Document:

ecor-ex101_97.htm

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is dated as of May 14, 2020, between electroCore, Inc., a Delaware corporation (the “Company”), and Dentons U.S. LLP (“Purchaser”).

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and/or Rule 506 promulgated thereunder, the Company desires to issue and sell to Purchaser, and Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

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 Purchaser 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 have the meanings set forth in this Section 1.1:

“Accrued Fees” shall mean the aggregate unpaid fees due Dentons by the Company through April 30, 2020 represented by the invoice numbers set forth on Annex A hereto, which Accrued Fees total.

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

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

“Business Day” means any day except any Saturday, any 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” means the closing of the purchase and sale of the Shares pursuant to Section 2.1.

“Closing Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the parties thereto and all conditions precedent to the Company’s obligations to deliver the Shares have been satisfied or waived, but in no event later than the second (2nd) Trading Day following the date hereof.

“Commission” means the United States Securities and Exchange Commission.

 

 

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

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

 

“GAAP” shall have the meaning ascribed to such term in Section 3.1(h).

“Liens” means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

“Material Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

“Per Share Purchase Price” equals $0.99, 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 prior to the Closing Date.

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

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

“Prospectus” means the prospectus included in any Registration Statement, all amendments and supplements to such prospectus, including pre- and post-effective amendments to such Registration Statement and all other material incorporated by reference in such prospectus. 

“Purchaser Party” shall have the meaning ascribed to such term in Section 4.5.

“Registrable Securities” means the Shares issued at Closing. Notwithstanding the foregoing, the Shares shall cease to be Registrable Securities for all purpose hereunder upon the earlier to occur of the following: (A) the sale by any Person of such Shares to the public either pursuant to a registration statement under the Securities Act or Rule 144 (in which case, only such Shares sold shall cease to be Registrable Securities) or (B) such Shares become eligible for sale by non-affiliates without volume or manner-of-sale restrictions pursuant to Rule 144, without the requirement for the Company to be in compliance with the current public information requirement under Rule 144 as determined in good faith by the Company.

2

114715764.4

 

 

“Registration Statement” means a shelf registration statement of the Company that covers the Registrable Securities pursuant to the provisions of this Agreement to be filed with the Commission under the rules and regulations promulgated under the Securities Act, including the related Prospectus, amendments and supplements to such registration statement, including pre- and post-effective amendments, and all exhibits and all material incorporated by reference in such registration statement.

“Required Approvals” shall have the meaning ascribed to such term in Section 3.1(d).

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

“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(f).

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

“Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include locating and/or borrowing shares of Common Stock). 

 “Subscription Amount” means $1,548,701.

 “Subsidiary” means any subsidiary of the Company as set forth on Exhibit 21.1 to the Annual Report on Form 10-K filed with the Commission on March 30, 2020.

“Trading Day” means a day on which the principal Trading Market is open for trading.

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any successors to any of the foregoing).

“Transaction Documents” means this Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

“Transfer Agent” means Broadridge Corporate Issuer Solutions, Inc., the current transfer agent of the Company, with a mailing address of 1717 Arch Street, Suite 1300, Philadelphia, Pennsylvania 19103, and any successor transfer agent of the Company.

3

114715764.4

 

 

ARTICLE II.
PURCHASE AND SALE

2.1Closing.  On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchaser agrees to purchase, an aggregate number of shares of Common Stock equal to the Subscription Amount divided by the Per Share Purchase Price (the “Shares”).  The Company and Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing.  Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of the Company or such other location as the parties shall mutually agree.  

2.2Deliveries; Satisfaction of Accrued Fees; Credit.

(a)On or prior to the Closing Date, the Company shall deliver or cause to be delivered to Purchaser the following:

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

(ii)a copy of irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver the Shares in book entry form registered in the name of Purchaser.

(b)On or prior to the Closing Date, Purchaser shall deliver or cause to be delivered to the Company this Agreement duly executed by Purchaser.

(c)As soon as is practicable after the Closing Date, the Company will deliver to Purchaser by wire transfer $250,000.

(d)Upon receipt by Purchaser of the Shares pursuant to subsection (b) above and the payment of the amount set forth in subsection (c) above, (i) the Accrued Fees shall be deemed paid and satisfied in full, and (ii) Purchaser shall credit the Company with $150,000 toward future legal fees.

2.3Closing Conditions. 

(a)The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

(i)the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Purchaser contained herein (unless as of a specific date therein in which case they shall be accurate as of such date); 

(ii)all obligations, covenants and agreements of Purchaser required to be performed at or prior to the Closing Date shall have been performed; and

4

114715764.4

 

 

(iii)the delivery by Purchaser of the items set forth in Section 2.2(b) of this Agreement.

(b)The obligations of Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

(i)the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

(ii)all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed; and

(iii)the delivery by the Company of the items set forth in Section 2.2(a) and (c) of this Agreement.

ARTICLE III.
REPRESENTATIONS AND WARRANTIES

3.1Representations and Warranties of the Company.  Except as set forth in the SEC Reports, which SEC Reports shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the SEC Reports, the Company hereby makes the following representations and warranties to Purchaser:

(b)Organization and Qualification.  The Company and each of the 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 (if a good standing concept exists in such jurisdiction), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  Neither the Company nor any Subsidiary is in material violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents.  Each of the Company and the 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 (if a good standing concept exists in such jurisdiction), except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”); provided, however, that in no event shall any of the following individually or taken together, be deemed to constitute, or be taken into account in determining whether a Material Adverse Effect has occurred or could be reasonably expected to occur: (i) any change in the 

5

114715764.4

 

 

Company’s stock price or trading volume on the Trading Market, (ii) any failure by the Company to meet internal or analyst revenue, earnings or other financial projections or expectations for any period, (iii) any effect that results from changes affecting the industry in which the Company operates, or the United States economy generally, or any effect that results from changes affecting general worldwide economic or United States or global capital market conditions, (iv) any effect caused by the announcement of the transactions contemplated by this Agreement or the other Transaction Documents, or the identity of the Purchaser or any of its Affiliates as the Purchaser in connection with the transactions contemplated by this Agreement, (v) political conditions, including acts of war or terrorism or natural disasters or any pandemic or epidemic, including COVID-19, (vi) any action taken or omitted to be taken by the Company at the written request or with the prior written consent of the Purchaser, or (vii) changes in any law, rule, regulation, order, judgment, injunction, decree or other binding directive issued by any governmental, judicial or self-regulatory entity or interpretations or enforcement thereof. No Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

(c)Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals.  This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (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 this Agreement and the other Transaction Documents to which it is a party, the issuance and sale of the Shares and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary 

6

114715764.4

 

 

debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, 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), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

(e)Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, 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 or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) application(s) to each applicable Trading Market for the listing of the Shares for trading thereon in the time and manner required thereby, and (iii) if applicable, the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

(f)Issuance of the Shares.  The Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.  The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement. 

(g)SEC Reports; Financial Statements.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years 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”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act. The 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.  Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes 

7

114715764.4

 

 

required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries 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 statements, to normal, immaterial, year-end audit adjustments.

(h)Acknowledgment Regarding Purchaser’s Purchase of Shares.  The Company acknowledges and agrees that Purchaser is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby.  The Company further acknowledges that Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by Purchaser or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to Purchaser’s purchase of the Shares.  The Company further represents to 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.

(i)No Disqualification Events. With respect to the Shares to be offered and sold hereunder in reliance on Rule 506 under the Securities Act, 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, or, to the knowledge of the Company, any beneficial owner (as that term is defined in Rule 13d-3 under the Exchange Act) 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), and has furnished to the Purchaser a copy of any disclosures provided thereunder.

3.2Representations and Warranties of the Purchaser.  Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they shall be accurate as of such date):

(a)Organization; Authority.  Purchaser is an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of Purchaser.  Each Transaction Document to which it is a party has 

8

114715764.4

 

 

been duly executed by Purchaser, and when delivered by Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (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.

(b)Understandings or Arrangements.  Purchaser is acquiring the Shares as principal for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares (this representation and warranty not limiting Purchaser’s right to sell the Shares in compliance with applicable federal and state securities laws).  Specifically, Purchaser understands that the Shares are “restricted securities” and have not been registered under the Securities Act or any other applicable state securities law.

(c)Purchaser Status.  At the time Purchaser was offered the Shares, it was, and as of the date hereof it is, either: (i) an “accredited investor” as defined in Rule 501(a) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. 

(d)Experience of Purchaser.  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.  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.

(e)Access to Information. Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including all exhibits and schedules thereto) and the SEC Reports 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 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.  

(f)Confidentiality.  Other than to Purchaser’s representatives, including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). 

(g)No General Solicitation. Purchaser is not purchasing the Shares as a result of any registration statement, advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over 

9

114715764.4

 

 

television or radio or presented ay any seminar or any other general solicitation or general advertisement.

ARTICLE IV.
OTHER AGREEMENTS OF THE PARTIES

4.1Removal of Legends.  

(a)The Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Shares other than pursuant to an effective registration statement with a current prospectus, or to the Company, the Company may require the transferor thereof to provide to the Company an opinion of counsel at the expense of the transferor, 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. 

(b)The Purchaser agrees, so long as is required by this Section 4.1, book entry notations evidencing the Shares shall bear a restrictive legend, substantially in the following form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) AND ARE “RESTRICTED SECURITIES” AS DEFINED IN RULE 144 PROMULGATED UNDER THE ACT. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE DISTRIBUTED OR TRANSFERRED EXCEPT (i) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR (ii) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT, AND, IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY AND DEPOSITARY HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO EACH OF THEM THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE ACT.

(c)The book entry ledger of the transfer agent evidencing the Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) while a registration statement with a current prospectus covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Shares pursuant to Rule 144, (iii) if 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 Shares and without volume or manner-of-sale restrictions or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) (“Effective Date”). The Company shall cause its counsel to issue a legal opinion to the transfer agent promptly after the Effective Date if required by the transfer agent to effect the removal of the legend hereunder. If such Shares may be sold under Rule 144 without limitation or restriction and the Company is then in compliance with the current public information required under Rule 144, or if the Shares may be sold 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 Shares or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the 

10

114715764.4

 

 

Commission) then such Shares shall be issued free of all legends. The Company agrees that following the Effective Date and at such time as such legend is no longer required under this Section 4.1(c), it will, no later than the number of Trading Days comprising the Standard Settlement Period (as defined below) following the delivery by Purchaser to the Company or the transfer agent of a certificate representing Shares or book entry position representing the shares, issued with a restrictive legend (such date, the “Legend Removal Date”), deliver or cause to be delivered to Purchaser a certificate or book entry position 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. Certificates for Shares subject to legend removal hereunder shall be transmitted by the transfer agent to Purchaser by crediting the account of Purchaser’s prime broker with the Depository Trust Company System as directed by Purchaser. “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Shares as in effect on the date of delivery of a certificate representing the Shares.

4.2Furnishing of Information.  

(a)Until the earlier of (i) the date that Purchaser no longer owns any shares or (ii) the two year anniversary of the Closing Date, the Company shall use reasonable efforts to timely file all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act; provided, however that this covenant shall not prevent a sale, merger or similar transaction involving the Company.  

4.3Integration.  The Company shall use reasonable efforts not to sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction. 

4.4Securities Laws Disclosure; Publicity.  The Company, if required under applicable rules, shall file a Current Report on Form 8-K (or other appropriate form under the Exchange Act), including this Agreement as an exhibit thereto, with the Commission within the time required by the Exchange Act.  

4.5Indemnification of Purchaser.   Subject to the provisions of this Section 4.5, the Company will indemnify and hold 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 Person who controls Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (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) of such controlling persons (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 

11

114715764.4

 

 

and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is solely based upon a material breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which is finally judicially determined to constitute fraud, gross negligence or willful misconduct). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party.  Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (x) the employment thereof has been specifically authorized by the Company in writing, (y) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (z) in such action there is, in the reasonable opinion of counsel to the Company, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.  The Company will not be liable to any Purchaser Party under this Agreement (1) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (2) to the extent, but only to the extent that a loss, claim, damage or liability 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 the other Transaction Documents. The indemnification required by this Section 4.5 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

4.6Listing of Common Stock. The Company hereby agrees to use commercially reasonable efforts to maintain the listing or quotation of the Common Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the Company shall apply to list or quote all of the Shares on such Trading Market and promptly secure the listing of all of the Shares on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include in such application all of the Shares, and will take such other action as is necessary to cause all of the Shares to be listed or quoted on such other Trading Market as promptly as possible.  The Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market.  

12

114715764.4

 

 

4.7Form D; Blue Sky Filings.  The Company agrees, if required by applicable law or rules, to timely file a Form D with respect to the Shares as required under Regulation D and to provide a copy thereof, promptly upon request of Purchaser.  

4.8Certain Transactions and Confidentiality. Purchaser covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the Current Report on Form 8-K as described in Section 4.4.  Purchaser covenants that so long as the Purchaser holds any Shares purchased pursuant to this Agreement, Purchaser shall not engage in Short Sales of the Company’s securities.  Purchaser covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the Current Report on Form 8-K as described in Section 4.4, Purchaser will maintain the confidentiality of the existence and terms of this transaction.  

4.9Registration Statement. 

(a)The Company shall use commercially reasonable efforts to file a Registration Statement on Form S-3 (or any successor to Form S-3) or if the Company is not eligible to use Form S-3 a shelf registration on Form S-1 (or any successor to Form S-1) as soon as is practicable after the date hereof covering the resale of all of the Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act. Notwithstanding the foregoing, this period shall be tolled during any period in which the Company, in good faith, relies on the conditional relief set forth in Release No. 34-88465 published by the Commission on March 25, 2020 (the “Order”) and/or any subsequent order or release further modifying, amending, replacing, or extending the Order. Purchaser shall reasonably cooperate in connection with the process of registering the Shares under any Registration Statement and provide any information reasonably requested by the Company in connection therewith, including for use in the Registration Statement. 

(b)The Company shall use commercially reasonable efforts to have any Registration Statement declared effective as soon as practicable, and shall use its commercially reasonable efforts to keep any such Registration Statement continuously effective under the Securities Act until the earlier of (i) such time as all of the Registrable Securities covered by such Registration Statement have been sold by the Persons holding such Registrable Securities or (ii) the date that all Registrable Securities covered by such Registration Statement may be sold by non-affiliates without volume or manner-of-sale restrictions pursuant to Rule 144, without the requirement for the Company to be in compliance with the current public information requirement under Rule 144 as determined in good faith by the Company. The Company shall use commercially reasonable efforts to have any such Registration Statement declared effective under the Securities Act no later than (A) 15 days following the filing of the Registration Statement in the event of a “no review” by the Commission, (B) the 60th day following the filing of the Registration Statement in the event of a “limited review” by the Commission, or (C) the 120th  day following the filing of the Registration Statement in the event of a “full review” by the Commission (the number of days in (A), (B), and (C) each being a “Review Period” depending on the nature of the Commission’s review, and provided, for any days during the period following the initial filing of the Registration 

13

114715764.4

 

 

Statement and prior to the effectiveness of the Registration Statement that the Commission is unable to review or declare effective registration statements filed with the Commission due to a shutdown or partial shutdown of the U.S. government (such days, the “Toll Days”), the applicable number of days in such Review Period shall be extended by the number of Toll Days). The Company shall notify Purchaser by facsimile or e-mail as promptly as practicable after any Registration Statement is declared effective and shall simultaneously provide the Purchaser with copies of any related Prospectus to be used in connection with the sale or other disposition of the securities covered thereby.    

(c)The Company may suspend the use of any Prospectus included in any Registration Statement contemplated by this Agreement in the event the Company determines in good faith that such suspension is necessary to (A) delay the disclosure of material non-public information concerning the Company, the disclosure of which at the time is not, in the good faith opinion of the Company, in the best interests of the Company or (B) amend or supplement the Registration Statement or the related Prospectus so that such Registration Statement or Prospectus shall not include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the case of the Prospectus in light of the circumstances under which they were made, not misleading (a “Permitted Delay”); provided that the Company shall promptly (a) notify Purchaser in writing of the commencement of and the reasons for any Permitted Delay, (b) advise the Purchaser in writing to cease all sales under the Registration Statement until the end of the Permitted Delay, and (c) use commercially reasonable efforts to terminate a Permitted Delay as soon as practicable.

(d)Purchaser may not assign its rights under this Section 4.9 unless such assignment is approved in writing by the Company, in the Company’s sole discretion. 

ARTICLE V.
MISCELLANEOUS

5.1Termination.  This Agreement may be terminated by Purchaser if the Closing has not been consummated on or before the fifth (5th) Trading Day following the date hereof; provided, however, that no such termination will affect the right of any party to sue for any breach by any other party (or parties).

5.2Fees and Expenses.  Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.  The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company), stamp taxes and other taxes and duties levied in connection with the delivery of any Shares to Purchaser.

14

114715764.4

 

 

5.3Entire 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 thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

5.4Notices.  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 time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd)Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service 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 set forth on the signature pages attached hereto. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

5.5Amendments; Waivers.  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 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 any party to exercise any right hereunder in any manner impair the exercise of any such right.

5.6Headings.  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.

5.7Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of Purchaser (other than by merger or operation of law).  Purchaser may assign any or all of its rights under this Agreement to any Person to whom Purchaser assigns or transfers any Shares, provided that such transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions of the Transaction Documents that apply to Purchaser.

5.8No 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 as otherwise set forth in Section 4.5.

15

114715764.4

 

 

5.9Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the state of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the state of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the state of Delaware. Any dispute relating hereto shall be heard first in the Delaware Court of Chancery, and, if applicable, in any state or federal court located in of Delaware in which appeal from the Court of Chancery may validly be taken under the laws of the State of Delaware (each a “Chosen Court” and collectively, the “Chosen Courts”), and the parties agree to the exclusive jurisdiction and venue of the Chosen Courts. The parties further agree that any Proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby or by any matters related to the foregoing (the “Applicable Matters”) shall be brought exclusively in a Chosen Court, and that any Proceeding arising out of this Agreement or any other Applicable Matter shall be deemed to have arisen from a transaction of business in the state of Delaware, and each of the parties hereby irrevocably consents to the jurisdiction of such Chosen Courts in any such Proceeding and irrevocably and unconditionally waives, to the fullest extent permitted by law, any objection that party may now or hereafter have to the laying of the venue of any such Proceeding in any such Chosen Court or that any such Proceeding brought in any such Chosen Court has been brought in an inconvenient or improper forum. The parties further covenant not to bring a Proceeding with respect to the Applicable Matters (or that could affect any Applicable Matter) other than in such Chosen Court and not to challenge or enforce in another jurisdiction a judgment of such Chosen Court. Process in any such Proceeding may be served on any Person with respect to such Applicable Matters anywhere in the world, whether within or without the jurisdiction of any such Chosen Court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 5.4 shall be deemed effective service of process on such party. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

5.10Survival.  The representations and warranties contained herein shall survive the Closing for a period ending on the one-year anniversary of the Closing Date.

5.11Execution.  This Agreement may be executed in multiple counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart.  In the event that any signature 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 page were an original thereof.

5.12Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or 

16

114715764.4

 

 

substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

5.13Replacement of Shares.  If any certificate or 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 (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction.  The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Shares.

5.14Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, Purchaser 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 contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at law would be adequate.

5.15Payment Set Aside.  To the extent that the Company makes a payment or payments to Purchaser pursuant to any Transaction Document or 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.

5.16Saturdays, Sundays, Holidays, etc.If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

5.17Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be 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.

17

114715764.4

 

 

5.18Transactions With Counsel.Purchaser acts as counsel to the Company on certain matters and hereby advises the Company that certain rules of professional conduct require that the terms of this transaction be fair and reasonable to the Company and be fully disclosed and transmitted to the Company, and that this Agreement and prior correspondence relating hereto are intended to satisfy that requirement.  The Company acknowledges that it has been advised, and provided with the reasonable opportunity, to seek the advice of independent counsel (which may include in-house counsel such as its Chief Compliance Officer) with respect to the transactions contemplated hereunder, and the Company, by signing below, provides its informed consent to the essential terms of the transactions contemplated hereunder and that Purchaser is not acting as counsel to the Company in this transaction.

	

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

 

		
	
ELECTROCORE, INC. 

 
	
Address for Notice:

	
By:/s/ Daniel Goldberger

     Name: Daniel Goldberger

     Title: Chief Executive Officer

 

 

 
	
electroCore, Inc.

150 Allen Road, Suite 201

Basking Ridge,  NJ 07920

Attention: Chief Executive Officer

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

18

114715764.4

 

 

[PURCHASER SIGNATURE PAGES TO ECOR SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned has caused this Securities Purchase Agreement to be duly executed by its respective authorized signatory as of the date first indicated above.

Name of Purchaser: Dentons U.S. LLP

Signature of Purchaser or Authorized Signatory: /s/ John L. Cleary II 

Name of Authorized Signatory (if applicable): John L. Cleary II

Title of Purchaser or Authorized Signatory: Partner

Email Address of Purchaser or Authorized Signatory: john.cleary@dentons.com

Facsimile Number of Purchaser or Authorized Signatory: (973) 912-7199

Address for Notice to Purchaser:101 JFK Parkway, 4th Floor

c/o Dentons U.S. LLP

Short Hills, NJ 07078

 

Shares Issued to Purchaser:

 

Shares:  1,564,345

 

EIN Number (if applicable): 

 

 

[SIGNATURE PAGES CONTINUE] 

19

114715764.4Exhibit 10.3

 

[*] Certain information in this document has been omitted from this exhibit because it is both (i) not
material and (ii) would be competitively harmful if publicly disclosed.

 

License Agreement

 

THIS EXCLUSIVE LICENSE AGREEMENT
(the “Agreement”) is effective as of February 27, 2013 (the “Effective Date”), and is by and between the
University of Cincinnati, a state institution of higher education organized under Section 3361 of the Ohio Revised Code, having
an address at 51 Goodman Dr., Suite 240, Cincinnati, OH 45221-0829, (“UC”) and Chelexa BioSciences, Inc., with an address
at 239 South Street, Hopkinton, MA 01748 (the “Company”).

 

In consideration of the promises and mutual
covenants contained herein, and intending to be legally bound hereby, UC and the Company (individually referred to as a “Party”
and collectively referred to as the “Parties”) hereto agree to the following terms and conditions:

 

Article 1. Definitions

 

For all purposes of this Agreement the
following terms, as used herein, will have the meanings specified below:

 

		1.1	“Affiliate” means any corporation or other business entity that is owned and/or
controlled by the Company. Unless otherwise specified, the term Company includes Affiliates.

 

		1.2	“Invention” means any innovation, improvement, development, discovery, and information
relating thereto, whether or not written or otherwise fixed in any form or medium, regardless of the media on which it is contained
and whether or not patentable or copyrightable as described in UC Disclosure #[*], “[*].”

 

		1.3	“Patent Rights” means any patent applications based on the Invention, and any
foreign counterparts thereof, as well as all continuations, continuations-in-part, divisions, and renewals thereof, all patents
which may be granted thereon, and all reissues, reexaminations, extensions, patents of additions and patents of importation thereof,
including specifically the following nendina atent applications:

 

	Jurisdiction	 	Serial #	 	Title
	[*]	 	[*]	 	[*]
	[*]	 	[*]	 	[*]
	[*]	 	[*]	 	[*]
	[*]	 	[*]	 	[*]
	[*]	 	[*]	 	[*]

 

		1.4	“Know-how” means any and all proprietary information, methods, processes, techniques
and data, which are necessary or useful for the manufacture, use or sale of any Licensed Product (as defined below) and which comprise
Confidential Information (as defined herein in Article 10, below).

 

		1.5	“Invention Rights” means collectively and individually Patent Rights and Know-How.

 

		1.6	“Licensed Product” means any and all products and processes, (i) in the jurisdiction
where such products and processes are being manufactured, used, offered for sale, sold or imported which could not be manufactured,
used, offered for sale, sold or imported without infringing one or more claims of the Patent Rights, or (ii) are manufactured,
used or sold, in whole or in part, through the use of the Invention Rights.

 

     

     

    

 

		1.7	“Net Sales” means the aggregate gross revenues derived by the Company from the
sale of the Licensed Products to, and practice of the Licensed Product for, an unaffiliated third party in an arm’s length
transaction, less credits granted on account of price adjustments, recalls, rejections or return of items previously sold, and
excises, sales taxes, duties or other taxes imposed upon and paid with respect to such sales.

 

		1.8	“Non-Royalty Sublicense Income” means sublicense issue fees, sublicense maintenance
fees, sublicense milestone payments, and similar non-royalty payments made by sublicensee to Company on account of sublicenses
pursuant to this Agreement.

 

		1.9	“Field” means inclusive of all commercial applications in the Use of Zinc Chelators
to Inhibit Biofilm Formation.

 

		1.10	“Territory” means inclusive of all global commercial markets.

 

		1.11	“Term” means the period beginning on the Effective Date and extending to the
earlier of May 31, 2025 or the last to expire patent in the Patent Rights. Company has first right of refusal to renew “Term”
if Company so decides.

 

		1.12	“Fiscal Year” means the twelve (12) month period from January 1 to December
31.

 

		1.13	“Calendar Quarter” means the three (3) months ending on the last day of March,
June, September and December of each calendar year as defined in Fiscal Year.

 

		1.14	“Enabling Technology” means any and all additional licenses and rights which
are not licensed to the Company under this Agreement and which are required by the Company for the exercise of the Patent Rights
or the manufacture of the Licensed Products hereunder.

 

		1.15	Progress Report” means a written report describing the Company’s progress on
operations, research and development, clinical requirements, regulatory approvals, manufacturing, sublicensing, marketing and sales
during the most recent Fiscal Year and plans for the forthcoming year.

 

Article 2. Grant
of License

 

		2.1	Grant. UC hereby grants to the Company, during the Term, a royalty-bearing exclusive license
to UC’s rights to make, use, have made, import, offer for sale, and sell the Licensed Product within the Territory in the
Field. Such license shall include the right to grant sublicenses within the Territory in the Field.

 

		2.2	Reservation of Rights. The license granted herein is subject to the rights, if any, of the
United States government and to a reservation of the right of UC to use the Invention Rights for internal, academic research and
educational purposes.

 

    2 

     

    

 

Article 3. Sublicenses

 

		3.1	UC also grants to the Company the right to issue exclusive and nonexclusive sublicenses (with the
right to further sublicense) to third parties to make, use, have made, import, offer for sale, and sell the Licensed Product within
the Territory and the Field in which the Company has exclusive rights under this Agreement.

 

		3.2	Each sublicense granted by the Company or its sublicensees under this Agreement shall be embodied
in a written document and all relevant terms of this Agreement shall apply to each such sublicense to the same extent as they apply
to the Company unless otherwise agreed to in writing by UC. Among other things, the Company and its sublicensees shall include
reporting and audit provisions substantially similar to the reporting and audit requirements placed on the Company under this Agreement.

 

		3.3	The Company and its sublicensees shall make commercially reasonable efforts to enforce the terms
and conditions of any sublicense agreements. Copies of all sublicense agreements shall be provided to UC within thirty (30) days
of execution of each sublicense. The Company hereby assumes responsibility for the performance of all obligations so imposed on
its sublicensees by this Agreement and will itself pay and account to UC for all payments and reports due under this Agreement
which may accrue by reason of the operations of each sublicense, as if it were the Company’s own commercial activity.

 

		3.4	The Company and its sublicensees shall provide, in all sublicenses granted by it under this Agreement
that the Company’s interest in such sublicenses shall terminate upon termination of this Agreement as provided in Article
12.5.

 

Article 4. Fees and
Royalties

 

		4.1	Annual License Maintenance Fee. Company shall pay to UC the sum of [*] ([*]USD) on May 1,
2013, on the one year anniversary after the Effective Date and continuing annually on each anniversary date of the Effective Date
for the Term.

 

		4.2	Royalty. The Company shall pay to UC during the Term a royalty of [*] ([*]%) of Net Sales.

 

		4.3	Non-Royalty Sublicensing Income. Company shall pay to UC [*] ([*]%) of all Non-Royalty Sublicense
Income.

 

		4.4	On Net Sales of Licensed Products sold or disposed by a sublicensee of the Company or any sublicensee
of a Company sublicensee, Company must pay to UC an earned royalty of [*]([*]%) as if these were Company’s Net Sales. All
royalties received in excess of royalties due to UC under this Article 4.4 belong to Company.

 

		4.5	Minimum Royalty. Starting with the Fiscal Year beginning on January 1, 2013 and for each
Fiscal Year thereafter during the Term, the total annual royalty payable under Article 4.2 shall amount to a minimum of [*] dollars
($[*]). Should the actual running royalties paid under Article 4.2 fall short of this minimum amount, the difference shall be paid
to UC by the Company when the royalty payment for the Fiscal Year is due.

 

		4.6	Milestone Payments. The Company agrees to make the following payments to UC upon the first
occurrence of each milestone event due to the actions of the Company or the Company’s sublicensee related to a Licensed Product:

 

	Event	 	Payment
	Issuance of the first Patent	 	$[*]
	First sale of a Licensed Product by Company	 	$[*]

 

    3 

     

    

 

Article 5. Diligence

 

		5.1	The Company agrees to work diligently in the development, production and marketing of Licensed
Products within the global market and the respective discipline of biofilm prevention utilizing the Zinc Chelator DTPA and will
for such purpose make available adequate resources and qualified personnel.

 

		5.2	The Company shall use diligent efforts to effect introduction of the Company (or those of its sublicensees)
branded products into commercial use as quickly as is reasonably possible, consistent with sound and reasonable business practices
and judgment; thereafter, until the expiration of this Agreement, the Company and its sublicensees shall endeavor to keep branded
products reasonably available to the public.

 

		5.3	At any time after one (1) year from the Effective Date of this Agreement, UC may, at its sole option,
terminate or render this license nonexclusive if, in UC’s judgment, the Progress Reports furnished by the Company do not
demonstrate that the Company:

 

		5.3.1	has put the licensed subject matter into commercial use in the global market (based on regulatory
approval per country) hereby licensed, directly or through a sublicensee, and is keeping the licensed subject matter reasonably
available to the public, or

 

		5.3.2	is engaged in manufacturing, marketing or sublicensing activity which is reasonably expected to
achieve the goals of Article 5.2.

 

Article 6. Warranty

 

		6.1	Nothing in this Agreement shall be construed as:

 

		6.1.1	A warranty or representation by UC as to the validity or scope of any of the Invention Rights;

 

		6.1.2	An obligation of UC to bring or prosecute actions or suits against third parties;

 

		6.1.3	A grant of rights to the Company to use any trademark or the name of UC in advertising, publicity
or otherwise; or

 

		6.1.4	Granting rights to the Company under rights of UC other than the Invention Rights, by implication,
estoppel, or otherwise, regardless of whether such other UC rights are dominant or subordinate to any of the Invention Rights.

 

		6.2	Except as expressly set forth in this Agreement, UC MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES
OF ANY KIND, EITHER EXPRESS OR IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATEVER WITH RESPECT TO THE USE, SALE OR OTHER DISPOSITION
BY COMPANY OR ITS VENDEES OR OTHER TRANSFEREES OF PRODUCTS INCORPORATING OR MADE BY USE OF INVENTION RIGHTS LICENSED UNDER THIS
AGREEMENT OR INFORMATION, IF ANY, FURNISHED UNDER THIS AGREEMENT. SUCH INVENTION RIGHTS AND INFORMATION ARE PROVIDED AS IS, WITHOUT
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR WARRANTY THAT THE USE WILL NOT INFRINGE ANY PATENT, COPYRIGHT
OR TRADEMARK OR OTHER RIGHTS, OR ANY OTHER WARRANTY, EXPRESS OR IMPLIED.

 

    4 

     

    

 

Article 7. Records,
Reports and Payments

 

		7.1	The Company shall report to UC the date of first sale of a Licensed Product by Company or a sublicensee
within thirty (30) days following that sale.

 

		7.2	No later than sixty (60) days after the end of each Fiscal Year, the Company shall provide to UC
a written annual Progress Report. If multiple technologies are covered by the license granted hereunder, the Progress Report shall
provide the information set forth above for each technology. If UC believes in good faith that progress is not equal to that anticipated
in the previous year’s plan, the Company shall explain the reasons for the difference and prepare and present a modified
business plan for UC’s review and approval. The Company shall also provide any reasonable additional data UC requires to
evaluate the Company’s performance.

 

		7.3	The Company shall deliver to UC within sixty (60) days after the end of each Calendar Quarter a
written report showing its sales of the Licensed Product as well as any payments from sublicensees and its computation of remuneration
to UC due under this Agreement for such Calendar Quarter and at the same time make the payment of the remuneration due. If it had
no sale of any Licensed Product by Company or a sublicensee the report shall so state. All Net Sales shall be segmented in each
such report according to each UC technology in the Licensed Product. For payments by sublicensees, the report shall segment the
payments by any applicable UC technology in the sublicensed product. The report shall include the rates of exchange used for conversion
to US Dollars (USD) from the currency in which such sales were made.

 

		7.3.1	In cases of sales outside the USA, royalty payments shall be made in net US Dollars. The amounts
shall be calculated using currency exchange rates as set forth in The Wall Street Journal on the last day of the Calendar Quarter
for which remuneration is due as noted in 7.3.

 

		7.3.2	All payments due to UC from the Company shall be made without deduction for taxes, assessments,
or other charges of any kind which may be imposed on Company by the government of the country where the transactions occur or any
political subdivision thereof with respect to any amounts payable to UC pursuant to this Agreement, and such taxes, assessments,
or other charges shall be assumed by the Company. Late payments shall be subject to an interest charge of the lesser of one percent
(1%) per month or the maximum allowed by law.

 

		7.3.3	The Company shall keep full, true and accurate books of accounts based on good accounting principles
and other records containing relevant information and data which may be necessary to ascertain and verify the remuneration payable
to UC hereunder for a period of three (3) years following the year to which such records relate. During the Term and for a period
of three (3) years following its termination, UC shall have the right to audit, or have an agent, accountant or other representative,
audit such books, records and supporting data upon thirty (30) days notice. Any audit shall be at UC’s expense, except that
the Company shall reimburse UC for the cost of the audit in the event that UC discovers an underpayment of ten percent (10%) or
more of the amount due.

 

    5 

     

    

 

		7.4	All matters relating to this Article 7 shall be subject to the confidentiality provisions of Article
10 and shall not be used for any purpose other than in connection with the examination by UC contemplated by this Article, nor
shall any such information or material be disclosed to any person or entity other than UC’s outside or in-house counsel,
accountants, officers and those personnel of each having a legitimate need to know.

 

Article 8. Patent
Prosecution

 

		8.1	The Company shall arrange for the preparation, filing, prosecution and maintenance of any and all
patent applications and patents included in the Invention Rights by counsel of its own selection. The Company shall consult with
UC as to the preparation, filing, prosecution and maintenance of such patent applications and patents and shall furnish to UC copies
of documents relevant to any such preparation, filing, prosecution or maintenance. If the Company elects not to file, prosecute
or maintain a patent application or patent included in the Invention Rights that is owned solely by UC or jointly by the Company
and UC, UC shall be given the opportunity to do so at its own expense. Said Invention Right will be free and clear of this Agreement,
and in the case of jointly-owned patents, the Company will retain its joint ownership rights and the Parties will have no duty
of royalty or accounting to each other with respect to such jointly-owned patents.

 

		8.2	UC agrees to cooperate fully with the Company in the preparation, filing, and maintenance of the
patent applications and patents included within the Invention Rights. The Company agrees to promptly reimburse UC for any out-of-pocket
expenses it may incur at the Company’s request under this Article 8 including but not limited to invoices for patent expenses
totaling [*] ($[*]) incurred by the University, billed to 3G Biotech, LLC and paid by the Company in accordance with the following
payment schedule:

 

	 	8.2.1	[*] ($[*]) coincident with the execution of this agreement;
	 	8.2.2	[*] ($[*]) on March 31, 2013;
	 	8.2.3	[*] ($[*]) on April 30, 2013
	 	8.2.4	[*] ($[*]) on May 31, 2013

 

		8.3	If the Company chooses to discontinue its prosecution or payment of the continued filing, prosecution
or maintenance of any particular patent application or patent within the Patent Rights it will so inform UC in sufficient time
prior to implementation of such decision to allow UC to assume such duties. UC then shall have the right but not the obligation
to file, prosecute, or maintain such patent or patent application at its own expense. In such a case said patent or patent application
will be free and clear of this Agreement and UC will be free to exploit and to assign or license or otherwise dispose of any such
patent or patent application to third parties without further obligation to the Company.

 

		8.4	In the event that any claim of any patent application within the Patent Rights is canceled, abandoned,
or otherwise disallowed by a final non appealable action of a Patent Office having jurisdiction, or in the event that any claim
of any patent within the Patent Rights is held invalid or unenforceable by a non-appealable decision by any court of competent
jurisdiction, such claim will be excluded from this Agreement as of the date of final disallowance or final decision of invalidity
or non enforceability.

 

Article 9. Infringement

 

		9.1	Each Party shall make reasonable efforts to report in writing to the other Party any infringement
or suspected infringement of any right within the Invention Rights or unauthorized use or misappropriation of anything of value
transferred hereunder by a third party of which it becomes aware during the Term, and, upon request shall provide the other Party
with all available evidence in its possession supporting said infringement, suspected infringement or unauthorized use or misappropriation.

 

    6 

     

    

 

		9.2	Except as provided in Article 9.3, the Company shall have the right but not the obligation to initiate
an infringement suit or other appropriate action against any third party who at any time has infringed or is suspected of infringing
of any right within the Invention Rights or who has misused or misappropriated anything of value transferred hereunder. The Company
shall give UC sufficient advance written notice of its intent to initiate such action and the reasons therefor, and shall provide
UC with an opportunity to make suggestions and comments regarding such action. The Company shall keep UC promptly informed of the
status of any such action. The Company shall have the sole and exclusive right to select counsel for and shall pay all expenses
of such action. UC shall offer reasonable assistance to the Company in connection therewith at no charge to The Company except
for reimbursement of reasonable out-of-pocket expenses. The Company may settle any such action subject to prior approval of UC,
which approval shall not be unreasonably withheld or delayed. Any damages, profits or awards of whatever nature recovered from
such action shall be treated as Non-Royalty Sublicensing Income under this Agreement after the Company has been compensated for
its reasonable costs actually incurred in connection with such action.

 

		9.3	In the event that the Company does not (a) secure cessation of the infringement, (b) enter suit
against the infringer, or (c) provide UC with evidence of bona fide negotiations for resolution of the claim, within nine (9) months
of notice under Article 9.1 hereof, UC shall thereafter have the right but not the obligation to take action against the infringer
at UC’s own expense. The Company shall offer reasonable assistance to UC in connection with such action at no charge to UC
except for the reimbursement of reasonable out-of-pocket expenses. Any damages, profits or awards of whatever nature recovered
from such action shall belong solely to UC.

 

Article 10. Confidentiality

 

		10.1	In connection with this Agreement, it is acknowledged that each Party may disclose its confidential
and proprietary information to the other Party. Any such information that is first disclosed in writing, or if first disclosed
orally is later transmitted in written form, and is labeled as “Confidential” is referred to herein as “Confidential
Information.”

 

		10.2	Each Party hereto shall maintain the Confidential Information of the other Party in confidence,
and shall not disclose or otherwise communicate such Confidential Information to others during the Term and for a period of three
(3) years following termination, or use it for any purpose except pursuant to, and in order to carry out, the terms and objectives
of this Agreement, and hereby agrees to exercise every reasonable precaution to prevent the unauthorized disclosure of such Confidential
Information by any of its directors, officers, employees, consultants or agents.

 

		10.3	The provisions of Article 10.2 shall not apply to any Confidential Information disclosed hereunder
which:

 

		10.3.1	either was or will be lawfully disclosed to the recipient by an independent third party rightfully
in possession of the Confidential Information; or

 

		10.3.2	is public knowledge prior to or after its disclosure other than through acts of omission attributable
to recipient; or

 

    7 

     

    

 

		10.3.3	was independently known to the recipient prior to receipt from the disclosing party, as demonstrably
documented in contemporaneous written records of the recipient or

 

		10.3.4	is required to be disclosed by any of the Parties to comply with applicable laws, to defend or
prosecute litigation or to comply with governmental regulations, provided that such Party promptly notifies the other Party so
as to permit such Party to take action to avoid and/or minimize the degree or such disclosure.

 

Article 11. Publication

 

		11.1	UC reserves the right to publish the results of its research on the Invention. Before publishing,
however, UC agrees to submit copies of any manuscript proposed for publication to the Company at least thirty (30) days in advance
of the presentation or publication date, and if the Company asks to defer publication within thirty (30) days after receipt of
the manuscript so that patent applications may be filed, UC shall not publish or otherwise disclose to any third party any of the
information contained in the manuscript until such time as a patent application has been filed or the expiration of ninety (90)
days from the date of disclosure to the Company, whichever occurs first.

 

Article 12. Termination

 

		12.1	This Agreement will become effective on the Effective Date and will continue for the Term unless
terminated earlier pursuant to the terms of this Agreement. This Agreement may not be terminated by either Party except in accordance
with this Article 12.

 

		12.2	The Company may terminate this Agreement at any time by providing twelve (12) months written notice
to UC. Upon termination, a final report shall be submitted and any royalty payments and unreimbursed expenses due to UC become
payable within 60 days after termination.

 

		12.3	In the event that the Company shall be in default of any of its material obligations hereunder,
UC may at its sole option: (a) terminate this Agreement or (b) convert any exclusive license hereunder to a non-exclusive license.
This option (a) or (b) of UC shall be exercised by written notice to the Company specifying the nature of the default including
the amount of royalties then due, if any, and shall be effective ninety (90) days following receipt of said notice by the Company
unless the Company cures said default prior to the expiration of said period of ninety (90) days.

 

		12.4	Upon termination:

 

		12.4.1	The Company shall provide UC with the right to access any regulatory information filed with any
US or foreign government agency with respect to the Licensed Product.

 

		12.4.2	If the Company has filed patent applications or obtained patents to any modification or improvement
to the Licensed Product within the scope of the Invention Rights, the Company agrees upon request to enter into good faith negotiations
with UC or its future licensee(s) for the purpose of granting license rights to said modifications or improvements in timely fashion
and under commercially reasonable terms and at the sole discretion of the Company.

 

    8 

     

    

 

		12.5	Termination of this Agreement or conversion to a non-exclusive license as provided under Article
12.1 or 12.3 shall terminate any sublicenses which may have been previously granted by the Company, provided that any sublicensee
may elect to obtain a license at terms no less favorable than this Agreement by advising UC in writing, within sixty (60) days
after the sublicensee’s receipt of written notice of such termination or conversion, of its agreement to tender to UC all
the performance (including obligations for payment) previously due to the Company under its sublicensing agreement with the Company.
Any sublicense granted by the Company shall contain a provision corresponding to this Article 12.5.

 

		12.6	Upon termination of this Agreement or conversion to a non-exclusive license as provided under Article
12.1 or 12.3, neither Party shall be relieved of any obligations incurred prior to such termination or conversion, and the obligations
of the Parties under any provisions which by their nature are intended to survive any such termination or conversion shall survive
and continue to be enforceable.

 

		12.7	In the event that the Company shall become insolvent, shall make an assignment for the benefit
of creditors, or shall have a petition in bankruptcy filed for or against it, UC shall have the right to terminate this entire
Agreement immediately upon giving the Company written notice of such termination.

 

Article 13. Indemnification
and Insurance

 

		13.1	The Company agrees to defend UC at the Company’s cost and expense, and will indemnify and
hold harmless UC from and against any and all losses, costs, damages, fees or expenses, including attorney’s fees arising
out of or in connection with the manufacture, use, commercialization, marketing or sale by the Company and its transferees of the
Licensed Products.

 

		13.2	Beginning at such time as any such product or process is being commercially distributed or sold
by the Company or by a sublicensee, or agent of the Company, the Company shall at its sole cost and expense procure and maintain
comprehensive general liability insurance in amounts not less than $2,000,000 (USD) per incident and $2,000,000 (USD) annual aggregate.
Such comprehensive general liability insurance shall provide (i) product liability coverage and (ii) broad form contractual liability
coverage for Company’s indemnification under this Agreement.

 

If the Company elects to self-insure
all or part of the limits described above (including deductibles or retentions which are in excess of $250,000 (USD) annual aggregate)
such self-insurance program must be acceptable to UC. The minimum amounts of insurance coverage required shall not be construed
to create a limit of the Company’s liability with respect to its indemnification under this Agreement.

 

		13.3	The Company shall provide UC with written evidence of such insurance upon request of UC. The Company
shall provide UC with written notice at least thirty (30) days prior to the cancellation, non-renewal or any material change in
such insurance; if the Company or its sublicensee, or agent does not provide evidence to UC of replacement insurance providing
comparable coverage within an additional thirty (30) day period, UC shall have the right to terminate this Agreement and any license
hereunder effective at the end of such additional thirty (30) day period without notice or any additional waiting periods, notwithstanding
Article 13.2 of this Agreement.

 

		13.4	The Company shall maintain such comprehensive general liability insurance beyond the expiration
or termination of this Agreement during (i) the period that any Licensed Product, other product, process or service relating to
or developed pursuant to this Agreement is being commercially distributed or sold by the Company or by a sublicensee, or agent
of the Company and (ii) for a reasonable period thereafter which in no event shall be less than fifteen (15) years.

 

    9 

     

    

 

Article 14. Notices

 

		14.1	Any notice required or permitted under this Agreement shall be sufficiently made or given on the
date of mailing if in writing and sent to such Party by registered or certified mail, postage prepaid or an overnight courier with
signature required, addressed to it at its address below, or as it shall designate by written notice given to the other Party.

 

	In the case of UC:	 	In the case of the Company:
	 	 	 
	Director of Intellectual Property

University of Cincinnati

P.O. Box 210829

Cincinnati, OH 45221-0829  	 	Chelexa BioSciences, Inc.

239 South Street

Hopkinton, MA 01748

Attn: President

 

Article 15. Miscellaneous

 

		15.1	It is understood that UC is subject to United States laws and regulations controlling the export
of technical data, computer software, laboratory prototypes and other commodities and that its obligations hereunder are contingent
on compliance with all applicable United States export laws and regulations. The transfer of certain technical data and/or commodities
may require a license from the cognizant agency of the United States Government and/or written assurances by the Company that the
Company shall not export data or commodities to certain foreign countries without prior approval of such agency. UC neither represents
nor warrants that a license shall not be required nor that, if required, it shall be issued. In any event, the Company specifically
agrees not to export or re-export any information and/or technical data and/or products in violation of any applicable USA laws
and/or regulations.

 

		15.2	This Agreement shall be construed under and interpreted under the Laws of the State of Ohio, USA,
except that questions affecting the construction and effect of any patent shall be determined by the national law of the country
in which the patent has been granted.

 

		15.3	In the event that either Party is prevented from performing or is unable to perform any of its
obligations under this Agreement due to any act of God, fire, casualty, flood, war, strike, lockout, failure of public utilities,
government regulation or the like, such Party shall give notice to the other Party in writing promptly, and thereupon the affected
Party’s performance shall be excused and the time for performance shall be extended for the period of delay or inability
to perform due to such occurrence.

 

		15.4	The waiver by either Party of a breach or default of any provisions of this Agreement by the other
Party must be in written form and signed by both Parties, and shall not be construed as a waiver of any succeeding breach of the
same or any other provision.

 

		15.5	This Agreement supersedes all prior agreements, written or oral, between the Company and UC and
shall constitute the entire agreement and understanding between the Parties with respect to the subject matter hereof.

 

		15.6	This Agreement and each of its provisions shall be binding upon the Parties and may not be modified,
amended or altered except by a writing signed by UC and the Company.

 

		15.7	Neither Party may assign this Agreement without the prior written consent of the other Party.

 

    10 

     

    

 

IN WITNESS WHEREOF, the Parties hereto
have caused this Agreement to be executed by their properly and duly authorized officers or representatives as of the Effective
Date.

 

	University of Cincinnati (“UC”)	 	Chelexa BioSciences, Inc. p
	 	 	 
	By: 	/s/ Geoffrey Pinski	 	By: 	/s/ Kenneth L. Rice Jr.
	Name:  	Geoffrey Pinski	 	Name:  	Kenneth L. Rice Jr.
	Title: 	Director	 	Title: 	Executive Chairman
	Date: 	February 27, 2013	 	Date: 	February 27, 2013

 

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}]]