Document:

Exhibit 4.1

 

STARLIGHT SUPPLY CHAIN MANAGEMENT COMPANY

 

2016 OMNIBUS INCENTIVE PLAN

 

Effective November 1, 2016

 

STARLIGHT SUPPLY CHAIN MANAGEMENT
COMPANY

2016 OMNIBUS INCENTIVE PLAN

 

ARTICLE I

 

PURPOSE AND ADOPTION OF THE PLAN

 

1.01.      Purpose.
The purpose of the Starlight Supply Chain Management Company 2016 Omnibus Incentive Plan (as amended from time to time, the "Plan")
is to assist in attracting and retaining highly competent employees, directors and consultants to act as an incentive in motivating
selected employees, directors and consultants of the Company and its Subsidiaries to achieve long-term corporate objectives and
to enable stock-based and cash-based incentive awards to qualify as performance-based compensation for purposes of the tax deduction
limitations under Section 162(m) of the Code.

 

1.02.      Adoption
and Term. The Plan has been approved by the Board and stockholders of the Company to be effective as of November 1, 2016 (the
“Effective Date”). The Plan shall remain in effect until the tenth anniversary of the Effective Date, or until terminated
by action of the Board, whichever occurs sooner.

  

ARTICLE II

 

DEFINITIONS

 

For the purpose of this Plan, capitalized terms
shall have the following meanings:

 

2.01.      Affiliate means
an entity in which, directly or indirectly through one or more intermediaries, the Company has at least a fifty percent (50%) ownership
interest or, where permissible under Section 409A of the Code, at least a twenty percent (20%) ownership interest; provided, however,
for purposes of any grant of an Incentive Stock Option, “Affiliate” means a corporation which, for purposes of Section
424 of the Code, is a parent or subsidiary of the Company, directly or indirectly.

 

2.02.      Award means
any one or a combination of Non-Qualified Stock Options or Incentive Stock Options described in Article VI, Stock Appreciation
Rights described in Article VI, Restricted Shares and Restricted Stock Units described in Article VII, Performance Awards described
in Article VIII, other stock-based Awards described in Article IX, short-term cash incentive Awards described in Article X or any
other Award made under the terms of the Plan.

 

2.03.      Award
Agreement means a written agreement between the Company and a Participant or a written acknowledgment from the Company
to a Participant specifically setting forth the terms and conditions of an Award granted under the Plan.

 

     

     

    

 

2.04.       Award
Period means, with respect to an Award, the period of time, if any, set forth in the Award Agreement during which specified
target performance goals must be achieved or other conditions set forth in the Award Agreement must be satisfied.

 

2.05.       Beneficiary means
an individual, trust or estate who or which, by a written designation of the Participant filed with the Company, or if no such
written designation is filed, by operation of law, succeeds to the rights and obligations of the Participant under the Plan and
the Award Agreement upon the Participant's death.

 

2.06.       Board means
the Board of Directors of the Company.

 

2.07.       Change
in Control means, and shall be deemed to have occurred upon the occurrence of, any one of the following events:

 

(a)       The
acquisition in one or more transactions, other than from the Company, by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act), other than the Company, an Affiliate or any employee benefit plan (or related
trust) sponsored or maintained by the Company or an Affiliate, of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of a number of Company Voting Securities in excess of 25% of the Company Voting Securities unless such
acquisition has been approved by the Board;

 

(b)       Any
election has occurred of persons to the Board that causes two-thirds of the Board to consist of persons other than (i) persons
who were members of the Board on the Effective Date of the Plan and (ii) persons who were nominated for election as members of
the Board at a time when two-thirds of the Board consisted of persons who were members of the Board on the Effective Date of the
Plan, provided, however, that any person nominated for election by a Board at least two-thirds of whom constituted persons described
in clauses (i) and/or (ii) or by persons who were themselves nominated by such Board shall, for this purpose, be deemed to have
been nominated by a Board composed of persons described in clause (i);

 

(c)       The
consummation (i.e. closing) of a reorganization, merger or consolidation involving the Company, unless, following such
reorganization, merger or consolidation, all or substantially all of the individuals and entities who were the respective beneficial
owners of the Outstanding Common Stock and Company Voting Securities immediately prior to such reorganization, merger or consolidation,
following such reorganization, merger or consolidation beneficially own, directly or indirectly, more than 75% of, respectively,
the then outstanding shares of Common Stock and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors or trustees, as the case may be, of the entity resulting from such reorganization,
merger or consolidation in substantially the same proportion as their ownership of the Outstanding Common Stock and Company Voting
Securities immediately prior to such reorganization, merger or consolidation, as the case may be;

 

(d)       The
consummation (i.e. closing) of a sale or other disposition of all or substantially all the assets of the Company, unless,
following such sale or disposition, all or substantially all of the individuals and entities who were the respective beneficial
owners of the Outstanding Common Stock and Company Voting Securities immediately prior to such sale or disposition, following such
sale or disposition beneficially own, directly or indirectly, more than 75% of, respectively, the then outstanding shares of Common
Stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors
or trustees, as the case may be, of the entity purchasing such assets in substantially the same proportion as their ownership of
the Outstanding Common Stock and Company Voting Securities immediately prior to such sale or disposition, as the case may be; or

 

(e)       a
complete liquidation or dissolution of the Company.

 

2.08.       Code means
the Internal Revenue Code of 1986, as amended. References to a section of the Code shall include that section and any comparable
section or sections of any future legislation that amends, supplements or supersedes said section.

 

2.09.       Committee means
the Compensation Committee of the Board or the Board of Directors if there is no separate Compensation Committee.

 

2.10.       Common
Stock means the common stock of the Company, par value $0.001 per share.

 

2.11.       Company means
Starlight Supply Chain Management Company, a Nevada corporation, and its successors.

 

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2.12.       Company
Voting Securities means the combined voting power of all outstanding voting securities of the Company entitled to vote
generally in the election of directors to the Board.

 

2.13.       Date
of Grant means the date designated by the Committee as the date as of which it grants an Award, which shall not be earlier
than the date on which the Committee approves the granting of such Award.

 

2.14.       Dividend
Equivalent Account means a bookkeeping account in accordance with Section 11.17 and related to an Award that is credited
with the amount of any cash dividends or stock distributions that would be payable with respect to the shares of Common Stock subject
to such Awards had such shares been outstanding shares of Common Stock.

 

2.15        Exchange
Act means the Securities Exchange Act of 1934, as amended.

 

2.16.       Exercise
Price means, with respect to a Stock Appreciation Right, the amount established by the Committee in the Award Agreement
which is to be subtracted from the Fair Market Value on the date of exercise in order to determine the amount of the payment to
be made to the Participant, as further described in Section 6.02(b).

 

2.17.      Fair
Market Value means, as of any applicable date: (i) if the Common Stock is listed on a national securities exchange or
is authorized for quotation on the Nasdaq National Market System (“NMS”), the closing sales price of the Common Stock
on the exchange or NMS, as the case may be, on that date, or, if no sale of the Common Stock occurred on that date, on the next
preceding date on which there was a reported sale; or (ii) if none of the above apply, the closing bid price as reported by the
Nasdaq SmallCap Market on that date, or if no price was reported for that date, on the next preceding date for which a price was
reported; or (iii) if none of the above apply, the last reported bid price published in the “pink sheets” or on one
of the other markets of the OTC Markets Group, as the case may be; or (iv) if none of the above apply, the fair market value of
the Common Stock as determined under procedures established by the Committee.

 

2.18.      Incentive
Stock Option means a stock option within the meaning of Section 422 of the Code.

 

2.19.      Merger means
any merger, reorganization, consolidation, exchange, transfer of assets or other transaction having similar effect involving the
Company.

 

2.20.      Non-Qualified
Stock Option means a stock option which is not an Incentive Stock Option.

 

2.21       Non-Vested
Share means shares of the Company Common Stock issued to a Participant in respect of the non-vested portion of an Option
in the event of the early exercise of such Participant’s Options pursuant to such Participant’s Award Agreement, as
permitted in Section 6.06 below.

 

2.22.      Options means
all Non-Qualified Stock Options and Incentive Stock Options granted at any time under the Plan.

 

2.23.      Outstanding
Common Stock means, at any time, the issued and outstanding shares of Common Stock.

 

2.24.      Participant means
a person designated to receive an Award under the Plan in accordance with Section 5.01.

 

2.25.      Performance
Awards means Awards granted in accordance with Article VIII.

  

2.26.      Performance
Goals means net sales, units sold or growth in units sold, return on stockholders' equity, customer satisfaction or retention,
return on investment or working capital, operating income, economic value added (the amount, if any, by which net operating income
after tax exceeds a reference cost of capital), EBITDA (as net income (loss) before net interest expense, provision (benefit) for
income taxes, and depreciation and amortization), expense targets, net income, earnings per share, share price, reductions in inventory,
inventory turns, on-time delivery performance, operating efficiency, productivity ratios, market share or change in market share,
any one of which may be measured with respect to the Company or any one or more of its Subsidiaries and divisions and either in
absolute terms or as compared to another company or companies, and quantifiable, objective measures of individual performance relevant
to the particular individual's job responsibilities.

 

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2.27.      Plan has
the meaning given to such term in Section 1.01.

 

2.28.      Purchase
Price, with respect to Options, shall have the meaning set forth in Section 6.01(b).

 

2.29.      Restricted
Shares means Common Stock subject to restrictions imposed in connection with Awards granted under Article VII.

 

2.30.      Restricted
Stock Unit means a unit representing the right to receive Common Stock or the value thereof in the future
subject to restrictions imposed in connection with Awards granted under Article VII.

 

2.31.      Rule
16b-3 means Rule 16b-3 promulgated by the Securities and Exchange Commission under Section 16 of the Exchange Act, as
the same may be amended from time to time, and any successor rule.

 

2.32.      Stock
Appreciation Rights means awards granted in accordance with Article VI.

 

2.33       Subsidiary means an Affiliate of
the Company, as defined in Section 2.01, and shall include an entity which is controlled, directly or indirectly through one or
more intermediaries, by the Company through a variable interest entity arrangement.

 

2.34      Termination
of Service means the voluntary or involuntary termination of a Participant’s service as an employee, director or
consultant with the Company or an Affiliate for any reason, including death, disability, retirement or as the result of the divestiture
of the Participant's employer or any similar transaction in which the Participant's employer ceases to be the Company or one of
its Subsidiaries. Whether entering military or other government service shall constitute Termination of Service, or whether and
when a Termination of Service shall occur as a result of disability, shall be determined in each case by the Committee in its sole
discretion.

 

ARTICLE III

 

ADMINISTRATION

 

3.01.       Committee.

 

(a)       Duties
and Authority. The Plan shall be administered by the Committee and the Committee shall have exclusive and final authority in
each determination, interpretation or other action affecting the Plan and its Participants. The Committee shall have the sole discretionary
authority to interpret the Plan, to establish and modify administrative rules for the Plan, to impose such conditions and restrictions
on Awards as it determines appropriate and to make all factual determinations with respect to and take such steps in connection
with the Plan and Awards granted hereunder as it may deem necessary or advisable. The Committee shall not, however, have or exercise
any discretion that would disqualify amounts payable under Article X as performance-based compensation for purposes of Section
162(m) of the Code. The Committee may delegate such of its powers and authority under the Plan as it deems appropriate to a subcommittee
of the Committee or designated officers or employees of the Company. In addition, the full Board may exercise any of the powers
and authority of the Committee under the Plan. In the event of such delegation of authority or exercise of authority by the Board,
references in the Plan to the Committee shall be deemed to refer, as appropriate, to the delegate of the Committee or the Board.
Actions taken by the Committee or any subcommittee thereof, and any delegation by the Committee to designated officers or employees,
under this Section 3.01 shall comply with Section 16(b) of the Exchange Act, the performance-based provisions of Section 162(m)
of the Code, and the regulations promulgated under each of such statutory provisions, or the respective successors to such statutory
provisions or regulations, as in effect from time to time, to the extent applicable.

 

(b)       Indemnification.
Each person who is or shall have been a member of the Board or the Committee, or an officer or employee of the Company to whom
authority was delegated in accordance with the Plan shall be indemnified and held harmless by the Company against and from any
loss, cost, liability or expense that may be imposed upon or reasonably incurred by such individual in connection with or resulting
from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of
any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof,
with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same
before he or she undertakes to handle and defend it on his or her own behalf; provided, however, that the foregoing indemnification
shall not apply to any loss, cost, liability, or expense that is a result of his or her own willful misconduct. The foregoing right
of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the
Company’s Certificate of Incorporation or Bylaws, conferred in a separate agreement with the Company, as a matter of law,
or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

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ARTICLE IV

 

SHARES

 

4.01.      Number
of Shares Issuable. The total number of shares initially authorized to be issued under the Plan shall be 1,500,000 shares of
Common Stock. The foregoing share limit shall be subject to adjustment in accordance with Section 11.07. The shares to be offered
under the Plan shall be authorized and unissued Common Stock, or issued Common Stock that shall have been reacquired by the Company.

 

4.02.      Shares
Subject to Terminated Awards. Common Stock covered by any unexercised portions of terminated or forfeited Options (including
canceled Options) granted under Article VI, Restricted Stock or Restricted Stock Units forfeited as provided in Article VII, other
stock-based Awards terminated or forfeited as provided under the Plan, and Common Stock subject to any Awards that are otherwise
surrendered by the Participant may again be subject to new Awards under the Plan. Shares of Common Stock surrendered to or withheld
by the Company in payment or satisfaction of the Purchase Price of an Option or tax withholding obligation with respect to an Award
shall be available for the grant of new Awards under the Plan. In the event of the exercise of Stock Appreciation Rights, whether
or not granted in tandem with Options, only the number of shares of Common Stock actually issued in payment of such Stock Appreciation
Rights shall be charged against the number of shares of Common Stock available for the grant of Awards hereunder.

 

ARTICLE V

 

PARTICIPATION

 

5.01.      Eligible
Participants. Participants in the Plan shall be such employees, directors and consultants of the Company and its Subsidiaries
as the Committee, in its sole discretion, may designate from time to time. The Committee's designation of a Participant in any
year shall not require the Committee to designate such person to receive Awards or grants in any other year. The designation of
a Participant to receive Awards or grants under one portion of the Plan does not require the Committee to include such Participant
under other portions of the Plan. The Committee shall consider such factors as it deems pertinent in selecting Participants and
in determining the type and amount of their respective Awards. Subject to adjustment in accordance with Section 11.07, in any calendar
year, no Participant shall be granted Awards in respect of more than 1.5 million shares of Common Stock (whether through grants
of Options or Stock Appreciation Rights or other Awards of Common Stock or rights with respect thereto) or cash-based Awards for
more than $1 million.

 

ARTICLE VI

 

STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

 

6.01.       Option
Awards.

 

(a)       Grant
of Options. The Committee may grant, to such Participants as the Committee may select, Options entitling the Participant to
purchase shares of Common Stock from the Company in such number, at such price and on such terms and subject to such conditions,
not inconsistent with the terms of this Plan, as may be established by the Committee. The terms of any Option granted under this
Plan shall be set forth in an Award Agreement.

 

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(b)       Purchase
Price of Options. Subject to the requirements applicable to Incentive Stock Options under Section 6.01(d), the Purchase Price
of each share of Common Stock which may be purchased upon exercise of any Option granted under the Plan shall be determined by
the Committee.

 

(c)       Designation
of Options. The Committee shall designate, at the time of the grant of each Option, the Option as an Incentive Stock Option
or a Non-Qualified Stock Option; provided, however,that an Option may be designated as an Incentive Stock Option only
if the applicable Participant is an employee of the Company on the Date of Grant.

 

(d)       Special
Incentive Stock Option Rules. No Participant may be granted Incentive Stock Options under the Plan (or any other plans of the
Company) that would result in Incentive Stock Options to purchase shares of Common Stock with an aggregate Fair Market Value (measured
on the Date of Grant) of more than $100,000 first becoming exercisable by the Participant in any one calendar year. Notwithstanding
any other provision of the Plan to the contrary, the Exercise Price of each Incentive Stock Option shall be equal to or greater
than the Fair Market Value of the Common Stock subject to the Incentive Stock Option as of the Date of Grant of the Incentive Stock
Option; provided, however, that no Incentive Stock Option shall be granted to any person who, at the time the Option
is granted, owns stock (including stock owned by application of the constructive ownership rules in Section 424(d) of the Code)
possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, unless at the
time the Incentive Stock Option is granted the price of the Option is at least one hundred ten percent (110%) of the Fair Market
Value of the Common Stock subject to the Incentive Stock Option and the Incentive Stock Option by its terms is not exercisable
for more than five years from the Date of Grant.

 

(e)       Rights
As a Stockholder. A Participant or a transferee of an Option pursuant to Section 11.04 shall have no rights as a stockholder
with respect to Common Stock covered by an Option until the Participant or transferee shall have become the holder of record of
any such shares, and no adjustment shall be made for dividends in cash or other property or distributions or other rights with
respect to any such Common Stock for which the record date is prior to the date on which the Participant or a transferee of the
Option shall have become the holder of record of any such shares covered by the Option; provided, however, that Participants are
entitled to share adjustments to reflect capital changes under Section 11.07.

 

6.02.       Stock
Appreciation Rights.

 

(a)       Stock
Appreciation Right Awards. The Committee is authorized to grant to any Participant one or more Stock Appreciation Rights. Such
Stock Appreciation Rights may be granted either independent of or in tandem with Options granted to the same Participant. Stock
Appreciation Rights granted in tandem with Options may be granted simultaneously with, or, in the case of Non-Qualified Stock Options,
subsequent to, the grant to such Participant of the related Option; provided however, that: (i) any Option covering any share of
Common Stock shall expire and not be exercisable upon the exercise of any Stock Appreciation Right with respect to the same share,
(ii) any Stock Appreciation Right covering any share of Common Stock shall expire and not be exercisable upon the exercise of any
related Option with respect to the same share, and (iii) an Option and Stock Appreciation Right covering the same share of Common
Stock may not be exercised simultaneously. Upon exercise of a Stock Appreciation Right with respect to a share of Common Stock,
the Participant shall be entitled to receive an amount equal to the excess, if any, of (A) the Fair Market Value of a share of
Common Stock on the date of exercise over (B) the Exercise Price of such Stock Appreciation Right established in the Award Agreement,
which amount shall be payable as provided in Section 6.02(c).

 

(b)       Exercise
Price. The Exercise Price established under any Stock Appreciation Right granted under this Plan shall be determined by the
Committee, but in the case of Stock Appreciation Rights granted in tandem with Options shall not be less than the Purchase Price
of the related Option. Upon exercise of Stock Appreciation Rights granted in tandem with options, the number of shares subject
to exercise under any related Option shall automatically be reduced by the number of shares of Common Stock represented by the
Option or portion thereof which are surrendered as a result of the exercise of such Stock Appreciation Rights.

 

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(c)        Payment
of Incremental Value. Any payment which may become due from the Company by reason of a Participant's exercise of a Stock Appreciation
Right may be paid to the Participant as determined by the Committee (i) all in cash, (ii) all in Common Stock, or (iii) in any
combination of cash and Common Stock. In the event that all or a portion of the payment is made in Common Stock, the number of
shares of Common Stock delivered in satisfaction of such payment shall be determined by dividing the amount of such payment or
portion thereof by the Fair Market Value on the Exercise Date. No fractional share of Common Stock shall be issued to make any
payment in respect of Stock Appreciation Rights; if any fractional share would be issuable, the combination of cash and Common
Stock payable to the Participant shall be adjusted as directed by the Committee to avoid the issuance of any fractional share.

 

6.03.       Terms
of Stock Options and Stock Appreciation Rights.

 

(a)       Conditions
on Exercise. An Award Agreement with respect to Options or Stock Appreciation Rights may contain such waiting periods, exercise
dates and restrictions on exercise (including, but not limited to, periodic installments) as may be determined by the Committee
at the time of grant. In the event the Committee grants an Option or Stock Appreciation Right that would be subject to Section
409A of the Code, the Committee may include such additional terms, conditions and restrictions on the exercise of such Option or
Stock Appreciation Right as the Committee deems necessary or advisable in order to comply with the requirements of Section 409A
of the Code.

  

(b)          Duration
of Options and Stock Appreciation Rights. Options and Stock Appreciation Rights shall terminate upon the first to occur of
the following events:

 

(i)       Expiration
of the Option or Stock Appreciation Right as provided in the Award Agreement; or

 

(ii)      Termination
of the Award in the event of a Participant's disability, retirement, death or other Termination of Service as provided in the Award
Agreement; or

 

(iii)     In
the case of an Incentive Stock Option, ten years from the Date of Grant (five years in certain cases, as described in Section 6.01(d));
or

 

(iv)     Solely
in the case of a Stock Appreciation Right granted in tandem with an Option, upon the expiration of the related Option.

 

(c)        Acceleration
or Extension of Exercise Time. The Committee, in its sole discretion, shall have the right (but shall not be obligated), exercisable
on or at any time after the Date of Grant, to permit the exercise of an Option or Stock Appreciation Right (i) prior to the time
such Option or Stock Appreciation Right would become exercisable under the terms of the Award Agreement, (ii) after the termination
of the Option or Stock Appreciation Right under the terms of the Award Agreement, or (iii) after the expiration of the Option or
Stock Appreciation Right.

 

6.04.      Exercise
Procedures. Each Option and Stock Appreciation Right granted under the Plan shall be exercised under such procedures and by
such methods as the Board may establish or approve from time to time. The Purchase Price of shares purchased upon exercise of an
Option granted under the Plan shall be paid in full in cash by the Participant pursuant to the Award Agreement; provided, however,
that the Committee may (but shall not be required to) permit payment to be made (a) by delivery to the Company of shares of Common
Stock held by the Participant, (b) by a “net exercise” method under which the Company reduces the number of shares
of Common Stock issued upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate
Exercise Price, or (c) such other consideration as the Committee deems appropriate and in compliance with applicable law (including
payment under an arrangement constituting a brokerage transaction as permitted under the provisions of Regulation T applicable
to cashless exercises promulgated by the Federal Reserve Board, unless prohibited by Section 402 of the Sarbanes-Oxley Act of 2002).
In the event that any Common Stock shall be transferred to the Company to satisfy all or any part of the Purchase Price, the part
of the Purchase Price deemed to have been satisfied by such transfer of Common Stock shall be equal to the product derived by multiplying
the Fair Market Value as of the date of exercise times the number of shares of Common Stock transferred to the Company. The Participant
may not transfer to the Company in satisfaction of the Purchase Price any fractional share of Common Stock. Any part of the Purchase
Price paid in cash upon the exercise of any Option shall be added to the general funds of the Company and may be used for any proper
corporate purpose. Unless the Committee shall otherwise determine, any Common Stock transferred to the Company as payment of all
or part of the Purchase Price upon the exercise of any Option shall be held as treasury shares.

 

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6.05.      Change
in Control. Unless otherwise provided by the Committee in the applicable Award Agreement, in the event of a Change in Control,
no accelerated vesting of any Options or Stock Appreciation Rights outstanding on the date of such Change in Control shall occur.

 

6.06      Early
Exercise. An Option may, but need not, include a provision by which the Participant may elect to exercise the Option in
whole or in part prior to the date the Option is fully vested. The provision may be included in the Award Agreement at the time
of grant of the Option or may be added to the Award Agreement by amendment at a later time. In the event of an early exercise of
an Option, any shares of Common Stock received shall be subject to a special repurchase right in favor of the Company with terms
established by the Board. The Board shall determine the time and/or the event that causes the repurchase right to terminate and
fully vest the Common Stock in the Participant. Alternatively, in the sole discretion of the Board, one or more Participants may
be granted stock purchase rights allowing them to purchase shares of Common Stock outright, subject to conditions and restrictions
as the Board may determine.

 

ARTICLE VII

 

RESTRICTED SHARES AND RESTRICTED STOCK UNITS

 

7.01.      Award
of Restricted Shares and Restricted Stock Units. The Committee may grant to any Participant an Award of
Restricted Shares consisting of a specified number of shares of Common Stock issued to the Participant subject to such terms, conditions
and forfeiture and transfer restrictions, whether based on performance standards, periods of service, retention by the Participant
of ownership of specified shares of Common Stock or other criteria, as the Committee shall establish. The Committee may also grant
Restricted Stock Units representing the right to receive shares of Common Stock in the future subject to such terms, conditions
and restrictions, whether based on performance standards, periods of service, retention by the Participant of ownership of specified
shares of Common Stock or other criteria, as the Committee shall establish. With respect to performance-based Awards of Restricted
Shares or Restricted Stock Units intended to qualify as "performance-based" compensation for purposes of Section 162(m)
of the Code, performance targets will consist of specified levels of one or more of the Performance Goals. The terms of any Restricted
Share and Restricted Stock Unit Awards granted under this Plan shall be set forth in an Award Agreement which shall contain provisions
determined by the Committee and not inconsistent with this Plan.

 

7.02        Restricted
Shares.

 

(a)       Issuance
of Restricted Shares. As soon as practicable after the Date of Grant of a Restricted Share Award by the Committee, the Company
shall cause to be transferred on the books of the Company, or its agent, Common Stock, registered on behalf of the Participant,
evidencing the Restricted Shares covered by the Award, but subject to forfeiture to the Company as of the Date of Grant if an Award
Agreement with respect to the Restricted Shares covered by the Award is not duly executed by the Participant and timely returned
to the Company. All Common Stock covered by Awards under this Article VII shall be subject to the restrictions, terms and conditions
contained in the Plan and the Award Agreement entered into by the Participant. Until the lapse or release of all restrictions applicable
to an Award of Restricted Shares, the share certificates representing such Restricted Shares may be held in custody by the Company,
its designee, or, if the certificates bear a restrictive legend, by the Participant. Upon the lapse or release of all restrictions
with respect to an Award as described in Section 7.02(d), one or more share certificates, registered in the name of the Participant,
for an appropriate number of shares as provided in Section 7.02(d), free of any restrictions set forth in the Plan and the Award
Agreement shall be delivered to the Participant.

 

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(b)       Stockholder
Rights. Beginning on the Date of Grant of the Restricted Share Award and subject to execution of the Award Agreement as provided
in Section 7.02(a), the Participant shall become a stockholder of the Company with respect to all shares subject to the Award Agreement
and shall have all of the rights of a stockholder, including, but not limited to, the right to vote such shares and the right to
receive dividends; provided, however, that any Common Stock distributed as a dividend or otherwise with respect to any Restricted
Shares as to which the restrictions have not yet lapsed, shall be subject to the same restrictions as such Restricted Shares and
held or restricted as provided in Section 7.02(a).

 

(c)       Restriction
on Transferability. None of the Restricted Shares may be assigned or transferred (other than by will or the laws of descent
and distribution, or to an inter vivos trust with respect to which the Participant is treated as the owner under Sections 671 through
677 of the Code, except to the extent that Section 16 of the Exchange Act limits a Participant's right to make such transfers),
pledged or sold prior to lapse of the restrictions applicable thereto.

 

(d)       Delivery
of Shares Upon Vesting. Upon expiration or earlier termination of the forfeiture period without a forfeiture and the satisfaction
of or release from any other conditions prescribed by the Committee, or at such earlier time as provided under the provisions of
Section 7.04, the restrictions applicable to the Restricted Shares shall lapse. As promptly as administratively feasible thereafter,
subject to the requirements of Section 11.05, the Company shall deliver to the Participant or, in case of the Participant's death,
to the Participant's Beneficiary, one or more share certificates for the appropriate number of shares of Common Stock, free of
all such restrictions, except for any restrictions that may be imposed by law.

 

(e)       Forfeiture
of Restricted Shares. Subject to Sections 7.02(f) and 7.04, all Restricted Shares shall be forfeited and returned to the Company
and all rights of the Participant with respect to such Restricted Shares shall terminate unless the Participant continues in the
service of the Company or an Affiliate as an employee until the expiration of the forfeiture period for such Restricted Shares
and satisfies any and all other conditions set forth in the Award Agreement. The Committee shall determine the forfeiture period
(which may, but need not, lapse in installments) and any other terms and conditions applicable with respect to any Restricted Share
Award.

 

(f)       Waiver
of Forfeiture Period. Notwithstanding anything contained in this Article VII to the contrary, the Committee may, in its sole
discretion, waive the forfeiture period and any other conditions set forth in any Award Agreement under appropriate circumstances
(including the death, disability or retirement of the Participant or a material change in circumstances arising after the date
of an Award) and subject to such terms and conditions (including forfeiture of a proportionate number of the Restricted Shares)
as the Committee shall deem appropriate.

 

7.03.      Restricted
Stock Units.

 

(a)       Settlement
of Restricted Stock Units. Payments shall be made to Participants with respect to their Restricted Stock Units as soon as practicable
after the Committee has determined that the terms and conditions applicable to such Award have been satisfied or at a later date
if distribution has been deferred. Payments to Participants with respect to Restricted Stock Units shall be made in the form of
Common Stock, or cash or a combination of both, as the Committee may determine. The amount of any cash to be paid in lieu of Common
Stock shall be determined on the basis of the Fair Market Value of the Common Stock on the date any such payment is processed.
As to shares of Common Stock which constitute all or any part of such payment, the Committee may impose such restrictions concerning
their transferability and/or their forfeiture as may be provided in the applicable Award Agreement or as the Committee may otherwise
determine, provided such determination is made on or before the date certificates for such shares are first delivered to the applicable
Participant.

 

(b)       Shareholder
Rights. Until the lapse or release of all restrictions applicable to an Award of Restricted Stock Units, no shares of Common
Stock shall be issued in respect of such Awards and no Participant shall have any rights as a shareholder of the Company with respect
to the shares of Common Stock covered by such Award of Restricted Stock Units.

 

    	 	9	 

     

    

 

(c)       Waiver
of Forfeiture Period. Notwithstanding anything contained in this Section 7.03 to the contrary, the Committee may, in its sole
discretion, waive the forfeiture period and any other conditions set forth in any Award Agreement under appropriate circumstances
(including the death, disability or retirement of the Participant or a material change in circumstances arising after the date
of an Award) and subject to such terms and conditions (including forfeiture of a proportionate number of shares issuable upon settlement
of the Restricted Stock Units constituting an Award) as the Committee shall deem appropriate.

  

(d)       Deferral
of Payment. If approved by the Committee and set forth in the applicable Award Agreement, a Participant may elect to defer
the amount payable with respect to the Participant’s Restricted Stock Units in accordance with such terms as may be established
by the Committee, subject to the requirements of Section 409A of the Code.

 

7.04      Change
in Control. Unless otherwise provided by the Committee in the applicable Award Agreement, no acceleration of the termination
of any of the restrictions applicable to Restricted Shares and Restricted Stock Unit Awards shall occur in the event of a Change
in Control.

 

ARTICLE VIII

 

PERFORMANCE AWARDS

 

8.01.        Performance
Awards.

 

(a)       Award
Periods and Calculations of Potential Incentive Amounts. The Committee may grant Performance Awards to Participants. A Performance
Award shall consist of the right to receive a payment (measured by the Fair Market Value of a specified number of shares of Common
Stock, increases in such Fair Market Value during the Award Period and/or a fixed cash amount) contingent upon the extent to which
certain predetermined performance targets have been met during an Award Period. The Award Period shall be two or more fiscal or
calendar years as determined by the Committee. The Committee, in its discretion and under such terms as it deems appropriate, may
permit newly eligible Participants, such as those who are promoted or newly hired, to receive Performance Awards after an Award
Period has commenced.

 

(b)       Performance
Targets. Subject to Section 11.18, the performance targets applicable to a Performance Award may include such goals related
to the performance of the Company or, where relevant, any one or more of its Subsidiaries or divisions and/or the performance of
a Participant as may be established by the Committee in its discretion. In the case of Performance Awards to "covered employees"
(as defined in Section 162(m) of the Code), the targets will be limited to specified levels of one or more of the Performance Goals.
The performance targets established by the Committee may vary for different Award Periods and need not be the same for each Participant
receiving a Performance Award in an Award Period.

 

(c)       Earning
Performance Awards. The Committee, at or as soon as practicable after the Date of Grant, shall prescribe a formula to determine
the percentage of the Performance Award to be earned based upon the degree of attainment of the applicable performance targets.

 

(d)       Payment
of Earned Performance Awards. Subject to the requirements of Section 11.05, payments of earned Performance Awards shall be
made in cash or Common Stock, or a combination of cash and Common Stock, in the discretion of the Committee. The Committee, in
its sole discretion, may define, and set forth in the applicable Award Agreement, such terms and conditions with respect to the
payment of earned Performance Awards as it may deem desirable.

 

8.02.      Termination
of Service. In the event of a Participant’s Termination of Service during an Award Period, the Participant’s Performance
Awards shall be forfeited except as may otherwise be provided in the applicable Award Agreement.

 

8.03.      Change
in Control. Unless otherwise provided by the Committee in the applicable Award Agreement, in the event of a Change in Control,
no accelerated vesting of any Performance Awards outstanding on the date of such Change in Control shall occur.

 

    	 	10	 

     

    

 

ARTICLE IX

 

OTHER STOCK-BASED AWARDS

 

9.01.      Grant
of Other Stock-Based Awards. Other stock-based awards, consisting of stock purchase rights (with or without loans to Participants
by the Company containing such terms as the Committee shall determine), Awards of Common Stock, or Awards valued in whole or in
part by reference to, or otherwise based on, Common Stock, may be granted either alone or in addition to or in conjunction with
other Awards under the Plan. Subject to the provisions of the Plan, the Committee shall have sole and complete authority to determine
the persons to whom and the time or times at which such Awards shall be made, the number of shares of Common Stock to be granted
pursuant to such Awards, and all other conditions of the Awards. Any such Award shall be confirmed by an Award Agreement executed
by the Committee and the Participant, which Award Agreement shall contain such provisions as the Committee determines to be necessary
or appropriate to carry out the intent of this Plan with respect to such Award.

 

9.02.      Terms
of Other Stock-Based Awards. In addition to the terms and conditions specified in the Award Agreement, Awards made pursuant
to this Article IX shall be subject to the following:

 

(a)       Any
Common Stock subject to Awards made under this Article IX may not be sold, assigned, transferred, pledged or otherwise encumbered
prior to the date on which the shares are issued, or, if later, the date on which any applicable restriction, performance or deferral
period lapses; and

  

(b)       If
specified by the Committee in the Award Agreement, the recipient of an Award under this Article IX shall be entitled to receive,
currently or on a deferred basis, interest or dividends or dividend equivalents with respect to the Common Stock or other securities
covered by the Award; and

 

(c)       The
Award Agreement with respect to any Award shall contain provisions dealing with the disposition of such Award in the event of a
Termination of Service prior to the exercise, payment or other settlement of such Award, whether such termination occurs because
of retirement, disability, death or other reason, with such provisions to take account of the specific nature and purpose of the
Award.

  

ARTICLE X

 

SHORT-TERM CASH INCENTIVE AWARDS

 

10.01.    Eligibility.
Executive officers of the Company who are from time to time determined by the Committee to be "covered employees" for
purposes of Section 162(m) of the Code will be eligible to receive short-term cash incentive awards under this Article X.

 

10.02.    Awards.

 

(a)       Performance
Targets. The Committee shall establish objective performance targets based on specified levels of one or more of the Performance
Goals. Such performance targets shall be established by the Committee on a timely basis to ensure that the targets are considered
"preestablished" for purposes of Section 162(m) of the Code.

 

(b)       Amounts
of Awards. In conjunction with the establishment of performance targets for a fiscal year or such other short-term performance
period established by the Committee, the Committee shall adopt an objective formula (on the basis of percentages of Participants'
salaries, shares in a bonus pool or otherwise) for computing the respective amounts payable under the Plan to Participants if and
to the extent that the performance targets are attained. Such formula shall comply with the requirements applicable to performance-based
compensation plans under Section 162(m) of the Code and, to the extent based on percentages of a bonus pool, such percentages shall
not exceed 100% in the aggregate.

 

    	 	11	 

     

    

 

(c)       Payment
of Awards. Awards will be payable to Participants in cash each year upon prior written certification by the Committee of attainment
of the specified performance targets for the preceding fiscal year or other applicable performance period.

 

(d)       Negative
Discretion. Notwithstanding the attainment by the Company of the specified performance targets, the Committee shall have the
discretion, which need not be exercised uniformly among the Participants, to reduce or eliminate the award that would be otherwise
paid.

 

(e)       Guidelines.
The Committee may adopt from time to time written policies for its implementation of this Article X. Such guidelines shall reflect
the intention of the Company that all payments hereunder qualify as performance-based compensation under Section 162(m) of the
Code.

 

(f)       Non-Exclusive
Arrangement. The adoption and operation of this Article X shall not preclude the Board or the Committee from approving other
short-term incentive compensation arrangements for the benefit of individuals who are Participants hereunder as the Board or Committee,
as the case may be, deems appropriate and in the best interest of the Company.

  

ARTICLE XI

 

TERMS APPLICABLE GENERALLY TO AWARDS

GRANTED UNDER THE PLAN

 

11.01.    Plan
Provisions Control Award Terms. Except as provided in Section 11.16, the terms of the Plan shall govern all Awards granted
under the Plan, and in no event shall the Committee have the power to grant any Award under the Plan which is contrary to any of
the provisions of the Plan. In the event any provision of any Award granted under the Plan shall conflict with any term in the
Plan as constituted on the Date of Grant of such Award, the term in the Plan as constituted on the Date of Grant of such Award
shall control. Except as provided in Section 11.03 and Section 11.07, the terms of any Award granted under the Plan may not be
changed after the Date of Grant of such Award so as to materially decrease the value of the Award without the express written approval
of the holder.

 

11.02.    Award
Agreement. No person shall have any rights under any Award granted under the Plan unless and until the Company and the Participant
to whom such Award shall have been granted shall have executed and delivered an Award Agreement or received any other Award acknowledgment
authorized by the Committee expressly granting the Award to such person and containing provisions setting forth the terms of the
Award.

 

11.03.    Modification
of Award After Grant. No Award granted under the Plan to a Participant may be modified (unless such modification does not materially
decrease the value of the Award) after the Date of Grant except by express written agreement between the Company and the Participant,
provided that any such change (i) shall not be inconsistent with the terms of the Plan, and (ii) shall be approved by the Committee.

 

11.04.    Limitation
on Transfer. Except as provided in Section 7.01(c) in the case of Restricted Shares, a Participant's rights and interest under
the Plan may not be assigned or transferred other than by will or the laws of descent and distribution, and during the lifetime
of a Participant, only the Participant personally (or the Participant's personal representative) may exercise rights under the
Plan. The Participant's Beneficiary may exercise the Participant's rights to the extent they are exercisable under the Plan following
the death of the Participant. Notwithstanding the foregoing, to the extent permitted under Section 16(b) of the Exchange Act with
respect to Participants subject to such Section, the Committee may grant Non-Qualified Stock Options that are transferable, without
payment of consideration, to immediate family members of the Participant or to trusts or partnerships for such family members,
and the Committee may also amend outstanding Non-Qualified Stock Options to provide for such transferability.

 

    	 	12	 

     

    

 

11.05.    Taxes.
The Company shall be entitled, if the Committee deems it necessary or desirable, to withhold (or secure payment from the Participant
in lieu of withholding) the amount of any withholding or other tax required by law to be withheld or paid by the Company with respect
to any amount payable and/or shares issuable under such Participant's Award, or with respect to any income recognized upon a disqualifying
disposition of shares received pursuant to the exercise of an Incentive Stock Option, and the Company may defer payment or issuance
of the cash or shares upon exercise or vesting of an Award unless indemnified to its satisfaction against any liability for any
such tax. The amount of such withholding or tax payment shall be determined by the Committee and shall be payable by the Participant
at such time as the Committee determines in accordance with the following rules:

 

(a)       The
Participant shall have the right to elect to meet his or her withholding requirement (i) by having withheld from such Award at
the appropriate time that number of shares of Common Stock, rounded down to the nearest whole share, whose Fair Market Value is
equal to the amount of withholding taxes due, (ii) by direct payment to the Company in cash of the amount of any taxes required
to be withheld with respect to such Award, or (iii) by a combination of shares and cash.

 

(b)       In
the case of Participants who are subject to Section 16 of the Exchange Act, the Committee may impose such limitations and restrictions
as it deems necessary or appropriate with respect to the delivery or withholding of shares of Common Stock to meet tax withholding
obligations.

 

11.06.    Surrender
of Awards; Authorization of Repricing. Any Award granted under the Plan may be surrendered to the Company for cancellation
on such terms as the Committee and the holder approve. Without requiring shareholder approval, the Committee may substitute a new
Award under this Plan in connection with the surrender by the Participant of an equity compensation award previously granted under
this Plan or any other plan sponsored by the Company, including the substitution or grant of (i) an Option or Stock Appreciation
Right with a lower exercise price than the Option or Stock Appreciation Right being surrendered, (ii) a different type of Award
upon the surrender or cancellation of an Option or Stock Appreciation Right with an exercise price above the Fair Market Value
of the underlying Common Stock on the date of such substitution or grant, or (iii) any other Award constituting a repricing of
an Option or Stock Appreciation Right.

 

11.07.    Adjustments
to Reflect Capital Changes.

 

(a)       Recapitalization.
In the event of any corporate event or transaction (including, but not limited to, a change in the Common Stock or the capitalization
of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation,
stock dividend, stock split, reverse stock split, split up, spin-off or other distribution of stock or property of the Company,
a combination or exchange of Common Stock, dividend in kind or other like change in capital structure, number of outstanding shares
of Common Stock, distribution (other than normal cash dividends) to shareholders of the Company or any similar corporate event
or transaction, the Committee, in order to prevent dilution or enlargement of Participants’ rights under this Plan, shall
make equitable and appropriate adjustments and substitutions, as applicable, to or of the number and kind of shares subject to
outstanding Awards, the Purchase Price or Exercise Price for such shares, the number and kind of shares available for future issuance
under the Plan and the maximum number of shares in respect of which Awards can be made to any Participant in any calendar year
and other determinations applicable to outstanding Awards. The Committee shall have the power and sole discretion to determine
the amount of the adjustment to be made in each case.

 

(b)       Merger.
In the event that the Company is a party to a Merger, outstanding Awards shall be subject to the agreement of merger or reorganization.
Such agreement may provide, without limitation, for the continuation of outstanding Awards by the Company (if the Company is a
surviving corporation), for their assumption by the surviving corporation or its parent or subsidiary, for the substitution by
the surviving corporation or its parent or subsidiary of its own awards for such Awards, for accelerated vesting and accelerated
expiration or for settlement in cash or cash equivalents.

 

(c)       Options
to Purchase Shares or Stock of Acquired Companies. After any Merger in which the Company or an Affiliate shall be a surviving
corporation, the Committee may grant substituted options under the provisions of the Plan, pursuant to Section 424 of the Code,
replacing old options granted under a plan of another party to the Merger whose shares or stock subject to the old options may
no longer be issued following the Merger. The foregoing adjustments and manner of application of the foregoing provisions shall
be determined by the Committee in its sole discretion. Any such adjustments may provide for the elimination of any fractional shares
which might otherwise become subject to any Options.

 

    	 	13	 

     

    

 

11.08.    No
Right to Continued Service. No person shall have any claim of right to be granted an Award under this Plan. Neither the Plan
nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the service of the Company
or any of its Subsidiaries.

 

11.09.    Awards
Not Includable for Benefit Purposes. Payments received by a Participant pursuant to the provisions of the Plan shall not be
included in the determination of benefits under any pension, group insurance or other benefit plan applicable to the Participant
which is maintained by the Company or any of its Subsidiaries, except as may be provided under the terms of such plans or determined
by the Board.

  

11.10.    Governing
Law. All determinations made and actions taken pursuant to the Plan shall be governed by the laws of Nevada and
construed in accordance therewith.

 

11.11.    No Strict
Construction. No rule of strict construction shall be implied against the Company, the Committee or any other person in the
interpretation of any of the terms of the Plan, any Award granted under the Plan or any rule or procedure established by the Committee.

 

11.12.    Compliance
with Rule 16b-3. It is intended that, unless the Committee determines otherwise, Awards under the Plan be eligible for exemption
under Rule 16b-3. The Board is authorized to amend the Plan and to make any such modifications to Award Agreements to comply with
Rule 16b-3, as it may be amended from time to time, and to make any other such amendments or modifications as it deems necessary
or appropriate to better accomplish the purposes of the Plan in light of any amendments made to Rule 16b-3.

 

11.13.    Captions.
The captions (i.e., all Section headings) used in the Plan are for convenience only, do not constitute a part of the Plan, and
shall not be deemed to limit, characterize or affect in any way any provisions of the Plan, and all provisions of the Plan shall
be construed as if no captions have been used in the Plan.

 

11.14.    Severability.
Whenever possible, each provision in the Plan and every Award at any time granted under the Plan shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of the Plan or any Award at any time granted under the
Plan shall be held to be prohibited by or invalid under applicable law, then (i) such provision shall be deemed amended to accomplish
the objectives of the provision as originally written to the fullest extent permitted by law, and (ii) all other provisions of
the Plan and every other Award at any time granted under the Plan shall remain in full force and effect.

 

11.15.    Amendment
and Termination.

 

(a)       Amendment.
The Board shall have complete power and authority to amend the Plan at any time; provided, however, that the Board shall not, without
the requisite affirmative approval of stockholders of the Company, make any amendment which requires stockholder approval under
the Code or under any other applicable law or rule of any stock exchange which lists Common Stock or Company Voting Securities.
No termination or amendment of the Plan may, without the consent of the Participant to whom any Award shall theretofore have been
granted under the Plan, adversely affect the right of such individual under such Award.

 

(b)       Termination.
The Board shall have the right and the power to terminate the Plan at any time. No Award shall be granted under the Plan after
the termination of the Plan, but the termination of the Plan shall not have any other effect and any Award outstanding at the time
of the termination of the Plan may be exercised after termination of the Plan at any time prior to the expiration date of such
Award to the same extent such Award would have been exercisable had the Plan not terminated.

 

11.16.    Foreign
Qualified Awards. Awards under the Plan may be granted to such employees of the Company and its Subsidiaries who are residing
in foreign jurisdictions as the Committee in its sole discretion may determine from time to time. The Committee may adopt such
supplements to the Plan as may be necessary or appropriate to comply with the applicable laws of such foreign jurisdictions and
to afford Participants favorable treatment under such laws; provided, however, that no Award shall be granted under any such supplement
with terms or conditions inconsistent with the provisions set forth in the Plan.

 

    	 	14	 

     

    

 

11.17.    Dividend
Equivalents. For any Award granted under the Plan, the Committee shall have the discretion, upon the Date of Grant or thereafter,
to establish a Dividend Equivalent Account with respect to the Award, and the applicable Award Agreement or an amendment thereto
shall confirm such establishment. If a Dividend Equivalent Account is established, the following terms shall apply:

 

(a)       Terms
and Conditions. Dividend Equivalent Accounts shall be subject to such terms and conditions as the Committee shall determine
and as shall be set forth in the applicable Award Agreement. Such terms and conditions may include, without limitation, for the
Participant’s Account to be credited as of the record date of each cash dividend on the Common Stock with an amount equal
to the cash dividends which would be paid with respect to the number of shares of Common Stock then covered by the related Award
if such shares of Common Stock had been owned of record by the Participant on such record date.

 

(b)       Unfunded
Obligation. Dividend Equivalent Accounts shall be established and maintained only on the books and records of the Company and
no assets or funds of the Company shall be set aside, placed in trust, removed from the claims of the Company's general creditors
or otherwise made available until such amounts are actually payable as provided hereunder.

 

11.18     Adjustment
of Performance Goals and Targets. Notwithstanding any provision of the Plan to the contrary, the Committee shall have
the authority to adjust any Performance Goal, performance target or other performance-based criteria established with respect to
any Award under the Plan if circumstances occur (including, but not limited to, unusual or nonrecurring events, changes in tax
laws or accounting principles or practices or changed business or economic conditions) that cause any such Performance Goal, performance
target or performance-based criteria to be inappropriate in the judgment of the Committee; provided, that with respect to any Award
that is intended to qualify for the "performance-based compensation" exception under Section 162(m) of the Code and the
regulations thereunder, any adjustment by the Committee shall be consistent with the requirements of Section 162(m) and the regulations
thereunder.

 

11.19     Legality
of Issuance. Notwithstanding any provision of this Plan or any applicable Award Agreement to the contrary, the Committee
shall have the sole discretion to impose such conditions, restrictions and limitations (including suspending exercises of Options
or Stock Appreciation Rights and the tolling of any applicable exercise period during such suspension) on the issuance of Common
Stock with respect to any Award unless and until the Committee determines that such issuance complies with (i) any applicable registration
requirements under the Securities Act of 1933 or the Committee has determined that an exemption therefrom is available, (ii) any
applicable listing requirement of any stock exchange on which the Common Stock is listed, (iii) any applicable Company policy or
administrative rules, and (iv) any other applicable provision of state, federal or foreign law, including foreign securities laws
where applicable.

 

11.20     Restrictions
on Transfer. Regardless of whether the offering and sale of Common Stock under the Plan have been registered under the
Securities Act of 1933 or have been registered or qualified under the securities laws of any state, the Company may impose restrictions
upon the sale, pledge or other transfer of such Common Stock (including the placement of appropriate legends on stock certificates)
if, in the judgment of the Company and its counsel, such restrictions are necessary or desirable to achieve compliance with the
provisions of the Securities Act of 1933, the securities laws of any state, the United States or any other applicable foreign law.

 

11.21     Further
Assurances. As a condition to receipt of any Award under the Plan, a Participant shall agree, upon demand of the Company,
to do all acts and execute, deliver and perform all additional documents, instruments and agreements which may be reasonably required
by the Company, to implement the provisions and purposes of the Plan.

 

    	 	15	 

     

    

Exhibit
A

 

NOTICE
OF GRANT OF [INCENTIVE/NON-QUALIFIED] STOCK OPTION AWARD

 

STARLIGHT
SUPPLY CHAIN MANAGEMENT COMPANY

2016
OMNIBUS INCENTIVE PLAN

 

FOR
GOOD AND VALUABLE CONSIDERATION, Starlight Supply Chain Management Company (the “Company”) hereby grants, pursuant
to the provisions of the Company’s 2016 OMNIBUS INCENTIVE PLAN (the “Plan”), to the Participant designated in
this Notice of Grant of [Incentive/Non-Qualified] Stock Option Award (the “Notice”) an option to
purchase the number of shares of the Common Stock of the Company set forth in the Notice (the “Shares”), subject to
certain restrictions as outlined below in this Notice and the additional provisions set forth in the attached Terms and Conditions
of Stock Option Award (collectively, the “Agreement”). Also enclosed is a copy of the information statement describing
important provisions of the Plan.

 

	 	Optionee:	[__________]

 

	Date
    of Grant:               ____________	Type
    of Option:  [Incentive/Non-Qualified] Stock Option
	Exercise
    Price per Share:           $____	Expiration
    Date:                ____________
	Total
    Number of 

    Shares Granted:                      _______	Total
    Exercise Price:                              $______
	Vesting
    Schedule:    [1/4 vesting on each of the first, second, third and fourth anniversaries of the date
    of the grant]
	Exercise
After Termination of Service:

         

        Termination
        of Service for any reason: any non-vested portion of the Option expires immediately;

         

        Termination
        of Service due to death or Disability: vested portion of the Option is exercisable by the Optionee (or, in the event
        of the Optionee’s death, the Optionee’s Beneficiary) for one year after the Optionee’s Termination;

         

        Termination
        of Service for any reason other than death or Disability: vested portion of the Option is exercisable for a period
        of ninety days following the Optionee’s Termination.

         

        In
        no event may this Option be exercised after the Expiration Date as provided above.

 

By
signing below, the Optionee agrees that this [Incentive/Non-Qualified] Stock Option Award is granted under and
governed by the terms and conditions of the Company’s 2016 OMNIBUS INCENTIVE PLAN and the attached Terms and Conditions.

 

	Participant	 	Starlight
    Supply Chain Management Company
	 	 	 	 
	 	 	By:	 
	 	 	Title:	             
	Date:	               	 	Date:	 

 

    	 	16	 

     

    

 

TERMS
AND CONDITIONS OF STOCK OPTION AWARD

 

1.            Grant
of Option. The Option granted to the Optionee and described in the Notice of Grant is subject to the terms and conditions
of the Plan, which is incorporated by reference in its entirety into these Terms and Conditions of Stock Option Award.

 

The
Board of Directors of the Company has authorized and approved the 2016 Omnibus Incentive Plan (the “Plan”), which
has been approved by the stockholders of the Company. The Committee has approved an award to the Optionee of a number of shares
of the Company’s Common Stock, conditioned upon the Participant’s acceptance of the provisions set forth in the Notice
and these Terms and Conditions within 60 days after the Notice and these Terms and Conditions are presented to the Optionee for
review. For purposes of the Notice and these Terms and Conditions, any reference to the Company shall include a reference to any
Affiliate.

 

If
designated in the Notice as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive
Stock Option as defined in Section 422 of the Code. Nevertheless, to the extent that the Option fails to meet the requirements
of an ISO under Section 422 of the Code, this Option shall be treated as a Non-Qualified Stock Option (“NSO”).

 

The
Company intends that this Option not be considered to provide for the deferral of compensation under Section 409A of the Code
and that this Agreement shall be so administered and construed. Further, the Company may modify the Plan and this Award to the
extent necessary to fulfill this intent.

 

2.            Exercise
of Option.

 

(a)          Right
to Exercise. This Option shall be exercisable, in whole or in part, during its term in accordance with the Vesting Schedule
set out in the Notice of Grant and with the applicable provisions of the Plan and this Option Agreement. No Shares shall be issued
pursuant to the exercise of an Option unless the issuance and exercise comply with applicable laws. Assuming such compliance,
for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is exercised
with respect to such Shares. The Committee may, in its discretion, (i) accelerate vesting of the Option, or (ii) extend the applicable
exercise period to the extent permitted under Section 6.03 of the Plan.

 

(b)          Method
of Exercise. The Optionee may exercise the Option by delivering an exercise notice in a form approved by the Company (the
“Exercise Notice”) which shall state the election to exercise the Option, the number of Shares with respect to which
the Option is being exercised and such other representations and agreements as may be required by the Company. The Exercise Notice
shall be accompanied by payment of the aggregate Exercise Price as to all Shares exercised. This Option shall be deemed to be
exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price.

 

(c)          Acceleration
of Vesting on Change in Control. Unless otherwise specified in the Notice of Grant, in the event of a Change in Control, no
accelerated vesting of any Options outstanding on the date of such Change in Control shall occur.

  

3.           Method
of Payment. If the Optionee elects to exercise the Option by submitting an Exercise Notice under Section 2(b) of this Agreement,
the aggregate Exercise Price (as well as any applicable withholding or other taxes) shall be paid by cash or check; provided,
however, that the Committee may consent, in its discretion, to payment in any of the following forms, or a combination of
them:

 

(a)          cash
or check;

 

    	 	17	 

     

    

 

(b)          a
“net exercise” (as described in the Plan) or such other consideration received by the Company under a cashless exercise
program approved by the Company in connection with the Plan;

 

(c)          surrender
of other Shares owned by the Optionee which have a Fair Market Value on the date of surrender equal to the aggregate Exercise
Price of the Exercised Shares and any applicable withholding; or

 

(d)          any
other consideration that the Committee deems appropriate and in compliance with applicable law.

 

4.           Restrictions
on Exercise. This Option may not be exercised until such time as the Plan has been approved by the stockholders of the Company,
or if the issuance of the Shares upon exercise or the method of payment of consideration for those shares would constitute a violation
of any applicable law or regulation.

 

5.           Non-Transferability
of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of the Optionee only by the Optionee [IF THE OPTION IS A NSO, THE FOLLOWING LANGUAGE
MAY BE INCLUDED PERMITTING LIMITED TRANSFER OF THE OPTION] [; provided, however, that the Optionee may transfer the Options (i)
pursuant to a qualified domestic relations order (as defined by the Code or the rules thereunder) or (ii) to any member of the
Optionee’s Immediate Family or to a trust, limited liability company, family limited partnership or other equivalent vehicle,
established for the exclusive benefit of one or more members of his Immediate Family by delivering to the Company a Notice of
Assignment in a form acceptable to the Company. No transfer or assignment of the Option to or on behalf of an Immediate Family
member under this Section 5 shall be effective until the Company has acknowledged such transfer or assignment in writing. “Immediate
Family” means the Optionee’s parents, spouse, children, siblings and grandchildren. Following transfer, the Options
shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. In the event an
Option is transferred as contemplated in this Section 5, such Option may not be subsequently transferred by the transferee except
by will or the laws of descent and distribution.] The terms of the Plan and this Option Agreement shall be binding upon
the executors, administrators, heirs, successors and assigns of the Optionee.

 

6.           Term
of Option. This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such
term only in accordance with the Plan and these Terms and Conditions. 

 

7.           Withholding.

 

(a)          The
Committee shall determine the amount of any withholding or other tax required by law to be withheld or paid by the Company with
respect to any income recognized by the Optionee with respect to the Option Award.

 

(b)          The
Optionee shall be required to meet any applicable tax withholding obligation in accordance with the provisions of Section 11.05
of the Plan.

 

(c)          Subject
to any rules prescribed by the Committee, the Optionee shall have the right to elect to meet any withholding requirement (i) by
having withheld from this Award at the appropriate time that number of whole shares of Common Stock whose fair market value is
equal to the amount of any taxes required to be withheld with respect to such Award, (ii) by direct payment to the Company in
cash of the amount of any taxes required to be withheld with respect to such Award, or (iii) by a combination of shares and cash.

 

8.           Defined
Terms. Capitalized terms used but not defined in the Notice and these Terms and Conditions shall have the meanings set forth
in the Plan, unless such term is defined in any Employment Agreement between the Optionee and the Company or an Affiliate. Any
terms used in the Notice and these Terms and Conditions, but defined in the Optionee’s Employment Agreement are incorporated
herein by reference and shall be effective for purposes of the Notice and these Terms and Conditions without regard to the continued
effectiveness of the Employment Agreement.

 

    	 	18	 

     

    

 

9.           Optionee
Representations. The Optionee hereby represents to the Company that the Optionee has read and fully understands the provisions
of the Notice, these Terms and Conditions and the Plan and the Optionee’s decision to participate in the Plan is completely
voluntary. Further, the Optionee acknowledges that the Optionee is relying solely on his or her own advisors with respect to the
tax consequences of this stock option award.

 

10.         Regulatory
Limitations on Exercises. Notwithstanding the other provisions of this Agreement, no option exercise or issuance of shares
of Common Stock pursuant to this Agreement shall be effective if (i) the shares reserved under the Plan are not subject to an
effective registration statement at the time of such exercise or issuance, or otherwise eligible for an exemption from registration,
or (ii) the Company determines in good faith that such exercise or issuance would violate any applicable securities or other law
or regulation.

 

11.         Miscellaneous.

 

(a)          Notices.
All notices, requests, deliveries, payments, demands and other communications which are required or permitted to be given under
these Terms and Conditions shall be in writing and shall be either delivered personally or sent by registered or certified mail,
or by private courier, return receipt requested, postage prepaid to the parties at their respective addresses set forth herein,
or to such other address as either shall have specified by notice in writing to the other. Notice shall be deemed duly given hereunder
when delivered or mailed as provided herein.

 

(b)          Waiver.
The waiver by any party hereto of a breach of any provision of the Notice or these Terms and Conditions shall not operate or be
construed as a waiver of any other or subsequent breach.

  

(c)          Entire
Agreement. These Terms and Conditions, the Notice and the Plan constitute the entire agreement between the parties with respect
to the subject matter hereof.

 

(d)          Binding
Effect; Successors. These Terms and Conditions shall inure to the benefit of and be binding upon the parties hereto and to
the extent not prohibited herein, their respective heirs, successors, assigns and representatives. Nothing in these Terms and
Conditions, express or implied, is intended to confer on any person other than the parties hereto and as provided above, their
respective heirs, successors, assigns and representatives any rights, remedies, obligations or liabilities.

 

(e)          Governing
Law. The Notice and these Terms and Conditions shall be governed by and construed in accordance with the laws of the State
of Nevada.

 

(f)          Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of these Terms and Conditions.

 

(g)          Conflicts;
Amendment. The provisions of the Plan are incorporated in these Terms and Conditions in their entirety. In the event of any
conflict between the provisions of these Terms and Conditions and the Plan, the provisions of the Plan shall control. The Agreement
may be amended at any time by written agreement of the parties hereto.

 

(h)          No
Right to Continued Employment. Nothing in the Notice or these Terms and Conditions shall confer upon the Optionee any right
to continue in the employ or service of the Company or affect the right of the Company to terminate the Optionee’s employment
or service at any time.

 

(i)          Further
Assurances. The Optionee agrees, upon demand of the Company or the Committee, to do all acts and execute, deliver and perform
all additional documents, instruments and agreements which may be reasonably required by the Company or the Committee, as the
case may be, to implement the provisions and purposes of the Notice and these Terms and Conditions and the Plan.

 

    	 	19	 

     

    

Exhibit
B

 

NOTICE
OF GRANT OF RESTRICTED STOCK AWARD

 

STARLIGHT
SUPPLY CHAIN MANAGEMENT COMPANY

2016
OMNIBUS INCENTIVE PLAN

 

FOR
GOOD AND VALUABLE CONSIDERATION, Starlight Supply Chain Management Company (the “Company”) hereby grants, pursuant
to the provisions of the Company’s 2016 OMNIBUS INCENTIVE PLAN (the “Plan”), to the Participant designated in
this Notice of Grant of Restricted Stock Award (the “Notice”) the number of shares of the Common Stock of the Company
set forth in the Notice, subject to certain restrictions as outlined below in this Notice and the additional provisions set forth
in the attached Terms and Conditions of Restricted Stock Award (the “Agreement”). Also enclosed is a copy of the information
statement describing important provisions of the Plan.

 

	Participant:	[__________]
	 	 
	Grant
    Date:	[__________]

 

	#
    of Shares of Restricted Stock:	[________]

 

Purchase
Price:         Subject to the withholding provisions of Paragraph 5 of the Terms
and Conditions, this Restricted Stock Award does not require the Participant to pay any purchase price or other cash consideration
in connection with the issuance or delivery of the Restricted Stock.

 

Vesting
Schedule:         Subject to the provisions contained in Paragraphs 4, 5 and
6 of the Terms and Conditions, this Restricted Stock Award shall vest, and the applicable restrictions set forth in the Terms
and Conditions shall lapse in accordance with the following schedule, in the event the Participant does not have a Termination
of Service prior to the applicable vesting date:

 

	Date of Vesting	 	Cumulative

 Amount Vested	 
	[Sample Vesting Schedule]	 	 	 	 
	First Anniversary of Grant Date	 	 	25	%
	Second Anniversary of Grant Date	 	 	50	%
	Third Anniversary of Grant Date	 	 	75	%
	Fourth Anniversary of Grant Date	 	 	100	%]

 

Change
in Control: Unless otherwise specified in this Notice of Grant, no accelerated vesting of any Restricted Shares shall
occur in the event of a Change in Control.

 

Forfeiture: The
Participant’s rights in the Restricted Stock Award on which the restrictions have not lapsed pursuant to the vesting schedule
provisions above shall be forfeited in full in the event of the Participant’s Termination of Service for any reason.

 

By
signing below, the Participant agrees that this Restricted Stock Award is granted under and governed by the terms and conditions
of the Company’s 2016 Omnibus Incentive Plan and the attached Terms and Conditions.

 

	Participant	 	Starlight
    Supply Chain Management Company
	 	 	 	 
	 	 	By:	 
	 	 	Title:	         
	Date:	            	 	Date:	 

 

    	 	20	 

     

    

  

TERMS
AND CONDITIONS OF RESTRICTED STOCK AWARD

 

These
Terms and Conditions of Restricted Stock Award relates to the Notice of Grant of Restricted Stock Award (the “Notice”)
attached hereto, by and between Starlight Supply Chain Management Company (the “Company”) and the person identified
in the Notice (the “Participant”).

 

The
Board of Directors of the Company has authorized and approved the 2016 OMNIBUS INCENTIVE PLAN (the “Plan”), which
has been approved by the stockholders of the Company. The Committee has approved an award to the Participant of a number of shares
of the Company’s Common Stock, conditioned upon the Participant’s acceptance of the provisions set forth in the Notice
and these Terms and Conditions within 60 days after the Notice and these Terms and Conditions are presented to the Participant
for review. For purposes of the Notice and these Terms and Conditions, any reference to the Company shall include a reference
to any Affiliate.

 

	 	1.	Grant
    of Restricted Stock.

 

(a)        Subject
to the terms and conditions of the Plan, as of the Grant Date, the Company grants to the Participant the number of shares of Common
Stock set forth in the Notice (the “Restricted Shares”), subject to the restrictions set forth in Paragraph 2 of these
Terms and Conditions, the provisions of the Plan and the other provisions contained in these Terms and Conditions. If and when
the restrictions set forth in Paragraph 2 expire in accordance with these Terms and Conditions without forfeiture of the Restricted
Shares, and upon the satisfaction of all other applicable conditions as to the Restricted Shares, such shares shall no longer
be considered Restricted Shares for purposes of these Terms and Conditions.

 

(b)        As
soon as practicable after the Grant Date, the Company shall direct that a stock certificate or certificates representing the applicable
Restricted Shares be registered in the name of and issued to the Participant. Such certificate or certificates shall be held in
the custody of the Company or its designee until the expiration of the applicable Restricted Period (as defined in Paragraph 3).
On or before the date of execution of the Notice, the Participant has delivered to the Company one or more stock powers endorsed
in blank relating to the Restricted Shares.

 

(c)        Except
as provided in Paragraph 1(d), in the event that a certificate for the Restricted Shares is delivered to the Participant, such
certificate shall bear the following legend (the “Legend”):

 

	 	 	The
    ownership and transferability of this certificate and the shares of stock represented hereby are subject to the terms and
    conditions (including forfeiture) of the Starlight Supply Chain Management Company 2016 OMNIBUS INCENTIVE PLAN and a Restricted
    Stock Award Notice entered into between the registered owner and Starlight Supply Chain Management Company. Copies of such
    Plan and Notice are on file in the executive offices of Starlight Supply Chain Management Company

 

In
addition, the stock certificate or certificates for the Restricted Shares shall be subject to such stop-transfer orders and other
restrictions as the Company may deem advisable under the rules, regulations and other requirements of the Securities and Exchange
Commission, any stock exchange upon which the Common Stock is then listed and any applicable federal or state securities law,
and the Company may cause a legend or legends to be placed on such certificate or certificates to make appropriate reference to
such restrictions.

 

    	 	21	 

     

    

 

(d)        As
soon as administratively practicable following the expiration of the Restricted Period without a forfeiture of the Restricted
Shares, and upon the satisfaction of all other applicable conditions as to the Restricted Shares, including, but not limited to,
the payment by the Participant of all applicable withholding taxes, the Company shall deliver or cause to be delivered to the
Participant a certificate or certificates for the applicable Restricted Shares which shall not bear the Legend.

 

	 	2.	Restrictions.

 

(a)         The
Participant shall have all rights and privileges of a stockholder as to the Restricted Shares, including the right to vote and
receive dividends or other distributions with respect to the Restricted Shares, except that the following restrictions shall apply:

 

(i)    the Participant shall not be entitled to delivery of the certificate or certificates for the Restricted Shares until the expiration
of the Restricted Period without a forfeiture of the Restricted Shares and upon the satisfaction of all other applicable conditions;

 

(ii) 
none of the Restricted Shares may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted
Period applicable to such shares, except as provided in Section 7.02(c) of the Plan or as otherwise permitted by the Committee
in its sole discretion or pursuant to rules adopted by the Committee in accordance with the Plan; and

 

(iii) 
all of the Restricted Shares shall be forfeited and returned to the Company and all rights of the Participant with respect to
the Restricted Shares shall terminate in their entirety on the terms and conditions set forth in Paragraph 4.

 

(b)         Any
attempt to dispose of Restricted Shares or any interest in the Restricted Shares in a manner contrary to the restrictions set
forth in these Terms and Conditions shall be void and of no effect.

 

3.           Restricted
Period and Vesting. The “Restricted Period” is the period beginning on the Grant Date and ending on the date the
Restricted Shares, or such applicable portion of the Restricted Shares, are deemed vested under the schedule set forth in the
Notice. The Restricted Shares shall be deemed vested and no longer subject to forfeiture under Paragraph 4 in accordance with
the vesting schedule set forth in the Notice or earlier, if specified in the Notice, in the event of a Change in Control.

 

	 	4.	Forfeiture.

 

(a)       Subject
to Paragraph 6 below, if during the Restricted Period (i) the Participant incurs a Termination of Service, (ii) there
occurs a material breach of the Notice or these Terms and Conditions by the Participant, or (iii) the Participant fails to meet
the tax withholding obligations described in Paragraph 5(b), all rights of the Participant to the Restricted Shares that have
not vested in accordance with Paragraph 3 as of the date of such termination shall terminate immediately and be forfeited in their
entirety.

 

(b)       In
the event of any forfeiture under this Paragraph 4, the certificate or certificates representing the forfeited Restricted Shares
shall be canceled to the extent of any Restricted Shares that were forfeited.

 

	 	5.	Withholding.

 

(a)       The
Committee shall determine the amount of any withholding or other tax required by law to be withheld or paid by the Company with
respect to any income recognized by the Participant with respect to the Restricted Shares.

 

    	 	22	 

     

    

 

(b)       The
Participant shall be required to meet any applicable tax withholding obligation in accordance with the provisions of Section 11.05
of the Plan.

 

(c)       Subject
to any rules prescribed by the Committee, the Participant shall have the right to elect to meet any withholding requirement (i)
by having withheld from this Award at the appropriate time that number of whole shares of Common Stock whose fair market value
is equal to the amount of any taxes required to be withheld with respect to such Award, (ii) by direct payment to the Company
in cash of the amount of any taxes required to be withheld with respect to such Award, or (iii) by a combination of shares and
cash.

 

6.           Committee
Discretion. Notwithstanding any provision of the Notice or these Terms and Conditions to the contrary, the Committee shall
have discretion under the Plan to waive any forfeiture of the Restricted Shares as set forth in Paragraph 4, the Restricted Period
and any other conditions set forth in the Notice or these Terms and Conditions.

 

7.           Defined
Terms. Capitalized terms used but not defined in the Notice and Agreement shall have the meanings set forth in the Plan, unless
such term is defined in any Employment Agreement between the Participant and the Company or an Affiliate. Any terms used in the
Notice and Agreement, but defined in the Participant’s Employment Agreement are incorporated herein by reference and shall
be effective for purposes of the Notice and these Terms and Conditions without regard to the continued effectiveness of the Employment
Agreement.

 

 8.          Nonassignability.
The Restricted Shares may not be sold, assigned, transferred (other than by will or the laws of descent and distribution, or to
an inter vivos trust with respect to which the Participant is treated as the owner under Sections 671 through 677 of the Code),
pledged, hypothecated, or otherwise encumbered or disposed of until the restrictions on such Shares, as set forth in the Notice
and Agreement, have lapsed or been removed.

 

9.           Participant
Representations. The Participant hereby represents to the Company that the Participant has read and fully understands the
provisions of the Notice, these Terms and Conditions and the Plan and the Participant’s decision to participate in the Plan
is completely voluntary. Further, the Participant acknowledges that the Participant is relying solely on his or her own advisors
with respect to the tax consequences of this restricted stock award.

 

10.         Regulatory
Restrictions on the Restricted Shares. Notwithstanding any other provision of the Plan, the obligation of the Company to issue
Restricted Shares under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory
body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of the Restricted Shares
pursuant to these Terms and Conditions prior to the satisfaction of all legal requirements relating to the issuance of such shares,
to their registration, qualification or listing or to an exemption from registration, qualification or listing.

 

11.          Miscellaneous.

 

(a)       Notices.
All notices, requests, deliveries, payments, demands and other communications which are required or permitted to be given under
these Terms and Conditions shall be in writing and shall be either delivered personally or sent by registered or certified mail,
or by private courier, return receipt requested, postage prepaid to the parties at their respective addresses set forth herein,
or to such other address as either shall have specified by notice in writing to the other. Notice shall be deemed duly given hereunder
when delivered or mailed as provided herein.

 

(b)       Waiver.
The waiver by any party hereto of a breach of any provision of the Notice or these Terms and Conditions shall not operate or be
construed as a waiver of any other or subsequent breach.

 

    	 	23	 

     

    

 

(c)       Entire
Agreement. These Terms and Conditions, the Notice and the Plan constitute the entire agreement between the parties with respect
to the subject matter hereof

 

(d)       Binding
Effect; Successors. These Terms and Conditions shall inure to the benefit of and be binding upon the parties hereto and to
the extent not prohibited herein, their respective heirs, successors, assigns and representatives. Nothing in these Terms and
Conditions, express or implied, is intended to confer on any person other than the parties hereto and as provided above, their
respective heirs, successors, assigns and representatives any rights, remedies, obligations or liabilities.

 

(e)       Governing
Law. The Notice and these Terms and Conditions shall be governed by and construed in accordance with the laws of the State
of Nevada.

 

(f)       Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of these Terms and Conditions.

 

(g)       Conflicts;
Amendment. The provisions of the Plan are incorporated in these Terms and Conditions in their entirety. In the event of any
conflict between the provisions of these Terms and Conditions and the Plan, the provisions of the Plan shall control. The Agreement
may be amended at any time by written agreement of the parties hereto.

 

(h)       No
Right to Continued Employment. Nothing in the Notice or these Terms and Conditions shall confer upon the Participant any right
to continue in the employ or service of the Company or affect the right of the Company to terminate the Participant’s employment
or service at any time.

 

(i)       Further
Assurances. The Participant agrees, upon demand of the Company or the Committee, to do all acts and execute, deliver and perform
all additional documents, instruments and agreements which may be reasonably required by the Company or the Committee, as the
case may be, to implement the provisions and purposes of the Notice and these Terms and Conditions and the Plan.

 

    	 	24	 

     

    

 

Exhibit
C

 

NOTICE
OF GRANT OF RESTRICTED STOCK UNIT AWARD

 

STARLIGHT
SUPPLY CHAIN MANAGEMENT COMPANY

2016
OMNIBUS INCENTIVE PLAN

 

FOR
GOOD AND VALUABLE CONSIDERATION, Starlight Supply Chain Management Company (the “Company”) hereby grants,
pursuant to the provisions of the Company’s 2016 OMNIBUS INCENTIVE PLAN (the “Plan”), to the Participant designated
in this Notice of Grant of Restricted Stock Unit Award (the “Notice”) the number of shares of the Common Stock of
the Company set forth in the Notice, subject to certain restrictions as outlined below in this Notice and the additional provisions
set forth in the attached Terms and Conditions of Restricted Stock Unit Award (the “Agreement”). Also enclosed is
a copy of the information statement describing important provisions of the Plan.

 

	 	Participant:	[__________]

 

	 	Grant
    Date:	[__________]

 

#
of Restricted Stock Units:      [________]

 

Purchase
Price: Subject to the withholding provisions of Paragraph 5 of the Terms and Conditions, this Restricted Stock Unit Award
does not require the Participant to pay any purchase price or other cash consideration in connection with this Award, including
the issuance or delivery of Common Stock upon vesting of the Award.

 

Vesting
Schedule: Subject to the provisions contained in Paragraphs 4, 5 and 6 of the Terms and Conditions, this Restricted Stock
Unit Award shall vest, and the applicable restrictions set forth in the Terms and Conditions shall lapse in accordance with the
following schedule, in the event the Participant does not have a Termination of Service prior to the applicable vesting date:

 

	Date of Vesting	 	Cumulative

 Amount Vested	 
	[Sample Vesting Schedule]	 	 	 	 
	First Anniversary of Grant Date	 	 	25	%
	Second Anniversary of Grant Date	 	 	50	%
	Third Anniversary of Grant Date	 	 	75	%
	Fourth Anniversary of Grant Date	 	 	100	%]

 

Change
in Control: Unless otherwise specified in this Notice, no accelerated vesting of any Restricted Stock Units shall occur
in the event of a Change in Control of the Company (as defined in and subject to the provisions of the Plan).

 

Forfeiture: The
Participant’s rights in the Restricted Stock Unit Award on which the restrictions have not lapsed pursuant to the vesting
schedule provisions above shall be forfeited in full in the event of the Participant’s Termination of Service for any reason.

 

By
signing below, the Participant agrees that this Restricted Stock Unit Award is granted under and governed by the terms and conditions
of the Company’s 2016 Omnibus Incentive Plan and the attached Terms and Conditions.

 

	Participant	 	Starlight
    Supply Chain Management Company
	 	 	 
	 	 	By:	              
	 	 	 	Title:	 
	Date:	               	 	Date:	 

 

    	 	25	 

     

    

 

TERMS
AND CONDITIONS OF RESTRICTED STOCK UNIT AWARD

 

These
Terms and Conditions of Restricted Stock Unit Award relates to the Notice of Grant of Restricted Stock Unit Award (the “Notice”)
attached hereto, by and between Starlight Supply Chain Management Company (the “Company”), and the person identified
in the Notice (the “Participant”).

 

The
Board of Directors of the Company has authorized and approved the 2016 OMNIBUS INCENTIVE PLAN (the “Plan”), which
has been approved by the Company’s stockholders. The Committee has approved an award to the Participant of a number of shares
of the Company’s Common Stock, conditioned upon the Participant’s acceptance of the provisions set forth in the Notice
and these Terms and Conditions within 60 days after the Notice and these Terms and Conditions are presented to the Participant
for review. For purposes of the Notice and these Terms and Conditions, any reference to the Company shall include a reference
to any Affiliate.

 

1.           Grant
of Restricted Stock Units.

 

(a)          As
of the Grant Date set forth in the Notice of Grant, the Company grants to the Participant the number of Restricted Stock Units
set forth in the Notice of Grant (the “Units”), which represent shares of the Company’s Common Stock. The Units
are subject to the restrictions set forth in Paragraph 2 of this Agreement, these Terms and Conditions, the provisions of the
Plan and the other provisions contained in these Terms and Conditions.

 

(b)          The
Units granted under this Agreement shall be reflected in a bookkeeping account maintained by the Company during the Restricted
Period. If and when the restrictions set forth in Paragraph 2 expire in accordance with the terms of this Agreement, and upon
the satisfaction of all other applicable conditions as to the Units, such Units (and any related Dividend Units described in Paragraph
1(c) below) not forfeited pursuant to Paragraph 4 hereof shall be settled in cash or shares of Common Stock as provided in Paragraph
1(e) of this Agreement and otherwise in accordance with the Plan.

 

(c)
         With respect to each Unit, whether or not vested, that has not been forfeited
(but only to the extent such award of Units has not been settled for cash or Common Stock), the Company shall, with respect to
any cash dividends paid on the Common Stock, accrue and credit to the Participant’s bookkeeping account a number of Units
having a Fair Market Value as of the date such dividend is paid equal to the cash dividends that would have been paid with respect
to such Unit if it were an outstanding share of Common Stock (the “Dividend Units”). These Dividend Units thereafter
shall (i) be treated as Units for purposes of future dividend accruals pursuant to this Paragraph 1(c), and (ii) vest in such
amounts (rounded to the nearest whole Unit) at the same time as the Units with respect to which such Dividend Units were received.
Any dividends or distributions on Common Stock paid other than in cash shall accrue in the Participant’s bookkeeping account
and shall vest at the same time as the Units in respect of which they are made (in each case in the same form, based on the same
record date and at the same time, as such dividend or other distribution is paid on such Common Stock).

 

(d)          The
Company’s obligations under this Agreement (with respect to both the Units and the Dividend Units, if any) shall be unfunded
and unsecured, and no special or separate fund shall be established and no other segregation of assets shall be made. The rights
of Participant under this Agreement shall be no greater than those of a general unsecured creditor of the Company. In addition,
the Units shall be subject to such restrictions as the Company may deem advisable under the rules, regulations and other requirements
of the Securities and Exchange Commission, any stock exchange upon which Common Stock is then listed, any Company policy and any
applicable federal or state securities law.

 

    	 	26	 

     

    

 

(e)          Except
as otherwise provided in this Agreement, settlement of the Units in accordance with the provisions of this Paragraph 1(e) shall
be delivered as soon as practicable after the end of the Restricted Period, and upon the satisfaction of all other applicable
conditions as to the Units (including the payment by the Participant of all applicable withholding taxes). The Units so payable
to the Participant shall be paid solely in shares of Common Stock, solely in cash based on the Fair Market Value of the Common
Stock (determined as of the first business day next following the last day of the Restricted Period), or in a combination of the
two, as determined by the Committee in its sole discretion.

 

2.           Restrictions.

 

(a)          The
Participant shall have no rights as a stockholder of the Company by virtue of any Unit unless and until such Unit vests and resulting
shares of Common Stock are issued to the Participant:

 

(b)          None
of the Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period,
except as may be permitted by the Plan or as otherwise permitted by the Committee in its sole discretion or pursuant to rules
adopted by the Committee in accordance with the Plan.

 

(c)          Any
attempt to dispose of the Units or any interest in the Units in a manner contrary to the restrictions set forth in this Agreement
shall be void and of no effect.

 

3.           Restricted
Period and Vesting. The “Restricted Period” is the period beginning on the Grant Date and ending on
the date the Units, or such applicable portion of the Units, are deemed vested under the schedule set forth in the Notice. Subject
to the provisions contained in Paragraph 4, 5 and 6, the Units shall be deemed vested and no longer subject to forfeiture under
Paragraph 4 upon expiration of the Restricted Period, and the satisfaction of all other applicable conditions as to the Units
(including the payment by the Participant of all applicable withholding taxes).

 

4.           Forfeiture.

 

Subject
to Paragraph 6 hereof, if during the Restricted Period (i) the Participant incurs a Termination of Service, (ii) there
occurs a material breach of the Notice or these Terms and Conditions by the Participant, or (iii) the Participant fails to meet
the tax withholding obligations described in Paragraph 5(b) hereof, all rights of the Participant to the Units that have not vested
in accordance with Paragraph 3 as of the date of such termination shall terminate immediately and be forfeited in their entirety.

 

5.           Withholding.

 

(a)          The
Committee shall determine the amount of any withholding or other tax required by law to be withheld or paid by the Company with
respect to any income recognized by the Participant with respect to the Units.

 

(b)          The
Participant shall be required to meet any applicable tax withholding obligation in accordance with the provisions of the Plan.

 

(c)          Subject
to any rules prescribed by the Committee, the Participant shall have the right to elect to meet any withholding requirement (i)
by having withheld from this Award at the appropriate time that number of whole shares of Common Stock whose Fair Market Value
is equal to the amount of any taxes required to be withheld with respect to such Award, (ii) by direct payment to the Company
in cash of the amount of any taxes required to be withheld with respect to such Award, or (iii) by a combination of shares and
cash.

 

    	 	27	 

     

    

 

6.           Committee’s
Discretion. Notwithstanding any provision of this Agreement to the contrary, the Committee shall have discretion under
Section 7.02(b) of the Plan to waive any forfeiture of the Units as set forth in Paragraph 4 hereof, the Restricted Period and
any other conditions set forth in this Agreement.

 

7.           Defined
Terms. Capitalized terms used but not defined in the Notice and Agreement shall have the meanings set forth in the Plan,
unless such term is defined in any Employment Agreement between the Participant and the Company or an Affiliate. Any terms used
in the Notice and Agreement, but defined in the Participant’s Employment Agreement are incorporated herein by reference
and shall be effective for purposes of the Notice and these Terms and Conditions without regard to the continued effectiveness
of the Employment Agreement.

 

8.           Nonassignability. The
Units may not be sold, assigned, transferred (other than by will or the laws of descent and distribution, or to an inter vivos
trust with respect to which the Participant is treated as the owner under Sections 671 through 677 of the Code), pledged, hypothecated
or otherwise encumbered or disposed of until the restrictions on such Units, as set forth in the Notice and Agreement, have lapsed
or been removed.

 

9.           Participant
Representations. The Participant hereby represents to the Company that the Participant has read and fully understands
the provisions of the Notice, these Terms and Conditions and the Plan and the Participant’s decision to participate in the
Plan is completely voluntary. Further, the Participant acknowledges that the Participant is relying solely on his or her own advisors
with respect to the tax consequences of this restricted stock award.

 

10.          Regulatory
Restrictions on the Units. Notwithstanding any other provision of the Plan, the obligation of the Company to issue Common
Stock in connection with this Award under the Plan shall be subject to all applicable laws, rules and regulations and such approval
by any regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Common
Stock pursuant to these Terms and Conditions prior to the satisfaction of all legal requirements relating to the issuance of such
shares, to their registration, qualification or listing or to an exemption from registration, qualification or listing.

 

11.          Miscellaneous.

 

(a)       Notices.
All notices, requests, deliveries, payments, demands and other communications which are required or permitted to be given under
these Terms and Conditions shall be in writing and shall be either delivered personally or sent by registered or certified mail,
or by private courier, return receipt requested, postage prepaid to the parties at their respective addresses set forth herein,
or to such other address as either shall have specified by notice in writing to the other. Notice shall be deemed duly given hereunder
when delivered or mailed as provided herein.

 

(b)       Waiver.
The waiver by any party hereto of a breach of any provision of the Notice or these Terms and Conditions shall not operate or be
construed as a waiver of any other or subsequent breach.

 

(c)       Entire
Agreement. These Terms and Conditions, the Notice and the Plan constitute the entire agreement between the parties with respect
to the subject matter hereof.

 

(d)       Binding
Effect; Successors. These Terms and Conditions shall inure to the benefit of and be binding upon the parties hereto and to
the extent not prohibited herein, their respective heirs, successors, assigns and representatives. Nothing in these Terms and
Conditions, express or implied, is intended to confer on any person other than the parties hereto and as provided above, their
respective heirs, successors, assigns and representatives any rights, remedies, obligations or liabilities.

 

    	 	28	 

     

    

 

(e)       Governing
Law. The Notice and these Terms and Conditions shall be governed by and construed in accordance with the laws of the State
of Nevada.

 

(f)        Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of these Terms and Conditions.

 

(g)       Conflicts;
Amendment. The provisions of the Plan are incorporated in these Terms and Conditions in their entirety. In the event of any
conflict between the provisions of these Terms and Conditions and the Plan, the provisions of the Plan shall control. The Agreement
may be amended at any time by written agreement of the parties hereto.

 

(h)       No
Right to Continued Employment. Nothing in the Notice or these Terms and Conditions shall confer upon the Participant any right
to continue in the employ or service of the Company or affect the right of the Company to terminate the Participant’s employment
or service at any time.

 

(i)       Further
Assurances. The Participant agrees, upon demand of the Company or the Committee, to do all acts and execute, deliver and perform
all additional documents, instruments and agreements which may be reasonably required by the Company or the Committee, as the
case may be, to implement the provisions and purposes of the Notice and these Terms and Conditions and the Plan.

 

 

29Exhibit

Exhibit 10.1

Execution Version

NewLink Genetics Corporation
Up to $40,000,000 of
Shares of Common Stock
(par value $0.01 per share)
Controlled Equity OfferingSM 
Sales Agreement
November 29, 2016
Cantor Fitzgerald & Co.
499 Park Avenue
New York, NY 10022

Ladies and Gentlemen:
NewLink Genetics Corporation, a Delaware corporation (the “Company”), confirms its agreement (this “Agreement”) with Cantor Fitzgerald & Co. (the “Agent”), as follows:
1.    Issuance and Sale of Shares.  The Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the conditions set forth herein, it may issue and sell through the Agent, up to $40,000,000 of shares of common stock (the “Placement Shares”) of the Company, par value $0.01 per share (the “Common Stock”); provided, however, that in no event shall the Company issue or sell through the Agent such number or dollar amount of Placement Shares that would (a) exceed the number or dollar amount of shares of Common Stock registered on the effective Registration Statement (defined below) pursuant to which the offering is being made, (b) exceed the number of authorized but unissued shares of Common Stock, (c) exceed the number or dollar amount of shares of Common Stock permitted to be sold under Form S-3 (including General Instruction I.B.6 thereof, if applicable) or (d) exceed the number or dollar amount of shares of Common Stock for which the Company has filed a Prospectus Supplement (defined below) (the lesser of (a), (b), (c) and (d), the “Maximum Amount”).  Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in this Section 1 on the amount of Placement Shares issued and sold under this Agreement shall be the sole responsibility of the Company and that the Agent shall have no obligation in connection with such compliance; provided, that the Agent follows the trading instructions provided pursuant to any Placement Notice (as defined below), in all material respects.  The issuance and sale of Placement Shares through the Agent will be effected pursuant to the Registration Statement (as defined below) filed by the Company and declared effective by the Securities and Exchange Commission (the “Commission”) on July 28, 2015, although nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement to issue Common Stock.
The Company has filed, in accordance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations thereunder (the “Securities Act Regulations”), with the Commission a registration statement on Form S-3 (File No. 333-205234), including a base prospectus, relating to certain securities, including the Placement Shares to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations thereunder.  The Company has prepared a prospectus or a prospectus supplement to the base 

Exhibit 10.1

prospectus included as part of the registration statement, which prospectus or prospectus supplement relates to the Placement Shares to be issued from time to time by the Company (the “Prospectus Supplement”).  The Company will furnish to the Agent, for use by the Agent, copies of the prospectus included as part of such registration statement, as supplemented by the Prospectus Supplement, relating to the Placement Shares to be issued from time to time by the Company.  The Company may, but is under no obligation to, file one or more additional registration statements from time to time that will contain a base prospectus and related prospectus or prospectus supplement, if applicable (which shall be a Prospectus Supplement), with respect to the Placement Shares.  Except where the context otherwise requires, such registration statement(s), including all documents filed as part thereof or incorporated by reference therein, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act Regulations or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Act Regulations, is herein called the “Registration Statement.”  The base prospectus or base prospectuses, including all documents incorporated therein by reference, included in the Registration Statement, as it may be supplemented, if necessary, by the Prospectus Supplement, in the form in which such prospectus or prospectuses and/or Prospectus Supplement have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act Regulations, together with the then issued Issuer Free Writing Prospectus(es) (defined below), is herein called the “Prospectus.”  
Any reference herein to the Registration Statement, any Prospectus Supplement, Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and include the documents, if any, incorporated by reference therein (the “Incorporated Documents”), including, unless the context otherwise requires, the documents, if any, filed as exhibits to such Incorporated Documents. Any reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, any Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and include the filing of any document under the Exchange Act on or after the most-recent effective date of the Registration Statement, or the date of the Prospectus Supplement, Prospectus or such Issuer Free Writing Prospectus, as the case may be, and incorporated therein by reference.  For purposes of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include the most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval system, or if applicable, the Interactive Data Electronic Application system when used by the Commission (collectively, “EDGAR”).
2.    Placements.  Each time that the Company wishes to issue and sell Placement Shares hereunder (each, a “Placement”), it will notify the Agent by email notice (or other method mutually agreed to in writing by the parties) of the number of Placement Shares to be issued, the time period during which sales are requested to be made, any limitation on the number of Placement Shares that may be sold in any one day and any minimum price below which sales may not be made (a “Placement Notice”), the form of which is attached hereto as Schedule 1.  The Placement Notice shall originate from any of the individuals from the Company set forth on Schedule 3 (with a copy to each of the other individuals from the Company listed on such schedule), and shall be addressed to each of the individuals from the Agent set forth on Schedule 3, as such Schedule 3 may be amended from time to time.  The Placement Notice shall be effective unless and until (i) the Agent declines to accept the terms contained therein within two Business Days (as defined below) of receipt of the Placement Notice for any reason, in its sole discretion, (ii) the entire amount of the Placement Shares thereunder have been sold, (iii) the Company suspends or terminates the Placement Notice or (iv) this Agreement has been terminated under the provisions of Section 12.  The amount of any discount, commission or other compensation to be paid by the Company to the Agent in connection with the sale of the Placement Shares shall be calculated in accordance with the terms set forth in Schedule 2.  It is expressly acknowledged and agreed that neither the Company nor the Agent will have any obligation whatsoever with respect to a Placement or any Placement Shares unless and until the Company delivers a Placement Notice to the Agent 

Exhibit 10.1

and the Agent does not decline such Placement Notice pursuant to the terms set forth above, and then only upon the terms specified therein and herein.  In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control. 

3.    Sale of Placement Shares by the Agent.  Subject to the provisions of Section 5(a), the Agent, for the period specified in the Placement Notice, will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state and federal laws, rules and regulations and the rules of the NASDAQ Global Market (the “Exchange”), to sell the Placement Shares up to the amount specified, and otherwise in accordance with the terms of such Placement Notice.  The Agent will provide written confirmation to the Company no later than the opening of the Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such day, the compensation payable by the Company to the Agent pursuant to Section 2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization of the deductions made by the Agent (as set forth in Section 5(b)) from the gross proceeds that it receives from such sales.  Subject to the terms of the Placement Notice, the Agent may sell Placement Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) of the Securities Act Regulations, including without limitation sales made directly on or through the Exchange or any other existing trading market for the Common Stock, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices and/or any other method permitted by law.  During the term of this Agreement and notwithstanding anything to the contrary herein, the Agent agrees that in no event will the Agent or its affiliates engage in any market making, bidding, stabilization or other trading activity with regard to the Common Stock or related derivative securities if such activity would be prohibited under Regulation M under the Exchange Act (“Regulation M”) or other anti-manipulation rules under the Securities Act.  “Trading Day” means any day on which Common Stock is traded on the Exchange.

4.    Suspension of Sales.
(a)Suspension by Company or the Agent.  The Company or the Agent may, upon notice to the other party in writing (including by email correspondence to each of the individuals of the other party set forth on Schedule 3, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence to each of the individuals of the other party set forth on Schedule 3), suspend any sale of Placement Shares (a “Suspension”); provided, however, that such Suspension shall not affect or impair any party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt of such notice.  While a Suspension is in effect any obligation under Sections 7(l), 7(m), and 7(n) with respect to the delivery of certificates, opinions, or comfort letters to the Agent, shall be waived, provided, however, that such waiver shall not apply for the Representation Date (defined below) occurring on the date that the Company files its annual report on Form 10-K. Each of the parties agrees that no such notice under this Section 4 shall be effective against any other party unless it is made to and acknowledged by one of the individuals named on Schedule 3 hereto, as such Schedule may be amended from time to time.
(b)Material Non-Public Information.  Notwithstanding any other provision of this Agreement, the Company shall not offer or sell, or request the offer or sale of, any of the Placement Shares and, by notice to the Agent in writing (including by email correspondence to each of the individuals of the Agent set forth on Schedule 3 if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence to each of the individuals of the Agent set forth on Schedule 3), shall cancel any instructions for the offer or sale of any of the Placement Shares, and the 

Exhibit 10.1

Agent shall not be obligated to offer or sell any of the Placement Shares, during any period in which the Company is in possession of material non-public information.

5.    Sale and Delivery to the Agent; Settlement.
(a)    Sale of Placement Shares.  On the basis of the representations and warranties herein contained and subject to the terms and conditions herein set forth, upon the Agent’s acceptance of the terms of a Placement Notice, and unless the sale of the Placement Shares described therein has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement, the Agent, for the period specified in the Placement Notice, will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations to sell such Placement Shares up to the amount specified, and otherwise in accordance with the terms of such Placement Notice.  The Company acknowledges and agrees that (i) there can be no assurance that the Agent will be successful in selling Placement Shares, (ii) the Agent will incur no liability or obligation to the Company or any other person or entity if it does not sell Placement Shares for any reason other than a failure by the Agent to use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations to sell such Placement Shares as required under this Agreement and (iii) the Agent shall be under no obligation to purchase Placement Shares on a principal basis pursuant to this Agreement, except as otherwise agreed by the Agent and the Company.
(b)    Settlement of Placement Shares.  Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will occur on the third (3rd) Trading Day (or such earlier day as is industry practice for regular-way trading) following the date on which such sales are made (each, a “Settlement Date”).  The Agent shall notify the Company of each sale of Placement Shares on the date of such sale.  The amount of proceeds to be delivered to the Company on a Settlement Date against receipt of the Placement Shares sold (the “Net Proceeds”) will be equal to the aggregate sales price received by the Agent, after deduction for (i) the Agent’s commission, discount or other compensation for such sales payable by the Company pursuant to Section 2 hereof, and (ii) any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales.
(c) Delivery of Placement Shares.  On or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Placement Shares being sold by crediting the Agent’s or its designee’s account (provided the Agent shall have given the Company written notice of such designee at least one Trading Day prior to the Settlement Date) at The Depository Trust Company through its Deposit and Withdrawal at Custodian System or by such other means of delivery as may be mutually agreed upon by the parties hereto which in all cases shall be freely tradable, transferable, registered shares in good deliverable form.  On each Settlement Date, the Agent will deliver the related Net Proceeds in same day funds to an account designated by the Company on, or prior to, the Settlement Date.  The Company agrees that if the Company, or its transfer agent (if applicable), defaults in its obligation to deliver Placement Shares on a Settlement Date, the Company agrees that in addition to and in no way limiting the rights and obligations set forth in Section 10(a) hereto, it will (i) hold the Agent harmless against any loss, claim, damage, or expense (including reasonable legal fees and expenses), as incurred, arising out of or in connection with such default by the Company or its transfer agent (if applicable) and (ii) pay to the Agent any commission, discount, or other compensation to which it would otherwise have been entitled absent such default.
(d)Denominations; Registration.  Certificates for the Placement Shares, if any, shall be in such denominations and registered in such names as the Agent may request in writing at least one full Business Day (as defined below) before the Settlement Date.  The certificates for the Placement Shares, if any, will be made available by the Company for examination and packaging by the Agent in The City of New York not later than noon (New York time) on the Business Day prior to the Settlement Date.
(e)Limitations on Offering Size.  Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares if, after giving effect to the sale of such Placement Shares, the aggregate gross sales proceeds of Placement Shares sold pursuant to this Agreement would exceed the 

Exhibit 10.1

lesser of (i) together with all sales of Placement Shares under this Agreement, the Maximum Amount, (ii) the amount available for offer and sale under the currently effective Registration Statement and (iii) the amount authorized from time to time to be issued and sold under this Agreement by the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive committee, and notified to the Agent in writing.  Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares pursuant to this Agreement at a price lower than the minimum price authorized from time to time by the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive committee, and notified to the Agent in writing.  Further, under no circumstances shall the Company cause or permit the aggregate offering amount of Placement Shares sold pursuant to this Agreement to exceed the Maximum Amount. 

6.    Representations and Warranties of the Company.  The Company represents and warrants to, and agrees with the Agent that as of the date of this Agreement and as of each Applicable Time (as defined below):
(a)    Registration Statement and Prospectus.  The Company and the transactions contemplated by this Agreement meet the requirements for and comply with the applicable conditions set forth in Form S-3 (including General Instructions I.A and I.B) under the Securities Act.  The Registration Statement has been filed with the Commission and has been declared effective by the Commission under the Securities Act.  The Prospectus Supplement will name the Agent as the agent in the section entitled “Plan of Distribution.”  The Company has not received, and has no notice of, any order of the Commission preventing or suspending the use of the Registration Statement, or threatening or instituting proceedings for that purpose.  The Registration Statement and the offer and sale of Placement Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act and comply in all material respects with said Rule.  Any statutes, regulations, contracts or other documents that are required to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement have been so described or filed.  Copies of the Registration Statement, the Prospectus, and any such amendments or supplements and all Incorporated Documents that were filed with the Commission on or prior to the date of this Agreement have been delivered, or are available through EDGAR, to the Agent and its counsel.  The Company has not distributed and, prior to the later to occur of each Settlement Date and completion of the distribution of the Placement Shares, will not distribute any offering material in connection with the offering or sale of the Placement Shares other than the Registration Statement and the Prospectus and any Issuer Free Writing Prospectus (as defined below) to which the Agent has consented, any such consent not to be unreasonably withheld, conditioned or delayed.  The Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is currently listed on the Exchange under the trading symbol “NLNK.”  The Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act, delisting the Common Stock from the Exchange, nor has the Company received any notification that the Commission or the Exchange is contemplating terminating such registration or listing.  To the Company’s knowledge, it is in compliance with all applicable listing requirements of the Exchange.  The Company has no reason to believe that it will not in the foreseeable future continue to be in compliance with all such listing and maintenance requirements.
(b)    No Misstatement or Omission.  The Registration Statement, when it became or becomes effective, and the Prospectus, and any amendment or supplement thereto, on the date of such Prospectus or amendment or supplement, conformed and will conform in all material respects with the requirements of the Securities Act.  At each Settlement Date, the Registration Statement and the Prospectus, as of such date, will conform in all material respects with the requirements of the Securities Act.  The Registration Statement, when it became or becomes effective, did not, and will not, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.  The Prospectus and any amendment and supplement thereto, on the date thereof and at each Applicable Time (defined below), did not or will not include an untrue statement of a 

Exhibit 10.1

material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.  The Incorporated Documents did not, and any further Incorporated Documents filed after the date of this Agreement will not, when filed with the Commission, contain an untrue statement of a material fact or omit to state a material fact required to be stated in such document or necessary to make the statements in such document, in light of the circumstances under which they were made, not misleading.  The foregoing shall not apply to statements in, or omissions from, any such document made in reliance upon, and in conformity with, information furnished to the Company by the Agent specifically for use in the preparation thereof. 
(c)    Conformity with Securities Act and Exchange Act.  The Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or any amendment or supplement thereto, and the Incorporated Documents, when such documents were or are filed with the Commission under the Securities Act or the Exchange Act or became or become effective under the Securities Act, as the case may be, conformed or will conform in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable.
(d)    Financial Information.  The consolidated financial statements of the Company included or incorporated by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses, if any, together with the related notes and schedules, present fairly, in all material respects, the consolidated financial position of the Company and the Subsidiaries (as defined below) as of the dates indicated and the consolidated results of operations, cash flows and changes in stockholders’ equity of the Company for the periods specified and have been prepared in compliance with the requirements of the Securities Act and Exchange Act and in conformity with GAAP (as defined below) applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements or notes thereto, or (ii) in the case of unaudited financial statements, to the extent they may exclude footnotes or may be condensed or summary statements and subject to normal year-end audit adjustments); the other financial and statistical data with respect to the Company and the Subsidiaries (as defined below) contained or incorporated by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses, if any, are accurately and fairly presented and prepared on a basis consistent with the financial statements and books and records of the Company; there are no financial statements (historical or pro forma) that are required to be included or incorporated by reference in the Registration Statement, or the Prospectus that are not included or incorporated by reference as required; the Company and the Subsidiaries (as defined below) do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described in the Registration Statement, and the Prospectus; and all disclosures contained or incorporated by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses, if any, regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply in all material respects with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable. 
(e)    Conformity with EDGAR Filing.  The Prospectus delivered to the Agent for use in connection with the sale of the Placement Shares pursuant to this Agreement will be identical to the versions of the Prospectus created to be transmitted to the Commission for filing via EDGAR, except to the extent permitted by Regulation S‐T.
(f)Organization.  The Company and each of its Subsidiaries are, and will be, duly organized, validly existing as a corporation and in good standing under the laws of their respective jurisdictions of organization.  The Company and each of its Subsidiaries are, and will be, duly licensed or qualified as a foreign corporation for transaction of business and in good standing under the laws of each other jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses requires such license or qualification, and have all corporate power and authority necessary to own or hold their respective properties and to conduct their respective businesses as described in the Registration Statement and the Prospectus, except where the failure to be so qualified or in good standing or have such power or authority would not, individually or in the aggregate, have a material adverse effect or would reasonably be 

Exhibit 10.1

expected to have a material adverse effect on or affecting the assets, business, operations, earnings, properties, condition (financial or otherwise), prospects, stockholders’ equity or results of operations of the Company and the Subsidiaries taken as a whole, or prevent or materially interfere with consummation of the transactions contemplated hereby (a “Material Adverse Effect”).
(g)Subsidiaries.  The subsidiaries set forth on Schedule 4 (collectively, the “Subsidiaries”), are the Company’s only significant subsidiaries (as such term is defined in Rule 1‐02 of Regulation S‐X promulgated by the Commission).  Except as set forth in the Registration Statement and in the Prospectus, the Company owns, directly or indirectly, all of the equity interests of the Subsidiaries free and clear of any lien, charge, security interest, encumbrance, right of first refusal or other restriction, and all the equity interests of the Subsidiaries are validly issued and are fully paid, nonassessable and free of preemptive and similar rights.  
(h)No Violation or Default.  Neither the Company nor any of its Subsidiaries is (i) in violation of its charter or by‐laws or similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or to which any of the property or assets of the Company or any of its Subsidiaries are subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of each of clauses (ii) and (iii) above, for any such violation or default that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or which is set forth in the Registration Statement or the Prospectus.  To the Company’s knowledge, no other party under any material contract or other agreement to which it or any of its Subsidiaries is a party is in default in any respect thereunder where such default would reasonably be expected to have a Material Adverse Effect, except as set forth in the Registration Statement or the Prospectus.
(i)No Material Adverse Change.  Subsequent to the respective dates as of which information is given in the Registration Statement, the Prospectus and the Free Writing Prospectuses, if any (including any Incorporated Document), and other than the Company’s execution of this Agreement or the sale of any Placement Shares hereunder, there has not been (i) any Material Adverse Effect or the occurrence of any development that the Company reasonably expects will result in a Material Adverse Effect, (ii) any transaction which is material to the Company and the Subsidiaries taken as a whole, (iii) any obligation or liability, direct or contingent (including any off-balance sheet obligations), incurred by the Company or any Subsidiary, which is material to the Company and the Subsidiaries taken as a whole, (iv) any material change in the capital stock or outstanding long-term indebtedness of the Company or any of its Subsidiaries or (v) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company or any Subsidiary, other than in each case above in the ordinary course of business or as otherwise disclosed in the Registration Statement or Prospectus (including any document deemed incorporated by reference therein).
(j)Capitalization.  The issued and outstanding shares of capital stock of the Company have been validly issued, are fully paid and nonassessable and, other than as disclosed in the Registration Statement or the Prospectus, are not subject to any preemptive rights, rights of first refusal or similar rights.  The Company has an authorized, issued and outstanding capitalization as set forth in the Registration Statement and the Prospectus as of the dates referred to therein (other than the grant of additional options or restricted stock units or other equity awards under the Company’s existing equity compensation plans, or changes in the number of outstanding shares of Common Stock of the Company due to the issuance of shares upon the exercise or conversion of securities exercisable for, or convertible into, Common Stock outstanding on the date hereof) and such authorized capital stock conforms to the description thereof set forth in the Registration Statement and the Prospectus.  The description of the securities of the Company in the Registration Statement and the Prospectus is complete and accurate in all material respects.  Except as disclosed in or contemplated by the Registration Statement or the Prospectus, as of the date referred to therein, 

Exhibit 10.1

the Company did not have outstanding any options to purchase, or any rights or warrants to subscribe for, or any securities or obligations convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares of capital stock or other securities.
(k)Authorization; Enforceability.  The Company has full legal right, power and authority to enter into this Agreement and perform the transactions contemplated hereby.  This Agreement has been duly authorized, executed and delivered by the Company and is a legal, valid and binding agreement of the Company enforceable against the Company in accordance with its terms, except to the extent that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general equitable principles, and (ii) the indemnification and contribution provisions of Section 10 hereof may be limited by federal or state securities laws and public policy considerations in respect thereof.
(l)Authorization of Placement Shares.  The Placement Shares, when issued and delivered pursuant to the terms approved by the board of directors of the Company or a duly authorized committee thereof, or a duly authorized executive committee, against payment therefor as provided herein, will be duly and validly authorized and issued and fully paid and nonassessable, free and clear of any pledge, lien, encumbrance, security interest or other claim, including any statutory or contractual preemptive rights, resale rights, rights of first refusal or other similar rights, and will be registered pursuant to Section 12 of the Exchange Act.  The Placement Shares, when issued, will conform in all material respects to the description thereof set forth in or incorporated into the Prospectus.
(m)No Consents Required.  No consent, approval, authorization, order, registration or qualification of or with any court or arbitrator or governmental or regulatory authority is required for the execution, delivery and performance by the Company of this Agreement, the issuance and sale by the Company of the Placement Shares as contemplated hereby, except for such consents, approvals, authorizations, orders and registrations or qualifications as may be required under applicable state securities laws or by the by‐laws and rules of the Financial Industry Regulatory Authority (“FINRA”) or the Exchange in connection with the sale of the Placement Shares by the Agent.
(n)No Preferential Rights.  Except as set forth in the Registration Statement and the Prospectus, (i) no person, as such term is defined in Rule 1‐02 of Regulation S‐X promulgated under the Securities Act (each, a “Person”), has the right, contractual or otherwise, to cause the Company to issue or sell to such Person any Common Stock or shares of any other capital stock or other securities of the Company (other than upon the exercise of options or warrants to purchase Common Stock or upon the exercise or vesting of options or other equity awards that may be granted from time to time under the Company’s equity compensation plans), (ii) no Person has any preemptive rights, resale rights, rights of first refusal,  or any other rights (whether pursuant to a “poison pill” provision or otherwise) to purchase from the Company any Common Stock or shares of any other capital stock or other securities of the Company (other than upon the exercise of options or warrants to purchase Common Stock or upon the exercise or vesting of options or other equity awards that may be granted from time to time under the Company’s equity compensation plans), (iii)  no Person has the right to act as an underwriter or as a financial advisor to the Company in connection with the offer and sale of the Placement Shares, and (iv) no Person has the right, contractual or otherwise, to require the Company to register under the Securities Act any Placement Shares or shares of any other capital stock or other securities of the Company, or to include any such shares or other securities in the Registration Statement or the offering contemplated thereby, whether as a result of the filing or effectiveness of the Registration Statement or the sale of the Placement Shares as contemplated thereby or otherwise.
(o)Independent Public Accounting Firm.  KPMG LLP (the “Accountant”), whose report on the consolidated financial statements of the Company is filed with the Commission as part of the Company’s most recent Annual Report on Form 10-K filed with the Commission and incorporated by reference into the Registration Statement and the Prospectus, are and, during the periods covered by their report, were an independent registered public accounting firm within the meaning of the Securities Act and the Public Company Accounting Oversight Board (United States).  To the Company’s knowledge, the Accountant is 

Exhibit 10.1

not in violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) with respect to the Company.
(p)Enforceability of Agreements.  To the Company’s knowledge, all agreements between the Company and third parties expressly referenced in the Prospectus, other than such agreements that have expired by their terms or whose termination is disclosed in documents filed by the Company on EDGAR, are legal, valid and binding obligations of the Company enforceable in accordance with their respective terms, except to the extent that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general equitable principles and (ii) the indemnification provisions of certain agreements may be limited by federal or state securities laws or public policy considerations in respect thereof, except for any unenforceability that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.
(q)No Litigation.  Except as set forth in the Registration Statement or the Prospectus, there are no legal, governmental or regulatory actions, suits, or proceedings pending, nor, to the Company’s knowledge, any legal, governmental or regulatory audits or investigations to which the Company or a Subsidiary is a party or to which any property of the Company or any of its Subsidiaries is the subject that, individually or in the aggregate, if determined adversely to the Company or any of its Subsidiaries, would reasonably be expected to have a Material Adverse Effect or materially and adversely affect the ability of the Company to perform its obligations under this Agreement; and, to the Company’s knowledge, no such actions, suits, proceedings, audits or investigations are threatened or contemplated by any legal, governmental or regulatory authority or threatened by others; and (i) there are no current or pending legal, governmental or regulatory audits or investigations, actions, suits or proceedings that are required under the Securities Act to be described in the Prospectus that are not so described; and (ii) there are no contracts or other documents that are required under the Securities Act to be filed as exhibits to the Registration Statement that are not so filed.
(r)Consents and Permits.  Except as disclosed in the Registration Statement and the Prospectus, the Company and its Subsidiaries have made all material filings, applications and submissions, including any supplements or amendments thereto, required by, and possesses and is operating in compliance with, all material approvals, licenses, certificates, certifications, clearances, consents, grants, exemptions, registrations, marks, notifications, orders, permits and other authorizations issued by, the appropriate federal, state or foreign governmental or regulatory authorities (including, without limitation, the United States Food and Drug Administration (the “FDA”), the United States Drug Enforcement Administration or any other foreign, federal, state, provincial, court or local government or regulatory authorities including self-regulatory organizations engaged in the regulation of clinical trials, pharmaceuticals, biologics or biohazardous substances or materials) necessary for the ownership or lease of their respective properties or to conduct its businesses as described in the Registration Statement and the Prospectus (collectively, “Permits”); the Company and its Subsidiaries are in compliance with the terms and conditions of all such Permits, except where the failure to be in compliance would not reasonably be expected to have a Material Adverse Effect; all of the Permits are valid and in full force and effect; and neither the Company nor any of its Subsidiaries has received any written notice that any governmental or regulatory authority has taken, is taking or intends to take any action, and has no knowledge that any such governmental or regulatory authority is considering action, relating to the limitation, revocation, cancellation, suspension, modification or non-renewal of any such Permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would be material to the Company, nor has any reason to believe that any such Permit will not be renewed in the ordinary course. To the extent required by applicable laws and regulations of the FDA, the Company or the applicable Subsidiary has submitted to the FDA an Investigational New Drug Application or amendment or supplement thereto for each clinical trial it has conducted or sponsored or is conducting or sponsoring; all such submissions were in material compliance with applicable laws and rules and regulations when submitted and no material deficiencies have been asserted by the FDA with respect to any such submissions..

Exhibit 10.1

(s)Regulatory Filings.  Except as disclosed in the Registration Statement and the Prospectus, neither the Company nor any of its Subsidiaries has failed to file with the applicable governmental or regulatory authorities (including, without limitation, the FDA, or any foreign, federal, state, provincial or local governmental or regulatory authority performing functions similar to those performed by the FDA) any required filing, declaration, listing, registration, report document, form, notice, application, claim, submission, supplement or amendment, except for such failures that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect; except as disclosed in the Registration Statement and the Prospectus, all such filings, declarations, listings, registrations, reports, documents, forms, notices, applications, claims, submissions, supplements or amendments were complete, correct and in compliance with applicable laws on the date filed (or were corrected or supplemented by a subsequent submission) and no deficiencies have been asserted by any applicable governmental or regulatory authority with respect to any such filings, declarations, listings, registrations, reports, documents, forms, notices, applications, claims, submissions, supplements or amendments, except for any deficiencies or non-compliance that, individually or in the aggregate, would not have a Material Adverse Effect.  The Company is, and at all times has been, operating in all material respects in compliance with the Health Care Laws.  “Health Care Laws” means (i) the United States Federal Food, Drug, and Cosmetic Act (“FDCA”), and the Public Health Service Act and all applicable rules and regulations of the FDA and other federal, state, local and foreign governmental bodies exercising comparable authority, (ii) all applicable federal, state, local and foreign health care related fraud and abuse laws, including, without limitation, the U.S. Anti-Kickback Statute (42 U.S.C. Section 1320a-7h), the U.S. Civil False Claims Act (31 U.S.C. Sections 3729 et seq.), the criminal False Claims Law (42 U.S.C. Section 1320a-7b(a)), all criminal laws relating to health care fraud and abuse, including but not limited to 18 U.S.C. Sections 286 and 287, and the health care fraud criminal provisions under the U.S. Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) (42 U.S.C. Sections 1320d et seq.), the exclusion laws (42 U.S.C. Section 1320a-7), the civil monetary penalties law (42 U.S.C. Section 1320a-7a), and the regulations promulgated pursuant to such statutes; (iii) Medicare (Title XVIII of the Social Security Act), Medicaid (Title XIX of the Social Security Act), and the regulations promulgated pursuant to such statutes; and (iv) HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (42 U.S.C. Sections 17921 et seq.), and any and all other applicable health care laws and regulations.  The Company has no knowledge of any studies, tests or trials not described in the Prospectus the results of which reasonably call into question in any material respect the results of the studies, tests and trials described in the Prospectus.  The Company and each of its Subsidiaries is not a party to nor has any ongoing reporting obligations pursuant to any corporate integrity agreements, deferred prosecution agreements, monitoring agreements, consent decrees, settlement orders, plans of correction or similar agreements with or imposed by any governmental or regulatory authority.  Additionally, none of the Company, its Subsidiaries or any of their respective employees, agents, officers or directors has been excluded, suspended or debarred from participation in any federal or state health care program or human clinical research or to the Company’s knowledge, is subject to a governmental inquiry, investigation, proceeding, or other similar action that could reasonably be expected to result in debarment, suspension, or exclusion.
(t)Intellectual Property.  Except as disclosed in the Registration Statement and the Prospectus, the Company and its Subsidiaries own, possess, license or have other rights to use all foreign and domestic patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, Internet domain names, know-how and other intellectual property (collectively, the “Intellectual Property”) necessary or useful for the conduct of their respective businesses as now conducted and as proposed to be conducted as described in the Registration Statement and the Prospectus, except to the extent that the failure to own, possess, license or otherwise hold adequate rights to use such Intellectual Property would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Except as disclosed in the Registration Statement and the Prospectus (i) there are no rights of third parties to any such Intellectual Property owned by the Company and its Subsidiaries; (ii) to the Company’s knowledge, there is no infringement by third parties of any such 

Exhibit 10.1

Intellectual Property; (iii) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property; (v) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others that the Company and its Subsidiaries infringe, have misappropriated or otherwise violate any patent, trademark, copyright, trade secret or other proprietary rights of others or would, upon further development or commercialization of any product, product candidate or service described in the Registration Statement and the Prospectus as under development, infringe, misappropriate or violate, any intellectual property of others, and the Company is unaware of any facts which would form a basis for any such claim; (vi) to the Company’s knowledge, there is no third-party U.S. patent or published U.S. patent application which contains claims for which an Interference Proceeding (as defined in 35 U.S.C. § 135) has been commenced against any patent or patent application described in the Registration Statement and Prospectus as being owned by or licensed to the Company; (vii) there is no prior art or public or commercial activity of which the Company is aware that would reasonably be expected to render any patent included in the Intellectual Property invalid or that would preclude the issuance of any patent on any patent application included in the Intellectual Property which has not been disclosed to the U.S. Patent and Trademark Office or the relevant foreign patent authority, as the case may be; (viii) the Company has not committed any act or omitted to undertake any act the effect of such commission or omission would reasonably be expected to result in a legal determination that any item of Intellectual Property thereby was rendered invalid or unenforceable in whole or in part; (ix) to the Company’s knowledge, the issued patents included in the Intellectual Property are valid and enforceable and the Company is unaware of any facts that would preclude the issuance of a valid and enforceable patent on any pending patent application included in the Intellectual Property; (x) the manufacture, use and sale of the products or product candidates described in the Registration Statement and the Prospectus as under development by the Company fall within the scope of one or more claims of the patents or patent applications included in the Intellectual Property; (xi) the Company has taken reasonable steps necessary to secure the interests of the Company in the Intellectual Property purported to be owned by the Company from any employees, consultants, agents or contractors that developed (in whole or in part) such Intellectual Property; (xii) the Company and its Subsidiaries have complied with the terms of each agreement pursuant to which Intellectual Property has been licensed to the Company or such Subsidiary, and all such agreements are in full force and effect, and (xiii) to the Company’s knowledge, regarding the Intellectual Property, no employee of the Company or any of its Subsidiaries is in or has ever been in violation of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee’s employment with the Company or any of its Subsidiaries or actions undertaken by the employee while employed with the Company or any of its Subsidiaries, except, in the case of any of clauses (i)-(xiii) above, for any such rights of or infringement by third parties, any such pending or threatened suit, action, proceeding or claim, or any non-compliance, act, event, occurrence, or fact as would not reasonably be expected to result in a Material Adverse Effect.
(u)Clinical Studies.  The preclinical studies and tests and clinical trials conducted by or on behalf of, or sponsored by, the Company were, and, if still pending, are being conducted in all material respects in accordance with the experimental protocols, procedures and controls pursuant to, where applicable, accepted professional and scientific standards for products or product candidates comparable to those being developed by the Company and all applicable laws, including, without limitation, the FDCA and its implementing regulations at 21 C.F.R. Parts 50, 54, 56, and 312; the descriptions of such studies, tests and trials, and the results thereof, contained in the Prospectus are accurate and complete in all material respects; the Company is not aware of tests, studies or trials not described in the in the Prospectus, the results of which reasonably call into question the results of the tests, studies and trials described in the Prospectus; and except as set forth in the Registration Statement and the Prospectus the Company has not received any written notice or correspondence from the FDA or any foreign state or local governmental body exercising comparable 

Exhibit 10.1

authority or any institutional review board or comparable authority requiring termination, suspension, clinical hold or material modification of any tests, studies or trials.
(v)Market Capitalization.  At the time the Registration Statement was originally declared effective, and at the time the Company’s most recent Annual Report on Form 10-K was filed with the Commission, the Company met the then applicable requirements for the use of Form S-3 under the Securities Act, including, but not limited to, General Instruction I.B.1 of Form S-3.  The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has not been a shell company for at least 12 calendar months previously and if it has been a shell company at any time previously, has filed current Form 10 information (as defined in General Instruction I.B.6 of Form S-3) with the Commission at least 12 calendar months previously reflecting its status as an entity that is not a shell company. 
(w)No Material Defaults.  Neither the Company nor any of the Subsidiaries has defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.  The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since the filing of its last Annual Report on Form 10‐K, indicating that it (i) has failed to pay any dividend or sinking fund installment on preferred stock or (ii) has defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.
(x)Certain Market Activities.  Neither the Company, nor any of the Subsidiaries, nor any of their respective directors, officers or controlling persons, has taken, directly or indirectly, any action designed to, or that has constituted, or that might reasonably be expected to cause or result in, under the Exchange Act or otherwise, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Placement Shares.
(y)Broker/Dealer Relationships.  Neither the Company nor any of the Subsidiaries or any related entities (i) is required to register as a “broker” or “dealer” in accordance with the provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls or is a “person associated with a member” or “associated person of a member” (within the meaning set forth in the FINRA Manual).
(z)No Reliance.  The Company has not relied upon the Agent or legal counsel for the Agent for any legal, tax or accounting advice in connection with the offering and sale of the Placement Shares.
(aa)Taxes.  The Company and each of its Subsidiaries have filed all federal, state, local and foreign tax returns which have been required to be filed and paid all taxes shown thereon through the date hereof, to the extent that such taxes have become due and are not being contested in good faith, except where the failure to so file or pay would not reasonably be expected to have a Material Adverse Effect.  Except as otherwise disclosed in or contemplated by the Registration Statement or the Prospectus, no tax deficiency has been determined adversely to the Company or any of its Subsidiaries which has had, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  The Company has no knowledge of any federal, state or other governmental tax deficiency, penalty or assessment which has been or might be asserted or threatened against it which would reasonably be expected to have a Material Adverse Effect.
(bb)    Title to Real and Personal Property.  Except as set forth in the Registration Statement or the Prospectus, the Company and its Subsidiaries have good and marketable title in fee simple to all items of real property owned by them, good and valid title to all personal property described in the Registration Statement or Prospectus as being owned by them that are material to the businesses of the Company or such Subsidiary, in each case free and clear of all liens, encumbrances and claims, except those matters that (i) do not materially interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries or (ii) would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.  Any real or personal property described in the Registration Statement or Prospectus 

Exhibit 10.1

as being leased by the Company and any of its Subsidiaries is held by them under valid, existing and enforceable leases, except those that (A) do not materially interfere with the use made or proposed to be made of such property by the Company or any of its Subsidiaries or (B) would not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.  Each of the properties of the Company and its Subsidiaries complies with all applicable codes, laws and regulations (including, without limitation, building and zoning codes, laws and regulations and laws relating to access to such properties), except if and to the extent disclosed in the Registration Statement or Prospectus or except for such failures to comply that would not, individually or in the aggregate, reasonably be expected to interfere in any material respect with the use made and proposed to be made of such property by the Company and its Subsidiaries or otherwise have a Material Adverse Effect.  None of the Company or its subsidiaries has received from any governmental or regulatory authorities any notice of any condemnation of, or zoning change affecting, the properties of the Company and its Subsidiaries, and the Company knows of no such condemnation or zoning change which is threatened, except for such that would not reasonably be expected to interfere in any material respect with the use made and proposed to be made of such property by the Company and its Subsidiaries or otherwise have a Material Adverse Effect, individually or in the aggregate.
(cc)    Environmental Laws.  Except as set forth in the Registration Statement or the Prospectus, the Company and its Subsidiaries (i) are in compliance with any and all applicable federal, state, local and foreign laws, rules, regulations, decisions and orders relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (ii) have received and are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses as described in the Registration Statement and the Prospectus; and (iii) have not received notice of any actual or potential liability for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above, for any such failure to comply or failure to receive required permits, licenses, other approvals or liability as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(dd)    Disclosure Controls.  The Company and each of its Subsidiaries maintain systems of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.  The Company’s internal control over financial reporting is effective as of the latest date of management’s evaluation of such internal control over financial reporting as set forth in the Company’s periodic reports and the Company is not aware of any material weaknesses in its internal control over financial reporting (other than as set forth in the Prospectus).  Since the date of the latest audited financial statements of the Company included in the Prospectus, there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting (other than as set forth in the Prospectus).  The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a‐15 and 15d‐15) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company and each of its Subsidiaries is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s Annual Report on Form 10‐K or Quarterly Report on Form 10-Q, as the case may be, is being prepared.  The Company’s certifying officers have evaluated the effectiveness of the Company’s disclosure controls and procedures as of a date within 90 days prior to the filing date of the Form 10‐K for the fiscal year most recently ended (such date, the “Evaluation Date”).  The Company presented in its Form 10‐K for the fiscal year most recently ended the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based 

Exhibit 10.1

on their evaluations as of the Evaluation Date and the disclosure controls and procedures are effective.  Since the Evaluation Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of Regulation S‐K under the Securities Act) or, to the Company’s knowledge, in other factors that could significantly affect the Company’s internal controls.
(ee)    Sarbanes-Oxley.  There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities as such, to comply in all material respects with any applicable provisions of the Sarbanes-Oxley Act and the rules and regulations promulgated thereunder.  Each of the principal executive officer and the principal financial officer of the Company (or each former principal executive officer of the Company and each former principal financial officer of the Company as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules, forms, statements and other documents required to be filed by it or furnished by it to the Commission.  For purposes of the preceding sentence, “principal executive officer” and “principal financial officer” shall have the meanings given to such terms in the Sarbanes-Oxley Act.
(ff)    Finder’s Fees.  Neither the Company nor any of the Subsidiaries has incurred any liability for any finder’s fees, brokerage commissions or similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect to the Agent pursuant to this Agreement.
(gg)    Labor Disputes.  No labor disturbance by or dispute with employees of the Company or any of its Subsidiaries exists or, to the knowledge of the Company, is threatened which would reasonably be expected to result in a Material Adverse Effect.
(hh)    Investment Company Act.  Neither the Company nor any of the Subsidiaries is or, after giving effect to the offering and sale of the Placement Shares, will be an “investment company” or an entity “controlled” by an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).
(ii)    Operations.  The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions to which the Company or its Subsidiaries are subject, the rules and regulations thereunder and any related or similar applicable rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”), except as would not reasonably be expected to result in a Material Adverse Effect; and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
(jj)    Off-Balance Sheet Arrangements.  There are no transactions, arrangements and other relationships between and/or among the Company, and/or, to the knowledge of the Company, any of its affiliates and any unconsolidated entity, including, but not limited to, any structural finance, special purpose or limited purpose entity (each, an “Off-Balance Sheet Transaction”) that would reasonably be expected to affect materially the Company’s liquidity or the availability of or requirements for its capital resources, including those Off-Balance Sheet Transactions described in the Commission’s Statement about Management’s Discussion and Analysis of Financial Conditions and Results of Operations (Release Nos.  33‐8056; 34‐45321; FR‐61), required to be described in the Prospectus which have not been described as required.
(kk)    Underwriter Agreements.  The Company is not a party to any agreement with an agent or underwriter for any other “at the market” or continuous equity transaction.
(ll)    ERISA.  To the knowledge of the Company, each material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that is maintained, administered or contributed to by the Company or any of its affiliates for employees or former employees of the Company and any of its Subsidiaries has been maintained in material compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); no 

Exhibit 10.1

prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result in a material liability to the Company with respect to any such plan excluding transactions effected pursuant to a statutory or administrative exemption; and for each such plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the assets of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds the present value of all benefits accrued under such plan determined using reasonable actuarial assumptions.
(mm)    Forward-Looking Statements.  No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in the Registration Statement and the Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.  
(nn)    Agent Purchases.  The Company acknowledges and agrees that the Agent has informed the Company that the Agent may, to the extent permitted under the Securities Act and the Exchange Act, purchase and sell Common Stock for its own account while this Agreement is in effect, provided, that (i) no such purchase or sales shall take place while a Placement Notice is in effect (except to the extent the Agent may engage in sales of Placement Shares purchased or deemed purchased from the Company as a “riskless principal” or in a similar capacity) and (ii) the Company shall not be deemed to have authorized or consented to any such purchases or sales by the Agent.
(oo)    Margin Rules.  Neither the issuance, sale and delivery of the Placement Shares nor the application of the proceeds thereof by the Company as described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors.
(pp)    Insurance.  The Company and each of its Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as the Company and each of its Subsidiaries reasonably believe are adequate for the conduct of their properties and as is customary for companies engaged in similar businesses in similar industries.
(qq)    No Improper Practices.  Except as disclosed in the Registration Statement or the Prospectus, (i) neither the Company nor, to the Company’s knowledge, the Subsidiaries, nor to the Company’s knowledge, any of their respective executive officers has, in the past five years, made any unlawful contributions to any candidate for any political office (or failed fully to disclose any contribution in violation of law) or made any contribution or other payment to any official of, or candidate for, any federal, state, municipal, or foreign office or other person charged with similar public or quasi-public duty in violation of any law or of the character required to be disclosed in the Prospectus; (ii) no relationship, direct or indirect, exists between or among the Company or, to the Company’s knowledge, any Subsidiary or any affiliate of any of them, on the one hand, and the directors, officers and stockholders of the Company or, to the Company’s knowledge, any Subsidiary, on the other hand, that is required by the Securities Act to be described in the Registration Statement and the Prospectus that is not so described; (iii) no relationship, direct or indirect, exists between or among the Company or any Subsidiary or any affiliate of them, on the one hand, and the directors, officers, or stockholders of the Company or, to the Company’s knowledge, any Subsidiary, on the other hand, that is required by the rules of FINRA to be described in the Registration Statement and the Prospectus that is not so described; (iv) there are no material outstanding loans or advances or material guarantees of indebtedness by the Company or any Subsidiary to or for the benefit of any of their respective officers or directors or any of the members of the families of any of them; (v) the Company has not offered, or caused any placement agent to offer, Common Stock to any person with the intent to influence unlawfully (A) a customer or supplier of the Company or any Subsidiary to alter the customer’s or supplier’s level or type of business with the Company or any Subsidiary or (B) a trade journalist or publication to write or publish favorable information about the Company or any Subsidiary or any of their respective products or services; and (vi) neither the Company nor any Subsidiary nor, to the Company’s knowledge, any employee or agent of the Company or any Subsidiary has made any payment of funds of the Company or any Subsidiary 

Exhibit 10.1

or received or retained any funds in violation of any law, rule or regulation (including, without limitation, the Foreign Corrupt Practices Act of 1977), which payment, receipt or retention of funds is of a character required to be disclosed in the Registration Statement or the Prospectus.
(rr)    Status Under the Securities Act.  The Company was not and is not an ineligible issuer as defined in Rule 405 under the Securities Act at the times specified in Rules 164 and 433 under the Securities Act in connection with the offering of the Placement Shares.
(ss)    No Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus, as of its issue date and as of each Applicable Time (as defined in Section 24 below), did not, does not and will not include any information that conflicted, conflicts or will conflict with the information contained in the Registration Statement or the Prospectus, including any Incorporated Document that has not been superseded or modified.  The foregoing sentence does not apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity with written information furnished to the Company by the Agent specifically for use therein.
(tt)    No Conflicts.  Neither the execution of this Agreement, nor the issuance, offering or sale of the Placement Shares, nor the consummation of any of the transactions contemplated herein, nor the compliance by the Company with the terms and provisions hereof will conflict with, or will result in a breach of, any of the terms and provisions of, or has constituted or will constitute a default under, or has resulted in or will result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company pursuant to the terms of any contract or other agreement to which the Company may be bound or to which any of the property or assets of the Company is subject, except (i) such conflicts, breaches or defaults as may have been waived and (ii) such conflicts, breaches and defaults that would not have a Material Adverse Effect; nor will such action result (x) in any violation of the provisions of the organizational or governing documents of the Company, or (y) in any material violation of the provisions of any statute or any order, rule or regulation applicable to the Company or of any court or of any federal, state or other regulatory authority or other government body having jurisdiction over the Company, except with respect to this clause (y) only, where such violation would not reasonably be expected to have a Material Adverse Effect.
(uu)    Sanctions.  (i) The Company represents that, neither the Company nor any of its Subsidiaries (collectively, the “Entity”) or any director, officer, employee, agent, affiliate or representative of the Entity, is a government, individual, or entity (in this paragraph (uu), “Person”) that is, or is owned or controlled by a Person that is:
(A)  the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control, the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”), nor
(B)  located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran, North Korea, Sudan and Syria).
(ii)  The Entity represents and covenants that it will not, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:
(A)  to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions; or

Exhibit 10.1

(B)  in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).
(iii)  The Entity represents and covenants that, except as detailed in the Registration Statement and the Prospectus, for the past 5 years, it has not knowingly engaged in, is not now knowingly engaged in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.
(vv)    Stock Transfer Taxes.  On each Settlement Date, all stock transfer or other taxes (other than income taxes) which are required to be paid in connection with the sale and transfer of the Placement Shares to be sold hereunder will be, or will have been, fully paid or provided for by the Company and all laws imposing such taxes will be or will have been fully complied with in all material respects.
(ww)    Compliance with Laws.  Except as disclosed in the Registration Statement or the Prospectus, each of the Company and its Subsidiaries: (A) is and at all times has been in compliance with all statutes, rules, or regulations applicable to the ownership, testing, development, manufacture, packaging, processing, use, distribution, marketing, labeling, promotion, sale, offer for sale, storage, import, export or disposal of any product manufactured or distributed by the Company or its Subsidiaries (“Applicable Laws”), except as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; (B) has not received any FDA Form 483, notice of adverse finding, warning letter, untitled letter or other correspondence or notice from the FDA or any other Governmental Authority alleging or asserting noncompliance with any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations, permits and supplements or amendments thereto required by any such Applicable Laws (“Authorizations”), which would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; (C) has not received notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any Governmental Authority or third party alleging that any product operation or activity is in violation of any Applicable Laws or Authorizations and has no knowledge that any such Governmental Authority or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding; and (D) has not, either voluntarily or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal or replacement, safety alert, post-sale warning, “dear doctor” letter, or other notice or action relating to the alleged lack of safety or efficacy of any product or any alleged product defect or violation and, to the Company’s knowledge, no third party has initiated, conducted or intends to initiate any such notice or action.
(xx)    Statistical and Market-Related Data.  The statistical, demographic and market-related data included in the Registration Statement and Prospectus are based on or derived from sources that the Company believes to be reliable and accurate or represent the Company’s good faith estimates that are made on the basis of data derived from such sources.
Any certificate signed by an officer of the Company and delivered to the Agent or to counsel for the Agent pursuant to or in connection with this Agreement shall be deemed to be a representation and warranty by the Company, as applicable, to the Agent as to the matters set forth therein.
7.    Covenants of the Company.  The Company covenants and agrees with Agent that:

(a)    Registration Statement Amendments.  After the date of this Agreement and during any period in which a Prospectus relating to any Placement Shares is required to be delivered by the Agent under the Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rule 172 under the Securities Act), (i) the Company will notify the Agent promptly of the time when any subsequent amendment to the Registration Statement, other than documents incorporated by reference, has been filed with the Commission and/or has become effective or any subsequent supplement to the Prospectus has been 

Exhibit 10.1

filed and of any request by the Commission for any amendment or supplement to the Registration Statement or Prospectus or for additional information, (ii) the Company will prepare and file with the Commission, promptly upon the Agent’s reasonable request, any amendments or supplements to the Registration Statement or Prospectus that, upon advice of counsel is necessary in connection with the distribution of the Placement Shares by the Agent (provided, however, that the failure of the Agent to make such request shall not relieve the Company of any obligation or liability hereunder, or affect the Agent’s right to rely on the representations and warranties made by the Company in this Agreement and provided, further, that the only remedy the Agent shall have with respect to the failure to make such filing shall be to cease making sales under this Agreement until such amendment or supplement is filed); (iii) the Company will not file any amendment or supplement to the Registration Statement or Prospectus relating to the Placement Shares or a security convertible into the Placement Shares unless a copy thereof has been submitted to the Agent at least three Business Days before the filing and the Agent has not reasonably objected thereto within such three Business Day period (provided, however, that (A) the failure of the Agent to make such objection shall not relieve the Company of any obligation or liability hereunder, or affect the Agent’s right to rely on the representations and warranties made by the Company in this Agreement and (B) the Company has no obligation to provide the Agent any advance copy of such filing or to provide the Agent an opportunity to object to such filing if such filing does not name the Agent or does not relate to the transactions contemplated hereunder, and provided, further, that the only remedy the Agent shall have with respect to the failure by the Company to obtain such consent shall be to cease making sales under this Agreement) and the Company will furnish to the Agent at the time of filing thereof a copy of any document that upon filing is deemed to be incorporated by reference into the Registration Statement or Prospectus, except for those documents available via EDGAR; and (iv) the Company will cause each amendment or supplement to the Prospectus to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or, in the case of any document to be incorporated therein by reference, to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed (the determination to file or not file any amendment or supplement with the Commission under this Section 7(a), based on the Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company); provided, however, that the Company may delay any such amendment or supplement if, in the reasonable judgment of the Company, it is in the best interests of the Company to do so.  Until such time as the Company shall have corrected such misstatement or omission or effected such compliance, the Company shall not notify the Agent to resume the offering of Placement Shares.
(b)    Notice of Commission Stop Orders.  The Company will advise the Agent, promptly after it receives notice or obtains knowledge thereof, of the issuance or threatened issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement, of the suspension of the qualification of the Placement Shares for offering or sale in any jurisdiction, or of the initiation or threatening of any proceeding for any such purpose; and it will promptly use its commercially reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal if such a stop order should be issued.  The Company will advise the Agent promptly after it receives any request by the Commission for any amendments to the Registration Statement or any amendment or supplements to the Prospectus or any Issuer Free Writing Prospectus or for additional information related to the offering of the Placement Shares or for additional information related to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus.
(c)    Delivery of Prospectus; Subsequent Changes.  During any period in which a Prospectus relating to the Placement Shares is required to be delivered by the Agent under the Securities Act with respect to the offer and sale of the Placement Shares, (including in circumstances where such requirement may be satisfied pursuant to Rule 172 under the Securities Act), the Company will comply with all requirements imposed upon it by the Securities Act, as from time to time in force, and to file on or before their respective due dates all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act.  If the Company has omitted any information from the Registration Statement pursuant to 

Exhibit 10.1

Rule 430B under the Securities Act, it will use its best efforts to comply with the provisions of and make all requisite filings with the Commission pursuant to said Rule 430B and to notify the Agent promptly of all such filings.  If during such period any event occurs as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or supplement the Registration Statement or Prospectus to comply with the Securities Act, the Company will promptly notify the Agent to suspend the offering of Placement Shares during such period and the Company will promptly amend or supplement the Registration Statement or Prospectus (at the expense of the Company) so as to correct such statement or omission or effect such compliance; provided, however, that the Company may delay any such amendment or supplement if, in the reasonable judgment of the Company, it is in the best interests of the Company to do so.  Until such time as the Company has corrected such statement or omission or effected such compliance, the Company shall not notify the Agent to resume the offering of Placement Shares.
(d)    Listing of Placement Shares.  During any period in which the Prospectus relating to the Placement Shares is required to be delivered by the Agent under the Securities Act with respect to the offer and sale of the Placement Shares, the Company will use its commercially reasonable efforts to cause the Placement Shares to be listed on the Exchange.
(e)    Delivery of Registration Statement and Prospectus.  The Company will furnish to the Agent and its counsel (at the expense of the Company) copies of the Registration Statement, the Prospectus (including all Incorporated Documents) and all amendments and supplements to the Registration Statement or Prospectus that are filed with the Commission during any period in which a Prospectus relating to the Placement Shares is required to be delivered under the Securities Act (including all Incorporated Documents filed with the Commission during such period), in each case as soon as reasonably practicable and in such quantities as the Agent may from time to time reasonably request and, at the Agent’s request, will also furnish copies of the Prospectus to each exchange or market on which sales of the Placement Shares may be made; provided, however, that the Company shall not be required to furnish any document (other than the Prospectus) to the Agent to the extent such document is available on EDGAR.
(f)    Earnings Statement.  The Company will make generally available to its security holders as soon as practicable, but in any event not later than 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering a 12-month period that satisfies the provisions of Section 11(a) and Rule 158 of the Securities Act.
(g)    Use of Proceeds.  The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use of Proceeds.”
(h)    Notice of Other Sales.  Without the prior written consent of the Agent, the Company will not, directly or indirectly, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire, Common Stock during the period beginning on the fifth (5th) Trading Day immediately prior to the date on which any Placement Notice is delivered to the Agent hereunder and ending on the fifth (5th) Trading Day immediately following the final Settlement Date with respect to Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice has been terminated or suspended prior to the sale of all Placement Shares covered by a Placement Notice, the date of such suspension or termination); and will not directly or indirectly in any other “at the market” or continuous equity transaction offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire, Common Stock prior to the termination of this Agreement; provided, however, that such restrictions will not be required in connection with the Company’s issuance or sale of (i) Common Stock, options to purchase Common Stock or Common Stock issuable upon the exercise of options, pursuant to any employee or director stock option or benefits plan, stock ownership plan or dividend reinvestment plan (but 

Exhibit 10.1

not Common Stock subject to a waiver to exceed plan limits in its dividend reinvestment plan) of the Company whether now in effect or hereafter implemented, (ii) Common Stock issuable upon conversion of securities or the exercise of warrants, options or other rights in effect or outstanding, and disclosed in filings by the Company available on EDGAR or otherwise in writing to the Agent and (iii) Common Stock or securities convertible into or exchangeable for shares of Common Stock as consideration for mergers, acquisitions, other business combinations or strategic alliances occurring after the date of this Agreement which are not issued for capital raising purposes.
(i)    Change of Circumstances.  The Company will, at any time during the pendency of a Placement Notice, advise the Agent promptly after it shall have received notice or obtained knowledge thereof, of any information or fact that would alter or affect in any material respect any opinion, certificate, letter or other document required to be provided to the Agent pursuant to this Agreement.
(j)    Due Diligence Cooperation.  The Company will cooperate with any reasonable due diligence review conducted by the Agent or its representatives in connection with the transactions contemplated hereby, including, without limitation, providing information and making available documents and senior corporate officers, during regular business hours and at the Company’s principal offices, as the Agent may reasonably request.
(k)    Required Filings Relating to Placement of Placement Shares.  To the extent that the filing of a prospectus supplement with the Commission with respect to the placement of Placement Shares becomes required under Rule 424(b) under the Securities Act, the Company agrees that on such dates as the Securities Act shall require, the Company will (i) file a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b) under the Securities Act (each and every filing date under Rule 424(b), a “Filing Date”), which prospectus supplement will set forth, within the relevant period, the amount of Placement Shares sold through the Agent, the Net Proceeds to the Company and the compensation payable by the Company to the Agent with respect to such Placement Shares, and (ii) deliver such number of copies of each such prospectus supplement to each exchange or market on which such sales were effected as may be required by the rules or regulations of such exchange or market.
(l)    Representation Dates; Certificate.  (1) On or prior to the date of the first Placement Notice and (2) each time the Company:
(i) files the Prospectus relating to the Placement Shares or amends or supplements (other than a prospectus supplement relating solely to an offering of securities other than the Placement Shares) the Registration Statement or the Prospectus relating to the Placement Shares by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of documents by reference into the Registration Statement or the Prospectus relating to the Placement Shares;
(ii) files an annual report on Form 10-K under the Exchange Act (including any Form 10-K/A containing amended financial information or a material amendment to the previously filed Form 10-K);
(iii) files its quarterly reports on Form 10-Q under the Exchange Act; or 
(iv) files a current report on Form 8-K containing amended financial information (other than information “furnished” pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) under the Exchange Act (each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall be a “Representation Date”);
the Company shall furnish the Agent (but in the case of clause (iv) above only if the Agent reasonably determines that the information contained in such Form 8‐K is material) with a certificate dated the Representation Date, in the form attached hereto as Exhibit 7(l).  The requirement to provide a certificate 

Exhibit 10.1

under this Section 7(l) shall be waived for any Representation Date occurring at a time a Suspension is in effect, which waiver shall continue until the earlier to occur of the date the Company delivers instructions for the sale of Placement Shares hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date.  Notwithstanding the foregoing, if the Company subsequently decides to sell Placement Shares following a Representation Date when a Suspension was in effect and did not provide the Agent with a certificate under this Section 7(l), then before the Company delivers the instructions for the sale of Placement Shares or the Agent sells any Placement Shares pursuant to such instructions, the Company shall provide the Agent with a certificate in conformity with this Section 7(l) dated as of the date that the instructions for the sale of Placement Shares are issued.  
(m)    Legal Opinion.  (i) On or prior to the date of the first Placement Notice  and (ii) within five (5) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(l) for which no waiver is applicable and excluding the date of this Agreement, the Company shall cause to be furnished to the Agent a written opinion of Cooley LLP (“Company Counsel”), or other counsel satisfactory to the Agent, in form and substance satisfactory to the Agent and its counsel, substantially similar to the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented, and a written negative assurance letter of Company Counsel; provided, however, the Company shall be required to furnish to the Agent no more than one opinion and negative assurance letter from Company Counsel hereunder per calendar quarter and the Company shall not be required to furnish any such letter if the Company does not intend to deliver a Placement Notice in such calendar quarter until such time as the Company delivers its next Placement Notice; provided, further, that in lieu of such opinions for subsequent periodic filings under the Exchange Act, counsel may furnish the Agent with a letter (a “Reliance Letter”) to the effect that the Agent may rely on a prior opinion delivered under this Section 7(m) to the same extent as if it were dated the date of such letter (except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented as of the date of the Reliance Letter).
(n)    Comfort Letter.  (i) On or prior to the date of the first Placement Notice and (ii) within five (5) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto as Exhibit 7(l) for which no waiver is applicable and excluding the date of this Agreement, the Company shall cause its independent registered public accounting firm to furnish the Agent letters (the “Comfort Letters”), dated the date the Comfort Letter is delivered, which shall meet the requirements set forth in this Section 7(n); provided, that if requested by the Agent the Company shall cause a Comfort Letter to be furnished to the Agent within ten (10) Trading Days of the date of occurrence of any material transaction or event (including the restatement of the Company’s financial statements) requiring the filing of a Current Report on Form 8-K containing material financial information.  The Comfort Letter from the Company’s independent registered public accounting firm shall be in a form and substance satisfactory to the Agent, (A) confirming that they are an independent registered public accounting firm within the meaning of the Securities Act and the PCAOB, (B) stating, as of such date, the conclusions and findings of such firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection with registered public offerings (the first such letter, the “Initial Comfort Letter”) and (C) updating the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had it been given on such date and modified as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.
(o)    Market Activities; Compliance with Regulation M.  The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company to 

Exhibit 10.1

facilitate the sale or resale of Common Stock or (ii) sell, bid for, or purchase the Placement Shares, or pay anyone any compensation for soliciting purchases of the Placement Shares other than the Agent.  
(p)    Investment Company Act.  The Company will conduct its affairs in such a manner so as to reasonably ensure that neither it nor any of its Subsidiaries will be or become, at any time prior to the termination of this Agreement, required to register as an “investment company,” as such term is defined in the Investment Company Act.
(q)    No Offer to Sell.  Other than an Issuer Free Writing Prospectus approved in advance by the Company and the Agent in its capacity as agent hereunder, neither the Agent nor the Company (including its agents and representatives, other than the Agent in its capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405 under the Securities Act), required to be filed with the Commission, that constitutes an offer to sell or solicitation of an offer to buy Placement Shares hereunder.
(r)    Blue Sky and Other Qualifications.  The Company will use its commercially reasonable efforts, in cooperation with the Agent, to qualify the Placement Shares for offering and sale, or to obtain an exemption for the Placement Shares to be offered and sold, under the applicable securities laws of such states and other jurisdictions as the Agent may designate and to maintain such qualifications and exemptions in effect for so long as required for the distribution of the Placement Shares (but in no event for less than one year from the date of this Agreement); provided, however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.  In each jurisdiction in which the Placement Shares have been so qualified or exempt, the Company will file such statements and reports as may be required by the laws of such jurisdiction to continue such qualification or exemption, as the case may be, in effect for so long as required for the distribution of the Placement Shares (but in no event for less than one year from the date of this Agreement).
(s)    Sarbanes-Oxley Act.  The Company and the Subsidiaries will maintain and keep accurate books and records reflecting their assets and maintain internal accounting controls in a manner designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and including those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company, (ii) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of the Company’s consolidated financial statements in accordance with GAAP, (iii) that receipts and expenditures of the Company are being made only in accordance with management’s and the Company’s directors’ authorization, and (iv) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on its financial statements.  The Company and the Subsidiaries will maintain such controls and other procedures, including, without limitation, those required by Sections 302 and 906 of the Sarbanes-Oxley Act, and the applicable regulations thereunder that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, including, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure and to ensure that material information relating to the Company or the Subsidiaries is made known to them by others within those entities, particularly during the period in which such periodic reports are being prepared.
(t)    Secretary’s Certificate; Further Documentation.  On or prior to the date of the first Placement Notice, the Company shall deliver to the Agent a certificate of the Secretary of the Company and 

Exhibit 10.1

attested to by an executive officer of the Company, dated as of such date, certifying as to (i) the Certificate of Incorporation of the Company, (ii) the By-laws of the Company, (iii) the resolutions of the Board of Directors of the Company or a duly authorized committee of the Board of Directors authorizing the execution, delivery and performance of this Agreement and the issuance of the Placement Shares and (iv) the incumbency of the officers duly authorized to execute this Agreement and the other documents contemplated by this Agreement.  Within five (5) Trading Days of each Representation Date, the Company shall have furnished to the Agent such further information, certificates and documents as the Agent may reasonably request.

8.    Payment of Expenses.  The Company will pay all expenses incident to the performance of its obligations under this Agreement, including (i) the preparation and filing of the Registration Statement, including any fees required by the Commission, and the printing or electronic delivery of the Prospectus as originally filed and of each amendment and supplement thereto, in such number as the Agent shall deem necessary, (ii) the printing and delivery to the Agent of this Agreement and such other documents as may be required in connection with the offering, purchase, sale, issuance or delivery of the Placement Shares, (iii) the preparation, issuance and delivery of the certificates, if any, for the Placement Shares to the Agent, including any stock or other transfer taxes and any capital duties, stamp duties or other duties or taxes payable upon the sale, issuance or delivery of the Placement Shares to the Agent, (iv) the fees and expenses of the Company, including but not limited to the fees and expenses of the counsel, accountants and other advisors to the Company, (v) the fees and expenses of the Agent including but not limited to the fees and expenses of the counsel to the Agent, payable upon the execution of this Agreement, in an amount not to exceed $50,000, (vi) the qualification or exemption of the Placement Shares under state securities laws in accordance with the provisions of Section 7(r) hereof, including filing fees, but excluding fees of the Agent’s counsel, (vii) the printing and delivery to the Agent of copies of any Permitted Issuer Free Writing Prospectus and the Prospectus and any amendments or supplements thereto in such number as the Agent shall deem necessary, (viii) the preparation, printing and delivery to the Agent of copies of the blue sky survey, (ix) the fees and expenses of the transfer agent and registrar for the Common Stock, (x) the filing and other fees incident to any review by FINRA of the terms of the sale of the Placement Shares including the fees of the Agent’s counsel (subject to the cap, set forth in clause (v) above), and (xi) the fees and expenses incurred in connection with the listing of the Placement Shares on the Exchange.

9.    Conditions to the Agent’s Obligations.  The obligations of the Agent hereunder with respect to a Placement will be subject to the continuing accuracy and completeness of the representations and warranties made by the Company herein, to the due performance by the Company of its obligations hereunder, to the completion by the Agent of a due diligence review satisfactory to it in its reasonable judgment, and to the continuing satisfaction (or waiver by the Agent in its sole discretion) of the following additional conditions:
(a)    Registration Statement Effective.  The Registration Statement shall have become effective and shall be available for the (i) resale of all Placement Shares issued to the Agent and not yet sold by the Agent and (ii) sale of all Placement Shares contemplated to be issued by any Placement Notice.
(b)    No Material Notices.  None of the following events shall have occurred and be continuing: (i) receipt by the Company of any request for additional information from the Commission or any other federal or state Governmental Authority during the period of effectiveness of the Registration Statement, the response to which would require any post-effective amendments or supplements to the Registration Statement or the Prospectus; (ii) the issuance by the Commission or any other federal or state Governmental Authority of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Placement Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; or (iv) the occurrence of any event that makes any material statement made in the Registration Statement or the Prospectus or any material document incorporated or deemed to be incorporated therein by reference untrue 

Exhibit 10.1

in any material respect or that requires the making of any changes in the Registration Statement, the Prospectus or documents so that, in the case of the Registration Statement, it will not contain any materially untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and, that in the case of the Prospectus, it will not contain any materially untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(c)    No Misstatement or Material Omission.  The Agent shall not have advised the Company that the Registration Statement or Prospectus, or any amendment or supplement thereto, contains an untrue statement of fact that in the Agent’s reasonable opinion is material, or omits to state a fact that in the Agent’s reasonable opinion is material and is required to be stated therein or is necessary to make the statements therein not misleading.
(d)    Material Changes.  Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with the Commission, there shall not have been any material adverse change in the authorized capital stock of the Company or any Material Adverse Effect or any development that could reasonably be expected to cause a Material Adverse Effect, or a downgrading in or withdrawal of the rating assigned to any of the Company’s securities (other than asset backed securities) by any rating organization or a public announcement by any rating organization that it has under surveillance or review its rating of any of the Company’s securities (other than asset backed securities), the effect of which, in the case of any such action by a rating organization described above, in the reasonable judgment of the Agent (without relieving the Company of any obligation or liability it may otherwise have), is so material as to make it impracticable or inadvisable to proceed with the offering of the Placement Shares on the terms and in the manner contemplated in the Prospectus.
(e)    Legal Opinions.  The Agent shall have received the opinion and the negative assurance letter of Company Counsel required to be delivered pursuant to Section 7(m) on or before the date on which such delivery of such opinions and letter, as applicable, are required pursuant to Section 7(m).
(f)    Comfort Letter.  The Agent shall have received the Comfort Letter required to be delivered pursuant to Section 7(n) on or before the date on which such delivery of such Comfort Letter is required pursuant to Section 7(n).
(g)    Representation Certificate.  The Agent shall have received the certificate required to be delivered pursuant to Section 7(l) on or before the date on which delivery of such certificate is required pursuant to Section 7(l).
(h)    No Suspension.  Trading in the Common Stock shall not have been suspended on the Exchange and the Common Stock shall not have been delisted from the Exchange.
(i)    Other Materials.  On each date on which the Company is required to deliver a certificate pursuant to Section 7(l), the Company shall have furnished to the Agent such appropriate further information, opinions, certificates, letters and other documents as the Agent may reasonably request.  All such opinions, certificates, letters and other documents will be in compliance with the provisions hereof.
(j)    Securities Act Filings Made.  All filings with the Commission required by Rule 424 under the Securities Act to have been filed prior to the issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing by Rule 424.
(k)    Approval for Listing.  The Placement Shares shall either have been approved for listing on the Exchange, subject only to notice of issuance, or the Company shall have filed an application for listing of the Placement Shares on the Exchange at, or prior to, the issuance of any Placement Notice and, if required, the Exchange shall have reviewed such application and not provided any objections thereto.
(l)    FINRA.  If applicable, FINRA shall have raised no objection to the terms of this offering and the amount of compensation allowable or payable to the Agent as described in the Prospectus. 
(m)    No Termination Event.  There shall not have occurred any event that would permit the Agent to terminate this Agreement pursuant to Section 12(a).

Exhibit 10.1

10.    Indemnification and Contribution.

(a)Company Indemnification.  The Company agrees to indemnify and hold harmless the Agent, its partners, members, directors, officers, employees and agents and each person, if any, who controls the Agent within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as follows: 
(i)against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact included in any related Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
(ii)against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 10(d) below) any such settlement is effected with the written consent of the Company, which consent shall not unreasonably be delayed or withheld; and
(iii)against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above,
provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made solely in reliance upon and in conformity with the Agent Information (as defined below).
(b)Agent Indemnification.  The Agent agrees to indemnify and hold harmless the Company and its directors and each officer and director of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 10(a), as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendments thereto), the Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with information relating to the Agent and furnished to the Company in writing by the Agent expressly for use therein.  The Company hereby acknowledges that the only information that the Agent has furnished to the Company expressly for use in the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) are the statements set forth in the seventh and eighth paragraphs under the caption “Plan of Distribution” in the Prospectus (the “Agent Information”).

(c)Procedure.  Any party that proposes to assert the right to be indemnified under this Section 10 will, promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section 10, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might have to any indemnified party otherwise than under this Section 10 and (ii) any liability that it 

Exhibit 10.1

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

(d)Settlement Without Consent if Failure to Reimburse.  If an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 10(a)(ii) effected without its written consent if (1) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (2) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (3) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.

(e)Contribution.  In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this Section 10 is applicable in accordance with its terms but for any reason is held to be unavailable from the Company or the Agent, the Company and the Agent will contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in 

Exhibit 10.1

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

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

Exhibit 10.1

12.    Termination.

(a)    The Agent may terminate this Agreement, by notice to the Company, as hereinafter specified at any time (1) if there has been, since the time of execution of this Agreement or since the date as of which information is given in the Prospectus, any change, or any development or event involving a prospective change, in the condition, financial or otherwise, or in the business, properties, earnings, results of operations or prospects of the Company and its Subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business, which individually or in the aggregate, in the sole judgment of the Agent is material and adverse and makes it impractical or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (2) if there has occurred any material adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international political, financial or economic conditions, in each case the effect of which is such as to make it, in the judgment of the Agent, impracticable or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares, (3) if trading in the Common Stock has been suspended or limited by the Commission or the Exchange, or if trading generally on the Exchange has been suspended or limited, or minimum prices for trading have been fixed on the Exchange, (4) if any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market shall have occurred and be continuing, (5) if a major disruption of securities settlements or clearance services in the United States shall have occurred and be continuing, or (6) if a banking moratorium has been declared by either U.S. Federal or New York authorities.  Any such termination shall be without liability of any party to any other party except that the provisions of Section 8 (Payment of Expenses), Section 10 (Indemnification and Contribution), Section 11 (Representations and Agreements to Survive Delivery), Section 17 (Governing Law and Time; Waiver of Jury Trial) and Section 18 (Consent to Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination.  If the Agent elects to terminate this Agreement as provided in this Section 12(a), the Agent shall provide the required notice as specified in Section 13 (Notices).

(b)    The Company shall have the right, by giving ten (10) days’ notice as hereinafter specified to terminate this Agreement in its sole discretion at any time after the date of this Agreement.  Any such termination shall be without liability of any party to any other party except that the provisions of Section 8, Section 10, Section 11, Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.

(c)    The Agent shall have the right, by giving ten (10) days’ notice as hereinafter specified to terminate this Agreement in its sole discretion at any time after the date of this Agreement.  Any such termination shall be without liability of any party to any other party except that the provisions of Section 8, Section 10, Section 11, Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.

(d)    Unless earlier terminated pursuant to this Section 12, this Agreement shall automatically terminate upon the issuance and sale of all of the Placement Shares through the Agent on the terms and subject to the conditions set forth herein; provided that the provisions of Section 8, Section 10, Section 11, Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding such termination.

(e)    This Agreement shall remain in full force and effect unless terminated pursuant to Sections 12(a), (b), (c) or (d) above or otherwise by mutual agreement of the parties; provided, however, that 

Exhibit 10.1

any such termination by mutual agreement shall in all cases be deemed to provide that Section 8, Section 10, Section 11, Section 17 and Section 18 shall remain in full force and effect.

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

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

Cantor Fitzgerald & Co. 
499 Park Avenue
New York, NY 10022
Attention:    Capital Markets/Jeffrey Lumby
Facsimile:    (212) 307-3730

and:

Cantor Fitzgerald & Co. 
499 Park Avenue
New York, NY 10022
Attention:    General Counsel
Facsimile:    (212) 829-4708

with a copy to:

Latham & Watkins LLP
12670 High Bluff Drive
San Diego, CA 92130
Attention:    Michael Sullivan, Esq.
Facsimile:    (858) 523-5450
and if to the Company, shall be delivered to:
NewLink Genetics Corporation
2801 Via Fortuna, Suite 520
Austin, TX 78746
Attention:    John B. Henneman, III
Facsimile:    (515) 296-3520
with a copy to:
Cooley LLP
380 Interlocken Crescent, Suite 900
Broomfield, CO 80021
Attention:    James Linfield
Facsimile:    (720) 566-4099

Exhibit 10.1

Each party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose.  Each such notice or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) by Electronic Notice as set forth in the next paragraph, (iii) on the next Business Day after timely delivery to a nationally-recognized overnight courier or (iv) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid).  For purposes of this Agreement, “Business Day” shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.  
An electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this Section 13 if sent to the electronic mail address specified by the receiving party under separate cover.  Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party.  Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”) which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.
14.    Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the Company and the Agent and their respective successors and the affiliates, controlling persons, officers and directors referred to in Section 10 hereof.  References to any of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.  Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party; provided, however, that the Agent may assign its rights and obligations hereunder to an affiliate thereof without obtaining the Company’s consent upon written notice to the Company.

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

16.    Entire Agreement; Amendment; Severability; Waiver.  This Agreement (including all schedules and exhibits attached hereto and Placement Notices issued pursuant hereto), together with that certain letter agreement between the Company and the Agent dated the date hereof, constitute the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof.  Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Agent.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected in this Agreement. No implied waiver by a party shall arise in the absence of a waiver in writing signed by such party. No failure or delay in exercising any right, power, or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power, or privilege hereunder.

Exhibit 10.1

17.    GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.  THE COMPANY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

18.    CONSENT TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER.  EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF.  NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.

19.    Use of Information.  The Agent may not provide any information gained in connection with this Agreement and the transactions contemplated by this Agreement, including due diligence, to any third party other than its legal counsel advising it on this Agreement unless expressly approved by the Company in writing or unless it is required to do so by applicable law, rule or regulation.

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

21.    Construction.  The section and exhibit headings herein are for convenience only and shall not affect the construction hereof. References herein to any law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority shall be deemed to refer to such law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority as amended, reenacted, supplemented or superseded in whole or in part and in effect from time to time and also to all rules and regulations promulgated thereunder. 

22.    Permitted Free Writing Prospectuses.  The Company represents, warrants and agrees that, unless it obtains the prior written consent of the Agent (including by email correspondence to each of the individuals of such party set forth on Schedule 3, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply), and the Agent represents, warrants and agrees that, unless it obtains the prior written consent of the Company (including by email correspondence to each of the individuals of such party set forth on Schedule 3, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than 

Exhibit 10.1

via auto-reply), it has not made and will not make any offer relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be filed with the Commission.  Any such free writing prospectus consented to by the Agent or by the Company, as the case may be, is hereinafter referred to as a “Permitted Free Writing Prospectus.”  The Company represents and warrants that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely filing with the Commission where required, legending and record keeping.  For the purposes of clarity, the parties hereto agree that all free writing prospectuses, if any, listed in Exhibit 22 hereto are Permitted Free Writing Prospectuses.

23.    Absence of Fiduciary Relationship.  The Company acknowledges and agrees that:

(a)    the Agent is acting solely as agent in connection with the public offering of the Placement Shares and in connection with each transaction contemplated by this Agreement and the process leading to such transactions, and no fiduciary or advisory relationship between the Company or any of its respective affiliates, stockholders (or other equity holders), creditors or employees or any other party, on the one hand, and the Agent, on the other hand, has been or will be created in respect of any of the transactions contemplated by this Agreement, irrespective of whether or not the Agent has advised or is advising the Company on other matters, and the Agent has no obligation to the Company with respect to the transactions contemplated by this Agreement except the obligations expressly set forth in this Agreement; 

(b)    it is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated by this Agreement;

(c)    the Agent has not provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement and it has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;

(d)    it is aware that the Agent and its affiliates are engaged in a broad range of transactions which may involve interests that differ from those of the Company and the Agent and its affiliates have no obligation to disclose such interests and transactions to the Company by virtue of any fiduciary, advisory or agency relationship or otherwise; and

(e)    it waives, to the fullest extent permitted by law, any claims it may have against the Agent for breach of fiduciary duty or alleged breach of fiduciary duty in connection with the sale of Placement Shares under this Agreement and agrees that the Agent shall not have any liability (whether direct or indirect, in contract, tort or otherwise) to it in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on its behalf or in right of it or the Company, employees or creditors of Company, other than in respect of the Agent’s obligations under this Agreement and to keep information provided by the Company to the Agent and the Agent’s counsel confidential to the extent not otherwise publicly available.

24.    Definitions.  As used in this Agreement, the following terms have the respective meanings set forth below:

“Applicable Time” means (i) each Representation Date and (ii) the time of each sale of any Placement Shares pursuant to this Agreement.

Exhibit 10.1

“Governmental Authority” means (i) any federal, provincial, state, local, municipal, national or international government or governmental authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, court, tribunal, arbitrator or arbitral body (public or private); (ii) any self-regulatory organization; or (iii) any political subdivision of any of the foregoing.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433, relating to the Placement Shares that (1) is required to be filed with the Commission by the Company, (2) is a “road show” that is a “written communication” within the meaning of Rule 433(d)(8)(i) whether or not required to be filed with the Commission, or (3) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Placement Shares or of the offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the Securities Act Regulations. 
 “Rule 164,” “Rule 172,” “Rule 405,” “Rule 415,” “Rule 424,” “Rule 424(b),” “Rule 430B,” and “Rule 433” refer to such rules under the Securities Act Regulations.
All references in this Agreement to financial statements and schedules and other information that is “contained,” “included” or “stated” in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information that is incorporated by reference in the Registration Statement or the Prospectus, as the case may be.
All references in this Agreement to the Registration Statement, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing Prospectus (other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission) shall be deemed to include the copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to “supplements” to the Prospectus shall include, without limitation, any supplements, “wrappers” or similar materials prepared in connection with any offering, sale or private placement of any Placement Shares by the Agent outside of the United States.
[Signature Page Follows]

Exhibit 10.1

If the foregoing correctly sets forth the understanding between the Company and the Agent, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Company and the Agent.
Very truly yours,
	
		
	NEWLINK GENETICS CORPORATION

	 

	By:
	/s/ John B. Henneman, III

	 
	Name:John B. Henneman, III

	 
	Title:Chief Financial Officer

ACCEPTED as of the date first-above written:

	
		
	CANTOR FITZGERALD & CO.

	 

	By:
	/s/ Jeffrey Lumby

	 
	Name:Jeffrey Lumby

	 
	Title:Senior Managing Director

[Signature Page to Sales Agreement]

Exhibit 10.1

SCHEDULE 1

__________________________
Form of Placement Notice
__________________________

From:         NewLink Genetics Corporation
		
	To: 
	Cantor Fitzgerald & Co. 

Attention:  [•]

Subject:     Placement Notice
Date:        [•], 201[•]
Ladies and Gentlemen:
Pursuant to the terms and subject to the conditions contained in the Sales Agreement between NewLink Genetics Corporation, a Delaware corporation (the “Company”), and Cantor Fitzgerald & Co. (“Agent”), dated November [•], 2016, the Company hereby requests that the Agent sell up to [•] of the Company’s common stock, par value $0.01 per share, at a minimum market price of $[•] per share, during the time period beginning [month, day, time] and ending [month, day, time]. 

Exhibit 10.1

SCHEDULE 2

__________________________
Compensation
__________________________

The Company shall pay to the Agent in cash, upon each sale of Placement Shares pursuant to this Agreement, an amount equal to up to 3.0% of the aggregate gross proceeds from each sale of Placement Shares.

 

Exhibit 10.1

SCHEDULE 3

__________________________
Notice Parties
__________________________

The Company
Charles J. Link (clink@linkp.com)
John B. Henneman, III (jhenneman@linkp.com)
Nicholas Vahanian (nvahanian@linkp.com)
With copies to
James Linfield (linfieldJCT@cooley.com)
The Agent
Jeffrey Lumby (jlumby@cantor.com)
Joshua Feldman (jfeldman@cantor.com)
Sameer Vasudev (svasudev@cantor.com) 
With copies to:

CFControlledEquityOffering@cantor.com

Exhibit 10.1

SCHEDULE 4

__________________________
Subsidiaries
__________________________
Incorporated by reference to Exhibit 21.1 of the Company’s most recently filed Annual Report on Form 10-K, as amended.

Exhibit 10.1

Exhibit 7(l)
Form of Representation Date Certificate
The undersigned, the duly qualified and elected [•], of NewLink Genetics Corporation, a Delaware corporation (the “Company”), does hereby certify in such capacity and on behalf of the Company, pursuant to Section 7(l) of the Sales Agreement, dated November [•], 2016 (the “Sales Agreement”), between the Company and Cantor Fitzgerald & Co., that to the best of the knowledge of the undersigned:
(i) The representations and warranties of the Company in Section 6 of the Sales Agreement (A) to the extent such representations and warranties are subject to qualifications and exceptions contained therein relating to materiality or Material Adverse Effect, are true and correct on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof, except for those representations and warranties that speak solely as of a specific date and which were true and correct as of such date, and (B) to the extent that such representations and warranties are not subject to any qualifications or exceptions, are true and correct in all material respects as of the date hereof as if made on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof, except for those representations and warranties that speak solely as of a specific date and which were true and correct as of such date; and 
(ii) The Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied pursuant to the Sales Agreement at or prior to the date hereof. 

Capitalized terms used herein without definition shall have the meanings given to such terms in the Sales Agreement.

	
	
	NewLink Genetics Corporation

	By:  

	Name:  

	Title:  

Date: [•]

Exhibit 10.1

Exhibit 22
Permitted Free Writing Prospectus
None.

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