Document:

Exhibit 4.54

 

 

SHARE PURCHASE AGREEMENT

 

(HELIOHRISI
S.A.)

 

This Agreement (“Agreement”)
is dated 20th March 2019,

 

Between

 

A)                
THERMI TANEO Venture Capital Fund a closed-end mutual fund formed in accordance with Law 2992/2002, with registered address
at St. Kazantzidi 47, 55535, Thessaloniki, as represented by its administrator ΤHERMI VENTURES S.A., acting as manager, duly
represented for the execution of the present by Mr. Nikolaos Giouras by virtue of a resolution of its Board of Directors dated
19 March 2019; and by Hellenic Capital Partners AEDAKES acting as co-manager (for the purpose of assisting and granting its consent
in accordance with the incorporation and management agreement of THERMI TANEO Venture Capital Fund) by Mr. Spiridon Papadatos by
virtue of a resolution of its Board of Directors dated 20 March 2019 (“Seller”);

 

B)                
SP ORANGE POWER (CYPRUS) LIMITED, a Cyprus company with registered address at 2, Romanos street, Tlais Tower, First Floor,
1070, Nicosia Cyprus, duly represented for the execution of the present by Mr. Vassilios Orfanos by virtue of a Power of Attorney
dated 15 March 2019 (“Buyer”);

 

(Seller
and Buyer are referred to individually as the “Party”, and collectively as the “Parties”)

 

Whereas

 

		A)	This Agreement is entered into pursuant to a Framework Share Purchase Agreement dated 20th
September 2017 (hereinafter the “Framework SPA”), entered into among, inter alia, Seller and Buyer. Capitalized
terms used herein and not otherwise defined shall have the meaning ascribed to them in the Framework SPA.

 

		B)	Today is the Heliohrisi Closing Date.

 

		C)	Seller is the lawful and undisputed owner and holder of thirty seven thousand thirty one (37,031)
issued and outstanding registered voting shares with a nominal value of EUR ten (€10) each (hereinafter the “Heliohrisi
Shares”), comprising the total (100%) of the fully paid up outstanding voting share capital of the société
anonyme “Heliohrisi Société Anonyme For Energy Production and Development” («ΗΛΙΟΧΡΗΣΗ
ΑΝΩΝΥΜΟΣ ΕΤΑΙΡΕΙΑ ΠΑΡΑΓΩΓΗΣ
ΚΑΙ ΕΚΜΕΤΑΛΛΕΥΣΗΣ ΕΝΕΡΓΕΙΑΣ»),
with the distinctive title “Heliohrisi S.A.” («ΗΛΙΟΧΡΗΣΗ Α.Ε»),
a company duly established and validly existing under the laws of Greece, with registered address at 47, St. Kazatzidi street,
Pylaia 555 35 Thessaloniki, GEMI Number 007601801000, and Greek Tax Registration Number (“AFM”) 998380676 (hereinafter
the “Company”).

 

		D)	Buyer wishes to purchase and acquire the Heliohrisi Shares and Seller wishes to sell the Heliohrisi
Shares according to the terms and conditions provided for in this Agreement and the Framework SPA.

 

 

 

 

 

    	 	1	 

     

    

 

NOW, it is agreed as follows:

 

	1	SALE & PURCHASE 

 

	1.1	Buyer hereby purchases and acquires from Seller and Seller sells and transfers to Buyer, the Heliohrisi Shares, which are free
and clear of any Encumbrance (with the exception of the pledges incorporated in favor of SPI Energy Co., Ltd, Thelmico Limited,
SP Orange Power (Cyprus) Limited which are discharged on the date hereof in accordance with the Framework SPA), third party rights,
claims, options, rights of first refusal, charges of any kind, in return for the Purchase Price, together with all rights attaching
to them as of the day of transfer (including, without limitation, the right to receive all dividends or distributions declared,
made or paid on or after such day of transfer) and delivers the original share certificates representing the Heliohrisi Shares.

 

	1.2	The Buyer hereby accepts title and delivery of the Heliohrisi Shares pursuant to the terms and conditions of this Agreement and
the Framework SPA.

 

	1.3	Upon execution of this Agreement, the Buyer becomes the sole and unencumbered owner of the Heliohrisi Shares.

 

	2	REPRESENTATIONS & CLOSING ACTIONS

 

	2.1	Seller hereby represents and warrants to Buyer that: (a) all representations and warranties contained in article 10 of the Framework
SPA are true and correct as of the date hereof except for 10 (c) since the Seller is currently the owner of the Heliohrisi Shares
(Seller hereby repeats all such representations and warranties except for 10(c) above); (b) from the date of the Framework SPA
until the date hereof there has been no adverse material change regarding the Companies or the Projects; and (c) as of the Effective
Date, and without prejudice to paragraphs 6.1 and 6.2 of the Framework SPA, the Company has not incurred any Liabilities or any
loss or reduction in the value of its Assets except to the extent permitted under the Framework SPA.

 

	 	In connection with the decrease of the share capital of the company Thermi Energiaki Société Anonyme («Thermi
Ενεργειακή Ανώνυμη Εταιρεία»),
a company organized and existing under the law of Greece with registered address in the Municipality of Pylaia in the Prefecture
of Thessaloniki (9th km National Road Thessaloniki-Thermi) with Greek Tax Registration Number (AFM) 997993888 and GEMI Number
59213004000 (hereinafter “Thermi Energy”), which was decided by virtue of the resolution of Extraordinary Meeting
of the Shareholders of Thermi Energy dated 15th September 2017, Seller hereby represents and warrants to Buyer that: (a) the above
share capital decrease is valid, effective and legal and cannot be annulled or challenged; (b) by virtue of the above share capital
decrease, the Seller has become the sole and legal owner of the Heliohrisi Shares; (c) there are no creditors of Thermi Energy
with claims due (against Thermi Energy) as of the date of the above resolution of the Extraordinary Meeting of the Shareholders
of Thermi Energy, nor any creditors whose claims are not due, who may challenge the validity of the share capital decrease of
Thermi Energy; and (d) as of the date hereof, there have been no objections by any creditor of Thermi Energy as to the realization
of the said share capital decrease.

 

	2.2	Seller has delivered to Buyer the financial statements of the Company for the fiscal period ending 31.12.2018 and the Closing
Balance Sheet of the Company which are attached hereto as Exhibit A. The above financial statements and the Closing Balance
Sheet have been prepared by Seller without Buyer having confirmed their accuracy and completeness. Seller hereby represents and
warrants to Buyer that: (a) the above financial statements and the Closing Balance Sheet (attached hereto as Exhibit A) fairly
present in all material respects the financial position of the Company and the results of operations for the periods to which
they relate; and (b) the Company does not have any material liabilities or obligations of any nature, fixed or contingent, matured
or unmatured, other than those reflected in the above financial statements and the Closing Balance Sheet (attached hereto as Exhibit
A).

 

 

 

 

 

 

    	 	2	 

     

    

 

	2.3	The Parties confirm that all closing actions and deliveries required pursuant to article 8 of the Framework Agreement have been
fulfilled (payment of the Purchase Price is effected pursuant to article 3 hereof).

 

	2.4	The Seller has delivered to the Buyer the updated Disclosure Schedule which is attached hereto as Exhibit B.

 

	3	PURCHASE PRICE AND PAYMENT 

 

	3.1	The Heliohrisi Purchase Price for the transfer of the Shares is set to the amount of EUR three million four hundred forty-one
thousand eight hundred ninety-one (€3,441,891.00). The above Purchase Price is subject to adjustment pursuant to paragraphs
6.1 and 6.2 of the Framework SPA. In addition to the Heliohrisi Purchase Price, the Buyer shall pay to the Seller the amount of
EUR one hundred thirty two thousand six hundred twenty one (€132,621.00) as interests due in accordance with clause 7.2
(b) (ii) of the Framework SPA, i.e., the aggregate amount payable by the Buyer to the Seller is EUR three million five hundred
seventy four thousand five hundred twelve (€3,574,512.00).

 

	3.2	The aggregate amount of EUR three million five hundred seventy-four thousand five hundred twelve (€3.574.512) in accordance
with paragraph 3.1 above, is paid by the Buyer to the Seller as follows:

 

		a)	The amount of EUR two million nine hundred seventy thousand (€2,970,000.00) (the Heliohrisi
First Instalment) has been already paid by the Buyer to the Seller pursuant to article 9.3 (a) of the Framework SPA (the execution
of the present Agreement constituting evidence of receipt by the Seller of the Heliohrisi First Instalment);

 

		b)	Following application (payment) of the Heliohrisi First Instalment, the balance of the Heliohrisi
Purchase Price, i.e. amount of EUR six hundred four thousand five hundred twelve (€604,512.00) is paid today by delivery
from the Buyer to the Seller of the bank cheque (“τραπεζική επιταγή”)
dated 20 March 2019, number 00078022-7 issued by Alpha Bank on the name of the Seller, copy of which is attached hereto as Exhibit
C

 

	 	Following the above payments, the Seller hereby confirms that it has received in full the Heliohrisi Purchase Price, according
to clause 9.3. of the Framework SPA, and all interests due under clause 7.2 (b) (ii) of the Framework SPA.

 

	4	GOVERNING LAW, DISPUTE RESOLUTION 

 

	4.1	If any question, dispute, difference or claim arises out of or in connection with this Agreement, including any question regarding
its existence, validity, performance or termination (a “Framework SPA Dispute”), which either Party has notified to
the other, senior management personnel from each Party shall meet and diligently attempt in good faith to resolve the Framework
SPA Dispute for a period of thirty (30) calendar days following one Party's written request to the other Party for such a meeting.
If, however, either Party refuses or fails to so meet, or the Framework SPA Dispute is not resolved by negotiation during such
30-day period, the provisions of paragraph 4.2 shall apply.

 

 

 

 

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	4.2	Any SPA dispute arising in connection with this Agreement that is not settled amicably between the Parties shall be settled by
arbitration in Athens pursuant to the Greek Civil Procedure. There shall be three (3) arbitrators and the award of the arbitral
panel shall be final and binding upon the Parties.

 

	4.3	This Agreement, and the rights and obligations of the Parties and any Framework SPA Dispute arising under or relating thereto
(whether in contract, tort or otherwise) shall be governed by, and construed in accordance with, the laws of Greece.

 

	5	INCORPORATION OF FRAMEWORK SPA

 

All other terms and provisions
of the Framework SPA are incorporated herein by reference and shall apply to this Agreement as if such terms and conditions were
set out herein.

 

IN WITNESS WHEREOF, the Parties,
acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names as follows:

 

 

	
        For the Seller

         

        THERMI TANEO Venture Capital

        Fund, represented by

        ΤHERMI VENTURES S.A, acting as

        manager and Hellenic Capital Partners

        AEDAKES acting as co-manager

        (for its consent)

         

        /s/ Nikolaos Giouras             

        Name: Nikolaos
        Giouras

        Capacity: Attorney in fact

         

        /s/ Spiridon Papadatos        

         

        Name: Spiridon Papadatos
	
        For the Buyer

         

        SP ORANGE POWER (CYPRUS) LIMITED

         

         

         

         

         

         

        /s/ Vassilis Orfanos                 

        Name: Vassilis Orfanos

        Capacity: Attorney in fact

         

         

Capacity: Attorney in fact

 

 

 

 

 

 

 

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EXHIBIT A: FINANCIAL STATEMENTS OF 31.12.2018
& CLOSING BALANCE SHEET OF COMPANY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

EXHIBIT B: UPDATED DISCLOSURE SCHEDULE

 

		1)	HELIOHRISI S.A.

 

		A)	Legal Due Diligence

		·	Board of Directors minutes 31/03/2012 (composition of the Board & representation)

		·	Board of Directors minutes 02/07/2012 (authorization for submission of documents with the tax office
of Athens)

		·	Board of Directors minutes 31/09/2012 (institution of company subsidiary at Alexandroupoli) Board
of Directors minutes 22/04/2013 (approval of payment to Thelmico)

		·	Board of Directors minutes 22/04/2013 (approval of payment to Restec Renewal)

		·	Board of Directors minutes 29/04/2013 (approval of issuance of bank check for the deposition at
company’s bank account at Proredit Bank)Board of Directors minutes 24/05/2013 (approval of financial accounts for fiscal
year 2012)

		·	Board of Directors minutes 28/06/2013 (approval of payment to SPI)

		·	Board of Directors minutes 9/07/2013 (approval of payment to Restec Renewal)Board of Directors
minutes 22/08/2013 (approval of payment to Thelmico)

		·	Board of Directors minutes 27/08/2013 (approval of payment to SPI)

		·	Board of Directors minutes 10/01/2014 (approval of payment to SPI & Thelmico)

		·	Board of Directors minutes 09/04/2014 (approval of payment to SPI & Thelmico)

		·	Board of Directors minutes 22/05/2014 (approval of financial accounts for fiscal year 2013)

		·	Board of Directors minutes 27/06/2014 (approval of payment to SPI)

		·	Board of Directors minutes 07/10/2014 (approval of payment to SPI & Thelmico)

		·	Board of Directors minutes 10/12/2014 (approval of bank transfer to company’s bank deposit
account)Board of Directors minutes 21/01/2015 (approval of payment to SPI & Thelmico)

		·	Board of Directors minutes 03/04/2015 (approval of payment to SPI & Thelmico)

		·	Board of Directors minutes 14/05/2015 (approval of financial accounts for fiscal year 2014)

		·	Board of Directors minutes 25/05/2015 (authorization for withdrawal from bank account)

		·	Board of Directors minutes 19/07/2015 (approval of payment to SPI)

		·	Board of Directors minutes 20/07/2015 (certification of share capital increase)

		·	Board of Directors minutes 08/09/2015 (authorization for submission of documents with the tax office)

		·	Board of Directors minutes 31/08/2015 (approval of payment to SPI & Thelmico)Board of Directors
minutes 09/10/2015 (composition of the Board & representation)

		·	Board of Directors Minutes 20/10/2016 (authorization for submission of documents with the tax office)

		·	Board of Directors minutes 3/03/2016 (approval of bank transfer to company’s bank account
at Procredit Bank)

		·	Board of Directors minutes 27/04/2016 (approval of payment to SPI & Thelmico)

		·	Board of Directors minutes 12/05/2016 (approval of payment to SPI & Thelmico)

		·	Board of Directors minutes 26/05/2016 (approval of bank transfer to company’s bank account
at Procredit Bank)

		·	Board of Directors minutes 27/05/2016 (approval of financial accounts for fiscal year 2015)

		·	Board of Directors minutes 31/07/2017 (approval of financial accounts for fiscal year 2016)

		·	Board of Directors Minutes 1/08/2017 (issuance of one provisional title for the number of shares
issued following the last 2 share capital increases) together with the new provisional share title for 31,031 shares

		·	Board of Directors Minutes 21/08/2017 (authorization for submission of documents with the tax office)

		·	Board of Directors Minutes 6/09/2017 (Approval of Framewrk Agreement – authorization for
the signing)

		·	Board of Directors Minutes 11/09/2017 (issuance of one provisional title for all shares issued
following all share capital increases)

		·	Board of Directors Minutes 26/09/2017 (approval of payment 1st installation of framework
agreement)

		·	Board of Directors Minutes 30/07/2018 (approval of financial accounts for fiscal year 2017)

 

 

 

 

    	 	6	 

     

    

 

		·	Shareholders’ Ordinary Meeting 30/06/2013 (approval of financial accounts for fiscal year
2012)

		·	Shareholders’ Ordinary Meeting 30/06/2014 (approval of financial accounts for fiscal year
2013)

		·	Shareholders’ Ordinary Meeting 30/06/2015 (GM convened but did not discuss the agenda and
agreed on a rescheduling)

		·	Shareholders’ Ordinary Meeting 14/07/2015 (approval of financial accounts for fiscal year
2014)

		·	Shareholders’ Ordinary Meeting 30/06/2016 (approval of financial accounts for fiscal year
2015)

		·	Shareholders’ Ordinary Meeting 4/09/2017 (approval of financial accounts for fiscal year
2016)

		·	Shareholders’ Ordinary Meeting 3/09/2018 (approval of financial accounts for fiscal year
2017)

 

		·	Shareholders’ Extraordinary Meeting 31/03/2012 (election of the new Board)

		·	Shareholders’ Extraordinary Meeting 31/03/2012 (change of company’s seat)Shareholders’
Extraordinary Meeting 21/04/2015 (share capital increase)

		·	Shareholders’ Extraordinary Meeting 09/10/2015 (election of the new Board)

		·	Shareholders’ Extraordinary Meeting 10/07/2017 (share capital increase)

 

		·	Publication from GEMI with prot. No 14828 dated 08/09/2015 (share capital increase)

		·	Publication from GEMI with prot. no 18343 and dated 20/10/2015 (election of the Board)

		·	Publication from GEMI with prot. no 10403 dated 1/02/2016 (financial accounts for fiscal year 2014)

		·	Publication from GEMI with prot. no 918651 dated 20/02/2019 (financial accounts for fiscal year
2016)Publication from GEMI with prot. no 18671 and dated 24/10/2016 (financial accounts for fiscal year 2015)

		·	GEMI Announcement with prot. no 10412 and dated 2/08/2017 (re amendment of Article 5-share capital)

		·	Publication from GEMI with prot. no 14837 and dated 8.09.2015 (share capital increase certification)Publication
from GEMI with prot. no 11232 and dated 25.08.2017 and Company’s Articles of Association and its recent Codified Articles
of Association 21/04/2015 (AMENDED)

		·	Lease Agreement dated 31/05/2012 (terminated)

		·	Court Certificates no 15430, 15431, 15432, 15433, 15434, 15435, 15436, 15437 dated 19/05/2017,
and 4083/18.05.2017

		·	Application to GEMI dated 05/07/2017 (correction of the distinctive title)

		·	GEMI certificate 376821.533683 dated 26.04.2017

		·	Prefectural Certificate about Administrative Fines with prot. no 4539 dated 7/07/2017

 

		·	Official Bulletin of the Government Gazette no 3631/29/05/2007 (registration of the incorporation
act)

		·	Official Bulletin of the Government Gazette no 1207/ 08/05/2012 (change of company’s Board
of Directors & representation)

		·	Official Bulletin of the Government Gazette no 7427/20/07/2012 (change of company’s seat)

		·	Official Bulletin of the Government Gazette no 2801/18.03.2014 (financial accounts for fiscal year
2012)

 

 

 

 

 

 

 

 

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		B)	Financial Due Diligence

 

		·	Balance 2015

		·	Balance 2016

		·	Balance 2017

		·	Balance Sheet 2016

		·	Lease Notary Deed 7.869/29/02/2010

		·	Sublease Agreement with Polygon-Telecommunications Surveys Constructions SA (02/01/2017)

		·	Fixed Costs 2009

		·	Income Tax Statement 2014

		·	Income Tax Statement 2015

		·	VAT Submission 2016 (January, February, March, April, May, June, July, August, September, October,
November, December)

		·	VAT Submission 2017 (January, February, March)

		·	Internet Banking (winbank) proof statement March 2017

		·	Internet Banking (winbank) proof Statement December 2016

		·	Facility management Agreement with I2E SA dated 01/05/2013

		·	Tax Certificate (expire 27/06/2017)

		·	IKA Certificate (expire 09/11/2017)

		·	IKA Certificate (expire 19/12/2017)

		·	Tax Certificate (expire 06/05/2017)

		·	Tax Certificate (expire 20/08/2017)

		·	Tax Certificate (expire 18/05/2019)

		·	IKA Certificate (expire 12/04/2019)

		·	Statement of economic data from business activity 2014

		·	Statement of economic data from business activity 2015

		·	Part-time employment contract APOSTOLOPOULOS GEORGIOS (FILE E9)

		·	List of Employees 2016 (FILE 4)

		·	Employment contract APOSTOLOPOULOS GEORGIOS 04/07/2013 (FILE 3)

		·	Insurance Contract no 11556854 (with a reference that it has been paid on 4.07.2017)

		·	RAE Statement 22/06/2012 (RAE decision no 566)

		·	Certificate from Hellenic Chambers of Commerce of Thessaloniki no 254732/21/06/2017 that expires
31/12/2017

		·	Agreement with 3PSECURITY 01/05/2013 for patrol services

		·	Agreement with INACCESS NETWORKS AE 02/06/2014 for the installation of the Insolar System for the
Control Center and Portal

		·	Agreement with IOANNIS AGNANTIARIS 01/10/2013 as Safety Administrator

		·	Asset registry

 

 

 

 

 

 

    	 	8	 

     

    

 

 

		C)	Licenses, documents, books and records

 

		1.	Generation Licence

 

	1.1 Generation Licence, Ministerial Decision with Ref. No Δ6/Φ16.275/οικ. 5738/ 29-3-2010 of the Minister of Environment Energy and Climate Change
	Relevant Documents	
        (a)       
        Copies of abstracts of the two (2) daily newspapers of Athens “H AYGI” issue 11105 dated 13-5-2011 p. 21 and
        ‘GOAL’ issue 11-5-2011.

        (b)      
        RAE’s positive opinion No 454/18-1-2010 addressed to the Ministry of Environment Energy and Climate Change;

        (c)       
        RAE’s negative opinion no 315/2007 addressed to the Ministry of Development.

        (d)      
        Company’s Application with ref no RAE ΑΘ -00456 (I-71031)/22-4-2008.

        (e)       
        RAE’s Decision no 2314/4-9-2008 addressed to the Ministry of Development.

        (f)        
        RAE’s Decision no 2377/22-9-2008 addressed to the Ministry of Development.

        (g)      
        Topographical Plan of the Engineer Polymeros Mouloudis dated May 2007, certified by RAE on 27-4-2010 with ref. no ΟΑ
        – 01189.

         

        (h)      
        Letter issued by RAE under ref no O-48032/21-7-11 pursuant to the Company’s application (submitted to RAE on 18-5-11
        with RAE ref no I-138021)

        (i)        
        1st semestrial report for the supervision of the Generation Licence dated 15-10-10, submitted to RAE under Ref
        No I -137258 on 4-5-2011. A copy of the submitted application for the issuance of an Installation Licence is attached.

        (j)        
        2nd semestrial report for the supervision of a project with Installation Licence dated 17-5-2011, submitted to
        RAE under Ref No I -138021 on 18-5-2011.

        (k)      
        3rd semestrial report for the supervision of a Project with Installation Licence dated 13-1-12, submitted to
        RAE under Ref No I -149350 on 16-1-2012.

        (l)        
        3rd (as referred in the report) semestrial report for the supervision of a Project with Installation Licence
        dated 3-5-2012.

        (m)    
        Copy of an abstract of newspaper “Goal” issue dated 11-5-2011 and “Avgi” issue no 11105 dated 13-5-2011.

         

	1.2 Decision 277/2012 of RAE for the amendment of the Company’s Generation Licence

 

 

 

 

 

 

 

 

 

 

 

    	 	9	 

     

    

 

 

2.       Installation
Licence

 

	2.1   Installation Licence, Decision with Ref. No 5484/Φ Φ/Β.13/ 15-10-2010 of the Director of the Directorate for Waters of the Prefecture East Macedonia – Thrace.    

                                                                                 

	  Relevant Documents 	
        (i)      
        Non signed copy of the application filed by Energeiakes Technologies Corp. for the issuance of the Installation Licence
        on behalf of the Company dated 19-8-2008.

         

        (ii)   
         Abstracts of the newspapers Eparxiakos Typos, p. 10, issue dated 22-10-2010 and Eleftheros, p. 37, issue dated 29-10-2010

         

	2.2. Decision 7332/Φ Φ/Β.13/10-4-2012 of the Department of Technical Support and Natural Resources of East Macedonia and Trace, Directorate of Technical Control for the amendment of the Company’s Installation Licence

 

 

3. Environmental Approvals and Consents

 

	3.1 Decision with Ref No Π- 1079/09 issued by the Director of the Directorate of Environment Prefectural Department of Evros, Prefectural Self Government of Evros – Rodopi for the Approval of the Environmental Terms of the Project
	Relevant Documents	
        (a)     
        Opinion with ref no π-500/3-4-2012 of the Directorate of Environment and Urban Planning, Department of Environment and
        Water Economy of Evros.

        (b)    
        Letter with ref. no. Π-1082οικ/10-11-2009 issued by the Directorate of Environment of the Prefecture
        Department of Evros, Prefecture Self Government of Evros – Rodopi.

        (c)     
        Opinion of the Ministry of Culture, 15th Directorate of Byzantine Antiquities with ref. no 900/21-6-2007.

        (d)    
        Opinion of the Ministry of Culture, ΙΘ’ Directorate of Prehistorical and Classical Antiquities with ref.
        no. 1942/28-6-2007.

        (e)     
        Opinion of the Ministry of Culture, Directorate of Contemporary Monuments of Central Macedonia with ref. no 1807/15-6-2007.

        (f)      
        Opinion of the Forest Authority of Soufli, Directorate of Forests – Evros with ref. no 3925/24-7-2007.

        (g)    
        Certificate of the Directorate of Urban Planning and Environment, Prefecture Department of Evros with ref. no I-2277/07
        dated 25-5-2007.

         

	3.2  Decision with ref. no. 20963/1357/2-11-2009 issued by the Department of Environmental and Urban Planning of the Directorate of Environment and Urban Planning of the District of East Macedonia and Thrace (Preliminary Environmental Impact Study).

                                                                                 

	Relevant documents 	
        (a)     
        Abstract of the newspaper Eleftheri Thraki, issue 14196/5-12-2009.

        (b)    
         Opinion of the Civil Aviation Service, General Directorate for Air Transportation, Directorate of Airports, Department
        of Maps and Encumbrances of the Ministry of Communication and Transportation, with Ref No Δ3/Δ/22653/5329, dated 18-6-2007.

        (c)     
        Opinion of the Directorate of Tourism of East Macedonia and Thrace, with ref. no. 458/24-3-2008.

        (d)    
        Opinion of the General Authority for National Defence with ref. no Φ.100.1/87141σ.8430/20-9-2007.

        (e)     
        Opinion of the Directorate of Certification of the General Directorate of Communications of the Ministry of Transportation
        and Communications with ref. no 39094 dated 16-7-2007

        (f)      
        Decision of the Prefectural Urban Planning Committee (ΝΕΧΩΠ) no 67/2009 dated 26-10-2009.

        (g)    
        Copy of the Preliminary Impact Study submitted by the Company.

         

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

4. Other documents

 

	4.1 Approval of Small Scale Works no 351/27-1-2012 (execution date 8-2-2012)

                                                                                 

	Relevant Documents	(a) Attached to the Approval of Small Scale Works are copies legally certified by the Urban Planning Authority of Alexandroupolis: (a) of the Topographical Chart of the engineer Maria Anna Mavromati dated January 2012 and (b) of a coverage plan (διάγραμμα κάλυψης) of the same engineer.

                                                                                 

	4.2 Act for the characterization of Land with Ref No 3398/24-5-2007 issued by the Soufli Forest Authority, Directorate of Forest of Evros.

                                                                                 

	Relevant Documents 	Certificate with the ref no 5090/28-8-2007 issued by the Soufli Forest Authority, Directorate of Forest of Evros

                                                                                 

	4.3 Agreement for the construction of Grid Connection Works dated 20-12-2012 between PPC S.A. and the Company

                                                                                 

	Relevant Documents	
        Connection
        Offer issued by HTSO addressed to the Company with ref. no 10371/31-8-2010, valid for four (4) years from the date of issuance.

        Letter of Acceptance of Connection Terms
        of the PV Plant of the Company issued by the Company and addressed to HTSO dated 7-9-2010

        Receipt
        of payment No 922830/23-12-2010 for the amount of Connection Terms (i.e. 35.000,00 euros plus corresponding VAT 23% 8.050,00 euros,
        in total 43.050,00 euros) to PPC by the Company.

         

	4.4 Power Purchase Agreement no. 4998 dated 24-1-2011 between HTSO S.A. and the Company

                                                                                 

	Relevant Documents	
        Letter issued by HTSO with ref. no 168
        dated 10-1-2012

        Letter issued by the Company addressed
        to HTSO dated 13-12-2010

         

 

 

 

 

 

 

 

    	 	11	 

     

    

 

 

EXHIBIT C: BANK CHEQUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	12a1subscriptionagreemente

                                                                                                          SUBSCRIPTION AGREEMENT         This Subscription Agreement (this “Agreement”) is dated as of February 11, 2019 (the   “Effective Date”), among Genocea Biosciences, Inc., a Delaware corporation (the “Company”),   and each purchaser identified on the signature pages hereto (each a “Purchaser” and collectively   the “Purchasers”).          WHEREAS, the Company and the Purchasers are executing and delivering this Agreement   in  reliance  upon  the  exemption  from  securities  registration  afforded  by  Section  4(a)(2)  of  the   Securities  Act  of  1933,  as  amended  (the  “Securities Act”),  and  Rule  506  of  Regulation  D  as   promulgated by the United States Securities and Exchange Commission (the “Commission”) under   the Securities Act.          WHEREAS, each Purchaser wishes to purchase, and the Company wishes to sell, upon the  terms  and  conditions  stated  in  this  Agreement,  (i) that  aggregate  number  of  Initial  Closing  Common Shares (as defined below), and, if applicable, upon a Second Closing (as defined below),  the Second Closing Shares (as defined below) (which aggregate amount for all Purchasers together  shall be 25,599,979 Initial Closing Common Shares, and 51,352,853 Second Closing Shares for  an aggregate of 76,952,832 shares of Common Stock upon a Second Closing (as defined below)  and shall be collectively referred to herein as the “Shares”), (ii) at the Initial Closing (as defined  below) a warrant to acquire up to that number of additional shares of Common Stock set forth  opposite such Purchaser’s name on Exhibit A (the “Initial Closing Warrants”), in substantially  the form attached hereto as Exhibit C (as exercised, collectively, the “Initial Closing Warrant  Shares”) and (iii) at the Initial Closing (as defined below) a pre-funded warrant to acquire up to  that number of additional shares of Common Stock set forth opposite such Purchaser’s name on  Exhibit A (the “Pre-Funded Warrants” and collectively with the Initial Closing Warrants, the  “Warrants”), in substantially the form attached hereto as Exhibit D (as exercised, collectively, the  “Pre-Funded  Warrant Shares”  and  together  with  the  Initial  Closing  Warrant  Shares,  the  “Warrant Shares”). The Shares, the Warrants and the Warrant Shares collectively are referred to  herein as the “Securities”.         WHEREAS, in connection with the offering and sale of the Securities, the Company has  entered into an engagement letter dated January 18, 2019, as amended on January 23, 2019 with  Cantor Fitzgerald & Co. (the “Placement Agent”).         NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement,  and  for  other  good  and  valuable  consideration  the  receipt  and  adequacy  of  which  are  hereby  acknowledged, the Company and each Purchaser agree as follows:   1.    DEFINITIONS         1.1   Definitions.  In  addition  to  the  terms  defined  elsewhere  in  this  Agreement,  the  following terms have the meanings set forth in this Section 1.1:         “Applicable VWAP”  means  the  daily  volume  weighted-average  price  of  the  Common  Stock on the Trading Market on which the Common Stock is then listed or quoted as reported by  Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New                                         1.      74109921_9   74109921_16  

 

   York City time)) from the date the Company announces topline data from Part A of its Phase 1/2a  clinical  trial  for  GEN-009  (the  “Data”)  through  the  date  the  Company  exercises  its  option  to  proceed with the Second Closing pursuant to Section 2.3 of this Agreement (the “Exercise Date”).         “Common Stock” means the common stock of the Company, $0.001 par value per share,  and any other class of securities into which such securities may hereafter be reclassified or changed  into.         “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules  and regulations promulgated thereunder.         “GAAP” means U.S. generally accepted accounting principles consistently applied.         “Governmental Entity” shall mean any national, federal, state, county, municipal, local or  foreign  government,  or  any  political  subdivision,  court,  body, agency  or  regulatory  authority  thereof,  and  any  person  exercising  executive,  legislative,  judicial,  regulatory,  taxing  or  administrative functions of or pertaining to any of the foregoing.         “Initial Closing” means the initial closing of the purchase and sale of the Initial Closing  Common  Shares  (as  defined  below)  and  the  Warrants  on  the  Initial  Closing  Date  pursuant  to  Section 2.1 of this Agreement.         “Initial Closing Date” means February 14, 2019.         “Initial Common Closing Price” means $0.4713 per share.         “Investment Company Act” means the Investment Company Act of 1940, as amended.         “Material Adverse Effect” means a circumstance that (i) could reasonably be expected to  have a material adverse effect on the performance of this Agreement or the consummation of any  of the transactions contemplated hereby or (ii) could reasonably be expected to have a material  adverse effect on the condition (financial or otherwise), prospects, earnings, business or properties  of the Company.         “Optional Closing” means the optional closing of the purchase and sale of the Optional  Closing Common Shares (as defined below) on the Optional Closing Date pursuant to Section 2.3  of this Agreement.         “Optional Closing Date” means the date that is the second Trading Day following the  Second Closing Date.         “Registration Statement” means a registration statement or registration statements of the  Company filed under the Securities Act pursuant to Section 4 hereof.         “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities  Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter  adopted by the Commission having substantially the same effect as such Rule.                                         2.      74109921_16  

 

           “Second Closing” means the second closing of the purchase and sale of the Second Closing   Shares (as defined below) on the Second Closing Date pursuant to Section 2.3 of this Agreement.          “Second Closing Date”  means  the  date  that  is  the  second  Trading  Day  following  the   Exercise Date, such Exercise Date to be no later than fourteen Trading Days after the Company   publicly releases the Data.          “Second Closing Purchase Price” means an amount equal to the greater of (i) the Initial  Common Closing Price (as adjusted for any dividends, combinations, stock splits, recapitalizations  and the like after the Effective Date) and (ii) 0.80 multiplied by the Applicable VWAP.         “Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO of the  Exchange Act, but shall be deemed to not include the location and/or reservation of borrowable  shares of Common Stock.         “Trading Day” means a day on which the Common Stock is traded on a Trading Market.          “Trading Market”  means  the  following  markets  or  exchanges  on  which  (and  if)  the   Common Stock is listed or quoted for trading on the date in question: the NYSE American; The   Nasdaq Capital Market; The Nasdaq Global Market; The Nasdaq Global Select Market; or the   New York Stock Exchange.          “Transaction Documents” means this Agreement, the Warrants and any other documents   or  agreements  executed  and  delivered  to  the  Purchasers  in  connection  with  the  transactions   contemplated hereunder.          “Warrant Shares” means the shares of Common Stock issuable upon exercise of each   Warrant.    2.    PURCHASE AND SALE         2.1   Initial Closing.                (a)   At the Initial Closing, upon the terms set forth herein, the Company hereby   agrees  to  issue  and  sell  to  each  Purchaser,  and  each  Purchaser agrees  to  purchase  from  the   Company, severally and not jointly, the number of shares of Common Stock (the “Initial Closing   Common Shares”) set forth opposite such Purchaser’s name on Exhibit A hereto, at a purchase   price equal to the Initial Common Closing Price per share of Common Stock.                 (b)   At the Initial Closing, upon the terms set forth herein, the Company hereby   agrees  to  issue  and  sell  to  each  Purchaser,  and  each  Purchaser agrees  to  purchase  from  the   Company, severally and not jointly, an Initial Closing Warrant exercisable for a number of Initial   Closing  Warrant  Shares  set  forth  opposite  such  Purchaser’s  name on Exhibit  A hereto, at a  purchase  price  equal  to  $0.125  per  Initial  Closing  Warrant  Share  (or  $0.03125  per  0.25  of  a  Warrant Share).               (c)   At the Initial Closing, upon the terms set forth herein, the Company hereby  agrees  to  issue  and  sell  to  Biotechnology  Value  Fund  L.P.  or  one  or  more  of  its  affiliates                                         3.         74109921_16  

 

     (collectively, “BVF”), and BVF agrees to purchase from the Company, a Pre-Funded Warrant at   a purchase price equal to the Initial Common Closing Price per share of Common Stock.               (d)    At the Initial Closing, each Purchaser shall deliver to the Company via wire   transfer immediately available funds equal to its aggregate purchase price set forth opposite such   Purchaser’s  name  on Exhibit  A  hereto  and  the  Company  shall deliver  to  each  Purchaser  its   respective Securities and the other items set forth in Section 2.2 of this Agreement deliverable at   the Initial Closing on the Initial Closing Date. The Initial Closing shall occur at 10:00 a.m. (New   York City Time) on February 14, 2019 or such other time and location as the parties shall mutually   agree.          2.2   Deliveries; Initial Closing Conditions.                (a)   At the Initial Closing, the Company will deliver or cause to be delivered to   each Purchaser certificate(s) or book-entry shares representing the Common Stock, purchased by   such Purchaser, registered in the Purchaser’s name. Such delivery shall be against payment of the   purchase price therefor by the Purchaser by wire transfer of immediately available funds to the   Company in accordance with the Company’s written wiring instructions.                  (b)   At the Initial Closing, the Company will deliver or cause to be delivered to   each Purchaser the Warrant purchased by such Purchaser registered in the Purchaser’s name. Such   delivery shall be against payment of the purchase price therefor by the Purchaser by wire transfer   of immediately available funds to the Company in accordance with the Company’s written wiring   instructions.                (c)   The  respective  obligations  of  the  Company,  on  the  one  hand,  and the   Purchasers, on the other hand, hereunder in connection with the Initial Closing are subject to the   following conditions being met:                      (i)   the accuracy in all material respects on the Initial Closing Date of   the representations and warranties contained herein (unless made as of a specified date therein) of   the Company (with respect to the obligations of the Purchasers) and the Purchasers (with respect   to the obligations of the Company);                       (ii)  all  obligations,  covenants  and  agreements  of  the  Company  (with   respect to the obligations of the Purchasers) and the Purchasers (with respect to the obligations of   the Company) required to be performed at or prior to the Initial Closing Date shall have been   performed in all material respects;                      (iii) Purchasers shall have received a certificate of the Secretary of the   Company (a “Secretary’s Certificate”), dated as of the Initial Closing Date in form and substance   reasonably satisfactory to the Purchasers;                      (iv)  Purchasers  shall  have  received  a  certificate  signed  by  the  Chief   Executive Officer of the Company (an “Officer’s Certificate”), dated as of the Initial Closing Date  in form and substance reasonably satisfactory to the Purchasers; and                                          4.         74109921_16  

 

                       (v)   Purchasers shall have received an opinion of Ropes & Gray LLP,   counsel for the Company (“Company Counsel”), dated as of the Initial Closing Date, in a form   reasonably satisfactory to the Purchasers.          2.3   Second Closing.                (a)   Following  the  Company’s  distribution  of  the  Second  Closing  Notice  (as   defined  below),  at  the  Second  Closing  (which,  for  the  avoidance  of  doubt,  shall  occur  on  the   Second Closing Date), upon the terms set forth herein, the Company hereby agrees to issue and   sell to each Purchaser, and each Purchaser agrees to purchase from the Company, severally and   not jointly, all or a portion of a number of shares of Common Stock or Pre-Funded Warrants (such  securities, collectively, the “Second Closing Shares”) in an aggregate purchase amount set forth  opposite such Purchaser’s name on Exhibit B hereto, at a purchase price per share equal to the  Second Closing Purchase Price. The Company shall provide each Purchaser written notice of the  amount  of  such  Purchaser’s  Second  Closing  Shares  as  promptly  as  possible  following  the  Company’s  calculation  of  the  Second  Closing  Purchase  Price.  The  sales  made  at  the  Second  Closing shall be made on the terms and conditions set forth in this Agreement, provided that (i)  the representations and warranties of the Company set forth in Section 3.1 hereof shall speak only  as  of  the  Initial  Closing  Date,  and  (ii)  the  representations  and  warranties  of  the  Purchasers  participating in the Second Closing set forth in Section 3.2 hereof shall speak as of the Second   Closing Date.                (b)   At the Second Closing, each Purchaser shall deliver to the Company via   wire transfer immediately available funds equal to its aggregate purchase price for the Second   Closing Shares and the Company shall deliver to each Purchaser certificate(s) or book-entry shares   representing its respective Second Closing Shares.                (c)   Following the distribution of the Second Closing Notice and in the event   that a Material Adverse Effect has not occurred, in the event that a Purchaser fails to purchase at   the Second Closing at least 50% of the total number of Second Closing Shares required to be   purchased by such Purchaser pursuant to this Section 2.3 (any such Purchaser being referred to  herein as a “Non-Participating Purchaser”), then the initial Warrant held by such Purchaser, to   the extent not exercised prior to the Second Closing, shall automatically terminate and be of no   further force or effect. The aforementioned forfeiture of the Warrant shall be the sole recourse of   the Company for any failure of a Purchaser to purchase all of the Second Closing Shares required   to be purchased at the Second Closing.                 (d)   If the Company elects to offer additional shares of Common Stock to the   Purchasers in an amount greater than the aggregate Second Closing Shares, the Purchasers shall   have the option, but not the obligation, to purchase, on a pro rata basis, such additional shares of   Common Stock (the “Optional Closing Common Shares”) at a price per share equal to the Second   Closing  Purchase  Price.  Each  Purchaser’s  “pro  rata  share”  of  the  Optional  Closing  Common   Shares shall be equal to the product of, rounded down to the nearest whole share, the aggregate   number of Optional Closing Common Shares multiplied by the quotient of (i) (A) the total number   of  shares  of  Common  Stock  or  shares  issuable upon  the  exercise of  the  Pre-Funded  Warrants   previously purchased by such Purchaser at the Initial Closing and Second Closing, divided by (B)   the total number of shares of Common Stock and shares issuable upon the exercise of the Pre-                                        5.         74109921_16  

 

   Funded Warrants previously purchased by all Purchasers at the Initial Closing and Second Closing.  The  Company  shall  provide  each  Purchaser  written  notice  of  the amount  of  such  Purchaser’s  option to purchase its Optional Closing Common Shares as promptly as possible following the  Second Closing Date. The sales made at the Optional Closing shall be made on the terms and  conditions set forth in this Agreement, provided that (i) the representations and warranties of the  Company set forth in Section 3.1 hereof shall speak only as of the Initial Closing Date, and (ii) the  representations and warranties of the Purchasers participating in the Optional Closing set forth in  Section 3.2 hereof shall speak as of the Optional Closing Date.               (e)   The  respective  obligations  of  the  Company,  on  the  one  hand,  and the  Purchasers, on the other hand, hereunder in connection with the Second Closing and the Optional  Closing are subject to the following conditions being met:                     (i)   the accuracy in all material respects on the Second Closing Date or  the Optional Closing Date, as applicable, of the representations and warranties contained herein  (unless made as of a specified date therein) of the Company (with respect to the obligations of the  Purchasers) and the Purchasers (with respect to the obligations of the Company);                      (ii)  all  obligations,  covenants  and  agreements  of  the  Company  (with  respect to the obligations of the Purchasers) and the Purchasers (with respect to the obligations of  the Company) required to be performed at or prior to the Second Closing Date or the Optional  Closing Date, as applicable, shall have been performed in all material respects;                     (iii) Purchasers shall have received a Secretary’s Certificate, dated as of  the  Second  Closing  Date  or  the Optional  Closing  Date,  as  applicable,  in  form  and  substance  reasonably satisfactory to the Purchasers;                     (iv)  Purchasers shall have received an Officer’s Certificate, dated as of  the  Second  Closing  Date  of  the Optional  Closing  Date,  as  applicable,  in  form  and  substance  reasonably satisfactory to the Purchasers;                     (v)   Purchasers  shall  have  received  an  opinion  of  Company  Counsel,  dated  as  of  the  Second  Closing  Date  or  the  Optional  Closing  Date,  as  applicable,  in  a  form  reasonably satisfactory to the Purchasers;                      (vi)  Purchasers shall have timely received the Second Closing Notice or  the Optional Closing Notice, as applicable; and                      (vii) No Material Adverse Effect has occurred.               (f)   Notwithstanding anything set forth in this Agreement to the contrary, if a  majority of the board of directors of the Company do not determine that the Data warrants further  clinical development of GEN-009 or otherwise decide not to proceed with the Second Closing, the  Company  shall  provide  the  Purchasers  with  written  notice  signed  by  the  Company’s  Chief  Executive  Officer  or  any  Senior  Vice  President  of  its  determination  and  related  election  to  consummate  or  not  to  consummate  the  Second  Closing  (the  “Second Closing Notice”)  or  the  Optional Closing (the “Optional Closing Notice”).  In the event the Second Closing shall not occur                                        6.      74109921_16  

 

     and the Company’s obligation to issue and sell the Second Closing Shares to each Purchaser shall   automatically terminate and be of no further force or effect and each Purchaser’s obligation to   purchase the Second Closing Shares shall terminate and be of no further force or effect; provided   that the Company shall make such election within fourteen Trading Days after receiving the Data.   For the avoidance of doubt, the Company shall not be permitted to proceed with the Optional   Closing it if does not elect to proceed with the Second Closing.           2.4   Second Closing Shortfall Closing.                (a)   In the event (i) the Second Closing occurs and (ii) all Second Closing Shares   are not purchased at the Second Closing by the Purchasers pursuant to Section 2.3 above, the  Company shall, within five Trading Days following the Second Closing, notify each Purchaser  that is not a Non-Participating Purchaser (each, a “Fully Participating Purchaser”) in writing  (such written notice, the “Shortfall Closing Notice”) of the total number of Second Closing Shares  that were not purchased at the Second Closing, and each Fully Participating Purchaser shall have  the right, but not the obligation, to purchase at a closing (the “Second Shortfall Closing”) any  Second  Closing  Shares  not  purchased  by  the  Non-Participating  Purchasers  (such  Shares,  collectively,  the  “Unsubscribed Shares”),  at  a  purchase  price  per  share  equal  to  the  Second  Closing Purchase Price. The Second Shortfall Closing shall be held on the date that is ten Trading  Days following delivery of the Shortfall Closing Notice, or if such date is not a business day, then  on the next business day (the date on which the Second Shortfall Closing actually occurs, the  “Second Shortfall Closing Date”). Each Fully Participating Purchaser may exercise its right to  participate in the Second Shortfall Closing by delivering written notice to the Company thereof  within five days following delivery to the Fully Participating Purchasers of the Second Shortfall  Closing Notice, which notice shall specify the number of Unsubscribed Shares that such Fully  Participating Purchaser is electing to purchase at the Second Shortfall Closing (the “Unsubscribed  Shares Notice”). To the extent the Fully Participating Purchasers collectively elect to purchase  more than the available Unsubscribed Shares, the Unsubscribed Shares shall be allocated among  the Fully Participating Purchasers on a pro rata basis. For purposes of this section, each Fully  Participating Purchaser’s “pro rata share” of the Unsubscribed Shares shall be equal to the product  of, rounded down to the nearest whole share,                     (i)   the  aggregate  number  of  Unsubscribed  Shares  multiplied  by  the  quotient of (i) (A) the total number of shares of Common Stock previously purchased by such  Fully Participating Purchaser at the Second Closing, divided by (B) the total number of shares of  Common Stock previously purchased by all Fully Participating Purchasers at the Second Closing;  provided, however,  that  no  Fully  Participating  Purchaser  shall  be  required  to  purchase  more  Unsubscribed Shares than such Fully Participating Purchaser indicated in its Unsubscribed Shares  Notice (such difference, the “Cut-back Securities”). To the extent any Cut-back Securities remain,  such Cut-back Securities shall be offered to the remaining Fully Participating Purchasers, which   shall be offered to such remaining Fully Participating Purchasers in a manner consistent with this   Section  2.4.  The  sales  made  at  the  Second  Shortfall  Closing  shall  be  made on the terms and   conditions set forth in this Agreement, provided that (i) the representations and warranties of the   Company set forth in Section 3.1 hereof shall speak only as of the Initial Closing Date, and (ii) the   representations and warranties of the Fully Participating Purchaser participating in the Second                                          7.         74109921_16  

 

     Shortfall Closing set forth in Section 3.2 hereof shall speak as of the Second Shortfall Closing  Date.               (b)   Notwithstanding anything set forth in Section 2.4(a), no Fully Participating  Purchaser shall have the right to purchase Unsubscribed Shares at the Second Shortfall Closing to  the extent that such Fully Participating Purchaser (together with its affiliates) would beneficially  own a number of shares of Common Stock that would result in a change of control as set forth in  Nasdaq Listing Rule 5635(b) immediately after giving effect to the issuance of shares of Common  Stock pursuant to the Second Shortfall Closing.               (c)   At the Second Shortfall Closing, each Fully Participating Purchaser shall  deliver  to  the  Company  via  wire  transfer  immediately  available funds  equal  to  its  aggregate  purchase price for all Unsubscribed Shares being purchased by such Fully Participating Purchaser  and the Company shall deliver to each Fully Participating Purchaser certificate(s) representing its  respective Unsubscribed Shares.         2.5   Optional Shortfall Closing               (a)   In the event (i) the Optional Closing occurs and (ii) all Optional Closing  Shares are not purchased at the Optional Closing by the Purchasers pursuant to Section 2.3 above,  the  Company  shall,  within  five  Trading  Days  following  the  Optional  Closing,  notify  each  Purchaser that participated in the Optional Closing (each, a “Fully Participating Optional Closing  Purchaser”) in writing (such written notice, the “Optional Shortfall Closing Notice”) of the total  number of Optional Closing Common Shares that were not purchased at the Optional Closing, and  each Fully Participating Optional Closing Purchaser shall have the right, but not the obligation, to  purchase at a closing (the “Optional Shortfall Closing”) any Optional Closing Common Shares   not purchased by the Non-Participating Optional Closing Purchasers (such Shares, collectively,   the “Unsubscribed Optional Shares”), at a purchase price per share equal to the Second Closing   Purchase Price. The Optional Shortfall Closing shall be held on the date that is ten Trading Days   following delivery of the Optional Shortfall Closing Notice, or if such date is not a business day,   then on the next business day (the date on which the Optional Shortfall Closing actually occurs,   the “Optional Shortfall Closing Date”). Each Fully Participating Optional Closing Purchaser may   exercise its right to participate in the Optional Shortfall Closing by delivering written notice to the   Company thereof within five days following delivery to the Fully Participating Optional Closing   Purchasers of the Optional Shortfall Closing Notice, which notice shall specify the number of   Unsubscribed Optional Shares that such Fully Participating Optional Closing Purchaser is electing   to purchase at the Optional Shortfall Closing (the “Unsubscribed Optional Shares Notice”). To   the extent the Fully Participating Optional Closing Purchasers collectively elect to purchase more   than  the  available  Unsubscribed  Optional  Shares,  the  Unsubscribed  Optional  Shares  shall  be   allocated  among  the  Fully  Participating  Optional  Closing  Purchasers  on  a  pro  rata  basis.  For   purposes  of  this  section,  each  Fully  Participating  Optional Purchaser’s “pro  rata  share”  of the   Unsubscribed Optional Shares shall be equal to the product of, rounded down to the nearest whole   share,                      (i)   the aggregate number of Unsubscribed Optional Shares multiplied   by the quotient of (i) (A) the total number of shares of Common Stock previously purchased by   such Fully Participating Purchaser at the Second Closing, divided by (B) the total number of shares                                         8.         74109921_16  

 

     of  Common  Stock  previously  purchased  by  all  Fully  Participating  Optional  Purchasers  at  the   Second  Closing; provided, however,  that  no  Fully  Participating Optional  Purchaser  shall  be   required to purchase more Unsubscribed Optional Shares than such Fully Participating Optional   Purchaser indicated in its Unsubscribed Optional Shares Notice (such difference, the “Cut-back  Optional Securities”).  To  the  extent  any  Cut-back  Optional  Securities  shall  be  offered  to  the  remaining Fully Participating Optional Purchasers, which shall be offered to such remaining Fully  Participating Optional Purchasers in a manner consistent with this Section 2.5. The sales made at  the  Optional  Shortfall  Closing  shall  be  made  on  the  terms  and  conditions  set  forth  in  this  Agreement,  provided  that  (i)  the  representations  and  warranties  of  the  Company  set  forth  in  Section 3.1 hereof shall speak only as of the Initial Closing Date, and (ii) the representations and  warranties of the Fully Participating Optional Purchaser participating in the Optional Shortfall  Closing set forth in Section 3.2 hereof shall speak as of the Optional Shortfall Closing Date.               (b)   Notwithstanding anything set forth in Section 2.4(a), no Fully Participating  Optional Purchaser shall have the right to purchase Unsubscribed Optional Shares at the Optional  Shortfall Closing to the extent that such Fully Participating Optional Purchaser (together with its  affiliates) would beneficially own a number of shares of Common Stock that would result in a  change of control as set forth in Nasdaq Listing Rule 5635(b) immediately after giving effect to  the issuance of shares of Common Stock pursuant to the Optional Shortfall Closing.               (c)   At  the  Optional  Shortfall  Closing,  each  Fully  Participating  Optional  Purchaser shall deliver to the Company via wire transfer immediately available funds equal to its  aggregate purchase price for all Unsubscribed Optional Shares being purchased by such Fully  Participating  Optional  Purchaser  and  the  Company  shall  deliver to  each  Fully  Participating  Optional Purchaser certificate(s) representing its respective Unsubscribed Optional Shares.   3.    REPRESENTATIONS AND WARRANTIES          3.1   Representations and Warranties of the Company.  Assuming the accuracy of   the representations and warranties of the Purchasers set forth in Section 3.2 of this Agreement and   except as set forth in the SEC Reports (defined below), which disclosures serve to qualify these   representations  and  warranties  in  their  entirety,  the  Company  represents  and  warrants  to  the   Purchasers and the Placement Agent that the statements contained in this Section 3.1 are true and   correct as of the date of the Initial Closing Date:          (a)   The Company was not and is not an Ineligible Issuer (as defined in Rule 405),  without taking account of any determination by the Commission pursuant to Rule 405 that it is not  necessary that the Company be considered an Ineligible Issuer.         (b)   The Company has been duly incorporated and is validly existing as a corporation  in good standing under the laws of the jurisdiction in which it is chartered or organized with full  corporate power and authority to own or lease, as the case may be, and to operate its properties  and conduct its business, and to execute and deliver this Agreement and the Warrants, to be dated   as of the Initial Closing Date and entered into by and between the Company and Computershare   Trust Company, N.A. (the “Warrant Agent”). The Company is duly qualified to do business as a  foreign corporation and is in good standing under the laws of each jurisdiction which requires such  qualification. The Company has no subsidiaries.                                         9.         74109921_16  

 

         (c)   As  of  the  date  hereof,  the  authorized  capital  stock  of  the  Company  consists  of  275,000,000 shares of capital stock, of which 250,000,000 are designated as Common Stock and  25,000,000 are designated as preferred stock, $0.001 par value per share. As of December 31,  2018: (i) 86,771,175 shares of Common Stock were issued and outstanding; (ii) 1,635 shares of  preferred stock was issued and outstanding; (iii) 8,012,824 shares of Common Stock were issuable  (and such number was reserved for issuance) upon exercise of options to purchase Common Stock  outstanding as of such date; and (iv) 29,342,564 shares of Common Stock were issuable (and such  number  was  reserved  for  issuance)  upon  exercise  of  warrants  to purchase  Common  Stock  outstanding as of such date.         (d)   The outstanding shares of Common Stock have been duly and validly authorized  and issued and are fully paid and nonassessable; Shares and the Warrant Shares have been duly  and validly authorized and, when issued and delivered to and paid for by the Purchasers pursuant  to this Agreement, will be fully paid and nonassessable; the certificates for the securities are in  valid form; the holders of outstanding shares of capital stock of the Company are not entitled to  preemptive or other rights to subscribe for the Securities, except for any such rights as have been  effectively waived or complied with; and, except as set forth in Section 3.1(c) above, no options,  warrants or other rights to purchase, agreements or other obligations to issue, or rights to convert  any obligations into or exchange any securities for, shares of capital stock of or ownership interests  in the Company are outstanding.         (e)   The Warrants have been duly authorized by the Company and, when executed and  delivered by the Company, will be valid and binding agreements of the Company, enforceable  against the Company in accordance with their terms, except as the enforcement thereof may be  limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or  affecting the rights and remedies of creditors or by general equitable principles; the Warrant Shares  have been duly authorized and validly reserved for issuance upon exercise of the Warrants; the  Warrant Shares, when issued and delivered upon exercise of the Warrants in accordance therewith,  will be validly issued, fully paid and nonassessable, and the issuance of the Warrant Shares is not  subject to any preemptive rights, rights of first refusal or other similar rights to subscribe for or  purchase the Warrant Shares.         (f)   This Agreement has been duly authorized, executed and delivered by the Company.         (g)   The Company is not and, after giving effect to the offering and sale of the Securities  and the application of the proceeds as described in Section 5.4 of this Agreement, will not be an  “investment company” as defined in the Investment Company Act of 1940, as amended.         (h)   No  consent,  approval,  authorization,  filing  with  or  order  of  any  court  or  governmental agency or body is required in connection with the transactions contemplated herein,  except as may be required under the Securities Act, blue sky laws of any jurisdiction in connection  with the purchase of the Securities by the Purchasers.         (i)   Neither the issue and sale of the Securities, nor the consummation of any other of  the transactions herein contemplated nor the fulfillment of the terms hereof, will conflict with,  result in a breach or violation of, or imposition of any lien, charge or encumbrance upon any  property or assets of the Company pursuant to, (i) the charter or by-laws of the Company, (ii) the                                       10.      74109921_16  

 

     terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or   other agreement, obligation, condition, covenant or instrument to which the Company is a party or  bound or to which its property is subject, or (iii) any statute, law, rule, regulation, judgment, order  or  decree  applicable  to  the  Company  of  any  court,  regulatory  body,  administrative  agency,  governmental body, arbitrator or other authority having jurisdiction over the Company or any of  its properties.         (j)   The Company’s Common Stock is registered under Section 12 of the Exchange  Act. The Company has filed all reports, schedules, forms, statements and other documents required  to be filed by the Company under the Exchange Act, including pursuant to Section 13(a) or 15(d)  thereof,  since  January  1,  2018  (the  foregoing  materials,  including  the  exhibits  thereto  and  documents incorporated by reference therein, being collectively referred to herein as the “SEC  Reports”) on a timely basis or has received a valid extension of such time of filing and has filed  any such SEC Reports prior to the expiration of any such extension. As of their respective dates,  the SEC Reports complied in all material respects with the requirements of the Exchange Act and,  in each case, to the rules promulgated thereunder, as applicable, and none of the SEC Reports,  when filed, contained any untrue statement of a material fact or omitted to state a material fact  required to be stated therein or necessary in order to make the statements therein, in the light of  the circumstances under which they were made, not misleading.         (k)   The financial statements and the related notes of the Company included in the SEC  Reports comply in all material respects with applicable accounting requirements and the rules and  regulations of the Commission with respect thereto as in effect at the time of filing. Such financial  statements have been prepared in accordance with GAAP, except as may be otherwise specified  in such financial statements or the notes thereto and except that unaudited financial statements  may not contain all footnotes required by GAAP, and fairly present the consolidated financial  position of the Company as of and for the dates thereof and the consolidated results of operations  and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal,  immaterial, year-end audit adjustments.         (l)   No  action,  suit  or  proceeding  by  or  before  any  court  or  governmental  agency,  authority or body or any arbitrator involving the Company or its property is pending or, to the  knowledge of the Company, threatened that is likely to have a Material Adverse Effect, whether  or not arising from transactions in the ordinary course of business.         (m)   The Company owns or leases all such properties as are necessary to the conduct of  its operations as presently conducted in all material respects.         (n)   The Company is not in violation or default of (i) any provision of its charter or  bylaws, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement,  loan agreement or other agreement, obligation, condition, covenant or instrument to which it is a  party  or  bound  or  to  which  its  property  is  subject,  or  (iii)  any  statute,  law,  rule,  regulation,  judgment, order or decree of any court, regulatory body, administrative agency, governmental  body, arbitrator or other authority having jurisdiction over the Company or any of its properties,   as applicable, except in the case of clauses (ii) and (iii), as would not reasonably be expected to   have a Material Adverse Effect.                                         11.         74109921_16  

 

           (o)   Ernst  &  Young  LLP,  who  have  certified  certain  financial  statements  of  the  Company and delivered their report with respect to the audited financial statements included in the  SEC Reports, are independent public accountants with respect to the Company within the meaning  of the Securities Act and the applicable published rules and regulations thereunder.         (p)   There are no transfer taxes or other similar fees or charges under Federal law or the  laws of any state, or any political subdivision thereof, required to be paid in connection with the  execution and delivery of this Agreement, or the issuance by the Company or sale by the Company  of the Securities.         (q)   The Company has filed all tax returns that are required to be filed or has requested  extensions thereof (except in any case in which the failure so to file would not have a Material  Adverse Effect, whether or not arising from transactions in the ordinary course of business) and  has paid all taxes required to be paid by it and any other assessment, fine or penalty levied against  it, to the extent that any of the foregoing is due and payable, except for any such assessment, fine  or penalty that is currently being contested in good faith or as would not have a Material Adverse  Effect.         (r)   No labor problem or dispute with the employees of the Company exists or, to the  knowledge of the Company, is threatened or imminent, and the Company is not aware of any  existing  or  imminent  labor  disturbance  by  the  employees  of  any of  its  principal  suppliers,  contractors or customers, that could have a Material Adverse Effect, whether or not arising from  transactions in the ordinary course of business.         (s)   The Company is insured by insurers of recognized financial responsibility against  such losses and risks and in such amounts as the Company reasonably believes are prudent and  customary in the businesses in which it is engaged; all policies of insurance and fidelity or surety  bonds insuring the Company or its business, assets, employees, officers and directors are in full  force and effect; the Company is in compliance with the terms of such policies and instruments in  all material respects; and there are no claims by the Company under any such policy or instrument  as to which any insurance company is denying liability or defending under a reservation of rights  clause; the Company has not been refused any insurance coverage sought or applied for; and the  Company has no reason to believe that it will not be able 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 have a Material Adverse Effect, whether  or not arising in the ordinary course of business.         (t)   The Company possesses all licenses, certificates, permits and other authorizations  issued by all applicable authorities necessary to conduct its business, and the Company has not  received  any  notice  of  proceedings  relating  to  the  revocation  or  modification  of  any  such  certificate,  authorization  or  permit  which,  singly  or  in  the  aggregate,  if  the  subject  of  an  unfavorable decision, ruling or finding, would have a Material Adverse Effect.         (u)    Except as would not, individually or in the aggregate, result in a Material Adverse   Effect: (i) the Company is and has been in compliance with statutes, laws, ordinances, rules and   regulations  applicable  to  the  Company  for  the  ownership,  testing,  development,  manufacture,   packaging, processing, use, labeling, storage, or disposal of any product manufactured by or on                                        12.         74109921_16  

 

     behalf of the Company or out-licensed by the Company, including without limitation, the Federal   Food, Drug, and Cosmetic Act, 21 U.S.C. § 301, et seq., the Public Health Service Act, 42 U.S.C.   § 262, similar laws of other Governmental Entities and the regulations promulgated pursuant to   such laws (collectively, “Applicable Laws”); (ii) the Company possess all licenses, certificates,   approvals, authorizations, permits and supplements or amendments thereto required by any such   Applicable  Laws  and/or  for  the  ownership  of  its  properties  or  the  conduct  of  its  business  as   described in the SEC Reports (collectively, “Authorizations”) and such Authorizations are valid   and  in  full  force  and  effect  and  the  Company  is  not  in  violation  of  any  term  of  any  such   Authorizations; (iii) the Company has not received any written notice of adverse finding, warning   letter  or  other  written  correspondence  or  notice  from  the  U.S. Food  and  Drug  Administration   (“FDA”)  or  any  other  Governmental  Entity  alleging  or  asserting  noncompliance  with  any   Applicable Laws or Authorizations; (iv) the Company has not received notice of any ongoing   claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from   any  Governmental  Entity  or  third  party  alleging  that  any  product,  operation  or  activity  is  in   violation  of  any  Applicable  Laws  or  Authorizations  or  has  any  knowledge  that  any  such   Governmental Entity or third party is considering any such claim, litigation, arbitration, action,   suit, investigation or proceeding, nor, to the best of the Company’s knowledge, has there been any   noncompliance with or violation of any Applicable Laws by the Company that could reasonably   be  expected  to  require  the  issuance  of  any  such  written  notice or  result  in  an  investigation,   corrective action, or enforcement action by FDA or similar Governmental Entity; (v) the Company   has not received notice that any Governmental Entity has taken, is taking or intends to take action   to  limit,  suspend,  modify  or  revoke  any  Authorizations  or  has  any  knowledge  that  any  such   Governmental Entity has threatened or is considering such action; and (vi) the Company has filed,   obtained, maintained or submitted all reports, documents, forms, notices, applications, records,   claims,  submissions  and  supplements  or  amendments  as  required  by  any  Applicable  Laws  or   Authorizations and that all such reports, documents, forms, notices, applications, records, claims,   submissions and supplements or amendments were complete, correct and not misleading on the   date filed (or were corrected or supplemented by a subsequent submission). To the Company’s   knowledge, neither the Company, nor any of its directors, officers, employees or agents, has made,   or caused the making of, any false statements on, or material omissions from, any other records or   documentation prepared or maintained to comply with the requirements of the FDA or any other   Governmental Entity.          (v)   The pre-clinical and clinical studies and tests conducted by the Company has been   and, if still pending, are being conducted in all material respects pursuant to all Applicable Laws   and Authorizations; the descriptions of the results of such clinical studies and tests contained in   the SEC Reports are accurate and complete in all material respects and fairly present the data   derived from such clinical studies and tests; the Company is not aware of any clinical studies or   tests,  the  results  of  which  the Company  believes  reasonably  call  into  question  the  research,   nonclinical or clinical study or test results; and the Company has not received any written notices   or correspondence from any Governmental Entity requiring the termination, suspension or material   modification of any clinical study or test conducted by or on behalf of the Company.         (w)   The Company owns, possesses, licenses or otherwise has sufficient rights to use,  on reasonable terms, all patents, patent applications, trade and service marks, trade and service  mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, know-                                       13.         74109921_16  

 

     how and other intellectual property (collectively, the “Intellectual Property”) necessary for the  conduct of the Company’s business as now conducted or as proposed in the SEC Reports to be  conducted.  (a) There are no rights of third parties to any material Intellectual Property; (b) there  is no material infringement by third parties of any such Intellectual Property; (c) there is no pending  or,  to  the  knowledge  of  the  Company,  threatened  action,  suit,  proceeding  or  claim  by  others  challenging the Company’s rights in or to any such Intellectual Property, and the Company is  unaware of any facts which would form a reasonable basis for any such claim; (d) there is no  pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by  others challenging the validity or scope of any such Intellectual Property, and the Company is  unaware of any facts which would form a reasonable basis for any such claim; (e) there is no  pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by  others that the Company infringes or otherwise violates any patent, trademark, copyright, trade  secret or other proprietary rights of others, and the Company is unaware of any act which would  form a reasonable basis for any such claim; (f) to the knowledge of the Company, there is no U.S.  patent which contains claims that dominate or may dominate any Intellectual Property described  in the SEC Reports owned by or licensed to the Company or that interferes with the issued claims  of any such Intellectual Property; and (g) there is no prior art of which the Company is aware that  may render any U.S. patent held by the Company invalid or any U.S. patent application held by  the Company unpatentable which has not been disclosed to the U.S. Patent and Trademark Office.         (x)   The Company (i) does not have any material lending or other relationship with any  bank or lending affiliate of the Placement Agent and (ii) does not intend to use any of the proceeds  from the sale of the Securities hereunder to repay any outstanding debt owed to any affiliate of the  Placement Agent.         (y)   The  Company  maintains  a  system  of  internal  accounting  controls sufficient  to  provide reasonable assurance that (i) transactions are executed in accordance with management’s  general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation  of  financial  statements  in  conformity  with  generally  accepted  accounting  principles  and  to  maintain  asset  accountability; (iii)  access  to  assets  is  permitted  only  in  accordance  with  management’s general or specific authorization; and (iv) the recorded accountability for assets is  compared  with  the  existing  assets  at  reasonable  intervals  and  appropriate  action  is  taken  with  respect to any differences. The Company’s internal controls over financial reporting are effective  and the Company is not aware of any material weakness in its internal controls over financial  reporting.         (z)   The  Company  maintains  “disclosure  controls  and  procedures”  (as such  term  is  defined in Rule 13a-15(e) under the Exchange Act); such disclosure controls and procedures are  effective.         (aa)  The Company has not taken, directly or indirectly, without giving effect to activities  by the Placement Agent, any action designed to or that would constitute or that might reasonably   be  expected  to  cause  or  result  in,  under  the  Exchange  Act  or  otherwise,  stabilization  or   manipulation of the price of any security of the Company to facilitate the sale or resale of the   Securities.                                         14.         74109921_16  

 

         (bb)  The Company is (i) in compliance with any and all applicable foreign, federal, state  and  local  laws  and  regulations  relating  to  the  protection  of  human  health  and  safety,  the  environment  or  hazardous  or  toxic  substances  or  wastes,  pollutants  or  contaminants  (“Environmental Laws”), (ii) have received and are in compliance with all permits, licenses or  other approvals required of them under applicable Environmental Laws to conduct their respective  businesses  and  (iii)  have  not  received  notice  of  any  actual  or potential  liability  under  any  environmental  law,  except  where such  non-compliance  with  Environmental  Laws,  failure  to  receive required permits, licenses or other approvals, or liability would not, individually or in the  aggregate, have a Material Adverse Effect, whether or not arising from transactions in the ordinary  course of business. The Company has not been named as a “potentially responsible party” under  the  Comprehensive  Environmental  Response,  Compensation,  and  Liability  Act  of  1980,  as  amended.         (cc)  In the ordinary course of its business, the Company periodically reviews the effect  of Environmental Laws on the business, operations and properties of the Company, in the course  of which it identifies and evaluates associated costs and liabilities (including, without limitation,  any capital or operating expenditures required for clean-up, closure of properties or compliance  with Environmental Laws, or any permit, license or approval, any related constraints on operating  activities and any potential liabilities to third parties). On the basis of such review, the Company  has reasonably concluded that such associated costs and liabilities  would  not,  singly  or  in  the  aggregate, have a Material Adverse Effect, whether or not arising from transactions in the ordinary  course of business.         (dd)  None  of  the  following  events  has  occurred  or  exists:  (i)  a  failure  to  fulfill  the  obligations, if any, under the minimum funding standards of Section 302 of the United States  Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the regulations  and  published  interpretations  thereunder  with  respect  to  a  Plan  that  is  required  to  be  funded,  determined without regard to any waiver of such obligations or extension of any amortization  period;  (ii) an  audit or  investigation  by  the Internal  Revenue Service, the  U.S.  Department  of  Labor,  the  Pension  Benefit  Guaranty  Corporation  or  any  other  federal  or  state  governmental  agency  or  any  foreign  regulatory  agency  with  respect  to  the  employment  or  compensation  of  employees by any of the Company that would reasonably be expected to have a Material Adverse  Effect;  (iii)  any  breach  of  any  contractual  obligation,  or  any violation  of  law  or  applicable  qualification  standards, with  respect  to the employment  or compensation  of  employees  by  the  Company that could have a Material Adverse Effect; or (iv) a non-exempt prohibited transaction,  within the meaning of Section 406 of ERISA or Section 4975 of the Code with respect to any Plan  that  could  have  a  Material  Adverse  Effect.  None  of  the  following  events  has  occurred  or  is  reasonably likely to occur: (i) a material increase in the aggregate amount of contributions required  to be made to all Plans in the current fiscal year of the Company compared to the amount of such  contributions made in the most recently completed fiscal year of the Company; (ii) a material  increase in the “accumulated post-retirement benefit obligations” (within the meaning of Statement  of  Financial  Accounting  Standards  106)  of  the  Company  as  compared  to  the  amount  of  such  obligations in the most recently completed fiscal year of the Company; (iii) any event or condition  giving rise to a liability under Title IV of ERISA that would reasonably be expected to have a  Material  Adverse  Effect;  or  (iv)  the  filing  of  a  claim  by  one  or  more  employees  or  former  employees of the Company related to their employment that would reasonably be expected to have                                       15.      74109921_16  

 

     a Material Adverse Effect. For purposes of this paragraph, the term “Plan” means a plan (within   the meaning of Section 3(3) of ERISA) subject to Title IV of ERISA with respect to which the   Company may have any liability.          (ee)  There  is  and  has  been  no  failure  on  the  part  of  the  Company  and  any  of  the   Company’s directors or officers, in their capacities as such, to comply with any provision of the   Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith   (the “Sarbanes-Oxley Act”), including Section 402 relating to loans.          (ff)  Neither the Company nor, to the knowledge of the Company, any director, officer,  agent,  employee  or  affiliate  of  the  Company  is  aware  of  or  has taken  any  action,  directly  or  indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of  1977, as amended, and the rules and regulations thereunder (the “FCPA”), including, without  limitation,  making  use  of  the  mails  or  any  means  or  instrumentality  of  interstate  commerce  corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of  any money, or other property, gift, promise to give, or authorization of the giving of anything of  value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party  or official thereof or any candidate for foreign political office, in contravention of the FCPA; and  the Company, and, to the knowledge of the Company, its affiliates have conducted their businesses   in compliance with the FCPA and have instituted and maintain policies and procedures designed   to  ensure,  and  which  are  reasonably  expected  to  continue  to  ensure,  continued  compliance   therewith.          (gg)  The  operations  of  the  Company  are  and  have  been  conducted  at  all  times  in  compliance with applicable financial recordkeeping and reporting requirements and the money  laundering  statutes  and  the  rules  and  regulations  thereunder  and  any  related  or  similar  rules,  regulations  or  guidelines,  issued,  administered  or  enforced  by any  governmental  agency  (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any  court or governmental agency, authority or body or any arbitrator involving the Company with  respect  to  the  Money  Laundering  Laws  is  pending  or,  to  the  knowledge  of  the  Company,  threatened.         (hh)  Neither the Company nor, to the knowledge of the Company, any director, officer,  agent, employee or affiliate of the Company (i) is currently subject to any sanctions administered  or imposed by the United States (including any administered or enforced by the Office of Foreign  Assets Control of the U.S. Treasury Department (“OFAC”)) or (ii) will, directly or indirectly, use  the proceeds of this offering, or lend, contribute or otherwise make available such proceeds to any   subsidiary, joint venture partner or other person in any manner that will result in a violation of any   economic  sanctions imposed  by  the  United  States  (including  any administered  or enforced  by   OFAC,  the  U.S.  Department  of  State,  or  the  Bureau  of  Industry  and  Security  of  the  U.S.   Department  of  Commerce),  the  United  Nations  Security  Council,  the  European  Union,  or  the   United  Kingdom  (including  sanctions  administered  or  controlled by  Her  Majesty’s  Treasury)   (collectively,  “Sanctions”  and  such  persons,  “Sanction Persons”)  by,  or  could  result  in  the   imposition of Sanctions against, any person (including any person participating in the offering,   whether as underwriter, advisor, investor or otherwise).                                         16.         74109921_16  

 

           (ii)  Neither the Company nor, to the knowledge of the Company, any director, officer,  agent, employee or affiliate of the Company, is a person that is, or is 50% or more owned or  otherwise controlled by a person that is: (i) the subject of any Sanctions; or (ii) located, organized   or resident in a country or territory that is, or whose government is, the subject of Sanctions that   broadly prohibit dealings with that country or territory (currently, Cuba, Iran, North Korea, Syria   and  the  Crimea  Region  of  the  Ukraine)  (collectively,  “Sanctioned Countries”  and  each,  a   “Sanctioned Country”).          (jj)  The Company has not engaged in any dealings or transactions with or for the benefit   of a Sanctioned Person, or with or in a Sanctioned Country, in the preceding 3 years, nor does the   Company have any plans to increase its dealings or transactions with Sanctioned Persons, or with   or in Sanctioned Countries.          (kk)  The Common Stock is listed on the Nasdaq Capital Market. The Company has   taken no action designed to, or likely to have the effect of, terminating the registration of the   Common Stock under the Exchange Act or delisting the Common Stock from the Nasdaq Capital   Market, nor has the Company received any notification that the Commission or the Nasdaq Capital   Market is contemplating terminating such registration or listing. To the Company’s knowledge, it   is in compliance with all applicable listing requirements of the Nasdaq Capital Market.          (ll)  Neither  the  Company,  nor  any  of  the  Company’s  affiliates  or  any other person   acting  on  the  Company’s  behalf,  has  directly  or  indirectly  engaged  in  any  form  of  general   solicitation or general advertising with respect to the Securities, nor have any of such persons made   any offers or sales of any security of the Company, or any of the Company’s affiliates or solicited   any offers to buy any security of the Company, or any of the Company’s or any affiliates under   circumstances that would require registration of the Securities under the Securities Act or any other   securities  laws  or  cause  this  offering  of  Securities  to  be  integrated  with  any  prior  offering  of   securities of the Company for purposes of the Securities Act in any manner that would affect the   validity of the private placement exemption under the Securities Act for the offer and sale of the   Shares hereunder.          (mm)  The  Company  shall,  at  all  times  while  any  Warrants  are  outstanding,  use   commercially reasonable efforts to maintain a registration statement covering the issue and sale of   the Warrant Shares upon exercise of the Warrants such that the Warrant Shares, when issued, will   not  be  subject  to  resale  and  restrictions  under  the  Securities Act  except  to  the  extent  that  the   Warrant Shares are owned by affiliates.          (nn)  No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the 1933   Act (a “Disqualification Event”) is applicable to the Company or, to the Company’s knowledge,   any Company Covered Person (as defined below), except for a Disqualification Event as to which   Rule 506(d)(2)(ii–iv) or (d)(3), is applicable. “Company Covered Person” means, with respect to   the Company as an “issuer” for purposes of Rule 506 promulgated under the 1933 Act, any person   listed in the first paragraph of Rule 506(d)(1).          (oo)  The Company shall file a Form D with respect to the Securities as required under   Regulation D and, to the extent the Form D is not publicly available on the Commission’s EDGAR   reporting  system,  to  provide  a  copy  thereof  to each  Purchaser  promptly  after  such  filing.  The                                        17.         74109921_16  

 

     Company, on or before each of the Initial Closing Date, Second Closing Date and the Optional   Closing Date, shall take such action as the Company shall reasonably determine is necessary in   order to obtain an exemption for or to qualify the Securities for sale to the Purchasers at each of   the Initial Closing, Second Closing and the Optional Closing pursuant to this Agreement under  applicable securities or blue sky laws of the states of the United States (or to obtain an exemption  from such qualification), and, if requested by a Purchaser, shall provide evidence of any material  action so taken to such Purchaser on or prior to the Initial Closing Date. The Company shall make  all filings and reports relating to the offer and sale of the Securities required under applicable  securities or blue sky laws of the states of the United States following the Initial Closing Date,  Second Closing Date and the Optional Closing Date.           3.2   Representations,  Warranties  and  Covenants  of  the  Purchasers.  Each  Purchaser, for itself and for no other Purchaser, hereby represents, warrants and covenants to the  Company  and  the  Placement  Agent  as  of  the  Initial  Closing,  the Second  Closing,  the  Second  Shortfall Closing, the Optional Closing  and the Optional Shortfall Closing, as applicable:               (a)   Purchaser represents and warrants that: (a) Purchaser has all requisite legal  and corporate or other power and capacity and has taken all requisite corporate or other action to  execute and deliver this Agreement, to purchase the Securities and to carry out and perform all of  its  obligations  under  this  Agreement;  and  (b)  this  Agreement  constitutes  the  legal,  valid  and  binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms,  except (i) as limited by applicable bankruptcy, insolvency, reorganization or similar laws relating  to  or  affecting  the  enforcement of  creditors’  rights  generally and  (ii)  as  limited  by  equitable  principles generally.               (b)   At the time such Purchaser was offered the Securities, it was, and as of the  date hereof it is, and on each date on which it exercises any Warrants, it will be either: (i) an  “accredited  investor”  as  defined  in  Rule  501(a)(1),  (a)(2),  (a)(3),  (a)(7)  or  (a)(8)  under  the  Securities  Act  or  (ii)  a  “qualified  institutional  buyer”  as  defined  in  Rule  144A(a)  under  the  Securities Act. Purchaser is aware of the Company’s business affairs and financial condition and  has had access to and has acquired sufficient information about the Company to reach an informed  and knowledgeable decision to acquire the Securities. Purchaser has such business and financial  experience as is required to give it the capacity to protect its own interests in connection with the  purchase of the Securities.  Purchaser acknowledges that it has had the opportunity to review the  Company’s filings with the Commission and has been afforded (i) the opportunity to ask such  questions  as  it  has  deemed  necessary  of,  and  to  receive  answers from, representatives of the  Company concerning the terms and conditions of the offering of the Securities and the merits and  risks of investing in the Securities and (ii) the opportunity to obtain such additional information  that the Company possesses or can acquire without unreasonable effort or expense that is necessary  to make an informed investment decision with respect to the investment.                (c)   Each  Purchaser  is  purchasing  the  Securities,  and  upon  exercise of  the   Warrants  will  acquire  the  Warrant  Shares issuable  upon  exercise of the Warrants, for its own   account, for investment purposes only, and not with a present view to, or for, resale, distribution   or fractionalization thereof, in whole or in part, within the meaning of the Securities Act. Each   Purchaser  understands  that  its  acquisition  of  the  Securities  has  not  been  registered  under  the                                         18.         74109921_16  

 

   Securities  Act  or  registered  or  qualified  under  any  state  securities  law  in  reliance  on  specific  exemptions therefrom, which exemptions may depend upon, among other things, the bona fide  nature of each Purchaser’s investment intent as expressed herein. Each Purchaser will not, directly  or  indirectly,  offer,  sell,  pledge,  transfer  or  otherwise  dispose  of  (or  solicit  any  offers  to  buy,  purchase or otherwise acquire or take a pledge of) the Securities except in compliance with the  Securities Act and the rules and regulations promulgated thereunder.               (d)   Each Purchaser represents and acknowledges that is has not been solicited  to  offer  to  purchase  or  to  purchase  any  Securities  by  means  of any  general  solicitation  or  advertising within the meaning of Regulation D under the Securities Act.               (e)   Each Purchaser represents that it is not a person of the type described in  Section 506(d) of Regulation D under the Securities Act that would disqualify the Company from  engaging in a transaction pursuant to Section 506 of Regulation D under the Securities Act.                (f)   Each Purchaser understands that the Securities being offered and sold to it  in reliance on specific exemptions from the registration requirements of United States federal and  state securities laws and that the Company is relying in part upon the truth and accuracy of, and  each  Purchaser’s  compliance  with,  the  representations,  warranties,  agreements,  acknowledgements and understandings of each Purchaser set forth herein in order to determine the  availability of such exemptions and the eligibility of each Purchaser to acquire the Securities.  Each  Purchaser further acknowledges and understands that the Securities may not be resold or otherwise  transferred except in a transaction registered under the Securities Act or unless an exemption from  such registration is available.               (g)   Dispositions.                     (i)   Each  Purchaser  will  not,  prior  to  the  effectiveness  of  the  Resale  Registration Statement (as defined below), if then prohibited by law or regulation: (i) sell, offer to  sell, solicit offers to buy, dispose of, loan, pledge or grant any right with respect to (collectively, a  “Disposition”) the Securities; or (ii) engage in any hedging or other transaction which is designed  or  could  reasonably  be  expected  to  lead  to  or  result  in  a  Disposition  of  the  Securities  by  the  Purchaser or an affiliate.                     (ii)  As of the Initial Closing Date, each Purchaser has not directly or  indirectly,  nor  has  any  person  acting  on  behalf  of  or  pursuant to  any  understanding  with  the  Purchaser,  engaged  in  any  purchases  or  sales  of  the  Company’s  securities  (including,  without  limitation, any Short Sales involving the Company’s securities) since the time that the Purchaser  was first contacted by the Company or any other person regarding the transactions contemplated  hereby. Each Purchaser covenants that neither it nor any person acting on its behalf or pursuant to  any  understanding  with  it  will  engage  in  any  purchases  or  sales  of  the  Company’s  securities  (including, without limitation, any Short Sales involving the Company’s securities) prior to the  time that the transactions contemplated by this Agreement are publicly disclosed.               (h)   Purchaser has independently evaluated the merits of its decision to purchase  Securities pursuant to this Agreement. Purchaser understands that nothing in this Agreement or                                        19.      74109921_16  

 

     any  other  materials  presented  to  Purchaser  in  connection  with  the  purchase  and  sale  of  the   Securities constitutes legal, tax or investment advice.                (i)   If  the  Company  seeks  stockholder approval  for  a  reverse  split  of  the   Company’s Common Stock, to be effected on or prior to June 30, 2019 (with a proportionate   reduction in the authorized shares of Common Stock), whether or not at the Company’s annual   meeting of stockholders, each Purchaser shall vote all of the shares of Common Stock beneficially   owned by such Purchaser in favor of such reverse stock split proposal.               (j)   Purchaser  will  hold  in  confidence  all  information  concerning  this  Agreement  and  the  sale  and  issuance  of  the  Securities  until  the  Company  has  made  a  public  announcement concerning this Agreement and the sale and issuance of the Securities, which shall  be made not later than 9:00 am New York time on the first Trading Day immediately after the  signing of this Agreement.               (k)   Purchaser understands that no United States federal or state agency or any  other  government  or  governmental  agency  has  passed  upon  or  made  any  recommendation  or  endorsement of the Securities.               (l)   Legend.                     (i)   Each  Purchaser  understands  that the  Securities  shall  bear  a  restrictive legend in substantially the following form (and a stop transfer order may be placed  against transfer of the certificates for the Securities):         “THE  SECURITIES  REPRESENTED  BY  THIS  CERTIFICATE  HAVE  NOT        BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS        AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED        STATES  OR  IN  ANY  OTHER  JURISDICTION.  THE  SECURITIES        REPRESENTED  HEREBY  MAY  NOT  BE  OFFERED,  SOLD  OR        TRANSFERRED  IN  THE  ABSENCE  OF  AN  EFFECTIVE  REGISTRATION        STATEMENT  FOR  THE  SECURITIES  UNDER  APPLICABLE  SECURITIES        LAWS UNLESS OFFERED, SOLD OR TRANSFERRED PURSUANT TO AN        AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS        OF THOSE LAWS.”                     (ii)  The  Company  shall,  at  its  sole  expense,  upon  appropriate  notice   from  any  Purchaser  stating  that  Registrable  Shares  have  been  sold  pursuant  to  an  effective   Registration Statement, timely prepare and deliver certificates or book-entry shares representing   the Shares to be delivered to a transferee pursuant to the Registration Statement, which certificates   or  book-entry  shares  shall  be  free  of  any  restrictive  legends  and  in  such  denominations  and   registered in such names as such Purchaser may request. Further, the Company shall, at its sole   expense, cause its legal counsel or other counsel satisfactory to the transfer agent: (i) while the   Registration Statement is effective, to issue to the transfer agent a “blanket” legal opinion to allow   sales without restriction pursuant to the effective Registration Statement, and (ii) provide all other   opinions as may reasonably be required by the transfer agent in connection with the removal of   legends. A Purchaser may request that the Company remove, and the Company agrees to authorize                                        20.         74109921_16  

 

     the  removal  of,  any  legend  from  such  Shares,  following  the  delivery  by  a  Purchaser  to  the   Company or the Company’s transfer agent of a legended certificate representing such Shares: (i)   following any sale of such Shares pursuant to Rule 144, (ii) if such Shares are eligible for sale   under  Rule  144(b)(1),  or  (iii)  following  the  time  that  the  Registration  Statement  is  declared   effective. If a legend removal request is made pursuant to the foregoing, the Company will, no   later  than  three  business  days  following  the  delivery  by  a  Purchaser  to  the  Company  or  the   Company’s  transfer  agent  of  a legended  certificate  representing such Shares (or a request for   legend removal, in the case of Shares issued in book-entry form), deliver or cause to be delivered   to such Purchaser a certificate representing such Shares that is free from all restrictive legends or   an equivalent book-entry position, as requested by the Purchaser. Certificates for Shares free from   all restrictive legends may be transmitted by the Company’s transfer agent to the Purchasers by   crediting the account of the Purchaser’s prime broker with the Depository Trust Company (“DTC”)   as directed by such Purchaser. The Company warrants that the Shares shall otherwise be freely   transferable  on  the  books  and  records  of  the  Company  as  and  to the  extent  provided  in  this  Agreement. If a Purchaser effects a transfer of the Shares in accordance with Section 3.2(l)(ii), the  Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or  more certificates or credit shares to the applicable balance accounts at DTC in such name and in  such denominations as specified by such Purchaser to effect such transfer. Each Purchaser hereby  agrees that the removal of the restrictive legend pursuant to this Section 3.2(l)(ii) is predicated   upon the Company’s reliance that such Purchaser will sell any such Shares pursuant to either the   registration  requirements  of  the  Securities  Act,  including  any applicable  prospectus  delivery   requirements, or an exemption therefrom.                  (m)   Immediately  prior  to  the  Initial  Closing,  Purchaser,  together  with  its   affiliates  and  any  other  persons  acting  as  a  group  together  with  the  Purchaser  and  any  of  its   affiliates, beneficially owned the number of shares of Common Stock set forth on such Purchaser’s   signature page attached hereto (as such ownership is calculated pursuant to the rules of Nasdaq).                  (n)   If Purchaser is not a United States person (as defined by Section 7701(a)(30)   of the Code), Purchaser hereby represents that it has satisfied itself as to the full observance of the   laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use   of this Agreement, including (a) the legal requirements within its jurisdiction for the purchase of   the Securities, (b) any foreign exchange restrictions applicable to such purchase or acquisition, (c)   any government or other consents that may need to be obtained, and (d) the income tax and other   tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer   of  the  Securities.  The  Purchaser’s  subscription  and  payment  for  and  continued  beneficial   ownership  of  the  Securities  will  not  violate  any  applicable  securities  or  other  laws  of  the   Purchaser’s jurisdiction.    4.    REGISTRATION RIGHTS          4.1   Definitions. For the purpose of this Section 4:               (a)   the  term  “Resale Registration Statement”  shall  mean  any  registration  statement required to be filed by Section 4.2 below, and shall include any preliminary prospectus,  final prospectus, exhibit or amendment included in or relating to such registration statements; and                                         21.         74109921_16  

 

                 (b)   the term “Registrable Shares” means the Shares and the Warrant Shares;   provided, however, that a security shall cease to be a Registrable Share upon the earliest to occur   of the following: (i) a Resale Registration Statement registering such security under the Securities   Act  has  been  declared  or  becomes  effective  and  such  security  has  been  sold  or  otherwise   transferred  by  the  holder  thereof  pursuant  to  and  in  a  manner  contemplated  by  such  effective   Resale Registration Statement, (ii) such security is sold pursuant to Rule 144 under circumstances   in which any legend borne by such security relating to restrictions on transferability thereof, under   the Security Act or otherwise, is removed by the Company, (iii) such security is eligible to be sold   pursuant to Rule 144 without condition or restriction, including without any limitation as to volume   of  sales,  and  without  the  Holder  complying  with  any  method  of  sale  requirements  or  notice   requirements under Rule 144, or (iv) such security shall cease to be outstanding following its   issuance.          4.2   Registration Procedures and Expenses. The Company shall:                (a)   use commercially reasonable efforts to file a Resale Registration Statement   (the “Mandatory Registration Statement”) with the Commission on or before the date 60 days  following the Initial Closing Date (the “Filing Date”) to register all of the Registrable Shares on  Form S-3 under the Securities Act (providing for shelf registration of such Registrable Shares  under Commission Rule 415);               (b)   use  its  commercially  reasonable  efforts  to  cause  such  Mandatory   Registration Statement to be declared effective within 30 days following the Filing Date (or, in the   event the Staff reviews and has written comments to the Mandatory Registration Statement, within   120 days following the Initial Closing Date) (the earlier of the foregoing or the applicable date set   forth in Section 4.2(h), the “Effectiveness Date”), such efforts to include, without limiting the   generality of the foregoing, preparing and filing with the Commission any financial statements or   other  information  that  is  required  to  be  filed  prior  to  the  effectiveness  of  such  Mandatory   Registration Statement;                (c)   notwithstanding anything contained in this Agreement to the contrary, in   the event that the Commission limits the amount of Registrable Shares or otherwise requires a   reduction in the number of Registrable Shares that may be included and sold by the Purchasers in   the Mandatory Registration Statement (in each case, subject to Section 4.3), then the Company   shall  prepare  and  file  (i)  within  10  business  days  of  the  first  date  or  time  that  such  excluded   Registrable Shares may then be included in a Resale Registration Statement if the Commission  shall have notified the Company that certain Registrable Shares were not eligible for inclusion in  the Resale Registration Statement or (ii) in all other cases, within 20 days following the date that  the Company becomes aware that such additional Resale Registration Statement is required (the  “Additional Filing Date”),  a  Resale  Registration  Statement  (any  such  Resale  Registration  Statement registering such excluded Registrable Shares, an “Additional Registration Statement”  and, together with the Mandatory Registration Statement, a “Resale Registration Statement”) to   register any Registrable Shares that have been excluded (or, if applicable, the maximum number   of such excluded Registrable Shares that the Company is permitted to register for resale on such   Additional  Registration  Statement  consistent  with  Commission  guidance),  if  any,  from  being   registered on the Mandatory Registration Statement;                                         22.         74109921_16  

 

               (d)   use  its  commercially  reasonable  efforts  to  cause  any  such  Additional  Registration Statement to be declared effective as promptly as practicable following the Additional  Filing Date, such efforts to include, without limiting the generality of the foregoing, preparing and  filing with the Commission any financial statements or other information that is required to be  filed prior to the effectiveness of any such Additional Registration Statement;               (e)   prepare and file with the Commission such amendments and supplements  to such Resale Registration Statements and the prospectus used in connection therewith as may be  necessary to keep such Resale Registration Statements continuously effective and free from any  material  misstatement  or  omission  to  state  a  material  fact  therein  until  termination  of  such  obligation as provided in Section 4.7 below, subject to the Company’s right to suspend pursuant  to Section 4.6;               (f)   furnish  to  the  Purchasers  such  number  of  copies  of  prospectuses in  conformity with the requirements of the Securities Act and such other documents as the Purchasers  may reasonably request, in order to facilitate the public sale or other disposition of all or any of  the Registrable Shares by the Purchasers;               (g)   file  such  documents  as  may  be  required  of  the  Company  for  normal  securities law clearance for the resale of the Registrable Shares in such states of the United States  as may be reasonably requested by the Purchasers and use its commercially reasonable efforts to  maintain  such  blue  sky  qualifications  during  the  period  the  Company  is  required  to  maintain  effectiveness of the Resale Registration Statements; provided, however, that the Company shall  not be required in connection with this Section 4.2(g) to qualify as a foreign corporation or execute  a general consent to service of process in any jurisdiction in which it is not now so qualified or has  not so consented;               (h)   upon notification by the Commission that the Resale Registration Statement  will not be reviewed or is not subject to further review by the Commission, the Company shall  within three business days following the date of such notification request acceleration of such  Resale  Registration  Statement  (with  the  requested  effectiveness  date  to  be  not  more  than  two  business days later);               (i)   upon  notification  by  the  Commission  that  that  the  Resale  Registration  Statement  has  been  declared  effective  by  the  Commission,  the  Company  shall  file  the  final  prospectus under Rule 424 of the Securities Act (“Rule 424”) within the applicable time period  prescribed by Rule 424;               (j)   advise the Purchasers promptly:                     (i)   of  the  effectiveness  of  the  Resale  Registration  Statement  or  any  post-effective amendments thereto;                     (ii)  of any request by the Commission for amendments to the Resale  Registration Statement or amendments to the prospectus or for additional  information  relating  thereto;                                        23.      74109921_16  

 

                       (iii) of the issuance by the Commission of any stop order suspending the   effectiveness of the Resale Registration Statement under the Securities Act or of the suspension   by any state securities commission of the qualification of the Registrable Shares for offering or   sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes; and                      (iv)  of  the  existence  of  any  fact  and the  happening  of  any  event  that   makes any statement of a material fact made in the Resale Registration Statement, the prospectus   and amendment or supplement thereto, or any document incorporated by reference therein, untrue,   or that requires the making of any additions to or changes in the Resale Registration Statement or   the prospectus in order to make the statements therein not misleading;                (k)   cause all Registrable Shares to be listed on each securities exchange, if any,   on which equity securities by the Company are then listed; and               (l)   bear  all  expenses  in  connection  with  the  procedures  in  paragraphs  (a)   through  (k)  of  this Section  4.2  and  the  registration  of  the  Registrable  Shares  on  such  Resale  Registration Statement and the satisfaction of the blue sky laws of such states.         4.3   Rule 415; Cutback.                If  at  any  time  the  staff  of  the  Commission  (“Staff”)  takes  the  position  that  the  offering of some or all of the Registrable Shares in a Registration Statement is not eligible to be  made on a delayed or continuous basis under the provisions of Rule 415 under the Securities Act  or requires any Purchaser to be named as an “underwriter,” the Company shall (in consultation  with legal counsel to the lead Purchaser) use its commercially reasonable efforts to persuade the  Commission that the offering contemplated by the Registration Statement is a valid secondary  offering and not an offering “by or on behalf of the issuer” as defined in Rule 415 and that none  of  the  Purchasers  is  an  “underwriter.”  In  the  event  that,  despite  the  Company’s  commercially  reasonable efforts and compliance with the terms of this Section 4.3, the Staff refuses to alter its  position,  the  Company  shall  (i)  remove  from  the  Registration  Statement  such  portion  of  the  Registrable Shares (the “Cut Back Shares”) and/or (ii) agree to such restrictions and limitations  on  the  registration  and  resale  of the  Registrable  Shares  as the  Staff  may  require  to  assure  the   Company’s compliance with the requirements of Rule 415 (collectively, the “SEC Restrictions”);   provided, however, that the Company shall not agree to name any Purchaser as an “underwriter”   in such Registration Statement without the prior written consent of such Purchaser. Any cutback   imposed on the Purchasers pursuant to this Section 4.3 shall be allocated among the Purchasers on   a pro rata basis, unless the SEC Restrictions otherwise require or provide or the Purchasers holding  a majority of the Registrable Shares otherwise agree. No liquidated damages shall accrue as to any  Cut Back Shares until such date as the Company is able to effect the registration of such Cut Back  Shares in accordance with any SEC Restrictions (such date, the “Restriction Termination Date”   of such Cut Back Shares). From and after the Restriction Termination Date applicable to any Cut   Back Shares, all of the provisions of this Section 4 shall again be applicable to such Cut Back   Shares; provided, however, that (x) the Filing Deadline for the Registration Statement including   such Cut Back Shares shall be 10 business days after such Restriction Termination Date, and (y)   the Effectiveness Deadline with respect to such Cut Back Shares shall be the 90th day immediately   after  the  Restriction  Termination  Date  or  the  120th  day  if  the  Staff  reviews  such  Registration                                         24.         74109921_16  

 

     Statement (but in any event no later than three Business Days from the Staff indicating it has no   further comments on such Registration Statement).          4.4   Effect of Failure to File and Obtain and Maintain Effectiveness of Registration   Statement. If either: (a) a Registration Statement covering all of the Registrable Shares required   to be covered thereby and required to be filed by the Company pursuant to this Agreement is: (i)   not filed with the Commission on or before the Filing Date (a “Filing Failure”), or (ii) not declared   effective by the Commission on or before the Effectiveness Date (an “Effectiveness Failure”), or   (b) at any time after the Effectiveness Date, sales of all of the Registrable Shares required to be   included on such Registration Statement cannot be made (other than (i) as permitted under Section   4.6, or (ii) if the Registration Statement is on Form S-1, for a period of 15 days following the date   the Company files a post-effective amendment to incorporate the Company’s Annual Report on   Form 10-K) pursuant to such Registration Statement (including, without limitation, because of a   failure to keep such Registration Statement effective, to disclose such information as is necessary   for sales to be made pursuant to such Registration Statement or to register a sufficient number of   shares of Common Stock) (a “Maintenance Failure”), then, in satisfaction of the damages to any   holder of Registrable Shares by reason of any such delay in or reduction of its ability to sell the   underlying shares of Common Stock, the Company shall pay to each holder of Registrable Shares   relating to such Registration Statement an amount in cash equal to 1.0% of such holder’s pro rata   interest in the aggregate purchase price applicable to such Registrable Shares that are not then   registered on each of the following dates: (x) the day of a Filing Failure and on every 30th day   (prorated for periods totaling less than 30 days) thereafter until such Filing Failure is cured; (y) the   day of an Effectiveness Failure and on every 30th day (prorated for periods totaling less than 30   days) thereafter until such Effectiveness Failure is cured; and (z) the initial day of a Maintenance   Failure and on every 30th day (prorated for periods totaling less than 30 days) thereafter until such  Maintenance Failure is cured. The payments to which a holder shall be entitled pursuant to this  Section 4.4 are referred to herein as “Registration Delay Payments”; provided that no Registration  Delay  Payments  shall  be  required  following  such  time  as  when  the  Company’s  registration  obligations terminate under Section 4.7, and provided further that in no event shall the aggregate  Registration Delay Payments accruing under this Section 4.4 exceed 10% of a holder’s aggregate  purchase price. The first such Registration Delay Payment shall be paid within three business days  after the event or failure giving rise to such Registration Delay Payment occurred and all other  Registration Delay Payments shall be paid on the earlier of (I) the last day of the calendar month  during which such Registration Delay Payments are incurred and (II) the third business day after  the event or failure giving rise to the Registration Delay Payments is cured.  If a given Purchaser  elects to receive the Registration Delay Payments as a remedy for any Filing Failure, Effectiveness  Failure or Maintenance Failure, then such Registration Delay Payments shall be the sole recourse  of those electing Purchasers for any Filing Failure, Effectiveness Failure or Maintenance Failure  (and, for the avoidance of doubt, this sentence shall not limit the rights of any Purchaser that does   not elect to receive, or does not receive, the Registration Delay Payments).          4.5   Indemnification.                (a)   The Company agrees to indemnify and hold harmless the Purchasers, and   the  partners,  members,  officers  and  directors  of  the  Purchasers  and  each  person,  if  any,  who   controls the Purchasers within the meaning of the Securities Act or the Exchange Act, from and                                         25.         74109921_16  

 

     against any losses, claims, damages or liabilities to which they may become subject (under the   Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or actions or   proceedings  in  respect  thereof)  arise  out  of,  or  are  based  upon,  any  material  breach  of  this   Agreement by the Company or any untrue statement or alleged untrue statement of a material fact   contained in the Resale Registration Statement or any omission or alleged omission to state therein   a material fact required to be stated therein or necessary to make the statements therein, in light of   the circumstances under which they were made, not misleading or arise out of any failure by the   Company  to  fulfill  any  undertaking  included  in  the  Resale  Registration  Statement  and  the   Company  will,  as  incurred,  reimburse  the  Purchasers,  and  their partners,  members,  officers,   directors  or  controlling  persons  for  any  legal  or  other  expenses  reasonably  incurred  in   investigating, defending or preparing to defend any such action, proceeding or claim; provided,   however, that the Company shall not be liable in any such case to the extent that such loss, claim,   damage or liability (collectively, “Loss”) arises out of, or is based upon: (i) an untrue statement or  omission or alleged untrue statement or omission made in such Resale Registration Statement in   reliance upon and in conformity with written information furnished to the Company by or on behalf   of the Purchasers, or their partners, members, officers, directors or controlling persons specifically   for use in preparation of the Resale Registration Statement; or (ii) any breach of this Agreement   by  the  Purchasers; provided further, however,  that  the  Company  shall  not  be  liable  to  the   Purchasers (or any partner, member, officer, director or controlling person of the Purchasers) to   the  extent  that  any  such  Loss  is  caused  by  an  untrue  statement or  omission  or  alleged  untrue   statement or omission made in any preliminary prospectus if either (i) (A) any Purchaser failed to   send or deliver a copy of the final prospectus with or prior to, or any Purchaser failed to confirm   that a final prospectus was deemed to be delivered prior to (in accordance with Rule 172 of the   Securities  Act),  the  delivery  of written confirmation of the sale by a Purchaser to the person   asserting the claim from which such Loss resulted and (B) the final prospectus corrected such   untrue  statement  or  omission,  (ii)  (X)  such  untrue  statement  or  omission  is  corrected  in  an   amendment or supplement to the prospectus and (Y) having previously been furnished by or on   behalf of the Company with copies of the prospectus as so amended or supplemented or notified   by  the  Company  that  such  amended  or  supplemented  prospectus  has  been  filed  with  the   Commission, in accordance with Rule 172 of the Securities Act, any Purchaser thereafter fails to   deliver such prospectus as so amended or supplemented, with or prior to or a Purchaser fails to   confirm that the prospectus as so amended or supplemented was deemed to be delivered prior to   (in accordance with Rule 172 of the Securities Act), the delivery of written confirmation of the   sale by a Purchaser to the person asserting the claim from which such Loss resulted or (iii) a   Purchaser sold Registrable Shares in violation of such Purchasers’ covenant contained in Section   3.2 of this Agreement.                (b)   The  Purchasers  agree,  severally  and  not  jointly,  to  indemnify  and  hold   harmless the Company (and each person, if any, who controls the Company within the meaning of   Section 15 of the Securities Act or Section 20 of the Exchange Act, each officer of the Company   who signs the Resale Registration Statement and each director of the Company), from and against   any losses, claims, damages or liabilities to which the Company (or any such officer, director or   controlling person) may become subject (under the Securities Act or otherwise), insofar as such   losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or   are based upon, any material breach of this Agreement by the Purchasers or untrue statement or   alleged untrue statement of a material fact contained in the Resale Registration Statement (or any                                        26.         74109921_16  

 

     omission  or  alleged  omission  to  state  therein  a  material  fact  required  to  be  stated  therein  or   necessary to make the statements therein, in light of the circumstances under which they were   made, not misleading in each case, on the effective date thereof), if, and only to the extent, such   untrue statement or omission or alleged untrue statement or omission was made in reliance upon   and in conformity with written information furnished by or on behalf of the Purchasers specifically   for use in preparation of the Resale Registration Statement, and the Purchasers, severally and not   jointly, will reimburse the Company (and each of its officers, directors or controlling persons) for   any legal or other expenses reasonably incurred in investigating, defending or preparing to defend   any such action, proceeding or claim; provided, however, that in no event shall any indemnity   under this Section 4.54.5(b) be greater in amount than the dollar amount of the proceeds received   by the Purchasers upon the sale of such Registrable Shares.                (c)   Promptly after receipt by any indemnified person of a notice of a claim or   the beginning of any action in respect of which indemnity is to be sought against an indemnifying   person pursuant to this Section 4.5, such indemnified person shall notify the indemnifying person   in writing of such claim or of the commencement of such action, and, subject to the provisions   hereinafter stated, in case any such action shall be brought against an indemnified person and such   indemnifying person shall have been notified thereof, such indemnifying person shall be entitled   to participate therein, and, to the extent that it shall wish, to assume the defense thereof, with   counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying   person to such indemnified person of its election to assume the defense thereof, such indemnifying   person shall not be liable to such indemnified person for any legal expenses subsequently incurred   by such indemnified person in connection with the defense thereof; provided, however, that if there   exists  or  shall  exist  a  conflict  of  interest  that  would  make  it  inappropriate  in  the  reasonable   judgment of the indemnified person for the same counsel to represent both the indemnified person   and such indemnifying person or any affiliate or associate thereof, the indemnified person shall be   entitled to retain its own counsel at the expense of such indemnifying person; provided, further,   that no indemnifying person shall be responsible for the fees and expense of more than one separate   counsel for all indemnified parties. The indemnifying party shall not settle an action without the   consent of the indemnified party, which consent shall not be unreasonably withheld.                (d)   If after proper notice of a claim or the commencement of any action against   the indemnified party, the indemnifying party does not choose to participate, then the indemnified   party shall assume the defense thereof and upon written notice by the indemnified party requesting   advance  payment  of  a  stated  amount  for  its  reasonable  defense  costs  and  expenses,  the   indemnifying party shall advance payment for such reasonable defense costs and expenses (the   “Advance Indemnification Payment”) to the indemnified party. In the event that the indemnified   party’s  actual  defense  costs  and  expenses  exceed  the  amount  of the  Advance  Indemnification   Payment,  then  upon  written  request  by  the  indemnified  party,  the  indemnifying  party  shall   reimburse the indemnified party for such difference; in the event that the Advance Indemnification   Payment exceeds the indemnified party’s actual costs and expenses, the indemnified party shall  promptly remit payment of such difference to the indemnifying party.               (e)   If the indemnification provided for in this Section 4.5 is held by a court of  competent jurisdiction to be unavailable to an indemnified party with respect to any losses, claims,  damages  or  liabilities  referred to  herein,  the  indemnifying  party,  in  lieu  of  indemnifying  such                                         27.         74109921_16  

 

     indemnified party thereunder, shall to the extent permitted by applicable law contribute to the   amount  paid  or  payable  by  such  indemnified  party  as  a  result  of  such  loss,  claim,  damage  or   liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party  on the one hand and of the indemnified party on the other, as well as any other relevant equitable  considerations;  provided,  that  in  no  event  shall  any  contribution  by  an  indemnifying  party  hereunder  be  greater  in  amount  than  the  dollar  amount  of  the  proceeds  received  by  such  indemnifying party upon the sale of such Registrable Shares.         4.6   Prospectus  Suspension.  Each  Purchaser  acknowledge  that  there  may  be  times  when  the  Company  must  suspend  the  use  of  the  prospectus  forming a part of the Resale  Registration Statement until such time as an amendment to the Resale Registration Statement has   been filed by the Company and declared effective by the Commission, or until such time as the   Company has filed an appropriate report with the Commission pursuant to the Exchange Act. Each   Purchaser hereby covenants that it will not sell any Registrable Shares pursuant to said prospectus   during the period commencing at the time at which the Company gives the Purchasers notice of   the  suspension  of  the  use  of  said  prospectus  and  ending  at  the time  the  Company  gives  the   Purchasers  notice  that  the  Purchasers  may  thereafter  effect  sales  pursuant  to  said  prospectus;   provided, that such suspension periods shall in no event exceed 30 days in any 12 month period   and that, in the good faith judgment of the Company’s board of directors, the Company would, in   the absence of such delay or suspension hereunder, be required under state or federal securities   laws to disclose any corporate development, a potentially significant transaction or event involving   the Company, or any negotiations, discussions, or proposals directly relating thereto, in either case   the disclosure of which would reasonably be expected to have a material adverse effect upon the   Company or its stockholders.          4.7   Termination  of  Obligations.  The  obligations  of  the  Company  pursuant  to   Section 4.2 hereof shall cease and terminate, with respect to any Registrable Shares, upon the   earlier to occur of (a) such time such Registrable Shares have been resold, or (b) such time as such   Registrable Shares no longer remain Registrable Shares pursuant to Section 4.1(b) hereof.          4.8   Reporting Requirements.               (a)   With a view to making available the benefits of certain rules and regulations   of the Commission that may at any time permit the sale of the Securities to the public without   registration or pursuant to a registration statement on Form S-3, the Company agrees to use:                      (i)   make  and  keep  public  information  available,  as  those  terms  are   understood and defined in Rule 144;                      (ii)  file with the Commission in a timely manner all reports and other   documents required of the Company under the Securities Act and the Exchange Act; and                      (iii) so long as a Purchaser owns Registrable Shares, to furnish to such   Purchaser upon request (A) a written statement by the Company as to whether it is in compliance   with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, or whether   it is qualified as a registrant whose securities may be resold pursuant to Commission Form S-3,   (B) a copy of the most recent annual or quarterly report of the Company and such other reports                                        28.         74109921_16  

 

     and documents so filed by the Company and (C) such other information as may be reasonably   requested to permit the Purchaser to sell such securities pursuant to Rule 144.          4.9   Blue  Sky.  The  Company  shall  obtain  and  maintain  all  necessary  blue  sky law   permits and qualifications, or secured exemptions therefrom, required by any state for the offer   and sale of Registrable Shares.    5.    OTHER AGREEMENTS OF THE PARTIES         5.1   Integration. Except as contemplated by the terms of this Agreement, the Company   shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security  (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the  Securities such that the rules of the Trading Market would require shareholder approval of this  transaction prior to the closing of such other transaction unless shareholder approval is obtained  before the closing of such subsequent transaction.         5.2   Securities  Laws  Disclosure;  Publicity.   The  Company  shall:  (a)  issue  a  press   release disclosing the material terms of the transactions contemplated hereby promptly following   the execution and delivery hereof (the “Press Release”), and (b) by 5:30 p.m. (New York City  time) on the fourth Trading Day following the date hereof, file a Current Report on Form 8-K  disclosing the material terms of the transactions contemplated hereby (the “Form 8-K”). From and   after the issuance of the Press Release, no Purchaser shall be in possession of any material, non-  public information received from the Company or any of their respective officers, directors or   employees that is not disclosed in the Press Release.          5.3   Non-Public Information.  Except with respect to the material terms and conditions   of  the  transactions  contemplated by  the  Transaction  Documents, the  Company  covenants  and   agrees that neither it nor any other person acting on its behalf will provide any Purchaser or its   agents or counsel with any information that the Company believes constitutes material non-public   information.          5.4   Use of Proceeds. The Company will use the proceeds from the offering to support   the  ongoing  clinical  study  of  the  GEN-009  program  and  the  development  of  other  programs,   including filing an Investigational New Drug Application with the FDA for GEN-011, as well as   for working capital and other general corporate purposes.          5.5   Reservation of Common Stock. As of the date hereof, the Company has reserved   and the Company shall continue to reserve and keep available at all times, free of preemptive   rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company   to issue the Shares and the Warrant Shares pursuant to any exercise of the Warrants.    6.    MISCELLANEOUS          6.1   Termination. This Agreement may be terminated by any Purchaser, as to such   Purchaser’s  obligations  hereunder  only  and  without  any  effect  whatsoever  on  the  obligations   between the Company and the other Purchasers, by written notice to the other parties, if the Initial   Closing has not been consummated within ten calendar days from the Effective Date through no                                        29.         74109921_16  

 

     fault of such Purchaser; provided, however, that no such termination will affect the right of any   party to sue for any breach by the other party (or parties).          6.2   Fees and Expenses.  Except as expressly set forth in the Transaction Documents   to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and   other experts, if any, and all other expenses incurred by such party incident to the negotiation,   preparation,  execution,  delivery and  performance  of  this  Agreement.  Notwithstanding  the   foregoing, the Company shall pay all transfer agent fees, stamp taxes and other taxes and duties   levied in connection with the delivery of any Securities to the Purchasers.          6.3   Entire Agreement.  The Transaction Documents, together with the exhibits and   schedules thereto, contain the entire understanding of the parties with respect to the subject matter   hereof and supersede all prior agreements and understandings, oral or written, with respect to such   subject matter, which the parties acknowledge have been merged into such documents, exhibits   and schedules.          6.4   Notices.  Any and all notices or other communications or deliveries required or   permitted to be provided hereunder shall be in writing and shall be deemed given and effective   upon  actual  receipt  via mail,  courier  or  confirmed  email  by  the  party to  whom  such  notice  is   required to be given.  The address for such notices and communications shall be as set forth on the   signature pages attached hereto.          6.5   Amendments;  Waivers.   No  provision  of  this  Agreement  may  be  waived  or   amended except in a written instrument signed, in the case of an amendment, by (a) the Company   and (b) Purchasers holding at least a majority of the Initial Closing Common Shares and Warrants   sold in the Initial Closing (as a single class on an as-converted to Common Stock basis) and then-  held by a Purchaser or, in the case of a waiver, by the party against whom enforcement of any such   waived provision is sought.  No waiver of any default with respect to any provision, condition or   requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver   of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor   shall any delay or omission of any party to exercise any right hereunder in any manner impair the   exercise of any such right.          6.6   Headings.  The headings herein are for convenience only, do not constitute a part   of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.          6.7   Successors and Assigns.  This Agreement shall be binding upon and inure to the  benefit of the parties and their permitted successors and assigns.  The Company may not assign   this Agreement or any rights or obligations hereunder without the prior written consent of each   Purchaser (other than by merger).  The Purchasers may not assign this Agreement or any rights or   obligations hereunder without the prior written consent of the Company (other than by merger).          6.8   Third-Party  Beneficiaries.   The  Placement  Agent  shall  be  the  third  party   beneficiary  of  the  representations  and  warranties  of  the  Company  in Section  3.1  and  the  representations, warranties and covenants of the Purchasers in Section 3.2. This Agreement is  intended for the benefit of the parties hereto and their respective permitted successors and assigns                                         30.         74109921_16  

 

     and is not for the benefit of, nor may any provision hereof be enforced by, any other person, except   as otherwise set forth in this Section 6.8.          6.9   Governing Law.  All questions concerning the construction, validity, enforcement   and interpretation of the Transaction Documents shall be governed by and construed and enforced   in accordance with the internal laws of the State of New York, without regard to the principles of   conflicts of law thereof.  Each party agrees that all legal proceedings concerning the interpretations,   enforcement  and  defense  of  the  transactions  contemplated  by  this  Agreement  and  any  other   Transaction  Documents  (whether  brought  against  a  party  hereto  or  its  respective  affiliates,   directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state   and federal courts sitting in the State of New York. Each party hereby irrevocably submits to the   exclusive  jurisdiction  of  the  state  and  federal  courts  sitting in the State of New York for the   adjudication  of  any  dispute  hereunder  or  in  connection  herewith  or  with  any  transaction  contemplated hereby or discussed herein (including with respect to the enforcement of any of the  Transaction Documents), 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 improper or is an inconvenient venue for such proceeding.  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 via registered or certified mail or   overnight delivery (with evidence of delivery) to such party at the address in effect for notices to   it under this Agreement and agrees that such service shall constitute good and sufficient service of   process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right   to serve process in any other manner permitted by law.  If either party shall commence an action   or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party   in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’   fees and other costs and expenses incurred with the investigation, preparation and prosecution of   such action or proceeding.          6.10  Execution.  This Agreement may be executed in two or more counterparts, all of   which when taken together shall be considered one and the same agreement and shall become   effective when counterparts have been signed by each party and delivered to each other party, it   being understood that the parties need not sign the same counterpart.  In the event that any signature   on this Agreement is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format   data file, such signature shall create a legally valid and binding obligation of the party executing   (or on whose behalf such signature is executed) with the same force and effect as if such facsimile   or “.pdf” signature page were an original thereof.          6.11  Severability.  If any term, provision, covenant or restriction of this Agreement is   held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder   of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and   effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their   commercially reasonable efforts to find and employ an alternative means to achieve the same or   substantially the same result as that contemplated by such term, provision, covenant or restriction.   It is hereby stipulated and declared to be the intention of the parties that they would have executed   the remaining terms, provisions, covenants and restrictions without including any of such that may   be hereafter declared invalid, illegal, void or unenforceable.                                         31.         74109921_16  

 

           6.12  Rescission  and  Withdrawal  Right.   Notwithstanding  anything  to  the  contrary   contained  in  (and  without  limiting  any  similar  provisions  of)  any  of  the  other  Transaction   Documents,  whenever  any  Purchaser  exercises  a  right,  election, demand  or  option  under  a   Transaction Document and the Company does not timely perform its related obligations within the   periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from   time to time upon written notice to the Company, any relevant notice, demand or election in whole   or in part without prejudice to its future actions and rights.          6.13  Replacement  of  Securities.   If  any  certificate  or  instrument  evidencing  any  Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in   exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu   of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence   reasonably  satisfactory  to  the  Company  of  such  loss,  theft  or  destruction  and  customary  and   reasonable indemnity or bond, if requested.  The applicant for a new certificate or instrument under   such  circumstances  shall  also  pay  any  reasonable  third-party  costs  (including  customary   indemnity) associated with the issuance of such replacement Securities.          6.14  Remedies.  The Company shall be entitled to exercise all rights provided herein or   granted by law, including recovery of damages, for any breach of the Transaction Documents;   provided, however,  that,  with  respect  to  each  Purchaser’s  binding  agreement  to  purchase  its   applicable  Second  Closing  Shares  at  the  Second  Closing,  the  Company’s  sole  and  exclusive   remedy for the failure by a Purchaser to purchase at least 50% of its applicable Second Closing   Shares shall be the immediate termination of such Purchaser’s Warrant (in accordance with the   terms set forth in the Warrant).          6.15  Independent Nature of Purchasers’ Obligations and Rights.  The obligations of   each Purchaser under any Transaction Document are several and not joint with the obligations of   any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-  performance of the obligations of any other Purchaser under any Transaction Document.  Nothing   contained herein or in any other Transaction Document, and no action taken by any Purchaser   pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a   joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way   acting in concert or as a group with respect to such obligations or the transactions contemplated   by the Transaction Documents.  Each Purchaser shall be entitled to independently protect and   enforce its rights, including without limitation, the rights arising out of this Agreement or out of   the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined   as an additional party in any proceeding for such purpose.          6.16  Construction. The parties agree that each of them and/or their respective counsel   has  reviewed  and  had  an  opportunity  to  revise  the  Transaction  Documents  and,  therefore,  the   normal rule of construction to the effect that any ambiguities are to be resolved against the drafting   party shall not be employed in the interpretation of the Transaction Documents or any amendments   hereto.          6.17  WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN   ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE   PARTIES  EACH  KNOWINGLY  AND  INTENTIONALLY,  TO  THE  GREATEST  EXTENT                                        32.         74109921_16  

 

   PERMITTED  BY  APPLICABLE  LAW,  HEREBY  ABSOLUTELY,  UNCONDITIONALLY,  IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.                       [Remainder of page intentionally left blank.]                                                                                    33.      74109921_16  

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement to be duly  executed by their respective authorized signatories as of the date first indicated above.                                       BIOTECHNOLOGY VALUE FUND, LP                                       By:                                      Name:  Mark Lampert                                      Title: President BVF Inc., General Partner of BVF                                      Partners L.P., itself GP of Biotechnology Value                                      Fund, L.P.                                       Address:                                       44 Montgomery Street, 40th Floor                                      San Francisco, CA 94104                                       With a copy to (which shall not constitute notice):                                       Gibson, Dunn & Crutcher LLP                                      555 Mission Street, Suite 3000                                      San Francisco, CA 94105                                      Attention: Ryan A. Murr                                       Shares Beneficially                                      Owned Prior to                                      Initial Closing:  2,488,513  common shares/2,362,373 warrants                                      EIN: 36-3924731                                       Contact:  James Kratky, CCO                                       Email:  kratky@bvflp.com                                       Address for physical delivery of securities:                                       The Depository Trust Company                                      570 Washington Boulevard – 5th Floor                                      Jersey City, NJ 07310                                      Attn: BNY Mellon Branch Deposit Department  

 

IN WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement to be duly  executed by their respective authorized signatories as of the date first indicated above.                                        BIOTECHNOLOGY VALUE FUND II, LP                                       By:                                      Name:  Mark Lampert                                      Title: President BVF Inc., General Partner of BVF                                      Partners L.P., itself GP of Biotechnology Value                                      Fund II, L.P.                                       Address:                                       44 Montgomery Street, 40th Floor                                      San Francisco, CA 94104                                       With a copy to (which shall not constitute notice):                                       Gibson, Dunn & Crutcher LLP                                      555 Mission Street, Suite 3000                                      San Francisco, CA 94105                                      Attention: Ryan A. Murr                                       Shares Beneficially                                      Owned Prior to                                      Initial Closing:   1,760,262 common shares/1,578,241 warrants                                      EIN: 94-3341571                                       Contact:  James Kratky, CCO                                       Email:  kratky@bvflp.com                                       Address for physical delivery of securities:                                       The Depository Trust Company                                      570 Washington Boulevard – 5th Floor                                      Jersey City, NJ 07310                                      Attn: BNY Mellon Branch Deposit Department  

 

IN WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement to be duly  executed by their respective authorized signatories as of the date first indicated above.                                       BIOTECHNOLOGY VALUE TRADING FUND                                      OS, L.P.                                       By:                                      Name:  Mark Lampert                                      Title: President BVF Inc., General Partner of BVF                                      Partners L.P., itself sole member of BVF Partners                                      OS Ltd., itself GP of Biotechnology Trading Fund                                      OS, L.P.                                       Address:                                       PO Box 309 Ugland House, Grand Cayman, KY1-                                      1104, Cayman Islands                                       With a copy to (which shall not constitute notice):                                       Gibson, Dunn & Crutcher LLP                                      555 Mission Street, Suite 3000                                      San Francisco, CA 94105                                      Attention: Ryan A. Murr                                       Shares Beneficially                                      Owned Prior to                                      Initial Closing:   424,945 common shares/405,088 warrants                                      EIN: 98-1263910                                       Contact:  James Kratky, CCO                                       Email:  kratky@bvflp.com                                       Address for physical delivery of securities:                                       The Depository Trust Company                                      570 Washington Boulevard – 5th Floor                                      Jersey City, NJ 07310                                      Attn: BNY Mellon Branch Deposit Department  

 

IN WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement to be duly  executed by their respective authorized signatories as of the date first indicated above.                                       MSI BVF SPV, L.L.C.                                       c/o Magnitude Capital                                       By:                                      Name:  Mark Lampert                                      Title: President BVF Inc., itself General Partner of                                      BVF Partners L.P., itself attorney-in-fact for MSI                                      BVF SPV, L.L.C.                                       Address:                                       200 Park Avenue, 56th Floor                                      New York, NY 10166                                       With a copy to (which shall not constitute notice):                                       Gibson, Dunn & Crutcher LLP                                      555 Mission Street, Suite 3000                                      San Francisco, CA 94105                                      Attention: Ryan A. Murr                                       Shares Beneficially                                      Owned Prior to                                      Initial Closing:   440,735 common shares/440,735 warrants                                      EIN: 46-5658235                                       Contact:  James Kratky, CCO                                       Email:  kratky@bvflp.com                                       Address for physical delivery of securities:                                       BNP Paribas Prime Brokerage, Inc.                                      787 7th  Ave, 8th floor                                      New York , NY 10019                                      Attn: Jose A. Nevarez  

 

 

 

 

 

 

 

                                                           EXHIBIT A                                           INITIAL CLOSING SCHEDULE                                              Purchase        Pre-       Purchase                               Shares of     Price for      Funded      Price for                 Purchase                               Common        Common        Warrants       Pre-                    Price for     Aggregate                              Stock to be      Stock         to be       Funded      Warrant      Warrant        Purchase            Name              Purchased                   Purchased     Warrant       Shares       Shares          Price   New Enterprise Associates    9,948,269  $4,689,116.62            -            -   2,487,067   $310,883.38   $5,000,000.00   16, L.P.   S.R. One, Limited            9,948,269  $4,689,116.62            -            -   2,487,067   $310,883.38   $5,000,000.00   Biotechnology Value          1,289,375    $607,847.74   2,019,261  $951,677.71     827,160    $103,395.00   $1,662,920.45   Fund, LP   Biotechnology Value Fund     1,163,885    $548,688.40   1,822,733  $859,054.06     746,654     $93,331.75   $1,501,074.21   II, LP   Biotechnology Value            166,482     $78,484.35     260,723  $122,878.75     106,801     $13,350.13     $214,713.23   Trading Fund OS, L.P.   MSI BVF SPV, L.L.C.             94,046     $44,335.98     147,283    $69,414.48     60,332       $7,541.5     $121,291.96   Dafna Lifescience LP         1,352,964    $637,719.58            -            -    338,241     $42,280.13     $679,999.71   Dafna Lifescience Select       636,689   $300,103.393            -            -    159,172     $19,896.50     $319,999.89   LP   Lincoln Park Capital Fund,   1,000,000    $471,350.00            -            -    250,000     $31,250.00     $502,600.00   LLC                                                                       36.      74109921_16  

 

                                                           EXHIBIT B                                           SECOND CLOSING SCHEDULE                                              Name                              Aggregate Purchase Price                                New Enterprise Associates 16, L.P.                             $10,000,000.00                                        S.R. One, Limited                                       $5,000,000.00                           Biotechnology Value Fund, LP, Biotechnology                          $7,000,000.00                          Value Fund II, LP, Biotechnology Value Trading                               Fund OS, L.P., MSI BVF SPV, L.L.C.                                      Dafna Lifescience LP                                      $1,156,000.00                                   Dafna Lifescience Select LP                                    $544,000.00                                  Lincoln Park Capital Fund, LLC                                  $502,600.00                                                                       37.      74109921_16  

 

                                    EXHIBIT C                               FORM OF WARRANT                                                                    38.      74109921_16  

 

     NEITHER  THIS  SECURITY  NOR  THE  SECURITIES  FOR  WHICH  THIS  SECURITY  IS  EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE  COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON  AN  EXEMPTION  FROM  REGISTRATION     UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED  OR  SOLD  EXCEPT  PURSUANT  TO  AN  EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,  OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF  THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES  LAWS.       CLASS B WARRANT NO. 2019-[______]                NUMBER OF SHARES:  [_______]  DATE OF ISSUANCE:  February 14, 2019                (subject to adjustment hereunder)  EXPIRATION DATE: February 14, 2024                       CLASS B WARRANT TO PURCHASE SHARES                              OF COMMON STOCK OF                            GENOCEA BIOSCIENCES, INC.        This Class B Warrant (the “Warrant”) is issued by Genocea Biosciences, Inc., a Delaware  corporation (the “Company”), to [________], or its registered assigns (including any successors   or assigns, the “Holder”), and is subject to the terms and conditions set forth below. The Warrant   is being issued pursuant to a Warrant Agreement between the Company and Computershare Inc.,   a Delaware corporation (“Computershare”), and its fully owned subsidiary Computershare Trust   Company, N.A., a national banking association (collectively with Computershare, the “Warrant   Agent”).         1.   EXERCISE OF WARRANT.             (a)  Number and Exercise Price of Warrant Shares; Expiration Date. Subject to the   terms and conditions set forth herein, the Holder is entitled to purchase from the Company up to   [______] shares of the Company’s Common Stock, $0.001 par value per share (the “Common   Stock”) (as adjusted from time to time pursuant to the provisions of this Warrant) (the “Warrant   Shares”), at a purchase price of $0.5656 on February 14, 2024, and (ii) the Second Closing Date,   if the Holder becomes a Non-Participating Purchaser (the “Expiration Date”). Capitalized terms   used and not otherwise defined herein shall have the meanings set forth in that certain Subscription   Agreement  dated  as  of  February  11,  2019,  among  the  Company  and the  purchasers  signatory   thereto.                                           1                  74024542_12  

 

            (b)  Method of Exercise.  While this Warrant remains outstanding and exercisable in  accordance with Section 1(a) above, the Holder may exercise this Warrant in whole or in part in  accordance with Section 5 by either:                 (1)  wire transfer to the Company or cashier’s check drawn on a United States  bank made payable to the order of the Company, or                  (2)  exercising of the right to credit the Exercise Price against the Fair Market  Value (as defined below) of the Warrant Shares (as defined below) at the time of exercise (the  “Net Exercise”) pursuant to Section 1(c).             (c)  Net Exercise. If at any time after the Effectiveness Date (as defined in the that  certain Purchase Agreement, by and among the Company, the Holder and certain other purchasers  of shares and warrants listed on the schedules thereto (the “Purchase Agreement”)) there is no  effective Resale Registration Statement registering the resale of the Warrant Shares by the Holder,  then the Holder may elect to exercise this Warrant by Net Exercise pursuant to this Section 1(c).  At any time that this Warrant may be exercised by Net Exercise pursuant to this Section 1(c), if  the Company shall receive written notice from the Holder at the time of exercise of this Warrant  that the Holder elects to Net Exercise the Warrant, the Company shall deliver to such Holder  (without payment by the Holder of any exercise price in cash) that number of Warrant Shares  computed using the following formula:                                         Y (A - B)                                  X                                                  A        Where               X =   The number of Warrant Shares to be issued to the Holder.               Y =   The number of Warrant Shares purchasable under this Warrant or, if only                    a portion of the Warrant is being exercised, the portion of the Warrant                    being cancelled (at the date of such calculation).               A =   The Fair Market Value of one share of Common Stock (at the date of such                    calculation).               B =   The Exercise Price (as adjusted to the date of such calculations).            The  “Fair  Market  Value”  of  one  share  of  Common  Stock  shall  mean (x) the last  reported sale price and, if there are no sales, the last reported bid price, of the Common Stock on  the last trading day prior to the date of exercise on the trading market on which the Common Stock  is listed as reported by Bloomberg Financial Markets (or a comparable reporting service of national  reputation  selected  by  the  Company  and  reasonably  acceptable  to  the  Holder  if  Bloomberg                                        -2-           74024542_12  

 

     Financial  Markets  is  not  then  reporting  sales  prices  of  the  Common  Stock)  (collectively,   “Bloomberg”), or (y) if the foregoing does not apply, the last sales price of such security in the   over-the-counter market on the pink sheets by Pink Sheets LLC (formerly the National Quotation   Bureau, Inc.) (the “pink sheets”) or bulletin board for such security as reported by Bloomberg, or   if no sales price is so reported, the last bid price of the Common Stock as reported by Bloomberg   or (z) if the fair market value cannot be calculated on any of the foregoing bases, the fair market   value determined by the Company’s Board of Directors in good faith.              (d)  Disputes.  In the case of a dispute as to the determination of the Exercise Price   or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the  Holder the number of Warrant Shares that are not disputed.             (e)  Deemed Exercise.  In the event that immediately prior to the close of business   on the Expiration Date, the Fair Market Value of one share of Common Stock (as determined in   accordance with Section 1(c) above) is greater than the then applicable Exercise Price, this Warrant   shall be deemed to be automatically exercised on a net exercise issue basis pursuant to Section   1(c) above, and the Company shall deliver the applicable number of shares of Common Stock to   the Holder pursuant to the provisions of Section 1(c) above and this Section 1(e).        2.   CERTAIN ADJUSTMENTS.             (a)  Adjustment of Number of Warrant Shares and Exercise Price. The number and   kind of Warrant Shares purchasable upon exercise of this Warrant and the Exercise Price shall be   subject to adjustment from time to time as follows:                   (1)  Subdivisions, Combinations and Other Issuances.  If the Company shall at   any time after the Date of Issuance but prior to the Expiration Date subdivide its shares of capital   stock of the same class as the Warrant Shares, by split-up or otherwise, or combine such shares of   capital stock, or issue additional shares of capital stock as a dividend with respect to any shares of   such capital stock, the number of Warrant Shares issuable on the exercise of this Warrant shall   forthwith  be  proportionately  increased  in  the  case  of  a  subdivision  or  stock  dividend,  or   proportionately decreased in the case of a combination.  Appropriate adjustments shall also be   made to the Exercise Price payable per share, but the aggregate Exercise Price payable for the total   number of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same.    Any adjustment under this Section 2(a)(1) shall become effective at the close of business on the   date the subdivision or combination becomes effective, or as of the record date of such dividend,   or in the event that no record date is fixed, upon the making of such dividend.                  (2)  Reorganizations  or  Mergers.   In case  of  any  reclassification,  capital   reorganization  or  change  in  the  capital  stock  of  the  Company  (other than as a result of a   subdivision, combination or stock dividend provided for in Section 2(a)(1) above) that occurs after   the Date of Issuance, then, as a condition of such reclassification, reorganization or change, lawful   provision shall be made, and duly executed documents evidencing the same from the Company or                                        -3-               74024542_12  

 

   its successor shall be delivered to the Holder, so that the Holder shall thereafter have the right at  any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable  upon the exercise of this Warrant, the kind and amount of shares of stock and/or other securities  or  property (including, if  applicable,  cash)  receivable in connection  with  such reclassification,  reorganization or change by a holder of the same number and type of securities as were purchasable  as  Warrant  Shares  by  the  Holder  immediately  prior  to  such  reclassification,  reorganization  or  change.  In any such case, appropriate provisions shall be made with respect to the rights and  interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to  any shares of stock or other securities or property deliverable upon exercise hereof, and appropriate  adjustments  shall  be  made  to  the  Exercise  Price  payable  hereunder,  provided  the  aggregate  Exercise  Price  shall  remain  the  same  (and,  for  the  avoidance  of  doubt,  this  Warrant  shall  be  exclusively exercisable for such shares of stock and/or other securities or property from and after  the consummation of such reclassification or other change in the capital stock of the Company).                 (3)  Rights Upon Distribution of Assets.  If the Company shall declare or make  any dividend, other distribution of its assets (or rights to acquire its assets) or evidences of its  indebtedness to holders of shares of Common Stock generally (which dividend or other distribution  has not already been given to the Holder with respect to the Warrant Shares), by way of return of  capital  or  otherwise  not  addressed  by  this  Section  2  above  (including,  without  limitation,  any  distribution of cash, stock or other securities, property or options by way of a dividend, spin off,  subdivision,  reclassification,  corporate  rearrangement,  scheme of  arrangement  or  other  similar  transaction)  (a  “Distribution”),  at  any  time  after  the  issuance  of  this  Warrant  and  prior  to  the  Expiration Date, then, in each such case the Holder shall be entitled (subject to the following  proviso)  to  participate  in  such  Distribution  to  the  same  extent  that  the  Holder  would  have  participated therein if the Holder had held the number of shares of Common Stock acquirable upon  complete exercise of this Warrant (without regard to any limitations or restrictions on exercise of  this  Warrant,  including,  without  limitation,  the  Beneficial  Ownership  Limitation)  immediately  before the date on which a record is taken for such Distribution, or, if no such record is taken, the  date as of which the record holders of shares of Common Stock are  to  be  determined  for  the  participation in such Distribution; provided, however, that the Holder shall only be permitted to  take delivery of such Distribution if and to the extent the Holder exercises some or all of the  Warrant (the portion of delivery of the Distribution shall be based on the pro rata portion of the  Warrant Shares issuable upon the portion of the Warrant exercised as compared to the maximum  number of Warrant Shares issuable upon complete exercise of the Warrant (without regard to any  limitations or restrictions on exercise of this Warrant, including, without limitation, the Beneficial  Ownership Limitation)), provided that, to the extent that the Warrant has not been partially or  completely exercised at the time of such Distribution, such portion of the Distribution shall be held  in abeyance for the benefit of the Holder until the Holder has exercised the Warrant, at which time  the Company shall issue to the Holder the pro-rata portion of such Distribution equivalent to that  portion of this Warrant then exercised. Notwithstanding anything to the contrary contained herein,  to the extent that the Holder’s right to participate in any such Distribution would result in the  Holder and its affiliates exceeding the Beneficial Ownership Limitation, if applicable pursuant to  Section 5(c) herein, then the Holder shall not be entitled to participate in such Distribution to the                                       -4-           74024542_12  

 

     extent of the Beneficial Ownership Limitation (and shall not be entitled to beneficial ownership of   such shares of Common Stock as a result of such Distribution (and beneficial ownership) to the   extent of any such excess) and the portion of such Distribution shall be held in abeyance for the   benefit of the Holder until such time or times, if ever, as its right thereto would not result in the   Holder and its affiliates exceeding the Beneficial Ownership Limitation, at which time or times   the Holder shall be granted such Distribution (and any Distributions declared or made on such   initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent   as if there had been no such limitation).             (b)  Notice  of  Adjustment.   When  any  adjustment  is  required  to  be  made  in  the   number or kind of shares purchasable upon exercise of the Warrant, or in the Exercise Price, the   Company shall promptly notify the Holder of such event and of the number of Warrant Shares or   other securities or property thereafter purchasable upon exercise of this Warrant.             (c)  Calculations.  No adjustment in the Exercise Price shall be required unless such   adjustment  would  require  an  increase  or  decrease  of  at  least  $0.01  in  such  price;  provided,   however, that any adjustment which by reason of this Section 2(c) is not required to be made shall   be carried forward and taken into account in any subsequent adjustments under this Section 2.  All   calculations under this Section 2 shall be made by the Company in good faith and shall be made   to the nearest cent or to the nearest one hundredth of a share, as applicable.  No adjustment need   be made for a change in the par value or no par value of the Company’s Common Stock.             (d)  Treatment of Warrant upon a Change of Control.                  (1)  If,  at  any  time  while  this  Warrant  is  outstanding,  there  is  a  Change  of   Control (as defined below), then the Holder shall have the right thereafter to receive, upon exercise   of this Warrant, the same amount and kind of securities, cash or property as it would have been   entitled to receive upon the occurrence of such Change of Control if it had been, immediately prior   to such Change of Control, the holder of the number of Warrant Shares then issuable upon exercise   in full of this Warrant (the “Alternate Consideration”).  For purposes of any such exercise, the   determination  of  the  Exercise  Price  shall  be  appropriately  adjusted  to  apply  to  such  Alternate   Consideration based on the amount of Alternate Consideration issuable in respect of one share of  Common Stock in such Change of Control, and the Company shall apportion the Exercise Price  among the Alternate Consideration in a reasonable manner reflecting the relative value of any  different components of the Alternate Consideration.  If holders of Common Stock are given any  choice as to the securities, cash or property to be received in a Change of Control, then the Holder  shall be given the same choice as to the Alternate Consideration it receives upon any exercise of  this Warrant following such Change of Control.  Any successor to the Company or surviving entity  in such Change of Control shall issue to the Holder a new warrant substantially in the form of this  Warrant and consistent with the foregoing provisions and evidencing the Holder’s right to purchase  the Alternate Consideration for the aggregate Exercise Price upon exercise thereof.                                         -5-               74024542_12  

 

                 (2)  Notice of a Change of Control. The Company shall provide written notice  to the Holder of a Change of Control reasonably promptly after public announcement thereof (and,  in any event, not less than twenty (20) trading days prior to the consummation of such Change of  Control) and such notice shall include (i) the projected date of consummation of the Change of  Control to the extent known at the time such notice is delivered and (ii) the expected consideration  to be received by the Company’s stockholders in such Change of Control.                 (3)  As used in this Warrant, a “Change of Control” shall mean (i) a merger or  consolidation of the Company with another entity, in which the Company is not the survivor or  the stockholders of the Company immediately prior to such merger or consolidation do not own,  directly or indirectly, at least 50% of the voting securities of the surviving entity, (ii) the sale,  assignment, transfer, conveyance or other disposal of all or substantially all of the properties or  assets or all or a majority of the outstanding voting securities of the Company, (iii) a purchase,  tender or exchange offer accepted by the holders of a majority of the outstanding voting shares of  capital stock of the Company directly or indirectly, in one or more related transactions, (iv) a  “person”  or  “group”  (as  these  terms  are  used  for  purposes  of  Section  13(d)  and  14(d)  of  the  Securities  Exchange  Act  of  1934,  as  amended  (the  “Exchange  Act”))  is  or  shall  become  the  “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of at  least a majority of the outstanding shares of Common Stock of the  Company  through  a  stock  purchase agreement or other business combination (including, without limitation, a reorganization,  reclassification, spin off or scheme of arrangement) with another person, or (v) the Company has  elected to reorganize, recapitalize or reclassify its Common Stock (other than to change domicile).       3.   NO STOCKHOLDER RIGHTS.  Until the exercise of this Warrant, the Holder shall  not have, nor exercise, any rights as a stockholder of the Company (including without limitation  the  right  to  notification  of  stockholder  meetings  or  the  right to  receive  any  notice  or  other  communication  concerning  the  business  and  affairs  of  the  Company),  except  as  provided  in  Section 8 below.       4.   COVENANT  TO  PERFORM;  NON-CIRCUMVENTION.   The  Company  hereby  covenants and agrees that the Company will at all times in good faith carry out all the provisions  of this Warrant and will not, by amendment of its certificate of incorporation, bylaws or other  organizational documents or through a Change of Control, dissolution, sale of assets or any other  voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this  Warrant. Without limiting the generality of the foregoing, the Company (i) shall not increase the  par value of any shares of Common Stock receivable upon the exercise of this Warrant above the  Exercise Price then in effect, (ii) shall take such actions as may be necessary or appropriate in  order  that  the  Company  may  validly  and  legally  issue  fully  paid  and  nonassessable  shares  of  Common  Stock  upon  the  exercise  of  this  Warrant,  and  (iii)  shall,  so  long  as  this  Warrant  is  outstanding, take action necessary to reserve and keep available out of its authorized and unissued  shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant, 100%  of the number of shares of Common Stock issuable upon exercise of this Warrant then outstanding.                                         -6-           74024542_12  

 

         5.   MECHANICS  OF  EXERCISE.   Delivery  of  Warrant  Shares  Upon  Exercise.  This   Warrant may be exercised by the Holder hereof upon the delivery of a Notice of Exercise (the   “Exercise Notice”) attached hereto as Exhibit A properly completed and duly executed by the   Holder hereof, at the office of the Warrant Agent designated for such purpose together with this   Warrant and payment in full of the Exercise Price (unless the Holder has elected to Net Exercise)   then in effect with respect to the number of Warrant Shares as to which the Warrant is being   exercised. This Warrant shall be deemed to have been exercised immediately prior to the close of   business on the date of its surrender for exercise as provided above, and the person entitled to   receive the Warrant Shares issuable upon such exercise shall be treated for all purposes as the   holder of such shares of record as of the close of business on such date.  Notwithstanding anything   herein  to  the  contrary  (although the  Holder  may  surrender  the  Warrant  to,  and  receive  a   replacement Warrant from, the Company), the Holder shall not be required to physically surrender   this  Warrant  to  the  Company  or  the  Warrant  Agent  until  the  Holder  has  purchased  all  of  the   Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the   Holder shall surrender this Warrant to the Company or Warrant Agent for cancellation within three   (3) trading days of the date the final Exercise Notice is delivered to the Company. Execution and  delivery  of  the  Exercise  Notice  with  respect  to  less  than  all  of  the  Warrant  Shares  available  hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable  hereunder in an amount equal to the applicable number of Warrant Shares purchased.  On or before  the second (2nd) trading day following the date on which the Warrant Agent has received each of   the  Exercise  Notice,  this  Warrant  and  the  aggregate  Exercise  Price  (or  confirmation  from  the   Company of the number of shares of Warrant Shares issuable in connection with a duly executed   and  delivered  notice  of  Net  Exercise),  the  Warrant  Agent  shall transmit  by  facsimile  an   acknowledgment of confirmation of receipt of the Exercise Notice to the Company’s transfer agent   (“Transfer Agent”).  The Company shall deliver any objection to the Exercise Notice on or before   the second trading day following the date on which the Company has received the Exercise Notice.    On or before the second (2nd) trading day following the date on which the Warrant Agent has   received the Exercise Notice and the aggregate Exercise Price (the “Share Delivery Date”), the   Warrant Agent shall (X) provided that the Transfer Agent is participating in The Depository Trust   Company (“DTC”) Fast Automated Securities Transfer Program and either (i) there is an effective   registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant   Shares by the Holder or (ii) this Warrant is being exercised via cashless exercise and Rule 144 is   available, upon the request of the Holder, credit such aggregate number of Warrant Shares to which   the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account   with DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent   is not participating in the DTC Fast Automated Securities Transfer Program, and (y) there is not   an effective registration statement permitting the issuance of the Warrant Shares to or resale of the   Warrant Shares by the Holder or (z) this Warrant is being exercised via cashless exercise and Rule   144 is not available, upon the request of the Holder, issue and dispatch by first class mail, postage   prepaid,  to  the  address  as  specified  in  the  Exercise  Notice,  a certificate,  registered  in  the   Company’s share register in the name of the Holder or its designee, for the number of shares of  Common Stock to which the Holder is entitled pursuant to such exercise.  Upon delivery of the                                         -7-               74024542_12  

 

   Exercise Notice and the payment of the aggregate Exercise Price (or a duly executed and delivered  notice of Net Exercise), the Holder shall be deemed for all corporate purposes to have become the  holder of record of the Warrant Shares with respect to which this Warrant has been exercised,  irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date  of delivery of the certificates or book-entry position evidencing such Warrant Shares, as the case  may be. The Company shall pay any and all taxes (other than taxes based upon the income of the  Holder) which may be payable with respect to the issuance and delivery of Warrant Shares upon  exercise of this Warrant; provided, that the Company shall not be required to pay any tax that may  be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock  in any name other than that of the Holder, in either case with respect to any income or transfer tax  due by the Holder with respect to such shares of Common Stock issued upon exercise of this  Warrant.  The Warrant Agent shall not have any duty or obligation to take any action under any  section of this Agreement that requires the payment of taxes and/or charges unless and until it is  satisfied that all such payments have been made.Company’s Failure to Timely Deliver Securities.   If the Company shall fail for any reason or for no reason to issue to the Holder by the Share  Delivery Date in compliance with the terms of this Section 5, a certificate or book entry position  for the number of shares of Common Stock to which the Holder is entitled and register such shares  of Common Stock on the Company’s share register or to credit the Holder’s balance account with  DTC  for  such  number  of  shares  of  Common  Stock  to  which  the  Holder  is  entitled  upon  the  Holder’s exercise of this Warrant, and if on or after such trading day the Holder purchases (in an  open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale  by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated  receiving  from  the  Company,  then  the  Company  shall,  within  three  (3)  trading  days  after  the  Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount  equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares  of Common Stock so purchased less the Exercise Price (the “Buy-In Price”), at which point the  Company’s obligation to deliver such certificate or evidence of book entry position (and to issue  such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder  a certificate or certificates or evidence of book entry position representing such Warrant Shares  and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the  product of (A) such number of shares of Common Stock, times (B) the closing bid price on the  date of exercise. The Warrant Agent shall have no responsibility for any amounts that may be  payable or paid to any Holder, person or entity under this Warrant for any such failure by the  Company (or the Warrant Agent on the Company’s behalf) and the Company shall indemnify and  hold harmless the Warrant Agent against all claims made against the Warrant Agent for any such  failure.       (c)     [Holder’s Exercise Limitation.  Notwithstanding  anything  to  the  contrary  contained in this Warrant, this Warrant shall not be exercisable by the Holder pursuant to Section  1 or otherwise, to the extent (but only to the extent) that after giving effect to such issuance after  exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s  affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s  affiliates (such person, “Attribution Parties”)), would beneficially own in excess of [4.99]% of the                                       -8-           74024542_12  

 

   number of shares of Common Stock outstanding immediately after giving effect to the issuance of  shares  of  Common  Stock  issuable  upon  exercise  of  this  Warrant  (the  “Beneficial  Ownership  Limitation”); [provided, that notwithstanding anything herein to the contrary, this limitation on  exercise  shall  not  be  applicable  to  any  person  that  beneficially  owns  10.0%  or  more  of  the  Company’s outstanding Common Stock immediately prior to the exercise of this Warrant, but  without giving effect to any shares of Common Stock underlying this Warrant].  Notwithstanding  the forgoing, the Holder shall have the right to increase or decrease the Beneficial Ownership  Limitation  (to  an  amount  not  to  exceed  [19.99]%  of  the  number  of  shares  of  Common  Stock  outstanding immediately after giving effect to the issuance of shares of Common Stock issuable  upon exercise of this Warrant [if exceeding that limit would result in a change of control as set  forth in Nasdaq Listing Rule 5635(b))], with any increase to be effective only upon the Holder  providing the Company with prior written notice of such increase, which shall be effective 61 days  after  delivery  of  such  notice  to  the  Company.  To  the  extent  the  above  limitation  applies,  the  determination of whether this Warrant shall be exercisable (vis-à-vis other convertible, exercisable  or exchangeable securities owned by the Holder or any of its Attribution Parties) and of which  such securities shall be exercisable (as among all such securities owned by the Holder or any of its  Attribution Parties) shall, subject to such Beneficial Ownership Limitation, be determined by the  Holder, and the Company shall have no responsibility for determining the accuracy of the Holder’s  determination. No prior inability to exercise this Warrant pursuant to this paragraph shall have any  effect  on  the  applicability  of  the  provisions  of  this  paragraph  with  respect  to  any  subsequent  determination  of  exercisability.  For  purposes  of  the  calculation  of  the  Beneficial  Ownership  Limitation, the aggregate number of shares of Common Stock beneficially owned by the Holder  and its Attribution Parties shall include the number of shares of Common Stock issuable upon  exercise of this Warrant with respect to which such determination is being made, but shall exclude  the  number  of  shares  of  Common  Stock  which  would  be  issuable  upon  (i)  exercise  of  the  remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its  Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of  any other securities of the Company (including, without limitation, any other convertible notes or  convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous  to the limitation contained herein beneficially owned by the Holder or any of its Attribution Parties.   Except as set forth in the preceding sentence, for purposes of this section, beneficial ownership  shall  be  calculated  in  accordance  with  Section  13(d)  of  the  Exchange  Act  and  the  rules  and  regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not  representing  to  the  Holder  that  such  calculation  is  in  compliance  with  Section  13(d)  of  the  Exchange  Act  and  the  Holder  is  solely  responsible  for  any  schedules  required  to  be  filed  in  accordance therewith.  In addition, a determination as to any group status as contemplated above  shall  be  determined  in  accordance  with  Section  13(d)  of  the  Exchange  Act  and  the  rules  and  regulations promulgated thereunder.  For purposes of this Section 5(c), in determining the number  of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares  of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed  with  the  Securities  and  Exchange  Commission,  as  the  case  may  be,  (B)  a  more  recent  public  announcement  by  the  Company  or  (C)  a  more  recent  written  notice  by  the  Company  or  the                                        -9-           74024542_12  

 

   Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  In  any case, the number of outstanding shares of Common Stock shall be determined after giving  effect to the conversion or exercise of securities of the Company, including this Warrant, by the  Holder or its Attribution Parties since the date as of which such number of outstanding shares of  Common  Stock  was  reported.   The  provisions  of  this  paragraph  shall  be  construed  and  implemented in a manner otherwise than in strict conformity with the terms of this Section 5(c) to  correct this paragraph (or any portion hereof) which may be defective or inconsistent with the  intended Beneficial Ownership Limitation herein contained or to make changes or supplements  necessary or desirable to properly give effect to such limitation. The limitations contained in this  paragraph shall apply to a successor holder of this Warrant. Upon the reasonable written request  of the Holder, the Company shall within three (3) trading days confirm orally or in writing to the  Holder the number of shares of Common Stock then outstanding, including by virtue of any prior  conversion or  exercise of  convertible  or  exercisable  securities  into  Common  Stock,  including,  without  limitation,  pursuant  to  this  Warrant  or  securities  issued  pursuant  to  the  Purchase  Agreement.]       6.   CERTIFICATE OF ADJUSTMENT.  Whenever the Exercise Price or number or  type of securities issuable upon exercise of this Warrant is adjusted, as herein provided, the  Company shall, at its expense, promptly deliver to the Holder and the Warrant Agent a certificate  of an officer of the Company setting forth the nature of such adjustment and showing in detail  the facts upon which such adjustment is based. The Warrant Agent shall be fully protected in  relying on such a certificate and shall have not be deemed to have any knowledge of the  occurrence of an adjustment unless and until it has received such a certificate. In no event shall  the Warrant Agent have any obligation to calculate any of the adjustments, all such calculations  being the responsibility of the Company.           7.   NOTICES.  In the event of:            (a)  any taking by the Company of a record of the holders of any class of securities  for the purpose of determining the holders thereof who are entitled to receive any dividend (other  than a cash dividend payable out of earned surplus of the Company) or other distribution, or any  right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other  securities or property, or to receive any other right; or            (b)  any  voluntary  or  involuntary  dissolution,  liquidation  or  winding-up  of  the  Company,    then  and  in  each  such  event  the  Company  will  promptly  mail  or  cause to be delivered to the  Warrant Agent and Holder (or a permitted transferee) a notice specifying (i) the date on which any  such record is to be taken for the purpose of such dividend, distribution or right, and stating the  amount and character of such dividend, distribution or right, and (ii) the date on which any such  dissolution, liquidation or winding-up is to take place, and the time, if any, as of which the holders  of  record  of  Common  Stock  (or  other  securities)  shall  be  entitled  to  exchange  their  shares  of                                       -10-           74024542_12  

 

   Common  Stock  (or  other  securities)  for  securities  or  other  property  deliverable  upon  such  dissolution, liquidation or winding-up.  Such notice shall be delivered at least twenty (20) days  prior to the date therein specified.            (c)  Whenever any other notice is required to be given under this Warrant, unless  otherwise provided herein, the Company shall provide prompt written notice of all actions taken  pursuant to this Warrant, including in reasonable detail a description of such action and the reason  therefore.        8.   REPLACEMENT OF WARRANTS.  On receipt of evidence reasonably satisfactory  to the Company and Warrant Agent of the loss, theft, destruction or mutilation of this Warrant and,  in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity  agreement reasonably satisfactory in form and amount to the Company and Warrant Agent or, in  the case of any such mutilation, on surrender and cancellation of such Warrant, the Company at  its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.       9.   ISSUANCE OF NEW WARRANTS.  Whenever the Company is required to issue a  new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with  this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase  the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued  pursuant to Sections 8 or 9, the Warrant Shares designated by the Holder which, when added to  the number of shares of Common Stock underlying the other new Warrants issued in connection  with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant),  (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same  as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.       10.  NO FRACTIONAL SHARES.  No fractional Warrant Shares or scrip representing  fractional shares will be issued upon exercise of this Warrant.  In lieu of any fractional shares  which would otherwise be issuable, the Company shall pay cash equal to the product of such  fraction multiplied by the Fair Market Value of one Warrant Share.       11.  AMENDMENT AND WAIVER.  Except as otherwise provided herein, the provisions  of this Warrant may be amended and the Company may take any action herein prohibited, or omit  to perform any act herein required to be performed by it, only if the Company has obtained the  written consent of the Holder.       12.  TRADING DAYS.  If the last or appointed day for the taking of any action or the  expiration of any right required or granted herein shall be other than a day on which the Common  Stock is traded (which for the avoidance of doubt includes a Saturday, Sunday or a legal U.S.  holiday) on the Nasdaq Capital Market, or, if the Nasdaq Capital Market is not the principal trading  market  for  the  Common  Stock  or  other  such  securities,  as  applicable,  then  on  the  principal  securities exchange or securities market on which the Common Stock is then traded, then such                                        -11-           74024542_12  

 

     action may be taken or such right may be exercised on the next succeeding day on which the   Common Stock is so traded.        13.  TRANSFERS; EXCHANGES.               (a)  Subject  to  compliance  with  applicable  federal  and  state  securities  laws  and  Section 7 hereof, this Warrant may be transferred by the Holder with respect to all of the Warrant  Shares  purchasable  hereunder.   For  a  transfer  of  this  Warrant  as  an  entirety  by  Holder,  upon  surrender of this Warrant to the Warrant Agent, together with the Notice of Assignment in the  form  attached  hereto  as  Exhibit  B  properly  completed  and  duly  executed  by  the  Holder,  the   Company shall issue a new Warrant of the same denomination to the assignee.  Upon surrender of   this Warrant to the Warrant Agent, together with the Notice of Assignment in the form attached   hereto  as  Exhibit  B  properly  completed  and  duly  executed  by  the  Holder  accompanied  by  a   signature guarantee from an eligible guarantor institution participating in a signature guarantee   program approved by the Securities Transfer Association (a “signature guarantee”), for transfer of   this Warrant with respect to a portion of the Warrant Shares purchasable hereunder, the Company   will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with   Section 9), registered as the Holder may request, representing the right to purchase the number of   Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares   then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 9)   to  the  Holder  representing  the  right  to  purchase  the  number  of Warrant  Shares  not  being   transferred.             (b)  This Warrant is exchangeable, without expense, at the option of the Holder, upon   presentation  and  surrender  hereof  to  the  Warrant  Agent  for  other  warrants  of  different   denominations entitling the holder thereof to purchase in the aggregate the same number of shares   of Common Stock purchasable hereunder.  This Warrant may be combined with other warrants   that carry the same rights upon presentation hereof at the office of the Warrant Agent designated   for  such  purpose  together  with  a  written  notice  specifying  the denominations  in  which  new   warrants are to be issued to the Holder and signed by the Holder hereof.  The term “Warrants” as   used  herein  includes  any  warrants  into  which  this  Warrant  may  be  divided  or  exchanged.  All   Warrant Certificates surrendered for the purpose of transfer, split up, combination or exchange,   when surrendered to the Warrant Agent shall be accompanied by a signature guarantee.             (c)  If, at the time of the surrender of this Warrant in connection with any transfer of   this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective   registration statement under the Securities Act and under applicable state securities or blue sky   laws or (ii) eligible for resale pursuant to Rule 144, the Company may require, as a condition of   allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, provide   to the Company an opinion of counsel selected by the Holder and reasonably acceptable to the   Company,  the  form  and  substance  of  which  opinion  shall  be  reasonably  satisfactory  to  the   Company, to the effect that such transfer does not require registration of such transferred Warrant   under the Securities Act.                                        -12-               74024542_12  

 

            (d)  The Holder, by the acceptance hereof, represents and warrants that it is acquiring  this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such  exercise, for its own account and not with a view to or for distributing or reselling such Warrant  Shares or any part thereof in violation of the Securities Act or any applicable state securities law,  except pursuant to sales registered or exempted under the Securities Act.       14.  GOVERNING LAW; VENUE.  All questions concerning the construction, validity,  enforcement and interpretation of this Warrant shall be governed by and construed and enforced  in accordance with the internal laws of the State of New York, without regard to the principles of  conflicts of law thereof.  With respect to any disputes arising out of or related to this Warrant, the  parties consent to the exclusive jurisdiction of, and venue in, the state courts in the State of New  York (or in the event of exclusive federal jurisdiction, the courts of the District of New York).   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 via registered or certified  mail or overnight delivery (with evidence of delivery) to such party at the address in effect for  notices to it under this Warrant 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  other  manner  permitted  by  law.  EACH  OF  THE  COMPANY  AND  THE  HOLDER  HEREBY  IRREVOCABLY  WAIVES,  TO  THE  FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO  TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING  TO THIS WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY.         15.  DISPUTE RESOLUTION.  In the case of a dispute as to the determination of the  Exercise  Price,  the  arithmetic  calculation  of  the  Warrant  Shares  or  under  Sections  2  or  6,  the  disputing party shall submit the disputed determinations or arithmetic calculations to the other  party.  If the Holder and the Company are unable to agree upon such determination or calculation  of  the  Exercise  Price  or  the  Warrant  Shares  within  three  (3)  trading  days  of  such  disputed  determination  or  arithmetic  calculation  being  submitted  to  the non-disputing  party,  then  the  Company  shall,  within  two  (2)  trading  days  submit  the  dispute  to  an  independent,  reputable  accountant.  The Company shall cause, at the expense of the prevailing party, the accountant to  perform the determinations or calculations and notify the Company and the Holder of the results  no  later  than  ten  (10)  trading  days  from  the  time  it  receives  the  disputed  determinations  or  calculations.   Such accountant’s  determination or  calculation  shall  be  binding  upon  all  parties  absent demonstrable error.       16.  REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.   The remedies provided in this Warrant shall be cumulative and in addition to all other remedies  available under this Warrant, at law or in equity (including a decree of specific performance and/or  other injunctive relief), and nothing herein shall limit the right  of  the Holder  to  pursue  actual  damages for any failure by the Company to comply with the terms of this Warrant.                                        -13-           74024542_12  

 

    17.  CONSTRUCTION; HEADINGS.  This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter hereof.   The headings of this Warrant are for convenience of reference and shall not form part of, or affect  the interpretation of, this Warrant.       18.  SUCCESSORS AND ASSIGNS.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon  the successors and permitted assigns of the Company and the successors and permitted assigns of  the Holder.  The provisions of this Warrant are intended to be for and the benefit of any Holder  from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant  Shares.       19.  RESTRICTIONS. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, must comply with the applicable restrictions upon  resale imposed by state and federal securities laws.       20.  MISCELLANEOUS.   All  notices,  requests,  consents  and  other  communications hereunder shall be in writing, shall be sent by confirmed electronic mail, or mailed by first-class  registered or certified airmail, or nationally recognized overnight express courier, postage prepaid,  and shall be deemed given when so sent in the case of electronic mail transmission, or when so  received  in  the  case  of  mail  or  courier,  and  addressed  as  follows:   (a)  if  to  the  Company,  at  Cambridge Discovery Park, 100 Acorn Park Drive, 5th Floor, Cambridge, MA 02140, Attention:  Finance  Department;  with  a  copy  to  (which  shall  not  constitute notice)  Ropes  &  Gray  LLP,  Prudential          Tower,            800            Boylston            Street  Boston, MA 02199-3600, Attention: Marc Rubenstein and (b) if to the Holder, at such address or  addresses (including copies to counsel) as may have been furnished by the Holder to the Company  in writing.  The invalidity or unenforceability of any provision hereof shall in no way affect the  validity or enforceability of any other provisions.                               [Signature Page Follows]                                         -14-   74024542_12  

 

    IN WITNESS WHEREOF, this Common Stock Purchase Warrant is issued effective as of  the date first set forth above.                                 GENOCEA BIOSCIENCES, INC.                                  By:                                Name:                                Title:                                  SIGNATURE PAGE TO                           WARRANT NO. 2019-«WARRANT NO»  

 

                                  EXHIBIT A                           NOTICE OF INTENT TO EXERCISE                       (To be signed only upon exercise of Warrant)    To: Genocea Biosciences, Inc.        The undersigned, the Holder of the attached Warrant, hereby irrevocably elects to exercise   the  purchase  right  represented  by  such  Warrant  for,  and  to  purchase  thereunder,   __________________________  shares  of  Common  Stock  of  Genocea  Biosciences,  Inc.,  a   Delaware corporation (the “Company”), and (choose one)        __________ herewith makes payment of USD ___________________________ thereof        or        __________ elects to Net Exercise the Warrant pursuant to Section 1(b)(2) thereof.        The undersigned requests that the certificates or book entry position evidencing the shares   to be acquired pursuant to such exercise be issued in the name of, and delivered to   __________________________________________, whose address is   ______________________________________________________________________________  ______________________.        By  its  delivery  of  this  Exercise  Notice,  the  undersigned  represents and warrants to the   Company that in giving effect to the exercise evidenced hereby the Holder will not beneficially   own  in  excess  of  the  number  of  shares  of  Common  Stock  (as  determined  in  accordance  with   Section 13(d) of the Securities Exchange Act of 1934, as amended) permitted to be owned under   Section 5(c) of the Warrant to which this notice relates.        By  its  signature  below  the  undersigned  hereby  represents  and  warrants  that  it  is  an  “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities  Act of 1933, as amended, and agrees to be bound by the terms and conditions of the attached  Warrant as of the date hereof, including Section 7 thereof.   DATED:                                     (Signature must conform in all                                     respects to name of the Holder                                     as specified on the face of the                                     Warrant)                                      [Holder Name]                                     Address:     74024542_12  

 

                                                                                                 74024542_12  

 

                                     EXHIBIT B                                                                     NOTICE OF ASSIGNMENT FORM          FOR  VALUE  RECEIVED,  [Holder  Name]  (the  “Assignor”)  hereby  sells,  assigns  and   transfers all of the rights of the undersigned Assignor under the attached Warrant with respect to  the number of shares of common stock of Genocea Biosciences, Inc., a Delaware corporation (the  “Company”), covered thereby set forth below, to the following “Assignee” and, in connection with   such  transfer,  represents  and  warrants  to  the  Company  that  the transfer  is  in  compliance  with   Section 7 of the Warrant and applicable federal and state securities laws:             NAME OF ASSIGNEE                            ADDRESS         Number of shares:                          Dated:                                 Signature:                                                                               ASSIGNEE ACKNOWLEDGMENT               The undersigned Assignee acknowledges that it has reviewed the attached Warrant and by   its signature below it hereby represents and warrants that it is an “accredited investor” as defined   in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended, and   agrees to be bound by the terms and conditions of the Warrant as of the date hereof, including   Section 7 thereof.                                         Signature:                                                                           By:                                       Its:    Address:                                 [Signature guarantee]             74024542_12  

 

                                    EXHIBIT D                         FORM OF PRE-FUNDED WARRANT                                         39.      74109921_16  

 

     NEITHER  THIS  SECURITY  NOR  THE  SECURITIES  FOR  WHICH  THIS  SECURITY  IS  EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE  COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON  AN  EXEMPTION  FROM  REGISTRATION     UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED  OR  SOLD  EXCEPT  PURSUANT  TO  AN  EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,  OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF  THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES  LAWS.       CLASS B WARRANT NO. 2019-[______]                NUMBER OF SHARES:  [_______]  DATE OF ISSUANCE:  February 14, 2019                (subject to adjustment hereunder)  EXPIRATION DATE: February 14, 2039                 CLASS B PRE-FUNDED WARRANT TO PURCHASE SHARES                              OF COMMON STOCK OF                            GENOCEA BIOSCIENCES, INC.        This Class B Warrant (the “Warrant”) is issued by Genocea Biosciences, Inc., a Delaware  corporation (the “Company”), to [________], or its registered assigns (including any successors   or assigns, the “Holder”), and is subject to the terms and conditions set forth below. The Warrant   is being issued pursuant to a Warrant Agreement between the Company and Computershare Inc.,   a Delaware corporation (“Computershare”), and its fully owned subsidiary Computershare Trust   Company, N.A., a national banking association (collectively with Computershare, the “Warrant   Agent”).         1.   EXERCISE OF WARRANT.             (a)  Number and Exercise Price of Warrant Shares; Expiration Date. Subject to the   terms and conditions set forth herein, the Holder is entitled to purchase from the Company up to   [______] shares of the Company’s Common Stock, $0.001 par value per share (the “Common   Stock”) (as adjusted from time to time pursuant to the provisions of this Warrant) (the “Warrant   Shares”) on or before 5:00 p.m. New York City time on February 14, 2039 (the “Expiration Date”).   The aggregate exercise price of this Warrant of $0.5026, except for a nominal exercise price of   $0.01 per Warrant Share, was paid to the Company on or prior to the date of issuance of this   Warrant, and, consequently, no additional consideration (other than the nominal exercise price of   $0.01 per Warrant Share) shall be required to be paid by the Holder to effect any exercise of this   Warrant. The Holder shall not be entitled to return or refund of all, or any portion, of such pre-paid  aggregate exercise price under any circumstance or for any reason whatsoever, including in the                                          1                  74201950_4  

 

     event  this  Warrant  shall  not  have  been  exercised  prior  to  the  Expiration  Date.  The  remaining   unpaid exercise price per share of Common Stock under this Warrant shall be $0.01, subject to  adjustment as provided herein (the “Exercise Price”). Capitalized terms used and not otherwise   defined herein shall have the meanings set forth in that certain Subscription Agreement dated as   of February 11, 2019, among the Company and the purchasers signatory thereto.             (b)  Method of Exercise.  While this Warrant remains outstanding and exercisable in   accordance with Section 1(a) above, the Holder may exercise this Warrant in whole or in part in   accordance with Section 5 by either:                  (1)  wire transfer to the Company or cashier’s check drawn on a United States   bank made payable to the order of the Company, or                   (2)  exercising of the right to credit the Exercise Price against the Fair Market   Value (as defined below) of the Warrant Shares (as defined below) at the time of exercise (the   “Net Exercise”) pursuant to Section 1(c).              (c)  Net Exercise. At any time the Holder may elect to exercise this Warrant by Net   Exercise pursuant to this Section 1(c). At any time that this Warrant may be exercised by Net   Exercise pursuant to this Section 1(c), if the Company shall receive written notice from the Holder   at the time of exercise of this Warrant that the Holder elects to Net Exercise the Warrant, the   Company shall deliver to such Holder (without payment by the Holder of any exercise price in   cash) that number of Warrant Shares computed using the following formula:                                          Y (A - B)                                   X                                                   A        Where               X =    The number of Warrant Shares to be issued to the Holder.               Y =    The number of Warrant Shares purchasable under this Warrant or, if only                    a portion of the Warrant is being exercised, the portion of the Warrant                     being cancelled (at the date of such calculation).                A =   The Fair Market Value of one share of Common Stock (at the date of such                     calculation).                B =   The Exercise Price (as adjusted to the date of such calculations).             The  “Fair  Market  Value”  of  one  share  of  Common  Stock  shall  mean (x) the last   reported sale price and, if there are no sales, the last reported bid price, of the Common Stock on   the last trading day prior to the date of exercise on the trading market on which the Common Stock   is listed as reported by Bloomberg Financial Markets (or a comparable reporting service of national                                        -2-               74201950_4  

 

     reputation  selected  by  the  Company  and  reasonably  acceptable  to  the  Holder  if  Bloomberg   Financial  Markets  is  not  then  reporting  sales  prices  of  the  Common  Stock)  (collectively,   “Bloomberg”), or (y) if the foregoing does not apply, the last sales price of such security in the   over-the-counter market on the pink sheets by Pink Sheets LLC (formerly the National Quotation   Bureau, Inc.) (the “pink sheets”) or bulletin board for such security as reported by Bloomberg, or   if no sales price is so reported, the last bid price of the Common Stock as reported by Bloomberg   or (z) if the fair market value cannot be calculated on any of the foregoing bases, the fair market   value determined by the Company’s Board of Directors in good faith.              (d)  Disputes.  In the case of a dispute as to the determination of the Exercise Price   or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the  Holder the number of Warrant Shares that are not disputed.             (e)  Deemed Exercise.  In the event that immediately prior to the close of business   on the Expiration Date, the Fair Market Value of one share of Common Stock (as determined in   accordance with Section 1(c) above) is greater than the then applicable Exercise Price, this Warrant   shall be deemed to be automatically exercised on a net exercise issue basis pursuant to Section   1(c) above, and the Company shall deliver the applicable number of shares of Common Stock to   the Holder pursuant to the provisions of Section 1(c) above and this Section 1(e).        2.   CERTAIN ADJUSTMENTS.             (a)  Adjustment of Number of Warrant Shares and Exercise Price. The number and   kind of Warrant Shares purchasable upon exercise of this Warrant and the Exercise Price shall be   subject to adjustment from time to time as follows:                   (1)  Subdivisions, Combinations and Other Issuances.  If the Company shall at   any time after the Date of Issuance but prior to the Expiration Date subdivide its shares of capital   stock of the same class as the Warrant Shares, by split-up or otherwise, or combine such shares of   capital stock, or issue additional shares of capital stock as a dividend with respect to any shares of   such capital stock, the number of Warrant Shares issuable on the exercise of this Warrant shall   forthwith  be  proportionately  increased  in  the  case  of  a  subdivision  or  stock  dividend,  or   proportionately decreased in the case of a combination.  Appropriate adjustments shall also be   made to the Exercise Price payable per share, but the aggregate Exercise Price payable for the total   number of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same.    Any adjustment under this Section 2(a)(1) shall become effective at the close of business on the   date the subdivision or combination becomes effective, or as of the record date of such dividend,   or in the event that no record date is fixed, upon the making of such dividend.                  (2)  Reorganizations  or  Mergers.   In case  of  any  reclassification,  capital   reorganization  or  change  in  the  capital  stock  of  the  Company  (other than as a result of a   subdivision, combination or stock dividend provided for in Section 2(a)(1) above) that occurs after   the Date of Issuance, then, as a condition of such reclassification, reorganization or change, lawful                                        -3-               74201950_4  

 

   provision shall be made, and duly executed documents evidencing the same from the Company or  its successor shall be delivered to the Holder, so that the Holder shall thereafter have the right at  any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable  upon the exercise of this Warrant, the kind and amount of shares of stock and/or other securities  or  property (including, if  applicable,  cash)  receivable in connection  with  such reclassification,  reorganization or change by a holder of the same number and type of securities as were purchasable  as  Warrant  Shares  by  the  Holder  immediately  prior  to  such  reclassification,  reorganization  or  change.  In any such case, appropriate provisions shall be made with respect to the rights and  interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to  any shares of stock or other securities or property deliverable upon exercise hereof, and appropriate  adjustments  shall  be  made  to  the  Exercise  Price  payable  hereunder,  provided  the  aggregate  Exercise  Price  shall  remain  the  same  (and,  for  the  avoidance  of  doubt,  this  Warrant  shall  be  exclusively exercisable for such shares of stock and/or other securities or property from and after  the consummation of such reclassification or other change in the capital stock of the Company).                 (3)  Rights Upon Distribution of Assets.  If the Company shall declare or make  any dividend, other distribution of its assets (or rights to acquire its assets) or evidences of its  indebtedness to holders of shares of Common Stock generally (which dividend or other distribution  has not already been given to the Holder with respect to the Warrant Shares), by way of return of  capital  or  otherwise  not  addressed  by  this  Section  2  above  (including,  without  limitation,  any  distribution of cash, stock or other securities, property or options by way of a dividend, spin off,  subdivision,  reclassification,  corporate  rearrangement,  scheme of  arrangement  or  other  similar  transaction)  (a  “Distribution”),  at  any  time  after  the  issuance  of  this  Warrant  and  prior  to  the  Expiration Date, then, in each such case the Holder shall be entitled (subject to the following  proviso)  to  participate  in  such  Distribution  to  the  same  extent  that  the  Holder  would  have  participated therein if the Holder had held the number of shares of Common Stock acquirable upon  complete exercise of this Warrant (without regard to any limitations or restrictions on exercise of  this  Warrant,  including,  without  limitation,  the  Beneficial  Ownership  Limitation)  immediately  before the date on which a record is taken for such Distribution, or, if no such record is taken, the  date as of which the record holders of shares of Common Stock are  to  be  determined  for  the  participation in such Distribution; provided, however, that the Holder shall only be permitted to  take delivery of such Distribution if and to the extent the Holder exercises some or all of the  Warrant (the portion of delivery of the Distribution shall be based on the pro rata portion of the  Warrant Shares issuable upon the portion of the Warrant exercised as compared to the maximum  number of Warrant Shares issuable upon complete exercise of the Warrant (without regard to any  limitations or restrictions on exercise of this Warrant, including, without limitation, the Beneficial  Ownership Limitation)), provided that, to the extent that the Warrant has not been partially or  completely exercised at the time of such Distribution, such portion of the Distribution shall be held  in abeyance for the benefit of the Holder until the Holder has exercised the Warrant, at which time  the Company shall issue to the Holder the pro-rata portion of such Distribution equivalent to that  portion of this Warrant then exercised. Notwithstanding anything to the contrary contained herein,  to the extent that the Holder’s right to participate in any such Distribution would result in the  Holder and its affiliates exceeding the Beneficial Ownership Limitation, if applicable pursuant to                                       -4-           74201950_4  

 

     Section 5(c) herein, then the Holder shall not be entitled to participate in such Distribution to the   extent of the Beneficial Ownership Limitation (and shall not be entitled to beneficial ownership of   such shares of Common Stock as a result of such Distribution (and beneficial ownership) to the   extent of any such excess) and the portion of such Distribution shall be held in abeyance for the   benefit of the Holder until such time or times, if ever, as its right thereto would not result in the   Holder and its affiliates exceeding the Beneficial Ownership Limitation, at which time or times   the Holder shall be granted such Distribution (and any Distributions declared or made on such   initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent   as if there had been no such limitation).             (b)  Notice  of  Adjustment.   When  any  adjustment  is  required  to  be  made  in  the   number or kind of shares purchasable upon exercise of the Warrant, or in the Exercise Price, the   Company shall promptly notify the Holder of such event and of the number of Warrant Shares or   other securities or property thereafter purchasable upon exercise of this Warrant.             (c)  Calculations.  No adjustment in the Exercise Price shall be required unless such   adjustment  would  require  an  increase  or  decrease  of  at  least  $0.01  in  such  price;  provided,   however, that any adjustment which by reason of this Section 2(c) is not required to be made shall   be carried forward and taken into account in any subsequent adjustments under this Section 2.  All   calculations under this Section 2 shall be made by the Company in good faith and shall be made   to the nearest cent or to the nearest one hundredth of a share, as applicable.  No adjustment need   be made for a change in the par value or no par value of the Company’s Common Stock.             (d)  Treatment of Warrant upon a Change of Control.                  (1)  If,  at  any  time  while  this  Warrant  is  outstanding,  there  is  a  Change  of   Control (as defined below), then the Holder shall have the right thereafter to receive, upon exercise   of this Warrant, the same amount and kind of securities, cash or property as it would have been   entitled to receive upon the occurrence of such Change of Control if it had been, immediately prior   to such Change of Control, the holder of the number of Warrant Shares then issuable upon exercise   in full of this Warrant (the “Alternate Consideration”).  For purposes of any such exercise, the   determination  of  the  Exercise  Price  shall  be  appropriately  adjusted  to  apply  to  such  Alternate   Consideration based on the amount of Alternate Consideration issuable in respect of one share of  Common Stock in such Change of Control, and the Company shall apportion the Exercise Price  among the Alternate Consideration in a reasonable manner reflecting the relative value of any  different components of the Alternate Consideration.  If holders of Common Stock are given any  choice as to the securities, cash or property to be received in a Change of Control, then the Holder  shall be given the same choice as to the Alternate Consideration it receives upon any exercise of  this Warrant following such Change of Control.  Any successor to the Company or surviving entity  in such Change of Control shall issue to the Holder a new warrant substantially in the form of this  Warrant and consistent with the foregoing provisions and evidencing the Holder’s right to purchase  the Alternate Consideration for the aggregate Exercise Price upon exercise thereof.                                         -5-               74201950_4  

 

                 (2)  Notice of a Change of Control. The Company shall provide written notice  to the Holder of a Change of Control reasonably promptly after public announcement thereof (and,  in any event, not less than twenty (20) trading days prior to the consummation of such Change of  Control) and such notice shall include (i) the projected date of consummation of the Change of  Control to the extent known at the time such notice is delivered and (ii) the expected consideration  to be received by the Company’s stockholders in such Change of Control.                 (3)  As used in this Warrant, a “Change of Control” shall mean (i) a merger or  consolidation of the Company with another entity, in which the Company is not the survivor or  the stockholders of the Company immediately prior to such merger or consolidation do not own,  directly or indirectly, at least 50% of the voting securities of the surviving entity, (ii) the sale,  assignment, transfer, conveyance or other disposal of all or substantially all of the properties or  assets or all or a majority of the outstanding voting securities of the Company, (iii) a purchase,  tender or exchange offer accepted by the holders of a majority of the outstanding voting shares of  capital stock of the Company directly or indirectly, in one or more related transactions, (iv) a  “person”  or  “group”  (as  these  terms  are  used  for  purposes  of  Section  13(d)  and  14(d)  of  the  Securities  Exchange  Act  of  1934,  as  amended  (the  “Exchange  Act”))  is  or  shall  become  the  “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of at  least a majority of the outstanding shares of Common Stock of the  Company  through  a  stock  purchase agreement or other business combination (including, without limitation, a reorganization,  reclassification, spin off or scheme of arrangement) with another person, or (v) the Company has  elected to reorganize, recapitalize or reclassify its Common Stock (other than to change domicile).       3.   NO STOCKHOLDER RIGHTS.  Until the exercise of this Warrant, the Holder shall  not have, nor exercise, any rights as a stockholder of the Company (including without limitation  the  right  to  notification  of  stockholder  meetings  or  the  right to  receive  any  notice  or  other  communication  concerning  the  business  and  affairs  of  the  Company),  except  as  provided  in  Section 8 below.       4.   COVENANT  TO  PERFORM;  NON-CIRCUMVENTION.   The  Company  hereby  covenants and agrees that the Company will at all times in good faith carry out all the provisions  of this Warrant and will not, by amendment of its certificate of incorporation, bylaws or other  organizational documents or through a Change of Control, dissolution, sale of assets or any other  voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this  Warrant. Without limiting the generality of the foregoing, the Company (i) shall not increase the  par value of any shares of Common Stock receivable upon the exercise of this Warrant above the  Exercise Price then in effect, (ii) shall take such actions as may be necessary or appropriate in  order  that  the  Company  may  validly  and  legally  issue  fully  paid  and  nonassessable  shares  of  Common  Stock  upon  the  exercise  of  this  Warrant,  and  (iii)  shall,  so  long  as  this  Warrant  is  outstanding, take action necessary to reserve and keep available out of its authorized and unissued  shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant, 100%  of the number of shares of Common Stock issuable upon exercise of this Warrant then outstanding.                                         -6-           74201950_4  

 

         5.   MECHANICS  OF  EXERCISE.   Delivery  of  Warrant  Shares  Upon  Exercise.  This   Warrant may be exercised by the Holder hereof upon the delivery of a Notice of Exercise (the   “Exercise Notice”) attached hereto as Exhibit A properly completed and duly executed by the   Holder hereof, at the office of the Warrant Agent designated for such purpose together with this   Warrant and payment in full of the Exercise Price (unless the Holder has elected to Net Exercise)   then in effect with respect to the number of Warrant Shares as to which the Warrant is being   exercised. This Warrant shall be deemed to have been exercised immediately prior to the close of   business on the date of its surrender for exercise as provided above, and the person entitled to   receive the Warrant Shares issuable upon such exercise shall be treated for all purposes as the   holder of such shares of record as of the close of business on such date.  Notwithstanding anything   herein  to  the  contrary  (although the  Holder  may  surrender  the  Warrant  to,  and  receive  a   replacement Warrant from, the Company), the Holder shall not be required to physically surrender   this  Warrant  to  the  Company  or  the  Warrant  Agent  until  the  Holder  has  purchased  all  of  the   Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the   Holder shall surrender this Warrant to the Company or Warrant Agent for cancellation within three   (3) trading days of the date the final Exercise Notice is delivered to the Company. Execution and  delivery  of  the  Exercise  Notice  with  respect  to  less  than  all  of  the  Warrant  Shares  available  hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable  hereunder in an amount equal to the applicable number of Warrant Shares purchased. On or before  the second (2nd) trading day following the date on which the Warrant Agent has received each of   the  Exercise  Notice,  this  Warrant  and  the  aggregate  Exercise  Price  (or  confirmation  from  the   Company of the number of shares of Warrant Shares issuable in connection with a duly executed   and  delivered  notice  of  Net  Exercise),  the  Warrant  Agent  shall transmit  by  facsimile  an   acknowledgment of confirmation of receipt of the Exercise Notice to the Company’s transfer agent   (“Transfer Agent”).  The Company shall deliver any objection to the Exercise Notice on or before   the second trading day following the date on which the Company has received the Exercise Notice.    On or before the second (2nd) trading day following the date on which the Warrant Agent has   received the Exercise Notice and the aggregate Exercise Price (the “Share Delivery Date”), the   Warrant Agent shall (X) provided that the Transfer Agent is participating in The Depository Trust   Company (“DTC”) Fast Automated Securities Transfer Program and either (i) there is an effective   registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant   Shares by the Holder or (ii) this Warrant is being exercised via cashless exercise and Rule 144 is   available, upon the request of the Holder, credit such aggregate number of Warrant Shares to which   the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account   with DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent   is not participating in the DTC Fast Automated Securities Transfer Program, and (y) there is not   an effective registration statement permitting the issuance of the Warrant Shares to or resale of the   Warrant Shares by the Holder or (z) this Warrant is being exercised via cashless exercise and Rule   144 is not available, upon the request of the Holder, issue and dispatch by first class mail, postage   prepaid,  to  the  address  as  specified  in  the  Exercise  Notice,  a certificate,  registered  in  the   Company’s share register in the name of the Holder or its designee, for the number of shares of  Common Stock to which the Holder is entitled pursuant to such exercise.  Upon delivery of the                                         -7-               74201950_4  

 

   Exercise Notice and the payment of the aggregate Exercise Price (or a duly executed and delivered  notice of Net Exercise), the Holder shall be deemed for all corporate purposes to have become the  holder of record of the Warrant Shares with respect to which this Warrant has been exercised,  irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date  of delivery of the certificates or book-entry position evidencing such Warrant Shares, as the case  may be. The Company shall pay any and all taxes (other than taxes based upon the income of the  Holder) which may be payable with respect to the issuance and delivery of Warrant Shares upon  exercise of this Warrant; provided, that the Company shall not be required to pay any tax that may  be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock  in any name other than that of the Holder, in either case with respect to any income or transfer tax  due by the Holder with respect to such shares of Common Stock issued upon exercise of this  Warrant.  The Warrant Agent shall not have any duty or obligation to take any action under any  section of this Agreement that requires the payment of taxes and/or charges unless and until it is  satisfied that all such payments have been made.Company’s Failure to Timely Deliver Securities.   If the Company shall fail for any reason or for no reason to issue to the Holder by the Share  Delivery Date in compliance with the terms of this Section 5, a certificate or book entry position  for the number of shares of Common Stock to which the Holder is entitled and register such shares  of Common Stock on the Company’s share register or to credit the Holder’s balance account with  DTC  for  such  number  of  shares  of  Common  Stock  to  which  the  Holder  is  entitled  upon  the  Holder’s exercise of this Warrant, and if on or after such trading day the Holder purchases (in an  open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale  by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated  receiving  from  the  Company,  then  the  Company  shall,  within  three  (3)  trading  days  after  the  Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount  equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares  of Common Stock so purchased less the Exercise Price (the “Buy-In Price”), at which point the  Company’s obligation to deliver such certificate or evidence of book entry position (and to issue  such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder  a certificate or certificates or evidence of book entry position representing such Warrant Shares  and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the  product of (A) such number of shares of Common Stock, times (B) the closing bid price on the  date of exercise. The Warrant Agent shall have no responsibility for any amounts that may be  payable or paid to any Holder, person or entity under this Warrant for any such failure by the  Company (or the Warrant Agent on the Company’s behalf) and the Company shall indemnify and  hold harmless the Warrant Agent against all claims made against the Warrant Agent for any such  failure.       (c)     [Holder’s Exercise Limitation.  Notwithstanding  anything  to  the  contrary  contained in this Warrant, this Warrant shall not be exercisable by the Holder pursuant to Section  1 or otherwise, to the extent (but only to the extent) that after giving effect to such issuance after  exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s  affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s  affiliates (such person, “Attribution Parties”)), would beneficially own in excess of [4.99]% of the                                       -8-           74201950_4  

 

   number of shares of Common Stock outstanding immediately after giving effect to the issuance of  shares  of  Common  Stock  issuable  upon  exercise  of  this  Warrant  (the  “Beneficial  Ownership  Limitation”); [provided, that notwithstanding anything herein to the contrary, this limitation on  exercise  shall  not  be  applicable  to  any  person  that  beneficially  owns  10.0%  or  more  of  the  Company’s outstanding Common Stock immediately prior to the exercise of this Warrant, but  without giving effect to any shares of Common Stock underlying this Warrant].  Notwithstanding  the forgoing, the Holder shall have the right to increase or decrease the Beneficial Ownership  Limitation  (to  an  amount  not  to  exceed  [19.99]%  of  the  number  of  shares  of  Common  Stock  outstanding immediately after giving effect to the issuance of shares of Common Stock issuable  upon exercise of this Warrant [if exceeding that limit would result in a change of control as set  forth in Nasdaq Listing Rule 5635(b))], with any increase to be effective only upon the Holder  providing the Company with prior written notice of such increase, which shall be effective 61 days  after  delivery  of  such  notice  to  the  Company.  To  the  extent  the  above  limitation  applies,  the  determination of whether this Warrant shall be exercisable (vis-à-vis other convertible, exercisable  or exchangeable securities owned by the Holder or any of its Attribution Parties) and of which  such securities shall be exercisable (as among all such securities owned by the Holder or any of its  Attribution Parties) shall, subject to such Beneficial Ownership Limitation, be determined by the  Holder, and the Company shall have no responsibility for determining the accuracy of the Holder’s  determination. No prior inability to exercise this Warrant pursuant to this paragraph shall have any  effect  on  the  applicability  of  the  provisions  of  this  paragraph  with  respect  to  any  subsequent  determination  of  exercisability.  For  purposes  of  the  calculation  of  the  Beneficial  Ownership  Limitation, the aggregate number of shares of Common Stock beneficially owned by the Holder  and its Attribution Parties shall include the number of shares of Common Stock issuable upon  exercise of this Warrant with respect to which such determination is being made, but shall exclude  the  number  of  shares  of  Common  Stock  which  would  be  issuable  upon  (i)  exercise  of  the  remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its  Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of  any other securities of the Company (including, without limitation, any other convertible notes or  convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous  to the limitation contained herein beneficially owned by the Holder or any of its Attribution Parties.   Except as set forth in the preceding sentence, for purposes of this section, beneficial ownership  shall  be  calculated  in  accordance  with  Section  13(d)  of  the  Exchange  Act  and  the  rules  and  regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not  representing  to  the  Holder  that  such  calculation  is  in  compliance  with  Section  13(d)  of  the  Exchange  Act  and  the  Holder  is  solely  responsible  for  any  schedules  required  to  be  filed  in  accordance therewith.  In addition, a determination as to any group status as contemplated above  shall  be  determined  in  accordance  with  Section  13(d)  of  the  Exchange  Act  and  the  rules  and  regulations promulgated thereunder.  For purposes of this Section 5(c), in determining the number  of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares  of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed  with  the  Securities  and  Exchange  Commission,  as  the  case  may  be,  (B)  a  more  recent  public  announcement  by  the  Company  or  (C)  a  more  recent  written  notice  by  the  Company  or  the                                        -9-           74201950_4  

 

   Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  In  any case, the number of outstanding shares of Common Stock shall be determined after giving  effect to the conversion or exercise of securities of the Company, including this Warrant, by the  Holder or its Attribution Parties since the date as of which such number of outstanding shares of  Common  Stock  was  reported.   The  provisions  of  this  paragraph  shall  be  construed  and  implemented in a manner otherwise than in strict conformity with the terms of this Section 5(c) to  correct this paragraph (or any portion hereof) which may be defective or inconsistent with the  intended Beneficial Ownership Limitation herein contained or to make changes or supplements  necessary or desirable to properly give effect to such limitation. The limitations contained in this  paragraph shall apply to a successor holder of this Warrant. Upon the reasonable written request  of the Holder, the Company shall within three (3) trading days confirm orally or in writing to the  Holder the number of shares of Common Stock then outstanding, including by virtue of any prior  conversion or  exercise of  convertible  or  exercisable  securities  into  Common  Stock,  including,  without  limitation,  pursuant  to  this  Warrant  or  securities  issued  pursuant  to  the  Purchase  Agreement.]       6.   CERTIFICATE OF ADJUSTMENT.  Whenever the Exercise Price or number or  type of securities issuable upon exercise of this Warrant is adjusted, as herein provided, the  Company shall, at its expense, promptly deliver to the Holder and the Warrant Agent a certificate  of an officer of the Company setting forth the nature of such adjustment and showing in detail  the facts upon which such adjustment is based. The Warrant Agent shall be fully protected in  relying on such a certificate and shall have not be deemed to have any knowledge of the  occurrence of an adjustment unless and until it has received such a certificate. In no event shall  the Warrant Agent have any obligation to calculate any of the adjustments, all such calculations  being the responsibility of the Company.           7.   NOTICES.  In the event of:            (a)  any taking by the Company of a record of the holders of any class of securities  for the purpose of determining the holders thereof who are entitled to receive any dividend (other  than a cash dividend payable out of earned surplus of the Company) or other distribution, or any  right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other  securities or property, or to receive any other right; or            (b)  any  voluntary  or  involuntary  dissolution,  liquidation  or  winding-up  of  the  Company,    then  and  in  each  such  event  the  Company  will  promptly  mail  or  cause to be delivered to the  Warrant Agent and Holder (or a permitted transferee) a notice specifying (i) the date on which any  such record is to be taken for the purpose of such dividend, distribution or right, and stating the  amount and character of such dividend, distribution or right, and (ii) the date on which any such  dissolution, liquidation or winding-up is to take place, and the time, if any, as of which the holders  of  record  of  Common  Stock  (or  other  securities)  shall  be  entitled  to  exchange  their  shares  of                                       -10-           74201950_4  

 

   Common  Stock  (or  other  securities)  for  securities  or  other  property  deliverable  upon  such  dissolution, liquidation or winding-up.  Such notice shall be delivered at least twenty (20) days  prior to the date therein specified.            (c)  Whenever any other notice is required to be given under this Warrant, unless  otherwise provided herein, the Company shall provide prompt written notice of all actions taken  pursuant to this Warrant, including in reasonable detail a description of such action and the reason  therefore.        8.   REPLACEMENT OF WARRANTS.  On receipt of evidence reasonably satisfactory  to the Company and Warrant Agent of the loss, theft, destruction or mutilation of this Warrant and,  in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity  agreement reasonably satisfactory in form and amount to the Company and Warrant Agent or, in  the case of any such mutilation, on surrender and cancellation of such Warrant, the Company at  its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.       9.   ISSUANCE OF NEW WARRANTS.  Whenever the Company is required to issue a  new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with  this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase  the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued  pursuant to Sections 8 or 9, the Warrant Shares designated by the Holder which, when added to  the number of shares of Common Stock underlying the other new Warrants issued in connection  with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant),  (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same  as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.       10.  NO FRACTIONAL SHARES.  No fractional Warrant Shares or scrip representing  fractional shares will be issued upon exercise of this Warrant.  In lieu of any fractional shares  which would otherwise be issuable, the Company shall pay cash equal to the product of such  fraction multiplied by the Fair Market Value of one Warrant Share.       11.  AMENDMENT AND WAIVER.  Except as otherwise provided herein, the provisions  of this Warrant may be amended and the Company may take any action herein prohibited, or omit  to perform any act herein required to be performed by it, only if the Company has obtained the  written consent of the Holder.       12.  TRADING DAYS.  If the last or appointed day for the taking of any action or the  expiration of any right required or granted herein shall be other than a day on which the Common  Stock is traded (which for the avoidance of doubt includes a Saturday, Sunday or a legal U.S.  holiday) on the Nasdaq Capital Market, or, if the Nasdaq Capital Market is not the principal trading  market  for  the  Common  Stock  or  other  such  securities,  as  applicable,  then  on  the  principal  securities exchange or securities market on which the Common Stock is then traded, then such                                        -11-           74201950_4  

 

     action may be taken or such right may be exercised on the next succeeding day on which the   Common Stock is so traded.        13.  TRANSFERS; EXCHANGES.               (a)  Subject  to  compliance  with  applicable  federal  and  state  securities  laws  and  Section 7 hereof, this Warrant may be transferred by the Holder with respect to all of the Warrant  Shares  purchasable  hereunder.   For  a  transfer  of  this  Warrant  as  an  entirety  by  Holder,  upon  surrender of this Warrant to the Warrant Agent, together with the Notice of Assignment in the  form  attached  hereto  as  Exhibit  B  properly  completed  and  duly  executed  by  the  Holder,  the   Company shall issue a new Warrant of the same denomination to the assignee.  Upon surrender of   this Warrant to the Warrant Agent, together with the Notice of Assignment in the form attached   hereto  as  Exhibit  B  properly  completed  and  duly  executed  by  the  Holder  accompanied  by  a   signature guarantee from an eligible guarantor institution participating in a signature guarantee   program approved by the Securities Transfer Association (a “signature guarantee”), for transfer of   this Warrant with respect to a portion of the Warrant Shares purchasable hereunder, the Company   will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with   Section 9), registered as the Holder may request, representing the right to purchase the number of   Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares   then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 9)   to  the  Holder  representing  the  right  to  purchase  the  number  of Warrant  Shares  not  being   transferred.             (b)  This Warrant is exchangeable, without expense, at the option of the Holder, upon   presentation  and  surrender  hereof  to  the  Warrant  Agent  for  other  warrants  of  different   denominations entitling the holder thereof to purchase in the aggregate the same number of shares   of Common Stock purchasable hereunder.  This Warrant may be combined with other warrants   that carry the same rights upon presentation hereof at the office of the Warrant Agent designated   for  such  purpose  together  with  a  written  notice  specifying  the denominations  in  which  new   warrants are to be issued to the Holder and signed by the Holder hereof.  The term “Warrants” as   used  herein  includes  any  warrants  into  which  this  Warrant  may  be  divided  or  exchanged.  All   Warrant Certificates surrendered for the purpose of transfer, split up, combination or exchange,   when surrendered to the Warrant Agent shall be accompanied by a signature guarantee.             (c)  If, at the time of the surrender of this Warrant in connection with any transfer of   this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective   registration statement under the Securities Act and under applicable state securities or blue sky   laws or (ii) eligible for resale pursuant to Rule 144, the Company may require, as a condition of   allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, provide   to the Company an opinion of counsel selected by the Holder and reasonably acceptable to the   Company,  the  form  and  substance  of  which  opinion  shall  be  reasonably  satisfactory  to  the   Company, to the effect that such transfer does not require registration of such transferred Warrant   under the Securities Act.                                        -12-               74201950_4  

 

            (d)  The Holder, by the acceptance hereof, represents and warrants that it is acquiring  this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such  exercise, for its own account and not with a view to or for distributing or reselling such Warrant  Shares or any part thereof in violation of the Securities Act or any applicable state securities law,  except pursuant to sales registered or exempted under the Securities Act.       14.  GOVERNING LAW; VENUE.  All questions concerning the construction, validity,  enforcement and interpretation of this Warrant shall be governed by and construed and enforced  in accordance with the internal laws of the State of New York, without regard to the principles of  conflicts of law thereof.  With respect to any disputes arising out of or related to this Warrant, the  parties consent to the exclusive jurisdiction of, and venue in, the state courts in the State of New  York (or in the event of exclusive federal jurisdiction, the courts of the District of New York).   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 via registered or certified  mail or overnight delivery (with evidence of delivery) to such party at the address in effect for  notices to it under this Warrant 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  other  manner  permitted  by  law.  EACH  OF  THE  COMPANY  AND  THE  HOLDER  HEREBY  IRREVOCABLY  WAIVES,  TO  THE  FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO  TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING  TO THIS WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY.         15.  DISPUTE RESOLUTION.  In the case of a dispute as to the determination of the  Exercise  Price,  the  arithmetic  calculation  of  the  Warrant  Shares  or  under  Sections  2  or  6,  the  disputing party shall submit the disputed determinations or arithmetic calculations to the other  party.  If the Holder and the Company are unable to agree upon such determination or calculation  of  the  Exercise  Price  or  the  Warrant  Shares  within  three  (3)  trading  days  of  such  disputed  determination  or  arithmetic  calculation  being  submitted  to  the non-disputing  party,  then  the  Company  shall,  within  two  (2)  trading  days  submit  the  dispute  to  an  independent,  reputable  accountant.  The Company shall cause, at the expense of the prevailing party, the accountant to  perform the determinations or calculations and notify the Company and the Holder of the results  no  later  than  ten  (10)  trading  days  from  the  time  it  receives  the  disputed  determinations  or  calculations.   Such accountant’s  determination or  calculation  shall  be  binding  upon  all  parties  absent demonstrable error.       16.  REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.   The remedies provided in this Warrant shall be cumulative and in addition to all other remedies  available under this Warrant, at law or in equity (including a decree of specific performance and/or  other injunctive relief), and nothing herein shall limit the right  of  the Holder  to  pursue  actual  damages for any failure by the Company to comply with the terms of this Warrant.                                        -13-           74201950_4  

 

    17.  CONSTRUCTION; HEADINGS.  This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter hereof.   The headings of this Warrant are for convenience of reference and shall not form part of, or affect  the interpretation of, this Warrant.       18.  SUCCESSORS AND ASSIGNS.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon  the successors and permitted assigns of the Company and the successors and permitted assigns of  the Holder.  The provisions of this Warrant are intended to be for and the benefit of any Holder  from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant  Shares.       19.  RESTRICTIONS. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, must comply with the applicable restrictions upon  resale imposed by state and federal securities laws.       20.  MISCELLANEOUS.   All  notices,  requests,  consents  and  other  communications hereunder shall be in writing, shall be sent by confirmed electronic mail, or mailed by first-class  registered or certified airmail, or nationally recognized overnight express courier, postage prepaid,  and shall be deemed given when so sent in the case of electronic mail transmission, or when so  received  in  the  case  of  mail  or  courier,  and  addressed  as  follows:   (a)  if  to  the  Company,  at  Cambridge Discovery Park, 100 Acorn Park Drive, 5th Floor, Cambridge, MA 02140, Attention:  Finance  Department;  with  a  copy  to  (which  shall  not  constitute notice)  Ropes  &  Gray  LLP,  Prudential          Tower,            800            Boylston            Street  Boston, MA 02199-3600, Attention: Marc Rubenstein and (b) if to the Holder, at such address or  addresses (including copies to counsel) as may have been furnished by the Holder to the Company  in writing.  The invalidity or unenforceability of any provision hereof shall in no way affect the  validity or enforceability of any other provisions.                               [Signature Page Follows]                                         -14-   74201950_4  

 

    IN WITNESS WHEREOF, this Common Stock Purchase Warrant is issued effective as of  the date first set forth above.                                 GENOCEA BIOSCIENCES, INC.                                  By:                                Name:                                Title:                                  SIGNATURE PAGE TO                           WARRANT NO. 2019-«WARRANT NO»     74201950_4  

 

                                  EXHIBIT A                           NOTICE OF INTENT TO EXERCISE                       (To be signed only upon exercise of Warrant)    To: Genocea Biosciences, Inc.        The undersigned, the Holder of the attached Warrant, hereby irrevocably elects to exercise   the  purchase  right  represented  by  such  Warrant  for,  and  to  purchase  thereunder,   __________________________  shares  of  Common  Stock  of  Genocea  Biosciences,  Inc.,  a   Delaware corporation (the “Company”), and (choose one)        __________ herewith makes payment of USD ___________________________ thereof        or        __________ elects to Net Exercise the Warrant pursuant to Section 1(b)(2) thereof.        The undersigned requests that the certificates or book entry position evidencing the shares   to be acquired pursuant to such exercise be issued in the name of, and delivered to   __________________________________________, whose address is   ______________________________________________________________________________  ______________________.        By  its  delivery  of  this  Exercise  Notice,  the  undersigned  represents and warrants to the   Company that in giving effect to the exercise evidenced hereby the Holder will not beneficially   own  in  excess  of  the  number  of  shares  of  Common  Stock  (as  determined  in  accordance  with   Section 13(d) of the Securities Exchange Act of 1934, as amended) permitted to be owned under   Section 5(c) of the Warrant to which this notice relates.        By  its  signature  below  the  undersigned  hereby  represents  and  warrants  that  it  is  an  “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities  Act of 1933, as amended, and agrees to be bound by the terms and conditions of the attached  Warrant as of the date hereof, including Section 7 thereof.   DATED:                                     (Signature must conform in all                                     respects to name of the Holder                                     as specified on the face of the                                     Warrant)                                      [Holder Name]                                     Address:     74201950_4  

 

74201950_4  

 

                                  EXHIBIT B                            NOTICE OF ASSIGNMENT FORM        FOR  VALUE  RECEIVED,  [Holder  Name]  (the  “Assignor”)  hereby  sells,  assigns  and   transfers all of the rights of the undersigned Assignor under the attached Warrant with respect to  the number of shares of common stock of Genocea Biosciences, Inc., a Delaware corporation (the  “Company”), covered thereby set forth below, to the following “Assignee” and, in connection with   such  transfer,  represents  and  warrants  to  the  Company  that  the transfer  is  in  compliance  with   Section 7 of the Warrant and applicable federal and state securities laws:             NAME OF ASSIGNEE                            ADDRESS     Number of shares:     Dated:                                 Signature:                            ASSIGNEE ACKNOWLEDGMENT        The undersigned Assignee acknowledges that it has reviewed the attached Warrant and by  its signature below it hereby represents and warrants that it is an “accredited investor” as defined  in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended, and  agrees to be bound by the terms and conditions of the Warrant as of the date hereof, including  Section 7 thereof.                                      Signature:                                      By:                                      Its:   Address:     74201950_4  

 

[Signature guarantee]    74201950_4

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