Document:

Exhibit 10.18

 

NOVAVAX, INC.

 

AMENDED AND RESTATED CHANGE IN CONTROL
SEVERANCE BENEFIT PLAN

 

Adopted by the Board of Directors August
10, 2005

Amended by the Board of Directors July
26, 2006

Amended by the Board of Directors December
31, 2008

Amended by the Board of Directors June
15, 2011

 

Section 1.             Introduction.

 

The Novavax, Inc. Change in Control Severance
Benefit Plan (“Plan”) was originally approved by the Board of Directors (the “Board”) of Novavax, Inc.
(the “Company”) and became effective on August 10, 2005, and was subsequently amended and restated on July 26, 2006
and December 31, 2008. On June 15, 2011, the Board approved an amendment and restatement of the Plan as set forth herein, effective
June 15, 2011 (“Effective Date”). The purpose of the Plan is to provide severance benefits to certain eligible employees
of the Company in the event of their termination of employment in connection with a Change in Control (as defined herein). This
Plan document also is the Summary Plan Description for the Plan. The amendment and restatement of the Plan is designed to ensure
that the severance benefits payable under the plan are exempt from or compliant with the requirements of Section 409A of the Internal
Revenue Code of 1986, as amended (“Code”).

 

Certain capitalized terms used in the Plan are
defined in Section 6.

 

Section 2.             Eligibility
For Benefits.

 

(a)          General
Rules.

 

(i)          Subject
to the requirements set forth in this Section 2, the Company shall grant benefits under the Plan to Eligible Employees. “Eligible
Employees” include those employees of the Company who are approved by the Board in its sole and absolute discretion and
designated as participants in this Plan. Employees who have been selected to participate by the Board shall be listed on Exhibit
A to this Plan, which Exhibit A shall be maintained and adjusted pursuant to Board action and authorization by the Company’s
senior Human Resources official. At any time the Board may select additional employees to participate in the Plan, but no employee
or other service provider of the Company who has not been specifically approved by the Board shall be eligible for benefits hereunder.

 

(ii)         Subject
to Section 2(c)(ii) below, an Eligible Employee shall be eligible for benefits under this Plan if the Eligible Employee’s
employment with the Company terminates due to an Involuntary Termination without Cause for a reason other than the Eligible Employee’s
death or Disability, or as a result of a Constructive Termination, which in either case occurs: (a) before the effective date of
a Change in Control, but after the first date on which the Board and/or senior management of the Company has entered into formal
negotiations with a potential acquirer that results in the consummation of a Change in Control; or (b) during such Eligible Employee’s
Tail Period.

 

    	 	1	 

     

    

 

(b)          Other
Requirements.         

 

(i)          In
order to be eligible to receive benefits under the Plan, an Eligible Employee must execute a general waiver and release of all
legal claims against the Company and its Affiliates and their representatives on a form satisfactory to the Company.

 

(ii)         Any
Change in Control that triggers the payment of benefits under this Plan must occur during the term of this Plan as
specified in Section 5(b).

 

(c)          Exceptions.
Notwithstanding the foregoing:

 

(i)          An
Eligible Employee who is eligible for Change in Control severance benefits under any individually negotiated employment contract
or agreement between the Eligible Employee and the Company shall be deemed to have elected to receive severance benefits under
this Plan and shall not be eligible for any severance benefits under such other employment contract or agreement (unless expressly
provided otherwise by the Board in a manner that does not violate the requirements of Section 409A of the Code).

 

(ii)         An
Eligible Employee shall not be eligible to receive benefits under this Plan (and the Eligible Employee’s participation in
this Plan shall terminate) if employment was terminated:

 

		·	by the Company for Cause at any time;

 

		·	voluntarily by employee other than a Constructive Termination;

 

		·	for any reason, whether initiated by the Eligible Employee or the Company, after expiration of the Tail Period;

 

		·	for any reason before the beginning of formal negotiations with a potential acquirer of the Company’s business; or

 

		·	for any reason, more than one year before the effective date of Change in Control (even if formal negotiations with a potential
acquirer have begun).

 

Section 3.            Amount
and Type of Benefits; Limitations and Exceptions.

 

Benefits payable under the Plan are as follows
and are subject to the following limitations and exceptions:

 

(a)          The
Company, in its sole discretion, may grant to an Eligible Employee, and his or her dependents and beneficiaries (if applicable)
any of the following benefits or combination thereof:

 

(i)          In
a single payment, the amount of such Eligible Employee’s Pay for the Severance Benefit Period and one hundred percent (100%)
of such Eligible Employee’s target Bonus Amount pro-rated or multiplied by the amount of the Severance Benefit Period. Unless
otherwise stated in Exhibit A, Severance Benefit Periods shall be as follows:

 

	Chief Executive Officer	 	24 months
	Vice President(s)	 	12 months
	Other named Eligible Employee(s)	 	6 months

 

    	 	2	 

     

    

 

(ii)         Medical,
dental, vision and hospitalization insurance benefits, beginning immediately following the Termination Date and ending at the expiration
of each Eligible Employee’s Severance Benefit Period, to the extent an Eligible Employee elects coverage under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”) and remains eligible for such COBRA coverage; such benefits to
be provided on terms and conditions no less favorable to the Eligible Employee than those in effect immediately prior to the Termination
Date;

 

(iii)        A
period of up to the duration of each Eligible Employee’s Severance Benefit Period, or the remaining time of the term of grant,
if shorter, after his or her Termination Date during which to exercise otherwise vested exercisable, and unexpired stock options.

 

(b)          All
fringe benefits not otherwise covered by this Plan (including, but not limited to, pension/retirement, life insurance, disability
coverage and other welfare benefits) shall terminate as of the employee’s Termination Date (except to the extent that the
specific plans or programs provide for extended coverage or if any conversion privilege is available thereunder).

 

(c)          Parachute
Payments.

 

(i)          Notwithstanding
the above, if any payment or benefit that an Eligible Employee would receive under this Plan, when combined with any other payment
or benefit he or she receives that is contingent upon a Change in Control (“Payment”) would (i) constitute a “parachute
payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed
by Section 4999 of the Code (“Excise Tax”), then such Payment shall be either (x) the full amount of such Payment or
(y) such lesser amount (with Payments being reduced in the order and priority established by the Board) as would result in no portion
of the Payment being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal,
state and local employment taxes, income taxes, and the Excise Tax results in the Eligible Employee’s receipt, on an after-tax
basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise
Tax. The Eligible Employee shall be solely responsible for the payment of all personal tax liability that is incurred as a result
of the payments and benefits received under this Plan, and Participant will not be reimbursed by the Company for any such payments.

 

(ii)         The
Company shall attempt to cause its accountants to make all of the determinations required to be made under Section 3(d)(i), or,
in the event the Company’s accountants will not perform such service, the Company may select another professional services
firm to perform the calculations. The Company shall request that the accountants or firm provide detailed supporting calculations
both to the Company and Eligible Employee prior to the Change in Control if administratively feasible or subsequent to the Change
in Control if events occur that result in parachute payments to the Eligible Employee at that time. For purposes of making the
calculations required by Section 3(d), the accountants or firm may make reasonable assumptions and approximations concerning applicable
taxes and may rely on reasonable, good faith determinations concerning the application of the Code. The Company and Eligible Employee
shall furnish to the accountants or firm such information and documents as the accountants or firm may reasonably request in order
to make a determination under this Section 3(d). The Company shall bear all costs the accountants or firm may reasonably incur
in connection with any calculations contemplated by Section 3(d). Any such determination by the Company’s accountants or
other firm shall be binding upon the Company and Eligible Employee, and the Company shall have no liability to Eligible Employees
for the determinations of its accountants or other firm.

 

    	 	3	 

     

    

 

(d)          Any
provisions contained in the Company’s stock option or equity plans, or contained in an Eligible Employee’s individual
stock option agreement with the Company, regarding the accelerated vesting or exercisability of stock options or awards upon a
Change in Control shall continue to apply and may be supplemented by, but shall not be superseded by, the terms of this Plan.

 

Section 4.            Time
of Payment and Form of Benefit; Indebtedness.

 

(a)          Cash
benefits under this Plan as described in the attached Benefit Schedule, less applicable tax withholdings, shall be paid to an Eligible
Employee in a lump sum. The Company reserves the right to determine the timing of such payments, provided, however, that all payments
under this Plan shall be completed on the sixtieth day after an Eligible Employee’s Termination Date or, in the case where
an Eligible Employee’s Termination Date precedes a Change in Control, sixty (60) days after the effective date of the Change
in Control (subject to the provisions requiring later payment set forth in Section 4(c) below). In no even will any Employee have
an election as to the year in which it was received. Notwithstanding the above, no payment shall be made under this Plan prior
to the last day of any waiting period or revocation period as required by applicable law in order for the general waiver and release
of legal claims required by Section 2(b)(i) of this Plan to be effective; provided, however, that in any event such payment is
made no later than two and one-half (2-1/2) months following the calendar year in which the later of the Termination Date or effective
date of the Change in Control occurs.

 

(b)          If
an Eligible Employee is indebted to the Company at his or her payment date, the Company reserves the right to offset any payments
under the Plan by the amount of such indebtedness.

 

Section 5.            Right
to Interpret Plan; Amend and Terminate; Binding Nature of Plan.

 

(a)          Exclusive
Discretion. The Plan Administrator (defined below) shall have the exclusive discretion and authority to establish rules, forms,
and procedures for the administration of the Plan, and to construe and interpret the Plan and to decide any and all questions of
fact, interpretation, definition, computation or administration arising in connection with the operation of the Plan, including,
but not limited to, the eligibility to participate in the Plan and the amount of benefits paid under the Plan. The rules, interpretations,
computations and other actions of the Plan Administrator shall be binding and conclusive on all persons.

 

    	 	4	 

     

    

 

(b)          Term
of Plan; Amendment or Termination.

 

(i)          The
Board reserves the right to amend or modify the terms of the Plan or the benefits provided hereunder at any time, provided, however,
that any such amendment or modification that diminishes or otherwise adversely affects the rights or benefits of an Eligible Employee
under the Plan shall only become effective upon the written consent of any such affected Eligible Employee. The Board may terminate
the Plan at any time with the written consent of the Eligible Employees, or may terminate a particular Eligible Employee’s
participation in the Plan or entitlement to benefits with the written consent of such Eligible Employee. Notwithstanding the above,
the Plan may be terminated by the Board in its discretion, without the consent of any Eligible Employee, at any time after the
expiration of each Eligible Employee’s Tail Period , provided that all unpaid severance benefits related to such Change in
Control have been paid to Eligible Employees whose Termination Date occurred prior to the termination of the Plan.

 

(ii)         Eligible
Employees shall have the right to be promptly notified that any action amending or terminating the Plan has been taken.

 

(c)          Binding
Effect on Successor to Company. This Plan shall be binding upon any successor or assignee, whether direct or indirect, by purchase,
merger, consolidation or otherwise, to all or substantially all the business or assets of the Company, or upon any successor to
the Company as the result of a Change in Control, and any such successor or assignee shall be required to perform the Company’s
obligations under the Plan, in the same manner and to the same extent that the Company would be required to perform if no such
succession or assignment or Change in Control had taken place. In such event, the term “Company,” as used in the Plan,
shall mean the Company as hereinafter defined and any successor or assignee as described above which by reason hereof becomes bound
by the terms and provisions of this Plan, and the term “Board” shall refer to the Board of Directors of any such surviving
or continuing entity.

 

Section 6.            Definitions.

 

Capitalized terms used in this Plan, unless
defined elsewhere in this Plan, shall have the following meanings:

 

(a)          Accrued
Compensation means an amount which includes all amounts earned or accrued through the Termination Date but not paid as of the
Termination Date, including (i) Pay, (ii) reimbursement for reasonable and necessary expenses incurred by the Eligible Employee
on behalf of the Company during the period ending on the Termination Date, (iii) unused vacation pay, and (iv) any earned and accrued
bonuses and incentive compensation as of the Termination Date (but not including any pro rata portion of the Bonus Amount).

 

(b)          Affiliate
means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms as defined
in Sections 424(e) and (f), respectively, of the Code.

 

(c)          Bonus
Amount means one hundred percent (100%) of the target annual performance bonus amount that an Eligible Employee is eligible
to receive for the period that includes the Termination Date. If an Eligible Employee’s bonus is calculated on a monthly
or quarterly basis, the maximum bonus award for these purposes shall be the amount determined by annualizing the maximum monthly
or quarterly payment.

 

    	 	5	 

     

    

 

(d)          Cause
means (i) conviction of, a guilty plea with respect to, or a plea of nolo contendere to a charge that the Eligible Employee
has committed a felony under the laws of the United States or of any state or a crime involving moral turpitude, including, but
not limited to, fraud, theft, embezzlement or any crime that results in or is intended to result in personal enrichment at the
expense of the Company; (ii) material breach of any agreement entered into between the Eligible Employee and the Company that impairs
the Company’s interest therein; (iii) willful misconduct, significant failure to perform the Eligible Employee’s duties,
or gross neglect by the Eligible Employee of the Eligible Employee’s duties; or (iv) engagement in any activity that constitutes
a material conflict of interest with the Company.

 

(e)          Change
in Control means (i) a sale, lease, license or other disposition of all or substantially all of the assets of the Company,
(ii) a consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate
reorganization, in which the shareholders of the Company immediately prior to such consolidation, merger or reorganization, own
less than fifty percent (50%) of the outstanding voting power of the surviving entity and its parent following the consolidation,
merger or reorganization, or (iii) any transaction or series of related transactions involving a person or entity, or a group of
affiliated persons or entities (but excluding any employee benefit plan or related trust sponsored or maintained by the Company
or an Affiliate) in which such persons or entities that were not shareholders of the Company immediately prior to their acquisition
of Company securities as part of such transaction become the owners, directly or indirectly, of securities of the Company representing
more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue
of a merger, consolidation or similar transaction and other than as part of a private financing transaction by the Company, or
(iv) a Change in the Incumbent Board. For purposes of this Plan, a Change in the Incumbent Board shall occur if the existing members
of the Board on the date this Plan is initially adopted by the Board (the “Incumbent Board”) cease to
constitute at least a majority of the members of the Board, provided, however, that any new Board member shall be
considered a member of the Incumbent Board for this purpose if the appointment or election (or nomination for such election) of
the new Board member was approved or recommended by a majority vote of the members of the Incumbent Board who are then still in
office.

 

(f)          Code
means the Internal Revenue Code of 1986, as amended.

 

(g)         Company
means Novavax, Inc., a Delaware corporation, and any successor as provided in Section 5(d) hereof.

 

(h)         Constructive
Termination means a termination initiated by an Eligible Employee because any of the following events or conditions have occurred:

 

(i)          a
change in the Eligible Employee’s position or responsibilities (including reporting responsibilities) which represents a
material adverse change from the Eligible Employee’s position or responsibilities as in effect, immediately preceding the
effective date of a Change in Control or at any time thereafter; the assignment to the Eligible Employee of any duties or responsibilities
which are materially and adversely inconsistent with the Eligible Employee’s position or responsibilities as in effect immediately
preceding the effective date of a Change in Control or at any time thereafter; except in connection with the termination of the
Eligible Employee’s employment for Cause or the termination of an Eligible Employee’s employment because of an Eligible
Employee’s Disability or death, or except as the result of a voluntary termination by the Eligible Employee other than as
a result of a Constructive Termination;

 

    	 	6	 

     

    

 

(ii)         a
material reduction in the Eligible Employee’s Pay or any material failure to pay the Eligible Employee any compensation or
benefits to which the Eligible Employee is entitled within five (5) days of the date due;

 

(iii)        the
Company’s requiring the Eligible Employee to relocate his principal worksite to any place outside a fifty (50) mile radius
of the Eligible Employee’s current worksite, except for reasonably required travel on the business of the Company or its
Affiliates which is not materially greater than such travel requirements prior to the Change in Control;

 

(iv)        the
failure by the Company to continue in effect (without reduction in benefit level and/or reward opportunities) any material compensation
or employee benefit plan in which the Eligible Employee was participating immediately preceding the effective date of a Change
in Control or at any time thereafter, unless such plan is replaced with a plan that provides substantially equivalent compensation
or benefits to the Eligible Employee;

 

(v)         any
material breach by the Company of any provision of this Plan;

 

(vi)        the
failure of the Company to obtain an agreement, from any successors and assigns to assume and agree to perform the obligations created
under this Plan as a result of a Change in Control, as contemplated in Section 5 hereof.

 

An Eligible Employee must notify the Company
of the circumstances on which a Constructive Termination is purportedly based within ninety (90) days of the initial occurrence
of any such event. The Company shall have thirty (30) days from the date of such notice to cure such event or condition.

 

(i)          Disability
means the permanent and total disability of a person within the meaning of Section 409A(a)(2)(C) of the Code.

 

(j)          Eligible
Employee means an individual specified in Section 2(a) who is eligible to participate in the Plan.

 

(k)         Involuntary
Termination without Cause means the termination of an Eligible Employee’s employment which is initiated by the Company
for a reason other than Cause.

 

(l)          Pay
means the Eligible Employee’s base pay (excluding incentive pay, premium pay, commissions, overtime, bonuses and other forms
of supplemental or variable compensation) at the rate in effect during the regularly scheduled payroll period coincident with the
Change in Control or with the Termination Date, whichever is greater.

 

(m)        Plan
means this Novavax, Inc. Change in Control Severance Benefit Plan.

 

(n)         Severance
Benefit Period refers to the period of time during which an Eligible Employee receives severance under the Plan as specified
per Eligible Employee on Exhibit A

 

(o)         Tail
Period refers to the period of time in months after the effective date of a Change in Control and varies by Eligible Employee
based on that Eligible Employee’s Severance Benefit Period.

 

    	 	7	 

     

    

 

(p)         Termination
Date means the last date on which the Eligible Employee is in active pay status as an employee with the Company. A holiday
cannot constitute a Termination Date unless the Eligible Employee actively provided services for the Company on such holiday.

 

Section 7.            No
Implied Employment Contract.

 

The Plan shall not be deemed (i) to give any
employee or other person any right to be retained in the employ of the Company, or (ii) to interfere with the right of the Company
to discharge any employee or other person at any time and for any reason, which right is hereby reserved.

 

Section 8.            Legal
Construction.

 

This Plan is intended to be governed by and
shall be construed in accordance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and,
to the extent not preempted by ERISA, the laws of the State of Pennsylvania.

 

Section 9.            Claims,
Inquiries and Appeals.

 

(a)          Claims
for Benefits and Inquiries. Any claim for benefits, inquiries about the Plan or inquiries about present or future rights under
the Plan must be submitted to the Plan Administrator in writing by an Eligible Employee (or his or her authorized representative).
The Plan Administrator is the Compensation Committee of the Board, or its designee, and claims and inquiries should be directed
to:

 

Novavax, Inc.

9920 Belward Campus Drive

Rockville, MD 20850

 

Attn: Vice President of Human Resources, the Chief Executive Officer,
or the Chairman of the Compensation Committee of the Board

 

(b)          Denial
of Claims. In the event that any claim for benefits is denied in whole or in part, the Plan Administrator must provide the
claimant with written or electronic notice of the denial of the claim, and of the claimant’s right to review the denial.
Any electronic notice will comply with the regulations of the U.S. Department of Labor. The notice of denial will be set forth
in a manner designed to be understood by the claimant and will include the following:

 

(i)          the
specific reason or reasons for the denial;

 

(ii)         references
to the specific Plan provisions upon which the denial is based;

 

(iii)        a
description of any additional information or material that the Plan Administrator needs to complete the review and an explanation
of why such information or material is necessary; and

 

(iv)        an
explanation of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the
applicant’s right to bring a civil action under Section 502(a) of ERISA following a denial on review of the claim, as described
in Section 9(d) below.

 

    	 	8	 

     

    

 

This notice of denial will be given to the claimant
within ninety (90) days after the Plan Administrator receives the claim, unless special circumstances require an extension of time,
in which case, the Plan Administrator has up to an additional ninety (90) days for processing the claim. If an extension of time
for processing is required, written notice of the extension will be furnished to the claimant before the end of the initial ninety
(90) day period.

 

This notice of extension will describe the special
circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the claim.

 

(c)          Request
for a Review. Any person (or that person’s authorized representative) for whom a claim for benefits is denied, in whole
or in part, may appeal the denial by submitting a request for a review to the Plan Administrator within sixty (60) days after the
claim is denied. A request for a review shall be in writing and shall be addressed to:

 

Novavax, Inc.

9920 Belward Campus Drive

Rockville, MD 20850

 

Attn: Vice President of Human Resources, the Chief Executive Officer,
or the Chairman of the Compensation Committee of the Board

 

A request for review must set forth all of the grounds on which
it is based, all facts in support of the request and any other matters that the claimant feels are pertinent. The claimant (or
his or her representative) shall have the opportunity to submit (or the Plan Administrator may require the claimant to submit)
written comments, documents, records, and other information relating to his or her claim. The claimant (or his or her representative)
shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information
relevant to his or her claim. The review shall take into account all comments, documents, records and other information submitted
by the claimant (or his or her representative) relating to the claim, without regard to whether such information was submitted
or considered in the initial benefit determination.

 

(d)          Decision
on Review. The Plan Administrator will act on each request for review within sixty (60) days after receipt of the request,
unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for processing the request
for a review. If an extension for review is required, written notice of the extension will be furnished to the claimant within
the initial sixty (60) day period. This notice of extension will describe the special circumstances necessitating the additional
time and the date by which the Plan Administrator is to render its decision on the review. The Plan Administrator will give prompt,
written or electronic notice of its decision to the claimant. Any electronic notice will comply with the regulations of the U.S.
Department of Labor. In the event that the Plan Administrator confirms the denial of the claimant for benefits in whole or in part,
the notice will set forth, in a manner calculated to be understood by the applicant, the following:

 

(i)          the
specific reason or reasons for the denial;

 

(ii)         references
to the specific Plan provisions upon which the denial is based;

 

    	 	9	 

     

    

 

(iii)        a
statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant to his or her claim; and

 

(iv)        a
statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA.

 

(e)          Rules
and Procedures. The Plan Administrator will establish rules and procedures, consistent with the Plan and with ERISA, as necessary
and appropriate in carrying out its responsibilities in reviewing benefit claims. The Plan Administrator may require a claimant
who wishes to submit additional information in connection with an appeal from the denial of benefits to do so at the claimant’s
own expense.

 

(f)          Exhaustion
of Remedies. No legal action for benefits under the Plan may be brought until the claimant (i) has submitted a written claim
for benefits in accordance with the procedures described by Section 9(a) above, (ii) has been notified by the Plan Administrator
that the claim is denied, (iii) has filed a written request for a review of the claim in accordance with the appeal procedure described
in Section 9(c) above, and (iv) has been notified that the Plan Administrator has denied the appeal. Notwithstanding the foregoing,
if the Plan Administrator does not respond to a Participant’s claim or appeal within the relevant time limits specified in
this Section 9, the Participant may bring legal action for benefits under the Plan pursuant to Section 502(a) of ERISA.

 

Section 10.          Basis
of Payments To And From Plan.

 

All benefits under the Plan shall be paid by
the Company. The Plan shall be unfunded, and benefits hereunder shall be paid only from the general assets of the Company.

 

Section 11.          Other
Plan Information.

 

(a)          Employer
and Plan Identification Numbers. The Employer Identification Number assigned to the Company (which is the “Plan Sponsor”
as that term is used in ERISA) by the Internal Revenue Service is 22-2816046. The Plan Number assigned to the Plan by the Plan
Sponsor pursuant to the instructions of the Internal Revenue Service is 550.

 

(b)          Ending
Date for Plan’s Fiscal Year. The date of the end of the fiscal year for the purpose of maintaining the Plan’s records
is December 31.

 

(c)          Agent
for the Service of Legal Process. The agent for the service of legal process with respect to the Plan is:

 

Novavax, Inc.

9920 Belward Campus Drive

Rockville, MD 20850

 

Attn: Vice President of Human Resources, the Chief Executive Officer,
or the Chairman of the Compensation Committee of the Board

 

    	 	10	 

     

    

 

(d)          Plan
Sponsor and Administrator. The “Plan Sponsor” is the Company and the “Plan Administrator” of the Plan
is the Compensation Committee of the Board, or its designee. Any correspondence should be
directed to:

 

Novavax, Inc.

9920 Belward Campus Drive

Rockville, MD 20850

 

Attn: Vice President of Human Resources, the Chief Executive Officer,
or the Chairman of the Compensation Committee of the Board

 

The Plan Sponsor’s and Plan Administrator’s
telephone number is [Telephone Number]. The Plan Administrator is the named fiduciary charged with the responsibility for
administering the Plan.

 

Section 12.         Statement
Of ERISA Rights.

 

Participants in this Plan (which is a welfare
benefit plan sponsored by Novavax, Inc.) are entitled to certain rights and protections under ERISA. If you are an Eligible Employee,
you are considered a participant in the Plan and, under ERISA, you are entitled to:

 

Receive Information About Your Plan and
Benefits

 

(a)          Examine,
without charge, at the Plan Administrator’s office and at other specified locations, such as worksites, all documents governing
the Plan and a copy of the latest annual report (Form 5500 Series) filed by the Plan, if required, with the U.S. Department of
Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration;

 

(b)          Obtain,
upon written request to the Plan Administrator, copies of documents governing the operation of the Plan and copies of the latest
annual report (Form 5500 Series), if required, and an updated (as necessary) Summary Plan Description. The Administrator may make
a reasonable charge for the copies; and

 

(c)          Receive
a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each participant with
a copy of this summary annual report.

 

Prudent Actions by Plan Fiduciaries

 

In addition to creating rights for Plan participants,
ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate
the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan
participants and beneficiaries. No one, including your employer, your union or any other person, may fire you or otherwise discriminate
against you in any way to prevent you from obtaining a Plan benefit or exercising your rights under ERISA.

 

    	 	11	 

     

    

 

Enforce Your Rights

 

If your claim for a Plan benefit is denied or
ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision
without charge, and to appeal any denial, all within certain time schedules.

 

Under ERISA, there are steps you can take to
enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan (note:
the Plan currently is not subject to the requirement of filing such an annual report) and do not receive them within 30 days, you
may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay
you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control
of the Administrator.

 

If you have a claim for benefits which is denied
or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the Plan’s
decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may
file suit in Federal court.

 

If it should happen that Plan fiduciaries misuse
the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department
of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay
these costs and fees, for example, if it finds your claim is frivolous.

 

Assistance with Your Questions

 

If you have any questions about the Plan, you
should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you
need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits
Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and
Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C.
20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications
hotline of the Employee Benefits Security Administration.

 

Section 13.         Execution.

 

To record the adoption of this Plan, as amended/and
restated, effective as of June 15, 2011, Novavax, Inc. has caused its duly authorized officer to execute the same this 16th day
of June, 2011.

 

	 	Novavax, Inc.
	 	 
	 	By:  	 /s/ John A. Herrmann III
	 	Title:  Corporate Secretary

 

    	 	12	 

     

    

 

EXHIBIT A

 

Under the Novavax, Inc.

 

Change In Control Severance Benefit Plan

 

The benefits payable under this Plan to an Eligible
Employee who qualifies for benefits under the terms of the Plan are as follows:

 

1.          All
Accrued Compensation and the Bonus Amount payable no later than 60 days after the later of the Termination Date or the effective
date of the Change of Control.

 

2.          In
a single payment, an amount in cash not to exceed twenty-four (24) months of such Eligible Employee’s Pay, payable no later
than 60 days after the later of the Termination Date or the effective date of the Change in Control.

 

3.          For
a period not to exceed twenty-four (24) months (the “Continuation Period”), as determined by the Company, the Company
shall, at its expense, continue on behalf of the Eligible Employee and the Employee’s dependents and beneficiaries the following
insurance benefits: any medical, dental, vision and hospitalization benefits provided to the Eligible Employee immediately prior
to the Termination Date; provided, however, that the Company’s obligation to provide continuation coverage shall arise under
the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), and shall apply only if the Eligible Employee
timely elects COBRA coverage and the Eligible Employee and his or her dependents are otherwise eligible for benefits under COBRA.
Accordingly, in the case of an Eligible Employee whose Termination Date precedes the effective date of the Change in Control and
who did not timely elect COBRA coverage prior to becoming eligible for benefits under this Plan, no reimbursements or payments
for health care continuation will be made by the Company under this Section (unless such Eligible Employee has received COBRA benefits
following their Termination Date, and/or is currently receiving those benefits at the time of a Change in Control, in which case
the Company will reimburse any past COBRA premium costs and will pay for future coverage) in accordance with the terms of this
Section for the period specified above.

 

The coverage and benefits (including deductibles
and costs) provided hereunder during the Continuation Period shall be no less favorable to the Eligible Employee and the Employee’s
dependents and beneficiaries, than the coverage and benefits made available immediately prior to the Termination Date. The Company’s
obligation hereunder with respect to the foregoing benefits shall be limited to the extent that the Eligible Employee obtains any
such benefits pursuant to a subsequent employer’s benefit plans, in which case the Company may reduce the coverage of any
benefits it is required to provide the Eligible Employee hereunder as long as the aggregate coverages and benefits of the combined
benefit plans are no less favorable to the Employee than the coverages and benefits required to be provided hereunder.

 

    	 	1	 

     

    

 

4.          With
respect to any stock option held by an Eligible Employee that is outstanding under any Company stock option or equity incentive
plan at the time the Employee becomes eligible for benefits under this Plan (either at the Termination Date or upon the Change
in Control if termination has already occurred), the Company agrees that, at the time of the Termination Date or Change in Control,
as applicable the Eligible Employee shall be given a period equal to his or her Severance
Benefit Period (except as noted below) following his or her Termination Date in which to exercise the options to the extent such
options are otherwise vested and exercisable as of the Termination Date under the terms of the applicable stock option agreement(s)
and plan(s), but provided that no exercise may occur later than the expiration date of the option as set forth is the applicable
option agreement or plan. Notwithstanding the above, this Section 4 shall not apply to stock options that have expired (including
after any post-termination exercise period) at the time an Eligible Employee becomes eligible
for benefits under the Plan. The foregoing agreement shall not apply to any stock options that already have a one year or
greater post-termination exercise period. The Eligible Employee acknowledges that, by agreeing to an offer to extend the exercise
period in this manner, his or her stock options may be converted from an incentive stock option into a non-statutory stock option.

 

5.          This
Section 5 applies only to stock options issued to an Eligible Employee under any Company stock option or equity incentive
plan after December 31, 2008 (“New Option Grants”). With respect to any New Option Grants that are outstanding
at the time an Eligible Employee becomes eligible for benefits under this Plan, the vesting
and exercisability of such New Option Grants shall be accelerated in full, and the Option shall be considered 100% vested,
as of the date the Eligible Employee becomes entitled to benefits hereunder. This provision shall not apply to any
stock option that contains a more favorable vesting provision under the applicable stock option agreement or any individually
negotiated agreement (such as 100% “single trigger” vesting upon a Change in Control). It is possible that an Eligible
Employee may terminate employment, and his or her stock options may have expired (without being exercised) before
a subsequent Change in Control transaction (although the Employee may still be entitled to benefits under this Plan in that
instance). In that case, no accelerated vesting shall occur under this provision as to an already expired stock option.

 

6.          The
Eligible Employees are:

 

	Title	 	Name	 	Severance Benefit Period
	CEO and President	 	 	 	24 months
	Senior Vice Presidents	 	 	 	12 months
	Vice Presidents	 	 	 	12 months

 

    	 	2Exhibit
10.36

 

NOVAVAX,
INC.

 

Common Stock

(par
value $0.01 per share)

 

AT MARKET
ISSUANCE SALES AGREEMENT

 

January 19,
2017

 

FBR Capital Markets & Co.

1300 North 17th Street

Suite 1400

Arlington, Virginia 22209

 

Ladies and Gentlemen:

 

Novavax,
Inc., a Delaware corporation (the “Company”), confirms its agreement (this “Agreement”)
with FBR Capital Markets & Co., a Delaware limited liability company (“FBR”), as follows:

  

1.             Issuance
and Sale of Shares. The Company agrees that, from time to time during the term of this Agreement,
on the terms and subject to the conditions set forth herein, it may issue and sell through FBR, up to $75,000,000 of shares (the
“Shares”) of the Company’s common stock, par value $0.01 per share (the “Common Stock”).
The issuance and sale of Shares through FBR will be effected pursuant to the Registration Statement (as defined below), although
nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement to sell securities.

 

The
Company has filed, in accordance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”),
and the rules and regulations thereunder (the “Securities Act Regulations”), with the Securities and Exchange
Commission (the “Commission”) a registration statement on Form S-3 (No. 333-215389), including a prospectus,
relating to the Shares (the “ATM Prospectus”), and which incorporates by reference documents that the Company
has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and the rules and regulations thereunder (the “Exchange Act Regulations”). The Company will,
if necessary, prepare a prospectus supplement specifically relating to the Shares to the ATM Prospectus. The Company will furnish
to FBR, for use by FBR, copies of the ATM Prospectus, as supplemented by any prospectus supplement, relating to the Shares. Except
where the context otherwise requires, such registration statement, as amended, including all documents filed as part thereof or
incorporated by reference therein, and including any information contained in a Prospectus (as defined below) subsequently filed
with the Commission pursuant to Rule 424(b) under the Securities Act Regulations or deemed to be a part of such registration statement
pursuant to Rule 430B of the Securities Act Regulations, as well as any comparable successor registration statement filed by the
Company for the sale of its Common Stock, including the Shares, collectively, is herein called the “Registration Statement,”
and the ATM Prospectus, including all documents incorporated therein by reference, included in the Registration Statement, as
it may be supplemented by any prospectus supplement, in the form in which such prospectus and/or prospectus supplement have most
recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act Regulations, together
with any then issued Issuer Free Writing Prospectus, is herein called the “Prospectus.” Any reference herein
to the Registration Statement, the ATM Prospectus or any amendment or supplement thereto shall be deemed to refer to and include
the documents incorporated by reference therein, and any reference herein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement or the ATM Prospectus, any prospectus supplement, the Prospectus
or any Issuer Free Writing Prospectus shall be deemed to refer to and include the filing after the execution hereof of any document
with the Commission deemed to be incorporated by reference therein (the “Incorporated Documents”).

 

     

     

    

For
purposes of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto
shall be deemed to include the most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and
Retrieval System (“EDGAR”).

 

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

 

    	 	2	 

     

    

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

 

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

 

5.
           Settlement. 

 

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

 

    	 	3	 

     

    

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

 

6.            Representations
and Warranties of the Company. The Company represents and warrants to, and agrees with, FBR that as of the date of
this Agreement, as of each Representation Date, unless such representation, warranty or agreement specifies a different time,
as the case may be, and except as may be disclosed in the Registration Statement, the Prospectus or a Disclosure Schedule delivered
in connection therewith:

 

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

 

    	 	4	 

     

    

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

 

(c)
            Conformity of Incorporated Documents with Securities
Act and Exchange Act. The Incorporated Documents, when such documents were or are filed with the Commission under the Exchange
Act conformed or will conform in all material aspects with the requirements of the Exchange Act.

 

(d)             Form
S-3 Eligibility. As of the close of trading on the Exchange on the Trading Day immediately prior to the date of this Agreement
and the Trading Day immediately prior to the date of each Placement Notice the Company satisfies the eligibility requirements
for use of Form S-3.

 

(e)             Financial
Statements. The financial statements (including the related notes thereto) of the Company and its consolidated subsidiaries
included or incorporated by reference in the Registration Statement and the Prospectus comply in all material respects with the
applicable requirements of the Securities Act and the Exchange Act, as applicable, and present fairly, in all material respects,
the financial position of the Company and its consolidated subsidiaries as of the dates indicated and the results of their operations
and the changes in their cash flows for the periods specified; such financial statements have been prepared in conformity with
generally accepted accounting principles in the United States (“GAAP”) applied on a consistent basis throughout
the periods covered thereby, and any supporting schedules included or incorporated by reference in the Registration Statement
present fairly, in all material respects, the information required to be stated therein; and the other financial information included
or incorporated by reference in the Registration Statement and the Prospectus has been derived from the accounting records of
the Company and its consolidated subsidiaries and presents fairly, in all material respects, the information shown thereby.

 

    	 	5	 

     

    

(f)              No
Material Adverse Change. Since the date of the most recent financial statements of the Company included or incorporated
by reference in the Registration Statement and the Prospectus, (i) there has not been any material change in the capital stock
(other than the issuance of shares of Common Stock upon exercise of stock options and warrants described as outstanding in, and
the grant of options and awards under existing equity incentive plans described in or incorporated by reference in, the Registration
Statement and the Prospectus), short-term debt or long-term debt of the Company or any of its subsidiaries, or any dividend or
distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock, or any material
adverse change, or any development involving a prospective material adverse change, in or affecting the business, properties,
management, financial position, stockholders’ equity, results of operations or prospects of the Company and its subsidiaries
taken as a whole; (ii) neither the Company nor any of its subsidiaries has entered into any transaction or agreement (whether
or not in the ordinary course of business) that is material to the Company and its subsidiaries taken as a whole or incurred any
liability or obligation, direct or contingent, that is material to the Company and its subsidiaries taken as a whole; and (iii)
neither the Company nor any of its subsidiaries has sustained any loss or interference with its business that is material to the
Company and its subsidiaries taken as a whole and that is either from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator or governmental
or regulatory authority, except in each case as otherwise disclosed in the Registration Statement and the Prospectus.

 

(g)             Organization
and Good Standing. The Company and each of its subsidiaries have been duly organized and are validly existing and in good
standing (where such concept is recognized) under the laws of their respective jurisdictions of organization, are duly qualified
to do business and are in good standing in each jurisdiction in which their respective ownership or lease of property or the conduct
of their respective businesses requires such qualification, and have all power and authority necessary to own or hold their respective
properties and to conduct the businesses in which they are engaged, except where the failure to be so qualified or in good standing
or have such power or authority would not, individually or in the aggregate, have a material adverse effect on the business, properties,
management, financial position, stockholders’ equity, results of operations or prospects of the Company and its subsidiaries
taken as a whole or on the performance by the Company of its obligations under this Agreement (a “Material Adverse Effect”).
The subsidiaries listed in Schedule 4 to this Agreement are the only significant subsidiaries of the Company.

 

(h)             Capitalization.
The Company has an authorized capitalization as set forth in the Registration Statement and the Prospectus under the heading
“Description of Our Capital Stock - General”; all the outstanding shares of capital stock of the Company have
been duly and validly authorized and issued and are fully paid and non-assessable and are not subject to any pre-emptive or similar
rights; except as described in or expressly contemplated by the Prospectus, there are no outstanding rights (including, without
limitation, pre-emptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any shares
of capital stock or other equity interest in the Company or any of its subsidiaries, or any contract, commitment, agreement, understanding
or arrangement of any kind relating to the issuance of any capital stock of the Company or any such subsidiary, any such convertible
or exchangeable securities or any such rights, warrants or options; the capital stock of the Company conforms in all material
respects to the description thereof contained in the Registration Statement and the Prospectus; and all the outstanding shares
of capital stock or other equity interests of each subsidiary owned, directly or indirectly, by the Company have been duly and
validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and
clear of any lien, charge, encumbrance, security interest, restriction on voting or transfer or any other claim of any third party.

 

    	 	6	 

     

    

(i)              Stock
Options. With respect to the stock options (the “Stock Options”) granted pursuant to the stock-based
compensation plans of the Company and its subsidiaries (the “Company Stock Plans”), (i) each Stock Option intended
to qualify as an “incentive stock option” under Section 422 of the Code so qualifies, (ii) each grant of a Stock Option
was duly authorized no later than the date on which the grant of such Stock Option was by its terms to be effective (the “Grant
Date”) by all necessary corporate action, including, as applicable, approval by the board of directors of the Company
(or a duly constituted and authorized committee thereof) and any required stockholder approval by the necessary number of votes
or written consents, and the award agreement governing such grant (if any) was duly executed and delivered by each party thereto,
(iii) each such grant was made in accordance with the terms of the Company Stock Plans, the Exchange Act and all other applicable
laws and regulatory rules or requirements, including the rules of the Nasdaq Global Select Market and any other exchange on which
Company securities are traded, and (iv) each such grant was properly accounted for in accordance with GAAP in the financial statements
(including the related notes) of the Company and disclosed in the Company's filings with the Commission in accordance with the
Exchange Act and all other applicable laws. The Company has not knowingly granted, and there is no and has been no policy or practice
of the Company of granting, Stock Options prior to, or otherwise coordinating the grant of Stock Options with, the release or
other public announcement of material information regarding the Company or its subsidiaries or their results of operations or
prospects.

 

(j)              Due
Authorization. The Company has the requisite right, power and authority to execute and deliver this Agreement and to perform
its obligations hereunder; and all action required to be taken for the due and proper authorization, execution and delivery by
it of this Agreement and the consummation by it of the transactions contemplated hereby have been duly and validly taken.

 

(k)             Sales
Agreement.  This Agreement has been duly authorized, executed and delivered by the Company.

 

(l)              The
Shares. The Shares to be issued and sold by the Company hereunder have been duly authorized and, when issued and delivered
and paid for as provided herein, will be duly and validly issued, will be fully paid and nonassessable and will conform to the
descriptions thereof in the Registration Statement and the Prospectus; and the issuance of the Shares is not subject to any preemptive
or similar rights.

 

    	 	7	 

     

    

(m)             No
Violation or Default. Neither the Company nor any of its subsidiaries is (i) in violation of its charter or by-laws
or similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a
party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or
any of its subsidiaries is subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of
any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (ii) and (iii) above, for any
such default or violation that would not, individually or in the aggregate, have a Material Adverse Effect.

 

(n)             No
Conflicts. The execution, delivery and performance by the Company of this Agreement, the issuance and sale of the Shares
and the consummation of the transactions contemplated by this Agreement or the Prospectus will not (i) conflict with or result
in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition
of any lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to, any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a
party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or
any of its subsidiaries is subject, (ii) result in any violation of the provisions of the charter or by-laws or similar organizational
documents of the Company or any of its subsidiaries or (iii) result in the violation of any law or statute or any judgment, order,
rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (i) and
(iii) above, for any such conflict, breach, violation, default, lien, charge or encumbrance that would not, individually or in
the aggregate, have a Material Adverse Effect.

 

(o)             No
Consents Required. No consent, approval, authorization, order, license, registration or qualification of or with any court
or arbitrator or governmental or regulatory authority is required for the execution, delivery and performance by the Company of
this Agreement, the issuance and sale of the Shares and the consummation of the transactions contemplated by this Agreement, except
for (i) the registration of the Shares under the Securities Act, (ii) such consents, approvals, authorizations, orders and registrations
or qualifications as may be required by the Financial Industry Regulatory Authority, Inc. (“FINRA”) and under
applicable state securities laws in connection with the purchase and distribution of the Shares by FBR and (iii) where the failure
to obtain or make such consents, approvals, authorizations, orders, licenses and registrations or qualifications would not, individually
or in the aggregate, materially and adversely affect the ability of the Company to perform its obligations under this Agreement
or have a Material Adverse Effect.

 

(p)             Legal
Proceedings. There are no legal, governmental or regulatory investigations, actions, suits or proceedings pending to which
the Company or any of its subsidiaries is or may be a party or to which any property of the Company or any of its subsidiaries
is or may be the subject that, individually or in the aggregate, if determined adversely to the Company or any of its subsidiaries,
could reasonably be expected to have a Material Adverse Effect; no such investigations, actions, suits or proceedings are threatened
or, to the knowledge of the Company, contemplated by any governmental or regulatory authority or threatened by others; and (i)
there are no current or pending legal, governmental or regulatory actions, suits or proceedings that are required under the Securities
Act to be described in the Registration Statement or the Prospectus that are not so described in the Registration Statement and
the Prospectus and (ii) there are no statutes, regulations or contracts or other documents that are required under the Securities
Act to be filed as exhibits to the Registration Statement or described in the Registration Statement or the Prospectus that are
not so filed as exhibits to the Registration Statement or described in the Registration Statement and the Prospectus.

 

    	 	8	 

     

    

(q)             Independent
Accountants. Ernst & Young LLP, who have been retained as the Company’s independent registered accounting firm beginning
with the fiscal year ending December 31, 2014 and Grant Thornton LLP, who have certified certain financial statements of the Company
and its subsidiaries prior to such fiscal year, is each an independent registered public accounting firm with respect to the Company
and its subsidiaries within the applicable rules and regulations adopted by the Commission and the Public Company Accounting Oversight
Board (United States) and as required by the Securities Act.

 

(r)              Title
to Real and Personal Property. The Company and its subsidiaries own or have valid rights to lease or otherwise use, all items
of real and personal property that are material to the respective businesses of the Company and its subsidiaries, in each case
free and clear of all liens, encumbrances, claims and defects and imperfections of title except those that (i) do not materially
interfere with the use made and proposed to be made of such property by the Company and its subsidiaries, (ii) are described in
the Registration Statement and the Prospectus or (iii) could not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect.

 

(s)             Title
to Intellectual Property. The Company owns, possesses, or can acquire on reasonable terms, all Intellectual Property necessary
for the conduct of the Company’s business as now conducted or as described in the Registration Statement and the Prospectus
to be conducted, except as such failure to own, possess, or acquire such rights would not result in a Material Adverse Effect.
Furthermore, (A) to the knowledge of the Company, there is no infringement, misappropriation or violation by third parties of
any such Intellectual Property, except as such infringement, misappropriation or violation would not result in a Material Adverse
Effect; (B) there is no pending or, to the knowledge of the Company, threatened, action, suit, proceeding or claim by others,
for which the Company has been served or notified, 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; (C) the Intellectual Property
owned by the Company, and to the knowledge of the Company, the Intellectual Property licensed to the Company has not been adjudged
invalid or unenforceable, in whole or in part, and there is no pending or threatened action, suit, proceeding or claim by others,
for which the Company has been served or notified, 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; (D) there is no pending or threatened
action, suit, proceeding or claim by others, for which the Company has been served or notified, that the Company infringes, misappropriates
or otherwise violates any Intellectual Property or other proprietary rights of others, the Company has not received any written
notice of such claim and the Company is unaware of any other fact which would form a reasonable basis for any such claim; and
(E) to the Company’s knowledge, no employee of the Company is in or has ever been in violation of any term of any employment
contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement,
nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to
such employee’s employment with the Company or actions undertaken by the employee while employed with the Company, except
as such violation would not result in a Material Adverse Effect. “Intellectual Property” shall mean all patents,
patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions,
trade secrets, domain names, technology, know-how and other intellectual property.

 

    	 	9	 

     

    

(t)              No
Undisclosed Relationships. No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries,
on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company or any of its subsidiaries,
on the other, that is required by the Securities Act to be described in the Registration Statement and the Prospectus and that
is not so described in such documents.

 

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

 

(v)             Investment
Company Act. The Company is not and, after giving effect to the offering and sale of the Shares and the application of the
proceeds thereof as described in the Registration Statement and the Prospectus, will not be required to register as an “investment
company” or an entity “controlled” by an “investment company” within the meaning of the Investment
Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Investment
Company Act”).

 

(w)            Taxes.
The Company and its subsidiaries have paid all federal, state, local and foreign taxes and filed all tax returns required
to be paid or filed through the date hereof, except those being contested in good faith and for which reserves in accordance with
GAAP have been provided and except as would not reasonably be expected to have a Material Adverse Effect; and except as otherwise
disclosed in the Registration Statement and the Prospectus or as would not reasonably be expected to have a Material Adverse Effect,
there is no tax deficiency that has been, or would reasonably be expected to be, asserted against the Company or any of its subsidiaries
or any of their respective properties or assets.

 

(x)              Licenses
and Permits. The Company holds, and is operating in compliance in all material respects with, all franchises, grants,
authorizations, licenses, permits, easements, consents, certificates and orders of any governmental authority or self-regulatory
body (including, without limitation, those administered by the Food and Drug Administration of the U.S. Department of Health and
Human Services (the “FDA”) or by any foreign, federal, state or local governmental or regulatory authority
performing functions similar to those performed by the FDA) required for the conduct of its business as currently conducted and
as contemplated in the Prospectus; and all such franchises, grants, authorizations, licenses, permits, easements, consents, certifications
and orders are valid and in full force and effect, except as would not have a Material Adverse Effect; and the Company has not
received notice of any revocation or modification of any such franchise, grant, authorization, license, permit, easement, consent,
certification or order or has reason to believe that any such franchise, grant, authorization, license, permit, easement, consent,
certification or order will not be renewed in the ordinary course, except such revocations, modifications and non-renewals as
would not have a Material Adverse Effect; and the Company is in compliance in all material respects with all applicable federal,
state, local and foreign laws, regulations, orders and decrees.

 

    	 	10	 

     

    

(y)             Clinical
Trials. The clinical trials conducted by or on behalf of or sponsored by the Company or in which the Company or its product
candidates have participated that are described in the Prospectus or the results of which are referred to in the Prospectus were
and, if still pending, are being conducted in all material respects in accordance with medical and scientific research procedures
that the Company reasonably believes are appropriate. The descriptions in the Prospectus of the results of such clinical trials
are accurate and fairly present the data derived from such clinical trials, and the Company has no knowledge of any studies or
tests performed by or on behalf of the Company the results of which are materially inconsistent with or otherwise materially call
into question the results described or referred to in the Prospectus. Except to the extent disclosed in the Prospectus, the Company
has not received any notices or other correspondence from the FDA or any other governmental agency requiring the termination,
suspension or material modification of any clinical trials that are described in the Prospectus or the results of which are referred
to in the Prospectus.

 

(z)              No
Labor Disputes. No labor disturbance by or dispute with employees of the Company or any of its subsidiaries exists or, to
the knowledge of the Company, is contemplated or threatened, and the Company is not aware of any existing or imminent labor disturbance
by, or dispute with, the employees of any of its or its subsidiaries’ principal suppliers, contractors or customers, except
as would not have a Material Adverse Effect.

 

(aa)            Compliance
with and Liability under Environmental Laws. To the best of its knowledge, the Company is not in violation of any statute,
any rule, regulation, decision or order of any governmental authority or any court, domestic or foreign, relating to the use,
disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human
exposure to hazardous or toxic substances (collectively, “Environmental Laws”), does not own or operate any
real property on which are present contaminants in concentrations requiring clean up under any Environmental Laws, is not liable
for any costs of clean up required under Environmental Laws at any off-site disposal site, and is not subject to any claim relating
to any Environmental Laws, which violation, contamination, liability or claim would individually or in the aggregate, have a Material
Adverse Effect; and the Company is not aware of any pending investigation that could reasonably be expected to lead to such a
claim.

 

(bb)           Compliance
with ERISA. No “prohibited transaction” (as defined in Section 406 of the Employee Retirement Income Security
Act of 1974, as amended, including the regulations and published interpretations thereunder (“ERISA”), or Section
4975 of the Internal Revenue Code of 1986, as amended from time to time (the “Code”)) or “accumulated
funding deficiency” (as defined in Section 302 of ERISA) or any of the events set forth in Section 4043(b) of ERISA (other
than events with respect to which the thirty (30)-day notice requirement under Section 4043 of ERISA has been waived) has occurred
or could reasonably be expected to occur with respect to any employee benefit plan of the Company or any of its subsidiaries which
could, singly or in the aggregate, have a Material Adverse Effect. Each employee benefit plan of the Company or any of its subsidiaries
is in compliance in all material respects with applicable law, including ERISA and the Code. The Company and its subsidiaries
have not incurred and could not reasonably be expected to incur liability under Title IV of ERISA with respect to the termination
of, or withdrawal from, any pension plan (as defined in ERISA). Each pension plan for which the Company or any of its subsidiaries
would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified, and nothing has occurred,
whether by action or by failure to act, which could, singly or in the aggregate, reasonably be expected to cause the loss of such
qualification.

 

    	 	11	 

     

    

 

(cc)           Disclosure
Controls. The Company and its subsidiaries maintain an effective system of “disclosure controls and procedures”
(as defined in Rule 13a-15(e) of the Exchange Act) that complies with the requirements of the Exchange Act and that has been designed
to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act
is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms, including
controls and procedures designed to ensure that such information is accumulated and communicated to the Company’s management
as appropriate to allow timely decisions regarding required disclosure. The Company and its subsidiaries have carried out evaluations
of the effectiveness of their disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act.

 

(dd)           Accounting
Controls. The Company maintains a system of “internal control over financial reporting” (as defined in Rule 13a-15(f)
of the Exchange Act) that complies with the requirements of the Exchange Act and have been designed by, or under the supervision
of, its principal executive and principal financial officers, or persons performing similar functions, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles, including, but not limited to, 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; (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 and (v) interactive data in eXtensible Business Reporting
Language included or incorporated by reference in the Registration Statement fairly presents the information called for in all
material respects and is prepared in accordance with the Commission’s rules and guidelines applicable thereto. Except as
disclosed in the Registration Statement and the Prospectus, there are no material weaknesses in the Company’s internal controls.
The Company’s auditors and the Audit Committee of the Board of Directors of the Company have been advised of: (i) all significant
deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which have adversely
affected or are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial
information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role
in the Company’s internal controls over financial reporting.

 

(ee)            eXtensible
Business Reporting Language. The interactive data in eXtensible Business Reporting Language included or incorporated by reference
in the Registration Statement fairly presents the information called for in all material respects and has been prepared in accordance
with the Commission’s rules and guidelines applicable thereto.

 

    	 	12	 

     

    

 

(ff)            Insurance.
The Company and its subsidiaries have insurance covering their respective properties, operations, personnel and businesses, including
business interruption insurance, which insurance is in amounts and insures against such losses and risks as are adequate to protect
the Company and its subsidiaries and their respective businesses; and neither the Company nor any of its subsidiaries has (i)
received notice from any insurer or agent of such insurer that capital improvements or other expenditures are required or necessary
to be made in order to continue such insurance or (ii) any 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 at reasonable cost from similar insurers as may be necessary
to continue its business.

 

(gg)           No
Unlawful Payments. Neither the Company nor any of its subsidiaries nor to the knowledge of the Company, any director, officer,
agent, affiliate, employee or other person associated with or acting on behalf of the Company or any of its subsidiaries has (i)
used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity;
(ii) made or taken an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment or benefit
to any foreign or domestic government official or employee, including of any government-owned or controlled entity or of a public
international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political
party or party official or candidate for political office; (iii) violated or is in violation of any provision of the Foreign Corrupt
Practices Act of 1977, as amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of
Foreign Public Officials in International Business Transactions, or committed an offence under the Bribery Act 2010 of the United
Kingdom or any other applicable anti-bribery or anti-corruption law; or (iv) made, offered, agreed, requested or taken an act
in furtherance of any unlawful bribe or other unlawful benefit, including, without limitation, any rebate, payoff, influence payment,
kickback or other unlawful or improper payment or benefit. The Company and its subsidiaries have instituted, maintain and enforce,
and will continue to maintain and enforce policies and procedures designed to promote and ensure compliance with all applicable
anti-bribery and anti-corruption laws.

 

(hh)           Compliance
with Anti-Money Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times
in compliance with applicable financial recordkeeping and reporting requirements, including those of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the applicable money laundering statutes of all jurisdictions where the Company
or any of its subsidiaries conducts business, the rules and regulations thereunder and any related or similar rules, regulations
or guidelines issued, administered or enforced by any governmental agency (collectively, the “Anti-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 or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company,
threatened.

 

    	 	13	 

     

    

 

(ii)             No
Conflicts with Sanctions Laws. Neither the Company nor any of its subsidiaries nor to the knowledge of the Company,
any director, officer, agent, affiliate, employee or other person associated with or acting on behalf of the Company or any of
its subsidiaries is currently the subject or the target of any sanctions administered or enforced by the U.S. government, (including,
without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) or
the U.S. Department of State and including, without limitation, the designation as a “specially designated national”
or “blocked person”), the United Nations Security Council (“UNSC”), the European Union, Her Majesty’s
Treasury (“HMT”) or other relevant sanctions authority (collectively, “Sanctions”), nor
is the Company, any of its subsidiaries located, organized or resident in a country or territory that is the subject or target
of Sanctions, including, without limitation, the Crimea region of Ukraine, Cuba, Iran, North Korea, Sudan and Syria (each, a “Sanctioned
Country”); and the Company will not directly or indirectly use the proceeds of the offering of the Shares hereunder,
or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity
(i) to fund or facilitate any activities of or business with any person that, at the time of such funding or facilitation, is
the subject or target of Sanctions, (ii) to fund or facilitate any activities of or business in any Sanctioned Country or (iii)
in any other manner that will result in a violation by any person (including any person participating in the transaction, whether
as underwriter, advisor, investor or otherwise) of Sanctions. For the past five years, the Company and its subsidiaries have not
knowingly engaged in and are not now knowingly engaged in any dealings or transactions with any person that at the time of the
dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.

 

(jj)             No
Restrictions on Subsidiaries. No subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement
or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution
on such subsidiary’s capital stock, from repaying to the Company any loans or advances to such subsidiary from the Company
or from transferring any of such subsidiary’s properties or assets to the Company or any other subsidiary of the Company.

 

(kk)           No
Broker’s Fees. Neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding
with any person (other than this Agreement) that would give rise to a valid claim against the Company or any of its subsidiaries
or FBR for a brokerage commission, finder’s fee or like payment in connection with the offering and sale of the Shares.

 

(ll)             No
Registration Rights. Except those rights that have been waived or satisfied, no person has the right to require the Company
or any of its subsidiaries to register any securities for sale under the Securities Act by reason of the filing of the Registration
Statement with the Commission or the issuance and sale of the Shares.

 

(mm)         No
Stabilization. The Company has not taken, directly or indirectly, any action designed to or that could reasonably be expected
to cause or result in any stabilization or manipulation of the price of the Shares.

 

(nn)          Margin
Rules. The application of the proceeds received by the Company from the issuance, sale and delivery of the Shares as described
in the Registration Statement and the Prospectus will not violate Regulation T, U or X of the Board of Governors of the Federal
Reserve System or any other regulation of such Board of Governors.

 

(oo)          Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of
the Exchange Act) included in the Registration Statement or the Prospectus has been made or reaffirmed without a reasonable basis
or has been disclosed other than in good faith.

 

    	 	14	 

     

    

  

(pp)          Statistical
and Market Data. Nothing has come to the attention of the Company that has caused the Company to believe that the statistical
and market-related data included or incorporated by reference in the Registration Statement and the Prospectus is not based on
or derived from sources that are reliable and accurate in all material respects.

 

(qq)          Sarbanes-Oxley
Act. There is and has been no failure on the part of the Company or, to the knowledge of the Company, any of the Company’s
directors or officers, in their capacities as such, to comply with any applicable provision of the Sarbanes-Oxley Act of 2002,
as amended, and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”), including
Section 402 related to loans and Sections 302 and 906 related to certifications.

 

(rr)            Status
under the Securities Act. At the time of filing the Registration Statement and any post-effective amendment thereto, at the
earliest time thereafter that the Company or any offering participant made a bona fide offer (within the meaning of Rule
164(h)(2) under the Securities Act) of the Shares and at the date hereof, the Company was not and is not an “ineligible
issuer,” and is a well-known seasoned issuer, in each case as defined in Rule 405 under the Securities Act. The Company
has paid the registration fee for this offering pursuant to Rule 456(b)(1) under the Securities Act or will pay such fee within
the time period required by such rule (without giving effect to the proviso therein) and in any event prior to the Closing Date.

 

(ss)           No
Ratings. There are no debt securities or preferred stock issued or guaranteed by the Company or any of its subsidiaries
that are rated by a “nationally recognized statistical rating organization”, as such term is defined in Section 3(a)(62)
of the Exchange Act.

 

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

 

(a)
            Registration Statement Amendments. After the date
of this Agreement and during any period in which a Prospectus relating to any Placement Shares is required to be delivered by
FBR under the Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rule 172 under the
Securities Act) (the “Prospectus Delivery Period”), (i) the Company will notify FBR promptly of the time when
any subsequent amendment to the Registration Statement, other than documents incorporated by reference or amendments not related
to any Placement, has been filed with the Commission and/or has become effective or any subsequent supplement to the Prospectus,
other than documents incorporated by reference, has been filed and of any request by the Commission for any amendment or supplement
to the Registration Statement or Prospectus related to any Placement or for additional information related to any Placement, (ii)
the Company will prepare and file with the Commission, promptly upon FBR’s request, any amendments or supplements to the
Registration Statement or Prospectus that, in FBR’s reasonable opinion, may be necessary or advisable in connection with
the distribution of the Placement Shares by FBR (provided, however, that the failure of FBR to make such request shall not relieve
the Company of any obligation or liability hereunder, or affect FBR’s right to rely on the representations and warranties
made by the Company in this Agreement and provided, further, that the only remedy FBR shall have with respect to the failure to
make such filing shall be to cease making sales under this Agreement until such amendment or supplement is filed); (iii) the Company
will not file any amendment or supplement to the Registration Statement or Prospectus relating to the Placement Shares unless
a copy thereof has been submitted to FBR within a reasonable period of time before the filing and FBR has not reasonably objected
thereto (provided, however, (A) that the failure of FBR to make such objection shall not relieve the Company of any obligation
or liability hereunder, or affect FBR’s right to rely on the representations and warranties made by the Company in this
Agreement and (B) that the Company has no obligation to provide FBR any advance copy of such filing or to provide FBR an opportunity
to object to such filing if such filing does not name FBR or does not relate to the transactions contemplated hereunder; provided,
further, that the only remedy FBR shall have with respect to the failure by the Company to obtain such consent shall be to cease
making sales under this Agreement) and the Company will furnish to FBR at the time of filing thereof a copy of any document that
upon filing is deemed to be incorporated by reference into the Registration Statement or Prospectus, except for those documents
available via EDGAR; and (iv) the Company will cause each amendment or supplement to the Prospectus to be filed with the Commission
as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or, in the case of any document to be incorporated
therein by reference, to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed
(the determination to file or not file any amendment or supplement with the Commission under this Section 7(a), based on the Company’s
reasonable opinion or reasonable objections, shall be made exclusively by the Company).

 

    	 	15	 

     

    

(b)
           Notice of Commission Stop Orders.  The Company will advise
FBR, promptly after it receives notice or obtains knowledge thereof, of the issuance or threatened issuance by the Commission
of any stop order suspending the effectiveness of the Registration Statement, of the suspension of the qualification of the Placement
Shares for offering or sale in any jurisdiction, or of the initiation or threatening of any proceeding for any such purpose. The
Company will advise FBR promptly after it receives any request by the Commission for any additional information related to the
offering of the Placement Shares.

 

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

 

    	 	16	 

     

    

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

 

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

 

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

 

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

 

    	 	17	 

     

    

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

 

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

 

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

 

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

 

(l)              Required
Filings Relating to Placement of Placement Shares. The Company agrees that on such dates as the Securities Act shall require,
the Company will file a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b) under the Securities
Act (each and every filing under Rule 424(b), a “Filing Date”), which prospectus supplement will set forth
the amount of Placement Shares to be sold through FBR and the compensation payable by the Company to FBR with respect to such
Placement Shares.

    	 	18	 

     

    

(m)
           Representation Dates; Certificate.
During the term of this Agreement, on the date of the first Placement Notice given hereunder and within 7 days of each time the
Company (i) amends or supplements the Registration Statement or the Prospectus relating to the Placement Shares (other than a
prospectus supplement relating solely to an offering of securities other than the Placement Shares) by means of a post-effective
amendment, sticker, or supplement but not by means of incorporation of documents by reference into the Registration Statement
or the Prospectus relating to the Placement Shares; (ii) files an annual report on Form 10-K under the Exchange Act (including
any Form 10-K/A containing amended financial information or a material amendment to a previously filed Form 10-K); (iii) files
its quarterly reports on Form 10-Q under the Exchange Act; or (iv) files a current report on Form 8-K containing amended financial
information (other than an earnings release, to “furnish” information pursuant to Items 2.02 or 7.01 of Form 8-K or
to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as discontinued
operations in accordance with FASB Accounting Standards Codification No. 360) under the Exchange Act (each date of filing of one
or more of the documents referred to in clauses (i) through (iv) shall be a “Representation Date”). The Company
shall furnish FBR with a certificate, in the form attached hereto as Exhibit 7(m). The requirement to provide a certificate under
this Section 7(m) shall be waived for any Representation Date occurring at a time at which no Placement Notice is pending, which
waiver shall continue until the earlier to occur of the date the Company next delivers a Placement Notice hereunder (which for
such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date; provided, however,
that such waiver shall not apply for any Representation Date on which the Company files its annual report on Form 10-K. Notwithstanding
the foregoing, if the Company subsequently decides to sell Placement Shares following a Representation Date when the Company relied
on such waiver and did not provide FBR with a certificate under this Section 7(m), then before the Company delivers the Placement
Notice or FBR sells any Placement Shares, the Company shall provide FBR with a certificate, in the form attached hereto as Exhibit
7(m), dated the date of the Placement Notice.

 

(n)             Legal
Opinion. The Company shall, within ten days following the date of this Agreement (but, in no event, later than the date of
the initial Placement Notice given hereunder), cause to be furnished to FBR a written opinion of Ropes & Gray LLP (“Company
Counsel”), in form and substance reasonably satisfactory to FBR. Thereafter, within ten days of the filing by the Company
of an annual report on Form 10-K under the Exchange Act, the Company shall cause to be furnished to FBR a negative assurance letter
of Company Counsel, in form and substance reasonably satisfactory to FBR, modified, as necessary, to relate to the Registration
Statement and the Prospectus as then amended or supplemented.

 

(o)             Comfort
Letter. The Company shall, within ten (10) days following the date of this Agreement
(but, in no event, later than the date of the initial Placement Notice given hereunder) and thereafter within ten days of the
filing by the Company of an annual report on Form 10-K under the Exchange Act the Company shall cause its independent accountants
to furnish to FBR a letter, dated as of such date, confirming that they are independent accountants within the meaning of the
Securities Act and the Exchange Act and the respective applicable published rules and regulations thereunder, including without
limitation the rules of the Public Company Accounting Oversight Board and Rule 2-01 of Regulation S-X (the “Comfort Letter”);
provided, that if requested by FBR, the Company shall cause a Comfort Letter to be furnished to FBR within ten Trading Days of
the date of occurrence of any material transaction or event that would affect the Company’s financial statements, including
the restatement of the Company’s financial statements. The Comfort Letter from the Company’s independent public accounting
firm shall be in a form and substance satisfactory to FBR, (i) confirming that they are an independent public accounting firm
within the meaning of the Securities Act and the PCAOB, (ii) stating, as of such date, the conclusions and findings of such firm
with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters”
to underwriters in connection with registered public offerings (the first such letter, the “Initial Comfort Letter”)
and (iii) updating the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter
had it been given on such date and modified as necessary to relate to the Registration Statement and the Prospectus, as amended
and supplemented to the date of such letter.

  

    	 	19	 

     

    

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

 

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

 

(r)              No
Offer to Sell. Other than an Issuer Free Writing Prospectus approved in advance
by the Company and FBR in its capacity as agent hereunder, neither FBR nor the Company (including its agents and representatives,
other than FBR in its capacity as such) will directly or indirectly, make, use, prepare, authorize, approve or refer to any Issuer
Free Writing Prospectus relating to the Placement Shares to be sold by FBR as agent hereunder.

 

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

 

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

 

    	 	20	 

     

    

(a)             Registration
Statement Effective. The Registration Statement shall have become effective and
shall be available for the sale of all Placement Shares contemplated to be issued by any Placement Notice.

 

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

 

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

 

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

 

    	 	21	 

     

    

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

 

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

 

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

 

(h)            Secretary’s
Certificate. On or prior to the first Representation Date, FBR shall have received a certificate, signed on behalf of the
Company by its corporate secretary, in form and substance satisfactory to FBR and its counsel.

 

(i)             No
Suspension. Trading in the Common Stock shall not have been suspended on the Exchange.

 

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

 

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

 

(l)             Approval
for Listing. The Company shall have filed a notice of listing of additional shares with the
Exchange for the Placement Shares at, or prior to, the issuance of any Placement Notice.

 

10.          Indemnification
and Contribution.

 

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

 

    	 	22	 

     

    

(b)            FBR
Indemnification. FBR agrees to indemnify and hold harmless the Company and its
directors and each officer of the Company who signed the Registration Statement, and each person, if any, who (i) controls the
Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or (ii) is controlled by or is
under common control with the Company (a “Company Affiliate”) from and against any and all losses, claims,
liabilities, expenses and damages (including, but not limited to, any and all reasonable investigative, legal and other expenses
incurred in connection with, and any and all amounts paid in settlement (in accordance with Section 10(c)) of, any action, suit
or proceeding between any of the indemnified parties and any indemnifying parties or between any indemnified party and any third
party, or otherwise, or any claim asserted), as and when incurred, but only to the extent that such loss, claim, liability, expense
or damage arises from the sale of the Placement Shares pursuant to this Agreement and is caused directly or indirectly by an untrue
statement or omission, or alleged untrue statement or omission, made in reliance upon and in conformity with written information
furnished to the Company by FBR expressly for use therein.

 

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

 

    	 	23	 

     

    

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

 

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

 

    	 	24	 

     

    

12.          Termination. 

 

(a)            FBR
shall have the right by giving notice as hereinafter specified at any time to terminate this Agreement if (i) any Material Adverse
Effect, or any development that has actually occurred and that is reasonably expected to cause a Material Adverse Effect has occurred
that, in the reasonable judgment of FBR, may materially impair the ability of FBR to sell the Placement Shares hereunder, (ii)
the Company shall have failed, refused or been unable to perform any agreement on its part to be performed hereunder; provided,
however, in the case of any failure of the Company to deliver (or cause another person to deliver) any certification, opinion,
or letter required under Sections 7(m), 7(n), or 7(o), FBR’s right to terminate shall not arise unless such failure to deliver
(or cause to be delivered) continues for more than thirty days from the date such delivery was required; or (iii) any other condition
of FBR’s obligations hereunder is not fulfilled, or (iv), any suspension or limitation of trading in the Placement Shares
or in securities generally on the Exchange shall have occurred. Any such termination shall be without liability of any party to
any other party except that the provisions of Section 7(g) (Expenses), Section 10 (Indemnification and Contribution), Section
11 (Representations and Agreements to Survive Delivery), Section 17 (Applicable Law; Consent to Jurisdiction) and Section 18 (Waiver
of Jury Trial) hereof shall remain in full force and effect notwithstanding such termination. If FBR elects to terminate this
Agreement as provided in this Section 12(a), FBR shall provide the required notice as specified in Section 13 (Notices).

 

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

 

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

 

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

 

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

 

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

 

    	 	25	 

     

    

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

 

FBR Capital Markets &
Co.

1300 North 17th Street

Suite 1400

Arlington, Virginia 22209

Attention:     Legal Department

Telephone:    (703) 312-9500

Email:          atmdesk@fbr.com

 

with a copy to:

Duane Morris LLP

One Riverfront Plaza

1037 Raymond Boulevard, Suite 1800

Newark, New Jersey 07102-5429

Attention:    Dean M.
Colucci

Telephone:   (973) 424-2020

Email:          dmcolucci@duanemorris.com

 

and if to the Company, shall
be delivered to:

 

Novavax, Inc.

9920 Belward Campus Drive

Rockville, MD 20850

Attention:    Barclay
A. Phillips

Facsimile:    (240)
268-2115

Email:         bphillips@Novavax.com

 

with a copy to:

 

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199-3600

Attention:    Paul M.
Kinsella

Facsimile:    (617)
235-0822

Email:         paul.kinsella@ropesgray.com

 

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

 

    	 	26	 

     

    

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

 

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

 

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

 

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

 

    	 	27	 

     

    

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

 

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

 

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

 

[Remainder
of Page Intentionally Blank] 

    	 	28	 

     

    

  

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

 

		Very
truly yours,

 

	 	NOVAVAX, INC.
	 	 	 
	 	By:	/s/ Barclay A. Phillips
	 	Name:	Barclay A. Phillips
	 	Title:	Senior Vice President, Chief Financial Officer and Treasurer

  

		ACCEPTED
as of the date first-above written:

 

	 
	FBR CAPITAL MARKETS & CO.
	 	 	 
	 	By:	/s/ Patrice McNicoll
	 	Name:	Patrice McNicoll
	 	Title:	Co-Head of Capital Markets

 

    	 	29	 

     

    

SCHEDULE
1

 

FORM
OF PLACEMENT NOTICE

 

	From:	Novavax, Inc.
	 	 
	To:	FBR Capital Markets & Co.
	 	 
	Attention:	[•]
	 	 
	Subject:	At Market Issuance—Placement Notice

 

Gentlemen:

 

Pursuant
to the terms and subject to the conditions contained in the At Market Issuance Sales Agreement between Novavax, Inc. (the “Company”),
and FBR Capital Markets & Co. (“FBR”) dated January 19, 2017, the Company hereby requests that FBR sell
up to ____________ shares of the Company’s common stock, par value $.01 per share, at a minimum market price of $_______
per share, during the time period beginning [ month, day, time ] and ending [ month, day, time ].

 

    	 	S-1-1	 

     

    

SCHEDULE
2

Compensation

 

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

 

    	 	2	 

     

    

  

SCHEDULE
3

 ________________________

 

Notice
Parties

________________________

 

	The Company	 	 
	 	 	 
	Stanley C. Erck	 	serck@novavax.com
	 	 	 
	Barclay A. Phillips	 	bphillips@Novavax.com
	 	 	 
	John A. Herrmann III	 	jherrmann@Novavax.com
	 	 	 
	FBR	 	 
	 	 	 
	Matthew Feinberg	 	mfeinberg@fbr.com
	 	 	 
	Ryan Loforte	 	rloforte@fbr.com
	 	 	 
	Patrice McNicoll	 	pmcnicoll@fbr.com
	 	 	 
	Keith Pompliano	 	kpompliano@fbr.com
	 	 	 

with a copy to atmdesk@fbr.com

 

    	 	3	 

     

    

 

SCHEDULE
4

 ________________________

 

Subsidiaries

________________________

 

    	 	4	 

     

    

  

EXHIBIT
7(m)

 

Form of
Representation Date Certificate

 

_________________,
20__

 

This
Officer’s Certificate (this “Certificate”) is executed and delivered in connection with Section 7(m)
of the At Market Issuance Sales Agreement (the “Agreement”), dated January 19, 2017, and entered into between
Novavax, Inc. (the “Company”) and FBR Capital Markets & Co. (“FBR”). All capitalized
terms used but not defined herein shall have the meanings given to such terms in the Agreement

 

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

 

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

 

2.
Each of the representations and warranties of the Company contained in the Agreement are, except for those representations and
warranties that speak solely as of a specific date, are true and correct in all material respects, as of the date of this Certificate.

 

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

 

4.
No stop order suspending the effectiveness of the Registration Statement or of any part thereof has been issued, and no proceedings
for that purpose have been instituted or are pending or threatened by any securities or other governmental authority (including,
without limitation, the Commission).

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	5	 

     

    

  

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

 

	 	NOVAVAX, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}]]