheduled in advance by the Principal
Market, such as days surrounding or including holidays where the Principal Market closes at 1:00 PM Eastern Time), the Purchaser
may, at its option, purchase any Purchase Shares on such Purchase Date at a price
per Purchase Share that is equal to the greater of (i) the Purchase Price on such Purchase Date and (ii) the Floor Price.
For each Purchase Date that has reduced trading hours scheduled in advance by the Principal Market, the total amount of the Fixed
Request Amount shall be reduced proportionally (for example, on the days surrounding or including holidays where the Principal
Market closes at 1:00 PM Eastern Time, the total amount of the Fixed Request Amount shall be reduced by 40%).  

 

(e)                                   Records
of Purchases.  The Purchaser and the Company shall each maintain records showing the remaining Available Amount at any
given time and the dates and Purchase Amounts for each purchase, or shall use such other method reasonably satisfactory to the
Purchaser and the Company to reconcile the remaining Available Amount.

 

(f)                                  Taxes. 
The Company shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the issuance and delivery
of any shares of Common Stock to the Purchaser made under this Agreement.

 

(g)                                 Compliance
with Principal Market Rules.  Notwithstanding anything in this Agreement to the contrary, and in addition to the limitations
set forth in Section 1(h), the total number of shares of Common Stock that may be issued under this Agreement shall be limited
to 41,917,130 shares of Common Stock (the “Exchange Cap”), which equals 19.99% of the Company’s outstanding
shares of Common Stock as of the date hereof, unless stockholder approval is obtained to issue more than such 19.99%.  The
Exchange Cap shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse
stock split or other similar transaction.  The foregoing limitation shall not apply if stockholder approval has not been
obtained and at any time the Exchange Cap is reached and at all times thereafter the average price paid for all shares of Common
Stock issued under this Agreement is equal to or greater than $2.37 (the “Minimum Price”), a price equal to
the lower of (1) the Closing Sale Price immediately preceding the execution of this Agreement or (2) the arithmetic
average of the five (5) Closing Sale Prices for the Common Stock immediately preceding the execution of this Agreement (in
such circumstance, for purposes of the Principal Market, the transaction contemplated hereby would not be “below market”
and the Exchange Cap would not apply). The Minimum Price shall be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction.  Notwithstanding the foregoing, the Company
shall not be required or permitted to issue, and the Purchaser shall not be required to purchase, any shares of Common Stock under
this Agreement if such issuance would breach the Company’s obligations under the rules or regulations of the Principal
Market.  The Company may, in its sole discretion, determine whether to obtain stockholder approval to issue more than 19.99%
of its outstanding shares of Common Stock hereunder if such issuance would require stockholder approval under the rules or
regulations of the Principal Market.

 

(h)                                     Beneficial
Ownership Limitation. The Company shall not issue, and the Purchaser shall not purchase any shares of Common Stock under this
Agreement, if such shares proposed to be issued and sold, when aggregated with all other shares of Common Stock then owned beneficially
(as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”)
and Rule 13d-3 promulgated thereunder) by the Purchaser and its affiliates would result in the beneficial ownership by the
Purchaser and its affiliates of more than 4.99% of the then issued and outstanding shares of Common Stock.

 

(i)                                     Settlement.
The Purchaser shall deliver to the Company, via facsimile transmission or e-mail in accordance
with this Section 1(i), not later than 8:00 p.m. (New York time) on the Purchase Date, a Purchaser Confirmation, substantially
in the form attached hereto as Exhibit B (the “Purchaser Confirmation”), which shall specify
(i) the total Fixed Request Amount to be purchased by the Purchaser on the applicable Settlement Date, (ii) the Purchase Price
at which the Purchaser will purchase the Purchase Shares pursuant to the Purchase Notice, (iii) the total number of Purchase Shares,
if any, to be purchased by the Purchaser in respect of the applicable Fixed Request Amount, and (iv) the total amount of the Optional
Purchase, if applicable, to be purchased by the Purchaser on the applicable Settlement Date. The payment for, against subsequent
delivery of, Purchase Shares in respect of each Regular Purchase shall be settled on the second Business Day next following the
Purchase Date, or on such earlier date as the parties may mutually agree (the “Settlement Date”).  On
each Settlement Date, the Company shall, or shall cause its transfer agent to, electronically transfer the Purchase Shares purchased
by the Purchaser by crediting the Purchaser’s or its designee(s) account at DTC through its Deposit/Withdrawal at Custodian
(DWAC) system, which Purchase Shares shall be freely tradable and transferable and without restriction on resale, against simultaneous
payment therefor to the Company’s designated account by wire transfer of immediately available funds. 

 

     

     

    

 

(j)                                     Failure
to Deliver. If the Company issues a Purchase Notice and fails to deliver the Purchase
Shares to the Purchaser on the applicable Settlement Date, subject to simultaneous payment, and such failure continues for five
(5) Business Days, the Company shall pay the Purchaser, in cash (or, at the option of the Purchaser, in shares of Common Stock
valued at the applicable Purchase Price of the Purchase Shares failed to be delivered; provided that the issuance thereof by the
Company would not violate the Securities Act or any applicable U.S. federal or state securities laws), as partial damages for
such failure and not as a penalty, an amount equal to 2.0% of the payment required to be paid by the Purchaser on such Settlement
Date (i.e., the sum of the Fixed Request Amount and the Optional Purchase) for the initial thirty (30) days following such Settlement
Date until the Purchase Shares have been delivered, and an additional 2.0% for each additional 30-day period thereafter until
the Purchase Shares have been delivered, which amount shall be prorated for such periods less than thirty (30) days. Nothing in
this Section 1(j) shall be deemed to release the Company from any liability for any breach under this Agreement, or to impair
the rights of the Purchaser to compel specific performance by the Company of its obligations under this Agreement. 

 

(k)                                     Purchase
Notice. Upon the terms and subject to the conditions of this Agreement, the Purchaser is obligated to accept each Purchase
Notice prepared and delivered in accordance with the provisions of this Agreement. A valid
Purchase Notice must be delivered on or before 2:00 p.m. (New York time) on the Purchase Date specified in the Purchase Notice; provided, however,
that with respect to the Purchase Notice received after 9:30 a.m. (New York time) but on or before 2:00 p.m. (New York time) (the
 “Intraday Notice”), the total amount of the Fixed Request Amount shall
be reduced proportionally by 1/13th for each half-hour between 9:30 a.m. (New York time) and
the time at which the Purchase Notice is delivered (for example, if the Intraday Notice is received by the Purchaser at 11:00
a.m. (New York time), the total amount of the Fixed Request Amount shall be reduced
by 3/13 or 150,000 shares).

 

For
the avoidance of doubt, all calculations with respect to the timing of the Intraday Notice shall be rounded up to the nearest
half-hour (for example, 12:10 p.m. (New York time) would
be rounded to 12:30 p.m. (New York time)). All calculations with respect to Purchase
Price of the Intraday Notice shall be based on the intraday VWAP commencing from one minute after the timestamp on the Purchaser’s
receipt of an e-mail (or any equivalent means of communication mutually agreed by the Purchaser and the Company) that contains
a Purchase Notice, or such other time mutually agreed by the Purchaser and the Company, until 4:00 p.m. (New York time).

 

If the Company
delivers the Purchase Notice to the Purchaser later than 2:00 p.m. (New York time) on a Purchase Date, then the Purchase Date
shall not be the Business Day on which the Purchaser received such Purchase Notice, but rather shall be the next Business Day
(unless a subsequent Business Day is therein specified).

 

2.                                      PURCHASER’S
REPRESENTATIONS AND WARRANTIES.

 

The Purchaser
represents and warrants to the Company that as of the date hereof and as of the Commencement Date:

 

     

     

    

 

(a)                                Organization.
The Purchaser is a company duly organized, validly existing and in good standing under the laws of the British Virgin Islands,
and has the requisite organizational power and authority to own its properties and to carry on its business as now being conducted.

 

(b)                                 Accredited
Investor Status.  The Purchaser is an “accredited investor” as that term is defined in Rule 501(a)(3) of
Regulation D of the 1933 Act.

  

(c)                                 Information. 
The Purchaser has been furnished with all materials relating to the business, finances and operations of the Company and materials
relating to the offer and sale of the Securities that have been reasonably requested by the Purchaser, including, without limitation,
the SEC Documents (as defined in Section 3(f) hereof).  The Purchaser understands that its investment in the Securities
involves a high degree of risk.  The Purchaser (i) is able to bear the economic risk of an investment in the Securities
including a total loss, (ii) has such knowledge and experience in financial and business matters that it is capable of evaluating
the merits and risks of the proposed investment in the Securities and (iii) has had an opportunity to ask questions of and
receive answers from the officers of the Company concerning the financial condition and business of the Company and other matters
related to an investment in the Securities.  Neither such inquiries nor any other due diligence investigations conducted
by the Purchaser or its representatives shall modify, amend or affect the Purchaser’s right to rely on the Company’s
representations and warranties contained in Section 3 below.  The Purchaser has sought such accounting, legal and tax
advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

 

(d)                                  No
Governmental Review.  The Purchaser understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability
of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

  

(e)                                  [Intentionally
Omitted.];

 

(f)                                 Validity;
Enforcement.  This Agreement has been duly and validly authorized, executed and delivered on behalf of the Purchaser
and is a valid and binding agreement of the Purchaser enforceable against the Purchaser in accordance with its terms, subject
as to enforceability to (i) general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies and (ii) public policy underlying any law, rule or regulation (including any federal or state securities
law, rule or regulation) with regards to indemnification, contribution or exculpation. The execution and delivery of the
Transaction Documents (as defined in Section 3(b) hereof) by the Purchaser and the consummation by it of the transactions
contemplated hereby and thereby do not conflict with the Purchaser’s certificate of organization or operating agreement
or similar documents, and do not require further consent or authorization by the Purchaser, its managers or its members.

 

(g)                                No
Short Selling. The Purchaser represents and warrants to the Company that at no time during the course of the 6-month period
prior to the date hereof has any of the Purchaser, its agents, representatives or affiliates engaged in or effected, in any manner
whatsoever, directly or indirectly, any (i) “short sale” (as such term is defined in Section 242.200 of
Regulation SHO of the 1934 Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position with
respect to the Common Stock.

  

3.                                      REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The Company
represents and warrants to the Purchaser that as of the date hereof and as of the Commencement Date:

 

(a)                                 Organization
and Qualification.  The Company and its “Subsidiaries” (which for purposes of this Agreement means any entity
in which the Company, directly or indirectly, owns more than 50% of the voting stock or capital stock or other similar equity
interests) are corporations or limited liability companies duly organized and validly existing in good standing under the laws
of the jurisdiction in which they are incorporated or organized (if a good standing concept exists in such jurisdiction), and
have the requisite corporate or organizational power and authority to own their properties and to carry on their business as now
being conducted.  Each of the Company and its Subsidiaries is duly qualified as a foreign corporation or limited liability
company to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business
conducted by it makes such qualification necessary (if a good standing concept exists in such jurisdiction), except to the extent
that the failure to be so qualified or be in good standing could not reasonably be expected to have a Material Adverse Effect. 
As used in this Agreement, “Material Adverse Effect” means any material adverse effect on any of: (i) the business,
properties, assets, operations, results of operations or financial condition of the Company and its Subsidiaries, if any, taken
as a whole, or (ii) the authority or ability of the Company to perform its obligations under the Transaction Documents. 
All of the direct and indirect subsidiaries of the Company that constitute significant subsidiaries within the meaning of Item
601(b)(21)(ii) of Regulation S-K are set forth on Schedule 3(a).

 

     

     

    

 

(b)                                 Authorization;
Enforcement; Validity.  (i) The Company has the requisite corporate power and authority to enter into and perform
its obligations under this Agreement and each of the other agreements entered into by the parties on the Commencement Date and
attached hereto as exhibits to this Agreement (collectively, the “Transaction Documents”), and to issue the
Securities in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents
by the Company and the consummation by it of the transactions contemplated hereby and thereby and the reservation for issuance
and the issuance of the Purchase Shares issuable under this Agreement, have been duly authorized by the Company’s Board
of Directors or duly authorized committee thereof, do not conflict with the Company’s Certificate of Incorporation or Bylaws
(as defined below), and do not require further consent or authorization by the Company, its Board of Directors, except as set
forth in this Agreement, or its stockholders (other than as contemplated by Section 1(g) hereof), (iii) this Agreement
has been, and each other Transaction Document shall be on the Commencement Date, duly executed and delivered by the Company and
(iv) this Agreement constitutes, and each other Transaction Document upon its execution on behalf of the Company, shall constitute,
the valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except as such
enforceability may be limited by (y) general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies and (z) public
policy underlying any law, rule or regulation (including any federal or state securities law, rule or regulation) with
regards to indemnification, contribution or exculpation.  The Board of Directors of the Company or duly authorized committee
thereof has approved the resolutions (the “Signing Resolutions”) to authorize this Agreement and the transactions
contemplated hereby.  The Signing Resolutions are valid, in full force and effect and have not been modified or supplemented
in any material respect.  The Company has delivered to the Purchaser a true and correct copy of the Signing Resolutions as
approved by the Board of Directors of the Company or an appropriate Board committee.

 

(c)                                  Capitalization. 
As of the date hereof, the authorized capital stock of the Company consists of (i) 750,000,000 shares of Common Stock, par value
$0.0001, of which as of the date hereof, 209,690,497 shares are issued and outstanding, 7,568,182 shares are held as treasury
shares, 20,313,363 shares are reserved for future issuance pursuant to the Company’s equity incentive plans, of which approximately
7,014,700 shares remain available for future option grants or stock awards, and 46,817,092 shares are issuable and reserved for
issuance pursuant to securities (other than stock options or equity-based awards issued pursuant to the Company’s stock
incentive plans) exercisable or exchangeable for, or convertible into, shares of Common Stock, and (ii) 100,000,000 shares of
preferred stock, of which as of the date hereof no shares are issued and outstanding.  All of such outstanding shares have
been, or upon issuance will be, validly issued and are fully paid and non-assessable.  Except as disclosed in Schedule 3(c),
(i) no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens
or encumbrances suffered or permitted by the Company, (ii) there are no outstanding debt securities of the Company or any
of its Subsidiaries, (iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company
or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries
is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, any shares of capital stock of the Company or any of its Subsidiaries, (iv) there are no material agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933
Act, (v) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption
or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of
its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries, (vi) there are no
securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities
as described in this Agreement and (vii) the Company does not have any stock appreciation rights or “phantom stock”
plans or agreements or any similar plan or agreement.  The Company has furnished or made available to the Purchaser true
and correct copies of the Company’s Amended and Restated Certificate of Incorporation, as amended and as in effect on the
date hereof (the “Certificate of Incorporation”), and the Company’s Amended and Restated Bylaws, as amended
and as in effect on the date hereof (the “Bylaws”).

 

     

     

    

 

(d)                                 Issuance
of Securities.  Upon issuance and payment therefore in accordance with the terms and conditions of this Agreement, the
Purchase Shares shall be validly issued, fully paid and non-assessable and free from all taxes, liens and charges with respect
to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock.

 

(e)                                  No
Conflicts.  Except as disclosed in Schedule 3(e), the execution, delivery and performance of the Transaction Documents
by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation,
the reservation for issuance and issuance of the Purchase Shares) will not (i) result in a violation of the Certificate of
Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company
or the Bylaws or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would
become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its Subsidiaries is a party, or result, to the Company’s knowledge,
in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations
and the rules and regulations of the Principal Market applicable to the Company or any of its Subsidiaries) or by which any
property or asset of the Company or any of its Subsidiaries is bound or affected, except in the case of conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations under clause (ii), which could not reasonably be expected to result in
a Material Adverse Effect.  Except as disclosed in Schedule 3(e), neither the Company nor its Subsidiaries is in violation
of any term of or in default under its Certificate of Incorporation, any Certificate of Designation, Preferences and Rights of
any outstanding series of preferred stock of the Company or Bylaws or their organizational charter or bylaws, respectively. 
Except as disclosed in Schedule 3(e), neither the Company nor any of its Subsidiaries is in violation of any term of or is in
default under any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any
statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible violations, defaults, terminations
or amendments that would not reasonably be expected to have a Material Adverse Effect.  The business of the Company and its
Subsidiaries is not being conducted, and shall not be conducted, in violation of any law, ordinance, or regulation of any governmental
entity, except for possible violations, the sanctions for which either individually or in the aggregate could not reasonably be
expected to have a Material Adverse Effect.  Except as specifically contemplated by this Agreement, reporting obligations
under the 1934 Act, or as required under the 1933 Act or applicable state securities laws or the filing of a Listing of Additional
Shares Notification Form with the Principal Market, the Company is not required to obtain any consent, authorization or order
of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory agency in order
for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents in accordance
with the terms hereof or thereof.  Except as disclosed in Schedule 3(e) and for reporting obligations under the 1934
Act, all consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding
sentence shall be obtained or effected on or prior to the Commencement Date.  Except as disclosed in Schedule 3(e), the Company
is not subject to any notices or actions from or to the Principal Market other than routine matters incident to listing on the
Principal Market and not involving a violation of the rules of the Principal Market.  Except as disclosed in Schedule
3(e), to the Company’s knowledge, the Principal Market has not commenced any delisting proceedings against the Company.

 

(f)                                   SEC
Documents; Financial Statements. Except as disclosed in Schedule 3(f), since December 31, 2019, the Company has filed all
reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements
of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements
and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”). 
As of their respective dates (except as they have been correctly amended), the SEC Documents complied in all material respects
with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC
Documents, and none of the SEC Documents, at the time they were filed with the SEC (except as they may have been properly amended),
contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  As of
their respective dates (except as they have been properly amended), the financial statements of the Company included in the SEC
Documents complied as to form in all material respects with applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto.  Such financial statements have been prepared in accordance with generally accepted
accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such
financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the
Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case
of unaudited statements, to normal year-end audit adjustments).  Except as disclosed in Schedule 3(f) or routine correspondence,
such as comment letters and notices of effectiveness in connection with previously filed registration statements or periodic reports
publicly available on EDGAR, to the Company’s knowledge, the Company or any of its Subsidiaries are not on the date hereof
the subject of any inquiry, investigation or action by the SEC.

 

     

     

    

 

(g)                                    Absence
of Certain Changes.  Except as disclosed in Schedule 3(g), since December 31, 2019, there has been no material adverse
change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries
taken as a whole.  For purposes of this Agreement, neither a decrease in cash or cash equivalents or in the market price
of the Common Stock nor losses incurred in the ordinary course of the Company’s business shall be deemed or considered a
material adverse change.  The Company has not taken any steps, and does not currently expect to take any steps, to seek protection
pursuant to any Bankruptcy Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its
creditors intend to initiate involuntary bankruptcy or insolvency proceedings.  The Company is financially solvent and is
generally able to pay its debts as they become due.

 

(h)                                    Absence
of Litigation. Except as disclosed in Schedule 3(h), to the Company’s knowledge, there is no action, suit, proceeding,
inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the Company or any of its Subsidiaries, threatened against the Company, the Common Stock or any of the
Company’s Subsidiaries or any of the Company’s or the Company’s Subsidiaries’ officers or directors in
their capacities as such, which could reasonably be expected to have a Material Adverse Effect (each, an “Action”). 
A description of each such Action, if any, is set forth in Schedule 3(h).

 

(i)                                     Acknowledgment
Regarding Purchaser’s Status.  The Company acknowledges and agrees that the Purchaser is acting solely in the capacity
of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. 
The Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any
similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice
given by the Purchaser or any of its representatives or agents in connection with the Transaction Documents and the transactions
contemplated hereby and thereby is merely incidental to the Purchaser’s purchase of the Securities.  The Company further
represents to the Purchaser that the Company’s decision to enter into the Transaction Documents has been based solely on
the independent evaluation by the Company and its representatives and advisors.

 

(j)                                     Intellectual
Property Rights.  To the Company’s knowledge, the Company and its Subsidiaries own or possess adequate rights or
licenses to use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property
rights (collectively, “Intellectual Property”) necessary to conduct their respective businesses as now conducted,
except as set forth in Schedule 3(j) or to the extent that the failure to own, possess, license or otherwise hold adequate
rights to use Intellectual Property would not, individually or in the aggregate, have a Material Adverse Effect.  Except
as disclosed in Schedule 3(j), to the Company’s knowledge, none of the Company’s active and registered Intellectual
Property have expired or terminated, or, by the terms and conditions thereof, will expire or terminate within two years from the
date of this Agreement, except as would not reasonably be expected to have a Material Adverse Effect.  The Company and its
Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of any Intellectual Property of
others and, except as set forth on Schedule 3(j), there is no claim, action or proceeding being made or brought against, or to
the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding Intellectual Property, which
could reasonably be expected to have a Material Adverse Effect.

 

     

     

    

 

(k)                                     Environmental
Laws.  To the Company’s knowledge, the Company and its Subsidiaries (i) are in material compliance with any
and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety
or the environment and with respect to hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental
Laws”), (ii) have received all material permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses and (iii) are in material compliance with all terms and conditions
of any such permit, license or approval, except where, in each of the three foregoing clauses, the failure to so comply or receive
such approvals could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(l)                                     Title. 
The Company and its Subsidiaries have good and marketable title to all personal property owned by them that is material to the
business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as
are described in Schedule 3(l) or such as do not materially affect the value of such property and do not interfere with the
use made and proposed to be made of such property by the Company and any of its Subsidiaries or could not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect.  Any real property and facilities held under lease
by the Company and any of its Subsidiaries, to the Company’s knowledge, are held by them under valid, subsisting and enforceable
leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property
and buildings by the Company and its Subsidiaries.

 

(m)                                    Insurance. 
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be reasonable and customary in the businesses in which the
Company and its Subsidiaries are engaged.  To the Company’s knowledge, since January 1, 2019, neither the Company
nor any such Subsidiary has been refused any insurance coverage sought or applied for and neither the Company nor any such Subsidiary,
to the Company’s knowledge, will be unable to renew its existing insurance coverage as and when such coverage expires or
to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not reasonably
be expected to have a Material Adverse Effect.

 

(n)                                    Regulatory
Permits.  The Company and its Subsidiaries possess all material certificates, authorizations and permits issued by the
appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses as currently conducted,
except when the failure to so possess such certificates, authorizations or permits could not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any written notice
of proceedings relating to the revocation or modification of any such material certificate, authorization or permit.

 

(o)                                    Tax
Status.  The Company and each of its Subsidiaries has made or filed all federal and state income and all other material
tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that
the Company and each of its Subsidiaries has set aside on its books reserves reasonably adequate for the payment of all unpaid
and unreported taxes or filed valid extensions) and has paid all taxes and other governmental assessments and charges that are
material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good
faith and has set aside on its books reserves reasonably adequate for the payment of all taxes for periods subsequent to the periods
to which such returns, reports or declarations apply.  To the Company’s knowledge, there are no unpaid taxes in any
material amount claimed to be due by the taxing authority of any jurisdiction.

 

(p)                                    Transactions
With Affiliates.  Except as set forth on Schedule 3(p), and other than (i) the grant or exercise of stock options
or any other equity securities offered pursuant to duly adopted stock or incentive compensation plans as disclosed on Schedule
3(c) and (ii) employment or indemnification agreements approved by the Board of Directors of the Company, none of the
officers, directors or employees of the Company is on the date hereof a party to any transaction with the Company or any of its
Subsidiaries (other than for services as employees, officers and directors and reimbursement for expenses incurred on behalf of
the Company), 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 knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any
such employee has a material interest or is an officer, director, trustee or general partner.

 

     

     

    

 

(q)                                    Application
of Takeover Protections.  The Company and its board of directors have taken or will take prior to the Commencement Date
all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation
or the laws of the state of its incorporation, other than Section 203 of the General Corporation Law of the State of Delaware,
which is or could become applicable to the Purchaser as a result of the transactions contemplated by this Agreement, including,
without limitation, the Company’s issuance of the Securities and the Purchaser’s ownership of the Securities.

 

(r)                                     Registration
Statement.  The Shelf Registration Statement (as defined in Section 4(a) hereof) has been declared effective
by the SEC, and no stop order has been issued or is pending or, to the knowledge of the Company, threatened by the SEC with respect
thereto.  As of the date hereof, the Company has a dollar amount of securities registered and unsold under the Shelf Registration
Statement, which is not less than the Available Amount.

 

4.                                      COVENANTS.

 

(a)                                     Filing
of Form 8-K and Prospectus Supplement.  The Company agrees that it shall, within the time required under the 1934
Act, file a Current Report on Form 8-K disclosing this Agreement and the transaction contemplated hereby (the “Form
8-K”). The Company shall use its reasonable best efforts to keep the existing shelf registration statement on Form S-3
(File No. 333-237142) (the “Shelf Registration Statement”) effective pursuant to Rule 415 promulgated
under the 1933 Act and available for sales of all Securities to the Purchaser until such time as (i) it no longer qualifies
to make sales under the Shelf Registration Statement (which shall be understood to include the inability of the Company to immediately
effectuate sales of Securities to the Purchaser under the Shelf Registration Statement pursuant to General Instruction I.B.1 of
Form S-3), (ii) the date on which all the Securities have been sold under this Agreement and no Available Amount remains
thereunder, or (iii) this Agreement has been terminated.  The Shelf Registration Statement (including any amendments
or supplements thereto and prospectuses or prospectus supplements contained therein) shall not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in
light of the circumstances in which they were made, not misleading

 

(b)                                     Blue
Sky. The Company shall take such action, if any, as is reasonably necessary in order to obtain an exemption for or to qualify
(i) the initial sale of the Securities to the Purchaser under this Agreement and (ii) any subsequent sale of the Securities
by the Purchaser, in each case, under applicable securities or “Blue Sky” laws of the states of the United States
in such states as is reasonably requested by the Purchaser from time to time, and shall provide evidence of any such action so
taken to the Purchaser at its written request; provided, however, that the Company shall not be obligated to
file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction
in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it
is not otherwise so subject.

 

(c)                                     Listing. 
The Company shall promptly secure the listing of all of the Securities upon each national securities exchange and automated quotation
system that requires an application by the Company for listing, if any, upon which shares of Common Stock are then listed (subject
to official notice of issuance) and shall maintain such listing, so long as any other shares of Common Stock shall be so listed. 
The Company shall use its reasonable best efforts to maintain the Common Stock’s listing on the Principal Market. 
Neither the Company nor any of its Subsidiaries shall take any action that would be reasonably expected to result in the delisting
or suspension of the Common Stock on the Principal Market, unless the Common Stock is immediately thereafter traded on the New
York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market. 
The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section.

  

(d)                                    Due
Diligence.  The Purchaser shall have the right, from time to time as the Purchaser may reasonably request, to perform
reasonable due diligence on the Company during normal business hours and subject to reasonable prior notice to the Company. 
The Company and its officers and employees shall provide information and reasonably cooperate with the Purchaser in connection
with any reasonable request by the Purchaser related to the Purchaser’s due diligence of the Company, including, but not
limited to, any such request made by the Purchaser in connection with the Commencement; provided, however, that at no time is
the Company required to disclose material nonpublic information to the Purchaser or breach any obligation of confidentiality or
non-disclosure to a third party or make any disclosure that could cause a waiver of attorney-client privilege.  Except as
may be required by law, court order or governmental authority, each party hereto agrees not to disclose any Confidential Information
of the other party to any third party and shall not use the Confidential Information of such other party for any purpose other
than in connection with, or in furtherance of, the transactions contemplated hereby; provided, that to the extent such disclosure
is required by law, court order or governmental authority, the receiving party shall provide the disclosing party with reasonable
prior written notice of such disclosure and make a reasonable effort to assist the disclosing party in obtaining a protective
order preventing or limiting the disclosure and/or requiring that the Confidential Information so disclosed be used only for the
purposes for which the law, court order or governmental authority requires.  Each party hereto acknowledges that the Confidential
Information shall remain the property of the disclosing party and agrees that it shall take all reasonable measures to protect
the secrecy of any Confidential Information disclosed by the other party.

 

     

     

    

 

(e)                                     Selling
Restrictions.  (i)  Except as expressly set forth below, the Purchaser covenants that from and after the date hereof
through and including the termination of this Agreement (the “Restricted Period”), neither the Purchaser nor
any of its affiliates nor any entity managed or controlled by the Purchaser (collectively, the “Restricted Persons”
and each of the foregoing is referred to herein as a “Restricted Person”) shall, directly or indirectly, (x)
engage in any Short Sales (as defined in Rule 200 promulgated under Regulation SHO under
the Exchange Act) involving the Company’s securities or (y) grant any option to purchase, or acquire any right to
dispose of or otherwise dispose for value of, any shares of Common Stock or any securities convertible into or exercisable or
exchangeable for any shares of Common Stock, or enter into any swap, hedge or other similar agreement that transfers, in whole
or in part, the economic risk of ownership of the Common Stock or establishes a net short position with respect to the Common
Stock. Notwithstanding the foregoing, it is expressly understood and agreed that nothing contained herein shall (without implication
that the contrary would otherwise be true) prohibit any Restricted Person during the Restricted Period from:  (1) selling
 “long” (as defined under Rule 200 promulgated under Regulation SHO) any shares of Common Stock; or (2) selling a number
of shares of Common Stock equal to (x) the number of shares of Common Stock that such Restricted Person is or may be obligated
to purchase under a pending Fixed Request Amount and/or (y) the number of shares of Common Stock that such Restricted Person may
purchase under a pending Optional Purchase, but, in each case, has not yet taken possession of so long as such Restricted Person
(or a broker-dealer of such Restricted Person, as applicable) delivers the Purchase Shares purchased pursuant to such Fixed Request
Amount and/or Optional Purchase to the purchaser thereof or the applicable broker-dealer; provided, however,
such Restricted Person (or the applicable broker-dealer, as applicable) shall not be required to so deliver any such shares of
Common Stock subject to such Fixed Request Amount or Optional Purchase, as the case may be, if (a) such Fixed Request Amount or
Optional Purchase, as the case may be, is terminated by mutual agreement of the Company and the Purchaser and, as a result of
such termination, no such shares of Common Stock are delivered to the Purchaser under this Agreement or (b) the Company otherwise
fails to deliver such shares of Common Stock to the Purchaser on the applicable Settlement Date upon the terms and subject to
the provisions of this Agreement.

 

(ii) In
addition to the foregoing, in connection with any sale of Securities (including any sale permitted by Section 4(e)(i) above),
the Purchaser shall comply in all respects with all applicable laws, rules, regulations and orders, including, without limitation,
the requirements of the Securities Act and the Exchange Act.

  

5.                                      TRANSFER
AGENT INSTRUCTIONS.

 

All of the
Purchase Shares to be issued under this Agreement shall be issued without any restrictive legend unless the Purchaser expressly
consents otherwise.  The Company shall issue irrevocable instructions to the Transfer Agent, and any subsequent transfer
agent, to issue Common Stock in the name of the Purchaser for the Purchase Shares (the “Irrevocable Transfer Agent Instructions”). 
The Company warrants to the Purchaser that no instruction other than the Irrevocable Transfer Agent Instructions referred to in
this Section 5, will be given by the Company to the Transfer Agent with respect to the Purchase Shares and that the Purchase
Shares shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement.

 

     

     

    

 

6.                                      CONDITIONS
TO THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK UNDER THIS AGREEMENT.

 

The right
of the Company hereunder to commence sales of the Purchase Shares is subject to the satisfaction of each of the following conditions
on or before the Commencement Date (the date that the Company may begin sales of Purchase Shares):

 

(a)                                 The
Purchaser shall have executed each of the Transaction Documents and delivered the same to the Company;

 

(b)                                 The
representations and warranties of the Purchaser shall be true and correct as of the Commencement Date as though made at that time
(except for representations and warranties that speak as of a specific date, which shall be true and correct in all material respects
as of such specific date) and the Purchaser shall have performed, satisfied and complied in all material respects with the covenants
and agreements required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to the Commencement
Date; and

 

(c)                                  The
prospectus supplement covering the sale of the Purchase Shares to the Purchaser pursuant
to this Agreement (the “Prospectus Supplement”) shall have been delivered to the Purchaser and no stop
order with respect to the registration statement covering the sale of shares to the Purchaser shall be pending or threatened by
the SEC.

 

7.                                      CONDITIONS
TO THE PURCHASER’S OBLIGATION TO MAKE PURCHASES OF SHARES OF COMMON STOCK.

 

The obligation
of the Purchaser to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following conditions
on or before the Commencement Date (the date that the Company may begin sales of Purchase Shares) and once such conditions have
been initially satisfied, there shall not be any ongoing obligation to satisfy such conditions after the Commencement has occurred:

 

(a)                                 The
Company shall have executed each of the Transaction Documents and delivered the same to the Purchaser;

 

(b)                                 [Intentionally
Omitted.];

 

(c)                                  The
Common Stock shall be authorized for quotation on the Principal Market, trading in the Common Stock shall not have been within
the last 365 days suspended by the SEC or the Principal Market, other than a general halt in trading in the Common Stock by the
Principal Market under halt codes indicating pending or released material news, and the Securities shall be approved for listing
upon the Principal Market;

 

(d)                                 The
Purchaser shall have received the opinion of the Company’s legal counsel dated as of the Commencement Date in customary
form and substance;

 

(e)                                  The
representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any
of such representations and warranties is already qualified as to materiality in Section 3 above, in which case, such representations
and warranties shall be true and correct without further qualification) as of the date of this Agreement and as of the Commencement
Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true
and correct in all material respects as of such specific date) and the Company shall have performed, satisfied and complied in
all material respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied
or complied with by the Company at or prior to the Commencement Date.  The Purchaser shall have received a certificate, executed
by the CEO, President or CFO of the Company, dated as of the Commencement Date, to the foregoing effect;

 

(f)                                   The
Board of Directors of the Company or a duly authorized committee thereof shall have adopted resolutions which shall be in
full force and effect without any amendment or supplement thereto as of the Commencement Date;

 

     

     

    

 

(g)                                    As
of the Commencement Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose
of effecting future purchases of Purchase Shares hereunder, 41,917,130 shares of Common Stock;

 

(h)                                    The
Irrevocable Transfer Agent Instructions, in form acceptable to the Purchaser shall have been signed by the Company and the Purchaser
and shall have been delivered to the Transfer Agent;

 

(i)                                      The
Company shall have delivered to the Purchaser a certificate evidencing the incorporation and good standing of the Company in the
State of Delaware issued by the Secretary of State of the State of Delaware as of a date within ten (10) Business Days of
the Commencement Date;

 

(j)                                      [Intentionally
Omitted.];

 

(k)                                     The
Company shall have delivered to the Purchaser a secretary’s certificate executed by the Secretary of the Company, dated
as of the Commencement Date;

 

(l)                                      The
Shelf Registration Statement shall have been declared effective under the 1933 Act by the SEC and no stop order with respect thereto
shall be pending or threatened by the SEC.  The Company shall have prepared and delivered to the Purchaser a final and complete
form of Prospectus Supplement, dated and current as of the Commencement Date, to be used in connection with any issuances of any
Purchase Shares to the Purchaser, and to be filed by the Company within one (1) Business Day after the Commencement Date
pursuant to Rule 424(b).  The Company shall have made all filings under all applicable federal and state securities
laws necessary to consummate the issuance of the Purchase Shares pursuant to this Agreement in compliance with such laws;

 

(m)                                     No
Event of Default has occurred and is continuing, or any event which, after notice and/or lapse of time, would become an Event
of Default has occurred;

 

(n)                                     On
or prior to the Commencement Date, the Company shall  take all necessary action, if any, and such actions as reasonably requested
by the Purchaser, in order to render inapplicable any control share acquisition, business combination, stockholder rights plan
or poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate
of Incorporation or the laws of the state of its incorporation, other than Section 203 of the Delaware General Corporation
Law, that is or could become applicable to the Purchaser as a result of the transactions contemplated by this Agreement, including,
without limitation, the Company’s issuance of the Securities and the Purchaser’s ownership of the Securities; and

 

(o)                                    The
Company shall have provided the Purchaser with the information reasonably requested by the Purchaser in connection with its due
diligence requests made prior to, or in connection with, the Commencement, in accordance with the terms of Section 4(f) hereof.

 

8.                                      INDEMNIFICATION.

 

(a)                                    Indemnification
by the Company. The Company shall indemnify and hold harmless the Purchaser, each of its directors, officers, partners, employees,
investment managers, investment advisors, agents, representatives and affiliates, and each Person, if any, who controls the Purchaser
within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act from and against all losses, claims,
damages, liabilities and expenses (including reasonable and documented costs of defense and investigation and all reasonable and
documented attorneys’ fees) to which the Purchaser and each such other Person may become subject, under the Securities Act
or otherwise, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon (i) any violation
by the Company of United States federal or state securities laws in connection with the transactions contemplated by this Agreement
by the Company or any of its Subsidiaries, affiliates, officers, directors or employees, (ii) any untrue statement or alleged
untrue statement of a material fact contained, or incorporated by reference, in the Shelf Registration Statement or any amendment
thereto or any omission or alleged omission to state therein, or in any document incorporated by reference therein, a material
fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any untrue statement or
alleged untrue statement of a material fact contained, or incorporated by reference, in any “issuer free writing prospectus”
(as defined in Rule 433 under the Securities Act), or in any amendment thereof or supplement thereto, in each case in connection
with the transactions contemplated by this Agreement, or the omission or alleged omission to state therein any material fact required
to be stated therein or necessary to make the statements therein, in light of the circumstances under which the statements therein
were made, not misleading; provided, however, that (A) the Company shall not be liable under this Section 8(a) to the extent that
such loss, claim, damage, liability or expense resulted directly and solely from any such acts or failures to act, undertaken
or omitted to be taken by the Purchaser or such Person through its bad faith or willful misconduct, (B) the foregoing indemnity
shall not apply to any loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or based
upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity
with written information furnished to the Company by or on behalf of the Purchaser expressly for use in the Form 8-K or any prospectus
supplement or free writing prospectus, or any amendment thereof or supplement thereto, including, without limitation, the information
set forth on Exhibit C hereto for inclusion in the Prospectus Supplement in the sections
captioned “The Transaction” and “Plan of Distribution”, and (C) with respect to the prospectus,
the foregoing indemnity shall not inure to the benefit of the Purchaser or any such Person from whom the Person asserting any
loss, claim, damage, liability or expense purchased Common Stock, if copies of all prospectus supplements required to be filed
pursuant to Section 7(l), together with the base prospectus, were timely delivered or made available to the Purchaser pursuant
hereto and a copy of the base prospectus, together with a prospectus supplement (as applicable), was not sent or given by or on
behalf of the Purchaser or any such Person to such Person, if required by law to have been delivered, at or prior to the written
confirmation of the sale of the Common Stock to such Person, and if delivery of the base prospectus, together with a prospectus
supplement (as applicable), would have cured the defect giving rise to such loss, claim, damage, liability or expense.

 

     

     

    

 

The Company
shall reimburse the Purchaser and each such director, officer, partner, employee, agent, representative and affiliate or controlling
Person promptly upon demand (with accompanying presentation of documentary evidence) for all legal and other costs and expenses
reasonably incurred by the Purchaser or such indemnified Persons in investigating, defending against, or preparing to defend against
any such claim, action, suit or proceeding with respect to which it is entitled to indemnification.

 

(b)                                     Indemnification
by the Purchaser.  The Purchaser shall indemnify and hold harmless the Company, each of its directors, officers, partners,
employees, agents, representatives and affiliates, and each Person, if any, who controls the Company within the meaning of Section
15 of the Securities Act or Section 20(a) of the Exchange Act from and against all losses, claims, damages, liabilities and expenses
(including reasonable and documented costs of defense and investigation and all reasonable and documented attorneys’ fees)
to which the Company and each such other Person may become subject, under the Securities Act or otherwise, insofar as such losses,
claims, damages, liabilities and expenses arise out of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the Form 8-K, the Shelf Registration Statement or any prospectus supplement or free writing prospectus,
or any amendment thereof or supplement thereto, or the omission or alleged omission to state therein any material fact required
to be stated therein or necessary to make the statements therein, in light of the circumstances under which the statements therein
were made, not misleading, in each case, to the extent, and only to the extent, that such untrue statement, alleged untrue statement,
omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by
or on behalf of the Purchaser expressly for use in the Form 8-K or any prospectus supplement or free writing prospectus, or any
amendment thereof or supplement thereto, including, without limitation, the information set forth on Exhibit C hereto for
inclusion in the Prospectus Supplement in the sections captioned “The Transaction” and “Plan of Distribution”
or updated from time to time in writing by the Purchaser and furnished to the Company by the Purchaser expressly for inclusion
in the Form 8-K, the Shelf Registration Statement a prospectus or any new registration statement or from the failure of the Purchaser
to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely made available
by the Company pursuant to this Agreement.

 

The Purchaser
shall reimburse the Company and each such director, officer, partner, employee, agent, representative and affiliate or controlling
Person promptly upon demand (with accompanying presentation of documentary evidence) for all legal and other costs and expenses
reasonably incurred by the Company or such indemnified Persons in investigating, defending against, or preparing to defend against
any such claim, action, suit or proceeding with respect to which it is entitled to indemnification.

 

     

     

    

 

(c)                                      Promptly
after a Person receives notice of a claim or the commencement of an action for which the Person intends to seek indemnification
under Section 8(a) or (b), the Person will notify the indemnifying party in writing of the claim or commencement of the action,
suit or proceeding; provided, however, that failure to notify the indemnifying party will not relieve
the indemnifying party from liability under Section 8(a) or (b), except to the extent it has been materially prejudiced by the
failure to give notice.  The indemnifying party will be entitled to participate in the defense of any claim, action, suit
or proceeding as to which indemnification is being sought, and if the indemnifying party acknowledges in writing the obligation
to indemnify the party against whom the claim or action is brought, the indemnifying party may (but will not be required to) assume
the defense against the claim, action, suit or proceeding with counsel satisfactory to it.  After an indemnifying party notifies
an indemnified party that the indemnifying party wishes to assume the defense of a claim, action, suit or proceeding, the indemnifying
party will not be liable for any legal or other expenses incurred by the indemnified party in connection with the defense against
the claim, action, suit or proceeding except that if, in the opinion of counsel to the indemnifying party, one or more of the
indemnified parties should be separately represented in connection with a claim, action, suit or proceeding, the indemnifying
party will pay the reasonable fees and expenses of one separate counsel for the indemnified parties.  Each indemnified party,
as a condition to receiving indemnification as provided in Section 8(a) or (b), will cooperate in all reasonable respects with
the indemnifying party in the defense of any action or claim as to which indemnification is sought.  No indemnifying party
will be liable for any settlement of any action effected without its prior written consent.  Notwithstanding the foregoing
sentence, if at any time an indemnified party shall have requested (by written notice provided in accordance with Section 11(f))
an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that
it shall be liable for any settlement of the nature contemplated hereby effected without its written consent if (i) such settlement
is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party
shall have received written notice of the terms of such settlement at least 30 days prior to such settlement being entered into
and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the
date of such settlement.  No indemnifying party will, without the prior written consent of the indemnified party, effect
any settlement of a pending or threatened action with respect to which an indemnified party is, or is informed that it may be,
made a party and for which it would be entitled to indemnification, unless the settlement includes an unconditional release of
the indemnified party from all liability and claims which are the subject matter of the pending or threatened action.

 

If
for any reason the indemnification provided for in this Agreement is not available to, or is not sufficient to hold harmless,
an indemnified party in respect of any loss or liability referred to in Section 8(a) or (b) as to which such indemnified party
is entitled to indemnification thereunder, each indemnifying party shall, in lieu of indemnifying the indemnified party, contribute
to the amount paid or payable by the indemnified party as a result of such loss or liability, (i) in the proportion which is appropriate
to reflect the relative benefits received by the indemnifying party, on the one hand, and by the indemnified party, on the other
hand, from the sale of Securities which is the subject of the claim, action, suit or proceeding which resulted in the loss or
liability or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause (i) above, but also the relative fault of the indemnifying party,
on the one hand, and the indemnified party, on the other hand, with respect to the statements or omissions which are the subject
of the claim, action, suit or proceeding that resulted in the loss or liability, as well as any other relevant equitable considerations.

 

The
remedies provided for in Section 8 are not exclusive and shall not limit any rights or remedies which may otherwise be available
to any indemnified Person at law or in equity.

 

9.                                      EVENTS
OF DEFAULT.

 

An “Event
of Default” shall be deemed to have occurred at any time as any of the following events occurs:

 

(a)                                    during
any period in which the effectiveness of any registration statement is required to be maintained pursuant to the terms of this
Agreement, the effectiveness of such registration statement lapses for any reason (including, without limitation, the issuance
of a stop order) or is unavailable to the Company for the sale of all of the Purchase Shares to the Purchaser, and such lapse
or unavailability continues for a period of ten (10) consecutive Business Days or for more than an aggregate of thirty (30)
Business Days in any 365-day period, which is not in connection with a post-effective amendment to any such registration statement
or the filing of a new registration statement; provided, however, that in connection with any post-effective amendment to such
registration statement or filing of a new registration statement that is required to be declared effective by the SEC, such lapse
or unavailability may continue for a period of no more than thirty (30) consecutive Business Days, which such period shall be
extended for an additional thirty (30) Business Days if the Company receives a comment letter from the SEC in connection therewith;

 

     

     

    

 

(b)                                 the
suspension from trading or failure of the Common Stock to be listed on a Principal Market for a period of three (3) consecutive
Business Days;

 

(c)                                  the
delisting of the Common Stock from the Principal Market, and the Common Stock is not immediately thereafter trading on the New
York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market;

 

(d)                                 the
failure for any reason by the Transfer Agent to issue Purchase Shares to the Purchaser after the applicable
Settlement Date that the Purchaser is entitled to receive, and such failure continues
for five (5) Business Days;

 

(e)                                  the
Company’s breach of any representation or warranty (as of the dates made), covenant or other term or condition under any
Transaction Document if such breach could reasonably be expected to have a Material Adverse Effect and except, in the case of
a breach of a covenant which is reasonably curable, only if such breach continues uncured for a period of at least five (5) Business
Days;

 

(f)                                   if
any Person commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law;

 

(g)                                  if
the Company pursuant to or within the meaning of any Bankruptcy Law; (A) commences a voluntary case, (B) consents to
the entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a Custodian of it
or for all or substantially all of its property, (D) makes a general assignment for the benefit of its creditors or (E) becomes
insolvent;

 

(h)                                   a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against the Company
in an involuntary case, (B) appoints a Custodian of the Company or for all or substantially all of its property, or (C) orders
the liquidation of the Company or any Subsidiary; or

 

(i)                                    if
at any time after the Commencement Date, the Exchange Cap is reached unless and until stockholder approval has been obtained pursuant
to Section 1(h) hereof.  The Exchange Cap shall be deemed to be reached at such time if, upon submission of a Purchase
Notice under this Agreement, the issuance of such shares of Common Stock would exceed the number of shares of Common Stock which
the Company may issue under this Agreement without breaching the Company’s obligations under the rules or regulations
of the Principal Market.

 

In addition to any other rights
and remedies under applicable law and this Agreement, including the Purchaser termination rights under Section 11(k) hereof,
so long as an Event of Default has occurred and is continuing, or if any event which, after notice and/or lapse of time, would
become an Event of Default, has occurred and is continuing, or so long as the VWAP is below the Floor Price, the Company may not
require and the Purchaser shall not be obligated to purchase any shares of Common Stock under this Agreement.  If pursuant
to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against
the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a
general assignment for the benefit of its creditors, (any of which would be an Event of Default as described in Sections 9(f),
9(g) and 9(h) hereof) this Agreement shall automatically terminate without any liability or payment to the Company without
further action or notice by any Person.  No such termination of this Agreement under Section 11(k)(i) shall affect
the Company’s or the Purchaser’s obligations under this Agreement with respect to pending purchases and the Company
and the Purchaser shall complete their respective obligations with respect to any pending purchases under this Agreement.

 

     

     

    

 

10.                                  CERTAIN
DEFINED TERMS.

 

For purposes
of this Agreement, the following terms shall have the following meanings:

 

(a)                                 “1933
Act” means the Securities Act of 1933, as amended.

 

(b)                                 “Available
Amount” means initially Two Hundred and Fifty Million Dollars ($250,000,000) in the aggregate which amount shall be
reduced by the Purchase Amount each time the Purchaser purchases shares of Common Stock pursuant to Section 1 hereof.

 

(c)                                  “Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

(d)                                 “Business
Day” means any day on which the Principal Market is open for trading during normal trading hours (i.e., 9:30 a.m. to
4:00 p.m. Eastern Time), including any day on which the Principal Market is open for trading for a period of time less than
the customary time.

 

(e)                                  “Closing
Sale Price” means the last closing trade price for the Common Stock on the Principal Market as reported by the Principal
Market.

 

(f)                                   “Confidential
Information” means any information disclosed by either party to the other party, either directly or indirectly, in writing,
orally or by inspection of tangible objects (including, without limitation, documents, prototypes, samples, protocols, development
plans, commercialization plans, compounds, formulations, preclinical study and clinical trial results, plant and equipment), which
is designated as “Confidential,” “Proprietary” or some similar designation. Information communicated orally
shall be considered Confidential Information if such information is expressly identified as Confidential Information at the time
of such initial disclosure and confirmed in writing as being Confidential Information within ten (10) Business Days after
the initial disclosure. Confidential Information may also include information disclosed to a disclosing party by third parties.
Confidential Information shall not, however, include any information which (i) was publicly known and made generally available
in the public domain prior to the time of disclosure by the disclosing party; (ii) becomes publicly known and made generally
available after disclosure by the disclosing party to the receiving party through no action or inaction of the receiving party
or its affiliates; (iii) is already in the possession of the receiving party at the time of disclosure by the disclosing
party as shown by the receiving party’s files and records immediately prior to the time of disclosure; (iv) is obtained
by the receiving party from a third party without a breach of such third party’s obligations of confidentiality; or (v) is
independently developed by the receiving party without use of or reference to the disclosing party’s Confidential Information,
as shown by documents and other competent evidence in the receiving party’s possession.

 

(g)                                  “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(h)                                  “Facility
Term” means the date that is thirty-six (36) months from the Commencement Date.

 

(i)                                   “Optional
Purchase” means, with respect to any Purchase Date, the Company may in its sole discretion grant to the Purchaser the
right to exercise, from time to time (but not more than once on any Pricing Date), all or any portion of the Available Amount.
The maximum amount of the Optional Purchase shall be set forth in the Purchase Notice. Any unexercised portion of the Optional
Purchase expires at the end of the Purchase Date.

 

(j)                                   “Person”
means an individual or entity including any limited liability company, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization and a government or any department or agency thereof.

 

 

(k)                                  “Principal
Market” means the Nasdaq Capital Market; provided however, that in the event the Company’s Common Stock is ever
listed or traded on the New York Stock Exchange, the NYSE American, the Nasdaq Global Market, or the Nasdaq Global Select Market,
then the “Principal Market” means such other market or exchange on which the Company’s Common Stock is then
listed or traded.

 

     

     

    

 

(l)                                  “Purchase
Amount” means, with respect to any particular Regular Purchase made hereunder, (i) the portion of the Available Amount
that the Purchaser is required to purchase, up to 650,000 Purchase Shares on each Purchase Date, pursuant to Section 1 hereof
and (ii) the amount of any Optional Purchase purchased by the Purchaser, in each case as set forth in a valid Purchase Notice
which the Company delivers to the Purchaser and as confirmed in a Purchaser Confirmation;
provided, however, in no event shall the Purchase Amount exceed $5,000,000 on a Purchase Date, unless the Purchaser
and the Company mutually agree.  

 

(m)                                 “Purchase
Date” means the Business Day of receipt by the Purchaser of a valid Purchase Notice that the Purchaser is to buy Purchase
Shares pursuant to Section 1(b) hereof.

 

(n)                                 “Purchase
Notice” means an irrevocable written notice, substantially in the form attached
hereto as Exhibit A, from the Company to the Purchaser directing the Purchaser to buy Purchase Shares pursuant
to Section 1(b). The Purchase Notice shall specify (i) the Fixed Request Amount (which
shall not exceed 650,000 shares unless otherwise mutually agreed by the Purchaser and the Company), (ii) the Purchase Date, and
(iii) the amount of Optional Purchase, if any. 

 

(o)                                 “Purchase
Price” means 97.5% of the VWAP on the Purchase Date,  calculated at the end of the Purchase Date.

 

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

 

(r)                                 “Transfer
Agent” means the transfer agent of the Company as set forth in Section 11(f) hereof or such other person who
is then serving as the transfer agent for the Company in respect of the Common Stock.

 

(s)                                 “VWAP”
means the daily volume weighted average price (based on a trading day from 9:30 a.m. to 4:00 p.m. eastern time) per share of
the Common Stock on the Principal Market as reported by Bloomberg Financial LP using the AQR function.

 

11.                               MISCELLANEOUS.

 

(a)                                 Governing
Law; Jurisdiction; Jury Trial.  The corporate laws of the State of Delaware shall govern all issues concerning the relative
rights of the Company and its stockholders.  All other questions concerning the construction, validity, enforcement and interpretation
of this Agreement and the other Transaction Documents shall be governed by the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York.  Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan,
for the adjudication of any dispute hereunder or under the other Transaction Documents or in connection herewith or therewith,
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. 
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

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

 

     

     

    

  

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

 

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

 

(e)                                  Entire
Agreement.  This Agreement supersede all other prior oral or written agreements between the Purchaser, the Company, their
affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement, the other Transaction
Documents and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered
herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Purchaser makes any representation,
warranty, covenant or undertaking with respect to such matters.  Each of the Company and the Purchaser acknowledges and agrees
that it has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than as expressly
set forth in this Agreement.

 

(f)                                   Notices. 
Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); (iii) upon receipt, when sent by electronic message (provided the recipient responds to the message and confirmation
of both electronic messages are kept on file by the sending party); or (iv) one (1) Business Day after timely deposit
with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The
addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Sorrento
Therapeutics, Inc.

4955
Directors Place

San
Diego, CA 92121

Attention:
Chief Executive Officer and General Counsel

 

 

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

 

Paul Hastings LLP

1117 S. California Avenue

Palo Alto, CA 94304-1106

Attention: Jeffrey T.
Hartlin and Samantha H. Eldredge

  

If to the
Purchaser:

 

Arnaki Ltd.

Rodus Building, 4th floor

Road Reef, P.O. Box 756 Road Town

Tortola, VG1110, British Virgin Islands

Attention: Ariel Samuel Belilo

 

     

     

    

 

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

 

Sullivan & Worcester
LLP

1633 Broadway

New York, NY 10019

Attention: David E. Danovitch

  

If to the
Transfer Agent:

 

Philadelphia Stock Transfer,
Inc.

2320 Haverford Road

Suite 230

Ardmore, PA 19003

Attention: Bob Winterle

 

or at such other address and/or
facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to
each other party at least one (1) Business Day prior to the effectiveness of such change.  Written confirmation of receipt
(A) given by the recipient of such notice, consent or other communication, (B) mechanically or electronically generated
by the sender’s facsimile machine containing the time, date, and recipient facsimile number, (C) electronically generated
by the sender’s electronic mail containing the time, date and recipient email address or (D) provided by a nationally
recognized overnight delivery service, shall be rebuttable evidence of receipt in accordance with clause (i), (ii), (iii) or
(iv) above, respectively.

 

(g)                                    Successors
and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns.  The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Purchaser, including by merger or consolidation; provided, however, that any transaction, whether by merger, reorganization,
restructuring, consolidation, financing or otherwise, whereby the Company remains the surviving entity immediately after such
transaction shall not be deemed a succession or assignment.  The Purchaser may not assign its rights or obligations under
this Agreement.

 

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

 

(i)                                     Publicity. 
The Purchaser shall have the right to approve before issuance any press release, SEC filing or any other public disclosure made
by or on behalf of the Company whatsoever with respect to, in any manner, the Purchaser, its purchases hereunder or any aspect
of this Agreement or the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the
prior approval of the Purchaser, to make any press release or other public disclosure (including any filings with the SEC) with
respect to such transactions as is required by applicable law and regulations so long as the Company and its counsel consult with
the Purchaser in connection with any such press release or other public disclosure at least one (1) Business Day prior to
its release; provided, however, that the Company’s obligations pursuant to this Section 11(i) shall not apply
if the material provisions of such press release, SEC filing, or other public disclosure previously has been publicly disclosed
by the Company in accordance with this Section 11(i).  The Purchaser must be provided with a copy thereof at least one
(1) Business Day prior to any release or use by the Company thereof.

 

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

 

(k)                                  Termination. 
This Agreement may be terminated only as follows:

 

(i)                                     By
the Purchaser any time an Event of Default exists without any liability or payment to the Company.  However, if pursuant
to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against
the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a
general assignment for the benefit of its creditors, (any of which would be an Event of Default as described in Sections 9(f),
9(g) and 9(h) hereof) this Agreement shall automatically terminate without any liability or payment to the Company without
further action or notice by any Person.  No such termination of this Agreement under this Section 11(k)(i) shall
affect the Company’s or the Purchaser’s obligations under this Agreement with respect to pending purchases and the
Company and the Purchaser shall complete their respective obligations with respect to any pending purchases under this Agreement.

 

     

     

    

 

(ii)                                  In
the event that the Commencement shall not have occurred the Company shall have the option to terminate this Agreement for any
reason or for no reason without any liability whatsoever of either party to the other party under this Agreement.

 

(iii)                                 In
the event that the Commencement shall not have occurred within ten (10) Business Days of the date of this Agreement, due
to the failure to satisfy any of the conditions set forth in Sections 6 and 7 above with respect to the Commencement, either party
shall have the option to terminate this Agreement at the close of business on such date or thereafter without liability of either
party to any other party; provided, however, that the right to terminate this Agreement under this Section 11(k)(iii) shall
not be available to either party if such failure to satisfy any of the conditions set forth in Sections 6 and 7 is the result
of a breach of this Agreement by such party or the failure of any representation or warranty of such party included in this Agreement
to be true and correct in all material respects.

 

(iv)                               
At any time after the Commencement Date, the Company shall have the option to terminate this Agreement for any reason or for no
reason by delivering notice (a “Company Termination Notice”) to the Purchaser electing to terminate this Agreement
without any liability whatsoever of either party to the other party under this Agreement.  The Company Termination Notice
shall not be effective until one (1) Business Day after it has been received by the Purchaser.

 

(v)                                 This
Agreement shall automatically terminate on the date that the Company sells and the Purchaser purchases the full Available Amount
as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party to
any other party under this Agreement.

 

(vi)                                If
by the conclusion of the Facility Term for any reason or for no reason the full Available Amount under this Agreement has not
been purchased as provided for in Section 1 of this Agreement, this Agreement shall automatically terminate on the date that
is 36 months from the Commencement Date, without any action or notice on the part of any party and without any liability whatsoever
of any party to any other party under this Agreement.

 

Except as set forth
in Sections 11(k)(i) (in respect of an Event of Default under Sections 9(f), 9(g) and 9(h)), 11(k)(v) and 11(k)(vi),
any termination of this Agreement pursuant to this Section 11(k) shall be effected by written notice from the Company
to the Purchaser, or the Purchaser to the Company, as the case may be, setting forth the basis for the termination hereof. 
The representations and warranties of the Company and the Purchaser contained in Sections 2, 3 and 5 hereof, the indemnification
provisions set forth in Section 8 hereof and the agreements and covenants set forth in Sections 4(e) and 11, shall survive
the Commencement and any termination of this Agreement.  No termination of this Agreement shall affect the Company’s
or the Purchaser’s rights or obligations under this Agreement with respect to pending purchases and the Company and
the Purchaser shall complete their respective obligations with respect to any pending purchases under this Agreement.

 

(l)                                     No
Financial Advisor, Placement Agent, Broker or Finder.  The Company represents and warrants to the Purchaser that it has
not engaged any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. 
The Purchaser represents and warrants to the Company that it has not engaged any financial advisor, placement agent, broker or
finder in connection with the transactions contemplated hereby.  Each party shall be responsible for the payment of any fees
or commissions, if any, of any financial advisor, placement agent, broker or finder engaged by such party relating to or arising
out of the transactions contemplated hereby.  Each party shall pay, and hold the other party harmless against, any liability,
loss or expense (including, without limitation, attorneys’ fees and out of pocket expenses) arising in connection with any
such claim.

 

     

     

    

 

(m)                                No
Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

(n)                                 Failure
or Indulgence Not Waiver.  No failure or delay in the exercise of any power, right or privilege hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.

 

 

[Signature
Page Follows]

 

     

     

    

 

IN WITNESS
WHEREOF, the Purchaser and the Company have caused this Common Stock Purchase Agreement to be duly executed as of the
date first written above.

 

	 	THE COMPANY:
	 	 
	 	SORRENTO THERAPEUTICS, INC.
	 	 
	 	By:	/s/ Henry Ji, Ph.D.
	 	Name: Henry Ji, Ph.D.
	 	Title: Chairman of the Board, President and Chief Executive Officer
	 	 
	 	 
	 	PURCHASER:
	 	 
	 	ARNAKI LTD.
	 	 
	 	By:	/s/ Ariel Samuel Belilo
	 	Name: Ariel Samuel Belilo
	 	Title: Director

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