Document:

Exhibit 10.1

 

SHARE PURCHASE AGREEMENT

 

This Share Purchase Agreement (this “Agreement”)
is dated as of January 9, 2015 by and among Capricor Therapeutics, Inc., a
Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each,
including its successors and assigns, a “Purchaser” and, collectively, the “Purchasers”).

 

RECITALS

 

A.          The
Company and each Purchaser is executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule
506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission
(the “Commission”) under the Securities Act.

 

B.           Each
Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated
in this Agreement, that aggregate number of shares of common stock of the Company, par value $0.001 per share (the “Common
Stock”), set forth below such Purchaser’s name on the signature page of this Agreement (which aggregate amount
for all Purchasers together shall be 2,839,045 shares of Common Stock and shall be collectively referred to herein as the “Shares”).

 

C.           The
Company has engaged SC&H Capital to act as a placement agent (together with any other placement agents engaged by the Company,
the “Placement Agent”) for the offering of the Shares on a “best efforts” basis.

 

D.           Contemporaneously
with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement,
substantially in the form attached hereto as Exhibit A (the “Registration
Rights Agreement”), pursuant to which, among other things, the Company will agree to provide certain registration
rights with respect to the Shares under the Securities Act and the rules and regulations promulgated thereunder and applicable
state securities laws.

 

NOW, THEREFORE, IN CONSIDERATION of the
mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and each Purchaser hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1.                       
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following
terms shall have the meanings indicated in this Section 1.1:

 

    	 

    	 

    

 

“Accredited Investor Questionnaire”
means the Accredited Investor Questionnaire set forth as Exhibit B hereto.

 

“Action” means any
action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation
pending or, to the Company’s Knowledge, threatened against the Company, any of its properties, or any officer, director or
employee of the Company acting in his or her capacity as an officer, director or employee before or by any federal, state, county,
local or foreign court, arbitrator, governmental or administrative agency, regulatory authority, stock market, stock exchange or
trading facility.

 

“Affiliate” means,
with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled
by or is under common control with such Person; as such terms are used in and construed under Rule 405 under the Securities Act.
With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary basis by the same investment
manager as such Purchaser will be deemed to be an Affiliate of such Purchaser.

 

“Agreement” has the
meaning set forth in the Preamble.

 

“Board of Directors”
means the board of directors of the Company.

 

“Book Entry Confirmation”
has the meaning set forth in Section 2.2(a)(ii).

 

“Business Day” means
any day except Saturday, Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.

 

“Buy-In” has the meaning
set forth in Section 4.1(f).

 

“Buy-In Price” has
the meaning set forth in Section 4.1(f).

 

“Closing” means the
closing of the purchase and sale of the Shares on the Closing Date pursuant to Section 2.1.

 

“Closing Bid Price”
means, for any security as of any date, (a) the last reported closing bid price per share for such security on the Principal
Trading Market, as reported by Bloomberg Financial Markets, or (b) if the Principal Trading Market begins to operate on an
extended hours basis and does not designate the closing bid price then the last bid price of such security prior to 4:00 p.m.,
New York City time, as reported by Bloomberg Financial Markets, or (c) if the foregoing do not apply, the last closing price
of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg Financial
Markets, or (d) if no closing bid price is reported for such security by Bloomberg Financial Markets, the average of the bid
prices of any market makers for such security as reported on OTC Pink (also known as the “pink sheets”) by the OTCMarkets.
If the Closing Bid Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid
Price of such security on such date shall be the fair market value as mutually determined by the Company and the holder of such
security. If the Company and such holder are unable to agree upon the fair market value of such security, then the Board of Directors
shall use its good faith judgment to determine the fair market value. The Board of Directors’ determination shall be binding
on all parties absent demonstrable error. All such determinations shall be appropriately adjusted for any stock dividend, stock
split, stock combination or other similar transaction during the applicable calculation period.

 

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“Closing Date” means
the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and
all of the conditions set forth in Sections 2.2, 5.1 and 5.2 hereof are satisfied
or waived, as the case may be, or such other date as the parties may agree.

 

“Commission” has the
meaning set forth in the Recitals.

 

“Common Stock” has
the meaning set forth in the Recitals, and also includes any other class of securities into which the Common Stock may hereafter
be reclassified or changed.

 

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

 

“Company” has the
meaning set forth in the Preamble.

 

“Company Counsel”
means Paul Hastings LLP, with offices located at 1117 S. California Avenue, Palo Alto, California 94304.

 

“Company Deliverables”
has the meaning set forth in Section 2.2(a).

 

“Company’s Knowledge”
means, with respect to any statement made to the Company’s Knowledge, that the statement is based upon the actual knowledge
of Linda Marbán, Ph.D., Chief Executive Officer of the Company.

 

“Deadline Date” has
the meaning set forth in Section 4.1(f).

 

“Disclosure Materials”
has the meaning set forth in Section 3.1(h).

 

“Disclosure Schedules”
has the meaning set forth in Section 3.1.

 

“DTC” has the meaning
set forth in Section 4.1(c).

 

“Effective Date” means
the date on which the Initial Registration Statement (as defined in the Registration Rights Agreement) required by Section 2(a) of
the Registration Rights Agreement is first declared effective by the Commission.

 

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

 

“Fund” has the meaning
set forth in Section 3.2(k).

 

“GAAP” means U.S.
generally accepted accounting principles, as applied by the Company.

 

“Indemnified Person”
has the meaning set forth in Section 4.7.

 

“Intellectual Property Rights”
has the meaning set forth in Section 3.1(o).

 

“Irrevocable Transfer Agent Instructions”
has the meaning set forth in Section 4.1(d).

 

“Lien” means any lien,
charge, deed of trust, claim, encumbrance, security interest, priority, right or preferential arrangement of any kind or nature
whatsoever (excluding preferred stock and equity related preferences) or other restrictions of any kind.

 

“Material Adverse Effect”
means a material adverse effect on the results of operations, assets (including intangible assets), liabilities, properties, prospects,
business or financial condition of the Company and the Subsidiaries, taken as a whole, except that any of the following, either
alone or in combination, shall not be deemed a Material Adverse Effect: (a) effects caused by changes or circumstances affecting
general market conditions in the U.S. economy or which are generally applicable to the industry in which the Company operates,
provided that such effects are not borne disproportionately by the Company; (b) effects caused by earthquakes, hostilities,
acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of
war, sabotage or terrorism or military actions existing as of the date hereof; (c) effects resulting from or relating to the
announcement or disclosure of the sale of the Shares or other transactions contemplated by this Agreement; (d) effects caused by
a failure to meet projections; or (e) effects caused by any event, occurrence or condition resulting directly from or directly
relating to the taking of any action as required in accordance with this Agreement.

 

“Material Contract”
means any contract of the Company that has been filed or was required to have been filed as an exhibit to the SEC Reports pursuant
to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

 

“Outside Date” means
the 10th Business Day following the date of this Agreement.

 

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

 

“Placement Agent”
has the meaning set forth in the Recitals.

 

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“Press Release” has
the meaning set forth in Section 4.4.

 

“Principal Trading Market”
means the Trading Market on which the Common Stock is primarily listed and quoted for trading, which, as of the date of this Agreement
and the Closing Date, shall be the OTCQB Market.

 

“Proceeding” means
an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such
as a deposition), whether commenced or threatened.

 

“Purchase Price” means
$3.5230 for each share of Common Stock to be purchased hereunder, subject to adjustment for reverse and forward stock splits, stock
dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement and
before the Closing Date.

 

“Purchaser” or “Purchasers”
has the meaning set forth in the Recitals.

 

“Purchaser Deliverables”
has the meaning set forth in Section 2.2(b).

 

“Purchaser Party”
has the meaning set forth in Section 4.7.

 

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

 

“Registration Statement”
means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale
by the Purchasers of the Registrable Securities (as defined in the Registration Rights Agreement).

 

“Regulation D” has
the meaning set forth in the Recitals.

 

“Required Approvals”
has the meaning set forth in Section 3.1(e).

 

“Rule 144” means Rule
144 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such rule.

 

“SEC Reports” has
the meaning set forth in Section 3.1(h).

 

“Secretary’s Certificate”
has the meaning set forth in Section 2.2(a)(vi).

 

“Securities Act” has
the meaning set forth in the Recitals.

 

“Shares” has the
meaning set forth in the Recitals.

 

“Short Sales” has
the meaning set forth in Section 3.2(k).

 

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“Subscription Amount”
means, with respect to each Purchaser, the aggregate amount to be paid for the Shares purchased hereunder as indicated on such
Purchaser’s signature page to this Agreement next to the heading “Aggregate Purchase Price (Subscription Amount)”
in United States dollars and in immediately available funds.

 

“Subsidiary” means
any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, include any corporation,
partnership, limited liability company, joint venture or other legal entity, formed or acquired by the Company after the date hereof, provided
that the Company owns, directly or indirectly, more than 50% of the stock or other voting equity interests of such corporation
or other legal entity.

 

“Trading Day” means
(a) a day on which the Common Stock is listed or quoted and traded on its Principal Trading Market (other than the OTCMarkets),
or (b) if the Common Stock is not listed on a Trading Market (other than the OTCMarkets), a day on which the Common Stock
is traded in the over-the-counter market, as reported by the OTCMarkets (or any similar organization or agency succeeding to its
functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth
in (a) or (b) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market” means
whichever of the NYSE MKT LLC, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or the OTCMarkets
on which the Common Stock is listed or quoted for trading on the date in question.

 

“Transaction Documents”
means this Agreement, the schedules and exhibits attached hereto, the Registration Rights Agreement, the Irrevocable Transfer Agent
Instructions, the Accredited Investor Questionnaires and any other documents or agreements explicitly contemplated hereunder.

 

“Transfer Agent” means
American Stock Transfer & Trust Company, LLC, the current transfer agent of the Company, with a mailing address of 6201 15th
Avenue, Brooklyn, NY 11219, and a telephone number of (718) 921-8200, or any successor transfer agent for the Company.

 

ARTICLE II

PURCHASE AND SALE

 

		2.1.	Closing.

 

(a)               
Amount. Subject to the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue and sell
to each Purchaser, and each Purchaser shall, severally and not jointly, purchase from the Company, that number of Shares equal
to the quotient resulting from dividing (i) the Subscription Amount for such Purchaser by (ii) the Purchase Price, rounded down
to the nearest whole Share.

 

(b)              
Closing. The Closing of the purchase and sale of the Shares shall take place at the offices of Paul Hastings LLP, located
at 1117 S. California Avenue, Palo Alto, California 94304 at 10:00 a.m. local time on the Closing Date or at such other location(s)
or remotely by facsimile transmission or other electronic means as the parties may mutually agree.

 

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(c)               
Form of Payment. Except as may otherwise be agreed
to among the Company and one or more of the Purchasers, on or prior to the Business Day immediately prior to the Closing Date,
each Purchaser shall wire its Subscription Amount, in United States dollars and in immediately available funds, in accordance with
the wire instructions provided by the Company to such Purchaser prior to the Closing. Promptly following the Closing Date, but
not later than five business days thereafter, upon receipt of the Subscription Amounts, the Company shall (i) pay to the Placement
Agent its respective fees, (ii) reimburse the Placement Agent for any reimbursable expenses payable to the Placement Agent within
30 days after receipt of an itemized invoice therefor and copies of receipts or other substantiation of such expenses and charges,
and (iii) irrevocably instruct the Transfer Agent to deliver to each Purchaser one or more Book Entry Confirmations (as defined
below), free and clear of all restrictive and other legends (except as expressly provided in Section 4.1(b)), evidencing
the number of Shares such Purchaser is purchasing as set forth on such Purchaser’s signature page to this Agreement next
to the heading “Number of Shares to be Acquired”, within three Trading Days after the Closing Date. 

 

		2.2.	Closing Deliveries.

 

(a)               
On or prior to the Closing, the Company shall issue, deliver or cause to be delivered to each Purchaser (except as noted), the
following (the “Company Deliverables”):

 

                                                    
(i)            this Agreement, duly executed by the Company;

 

                                     (ii)            facsimile copies of one or more Book Entry Confirmations,
free and clear of all restrictive and other legends (except as provided in Section 4.1(b)), evidencing the Shares subscribed
for by such Purchaser, as calculated in accordance with Section 2.1(a), registered in the name of such Purchaser as set
forth on the Accredited Investor Questionnaire included as Exhibit B hereto
(the “Book Entry Confirmations”);

 

                                     (iii)            a legal opinion of Company Counsel, dated as of the Closing
Date and in substantially the form attached hereto as Exhibit D, executed
by such counsel and addressed to the Purchasers;

 

                                     (iv)            the Registration Rights Agreement, duly executed by the
Company;

 

                                     (v)            duly executed Irrevocable Transfer Agent Instructions acknowledged
in writing by the Transfer Agent;

 

                                     (vi)            a certificate of the Secretary of the Company (the “Secretary’s
Certificate”), dated as of the Closing Date, evidencing (i) the incorporation and good standing of the Company issued
by the Secretary of State of the State of Delaware as of a date within five days of the Closing Date, (ii) the Company’s
qualification as a foreign corporation and good standing issued by the Secretary of State of the State of California as of a date
within 10 days of the Closing Date, and (iii) a certified copy of the certificate of incorporation of the Company, as certified
by the Secretary of State of the State of Delaware, as of a date within 10 days of the Closing Date, in substantially the form
attached hereto as Exhibit E; and

 

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                                     (vii)            the Compliance Certificate referred to in Section 5.1(h).

 

(b)              
On or prior to the Closing, each Purchaser shall deliver or cause to be delivered to the Company the following, with respect to
such Purchaser (the “Purchaser Deliverables”):

 

                                                    
(i)            this Agreement, duly executed by such Purchaser;

 

                                     (ii)            its Subscription Amount, in United States dollars and in
immediately available funds, in the amount set forth below such Purchaser’s name on the applicable signature page hereto
under the heading “Aggregate Purchase Price (Subscription Amount)”;

 

                                     (iii)            the Registration Rights Agreement, duly executed by such
Purchaser; and

 

                                     (iv)            a fully completed and duly executed Accredited Investor
Questionnaire, satisfactory to the Company, in the form attached hereto as Exhibit
B.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

3.1.                       
Representations and Warranties of the Company. Except as (i) set forth in the schedules delivered herewith (the “Disclosure
Schedules”), which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation made herein
to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules or other representations relating
to the subject matter of such disclosures, or (ii) specifically disclosed in the SEC Reports, which shall be deemed to qualify
any representation made herein that specifically references such SEC Reports, the Company hereby represents and warrants as of
the date hereof and the Closing Date (except for the representations and warranties that speak as of a specific date, which shall
be made as of such date), to each of the Purchasers and to the Placement Agent, as follows:

 

(a)               
Subsidiaries. The Company has no direct or indirect subsidiaries other than those set forth on Schedule 3.1(a) to
the Disclosure Schedule. Except as set forth on Schedule 3.1(a) to the Disclosure Schedule, the Company owns,
directly or indirectly, all of the capital stock or comparable equity interests of each Subsidiary free and clear of any and all
Liens, and all the issued and outstanding shares of capital stock or comparable equity interests of each Subsidiary are validly
issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

(b)              
Organization and Qualification. The Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable),
with the requisite corporate power and authority to own or lease and use its properties and assets and to carry on its business
as currently conducted. Except as set forth on Schedule 3.1(b) to the Disclosure Schedule, neither the Company nor any Subsidiary
is in violation or default of any of the provisions of its respective certificate of incorporation or bylaws or other organizational
documents. The Company and each of its Subsidiaries is duly qualified to conduct business and is in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such
qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or
reasonably be expected to result in a Material Adverse Effect, and no Proceeding has been instituted, is pending, or, to the Company’s
Knowledge, has been threatened in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification.

 

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(c)               
Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by each of the Transaction Documents to which it is a party and otherwise to carry out its obligations
hereunder and thereunder. The Company’s execution and delivery of each of the Transaction Documents to which it is a party
and the consummation by it of the transactions contemplated hereby and thereby (including, but not limited to, the sale and delivery
of the Shares) have been duly authorized by all necessary corporate action on the part of the Company, and no further corporate
action is required by the Company, its Board of Directors or its stockholders in connection therewith other than in connection
with the Required Approvals. Each of the Transaction Documents to which it is a party has been (or upon delivery will have been)
duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute, the legal, valid and
binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application, (ii) as
limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (iii) insofar
as indemnification and contribution provisions may be limited by applicable law.

 

(d)              
No Conflicts. The execution, delivery and performance by the Company of the Transaction Documents to which it is a party
and the consummation by the Company of the transactions contemplated hereby or thereby (including, without limitation, the issuance
of the Shares) do not and will not (i) conflict with or violate any provisions of the Company’s or any Subsidiary’s
certificate of incorporation or bylaws or otherwise result in a violation of the organizational documents of the Company, (ii) conflict
with, or constitute a default (or an event that with notice or lapse of time or both would result in a default) under, result in
the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any Material Contract,
or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject
(including federal and state securities laws and regulations and the rules and regulations, assuming the correctness of the representations
and warranties made by the Purchasers herein, of any self-regulatory organization to which the Company or its securities are subject,
including all applicable Trading Markets), or by which any property or asset of the Company is bound or affected, except in the
case of clauses (ii) and (iii) such as would not, individually or in the aggregate, have or reasonably be expected to
result in a Material Adverse Effect or a material adverse effect on the legality, validity or enforceability of any Transaction
Document or the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document.

 

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(e)               
Filings, Consents and Approvals. Except as set forth on Schedule 3.1(e) to the Disclosure Schedule, neither the Company
nor any of its Subsidiaries is required to obtain any consent, waiver, approval, authorization or order of, give any notice to,
or make any filing or registration with, any court or other federal, state, local or other governmental authority, holder of outstanding
securities of the Company or other Person in connection with the execution, delivery and performance by the Company of the Transaction
Documents (including the issuance of the Shares), other than (i) the filing with the Commission of one or more Registration
Statements in accordance with the requirements of the Registration Rights Agreement, (ii) filings required by applicable state
securities laws, (iii) the filing of a Notice of Sale of Securities on Form D with the Commission under Regulation D of the
Securities Act, (iv) the filing of any requisite notices and/or application(s) to the Principal Trading Market for the issuance
and sale of the Shares and the listing of the Shares for trading or quotation, as the case may be, thereon in the time and manner
required thereby, (v) the filings required in accordance with Section 4.4, and (vi) those that have been made
or obtained prior to the date of this Agreement (collectively, the “Required Approvals”).

 

(f)               
Issuance of the Shares. The Shares have been duly authorized and, when issued and paid for in accordance with the terms
of the Transaction Documents, will be duly and validly issued, fully paid and nonassessable and free and clear of all Liens, other
than restrictions on transfer provided for in the Transaction Documents or imposed by applicable securities laws, and shall not
be subject to preemptive or similar rights of stockholders. Assuming the accuracy of the representations and warranties of the
Purchasers in this Agreement, the Shares will be issued in compliance with all applicable federal and state securities laws.

 

(g)              
Capitalization. The capitalization of the Company is as described in its most recently filed SEC Report on Form 10-Q, except
for issuances pursuant to this Agreement, stock option exercises, issuances pursuant to equity incentive plans or exercises of
warrants. The Company has not issued any capital stock since the date of its most recently filed SEC Report other than to reflect
stock option and warrant exercises that do not, individually or in the aggregate, have a material effect on the issued and outstanding
capital stock, options and other securities of the Company. No Person has any right of first refusal, preemptive right, right of
participation, or any similar right to participate in the transactions contemplated by the Transaction Documents that have not
been effectively waived as of the Closing Date. Except as set forth on Schedule 3.1(g), or as a result of the purchase
and sale of the Shares, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any
Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements
by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents.
Except as set forth on Schedule 3.1(g), the issuance and sale of the Shares will not obligate the Company to issue
shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. No further approval
or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Shares. There
are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock
to which the Company is a party or, to the Company’s Knowledge, between or among any of the Company’s stockholders.

 

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(h)              
SEC Reports; Disclosure Materials. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the 12 months preceding
the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing
materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein
as the “SEC Reports”, and the SEC Reports, together with the Disclosure Schedules, being collectively
referred to as the “Disclosure Materials”) on a timely basis or has received a valid extension of such
time of filing and has filed any such SEC Reports prior to the expiration of any such extension, except where the failure to file
on a timely basis would not have or reasonably be expected to result in a Material Adverse Effect and would not have or reasonably
be expected to result in any limitation or prohibition on the Company’s ability to register the Shares for resale on Form
S-1 or any Purchaser’s ability to use Rule 144 to resell any Shares. As of their respective filing dates, or to the extent
corrected by a subsequent amendment, the SEC Reports complied in all material respects with the requirements of the Securities
Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when
filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company
has never been an issuer subject to Rule 144(i) under the Securities Act. Except as set forth on Schedule 3.1(h) to
the Disclosure Schedule, each of the Material Contracts to which the Company or any Subsidiary is a party or to which the property
or assets of the Company or any of its Subsidiaries are subject has been filed (or incorporated by reference) as an exhibit to
the SEC Reports, other than the Transaction Documents.

 

(i)                
Financial Statements. The consolidated financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing (or to the extent corrected by a subsequent amendment). Such consolidated financial statements have been
prepared in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified
in such consolidated financial statements or the consolidated notes thereto and except that unaudited consolidated financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries taken as a whole as of and for the dates thereof and the results of operations and cash flows
for the periods then ended, subject, in the case of unaudited consolidated statements, to normal, immaterial year-end audit adjustments.

 

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(j)                
Material Changes. Since the date of the latest financial statements included within the SEC Reports, except as specifically
disclosed in a subsequent SEC Report filed prior to the date hereof and except as set forth on Schedule 3.1(j) to the Disclosure
Schedule, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect, (ii) the Company has not incurred any material liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent
with past practice and (B) liabilities not required to be reflected in the Company’s consolidated financial statements pursuant
to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered materially its
method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or
made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to
purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees
of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common
Stock issued pursuant to existing Company stock option or stock purchase plans or executive and director compensation arrangements
disclosed in the SEC Reports. Except as set forth on Schedule 3.1(j) to the Disclosure Schedule and except for
the issuance of the Shares contemplated by this Agreement, no event, liability or development has occurred or exists with respect
to the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that would be required
to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly
disclosed at least one Trading Day prior to the date that this representation is made.

 

(k)              
Litigation. There is no Action which (i) adversely affects or challenges the legality, validity or enforceability of
any of the Transaction Documents or the Shares, or (ii) would, if there were an unfavorable decision, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse Effect. During the past five years, neither the Company
nor any Subsidiary, nor to the Company’s Knowledge any director or officer thereof, is or has been the subject of any Action
involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There
has not been, and to the Company’s Knowledge there is not pending or contemplated, any investigation by the Commission involving
the Company or any current or former director or officer of the Company. During the past five years, the Commission has not issued
any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the Exchange
Act or the Securities Act.

 

(l)                
Employment Matters. No material labor dispute exists or, to the Company’s Knowledge, is imminent with respect to any
of the employees of the Company which would have or would reasonably be expected to result in a Material Adverse Effect. None of
the Company’s or any Subsidiary’s employees is a member of a labor union that relates to such employee’s relationship
with the Company, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement. No executive
officer of the Company (as defined in Rule 405 of the Securities Act) has notified the Company or any of its Subsidiaries that
such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s employment with the
Company or any such Subsidiary. The Company is in compliance with all U.S. federal, state, local and foreign laws and regulations
relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure
to be in compliance would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

    	12

    	 

    

 

(m)            
Compliance. Except as set forth on Schedule 3.1(m) to the Disclosure Schedule, neither the Company nor any of its
Subsidiaries (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice
or lapse of time or both, would result in a default by the Company or any of its Subsidiaries under), nor has the Company or any
of its Subsidiaries received written notice of a claim that it is in default under or that it is in violation of, any Material
Contract (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator
or governmental body having jurisdiction over the Company or any of its Subsidiaries or their properties or assets, or (iii) is
in violation of, or in receipt of written notice that it is in violation of, any statute, rule or regulation of any governmental
authority applicable to the Company or any of its Subsidiaries, except in the case of each of clauses (i), (ii) and (iii), as would
not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

 

(n)              
Title to Assets. The Company and each of its Subsidiaries has good and marketable title to all tangible personal property
owned by it that is material to its respective businesses, in each case free and clear of all Liens except such as do not materially
affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company.
Except as set forth on Schedule 3.1(n) to the Disclosure Schedule, any real property and facilities held under lease by
the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as
are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and
its Subsidiaries.

 

(o)              
Patents and Trademarks. To the Company’s Knowledge, the Company and each of its Subsidiaries owns, possesses, licenses
or has other rights to use, all patents, patent applications, trade and service marks, trade and service mark applications and
registrations, trade names, trade secrets, inventions, copyrights, licenses, technology, know-how and other intellectual property
rights and similar rights necessary or material for use in connection with its respective businesses as described in the SEC Reports
and which the failure to so have would have or reasonably be expected to result in a Material Adverse Effect (collectively, the
“Intellectual Property Rights”). Except as set forth on Schedule 3.1(o) to the Disclosure
Schedule, there is no pending or, to the Company’s Knowledge, threatened action, suit, proceeding or claim by any Person
that the Company’s or any Subsidiary’s business as now conducted infringes or otherwise violates any patent, trademark,
copyright, trade secret or other proprietary rights of another. To the Company’s Knowledge, there is no existing infringement
by another Person of any of the Intellectual Property Rights that would have or would reasonably be expected to result in a Material
Adverse Effect. Except as set forth on Schedule 3.1(o) to the Disclosure Schedule, there is no pending or, to the Company’s
Knowledge, threatened action, suit, proceeding or claim by another Person challenging the Company’s or any Subsidiary’s
rights in or to any material Intellectual Property Rights, or challenging inventorship, validity or scope of any such Intellectual
Property Rights. The Company has taken reasonable security measures to protect the secrecy, confidentiality and value of all of
its and its Subsidiaries’ Intellectual Property Rights. None of the technology employed by the Company or any of its Subsidiaries
has been obtained or is being used by the Company or any Subsidiary in violation of any contractual obligation binding on the Company
or any Subsidiary or, to the Company’s Knowledge, any of its or its Subsidiaries’ officers, directors or employees
or otherwise in violation of the rights of any Person, which violations would have or would reasonably be expected to have a Material
Adverse Effect.

 

    	13

    	 

    

 

(p)              
Insurance. The Company and each of its Subsidiaries is insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as the Company believes to be prudent and customary in the businesses and locations in
which the Company and the Subsidiaries are engaged. Except as set forth on Schedule 3.1(p) to the Disclosure Schedule,
none of the Company or any of its Subsidiaries has received any written notice of cancellation of any such insurance, nor, to the
Company’s Knowledge, will it or any Subsidiary be unable to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a material increase
in cost.

 

(q)              
Transactions with Affiliates and Employees. Except as set forth in the SEC Reports, none of the executive officers or directors
of the Company and, to the Company’s Knowledge, none of the employees of the Company is presently a party to any transaction
with the Company (other than for services as employees, officers and directors) that would be required to be disclosed pursuant
to Item 404 of Regulation S-K promulgated under the Securities Act.

 

(r)                
Internal Accounting Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset and liability
accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s
general or specific authorization, and (iv) the recorded accountability for assets and liabilities is compared with the existing
assets and liabilities at reasonable intervals and appropriate action is taken with respect to any differences.

 

(s)               
Certain Fees. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest
or claim against or upon the Company or a Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of the Company, other than the Placement Agent with respect to the offer and sale
of the Shares (which fees are being paid by the Company). The Purchasers shall have no obligation with respect to any fees or with
respect to any claim made by or on behalf of other Persons for fees of a type contemplated in this Section 3.1(s) pursuant
to any agreement to which the Company is a party that may be due in connection with the transactions contemplated by the Transaction
Documents.

    	14

    	 

    

 

 

(t)                
Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section
3.2, and the accuracy of the information disclosed in the Accredited Investor Questionnaires provided by the Purchasers, no
registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchasers under the
Transaction Documents. The issuance and sale of the Shares hereunder does not contravene the rules and regulations of the Principal
Trading Market.

 

(u)              
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended.

 

(v)              
Registration Rights. Other than each of the Purchasers pursuant to the Registration Rights Agreement and the holders of
warrants of the Company listed on Schedule 3.1(v) attached hereto, no Person has any right to cause the Company to effect
the registration under the Securities Act of any securities of the Company.

 

(w)            
Registration of Common Stock. The Company’s Common Stock is registered pursuant to Section 12(b) or 12(g) of
the Exchange Act, and the Company has taken no action designed to terminate the registration of the Common Stock under the Exchange
Act, nor has the Company received any notification that the Commission is contemplating terminating such registration. The Company
has not, in the 12 months preceding the date hereof, received written notice from any Trading Market on which the Common Stock
is listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading
Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with
all listing and maintenance requirements of the Principal Trading Market on the date hereof.

 

(x)              
Application of Takeover Protections; Rights Agreements. The Company and the Board of Directors have taken all necessary
action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any
distribution under a rights agreement) or other similar anti-takeover provision under the Company’s charter documents or
the laws of its state of incorporation that is or could reasonably be expected to become applicable to any of the Purchasers as
a result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents,
including, without limitation, the Company’s issuance of the Shares and the Purchasers’ ownership of the Shares.

 

(y)              
Disclosure. All disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company, its business
and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct in all material
respects and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges
and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in Section 3.2 or in the Accredited Investor Questionnaires provided
by the Purchasers.

 

    	15

    	 

    

 

(z)               
Tax Matters. The Company and each of its Subsidiaries (i) have paid all taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being
contested in good faith, with respect to which adequate reserves have been set aside on the books of the Company, and (ii) have
set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which
such returns, reports or declarations apply, except, in the case of clause (i) above, where the failure to so pay or file
any such tax, assessment, charge or return would not have or reasonably be expected to result in a Material Adverse Effect.

 

(aa)           
Off-Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company, any Subsidiary
and an unconsolidated or other off-balance sheet entity that is required to be disclosed by the Company in the SEC Reports and
is not so disclosed and would have or reasonably be expected to result in a Material Adverse Effect.

 

(bb)          
Foreign Corrupt Practices. Neither the Company nor any of its Subsidiaries, nor to the Company’s Knowledge, any agent
or other person acting on behalf of the Company or any of its Subsidiaries, has (i) directly or indirectly, used any funds
for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity,
(ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary
(or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated
in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(cc)           
Acknowledgment Regarding Purchasers’ Purchase of Shares. The Company acknowledges and agrees that each of the Purchasers
is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions
contemplated hereby and thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby
and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents
and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Shares. The Company further
represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents
has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(dd)         
No Additional Agreements. The Company does not have any agreement or understanding with any Purchaser with respect to the
transactions contemplated by the Transaction Documents other than as specified in the Transaction Documents.

 

(ee)           
No Disqualification Events.  With respect to the Shares to be offered and sold hereunder in reliance on Rule 506 under
the Securities Act (“Regulation D Securities”), none of the Company, any of its predecessors, any affiliated
issuer, any director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner
of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter
(as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each,
an “Issuer Covered Person” and, together, “Issuer Covered Persons”) is subject
to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable
care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent
applicable, with its disclosure obligations under Rule 506(e).

 

    	16

    	 

    

 

3.2.                       
Representations and Warranties of the Purchasers. Each Purchaser hereby, for itself and for no other Purchaser, represents
and warrants as of the date hereof and as of the Closing Date to the Company and the Placement Agent as follows:

 

(a)               
Organization; Authority. If Purchaser is not a natural person, such Purchaser is an entity duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization with the requisite corporate, limited liability company
or partnership power and authority to enter into and to consummate the transactions contemplated by the applicable Transaction
Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by
such Purchaser and, if Purchaser is not a natural person, the performance by such Purchaser of the transactions contemplated by
this Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or other applicable
like action, on the part of such Purchaser. Each Transaction Document to which such Purchaser is a party has been duly executed
by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally
binding obligation of such Purchaser, enforceable against it in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

 

(b)              
No Conflicts. The execution, delivery and performance by such Purchaser of this Agreement and the Registration Rights Agreement
and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (i) result in a violation
of the organizational documents of such Purchaser, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which such Purchaser is a party, or (iii) result in a violation
of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Purchaser,
except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Purchaser to
perform its obligations hereunder.

 

    	17

    	 

    

 

(c)               
Investment Intent. Such Purchaser understands that the Shares are “restricted securities” and have not been
registered under the Securities Act or any applicable state securities law and is acquiring the Shares as principal for its own
account and not with a view to, or for distributing or reselling such Shares or any part thereof in violation of the Securities
Act or any applicable state securities laws, provided, however, that by making the representations herein,
such Purchaser does not agree to hold any of the Shares for any minimum period of time and reserves the right, subject to the provisions
of this Agreement and the Registration Rights Agreement, at all times to sell or otherwise dispose of all or any part of such Shares
pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and in compliance
with applicable federal and state securities laws. Such Purchaser is acquiring the Shares hereunder in the ordinary course of its
business. Such Purchaser does not presently have any agreement, plan or understanding, directly or indirectly, with any Person
to distribute or effect any distribution of any of the Shares (or any securities which are derivatives thereof) to or through any
person or entity; such Purchaser is not a registered broker-dealer under Section 15 of the Exchange Act or an entity engaged in
a business that would require it to be so registered as a broker-dealer.

 

(d)              
Purchaser Status. At the time such Purchaser was offered the Shares, it was, and at the date hereof it is, and on the Closing
Date it will be, an “accredited investor” as defined in Rule 501(a) under the Securities Act.

 

(e)               
General Solicitation. Such Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other
communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio
or presented at any seminar or any other general advertisement.

 

(f)               
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Shares, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of
an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.

 

(g)              
Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the Disclosure Materials and has been afforded (i) the opportunity to ask such questions
as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions
of the offering of the Shares and the merits and risks of investing in the Shares, (ii) access to information about the Company
and its Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects
sufficient to enable it to evaluate its investment, and (iii) the opportunity to obtain such additional information that the
Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision
with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of such Purchaser
or its representatives or counsel shall modify, amend or affect such Purchaser’s right to rely on the truth, accuracy and
completeness of the Company’s representations and warranties contained in the Transaction Documents. Such Purchaser understands
that its investment in the Shares involves a high degree of risk. Such Purchaser has sought such accounting, legal and tax advice
as it has considered necessary to make an informed decision with respect to its acquisition of the Shares.

 

    	18

    	 

    

 

(h)              
Brokers and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right,
interest or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of such Purchaser.

 

(i)                
Independent Investment Decision. Such Purchaser has independently evaluated the merits of its decision to purchase Shares
pursuant to the Transaction Documents, and such Purchaser confirms that it has not relied on the advice of any other Purchaser’s
business and/or legal counsel in making such decision. Such Purchaser understands that nothing in this Agreement or any other materials
presented by or on behalf of the Company to the Purchaser in connection with the purchase of the Shares constitutes legal, tax
or investment advice. Such Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed
necessary or appropriate in connection with its purchase of the Shares. Such Purchaser understands that the Placement Agent has
acted solely as the agent of the Company in this placement of the Shares and such Purchaser has not relied on the business or legal
advice of the Placement Agent or any of its agents, counsel or Affiliates in making its investment decision hereunder, and confirms
that none of such Persons has made any representations or warranties to such Purchaser in connection with the transactions contemplated
by the Transaction Documents. Neither the Placement Agent nor any Affiliate of the Placement Agent has made or makes any representation
as to the Company or the quality of the Shares.  In connection with the issuance of the Shares to such Purchaser, neither
the Placement Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser.

 

(j)                
Reliance on Exemptions. Such Purchaser understands that the Shares are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
in part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements,
acknowledgements and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions
and the eligibility of such Purchaser to acquire the Shares.

 

(k)              
Certain Trading Activities. Such Purchaser has not directly or indirectly engaged in any Short Sales involving the Company’s
securities since the time that it was first contacted by the Company with respect to the transactions contemplated hereby. “Short
Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation
SHO under the Exchange Act and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short
sales, swaps and similar arrangements (including on a total return basis), and sales and other transactions through non-US broker
dealers or foreign regulated brokers. Notwithstanding the foregoing, in the case of a Purchaser that is or is part of a multi-managed
investment vehicle (a “Fund”) whereby separate portfolio managers manage separate portions of such Fund’s
assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing
other portions of such Fund’s assets, the representation set forth above shall solely apply with respect to the portion of
assets of such Purchaser managed by the portfolio manager that made the investment decision to purchase the Shares covered by this
Agreement. Such Purchaser hereby covenants and agrees not to engage, directly or indirectly, in any transactions in the securities
of the Company or involving the Company’s securities during the period from the date hereof until such time as (i) the
transactions contemplated by this Agreement are first publicly announced as described in Section 4.4 or (ii) this
Agreement is terminated in full pursuant to Section 6.17. Notwithstanding the foregoing, for avoidance of doubt, nothing
contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of
the availability of, or securing of, available shares to borrow in order to effect short sales or similar transactions in the future.

 

    	19

    	 

    

 

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

 

(m)            
Residency. Such Purchaser’s residence (if an individual) or offices in which its investment decision with respect
to the Shares was made (if an entity) are located at the address immediately below such Purchaser’s name on its signature
page hereto.

 

(n)              
Accuracy of Accredited Investor Questionnaire. The Accredited Investor Questionnaire delivered by such Purchaser in connection
with this Agreement is complete and accurate in all respects as of the date of this Agreement and will be correct as of the Closing
Date.

 

(o)              
Regulation M Compliance. Such Purchaser is aware that the anti-manipulation rules of Regulation M under the Exchange Act
may apply to sales of Common Stock and other activities with respect to the Common Stock by the Purchasers, and agrees to comply
with such rules.

 

The Company and each of the Purchasers acknowledge
and agree that no party to this Agreement has made or makes any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in this Article III and the Transaction Documents.

 

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

 

		4.1.	Transfer Restrictions.

 

(a)               
Compliance with Laws. Notwithstanding any other provision of this Article IV, each Purchaser, severally but not jointly,
covenants that the Shares may be disposed of only pursuant to an effective registration statement under, and in compliance with
the requirements of, the Securities Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act, and in compliance with any applicable state and federal securities laws. In connection with
any transfer of the Shares other than (i) pursuant to an effective registration statement, (ii) to the Company, (iii) pursuant
to Rule 144 (provided that such Purchaser provides the Company with reasonable assurances (in the form of seller and,
if applicable, broker representation letters) that the Shares may be sold pursuant to such rule), or (iv) in connection with
a bona fide pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to
the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of
which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of
such transferred Shares under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be
bound by the terms of this Agreement and the Registration Rights Agreement by executing a joinder agreement to each of the same,
and shall have the rights of a Purchaser under this Agreement and the Registration Rights Agreement with respect to such transferred
Shares upon such execution.

 

    	20

    	 

    

 

(b)              
Legends. Book Entry Confirmations evidencing the Shares shall bear any legend as required by the “blue sky”
laws of any state and a restrictive legend in substantially the following form, until such time as they are not required under Section
4.1(c):

 

THESE SHARES HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SHARES MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES
UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

The Company acknowledges and agrees that a Purchaser
may from time to time pledge, and/or grant a security interest in, some or all of the legended Shares in connection with applicable
securities laws, pursuant to a bona fide margin agreement in compliance with a bona fide margin loan. Such a pledge would not be
subject to approval or consent of the Company and no legal opinion of legal counsel to the pledgee, secured party or pledgor shall
be required in connection with the pledge, but such legal opinion shall be required in connection with a subsequent transfer or
foreclosure following default by such Purchaser transferee of the pledge. No notice shall be required of such pledge, but such
Purchaser’s transferee shall promptly notify the Company of any such subsequent transfer or foreclosure of such legended
Shares. Each Purchaser acknowledges that the Company shall not be responsible for (i) any pledges relating to, or the grant
of any security interest in, any of the Shares or for any agreement, understanding or arrangement between any Purchaser and its
pledgee or secured party, or (ii) any violations of applicable securities laws that may result from the sale of pledged shares
as a result of the Purchaser holding material non-public information at the time of such sale. At the appropriate Purchaser’s
expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Shares may reasonably
request in connection with a pledge or transfer of the Shares, including the preparation and filing of any required prospectus
supplement under Rule 424(b)(3) of the Securities Act or other applicable provision of the Securities Act to appropriately
amend the list of selling stockholders thereunder. Each Purchaser acknowledges and agrees that, except as otherwise provided in Section
4.1(c), any Shares subject to a pledge or security interest as contemplated by this Section 4.1(b) shall continue
to bear the legend set forth in this Section 4.1(b) and be subject to the restrictions on transfer set forth in Section
4.1(a).

 

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(c)               
Removal of Legends. The legend set forth in Section 4.1(b) above shall be removed and the Company shall
issue a book entry confirmation without such legend or any other legend to the holder of the applicable Shares upon which it is
stamped or issue to such holder by electronic delivery at the applicable balance account at the Depository Trust Company (“DTC”),
if (i) such Shares are registered for resale under the Securities Act (provided that, if a Purchaser is selling pursuant
to an effective Registration Statement, then such Purchaser agrees to only sell such Shares during such time that such Registration
Statement is effective and not withdrawn or suspended, and only as permitted by such Registration Statement), (ii) such Shares
are sold or transferred pursuant to Rule 144 (if the transferor is not an Affiliate of the Company), or (iii) such Shares
are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information
required under Rule 144 as to such securities and without volume or manner-of-sale restrictions. Following the earlier of (A) the
Effective Date or (B) Rule 144 becoming available for the resale of such Shares, without the requirement for the Company to
be in compliance with the current public information required under Rule 144 as to such Shares and without volume or manner-of-sale
restrictions, the Company shall deliver to the Transfer Agent irrevocable instructions that the Transfer Agent shall reissue a
book entry confirmation representing the applicable Shares without legend upon receipt by the Transfer Agent of the legended book
entry confirmation for such Shares. Any fees with respect to the Transfer Agent and all DTC fees associated with the removal of
such legend shall be borne by the Company. Following the Effective Date, or at such earlier time as a legend is no longer required
for certain Shares (in which case a Purchaser shall also be required to provide reasonable assurances (in the form of seller and,
if applicable, broker representation letters) that a legend is no longer required), the Company will, no later than three Trading
Days following the delivery by a Purchaser to the Company or the Transfer Agent (with notice to the Company) of a legended book
entry confirmation representing Shares (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary
to effect the reissuance and/or transfer thereof) and an opinion of counsel to the extent required by Section 4.1(a),
deliver or cause to be delivered to the transferee of such Purchaser or such Purchaser, as applicable, a book entry confirmation
representing such Shares that is free from all restrictive and other legends. The Company may not make any notation on its records
or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.1(c) other
than to comply with applicable law. Book entry confirmations for Shares subject to legend removal hereunder may be transmitted
by the Transfer Agent to a Purchaser by crediting the account of such Purchaser’s prime broker with DTC as directed by such
Purchaser.

 

(d)              
Irrevocable Transfer Agent Instructions. The Company shall issue irrevocable instructions to the Transfer Agent, and any
subsequent transfer agent, in substantially the form of Exhibit C attached
hereto (the “Irrevocable Transfer Agent Instructions”). The Company represents and warrants that no instruction
other than the Irrevocable Transfer Agent Instructions referred to in this Section 4.1(d) (or instructions that
are consistent therewith) will be given by the Company to the Transfer Agent in connection with this Agreement, and that the Shares
shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement
and the other Transaction Documents and applicable law. The Company acknowledges that a breach by it of its obligations under this Section
4.1(d) will cause irreparable harm to a Purchaser. Accordingly, the Company acknowledges that the remedy at law for a
breach of its obligations under this Section 4.1(d) will be inadequate and agrees, in the event of a breach or
threatened breach by the Company of the provisions of this Section 4.1(d), that a Purchaser shall be entitled, in addition
to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer,
without the necessity of showing economic loss and without any bond or other security being required.

 

    	22

    	 

    

 

(e)               
Acknowledgement. Each Purchaser, severally but not jointly, acknowledges its primary responsibilities under the Securities
Act and accordingly will not sell or otherwise transfer the Shares or any interest therein without complying with the requirements
of the Securities Act and applicable law. While the Registration Statement remains effective, each Purchaser hereunder may sell
the Shares in accordance with the plan of distribution contained in the Registration Statement and if it does so it will comply
therewith and with the related prospectus delivery requirements unless an exemption therefrom is available. Each Purchaser, severally
and not jointly with the other Purchasers, agrees that if it is notified by the Company in writing at any time that the Registration
Statement registering the resale of the Shares is not effective or that the prospectus included in such Registration Statement
no longer complies with the requirements of Section 10 of the Securities Act, such Purchaser will refrain from selling such Shares
until such time as the Purchaser is notified by the Company that such Registration Statement is effective or such prospectus is
compliant with Section 10 of the Securities Act, unless such Purchaser is able to, and does, sell such Shares pursuant to an available
exemption from the registration requirements of Section 5 of the Securities Act. Both the Company and its Transfer Agent, and their
respective directors, officers, employees and agents, may rely on this Section 4.1(e) and each Purchaser, severally
but not jointly, with the other Purchasers will indemnify and hold harmless each of such persons from any breaches or violations
of this Section 4.1(e).

 

(f)               
Buy-In. If the Company shall fail for any reason or for no reason to issue to a Purchaser unlegended book entry confirmations
within three Trading Days after receipt of all documents necessary for the removal of the legend set forth above (the “Deadline
Date”), then, in addition to all other remedies available to such Purchaser, if on or after the Trading Day immediately
following such three Trading Day period, such Purchaser is required to purchase (in an open market transaction or otherwise) shares
of Common Stock to deliver in satisfaction of a sale by the holder of shares of Common Stock that such Purchaser anticipated receiving
from the Company without any restrictive legend (a “Buy-In”), then the Company shall, within three Trading
Days after such Purchaser’s request and in the Company’s sole discretion, either (i) pay cash to such Purchaser
in an amount equal to such Purchaser’s total purchase price (including brokerage commissions, if any) for the shares of Common
Stock so purchased (the “Buy-In Price”), at which point the shares of Common Stock held by such Purchaser
equal to the number of shares of Common Stock so purchased shall be forfeited to the Company and the Company’s obligation
to deliver such book entry confirmation (and to issue such shares of Common Stock) shall terminate, or (ii) promptly honor
its obligation to deliver to such Purchaser a book entry confirmation representing such shares of Common Stock and pay cash to
the Purchaser in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common
Stock, multiplied by (B) the Closing Bid Price on the Deadline Date. A Purchaser shall provide the Company with written notice
indicating the amounts payable to such Purchaser in respect of the Buy-In, together with applicable confirmations and other evidence
reasonably requested by the Company.

 

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4.2.                       
Furnishing of Information. In order to enable the Purchasers to sell the Shares under Rule 144, until the date that the
Shares cease to be Registrable Securities (as defined in the Registration Rights Agreement) (and for no less than 12 months from
the Closing), the Company shall use its commercially reasonable efforts to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
the Exchange Act. If the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the
Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to
sell the Shares under Rule 144.

 

4.3.                       
No Integration. The Company shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate of
the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that will be integrated with the offer or sale of the Shares in a manner that would require
the registration under the Securities Act of the sale of the Shares to the Purchasers, or that will be integrated with the offer
or sale of the Shares for purposes of the rules and regulations of any Trading Market such that it would require stockholder approval
prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.

 

4.4.                       
Securities Laws Disclosure; Publicity. On or before 9:00 a.m., New York City time, on the Business Day immediately following
the date hereof, the Company shall issue a press release (the “Press Release”) reasonably acceptable
to the Placement Agent disclosing all material terms of the transactions contemplated hereby. On or before 5:30 p.m., New York
City time, on the fourth Trading Day immediately following the execution of this Agreement, the Company will file a Current Report
on Form 8-K with the Commission describing the terms of the Transaction Documents (and including as exhibits to such Current Report
on Form 8-K the material Transaction Documents (including, without limitation, this Agreement and the Registration Rights Agreement)).
Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser or an Affiliate of any Purchaser,
or include the name of any Purchaser or an Affiliate of any Purchaser in any press release or filing with the Commission (other
than the Registration Statement) or any regulatory agency or Trading Market, without the prior written consent of such Purchaser,
except (a) as required by federal securities laws in connection with (i) any registration statement contemplated by the
Registration Rights Agreement or (ii) the filing of final Transaction Documents (including signature pages thereto) with the
Commission, and (b) to the extent such disclosure is required by law, upon request of the staff of the Commission or Trading
Market regulations, in which case the Company shall provide the Purchasers with prior written notice of such disclosure permitted
under this subclause (b). From and after the issuance of the Press Release, no Purchaser shall be in possession of any material,
non-public information received from the Company or any of its officers, directors, employees or agents, that is not disclosed
in the Press Release. Each Purchaser, severally and not jointly with the other Purchasers, covenants that it will comply with the
provisions of any confidentiality or nondisclosure agreement executed by it and, in addition, until such time as the transactions
contemplated by this Agreement are required to be publicly disclosed by the Company as described in this Section 4.4,
such Purchaser will maintain the confidentiality of all disclosures made to it in connection with this transaction (including the
existence and terms of this transaction).

 

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4.5.                       
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, including this Agreement, or as expressly required by any applicable securities law, the Company covenants
and agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser or its agents or counsel with
any information regarding the Company that the Company believes constitutes material non-public information without the express
written consent of such Purchaser, unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality
and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant
in effecting transactions in securities of the Company.

 

4.6.                       
Use of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder for working capital and general
corporate purposes.

 

4.7.                       
Indemnification of Purchasers. Subject to the provisions of this Section 4.7, the Company will indemnify and
hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with
a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) (each,
a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies,
damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’
fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to any breach of any
of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents
(provided that, the Company will not be liable to any Purchaser Party under this Agreement to the extent, but only to the
extent, that the loss is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants
or agreements made by such Purchaser Party in this Agreement or in any of the other Transaction Documents). Promptly after receipt
by any such Person (the “Indemnified Person”) of notice of any demand, claim or circumstances which would
or might give rise to a claim or the commencement of any action, proceeding or investigation in respect of which indemnity may
be sought pursuant to this Section 4.7, such Indemnified Person shall promptly notify the Company in writing and the
Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person,
and shall assume the payment of all fees and expenses relating to such action, proceeding or investigation; provided, however, that
the failure of any Indemnified Person to so notify the Company shall not relieve the Company of its obligations hereunder except
to the extent that the Company is actually and materially prejudiced by such failure to notify. In any such proceeding, any Indemnified
Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Person unless: (i) the Company and the Indemnified Person shall have mutually agreed to the retention of such
counsel; (ii) the Company shall have failed promptly to assume the defense of such proceeding and to employ counsel reasonably
satisfactory to such Indemnified Person in such proceeding; or (iii) in the reasonable judgment of counsel to such Indemnified
Person, representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests
between them, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate
counsel. The Company shall not be liable for any settlement of any proceeding effected without its prior written consent, which
consent shall not be unreasonably withheld, delayed or conditioned. Without the prior written consent of the Indemnified Person,
which consent shall not be unreasonably withheld, delayed or conditioned, the Company shall not effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release of such Indemnified Person
from all liability arising out of such proceeding.

 

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4.8.                       
Form D; Blue Sky. The Company agrees to timely file a Form D with respect to the Shares as required under Regulation D and
to provide a copy thereof, promptly upon the written request of any Purchaser. The Company, on or before the Closing Date, shall
take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Shares
for sale to the Purchasers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws
of the states of the United States (or to obtain an exemption from such qualification) and shall provide evidence of such actions
promptly upon the written request of any Purchaser.

 

4.9.                       
Subsequent Equity Sales. From the date hereof until 30 days after the Effective Date of the Initial Registration Statement
(as defined in the Registration Rights Agreement), the Company shall not issue shares of Common Stock or Common Stock Equivalents; provided, however,
that the 30-day period set forth in this Section 4.9 shall be extended for the number of Trading Days during such
period in which (a) trading in the Common Stock is suspended by any Trading Market, or (b) following the Effective Date
of the Initial Registration Statement, the Registration Statement is not effective or the prospectus included in the Registration
Statement may not be used by the Purchasers for the resale of the Shares. Notwithstanding the foregoing, in no event shall this Section
4.9 prohibit the Company from issuing shares of Common Stock or Common Stock Equivalents (i) in connection with acquisitions
or strategic transactions (including joint ventures, marketing or distribution arrangements, collaboration agreements or intellectual
property license agreements) approved by a majority of the disinterested directors of the Company; provided, that
any such issuance shall only be to a Person which is, itself or through its Subsidiaries, an operating company in a business synergistic
with the business of the Company and in which the Company receives benefits in addition to the investment of funds, but shall not
include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose
primary business is investing in securities, or (ii) upon the exercise of any options, warrants or other convertible securities
outstanding on the date hereof; provided, that the terms and the conditions of the Shares are not amended after
the date hereof in connection with any such issuance, or (iii) to employees, directors or consultants pursuant to any stock
option, equity incentive or employee stock purchase plan approved by a majority of the disinterested directors of the Company.

 

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ARTICLE V

CONDITIONS PRECEDENT TO CLOSING

 

5.1.                       
Conditions Precedent to the Obligations of the Purchasers to Purchase Shares. The obligation of each Purchaser to acquire
Shares at the Closing is subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions, any
of which may be waived by such Purchaser (as to itself only):

 

(a)               
Representations and Warranties. The representations and warranties of the Company contained in Section 3.1 shall
be true and correct in all material respects (other than representations and warranties which are already qualified as to materiality,
which shall be true and correct in all respects) as of the date when made and as of the Closing Date, as though made on and as
of such date, except for such representations and warranties that speak as of a specific date, which shall be true and correct
as of such specified date.

 

(b)              
Performance. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing.

 

(c)               
No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any
of the transactions contemplated by the Transaction Documents.

 

(d)              
Consents. The Company shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and
waivers necessary for consummation of the purchase and sale of the Shares at the Closing, all of which shall be and remain so long
as necessary in full force and effect.

 

(e)               
Adverse Change. Since the date of execution of this Agreement, no event or series of events shall have occurred that has
had or would reasonably be expected to have a Material Adverse Effect.

 

(f)               
No Suspensions of Trading in Common Stock. The Common Stock shall not have been suspended, as of the Closing Date, by the
Commission or the Principal Trading Market from trading on the Principal Trading Market nor shall suspension by the Commission
or the Principal Trading Market have been threatened, as of the Closing Date, either (i) in writing by the Commission or the
Principal Trading Market or (ii) by falling below the minimum listing maintenance requirements of the Principal Trading Market.

 

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(g)              
Company Deliverables. The Company shall have delivered the Company Deliverables in accordance with Section 2.2(a).

 

(h)              
Compliance Certificate. The Company shall have delivered to each Purchaser a certificate, dated as of the Closing Date and
signed by its Chief Executive Officer or its Chief Financial Officer, certifying to the fulfillment of the conditions specified
in Sections 5.1(a) and (b) in the form attached hereto as Exhibit
F.

 

5.2.                       
Conditions Precedent to the Obligations of the Company to Sell Shares. The Company’s obligation to sell and issue
the Shares at the Closing to the Purchasers is subject to the fulfillment, on or prior to the Closing Date, of the following conditions,
any of which may be waived by the Company:

 

(a)               
Representations and Warranties. The representations and warranties made by the Purchasers in Section 3.2 shall
be true and correct in all material respects (other than representations and warranties which are already qualified as to materiality,
which shall be true and correct in all respects) as of the date when made, and as of the Closing Date as though made on and as
of such date, except for representations and warranties that speak as of a specific date, which shall be true and correct as of
such specified date.

 

(b)              
No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any
of the transactions contemplated by the Transaction Documents.

 

(c)               
Consents. The Company shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and
waivers necessary for consummation of the purchase and sale of the Shares at the Closing, all of which shall be and remain so long
as necessary in full force and effect.

 

(d)              
Performance. Such Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Purchaser at or prior
to the Closing Date.

 

(e)               
Purchaser Deliverables. Such Purchaser shall have delivered its Purchaser Deliverables in accordance with Section
2.2(b).

 

ARTICLE VI

MISCELLANEOUS

 

6.1.                       
Fees and Expenses. Except as otherwise expressly set forth in the Company’s engagement letter with the Placement Agent,
the Company and each Purchaser, severally and not jointly with any other Purchaser, shall pay the fees and expenses of their respective
advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party in connection with the
negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees,
stamp taxes and other taxes and duties levied in connection with the sale and issuance of the Shares to the Purchasers. Each Purchaser,
severally and not jointly with any other Purchaser, shall be responsible for all other tax liability that may arise as a result
of the holding or transferring of the Shares by it.

 

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6.2.                       
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations,
oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and
schedules. At or after the Closing, and without further consideration, the Company and the Purchasers will execute and deliver
to the other such further documents as may be reasonably requested in order to give practical effect to the intention of the parties
under the Transaction Documents.

 

6.3.                       
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication
is delivered via facsimile (provided the sender receives a machine-generated confirmation of successful transmission) at the facsimile
number specified in this Section 6.3 prior to 5:00 p.m., New York City time, on a Trading Day, (b) the next
Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number
specified in this Section 6.3 on a day that is not a Trading Day or later than 5:00 p.m., New York City time,
on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier
service with next day delivery specified, or (d) upon actual receipt by the party to whom such notice is required to be given.
The address for such notices and communications shall be as follows:

 

	If to the Company:   	Capricor Therapeutics, Inc.
	 	8840 Wilshire Blvd., 2nd Floor
	 	Beverly Hills, CA 90211
	 	Telephone No.: (310) 358-3200
	 	Facsimile No.: (310) 358-3209
	 	Attention: General Counsel

 

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

 

	 	Paul Hastings LLP
	 	1117 S. California Avenue
	 	Palo Alto, California 94304
	 	Telephone No.: (650) 320-1830
	 	Facsimile No.: (650) 320-1930
	 	Attention: Rob R. Carlson, Esq.

  

	If to a Purchaser:	To the address set forth under such Purchaser’s name on the signature page hereof;

  

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or such other address as may be designated in writing hereafter,
in the same manner, by such Person.

 

6.4.                       
Amendments; Waivers; No Additional Consideration. No provision of this Agreement may be waived, modified, supplemented or
amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchasers holding or having
the right to acquire 66 2/3% of the Shares at the time of such amendment (which amendment shall be binding on all Purchasers) or,
in the case of a waiver, by the party against whom enforcement of any such waiver is sought; provided, that any
amendment, waiver, modification or supplement of this Agreement that modifies the Subscription Amount of any Purchaser, the Purchase
Price or Section 2.1(a), Section 2.1(c), Section 2.2, Section 3.1(y), Section
4.4 or this Section 6.4 of this Agreement or causes any such Purchaser to assume any additional liability
or material obligation, may be effected only pursuant to a written instrument signed by the Company and such Purchaser. No waiver
of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver
in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. No consideration
shall be offered or paid to any Purchaser to amend or consent to a waiver or modification of any provision of any Transaction Document
unless the same consideration is also offered to all Purchasers who then hold Shares.

 

6.5.                       
Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be
deemed to limit or affect any of the provisions hereof. Any references to paragraphs, subparagraphs, sections or subsections are
to those parts of this Agreement, unless the context clearly indicates to the contrary. The language used in this Agreement will
be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be
applied against any party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden
of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of
the Transaction Documents.

 

6.6.                       
Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and
their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the Company
without the written consent of Purchasers holding or having the right to acquire 66 2/3% of the Shares at the time of such consent.
Any Purchaser may assign its rights hereunder in whole or in part to any Person to whom such Purchaser assigns or transfers any
Shares in compliance with the Transaction Documents and applicable law, provided that such transferee shall agree in writing to
be bound, with respect to the transferred Shares, by the terms and conditions of this Agreement and the Registration Rights Agreement
that apply to the “Purchasers” by executing a joinder agreement to each of the same.

 

6.7.                       
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except (i) the
Placement Agent is an intended third party beneficiary of Article III hereof and (ii) each Purchaser Party is an intended
third party beneficiary of Section 4.7.

 

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6.8.                       
Governing Law. This Agreement and the relationship of the parties to this Agreement shall be construed in accordance with,
and governed in all respects by, the internal laws of the State of New York (without giving effect to principles of conflicts of
laws). Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated
by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, employees
or agents) shall be commenced exclusively in any state or federal court located in the County of Los Angeles, State of California.
Each party hereto hereby irrevocably submits to the exclusive jurisdiction of each state and federal court located in the State
of Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives,
and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such County
of Los Angeles, State of California court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each
party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

6.9.                       
Survival. Unless this Agreement is terminated in accordance with Section 6.17, the representations, warranties,
agreements and covenants contained herein shall survive the Closing and the delivery of the Shares, subject in each case to the
applicable statute of limitations.

 

6.10.                   
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile signature page were an original thereof.

 

6.11.                   
Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and
the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

 

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6.12.                   
Replacement of Shares. If any instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor,
a new instrument, but only upon receipt of evidence reasonably satisfactory to the Company and the Transfer Agent of such loss,
theft or destruction and the execution by the holder thereof of a customary lost certificate affidavit of that fact and an agreement
to indemnify and hold harmless the Company and the Transfer Agent for any losses in connection therewith or, if required by the
Transfer Agent, a bond in such form and amount as is required by the Transfer Agent. The applicants for a new instrument under
such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares. If
a replacement instrument evidencing any Shares is requested due to a mutilation thereof, the Company may require delivery of such
mutilated instrument as a condition precedent to any issuance of a replacement.

 

6.13.                   
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties
agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described
in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in
connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate.

 

6.14.                   
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

6.15.                   
Adjustments in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable
in shares of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly
or indirectly shares of Common Stock), combination or other similar recapitalization or event occurring after the date hereof and
prior to the Closing, each reference in any Transaction Document to a number of shares or a price per share shall be deemed to
be amended to appropriately account for such event.

 

6.16.                   
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way
for the performance of the obligations of any other Purchaser under any Transaction Document. The decision of each Purchaser to
purchase Shares pursuant to the Transaction Documents has been made by such Purchaser independently of any other Purchaser and
independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties,
liabilities, results of operations, condition (financial or otherwise) or prospects of the Company or any Subsidiary which may
have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser nor any of
its agents or employees shall have any liability to any other Purchaser (or any other Person) relating to or arising from any such
information, materials, statement or opinions. Nothing contained herein or in any Transaction Document, and no action taken by
any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture
or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect
to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser acknowledges that no other Purchaser
has acted as agent for such Purchaser in connection with making its investment hereunder and that no Purchaser will be acting as
agent of such Purchaser in connection with monitoring its investment in the Shares or enforcing its rights under the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights
arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, Purchasers
and their respective counsels have chosen to communicate with the Company through Duane Morris LLP, counsel to the Placement Agent.
Each Purchaser acknowledges that Duane Morris LLP has rendered legal advice to the Placement Agent and not to such Purchaser in
connection with the transactions contemplated hereby, and that each such Purchaser has relied for such matters on the advice of
its own respective counsel. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for
the convenience of the Company and not because it was required or requested to do so by any Purchaser.

 

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6.17.                   
Termination. This Agreement may be terminated and the sale and purchase of the Shares abandoned at any time prior to the
Closing by either the Company or any Purchaser (with respect to itself only) upon written notice to the other, if the Closing has
not been consummated on or prior to 5:00 p.m., New York City time, on the Outside Date; provided, however,
that the right to terminate this Agreement under this Section 6.17 shall not be available to any Person whose failure
to comply with its obligations under this Agreement has been the cause of or resulted in the failure of the Closing to occur on
or before such time. Nothing in this Section 6.17 shall be deemed to release any party from any liability for
any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right
of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction
Documents. In the event of a termination pursuant to this Section 6.17, the Company shall promptly notify all non-terminating
Purchasers. Upon a termination in accordance with this Section 6.17, the Company and the terminating Purchaser(s) shall
not have any further obligation or liability (including arising from such termination) to the other, and no Purchaser will have
any liability to any other Purchaser under the Transaction Documents as a result therefrom. The Company and any Purchaser(s) may
extend the term of this Agreement in accordance with the amendment provisions of Section 6.4.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	33

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Share Purchase
Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	 	COMPANY
	 	 	 
	 	Capricor Therapeutics, Inc.,
	 	a Delaware corporation
	 	 	 
	 	By:   	 
	 	Name: Linda Marbán, Ph.D.
	 	Title: Chief Executive Officer

 

[SIGNATURE PAGES OF
PURCHASERS FOLLOW]

 

    	34

    	 

    

 

	NAME OF PURCHASER:
	 	 
	By:	 
	Name:	
	Title:	

  

	Aggregate Purchase Price (Subscription Amount): 

$_________________________________________
	 
	Number of Shares to be Acquired: ______________

 

	Tax ID No.:	 
	 	 
	Address for Notice/Residency of Purchaser:
	 	 
	c/o	 
	Street:	 
	City/State/Zip:	 
	Attention:	 
	Telephone No.:	 
	Facsimile No.:	 
	E-mail Address:	 

 

	Delivery Instructions:
	(if different than above)
	 	 
	c/o	 
	Street:	 
	City/State/Zip:	 
	Attention:	 
	Telephone No.:	 

 

[SIGNATURE PAGES CONTINUE]Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”)
is made and entered into as of January 9, 2015, by and among Capricor Therapeutics, Inc.,
a Delaware corporation (the “Company”), and each individual identified on the signature pages hereto.

 

This Agreement is made in connection with that
certain Securities Purchase Agreement (the “Purchase Agreement”), dated as of the date hereof, by and
among the Company and each purchaser identified on the signature pages thereto (each, a “Purchaser” and,
collectively, the “Purchasers”).

 

NOW, THEREFORE, IN CONSIDERATION of the
mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and each of the Holders (as defined below) agree as follows:

 

1.                 
Definitions. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall
have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following
meanings:

 

“Advice” has the meaning
set forth in Section 6(d).

 

“Affiliate” means,
with respect to any Person, any other person which directly or indirectly controls, is controlled by, or is under common control
with, such Person; as such terms are used in and construed under Rule 405 of the Securities Act.

 

“Agreement” has the
meaning set forth in the Preamble.

 

“Business Day” means
any day except Saturday, Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.

 

“Closing” has the
meaning set forth in the Purchase Agreement.

 

“Closing Date” has
the meaning set forth in the Purchase Agreement.

 

“Commission” means
the Securities and Exchange Commission.

 

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

 

“Company” has the
meaning set forth in the Preamble.

 

“Effective Date” means
each date that the Registration Statement filed pursuant to Section 2(a) and any post-effective amendment thereto is declared
effective by the Commission.

 

“Effectiveness Deadline”
means, with respect to the Initial Registration Statement or the New Registration Statement, the 90th calendar day following
the Closing Date (or, in the event the Commission reviews and has written comments to the Initial Registration Statement or the
New Registration Statement, the 120th calendar day following the Closing Date); provided, however, that if the
Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Effectiveness Deadline
shall be extended to the next Business Day on which the Commission is open for business.

 

    	 

    	 

    

 

“Effectiveness Period”
has the meaning set forth in Section 2(b).

 

“Event” has the meaning
set forth in Section 2(c).

 

“Event Date” has the
meaning set forth in Section 2(c).

 

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

 

“Filing Deadline”
means, with respect to the Initial Registration Statement required to be filed pursuant to Section 2(a), the 45th
calendar day following the Closing Date; provided, however, that if the Filing Deadline falls on a Saturday, Sunday or other
day that the Commission is closed for business, the Filing Deadline shall be extended to the next business day on which the Commission
is open for business.

 

“FINRA” has the meaning
set forth in Section 3(i).

 

“Holder” or “Holders”
means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified Party”
has the meaning set forth in Section 5(c).

 

“Indemnifying Party”
has the meaning set forth in Section 5(c).

 

“Initial Registration Statement”
means the initial Registration Statement filed pursuant to Section 2(a) of this Agreement.

 

“Liquidated Damages”
has the meaning set forth in Section 2(c).

 

“Losses” has the meaning
set forth in Section 5(a).

 

“New Registration Statement”
has the meaning set forth in Section 2(a).

 

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

 

“Principal Market”
means the Trading Market on which the Common Stock is primarily listed and quoted for trading, which, as of the Closing Date, shall
be the OTCQB Market.

 

    	2

    	 

    

 

“Proceeding” means
an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such
as a deposition), whether commenced or threatened.

 

“Prospectus” means
the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

“Purchase Agreement”
has the meaning set forth in the Recitals.

 

“Purchaser” or “Purchasers”
has the meaning set forth in the Recitals.

 

“Registrable Securities”
means all of the Shares and any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing; provided, that the Holder has completed and delivered to the Company a Selling
Stockholder Questionnaire; and provided, further, that with respect to a particular Holder, such Holder’s Shares shall
cease to be Registrable Securities upon the earliest to occur of the following: (a) a sale pursuant to a Registration Statement
or Rule 144 under the Securities Act (in which case, only such security sold by the Holder shall cease to be a Registrable Security);
or (b) such securities becoming eligible for resale by the Holder under Rule 144 without the requirement for the Company to be
in compliance with the current public information requirement thereunder and without volume or manner-of-sale restrictions, pursuant
to a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent.

 

“Registration Statements”
means any one or more registration statements of the Company filed under the Securities Act that covers the resale of any of the
Registrable Securities pursuant to the provisions of this Agreement (including, without limitation, the Initial Registration Statement,
the New Registration Statement and any Remainder Registration Statements), including (in each case) the amendments and supplements
to such Registration Statements, including pre- and post-effective amendments thereto, all exhibits and all material incorporated
by reference or deemed to be incorporated by reference in such Registration Statements.

 

“Remainder Registration Statements”
has the meaning set forth in Section 2(a).

 

“Rule 144” means Rule
144 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such rule.

 

    	3

    	 

    

 

“Rule 415” means Rule
415 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such rule.

 

“Rule 424” means Rule
424 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such rule.

 

“SEC Guidance” means
(a) any publicly-available written or oral guidance, comments, requirements or requests of the Commission staff, provided,
that any such oral guidance, comments, requirements or requests are reduced to writing by the Commission, and (b) the Securities
Act.

 

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

 

“Selling Stockholder Questionnaire”
means a questionnaire in the form attached as Annex B hereto, or such other form of questionnaire as may reasonably be adopted
by the Company from time to time.

 

“Shares” means the
shares of Common Stock issued or issuable to the Purchasers pursuant to the Purchase Agreement.

 

“Special Registration Statement”
means a registration statement relating to any employee benefit plan on Form S-8 or similar form or, with respect to any corporate
reorganization or other transaction under Rule 145 of the Securities Act, a registration statement on Form S-4 or similar form.

 

“Trading Day” means
(a) a day on which the Common Stock is listed or quoted and traded on its Principal Trading Market (other than the OTC Markets
Group Inc.), or (b) if the Common Stock is not listed on a Trading Market (other than the OTC Markets Group Inc.), a day on
which the Common Stock is traded in the over-the-counter market, as reported by the OTC Markets Group Inc. (or any similar organization
or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not
listed or quoted as set forth in (a) or (b) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market” means
whichever of the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market or the OTC Bulletin Board, the
OTCQX Marketplace or the OTCQB Marketplace operated by the OTC Markets Group Inc. on which the Common Stock is listed or quoted
for trading on the date in question.

 

    	4

    	 

    

 

2.                 
Registration.

 

(a)               
On or prior to the Filing Deadline, the Company shall prepare and file with the Commission a Registration Statement covering
the resale of all of the Registrable Securities not already covered by an existing and effective Registration Statement for an
offering to be made on a continuous basis pursuant to Rule 415 or, if Rule 415 is not available for offers and sales of the Registrable
Securities, by such other means of distribution of Registrable Securities as the Holders may reasonably specify (the “Initial
Registration Statement”). The Initial Registration Statement shall be on Form S-1 (or such other form available to
register for resale the Registrable Securities as a secondary offering) and shall contain (except if otherwise required pursuant
to written comments received from the Commission upon a review of such Registration Statement) a “Plan of Distribution”
section substantially in the form attached hereto as Annex A (which may be modified to respond to comments, if any, provided
by the Commission). Notwithstanding the registration obligations set forth in this Section 2, in the event the Commission
informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for
resale as a secondary offering on a single registration statement, the Company agrees to promptly (i) inform each of the Holders
thereof and use its reasonable best efforts to file amendments to the Initial Registration Statement as required by the Commission,
and/or (ii) withdraw the Initial Registration Statement and file a new registration statement (a “New Registration
Statement”), in either case covering the maximum number of Registrable Securities permitted to be registered by the
Commission, on Form S-1 or such other form available to register for resale the Registrable Securities as a secondary offering;
provided, however, that prior to filing such amendment or New Registration Statement, the Company shall be obligated to use
its reasonable best efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance
with SEC Guidance. Notwithstanding any other provision of this Agreement, and subject to the payment of liquidated damages in accordance
with Section 2(c), if any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered
on a particular Registration Statement as a secondary offering (and notwithstanding that the Company used reasonable best efforts
to advocate with the Commission for the registration of all or a greater number of Registrable Securities), unless otherwise directed
in writing by a Holder as to its Registrable Securities, any such limitation imposed pursuant to this Section 2(a) shall
be allocated among the Registrable Securities of the Holders on a pro rata basis, subject to a determination by the Commission
that certain Holders must be reduced first based on the number of Registrable Securities held by such Holders. In the event the
Company amends the Initial Registration Statement or files a New Registration Statement, as the case may be, under clauses (i)
or (ii) above, the Company will use its reasonable best efforts to file with the Commission, as promptly as allowed by the Commission
or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on Form
S-1 or such other form available to register for resale those Registrable Securities that were not registered for resale on the
Initial Registration Statement, as amended, or the New Registration Statement (the “Remainder Registration Statements”).
No Holder shall be named as an “underwriter” in any Registration Statement without such Holder’s prior written
consent.

 

(b)              
The Company shall use its reasonable best efforts to cause each Registration Statement or any post-effective amendment thereto
to be declared effective by the Commission as soon as practicable and, with respect to the Initial Registration Statement or the
New Registration Statement, as applicable, no later than the Effectiveness Deadline (including, with respect to the Initial Registration
Statement or the New Registration Statement, as applicable, filing with the Commission a request for acceleration of effectiveness
in accordance with Rule 461 promulgated under the Securities Act within five Business Days after the date that the Company is notified
(orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be “reviewed,”
or will not be subject to further review and that the effectiveness of such Registration Statement may be accelerated), and shall
use its reasonable best efforts to keep each Registration Statement continuously effective under the Securities Act until the earliest
of (i) such time as all of the Registrable Securities covered by such Registration Statement have been publicly sold by the Holders;
(ii) such time as all Registrable Securities covered by such Registration Statement may be sold (A) without limitations as to volume
of sales, method of sale requirements or notice requirements pursuant to Rule 144 and (B) without the requirement for the Company
to be in compliance with the current public information requirement under Rule 144(c)(1); or (iii) the date that is one year following
the Closing Date (the “Effectiveness Period”). The Company shall, by 5:00 p.m. New York City time on
the first Trading Day after the Effective Date, file a final Prospectus with the Commission, as required by Rule 424(b).

 

    	5

    	 

    

 

(c)               
If: (i) the Initial Registration Statement is not filed with the Commission on or prior to the Filing Deadline, (ii) the
Initial Registration Statement or the New Registration Statement, as applicable, is not declared effective by the Commission (or
otherwise does not become effective) for any reason on or prior to the Effectiveness Deadline, or (iii) after its Effective Date
and except for the reasons as set forth in Section 3(h), (A) such Registration Statement ceases for any reason (including,
without limitation, by reason of a stop order or the Company’s failure to update the Registration Statement), to remain continuously
effective as to all Registrable Securities included in such Registration Statement or (B) the Holders are not permitted to utilize
the Prospectus therein to resell such Registrable Securities for any reason (other than due to a change in the “Plan of Distribution”
or the inaccuracy of any information regarding the Holders), in each case, at any time prior to the expiration of the Effectiveness
Period and for more than an aggregate of 20 consecutive calendar days or 45 calendar days (which need not be consecutive days)
during any 12-month period (other than as a result of a breach of this Agreement by a Holder, due to such Holder’s failure
to return a Selling Stockholder Questionnaire within the time period provided by Section 2(d)) (any such failure or breach
in clauses (i) through (iii) above being referred to as an “Event”, and, for purposes of clauses (i)
or (ii), the date on which such Event occurs, or for purposes of clause (iii), the date on which such 20 or 45 calendar day period
is exceeded, being referred to as an “Event Date”), then in addition to any other rights the Holders
may have hereunder or under applicable law: (x) within five Business Days after an Event Date relating to a failure in clause (i)
only, the Company shall pay to each Holder an amount in cash, as liquidated damages and not as a penalty, equal to 1.0% of the
aggregate purchase price paid by such Holder pursuant to the Purchase Agreement for any Registrable Securities held by such Holder
on such Event Date; and (y) on each 30-day anniversary (or pro rata portion thereof) following any Event Date (including, for the
avoidance of doubt, a failure in clause (i), in which case each 30-day anniversary shall be measured commencing on the 31st
day following such Event Date) until the date that the applicable Event is cured, the Company shall pay to each Holder an amount
in cash, as liquidated damages and not as a penalty, equal to 1.0% of the aggregate purchase price paid by such Holder pursuant
to the Purchase Agreement for any unregistered Registrable Securities then held by such Holder. The amounts payable pursuant to
the foregoing clauses (x) and (y) are referred to collectively as “Liquidated Damages”. The parties agree
that (1) the Company will not be liable for any Liquidated Damages under this Agreement with respect to any Registrable Securities
that are eligible for resale pursuant to Rule 144 without manner of sale or volume restrictions, (2) notwithstanding anything to
the contrary herein or in the Purchase Agreement, no Liquidated Damages shall be payable with respect to any period after the expiration
of the Effectiveness Period and in no event shall the aggregate amount of Liquidated Damages payable to a Holder exceed, in the
aggregate, 10.0% of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement, and (3) in no event shall
the Company be liable in any 30-day period for Liquidated Damages under this Agreement in excess of 1.0% of the aggregate purchase
price paid by the Holders pursuant to the Purchase Agreement. If the Company fails to pay any Liquidated Damages pursuant to this
Section 2(c) in full within five Business Days after the date payable, the Company will pay interest thereon at a rate of
2.0% per month (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from
the date such Liquidated Damages are due until such amounts, plus all such interest thereon, are paid in full. Notwithstanding
the foregoing, if two or more Events are occurring simultaneously, the Company shall only be liable for liquidated damages under
this Section 2(c) as if one Event is occurring. Unless otherwise specified in this Section 2(c), the Liquidated Damages
pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except
in the case of the first Event Date. Notwithstanding the foregoing, nothing shall preclude any Holder from pursuing or obtaining
any available remedies at law, specific performance or other equitable relief with respect to this Section 2(c) in accordance
with applicable law. The Company shall not be liable for Liquidated Damages under this Agreement as to any Registrable Securities
which are not permitted by the Commission to be included in a Registration Statement due solely to SEC Guidance from the time that
it is determined that such Registrable Securities are not permitted to be registered until such time as the provisions of this
Agreement as to the Remainder Registration Statements required to be filed hereunder are triggered, in which case the provisions
of this Section 2(c) shall once again apply, if applicable. In such case, the Liquidated Damages shall be calculated to
only apply to the percentage of Registrable Securities which are permitted in accordance with SEC Guidance to be included in such
Registration Statement. The Effectiveness Deadline for a Registration Statement shall be extended without default or Liquidated
Damages hereunder in the event that the Company’s failure to obtain the effectiveness of the Registration Statement on a
timely basis results from the failure of a Holder to timely provide the Company with information requested by the Company and necessary
to complete the Registration Statement in accordance with the requirements of the Securities Act.

 

    	6

    	 

    

 

(d)              
Each Holder agrees to furnish to the Company a completed Selling Stockholder Questionnaire not more than ten Trading Days
following the date of this Agreement. At least ten Trading Days prior to the first anticipated filing date of a Registration Statement
for any registration under this Agreement, the Company will notify each Holder of the information the Company requires from that
Holder other than the information contained in the Selling Stockholder Questionnaire, if any, which shall be completed and delivered
to the Company promptly upon request and, in any event, within three Trading Days prior to the applicable anticipated filing date.
Each Holder further agrees that it shall not be entitled to be named as a selling security holder in the Registration Statement
or use the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has returned to the Company
a completed and signed Selling Stockholder Questionnaire and a response to any requests for further information as described in
the previous sentence. Each Holder acknowledges and agrees that the information in the Selling Stockholder Questionnaire or request
for further information as described in this Section 2(d) will be used by the Company in the preparation of the Registration
Statement and hereby consents to the inclusion of such information in the Registration Statement.

 

    	7

    	 

    

 

3.                 
Registration Procedures.

 

In connection with the Company’s registration
obligations hereunder, the Company shall:

 

(a)               
Not less than five Trading Days prior to the filing of each Registration Statement and not less than one Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto (except for Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K and any similar or successor reports), (i) furnish to the Holder copies of such
Registration Statement, Prospectus or amendment or supplement thereto, as proposed to be filed, which documents will be subject
to the review of such Holder (it being acknowledged and agreed that if a Holder does not object to or comment on the aforementioned
documents within such five Trading Day or one Trading Day period, as the case may be, then the Holder shall be deemed to have consented
to and approved the use of such documents) and (ii) use reasonable best efforts to cause its officers and directors, counsel and
independent registered public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of the
respective counsel to each Holder, to conduct such review. The Company shall not file any Registration Statement or Prospectus
or any amendment or supplement thereto in a form to which a Holder reasonably objects in good faith; provided that, the
Company is notified of such objection in writing within the five Trading Day or one Trading Day period described above, as applicable.

 

(b)              
(i) Subject to Section 3(h), prepare and file with the Commission such amendments (including post-effective amendments)
and supplements to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such
Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period; (ii) cause
the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement),
and, as so supplemented or amended, to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably practicable to any
comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as
reasonably possible, provide the Holders true and complete copies of all correspondence from and to the Commission relating to
such Registration Statement that pertains to the Holders as “Selling Stockholders” but not any comments that would
result in the disclosure to the Holders of material and non-public information concerning the Company; and (iv) comply with the
provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by
a Registration Statement until such time as all of such Registrable Securities cease to be Registrable Securities or shall have
been disposed of (subject to the terms of this Agreement) in accordance with the intended methods of disposition by the Holders
thereof as set forth in such Registration Statement as so amended or in such Prospectus as so supplemented; provided, however,
that in the event the Company informs the Holders in writing that it does not satisfy the conditions specified in Rule 172 and,
as a result thereof, the Holders are required to deliver a Prospectus in connection with any disposition of Registrable Securities,
each such Holder shall be responsible for the delivery of the Prospectus to the Persons to whom such Holder sells any of the Registrable
Securities, and each Holder agrees to dispose of Registrable Securities in compliance with the “Plan of Distribution”
described in the Registration Statement and otherwise in compliance with applicable federal and state securities laws. In the case
of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including
pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous
report under the Exchange Act, the Company shall have incorporated such report by reference into such Registration Statement, if
applicable, or shall file such amendments or supplements with the Commission on the same day on which the Exchange Act report which
created the requirement for the Company to amend or supplement such Registration Statement was filed.

 

    	8

    	 

    

 

(c)               
Notify the Holders (which notice shall, pursuant to clauses (iii) through (v) hereof, be accompanied by an instruction to
suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably practicable via facsimile
or electronic mail (and, in the case of (i)(A) below, not less than one Trading Day prior to such filing) and no later than one
Trading Day following the day: (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration
Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a “review” of
such Registration Statement or post-effective amendment and whenever the Commission comments in writing on any Registration Statement
or any post-effective amendment thereto (in which case the Company shall provide to each of the Holders true and complete copies
of all comments that pertain to the Holders as “Selling Stockholders” or to the “Plan of Distribution”
and all written responses thereto, but not information that the Company believes would constitute material and non-public information);
and (C) with respect to each Registration Statement or any post-effective amendment thereto, when the same has become effective;
(ii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information that pertains to the Holders as “Selling Stockholders” or the
“Plan of Distribution”; (iii) of the issuance by the Commission or any other federal or state governmental authority
of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or
the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction,
or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time
that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made
in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in
the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any 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 case
of any Prospectus, form of prospectus or amendment or supplement thereto, in light of the circumstances under which they were made),
not misleading.

 

(d)              
Use reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any
of the Registrable Securities for sale in any jurisdiction, as soon as reasonably practicable.

 

    	9

    	 

    

 

(e)               
If requested by a Holder, furnish to such Holder, without charge, at least one conformed copy of each Registration Statement
and each amendment thereto and all exhibits to the extent requested by such Person (including those previously furnished or incorporated
by reference) promptly after the filing of such documents with the Commission; provided, that the Company shall have no
obligation to provide any document pursuant to this clause that is available on the Commission’s EDGAR system.

 

(f)               
Prior to any resale of Registrable Securities by a Holder, use its reasonable best efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification)
of such Registrable Securities for resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the
United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that the Company shall
not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company
to any material tax in any such jurisdiction where it is not then so subject, or file a general consent to service of process in
any such jurisdiction.

 

(g)              
If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to the Registration Statement, which certificates shall be free,
to the extent permitted by the Purchase Agreement and under law, of all restrictive legends, and to enable such Registrable Securities
to be in such denominations and registered in such names as any such Holders may reasonably request.

 

(h)              
Following the occurrence of any event contemplated by Section 3(c), as promptly as reasonably practicable (taking
into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature
disclosure of such event), prepare a supplement or amendment, including a post-effective amendment, to the affected Registration
Statements or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference,
and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus, form of prospectus or amendment or supplement thereto, in light of the circumstances
under which they were made), not misleading. If the Company notifies the Holders in accordance with clauses (iii) through (v) of
Section 3(c) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then
the Holders shall suspend use of such Prospectus. The Company will use its reasonable best efforts to ensure that the use of the
Prospectus may be resumed as promptly as is practicable. The Company shall be entitled to exercise its right under this Section
3(h) to suspend the availability of a Registration Statement and Prospectus for a period not to exceed 60 calendar days (which
need not be consecutive days) in any 12-month period without incurring liability for Liquidated Damages otherwise required pursuant
to Section 2(c).

 

    	10

    	 

    

 

(i)                
The Company may require each selling Holder to furnish to the Company a certified statement as to (i) the number of shares
of Common Stock beneficially owned by such Holder and any Affiliate thereof, (ii) any Financial Industry Regulatory Authority,
Inc. (“FINRA”) affiliations, (iii) any natural persons who have the power to vote or dispose of the common
stock, and (iv) any other information as may be requested by the Commission, FINRA or any state securities commission. During any
periods that the Company is unable to meet its obligations hereunder with respect to the registration of Registrable Securities
because any Holder fails to furnish such information within five Trading Days of the Company’s request, any Liquidated Damages
that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of
such delay shall be suspended as to such Holder only, until such information is delivered to the Company; provided, however,
if the failure of the Holder to furnish the required information results in the occurrence of an Event under Section 2(c),
any Liquidated Damages that are accruing at such time shall be tolled and any such Event that occurs as a result thereof shall
be suspended until such time as the Holder furnishes such information.

 

4.                 
Registration Expenses. All fees and expenses incident to the Company’s performance of or compliance with its
obligations under this Agreement (excluding any underwriting discounts and selling commissions and all legal fees and expenses
of legal counsel for any Holder) shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a
Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all
registration and filing fees, including, without limitation, fees and expenses (A) with respect to filings required to be made
with any Trading Market on which the Common Stock is then listed for trading and (B) with respect to compliance with applicable
state securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Company in connection
with Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable
Securities for investment under the laws of such jurisdictions as requested by the Holders; (ii) printing expenses, including,
without limitation, expenses of printing certificates for the Registrable Securities and of printing prospectuses if the printing
of prospectuses is reasonably requested by the Holders of a majority of the Registrable Securities included in the Registration
Statement; (iii) messenger, telephone and delivery expenses; (iv) fees and disbursements of counsel for the Company; (v) Securities
Act liability insurance, if the Company so desires such insurance; and (vi) fees and expenses of all other Persons retained by
the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall
be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by
this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities
on any securities exchange as required hereunder. In no event shall the Company be responsible for any underwriting, broker or
similar fees or commissions of any Holder or any legal fees or other costs of the Holders. Expenses of any Registration Statement
abandoned prior to the effectiveness thereof at the request of the Holders shall be borne by the Holders.

 

    	11

    	 

    

 

5.                 
Indemnification.

 

 

(a)               
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify,
defend and hold harmless each Holder, the officers, directors, agents and employees of each of them, each Person who controls any
such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors,
agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and
all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable
attorneys’ fees) and expenses (collectively, “Losses”), as incurred, that arise out of or are based
upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, Prospectus, form of prospectus
or amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose), or
arising out of or relating to any omission or alleged omission to state a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus, form of prospectus or amendment or supplement thereto, in light
of the circumstances under which they were made) not misleading, except to the extent, but only to the extent that (A) such untrue
statements, alleged untrue statements, omissions or alleged omissions are based solely upon information regarding such Holder furnished
in writing to the Company by such Holder, or to the extent that such information relates to such Holder or such Holder’s
proposed method of distribution of Registrable Securities and was reviewed and approved in writing by such Holder expressly for
use in the Registration Statement, Prospectus, form of prospectus or in any amendment or supplement thereto (it being understood
that each Holder has approved Annex A hereto for this purpose) or (B) in the case of an occurrence of an event of the type
specified in Section 3(c)(iii)-(v), related to the use by a Holder of an outdated or defective Prospectus after the Company
has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the
Advice contemplated and defined in Section 6(d) below, or (C) any such Losses arise out of the Holder’s (or any other
indemnified Person’s) failure to send or give a copy of the Prospectus or supplement (as then amended or supplemented), if
required pursuant to Rule 172 under the Securities Act (or any successor rule), to the Persons asserting an untrue statement or
alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities
to such Person, if such statement or omission was corrected in such Prospectus or supplement. The Company shall notify the Holders
promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated
by this Agreement of which the Company is aware.

 

(b)              
Indemnification by Holders. Each Holder shall, severally and not jointly, and notwithstanding any termination of
this Agreement, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls
the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers,
agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses,
as incurred, arising out of or are based solely upon (i) such Holder’s failure to comply with the prospectus delivery requirements
of the Securities Act, or (ii) any untrue or alleged untrue statement of a material fact contained in any Registration Statement,
Prospectus, form of prospectus or amendment or supplement thereto, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, form
of prospectus or amendment or supplement thereto, in light of the circumstances under which they were made) not misleading to the
extent, but only to the extent, that (A) such untrue statements or omissions are based upon information regarding such Holder furnished
in writing to the Company by such Holder expressly for use therein or (B) such information relates to such Holder or such Holder’s
proposed method of distribution of Registrable Securities and was reviewed and approved in writing by such Holder expressly for
use in any Registration Statement, Prospectus, form of prospectus or amendment or supplement thereto (it being understood that
the Holder has approved Annex A hereto for this purpose), or (C) in the case of an occurrence of an event of the type specified
in Section 3(c)(iii)-(v), such Losses are related to the use by such Holder of an outdated or defective Prospectus after
the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder
of the Advice contemplated in Section 6(d). In no event shall the liability of any selling Holder hereunder be greater in
amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise
to such indemnification obligation.

 

    	12

    	 

    

 

(c)               
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled
to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person
from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall
have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party
and the payment of all reasonable fees and expenses incurred in connection with the defense thereof; provided, that the
failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities
pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) that such failure shall have materially and adversely prejudiced
the Indemnifying Party.

 

An Indemnified Party shall have the right to
employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to pay such
fees and expenses; (ii) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ
counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (iii) the named parties to any such Proceeding
(including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall
have been advised by counsel that a conflict of interest would exist if the same counsel were to represent such Indemnified Party
and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects
to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and such counsel shall be at the expense of the Indemnifying Party); provided, that the Indemnifying
Party shall not be liable for the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified
Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its prior written
consent, which consent shall not be unreasonably withheld, delayed or conditioned. No Indemnifying Party shall, without the prior
written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that
are the subject matter of such Proceeding and such settlement does not include any non-monetary limitation on the actions of any
Indemnified Party or any of its affiliates or any admission of fault or liability on behalf of any such Indemnified Party.

 

    	13

    	 

    

 

Subject to the terms of this Agreement, all
fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating
or preparing to defend such Proceeding in a manner not inconsistent with this Section 5) shall be paid to the Indemnified
Party, as incurred, within 20 Trading Days of written notice thereof to the Indemnifying Party; provided, that the Indemnified
Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for
which such Indemnified Party is finally judicially determined to not be entitled to indemnification hereunder. The failure to deliver
written notice to the Indemnifying Party within a reasonable time of the commencement of any such action shall not relieve such
Indemnifying Party of any liability to the Indemnified Party under this Section 5, except to the extent that the Indemnifying
Party is materially and adversely prejudiced in its ability to defend such action.

 

(d)              
Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party,
shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate
to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions
that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party
and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue
or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or
relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a
party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 5 was available
to such party in accordance with its terms.

 

The parties hereto agree that it would not be
just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other
method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), (A) no Holder shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of the Registrable Securities
subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission and (B) no contribution will be made under circumstances where
the maker of such contribution would not have been required to indemnify the Indemnified Party under the fault standards set forth
in this Section 5. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

    	14

    	 

    

 

The indemnity and contribution agreements contained
in this Section 5 are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties and
are not in diminution or limitation of the indemnification provisions under the Purchase Agreement.

 

6.                 
Miscellaneous.

 

(a)               
Remedies. Subject to the limitations set forth elsewhere in this Agreement, in the event of a breach by the Company
or by a Holder of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to
being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled
to specific performance of its rights under this Agreement. The Company and each Holder agree that monetary damages would not provide
adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby
further agree that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

 

(b)              
No Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Neither the Company nor any of
its security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in a Registration
Statement other than the Registrable Securities and the Company shall not, prior to the initial Effective Date of the Initial Registration
Statement, enter into any new agreement providing any such right to any of its security holders. After the Closing Date, the Company
shall not file with the Commission a registration statement relating to an offering for its own account under the Securities Act
of any of its equity securities other than a Special Registration Statement until the earlier of (i) the date that the Initial
Registration Statement or New Registration Statement, as the case may be, is declared effective or (ii) the date that all Registrable
Securities are eligible for resale by non-affiliates without volume or manner of sale restrictions under Rule 144 and without the
requirement for the Company to be in compliance with the current public information requirements under Rule 144. For the avoidance
of doubt, the Company shall not be prohibited from preparing and filing with the Commission a registration statement relating to
an offering of Common Stock by existing stockholders of the Company under the Securities Act pursuant to the terms of registration
rights held by such stockholders or from filing amendments to registration statements filed prior to the date of this Agreement.

 

(c)               
Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the
Securities Act as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities
pursuant to the Registration Statement, and shall sell the Registrable Securities only in accordance with a method of distribution
described in the Registration Statement.

 

    	15

    	 

    

 

(d)              
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of
a notice from the Company of the occurrence of any event of the kind described in Section 3(c)(iii)-(v), such Holder will
forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing
(the “Advice”) by the Company that the use of the applicable Prospectus (as it may have been supplemented
or amended) may be resumed. The Company will use its reasonable best efforts to ensure that the use of the Prospectus may be resumed
as promptly as is practicable. The Company may provide appropriate stop orders to enforce the provisions of this paragraph.

 

(e)               
Piggy-Back Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration
Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a
registration statement relating to an offering for its own account or the account of others under the Securities Act of any of
its equity securities, other than on a Special Registration Statement, then the Company shall deliver to each Holder a written
notice of such determination and, if within seven days after the date of the delivery of such notice, any such Holder shall so
request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such
Holder requests to be registered, subject to customary underwriter cutbacks applicable to all holders of registration rights; provided,
however, that the Company shall not be required to register any Registrable Securities pursuant to this Section 6(e)
that are (i) eligible for resale pursuant to Rule 144 without the requirement for the Company to be in compliance with the current
public information required thereunder and without volume or manner-of-sale restrictions or (ii) the subject of a then-effective
Registration Statement. Notwithstanding the foregoing, if at any time after giving written notice of its intention to register
any securities and prior to the effective date of the registration statement filed in connection with such registration, the Company
shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give
written notice of such determination to each such Holder and, thereupon, (A) in the case of a determination not to register, shall
be relieved of its obligation to register any Registrable Securities pursuant to this Section 6(e) in connection with such
registration (but not from its obligation to pay expenses in accordance with Section 4 hereof), and (B) in the case of a
determination to delay registering, shall be permitted to delay registering any Registrable Securities being registered pursuant
to this Section 6(e) for the same period as the delay in registering such other securities.

 

(f)               
Amendments and Waivers. The provisions of this Agreement, including the provisions of this Section 6(f), may
not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless
the same shall be in writing and signed by the Company and the Holders of no less than a majority in interest of the then outstanding
Registrable Securities, and any amendment to any provision of this Agreement made in accordance with this Section 6(f) shall
be binding on all Holders. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of certain Holders and that does not directly or indirectly affect the rights
of other Holders may be given by Holders of at least a majority of the Registrable Securities to which such waiver or consent relates;
provided, that no amendment or waiver to any provision of this Agreement relating to naming any Holder or requiring the
naming of any Holder as an underwriter may be effected in any manner without such Holder’s prior written consent. Section
2(a) may not be amended or waived except by the written consent of each Holder affected by such amendment or waiver.

 

    	16

    	 

    

 

(g)              
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be delivered as set forth in the Purchase Agreement.

 

(h)              
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties and shall inure to the benefit of each Holder. Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. The Company may
not assign its rights (except by merger or in connection with another entity acquiring all or substantially all of the Company’s
assets) or obligations hereunder without the prior written consent of all the Holders of the then outstanding Registrable Securities.
Each Holder may assign its respective rights with respect to any or all of its Shares hereunder in the manner and to the Persons
as permitted under the Purchase Agreement; provided in each case that (i) the Holder agrees in writing with the transferee
or assignee to assign such rights and related obligations under this Agreement, and for the transferee or assignee to assume such
obligations, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment, (ii) the
Company is, within a reasonable time after such transfer or assignment, furnished with written notice of the name and address of
such transferee or assignee and the securities with respect to which such registration rights are being transferred or assigned,
(iii) at or before the time the Company received the written notice contemplated by clause (ii) of this sentence, the transferee
or assignee agrees in writing with the Company to be bound by all of the provisions contained herein, and (iv) the transferee is
an “accredited investor,” as that term is defined in Rule 501 of Regulation D.

 

(i)                
Execution and Counterparts. This Agreement may be executed in two or more counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same Agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties
need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery
of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
were the original thereof.

 

(j)                
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be determined in accordance with the provisions of the Purchase Agreement.

 

 

(k)              
Cumulative Remedies. Except as provided herein, the remedies provided herein are cumulative and not exclusive of
any other remedies provided by law.

 

(l)                
Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity
and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby
and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon
so agreeing, shall incorporate such substitute provision in this Agreement.

 

    	17

    	 

    

 

(m)            
Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall
not be deemed to limit or affect any of the provisions hereof. Any references to paragraphs, subparagraphs, sections or subsections
are to those parts of this Agreement, unless the context clearly indicates to the contrary. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will
be applied against any party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden
of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

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IN WITNESS WHEREOF, the parties have executed
this Registration Rights Agreement as of the date first written above.

 

	 	COMPANY
	 	 	 
	 	Capricor Therapeutics, Inc.,
	 	a Delaware corporation
	 	 	 
	 	By:  	 
	 	Name: Linda Marbán, Ph.D.
	 	Title: Chief Executive Officer

  

[SIGNATURE PAGES OF
holders FOLLOW]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
this Registration Rights Agreement as of the date first written above.

 

	 	HOLDER:
	 	 	 
	 	AUTHORIZED SIGNATORY
	 	 	 
	 	By:	 
	 	 
	 	Name:
	 	Title:
	 	 
	 	Address for Notice of Authorized Signatory:
	 	 
	 	c/o	                                                          
	 	 	 
	 	Street: 	 
	 	 	 
	 	City/State/Zip:  	 
	 	 	 
	 	Attention:  	 
	 	 	 
	 	Telephone No.:  	 
	 	 	 
	 	Facsimile No.:  	 
	 	 	 
	 	E-mail Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]